Indholdsfortegnelse for October 2024 i Money Magazine

Change… it’s the one constant in life. But the rate of change, well, that’s another thing entirely. We live in a time of accelerating technological change. Looking back at history, it took 2.4 million years for our ancestors to control fire and use it for cooking, 66 years to go from the first airplane flight to stepping foot on the moon and now, a mere two years after OpenAI released ChatGPT to the public, AI is fundamentally changing society’s structures, from medicine and banking to jobs and education. How does that relate to personal finance? People who care about their financial position need to be aware of what’s out there: the tools, products, services and developments that can help you or hinder you. And that’s where we come in. The…

AMAN RAMRAKHA OUTLOOK I am not sure who came up with the term ‘the retirement trilemma’, but it is a neat encapsulation of the challenges faced by those in retirement. The trilemma refers to the desire in retirement to ensure three objectives: • Ensuring you have access to a regular income stream • Ensuring you have access to a pool of capital that can be drawn down to meet expenses for things such as travel or unexpected out-of-pocket medical bills and • Protecting your savings against longevity risk (your money will run out before you die), inflation and market volatility. The dilemma or trilemma is that these three objectives can be difficult to reconcile. So, how is it possible to achieve all three? If your pool of capital is large…

MARK CHAPMAN TAX TIP If you receive a compensation payment, determining whether it is taxable or not can be confusing. The general rule is that if you receive compensation that relates to the loss of your wages or income only, then the amount will be assessable income, irrespective of whether the amounts are paid to you as a lump sum or on a periodic basis. This is because the compensation is being provided as a substitute for taxable income – your wages or salary – which no longer exists, so it takes the same character. Any legal fees that you incur in claiming such compensation would generally be tax deductible. However, if your claim relates to any wrong or personal injury suffered in your occupation and you agree to a…

Rather than helping to lead consumers to better decisions, could a reliance on technology be making shoppers less savvy and more prone to buyer’s remorse? That’s the conclusion of a three-year study conducted by the strategic research agency Fifth Dimension Consulting, which delved into the impact that technology has had on consumer behaviour and decision making. The research focused on Millennials, Gen Z and Gen Alpha who have grown up using technology to assist in their decision making. What it found, though, was a notable difference compared with the older Baby Boomers and Gen X. “Our research confirmed that a greater dependence on technology is highly likely to be altering brain development and function, negatively impacting problem-solving skills, memory function and impulsivity,” says Lyndall Spooner, the chief executive of Fifth…

MORE INVESTING STORIES ON P70-75 AI boom increases the risk Even with a few strong bouts of turbulence, US technology stocks largely had a bumper start to the year, helping contribute to the strong performance of indexes such as the S&P 500. Much of the hype has been focused on mega caps such as Nvidia and Facebook, whose share prices have soared. But a reality check in early September, when Nvidia crashed more than 10%, highlights the risk of over-concentration in a portfolio. “Investors in a broad-based index such as the S&P 500 still face heightened concentration risk -their portfolios are less diverse and returns are highly correlated to a handful of large technology stocks,” warns Dan Miles, co-chief investment officer at Innova Asset Management. 148% Growth in the Nvidia share…

Lovisa finished the year with more than 900 stores, gross margins that exceeded 80% and net profit growth of over 20%. That impressive feat was met with the market’s collective shrug; shares finished the day about 10% lower. Still, Lovisa is booming. Five years ago, the business generated $250 million in sales. Last year, it made $699 million. Sales might breach $1 billion by 2027. Net profit grew from $37 million in 2019 to $82 million last year. That path isn’t without trouble. Last year’s profit was helped by a $15 million decline in executive pay. Without that boost, trading profits were a little disappointing. The US remains the largest single market, with 207 stores, although only 17 were opened over the year. China has just a single store and…

