THE ONE THAT GOT AWAY
The only measure rejected by the government was that self-managed superannuation funds should be banned from borrowing to buy assets such as property and shares.
SHAREMARKET TRENDS
Research indicates that that markets and individual share prices tend to follow trends.
This 'price momentum' is attributed to long-standing behavioral biases and/or the activities of central banks and corporate hedging programs.
In the early years it might be for a bike. In later years it may be for a car, or even for a horse! If their investments grow enough, the goal may change to the deposit for a home.
Let them choose, and watch their enthusiasm grow as they approach their savings targets.
CONCESSION CARDS
The good news is that if you lose your entitlement to the age pension because of the changes to the asset test, you will automatically be issued with a Commonwealth Seniors Health Card.
BUT NO INTEREST FREE PURCHASE PERIOD
Remember that the ‘up to 55 day interest free’ period for new purchases, only applies when the balance is paid off in full by the due date, so if you are taking advantage of a balance transfer interest holiday, any new purchases will incur interest from day one – in this case at a rate of 20% per annum.
SPLIT THE DIFFERENCE
These days most lenders offer split loans, so you can fix a portion of your loan but retain the ability to make extra payments if circumstances allow.
