Innholdsfortegnelse for August 2019 i Money Magazine

The beauty of $10,000 is in the eye of the beholder. We find out in our cover story this month, “Where to invest $10k”, that everything is so expensive these days the amount doesn’t seem like much. But we canvassed the views of eight finance experts and discovered there are ways to turn $10,000 into a princely sum. It’s not the size of the windfall but the intention to invest it wisely. Find out more on page 34. If you’ve got a sizeable property portfolio or are looking to buy one, you must be unnerved by the scandals surrounding the Opal and Mascot towers in Sydney. As we go to press, I read reports about a block of units in Zetland, another inner-city suburb in Sydney, that’s been abandoned for…

JOANNA MCCREERY Joanna is a director of Majella Wealth Advisers. Joanna says: “I like to support my local small businesses (I’d hate for a time to come when the big grocery chains are all we have), so when I’m topping up my weekly grocery needs in the local bakery and fruit and veg shop, I pay cash. They prefer it, as it helps their margins.” SUSAN HELY Susan is a senior writer at Money magazine. Susan says: “I like to tap and pay but panic if I don’t have cash in my wallet. I pay cash at the markets when I buy fruit, veggies and plants. Parking meters prefer cash as do the sellers of The Big Issue.” DARREN SNYDER Darren is the managing editor of Money magazine. Darren says:…

Investors focused on short-term performance will be disappointed with the performance of the Australian shares long/short sector. However, we believe it is very difficult to produce superior investment outcomes without periods of short-term underperformance. To illustrate our contention, we ran a simulation that invested $130 “long” in the 10 best-performing Australian stocks over the five years between March 31, 2014 and March 31, 2019 and $30 “short” in the bottom 10 performing stocks. This simulated portfolio would have generated a return of 51.6%pa – smashing the index return of 7.4%pa. Despite this excellent long-term result, the simulated portfolio that we built with perfect foresight still experienced several periods of capital drawdown that were more severe than the index. We believe that similarities can be drawn between the performance of the…

20 MUST ASK QUESTIONS FOR EVERY PROPERTY INVESTOR by Margaret Lomas (Major Street Publishing, $29.95) This revised edition of a 2008 bestseller provides an invaluable checklist for property investors to make the best purchases for their circumstances. It covers key points such as location, the investor’s risk profile, how to secure finance, how much you should pay, whether it will be easy to rent out, and more. Margaret Lomas is the founder and director of Destiny Financial Solutions, which assists property investors across Australia. She is one of the country’s most recognised and respected experts, and the author of nine property investment books, which collectively have sold more than 100,000 copies. Ten readers can win a copy. In 25 words or less, tell us your best property investment tip. Enter…

Fixed-rate home loans have accounted for more than 21.8% of all home loans written over the past 12 months at Mortgage Choice. The mortgage broker’s chief executive, Susan Mitchell, says this an increase in demand and is hardly surprising given the conditions in the current market. “Lenders on our panel have been aggressively discounting fixed-rate home loan products, which has been effective in enticing more borrowers to commit to a fixed term,” she says. “With rates as low as 3.49%pa, it’s unsurprising to see an increasing proportion of borrowers choosing to fix.” The data also revealed that during May 2019 fixed-rate demand was highest in Queensland, where 26% of borrowers opted for this type of home loan. It was followed by Western Australia (25%), while borrowers in Victoria were the…

WHERE I WOULD INVEST $10k This should be an easy question to answer for a financial adviser. I spend my days advising people where to invest their money. When a client calls to say they got an extra $10,000 as a bonus this year, I can easily advise them what to do with it. It all comes back to knowing your financial goals and priorities. If you have goals, they are much more likely to be achieved than if you haven't identified them. If your current priority is paying down your home loan, then that’s where most or maybe all of this money should go. If your home loan and other short-term savings goals are under control, then look to your longer-term goals, such as building your super. If you…

• • What What is are your your current financial financial goals as situation a couple ? What ? are your income, expenses, assets, debts and credit rating? Where do you see opportunities to reduce debt and save for your goals? • What are your attitudes to spending and saving? Understanding how your partner views money will make it easier to form a financial plan that suits you both. • Who will handle the finances? Will one partner take control overall? Will you split areas of responsibility? Or will you make joint decisions? Make sure you’re both happy with the decision and understand what is happening. SOURCE: Moneysmart.gov.au…

