Search

Is Valentine’s Day worth the romantic investment? Here’s what we can learn from economics

<a href="https://theconversation.com/profiles/selma-wather-1510222">Selma Wather</a>, <a href="https://theconversation.com/institutions/university-of-sussex-1218">University of Sussex</a> Expressing affection can be expensive. Spending on heart-shaped gifts, romantic cards, chocolates and flowers (other gifts are available) to celebrate Valentine’s Day has reached <a href="https://www.statista.com/statistics/510981/valentines-day-total-spending-great-britain/#:%7E:text=In%20the%20United%20Kingdom%20%28UK%29%20alone%2C%20Valentine%E2%80%99s%20Day,increased%20by%20just%20over%20300%20million%20British%20pounds.">close to £1 billion</a> in the UK. So the value of Valentine’s to retailers seems clear enough. But just how valuable is the annual ritual to consumers? What return can you expect for the money you invest in that bouquet of roses or candle lit meal? Broadly speaking, and depending on your relationship status, buying into Valentine’s Day traditions suggests two possible scenarios. You might be sending a card or gift to a potential partner to inform them of your interest; or you might be giving something to your current partner to remind them of your continuing love. Research suggests that both options have intrinsic economic value. For those seeking to express interest, sending a card is like dipping your toe into what economists might refer to as the “marriage market” – the search for someone you like, who likes what you have to offer in return. This search can happen smoothly, with plenty of information about your potential match, or it can be paved with obstacles, where you may not know much about who is available, and <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1703310">learning about potential partners</a> takes time. So suppose you are searching for a partner, and comprehensive information about potential matches is not freely available. What do you do? One option might be to put all your hopes into meeting someone on your daily journey to work. You pray that one day, just like in the movies, you will simply bump into “the one”. A second option might be to focus your search on single work colleagues, or people you know socially, and send Valentine’s Day cards to those you are attracted to. The option with the highest chance of success is the second one. You are using reliable information – knowledge of who is single. And sending a card to them can provide them with important information about you – that you’re also single, and that you’re interested. This is why research suggests that sending a Valentine’s Day card can be a <a href="https://www.jstor.org/stable/2938374?origin=crossref">logical investment</a> of time and money. <h2>‘Match quality’</h2> Fast forward five years or so and imagine you are happily married to the recipient of one of those cards. Is it worth repeating the gesture now that you’re settled down together? Economists think of marriages or partnerships as having an inherent “<a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1468-2354.2006.00385.x">match quality</a>”, which reflects how good (or bad) your relationship is – and the likelihood of you breaking up. If match quality falls below the level of happiness you might expect to have if you were to leave, a <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2759255">separation may well follow</a>. But many studies also show that <a href="https://www.jstor.org/stable/2535409">match quality is malleable</a> – that it can change, for better and indeed for worse, over time. You can invest in trying to improve match quality in various ways. It might be starting a family, sharing hobbies and interests, or gestures such as cooking a special meal or exchanging gifts on the 14th day of February. Improving your match quality <a href="https://www.researchgate.net/publication/228431914_How_Does_the_Change_of_Marriage_Quality_Affect_Divorce_Decisions">directly reduces the probability</a> of a separation. Then there’s the question of commitment – the willingness to stay in a relationship rather than walking away. And again, gestures can make a difference. Imagine you have just started a new job, and your employer asks you to complete an intensive training session in your free time, for a skill that would only be useful for that particular role. If you expect to hold the job for a long period, you might happily invest your time. But if your employer is struggling financially and redundancy is on the cards, you are much less likely to agree to perform the task. Relationships work in a similar way. People are more prepared to invest in things like having children or buying a house together if they expect the relationship to last. Given that commitment is not guaranteed by a marriage certificate, people <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=950688">need to find other ways</a> to signal their continued devotion. Celebrating Valentine’s Day is one way of making such a signal. It can show faith in your shared commitment, signify that you wish to continue investing in the relationship and improve match quality, further stabilising the partnership. So even if deep down you think that Valentine’s Day has become over commercialised and meaningless, research suggests it makes good economic sense to send that card.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/223128/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/selma-wather-1510222">Selma Wather</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-sussex-1218">University of Sussex</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/is-valentines-day-worth-the-romantic-investment-heres-what-we-can-learn-from-economics-223128">original article</a>.

Money & Banking

Should I invest in a unit or a house?

The first tenet of investment is to get the best possible returns, so let’s look at where the money comes and goes when you’re investing in residential real estate. Initial cost Units are typically more affordable than houses, so it’s easier for a first-time investor to raise the necessary capital. Houses often have a higher entry pricepoint due to land value. According to the latest Domain Group House Prices Report, the national median house price is $636,315 while units are $476,023. With the surge in Sydney prices, the median price of units in Sydney is now higher than the current median house price in Brisbane, Adelaide, Hobart and Canberra. Ongoing expenses Council rates are usually higher on a house and you’ll be required to pay land taxes on an ongoing basis. With a unit or apartment, you will have to account for strata fees quarterly for the life of the investment, including any special levies that may be raised. Maintenance If you own a house, all maintenance issues are your responsibility (unless you have a property manager), whereas the maintenance and care of an apartment building and surrounds is the responsibility of the body corporate. What do you want from your investment? What sort of investor are you? Are you looking for regular long-term income, or do you plan to renovate and ‘flip’ the property as soon as you can? A house generally offers higher capital growth, due to the land component of the property. There’s also more potential for negative gearing. Units, on the other hand, tend to offer higher rental yields so they are more favourable from a cashflow perspective. Their lower pricepoint may allow you to build a diversified property portfolio more quickly. Older units in smaller blocks might offer better value than swanky new apartments in skyscrapers. You’re less likely to pay ongoing levies for amenities such as gyms, concierges and heated swimming pools; your voice will be louder in owners’ corporation meetings. It’s also easier to find new tenants if there aren’t 20 other vacant properties in the same location. Rentability Both houses and units are in demand right now. To optimise your investment, look for places where rental demand is high, such as around universities, transport or lifestyle areas with easy access to schools, parks, cafes, shops or beaches. Ultimately, there are reasons for and against almost any dwelling type. The right investment choice for you will depend on your financial position, risk profile and investment strategy. First appeared on <a href="https://www.domain.com.au/advice/unit-or-house-the-better-first-investment/" target="_blank" rel="noopener">Domain.com.au</a>. Republished with permission. Image: Getty Images