Three places to slumber Sleep. It’s important for our physical health and wellbeing. Yet, good sleep is elusive for many of us, with up to one in five Australians suffering from a doctor-diagnosed sleep disorder – and many others are just not getting enough slumber to feel fresh each day. A new way to deal with this is a dedicated package that helps people catch up, re-educate themselves and reset their sleeping patterns. Here is a selection of what’s on offer, be it short and sweet or more immersive: 1. The Reef House, Palm Cove, Queensland reefhouse.com.au This adults-only accommodation overlooking the Coral Sea offers all guests the Sleep Easy program, devised by its sleep scientist, Sabine Christelli. This consists of information and aids, such as herbal tea, pillow and…

The cost-of-living crisis, a lack of affordable housing and a cold winter have left record numbers of people in need. The question facing many of us is where to put our charity dollars to best target those we want to support. The answer could be the Salvation Army, which was established in the slums of London in 1865 and is now one of the longest-running charities in the world. In Australia, the Salvation Army’s website allows you to choose the style of donation you’d like to give depending on amount and intended recipient. For instance, you can donate a $5 Cup of Kindness (soup) or a $20 cosy blanket to a homeless person. Or you can offer $45 so a struggling family can have a hearty breakfast for a week…

MY MONEY NEOBANKS Australians are hard-pressed these days to find a bank branch or ATM in their local village or shopping mall. Between 2017 and 2021, 575 bank branches were shuttered Australia-wide, according to a 2022 report by the consumer advocate Choice. CommBank alone has closed 354 branches in the past five years – along with 2297 ATMs – while the Big Four banks combined (ANZ, CommBank, NAB and Westpac) have closed 1446 branches since 2018, according to data compiled by S&P Global Market Intelligence. Branch closures are partly a response to a changing customer base that has come to rely strongly on digital and mobile services (assisted by Covid lockdowns in 2020 and 2021), coupled with improved technology that has enabled the online migration of many traditional banking services,…

The trend is clear: Australians are using less cash to pay their way, with the share of in-person transactions made with cash halving between 2019 and 2022, according to the Reserve Bank (RBA). While cash payments clearly aren’t as popular as they once were, there were still almost two billion banknotes worth around $101 billion in circulation at the end of June 2023. And with all this cash still floating around, it’s understandable that things sometimes go wrong. Notes tear, they become worn and, in some cases, they are severely damaged. It’s no good to anyone having damaged notes circulating in the system, though, which is where the RBA’s damaged banknote claims service springs into action. “When people have a damaged banknote in their possession, they can take it to…

PHIL SLADE MIND GAMES In the bustling world of algorithms and digital disruptors, where fortunes are made and lost faster than you can say ‘bull market’, the importance of creating habits as a budding investor cannot be overstated. But let’s face it – the path to financial enlightenment is paved with more than just stock charts and spreadsheets; it’s also littered with the occasional existential crisis, panic-fuelled trading and a surprising amount of illogical behaviours. To mitigate these moments of madness, there are some routines and habits that can help set you up for better long-term success. For me, these are the top five: 1 The morning ritual: coffee, stocks and taming the panic monster Every seasoned investor knows that the day starts with a strong cup of coffee. For…

ANTHONY O’BRIEN SMALL BUSINESS Trading conditions are tough for plenty of small businesses right now, and CreditorWatch is predicting close to nine out of 10 (87.2%) of the 329 locations monitored around Australia will experience a rise in business failures over the next 12 months. While Western Sydney and southeast Queensland are expected to see the highest rates of business failure, in terms of industries, the food and beverage sector takes out the unenviable top spot for business failures by what CreditorWatch, a credit reporting and debt collection agency, describes as “a considerable margin”. It doesn’t help that the hospitality sector is also the leading industry for outstanding tax debts above $100,000. Simon Winter, principal of Raine and Horne Business Sales, says cost of living pressures mean the hospitality sector…