1. Avoid decision-making in highly emotional contexts. Emotion clouds our ability to access our rational decision-making and leads to all sorts of illogical behaviours. 2. What would you advise someone else? Changing your mindset to imagine yourself as the external player is a quick and easy way to check your decision-making in the moment and mute any irrational logic. 3. Research. Arm yourself with as much knowledge as you can, particularly if it requires you to do something that you have little experience in. 4. Practise being present. This helps mitigate the effects of emotion and sunk cost bias. Practise making decisions based on current context and information, irrespective of what has happened in the past. 5. Be OK with missing out. The world will not stop turning – life…

Logistic co-ordinator Saira Allen, 32, is expecting her second baby this month. She’s hugely relieved that she set up her insurance properly before starting a family. Before seeing certified financial planner Adele Martin, at Firefly Wealth, Saira had no idea how complex insurance could be for women taking time off work. “One of my best friends was diagnosed with breast cancer just after I started seeing Adele, so for me it was a realisation that anyone can get sick and that life is not guaranteed.” “I knew my super wasn’t well set up because I had three different accounts from three different jobs. I had paid no attention to it. One fund had only a few hundred dollars in it because it basically got drained by fees.” Martin recommended death…

IS THAT LIKELY? Yes, politicians have been fiddling with the compulsory super rate since Paul Keating introduced the superannuation guarantee at 3% in 1992, with talk it would eventually rise to 15%. One of the federal government’s first decisions after winning the May election was to undertake a detailed review of the retirement system. Yes, another one. The Productivity Commission had recommended the review in December when it released a report on super efficiency and competitiveness, claiming members could benefit by around $3.8 billion a year by addressing the problems of multiple accounts and underperforming funds. The problem is that this has also led to calls for the promised increase in compulsory super to be further delayed until after this review. Given that it is also likely to look at…

If you would like to vote but don’t own any direct shares, check to see what your superannuation fund does with its Australian and global shares. Some large super funds, such as HESTA, actively vote on a range of issues and report back to members in detail. For example, HESTA voted on 1405 resolutions at 273 company meetings in 2018. HESTA and other super funds employ specialist proxy adviser firms, such as ACSI, to dig deep with companies. They also employ other ESG specialists: Regnan for Australian shares; Hermes EOS for international shares and; WDI, which specifically looks at how the top 500 global companies manage workers in their direct operations and supply chains. HESTA takes a stand on companies’ independence, board diversity, executive pay, voting rights of shareholders, appointment…

Retail sales are starting to reflect the tougher employment and income conditions in the construction sector. The Reserve Bank’s rate cuts, federal tax cuts and APRA’s removal of the 7% floor on the mortgage serviceability test will now need to have an immediate impact on spending if it is to offset the 30%-50% decline in residential construction expected to occur over the next six to nine months. The early signs are positive, with auction clearance rates up significantly, compared with the same time last year, in the major capitals. But if a broader consumer response suffers any delay, it is likely the current optimism will reflect a post-election honeymoon rather than enduring improvement. Sell-side analysts are broadly optimistic, as is common, which means the market might be negatively surprised by…

Jumping on the bandwagon July’s edition highlights the ASX200 breaking through the 30% barrier for women on boards (page 13). So what? Is that some sort of benchmark? Is that good enough, not enough or too much? What is the “barrier”? I would like to see solid facts on whether or not having more or fewer women and/or men is a determinant of the success of ASX200 boards? It might help to explore the impact that factors like education, experience, age, ethnic background, economic conditions, marketing and maybe even just pure luck have made a difference to board and company performance. Headline-grabbing stats such as those under your “30%” banner tend to fuel zealots pushing their own bandwagons ... and that isn’t always the best way forward. Ron Ed’s note:…

Wow. Just look at interest rates. Over my nearly four decades commenting on money, I’ve said a lot about interest rates. But I am sure I have never mentioned our “base” rate set by the Reserve Bank going below 1%. Now, though, that looks pretty much like a certainty. Like you, I read and hear many experts banging on about interest rates and what we should do with our loans and investments, but I am not too sure any of us really have a clue what is going on. My guess, a few years ago, was that our base interest rate was unlikely to drop below 3%. Wrong! My view was based on our fortunate position as an exporter of badly needed products – food, resources and high-level services such…