Real Estate

Top 5 tips to be financially healthy, wealthy and wise

Financial health, wealth and wisdom aren’t exclusive to the billionaires of the world – every Aussie can use these tips to live happier and more secure lives. The old saying goes ‘Early to bed and early to rise, makes a man healthy, wealthy, and wise.’ I believe this refers to more than just sleeping habits and speaks to the importance of a good routine and planning ahead. ith that in mind, here are some tips to ensure you and your bank balance remain on good terms: 1. Build strong foundations There are five financial foundations I recommend which form the building blocks for a strong relationship with money: <ul> <li>Emergency fund</li> <li>Spending and investment plan (more in-depth than a budget)</li> <li>Superannuation</li> <li>Adequate insurance cover</li> <li>Estate planning</li> </ul> Having these foundations in place allows you to build wealth to enjoy a good lifestyle, protect you and your family against any unexpected disaster or loss of income, and plan for a comfortable retirement. The earlier you put them in place, the more time you have for them to work in your favour (think back to your schooldays about the benefits of compound interest!) 2. Take charge – it’s YOUR money Do you know your current superannuation balance? The interest rate on your mortgage? How much you spent last month? Many people don’t – often because they leave the finances up to their significant other. It’s a risky move. What if your partner invests unwisely? Develops a gambling addiction? You split up? Sadly, many people have faced financial ruin simply because they wrongly believed their partner had everything hunky-dory. It’s important to be actively involved in your finances – know where your money comes from and where it goes. Don’t just leave it up to someone else, no matter how much you may love them. 3. Avoid runaway debt Unpaid bills, late tax returns, missed Afterpay instalments and credit card repayments – they all accrue interest and can quickly snowball until you’re buried under an avalanche of debt. Find ways of managing repayments that work for you. That could be: <ul> <li>Setting reminders in your phone and/or on your fridge to pay bills by their due date. </li> <li>Using a mortgage offset account to reduce your payable interest.</li> <li>Paying with cash/debit rather than credit/buy-now-pay-later (convenience typically costs more than transparency).</li> </ul> If you’re struggling, tackle your most expensive debts first (those with the highest interest rates). You may also be better off consolidating your debts into one, such as your mortgage – to pay less interest overall and to cut the number of repayments to keep track. 4. Don’t ‘set and forget’ Your income, expenses, debts and taxes all change as your life and circumstances change, meaning they should be reviewed regularly. Update your spending and investment plan whenever you change jobs, move house, expand your family, get a payrise etc. Scrutinise your expenses to cut wasteful spending – like that gym membership or TV subscription you no longer use. Examine ways to reduce your taxable income throughout the year, such as extra contributions to your super and keeping records for allowable deductions. Beware the ‘loyalty tax’ – banks, utilities and insurers typically offer better deals for new customers than existing ones. If you don’t review those at least once a year, or simply pay the renewal without comparing, you’re probably paying more than you need to. (If you do switch providers, double check that you are getting a like-for-like service – read the fine print carefully.) 5. Look after yourself ‘What does self-care have to do with money – apart from costing lots?’ I hear you ask. My response is – who can really afford to be sick given how fast healthcare costs keep rising! Not to mention lost earnings and other impacts. Looking after yourself – physically and mentally – means you’re less likely to need to pay for medical care, treatments and medications. Plus, you’ll need less sick or unpaid leave from work. And you’ll reduce your chances of a debilitating condition which could cut short your ability to earn a living, such as a stroke or heart attack. Then there’s the benefits of better cognitive function – making smarter decisions about money and better productivity at work (increasing your prospects for promotions and higher incomes). Invest in self-development too. Learning new skills and gaining extra qualifications aren’t just good for mental health but help you earn a higher income. Hence looking after yourself means lower costs AND higher income. What’s not to love about that?! Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Image: Getty Images

Money & Banking

How do I find out what my superannuation fund invests in? A finance expert explains

You want your superannuation savings to be invested in things that also serve the planet’s long-term interests. But how can you be sure your fund’s values align with yours – or even its own claims? This question has become increasingly pertinent as demand for environmentally and socially sustainable investments <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-141mr-how-to-avoid-greenwashing-for-superannuation-and-managed-funds/">grows</a> – and with it incentives for financial institutions to put the best spin on their offerings. One consultancy specialising in “responsible investment” reckons <a href="https://thenewdaily.com.au/finance/superannuation/2021/08/16/greenwashing-super-funds/">10% of the funds</a> it has examined do not have the sustainability orientation they claim. Among those <a href="https://www.edo.org.au/2022/08/10/hestas-fossil-fuel-investments-may-amount-to-a-breach-of-the-law/">accused of greenwashing</a> in recent months is one of Australia’s biggest super funds, HESTA (the industry fund for health and community service workers), which has promoting its “clean energy” credentials while still holding shares in fossil-fuel companies <a href="https://www.ai-cio.com/news/australias-hesta-accused-of-greenwashing/">Woodside and Santos</a>. So how can you check what your superannuation fund invests in? Super funds are legally obliged to disclose how they invest your money in two different disclosure documents – a Product Disclosure Statement and a Portfolio Holdings Disclosure. Both will be available on a super fund’s website, though how easily you can find them will vary. The rest of this article is going to explain what information these documents provide, how useful this information is likely to be, and your best bet to ensure your super fund reflects your values. <h2>The Product Disclosure Statement</h2> Product disclosure statements are required by the financial regulator (the Australian Securities and Investments Commission) for all financial products. This document outlines the most basic but important information of an investment product’s features, benefits, risks and costs, including fees and taxes. The format is standardised, with one section (Section 5) covering with “How we invest your money”. The information it contains is broad. At best you’ll learn how the fund splits its investments between safe and riskier assets, and between different asset classes – Australian shares, international shares, property trusts, infrastructure trust, cash and so on. <h2>Portfolio Holding Disclosure</h2> For a comprehensive look at where your money is invested in, you can consider the Portfolio Holdings Disclosure. This document lists a fund’s complete holdings – including the percentage and value of every single company stock held. Portfolio holdings disclosures are relatively new, being obligatory only since March 2022 under <a href="https://www.legislation.gov.au/Details/F2021L01531">legislation</a> meant to improve transparency in the sector. However, super funds aren’t obliged to provide this information in a consistent, easily understandable way. For a non-expert who doesn’t know what to look for, the level of detail can be mind-boggling. You may find yourself scrutinising a spreadsheet listing thousands of items. The Australian Retirement Trust’s Portfolio Holdings Disclosure for its “Lifecycle Balanced Pool”, for example, has more than <a href="https://www.australianretirementtrust.com.au/investments/what-we-invest-in/superannuation-investments">8,000</a> line items. Some super funds have made the effort to provide this information in a more user-friendly format. An example is Future Super, which allows you to <a href="https://www.futuresuper.com.au/everything-we-invest-in/?utm_source=google&utm_medium=cpc&utm_campaign=1757241588&utm_content=68234193065&utm_term=future%20super&campaigntype=SearchNetwork-1757241588&device=c&campaignid=1757241588&adgroup=68234193065&keyword=future%20super&matchtype=p&placement=&adposition=&location=9069039&gclid=CjwKCAjwmJeYBhAwEiwAXlg0AYOEe2tJViZiZBgUk3bt1h9LNuHx1jWnGy6VzqGaNjBzOEi60852JRoCel8QAvD_BwE">search and filter</a> portfolio holdings by asset class and country of origin. But if your concern is to avoid investing in some specific activity such as in mining fossil fuels or gambling, you’ll need to know the companies and other assets you want to avoid for this to be helpful. <h2>Your best options</h2> This is not to say portfolio holding disclosure obligations are useless. They are incredibly useful – a huge leap forward in the sector’s accountability. They just aren’t designed for consumers. So there is still much work to be done to make the sector truly transparent. What would really help is independent certification and ratings of super products, similar to government websites and programs that certify energy efficiency and allow comparison of electricity plans. In the meantime, I can offer you one big tip. Choose a specific superannuation product that markets itself on its environmental or social sustainability credentials. Most super funds now provide these choices alongside their more traditional investment options. There is a variety of “screening” approaches to ethical investments. Some exclude entire sectors. Others include the best environmental and social performers even among “sinful” industries such as tobacco or weapons. So just because a super product is marketed as “ethical” or “sustainable” doesn’t guarantee you will agree with all its investments. But there is a much higher likelihood of it living up to its claims due to greater scrutiny by third parties such as environmental groups as well as the financial regulator. The Australian Securities and Investments Commission put super funds on notice earlier this year with a “<a href="https://asic.gov.au/regulatory-resources/financial-services/how-to-avoid-greenwashing-when-offering-or-promoting-sustainability-related-products/">guidance note</a>” about the growing risk of greenwashing in sustainability-related financial products. It reminded funds that “making statements (or disseminating information) that are false or misleading, or engaging in dishonest, misleading or deceptive conduct in relation to a financial product or financial service” is against the law. So super funds know their portfolios are being scrutinised. Switching your investment option or fund is simpler than you think. You only need to fill out and lodge a form. Just be sure to compare fees and performance, and seek a second opinion from trustworthy adviser before “voting with your wallet”. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/how-do-i-find-out-what-my-superannuation-fund-invests-in-a-finance-expert-explains-188802" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

The hidden dangers of investing in property

When it comes to investing in property, there are several things that can jeopardise the perfect sale to add to your portfolio. While it's important to be aware of the risks, there are also a few hidden “dangers” that each buyer needs to feel out on an individual basis. In order to make the best decisions, keep a lookout for these secret dangers in investing in property and how to properly manage them. Buying in your local neighbourhood Despite emotional attachment, investing in the neighbourhood you live in may not be the best idea for long-term capital growth. If there are over 10,000 real estate markets across Australia, statistically speaking the odds are very low that the property for sale right next door is your best choice. In order to make the best choices, it’s best to analyse and compare markets from all over the country to make the perfect pick and to minimise risk. Relying on “friendly” real estate agents While a lot of agents are there to guide you through the selling and buying process, it's easy to fall for a real estate agent’s charm. Just remember, they are working for the vendor, and their best interest is maximum profit for their client. The same goes for non-independent buyer’s agents who effectively are just sales agents for developers. Do your own research and comparisons on any investment, or seek the help of a truly independent buyer’s agent to assist you in the process. Not considering the risks in investment Buying property is a risky game, as vacancy, bad tenants or even interest rate rises can throw a spanner in the works. Engaging with professionals can help mitigate the risks, and help you be more aware of the harsh reality of investing. It’s important to embrace these risks and learn how to reduce them, not shy away from them. Short term vs. long term Buyers, investors and estate agents can tend to be reactive to what is happening in the market right now, and focusing on short term gains. The key to success in property is to take a long-term approach and ignore all the short-term noise. Starting with a plan first, then actively seeking out properties that suit your investment criteria will move you away from just being another property speculator to a true investor. Image credits: Getty Images

