Who pays your debts after you die?

It would be nice to think our debts magically disappear upon death however, this is not the case. If you haven’t planned in advance, financial debts can have a significant impact on those you leave behind. The executor of an estate will be responsible for liaising with creditors to repay debts and will need to manage the assets within the estate to do so. Creditors have first right to the assets within the estate to reclaim their money. If there are insufficient assets then the estate may...

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What is a Child Maintenance Trust?

When relationships break down, child maintenance payments are often made from post-tax money. If this is a position you are facing, perhaps you might be interested in learning about a Child Maintenance Trust. According to the National Centre for Social and Economic Modelling (NATSEM), the cost of raising two children is estimated at $812,000. For those in the 45% tax bracket, every $25,000 in child support costs nearly $50,000. Just as alarmingly, children receiving payments of ‘unearned’...

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Retirement versus investment planning

When people talk about retirement advice it is usually focussed on the critical question of have I got enough to support my lifestyle after the regular paycheck stops. But the reality of retirement is that the spectrum of advice and services needed for a successful retirement is much, much broader than the question of savings and investments. For many people navigating their way through the social security system and the aged care system – and how they interact with each other - has the...

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Dollar-cost averaging: An investor's emotional circuit breaker

The latest bout of higher sharemarket volatility reinforces the potential benefits of a disciplined investment strategy called dollar-cost averaging. It can act as an investor’s emotional circuit breaker and a means to progressively create long-term wealth. Dollar-cost averaging simply involves investing the same amount of money into, say, shares or managed funds at regular intervals over a long period – whether market prices are up or down. Investors practising dollar-cost averaging...

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Monetary Policy Decision – Statement by Philip Lowe, RBA Governor, June 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The global economy has strengthened over the past year. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. The Chinese economy continues to grow solidly, with the authorities paying increased attention to the risks in the financial sector and the sustainability of growth. Globally, inflation remains low, although it has increased in some economies and...

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Get ready for June 30 – NOW!

When it comes to getting the most (money) from your annual tax return, there is usually a lot to think about, so we’ve identified a few options that could open the door to some opportunities to save on tax. The key here is to plan ahead. Deductions — lower your tax liability Pay now for some of next year's expenses If you have some spare cash available, paying for certain expenses before June 30 could mean you get your tax break back from the ATO earlier. Expenses paid in July could...

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