Why do Australians Contribute to Super?
Superannuation is the Australian Government’s answer to creating a sustainable retirement strategy for our growing population. To encourage us to grow our retirement nest egg, the Government has made Super a very attractive place to invest our money.
What is the price-earnings ratio (P/E)?
The price-earnings ratio (P/E) is a share valuation metric commonly quoted in the financial media. The formula to calculate the P/E ratio is the company’s share price divided by its earnings (or profit) per share.
What is a stock market crash?
Defined: A stock market crash / share market crash is a rapid sell-off or falls in asset prices, like shares / stocks, bonds or property.
Defined: Small Cap, Mid Cap and Blue Chip
Defined: Small Cap, Mid Cap and Blue Chip. In the financial media, you’ll often hear the words, ‘small cap’, ‘mid cap’ and ‘blue chip’, so it’s important to understand what they mean.
What is the ASX 200?
The S&P/ASX 200 is an Australian stock market index, created and maintained by Standard & Poor’s (S&P). It tracks the value of the 200 largest public companies ranked by their market capitalisation, and adjusted for the shares that are actually available on the market.
What is diversification?
Diversification is a portfolio management technique used to lower the risk of an investment portfolio.
What is an Exchange Traded Fund (ETF)?
Defined: An Exchange Traded Fund or ETF is simply a managed fund (mutual fund) that is listed on the stock exchange.
What is an Index Fund?
An index fund is a type of managed fund (also known as a ‘mutual fund’) which tracks a popular financial index, like the Dow Jones Industrial Average or Australia’s ASX 200.
What is a managed fund?
A managed fund is a pool of money managed by a professional funds management company.
What are franking credits?
Franking credits are a tax credit available to eligible shareholders of Australian companies. They are also called imputation credits.
How does tax work in Australia?
The Australian tax system works by charging a higher tax rate for those who earn a higher income. It is a marginal income tax system.
Beginner Superannuation Course Quiz!
Test your knowledge of superannuation with our Beginner Super Quiz!