Real Estate

Instead of putting more massive trucks on our roads, we need to invest in our rail network

In recent years, the <a href="https://transport.vic.gov.au/ports-and-freight/freight-victoria">Victoria</a> and <a href="https://www.transport.nsw.gov.au/projects/strategy/nsw-freight-and-ports-plan">New South Wales</a> governments have both unveiled strategies to move more freight across the country by rail and ease the increasing pressure of goods moving through the two largest container ports. The reality is, however, the numbers of containers coming and going by rail to the Port of Melbourne and Sydney’s Port Botany have been going backwards. <h2>More massive trucks on Victoria’s highways</h2> The Port of Melbourne moves more containers than any other port in Australia. In 2020-21, <a href="https://www.portofmelbourne.com/about-us/trade-statistics/quarterly-trade-reports/">3.3 million</a> containers passed through the port, a <a href="https://www.portofmelbourne.com/about-us/trade-statistics/historical-trade-data/">30% increase from ten years ago</a>. Over this time, the percentage of containers moving by rail has fallen, reaching a <a href="https://www.accc.gov.au/system/files/Container%20stevedoring%20monitoring%20report%202020-21.pdf">low of 6.1% in 2020-21</a>. This has meant the number of trucks going to and from the Port of Melbourne has significantly increased. This has been assisted by improvements to the state’s roads and bridges. But the Victoria government also in mid-2021 <a href="https://transport.vic.gov.au/about/transport-news/news-archive/guiding-road-freight">approved</a> large “A Double” trucks being able to access the Port of Melbourne. These trucks can carry two 12-metre containers and be up to 36 metres long – much longer than the standard semitrailer at 19 metres. Large numbers of trucks accessing the ports not only add to road construction and maintenance bills, they also make our roads less safe and more congested, and add to noise and air pollution. The <a href="https://www.parliament.vic.gov.au/994-epc-lc/inquiry-into-air-pollution">recently released report</a> into the health effects of air pollution in Victoria notes the city of Maribyrnong has some of Australia’s highest levels of diesel pollution. This is mostly due to the number of trucks accessing the Port of Melbourne each day. The report also notes the transport sector is accountable for <a href="https://www.parliament.vic.gov.au/images/stories/committees/SCEP/Air_Pollution/Report/LCEPC_59-04_Health_impacts_air_pollution_Vic_Report.pdf">20% of Victoria’s total greenhouse gas emissions</a>. In 2018, Victoria introduced a new <a href="https://transport.vic.gov.au/getting-around/roads/heavy-vehicles">freight plan</a> that included initiatives to move more goods from the port by rail. One of these projects was the Port Rail Shuttle Network, a $28 million investment to connect the freight terminal in South Dandenong to the rail network. This is now underway. Increasing the amount of freight moving by rail will not only make our roads safer and reduce maintenance costs, it makes environmental sense – <a href="https://www.railfutures.org.au/2017/07/submission-to-inquiry-into-national-freight-and-supply-chain-priorities">rail freight produces one-third the emissions of road freight</a>. However, rail freight in Victoria is crippled by two different track gauges and tracks with too many temporary and permanent speed restrictions. Without greater investment to improve the rail system, it remains a less feasible option than moving freight on massive trucks on our roads. <img src="https://images.theconversation.com/files/437972/original/file-20211216-19-ljbvpc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /> A freight train passing through a level crossing in Cootamundra, NSW. Shutterstock <h2>Sydney’s situation is not much better</h2> A recent NSW <a href="https://www.audit.nsw.gov.au/our-work/reports/rail-freight-and-greater-sydney">auditor-general report</a> said the volume of freight passing through Greater Sydney is expected to increase by 48% by 2036. In 2020-21, <a href="https://www.nswports.com.au/nsw-ports-ceo-update-july-2021">2.7 million containers</a> moved through Port Botany. The NSW government had planned to increase the number of containers moving by rail from the port to <a href="https://www.nswports.com.au/resources-filtered/trade-reports">28% by 2021</a>. However, the auditor-general report said this effort would fall short. Just 16% is currently carried by rail. This means more trucks on the roads in NSW, as well. The NSW government has also recently <a href="https://www.smh.com.au/national/nsw/congestion-compounded-as-more-trucks-added-to-sydney-roads-20201101-p56aix.html">given permission</a> for “A Double” trucks to access Port Botany. The auditor-general report made recommendations on how NSW Transport could improve the operation of the state’s rail network to allow for more rail freight. It noted, for example, 54 trucks could be replaced by one 600-metre-long port shuttle freight train. <h2>Rail moving less intercity freight</h2> The rail network between Australia’s two largest cities is outdated and under-utilised. In fact, the proportion of freight moving between Melbourne and Sydney on rail has <a href="https://pacificnational.com.au/australias-major-highway-now-a-conveyor-belt-for-big-trucks/">fallen to about 1% today</a>. In 1970, it was <a href="https://www.bitre.gov.au/publications/2000/is_017">about 40%</a>. This is, in part, due to the total <a href="https://roads-waterways.transport.nsw.gov.au/about/environment/protecting-heritage/hume-highway-duplication/index.html">reconstruction</a> of the Hume Highway from a basic two-lane road to a modern dual carriageway, completed in 2013. There are now over <a href="https://roads-waterways.transport.nsw.gov.au/about/corporate-publications/statistics/traffic-volumes/aadt-map/index.html#/?z=6&id=GNDSTC&hv=1">20 million tonnes of freight</a> moved each year on the Hume Highway, with over 3,800 trucks on the road each day (and night at Gundagai). The result is more road trauma, higher maintenance bills and pressure for further road upgrades. Plus more emissions. The Sydney-Melbourne rail track, meanwhile, has been left with severe speed weight restrictions and a “steam age” alignment characterised by tight curves. It is also over 60 kms longer than it needs to be. <h2>From a national perspective</h2> Getting more freight on rail is not helped by hidden government subsidies to heavy truck operations, which in my estimations exceed <a href="https://theconversation.com/distance-based-road-charges-will-improve-traffic-and-if-done-right-wont-slow-australias-switch-to-electric-cars-150290">$2 billion per year</a>. It is also made harder by the current <a href="https://www.freightaustralia.gov.au/">National Freight and Supply Chain strategy</a>, which puts much more emphasis on increasing truck productivity with ever larger trucks. Instead, much more attention is needed to improving the efficiency and competitiveness of rail freight.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/172491/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/philip-laird-3503">Philip Laird</a>, Honorary Principal Fellow, <a href="https://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/instead-of-putting-more-massive-trucks-on-our-roads-we-need-to-invest-in-our-rail-network-172491">original article</a>. Image: Shutterstock

