Indholdsfortegnelse for February 2024 i Money Magazine

It's the same for us at Money. We began refreshing the magazine in December, and our new year's resolution is to keep providing you with cleaner pages, easier navigation and informative graphics. We will also add some exciting content as the Year of the Wood Dragon (a time of abundance, prosperity and fortune… please let it be true!) unfolds. Our focus remains on quality, with our regular experts giving you the inside edge on money, property and investing. This year started well for us, with news from Roy Morgan market research that our readership is up almost 10%. That's no small feat in the social media age, but we take our position as a trusted, independent voice in a market cluttered with finfluencers seriously. Our mission to lead you on…

CALENDAR OF EVENTS Monday, February 5 Balance of trade Tuesday, February 6 RBA interest rate decision Tuesday, February 13 Westpac consumer confidence Wednesday, February 14 NAB business confidence Thursday, February 15 Unemployment rate Wednesday, February 21 Wage price index THE BUZZ Scams and insurance delays push complaints to record high If you thought you had a busy 2023, spare a thought for the team at the Australian Financial Complaints Authority (AFCA), who took on a record 102,790 complaints in 2023 – 23% more than in 2022. AFCA deals with complaints about financial services and products, though it only steps in as a mediator if a resolution can't be achieved between a consumer or small business and their bank, insurer, or superannuation fund. Scams notched up the highest growth in the…

M PAUL CLITHEROE Q&A Need Paul's help? Send your questions to: Ask Paul, Money magazine, Level 7, 55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Sorry, but Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. Rachel says her sister has conned their parents in a property dispute Sadly, this is typical of the dramas that wreck families Q Five years ago, my elderly parents had to sign their house over to my sister to sort out issues with her mortgage. They had previously built and lived in a large home together, but she then purchased a home before…

Satisfying a condition of release is the key to accessing your savings Be wary of setting up your own super fund – they're expensive to run You have certainly nailed it when you say super is confusing, Michelle. At times I get very frustrated about this; at other times I just have to laugh. A pretty good summary of the complexity in super is that I gave up trying to work out the incredibly detailed and complex issues in super legislation years ago and use a specialised super expert who works inside the firm that gives us tax advice. At a general level, I've got pretty good knowledge of money issues, but when it comes to individual, specific advice, we all need a professional. But we can take a look…

NEW SOUTH WALES STANDOUT LOCATION Canterbury-Bankstown In the summer edition of the Price Predictor Index, Hotspotting ranked the Canterbury-Bankstown LGA as ‘the national growth star’, the strongest municipality in Australia for real estate performance. Among the leading suburbs are Bass Hill (median house price $1.1 million) and Condell Park (median price $1.2 million for houses and $785,000 for units). 2023 REVIEWED City of Wollongong We singled out Wollongong last year because buyers were seeking an affordable lifestyle close to the capital city and Wollongong ticked many boxes. It ended 2023 as the strongest rising market in regional NSW and many suburbs recorded good price growth, headed by Figtree (up 18%) and Mangerton (up 14%). Sydney began 2024 as one of the nation's leading growth markets. In 2023, it recovered from…

PHIL SLADE MIND GAMES There are myriad stories about Warren Buffett that we've heard many times over. But the other day I heard a new story that I think is very apt for today. A fellow presenter had a few moments alone with Buffett backstage at an event. It was the height of the GFC in 2008 and the concerned colleague asked him: “With so much uncertainty, upheaval and disruption in the market, how on earth can we determine what the best investment strategy is?” Warren said: “Do you know what the most popular chocolate bar in 1930 was?” “No,” he replied. “Snickers,” said Buffett. “Do you know what the most popular chocolate bar was in 2007?” he continued. The other speaker shrugged, bemused. “Snickers.” Buffett's point was that even…

VITA PALESTRANT SUPER What does it take to set yourself up for a secure and happy retirement? It's a question five million baby boomers will ask over the next few years. While you can get away with limited engagement when your super is in accumulation phase, it's not an option when you exit the workplace and have to live off your hard-earned savings. There is a whole host of things to figure out: which retirement product to choose; what your living costs are going to be; the amount of income you need; and whether you are eligible for any government benefits. It's not something to leave to the last minute. Marisa Broome, principal of Wealthadvice, suggests the following approach. “The first thing you have to work out is whether you…

