# Wealth Investors > Financial Wellbeing --- ## Pages - [Wealth Investors Videos](https://wealthinvestors.com.au/wealth-investors-videos/): Home https://youtube. com/shorts/r3kncS5IQ8c? si=4n9faHbXhkk53waohttps://youtube. com/shorts/GHvMZIlExZM? si=CR-yFFVfpZLJhI1V - [Wealth Investors Overview](https://wealthinvestors.com.au/wealth-investors-overview/): Home https://www. youtube. com/watch? v=qG_L2xXfqxU - [Hear From Our Clients](https://wealthinvestors.com.au/hear-from-our-clients/): custom slogan Home https://youtu. be/TFvD3PMe794https://youtu. be/iVL_-edu71M - [Video test](https://wealthinvestors.com.au/video-test/): Home https://www. youtube. com/watch? v=qG_L2xXfqxU Client testimonials https://youtu. be/TFvD3PMe794https://youtu. be/iVL_-edu71M - [Services](https://wealthinvestors.com.au/services/): What we do We develop tailored step-by-step financial strategies and help you make informed decisions about your money. SuperannuationSuperannuation is... - [Our Investment Philosophy](https://wealthinvestors.com.au/investment-philosophy/): custom slogan Home "An investment in knowledge pays the best interest" Benjamin FranklinOur investment approach is grounded in economic theory... - [Knowledge Centre](https://wealthinvestors.com.au/knowledge-centre/): custom slogan Home Wealth Knowledge "An investment in knowledge pays the best interest" Benjamin FranklinOur Wealth Knowledge portal is designed... - [MailChimp Test](https://wealthinvestors.com.au/mailchimp-test/): A Simple Slogan Testing mailchimp code Home Classic #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } /* Add your own Mailchimp form style... - [Our Process](https://wealthinvestors.com.au/process/): Home Our Proven Process helps us get to know you – your passions, goals, needs and wants. From there, we... - [Our People](https://wealthinvestors.com.au/people/): Home An intro for the team at . Chris YoussefDirector | Private Wealth Adviser Frances CruzClient Services Manager - [When We Help](https://wealthinvestors.com.au/when-we-help/): Home At , our goal is to help you reach your potential, whether you are just getting started, building your... - [landing page](https://wealthinvestors.com.au/landing-page/): 5 Steps To Mastering Your Money In this free ebook we share 5 important steps to help you be the... - [Terms & Conditions](https://wealthinvestors.com.au/terms-conditions/): Home Your content here. - [Privacy Policy](https://wealthinvestors.com.au/privacy-policy/): Home Your content here. - [Financial Services Guide](https://wealthinvestors.com.au/financial-services-guide/): Home Click here to Read our Financial Services Guide - [Contact Us](https://wealthinvestors.com.au/contact/): Home Contact Address Operating Hours CONTACT - [Our Expertise](https://wealthinvestors.com.au/our-expertise/): Home At , we develop tailored step-by-step financial strategies and help you make informed decisions about your money. Cashflow modellingInvestment... - [Who We Are](https://wealthinvestors.com.au/who-we-are/): custom slogan Home Why should you work with us? We will give you the education and guidance to help you... - [Home](https://wealthinvestors.com.au/): Award-winning Melbourne financial advisors helping you stress less, plan ahead and build lasting wealth. Book your free consultation today. --- ## Posts - [Forging new bonds – how bonds work](https://wealthinvestors.com.au/insights/forging-new-bonds-how-bonds-work/): Bonds are not usually the flashy upstarts of the investment world with their every move reported, like stocks. But the... - [The generation redefining aging](https://wealthinvestors.com.au/insights/the-generation-redefining-aging/): As we advance into the 21st century, the concept of aging is undergoing a transformation, largely thanks to a new... - [How to financially ease into retirement](https://wealthinvestors.com.au/insights/how-to-financially-ease-into-retirement/): Deciding when to retire is a big decision and even more difficult if you are concerned about your retirement income.... - [Guiding the way: the art of effective leadership](https://wealthinvestors.com.au/insights/guiding-the-way-the-art-of-effective-leadership/): ‘A leader is one who knows the way, goes the way and shows the way. ’ – John Maxwell What... - [Finding life balance: 4 pillars to your wellbeing](https://wealthinvestors.com.au/insights/finding-life-balance-4-pillars-to-your-wellbeing/): We’re all trying to live our best lives, right? Sometimes, we get stuck in one area – whether it’s spending... - [Market movements and review video – April 2025](https://wealthinvestors.com.au/insights/market-movements-and-review-video-april-2025/): Stay up to date with what’s happened in the Australian economy and markets over the past month. Following March’s Federal... - [Big changes ahead for Aged Care](https://wealthinvestors.com.au/insights/big-changes-ahead-for-aged-care/): The number of Australians aged over 65 is expected to more than double in the next 40 years while the... - [Federal Budget 2025-26 Analysis](https://wealthinvestors.com.au/insights/federal-budget-2025-26-analysis/): Treasurer aims to “rebuild living standards” Much of the 2025 Federal Budget was already known, after a volley of pre-election... - [Combining work and play when you’re away](https://wealthinvestors.com.au/insights/combining-work-and-play-when-youre-away/): For years it was thought that technology would make business travel obsolete, but as anyone who has had to suffer... - [Forget forgetting – simple ways to improve your memory](https://wealthinvestors.com.au/insights/forget-forgetting-simple-ways-to-improve-your-memory/): We’ve all heard the old saying ‘an elephant never forgets’- but unlike elephants, we humans certainly don’t have flawless recall.... - [5 ways to boost your super](https://wealthinvestors.com.au/insights/5-ways-to-boost-your-super/): What’s your super strategy? Did you know it’s likely you’ll spend up to two or more decades in retirement? It’s... - [Turbocharge your super before 30 June](https://wealthinvestors.com.au/insights/turbocharge-your-super-before-30-june/): More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s Moneysmart website.... - [How political events affect the markets](https://wealthinvestors.com.au/insights/how-political-events-affect-the-markets/): From the economy bending policies of Trump 2. 0 to the growing strength of the far right in Europe, the... - [The benefits of automating your personal finances](https://wealthinvestors.com.au/insights/the-benefits-of-automating-your-personal-finances/): In today’s fast-paced world, where every minute counts, managing personal finances can feel like another tedious task. However, thanks to... - [Granny flats: tax traps and tips](https://wealthinvestors.com.au/insights/granny-flats-tax-traps-and-tips/): With more older Australians looking to downsize and younger generations looking to get a foot on the property ladder, building... - [Thinking about an SMSF? Here’s what you need to know](https://wealthinvestors.com.au/insights/thinking-about-an-smsf-heres-what-you-need-to-know/): Some investors find it satisfying to take a do-it-yourself approach to retirement savings – taking on the responsibility for the... - [Market movements and review video – February 2025](https://wealthinvestors.com.au/insights/market-movements-and-review-video-february-2025/): Stay up to date with what’s happened in the Australian economy and markets over the past month. Headline inflation eased... - [Things to do today that your future self will thank you for](https://wealthinvestors.com.au/insights/things-to-do-today-that-your-future-self-will-thank-you-for/): Achieving your long-term financial goals doesn’t need to be overwhelming. If you can put in place some basic financial steps,... - [Is a retirement village right for you?](https://wealthinvestors.com.au/insights/is-a-retirement-village-right-for-you/): The retirement living sector is growing rapidly in Australia as the population ages and demand increases for a spot in... - [2024 Year in Review: Successfully navigating uncertain times](https://wealthinvestors.com.au/insights/2024-year-in-review-successfully-navigating-uncertain-times/): The many unpredictable events of 2024 could easily have been disastrous for investment markets. Instead, we saw remarkable resilience and... - [Say yes – what’s the best that could happen?](https://wealthinvestors.com.au/insights/say-yes-whats-the-best-that-could-happen/): As we step into a new year, it’s a good opportunity to think about what we want to embrace and... - [Keeping records for property](https://wealthinvestors.com.au/insights/keeping-records-for-property/): Which records to keep for your property so you can work out CGT when you sell it. Property records you... - [Surviving the silly season](https://wealthinvestors.com.au/insights/surviving-the-silly-season/): Ah, Christmas! – the time of year when your bank account shrinks, your social calendar explodes, and your family dynamics... - [Gifting for future generations](https://wealthinvestors.com.au/insights/gifting-for-future-generations/): At this time of year, when giving is particularly on our minds, some might turn their attention to how best... - [Dollar cost averaging: can it work for you?](https://wealthinvestors.com.au/insights/dollar-cost-averaging-can-it-work-for-you/): Australian share prices have seen record highs in 2024 after a sluggish couple of years. The S&P ASX200 index added... - [Market movements and review video – December 2024](https://wealthinvestors.com.au/insights/market-movements-and-review-video-december-2024/): Stay up to date with what’s happened in the Australian economy and markets over the past month. While headline inflation... - [Super vs property: what works for retirement income?](https://wealthinvestors.com.au/insights/super-vs-property-what-works-for-retirement-income/): There is no debate that Australians love investing in property. The value of Australian residential real estate at the end... - [Flying solo: tips for successful buying](https://wealthinvestors.com.au/insights/flying-solo-tips-for-successful-buying/): For those who are wanting to get started on the homebuying journey, going it alone can have its challenges compared... - [Helping the kids without derailing your retirement plans](https://wealthinvestors.com.au/insights/helping-the-kids-without-derailing-your-retirement-plans/): As parents, the instinct to support our children never truly fades, even when they become adults but when you are... - [Market movements and review video – November 2024](https://wealthinvestors.com.au/insights/market-movements-and-review-video-november-2024/): Stay up to date with what’s happened in the Australian economy and markets over the past month. Welcome news on... - [Harnessing the double edge sword of tech](https://wealthinvestors.com.au/insights/harnessing-the-double-edge-sword-of-tech/): In our fast-paced digital world, technology often feels like a double-edged sword. On one hand, it offers incredible opportunities for... - [Unlocking success: lessons from the world’s best investors](https://wealthinvestors.com.au/insights/unlocking-success-lessons-from-the-worlds-best-investors/): While effective investing is crucial for wealth creation, there is a lot to know and many pitfalls to avoid, as... - [The Age Pension and your retirement plans](https://wealthinvestors.com.au/insights/the-age-pension-and-your-retirement-plans/): Most people intend to retire between ages 65 and 66, according to the latest data and, surprisingly, despite growing superannuation... - [Estate planning gives you a final say](https://wealthinvestors.com.au/insights/estate-planning-gives-you-a-final-say/): Planning for what happens when you pass away or become incapacitated is an important way of protecting those you care... - [Insuring against loss of income](https://wealthinvestors.com.au/insights/insuring-against-loss-of-income/): Protecting income from unexpected illness and injury is particularly important to anyone with a mortgage to service, small business owners... - [Clean out the cobwebs and freshen up your professional and personal life](https://wealthinvestors.com.au/insights/clean-out-the-cobwebs-and-freshen-up-your-professional-and-personal-life/): As the seasons change and the air fills with the promise of renewal, it’s the perfect time to have a... - [Holidaying off the tourist trail](https://wealthinvestors.com.au/insights/holidaying-off-the-tourist-trail/): When we dream of an overseas holiday, our minds often drift to iconic landmarks, bustling cities, and well-trodden tourist paths.... - [Market movements and review video – September 2024](https://wealthinvestors.com.au/insights/market-movements-and-review-video-september-2024/): Stay up to date with what’s happened in Australian markets over the past month. Global stock markets – including the... - [How do retirement income options compare?](https://wealthinvestors.com.au/insights/how-do-retirement-income-options-compare/): Retirement is filled with opportunities and choices. There’s the time to travel more, work on long-delayed personal projects or volunteer... - [When passion is the purpose of investing](https://wealthinvestors.com.au/insights/when-passion-is-the-purpose-of-investing/): Investing is often considered best undertaken with a cool head and heart. But for some investors, passion is the whole... - [Releasing the value in your home](https://wealthinvestors.com.au/insights/releasing-the-value-in-your-home/): Rising property prices have led many people to look for ways to unlock the increased equity in their homes so... - [Investing cycles – Lessons from the Magnificent 7](https://wealthinvestors.com.au/insights/investing-cycles-lessons-from-the-magnificent-7/): When it comes to investing in shares, it’s often said that time is your friend. The data shows that investing... - [Ready, Set, Goals – Is it time for a mid-year check-in?](https://wealthinvestors.com.au/insights/ready-set-goals-is-it-time-for-a-mid-year-check-in/): Making time throughout the year to review and reassess the goals you set at the beginning of the year is... - [To sell or not to sell is the question for moving into aged care](https://wealthinvestors.com.au/insights/to-sell-or-not-to-sell-is-the-question-for-moving-into-aged-care/): Moving into residential aged care can trigger a range of emotions, particularly if it involves the sale of the family... - [When DIY does not pay off](https://wealthinvestors.com.au/insights/when-diy-does-not-pay-off/): “If you want something done right, you’ve got to do it yourself” Not necessarily! The appeal of doing it yourself... - [Market movements and review video – July 2024](https://wealthinvestors.com.au/insights/market-movements-and-review-video-july-2024/): Stay up to date with what’s happened in markets and the Australian economy over the past month. Despite some signs... - [Going for Gold](https://wealthinvestors.com.au/insights/going-for-gold/): Gold fever is in the air and it’s not just the prospect of medals at the upcoming Paris Olympics. Gold... - [Preparing your family trust for EOFY](https://wealthinvestors.com.au/insights/preparing-your-family-trust-for-eofy/): With less than a month to go before the end of the financial year (EOFY) rolls around, some important tasks... - [Investment Property: Getting it right](https://wealthinvestors.com.au/insights/investment-property-getting-it-right/): With property remaining a high-priced asset, it’s more important than ever for investors to ensure their property investments are a... - [Enjoy the now and secure your