Domestic Travel

“That’s hot”: Aussie mum’s $500 investment becomes a $10 million business

Last year, Aussie brand Custom Neon received a voice message on Instagram from celebrity Paris Hilton, telling the signage brand she loved their products and would be keen to work with them. But, co-founder Jess Munday said nothing ever came of it. A year later, the star’s lavish four-day wedding included Kim Kardashian, Demi Lovato, Nicole Richie and custom items from the Geelong-based business. “She asked us to create neon signs for her wedding and it was an awesome opportunity,” Ms Munday told <a rel="noopener" href="https://www.news.com.au/finance/small-business/geelongs-custom-neon-finds-fans-in-paris-hilton-and-elon-musk/news-story/808941847d2bd4f0355f3fbf8eec1668" target="_blank">news.com.au</a>. “She had her wedding over three or four days I think and day two was a carnival themed party and in the party it had one of our neon signs - the biggest one, which said, ‘That’s hot’.” <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/CWPq__GveP5/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" rel="noopener" href="https://www.instagram.com/p/CWPq__GveP5/?utm_source=ig_embed&utm_campaign=loading" target="_blank">A post shared by Custom Neon® (@customneon)</a> </div> </blockquote> But the mum-of-two said it hasn’t been the brand’s only brush with celebrity fans. Elon Musk, the billionaire founder of Tesla, posted a neon sign with the phrase ‘cyberviking’ on Twitter - a nod to cryptocurrency dogecoin that quickly went viral. “That tweet went viral and we said that looks like one of our signs and we checked our records and it was created by us,” Ms Munday said. “He got it delivered to a place in California, which is very exciting.” <blockquote class="twitter-tweet"> How much is that Doge in the window? <a href="https://t.co/bxTkWOr50V">pic.twitter.com/bxTkWOr50V</a> — Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1395328697436033032?ref_src=twsrc%5Etfw">May 20, 2021</a></blockquote> Initially, Ms Munday started Custom Neon as a side hustle with her husband in 2018, while the couple were expecting their first child. “We were decorating my son’s nursery and my husband wanted to get a neon sign with the baby’s name and we looked around and couldn’t find one that was affordable and the process wasn’t easy to get a custom-made design,” she recalled. “He had seen it on Pinterest and he thought it was cool that you could get your son’s name and at the time having a baby and revealing the name is a big deal, so there was excitement of the baby coming and wanting something cool for the nursery.” The couple then found a supplier to make the sign, as well as a few for their upcoming wedding. Soon, they were renting out their wedding signs via Instagram, and began fielding inquiries for custom pieces from up to 20 businesses and individuals each week. Their $500 investment in their first few signs has since grown into a $10 million business in just three years, with Ms Munday saying the business is on track for a turnover of $18 million by the end of the 2021-22 financial year. She said Custom Neon has been a “whirlwind” journey and a far cry from her job in HR prior to taking maternity leave. During the last three years, the 32-year-old said there have been some interesting requests for signs, including people asking for pictures of themselves or their pet dogs as neon signs. Their signs have also made appearances on The Block, as well as inside a range of restaurants, bars and other businesses around the world. Though business from events dried up during the pandemic, Ms Munday said 70 percent of their orders now come from business signage, and that 60 percent of orders come from the US. “It’s such a huge part now and such a large country so there is much opportunity for growth,” she added. “We are planning to expand further into the US and set up our own manufacturing there in the next year. We also just secured an office in LA and have five people starting.” With such rapid growth already, this small business looks like it will have a bright, neon-lit future. Images: Jess Munday (Facebook) / @customneon (Instagram)

Money & Banking

Bec and Lleyton Hewitt list Melbourne mansion after big investment

Tennis star Lleyton Hewitt and Home & Away actress Bec have <a rel="noopener" href="https://www.realestate.com.au/property-house-vic-toorak-137660686" target="_blank">listed</a> their luxurious Melbourne mansion just weeks after scooping up a Gold Coast home. The pair’s Toorak home was listed for sale with a price guide of $15-16 million ($NZD 15.5-16.5 million) after they reportedly dropped $4.305 ($NZD 4.46) million on a coastal home in Burleigh Heads. Their five-bedroom family estate became the country’s most viewed home according to <a rel="noopener" href="https://www.realestate.com.au/news/lleyton-hewitt-and-wife-bec-list-toorak-mansion-after-buying-burleigh-heads-home/?rsf=syn:news:nca:news:spa:strap" target="_blank">realestate.com.au</a>, having racked up over 12,400 views in one week. It boasts multiple living and dining areas, a huge main bedroom, indoor and outdoor kitchens, and a basement with a 12-seat cinema, wine cellar, gym, and a six-car garage. Outside, the property also includes a pool and a Rebound Ace tennis court. The home is open to expressions of interest and the listing is being managed by Jellis Craig Stonnington agent Phillip French. Mr French first sold the property to the Hewitts for $12.7 ($NZD 13.1) million while it was under construction in 2016. He said the family had loved the home’s “very private position” and enjoyed its “great entertaining spaces”. The listing comes as the couple are expected to settle on their new Gold Coast home by November 15. The four-bedroom home sits less than 100-metres away from Burleigh’s surf beach, and boasts a tropical outdoor entertaining area with a sunken fireplace, pool, and barbecue kitchen. Conal Martin, the agent managing the sale, declined to comment on the buyer’s identity but said the family had visited since the sale and loved it. “I can say they do love the Gold Coast,” he said. “They’re a lovely family and they are welcomed in the area.” Despite purchasing a Queensland home, Bec and Llayton are rumoured to be moving to Sydney with their three children, Mia, 15, Cruz, 12, and Ava, 10. Images: @bechewitt23 / Instagram, realestate.com.au

Real Estate

How a financially-savvy 29-year-old plans to retire at age 35

Michelle Ives, a 29-year-old mother of one, believes she has discovered the secret to an early and stress-free retirement. The Central Coast native is planning to retire from running her own copywriting business when she turns 35 in just six short years. By then, her family will have an impressive investment portfolio worth over $2million. She plans to leave her job and live off between $70,000 and $100,000 a year from the money her family will make in investing. When Michelle started her first job at age 14, she said the idea of working into her 70s made her feel “very trapped”. But when she turned 21 and started working full time as a journalist, she got serious about following a strict financial plan. “Everyone followed this linear path to retirement where they work, work, work and do the nine-to-five or just have a job and then they get to 60 to 65 and retire and then potentially have a few golden years to make use of the nest egg that they have built, and that’s if they even have one,” she told <a rel="noopener" href="https://www.news.com.au/finance/superannuation/how-29yearold-michelle-ives-plans-to-retire-at-35/news-story/39a07c283824f7b95d58365a54056922" target="_blank">news.com.au</a>. “But it never made sense to me … and I didn’t feel like it was the only path to financial freedom. I was excited to work but why should I have to do that every day until I’m in my sixties or seventies and not even able bodied enough to enjoy it?” Michelle follows a financial movement called FIRE (financial independence and retiring early), which began in the US. The saving-savvy mum said the movement is primarily about saving the majority of your income and living off what’s left over. “We save around 70 to 80 per cent of our income, as the theory behind FIRE is you need to either take existing income and need to peel it back as much as you possibly can and create disposable income and start saving and investing that.” “Or create additional income streams, so get a raise or get a better job or have a side hustle or side business,” she said. “It brings forward the retirement age by decades than people can otherwise realistically do. For some people it’s 40 and for some people, 30 is increasingly becoming the age they can retire.” Michelle documents her early retirement plans on her blog and directs many people to financial resources to share her dream of an early retirement. Image credits: Shutterstock/Facebook: That Girl on Fire

