EXPLOREMY LIBRARY
Business & Finance
Money Magazine

Money Magazine

October 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.

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

in this issue

1 min.
words of wisdom that can build wealth

I thought I would share some wisdom that was once given to me and that I still pass on to people today regardless of their age. I jump up and down in the one spot and tell them they must, must pass this on to their kids and grandkids. So what is it? It’s from a book, The Richest Man in Babylon, published by the American George Clason nearly 100 years ago. He writes about laws of wealth building that go back more than 2000 years and still apply today. Save 10% of what you earn and live off the rest – no matter what. If a kid starts their first part-time job at, say, 15 and gets into the habit of saving $5 out of every $50, and does the same…

1 min.
the shape of things to come

Economists are debating what shape the economic recovery is going to be post-pandemic. The most optimistic is a “V” shape bounce while others believe we are in for a “W” down-up-down-then-up-again market. But there are rumblings on Wall Street that we might be heading for a K-shape recovery, where fortunes diverge for the haves and the have-nots. It’s a scenario where the rich get richer and the poor get poorer. When I think of my family and friends, I doubt that they think of the shape of the economy at all. We all just want the situation to turn a corner. If I were to measure the temperature of the room based on our readers’ letters in the past three months, especially for the “Ask Paul” section (see pages 24-27), it’s comforting to…

2 min.
feedback

Future looks bleak for younger generations I’ll be honest, I’m struggling to see much of a future for my generation. We will be crippled working to pay off the debt currently being incurred. We face no or low wage growth. The federal government even wants to remove our superannuation increase of 0.5%. This is against an already stressful background of unstable income, meagre super funds, high unemployment, the rising cost of living and the impossible dream of owning a home. We’re tired and we haven’t even started. I’m tired. As a teacher, employed full time and in demand, I thought I’d be fine. Even if I need to support my ageing parents (soon possibly made redundant), I could probably manage ... that is, until I found out about the NSW freeze on the…

1 min.
subscribe

Contact us To send a letter to the editor, write to: Money, Level 7, 55 Clarence Street, Sydney NSW 2000 or email money@moneymag.com.au For all inquiries and letters, please include name, address and phone details. Letters may be edited for clarity or space. Because of the high number of letters received, no personal replies are possible. How to get Money Subscribe to the print or digital edition, as well as our free weekly email newsletter via the Money website or: Online: magshop.com.au/ money-magazine Call: 136 116…

2 min.
should the proposed super guarantee increase to 10% go ahead in july 2021?

KANIKA SOOD Kanika is a senior journalist at Financial Standard, also published by Rainmaker. She says: “Intuitively, yes, the SG needs to rise to replace the billions Australians have pulled from their nest eggs. But we are still missing key answers on how super works: are we already saving enough to retire comfortably and does a rising SG trim wages. If the answer to either is a yes, then we probably should hold at 9.5% and reassess later.” SUSAN HELY Susan, a senior writer at Money, says: “Super gives retirees not only income but it also pays for aged care. The SG rise due next year is the first since July 2014. Lots of people end up with inadequate super, such as women with broken employment histories and people working in the gig…

3 min.
keep the ball rolling

Creating financial freedom by making the most of your money and setting yourself up for a comfortable retirement along the way is what Money magazine is all about. As we go to print this month, the release of the federal government’s retirement income review is imminent. It might tackle the issue of whether Australia can afford to meet the legislated increases to the super guarantee (SG), from 9.5% to 10% on July 1, 2021 and reaching 12% by 2025. On page 8 of this issue, our experts share their thoughts about the proposed 2021 increase going ahead when the country is in the throes of a recession. Of course, retirement income isn’t just about superannuation. Many of us would like to retire before the pension age (67) and super preservation age (60). Economics…