future](https://wealthinvestors.com.au/insights/enjoy-the-now-and-secure-your-future/): Managing your financial situation always involves tension between how you live your life now and preparing for your future –... - [What’s all the noise about loud budgeting?](https://wealthinvestors.com.au/insights/whats-all-the-noise-about-loud-budgeting/): Loud budgeting is a trend that may have started as a joke but is being embraced by those who want... - [How to end the financial year on a high note](https://wealthinvestors.com.au/insights/how-to-end-the-financial-year-on-a-high-note/): As the financial year draws to a close, it's the perfect time to review your financial affairs and set the... - [Caught in the middle: help for the sandwich generation](https://wealthinvestors.com.au/insights/caught-in-the-middle-help-for-the-sandwich-generation/): If you are feeling a bit like the meat in the sandwich you are not alone. The ‘sandwich generation’ is... - [The art of refinancing](https://wealthinvestors.com.au/insights/the-art-of-refinancing/): Refinancing your home loan has the potential to save you thousands, reduce your monthly repayments and free up your finances... - [Market movements & review video - May 2024](https://wealthinvestors.com.au/insights/market-movements-review-video-may-2024/): Stay up to date with what's happened in markets and the Australian economy over the past month. As eyes turn... - [Living your best life in retirement](https://wealthinvestors.com.au/insights/living-your-best-life-in-retirement/): If you’re nearing retirement age, it’s likely you’re wondering if you will have enough saved to give up work and... - [SMSFs: What happens if you exceed your super caps](https://wealthinvestors.com.au/insights/smsfs-what-happens-if-you-exceed-your-super-caps/): The rules around making some types of super contributions have been relaxed in recent years, so it’s worth exploring the... - [Being informed is the key to avoiding scams](https://wealthinvestors.com.au/insights/being-informed-is-the-key-to-avoiding-scams/): While it seems we all like to think we are clever enough to outwit a scam, Australians collectively lost more... - [Markets love certainty, but what happens next?](https://wealthinvestors.com.au/insights/markets-love-certainty-but-what-happens-next/): Financial markets can be like finely tuned racehorses, poised to gallop ahead under ideal conditions but often highly reactive to... - [New increased super contribution caps](https://wealthinvestors.com.au/insights/new-increased-super-contribution-caps/): As the end of financial year gets closer, some investors are thinking about the most effective ways to boost their... - [Evidence-based ways to hold back the hands of time](https://wealthinvestors.com.au/insights/evidence-based-ways-to-hold-back-the-hands-of-time/): You can’t stop the clock, so the saying goes, but humanity has spent a long time trying to slow down... - [Insurance is a sound investment](https://wealthinvestors.com.au/insights/insurance-is-a-sound-investment/): Managing risk is an essential part of investment strategy to reduce the potential for losses. Risk is not just associated... - [Understanding the new $3m super tax](https://wealthinvestors.com.au/insights/understanding-the-new-3m-super-tax/): The much debated tax on superannuation balances over $3 million is inching closer and those who may be affected should... - [Market movements & review video - March 2024](https://wealthinvestors.com.au/insights/market-movements-review-video-march-2024/): Stay up to date with what's happened in markets and the Australian economy over the past month. The economic indicators... - [What insurance do you need when buying a house?](https://wealthinvestors.com.au/insights/what-insurance-do-you-need-when-buying-a-house/): When getting ready to buy property, there are many things to keep track of as settlement approaches. An important consideration... - [Securing your passwords online](https://wealthinvestors.com.au/insights/securing-your-passwords-online/): We spend a lot of time online and don’t often think about the risks involved. Yet if we are not... - [Investing mistakes to avoid](https://wealthinvestors.com.au/insights/investing-mistakes-to-avoid/): Investing successfully and improving your investment portfolio can be as much about minimising mistakes as trying to pick the ‘next... - [Tax changes – what it will mean to me](https://wealthinvestors.com.au/insights/tax-changes-what-it-will-mean-to-me/): Prime Minister Anthony Albanese has announced proposed changes to address ongoing cost of living pressures with all 13. 6 million... - [Riding the AI wave to make your life easier](https://wealthinvestors.com.au/insights/riding-the-ai-wave-to-make-your-life-easier/): During a period where technological developments have picked up speed, one innovation in particular wields a profound, broad-reaching impact on... - [Investors making a comeback](https://wealthinvestors.com.au/insights/investors-making-a-comeback/): During the past couple of years property investors have been less active as interest rate rises began eating into their... - [2023 Year in Review](https://wealthinvestors.com.au/insights/2023-year-in-review/): Australia’s economy stubbornly defied predictions during 2023, dashing any hopes that we might begin to return to some kind of... - [Out with the old in 2024...](https://wealthinvestors.com.au/insights/out-with-the-old-in-2024/): A New Year is a chance to start afresh and move into the year ahead with confidence and optimism that... - [How will you use your super?](https://wealthinvestors.com.au/insights/how-will-you-use-your-super/): We spend decades watching our super balances grow but for those thinking about retirement in the next few years, it... - [How to give back](https://wealthinvestors.com.au/insights/how-to-give-back/): Australia is a giving country, but we often give in kind rather than financially. Whenever there is a disaster here... - [Powering down for a relaxing holiday](https://wealthinvestors.com.au/insights/powering-down-for-a-relaxing-holiday/): It’s nice to enjoy a break over the summer months. In fact, it’s an Aussie tradition - that mass exodus... - [Financial wellbeing is a gift worth giving yourself](https://wealthinvestors.com.au/insights/financial-wellbeing-is-a-gift-worth-giving-yourself/): The festive season is a time of joy and celebration but, for some, it can also lead to a financial... - [Market movements & review video - December 2023](https://wealthinvestors.com.au/insights/market-movements-review-video-december-2023/): Stay up to date with what's happened in markets and the Australian economy over the past month. Consumer prices eased... - [3 easy ways to manage your money this festive season](https://wealthinvestors.com.au/insights/3-easy-ways-to-manage-your-money-this-festive-season/): Christmas is a time for giving and it’s so easy to get caught up in the joys of the festive... - [Spark up your life and others by being a connector](https://wealthinvestors.com.au/insights/spark-up-your-life-and-others-by-being-a-connector/): We all know them. The people who seem to know everyone and effortlessly make connections within their network. While it’s... - [Returning to work after retirement](https://wealthinvestors.com.au/insights/returning-to-work-after-retirement/): Employers are desperate for workers and cost of living pressures are making it tough to live on a pension. That’s... - [Aged care challenges in the home](https://wealthinvestors.com.au/insights/aged-care-challenges-in-the-home/): Aging at home with government-subsidised funding is made possible through the Home Care Packages program. However, a crackdown on what... - [When enough is never enough](https://wealthinvestors.com.au/insights/when-enough-is-never-enough/): How much is enough? It’s a good question. Our relationship with our finances can be a tricky one. Everyone has... - [Yours, mine & ours - estate and succession planning for modern families](https://wealthinvestors.com.au/insights/yours-mine-ours-estate-and-succession-planning-for-modern-families/): Navigating complex family relationships and blended families can be challenging at times and particularly when a family member dies. A... - [A positive property outlook for some](https://wealthinvestors.com.au/insights/a-positive-property-outlook-for-some/): Residential property investors have been on a wild ride in recent years as prices slumped during the pandemic then quickly... - [Market movements & review video - October 2023](https://wealthinvestors.com.au/insights/market-movements-review-video-october-2023/): Household wealth has grown for the third quarter in a row, rising by 2. 6% in the June quarter, pushed... - [Destinations to fire up your passions](https://wealthinvestors.com.au/insights/destinations-to-fire-up-your-passions/): The world is an amazing place, with so much to see and do. In fact, sometimes it can feel as... - [Small business risk and cyber security: Are you prepared?](https://wealthinvestors.com.au/insights/small-business-risk-and-cyber-security-are-you-prepared/): We’re all now only too aware of the risk of cybercrime after the well-publicised data hacks of Medibank Private and... - [How the Aussie dollar moves your investments](https://wealthinvestors.com.au/insights/how-the-aussie-dollar-moves-your-investments/): It has been a wild ride for the Australian dollar since the Covid-19 pandemic struck and that could mean good... - [Should I buy insurance through my super?](https://wealthinvestors.com.au/insights/should-i-buy-insurance-through-my-super/): While we all hope for good health, the reality is that some of us may struggle at times with sickness... - [Harnessing the power of LinkedIn to build your personal brand](https://wealthinvestors.com.au/insights/harnessing-the-power-of-linkedin-to-build-your-personal-brand/): Linkedin is a powerful tool to help you establish and maintain your reputation and develop your career and business. So,... - [Trusts and the new super tax rules](https://wealthinvestors.com.au/insights/trusts-and-the-new-super-tax-rules/): Ensuring you’ve structured your finances tax-effectively is always a concern, but with new tax rules for super on the horizon,... - [How to boost your super with a lump sum](https://wealthinvestors.com.au/insights/how-to-boost-your-super-with-a-lump-sum/): If you’re lucky enough to have received a windfall, perhaps an inheritance or a retrenchment payout, your first decision will... - [Market movements & review video - August 2023](https://wealthinvestors.com.au/insights/market-movements-review-video-august-2023/): While the price of most goods and services continues to rise, the good news is the rate of increase is... - [How iron ore plays a big part in our economy](https://wealthinvestors.com.au/insights/how-iron-ore-plays-a-big-part-in-our-economy/): Iron ore has been the backbone of the Australian economy and many investment portfolios for much of the 21st century.... - [Homebuyer support to ring in the new financial year](https://wealthinvestors.com.au/insights/homebuyer-support-to-ring-in-the-new-financial-year/): The new financial year marks the opportunity to access a raft of support to help more people buy a home.... - [Keeping cashflow positive](https://wealthinvestors.com.au/insights/keeping-cashflow-positive/): Managing a healthy cash flow is often tough for small businesses and it is particularly the case right now in... - [Making conscious the unconscious for better decisions](https://wealthinvestors.com.au/insights/making-conscious-the-unconscious-for-better-decisions/): When you’re faced with a decision, do you trust your feelings or do you look at the situation objectively, making... - [Managing the costs of raising children](https://wealthinvestors.com.au/insights/managing-the-costs-of-raising-children/): It is a special feeling to welcome a new child or grandchild into the world and watch them grow. Sharing... - [Will these super changes affect you?](https://wealthinvestors.com.au/insights/will-these-super-changes-affect-you/): As our superannuation balances grow larger, it makes more sense than ever to keep track of the many rules changes... - [Who needs a testamentary trust?](https://wealthinvestors.com.au/insights/who-needs-a-testamentary-trust/): The rising cost of living is grabbing all the attention right now as people struggle to pay the increasing prices.... --- # # Detailed Content ## Pages ### Wealth Investors Videos - Published: 2025-04-22 - Modified: 2025-04-22 - URL: https://wealthinvestors.com.au/wealth-investors-videos/ Home https://youtube. com/shorts/r3kncS5IQ8c? si=4n9faHbXhkk53waohttps://youtube. com/shorts/GHvMZIlExZM? si=CR-yFFVfpZLJhI1V --- ### Wealth Investors Overview - Published: 2025-03-21 - Modified: 2025-03-21 - URL: https://wealthinvestors.com.au/wealth-investors-overview/ Home https://www. youtube. com/watch? v=qG_L2xXfqxU --- ### Hear From Our Clients - Published: 2025-03-21 - Modified: 2025-03-21 - URL: https://wealthinvestors.com.au/hear-from-our-clients/ custom slogan Home https://youtu. be/TFvD3PMe794https://youtu. be/iVL_-edu71M --- ### Video test - Published: 2025-03-18 - Modified: 2025-03-19 - URL: https://wealthinvestors.com.au/video-test/ Home https://www. youtube. com/watch? v=qG_L2xXfqxU Client testimonials https://youtu. be/TFvD3PMe794https://youtu. be/iVL_-edu71M --- ### Services - Published: 2024-05-01 - Modified: 2024-11-07 - URL: https://wealthinvestors.com.au/services/ What we do We develop tailored step-by-step financial strategies and help you make informed decisions about your money. SuperannuationSuperannuation is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable retirement. InsuranceInsurance is the foundation of all financial plans. We can help you evaluate the risks and come up with the right insurance solution for you and your family. Debt ManagementEffective debt management is not just about the interest you pay, but also the type of assets you’re investing in and prioritising your debts. Retirement Planning Retirement may seem like a long way off but putting money into super now is still a tax effective way to invest your money. You also can benefit from compounding returns. Estate PlanningWe’d all like to leave a legacy and provide for those closest and dearest to us once we’re gone. Estate Planning ensures your assets are distributed to the right people at the right time. Aged CareIt’s not easy making the decision to place a loved one into care. Once you’ve made the call, it can be confusing to understand how it all works. We develop tailored step-by-step financial strategies and help you make informed decisions about your money. CASH FLOW MODELLING This is one of the most important services we deliver to clients. Clients find it invaluable to see us create a picture of their financial lives and develop multiple future scenarios to enable sound decision-making. Once you have all of the possible outcomes in front of you, you’re able to make smart decisions. INVESTMENT SOLUTIONS We develop evidence-based investment strategies that are tailored to helping you achieve what’s important to you. Our focus is on capturing the optimal return while only taking acceptable levels of risk. See our Investment Philosophy for more information on this approach. PLANNING FOR RETIREMENT Retirement need not be dictated by age. We prefer to think of retirement as having the option to work, which is the essence of financial freedom. Whatever retirement might look like for you, we plan forward to ensure that you achieve the outcomes that you have always wanted. INTER-GENERATIONAL WEALTH TRANSFER You don’t have to wait until you pass away to pass on money to the next generation. In fact, our clients gain tremendous satisfaction in being able to give early inheritances as part of their long-term strategy. Of course, doing it in the correct way is important, and we can advise clients objectively on how to pass on wealth with due consideration to all parties involved. TAX OPTIMISATION To paraphrase Benjamin Franklin, taxes are one of the few certainties in life. But, thankfully, there are ways we can help. We think carefully about the tax you may have to pay over your lifetime and optimise strategies to ensure you don’t pay more tax than you have to. It’s simple, but it can save you tens of thousands in the long run. ASSET PROTECTION Growing wealth is one thing, keeping it is another. We spend a lot of time making sure that you reduce the risk in the wealth that you have worked so hard to build so that it’s not overly exposed. Protection is just as important to us as growth. ESTATE PLANNING The other certainty in life, to paraphrase Benjamin Franklin once more, is death. In order to protect those we leave behind, it is important to have all the right documentation in place — particularly at such a difficult time. We work closely with lawyers that specialise in wills and estates to ensure your family is in good hands. DEBT MANAGEMENT Not all debt is bad. In fact, debt can actually work really well when it’s held against an appreciating asset that can generate wealth creation. However, a clear plan for handling and structuring this debt is critical to maintaining a healthy relationship with debt so that we manage it... and not the other way around. PERSONAL RISK PROTECTION We regularly conduct risk analyses to ensure that you and your family will remain financially secure in the event of any unforeseen health issues. This ensures that you’re adequately covered in the rare chance that bad fortune strikes. 