ZACH RIAZ MANAGED FUNDS For Australian investors, iron ore -the reddish dirt that turns into steel inside blast furnaces, as Bloomberg describes it – is important for portfolios. In fact, iron ore is important for Australians in general, as it is a major contributor to the Federal Budget. At the time of writing, the iron ore price of about $US90 ($133) a tonne (62% import/CFR Qingdao port) is down more than 25% over the past six months. The importance of iron ore is summed up by the ABC news headline ‘Iron ore price plunge could create $3 billion budget hole’. The largest and most-owned companies listed on the S&P/ASX 200 Index and exposed to iron ore are BHP (ASX: BHP), Rio Tinto (RIO) and Fortescue (FMG). They make up more…

In 2020, during the pandemic, CSL, one of the world’s leading biotechs, hit the number one spot on the ASX for market capitalisation. It was back down in third spot in early September. But a category in which CSL does regularly triumph is having one of the highest ASX share prices. It recorded a high of $313 in the past 12 months but was just over $300 at the time of writing after the market wobbles in early September. The only other member of the $300 club has been fellow health titan Cochlear, maker of the renowned hearing implant. It dipped just below $300 in early September but had notched up a 12-month high of $350. By market value, though, Cochlear is roughly a seventh the size of CSL ($19…

SCOTT PHILLIPS BEST IN BREED SECTOR ETFs There are a lot of exchange traded funds (ETFs). In fact, by most reckonings, there are more US ETFs than there are US listed companies. Which isn’t bad, per se – there are probably even more unlisted managed funds on top of that. But it does muddy the waters in what otherwise should seem a pretty simple part of the market. Back in the 1970s, Jack Bogle invented the idea of the ‘index fund’, which would simply hold companies in proportion to the total value of all of their shares. If, back then, General Motors was 5% of the US S&P 500, the index fund would invest 5% of its money in GM. If Exxon was 4%, then 4% of the fund would be…

Lucy Feagins Architecture and design lovers flock to The Design Files for their online dose of beautiful Australian homes. Here its founder reflects on a 16-year journey that began with a blog and grew into a popular, widely loved omnichannel publisher that reaches 1.5 million people each month. On the cusp of publishing its first bi-annual print product, The Design Files Magazine, Lucy talks about her relationship with money and leadership. Q Tell us about your early years. Did you grow up financially secure? What were your formative money experiences? I was fortunate to grow up financially secure – both my parents worked in advertising. However, my father was extremely anxious about money and ended up being financially abusive, which caused a lot of friction in my household. In my…

Association of Superannuation Funds of Australia (ASFA) 1800 812 798 (outside Sydney) 9264 9300 (Sydney) superannuation.asn.au Australian Communications and Media Authority 1300 850 115 acma.gov.au Australian Competition and Consumer Commission 1300 302 502 accc.gov.au Australian Energy Regulator aer.gov.au/consumers/making-a-complaint Australian Financial Complaints Authority 1800 931 678 afca.org.au Australian Securities and Investments Commission (ASIC) 1300 300 630 asic.gov.au Australian Securities Exchange (ASX) 131 279 asx.com.au CPA Australia 1300 737 373 (within Australia) +61 3 9606 9677 (outside Australia) cpaaustralia.com.au Do Not Call Register To reduce telemarketing calls 1300 792 958 donotcall.gov.au/contact-us/contact-details Fair Trading/ Consumer Affairs ACT: 132 281 NSW: 133 220 NT: 1800 019 319 QLD: 137 468 SA: 131 882 TAS: 1300 654 499 VIC: 1300 558 181 WA: 1300 304 054 Financial Counselling Australia National Debt Helpline: 1800 007 007…

CALENDAR OF EVENTS Thursday, October 3 Balance of trade Tuesday, October 8 RBA meeting minutes Thursday, October 10 Westpac consumer confidence NAB business confidence Thursday, October 17 Unemployment rate Wednesday, October 30 Inflation rate How a product passport could help shoppers to reduce waste Let’s imagine that you’re out shopping for a new pair of jeans. Success! You’ve found something that looks good. But in addition to the usual tags and labels, you notice that there’s a QR code on the jeans, which -when you can scan it with your phone – takes you to a website. There you find information about how environmentally friendly the jeans are: the composition of the materials, where they were sourced and how the jeans were made. In essence, it’s a run-through of the…

