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The biggest faux pas for self-funded retirees

Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked. From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them: <ol> <li>Lack of a plan</li> </ol> Not having a retirement plan is perhaps the most basic faux pas, but often the most costly. A detailed plan should cover things like: <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> Remember: failing to plan = planning to fail. <ol start="2"> <li>Poor planning</li> </ol> Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors. For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working. Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs. Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track. And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options. <ol start="3"> <li>Insecure housing </li> </ol> Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face. Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. <ol start="4"> <li>Unclaimed pensions</li> </ol> Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether. <ol start="5"> <li>Depleted Bank of Mum and Dad</li> </ol> With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation. Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless. Be wise about decisions you make here and don’t let heartstrings cloud your judgement. <ol start="6"> <li>Suffering in silence</li> </ol> Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable. Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life. Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. <ol start="7"> <li>Forgoing professional advice</li> </ol> How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg. Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Retirement Income

Funding for refugees has long been politicized − punitive action against UNRWA and Palestinians fits that pattern

<a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, <a href="https://theconversation.com/institutions/rice-university-931">Rice University</a> At least a dozen countries, including the U.S., have <a href="https://news.un.org/en/story/2024/01/1145987">suspended funding to the UNRWA</a>, the United Nations agency responsible for delivering aid to Palestinian refugees. This follows allegations made by Israel that <a href="https://www.wsj.com/world/middle-east/at-least-12-u-n-agency-employees-involved-in-oct-7-attacks-intelligence-reports-say-a7de8f36">12 UNRWA employees participated</a> in the Oct. 7, 2023, Hamas attack. The UNRWA responded by <a href="https://www.reuters.com/world/middle-east/un-palestinian-refugee-agency-investigates-staff-suspected-role-israel-attacks-2024-01-26/">dismissing all accused employees</a> and opening an investigation. While the seriousness of the accusations is clear to all, and the U.S. has been keen to <a href="https://www.nytimes.com/2024/01/30/us/politics/aid-gaza-israel.html">downplay the significance</a> of its pause in funding, the action is not in keeping with precedent. Western donors did not, for example, defund other U.N. agencies or peacekeeping operations amid accusations of <a href="https://www.hrw.org/news/2020/01/11/un-peacekeeping-has-sexual-abuse-problem">sexual assault</a>, <a href="https://www.justice.gov/usao-sdny/pr/former-un-general-assembly-president-and-five-others-charged-13-million-bribery-scheme">corruption</a> or <a href="https://www.hrw.org/legacy/summaries/s.bosnia9510.html">complicity in war crimes</a>. In real terms, the funding cuts to the UNRWA will affect <a href="https://www.unrwa.org/where-we-work/gaza-strip">1.7 million Palestinian refugees in Gaza</a> along with an additional 400,000 Palestinians without refugee status, many of whom benefit from the UNRWA’s infrastructure. Some critics have gone further and said depriving the agency of funds <a href="https://jacobin.com/2024/01/unrwa-defunding-gaza-israel">amounts to collective punishment</a> against Palestinians. Refugee aid, and humanitarian aid more generally, is theoretically meant to be neutral and impartial. But as experts in <a href="https://www.cambridge.org/core/books/reluctant-reception/558E2A93FF99B8F295347A8FA2053698">migration</a> <a href="https://www.routledge.com/UN-Global-Compacts-Governing-Migrants-and-Refugees/Micinski/p/book/9780367218836">and</a> <a href="https://press.umich.edu/Books/D/Delegating-Responsibility">international relations</a>, we know funding is often used as a foreign policy tool, whereby allies are rewarded and enemies punished. In this context, we believe the cuts in funding for the UNRWA fit a wider pattern of the politicization of aid to refugees, particularly Palestinian refugees. <h2>What is the UNRWA?</h2> The UNRWA, short for the U.N. Relief and Works Agency for Palestine Refugees in the Near East, was established two years after about <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">750,000 Palestinians were expelled or fled from their homes</a> during the months leading up to the creation of the state of Israel in 1948 and the subsequent Arab-Israeli war. Prior to the UNRWA’s creation, international and local organizations, many of them religious, provided services to displaced Palestinians. But after <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">surveying the extreme poverty</a> and dire situation pervasive across refugee camps, the U.N. General Assembly, including all Arab states and Israel, voted to create the UNRWA in 1949. Since that time, <a href="https://www.unrwa.org/what-we-do">the UNRWA has been the primary aid organization</a> providing food, medical care, schooling and, in some cases, housing for the 6 million Palestinians living across its five fields: Jordan, Lebanon, Syria, as well as the areas that make up the occupied Palestinian territories: the West Bank and Gaza Strip. The mass displacement of Palestinians – known as the <a href="https://theconversation.com/the-nakba-at-75-palestinians-struggle-to-get-recognition-for-their-catastrophe-204782">Nakba, or “catastrophe</a>” – occurred prior to the <a href="https://www.unhcr.org/about-unhcr/who-we-are/1951-refugee-convention">1951 Refugee Convention</a>, which defined refugees as anyone with a well-founded fear of persecution owing to “events occurring in Europe before 1 January 1951.” Despite a <a href="https://www.unhcr.org/sites/default/files/legacy-pdf/4ec262df9.pdf">1967 protocol extending the definition</a> worldwide, Palestinians are still excluded from the primary international system protecting refugees. While the UNRWA is responsible for providing services to Palestinian refugees, the United Nations also created the U.N. Conciliation Commission for Palestine in 1948 to seek a <a href="https://www.refworld.org/docid/4fe2e5672.html">long-term political solution</a> and “to facilitate the repatriation, resettlement and economic and social rehabilitation of the refugees and the payment of compensation.” As a result, the UNRWA does not have a mandate to push for the traditional durable solutions available in other refugee situations. As it happened, the conciliation commission was active only for a few years and has since been sidelined in favor of the U.S.-brokered peace processes. <h2>Is the UNRWA political?</h2> The UNRWA has been <a href="https://www.migrationpolicy.org/article/palestinian-refugees-dispossession">subject</a> to political headwinds since its inception and especially during periods of heightened tension between Palestinians and Israelis. While it is a U.N. organization and thus ostensibly apolitical, it has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">frequently been criticized</a> by Palestinians, Israelis as well as donor countries, including the United States, for acting politically. The UNRWA performs statelike functions across its five fields – including education, health and infrastructure – but it is restricted in its mandate from performing political or security activities. Initial Palestinian objections to the UNRWA stemmed from the organization’s early focus on economic integration of refugees into host states. Although the UNRWA officially adhered to the U.N. General Assembly’s <a href="https://www.unrwa.org/content/resolution-194">Resolution 194</a> that called for the return of Palestine refugees to their homes, U.N., U.K. and U.S. <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">officials searched</a> for means by which to resettle and integrate Palestinians into host states, viewing this as the favorable political solution to the Palestinian refugee situation and the broader Israeli-Palestinian conflict. In this sense, Palestinians perceived the UNRWA to be both highly political and actively working against their interests. In later decades, the UNRWA <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">switched its primary focus</a> from jobs to education at the urging of Palestinian refugees. But the UNRWA’s education materials were <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">viewed</a> by Israel as further feeding Palestinian militancy, and the Israeli government insisted on checking and approving all materials in Gaza and the West Bank, which it has occupied since 1967. While Israel has <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">long been suspicious</a> of the UNRWA’s role in refugee camps and in providing education, the organization’s operation, which is internationally funded, <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">also saves</a> Israel millions of dollars each year in services it would be obliged to deliver as the occupying power. Since the 1960s, the U.S. – UNRWA’s primary donor – and other Western countries have <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">repeatedly expressed their desire</a> to use aid to prevent radicalization among refugees. In response to the increased presence of armed opposition groups, the <a href="https://cup.columbia.edu/book/refuge-and-resistance/9780231202855">U.S. attached a provision</a> to its UNRWA aid in 1970, requiring that the “UNRWA take all possible measures to assure that no part of the United States contribution shall be used to furnish assistance to any refugee who is receiving military training as a member of the so-called Palestine Liberation Army (PLA) or any other guerrilla-type organization.” The UNRWA adheres to this requirement, even publishing an annual list of its employees so that host governments can vet them, but it also <a href="https://www.crisisgroup.org/middle-east-north-africa/east-mediterranean-mena/israelpalestine/242-unrwas-reckoning-preserving-un-agency-serving-palestinian-refugees">employs 30,000 individuals</a>, the vast majority of whom are Palestinian. Questions over the links of the UNRWA to any militancy has led to the rise of Israeli and international <a href="https://cufi.org/issue/unrwa-teachers-continue-to-support-antisemitism-terrorism-on-social-media-un-watch/">watch groups</a> that document the social media activity of the organization’s large Palestinian staff. <h2>Repeated cuts in funding</h2> The United States has used its money and power within the U.N. to block criticism of Israel, vetoing at least <a href="https://www.un.org/depts/dhl/resguide/scact_veto_table_en.htm">45 U.N. resolutions</a> critical of Israel. And the latest freeze is not the first time the U.S. has cut funding to the UNRWA or other U.N. agencies in response to issues pertaining to the status of Palestinians. In 2011, the <a href="https://www.reuters.com/article/idUSTRE79U5ED/#:%7E:text=WASHINGTON%20(Reuters)%20%2D%20The%20United,grant%20the%20Palestinians%20full%20membership.">U.S. cut all funding to UNESCO</a>, the U.N. agency that provides educational and cultural programs around the world, after the agency voted to admit the state of Palestine as a full member. The Obama administration defended the move, claiming it was required by a 1990s law to defund any U.N. body that admitted Palestine as a full member. But the impact of the action was nonetheless severe. Within just four years, UNESCO was <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1758-5899.12459">forced to cut its staff in half</a> and roll back its operations. President Donald Trump later <a href="https://www.pbs.org/newshour/politics/u-s-and-israel-officially-withdraw-from-unesco">withdrew the U.S. completely from UNESCO</a>. In 2018, the Trump administration paused its <a href="https://www.nytimes.com/2018/08/31/us/politics/trump-unrwa-palestinians.html">US$60 million contribution to the UNRWA</a>. Trump claimed the pause would create political pressure for Palestinians to negotiate. President Joe Biden restarted U.S. contributions to the UNRWA in 2021. <h2>Politicization of refugee aid</h2> Palestinian are not the only group to suffer from the politicization of refugee funding. After World War II, states established different international organizations to help refugees but strategically excluded some groups from the refugee definition. For example, the U.S. funded the <a href="https://www.nationalww2museum.org/war/articles/last-million-eastern-european-displaced-persons-postwar-germany">U.N. Relief and Rehabilitation Administration to help resettle displaced persons after World War II</a> but resisted Soviet pressure to forcibly repatriate Soviet citizens. The U.S. also created a separate organization, <a href="https://academic.oup.com/ijrl/article-abstract/1/4/501/1598187">the precursor to the International Organization for Migration</a>, to circumvent Soviet influence. In many ways, the UNRWA’s existence and the exclusion of Palestinian refugees from the wider refugee regime parallels this dynamic. Funding for refugees has also been politicized through the earmarking of voluntary contributions to U.N. agencies. Some agencies receive funding from U.N. dues; but the UNRWA, alongside the U.N. High Commissioner for Refugees and the International Organization for Migration, receive the majority of their funding from voluntary contributions from member states. These contributions can be earmarked for specific activities or locations, leading to donors such as the <a href="https://www.peio.me/wp-content/uploads/2019/01/PEIO12_paper_107.pdf">U.S. or European Union dictating which refugees get aid and which do not</a>. Earmarked contributions amounted to nearly <a href="https://unsceb.org/fs-revenue-agency">96% of the UNHCR’s budget, 96% of the IOM’s budget and 74% of UNRWA funding in 2022</a>. As a result, any cuts to UNRWA funding will affect its ability to service Palestinian refugees in Gaza – especially at a time when so many are <a href="https://www.cnn.com/2024/01/30/middleeast/famine-looms-in-gaza-israel-war-intl/index.html">facing hunger, disease and displacement</a> as a result of war.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/222263/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nicholas-r-micinski-207353">Nicholas R. Micinski</a>, Assistant Professor of Political Science and International Affairs, <a href="https://theconversation.com/institutions/university-of-maine-2120">University of Maine</a> and <a href="https://theconversation.com/profiles/kelsey-norman-862895">Kelsey Norman</a>, Fellow for the Middle East, Rice University's Baker Institute for Public Policy, <a href="https://theconversation.com/institutions/rice-university-931">Rice University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/funding-for-refugees-has-long-been-politicized-punitive-action-against-unrwa-and-palestinians-fits-that-pattern-222263">original article</a>.

