Balancing tax-deductible and non-deductible loans, or ‘recycling debt’, is an easier way to pay off a mortgage and build an investment portfolio.
‘Debt recycling’, involves taking on some investment debt while at the same time repaying your mortgage, a non-tax-deductible debt.
To see how it all fits together, let’s consider a 40 year-old with a $200,000 mortgage on their house. They have $20,000 a year of surplus cash flow, which has arisen due to a bonus being paid by their employer.
As a business owner, have you thought about the possible consequences to your business and your family if something were to happen to you or to one of your partners? Find out why the combination of key man insurance and buy-sell agreements can protect the interests of everyone involved.
Protect Your Investment
The Australian share market continued its directionless trend in August, giving back some of its July gains.
The All Ordinaries Index fell 1.5% during the month to close at 4,438.8 points. Global markets were also generally poor across the board in August.
The Dow Jones Index closed down 4.3%, the FTSE down 0.6%, the Nikkei 225 down 7.5% and the Hang Seng down 2.3% for the month.
Money gives people -- both young and old -- decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend.
Everyday spending decisions can have a far more negative impact on children's financial futures than any investment decisions they may ever make. Here are 15 simple ways to help educate children about personal finance and managing money.
The government recently passed legislation enabling paid parental leave for the first time in Australia’s history. With an election looming, paid parental leave has become a key election issue. This article compares both Labor’s and Liberal’s paid parental leave polices.
Labor's Policy
The passing by the Labor government of a paid parental leave scheme was seen by many as a win for those thinking of starting a family. This policy is now law, and comes into effect on 1 January next year.
It's a natural desire to want to protect your child from harm and keep them healthy. Unfortunately, on average over 65,000 children each year are admitted to hospital. I would guess that for most parents they would have thought "it would never happen to them".
Most parents only have one wish when it comes to the health of their child – "don't worry about cost, make my child better!"
Child Cover insurance has a vital role in the "make my child better" outcome of the lives of sick and injured children.
Insurance is about managing risks so when it comes to insurance, the old adage, 'better safe than sorry' rings true.
Research conducted by ING Australia has found that Australians are overwhelmingly optimistic about their financial future. This optimism is a key driver behind Australia being the most underinsured of any developed country.
Many Australians simply don’t have enough insurance, and some have none at all. It’s a worrying thought when you consider the following statistics:
First Home Saver Accounts can be a simple and tax effective way for Australians to save for their first home through a combination of Government contributions and low taxes.
The government will contribute 17% of the account holder's personal contributions for the financial year. For the 2009/10 financial year, contribution threshold is $5,000 and the government can make a maximum contribution of $850. For the 2010/11 financial year, the threshold goes up to $5,500 and maximum government contribution increases to $935.
Educating your children is a major expense — the sooner you start saving for it the better.
Parents often go faint when they see the cost of school and university fees — just how much depends on the schools and universities they choose. Australian parents spend, on average, $50,000 on education and childcare for each child.
The Australian sharemarket bounced back in July, with the All Ordinaries Index increasing 4.2% to close at 4,507.4 points. Improved confidence and a positive US reporting season drove all markets higher.
The Dow Jones Index closed up 3.2%, the FTSE gained 6.9%, the Nikkei 225 gained 1.6% and the Hang Seng increased 4.5% for the month.