Retirement Life

Four ways to find the right travel agent

Today more than ever, people are enabled to travel, almost anywhere, at almost any time. What is it that attracts us to embark on holidays and seek experiences outside of what’s available locally? Why do we invest our precious time and hard-earned financial resources, leave our homes, and journey across the globe? Gavin Tollman, Trafalgar’s CEO, believes that travel is a vital element of the human experience. “It’s the introduction to new places and stimulation from meeting new people that is energising. With each moment of discovery, your world opens wider and your life changes forever,” he says. “There is one constant for all of us: once the travel bug bites, there is no cure.” But where do you start when turning these dreams into reality? <img style="width: 500px; height: 281.25px; display: block; margin-left: auto; margin-right: auto;" src="https://oversixtydev.blob.core.windows.net/media/7830560/trafalgar-native-hero-1.jpg" alt="" data-udi="umb://media/7658dff91fca4986b9780eac14a85d1e" /> Trafalgar CEO Gavin Tollman Based on an independently commissioned <a href="https://blog.trafalgar.com/wonder-lost/">research study</a> last year, Trafalgar found that 89% of consumers are overwhelmed by the abundance of choice they have when it comes to travel decision-making. With an overwhelming amount of travel resources available – the internet, newspapers, social media, magazines, books, television and word of mouth, it’s no wonder that trying to bring your travel dreams to life can turn into a <a href="https://blog.trafalgar.com/2018/09/28/take-stress-out-travel/">stressful and time consuming</a> exercise, and one that is easy to give up on. In this environment of complexity, this is precisely why the services of a professional travel consultant, who can help navigate the journey, has become more valuable than ever. But how do you even know which one to choose? Skill levels vary, as do areas of expertise and it’s quite likely that your travel inspiration and actual travel desires may not align. Therefore, it is absolutely imperative to find an expert in travel who knows the world, is passionate about travel, and understands your needs. “Nowhere in the travel world is there any debate around the relevance and value today of travel agents,” Tollman continues. “The secret to finding a holiday that meets your needs is finding a travel agent who truly understands who you are, what you need and dream of in a holiday, and how to get you there. Literally.” “A good travel agent takes the time and trouble to listen to what you want (and don’t want), makes thoughtful and relevant suggestions that reflect your holiday aspirations in all ways, adjusts to ensure that the holiday is a genuine ‘fit’, and makes it happen according to your defined resources of time and money,” Tollman concludes. “At the heart of a good travel agent experience is simply this: They do the work, all you do is dream, pack and go. “ Tollman gives his four-step fit for finding the right agent for your travels: 1. First and foremost, EXPERTISE <div id="page2" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> First-hand knowledge, from the places they have been or learned their customers and fellow agents. By nature, a great travel agent must be inherently inquisitive. They don’t just sell a destination – they travel, they ask questions, read, discover, research and experience the places for themselves. Quality travel agents travel for work, absorbing every detail of the guest experience. They don’t have to have personally been where you want to go, a colleague has, or their preferred tour operators have. They know the hidden gems in a given destination. They take feedback seriously. Every time they travel they are focusing on these details – so their customers can just dream about their destination and not have to worry. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/">2. Access</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/"> <div id="page3" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Always accessible when you are on the road – an imperative when we are subject to the vagaries of travel – cancelled flights, weather, personal circumstance. If something goes wrong, a travel agent can help make it right. And quickly, with minimum of fuss. They answer their phones and respond to their email no matter where you are on the planet. Importantly, they must have clout – they will have developed personal relationships with individuals at the companies they sell, and this gives them leverage you can’t get on your own. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/">3. Value</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/"> <div id="page4" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> This is their lifeblood. Do not begrudge them for it. You are paying for their service and their credibility pays dividends. Generally, I have found that it will not cost you any more than doing it yourself. Their ability to benefit from travel relationships, access and resulting discounts will, with good travel agents, benefit you. If your travel agent charges a fee, the value you receive should be greater than what you would have paid going it alone. We may have the world at our fingertips but a good travel agent cuts through the clutter. And eradicates risk of your holiday dream becoming a nightmare. Remember in travel, there are no do overs. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/">4. Endorsement</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/"> <div id="page5" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Choose a travel agent in the same way you would other high-value service providers such as doctors or lawyers: trust the opinion of others. Since travel choices are personal decisions that reflect individual desires and lifestyles, you will want to visit or call a number of consultants to find the one that best suits your needs. One of the largest changes, has been a shift to many different agency models. Look for the ones that best work for you. Trust your instincts – but pay attention to a travel agent’s willingness to listen and answer questions. And never forget that the best agents want to establish a long-term relationship with you, one that will be a true partnership in which your holiday dreams are fulfilled beyond expectation and is not just seen as a sales-oriented transaction. Sharing is a wonderful and consistent element of a great holiday. Investing in finding the right travel agent – the right partner – who can share and guide you is one of the greatest investments you can make. We only have one life, one in which there is no time nor money to waste. After all, travel dreams fulfilled are priceless. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.co.nz/flightstravel-hints-tips/four-ways-to-find-the-right-travel-agent/">This is sponsored content brought to you in partnership with <a href="https://www.trafalgar.com/en-au">Trafalgar</a>.</div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div>

Travel Tips

How to spot an investment scam

Last year, Australians and New Zealanders lost a reported $31.3m and $10m respectively to scams, with investment scams promising fast profits at low or no risk. Many of the people targeted by cunning scammers were wealthy individuals who consider themselves savvy investors, and yet they still fell victim. One person is said to have lost more than $1 million to an investment scam before he finally reported the crime to the police. Scams are successful because the people running them know just what tricks to use to build a sense of trust in their unsuspecting victims. This cunningness means even seasoned investors should not be complacent. There’s no shame in making a mistake. NZ’s Commission for Financial Capability (CFFC) offers this advice: “If you have been victim to a scam, don’t be too hard on yourself. Scammers are experts at what they do and rely on people’s busy lives to distract them from the intent of their emails.” Scammers present a slick, professional appearance and often come with a raft of ‘documentation’ – quality websites and flyers, ‘reviews’ and a ‘history’ of successes. But there are ways you can spot an investment scammer. Look for these telltale signs. They like to cold call The vast majority of investment scams begin with a cold-call offer over the phone. Reputable financial services won’t initiate contact this way. While your bank may occasionally call you, it will always do so for a specific reason, and generally in response to your own attempts to contact them. According to Michael Baumann, General Manager, Everyday Banking and Payments, at the Commonwealth Bank, a bank will never call a customer out of the blue and seek confirmation of secure information. “We will never contact customers asking for their credit card number, card PIN, [online banking] password or code,” he says. “If customers opt to receive marketing material from their bank, we will send general information about a product or service, and invite them to read more on our website, visit a branch or get in touch with us. We won’t ask them to send us money or confidential personal information.” If you are contacted over the phone by someone purporting to work for a major bank, financial services firm or even a telecommunications company, and you’re not sure whether or not it’s a scam, call back through the company’s main switchboard (not the number the caller gave you) to check that the person works for that company in the capacity they have alleged. Alternatively, a quick Google search of the company name or phone number and the word ‘scam’ can often bring up details about the latest scam doing the rounds. You are targeted online The internet provides scammers with a very sophisticated avenue for doing ‘business’. Using Facebook ads offering access to ‘unique opportunities’, ‘mate’s tips’ in online forums and even offers in unsolicited emails, scammers trick online users into thinking they are the one initiating contact, when in fact you are taking a very clever bait. Remember, when you conduct any online research into companies you may wish to invest in, or look for financial advisers, be careful what links you open. Don’t fall for the unsolicited marketing that may clutter your screen with pop-up ads and offers – it could be a scammer. “You can’t lose. Don’t delay.” Any reputable investment adviser will tell you that you can lose. While some options are safer than others, nothing is guaranteed. A reliable adviser will recommend you spread your risk across several types of investment, whereas scammers will often encourage you to focus on just one, or declare that their portfolio is ‘risk-free’. Investment scammers push their ‘products’ by building a sense of urgency and exclusivity. Look out for claims of ‘limited opportunity’. This approach is particularly true of investments promoted at ‘wealth creation’ seminars, where investors are urged to sign on the dotted line right there and then. This removes any chance of seeking independent advice or time to consider whether the investment is worth the valuation given, or if the charges are reasonable. Some investment scams have actual items of worth as part of the scam, but ask you to pay in more than you would receive as your part of the company’s assets if the scheme was wound up. Never commit to any investment without obtaining independent legal or financial advice first. They won’t stop Reputable firms take no for an answer. They may follow up an initial contact from you with one or two offers, but a request to stop contact will be honoured. Scammers will sometimes take a hard ‘no’ reply, but just as often a ‘more senior’ staff member will come back to you with more information as to why you should invest with them. What can you do? In NZ if you receive a scam by text message, simply forward it to 7726 SPAM, and officers at the Department of Internal Affairs will investigate. In AU you can also report scams to ACCC’s Scamwatch at www.scamwatch.gov.au/report-a-scam. Baumann says, “Customers should always check that the person they are talking to is who they say they are. Ask them for their credentials, ABN or the number of the Australian Financial Services Licence they operate under.” If at any point the conversation seems uncomfortable, feel free to say no. Scammers will often create a sense of urgency. They may try to test your better judgement by claiming that something needs your immediate attention. “Education is key,” says Baumann. “Read up on what to look out for, so you don’t fall for it. Scamwatch is a good source of information. The CommBank website also has tips and advice for customers on how to stay safe online at www.commbank.com. au/personal/support/security.html.” You should also check details of companies you are considering investing in by checking the NZ Companies Register at www.companies-register.companiesoffice.govt.nz, ASIC’s ABN look-up online service at www.abr.business.gov.au, and make sure they are not on this list: www.moneysmart.gov.au/scams/companies-you-should-not-deal-with/. Then check to confirm that the company is registered and allowed to offer financial services at www.fma.govt.nz/news-and-resources/warnings-and-alerts/unregistered-businesses/. Greet all unsolicited investment suggestions with an enormous amount of scepticism. The old adage ‘if something seems too good to be true, it probably is’ definitely applies when it comes to investing. Written by Donyale Harrison. This article first appeared in <a href="http://www.readersdigest.com.au/money/investment-scam-alert">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.co.nz/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRN93V">here’s our best subscription offer</a>.

