Money Magazine

Money Magazine April 2021

Money magazine is Australia’s longest-running, highest-selling and most-read personal finance magazine. Money magazine provides credible, independent, easy-to-understand financial advice to help its readers save money and make the most of their investments.

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11 Numéros

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4 min
paul’s verdict

I reckon the starting point here is a stocktake of where you are. You own your home, and after the subdivision and sale you’ll have cash of around $600,000. Then you have equity of around $100,000 in both your investment properties and also in super, a total of $300,000. Let’s put your house aside. It is a wonderful asset, in particular with our aged pension system, where a family home does not count as an asset towards a pension. For all Australians, getting to retirement with some sort of home ownership, be it shared with a partner, friend or a family member, is really a key life goal. It does not need to be grand or in an expensive city. But even with little else in the way of investments and…

5 min
more magic in the making

I first met Hamish Douglass in the early 2000s at an annual meeting of Cabcharge (now A2B). We ended up sitting next to each other in the front row and introducing ourselves. At the time he was a big shot at Deutsche Bank, but his passion for investing was obvious right away. A few years later he co-founded Magellan Financial Group (ASX: MFG) with business partner Chris Mackay. On May 5, 2007, I sat down with the two of them and a few other investors for a memorable dinner in Omaha, Nebraska, ahead of the 2007 annual meeting of Warren Buffett’s Berkshire Hathaway. At the time of our meal, on the banks of the Missouri River, Magellan was still working out its financial structure through a relatively complex transaction. A year later,…

2 min
trusted advice can make a big difference

Melissa Caddick posed as a financial planner to allegedly defraud her clients of millions of dollars before disappearing. In reality, she was not a qualified adviser. The terms “financial adviser” and “financial planner” are restricted by law to those authorised by ASIC to provide advice. They must meet stringent educational and ethical standards and must undertake continual professional development to retain their licence. The lesson here is to do your checks before entrusting them with your money. (Nicola Field covers this in more detail on pages 42-45). Research shows that people who are already receiving advice are great proponents of the service. In CoreData’s report The Value of Advice, 90% of clients say that accessing financial advice has left them in a better position and 89% say advice has allowed them to lead…

1 min
news bites

More than 400,000 Aussies placed their first trade in the last two months, according to Investment Trends. “Young Australians are increasingly embracing investing, with one in six first-time investors under the age of 25,” says Irene Guiamatsia, from Investment Trends. An important prompt was the desire to learn a new skill, highlighting how many spent their free time during the lockdowns. The ACCC is focused on super, with more than 20 enforcement investigations under way. It recently commenced civil proceedings against Rest and Statewide Super for allegedly breaching the Corporations Act and ASIC Act. ASIC alleges Rest wrongfully discouraged members from switching funds, while Statewide Super is accused of wrongfully charging insurance premiums to members who didn’t hold group cover. According to the ATO, the average SMSF member balance for women has…

3 min
you can take it easy – it’s not a race

NAME: Kate Campbell, 22 AIM: Retire at 40 INCOME NEEDED: Expects this to change as she nears her retirement, depending on circumstances, but around $40,000 a year INVESTMENT STRATEGY: Automatic deduction into a savings account and then dollar cost averaging into a diversified portfolio of ETFs. Paying attention to her superannuation. KATE SAYS THE PAST year confirms the logic in following the FIRE goals. “You never know what tomorrow may hold. I want to be financially secure and I’ll keep adjusting that plan for whatever life throws at me.” Four years ago, when she started on the FIRE path, she thought it might be a phase. But it has become embedded in her approach to life. “When I set my financial goals each year, FIRE is a guiding framework,” she says. Kate has a long-term horizon…

1 min
check if your adviser is the real deal

The need for consumers to check an adviser’s credentials has been thrown into the spotlight with the recent case of missing Sydney woman Melissa Caddick. Caddick is alleged to have siphoned off $25 million of her clients’ money while acting as their financial adviser. But Caddick was unlicensed, and reportedly used someone else’s AFSL without consent. A quick online check shows that neither Caddick nor her company Maliver Pty Ltd are listed on ASIC’s financial adviser register. If investors had run the AFSL number Caddick was using through the financial adviser register’s search function, they would have seen that she didn’t hold a licence in her own name, and this may at least have prompted further questions.…