Small business finance without the bank

While SMEs account for 97 per cent of Australian businesses, it can still be difficult to make a case to a bank when looking for finance to start a new business or invest in the growth of an existing one. The good news is that applying for commercial finance through a bank is far from the only option. Personal loans A relatively young enterprise that doesn’t have a track record of success may not be looked upon favourably by banks, which make lending decisions based on risk. A lack of…

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There’s more than one way to boost your retirement income

After spending your working life building retirement savings, you may be reluctant to eat into your “nest egg” too quickly. This is understandable, given that we are living longer than previous generations and may need to pay for aged care and health costs later in life. But this cautious approach also means retirees are living more frugally than they need to. This was one of the key messages from the Government’s recent Retirement Income Review, which found most people die with the bulk of the…

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Pool your super into one big account

Keeping all your super in one place is a smart move. In this article, we’ll look at the case to consolidate. Why you should consolidate your super Around 40% of us have more than one super account1 - this is usually a result of starting a new job. In fact, Aussies hold at least $14 billion in ‘lost’ super accounts - money they’ve probably forgotten about. It’s an astonishing amount – the gross domestic product (GDP) of Malta or Mongolia. Around $600 for every man, woman and child in the…

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What exactly is inflation?

By Beatrice Yeo, Economist, Vanguard Australia The Reserve Bank of Australia has recently made an unprecedented change to the way it targets inflation. The bank's mandate is to use monetary policy to keep a lid on price rises and achieve full employment. It does this by targeting an inflation rate of between 2 and 3 per cent a year, on average over the economic cycle. For 27 years, it has done this by looking forward, aiming to set rates based on its forecasts of where inflation might land. In…

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Downsizing in retirement

If you're thinking about selling your home and downsizing, consider the pros and cons. Check if selling your home affects your government benefits. Consider the costs and your needs before you downsize Take time to consider your needs. Make sure your new home suits your lifestyle, budget and level of independence. Some of the costs to consider include: buying and selling in the same market real estate agent fees stamp duty legal fees furniture removal See buying a house for…

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Getting a good balance in 2021

By Tony Kaye, Senior Personal Finance Writer, Vanguard Australia Reviewing the structure of your investment portfolio is an important and ongoing task that should ideally be undertaken at least once a year. Doing so ensures your portfolio asset allocations remain aligned with your tolerance for risk and your broader long-term investment goals. After such a tumultuous year on global financial markets in 2020, the value weightings of your current holdings may be out of kilter with your target…

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