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Tag: Mortgages

What is the most inspiring piece of financial advice you’ve heard. Who gave it, and how did it help you?

Once upon a time, in the early 70s, there was an evil scientist named Walter Mischel. (Evil might be a bit harsh, but the best stories have evil scientists.) Wally decided to experiment on small animals with some reasoning skills – Generation X toddlers. Individually, he locked them in a room with one marshmallow. He […]

Winning lotto is unlikely but we can always dream. What should you do with a $1 million windfall?

Say to yourself: “Cool! One million down, one million to go”. On its own, it’s not retirement material for a Gen Xer. Or, at least it shouldn’t be. A million bucks ain’t what it used to be. While it’s not a bad start, Xers should be aiming higher than that. (And, funny, this is the […]

How do you work out how much money you’ll need in retirement, and how do you plan for it?

“Price check, aisle four! Price on a medium-sized tropical island, 50-room palace, 100 staff, world-class golf course, an endless supply of Bollinger and Bintang, an airstrip and a dozen watercraft? Oh, and heaps of those electric golf cart thingys.” Could you get bored of that? Um, no. I forgot to mention the Lear jet. Just […]

Fixed versus variable mortgage rates: how do you work out which one you should choose?

“I know what you’re thinking. Did he fire six shots, or only five … you’ve got to ask yourself one question: ‘Do you feel lucky?’ Well, do ya punk?” Thank you Dirty Harry. Interest rates are that 44 Magnum and getting the fixed rates equation wrong could “blow your head clean off” in a financial […]

What are three key questions you should ask yourself before taking on any new debt?

Unfair! The question seems to presuppose that debt is bad. Sure, some of it is pretty nasty. But not all debt. Oh, no-sir-eee. Some debt is actually okay. For example, a mortgage. Know any Gen Xers who bought their first house with savings? Mortgages help you buy what will one day be your biggest asset. […]

What are three worthwhile goals to set for the new financial year, and can you share one of yours?

Click here to download Debt Man Investment Newsletter #45 It’s an immortal movie scene. Cuba Gooding Jr is on the phone, half-naked, dancing around his kitchen. The guy on the other end of the line is screaming. Tom Cruise (Jerry Maguire) is prepared to say anything. “SHOW ME THE MONEY!” he shouts repeatedly. Jerry’s desperate. […]

As interest rates head lower, what are some of the best ways to make this benefit your finances?

Something to cheer about? “Yeah, yeah!” There would really be something to celebrate if the bastard banks had passed on the cuts in full. No generation has more to gain from lower rates than Gen X. To generalise, our generation is geared to the gizzards. (It’s Aunty Kerrin’s retirees who are going to suffer.) Monster […]

Falling property prices have renewed the debate about renting versus buying a home. What are your views?

Listen up: If rent money is “dead” money, it’s no more “dead” money than mortgage interest. So, that is what you compare. Short term, renting is far cheaper. Long term, however, buying … kicks … ass. Let’s assume two identical houses, side by side. One is up for rent, the other for sale. The rent […]

How to fund kids’ education

January is a pretty good time to be alive in Australia. The sun’s out. The tennis is on. We’re annihilating India by complete innings. Driving to work’s a breeze. Beer tastes better. The extra daylight hours knacker the kids. It’s Happy Days, without Richie Cunningham’s moaning. February brings reality. Traffic returns to chaos. The workload returns […]