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Time Value Of Money

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We have trouble understanding the time value of money

We overvalue the present and underestimate the future - it’s a cognitive glitch called hyperbolic discounting. It affects savings, spending, and loans, and it's more common - and costly - than we think. 

Einstein's relativity theory and finance

Over 100 years ago, Albert Einstein published papers explaining his Theory of Relativity, which revolutionised physics and the world. Here are some musings on possible parallels between Einstein's theory and the world of finance.

What to do about our distorted relationship with money

We’re in a rare moment in history where the term premium has been negative for a number of years.  History suggests that won't last, and here are the best ways to position your portfolio to benefit from the change.

A one-page introduction to investing

Faced with confusing complexity which often fails to improve investment outcomes, a former managing director set himself the task of writing a one-page introduction to investing for his 18-year-old grandkids.

20k now or 50k later? What’s driving decisions to withdraw super?

The amount of retirement savings withdrawn under the Superannuation Early Release Scheme has surprised many. This comprehensive survey of thousands of Cbus members explains their motivations.

Depression or recovery? The risk of time

It is always easier to see the challenges and risks while underestimating ingenuity and positive possibilities. It's likely to be the case this time, too, as long as we move quickly to open economies.

Do investment principles stand test of time?

A comparison of superannuation investment strategy outcomes over two decades for three types of investors: a baby, a 20-year-old and a 40-year-old, shows the benefits of time and the value of compounding.

Dear friends, colleagues and fellow rockers

The affordability of seeing a movie, or cost of driving to the movie theatre, has not changed much over the 32 year period from 1981 to 2013. But the same cannot be said for ticket prices of concerts featuring aging rockers.

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How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Meg on SMSFs: Last word on Div 296 for a while

The best way to deal with the incoming Division 296 tax on superannuation is likely doing nothing. Earnings will be taxed regardless of where the money sits, so here are some important considerations.

The 5% deposit scheme is bad for homeowners and Australia

An ‘affordability’ scheme making the county more vulnerable to economic shocks and contributing to the deteriorating financial situation of everyday Australians.

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