Johanna Leggatt

3 weeks ago | forbes.com | Taylor Tepper |Johanna Leggatt

For much of the past 15 years, savers have contended with accounts that yielded close to nothing. That all changed after the COVID-19 pandemic when you could finally park your cash in a high-yield savings account and earn a decent interest rate. Rather than being the exception, this was the experience of savers prior to the Great Recession. Whether or not the era of (relatively) high rates is over depends on how well the economy performs and how the Federal Reserve responds.

Dec 10, 2024 | forbes.com | Sophie Venz |Benjamin Curry |Johanna Leggatt

Bonds are priced in the secondary market based on their face value, or par. Bonds that are priced above par—higher than face value—are said to trade at a premium, while bonds that are priced below their face value—below par—trade at a discount. Like any other asset, bond prices depend on supply and demand. But credit ratings and market interest rates play big roles in pricing, too.

Dec 10, 2024 | forbes.com | Johanna Leggatt

RBA Governor Michele Bullock has acknowledged that two years of rate hikes has been devastating to some Australians. “…There are households really struggling to make ends meet,” she said at a press conference after the Board voted to hold the cash rate steady last May. “These people don’t have a lot of extra savings, they might be working a second job, cutting back on discretionary items or making difficult decisions such as putting off medical appointments.

Dec 8, 2024 | forbes.com | Patrick McGimpsey |Johanna Leggatt

The All Ordinaries Index comprises approximately 500 of the largest companies by value listed on the Australian Securities Exchange (ASX). Like the scoreboard at a sports match, the All Ords reflects the stock market’s state at any given time. The composition of these 500 companies isn’t constant. They can vary based on market capitalisation, a term that signifies the total value of a company’s outstanding shares.

Dec 2, 2024 | forbes.com | Johanna Leggatt |Benjamin Curry

With compound interest, you’re not just earning interest on your principal balance. As ASIC’s Moneysmart site points out, even your interest earns interest. Compound interest is when you add the earned interest back into your principal balance, which then earns you even more interest, compounding your returns. This is what occurs in our superannuation system as well as when we reinvest the dividends from our shares back into our portfolios.