Smart Investing
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This is a question that many investors are, not surprisingly, asking themselves. But what might surprise some investors is that the answer is not as elusive as it may at first seem.
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Changes to the ASX operating rules to allow fixed income Exchange Traded Funds (ETFs) to trade on the Australian market will open a new means for investors to efficiently, conveniently and inexpensively diversify their investment portfolios.
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It seems that some SMSF trustees won't learn their lesson. They keep running into trouble with the tax office in its role as regulator of self-managed super.
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The number-crunchers at the Australian Bureau of Statistics have come up with the actual number of Australians who had fully retired but have since either returned to work or are planning to look for work.
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The chief executives of Australia’s large super funds were recently asked to nominate the five big issues now facing their funds. These superannuation bosses – participating in the National CEO Thinktank held during the annual conference of the Association of Superannuation Funds of Australia (ASFA) – came up with a list that is worth a close look.
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News & Commentary
Debt, debt and more debt 07 Jul 10
A special report on debt in The Economist magazine (June 26-July 2) makes the telling point that “in the rich world, getting your first credit card is a rite of passage”.
“And even if you shun the temptation of borrowing to indulge yourself, you are still saddled with your portion of the national debt,” adds the report, headed Repent at Leisure.
The credit card statistics in the Reserve Bank Bulletin for June shows how their total outstanding balance has grown relentlessly in Australia over the past 25 years, reaching more than $47 billion in April (the latest figure available).
The average credit card balance in April was $3234 – against an average credit card limit of $8884.
It is significant to emphasise that there are 10.6 million credit and charge accounts in existence, and, of course, an average balance gives no indication of the number of consumers with multiple accounts.
The horrific story of credit card debt would typically involve consumers who are “maxed out to the limit” on a handful of cards.
ASIC’s consumer website provides terrific tips for those with seemingly out-of-control debts.
It includes pointers about how not to accrue excessive debt in the first place, a calculator showing how to budget and how to assess your debt position, how to reduce debts, and where to go for help.
And ASIC has a section specifically on credit cards.
* Written by Robin Bowerman, Head of Retail at Vanguard Investments Australia.
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