Money & Banking

Couple who found love in chemotherapy raise funds for final trip

Ainslie Plumb, 22, and Joe Fan, 29, found love in an unexpected place, at the Royal Brisbane and Women’s Hospital. The couple met in 2022 while they were both undergoing leukaemia treatment. “We met at an event for young people with cancer and became friends following that,” Plumb told 7News. “(We) would hang out during our hospital stays, I asked him out in October 2022 and (we) have been together ever since.” While Plumb successfully entered remission, last October, Fan was told that he was now terminal, as doctors had run out of options to treat his Philadelphia chromosome positive acute lymphoblastic leukaemia. With only months left to live, Fan, who has actively given back to the hospital and cancer community by playing his violin for patients and staff and worked with the Queensland Youth Cancer Service, has one final wish - to travel. The couple have set a <a href="https://www.gofundme.com/f/help-joe-live-his-dreams" target="_blank" rel="noopener">GoFundMe</a>, to help raise funds which cover flights, accommodation and specialised travel insurance, for Fan's final trip. “I go through my cancer treatments and observe the toll that takes on my physical and mental wellbeing,” Fan said. “The end of a trip can hopefully mark the start of another — and I have held onto hope, looked forward and dreamed for one more trip, more time, one more experience with that someone I love.” Their first destination will be Taiwan and Hong Kong, where Fan's parents are from and where he spent a majority of his childhood. They also intend to travel to New Zealand and Western Australia to swim with whale sharks at Ningaloo in the state’s north. “We’re aiming at going at the end of February to give us time to co-ordinate with his doctors around his appointments and infusions, which are all booked in advance,” Plumb said. “We recently reached 75 per cent on the fundraiser and are hoping to hit 100 per cent perhaps by the end of January.” As of today, the couple have successfully raised over $21,000 from their $20,000 goal, and have thanked everyone in their community and strangers for their support. “Truly, words do not suffice,” the couple said. Images: 7News

Relationships

How do I find out what my superannuation fund invests in? A finance expert explains

You want your superannuation savings to be invested in things that also serve the planet’s long-term interests. But how can you be sure your fund’s values align with yours – or even its own claims? This question has become increasingly pertinent as demand for environmentally and socially sustainable investments <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-141mr-how-to-avoid-greenwashing-for-superannuation-and-managed-funds/">grows</a> – and with it incentives for financial institutions to put the best spin on their offerings. One consultancy specialising in “responsible investment” reckons <a href="https://thenewdaily.com.au/finance/superannuation/2021/08/16/greenwashing-super-funds/">10% of the funds</a> it has examined do not have the sustainability orientation they claim. Among those <a href="https://www.edo.org.au/2022/08/10/hestas-fossil-fuel-investments-may-amount-to-a-breach-of-the-law/">accused of greenwashing</a> in recent months is one of Australia’s biggest super funds, HESTA (the industry fund for health and community service workers), which has promoting its “clean energy” credentials while still holding shares in fossil-fuel companies <a href="https://www.ai-cio.com/news/australias-hesta-accused-of-greenwashing/">Woodside and Santos</a>. So how can you check what your superannuation fund invests in? Super funds are legally obliged to disclose how they invest your money in two different disclosure documents – a Product Disclosure Statement and a Portfolio Holdings Disclosure. Both will be available on a super fund’s website, though how easily you can find them will vary. The rest of this article is going to explain what information these documents provide, how useful this information is likely to be, and your best bet to ensure your super fund reflects your values. <h2>The Product Disclosure Statement</h2> Product disclosure statements are required by the financial regulator (the Australian Securities and Investments Commission) for all financial products. This document outlines the most basic but important information of an investment product’s features, benefits, risks and costs, including fees and taxes. The format is standardised, with one section (Section 5) covering with “How we invest your money”. The information it contains is broad. At best you’ll learn how the fund splits its investments between safe and riskier assets, and between different asset classes – Australian shares, international shares, property trusts, infrastructure trust, cash and so on. <h2>Portfolio Holding Disclosure</h2> For a comprehensive look at where your money is invested in, you can consider the Portfolio Holdings Disclosure. This document lists a fund’s complete holdings – including the percentage and value of every single company stock held. Portfolio holdings disclosures are relatively new, being obligatory only since March 2022 under <a href="https://www.legislation.gov.au/Details/F2021L01531">legislation</a> meant to improve transparency in the sector. However, super funds aren’t obliged to provide this information in a consistent, easily understandable way. For a non-expert who doesn’t know what to look for, the level of detail can be mind-boggling. You may find yourself scrutinising a spreadsheet listing thousands of items. The Australian Retirement Trust’s Portfolio Holdings Disclosure for its “Lifecycle Balanced Pool”, for example, has more than <a href="https://www.australianretirementtrust.com.au/investments/what-we-invest-in/superannuation-investments">8,000</a> line items. Some super funds have made the effort to provide this information in a more user-friendly format. An example is Future Super, which allows you to <a href="https://www.futuresuper.com.au/everything-we-invest-in/?utm_source=google&utm_medium=cpc&utm_campaign=1757241588&utm_content=68234193065&utm_term=future%20super&campaigntype=SearchNetwork-1757241588&device=c&campaignid=1757241588&adgroup=68234193065&keyword=future%20super&matchtype=p&placement=&adposition=&location=9069039&gclid=CjwKCAjwmJeYBhAwEiwAXlg0AYOEe2tJViZiZBgUk3bt1h9LNuHx1jWnGy6VzqGaNjBzOEi60852JRoCel8QAvD_BwE">search and filter</a> portfolio holdings by asset class and country of origin. But if your concern is to avoid investing in some specific activity such as in mining fossil fuels or gambling, you’ll need to know the companies and other assets you want to avoid for this to be helpful. <h2>Your best options</h2> This is not to say portfolio holding disclosure obligations are useless. They are incredibly useful – a huge leap forward in the sector’s accountability. They just aren’t designed for consumers. So there is still much work to be done to make the sector truly transparent. What would really help is independent certification and ratings of super products, similar to government websites and programs that certify energy efficiency and allow comparison of electricity plans. In the meantime, I can offer you one big tip. Choose a specific superannuation product that markets itself on its environmental or social sustainability credentials. Most super funds now provide these choices alongside their more traditional investment options. There is a variety of “screening” approaches to ethical investments. Some exclude entire sectors. Others include the best environmental and social performers even among “sinful” industries such as tobacco or weapons. So just because a super product is marketed as “ethical” or “sustainable” doesn’t guarantee you will agree with all its investments. But there is a much higher likelihood of it living up to its claims due to greater scrutiny by third parties such as environmental groups as well as the financial regulator. The Australian Securities and Investments Commission put super funds on notice earlier this year with a “<a href="https://asic.gov.au/regulatory-resources/financial-services/how-to-avoid-greenwashing-when-offering-or-promoting-sustainability-related-products/">guidance note</a>” about the growing risk of greenwashing in sustainability-related financial products. It reminded funds that “making statements (or disseminating information) that are false or misleading, or engaging in dishonest, misleading or deceptive conduct in relation to a financial product or financial service” is against the law. So super funds know their portfolios are being scrutinised. Switching your investment option or fund is simpler than you think. You only need to fill out and lodge a form. Just be sure to compare fees and performance, and seek a second opinion from trustworthy adviser before “voting with your wallet”. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/how-do-i-find-out-what-my-superannuation-fund-invests-in-a-finance-expert-explains-188802" target="_blank" rel="noopener">The Conversation</a>.