5 Steps To Mastering Your Money In this free ebook we share 5 important steps to help you be the boss of your money. We're committed to your privacy. We may use this information you provide to us to contact you about our services. You may unsubscribe anytime. View our latest newsletter and register to receive the latest financial and lifestyle articles. View Newsletter Register Now --- ### Our Investment Philosophy - Published: 2022-10-19 - Modified: 2024-11-07 - URL: https://wealthinvestors.com.au/investment-philosophy/ custom slogan Home "An investment in knowledge pays the best interest" Benjamin FranklinOur investment approach is grounded in economic theory and backed by decades of empirical research. Rather than attempting to predict the future or outguess others, we draw information about expected returns from the market itself. Leveraging the collective knowledge of its millions of buyers and sellers as they set security prices. Trusting markets to do what they do best, drive information into prices. Our focus is on how we interpret the research, how we design and manage portfolios and how we service our clients. We take a less subjective, more systematic approach to investing. An approach we can implement consistently and investors can understand and stick with, even in challenging market environments. At face value our approach may appear boring and less attractive than alternatives, however it is proven to work and a more sensible way to invest your funds. Even though we are across the latest investment trends, we don’t get caught up in these and speculate with your money. We focus on the things we can control and construct portfolios that are evidence based (underpinned by decades of research and data). We don’t gamble with your money and we don’t believe you should either. Benjamin Graham, Warren Buffett’s mentor, is well known for saying “to invest successfully over a lifetime does not require a stratospheric IQ, unusual business insight, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. ” When constructing your own intellectual framework, the evidence suggests following these key principals will provide you with a much greater probability of success. Pursue a better investment experience with our key principles to improve your odds of success below Download now How do your investments compare? If you’re unsure on how your portfolio stacks up, contact us for a second opinion and we can benchmark this for you. Contact us About Wealth Investors is a comprehensive advisory firm that specialises in all aspects of wealth. We start by understanding what’s important to you and utilise their expertise to provide you with financial advice. Our aim is to be part of your life journey and to build a genuine long-term relationship with you and your family; Our focus is on advice; we aren’t interested in “selling” products. We are here to help simplify your financial lives to provide you with peace of mind and allow you to focus on the things that are more important than money. Complex made simple Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. You are unique Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. Straight forward fees Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. --- ### Knowledge Centre - Published: 2022-10-18 - Modified: 2024-11-07 - URL: https://wealthinvestors.com.au/knowledge-centre/ custom slogan Home Wealth Knowledge "An investment in knowledge pays the best interest" Benjamin FranklinOur Wealth Knowledge portal is designed to help you understand more about Wealth. Covering a range of fundamental financial concepts, these guides present opportunities and strategies to discuss with us. Invest in your knowledge and improving your financial literacy will pay dividends when important decisions need to be made. Our aim is to educate and help you understand Wealth to provide you with clarity and the confidence regarding your financial affairs. Don't hesitate to contact us to discuss any of this general information or if you would like to take a closer look at your financial position. About Wealth Investors is a comprehensive advisory firm that specialises in all aspects of wealth. We start by understanding what’s important to you and utilise their expertise to provide you with financial advice. Our aim is to be part of your life journey and to build a genuine long-term relationship with you and your family; Our focus is on advice; we aren’t interested in “selling” products. We are here to help simplify your financial lives to provide you with peace of mind and allow you to focus on the things that are more important than money. Our Approach Complex made simple Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. You are unique Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. Straight forward fees Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. Complex made simple We provide you with the education you need to clearly understand your financial strategies. You are unique We create a personalised financial plan that is unique to your situation and goals. Accountability Partner We help you stay on track at every stage of life, throughout all the challenges and victories. DEBT MANAGEMENT Cost and Risks of Reverse MortgagesDebt RecyclingDebt ManagementRedraw Facility RISK PROTECTION STRATEGIES Income Protection InsuranceTerm Life InsuranceTotal & Permanent Disablement InsuranceTrauma Insurance RETIREMENT INCOME AnnuitiesPooled Lifetime Income Streams SOCIAL SECURITY Age PensionDepartment of Veterans’ Affairs Service PensionDisability Support PensionGiftingInsurance Bond in a Private TrustJobSeekerPension Income & Asset Tests – CentrelinkResidential Aged CareStrategies to Improve Centrelink EntitlementsWaiting Periods SUPERANNUATION Cash Out & Re-Contribute to SuperCo-ContributionConsolidate SuperFirst Home Super Saver SchemeSpouse ContributionsFirst Home Super Saver SchemeSuper Splitting Strategies --- ### MailChimp Test - Published: 2021-03-16 - Modified: 2021-03-16 - URL: https://wealthinvestors.com.au/mailchimp-test/ A Simple Slogan Testing mailchimp code Home Classic #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */ Subscribe * indicates required Email Address * Condensed #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */ Subscribe Horizontal #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; width:100%;} /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */ Subscribe Unstyled Subscribe * indicates required Email Address * --- ### Our Process - Published: 2020-12-01 - Modified: 2022-10-10 - URL: https://wealthinvestors.com.au/process/ Home Our Proven Process helps us get to know you – your passions, goals, needs and wants. From there, we develop a customised financial plan that adapts and changes as your life progresses. Step 1Pre-Discovery CallLet's have a quick chat to see how we can work together to help you achieve your goals. Step 1 Step 2Discovery MeetingA complimentary meeting to learn more about eachother and assess if we can add value to your affairs. We gather information about all aspects of your financial situation and take a comprehensive look at your values, objectives, and finances. Step 2 Step 3Wealth Management PlanDiscuss the strategy and undertake a lifelong cashflow modelling exercise to illustrate your current and proposed financial position. Address any concerns and refine the strategy accordingly. Step 3 Step 4Mutual Commitment MeetingWe create a personalised financial plan that will serve as a roadmap towards your goals. Step 4 Step 5ImplementationWe set your financial plan in action by implementing all your personalised strategies. Step 5 Step 6Regular Progress MeetingThere is no 'set and forget it' here. We stay in touch and review your plan based on major life changes or market factors. Step 6 Step 7Ongoing CommunicationRegular, synchronised, topical & relevant communications with a common message to keep you educated and informed. Step 7 --- ### Our People - Published: 2020-12-01 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/people/ Home An intro for the team at . Chris YoussefDirector | Private Wealth Adviser Frances CruzClient Services Manager --- ### When We Help - Published: 2020-12-01 - Modified: 2022-10-21 - URL: https://wealthinvestors.com.au/when-we-help/ Home At , our goal is to help you reach your potential, whether you are just getting started, building your wealth, preparing for retirement or enjoying life after work. Get started and set your family up for success Whether you are starting your first job, buying your first home, starting a family or saving for something special, we want to help give you the best start to your financial journey. How we can help:Set-up a budget to manage your cashflow. Review your insurance arrangements and provide recommendations for your growing family. Identify lending options to buy or renovate your home. Identify investment strategies to help you save for long term goals like your childrens’ education. Make recommendations about your super arrangements including personal contributions, salary sacrifice, co-contributions and spouse contributions. Recommend if you need to create a Will and an estate plan. Build wealth and pursue your goals Life’s really busy now and although retirement is still quite a way off, you want to know that your financial future is secure. This is a time when we can help you build on your financial foundations. How we can help:Set-up a budget to manage your cashflow. Review your insurance arrangements and provide recommendations. Identify investment strategies to help you build a passive income and save for the long term. Make recommendations about your super arrangements including personal contributions, salary sacrifice, co-contributions and spouse contributions. Advise on strategies to minimise taxRecommend if you need to create a Will and an estate plan. Succession planning recommendations for your business. Dealing with a redundancy. Prepare for retirement and beyond Retirement is on the horizon and you are dreaming about all the wonderful things you are going to see and do in your life after work. Putting the right plans in place while you are still working will give you the comfort of knowing that your future is under control. How we can help:Identify your retirement goals. Review your income and cashflow requirements. Assess how much super you have and when you can access it. Find ways to grow your retirement incomePut plans in place to make your money last in retirement. Determine when you can apply for the age pension. Review your estate plan. Succession planning recommendations for your business. Dealing with a redundancy. Make the most of retirement You are enjoying life after work and all the opportunities that this exciting time in your life presents. At this time in your life you want to know you are going to have the finances to support your adventures and perhaps even leave a legacy so you can share your wealth now and in the future. How we can help:Identify how long your money will last by looking at your income and assets and how they are structured. Identify if your finances are structured to maximise government benefits. Look at ways to minimise any tax you pay in retirement. Recommend superannuation income stream strategies including annuities and pensionsReview your estate plan. Advise on aged care financial strategies. --- ### landing page - Published: 2020-01-29 - Modified: 2021-04-06 - URL: https://wealthinvestors.com.au/landing-page/ 5 Steps To Mastering Your Money In this free ebook we share 5 important steps to help you be the boss of your money. We're committed to your privacy. We may use this information you provide to us to contact you about our services. You may unsubscribe anytime. Get control of your money Spend less than you earn Eliminate bad debt Be prepared for emergencies Plan for the future Protect your estate Download free guide Luctus eros molestie. In vehicula feugiat sem, sit amet tincidunt est condimentum nec. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Aliquam finibus ipsum quam, at euismod quam bibendum eu. Vestibulum ex eros, placerat quis ligula eu, cursus tincidunt nibh. Nullam at metus posuere Sally Sample Start taking control of your money and have confidence in your future. Download free guide --- ### Terms & Conditions - Published: 2019-10-27 - Modified: 2022-03-14 - URL: https://wealthinvestors.com.au/terms-conditions/ Home Your content here. --- ### Privacy Policy - Published: 2019-10-27 - Modified: 2022-09-01 - URL: https://wealthinvestors.com.au/privacy-policy/ Home Your content here. --- ### Financial Services Guide - Published: 2019-10-27 - Modified: 2021-05-12 - URL: https://wealthinvestors.com.au/financial-services-guide/ Home Click here to Read our Financial Services Guide --- ### Contact Us - Published: 2019-10-23 - Modified: 2024-04-04 - URL: https://wealthinvestors.com.au/contact/ Home Contact Address Operating Hours CONTACT --- ### Our Expertise - Published: 2019-10-23 - Modified: 2024-05-01 - URL: https://wealthinvestors.com.au/our-expertise/ Home At , we develop tailored step-by-step financial strategies and help you make informed decisions about your money. Cashflow modellingInvestment SolutionsAsset ProtectionDebt ManagementRetirement PlanningEstate Planning . elementor-5433 . elementor-element. elementor-element-c32b3a2 > . elementor-container{min-height:500px;}. elementor-5433 . elementor-element. elementor-element-c32b3a2 . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-5433 . elementor-element. elementor-element-c718e25:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-5433 . elementor-element. elementor-element-c718e25 > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2022/10/Cashflow-management. png");background-position:center center;background-size:cover;}. elementor-5433 . elementor-element. elementor-element-c718e25 > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-5433 . elementor-element. elementor-element-c718e25 > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-5433 . elementor-element. elementor-element-fe85e62 > . elementor-widget-container{margin:0px 0px -20px 0px;}. elementor-5433 . elementor-element. elementor-element-c32b3a2:not(. elementor-motion-effects-element-type-background), . elementor-5433 . elementor-element. elementor-element-c32b3a2 > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-5433 . elementor-element. elementor-element-c32b3a2 > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-5433 . elementor-element. elementor-element-c32b3a2{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-5433 . elementor-element. elementor-element-c718e25{width:33%;}. elementor-5433 . elementor-element. elementor-element-2fc2de5{width:67%;}}@media(max-width:1024px){. elementor-5433 . elementor-element. elementor-element-c32b3a2 > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-5433 . elementor-element. elementor-element-c32b3a2 > . elementor-container{min-height:300px;}. elementor-5433 . elementor-element. elementor-element-2fc2de5{width:100%;}} This is one of the most important services we deliver to our clients. Clients find it invaluable to see us create a picture of their financial lives and develop multiple future scenarios to enable sound decision making. Once you have all of the possible outcomes in front of you, you’re able to make smart decisions. Regardless of what stage of life you are in, this exercise is extremely valuable as it provides clarity on where you sit financially and how you are progressing towards your goals and objectives. We complete this exercise on a regular basis to provide you with a greater certainty of outcomes. This will ensure the advice we provide you is relevant, and you have a good understanding of your financial affairs at all times. . elementor-1478 . elementor-element. elementor-element-6d482a3a > . elementor-container{min-height:500px;}. elementor-1478 . elementor-element. elementor-element-6d482a3a . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1478 . elementor-element. elementor-element-6273bb04:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-1478 . elementor-element. elementor-element-6273bb04 > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/super-1. png");background-position:center center;background-size:cover;}. elementor-1478 . elementor-element. elementor-element-6273bb04 > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1478 . elementor-element. elementor-element-6273bb04 > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1478 . elementor-element. elementor-element-72a86e09 > . elementor-widget-container{margin:0px 0px -20px 0px;}. elementor-1478 . elementor-element. elementor-element-6d482a3a:not(. elementor-motion-effects-element-type-background), . elementor-1478 . elementor-element. elementor-element-6d482a3a > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-1478 . elementor-element. elementor-element-6d482a3a > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1478 . elementor-element. elementor-element-6d482a3a{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-1478 . elementor-element. elementor-element-6273bb04{width:33%;}. elementor-1478 . elementor-element. elementor-element-2518325{width:67%;}}@media(max-width:1024px){. elementor-1478 . elementor-element. elementor-element-6d482a3a > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1478 . elementor-element. elementor-element-6d482a3a > . elementor-container{min-height:300px;}. elementor-1478 . elementor-element. elementor-element-2518325{width:100%;}} We develop evidence-based investment strategies that are tailored to helping you achieve what’s important to you. Our focus is on capturing the optimal return while only taking acceptable levels of risk. Our investment approach is grounded in economic theory and backed by decades of empirical research. Rather than attempting to predict the future or outguess others, we draw information about expected returns from the market itself. Our focus is on how we interpret the research, how we design and manage portfolios and how we service our clients. We take a less subjective, more systematic approach to investing. An approach we can implement consistently, even in challenging market environments. See our Investment Philosophy for more information on this approach . elementor-1491 . elementor-element. elementor-element-dda4d99 > . elementor-container{min-height:500px;}. elementor-1491 . elementor-element. elementor-element-dda4d99 . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1491 . elementor-element. elementor-element-87be184:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-1491 . elementor-element. elementor-element-87be184 > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/insurance. png");background-position:center center;background-size:cover;}. elementor-1491 . elementor-element. elementor-element-87be184 > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1491 . elementor-element. elementor-element-87be184 > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1491 . elementor-element. elementor-element-93db1d7 > . elementor-widget-container{margin:0px 0px -20px 0px;}. elementor-1491 . elementor-element. elementor-element-dda4d99:not(. elementor-motion-effects-element-type-background), . elementor-1491 . elementor-element. elementor-element-dda4d99 > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-1491 . elementor-element. elementor-element-dda4d99 > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1491 . elementor-element. elementor-element-dda4d99{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-1491 . elementor-element. elementor-element-87be184{width:33%;}. elementor-1491 . elementor-element. elementor-element-adfe07e{width:67%;}}@media(max-width:1024px){. elementor-1491 . elementor-element. elementor-element-dda4d99 > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1491 . elementor-element. elementor-element-dda4d99 > . elementor-container{min-height:300px;}. elementor-1491 . elementor-element. elementor-element-adfe07e{width:100%;}} Growing wealth is one thing, keeping it is another. We spend a lot of time making sure that you reduce the risk in the wealth that you have worked so hard to build so that it’s not overly exposed. Protection is just as important to us as growth. We regularly conduct risk analyses to ensure that you and your family will remain financially secure in the event of any unforeseen health issues. This ensures that you’re adequately covered in the rare chance that bad fortune strikes. . elementor-1495 . elementor-element. elementor-element-73309bf > . elementor-container{min-height:500px;}. elementor-1495 . elementor-element. elementor-element-73309bf . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1495 . elementor-element. elementor-element-718dd1e:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-1495 . elementor-element. elementor-element-718dd1e > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/debt-management. png");background-position:bottom center;background-size:cover;}. elementor-1495 . elementor-element. elementor-element-718dd1e > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1495 . elementor-element. elementor-element-718dd1e > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1495 . elementor-element. elementor-element-81d870b > . elementor-widget-container{margin:0px 0px -20px 0px;}. elementor-1495 . elementor-element. elementor-element-73309bf:not(. elementor-motion-effects-element-type-background), . elementor-1495 . elementor-element. elementor-element-73309bf > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-1495 . elementor-element. elementor-element-73309bf > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1495 . elementor-element. elementor-element-73309bf{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-1495 . elementor-element. elementor-element-718dd1e{width:33%;}. elementor-1495 . elementor-element. elementor-element-ad963d5{width:67%;}}@media(max-width:1024px){. elementor-1495 . elementor-element. elementor-element-73309bf > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1495 . elementor-element. elementor-element-73309bf > . elementor-container{min-height:300px;}. elementor-1495 . elementor-element. elementor-element-ad963d5{width:100%;}} Not all debt is bad. In fact, debt can actually work really well when it’s held against an appreciating asset that can generate wealth creation. However, a clear plan for handling and structuring this debt is critical to maintaining a healthy relationship with debt so that we manage it... and not the other way around. . elementor-1498 . elementor-element. elementor-element-89ce2fd > . elementor-container{min-height:500px;}. elementor-1498 . elementor-element. elementor-element-89ce2fd . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1498 . elementor-element. elementor-element-fee47d0:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-1498 . elementor-element. elementor-element-fee47d0 > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/retirement-planning. png");background-position:center center;background-size:cover;}. elementor-1498 . elementor-element. elementor-element-fee47d0 > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1498 . elementor-element. elementor-element-fee47d0 > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1498 . elementor-element. elementor-element-2312b65 > . elementor-widget-container{margin:0px 0px -20px 0px;}. elementor-1498 . elementor-element. elementor-element-89ce2fd:not(. elementor-motion-effects-element-type-background), . elementor-1498 . elementor-element. elementor-element-89ce2fd > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-1498 . elementor-element. elementor-element-89ce2fd > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1498 . elementor-element. elementor-element-89ce2fd{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-1498 . elementor-element. elementor-element-fee47d0{width:33%;}. elementor-1498 . elementor-element. elementor-element-f418850{width:67%;}}@media(max-width:1024px){. elementor-1498 . elementor-element. elementor-element-89ce2fd > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1498 . elementor-element. elementor-element-89ce2fd > . elementor-container{min-height:300px;}. elementor-1498 . elementor-element. elementor-element-f418850{width:100%;}} Retirement need not be dictated by age. We prefer to think of retirement as having the option to work, which is the essence of financial freedom. Whatever retirement might look like for you, we plan forward to ensure that you achieve the outcomes that you have always wanted. . elementor-1501 . elementor-element. elementor-element-d0ce335 > . elementor-container{min-height:500px;}. elementor-1501 . elementor-element. elementor-element-d0ce335 . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1501 . elementor-element. elementor-element-c149bcf:not(. elementor-motion-effects-element-type-background) > . elementor-column-wrap, . elementor-1501 . elementor-element. elementor-element-c149bcf > . elementor-column-wrap > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/estate-planning. png");background-position:top center;background-size:cover;}. elementor-1501 . elementor-element. elementor-element-c149bcf > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1501 . elementor-element. elementor-element-c149bcf > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-bc-flex-widget . elementor-1501 . elementor-element. elementor-element-81a8672. elementor-column . elementor-column-wrap{align-items:flex-start;}. elementor-1501 . elementor-element. elementor-element-81a8672. elementor-column. elementor-element > . elementor-column-wrap. elementor-element-populated > . elementor-widget-wrap{align-content:flex-start;align-items:flex-start;}. elementor-1501 . elementor-element. elementor-element-5db7843 > . elementor-widget-container{margin:0px 0px 0px 0px;}. elementor-1501 . elementor-element. elementor-element-d0ce335:not(. elementor-motion-effects-element-type-background), . elementor-1501 . elementor-element. elementor-element-d0ce335 > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-color:var( --e-global-color-6d9cb4f0 );}. elementor-1501 . elementor-element. elementor-element-d0ce335 > . elementor-background-overlay{opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1501 . elementor-element. elementor-element-d0ce335{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px) and (min-width:768px){. elementor-1501 . elementor-element. elementor-element-c149bcf{width:33%;}. elementor-1501 . elementor-element. elementor-element-81a8672{width:67%;}}@media(max-width:1024px){. elementor-1501 . elementor-element. elementor-element-d0ce335 > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1501 . elementor-element. elementor-element-d0ce335 > . elementor-container{min-height:300px;}. elementor-1501 . elementor-element. elementor-element-81a8672{width:100%;}} You don’t have to wait until you pass away to pass on money to the next generation. In fact, our clients gain tremendous satisfaction in being able to give early inheritances as part of their long-term strategy. Of course, doing it in the correct way is important, and we can advise clients objectively on how to pass on wealth with due consideration to all parties involved. Schedule a Call In 15 minutes we can get to know you – your situation, goals and needs to see if we are the right fit to help you reach your potential. Schedule a Call --- ### Who We Are - Published: 2019-10-23 - Modified: 2024-11-07 - URL: https://wealthinvestors.com.au/who-we-are/ custom slogan Home Why should you work with us? We will give you the education and guidance to help you manage your money and secure your future. About Wealth Investors is a comprehensive advisory firm that specialises in all aspects of wealth. We start by understanding what’s important to you and utilise our expertise to provide you with financial advice. Our aim is to be part of your life journey and to build a genuine long-term relationship with you and your family; Our focus is on advice; we aren’t interested in “selling” products. We are here to help simplify your financial lives to provide you with peace of mind and allow you to focus on the things that are more important than money. Our Approach Complex made simple Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. You are unique Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. Straight forward fees Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. Complex made simple We provide you with the education you need to clearly understand your financial strategies. You are unique We create a personalised financial plan that is unique to your situation and goals. Accountability Partner We help you stay on track at every stage of life, throughout all the challenges and victories. --- ### Home > Award-winning Melbourne financial advisors helping you stress less, plan ahead and build lasting wealth. Book your free consultation today. - Published: 2019-10-23 - Modified: 2025-05-14 - URL: https://wealthinvestors.com.au/ Award-Winning Financial Advisors in Melbourne Smarter financial advice for business owners, professionals, and retirees. Book an Appointment Comprehensive Financial Planning in Melbourne At Wealth Investors Australia, our Melbourne financial advisors deliver tailored financial planning and wealth management solutions so you can stress less and plan. Financial planning is about far more than dollars and cents; it’s about embracing life free from financial stress. Knowing your future is secure gives you confidence and enthusiasm. It’s about building a lasting legacy for the generations that follow. https://www. youtube. com/watch? v=qG_L2xXfqxU Wealth Management Services - Melbourne Get started and set your family up for successBuild wealth and pursue your goalsPrepare for retirement and beyondMake the most of retirement . elementor-1304 . elementor-element. elementor-element-837cda3 > . elementor-container{min-height:500px;}. elementor-1304 . elementor-element. elementor-element-837cda3 > . elementor-container > . elementor-column > . elementor-widget-wrap{align-content:flex-end;align-items:flex-end;}. elementor-1304 . elementor-element. elementor-element-837cda3 . