Frankly, the Election was a Boomer Victory over their own Kids

By the time I headed off to bed last Saturday the federal election was effectively over, with Labor leader Bill Shorten conceded that it was unlikely that Labor would win the seats required to form government.

The election result came as a surprise to many political pundits, given that most polls had predicted a comfortable Labor win in the run-up to the election.

As I write this, the Liberal/National coalition has secured 78 seats, ensuring a majority for the new Morrison government in the upcoming 46th Parliament of Australia.

Waking up to a cold Sunday morning with the previous day’s election result rattling around in my head I decided that a ride to the hills was in order. Donning copious layers of cycling gear to ward off the chill, I pointed my trusty bike in the direction of Eltham and off I rode.

Leaving early, my route took me through a still sleepy Brunswick, the inner-city suburb just north of Melbourne, out through Heidelberg and finally to Eltham, nestled at the foothills of the Shire of Nillumbik in Melbourne’s outer east.

Elated in Eltham, Bummed in Brunswick

Eltham sits in the electorate of Menzies, and the incumbent Liberal candidate, Kevin Andrews, comfortably retained his seat with a Two Candidate Preferred (TCP) vote of 57%.  Having a well-earned brekky at the Eltham shopping strip it was hard not to notice two distinct themes.

Firstly, I was surrounded by people in their mid-fifties and beyond, a demographic oft-labelled “Baby Boomers”. Secondly, these Boomers were (from their demeanour and the bits of conversation I caught), thrilled that the Coalition government had been returned for another term in office. It was fair to say that the mood in Eltham that Sunday morning was positively “chipper”.   

The ride home took me through the heart of Gen Y-centric Brunswick, in the electorate of Wills, where Labor’s Peter Khalil held off a stern challenge from The Greens. There the cafés lining ultra-hip Lygon Street told a very different story.

The mood in Brunswick was distinctly more sombre, with none of the energy pulsating around Eltham. Poker-faced twenty and thirty-something Millennials sat huddled in cafes in quiet contemplation.

In the few short hours I spent riding that day I saw the two sides of the election outcome; the winners and the also-rans. And as a Gen X, wedged between the Boomers and their Gen Y kids, I find myself asking one question: what exactly happened on Saturday 18th May and what does it mean for the various generations?

Read on to find out…

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2018 Investment Year in Review

Reading Time: 10 minutes

Key Take-outs

  • The comfy armchair ride global share investors experience during 2017 turned into a white-knuckled roller-coaster in 2018.
  • Key global share markets came under significant selling pressure from September on, with the US market falling sharply as the year ended.
  • After starting to fall in late 2017, residential property price falls accelerated in Sydney and Melbourne during 2018, while Hobart rose strongly.
  • Cryptocurrency, the investment mania of 2017, crashed in spectacular fashion, with Bitcoin falling 80% during 2018 .
  • 2018 proved there is no such thing as riskless returns, and that the occasional burst of volatility is the price of admission that all investors have to pay to receive returns better than Cash (i.e. 0% p.a. after inflation and before tax).
  • Low-cost diversification is still the single best way to get your fair share of market returns without flaming out on a single bet (ahem, #CryptoLife).

In our 2018 Financial Year in Review (for the year to 30 June 2018) we spoke about the unusual calm that had dominated markets during 2017, noting that “… 2017 produced a Goldilocks-like investment environment of steadily rising asset valuations.”

Unfortunately, as anyone who is familiar with the fairy tale knows, Goldilocks made herself at home in a stranger’s house, assuming it was a riskless act, only to be surprised by three angry bears unimpressed by her sense of self-entitlement.

As with Goldilocks, many share investors were lulled into a false sense of security during 2018, only to be mauled by a bear of a market.

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5 ways to take control of your finances in your 20s

For many, your twenties are the years in which your finances are the most stretched. You’re probably trying to save for a house, a new car or a trip, as well as trying to keep up appearances at all the social events. But it’s also the time in your life when you should be setting yourself up to be financially secure for years to come.

So how do you balance it all and learn to take control of your finances?

We asked Bessie Hassan, money expert at finder.com.au for her 5 tips on how to get yourself on the road to financial freedom.
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Get started on your #finfreedom with our Investing 101 guide

Investing is one of the best things you can do for your money, but taking the plunge can be a daunting one, especially if you’re new. That’s why we created a beginner’s guide – to help you along, step-by-step, to become a savvy investor equipped with the basics to make an informed decision about how investing can help you reach your financial goals.

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Australia’s housing affordability woes: Part 1

couple in house with boxes

Australia’s home affordability woes have impacted a whole generation of young Australians now facing the daunting challenge of breaking into the property market.

Clover Co-Founder Harry Chemay explains why ownership rates among young Australians, particularly those under the age of 35, have experienced a significant decline over the last four decades.

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4 things you need to do before you start investing

A research report from RMIT on women and money in Australia found that 48% of women were not willing to take any financial risks at all. For many women, their hard earned savings is not something they are prepared to risk.

A common perception of your typical investor is what we see in mainstream media from movies like The Wolf of Wall Street. What we aren’t shown is that there are several ways to invest and many of them don’t involve speculating on hot stocks.

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5 ways to avoid debt in your 20s

Hands opening up an empty wallet

 

Ah, your sweet 20s. It’s absolutely guaranteed that you will have one sack full of adventures and another full of mistakes.

But that doesn’t mean you don’t need to think about what financial shape you’ll be in once you do say hello to that inevitable 30th birthday. Because it’s about then that you may be wondering about buying a house, starting a family, and perhaps even planning for the future with healthy personal finance habits in the bank.

Saving in your 20s is hard, and racking up a mountain of debt is easy. But don’t fret – it’s never too late to start blasting that 20-something debt and setting off on the road to a bright financial future.
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Why more women need to be investing

Woman growing her wealth

From market research and speaking to our customers, we discovered that women know investing is a great way to grow their savings, but many feel that it’s out of their reach or too risky.

When anyone invests, it isn’t just about growing their wealth, it’s a pathway to financial independence. It’s not enough to just be saving in a cash account, especially after you take tax and inflation into account . Investing does carry risks but smart investing is about balancing risks with rewards.

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