BOOK OF THE MONTH A SURFER’S GUIDE TO PROPERTY INVESTING: THE NEXT WAVE by Paul Glossop (Major Street, RRP $32.99) In this new edition, author and property expert Paul Glossop dedicates an entire chapter to exploring the upheaval that Covid – or the rogue wave as he refers to it, in keeping with surfing technology – brought to Australia, the challenges that came in its aftermath and how it affected the property market. “My solemn wish is for readers to benefit from what we’ve learned during this disaster and its repercussions … Think of it also as an opportunity to grow wiser as an investor. As history has shown time and again, it’s during periods of hardship that some of our greatest triumphs emerge,” he says. Ten readers can win…

For the first time since its inception, all 57 MySuper products have passed the Australian Prudential Regulation Authority’s (APRA) annual performance test. The test was introduced to weed out underperforming default super funds, with products that fail for two consecutive years barred from taking on new members. In its first test in 2021, 13 products failed the test, while five did so in 2022 and one in 2023. “This year’s results demonstrate the progress being made to address underperformance. At the end of June, all 15.7 million MySuper member accounts, with combined assets of nearly $1.1 trillion, were invested in performing products,” says Margaret Cole, APRA deputy chair. While noting that the test has been a “game-changer”, the advocacy group Super Consumers Australia has urged APRA to also include account-based…

It is only in the past couple of generations that many Indigenous Australians have been in control of their own finances. In some instances, First Nations Australians were denied the opportunity to manage their money into the 1970s. Many were part of the Stolen Generation and were placed on missions and reserves where they were paid in rations, blankets and tobacco, for example. If they did earn money, they were told what they could and couldn’t do with it. And then there was the widespread problem of the stolen wages, where Aboriginal people were told their funds were being held in trust, but they were never paid. “We’ve got this history where we’ve never had the opportunity to manage our own money and the concept is quite new,” says Phil…

QUAFF 2022 O’Leary Walker Watervale Riesling $25 Watervale makes some of the most impressive and long-lived whites in the Clare Valley. Here’s a reasonably priced example that could be happily cellared for five to 10 years or drunk immediately. It is powerfully aromatic, with pure lime juice flavours that are bold and intense. I suspect most would love it best with fish such as whiting or shellfish such as oysters or calamari. SPLURGE 2023 Soumah Yarra Valley Pinot Noir $48 Sometimes, we want to splurge without spending heaps of money. While it may be (relatively) easy to find an expensive red that is a great drink, perhaps it is more difficult to find a wine that satisfies without breaking the bank. For me, the solution is often pinot noir from…

PAUL CLITHEROE PAUL’S VERDICT YOUR QUESTION Hi Paul, I am on a disability support pension and I have just inherited $100,000-plus. I know I can’t buy a house with that amount. My best mate, who is a tradie and someone who stepped up when I was going through my treatment over eight years, has suggested we buy a house together (in north Queensland). He was going to buy anyway. He’s a good bloke, we are just mates of 15 years, we’re not a couple and we don’t live together. It seems to make sense to get out of the never-ending rental cycle. I’ve heard of a Mortgage Mates loan. Can I do this without losing my pension? Is this the way to go? CASE STUDY HAVE A QUESTION? If you have…

1 Vanguard Australian Shares Index ETF (ASX: VAS) Australia’s largest ETF, giving investors exposure to Australia’s top 300 companies. It offers potential long-term capital growth along with dividend income and franking credits. Fund facts • Assets under management (market capitalisation) at July 23 – $15.61 billion. • Benchmark – S&P/ASX 300 Index. Total returns to June 30, 2024 • 1 year – 11.91% (11.92% benchmark). • 5 years – 7.24% (7.22%). • Since inception in May 2009 – 8.99% (9.10%). Quarterly distributions. • Top five holdings – BHP, CBA, CSL, NAB, WBC. • Management fee – 0.07%. 2 Magellan Global Fund (MGOC) An unhedged global fund that holds a portfolio of 20 to 40 investments. The manager aims to invest in outstanding companies at attractive prices. The portfolio is designed…

