Money Magazine November 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


join the fight against debt

Debt is like chocolate. It’s good in moderation but disastrous in excess. The problem is that many of us don’t know when we’ve had too much: three in 10 Australians are over-indebted; two in five can barely cover their home loan repayments; more than 1.5 million Australians are caught in a credit card trap. In short, we are becoming a nation of debt-aholics. That’s why our cover story this month is about debt management (page 36). Before you can build your retirement nest egg, you’d need to knock down your mounting debts first. The impact of good debt management is not limited to personal finance. Companies that borrow money only if they really have to stand to do better in the market. Check out our book extract (page 72) from Martin…

feedback letter of the month

Goodbye financial adviser, hello Money Quite unexpectedly, my husband recently received a call from a financial adviser he has been using for nearly 20 years. We recently moved out of Sydney to a regional area and hadn’t had much to do with him for many years for a number of reasons, but he wanted to visit us. At the meeting he told us he was retiring. At first I felt a bit unsure what to do next and made some inquiries to find another one in our new community. Then I thought, “Now I am retired, and even though I look after my husband full time, with a bit of help and some education there is no reason I can’t take over our finances myself.” The first thing I did was duck over…

what was the favourite thing you saved for as a child?

SCOTT PHILLIPS Scott is the chief investment officer at The Motley Fool. Scott says: “With a first-time-overseas holiday coming up at age 11, I was desperate for a $200 rolling, music-playing robot. The robot was pretty ordinary (it was the ’80s), but I think it helped teach me to save.” VITA PALESTRANT Vita is a contributing writer at Money. Vita says: “When we were growing up we were free to climb trees, play cricket in the street and race homemade billy carts until dinnertime. The billycarts were made out of old prams, wooden boxes and discarded trikes. Our piggy banks financed the rest. It was enormously satisfying!” NICOLA FIELD Nicola is a contributing writer at Money. Nicola says: “I admit I didn’t save as a child. I was obsessed with horses (still am), and spent…

key to the right cover

Many Australians hold default life insurance through their super fund. This is often automatically applied to your account once you join the fund. The question is: are you better off with default life cover or a standalone policy? As with all things related to personal finance, there is no one-size-fits-all answer. Here are just some of the factors to consider before you decide how to structure your life insurance to best meet your needs and those of your family. Possible advantages of default life insurance in super • Funds purchase policies in bulk, so premiums might be cheaper. • Budget-friendly option because premiums are automatically deducted from your super balance, not your bank account. • Generally, you are automatically accepted for a certain level of cover without a health check. • You can make contributions to…

in your interest

To little surprise, themostcommon question coming to Money magazine at the moment is about getting some sort of return on cash. This really is a major issue for millions of us. As interest rates rapidly head towards zero – and in some countries they are already negative – what on earth do we do? I do appreciate the point being made strongly by younger people that they have had the blunt end of the stick. Yep, in the 1970s my generation enjoyed free university education, so no debt to be repaid as we started work. Property was not cheap, but if we relate the price of property to a multiple of average earnings, there is no argument that buying a home today is significantly harder. One win for younger Australians, though, has…

telco debt targeted

In recent years consumer groups have called for internet services to be regulated in the same way as water, gas and electricity. On the surface this makes sense, especially as more utility providers bundle their services on the one bill. The case for better regulation becomes even stronger when Michael Lavarch, the independent chair of the Telecommunications Industry Ombudsman (TIO), says that consumers “rightly consider telecommunications as an essential service that allows them to participate effectively in the economy and to enjoy the possibilities communication networks offer”. Throughout 2019, the telco ombudsman has cracked down on providers using pressure sales tactics that eventually drive unnecessary consumer debt. In the first six months of 2018, the TIO received more than 7400 complaints from people who had problems managing their telecommunications debt. This represented…