Money Magazine June 2020

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


add to your to-do list

We are all facing uncertainty. As much as it would be great to party like it’s 1999 or 2019, we cannot go back to the way we spent, saved or invested before the pandemic. A new approach is needed. Enter our cover story “Beat the Budget Blues” (page 34). The good news is there are many ways to rejig your investing and spending budget to suit the post-Covid-19 world. My best tip? Take action today. This month’s issue is packed with actionable tasks to save you thousands of dollars. For example, don’t get stuck in a high-rate loan (page 49). Latest stats suggest 1 in 14 homeowners has asked for a mortgage deferral, and there are many others who are in a position to re-negotiate their loans while interest rates are lower. Or…


Our international readers like to stay up to date I am an Indian living in Singapore. Got into the habit of reading Money (digital issue) regularly. I find the articles and advice quite useful. May I suggest some articles on how someone like me could build an exposure to blue-chip Australian stocks or REITs and how this could compare with other developed-market investments. Please include tax implications. Amit Ed’s note: Thanks for your letter, Amit – it’s always great to hear from our international readers. Your timing couldn’t be any better. In this edition we have articles dedicated to blue-chip stocks (page 74) and A-REITs (page 61). While we haven’t reported comparisons with other developed markets or tax implications in either of these stories, we trust you find them useful and we will…

what skills have you perfected in lockdown?

VITA PALESTRANT Vita, who writes for Money about super, says: “With oodles of time on my hands, thanks to Covid-19, I set about researching the origins of the proverb “patience is a virtue”. Some attribute it to Cato the Elder who said: “Of human virtues, patience is most great.” Others attribute it to a later 5th century epic poem “Psychomania”. Conclusion? Until there’s a vaccine, follow the medical experts – and practice being patient.” SUSAN HELY Susan, a senior writer at Money, says: “I’ve discovered so much on my daily walks: old buildings, wild gardens and historical remnants of early Sydney. I visit a tree full of nesting pied cormorants or paper barks with sleeping tawny frogmouths. I meet people with their beloved pets – this morning a man walking his cat –…

making it work

In the post-war years people learnt the hard way to make better use of what was available Living in the time of coronavirus is like nothing we’ve known before. Although the lessons we’re learning during this time are ones we’ve heard many times before. For instance, we’ve experienced first-hand why it’s important to set up that rainy day fund and have three months of expenses set aside. We’ve discovered why it’s a good idea to use the three-bucket method of investing: short term, medium term and long term. If we’d had money in each, our long-term investments might have remained untouched in these tougher times. Reuse, recycle and conserve – three more wise lessons. Not only do they make good financial sense, they also benefit the planet and our future. In homes everywhere, wardrobes,…

virus brings cashless society a step closer

Australian banks have continued to send proactive messages in the aftermath of the bushfire crisis and during the Covid-19 pandemic. It’s something I wrote about in this column in the April issue. There have been more developments since. One that caught my attention was the regulator, ASIC, fast-tracking approval for banks to issue more than 500,000 Mastercard or Visa debit cards to customers who didn’t have them. The move attempts to assist people with a passbook or transaction account so they can shop online or over the phone rather than using cash or EFTPOS. It’s mainly targeted at those aged 70 and over. This is sensible when you consider federal government advice suggests people 70 and over should stay at home. It’s also useful at a time when some retailers aren’t accepting cash. Of…

super’s proven ‘green’ effect

It’s been evident for a while that products invested according to environmental, socially responsible and governance (ESG) principles can achieve returns as strong and reliable as other investments. Now Covid-19 shows us how they can perform in a crisis. Research from Rainmaker, which publishes Money, shows, in general terms, that the MySuper index is ahead of the ESG index. However, if we look separately at balanced and growth investment choices, and equities choices, a different picture emerges. If a super fund member invested in ESG balanced or growth options they would have been 1.5% better off over the 12 months to March 31. Over the quarter they would have been 1% better off. This effect also happened in equities investment choices. The SelectingSuper ESG Equities Index, which combined domestic and global equities investment…