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1304 . elementor-element. elementor-element-f1427c3 > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1304 . elementor-element. 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elementor-background-overlay{background-color:#000000;opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1304 . elementor-element. elementor-element-837cda3, . elementor-1304 . elementor-element. elementor-element-837cda3 > . elementor-background-overlay{border-radius:6px 6px 6px 6px;}. elementor-1304 . elementor-element. elementor-element-837cda3{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;margin-top:0px;margin-bottom:0px;}@media(max-width:1024px){. elementor-1304 . elementor-element. elementor-element-837cda3 > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1304 . elementor-element. elementor-element-837cda3 > . elementor-container{min-height:300px;}. elementor-1304 . elementor-element. elementor-element-46105b2{font-size:14px;line-height:1. 3em;}} Get started & set up your family You want to buy your dream home, expand your family and grow your wealth. . elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-container{min-height:500px;}. elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-container > . elementor-column > . elementor-widget-wrap{align-content:flex-end;align-items:flex-end;}. elementor-1313 . elementor-element. elementor-element-da4028a . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1313 . elementor-element. elementor-element-353695a > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1313 . elementor-element. elementor-element-353695a > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1313 . elementor-element. elementor-element-d943d26 . elementor-heading-title{color:var( --e-global-color-36626302 );}. elementor-1313 . elementor-element. elementor-element-5106897{color:var( --e-global-color-36626302 );margin:0px 0px calc(var(--kit-widget-spacing, 0px) + -20px) 0px;}. elementor-1313 . elementor-element. elementor-element-da4028a:not(. elementor-motion-effects-element-type-background), . elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/build-wealth. png");background-position:center center;background-size:cover;}. elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-background-overlay{background-color:#000000;opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1313 . elementor-element. elementor-element-da4028a, . elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-background-overlay{border-radius:6px 6px 6px 6px;}. elementor-1313 . elementor-element. elementor-element-da4028a{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px){. elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1313 . elementor-element. elementor-element-da4028a > . elementor-container{min-height:300px;}. elementor-1313 . elementor-element. elementor-element-5106897{font-size:14px;line-height:1. 3em;}} Build wealth and pursue your goals It’s time to pay down debt, protect your wealth and grow your assets. . elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-container{min-height:500px;}. elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-container > . elementor-column > . elementor-widget-wrap{align-content:flex-end;align-items:flex-end;}. elementor-1398 . elementor-element. elementor-element-12cde78c . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1398 . elementor-element. elementor-element-71a0b9ac > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1398 . elementor-element. elementor-element-71a0b9ac > . elementor-element-populated > . elementor-background-overlay{transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1398 . elementor-element. elementor-element-55e2f41c . elementor-heading-title{color:var( --e-global-color-36626302 );}. elementor-1398 . elementor-element. elementor-element-2b6388c0{color:var( --e-global-color-36626302 );margin:0px 0px calc(var(--kit-widget-spacing, 0px) + -20px) 0px;}. elementor-1398 . elementor-element. elementor-element-12cde78c:not(. elementor-motion-effects-element-type-background), . elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-motion-effects-container > . elementor-motion-effects-layer{background-image:url("https://wealthinvestors. com. au/wp-content/uploads/2020/12/retirement-and-beyong. png");background-size:cover;}. elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-background-overlay{background-color:#000000;opacity:0. 3;transition:background 0. 3s, border-radius 0. 3s, opacity 0. 3s;}. elementor-1398 . elementor-element. elementor-element-12cde78c, . elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-background-overlay{border-radius:6px 6px 6px 6px;}. elementor-1398 . elementor-element. elementor-element-12cde78c{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px){. elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1398 . elementor-element. elementor-element-12cde78c > . elementor-container{min-height:300px;}. elementor-1398 . elementor-element. elementor-element-2b6388c0{font-size:14px;line-height:1. 3em;}} Prepare for retirement and beyond You want to be confident that you will have enough money to enjoy your life when you stop working. . elementor-1403 . elementor-element. elementor-element-36be1cde > . elementor-container{min-height:500px;}. elementor-1403 . elementor-element. elementor-element-36be1cde > . elementor-container > . elementor-column > . elementor-widget-wrap{align-content:flex-end;align-items:flex-end;}. elementor-1403 . elementor-element. elementor-element-36be1cde . elementor-repeater-item-6c67488. jet-parallax-section__layout . jet-parallax-section__image{background-size:auto;}. elementor-1403 . elementor-element. elementor-element-71bbc56e > . elementor-element-populated{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}. elementor-1403 . elementor-element. elementor-element-71bbc56e > . elementor-element-populated > . 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elementor-1403 . elementor-element. elementor-element-36be1cde, . elementor-1403 . elementor-element. elementor-element-36be1cde > . elementor-background-overlay{border-radius:6px 6px 6px 6px;}. elementor-1403 . elementor-element. elementor-element-36be1cde{transition:background 0. 3s, border 0. 3s, border-radius 0. 3s, box-shadow 0. 3s;}@media(max-width:1024px){. elementor-1403 . elementor-element. elementor-element-36be1cde > . elementor-container{min-height:400px;}}@media(max-width:767px){. elementor-1403 . elementor-element. elementor-element-36be1cde > . elementor-container{min-height:300px;}. elementor-1403 . elementor-element. elementor-element-7928cec3{font-size:14px;line-height:1. 3em;}} Make the most of retirement You would like to leave a legacy for your kids and ensure you don’t run out of money anytime soon. Hear what our clients have to say https://youtu. be/TFvD3PMe794https://youtu. be/iVL_-edu71M Financial Advisory Services Melbourne At Wealth Investors, our award-winning Melbourne financial advisors craft bespoke, step-by-step strategies to help you make confident decisions about your money. From cash flow modelling to retirement planning, our holistic approach to wealth management ensures you achieve your goals. CASH FLOW MODELLING As a cornerstone of our financial planning in Melbourne, cash flow modelling gives you a clear, dynamic view of your finances. We map out your income, expenses and investments, then run multiple scenarios so you can see the impact of every decision. With this insight, you’ll make more intelligent choices about spending, saving and investing. INVESTMENT SOLUTIONS Our evidence-based investment strategies are tailored to your objectives and risk tolerance. Whether you’re building wealth in Australia or diversifying globally, we focus on capturing optimal returns whilst managing downside risk. Learn more about our Investment Philosophy. PLANNING FOR RETIREMENT Retirement isn’t about a specific age; it’s about financial freedom. We help you plan for the lifestyle you want, whether that means early retirement, phased work or ongoing consulting. Our forward-looking approach ensures you have the resources and flexibility to enjoy life on your terms. INTER-GENERATIONAL WEALTH TRANSFER Passing on wealth doesn’t have to wait until after you’re gone. We advise on strategies for early inheritance, family trusts and gifting structures that deliver satisfaction today while preserving fairness and tax efficiency for all beneficiaries. TAX OPTIMISATION Taxes are inevitable, but overpaying isn’t. Our Melbourne tax optimisation service analyses your lifetime tax liabilities. It implements legal strategies, super contributions, negative gearing, and trust structures to minimise your debt and keep more of your hard-earned wealth. ASSET PROTECTION Growing your wealth is only half the battle; protecting it is just as vital. We assess your exposure to market volatility, litigation risk, and personal liabilities and then recommend insurance, trust, and corporate structures that safeguard your assets for the long term. ESTATE PLANNING A sound estate plan ensures your loved ones are cared for when you’re gone. We partner with specialist wills and estates lawyers to put in place wills, powers of attorney and guardianship documents that reflect your wishes and minimise family stress. DEBT MANAGEMENT Not all debt is bad; it can accelerate wealth creation in the right hands. We analyse your loan structures, leverage opportunities against appreciating assets, and craft a clear repayment plan so that your debt works for you, not vice versa. PERSONAL RISK PROTECTION Life is unpredictable. Our risk protection reviews ensure you and your family have adequate cover, income protection, total and permanent disability, and life insurance, so you remain financially secure if illness or injury strikes. Private Wealth Advisers Wealth Investors is an award-winning Melbourne financial advisory firm whose expert advisers craft fully bespoke financial planning, retirement planning and holistic wealth management solutions for clients in Melbourne and across Australia. By combining evidence-based investment strategies, cash flow modelling and tax-optimisation techniques, we help you reduce financial stress, protect your assets, and confidently plan for every stage of life. Whether you’re building wealth, preparing for retirement or transferring a legacy to the next generation, our tailored approach ensures you have clarity, control and peace of mind - so you can focus on enjoying life, today and tomorrow. Prepare for tomorrow, make the most of today. Wealth Management Insights Forging new bonds – how bonds work13th May 2025Bonds are not usually the flashy upstarts of the investment world with their every move reported, like stocks. But the... The generation redefining aging6th May 2025As we advance into the 21st century, the concept of aging is undergoing a transformation, largely thanks to a new... How to financially ease into retirement29th April 2025Deciding when to retire is a big decision and even more difficult if you are concerned about your retirement income... . Guiding the way: the art of effective leadership22nd April 2025‘A leader is one who knows the way, goes the way and shows the way. ’ – John Maxwell What does... Finding life balance: 4 pillars to your wellbeing15th April 2025We’re all trying to live our best lives, right? Sometimes, we get stuck in one area – whether it’s spending... Market movements and review video – April 20258th April 2025Stay up to date with what’s happened in the Australian economy and markets over the past month. Following March’s Federal... Read More Insights Testimonials We have been a client with Chris almost 10 years. Chris is always professional and his advice and commendations are easy to understand. Chris' first priority is our financial interest. He provides the latest market information throughout the year and any financial articles of interest. We certainly would recommend Chris to family and friends. Extremely happy with his service. Wally, 65+ years, Cheltenham, VIC As a SMSF client over 24 years, Chris was my latest adviser, approximately 4years, of many advisers previously in that company and the prior company which it absorbed. I found Chris to be diligent, thorough and very approachable, expressing personal interest even to the extent of a home visit for a coffee after our move to Adelaide. He expressed a genuine interest in our wellbeing after our move from Melbourne. I am confident that Chris has the expertise, concern and personality to satisfy the requirements of his clients. Kevin, 65+ years, Glenelg East, SA Chris has been our financial adviser for several years. He has always been very professional and passionate about his work and is always available and very caring. Chris is a great listener and has empathy and understanding of whatever we need. He has been able to alleviate any concerns by his calm and personable manner. Chris is very knowledgeable, conscientious and compassionate. I have no hesitation in recommending Chris to anyone. Jan, 65+ years, Mornington, VIC I am qualified in university degrees in medicine, but an absolute dud at managing my finances. Chris always gave me good advice in managing my investment portfolio. Roger, 65+ years, Thornbury, VIC I have come to trust Chris as a man of integrity, who has always given clear explanations of how my investments are performing, and who has always shown a genuine interest in my life, the causes I support and why I spend my money the way I do. I trust his knowledge, his professionalism, and his genuine engagement with me as a person and not just business client. Margaret, 65+ years, Invermay, VIC 1. First advice from a life-time experience, given to me by my wise father, "You make the money, and pay an expert to count/take care of them for you. " Chris Youssef has been the expert for me during the years. In all that time I have been... --- --- ## Posts ### Forging new bonds – how bonds work - Published: 2025-05-13 - Modified: 2025-05-13 - URL: https://wealthinvestors.com.au/insights/forging-new-bonds-how-bonds-work/ - Categories: Insights Bonds are not usually the flashy upstarts of the investment world with their every move reported, like stocks. But the Trump Administration’s extraordinary refashioning of world trade, with on-again off-again tariffs of eye watering amounts, has put bond markets in a similar position to share markets – in turmoil. So, with the bond markets attracting more attention than usual, we take a closer look at the asset class. What is a bond? A bond is a bit like an interest-only loan and there are many different types of bonds available. A government (government bond), or sometimes a large company (corporate bond), issues bonds to investors to raise funds for