Retirement Income

The tricky notion of ‘value’ in the arts

There’s plenty of discussion about arts funding in Australia – but are we ready to tackle tough questions around the “value” of the arts? That’s a challenge that will involve scrutinising the “benefits” delivered by arts programs and rethinking some of our ideas about impact. Recently these questions have been framed in terms of measurement – a phenomenon that has to do with an increased emphasis on what is termed the “<a href="https://theconversation.com/go-on-then-what-are-the-creative-industries-18958">creative</a>” or “cultural” industries. <h2>Welcome to the arts industry</h2> Governments and policy makers concerned with the allocation of scarce resources, and with the demise of traditional economic drivers for development, have turned to these sectors as areas of potential growth. The word “industry” nicely moves the whole area away from anything “non-productive”. This framing of the arts as an industry has fuelled the sometimes strident debate over funding models for the arts, particularly when a funding cut has taken place. Yet for better or worse, the arts and related cultural phenomena represent activities that now have value and benefits for government – so there will be policy delivered upon art producers regardless of the debate. The key issues for all is defining and measuring all the possible permutations of value. <h2>Intrinsic and instrumental benefits</h2> Some clarification is possible if we separate instrumental benefits from intrinsic benefits. Instrumental benefits are those that pertain to social, economic or policy outcomes. An outcome of a community-based theatre production might be to involve disadvantaged sectors of the community, thereby increasing social inclusion. Similarly, a sculpture trail might be established in an economically-depressed region, with the aim of increasing local employment. Such benefits are increasingly cited in the conversations surrounding the impact of the arts. The intrinsic benefits of the arts are less obvious. While not being ignored by arts organisations, and of interest to many artists, the “impact” of art on an individual, a community or on society is a nebulous concept. How did the art resonate with the viewer? Was the community intellectually stimulated? Did the art make a lasting impression? Did it increase social bonding? Much of the policy work done on measuring intrinsic impact is done in the performing arts. Theatre, opera and music companies have a particular interest in measuring intrinsic impact, as their revenue streams rely on a paying audience, and indeed one that returns for future performances. Intrinsic impact factors such as audience engagement and stimulation are part of the concept of “<a href="http://www.australiacouncil.gov.au/resources/reports_and_publications/subjects/arts_sector/artisticvibrancy">artistic vibrancy</a>” that the Australia Council uses as a criterion in its <a href="http://www.australiacouncil.gov.au/artisticreflectionkit">Artistic Reflection Kit</a> for arts organisations. <h2>Did the art make a difference?</h2> There is little to guide us in understanding such issues in a broader arts context. Certainly museums and galleries, as well as major events such as the <a href="http://www.biennaleofsydney.com.au/">Biennale of Sydney</a> undertake visitor surveys. But their findings are frequently framed in relation to audience development or marketing strategy. Engagement sometimes simply means: how many people went, and where were they from? While this sort of information is vital in a world where competition for the cultural tourist is fierce, it does not assist us in understanding the basic question of whether the art, in whatever form, made a “difference” to those that viewed it (however that may be defined) and how that might be considered a “value”. Of course, it can be argued such a question is irrelevant in an artistic sense. Many see any measurement of artistic value as further evidence of the commodification of art. Art producers frequently reject the materialistic concept of “product” being applied to their creative output, and clearly consumer demand is not generally the primary driving force behind art and other cultural-based production. <h2>Product-driven artists</h2> Even so, artists do need to be product-driven. If they are not they risk their artistic integrity, the very thing that challenges their audiences. This means that conventional techniques to “sell” artistic production do not necessarily work. For any exhibitor of challenging art this is a common problem. Do you keep churning out those room-filling blockbuster exhibitions – or curate something that your audience might potentially not actually like? Perhaps splitting value into instrumental benefits and intrinsic benefits is actually unhelpful because it artificially separates the individual/ community/ emotional from the policy/ economic. By this I mean that if a concert does not engage and resonate with visitors by having some intrinsic value, then any other subsequent instrumental benefit simply does not flow on. In other words, if the audience does not like the art, they will not “consume” it (buy, view, etc.). <h2>Art for individuals and communities</h2> For me, taking such an holistic view of artistic endeavours recognises that there is an interconnectedness between individual benefits and societal benefits that is indeed important. What benefits the individual may well benefit that individual’s community – and vice versa. Does this make impact any easier to measure? Or value any easier to define? Perhaps not immediately. But it does provide an alternative way of conceptualising value in the arts, one that may be used to reframe a debate that tends to be weighted toward measuring instrumental benefits. It’s not just that funding bodies find it easier to measure instrumental benefits, it’s that the intrinsic value of art is, by its very nature, difficult to measure. How do you measure intellectual stimulation? Emotional engagement? Joy? Sure, there is research conducted in these areas, but it is not finding its way into the debate over the value of the arts. And until it does the arts will continue to be valued more for its role as a driver of economic development than as a cure for the soul – or worse still, not valued at all. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/the-tricky-notion-of-value-in-the-arts-20408" target="_blank" rel="noopener">The Conversation</a>.

Art

Couple tackle the Nullabor to raise funds for polio charity

A Tasmanian couple are jumping on their bicycles ahead of their 2750-kilometre journey - and they’re doing it to raise funds for a good cause. Phil and Joyce Ogden, who have been members of Rotary for over a decade, are undertaking the trek from Perth to Adelaide as part of an epic fundraiser for Rotary’s END POLIO campaign. The campaign, which was started over 30 years ago by Rotary, UNICEF and the World Health Organisation, has been driving towards the goal of completely eradicating Polio, beginning with a project to vaccinate children in the Philippines against the disease in 1979. Now, Polio is believed to only be naturally spreading in Afghanistan and Pakistan, but according to the <a href="https://apps.who.int/gb/ebwha/pdf_files/wha65/A65_20-en.pdf" target="_blank" rel="noopener">World Health Assembly</a>, failing to eradicate the disease would be a “global health emergency”. “We feel the enormous effort which has gone into turning the tide of the disease will be lost if pressure, and fundraising, is not maintained until the final handful of cases is consigned to history,” the Ogdens said in a message to all Rotarians. With the support of their South Launceston Rotary Club, the Odgens have planned to begin their trip in mid-May and hope to raise awareness of the cause along the way. “If we take our collective eyes off the ball, the disease will re-establish,” the couple said. “So, we are still committed to making our personal donations every year but felt we might harness another of our passions, cycling, to push things along - once again with the assistance of Rotary.” With limited sources of water and no shops to buy food from along the Nullarbor, the couple will carry a week’s worth of food and two days of water at a time, and they’re relying on dehydrated food which will be mailed ahead of them. Their upcoming journey isn’t a first for the Ogdens, who have covered more than 100,000 kilometres from crossing the European Alps, the Pyrenees and the Rockies. Heather Chong, the Tasmanian District Governor, praised the pair and described them as “adventurous philanthropists”. The couple have started an <a href="https://raise.rotary.org/phil-ogden/fundraiser" target="_blank" rel="noopener">online fundraiser</a> with a goal of raising $40,000. As of publication, the fundraiser has already collected $10,000 in donations, with every $1 donated prompting the Bill and Melinda Gates Foundation to contribute $2. Image: Supplied