Up up.com.au Features No monthly fees, 100% mobile, easy budgeting tools, colourful interface that includes emojis, chat and gifs. Ubank ubank.com.au Features Marketed as a ‘daily money companion’, leverages technology to send customers alerts about how to earn bonus interest. Douugh douugh.com Features Customers can borrow up to $2000 on demand for a fixed $12.99 fee and repay in four weekly instalments with no interest or late fees. revolut.com With 45 million users worldwide, Revolut makes it easy to travel and pay in the local currency and enables international transfers and crypto trades. Airwallex airwallex.com/au Features Enables multi-currency accounts, high-speed international transfers, borderless cards, expense management and online payments for businesses. Hay hellohay.co Features Mobile only. Offers great exchange rates online and abroad with no fees, markup or limit on…

Part two 6 On what basis can people contest the validity of a written will? A validly written will can be challenged on a number of grounds, such as: • Duress: People can exercise coercive conduct and duress over a vulnerable testator, especially if that person is a senior citizen or has a disability. • If the testator has a lack of mental capacity and didn’t understand the nature of a will, the size of their estate and the extent of the beneficiaries that they should consider, then the will can be proven to be of no effect. • The most common way to challenge a valid will is when a beneficiary or someone who has missed out on being a beneficiary alleges that there is inadequate provision for them…

SUSAN HELY FAMILY MONEY Most kids ask for a pet at some stage during their childhood and it can be hard to resist their pleas. My children wanted a kitten but, instead, I started the family pet journey small and cheap with goldfish, then our neighbour gave us her sons’ rabbits, which they were no longer interested in. Then a friend gave us guinea pigs, because their daughter didn’t feed or clean the cage, which had been part of the original pet deal. Then a work colleague gave us her zebra finches when her partner said they had to go. But my children still wanted a kitten. Eventually I gave in and, at a rescue centre, found a calico kitten that had been discovered meowing in a garbage bin. Theodora…

Streamline your search Save time and effort viewing properties that don’t meet your needs by preparing a list of non-negotiable features and wish-list items. “Your ‘must-have’ list will typically include the minimum number of bedrooms and whether you need a bath, a home office or garage space. The ‘wants’ list will contain items you might be prepared to compromise on, such as a guest bedroom, an extra living space or a swimming pool,” says Lloyd Edge, director at Aus Property Professionals. Keep your ears open If a property piques your interest during the open house, stick around for the entire viewing, says Dan Sofo, director at Unicorn Buyers Agents. “It’s not just what you see when you look around, but what you hear – conversations between agents and attendees and…

VITA PALESTRANT SUPER Starting a super income stream involves a whole host of considerations. They include whether to set up a reversionary pension: in the event of your death, income payments automatically go to your spouse, sparing them from chasing income payments and delays. “The only way to get absolute certainty with where your super pension goes on death is to make it reversionary,” says Colin Lewis, head of strategic advice, at Fitzpatricks Private Wealth. “You set it up at the outset. It’s a contract between you and your super fund’s trustee to continue making regular pension payments to your nominated beneficiary provided they’re eligible to receive an income stream – in all likelihood your spouse. “The pension automatically continues on death to the surviving spouse. They’ve got peace of…

GQG Partners Global Equity Fund Seeks to invest in high-quality companies with attractively priced future growth prospects in both developed and emerging markets. GQG Partners’ fundamental investment process evaluates each business based on financial strength, sustainability of earnings growth and quality of management. The fund seeks to limit downside risk while providing attractive returns to long-term investors over a full market cycle. T. Rowe Price Global Equity Fund A high-conviction, truly global equity portfolio seeking to invest in companies with above-average and sustainable growth characteristics. The strategy can invest in listed and ‘due to be listed’ companies. Aoris International Fund A highly concentrated portfolio of high-quality, wealth-creating businesses run by prudent and capable management teams. The strategy owns a maximum of 15 companies, which means the team has to be…

