Last month Money turned 20 and as a part of its celebration the magazine ran a series of social media posts about the varying prices of goods since 1999. In essence, the social posts remind us the dollar doesn’t stretch as far as it once did. A quick check of the Reserve Bank’s inflation calculator suggests a $1 bag of lollies in 1999 would have cost you $1.66 in 2018 – a 65.6% increase in 19 years. Would my 12-year-old self in 1999 have bought the same lolly bag in 2018 at its new price? That’s a tough question, but I’m sure, like any good consumer, I would have weighed up my options.
For the purposes of this story, a $10,000 basket of goods and services in 1999 was valued at $16,558 in 2018 (based on inflation only).
Dial the clock back 50 years to 1968 and you could buy a home in an Australian capital city for $10,000 or less. Nowadays this is barely the beginnings of a home deposit. However, the inflation calculator tells us that same $10,000 in 1968 would now be equivalent to $123,825 – and possibly enough for a home deposit depending where you buy.
So if you’re in the fortunate position to have a spare $10,000 in 2019, where should you invest?
This annual Money magazine cover story is a question that always challenges even the most experienced financial professionals and once again we’ve approached eight experts to give their views.
From investing in exchange traded funds