Caring

Government funds bail out festival cancellations with Event Saver Fund

As another year of music festivals and summer events have been cancelled in the eleventh hour by the pandemic, the NSW government has put their hand up to help the arts. The state government recently announced the Event Saver Fund, which is aimed at financially supporting the state’s music industry that has been devastated by the latest wave of Omicron. At a recent press conference, NSW Treasurer Matt Kean revealed that a $43 million fund has been established for organisers of the cancelled events to be financially supported if they've been cancelled or may be affected by changes to public health orders. “This fund is a $43 million fund that will ensure that we will underwrite sunk costs for the festivals that could be impacted by changes to public health orders,” he said. The fund will help organisers to pay their staff and suppliers, as well as recoup other costs lost in the event planning that got cancelled or cut short due to lockdowns or border closures. Minister for the Arts Ben Franklin said the vital funding will give event organisers to continue to plan festivals without the stress of a last-minute cancellation costing them thousands. “Major events provide tremendous social benefits to the community, bringing us together to enjoy live performances,” he said. “As we look to rebound from the effects of the past two years, this funding will help support local jobs and ensure major event organisers can plan with confidence to safely deliver their events in 2022/23.” Australian Festivals Association chair Julia Robertson welcomed the Event Saver package, and emphasised how much the industry has suffered since the start of the pandemic. “This package is really great for building confidence,” she said. “For helping those festivals that have got events coming up — to maintain those festival lineups — but also to those events that have had to be cancelled over the last couple of weeks due to the Omicron variant. “We will be able to help those events recover some of those costs that they’ve lost. We’ve got a really long way to building that confidence for the festival industry, so thank you.” Image credits: Getty Images

Music

Labor’s proposed $10 billion social housing fund isn’t big as it seems, but it could work

The centrepiece of Labor’s election program so far is its A$10 billion social housing policy, officially called the <a href="https://alp.org.au/policies/housing_future_fund">Housing Australia Future Fund</a>. In the first five years the fund would be used to build <ul> <li> 20,000 social housing properties for people on low incomes - 4,000 of the 20,000 for women and children fleeing violence and for low income older women at risk of homelessness </li> <li> 10,000 “affordable” housing properties </li> <li> $200 million for the repair, maintenance and improvements of housing in remote Indigenous communities </li> <li> $100 million for crisis and transitional housing for women and children fleeing violence and for low income older women at risk of homelessness </li> <li> $30 million to build more housing and fund specialist services for veterans who are experiencing or at risk of homelessness </li> </ul> Although needed, its a far short of the 100,000 extra social housing units we would have had if social housing been growing in line with total housing in recent years, a gap that is climbing by 4,000 homes a year. And, like the frilled-neck lizard, the $10 billion looks much bigger than it is. Labor could probably do what it has promised to do for $450 million per year. Instead, it says it would borrow $10 billion at low interest rates, invest the money for much higher returns, and use the proceeds to pay for the program. If the fund earns 4.5% more than the cost of borrowing it’ll get the $450 million per year. Rather than use the money to build the houses it will use the money to fund service payments to community housing providers who build them. As Labor points out, it’s a mechanism used by the current government, which has set up five such funds in addition to the <a href="https://www.futurefund.gov.au/">Future Fund</a> used to fund public service pensions (of which more later). <a href="https://images.theconversation.com/files/440171/original/file-20220111-13-1erhnaj.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/440171/original/file-20220111-13-1erhnaj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> <a href="https://alp.org.au/policies/housing_future_fund" class="source">Extract from Labor's Housing Australia Future Fund election policy</a> Two of these funds, the Medical Research Future Fund and the Disability Care Australia Fund are actually bigger than the proposed Housing Fund. A problem with this structure designed to make the commitment look bigger than it is is that spending on social housing will depend on the returns of the fund. Allocating money from one source to spending on one particular purpose is called <a href="https://www.cis.org.au/app/uploads/2015/07/pm75.pdf">hypothecation</a>, a word closely related to “<a href="https://english.stackexchange.com/questions/429589/is-hypothecate-anything-to-do-in-origin-or-meaning-with-hypothetical/570700">hypothetical</a>”. <a href="https://images.theconversation.com/files/440181/original/file-20220111-19-6m0mfi.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/440181/original/file-20220111-19-6m0mfi.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" alt="" /></a> Medicare funding is independent of the levy. Dean Lewins/AAP The Medicare Levy of 2% of most taxable incomes is intended to be for funding Medicare, but funds only part of it. In contrast, there doesn’t appear to be any plan to guarantee payments for social housing if in any year the Social Housing Fund fails to make money. The bigger question is whether it makes sense for governments to use funds like the Future Fund to put money into income-generating investments in private companies (the Future Fund invests in <a href="https://cdn.theconversation.com/static_files/files/1918/20200630_-_Top_100_largest_listed_equity_holdings.pdf">Apple, Microsoft and the Commonwealth Bank</a>) or to use any available funds to pay down government debt. The answer depends in part on whether the profits the funds earn are genuine or mere compensation for the risky business of investing in shares, which can always go wrong. My work on the so-called “equity premium”, the excess return for investing in shares, suggests that is <a href="https://core.ac.uk/download/pdf/15061616.pdf">genuine</a> and exceeds what’s needed to compensate for risk, making investment in the stock market an appealing option for governments in the absence of better opportunities. But the premium is not limitless, for two reasons. One is that if governments borrow enough and buy enough shares, we can reasonably expected the government’s cost of borrowing to rise and the rate of return on shares to fall, reducing the equity premium. The other is that if buying shares is pursued far enough, governments will become major, or even majority, shareholders in large businesses, effectively becoming owners. <h2>Future funds should invest in what governments do best</h2> Long experience suggests that while governments are quite good at running some types of businesses (especially those involving infrastructure and requiring large amounts of capital) they are not nearly as good at running others. Retailing comes to mind. If we accept that large debt-financed public investment can make sense, it follows that governments should own as much as 100% of some types of businesses (businesses such as Telstra come to mind) and little or none of others, such as shopping centres, which Australia’s government <a href="https://www.canberratimes.com.au/story/7139681/the-sale-of-belconnen-mall/">did indeed once own</a>. And that was generally the way Australia’s economy worked during the brief period of broadly shared-prosperity in the mid-20th century. Governments borrowed at low rates and invested in physical and social infrastructure, such as roads and communications services. The more funds there are like Labor’s proposed Housing Australia Future Fund the more likely it is we will get back there.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/174406/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/john-quiggin-2084">John Quiggin</a>, Professor, School of Economics, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/labors-proposed-10-billion-social-housing-fund-isnt-big-as-it-seems-but-it-could-work-174406">original article</a>.

Real Estate

The compelling case for a future fund for social housing

As more and more Australians are forced into private renting, including Australians who once would have owned homes or lived in social housing, more are living in <a href="https://www.acoss.org.au/wp-content/uploads/2018/10/ACOSS_Poverty-in-Australia-Report_Web-Final.pdf">poverty</a>, suffering <a href="https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf">financial stress</a> and becoming <a href="https://blog.grattan.edu.au/2019/06/who-is-homeless-in-australia/">homeless</a>. Social housing – where rents are typically capped at 25% of tenants’ incomes – used to make a big difference to the lives of many vulnerable Australians. Infrastructure Victoria has found that it makes a big difference to homelessness. Only 7% of renters in social housing subsequently become homeless, compared to 20% of private renters. But the stock of social housing – currently around 430,000 dwellings – has barely grown in 20 years, during a time Australia’s population has grown 33%. Given that most social housing tenants stay for more than five years, the stagnating stock of such housing means there are few openings available for people whose lives take a turn for the worse. We not only have fewer social houses per person, we also have vastly fewer openings for anyone looking. <h2>The fund would leverage cheap money</h2> Social housing is expensive. The capital cost per unit over and above what is recouped in rent amounts to about A$300,000. A new Grattan Institute paper released on Monday makes the case for a $20 billion federal government <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/">Social Housing Future Fund</a>, which would make regular capital grants to state governments and community housing providers. Future funds are not unusual. The <a href="https://www.futurefund.gov.au/about-us/who-we-are/board-of-guardians">Future Fund Board of Guardians</a>, chaired by former Commonwealth Treasurer Peter Costello already manages $247.8 billion in assets across six funds addressing problems ranging from covering federal public servants’ superannuation entitlements to drought to disability care to medical research. <a href="https://images.theconversation.com/files/434062/original/file-20211126-27-iuq4w2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434062/original/file-20211126-27-iuq4w2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" alt="" /></a> Peter Costello chairs the Future Fune Board of Guardians. Dean Lewins/AAP The endowment for the Social Housing Future Fund could be established by borrowing at today’s ultra-low interest rates. Some states, including Victoria, NSW, and Queensland already operate social housing investment funds, some financed by privatisations, others financed by government borrowing. The funds would be managed by the existing Future Fund Board of Guardians with only the returns above inflation used to provide capital grants for housing, maintaining the real value of the fund over time. Capital grants for new social housing units would be allocated by the existing <a href="https://www.nhfic.gov.au/">National Housing Finance and Investment Corporation</a> via competitive tenders after specifying dwelling size, location and subsidies for tenants. As is the case with the existing Future Fund, the funding would be off budget, with only each year’s profits or losses affecting the budget balance. The extra $20 billion in gross government debt would be small compared to the nearly <a href="https://www.abc.net.au/news/2020-10-09/federal-budget-2020-debt-deficit-blowout-explained/12741472">$1 trillion</a> currently on issue, supported by about $500 billion a year in federal government revenues. <h2>How much could a $20 billion fund support?</h2> A $20 billion fund that achieved after-inflation returns of 4-5%, could over time provide $900 million each year – enough to deliver 3,000 extra social housing units a year in perpetuity, assuming capital grants of $300,000 per dwelling. Starting in 2022-23, the fund could build 24,000 social housing dwellings by 2030, and 54,000 by 2040. Future governments would be at liberty to top up the fund, helping expand the social housing share of the national housing stock. <hr /> <a href="https://images.theconversation.com/files/434215/original/file-20211127-23-1xithw8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434215/original/file-20211127-23-1xithw8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Assuming $300,000 capital grant per dwelling, indexed to inflation. <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/" class="source">Source: Grattan analysis</a> <hr /> The <a href="https://alp.org.au/policies/housing_future_fund">Labor Party</a> has proposed something similar, in which funds are used for annual service payments to community housing providers rather than via upfront capital grants. The on-budget cost of our proposal would be modest: about $400 million a year, or less than 0.1% of federal government spending in the form of interest costs. Alternatively, part of the above-inflation return from the fund each year could be used to cover these costs, leaving $500 million available to fund the construction of nearly 1,700 new social housing units per year with no hit to the budget. The Commonwealth should require state governments to match its contributions. <h2>States could double the money</h2> Any state that did not agree to provide matching contributions would be ineligible for capital grants for social housing in that year, with the savings reinvested in the Future Fund and distributed across all states the following year. If matched state funding was forthcoming, the fund could provide 6,000 social homes a year – enough to stop social housing shrinking as a share of the total housing stock. This would double the build to 48,000 new homes by 2030, and 108,000 by 2040, boosting the current stock by one quarter. <hr /> <a href="https://images.theconversation.com/files/434216/original/file-20211127-23-h5zalb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/434216/original/file-20211127-23-h5zalb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> Assuming $300,000 capital grant per dwelling, indexed to inflation. <a href="https://grattan.edu.au/news/a-place-to-call-home-its-time-for-a-social-housing-future-fund/" class="source">Source: Grattan analysis</a> By itself, a Social Housing Future Fund wouldn’t solve the housing crisis for low-income Australians. We would still need to boost rent assistance for people on income support and do more to boost housing supply to bring rents down. But it would give a much-needed helping hand to some of our most vulnerable, and keep social housing there for future generations should they need it.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/172508/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Economic Policy, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-compelling-case-for-a-future-fund-for-social-housing-172508">original article</a>. Image: Shuttershock

