Money Magazine

EDITOR’S DESK FROM THE EDITOR One of our most downloaded podcast episodes on Friends With Money was the one about retirement titled “Can I retire now?” In this episode we explored the age-old question of exactly how much money you need in retirement. Depending on the research you refer to, the answer could be anywhere between $300,000 and more than $1 million, the higher number causing mosqt people quite a fright. In this issue of Money, we reframe the debate by asking how much you should have in your super to still be eligible for the age pension. Last year, the magic number was $255,000; this year it’s not too far off at $260,000. We bring this number to the fore not because we think it’s the right level of superannuation…

55-plus budget boost is hard to understand I read Money regularly and one thing that stands out is how much advice older readers seek out, or the money concerns that they express. I figure this is just the core demographics in play. However, perhaps not so much anymore. The federal budget has given “Newstart” recipients aged 55-plus a “modest boost” to their allowances, which would suggest the current government views these individuals as struggling more than, well, everybody else. Frankly, I see these individuals as people who literally have had a decadeslong headstart on others to develop and secure their financial security/stability but simply have not (for whatever reason). Perhaps it’s a new way of thinking, but I’d reckon 30-odd years after high school you should have important things like…

Contributing writer Whenever there was a significant task ahead my father would say “just do it little by little”. His advice resonated later when I discovered drip feeding spare cash into wealth creation works wonders. I’m a great fan of super and its tax advantages and low costs. If you choose a good fund, contribute extra - no matter how little. You will never regret it. Managing director The simple lessons about money or investing are usually the best. The miracle of compound interest attributed to Albert Einstein is number one on the list. However, I like to credit Dr Don Stammer with expanding the lesson to compounding returns and the importance of reinvesting dividends. The younger you are the more powerful the impact because you need time on your…

BACK TO BASICS Raising children can be expensive. In 2018, the Australian Institute of Family Studies estimated it cost between $140 and $170 a week to raise a child - and it’s probably more now due to increases in the cost of living. Before you freak out and decide you can’t afford children, know that many families excel at saving and investing. Also, having a family changes your perspective and priorities. I remember the money I wasted pre-kids on dining out, partying and travelling. While I have great memories, since having children, I’ve learnt to “adult” and be more frugal I love my children, I want to provide them with the best possible life and sometimes I want to treat them. I love seeing them smile. However, more isn’t necessarily…

Dreams of ‘ideal’ retirement come up against reality A new report by investment manager Vanguard, published in May, has found significant variance in what Australians believe is the ideal age to retire. While the average ideal retirement age reported by respondents in the How Australia Retires survey was just over 61, it found workers aged between 18 and 34 hope to retire by 59.5, those aged 35 to 54 hope to retire by 61.5 and those aged between 55 and 75 or older want to bow out by 64.9. Superannuation tends to be the basis upon which we choose when to - or can afford to - comfortably retire. With that in mind, it’s easy to forget that it was little less than a month ago that treasurer Jim Chalmers…

The bucket list trip for any investor has to be the Berkshire Hathaway annual general meeting. I went five years ago, thinking it would be the last, but in May this year we had our latest instalment and the guys didn’t disappoint, even though Charlie Munger (vice-chairman of Berkshire Hathaway) is now 99! Warren Buffett started by introducing Munger: “When I woke up this morning, I realised we had a competitive broadcast going out somewhere in the UK, and they were celebrating King Charles. We’ve got our own King Charles here today.” The Q&A went for about six hours and the discussion covered topics around achieving success and building wealth. Here are three of my favourite Buffett quotes: 1. What gives you opportunities is other people doing dumb things. In…