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Women And Superannuation – How Do You Make Sure You Have Enough?

The superannuation system is based around an individual working full time for forty years.  For many women, especially mothers this simply does not reflect our working lives.  Many of us take career breaks, some for substantial periods of time and many of us, when we do return to paid work, opt for part time positions.  These factors hamper our ability to contribute to our superannuation balances.  The end result is that the current median super balance for women aged 35 to 44 is around $22,600 versus around $41,000 for men.

So what strategies can you use to make sure you have enough for retirement?  Making additional contributions pre baby or ramping up contributions when you return to work are probably the best way to increase super balances and make up for a break in employment.  It’s important to remember that a small increase in contributions can make a big difference when […]

By |May 1st, 2013|Superannuation|1 Comment

Investing Basics – Risk! The Money Mummy Guide To Investing – Part 2

Investing involves risk.  Each of us is unique, and understanding how much risk you can tolerate is fundamental to shaping your own investment strategy.  During the Global Financial Crisis, so many people forgot about or did not understand their own unique risk tolerance to their peril.  This is how we ended up with the travesty of Storm Financial convincing retirees, with no income, to borrow against their homes and invest into high risk investments on the stock market.  Different investments have different risk characteristics.  Understanding your risk tolerance, will help to decide which investments have the right fit for you.

So what is risk?  I define risk, in the investment sense, as the likelihood of losing money.  Be warned, strangely enough, many in my industry do not see it that way.  Fund Managers, people who invest your money in a range of investments on your behalf, often see risk as the risk of […]

By |April 24th, 2013|Investing Basics, Risk|2 Comments

Investing Basics – How Do I Get Started? The Money Mummy Guide to Investing Part 1

Yesterday I posted an article which showed that women are better than investors than men, but knowing you have the potential to be a good investor is of no use, unless you know where to start.  So welcome to the Money Mummy school of investing!  Every Thursday I am going to publish a post which guides you through the key principles that you need to know when making your first investment decision.  Successful investing is not difficult and has nothing to do with luck.  There are a few fundamental ideas that you need to know which will greatly increase your chances of success and help you avoid disasters.  So let’s get started.

Before you invest a cent, there is one very important thing you must do and that is make sure your “financial house” is in order.  You must be very clear about how much debt you owe and what type […]

By |April 18th, 2013|Debt, Investing Basics, Saving|2 Comments

Three Things You Really Need to Know When Saving and Investing For Your Child

The best time to start saving for your child is now.  Whether it be for their education, or to buy a car or a deposit for a house, having time on your side and a long term investment horizon will help you to your reach your goals.  However, there are three things you really need to know about when investing/saving for your child:

  1. Watch out for the taxman!

Investing directly in your child’s name is unlikely to be the most tax effective way of saving for your child.  This is due to tough penalty taxes for minors.  The Government has put this in place to stop parents funneling money into their children’s names to avoid tax.  The penalty tax is applied to “unearned income”, that is money the child has not worked for and includes income such as interest, share dividends and distributions from trusts.  If you invest under your child’s name, the […]

By |April 3rd, 2013|Saving|19 Comments