Real Estate

Dad spends daughter’s wedding fund on car and holiday

After posting about his situation on <a rel="noopener" href="https://www.reddit.com/r/AmItheAsshole/comments/mhgoq5/aita_for_spending_my_daughters_wedding_fund_on_a/" target="_blank">Reddit</a>, a father has been questioning whether it was wrong of him to spend the $35,000 (AUD $45,045) he had saved for his daughter’s wedding on gifts for himself instead. In the post, he explained his daughter’s wedding had been postponed for more than a year, ending with her choosing to elope rather than going through with the ceremony. Having saved the cash for the wedding fund, the man said he was ‘thrilled’ that his daughter was still able to get married, but also that he could ‘put [the money] to other use’. He revealed that he used the money to treat himself to a new car and take his wife on a holiday. ‘I didn’t think this was controversial,’ the man said. But, his decision has caused major controversy. Just weeks after the daughter had eloped, she asked whether she could dip into the fund of savings to put a down payment on a property. After learning that he had spent the cash, his daughter and ex-wife called him out as ‘selfish’. Her dad defended himself, saying, ‘I never told her it was a wedding or whatever she wanted fund, so I didn’t think I did anything wrong.’ But he’s questioning whether his opinion was biased. ‘I’m a blue collar guy. She knew that I had money put aside for her wedding,’ he added. ‘I never told her it was a fund for her to use on whatever. I paid for her [university] and planned on paying for her wedding but beyond that didn’t plan on paying her way through life.’ The Reddit post received over 1,000 comments, many sided with him and supported his decision to spend the money he’d earned on himself. ‘[This man] paid for his daughter’s entire [university] tuition and living expenses so she’s starting out in life with zero debt,’ one user replied. ‘Isn’t that gift enough?’ Another said, ‘[Your] daughter is allowed to be disappointed, but not an ungrateful, entitled brat.’ Offering a more neutral view, a third commenter said, ‘At the end of the day, it is your money and adult children are not owed houses, cars or weddings by their parents’, claiming they ‘personally’ would have ‘at least given her some of the money as a wedding present.’

Money & Banking

Strangers raise $250,000 for pregnant mother of triplets after husband's suicide

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> More than $250,000 has been raised for a devastated mum-to-be of triplets after her husband passed away in a self-harm incident involving a car. Matt and Ashleigh Conwell had been tightly budgeting to prepare for the arrival of their three babies before Matt took his own life on September 2nd. With the three children due just before Christmas, strangers took it upon themselves to help out the heartbroken family. Nicola Britton, GoFundMe's Australian senior regional manager, said the heartbreaking story resonated with members of the community, The <a rel="noopener" href="https://www.couriermail.com.au/news/queensland/queenslanders-help-raise-250k-for-cricket-coachs-pregnant-widow/news-story/0f377cb7074c0cb57db6be05ea36aff0" target="_blank" class="editor-rtflink">Courier Mail</a> reported. "The more close-knit a community, the quicker donations come in, and this one escalated very quickly due to the circumstances," she said. "Generosity hasn't slowed down this year, and that's really surprised me; at a time of such social and economic uncertainty, people are turning compassion into action and donating is their way to show they are there for someone." Devastated Ashleigh agreed to let her friend Alex Nesevski set up a <a rel="noopener" href="https://www.gofundme.com/f/ashleigh-amp-her-beautiful-babies" target="_blank" class="editor-rtflink">GoFundMe</a> page. "Ashleigh isn't the sort of person who would ask for help, and money can never replace the loss of her husband, but she knows she needs support," Mrs Nesevski previously told <a rel="noopener" href="https://www.dailymail.co.uk/news/article-8789691/Ashleigh-Conwell-GoFundMe-raises-250-000-husbands-sudden-suicide.html" target="_blank" class="editor-rtflink">Daily Mail Australia</a>. She explained the costs of pregnancy, delivery and caring for triplets that would be "challenging for any couple" are especially difficult for a jobless single mother. "They were already stretching every dollar and budgeting tightly for the arrival of their unexpected but so very wanted family ... the financial hardship she now finds herself in is significant," she said. "She has to see a specialist every two weeks because carrying three babies is a huge physical strain - growing bones and brains." Ashleigh's sister Emily said that her brother in law wasn't thinking clearly when he took his own life. "It was a snap decision, a moment of clouded judgement, and totally out of character," she said. "This year's been tough for everyone, even the strongest people you thought could get through it ... it just shows suicide doesn't discriminate," she said. "It wasn't meant to be this way". </div> </div> </div>

Caring

Mum forced to have all limbs amputated after getting COVID-19

A coronavirus survivor ended up having all of her hands and feet amputated after contracting life-threatening sepsis. Caroline Coster, 58, showed symptoms for coronavirus at the end of March and spent "two horrible weeks" trying to fight off the virus. She initially started to recover, but took a turn for the worse and was diagnosed with a chest infection. After a quick call to her GP, she was rushed to Bedford Hospital in the UK and was told she had developed sepsis. She was placed in a medically induced coma for almost a month, where her heartbroken family were twice told that the hospital was going to withdraw care if Caroline didn't improve. Writing on her blog, Caroline likened her experience of being in a coma to being “trapped in a video game”. “When the game was switched off, so was I,” she wrote. “When the game was switched on, my experience was disembodied white heads coming towards me and telling me ‘Caroline, Caroline, wake up’.” Much to the hospital's surprise, Caroline started to recover with her vitals starting to heal after a month in the coma. However, as she had been in the coma for so long, her limited blood flow was directed to her brain and vital organs. This means her hands and feet had turned black and died. “They were now a source of pain and a hindrance as she could not use them anymore, so had to be amputated,” Her daughter Hannah, 24, wrote. Caroline explained to the BBC that her hands looked like an "Egyptian mummy". “They were black and shrivelled. I was so grateful to have my life that it wasn’t a huge jolt to lose those,” She said. As her family have been forced to fundraise for Caroline to afford the massive amount of adaptions and specialist equipment that she now needs for her daily life, they started a <a rel="noopener" href="https://www.justgiving.com/crowdfunding/caroline-coster" target="_blank" class="_e75a791d-denali-editor-page-rtflink">JustGiving</a> page. “She is at peace with the loss of her hands and feet, as they are not what make her the person she is,” writing on a JustGiving page, Caroline’s daughter Hannah said. “She has faced this challenge with a positivity and determination that few of us could match. “However, the reality is that she will require a huge amount of adaptations and specialised equipment in order to be able to live a normal, independent life, return to hobbies and stay in the home she loves. “Sadly, government and NHS funding for many of the items we need is very limited. “The money raised will go towards lots of things, including adaptations around the home, a bathroom she can use independently, private hand prosthetics, and mobility aids.” In just over a month, Caroline's JustGiving page has raised over $95,246.

