There are two ways to think about the price of anything. The first is the number of dollars it would cost to purchase that thing. The second is to think about what else we could spend our money on. This is called ‘opportunity cost’ and it is always worth remembering when you make a purchase.
2017 has been a year of low interest - record low interest rates, that is. But record low prices don’t last forever. Interest rates will rise again. In the meantime, make 2018 your year of repaying non-deductible debt. That might make it your best year ever.
Continuing our theme of behavioural economics, this week we look at anchoring? Anchoring is how people can be mislead into thinking they have bagged a bargain. It also tricks people into selling good investments and keeping bad ones.
Superannuation is an often-forgotten area of estate planning. This article discusses the best ways to make sure your super goes where you want it to go when you don’t need it any more.
Until now, salary sacrifice has been one of the only ways that an employee can make an extra tax-advantaged contribution into their super fund. But that changed on 1 July 2017. Now, almost everyone can make additional contributions without their employer even knowing – which might come in handy next time you ask for a pay rise!
Recent changes to the assets test have increased the rate at which the aged pension is reduced when assets exceed a certain level. This has led to what some people describe as a superannuation sweetspot. Hitting this sweet spot can make a big difference to your retirement, so read on and contact us if you would like to discuss how you can hit your own sweetspot.
As the financial year draws to an end, our thoughts turn to the next one. Superannuation will look quite different in 2017/2018, and so we want to start the new financial year with a summary of the various rules that apply to your super. Please feel free to download our ‘Super summary’ and send it to anyone you think would benefit from it.
Compared to previous years, the 2017 Budget was a bit of an anti-climax. In previous years, there have been a number of big-ticket changes - such as the big changes to superannuation that we have been discussing in recent articles. But this year there have simply been a whole lot of small changes, some of which will be of benefit and others will represent a small loss.