Power Of Compounding

I have often written about the power of compound interest. But I am still getting many queries asking what kind of investments offer compound interest. As one reader pointed out, the banks are only paying about 1.5% if you’re lucky, even though she has heard me mention returns of up to 9% per annum. The …

Deeming Rates

A slight rise in the age pension rates, and some small changes to the deeming rates, mean that many pensioners may now be slightly better off. Also, some retirees who did not qualify for an age pension because they were over the asset test cut-off point may start to qualify. Under the new rules a …

Splitting Super Contributions Between Spouses

Superannuation is always under attack, no matter which party holds government One thing is clear – you should always be on the lookout for strategies to prevent the consequences of changes that are certain to come in the future. One strategy is simple, legal, and highly effective -splitting your superannuation with your spouse. To be …

Inactive Funds and Insurance Cover

New superannuation laws take effect on 1 July, and they have huge implications for any of you who have life insurance inside your super fund. From that date superannuation funds will be prohibited from providing insurance cover to a member whose super account is inactive, unless that member elects to keep their cover. For the …

Pay off Home Loan or Invest?

With interest rates trending down, I am regularly being asked whether it’s better to buy shares or to focus on paying off the mortgage. The following email is typical.  “You have often written that the optimum repayment on a housing loan is $900 per month for every $100000 of mortgage. I am trying to figure out …