When interest rates go up, Bond prices go down

Picture of an arrow pointing down the road.

When interest rates go up, bond prices come down. The value of your everyday savings goes up, therefore the fixed interest bonds that you once had paying X% interest rate is now worth less than before. Bond traders now have more incentive to sell out of the old bonds and put their money into newer […]

How much Financial Advice Fees should I pay?

Parking meter collecting fees.

If you don’t have much money and your questions are simple, then you should first look to the free resources on Google. But what is simple? Budgeting, Investments, Tax, Life Planning and Insurance can all have a “simple” side to it, but what do you need? Taking the above example, Budgeting may be simple but […]

What if I cant get insurance?

People helping injured at an accident that might benefit from having insurance.

Often, people who ask me to get life insurance are those who have a hard time getting it due to pre-existing health conditions. If they don’t have existing insurance (inside or outside superannuation), workcover then all they have left is health insurance but this is in no way the same as income protection or life […]

What type of Share Trading Account should I use?

Share trading chart from online broker - picture from Pixabay PIX1861

There are 2 types of Share Trading Accounts: 1) CHESS Sponsored like CommSec or 2) Custodial like eToro. The main considerations come down to 1) Ownership, 2) Cost, 3) Trading Size, 4) Investment Menu, 5) Charting software. Morningstar wrote a public article on this “CHESS or custodian” Wrap accounts are an expanded version of Custodial […]

Investment Income Rates of Return 11.09.23

Investment Income Rates of Returns

Points of note: Estimated Income Rates @ 11.09.23 Risk Category Investment / Fund Estimated Income Rate % Payment Frequency Withdrawal / Liquidity Cash Cash 4.5%+ Monthly Daily Cash/Term Deposits TD 3 to 12 month 4.7 – 4.9% Monthly Refer Term Debt / Bonds AAA Government to BBB Corp Bond funds 2.8 – 7.54%+ Monthly 3 […]

2022 Federal Budget Summary

Budget Summary from AFR 26.10.22 -New parents – parental leave up from 20-26 weeks by 2026 -Families – childcare subsidies up July next year -Medicine users – maximum co-payment down from $42.5 – $30 a script from Jan over 4 years -Electric car buyers – exempted from taxes if retail price below luxury car tax […]

Life Insurance Premiums 20.10.2022

The below premiums are sourced from over 10 major insurance companies (excluding TV advertised policies and superannuation policies). Not all policies have the same terms, so advice is generally best.

US Sharemarket Index 13/10/22

Below is a 1 year and 5-year chart of the broad US sharemarket. Is it time to buy? I don’t know how much further it could go down, but things are looking cheaper, and if you don’t mind putting some money at risk, it might be time to start thinking about it. Disclaimer – Don’t […]

Check your insurance policy covers your sport

Starting a new sport is fun. Some insurance policies will cover you for that sport, some won’t. Better to ask before you start – financial adviser/ insurance broker/ insurance company / superannuation fund.

Educational note on BHP/RIO Shares 12/9/22

*Not financial advice* BHP-Dividends paid 06/2022 year: 11.2% plus 100% franking-Current price 39.41 (1 year low 35.56, 1 year high 53.72)-Businesses – Copper/Iron Ore/Nickel/Metallurgical Coal/Potash RIO-Dividends paid 12/2021 year: RIO 9.4% plus 100% franking-Current price 93.04 (1 year low 87.28, 1 year high 128.55)-Price-Businesses – Copper/Iron Ore/Aluminium/Diamonds/Coal/Salt/ Titanium dioxide/Uranium/Borates Risks-Share price volatility (50% drop to […]