A new entrant to Australia’s non-bank lending market, Ebury is offering trade finance for unsecured payables and receivables with line sizes of up to $5 million per client. It has traditionally focused on SMEs that trade internationally. Ebury offered foreign exchange services in Australia before its latest expansion. Kogan.com will now offer power and gas services to Australian households under its new brand, Kogan Energy. The brand expects to launch before December 31, 2019, and plans to make “these essential services more affordable through digital efficiency”, reducing the cost. The offering involves Kogan entering a multi-year agreement with Powershop Australia, a part of Meridian Energy – a renewable energy generator. A moratorium allowing Australians to get up to $500,000 of life insurance without disclosing an adverse genetic test result came…

Australia is blessed with free public toilets. And, hey, there’s always Macca’s if you’re desperate. But that’s not the case elsewhere. In Europe, public loos are often a user-pays affair. When nature calls you could face over-the-top ATM fees just to be flush with cash. In the US, plenty of fast food outlets only offer their washrooms to paying customers. No matter whether you’re in Oz or overseas, the Flush app reveals the location of the nearest public convenience from 190,000 rest rooms around the world. The app uses your phone’s GPS to pinpoint your location, then directs you to the nearest public toilet. You can even check if the facilities have disabled access, require a code or are for customers only. It can be the key to maintaining your…

It is great that you already own four properties at such a young age and are keen to continue to build your portfolio. However, before you buy your next property, let’s consider the questions you have asked, as this will provide some critical background information. Where will house prices be in 12 months? They will be higher than they are today for a number of reasons. There is less uncertainty in the economy as the federal election is over; banks have been asked to drop their benchmark assessment rates, so it will be easier to get a loan; interest rates have been cut for the first time in many years; and there is a federal government first home buyer incentive due to start on January 1, 2020. All of this…

WHERE I WOULD INVEST $10k Today’s market is characterised by volatility between the US and China, a slowdown in Europe and over-reliance on central banks. In this type of environment, interest rates are going lower and lower, both globally and locally. Unfortunately, this means it can be hard to make $10,000 work hard for you. I would firstly suggest using the money to pay off any debt or, if you have one, putting money in an offset account to reduce your mortgage payment and tax. If this isn’t right for you, my next suggestion is to consider bonds. I think bonds are a forgotten, or at least poorly understood, asset class in Australia. For the most part local investors only consider equities, property or term deposits. However, bonds are a…

WHERE I WOULD INVEST $10k As an economist you have a lot of information and therefore a lot to worry about. Personally I’m a risk-averse and long-term investor so I’d invest a $10,000 windfall into my super. In the first instance, for many people this can be more tax effective than investing from net income. Second, it is professionally managed so someone else does the worrying while working to maximise returns at an acceptable level of risk (that the investor can decide on). Third, and most importantly, it provides access to a much broader range of asset classes that are otherwise difficult and expensive for a retail investor to access. This includes traditional financial markets outside Australia where a retail investor has less visibility, as well as a diverse range…

The bank of mum and dad is under threat. Ranked as one of the top 10 lenders in Australia, based on figures from the regulator APRA, reliance on the bank of mum and dad (BOMAD) became widespread for first home buyers in a rising market. A year ago as many as 60% of first home buyers were getting help from their parents, according to Martin North, founding principal of Digital Finance Analytics. His research revealed that this equated to 22,000 first home buyers. But this rate has since plummeted to 20%. Over the same time, the average amount that parents cough up to help their kids dipped from $88,000 to $75,000. The bank of mum and dad faces tougher prudential controls amid concerns that careless lending could endanger not only…

Australia’s sharing or peer-to-peer economy is projected to grow to a whopping $55 billion by 2021, according to a 2017 report by the lending platform RateSetter. Comparison site Canstar says this growth represents a nearly fourfold increase in five years, with Aussies even earning a quid or two from other people’s clutter thanks to self-storage marketplaces such as Spacer. What is Spacer? Spacer enables people to create an income from their surplus space, whether it’s a bedroom, a cavernous basement, an underground storage cage or an empty garage. Spacer then connects people who have spare capacity with those who need to store some extra boxes a car or other flotsam. According to Spacer, over 100,000 Aussies earn up to $4200 a year from leasing spare space. As a rough guide,…

It’s a good time for Australian real estate investors – many of whom are obsessed with the local housing market – to consider diversifying some of their funds into global real estate. The launch on the ASX earlier this year of a second exchange traded fund (ETF) concentrating on world property has helped make this a relatively easy strategy to pursue. It’s also very affordable, as you need only $500 to buy into an ETF. As well, there are over 60 managed funds in the category to choose from, according to research from Morningstar, and the top three achieved one-year returns of more than 20% in the year to May 31. Many sharemarket investors have embraced the importance of including offshore shares in their portfolios given the local market accounts…

