Put that $10,000 to work
If you had a lazy $10,000, where would you invest it? After Best of the Best, our awards edition that comes out in December, this issue would have to be my next favourite. Not only do our regular experts answer some of the most popular questions that our readers keep asking but they let you in on where they’re investing their own cash. And as Sam Henderson points out, the advice they give their clients is not always what they would do themselves. As he says on page 41, “I’m going to go out on a limb and select a more potentially volatile investment, and one I wouldn’t recommend for my clients”. This year a few of them have dialled up the risk, which isn’t surprising given the dismal returns earned on bank accounts.
While cash and fixed interest should play a part in any diversified portfolio (see page 70), record low interest rates and a low growth outlook are making it exceptionally hard for those living on a fixed income. According to data from comparison site Mozo, three out of five savings accounts are now paying ongoing rates under 2%. There are only three providers offering ongoing saving rates of 3% – AMP, RAMS and Australian Unity.
While one should never simply follow someone else’s steps, especially when it comes to investing, this issue is a great way of starting a conversation with yourself. If you’re short on cash then these strategies could easily work just as well with $2000 or so.
If you’re looking for other conversation
starters, Vita Palestrant’s story on the cost of dying (page 42) is sure to give you plenty of material – $20,000 to say goodbye! Surely there are cheaper ways to move on. Greg Hoffman gets you thinking whether you’re a “first-level” or “second-level” thinker. If you want sharemarket success you need to be on that second level. See page 82 to find out if you have the traits.
Don’t forget to check out our Super Booster campaign. Your chance to win one of five $1000 prizes for your super fund closes on September 15. All you have to do is pledge some extra money for your super before then and describe your dream retirement in 25 words or less. See superboosterday.com.au.