Angel Zhong

New findings from Super Consumers Australia show an estimated 15.7 million Australians may not have a binding death benefit nomination. An RMIT expert explains why this exposes a major gap between what people think they are doing with their retirement savings and what the law actually allows them to control.

Professor Angel Zhong, School of Economics, Finance and Marketing: “Many Australians assume that if they have written down who they want to receive their money, their wishes will automatically be followed. Superannuation does not work that way.

“This is a financial literacy problem, but it is also a design problem. We cannot expect consumers to understand a complicated legal distinction between binding and non-binding nominations if funds are not making that distinction clear and prompting members to act.

“For something as important as deciding who receives your lifetime savings, relying on passive communication is not enough. Super funds should be actively prompting members at key life events and making the process simple.

“The lesson for Australians is simple: do not assume your will tells your super fund what to do. Check your nomination, make sure it is legally binding if that is what you intend, and check whether it needs to be renewed.”

By Dr Angel Zhong, Professor of Finance

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Angel Zhong

The South Korean stock market has plunged almost 40 per cent over the last few weeks, wiping billions from investor wealth. An RMIT expert says the sell-off is a stark reminder that market enthusiasm for AI can quickly outpace economic reality.

Professor Angel Zhong, School of Economics, Finance and Marketing: “What we’re seeing in South Korea is a reminder of how quickly technology narratives can translate into market enthusiasm, and how quickly that enthusiasm can reverse.

“The AI revolution is creating genuine economic opportunities, but markets often price in expectations long before those benefits are fully realised.

“When investors become heavily concentrated in a single theme, whether that’s AI infrastructure, semiconductors or any other high-growth story, valuations can drift away from underlying fundamentals.

“The key takeaway is not the decline in share prices, but how leverage amplified both the gains and the losses.

“Investors should be careful not to mistake a correction in market sentiment for a failure of underlying technology. AI will continue to transform industries, but markets often move through cycles of exuberance and reassessment.

“Financial literacy is more important than ever in an environment where technology, social media and low-friction trading platforms can rapidly draw investors into speculative trends.”

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Angel Zhong

A record number of exchange traded funds (ETFs) are now listed on the ASX, giving Australians more investment choice than ever before. As ETFs become an increasingly popular way to start investing, an RMIT expert explains what investors should look for to understand the risks and choose the right fund.

Professor Angel Zhong, School of Economics, Finance and Marketing:  “For many young Australians ETFs have become an entry point into investing and have recently surged in popularity due to their low cost, easy access and ability to provide diversification through a single trade.

“Housing affordability is also pushing more young Australians toward ETFs. With home ownership feeling out of reach for many, investing in shares has become a more realistic way to build wealth early.

“However, it is important to understand what you actually own when purchasing an EFT.

“Before investing, you should check what is actually driving the return. Does the fund use leverage? Is it tracking a broad index or a narrow theme? What are the fees and how liquid is the market? It is important to understand the risk profile of the product being bought.

“Diversification can also become an illusion. An investor might hold several different technology ETFs and believe they are diversified simply because they own multiple funds. But if those funds hold many of the same companies, they are really making the same bet multiple times.”

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