People approaching retirement are urged to pack as much money into super as they possibly can. Once retired, the argument goes, you will have missed the boat and no longer be eligible to take advantage of super’s generous tax benefits. But the reality is you can have a significant amount of money outside super and still enjoy tax-free earnings. Thanks to the tax-free threshold and the seniors and pensioners tax offset (SAPTO), singles can earn up to $32,279 a year tax free while a couple can earn up to $28,974 each, or $57,948pa combined. “You could have a million bucks outside of super and not pay tax on earnings,” says Colin Lewis, head of strategy at Fitzpatricks Private Wealth. “That’s why I always say you don’t have to have every…

You’re purchasing a new car, mobile phone or appliance and the sales assistant offers you an extended warranty. The idea that you’ll get extra protection for a longer period of time sounds good in theory, but how much should you pay and is it worthwhile? The Australian Competition and Consumer Commission (ACCC) says an extended warranty is “where you choose to pay extra to extend a manufacturer’s warranty for a set period of time”. It also says a manufacturer’s warranty is a warranty against defects and “explains when you are entitled to a repair, replacement, refund or something else”. Retailers can sell extended warranties that not only increase the manufacturer’s warranty but offer extra benefits. On the flipside, consumers should watch for extended warranties that offer less than the manufacturer’s…

Investors who pool their votes can unseat a company board over executive remuneration through the two-strikes rule. If more than 25% of investors vote against a company’s proposed remuneration report at consecutive annual meetings, then the entire board faces a spill motion. The rule was set up in 2011 after a Productivity Commission inquiry into executive remuneration. It seems to be working because boards are taking notice after receiving their first strike. For example, AMP chairman David Murray took notice and axed executive bonuses, cut director’s fees and clawed back bonuses. Shareholders made 19 strikes about remuneration in 2018, up from six in 2017, according to Egan Associates, a business management consultancy. National Australia Bank scored a record first strike of 88% against, Westpac 64%, Mineral Resources 63%, Karoon Gas…

The past financial year has been a roller-coaster ride for investors. Sharemarkets plunged into Christmas on trade war, Fed and growth fears only to then rebound as inflation fell and central banks moved towards easing, resulting in pretty good returns for investors from most asset classes except cash. First the bad news • President Trump’s trade wars are adversely affecting business confidence and investment. • Global growth indicators are well down from their highs at the start of last year. • The risk of conflict with Iran has escalated. As roughly 20% of global oil demand flows through the Strait of Hormuz, its disruption would threaten sharply higher oil prices. • US political risk is likely to ramp up with the debt ceiling needing to be increased around September and…

YES The answer to this question is the same as for any potential investment: the normal rules of business and investing apply – with no exceptions. Investors need to consider management’s track record, business plan, competitive positioning, operating costs, supply chain, regulatory environment and relative valuations with the peer group. The difference with cannabis is the enormous publicity it is gaining and the investment community’s relatively low level of understanding of the sector. The analogy with the removal of alcohol prohibition in the US in 1933 is resulting in over-exuberance, with expectations that billions of dollars of value will be created as the global cannabis industry continues to be legalised and expands. Sure, billions of dollars of value will be created but that doesn’t mean all companies will be successful.…

YOUR GUIDE TO SUPER DATA The table on this page contains data and information to help you compare superannuation funds. It showcases MySuper investment options offered by some of Australia’s biggest super funds. MySuper options are default superannuation products that employees choose or are allocated by their employers. The performance results displayed are the annualised investment returns each MySuper option has delivered after taking account of all taxes and fees. Past performance is no indicator of future performance. The table also lists each fund’s SelectingSuper Fund Quality Rating. Funds that achieve these quality standards are designated AAA. Research was prepared by Rainmaker Information, which publishes Money magazine. For more info, see www.selectingsuper.com.au. YOUR GUIDE TO MANAGED FUNDS DATA The tables on these pages contain data and information to…

Performance after investment fees. Investment returns after investment fees annualised to describe each fund’s returns per annum. But if your managed fund achieves a high return and charges you an extra “performance fee”, Rainmaker has not taken this into account. Past performance is not an indicator of future performance. Rank. Funds are ranked against all managed funds in each segment, not just those included in each table. Indices and averages. Arithmetic average investment returns or average fees for all fund investment options within each category, that is, not fund size weighted.…

