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Money Magazine

November 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.

Country:
Australia
Language:
English
Publisher:
Rainmaker Information Pty Limited
Frequency:
Monthly
$5.11
$42.37
11 Issues

in this issue

1 min
to have and to hold

Making money is a choice. In this issue, we run our annual cover story on how best to invest $10,000. Some of you want to put these extra savings towards property while others prefer shares. The good news is that you have several options, as our experts explain in our cover story (page 32). Making money is also about adapting to change. As part of our Super Booster campaign, we encourage you to check whether your super fund is the one that best suits your individual needs, especially if you haven’t reviewed it for years. At the very least, you need to know if your retirement savings are in the right investment mix. As Nicola Field writes this month, don’t just settle for the default option (page 55). Finally, making money is a…

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3 min
letter of the month

Shared finances are good for a relationship I have always been a little intrigued by how couples handle money, as I know it can impact relationships. I admittedly find it surprising when couples have separate bank accounts or view money as separate from each other. My husband and I have been happily married for 25 years with me spending a large number of those years at home raising our family. I manage our money to meet our common goals. A key component of this is that we view any income as equally both of ours. We have both always worked, albeit my husband in paid work and myself for a long period at home in unpaid work. I feel our strong viewpoint regarding our money has helped not only our relationship but our…

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2 min
what would you do with $10k right now?

NICOLA FIELD I’m a great believer in investing in businesses I know and understand. I’d tip $10,000 into FANG stocks – Facebook, Apple, Netflix and Google. Amazon is normally in the FANG line-up but I’m batting for Apple, which pumps out new products consumers love. The FANG companies have robust business models that show no real signs of slowing down. Plus, they have diversified businesses across software, consumer products and the cloud. Also, my cat is called Fang. JULIA NEWBOULD I would put $7500 into super and make sure I had a pretty even spread of Australian and international shares. Within my current investment choices I’ve also narrowed it down to sustainable and environmental options. The remainder would go on a course to make me more marketable, whether that’s presenting, social media or…

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4 min
250 great reasons to celebrate

Money celebrates its 250th issue this month! We’re proud to reach this milestone in 2021. And at a time when print sales are declining, we’ve increased our readership by 134.6% (online and in print). For that, we want to thank our staff, our contributors and, most of all you, our loyal readers. The original inspiration for the magazine hasn’t changed since it was launched in 1999, following the TV program of the same name that had debuted 10 years earlier. “If you’d told me I’d still be publishing hard copy for the 250th time I wouldn’t have believed that,” says Paul Clitheroe, founder and editorial adviser. For me it’s about equity: ensuring financial information and advice are available to everyone who is interested in making the most of their finances. The lessons from…

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2 min
robo advice can deliver the goods at a lower cost

TRADITIONAL, MULTI-TOPIC comprehensive financial advice (often an 80- to 120-page document) has become unaffordable for many investors. Fees can start at around $4000 for the initial advice, and the same again each year if that advice needs to be regularly reviewed. An alternative has been developed using technology to deliver affordable advice, created by an algorithm, which works by taking data or information the client inputs and interpreting that information against several pre-defined rules. These rules tell the algorithm what to do with the information, such as perform a calculation or compare it with other data. The algorithm has another set of instructions that tell it what to do with the outcome of those comparisons and calculations and those instructions essentially form the “decision making” basis of the advice. This type…

1 min
invest with ‘the least regrets’

The Reserve Bank has held the line on the expected path of monetary policy, attempting to anchor expectations of the cash rate out to March 2024. We now see the market pricing 1% and the RBA suggesting more like 0.10% – an expectation gap of some 0.9%. Gaps of this scale are not uncommon at turning points in the market or the economy; we saw something similar in August 2018. With this gap comes material risk, for both policymaker and market maker. Consequently, this proxy for economy-wide risk also grows with these expectation gaps. A “least regrets” approach may be worth introducing, moving away from articulating expected outcomes to managing for unexpected outcomes. We can be reasonably assured the large downside risks to the economy have been managed and turn our focus…

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