The share market has edged higher as gain by the banks and resource giants offset falls by Wesfarmers and Telstra, as earnings reports became available. The benchmark S&P ASX/200 index rose 0.14 per cent following modest gains on Wall Street. Qantas lifted five cents to a four-month high of $3.45 after unveiling another $500 million capital return, including the resumption of its dividend after a seven years drought. International investors are keenly awaiting US Federal Reserve chair Janet Yellen's speech at the central bank's meeting on Friday for any clues on the timing of a rate hike.



What does this mean for you?

The 7 year wait for a Qantas dividend is a perfect example of how we sometimes need to be patient for our returns. It's also an example of how dangerous it can be to limit your investment choices to just a few different companies. While Qantas shareholders have been waiting for a dividend, those who have invested in the broad International Index have received a return of 11.14% over the same time, and even our own Australian market has returned 8.69%. If you don't diversify, you can certainly miss the returns that you're entitled to as an investor.
The June quarter just passed shows contributions to Super fell by $800 million compared to the same period last year, showing that investors have been somewhat scared off by the government changes announced in the May budget. Our advice is to still make use of superannuation as the most tax-favourable investment vehicle around. And if you're worried about the government "getting their hands into it" consider a self-managed super fund, where you'll have the highest level of transparency. If you've got a balance of over $200,000, an SMSF may be an option for you.