Money Magazine July 2019

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
11 号


in the world of retirement

Before the turn of the 18th century, humans lived, on average, to the ripe old age of 40. Three centuries later, many of us are just starting our careers, our families and our lives at that age. For some, life begins two decades later at 60. Here at Money, writing about retirement is a natural obsession. We publish numerous articles on superannuation, long-term investing and, in this edition, how to live life in retirement. Turn to page 34 where we invited three experts to provide a financial roadmap based on what you want your retirement to look like. This bumper edition features two milestones – the 15th year of the Consumer Finance Awards and the 20th anniversary of Money magazine. I’d like to name-check our managing editor, Darren Snyder, who has painstakingly…


Letter of the month Practical investment advice is appreciated I’d like to applaud the excellent article by Jo McCreery in your May cover story (page 40). Not only did she show how to invest, but she also named fund managers and ETFs that might be used. Many authors seem wary of providing such practical advice and leave the reader little better informed on a practical follow-up for investing. The otherwise informative article on investment bonds by four experts in the same edition would have benefitted greatly from mentioning which insurance companies provide bonds covering the various market indices. Tom Brave comments on the state of the nation Thank you so much for the bravery shown by Paul Clitheroe in his June In Your Interest: going largely against his readership (and their self-interest) and telling them…

what purchase are you most proud of?

JAMES WHEATLEY James is a financial adviser at Mercer. He says: “I am most proud of our first home. It was a very emotional purchase, but we stuck to our guns, were patient and purchased a property we loved which was close to family, transport and a fixer-upper we could add our own touch to.” ANN LOVEDAY Ann is art director of Money. She says: “I’ve become addicted to Facebook’s Marketplace where modern, vintage and antique treasures are up for sale. I was thrilled to purchase a splendid marquetry inlaid, cedar parlour cabinet, C1890s, for just a few hundred dollars. The detailed craftmanship is stunning.” RACHAEL ARNOLD Rachel is a financial planner at Profile Financial Services. She says: “After saving for several years, I purchased my Sydney home on a single salary at age 28.…

in your interest

It is a well-worn comment, but where did the past 20 years go? I have strong memories of starting Money magazine back in 1999. Channel 9’s Money show was one of Australia’s top rating television shows. My first book, Making Money, was also popular so it made a lot of sense to launch a magazine. Pam Walkley, a prominent, award-winning journalist and finance expert took up the role of editor. Effie Zahos had been a key part of the Money show team and I was delighted when she agreed to be deputy editor. You never quite know how a magazine launch will go and given I hadn’t been involved in one before, I had absolutely no idea. But the magazine proved to be really popular: the first issue sold like hotcakes.…

when investors come second

Exactly what drives a new fund launch? You would hope managed funds are created to meet client needs, but the reality is this is rarely the main driver. To ensure a fund’s success, at least in a time frame palatable to fund managers, it must be commercially viable in terms of fund flows from investors. But it also needs to “fit in”, or be categorised into peer groups of funds with similar investment strategies or asset allocations. The advantage is funds can be measured and compared, allowing them to be rated by research houses. Advice companies and dealer groups can then use these measurements to develop their recommended lists and, over time, benchmark the funds and rate their performance. As a result, fund managers will launch funds that fit into existing peer…

boards and bosses are hit where it hurts

The aftermath of the banking royal commission continues to be felt at the highest level of Australia’s financial services and insurance companies. Board chairs and directors at these firms have taken an 11% pay cut this year, although they had 11% increases the previous year. Managing directors and chief executives also saw pay packets drop 10% and 21% respectively, after large increases in 2017-18. The numbers come from the Governance Institute of Australia’s seventh annual board remuneration survey, which is conducted in partnership with McGuirk Consultants. Megan Motto, the chief executive of the Governance Institute, says beyond the royal commission exposing poor corporate culture, poor ethics and poor risk management – which led to several board and executive resignations – there has been “serious brand damage, hefty fines for poor conduct and, in…