Money Magazine March 2021

There are three types of people in the world: those who make things happen, those who watch things happen and those who wonder what happened. For much of 2020, it felt as if the entire world belonged to the third camp. We had no idea what was going on and hoped we would dodge the worst that the onset of the pandemic was throwing at us. This year we want you to wrestle back the financial control you’ve lost along the way. Our cover story “Your Game Plan” (page 32), plus “Mysteries worth solving” (page 80) and “Look for the hidden gems” (page 84) outline the steps to navigate further uncertainties and take advantage of the new opportunities that have presented themselves. We’ve also received reader questions about index investing, which inspired…

Letter of the month Do the sums before switching banks I have been reading your magazine for years now and still enjoy it. I keep seeing articles about break-ups with your bank and encouragement to switch to get a better deal. Sometimes a better deal can be costly – from discharge fees, application fees to break costs, it all adds up. Years ago I switched banks, lured by lower interest rates and a bonus cashback offer. In the end I didn’t really save much. I am happy with my new bank, but I am still kicking myself. I had to change all direct debits, etc. Only change if you are really saving money. Do your sums first. Petra Anyone for coffee? Thanks for publishing my letter (Ask Paul, “Can’t even buy a takeaway coffee”, February). You…

Contact us To send a letter to the editor, write to: Money, Level 7, 55 Clarence Street, Sydney NSW 2000 or email money@moneymag.com.au For all inquiries and letters, please include name, address and phone details. Letters may be edited for clarity or space. Because of the high number of letters received, no personal replies are possible. How to get Money Subscribe to the print or digital edition, as well as our free weekly email newsletter via the Money website or: Online: magshop.com.au/ money-magazine Call: 136 116…

PETER ESHO Peter, a contributing writer, says: “One of the things I do regularly is follow people on social media whom I intentionally disagree with. I then rotate on a quarterly basis once I’m bored. This opens up my mind to their perspective, helps me learn new things, reaffirms things I’m passionate about and also screws with Facebook and Google’s algorithm, which is always fun.” PAM WALKLEY Real estate writer Pam says: “I stepped out of my comfort zone a few years back when I moved to Armidale, in northern NSW. I’d lived in big cities all my adult life but for me the move has been life changing. Sure, I miss some things but the pluses – clean air, space, clear, starry skies, friendly less-stressed people, no Covid – far outweigh them.…

What a difference a year makes – 2020 especially. In the past couple of months, I’ve been marvelling at the Facebook memories that keep popping up about what I was up to before lockdowns started in March 2020 – Elton John, New Order, A Chorus Line, work functions and the usual social events that used to happen. It seems much longer than 12 months. Looking back, I can see that a lot more changed than just Covid restrictions, in particular my mindset, confidence and goals. As you might have read last month, I was looking to break up with my bank – I was shopping around for a new loan. Because the current price of my property dropped, one option I had was adding to the equity to guarantee the best interest…

W hen calculating age pension payments, Centrelink looks at two tests: assets and income. Where Covid-19 has negatively hit your investments, property or super, you may be eligible to receive an age pension or have a current payment increased. The deeming rates for a single are now 0.25% on the first $53,000 and 2.25% for every extra $1. With cash rates low, you can maximise your earnings potential with no effect on your pension. A single age pension is $24,551pa. To earn the same amount in term deposits at today’s typical low rate of 1%, you would need $2.45 million in the bank. So taking advantage of an aged pension can result in a lucrative payment. People in aged care can choose between a refundable accommodation deposit (RAD) or daily accommodation payment (DAP).…