Understanding cash flow Understanding cash flow can be the difference between a solid long-term investment and a costly mistake, writes Michael Sloan. So do your research – and get good advice before you buy. What is negative cash flow? Oftentimes investment properties generate negative cash flow. That means, you must put money in each year … Read more
How much tax you pay on retirement income depends on your age and the type of income stream. For most people, an income stream from superannuation will be tax-free from age 60. How super income streams are taxed Types of super income streams Income from super can be an: account-based pension — a series of regular … Read more
Catch up on your super If you’ve had an irregular or interrupted income in the past, you might’ve missed out on opportunities to contribute to super. If you don’t fully utilise your concessional cap, and you’re eligible, you may be able to make ‘catch up’ on concessional contributions. What is a ‘catch-up’ concessional contribution? It used … Read more
Bucketing is a smart way to manage your money without complicated budgets or spreadsheets. The idea is to set up multiple bank accounts called ‘buckets’ and use each one for a specific purpose, like bills, savings or entertainment. Once your buckets are set up, it’s easier to see and control how you spend and save … Read more
Borrowing to invest, also known as gearing or leverage, is a risky business. While you get bigger returns when markets go up, it leads to larger losses when markets fall. You still have to repay the investment loan and interest, even if your investment falls in value. Borrowing to invest is a high-risk strategy for … Read more
Navigating complex family relationships and blended families can be challenging at times and particularly when a family member dies. A good estate plan can help to make sure your wishes are carried out when you die. An estate plan, of which a will is the first and most important part, can ensure your estate is … Read more
What is redraw? Let’s say you’ve made a habit of paying more than your minimum scheduled home loan repayments. This means you’ll have money available to take back out – if you want to. This process is known as redraw. You can use this money to pay for sudden expenses, or planned things such as: … Read more
While we all hope for good health, the reality is that some of us may struggle at times with sickness or injury. And that may affect your family’s financial wellbeing. Different types of life insurance or personal insurance can provide an income when you’re unable earn, or a lump sum to protect your loved ones … Read more
Why it’s so important to talk about your finances According to this research1, one in two Australians don’t sit down regularly to look at their finances and one in three say that money is a source of conflict in their relationship. To put conversations about money back on the table, Australians should sit down for … Read more
In the space of 18 months – interest rates have risen regularly – which has seen plenty of positively or neutrally geared investment properties slip into negative territory. After a significant jump in the cash rates, savvy investors are now rethinking their medium to long-term strategies. While some property investors actively choose a negative gearing … Read more
What is creditworthiness? It might be a bit of a mouthful, but the concept of creditworthiness is simple enough to understand. The term refers to a person or company considered suitable to receive credit – mainly due to being reliable in paying money back in the past, as well as having enough funds to stay … Read more
About downsizer contributions If you are 55 or older, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund. A downsizer contribution is a non-concessional contribution, but it doesn’t count towards the contribution cap. It will not affect your total … Read more