Oh Donald, you’ve done it again! This time the US President is tweeting against Jeff Bezos, the founder of Amazon, and his company's tax-paying practices and its business-crushing ways are in his sights.
It doesn’t help that Jeff also owns the Washington Post, privately, and this August chronicle of the day has been called anti-Trump.
Amazon’s share price was down $75 or 5.21%. It was at $1,566 stock two weeks ago but it’s now $1,371. The stock has been trumped to the tune of 12% over the past two weeks!
The Dow was down 458 points overnight, which means Donald will be the cause for our market falling today. And I also blame God for the expected fall. That’s because we celebrated Easter Monday by closing our stock market and it would’ve gone up if we were like the Yanks who don’t have a public holiday.
So, with Donald and God hurting our stock portfolios and super balances, I thought I’d rescue your bottom lines by getting you to review your money plays.
Nowadays, low interest rates and other comparison websites make it easy for any of us to reduce our spending, our repayments and our debt.
Check these rates I’ve found yesterday for the common financial products that create our debts:
• Credit card: The Westpac Lite card has a 9.9% interest rate but there’s a $108 annual fee, however there are no foreign transaction fees. Other credit cards can be between 17-21%!
• Home Loan: the best standard variable rate I found was loans.com.au at 3.52% (advertised rate) and 3.54% (comparison rate) but that’s an online loan.
Aussie Home Loans had a 3.79%, which was 3.86% as a comparison rate.
Switzer Home Loans were at 3.89% for advertised and comparison rates.
Personal Loans: Pepper Money at 9.99% (comparison rate) and Society One at 9.51% (comparison rate).
Warning: Be careful of TV advertised personal loans. They sound convenient but they often are very expensive! Shop around and go to websites such as Rate City, finder.com.au, iSelect.com.au and check out the best rates.
Why do I look at the comparison rate, you might be asking?
That’s because advertised rates can be low but once you add in the fees the real rate you pay or the comparison rate can be much higher. One fixed home loan rate was advertised at a great and low 3.49%, but its comparison rate was, wait for it… 4.49%!
My tip is to go and look at everything you pay out on and see if you can get a better deal to kill your debt as quickly as you can.
My colleague at Switzer Home Loans, Adrian Sheahan, did some figuring for me on what you can save by getting the best rate of interest.
The average Home Loan in Australia is a bit over $350,000 so I have assumed: A loan amount of $350k; a current rate of 5% and a refinance rate of 4% and the loan term is 25 years.
If you switch to the lower rate you will save approximately $59,500 over the life of the loan just by paying the minimum repayments. If you get clever and retain the repayment level that you are paying on the 5.00% loan, you will save an additional $35,000.
So by switching from a loan with a rate of 5% to a 4% product and maintaining your repayment level, you can save almost $95,000 over the term of the loan!
And remember that was for a $350,000 loan, so if yours is double that then you can double your saving!
Donald might be a money-killer at the moment, while God was an accidental problem for our stocks for a day, but the biggest threat to your wealth is you.
If you don’t change the financial products that are sending you to the poor house, then your poverty or lack of financial success are all down to little old you!