Blog

March 15, 2017

Super in your 40s. It’s time to get focused.

Typically your forties is a time of established careers, teenage kids and a mortgage that is no longer daunting. There are still plenty of demands on the budget, but by this age there’s a good chance there’s some spare cash that can be put to good use. As you pass the halfway mark of your working life, it’s time to give retirement planning a bit more attention. How much? A 45-year-old today will reach ‘retirement age’ in 22 years. Taking inflation into account a couple will, by then, need an income of around $113,000 per year if they want to […]
March 8, 2017

The relationship between interest rates and housing affordability

A fall in interest rates is usually greeted with delight by homebuyers. The lower the interest rate the less the mortgage repayments on a particular house, right? Well, maybe. However, lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices. So what’s really going on? Have recent falls in interest rates been good or bad for homebuyers? The numbers crunched In mid-2011 the average interest rate on a standard variable home loan was 7.79% p.a. and the average price of homes across Australia’s eight capital cities was around $478,000. […]
March 1, 2017

A little trust can pay a big dividend in super

The Australian superannuation system has many fine qualities, but if you were asked to rate it on the basis of trust – on a score of 1 to 10 – what would you give it? Trust is a simple but elusive concept to measure. Are we talking about trust in: The government regulatory and policy settings? The institutions that manage the more than $2 trillion in assets? The financial advisers who support the fund members? Is trust even important? The super guarantee system is mandatory for Australian workers, who cannot opt out of the 9.5 per cent contribution to super […]