Money & Banking

The do’s and don’ts for retirement investing in 2019

When thinking of retirement, many people are not completely aware of what they should and should not do. Here are a few of our do’s and don’ts when investing for you retirement. Do think long term If you’re still working and investing for your retirement, then your time may be still 5-10 years away. If you plunge out of the stock market before the December plunge and then jump back in after the nasty period ends, it makes little difference over the long term. Don’t think short term News stories should not always require sudden re-evaluation of your portfolio. Stocks look forward, not backwards. Do diversify Your portfolio should look diverse and not one portfolio should exceed over five per cent of your total portfolio due to a lot of risk. Don’t overemphasise small difference in returns It says nothing how one fund return will do in the years to come so don’t overthink a few percentage differences – these are not the be-all or end-all of your investment portfolio. Do embrace mistakes Your shortcomings or small mistakes (and even big ones) are learning opportunities and ignoring them sets you up for failure. Don’t obsess Don’t think too much about your best or worst performing stocks in a month, quarter or year – they usually cancel each other out. The total – broad middle – is what really matters. What are some of your retirement investing do’s and don’ts for this year? Let us know in the comments below.

Retirement Life

10 ways to find new investment ideas

Investors now have an unprecedented amount of information available to them to expand their knowledge base, which is especially important to those who are managing their own superannuation money. You can gain investment ideas predominantly from the following 10 sources: 1. Media The media provides a wealth of information on individual stocks, market themes and economic trends. Valuable media sources include financial newspapers, radio, television and online newsletters such as Cuffelinks and Livewire. Market data provider Bloomberg, which is universally used by institutional and professional investors, has free daily email alerts and newsletters available on its website. 2. Market tables and price movements After the market closes each day, share market tables can be reviewed to identify companies with share prices that have reached 12-month rolling highs and lows. When a price hits a 12-month high, it can indicate a degree of momentum (particularly in a bull market) that will drive it higher. Conversely, if a company hits its 12-month low, this is often a sign of fundamental company issues and the price is likely to fall further. 3. Word of mouth While company executives can provide a biased perspective, personal and business contacts with knowledge of a company or industry can be more objective. Some of the most illuminating investing insights can come from personal and professional connections such as family, competitors, sell-side analysts and other fund managers. 4. Stock brokers Stock analyst reports provide valuable and well-researched business insights. If a company is covered by sell-side research analysts, analysing their reports and understanding the consensus forecasts could prove valuable. 5. Directors buying As a general rule, a company’s directors know more than others in the market. Therefore, directors buying shares is a very strong signal about the business. The announcement of a Change in Director’s Interest Notice revealing a company director has substantially increased their holding may prompt us to examine the company further. 6. Observations of a business Everyday observations can also offer insights into a company. Apple’s share price languished for many years until after the release of its portable media player iPod. Around this time, the casual observer would have witnessed thousands lining up to buy the iPod and an increase in foot traffic at Apple stores, however this strong demand was not reflected in Apple’s share price. Apple subsequently sold 55 million iPods, generating US$9 billion in revenue and spurring the share price. 7. Life experiences, behaviours and preferences Our own life experiences, behaviours and preferences, and those of the people around us, can also reveal a consumer trend, or structural industry change, that leads us to an investment idea. Some time ago, I tried to buy a tin of infant formula only to find there was a considerable shortage. This experience demonstrated demand for this particular product was vastly outstripping supply. This insight was the catalyst to investigate the company and subsequently invest in it. 8. Company meetings and site tours Company meetings and visits offer insights into a business such as the quality of management and its culture. Individual investors can sometimes join site visits arranged by the company. For example, an executive’s remark that a certain competitor is giving them a ‘run for their money’ could prompt us to investigate that competitor business as a potential investment. Any investor can contact a company and ask to meet the CEO or other executives and, while access to executives at larger companies may be limited, micro and small-cap companies should welcome interest from potential shareholders. Retail investors may also have the option of listening to earnings results teleconferences, giving them the opportunity to interpret the executives’ tone, as well as their words. Larger companies often host investor days for shareholders. 9. ASX announcements Previously undiscovered investment gems can be found through regular scan of ASX company announcements. Company announcements can be a particularly good source of micro-cap investment ideas during reporting season, and are available to everyone. 10. Ask a lot of questions Having a fascination with the market and an inquisitive attitude are indispensable attributes for investors. The most successful investors ask a lot of questions and are driven to gain an in-depth understanding of a company, trend or investment theme. It’s possible to generate a worthwhile investment idea, or a piece of information that leads to one, from a vast range of sources. Constantly gathering insights to develop a broader knowledge base and being alive to potential investment ideas is key. Do you have any other sources for investment ideas? Share them in the comments below. Written by Chris Stott. Republished with permission of <a href="https://www.wyza.com.au/articles/money/superannuation/10-ways-to-find-new-investment-ideas.aspx">Wyza.com.au</a>.

Retirement Income

Should you save or invest?

It might seem like stating the obvious to say there are fundamental differences between saving and investing, but do you actually know what those differences are and how they can impact your financial planning? By definition, saving refers to the practice of setting money aside, usually on a regular basis, to accumulate toward a specific goal, such as a holiday, a home deposit, a car, or perhaps some other less concrete “rainy day” purpose. Investing, on the other hand, is the practice of putting your money in some type of asset or account with the purpose of growing value through returns or capital growth. Where do you save or invest? The priority with saving is preservation and accessibility, so the vehicle used is normally one which protects your money until it can be applied to the intended purpose. In years gone by this may have meant hiding cash in your sock drawer or putting it in a safe, but these days most of us use a bank account. It may only be earning minimal interest, but the main purpose is simply to keep it secure and easy to access. Investing is focused more on growth or income generation, so the priority is usually to find a vehicle that can deliver those attributes, such as shares, property, or some kind of deposit product that pays interest. This will usually involve limited accessibility and may also involve increased risk of values fluctuating over time. Should you be saving or investing? The short answer for most people is “both”, but the degree to which you do either is heavily dependent on your situation. If, for example, you are living from pay packet to pay packet without any fallback funds, or if you have significant debts which are out of control, then saving takes on a much greater priority. As a general rule, if you are in that type of situation, you should first focus on: <ul> <li>Saving to build up an emergency fund amounting to at least three months’ income</li> <li>Directing any other discretionary income toward debt repayment until you have debts under control</li> <li>Ensure that you have contingency plans in place to protect dependents against disasters, such as illness, accident, or premature death. This can be done via personal insurance plans, such as income protection and life insurance.</li> </ul> These actions will provide stability within your financial planning and once they are sufficiently catered for, you can then start to invest. Once you are in a position to invest, the next step is to ensure you have a clear picture of your goals and timeframes. Generally, investment goals can be categorised into short, medium, or long-term, and the way that you invest will be heavily dependent on which of these categories your investment goals fall into. Matching investment types to your goals Due to the fact that most investing involves some degree of risk, it is important to match the type of investment to the goal you have in mind. Short-term investment goals might include anything that is up to five years away, for example, if you are aiming to build up an education fund for a child or grandchild, and you know they will be going to university in five years’ time, then you need to invest in something that you can confidently liquidate in five years without undue risk of losing capital. This might mean primarily investing in cash-based assets such as term deposits or fixed interest investments. If you were to invest in property or shares for such a short term, there would be a real risk that the market may be depressed at the time you want to withdraw, so these would not be wise investment choices. For medium and long-term goals, however, you have more scope to invest in those more volatile asset classes, because historically, they have a better chance of providing real growth over time. A classic example of this is your superannuation. If you have 10 or more years before you need to access the funds for retirement, then you have a substantial timeframe in which to diversify your investment across a variety of assets, including property, shares, and managed funds. Because you don’t have a need to liquidate those investments early, you can ride out any fluctuations with the objective of capturing growth over the full timeframe of the investment. As you get closer to the end of the timeframe, you can gradually switch your investment out of growth assets and into more secure areas, so that you can lock in any of the gains you have made. Get help to put your strategy together Most of us have a range of things that we might be saving or investing for. This can often mean we need a sophisticated approach to where we allocate funds to gain maximum effect. A financial planner can be invaluable in helping you identify and rationalise all of your short, medium and long-term goals, and can help you map out a strategy that will allocate, manage, monitor, and adjust your strategy over time. What are your ideas on the best ways to save? Share your thoughts below. Written by Bridges. Republished with permission of <a href="https://www.wyza.com.au/articles/money/financial-planning/should-you-save-or-invest.aspx">Wyza.com.au</a>.

