Global markets are made up of dozens of asset classes and millions of individual securities, making it challenging to understand what really matters for your portfolio. But there are a few important drivers that can help explain returns across asset classes – these are known as Factors. Factor investing, also commonly called “smart beta” has … Read more
October was another difficult month for financial markets, partly reflecting an acceptance among investors that interest rates are likely to remain high for longer than was previously anticipated. Geopolitical risk ramped up too, following conflict in Israel and Palestine. Australian shares were down nearly 4% over the month and overseas stock markets closed lower too, … Read more
Term deposits offer certainty and savings accounts offer flexibility. Here are some other common features and benefits of each. Putting your money into a savings account, or in the alternative, a term deposit, are two common methods of saving. Working out whether either of these options are right for you depends on your personal and … Read more
There are a number of considerations when it comes to gearing, the investment assets you may choose to gear and the way you structure your debt. A gearing strategy can be set at three levels: Positive gearing – where income from the investment exceeds the interest payable on the loan. Neutral gearing – where income … Read more
Investing is full of jargon and technical terms that can make getting started or managing your investments seem intimidating. Here are some of the key terms to help you better understand the different options available to you. Common investing terms There are a few terms that you’ll see repeated when we’re talking about investing. Bonds … Read more
Some recent questions on Australian inflation Key points The Australian inflation rate peaked in the December quarter but has been slower to decline than some global peers. While interest rate rises are helping to reduce inflation (especially as discretionary consumer spending slows), rises in domestic energy prices, a tight rental market and a lagged pick … Read more
You may be eligible to make concessional contributions that are greater than the annual cap if you haven’t fully used your concessional cap in an earlier year. This could help you to save even more for retirement, while also managing tax. What are concessional contributions? There are a number of ways you can contribute to … Read more
Earning interest on interest: learn how the power of compounding can send your savings rocketing. Key takeaways Compound interest enables you to earn interest on interest which is accumulated over time. The effect of compound interest becomes extremely powerful over a long timeframe as the amount of interest earned grows. Investing in your super is … Read more
There are special rules for granny flat arrangements that may prevent the deprivation rules from applying. However they must satisfy a range of requirements. Retirees wanting to downsize their home may consider the option of living in a granny flat or an extension to / spare room of a relative or friend’s home. Money, the … Read more
July was a relatively uneventful month in financial markets and volatility remained low. Generally speaking, risk assets continued to perform well despite a sharp increase in the oil price. In fact July was the best month for oil since January 2022. Inflation seems to be coming off the boil in most key regions, reducing the … Read more