I like the concept of a ‘new’ year. For a stockmarket trader, it's as good a time as any to take a moment to look back and torment yourself with all those things you didn't know, but could have guessed, that would have made investment so easy over the past 12 months – simple things that would have taken all the stress out of it, saved an enormous amount of time and helped us to prematurely and gloriously retire. Every year there are a handful of these things that you needed to know that would have swept away all the bollocks, the financial theory, the research, the complications and all the endless blah, blah, blah we were bombarded with. Things that made us money, a few words that we shoulda,…

The past three years have been a roller-coaster ride of fear, greed, opportunity, loss and profit. I put those last three words in that order for a reason: despite a slowing economy, rising prices and accelerating interest rates, the Australian Securities Exchange delivered a healthy gain in 2023. And in the US, the S&P 500 did even better. Here at home, the information technology sector was the top performer, followed by consumer discretionary. How is that possible, with a slowing economy and retail sales (excluding food) going backwards, year on year? Essentially: expectations. The prospect of lower sales (and consequent lower profits) was largely factored into share prices at the beginning of 2023. To wit: when Harvey Norman (in which I own shares, for the record) announced that sales had…

‘What are the top ways you plan to reduce your living expenses this year?’ JOANNA TOVIA Senior journalist, Money When scrolling on social media, where we're all targeted with ads for things we love, I'm trying to get into the habit of saying “I have everything I need” when I'm tempted to make a purchase. It's a surprisingly effective way to curb those impulse buys. Keeping the kitchen well stocked with ingredients for simple dinners is also a goal, to reduce what we spend on takeaway. See Joanna's feature about the pros and cons of house and land packages on page 66. CHRISTOPHER NIESCHE Journalist This year I'm planning to try out the Wendi app, a subscription management service that looks back through several years of bank transaction data to…

COVER STORY RESIDENTIAL REAL ESTATE has started 2024 with a lot of momentum. Buyer demand has become stronger over the past 12 months and most (though not all) cities and regional markets have launched the new year with considerable impetus. So, 2024 is shaping up to be a positive year, continuing the trend that built in key markets as 2023 evolved. I don't expect booms, but rather steady growth in most cities and regions. Just as 2023 defied the forecasts of economists, delivering solid price growth in most jurisdictions, 2024 will do better than the pessimistic predictions that emerged late in 2023. Nicola McDougall, president of Property Investment Professionals of Australia (PIPA), says all the reasons for upward price pressure in 2023 remain. “Even with the reduction in migration by…

COVER STORY TOP 50 SHARES I often get asked “Where should I invest, Jess?”. To which I usually respond with, “Pick a great company you think will be around in 10 years.” This kind of advice is an echo of Warren Buffett's investing style: “If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes.” Consider what one of the most successful investors, the late Charlie Munger, said when he was asked about the secret to his success. He gave a oneword answer: “Rational”. This straightforward outlook sets the scene for successful investing. I have interviewed many investment managers and chief executives in my career and most of them have become wealthy by investing for the long term. Rome was not built…

MAX RIAZ MANAGED FUNDS As global markets grapple with the rising tensions between the US and China over Taiwan, investors are wondering how to navigate the landscape. A recent essay in Foreign Affairs magazine titled ‘Preparing for a Long War With China’ offers a crucial perspective on the potential for conflict and its implications for global investment returns (particularly in the US and Australia). This article aims to provide investors with the possibilities for returns in the context of potential war between China and the US, looking at how markets responded in past wars to help us understand what might happen. The essay points to the increasing probability of a conflict, particularly given China's recent military actions in the Indo-Pacific region. Taiwan is underscored as a potential flashpoint, given its…

M ALEX DUNNIN OUTLOOK It's time to reset ourselves for another year. But first, let's appreciate how much things improved during the 2023 calendar year, albeit knowing some things did get worse. Inflation ended 2022 on a peak of 7.8% before beginning to come off the boil as it finished 2023 at just below 5%. Nevertheless, because our Reserve Bank took too long to raise the cash rate in the first place to fight inflation, it meant that the cash rate finished the year higher than where it started: 3.10% at the end of 2022 compared with 4.35% at the end of 2023. As a result, mortgage rates climbed during the year from an average 5% to an average 7%. At least average rates on term deposits also rose, although…