infrastructure or, in the case of a company, for expansion. Large institutional investors tend to favour some of the more complex types. Retail investors are more often interested in fixed-rate bonds, known as a fixed-income investment because of the regular payments made to the investor (or the coupon interest rate). The principal (called the face value) is repaid at an agreed date when the bond matures. These bonds can also be traded on a secondary market by those who’ve chosen to sell their bonds before maturity. In this case, depending on the state of the markets and the economy, the amount they’re worth, or their capital value, may be higher or lower than the face value, which is fixed. The most common fixed-rate bonds, issued by governments, are generally considered more stable. Nonetheless, all bonds are assigned a credit rating by independent rating agencies such as Standard & Poor’s or Moody’s. Australia’s Commonwealth bonds, issued by the federal government, are AAA-rated reflecting strong fiscal management, economic stability and low default risk. i State governments and quasi-government organisations such as the World Bank also issue bonds. The risk level for this category of bonds can vary. Large companies, looking to expand or start new projects, often use bonds as a way to raise funds. Corporate bonds generally pay higher interest but are considered slightly more risky. How to buy bonds Investing in bonds can help to diversify a portfolio and provide a steady stream of income but for those with no knowledge or experience of the market, it is important to get quality professional advice and speak to us. For example, if you had been relying on the conventional wisdom that bond markets are often up when share markets are down, recent share market activity would have delivered a shock. The usual flight to safety from share price volatility to bonds did not happen in the United States where, for a time, both markets were falling. While it is possible to buy bonds directly when there is a public offer, it can be difficult for smaller individual investors to participate because of the large minimum transactions required. Instead, most retail investors look to bond funds, bond exchange traded funds (ETFs) or managed funds for exposure to the bond market. The variety of funds on offer can help to diversify a portfolio by giving access to a range of different markets. What affects bond rates? Interest rate movements directly affect bond prices on the secondary market. When interest rates rise, bond prices fall because newly issued bonds will be at the higher rate making older bonds less attractive and reducing demand. Conversely, bond prices rise when interest rates fall because new bonds will offer the lower rates meaning there will be higher demand for older bonds, driving their prices up. Bond prices are also influenced by economic conditions and investor sentiment. Rising inflation can cause bond prices to rise while strong economic growth may decrease bond prices because investors often prefer to buy shares. Bonds with a lower credit risk, such as AAA-rated government bonds, tend to attract higher prices. If you would like to learn more about your options for investing in bonds, please give us a call. i Fitch Affirms Australia at ‘AAA’; Outlook Stable --- ### The generation redefining aging - Published: 2025-05-06 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/the-generation-redefining-aging/ - Categories: Insights As we advance into the 21st century, the concept of aging is undergoing a transformation, largely thanks to a new generation of “oldies” who don’t feel old – and are reframing what it means to be getting on in years. Traditionally, aging has been associated with decline, frailty, and a sense of irrelevance. However, today’s generation is challenging societal norms and expectations while embracing a more vibrant and empowered perspective on life in later years. A generational shift Never a generation to just accept the way things are, Baby Boomers and even Gen X, laid the groundwork for what it means to live authentically. This is the generation that redefined adolescence, invented pop culture, challenged inequality, and protested when they saw things they wanted to change. So, it’s no surprise that as they age, they’re also redefining what growing older looks like. The mantra “60 is the new 40” isn’t just a catchy phrase; it’s a way of life for many in this generation. They’re proving that age is merely a number and that it’s perfectly acceptable to keep living life to the fullest – no matter the decade. Age is just a number – who’s counting? Gone are the days when turning 60 felt like a one-way ticket to the rocking chair. Today, many who have had a few milestone birthdays are living life with the enthusiasm of a kid at an amusement park, and it’s reflected in improved longevity and better health outcomes. Science says we all have a chronological age (the actual years on the clock) and a cognitive age (how old you feel). It’s been found that those who have a younger cognitive age have improved health, higher life satisfaction, greater activity levels, and more positive attitudes toward ageing than those who have an older cognitive age – regardless of their chronological ages. i Another study conducted an experiment with a group of elderly men – taking them back to where they lived in their youth and treating them as the young person they were back then. Compared to the control group, those who mentally went ‘back in time’ showed improved posture, dexterity and physical appearance. Even their vision improved. ii Embracing longevity and vitality It’s not just about your mindset though. One of the most significant shifts in how we view aging is the increased focus on health and well-being along with the average life expectancy. As a society, our overall health is improving with the average life expectancy, which for males is 81. 1 years and for females is 85. 1 years. iii Nowadays, staying healthy is not just about dodging the doctor; it’s about thriving! With an abundance of information on nutrition and fitness, today’s older adults are more informed than ever. Many are embracing a proactive approach to aging, with lifestyle tweaks, focusing on mental health, mindfulness, and physical fitness. Lifelong learning and personal growth Education is another area where the perception of aging is evolving. Gone are the days when education was seen as a one-and-done deal. Today, many individuals see learning as a lifelong journey and the availability of online courses, workshops, and community programs has made it easier for people to pursue new interests and skills at any age. This focus on lifelong learning not only enriches individual lives but also has broader benefits. Older adults are increasingly pursuing new careers, starting businesses, or volunteering in their communities. They are leveraging their experiences to make meaningful contributions, proving that age does not limit one’s potential for achievement. Challenging stereotypes and embracing authenticity Despite these positive changes, ageism remains a significant societal issue. Stereotypes about aging can limit opportunities for older adults and perpetuate harmful narratives. However, today’s generation is actively working to combat ageism and promote a more inclusive view. One of the most exciting parts of this shift is the emphasis on individuality. Whether it’s starting a new trend, or speaking out about causes we care about, it’s about showing the world that aging doesn’t mean fading into the background. Instead, it’s about standing out and living well. None of us can hold back the years but this redefined perspective on aging encourages us to view our later years as a time for growth, exploration, and fulfillment. As society evolves, it’s crucial to support and amplify this message, ensuring that aging is embraced as a vital and dynamic part of life and fostering a culture that values every stage of life. Forget the rocking chairs; the golden oldies are here to live boldly, laugh heartily, and inspire others along the way. i Marketing to Seniors: Age Really is a State of Mind |SMU ii What if Age Is Nothing but a Mind-Set? | NY Times iii Life expectancy, 2021 – 2023 | Australian Bureau of Statistics --- ### How to financially ease into retirement - Published: 2025-04-29 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/how-to-financially-ease-into-retirement/ - Categories: Insights Deciding when to retire is a big decision and even more difficult if you are concerned about your retirement income. The average age of Australia’s 4. 2 million retirees is 56. 9 years but many people leave it a little later to finish work with most intending to retire at just over 65 years. i If you’re not quite ready to retire, a ‘transition to retirement’ (TTR) strategy might work for you. It allows you to ease into retirement by: supplementing your income if you reduce your work hours, or boosting your super and save on tax while you keep working full time The strategy allows you to access your super without having to fully retire and it is available to anyone 60 years or over who is still working. Working less for similar income The strategy involves moving part of your super balance into a special super fund account that provides an income stream. From this account you can withdraw funds of up to 10 per cent of your balance each year. As you will still be earning an income and making concessional (before-tax) contributions to your super, this approach allows you to maintain income during the transition to full retirement while still increasing your super balance, as long as the contributions continue. Note that, generally speaking, you can’t take your super benefits as a lump sum cash payment while you’re still working, you must take super benefits as regular payments. Although, there are some exceptions for special circumstances. Take the example of Alisha. ii Alisha has just turned 60 and currently earns $50,000 a year before tax. She decides to ease into retirement by reducing her work to three days a week. This means her income will drop to $30,000. Alisha transfers $155,000 of her super to a transition to retirement pension and withdraws $9,000 each year, tax-free. This replaces some of her lost pay. Income received from your super fund under a TTR strategy is tax-free but note that it may affect any government benefits received by your or your partner. Also, check on any life insurance cover you have under with your super fund in case a TTR strategy reduces or stops it. Give your super a boost For those planning to continue working full-time beyond age 60, a TTR strategy can be used to increase your income or to give your super a boost. To make it work, you could consider increasing salary sacrifice contributions into your super then using a TTR income stream out of your super fund to replace the cash you’re missing from salary sacrificing. In another example, Kyle is 60 and earns $100,000 a year. He intends to keep working full-time for at least another five years. Kyle transfers $200,000 from his super to an account-based pension so he can start a TTR strategy then salary sacrifices into his super. This will reduce his income tax, but also his take-home pay. So, he tops up his income by withdrawing up to 10 per cent of his TTR pension balance each year. iii A TTR strategy tends to work better for those with a larger super balance, a higher marginal income tax rate and those who have not reached the cap on concessional contributions. Nonetheless, it can still be useful for those with lower super balances and on lower incomes, but the benefits may not be as great. Some things to think about TTR won’t suit everyone. For example, be aware that you cannot withdraw more than 10 per cent of your super balance each year. Also, if you start withdrawing your super early, you will have less money when you retire. The rules for a TTR strategy can be complex, particularly if your employment situation changes or you have other complicated financial arrangements and investments. So, it’s important to seek professional advice to make sure it works for you and that you are making the most of its benefits. If you would like to discuss your retirement income options, give us a call. i Retirement and Retirement Intentions, Australia, 2022-23 financial year | Australian Bureau of Statistics ii, iii Transition to retirement – Moneysmart. gov. au --- ### Guiding the way: the art of effective leadership - Published: 2025-04-22 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/guiding-the-way-the-art-of-effective-leadership/ - Categories: Insights ‘A leader is one who knows the way, goes the way and shows the way. ’ – John Maxwell What does it mean to be an effective leader? It’s not just about giving orders or managing processes; it’s about creating an environment where individuals feel supported, motivated, and aligned with a shared vision. Whether you’re aspiring to move into a more senior role, become a team leader, or head an entire organisation, the ability to lead effectively is crucial. Let’s look at how to communicate your vision and guide others to achieve combined success. Clarity of purpose Effective leadership begins with a clear vision. Having a vision for your business or team provides purpose and focus and will guide and define your businesses objectives. But having a vision isn’t enough. If your team doesn’t understand where you’re heading or why it matters, they won’t be motivated to follow you. An effective leader explains how everyone contributes to the bigger picture. When people feel connected to the business vision and objectives, they’re more likely to work hard and stay committed. Walk the walk, talk the talk The best leaders lead by example. They don’t just tell their team what to do; they demonstrate this through their actions. If you want your team to be punctual, hardworking, and accountable, you need to embody those qualities yourself. Actions speak louder than words, and when your team sees you modelling a certain behaviour, they’re more likely to follow suit. This doesn’t mean you need to be perfect—it means being authentic and showing consistency in your actions. If you make a mistake, own it. If you promise something, deliver on it. By walking the walk and talking the talk, it helps build credibility and respect. Empower and inspire Successful leaders are great motivators. They understand the strengths of their team members and empower them to take ownership of their roles. Rather than micromanaging, a great leader provides support, sets clear expectations, and allows individuals the freedom to succeed and flourish. Invest in your team. Provide opportunities for professional development – allow them to learn new skills and take on new challenges. This not only benefits them but strengthens your entire team. Feedback: The secret sauce of growth Effective feedback is the bread and butter of leadership. It’s not just about pointing out what went wrong; it’s about providing guidance for improvement and offering praise where it’s due. Positive feedback is incredibly motivating, but constructive feedback is essential for growth. When giving feedback, make sure it’s specific, actionable, and focused on behaviour. Instead of saying, “You’re not being a team player,” try, “I’ve noticed you often work independently rather than collaborating with the group. It would be great to see you engage more. ” This provides direction without making the person feel as though they’ve done something wrong. Have these conversations regularly to make it feel like a