MARCUS PADLEY THIS MONTH I monitor a number of small company fund managers (good and bad); it’s easy to do when you have Reuters or Bloomberg. Small cap fund managers do more work researching smaller companies than anyone else and are perhaps the only investors who will spend significant time and money ($200,000 analysts) researching them. And some of them are really good at it. They love it, they succeed at it and their edge is obvious. No one else is paying these companies as much attention. It changes over time, but it is worth your while looking up some of the best-performing small cap fund managers (if small caps are your thing) and seeing what they are doing. Just Google it – they are not shy about telling you…

As you can tell by now, I’m a fan of old-school ETFs – the ones that offer lowcost, market-matching performance (less a tiny fee). And as an ASX investor, the most useful ETFs might be the ones that give access to international markets – exposure we can’t otherwise easily get without investing directly overseas. And for broad, low-cost exposure to the developed world’s stockmarkets, I don’t think you can go past one I also own: the Vanguard MSCI Index International Shares ETF. That makes it this month’s Best in Breed.…

PHIL SLADE Columnist I did 12 months of unpaid work for a niche management consultancy. At the time, I was completing my Master’s degree in organisational psychology, working a job to pay the bills and support a young family. However, the experience and knowledge I gained (writing documents, summarising research and supporting workshops) set me on course for a successful career. Hands down the best investment. Read Phil’s top five tips for novice investors on page 56. PAM WALKLEY Columnist My favourite is a real estate deal – a lifestyle rather than money-making one. Several years ago, I downsized but upgraded my home so I would have a fabulous place to live. I love light and the water, so I bought a small apartment overlooking Newcastle harbour and costing considerably…

Let’s face it: cost-of-living stress is real. With prices skyrocketing, how can we all get better at managing our finances? In 2010, I created Buy Nothing New Month after a life-changing trip to Antarctica, driven by a desire to protect our planet. But my journey with second-hand started much earlier, in 1997, when I was a broke temp in London, unable to afford new clothes for work. What began as a necessity turned out to be a savvy financial move. Now, buying second-hand isn’t just about sustainability – it’s a smart way to save. Buy Nothing New Month in October is all about reducing waste, rethinking our relationship with stuff and valuing what we already own. It encourages thoughtful purchases that keep more money in our pockets. Before making any…

There’s a saying that once you’ve put down roots, it’s hard to leave. But that appears to be truer in some areas than others. New data from the property platform PropTrack reveals that homeowners in a handful of suburbs across the country are holding onto their homes for more than two decades on average. Topping the list of most tightly held postcodes for house owners is the suburb of Church Point in the Northern Beaches region of Sydney, where residents have stayed in their houses for an average of 22.47 years. That’s followed by Mount Ommaney in south-western Brisbane (21.51 years) and Morangup (21.18 years) in north-eastern Perth. The tiny suburb of Dolls Point (20.70 years) in southern Sydney is the only postcode in the country where unit owners have…

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. David would like to see super funds set up from birth to take advantage of compounding. Shares provide greater flexibility for young people Q With people living longer and putting increased pressure on the age pension, why would our government not be inclined to encourage parents by various means to set up superannuation accounts for their children from birth? We know compound interest is…

SEE What is it? Ray-Ban Meta smart glasses It was only a matter of time before smart glasses became the latest accessory in the world of wearables. EssilorLuxottica and Meta have teamed up to provide their version. They sport the familiar Wayfarer design, but on either side of the lenses are two small cameras. Wearers can take photos and videos with the tap of a button or a voice command, while the open-ear speakers (only the wearer can hear) allow users to listen to music and make calls on the go. The glasses have a four-hour battery life, though the charging case can provide up to eight extra charges. Cost: From $539 ray-ban.com/australia/ray-ban-meta-smart-glasses HEAR What is it? Dyson OnTrac headphones These are the latest wireless, over-ear audio offering from Dyson.…

