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Although investors should not aim only to minimise costs, fees eat into compounded returns over the long term. Markets are competitive and it is possible to invest a diversified portfolio for negligible cost.
Young people hold the majority of home loans while older people have the vast majority of deposits. It's not hard to see why rising interest rates are hurting the young and resulting in increased intergenerational tension.
One of the major questions confronting investors is the portfolio weighting towards Australian banks in an environment of rising rates. Do the recent price falls represent value or are too many bad debts coming?
Continuing our look at 'safe havens', gold and bank deposits are often considered alternatives to 'risky' shares. How have they performed in times of stress, and do they rate as long-term investments at other times?
A range of factors determine interest rates, and the yield curve reflects expectations of the future. Even if interest rates look low, waiting to invest is attempting to outguess the market.
Whether you borrow or deposit or pay fees, a general understanding of how bank pricing committees determine the rates and charges for their products could provide the negotiating edge you need to get a better deal.
* APRA has announced the final version of the government guarantee on deposits, requiring a Single Customer View from any ADI.
Anyone responsible for product design and pricing in the superannuation industry needs an understanding of the revised Australian Prudential Standards on bank liquidity. Some creative solutions may be needed.