Category «Investment»

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 …

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 …

Investing For The Long Term

Australia’s love affair with residential real estate appears to be going through a rocky patch. Just two years ago we were being treated to salacious headlines such as “Nice earners, no sweat” with the body copy screaming that our home was making us over $700 a day tax-free. The acronym that was all the rage …

The Financial Cost of Smoking Over Your Working Life

Cigarettes are back in the news with research released this month from the Australian Bureau of Statistics (ABS)revealing that 13.8% of Aussie adults consider themselves daily smokers. It’s a sad statistic given the irrefutable evidence of the damage that smoking does both to your health and your finances. Today I’ll give a couple of examples …

Taking Care of Your Finances

Welcome to a new year – it has certainly started off with the huge degree of volatility. Much of it is due to uncertainty about economic conditions generally thanks to Trump, Brexit, and the ongoing conflict between America and China. But as we move into 2019 with all its hope and uncertainty, remember that there …