Profile Greg Taylor Entrepreneur who founded Step One underwear. Age 42; lives in Paddington, Sydney, and has a one-year-old son, who is taking Mandarin language lessons. “It's difficult to learn when you are older,” explains Greg. As a boy, Greg wanted to be a Boeing 747 pilot and he eventually started taking flying lessons 10 years ago; loves swimming and working out in his home gym; collects watches – “anything that ticks”. Credits his father, Maurie, and mother, Colleen, as the best parents he could wish for. “They gave me every opportunity.” First job, growing up in Benalla, Victoria, was collecting cans at the football. Later, hired classmates to collect them for him, paying them only half the price he earned. “I was just directing the traffic.” His best investment…

How can I take $500k out of super to buy a home? I received a superannuation split as part of divorce proceedings. The money, about $900,000, is with CSC (military super) and is in its growth phase; it accumulates about $45,000 a year as an Associate A account. Potentially, my super will increase by $300,000 by the time I'm 60 and by another $350,000-$400,000 by age 67 if left untouched, bringing the total close to $1.6 million. I have just turned 54 and would ideally like to access my super (part thereof) at 60 so I can put it with other funds to purchase a freestanding home. Is there a way to do this that does not involve a self-managed fund? I realise retirement age is age 67 but it's…

Predictions versus outcomes At the beginning of 2023, we endorsed “a growing chorus of real estate analysts who are forecasting that residential property prices will rise in 2023”. We noted that economists working for the big banks and other institutions were predicting major price decline, but specialist real estate researchers saw prices growing in the year ahead. We backed the specialists over the economists and stated we saw solid, but not prolific, price rises in most markets across Australia. Here's what we reported 12 months ago in Money magazine: No one is forecasting rises like we saw in 2021, when the national average was an increase above 25%. Rather, most analysts are suggesting moderate growth. That's certainly how we see it at Hotspotting. It never occurs to mainstream media to…

SUSAN HELY FAMILY MONEY Parents and grandparents are becoming increasingly anxious about the financial future of their children and grandchildren, and with good reason. “People are worried about their kids being able to afford houses in the future, and being able to move out of home,” says Chris Brycki, CEO of Stockspot, an online investment adviser. During the most recent ASX Investor Day events around Australia, Brycki had the opportunity to address the audience, and the most popular questions were about the best way to set up an investment for children and grandchildren. “A lot of parents are trying to be proactive in helping to encourage kids to save, and they are helping to save for kids earlier, knowing that the power of compound growth will play out over many…

ANTHONY O'BRIEN SMALL BUSINESS Reaching new customers and keeping them engaged is a challenge for any small business, but the right social media strategy can light a fire under your business and give it the personality it needs to set it apart from competitors. A report by consumer insights platform Meltwater found 81% of Australians engage with social media. Along with keeping up with friends and family and catching up on the latest news, close to one in four uses social media to find inspiration for things to do and buy. In other words, social media can put you in touch with consumers who are willing and ready to spend. The size of your marketing budget is less important than you might think. Paid social media advertising doesn't always pay…

PAM WALKLEY REAL ESTATE It might come as a bit of a surprise but, according to the Rural Bank's Australian Farmland Values 2023 report, Australian agricultural land has been a strong long-term performer, with the national median price for farmland rising by an average 8.5% a year in the 20 years to 2023. It has outperformed the S&P/ASX 200 and residential property over one, five, 10 and 20 years. “While farming is a volatile industry beholden to the cycles of the weather and global markets, the value of farmland has proved to be resilient over the past few decades,” says Michael Curtis, senior agricultural analyst with Rural Bank. “Not only have farmland values withstood the various agricultural and economic downturns that have arisen, farmland has continued to grow and perform…

Source: Rainmaker Information. Data sourced October 31, 2023. *Numbers stated here depict averages, other than the Rank column, which is the total number of funds in the category. For any queries on these tables, please contact info@rainmaker.com.au. The tables on these pages contain data and information to help you compare managed funds, which are pooled funds managed professionally by investment experts. Managed funds displayed in these tables are multi-sector or asset class specific. Multi-sector managed funds invest across a diversified mix of asset types spanning equities, property, bonds, cash, infrastructure, private equity and alternatives. Managed funds are normally set up as unit trusts. You may be able to invest in them directly or through a platform. These products may be recommended to you by a financial adviser. The performance results…