From Shakespeare to Super: Mastering Time Value and Behavioural Biases for Lasting Wealth
Even highly intelligent people can make poor financial decisions due to how our brains process short-term rewards versus long-term goals. This article explores the psychology behind common money mistakes and offers insight into how behavioural biases affect retirement planning. By understanding these patterns, there are some simple steps to build better habits. It’s a thoughtful look at why knowledge alone isn’t always enough for financial success.
Stable Money in an Unstable World: Weighing the Promise and Peril of Digital Currencies
As digital currencies gain traction, Australians are weighing the benefits of faster payments against concerns about privacy and regulation. This article explains what stablecoins are, how they differ from traditional money, and the potential risks they pose. With financial technology evolving quickly, it’s essential to stay informed before adopting new tools. A balanced, cautious approach is key in this uncertain landscape.
Building a Resilient Income Portfolio: Beyond Cash and Bonds
With interest rates falling again, many retirees are finding that cash and term deposits aren’t meeting their income needs. This article explores how alternative income strategies – like diversified credit and inflation-linked assets – can help preserve lifestyle and confidence in retirement. It emphasises the importance of balancing income, risk, and tax-efficiency. A resilient portfolio offers greater stability in unpredictable markets.
Q & A
- Super contributions before retirement: The concessional cap is $30,000 this year, with carry-forward options for unused amounts. Non-concessional contributions are capped at $120,000 annually, or $360,000 under the bring-forward rule.
- Any occupation vs own occupation insurance: “Any occupation” covers you if you can’t work in any suitable job, while “own occupation” covers you if you can’t perform your specific role. The latter offers broader protection but usually costs more.
- Capital gains tax in super: In pooled funds, CGT is managed within the unit price, while in wrap accounts you can manage the timing of CGT events directly – offering flexibility but requiring more active management.