An inheritance is always bittersweet, Andrea. Obviously, someone you care for has died, but I think that they would be delighted that you plan to use the inheritance to purchase a home with your friend. I am sure you have seen the same thing happen. For me it is an all-toocommon story: friends invest together and due to the lack of an agreement between them, tensions flare and friendships can be destroyed. So, before we look at the money stuff, let’s look at the far more important friendship stuff. If you do buy together, I really want you to have a written agreement. You can buy a home as tenants in common. This is easy to do with your solicitor, who you would use to handle the purchase. You and…

1 Betashares Crypto Innovators ETF (CRYP) - up 68.25% A thematic fund that invests in a portfolio of big global players in the provisioning, mining and trading of cryptocurrencies such as Bitcoin. Holdings include Marathon Digital, CleanSpark, Galaxy Digital, MicroStrategy and Coinbase. It was listed in November 2021 and initially performed poorly, with returns since inception to July 24 at -22.59%. The index it tracks, Bitwise Crypto Industry Innovators, is -22.47% for the same period. Management fee is 0.67%. 2 Betashares Global Uranium ETF (URNM) - up 57% The thematic ETF provides exposure to global companies that are involved in the mining, exploration, development and production of uranium or modern nuclear energy, or that hold physical uranium or uranium royalties. Since inception in June 2022, it has returned 18.46%pa to…

ADOPTING OR BUYING A PET • From $29 to $800 if you adopt, depending on the type of animal and its age. • $800 to several thousand dollars if you buy from a breeder. MICROCHIPPING, VACCINATIONS AND DE-SEXING Up to $1000 in the first year (included in the price if you adopt). VET EXPENSES Up to $630 a year, depending on the pet’s health. HEALTHCARE PRODUCTS, SUCH AS FLEA, TICK AND WORMING MEDICATIONS Up to $320 a year. INSURANCE $60 to $120 a month. PET ESSENTIALS SUCH AS COLLARS, BEDS, BOWLS, TOYS, KENNELS OR SCRATCHING POSTS Up to $500 in the first year, then about $100 each year. COUNCIL REGISTRATION IF REQUIRED Between $40 and $200 a year. FOOD Up to $2024 a year for premium food, plus treats. BOARDING…

The question of building insurance is complex, because schemes differ across States and Territories. Here’s a guide to what, who and how much they cover. Australian Capital Territory • Scheme/insurance: residential building insurance. • Minimum cost of work: $12,000. • Cover: Up to $85,000 (set to increase to $200,000 from January 2025). Building work on houses and apartment buildings (three storeys and below) valued at more than $12,000 must be covered by residential building insurance. It protects owners against financial loss for incomplete or defective work should a builder die, disappear or become insolvent. Builders are responsible for taking out insurance and providing owners with evidence of it before work commences. New South Wales • Scheme/insurance: Home Building Compensation Fund (HBCF). • Minimum cost of work: $20,000. • Cover: Up…

PAM WALKLEY REAL ESTATE A fully paid-off family home isn’t simply a roof over your head, it’s part of your retirement plan. If you don’t have a fat super balance and can’t imagine living on just the age pension, you can use your home to boost your lifestyle. Most retired renters in Australia live in poverty, whereas very few retired homeowners suffer the same fate, according to a key finding of the Federal government’s 2020 Retirement Income Review. Could there be a better argument for owning a fully paid-off family home in retirement? “As homeowners generally have lower housing costs in retirement, they tend to have better retirement outcomes than those who rent. The home is also an asset that can be drawn on in retirement,” the review outlines. It…

Most people moving into retirement phase don’t have life insurance. However, it’s not uncommon for couples to divorce and remarry. You may have an older husband with a younger wife and young kids who has insurance to look after the family in the event of death. On death, this can be especially attractive with a reversionary pension because the insurance proceeds are added to the pension balance but don’t count against the surviving spouse’s transfer balance cap (TBC). Assume the husband on death had $1.5 million in a reversionary pension with $1 million in insurance. The pension is worth $2.5 million but only $1.5 million counts towards the wife’s TBC. If it wasn’t a reversionary pension, the wife could only commence a death benefit pension with $1.9 million – $600,000…