Body

Man who rescued baby whale plans to donate fine funds to marine charities

<div class="body_text "> Django Hopkins didn’t think twice when he saw a baby whale calf tangled in shark netting and rescued the whale in his tinny. However, as Hopkins is from Queensland, it’s illegal to interfere with equipment used for shark control and he could have received a possible fine of up to $26,900. A fundraising page was set up to cover the costs of the fine and it quickly raised more than $20,000. "The GoFundMe page is by two guys I don't even know – they started it, and I think it's about $24,000 today," Hopkins said. He’s made it clear he’s not planning on pocketing the money, as a Department of Fisheries investigation has cleared him of any serious breaches. "It can either go to Sea Shepherd or it can go back to them - I'm not just going to get it and go to the pub when they open." The whole experience of saving the calf was “the best part of the whole thing”, according to Hopkins. "I'm a typical Aussie male, I do stuff first and think about it later. There was no real thinking, I saw it and that was it, you just get going and get in the water," Django told 2GB's Ben Fordham on Thursday. "(Saving the calf) was the best part of the whole thing. Because of the adrenaline going through the whole experience, I can barely remember any of it." <div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/2jk90q1eTtc"></iframe></div> He also holds no ill will towards the Department of Fisheries and said they’ve done the right thing. "It's hard to put yourself in the position where you're going to break the law or help something or someone, but they have pulled bodies out of these things - so I get it on their behalf." The whole experience wouldn’t stop him from helping another animal in distress but warns others not to do the same. "I was going straight in. I'm not scared of it, to be honest," he said. "I wouldn't recommend everyone go and do it, its highly dangerous." </div>

Travel Trouble

99-year-old war veteran raises millions for healthcare workers

A 99-year-old war veteran has raised nearly more than 4 million pounds ($NZD 8.4 million) for British healthcare workers by attempting to walk the length of his garden one hundred times before his 100th birthday later this month. Captain Tom Moore has used a walking frame to move around since breaking his hip and said that he was incredibly grateful to the National Health Service (NHS) for the treatment he received. He wanted to do something in return to say thank you, and the aim is to do 10 laps a day before the end of the month. <div class="embed-responsive embed-responsive-16by9"><iframe class="embed-responsive-item" src="https://www.youtube.com/embed/zVFCwjZqzoo"></iframe></div> Britain’s state-funded NHS is under intense strain as it treats large numbers of people suffering from COVID-19. Moore turns 100 on April 30 and had hoped to raise 500,000 pounds. He has since quadrupled that figure and more already thanks to the generosity of 205,326 supporters. <blockquote class="twitter-tweet"> 99 year old Captain Tom Moore <a href="https://twitter.com/captaintommoore?ref_src=twsrc%5Etfw">@captaintommoore</a> is celebrating his birthday by walking 100 lengths of his garden for <a href="https://twitter.com/NHSCharities?ref_src=twsrc%5Etfw">@NHSCharities</a> So far he has raised £3,676,361.91 ⬆️735% ! You can support him here: <a href="https://t.co/mmZMpHJpsl">https://t.co/mmZMpHJpsl</a> <a href="https://t.co/hsE3ZvTMNT">pic.twitter.com/hsE3ZvTMNT</a> — Bev Matthews RN ↔️ 🧍🏼‍♂️↔️🧍🏼↔️🧍🏽‍♀️↔️🧍🏿 (@BevMatthewsRN) <a href="https://twitter.com/BevMatthewsRN/status/1250168744074149898?ref_src=twsrc%5Etfw">April 14, 2020</a></blockquote> NHS Charities Together, who will benefit from the funds, said that it was “truly inspired and humbled”. Ellie Orton, chief executive of the charity, had nothing but praise for Tom Moore. "I think I absolutely join the rest of the country in being truly inspired and profoundly humbled by Captain Tom and what he has achieved. "Thank you for being an inspiration and a role model." Moore couldn’t believe his eyes as funds went over the 4 million pound mark and said that it was “almost unbelievable”. <blockquote class="twitter-tweet"> WOW - 4 million pound for our NHS! We cannot wait to tell the news to Tom in the morning, he will not believe his ears! Thanks each and every one of you - we are in awe of you, but especially our frontline staff who need this now more than ever. <a href="https://twitter.com/hashtag/TomorrowWillBeAGoodDay?src=hash&ref_src=twsrc%5Etfw">#TomorrowWillBeAGoodDay</a> — Captain Tom Moore (@captaintommoore) <a href="https://twitter.com/captaintommoore/status/1250186487095873536?ref_src=twsrc%5Etfw">April 14, 2020</a></blockquote> "When you think of who it is all for - all those brave and super doctors and nurses we have got - I think they deserve every penny, and I hope we get some more for them too,” he said to the <a rel="noopener noreferrer" href="https://www.bbc.com/news/uk-england-beds-bucks-herts-52278746" target="_blank">BBC</a>. The veteran who served in Asia during World War II had a message of hope. "That's the way I think I've always looked at things: tomorrow will be a good day," he said. Photo credits: <a rel="noopener noreferrer" href="https://www.justgiving.com/fundraising/tomswalkforthenhs" target="_blank">Just Giving</a>

Retirement Life

What you should tell your grandchildren about money issues

Being a parent presents us with daily challenges, including decisions about what things to expose our children to. One of the questions I am constantly asked by parents is what should they teach their children about money, and at what age. Talking about money is no different to talking about how to keep healthy or how to keep safe when using the internet. If your child thinks money is something that “mum and dad get from a machine”, then they don’t know how hard their parents work to generate an income for the family and meet all of their expenses. Moving money from an abstract concept to something tangible that is earned and saved before it is spent is an important step for children to understand. Children are more intelligent than we often give them credit for. They are also more understanding and resilient – if there are tough financial situations to explain, what children appreciate most is honesty, consistency and facts. So, if you don’t have enough money to buy something your child has asked for, be honest and put the facts in front of them. Explain the difference between things the family needs and the things they want. Tell them that all the “need items” must be purchased first, and then you will see if there is enough money left in the budget to buy what they want. And if there isn’t, tell them how the item can be budgeted for – and how you can all work towards saving for it over time. What is the right age to start having these discussions? You should be open with your children about money as soon as they are able to understand. However, what your child needs to know at the age of four or five is very different to what they need to know at the age of 10, 15 or older. <a href="http://www.massey.ac.nz/massey/fms/Colleges/College%20of%20Business/School%20of%20Economics%20&%20Finance/FinEd/documents/FinanceStudyWEBv2.pdf?7B7DE79F6F2FC1A47A247B28528D8E4C">Research by the Westpac Massey Fin-Ed Centre</a> shows that most young people get their financial information from their parents so it is important that parents provide a good foundation for future financial well-being from an early age. The initial conversation with a four to five-year-old does not have to be about money. Start with the concept of “delayed gratification”. It is a powerful way of teaching children there are benefits in waiting for things. They also need to know that not every demand they make is going to be fulfilled instantly. Every family has a limit to its available resources, even the very rich need to have plans for their money. For children aged 6-10, involve them in preparing a household budget and allocating money to different parts of your budget. Let them help you prepare a shopping/grocery list and then allocate to them an amount as per your agreed budget. Take them grocery shopping with you, hand them the list that they have prepared along with a calculator. Give them the responsibility of staying within the allocated budget and be strict with this. The incentive for the child could be that if they manage to get all the items on the list for less than the allocated amount, they get to decide how to spend the surplus. When you get home, this can become a conversation about money: the benefits of staying within the allocated amount and how to make tough decisions about what items are priority. For children aged 10 – 15, give them the responsibility of setting the household budget under your supervision. Discuss the different components of budgets: expenses that occur weekly/fortnightly/monthly/annually so they can see how important it is to have a better understanding of how and where the money is being spent. They may have a goal of buying something new for themselves – so help them to work out whether it is a need or a want and how they plan to pay for it. Discussions about short, medium and long-term goals can be useful. For those age 15 and over, start having discussions about their goals for their future – beyond high school. Encourage them to start saving for their future, whether that be higher education, travel, or buying a house. At this stage they also need to start learning about their rights as a consumer, signing agreements, the difference between debit cards and credit cards, and saving for things you want instead of borrowing. They need to know they will sometimes go without Children also need to be made aware that they will sometimes have to go without things they want. They need to understand that, as a parent, it is your moral, legal, social and ethical responsibility to look after their needs, but that you are not obliged to pay for all their wants. But explain that you are happy to work with them to help them save for the things they want. Another common question is, how much should you tell your children. Should you tell them how much you earn, how much debt you have and what, if any, savings you have in the bank? There are varied opinions on this. Some parents feel that they should be totally transparent with their children, while others feel that they don’t need to know that level of detail. Either way, children should have a general idea about the household’s income and expenditure. Children need to know from an early age that money is not an endless resource and there are times when you may not have enough money for the things they want to buy. It is a good idea to discuss options in such cases. You will be surprised at some of the creative solutions children come up with. The main thing is to involve children in money discussions; give them some responsibility and an opportunity to manage money from an early age so they understand its value.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/39686/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/pushpa-wood-161760">Pushpa Wood</a>, Director, Westpac Massey Fin-Ed Centre, <a href="http://theconversation.com/institutions/massey-university-806">Massey University</a> This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-should-we-tell-our-children-about-money-39686">original article</a>.