It’s time to ditch the big four banks I can’t understand why so many customers stay with the big four banks, especially after the shocking revelations from the banking royal commission last year. There are some great alternative institutions to bank with, such as credit unions and customer-owned banks. My husband and I made the change more than 20 years ago, and find the fees at our customer-owned bank are much lower. It offers much better interest rates on savings accounts and term deposits, and much more competitive home loans as well. It even rewards loyalty, such as an extra 0.2% interest on term deposits for long-term customers, which is a great help in the current low-interest environment. I would like to strongly encourage Money readers who bank with one…

Regulator ASIC is warning car insurers they can do better when it comes to investigating consumer claims. An ASIC review of 1.6 million car insurance claims in the 12 months to September 2017 and interviews with more than 50 consumers suggest insurers are investigating claims in ways that are causing “significant consumer harm” and eroding trust in the process. According to consumers, car insurers are putting them through “harmful and unreasonable” processes when investigating claims. The corporate watchdog found that when insurers suspect claims are fraudulent, the investigation practices lead to poor consumer outcomes. While only a small proportion of claims are investigated, more than 70% of the investigated claims are found to be valid and then paid. This contrasts with a small number of investigated claims being declined due…

Investment types: Most funds invest in a mix of cash, fixed interest, property and shares. When you diversify you reduce the overall risk, minimising potential losses. Also consider include how much money you need for retirement and how many years you have to invest. Performance: Small differences in the rate of return earned by your super can have a significant impact on retirement savings. It’s impossible to predict performance, there’s no guarantee a fund that performed well in the past will continue to do so. Insurance: Most funds include life insurance and many add total and permanent disability (TPD) or income protection. When considering a fund, check whether the cover is enough or if there’s an option to increase. Portability: Most funds give you the option to switch to another…

With tax time now upon us, the tax office has launched its usual blitz of announcements on the types of business activities and deductions it will focus on in the new tax year. At the top of the list are rental property deductions, with the ATO claiming that in a sample of audited taxpayers 90% of tax returns were incorrect. The number of people who own a second home – either for rental or for their own use – has exploded in recent years and the ATO is concerned that those entitled to deductions are over-claiming while others are claiming deductions to which they are not entitled. The classic example of the latter is owners who use their holiday home for personal use rather than renting it out. Rental property…

The Reserve Bank’s recent decision to cut the official cash rate is influencing the investment strategy of a sizeable portion of investors linked with peer-to-peer (P2P) lending platform RateSetter. In its latest survey of 328 customers, RateSetter says 67% of respondents were withdrawing bank savings to fund their P2P investments. About a fifth (19%) said their investment strategy was directly influenced by the RBA cut. Chief executive Daniel Foggo says P2P lending can offer a healthy middle ground for cautious investors who want more out of their money (see table). “Everyday Australian investors no longer have to expose their hard-earned wealth to volatile or hard-to-access investments such as equities or high-yield bonds in order to access stable, attractive returns,” says Foggo. “Cash accounts are for saving, not for investing. Consumers…

Dylan, you have clearly worked hard to build and improve your property portfolio. Your questions show thoughtful consideration of how best to use your surplus cash flow and what the potential risks may be. You’re right to consider diversification. Not having all your eggs in one basket reduces the risk that a downturn in the Albury market, an increase in new houses/units being built or the departure of a major employer negatively impacts your financial plan. But buying property outside Albury does not diversify your wealth across other asset classes, such as shares or bonds. It also means buying into a market that you perhaps don’t know, can’t keep an eye on and can’t add the same value to. Also consider liquidity. Properties are big assets that take time to…

WHERE I WOULD INVEST $10k The biggest mistakes made by property investors include a refusal to spend money on professional help. A typical investor will spend $500,000 on a property but won’t invest $5000 on good advice or $500 on an independent valuation to ensure the price is right, or even $50 on a research report to justify their choice of location. It’s the worst kind of false economy. But the standout characteristic of truly successful investors (and they’re quite rare) is their willingness to spend on skilled advisers. So that’s where my $10,000 would go. This relatively small sum won’t propel me into my next property but it can be well spent on specialists who can help make it happen. I have the expertise to do the legwork myself,…

It’s not a lifechanger but a windfall of $10,000 is a nice starter package. High on my list would be giving my 19-year-old-son a kickstart. He could set up an account with, say, an exchange traded fund. He’s studying Asian and international security and this would give him a financial taste of the region that is our backyard and where he’ll most likely make his career. After all, the best thing we can do for young people is to help them appreciate how money moves through their lives. Teaching them how to take financial control is one of the best life lessons we can impart. A $10,000 windfall could also be the perfect opportunity to clean up your finances. Despite record low interest rates, credit cards can still charge up…

