John Cameron's personal blog

Serious discussion about your financial position now - and in the future.

LIFE STAGES SUPER – SOUNDS GOOD BUT DOESN’T STACK UP

There are a number of super funds built on the concept of “life stages”.

This means that the fund is heavily invested in growth assets such as shares and property when you are in your younger age. As you get closer to retirement, the mix of investments changes, and shifts more towards low volatility and low yielding things such as cash and fixed interest funds. Hence, the fund balance changes as you go through different life stages.

- There is a superficial appeal to this approach.

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HOW LOW CAN THEY GO?


We have the lowest interest rates in our history, and the Reserve Bank warns that we are in for a prolonged period of low rates.

But just how low can they go?

Well, there are trillions of dollars world-wide that is currently subject to NEGATIVE rates. That’s right, NEGATIVE interest rates.

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Cancelled insurance – a case of good intentions gone horribly wrong

Imagine the following. You know a young couple with a family, a mortgage, and all the other commitments that go with modern family life.

Then, tragically, one day one of the parents is killed.

When the survivor gets him or herself back together after a few days, the survivor contacts their insurance company, to lodge a claim, only to be told that their insurance has been cancelled because of changed government laws.

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Beware The Weird Phone Call

At last, I’ve made it. Here I am battling away for years and then, all of a sudden I get the phone call out of the blue. It reminds me of that old show business saying: “After 20 years of slugging away, all of a sudden I am an overnight success.”

I’m sure the callers must have picked me out for special attention, based on some achievement that I can’t quite identify. Surely they wouldn’t call just anybody. Would they?

Enough of the levity.

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5 Superannuation Myths Debunked!

Anybody following the Hayne Royal Commission could be excused for thinking our superannuation system is broken. It is not – although parts of it need serious repair.

An excellent article in the Australian Financial Review of 18-19 August, addressed and dispelled a number of myths surrounding the superannuation system.

The author of the Chanticleer column identified the following myths:

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