Money & Banking

Why Sweden's central bank dumped Australian bonds

What’s happening? Suddenly, at the level of central banks, Australia is regarded as an investment risk. On Wednesday Martin Flodén, the deputy governor of Sweden’s central bank, announced that because Australia and Canada were “<a href="https://www.riksbank.se/globalassets/media/tal/engelska/floden/2019/monetary-policy-in-a-changing-world.pdf">not known for good climate work</a>”. As a result the bank had sold its holdings of bonds issued by the Canadian province of Alberta and by the Australian states of Queensland and Western Australia. <a href="https://images.theconversation.com/files/301897/original/file-20191115-47128-1s2eoc3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/301897/original/file-20191115-47128-1s2eoc3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> <a href="https://www.riksbank.se/globalassets/media/tal/engelska/floden/2019/monetary-policy-in-a-changing-world.pdf" class="source">Martin Flodén, deputy governor Sveriges Riksbank Central Bank of Sweden</a> Central banks normally make the news when they change their “cash rate” and households pay less (or more) on their mortgages. But central banks such as Australia’s Reserve Bank and the European Central Bank, the People’s Bank of China and the US Federal Reserve have broader responsibilities. They can see climate change affecting their ability to <a href="https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2018/climate-change-and-the-macro-economy-a-critical-review.pdf">manage their economies</a> and deliver <a href="https://www.rba.gov.au/publications/fsr/2019/oct/box-c-financial-stability-risks-from-climate-change.html">financial stability</a>. There’s more to central banks than rates As an example, the new managing director of the International Monetary Fund Kristalina Georgieva warned last month that the necessary transition away from fossil fuels would lead to significant amounts of “<a href="https://www.afr.com/policy/economy/central-banks-tune-in-to-climate-change-20191020-p532ev">stranded assets</a>”. Those assets will be coal mines and oil fields that become worthless, endangering the banks that have lent to develop them. More frequent floods, storms and fires will pose risks for insurance companies. Climate change will make these and other shocks more frequent and more severe. In a speech in March the deputy governor of Australia’s Reserve Bank <a href="https://www.rba.gov.au/speeches/2019/sp-dg-2019-03-12.html">Guy Debelle</a> said we needed to stop thinking of extreme events as cyclical. <blockquote> We need to think in terms of trend rather than cycles in the weather. Droughts have generally been regarded (at least economically) as cyclical events that recur every so often. In contrast, climate change is a trend change. The impact of a trend is ongoing, whereas a cycle is temporary. </blockquote> And he said the changes that will be imposed on us and the changes we will need might be abrupt. <blockquote> The transition path to a less carbon-intensive world is clearly quite different depending on whether it is managed as a gradual process or is abrupt. The trend changes aren’t likely to be smooth. There is likely to be volatility around the trend, with the potential for damaging outcomes from spikes above the trend. </blockquote> Australia’s central bank and others are going further then just responding to the impacts of climate change. They are doing their part to moderate it. No more watching from the sidelines Over thirty central banks (including Australia’s), and a number of financial supervisory agencies, have created a <a href="https://www.ngfs.net/en">Network for Greening the Financial System</a>. Its purpose is to enhance the role of the financial system in mobilising finance to support the transitions that will be needed. The US Federal Reserve has not joined yet but is <a href="https://www.bis.org/review/r191111a.pdf">considering how to participate</a>. One of its credos is that central banks should <a href="https://www.bis.org/review/r191111a.pdf">lead by example</a> in their own investments. They hold and manage over A$17 trillion. That makes them enormously large investors and a huge influence on global markets. As part of their traditional focus on the liquidity, safety and returns from assets, they are taking into account climate change in deciding how to invest. The are increasingly putting their money into “<a href="https://www.bis.org/publ/qtrpdf/r_qt1909f.pdf">green bonds</a>”, which are securities whose proceeds are used to finance projects that combat climate change or the depletion of biodiversity and natural resources. Over A$300 billion worth of green bonds were issued in 2018, with the total stock now over A$1 trillion. Central banks are investing, and setting standards While large, that is still less than 1% of the stock of conventional securities. It means green bonds are less liquid and have higher buying and selling costs. It also means smaller central banks lack the skills to deal with them. These problems have been addressed by the <a href="https://www.bis.org/">Bank for International Settlements</a>, a bank owned by 60 of the central banks. In September it launched a <a href="https://www.bis.org/press/p190926.htm">green bond fund</a> that will pool investments from 140 (mostly central bank) clients. Its products will initially be denominated in US dollars but will later also be available in euros. It will be supported by an advisory committee of the world’s top central bankers. It is alert to the risk of “<a href="https://en.wikipedia.org/wiki/Greenwashing">greenwashing</a>” and will only buy bonds that comply with the International Capital Market Association’s <a href="https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/">Green Bond Principles</a> or the Climate Bond Initiative’s <a href="https://www.climatebonds.net/standard">Climate Bond Standard</a>. Launching the fund in Basel, Switzerland, the bank’s head of banking Peter Zöllner said he was <blockquote> confident that, by aggregating the investment power of central banks, we can influence the behaviour of market participants and have some impact on how green investment standards develop </blockquote> It’s an important role. Traditionally focused on keeping the financial system safe, our central banks are increasingly turning to using their stewardship of the financial system to keep us, and our environment, safe.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/126766/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/john-hawkins-746285">John Hawkins</a>, Assistant professor, <a href="http://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/climate-change-why-swedens-central-bank-dumped-australian-bonds-126766">original article</a>.

Money & Banking

"You can't teach stupid": Folau receives more funds in two days than farmers' rural aid in one year

<div> <div class="replay"> <div class="reply_body body linkify"> <div class="reply_body"> <div class="body_text "> A Facebook post by The NRL Roast criticising those who donated to Israel Folau’s legal battle has gone viral in just 24 hours. The post highlighted donations given to the Rural Aid Buy a Bale campaign raised in one year matched the money raised for controversial Folau’s legal battle against the Rugby League Association. “In 2 days, Israel Folau has received more in donations than Rural Aid's "Buy a Bale" campaign did in the 2017/2018 financial year,” the post began. “Folau may or may not be in the right in regard to why he got sacked and has every right to launch legal action. “That’s not my gripe. “It's the fact that every day Aussies would rather donate their hard earned, already taxed money, to a multi-millionaire professional athlete who can use the funds however he wants...TAX FREE, while people who actually make a worthwhile contribution to society, and our communities, are left in the lurch. “But you can’t teach stupid… You are just born that way.” <iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2FTheNRLRoast%2Fphotos%2Fa.248365635620899%2F729888714135253%2F%3Ftype%3D3&width=500" width="500" height="435" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe> Folau has raised $2.2 million in just two days by 20,000 people. Since then, the fundraiser, which is located on the Australian Christian Lobby’s website, has been paused – a little less than $1 million short of the sacked rugby star’s $3 million goal. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/BzATb_Wn3I_/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" rel="noopener" href="https://www.instagram.com/p/BzATb_Wn3I_/" target="_blank">A post shared by Israel Folau (@izzyfolau)</a> on Jun 22, 2019 at 1:07am PDT </div> </blockquote> The ACL said the donations, which opened on Tuesday, had been “overwhelming". “ACL, Izzy and everyone involved is humbled and grateful. We are hitting the pause button. But if the case drags on and Israel needs more support, we will re-open this campaign,” a statement on the website said. The original campaign on GoFundMe was shut down after it was determined they had violated the site’s terms of service. “We are absolutely committed to the fight for equality for LGBTIQ+ people and fostering an environment of inclusivity,” Nicola Britton, GoFundMe’s Australian regional director said. Managing director of the ACL, Martin Iles, confirmed any money raised in the $3 million campaign will exclusively be used to meet Folau’s legal costs. In a poll conducted by Over60 with over 5,200 votes, it was determined 60 per cent of Australians believe Folau deserved to be sacked from his contract with Rugby Australia. However, 40 per cent voted Folau's controversial social post that claimed “hell awaits” gay people, among others, was not breaching his contract. NRL Roast’s post, which now sits with over 3,000 comments, has continued to stir debate with some users claiming the page was only adding “fuel to the fire". “If he can say whatever he believes then he should have the guts to face the consequences of his actions and use his own funds to fight his own battles,” one user wrote. Another added: “I don't see why people find this surprising. There are A LOT of people in the world with the same views as Falou.” “So you're complaining about people who are donating their OWN already taxed hard working money to Folau because they choose not to donate it to where YOU think they should donate THEIR money to?” an additional comment read. However, other people said it was “sad” farmers did not have “priority“. "If only those who so support a sportsperson's contract breach which has been turned into a fight for Christianity could support those who grow our food and keep food on our tables...” one comment said. Another stated: “An absolute disgrace that people give money so easily to someone who broke his contract, not once but twice, but can’t find the money for the farmers who help put food on our tables every day, nothing like getting your priorities right.” Folau’s $4 million contract was terminated by Rugby Australia last month after a post on his Instagram page claimed homosexuals, among others, would burn in hell. </div> </div> </div> </div> </div>

Legal

What are managed funds?