natural part of the work culture. Accountability and performance management While empathy and support are key, effective leadership also requires holding people to account. Sometimes people don’t perform to expectations. This can happen for all sorts of reasons—lack of motivation, personal issues, or simply a mismatch of skills. As a leader, it’s your job to address these. Start by approaching the discussion with curiosity rather than judgment. Ask questions like, “Are you okay? ” or “Are there any issues at work that I can help with? ” to uncover any concerns and show that you care about them and their success, not just their performance. If the areas of concern continue, you may need to implement a formal performance improvement plan which should outline expectations, a timeline for improvement, and the support the individual will receive. Ensure you are adhering to legal procedure to avoid wrongful dismissal claims in the event you need to terminate their employment. Recognition and appreciation Finally, recognising and appreciating your team’s hard work is one of the most powerful tools a leader has. People need to feel valued, and whether it’s a shout-out in a meeting, a handwritten note, or a team celebration, showing appreciation motivates your team to continue doing their best. Great leaders inspire people to be their best selves and help them achieve goals they might have thought were beyond their reach. When you do, the results will speak for themselves. --- ### Finding life balance: 4 pillars to your wellbeing - Published: 2025-04-15 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/finding-life-balance-4-pillars-to-your-wellbeing/ - Categories: Insights We’re all trying to live our best lives, right? Sometimes, we get stuck in one area – whether it’s spending all your spare time hitting the gym or counting every calorie to lose weight. We know the secret to true wellbeing is balance – but what does that actually mean? That’s where the four ‘sets’ come into play: mindset, healthset, heartset, and soulset. These can be considered the four pillars to happiness, and you need a little bit of each to really find your balance. Mindset: The Brain Food Let’s kick things off with the mindset. Your mindset is like the software of your body—it drives how you think, act, and react. It is about personal growth, learning, and shifting your outlook to one that empowers you. If you want to strengthen your mindset, here’s the deal: keep it active! This could mean reading something that challenges your thoughts or while you are out walking, listen to some empowering podcasts or TED talks. Trust me, you’ll come out the other end of your day a little wiser and a lot more motivated. Healthset: Your Body’s Happy Place Now let’s focus on healthset—your physical wellbeing. Healthset is all about moving your body and making sure it feels good. You don’t have to train for a marathon (unless that’s your thing, and in that case—go for it! ). Just get up, move around, and stretch! Brisk walks, a little yoga, or even dancing like no one’s watching can do wonders. Plus, don’t forget the basic stuff: eat nutritious food, stay hydrated, and get plenty of sleep. Because let’s face it, a lack of sleep can affect your overall wellbeing. Heartset: Feed Your Emotions Heartset means taking care of your emotional wellbeing. It’s about understanding your feelings, processing them, and making sure your emotional cup is full. If you want to boost your heartset, a good starting point can be to practice gratitude. Write down the things you’re thankful for – even if the starting point is enjoying your “morning coffee”. Heartset isn’t just about feeling good; it’s about being able to process your feelings in a healthy way. Giving yourself some space in your day-to-day life and permission to ‘feel’ rather than bottle things up can be challenging, but small steps will add up. So, when life gets messy (as it does sometimes), you’ll be ready to handle it with grace. As well as checking in with yourself, heartset is about connecting with others, so actively nurture those relationships with those you care about and those who care about you. Soulset: Finding Your Inner Peace Finally, we have soulset. This is the deepest and most personal of the four sets. Soulset means connecting with your ‘purpose’ and finding ‘meaning in life’. Creating a connection with your soul is less about doing and more about being. Soulset is the place where you find that “aha! ” moment when everything aligns, and you just feel... at peace. Make space for those moments. Meditate, do yoga, or take a walk in the park or by the water if that’s your ‘happy place’. Connect with what feels deeply right for you. Reflect on what gives you purpose—and what makes you feel like you’re really living. Creating your own routine The popular book ‘The 5am Club’ by Robin Sharma, introduces the idea that tending to these four parts of yourself first thing in the morning will set you up for a balanced and empowering day – however you don’t have to join the 5am club to get the benefits of balance. Creating your own routine is simple: pick one or two habits for each set (they can even overlap – going for a walk in nature can tick a few boxes if you do it right! ) and start incorporating them into your daily life. Don’t overcomplicate it—just focus on being consistent, and remember, progress is the goal, not perfection. Take the time to check in with yourself from time to time to see if one of your four pillars is languishing and put a little effort into strengthening that pillar to get the balance back. When you focus on your mindset, healthset, heartset, and soulset, you’re growing a strong, healthy foundation for happiness. --- ### Market movements and review video – April 2025 - Published: 2025-04-08 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-april-2025/ - Categories: Insights Stay up to date with what’s happened in the Australian economy and markets over the past month. Following March’s Federal Budget, Prime Minister Anthony Albanese announced a national election for May 3, kicking off a campaign centred on tax cuts and cost-of-living relief. Globally, trade war worries dominated headlines and contributed to markets falls during the month. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### Big changes ahead for Aged Care - Published: 2025-04-01 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/big-changes-ahead-for-aged-care/ - Categories: Insights The number of Australians aged over 65 is expected to more than double in the next 40 years while the number of people aged over 85 is predicted to triple in that time. i Aged care funding and services have seen major changes in the years since the 2021 report of the Royal Commission into Aged Care Quality and Safety, and this year is no exception. 1 July 2025 marks the start of a host of new programs and improvements for the aged care sector. Several announcements have already been made this year, covering wage rises for aged care workers and nurses, and an increase in government funding for residential aged care accommodation. In one of the most significant changes, the new Aged Care Act begins on 1 July. The Act aims to ensure the viability and quality of aged care. A report by the Aged Care Taskforce last year calculated the residential aged care sector will need $56 billion by 2050 to upgrade facilities and build more rooms. Current funding arrangements aren’t working. In the 2022-2023 financial year, almost half of all accommodation providers made a loss. Some $300 million in federal grants will be delivered to accommodation providers this year to help with capital works upgrades. And to improve the viability of the facilities the government is introducing other measures including larger means-tested contributions from new entrants and a higher maximum room price that is indexed over time. Aged Care Minister Anika Wells says half of new residents will not contribute more under the new consumer contributions. “For every $1 an older Australian contributes to their residential aged care, the government will contribute an average of $3. 30,” says Wells. Support at Home The Aged Care Act also aims to support more people who want to stay in their own homes as they age. The federal government is investing $4. 3 billion in a new Support at Home program, which replaces the Home Care Packages and the Short-Term Restorative Care programs. ii There’ll be more 300,000 places available over the next 10 years and a shorter waiting period for Support at Home, and there’s a goal to simplify and improve the assessment process, making it easier to access different services as needs change. iii Similar to the Home Care Package, Support at Home will provide: clinical care, such as nursing and occupational therapy help with maintaining independence including showering, dressing and taking medications support for everyday living tasks such as cleaning, gardening, shopping and meal preparation. The government will pay 100 per cent of clinical care costs while Support at Home recipients will make a contribution towards independence and everyday living costs. The contribution amount will be calculated using the Age Pension means test and it depends on the level of support needed and the combination of income and assets. The highest classification with the most funding will receive a package of services worth $78,000 per year. There’ll also be funding for assistive technology and home modifications and end of life care. A new cap on contributions will also apply. No one will pay more than $130,000 in their lifetime – whatever their means or length of care at home or in residential accommodation. Refunding deposits The new Aged Care Act also requires aged care accommodation providers to refund residents’ lump sum deposits within 14 days if they move to another facility or pass away. Interest must be paid on the lump sum until the amount is repaid. As before, some deductions are permitted provided they were included in the original agreement. No disadvantage For those already receiving home care packages or in aged care accommodation, the government says a ‘no-worse-off’ principle will provide certainty that they won’t have to pay more under the new laws. Whether it is you or a loved one who is considering moving into aged care, it can be an emotional time. With these new changes being implemented, you may have a few questions. Please give us a call if you’d like to hear more about the changes or if we can help to assess your next step or plan ahead. i Once in a generation aged care reforms | Health Portfolio Ministers | Australian Government Department of Health and Aged Care ii Support at Home program | Australian Government Department of Health and Aged Care iii About the Single Assessment System for aged care | Australian Government Department of Health and Aged Care --- ### Federal Budget 2025-26 Analysis - Published: 2025-03-27 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/federal-budget-2025-26-analysis/ - Categories: Insights Treasurer aims to “rebuild living standards” Much of the 2025 Federal Budget was already known, after a volley of pre-election spruiking for votes. But Treasurer Jim Chalmers had one surprise up his sleeve - $17 billion in tax cuts. The first round of cuts will kick in on 1 July 2026 and second round on 1 July 2027, saving the average earner $536 each year when fully implemented. With the next Federal Election due to be called any day, the Treasurer named five priorities for his fourth budget: helping with the cost of living, strengthening Medicare, building more homes, investing in education, and making the economy stronger. He called it a plan for “a new generation of prosperity in a new world of uncertainty” that would help “finish the fight against inflation”. The big picture The Budget deficit has made an unwelcome, but not surprising, return. The Albanese government has been clear that we were headed back into the red and Treasurer Chalmers says the $42. 1 billion deficit is less than what was forecast at both the last election and at the mid-year update. Gross debt has been reduced by $177 billion down to $940 billion, saving around $60 billion in interest over the decade. Nonetheless, Australia is navigating choppy international waters with a “volatile and unpredictable” global economy. Australia will feel the shockwaves from escalating trade tensions, two major global conflicts – in Ukraine and the Middle East, and slowing growth in China. Treasury predicts the global economy will grow by 3. 25 per cent in each of the next three years in the longest stretch of below-average growth since the early 1990s. However, Australia is in a good position to deal with the difficult conditions, the Treasurer says. The Australian economy has “turned a corner” and continues to outperform many advanced economies. Inflation has moderated “significantly”, and the labour market has outperformed expectations. Meanwhile growth is predicted to increase from 1. 5 per cent to 2. 5 per cent by 2026-27. Addressing the cost of living With the rising cost of living expected to be central to the upcoming election campaign, the Budget aims to deliver more support to those doing it tough with further tax cuts, changes to Medicare and the Pharmaceutical Benefits Scheme (PBS), cuts to student debt and wage increases for aged care and childcare workers among a number of initiatives Apart from the new tax cuts due in 2026 and 2027, the government will increase the Medicare levy low-income thresholds from 1 July 2024. The energy bill relief is also being extended to the end of this year. At a cost of $1. 8 billion, every household and around one million small businesses will each receive $150 off their electricity bills in two quarterly payments. The government claims that energy bill relief has helped to drop electricity prices by 25. 2 per cent across 2024. Students aren’t forgotten in the Budget with a cut of $19 billion in student loan debt, with all outstanding student debts reduced by 20 per cent and a promised change to make the student loan repayment system fairer. The government is tackling the cost of living where it’s often most obvious – at the cash register. It is providing support for fresh produce suppliers to enforce their rights and will make it easier to open new supermarkets. It’s also planning to focus on “unfair and excessive” card surcharges. Looking for a clean bill of health Almost $8 billion will be spent to expand bulk billing, the largest single investment in Medicare since its creation 40 years ago. Treasurer Chalmers says nine-out-of-10 GP visits should be bulk billed by the end of the decade with an extra 4,800 bulk billing practices. There’ll also be another 50 Urgent Care Clinics across the country, taking the total to 137, and public hospitals will get a boost of $1. 8 billion to help cut waiting lists, reduce waiting times in emergency rooms and manage ambulance ramping. Cheaper medicines The cost of medicines is also in the government’s sights. The maximum cost of drugs on the Pharmaceutical Benefits Scheme (PBS) will be lowered for everyone with a Medicare Card and no concession card. From 1 January 2026, the maximum co-payment will be lowered from $31. 60 to $25. 00 per script and remain at $7. 70 for pensioners and concession cardholders. Four out of five PBS medicines will become cheaper for general non‑Safety Net patients, with larger savings for medicines eligible for a 60‑day prescription. An extra $1. 8 billion is also being invested to list new medicines on the PBS. Increasing the housing stock The government’s previously announced target of 1. 