Retirement Income

Why you need to invest in yourself to retire well

I have a particularly resourceful friend who lives a pretty good life, despite never having quite enough money. She is hardworking and popular with her wide circle of friends, neighbours and colleagues. She networks, barters and works for what she really wants. A former chef turned teacher, she finessed enough grant money to pay for a two-week trip to cooking school in Italy. She knows where all the good used furniture stores are, has bartered home cleaning for a two-week stay in a holiday home, and is working on an arrangement now that will get her free housing in France for several weeks this summer. Tres bien! I'm pretty sure my friend will do really well in retirement, though I strongly suspect she has nowhere near the $1-million plus that you would think her lifestyle would require. She has a different kind of capital: skills, smarts, and a great social network. "Everyone is focused on the money, but when somebody retires, they usually manage," said Larry Cohen, director of Consumer Financial Decisions, a consulting group that studies consumer behaviour. "If they don't have the money, they have human capital like skills and education, and social capital in terms of friends, neighbours or a church. All these things help." Cohen predicts: "The (retirement) solutions for the future are going to involve more of these other forms of capital." Experts are increasingly focusing on the non-financial assets that workers can bring into retirement to help them manage on fewer dollars than might be optimal. So what are the best non-financial forms of capital that pre-retirees can invest in now to insure a good retirement? Here are a few. Investing knowledge Nothing good can come of being uninformed about investing. The more you know, the more you can grow small contributions into a retirement kitty you can live off of. Break it into small bits and learn a little every month. Learning about stocks, taxes, portfolio management and the like will help you, at the very least, choose the right adviser. And it will also help you stretch your income after retirement. Money-earning skill The baby boom may well have psychological problems adjusting to the "withdrawal" era of their lives. It could be harder than you think to find money to see a movie or make a car payment. So develop something now that can earn money in the future. Some popular money-earning side business include TradeMe sales, handyman work, cooking, babysitting and driving. Money-saving skills Gardening, appliance repair, lawn mowing, scratch cooking, vacuuming ... got it? If you're the kind of person who currently pays others to do all of these things for you remember this: In retirement you'll have more time and less money. Friends and neighbours Can you drive each other to the airport? Share big bargain packages of toilet paper and tomatoes? Check in on each other when you haven't surfaced for a while? Does someone in the crowd make their own tomato sauce and another fix cars? Or own a beach house or a garden tiller? There's no end to the savings that a supportive collective like that can generate. And, of course, people who are connected to others enjoy life more and may be able to entertain themselves more cheaply. Best body possible The better shape you are in going into retirement, the less you'll spend on pain pills, back braces and more. Of course, you can't control everything that befalls you, but moving into retirement with strong bones and muscles, a good sense of balance, and cardiovascular fitness will improve your retirement fun and cut your retirement expenses. Craftiness Retirement can be like a second chance; the rules come off and you can do things you might not have considered while you were in your main buttoned-down job. Practice creativity now, just like my friend, and you'll be ahead of the game when your new job is making that smaller-than-you'd-hoped retirement fund last a long and happy time. Do you agree with this advice? Written by Linda Stern. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank">Stuff.co.nz</a>.

Retirement Income

The Queen embroiled in investment scandal

The royal family have been named in the “Paradise Papers”, a series of leaked documents sourced from an investigation by German Newspaper Suddeutsche Zeitung into the tax haven industry. It’s alleged that the Queen, through the royal family’s private estate (the Duchy of Lancaster), holds investments in a controversial retailer called BrightHouse, which has been slammed for its exploitative treatment of disadvantaged people and poor families. The Duchy described its investment, which was made in 2005, as “negligible”, but refused to disclose the sum. It also denies receiving any tax breaks from investing offshore in the Cayman Islands. As a result of the claims, Her Majesty may face questions regarding the management of her investments, not to mention the ethical repercussions.

News

Why some investment options are better than others

Not all investment options are equal. The Westpac New Zealand Notice Saver PIE can be a good option for people looking for an alternative to a term deposit. <a href="https://www.westpac.co.nz/investment-kiwisaver/notice-saver-pie/" target="_blank">Westpac’s Notice Saver PIE</a> account allows investors to enjoy term deposit-sized returns with the convenience of accessible funds at relatively short notice. Here are a few reasons why you might want to consider a Westpac Notice Saver PIE. Accessibility Term deposits by nature are not very accessible, which can be a real problem for people looking for the flexibility to save for major expenses. And while traditional savings accounts provide more ready access to your money, they offer significantly lower returns. Westpac’s Notice Saver PIE provides a happy medium between these two options, offering returns higher than those of a traditional savings account, however your funds are easier to access than a term deposit. All you need is to provide 32 days’ notice*, which is perfect for people who are saving up for a holiday, paying for renovations or need to cover any upcoming expenditures. Growth Another benefit of the Westpac Notice Saver PIE account is the capacity for growth. Unlike a term deposit, you don’t need a mint to get started (you can open a Notice Saver PIE with just $500) and you can add additional funds whenever you like, which is ideal for people looking to expand their investment. Returns are paid monthly, so you can choose to reinvest these and further grow your investment or receive them as a monthly income. Tax benefits A Westpac Notice Saver PIE account also opens the door for you to reap tax benefits. With PIE accounts you could pay less tax on your returns, giving you the opportunity to grow your wealth at a quicker rate. For more information on the tax benefits you could unlock with a Westpac Notice Saver PIE, <a href="https://www.westpac.co.nz/investment-kiwisaver/notice-saver-pie/#tab3" target="_blank">click here</a>. No fees Another reason why you might want to consider a Westpac Notice Saver PIE account is the fact that there are no account maintenance or transaction fees**. Limited time offer Currently Westpac is offering a special limited-time offer on their Notice Saver PIE account. For more information on how you can unlock this offer, <a href="https://www.westpac.co.nz/investment-kiwisaver/notice-saver-pie/limited-time-offer/\" target="_blank">click here</a>. Westpac also offer some other investment options that you might want to consider – <ul> <li><a href="https://www.westpac.co.nz/kiwisaver/" target="_blank">The Westpac KiwiSaver Scheme </a></li> <li><a href="https://www.westpac.co.nz/investment-kiwisaver/investment-solutions/investment-options/" target="_blank">Westpac Investment options </a></li> </ul> Westpac has more than 50 Authorised Financial Advisers ready to help you achieve your financial goals. <a href="https://www.westpac.co.nz/investment-kiwisaver/investment-solutions/financial-and-investment-advisory-services/" target="_blank">To find out more, click here</a>. THIS IS SPONSORED CONTENT BROUGHT TO YOU IN CONJUNCTION WITH <a href="https://www.westpac.co.nz/" target="_blank">WESTPAC NZ</a>. *The withdrawal amount will receive a lower return until its withdrawal date. **The only service fees that might apply are if you’re a frequent user of the Westpac phone banking service – the first 10 calls each month are free, however after that they’re 50 cents per call. Investments made in the Westpac Notice Saver PIE Fund (“the Fund”) do not represent bank deposits or liabilities of Westpac New Zealand Limited (“Westpac NZ”) or any other member of the Westpac group of companies, and are subject to investment and other risks. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group companies or any person guarantees the Fund's performance, returns or repayment of capital. Any rates of return are subject to change. Westpac NZ’s General Terms and Conditions (including online banking terms) apply to investments in the Fund. You can get more information and free copies of the Disclosure Statement for Westpac NZ, the term sheet for the Fund and Westpac NZ’s General Terms and Conditions from any Westpac branch. A copy of the Trust Deed for the Fund can be accessed <a href="https://www.westpac.co.nz/trustdeed">here</a><a href="file:///C:/Users/Oversixty/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4W41S3SA/Westpac%20NZ%20native%20article%20-%20FINAL.docx#_msocom_1"></a>. Investments made in the Westpac KiwiSaver Scheme (Scheme) do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac group of companies, The New Zealand Guardian Trust Company Limited (as supervisor), or any director or nominee of any of those entities, or any other person guarantees the Scheme’s performance, returns or repayment of capital. For a copy of the Product Disclosure Statement or more information about the Scheme, contact any Westpac branch or call 0508 972 254 or from overseas +64 9 367 3317 (international toll charges apply). You can also download the <a href="http://www.westpac.co.nz/assets/Personal/KiwiSaver/kiwisaver-product-disclosure-statement.pdf" target="_blank">Product Disclosure Statement</a><a href="file:///C:/Users/Oversixty/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/4W41S3SA/Westpac%20NZ%20native%20article%20-%20FINAL.docx#_msocom_2"></a>.

