Postcode povvos’ are the people that live in places like Balmain and Toorak. They live in trophy suburbs but they don’t have enough money for a coffee. These are the most financially insecure people I meet. They are borrowing too much to get in to one of these suburbs.” It is an inspiring book, well-written with a wonderful sense of purpose, and most importantly imparts practical and easy-to-implement advice, which is what we are after in the first place. First, Vanguard has said they’ll look to lower their fees over time as they grow. I’m inclined to believe them, because that’s what they have a history of doing. They’re actually higher than you state: you left off the investment fee (0.116%) and indirect fees (0.09%).

That all seems fair enough, but I don’t know how little Benny’s braces would apply to any of these. Or maybe he said compounding was one of the greatest wonders of the world. Either way he was a fan. Here’s why. Pape has also hosted and produced the shows Money School and Money Movement for Foxtel. [6] Newspaper column [ edit ] I think this is great news for every Australian – regardless of whether you switch to Vanguard or not.

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This is a really great read. It’s a finance book but just so... altruistic. It’s sure to make a lot of financial planners and bankers mad, with clear explanations of all the ways we’re getting ripped off. It’s also really easy to read and the author clearly has a good understanding of what average Australians are like, based on the thousands of people he’s talked to about their finances. I also like that it applies to almost anyone who has a job, from teenagers to those about to retire. The key to building long-term wealth is to spread your money around: property and shares (through super). Invest for your kids or grandkids, by starting early and adding small amounts regularly, compound interest can give them a great head start in life when they're ready to be financially responsible. However, what most Australians are really worried about – and what the media have jumped on – is whether this move by the Government is the ‘thin edge of the wedge’.

Still, that’s how most of our biggest super funds roll: they throw everyone – young and old – into a one-size-fits-all investment pot. Pape tries to get his readers into the position of the secure middle class, which in these days of insecure, short-term contract work and bloated house prices can be a lot more difficult than it looks. How can ordinary Australians buy a house, take an annual holiday, enjoy treats like going out for dinner, save some super for their (increasingly) old age, have a buffer for tough times and invest when they have some leftover cash? When you see all your worldly possessions burn in front of you, it changes your perspective on ‘stuff’ Scott Pape However, as someone who works in the community sector and has helped women in this very situation, I don’t think accessing 10 grand from super is high on their priority list. The option to invest your money into a high-growth index fund.And no life insurance until you have dependents (cats don’t qualify).

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With house prices at a record high the year the book came out, should young people even try and enter the housing market? “I meet a lot of people in their 60s, 70s and 80s and if you don’t own a home then, life is really tough,” he says. “So: yes. Just get a mortgage that you can manage.” Neil, a suburban accountant, wrote to me saying: “You’re nothing but a government stooge for promoting their tools. You should be ashamed of yourself. You disgust me.” A group called Super Consumers Australia (a partner of CHOICE) has done the research and come up with their own figures — and given me a sneak peek. Regardless, there’s a very good chance your super fund has dumped any Russian assets it was holding. Since the start of the crisis, most funds have written off hundreds of millions of dollars of Russian investments. Yet the only way to be really sure is to call your fund and ask them. Splurge. Set up an automatic transaction so that 10% of your salary goes here, this money is for short term use (think a night out with your partner, a round of drinks for your friends or a small luxury item/service).