Money Magazine February 2021

When Money magazine first started its annual list of top 50 property hotspots, no one could have anticipated that a pandemic in 2020 would give the term “hotspot” a double meaning – and not a good one. But our cover story (page 34) is definitely focused on the suburbs and regions that are most likely to enjoy great returns (not places in temporary lockdowns) and you’ll find opportunities galore spread across all the states. In fact, it’s heartening to see property expert Terry Ryder, from Hotspot-ting, predict a property boom in 2021. He says that not since 2001-04 have we seen big price rises across all markets. Check our table of the top 50 suburbs on page 39 to see if you’re sitting on a goldmine (relatively speaking) or where to look…

Letter of the month Desperate retirees really have to dig deep I have enjoyed reading articles on the plight of retirees who had intended to supplement their incomes with interest received from their investments – confirmation in spades that I am not alone. We are at a time in our lives when chasing higher turns involving greater risk leaves us vulnerable. Putting our savings in banks has little reward and is even detrimental when balances are sometimes used by authorities to determine what we are and are not entitled to. It can be demoralising seeing someone who has spent freely get handouts, while the person who lived frugally to provide for a better retirement misses out on the same help/perks. Might there be merit in burying money? An elderly gent told me how his…

NICOLA FIELD Nicola, who writes for Money, says: “Getting smart about super is top of my money to-do list for 2021. As a self-employed freelancer, I love that I can claim my super contributions on tax. But instead of tipping in one big lump sum as part of the mad scramble at the end of each financial year, I’m setting up regular contributions to steadily grow my super savings. Dollar cost averaging, here I come!” JULIA NEWBOULD Julia, Money’s editor-at-large, says: “I want to flip my spending mindset and stop poring over shopping catalogues and lock more of my income away for big-spend items like a new bathroom with a bath. I usually set up special accounts for projects like this so I can be motivated as I get close to my goal.…

EDITORIAL Founder & editorial adviser Paul Clitheroe Editor-in-chief Michelle Baltazar (02) 8234 7500 michelle.baltazar@moneymag.com.au Editor-at-large Julia Newbould julia.newbould@moneymag.com.au Art director Ann Loveday Senior sub-editors Bob Christensen, Debbie Duncan Senior writers Susan Hely, Pam Walkley Senior journalist David Thornton Digital editor Sharyn McCowen CONTRIBUTING WRITERS Jessica Amir, Mark Chapman, Annabelle Dickson, Peter Dockrill, Peter Forrestal, Nicola Field, Greg Hoffman, Mickey Mordech, Anthony O’Brien, Benjamin Ong, Marcus Padley, Scott Phillips, Vita Palestrant, Zach Riaz, Terry Ryder, Annette Sampson, Phil Slade, Gaurav Sodhi, Noel Whittaker CONTRIBUTING ARTISTS Hayden Brotchie, Reg Lynch PRE-PRESS Peter Suchecki PRODUCTION Head of design and production Tim Verrender tim.verrender@rainmaker.com.au ADVERTISING Director – head of media sales Stephanie Antonis (02) 8234 7547 stephanie.antonis@rainmaker.com.au Account manager Sam Starrat (02) 8234 7531 sam.starrat@rainmaker.com.au MARKETING Head of marketing Julian Clarkstone julian.clarkstone@rainmaker.com.au MANAGEMENT Managing director Christopher Page Executive director Alex Dunnin…

During the Christmas holidays, I started going through a break-up. Apparently, break-ups are common this time of year, mostly because we have more time to reflect on what we do and don’t want in our lives. So, I decided to break-up with my loan provider. It was our Best of the Best issue (December 2020) that inspired me to make a change and I hope it has inspired you, too. Until recently, I was one of those people who stick with the same providers, regardless of rates and service, because I thought it would involve too much hard work to do otherwise. I’m not alone – despite a third of mortgage holders being dissatisfied with their current bank, few make the switch, according to a 2019 Deloitte Access Economics survey. This is where…

There is no “one size fits all” when it comes to retirement. This is especially the case when figuring out how much to save to retire comfortably. Most people are after a lifestyle that broadly matches the one they had during their working lives. Despite this, the super industry regularly uses retirement targets that claim you’ll only be “comfortable” if you spend as much as the top 20% of income earners. These targets are misleading for people on lower and middle incomes, who would have to live more frugally during their working lives than in retirement, which is out of step with people’s desire to smooth their income across their lives. This is as unsurprising as it is unhelpful from an industry that has a financial incentive for you to over-invest in…