Money Magazine October 2018

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


letter of the month

Invest in our own education I’m a long-time subscriber and reader of Money magazine. I was thinking that it would be beneficial to include an article on recommended courses for all asset classes, such as property courses, share trading courses, etc. I know that I’ve tried looking into such courses but am unsure of the quality of each course. I’d be eager to read an issue that not only informs us of key money and investment issues but also helps inform us on the best way we can invest into our own personal investment education. Brenton Ed’s note: It’s been a while since we have done a story around this. Thanks for the suggestion!…

we tackle the $10k question

Apart from Best of the Best (our annual awards issue, which goes on sale on December 5) this issue, looking at “Where to Invest $10k”, would have to be one of my favourites. It’s now in its fifth year, and not only does it tackle the questions we’re asking right now but it also gives you a little insight into where industry experts are investing their own money. Naomi Simson, founder of RedBalloon and one of the “sharks” on Channel 10’s Shark Tank TV show, says if she wasn’t involved in the business she’d choose an industry in “growth”. No surprise, then, that she has her eyes on health care, with one of her stock picks being Healthia (see page 43). Ross Greenwood unashamedly calls his pick boring. You can read why…


Putting a price on BHP I was very interested in your article regarding BHP and Rio by InvestSMART’s Gaurav Sodhi (“Truck loads of cash”, September). He wrote that “we’re raising our BHP buy price” from $23 to $25 and sticking with ‘hold’ ”. I am wondering if that was a “typo”. Obviously you would be aware that BHP hasn’t been $25 since July 2017 and I doubt it will see the mid-twenties in the near future – I certainly hope not or we are all in big trouble. Anyway, your article was most informative and covered a different slant on the big two. Gerry Gaurav replies: Hi, no typo, I’m afraid. Our buy price stays at $25. A few points around this. We’re greedy and would only buy a cyclical business with a poor track record…

what did you wish you had started doing sooner when it comes to money?

DALE GILLHAM Dale Gillham is chief analyst at Wealth Within. Dale says: “This is pretty much a no-brainer for me, as it is not how much money you get, it is what you do with it that counts. So for me it is investing sooner in the markets and in my knowledge.” VITA PALESTRANT Former editor of the Money section of The Sydney Morning Herald and The Age, Vita says: “Having a mortgage and kids makes you careful with money. You treat ‘specials’ as if they were a tarantula: 28% off energy, zero-interest credit cards, discount insurance, etc. But it’s better to check the downside and do the sums.” NERIDA COLE Nerida Cole is head of advice, Dixon Advisory. Nerida says: “In my early 20s I’d been a bit intimidated by shares. As I gradually…

in your interest

You know, this “age 60” thing is really pretty good. I am a bit surprised to find myself saying this as I have all the obvious problems of what I am told is now called the “new middle aged”. I thought I was old but I'll go with that. Anyway, I can’t read a book, iPad or menu without glasses. This is a pain. I am fine with glasses but being relatively new to them I tend to forget them or just lose them. My solution is to buy loads of the cheap ones from a chemist or supermarket and leave them everywhere. That does help. Next up, my hair is pretty much white, though in an attempt to be pleasant my hairdresser does claim I have “traces of bronze”. Apparently I…

rates at 1%? it’s not so crazy

Diligent savers, myself included, have been punished by the Reserve Bank’s rate-cutting regime ever since the GFC hit, with interest rates down from over 7% in 2008 to just 1.5% today. As much as I wish rates were going to head higher in the coming years, I actually think the opposite will happen, and they will be cut to 1% or below by 2020. That might seem crazy but consider the facts. Household debt is at record highs; wage growth is non-existent; under-employment is rife; inflation is below the Reserve Bank’s target band; and retail sales growth suggests consumers are incredibly cautious. Add to this the decline in the housing market, which is wiping tens of billions of dollars from the net wealth of households, and the case for a rate cut is…