When you think of the ways you can invest, many people first think of buying an investment property or maybe some shares on the stock market. While these methods of direct investment have their own merits, many investors would be better served by using the investment power of a managed fund to achieve the goals of growth, security and diversity. But how do managed funds work and why are they an effective way to invest? Here are the basics about these funds to help you make the right decision. The concept of pooling funds If you are simply investing by yourself you are naturally limited in how widely you can spread your investment. Your capital will only go so far and your scope is usually limited to assets that are “visible” to you. For example, you can look at what properties are available in the local real estate window or check the financial pages to see what shares can be bought on the local stock market. Managed funds offer a fundamental difference simply through the collective power of pooling your money with other investors. With a much larger capital base, the pool of funds can be invested across a range of assets to help spread risk and to seek a wider selection of opportunities. This collective buying power allows more diversification, so that rather than being confined to just one or a few areas you have a complete portfolio in one neat package. Understanding types of managed funds There are different types of managed funds to suit different investor profiles and to pursue different investment objectives. In general terms, managed funds can be divided into two categories; single sector funds and multi-sector funds. Single-sector funds will generally focus on one type of asset class, such as cash, fixed interest (eg Government Bonds), property, local shares or international shares. Multi-sector funds will spread across a range of these asset classes and will normally target a certain risk/return profile by having a weighting toward certain types of assets. The weighting will normally be indicated by a term such as “growth funds”, which invest predominantly in shares and property; “conservative funds”, which lean toward less volatile assets like fixed interest; and “balanced funds”, which are somewhere in between. Each managed fund has a statutory requirement to publish documentation, which will detail the fund’s particular objectives and the parameters for how it invests. This allows you to choose the fund that best matches your personal requirements. Profit from specialised skills Another benefit of pooling your investment through a managed fund is that you gain access to the investing expertise and manpower that they possess. A fund manager will have a range of skilled personnel with skills in researching, analysing and allocating the pool of money to achieve the fund’s stated objective. Personal investors can leverage this expertise to achieve a significant advantage in the quality of assets chosen, in contrast with having to do all the research and asset selection yourself. Keeping a watchful eye Monitoring and managing a portfolio of investments takes considerable time and skill. By using a managed fund you automatically have the day-to-day operational management taken care of. You can then simply look at periodical statements from the fund to see how it is performing and how it is moving its assets about to achieve its objectives. But what about the cost? The level of skill, buying power and convenience that managed funds offer will, of course, involve some cost to the investor. Regulation of the industry ensures that such fees and costs are declared in a fund’s promotional material so that they are transparent. While you may think twice about whether such fees are worth it, remember that an investment that you buy into directly, (such as an investment property or company share), will still involve some form of cost – often much greater than what you would pay with a managed fund. Buying an investment property, for example, will involve legal fees, stamp duty and inspection costs. Buying shares directly will incur brokerage costs. When you take this into account, the fees of a managed fund can represent very good value for the level of expertise and diversity they provide. Choosing a fund to suit you If you are interested in the benefits of a managed fund, then your financial adviser can help you assess the type of fund that suits you by making an assessment of your specific lifestyle objectives, time horizon and risk appetite. They should also have up-to-date research on managed fund performance, which can help you make informed choices on the fund or combination of managed funds that are right for you. What do you see as the main advantage of a managed fund? Share your thoughts below. Written by Bridges. Republished with permission of <a href="https://www.wyza.com.au/articles/money/financial-planning/what-are-managed-funds.aspx">Wyza.com.au</a>.

Retirement Income

Make your retirement funds go the distance

You only get one shot at going into retirement, so it is essential that you go in with your eyes wide open. That means being aware of where your income may be coming from, how to plan for living and recreational expenses, and making decisions that are balanced and have an eye on the long term. The earlier you start preparing, the more options you will have, so here are some top tips to get the ball rolling. Where do you stand now? Even if you haven’t been especially concerned about financial planning throughout your working life, it is important to do so as you enter retirement, where you are no longer able to rely on earned income. The first part of the planning process is to get a clear understanding of where you currently stand financially. What assets do you have and what are they worth? This includes your home, your savings and investments accounts, your superannuation, and your possessions. Key dates to be aware of The next step is to establish the key milestones as you transition to retirement. The first milestone is your “preservation age” — the age at which you can access your super. Provided you have retired from the workforce, the minimum preservation age is 55 years if you were born before July 1960. This age increases on a sliding scale up to age 60 for those born after June 1964. The second milestone is the age at which you are eligible for the age pension. For those born before July 1952, this will be 65. For those younger than that, it can be as high as age 67, depending on your date of birth. Eligibility also depends on the income and assets tests. Plan around your lifestyle decisions Once you know when your super and pension income will kick in, you can start to plan your finances around the lifestyle activities you want to engage in during the potentially long years of retirement ahead. For example, you may want to: <ul> <li>Travel in the earlier stages of retirement, before settling down</li> <li>Make some renovations around the home in the earlier years, so you don’t have to worry about them later</li> <li>Make major recreational purchases, such as a boat or motorhome</li> <li>Downsize your home or move to a retirement village down the track</li> </ul> Ideally, all of these major lifestyle decisions should be projected early, so that you can allocate funds for them, decide where those funds should be drawn from, and ensure that you have enough left to generate an ongoing income. Assess your income options Get a clear picture of where your retirement income may come from. This could include: <ul> <li>Income from super</li> <li>Investments outside super</li> <li>Part-time employment</li> <li>The age pension</li> <li>Home equity release or selling the family home</li> </ul> In assessing these income sources, you need to consider whether one may impact another. For example, selling the family home or working part-time may impact your age pension. Take full advantage of entitlements While the age pension on its own may not be enough to fund the lifestyle you want to enjoy, it can certainly be a handy supplement to your ongoing living income. Apart from the pension itself, there may also be other benefits, such as travel concessions, cheaper medicines, and reduced council and water rates, which can translate into a significant amount of savings every year. Structuring your investments to maximise entitlements is therefore a critical issue and some professional financial advice can make a big difference in that regard. Is work an option? Not everyone is particularly keen on making a sudden shift from full-time work to full-time leisure, so if you are still interested in continuing to work part-time, it can help you delay drawing down on your super and other assets. There are incentives within the social security system to encourage this, so seek advice to see how it may be a good option for you financially. Budgeting is essential There may be a temptation to splurge a little when you first receive a large lump sum from your super, but make sure you project your living expenses properly before taking the plunge. More than ever, a simple budget is essential to ensure you don’t outlive your income in retirement, so ask for advice and get things in writing to make it as tangible as possible. Don’t forget to include emergency funds in your budget to take care of any surprises or spikes in expenses, such as unexpected illness, a house move, or a family crisis. Get advice early As you can see from the factors mentioned here, there are many interconnected elements to planning income and expenses for retirement: speak to a financial planner to help put the puzzle together, structure a diversified investment strategy, maximise entitlements, and map out your lifestyle and living expense needs. What are your biggest concerns about getting through retirement without financial worry? Share your thoughts below. Written by Bridges. Republished with permission of <a href="https://www.wyza.com.au/articles/money/financial-planning/make-your-retirement-funds-go-the-distance.aspx">Wyza.com.au</a>.

Money & Banking

How much should I have in my emergency fund?

An emergency fund is exactly that - it’s the money that will tide you over when an emergency happens. This includes losing your job, having to pay for urgent home or car repairs, and to pay for medical and dental emergencies. Because it’s meant to be accessed quickly, you should keep your emergency funds in a liquid bank account. How much do I need? First you should know how much you spend in a month. Keep track of your expenses for three to four months. You should already start saving some money while you do this exercise. An emergency fund should only be used to cover the necessities and not the luxuries, which means bills such as transportation, utilities, groceries and your rent or mortgage. You should not be using this money for holidays or shopping. How much should I save? Once you know your monthly expenses, start working towards saving three months’ worth. For example, if you need $3000 a month to cover all your bills, you should have $9000 squared away for emergencies. Having that amount will give you peace of mind that you can weather the storm until you get back on your feet. While it’s a good start, three months’ worth of savings is not nearly enough to cover larger costs. For example, if you lose your job, it may take you several months to find a suitable replacement. Which is why you should keep going and work towards having six months’ worth of expenses set aside. One financial expert, former TV host Suze Orman, even advocates setting aside eight to 12 months’ worth of expenses to feel truly secure. How can I start saving money? No matter how much you earn, try sticking to the 50-20-30 rule. This means not more than 50 percent of your income should go towards living expenses and essentials, while 20 percent should go towards savings, investments and reducing your debt. The final 30 percent should be used for discretionary spending, such as travel, gifts and entertainment. Adjust your spending accordingly using the guide. For example, if you’re consistently exceeding 30 percent of your pay on discretionary spending, you might need to find cheaper entertainment alternatives or cut down on nights out. And if you’re just starting out, you might want to save a little more aggressively in order to squirrel away that emergency cash. Do I keep going once I complete my emergency fund? After you’re satisfied that the amount in your fund will keep you secure for a good amount of time, you should look into saving money for other purposes, such as buying a home of your own, or your retirement. You may even want to explore investing for potentially higher returns. Be aware though that investments come with risks, so you should speak with a qualified financial consultant whom you trust before committing to any investments. And, of course, if you ever need to withdraw from your emergency fund, you should start building it back up again as soon as you’re able. Written by Siti Rohani. This article first appeared in <a href="http://www.readersdigest.com.au/money/how-much-should-i-have-my-emergency-fund?items_per_page=All">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="https://www.isubscribe.com.au/Readers-Digest-Magazine-Subscription.cfm">here’s our best subscription offer</a>.

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What are managed funds?

Make your retirement funds go the distance

How much should I have in my emergency fund?