Money & Banking

Why everyone should start actively investing

Kent Kwan is co-founder of AtlasTrend. With 15 years of professional experience in investing and international financial markets, Kent has successfully managed more than $1 billion in funds invested in international-listed shares. In this special feature, we talk to Jade Ong (Co-Founder of AtlasTrend) about her investing experience and why she strongly believes more women should invest in the sharemarket. Q: Tell us about your professional background and experience? A: I started a career in corporate advisory and investment management over 15 years ago. Prior to AtlasTrend, I spent over 9 years at Macquarie Capital in London and Sydney, and before that I worked at IAG Asset Management and Barclays Global Investors. Q: Have you always been interested in investing? A: Not quite, I was always interested in numbers but I actually wanted to study graphic design. It seemed like a very fun and exciting course. However, practicality took over creativity after getting my Higher School Certificate marks and I made a last minute decision to study Commerce and Law instead. I discovered I really enjoyed learning about finance and how our economy works. My interest in investing grew from taking a part time job at the Australian Stock Exchange and then completing an honours thesis on price movements of bidding and target firms around takeover dates. It was unexpected, but I discovered investing can be quite exciting too. When I started my career in funds management after university, I found myself hooked to watching the share price movements and how it affected the investment portfolios on screen. Q: Why do you believe it is so important for women to actively invest in the sharemarket? A: Many people, including women, are comfortable with keeping their money in cash or investing in property. When it comes to the sharemarket, I’ve noticed from personal experience that it is something a number of women tend to shy away from. An article in 2016 by the well-regarded publication Financial Times exploring “Why do most women fear the stock market?” also suggests this is the case. This may put women at a distinct financial disadvantage because it makes sense to diversify your investments and not just leave money in cash. A difference of 2 per cent return p.a. over 10 years for an initial $10,000 investment is an extra of over $2,000 that you could have earned. You don’t need to be an active trader to invest. Investing in the sharemarket can be buying listed shares directly or investing in a managed fund that owns a portfolio of shares. Q: What prevents some women from starting their sharemarket investing journey? A: There are many reasons. This could be due to all the jargon and unnecessarily over complicated and opaque investment products out there, products that are not engaging for nearly all women (or many men for that matter). I believe confidence is another key reason. Many studies have shown that women are naturally less confident and more risk averse than men. A few years ago I participated in a mentoring program run by an organisation called Women in Banking and Finance (WiBF) that helps promote attracting and retaining women in what is a historically male-dominated industry. As part of the program, I learnt from a workshop that many women perform worse than men at interviews as they tend to want to know everything before feeling like they can talk about it at 100%. Yes, it’s a generalisation that doesn’t apply to everyone but it was a light bulb moment for me – that was exactly how I felt walking into meetings. I would spend hours labouring to prepare ahead of time to be able to have the confidence to fully participate at the meeting. I think this equally applies when it comes to investing. I have learnt that you can’t wait until you have full knowledge and full confidence before investing because investing in anything always has some unknowns and risks attached. It doesn’t mean you should invest recklessly but it does mean you shouldn’t spend your time looking for the “sure thing” to invest in because it doesn’t necessarily exist. Investing is also quite personal. Whatever the reason is that’s stopping women or men from investing is something I’d love to learn more about and hopefully help. Q: Is that why you co-founded AtlasTrend? A: AtlasTrend was founded to provide both women and men a smart and hassle-free way to invest globally. We are trying to break down the barriers to investing by helping people acquire knowledge, increase their investing confidence and simplify the global investing journey whilst making it engaging and fun. Having worked in the investment industry, my fellow co-founders and I wanted to create something that has customers at the forefront of our minds. We wanted to making investing transparent, engaging, jargon-free and with fees that are simple and aligned to investors. So far it has resonated very well with our customers and it is also great we have a fast-growing number of women and people new to investing sign up to try out AtlasTrend. Q: Any final investing tips? A: Learn about investing as it’s not rocket science once the jargon is stripped away. Invest in what you understand and only invest if you know what your money is exposed to exactly. If you’re new to investing, think of it as a new journey you are about to take. Enjoy investing as it can be just as interesting learning about new companies and their amazing products and services as it is exploring a new city on an overseas holiday. Do you invest? Do you think you’ll be more inclined to do so? <a href="https://www.atlastrend.com/">AtlasTrend</a> is a global equities fund manager that makes it easy for anyone to invest in the world’s most thriving trends. To gain more actionable investment insights from the AtlasTrend team on profitable world trends (such as the growth of online shopping or rise of big data) and the listed international companies benefitting from these trends, <a href="https://www.atlastrend.com/register/?group=oversixty">click here </a>to sign up. Any advice contained in this communication is general advice only. None of the information provided is, or should be considered to be, personal financial advice. Related links: <a href="http://www.oversixty.co.nz/finance/money-banking/2017/01/how-you-can-be-a-positive-investor/">How you can be a positive investor</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2015/04/things-banks-never-ask/">7 things your bank will never ask you</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2014/11/great-money-saving-hacks/">Great money saving hacks</a>

Money & Banking

Over 60

News

Shop

Catalogues

Travel

Health

Lifestyle

Finance

Entertainment

Property

Information

Keep up to date

Search

Is Valentine’s Day worth the romantic investment? Here’s what we can learn from economics

Should I invest in a unit or a house?

Top 5 tips to be financially healthy, wealthy and wise

How do I find out what my superannuation fund invests in? A finance expert explains

The hidden dangers of investing in property

Instead of putting more massive trucks on our roads, we need to invest in our rail network

“That’s hot”: Aussie mum’s $500 investment becomes a $10 million business

Bec and Lleyton Hewitt list Melbourne mansion after big investment

How a financially-savvy 29-year-old plans to retire at age 35

Four ways to find the right travel agent

How to spot an investment scam

The do’s and don’ts for retirement investing in 2019

10 ways to find new investment ideas

Should you save or invest?

Why you need to invest in yourself to retire well

The Queen embroiled in investment scandal

Why some investment options are better than others

Why everyone should start actively investing

News

Shop

Catalogues

Travel

Health

Lifestyle

Finance

Entertainment

Property

Information

Keep up to date

Search

Is Valentine’s Day worth the romantic investment? Here’s what we can learn from economics

Should I invest in a unit or a house?

Top 5 tips to be financially healthy, wealthy and wise

How do I find out what my superannuation fund invests in? A finance expert explains

The hidden dangers of investing in property

Instead of putting more massive trucks on our roads, we need to invest in our rail network

“That’s hot”: Aussie mum’s $500 investment becomes a $10 million business

Bec and Lleyton Hewitt list Melbourne mansion after big investment

How a financially-savvy 29-year-old plans to retire at age 35

Four ways to find the right travel agent

How to spot an investment scam

The do’s and don’ts for retirement investing in 2019

10 ways to find new investment ideas

Should you save or invest?

Why you need to invest in yourself to retire well

The Queen embroiled in investment scandal

Why some investment options are better than others

Why everyone should start actively investing

Join Over60