Money Magazine October 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.

Rainmaker Information Pty Limited
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11 Números

en aquest número

1 min.
for love and money

Teamwork makes the dream work, especially when it comes to personal relationships. This month, we look at matters of the heart and money. As Nicola Field writes, two is better than one when it comes to fast-tracking your wealth. But there are caveats and ways to navigate the thorny issues of secret spending, over-borrowing and poor savings habits. After reading our cover story (page 32), we hope you’ll find a way to enjoy coupledom without breaking each other’s hearts and bank accounts. Once you’ve looked at that, turn to our Super Booster article (page 55), where Julia Newbould explains what “lifecycle” investing means. The way to invest through your super fund has changed over time and it’s in your best interest to get under the bonnet to see what it looks like…

2 min.
letter of the month

Air travel has a huge environmental cost “As humans get richer, they travel more” ... so said Steve Johnson in “Why predicting the future isn’t enough” (August). According to the German non-profit organisation Atmosfair, flying return London to New York generates about 1000kg of carbon dioxide per passenger, which is more than many people in the Third World create in a whole year. The pollution disparity is gobsmacking. Moreover, we know it is the poorer people who will suffer the most dire effects of climate change. Meanwhile, according to a report published by the Brookings Institution in 2018, the middle class is already the largest segment of demand in the global economy and is projected to reach some 5.3 billion people by 2030. If 5.3 billion people express their newfound wealth by taking an…

1 min.
who are you most missing during lockdown?

SHARYN MCCOWEN “As soon as ‘lockdown unhappens’, as my youngest nephew says, my husband and I will be heading for country NSW to be reunited with my family. It’s the longest we’ve ever been apart from them, and FaceTime family dinners, while lots of fun, are no match for the real thing. Not to mention the challenges of maintaining a long-distance relationship with my beloved blue cattle dog …” BOB CHRISTENSEN “As the family outlier, I have a lot of catching up to do with siblings who live in a state that treats NSW citizens with undeserved suspicion and with in-laws who live halfway around the globe and have plenty of their own problems. Thank goodness for Zoom, FaceTime and good old-fashioned phone calls. On the upside, I’ve saved a fortune on airfares…

4 min.
embrace the black swans

Back in 2007 I was given a book called The Black Swan by Nassim Nicholas Taleb. At that time the concept of black swans was rarely talked about: those random events that underlie our lives, ranging from world disasters to great advances. Their impact is huge, and nearly impossible to predict. The book’s message was to stop trying to predict everything and take advantage of uncertainty. The term became quite overused during events such as September 11, the global financial crisis and, of course, now the pandemic. But the idea of accepting uncertainty has never been more important than it is today. The last pandemic occurred 100 years ago – almost none of us had to live through it, but we can still learn from this and other disruptive life events. The lives…

1 min.
retiring? move shares into super

As you near retirement, it may be a good time to move shares into super. Many people are surprised when I tell them it is possible to contribute your shares to your SMSF in what is called an “in-specie” contribution. Shares that are owned personally will have dividends and capital gains taxed at your marginal rate. If you are retired and drawing an account-based pension, the dividends and any capital gains are tax free when your super balance is in pension phase. There are a few things to consider: 1. Making an in-specie contribution of shares triggers a capital gains event personally. This means that if you are transferring shares that have gained in value you may need to pay CGT. 2. You must choose a date for the transfer, properly report the true…

2 min.
simple tax rebate could narrow the super gap

Taking time off work to raise children has put women behind the superannuation eight-ball, but could a simple tax rebate help even the gender divide? Yes, according to a new report by KPMG. The median super balance for men aged between 60 and 64 is $204,107. By contrast, women in the same age group have a median balance of $146,900, or 28% less. For the pre-retirement years of 55-59, the gender gap is 33% and in the peak earning years of 45-49 it’s 35%. As of December 2020, 55% of those collecting the full pension were women. “Time spent out of employment is a major contributor to unequal levels of superannuation balances, as women miss out on super contributions in some of their peak working years,” says Alison Kitchen, chair of KPMG…