My friends and I are big U2 fans. When it was announced recently the band would tour Australia there was no way we were going to miss them. The day tickets went on sale we sat in front of our computers eagerly waiting for the site to go live. We had every device we owned connected over different networks, refreshing the home page every couple of seconds. We were leaving nothing to chance. Then the site went live and the mayhem started. Minutes went by but the site was so overwhelmed we had trouble getting through. With every passing second, our anxiety increased as the possibility that we’d miss out began to creep into our thoughts. Then one of my friends yelled “I’m in!”. We watched as she glided through…

• The global self-storage market was valued at $53 billion in 2018 and is expected to reach a value of $70 billion by 2024, according to Mordor Intelligence, a researcher and consultant. • A spare bedroom can earn about $150-$200 a month and an average shed can earn about $100-$150. • Spacer claims renters can save up to 50% using its platform compared with the traditional self-storage options – but be sure to do your research first to ensure peer-to-peer storage is cheaper. • Competing self-storage businesses include CubeSmart, Spacelli and Kennards.…

This is an edited extract from A Surfer’s Guide to Property Investing by Paul Glossop (Major Street Publishing, RRP $29.95), available nationally. Paul is a professional property investor, a qualified property investment adviser and buyers agent. For your chance to win a copy, tell us in 25 words or less how you entered the property market. Enter online at moneymag.com.au/win or send your entry to Money magazine, Level 7, 55 Clarence Street, Sydney, NSW 2000. Entries open July 29, 2019 and close on September 4, 2019.…

In October 2014, the then Abbott government announced its industry innovation and competitiveness agenda. It was an action plan to build a stronger Australia against a backdrop of 23 years of economic growth – a plan that would be challenged by falling commodity prices, increased government borrowing, an ageing population and flat productivity. In its first few pages, the agenda states that by 2050 more than half the world’s economic output will be from the Asia-Pacific region. It says Australian businesses will have increasing opportunities to access distant markets, global value chains, skilled labour and investor capital. “Large businesses will have more opportunities to scale up for a world market and small businesses will be able to find niche markets for their products overseas,” says the agenda. Learn the language…

I have four kids. Three are now driving, which means that in the past five years we have gone from a ratio of two taxi drivers being taken for granted by four passengers to five taxi drivers and one passenger. While that has been a huge burden off our taxi-driving duties, it is also sad because I have lost this precious time in the “cone of the car” with my three eldest. Taxi driving your kids a couple of nights a week, picking them up from sports or dropping them off at parties was never a burden for me. I saw it as a priceless opportunity to talk to them about life and a golden moment to pass on values and experiences and deliver some small parental legacy, to bond…

Last month we looked at the burgeoning ASX technology sector. And I asked, “Is there anything hotter than tech at the moment?” This month it’s not a rhetorical question. And yes, there is. It’s not hotter than tech, per se, though – it’s the hottest part of the hottest sector: fintech. Fintech – financial technology companies, to explode the portmanteau – are the new black. Everyone is either starting one, investing in one or wishing they’d done so. The sector’s poster child, Afterpay Touch (ASX: APT), went from being worth just over $600 million in 2016 to a hefty $6.8 billion at the end of last financial year. And if you think that’s hefty, try comparing that number to just shy of $160 million in rolling annual sales as of…

Performance after fees: When calculating fees, Rainmaker assumes a member has $50,000 in their account. Strategy: Some MySuper products invest your superannuation based on age and are known as lifecycle funds (marked LC). The table includes the LC option for 40-year-old members. Non lifecycle funds are known as single strategy (S). Rank: Funds are ranked against all MySuper investment options available in Australia. Indices and averages: To produce these indices, Rainmaker analyses the results of more than 3300 investment options.…

What was your first job? At 14 years and seven months, the first day I could legally work, I got a job at Hungry Jack’s Carindale in Brisbane. My job paid for school books and a little something left over for clothes shopping. What’s the best money advice you’ve received? Not quite advice, but when superannuation started in Australia in 1992 and I started working as a lawyer in 1993, human resources asked me if I wanted to contribute to my super. I literally had no idea what that meant but said, “Uh, yeah, sure, how about $25 a week?” Fast-forward 20 years and I have the type of super balance that is the envy of many. What’s the best investment decision you’ve made? Education by a mile. I put…