2 million new homes over five years has seen 45,000 homes completed in the first quarter. The budget sees an extra $54 million to encourage modern construction methods and $120 million to help states and territories remove red tape. With building set to increase, more apprentices are needed, and the government has announced financial incentives of up to $10,000 to encourage more people to take up apprenticeships in building trades. Some employers may also be eligible for $5,000 incentives for hiring apprentices. The Help to Buy program that allows homebuyers to get into the market with lower deposits and small mortgages will be expanded with an extra $800 million to lift property price and income caps to make the scheme more accessible. To help increase housing stock available, foreign buyers will be banned from purchasing existing dwellings for two years from 1 April 2025. Land banking by foreign owners will also be outlawed. Recovering and rebuilding The damage from ex-Tropical Cyclone Alfred and subsequent rains in Queensland and northern New South Wales is so extensive that it is expected to wipe a quarter of a percentage point off quarterly growth. Flooding has damaged infrastructure and disrupted supply chains, agricultural production, construction, retail, and tourism activity. The government expects costs of at least $13. 5 billion in disaster support. As a result, the Budget includes $1. 2 billion to be placed in a contingency fund to better respond to future disasters. Looking ahead Despite concerning events on the world stage, Australia’s economy is emerging “in better shape than almost any other advanced economy”. Inflation and unemployment are coming down and wage growth will be stronger. To help underpin continuing economic growth, the Budget adds $22. 7 billion to the government’s Future Made in Australia agenda. It includes extra investment in renewable energies and low emissions technologies and an expansion of the Clean Energy Finance Corporation. The plan also includes more than $15 billion in support for private investment in hydrogen and critical minerals production, clean energy technology manufacturing, green metals, and low carbon liquid fuels. And, as the trade war kicks off, the Budget allocates $20 million to a Buy Australian campaign. “The plan at the core of this Budget is about more than putting the worst behind us. It’s about seizing what’s ahead of us,” the Treasurer says. If you have any questions about the Budget measures announced, please don’t hesitate to contact us. Information in this article has been sourced from the Budget Speech 2025-26 and Federal Budget Support documents. It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change. --- ### Combining work and play when you’re away - Published: 2025-03-25 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/combining-work-and-play-when-youre-away/ - Categories: Insights For years it was thought that technology would make business travel obsolete, but as anyone who has had to suffer through a videoconference with a bad connection will probably agree, sometimes, face to face interaction can’t be replaced. In recent years, the landscape of work and travel has been evolving and intersecting in exciting ways. Two travel opportunities that are gaining traction are “bleisure”—the blend of business and leisure travel—and “workcation”, which involves working while on vacation. With more professionals embracing remote work and organisations supporting flexibility of working arrangements and redefining what “being at work” looks like, these concepts are not just fads; they are reshaping how we think about our work-life balance. According to a report from Expedia Group, 60 per cent of business travellers have extended their trips for leisure, demonstrating that many are eager to combine work and play. i Moreover, a survey found that 86 per cent of remote workers expressed interest in travelling while working, signalling a significant appetite for this lifestyle. ii The appeal of bleisure and workcations So, what makes these trends so enticing? From a financial standpoint, both employees and employers stand to benefit. For instance, by returning on a Tuesday during the day instead of a Friday evening and taking a few days off; the return flight may be cheaper (since mid-week flights are usually the least expensive) and the employee only has to pay for the extra accommodation days. The environmental benefits are another aspect. By decreasing the number of flights taken, organisations contribute to lower carbon emissions, aligning with sustainability goals that are increasingly important today. Plus, supporting bleisure and workcations cultivates a positive workplace culture. When employees feel that their organisation values work-life balance, they’re more likely to stick around. Higher satisfaction translates to better retention, creating a loyal and motivated team. And finally, beyond the excitement of spending time in a different location, there’s also mental health and productivity benefits for employees, with a study finding that experiencing new places can enhance creativity and improve problem-solving skills. iii Tips for managing work and play While the idea of blending work and leisure sounds delightful, managing this effectively requires some thoughtful planning and care when you are in the swing of things. Set clear boundaries: Before you embark on your trip, be clear on your work commitments. Designate specific work hours and stick to them. This helps ensure that your leisure time is truly enjoyable and free from work distractions. Note that bleisure doesn’t necessarily mean squeezing in a few days around a business trip, it can also mean just taking advantage of the fact that you are in another city to go to a show or try a new restaurant after the work is done for the day. Budget wisely: Keeping track of expenses is crucial. Use separate credit cards for business and personal spending, so there is no possibility of a personal expense getting mixed up with work costs (and vice versa). If that’s not feasible, then keep detailed records and receipts daily so you can submit expense reports correctly once back. Apps like Expensify or Mint can be useful to log your costs and categorize them. The ATO continues to focus on work-related and personal travel expenses at tax time to ensure people are not ‘double-dipping’ when claiming expenses. Remember, many companies cover travel costs but understanding what’s reimbursable is key to avoiding surprises when you are back. Stay organised: Make sure you have the right tools to work efficiently while on the go. A reliable laptop, mobile hotspot, and noise-cancelling headphones can enhance your productivity. Also, check the local Wi-Fi situation before you arrive to avoid any connectivity issues. Prioritise self-care: It’s easy to over-schedule your days with work and activities and when you are juggling work it can make for a frenetic pace. Make sure to carve out time for rest and relaxation. Enjoy a leisurely breakfast or take an afternoon stroll. Balancing work with downtime is essential for maintaining energy and focus. So, next time you book a business trip, consider how you could transform it into a bleisure adventure or extend your next holiday and include a productive workcation. After all, life is too short not to mix a little work with a bit of play! i The return of business travel, and the rise of the flexcation | Expedia Group ii Balancing Work And Vacation For Optimal Career Performance | Forbes iii How Travelling Can Boost Your Creativity and Problem-Solving Skills | paddl --- ### Forget forgetting – simple ways to improve your memory - Published: 2025-03-18 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/forget-forgetting-simple-ways-to-improve-your-memory/ - Categories: Insights We’ve all heard the old saying ‘an elephant never forgets’- but unlike elephants, we humans certainly don’t have flawless recall. Forgetting where you left your keys or the name of the person you met last week, is all too familiar. Memory lapses happen to the best of us, but there are ways to sharpen your memory and boost brainpower. How are memories formed? Memory works through three key stages: encoding, storage, and retrieval. Encoding is when the brain processes information from your senses and turns it into a format that can be stored. Next, short-term memories are stored briefly, while long-term memories are kept in the brain called the hippocampus. Finally, retrieval is recalling stored memories, triggered by cues such as sights, sounds, or emotions. While memory helps us navigate life, it can sometimes be imperfect, influenced by a range of factors. The good news is there are things you can do to help your brain stay sharp. Tips to improve memory Sleep: your brain’s power nap We know that feeling when we’re sleep-deprived: foggy and wondering why we walked into a room in the first place. Well, there is a reason for that, your brain processes and stores new information while you sleep and deep sleep helps to consolidate memories, so the more restful your slumber, the better your memory. Exercise: more than just physical gains It’s not just your muscles that benefit from a good workout—your brain does too! Studies have shown that regular physical exercise can improve memory and cognitive function. When you move, your heart pumps more oxygen to your brain, and new brain cells are formed. Plus, exercise helps to reduce stress, which can negatively impact your memory. You don’t need to run marathons or lift massive weights, a simple brisk walk can work wonders. Stress less: your memory needs it Stress is like that annoying cold caller who just won’t leave you alone. It messes with your ability to think clearly, hampers memory recall, and can even damage your brain over time. Stress, especially chronic stress, can interfere with the part of your brain responsible for memory so finding ways to unwind, like taking a warm bath, or simply taking deep breaths, can help support memory. Keep your brain engaged: never stop learning Your brain functions in a similar manner to a muscle—the more you use it, the stronger it gets. Keep your brain engaged; do crosswords and jigsaw puzzles. Learn new things, whether it’s a new language or a musical instrument to build neural connections and keep your memory sharp. The trick is to constantly challenge yourself – by the time you sound OK on that instrument, your brain is not working as hard, so step things up a notch or take on a new endeavour. Memory techniques help Did you know that ancient Greeks used to memorise long speeches using specific techniques? One popular method is called the memory palace technique. It’s creating a vivid mental image of a place you’re familiar with, like your house, and mentally placing the things you want to remember in different rooms or corners. For example, if you need to remember a list of groceries, imagine placing bananas in the kitchen, milk in the living room, and bread in the hallway. When it’s time to recall the list, you just “walk” through your memory palace and pick up the items. It may sound a bit wacky, but it works! Or, who better to look to for memory techniques than Dave Farrow, Guinness Record holder for memorizing 59 decks of shuffled cards, which is an astounding 3,068 cards. i In addition to the memory palace technique, Dave uses a quirky trick: looking up. Nobody knows why looking up works when we are trying to recall something, but we do know that it sends more energy to your cerebral cortex and hippocampus, the memory centres of the brain. Remember, your brain is your most valuable asset—treat it well and try some of these strategies. Before you know it, you might be impressing your friends with how sharp your memory is (and avoiding turning the house upside down to find your keys! ). i https://www. guinnessworldrecords. com/world-records/most-decks-of-playing-cards-memorized-single-sighting --- ### 5 ways to boost your super - Published: 2025-03-11 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/5-ways-to-boost-your-super/ - Categories: Insights What’s your super strategy? Did you know it’s likely you’ll spend up to two or more decades in retirement? It’s a long time, so will you be able to afford all the things you’ve thought of doing in retirement before your savings run out? By starting now and making small changes to how you approach your super savings, you can get closer to the retirement you’d like – and hopefully make your savings last longer. Note: Some of the strategies explained below are subject to your total super balance cap (combined value of your accumulation and pension accounts). For more information visit the Australian Taxation Office website or speak to us. In the meantime, here are five strategies to help you build a bigger super balance. 1. Consider consolidating your super funds If you’ve moved jobs or done casual work over the years, you might have money in several super funds. One super account means less paperwork and not having to manage multiple super accounts. There are a few things to think about before you consolidate your super: Weigh up the benefits and features of your other super funds against your chosen super account. Check the tax implications and see if your tax and preservation components will be impacted. Speak to us for more information. Compare the fees of your funds and check for exit or termination fees. Don’t forget your insurance. Check if your chosen super account will give you appropriate cover to replace any cancellation of insurance cover that will occur by consolidating your accounts. Appropriate insurance can include level and types of cover as well as policy terms. If you have a pre-existing medical condition, consider whether you’ll be eligible for the same level of cover if you cancel your existing insurance policy. If you intend to claim a tax deduction for personal contributions made into your other fund, there’s something you need to do first. Ensure your “Notice of intent to claim a deduction for personal contributions” is made and acknowledged by that fund. For more information about eligibility and/or to obtain this form visit the Australian Taxation Office website. If you consolidate your super, you’ll have fewer funds to manage and it’ll be easier to keep track of your retirement savings. 2. Make personal contributions By making a personal super contribution and claiming the amount as a tax deduction, you may be able to pay less tax and invest more in super. The contribution will generally be taxed in the fund at the concessional rate of up to 15 per cent instead of your marginal tax rate which could be up to 47 per cent, including the Medicare Levy. Additional 15 per cent tax applies to concessional super contributions if your combined income and concessional contributions exceed $250,000. Visit the Australian Taxation Office website to check the latest tax rates. This strategy could result in a tax saving and enable you to increase your super balance. To claim the super contribution as a tax deduction, you need to submit a valid ‘Notice of Intent’ form. You’ll also need to receive an acknowledgment from the super fund. You’ll need this before you complete your tax return, start a pension or withdraw or rollover money from the fund you made your personal contribution to. It’s generally not tax-effective to claim a tax deduction for an amount that reduces your taxable income below the threshold. This is because you would end up paying more tax on the super contribution than you would save from claiming the deduction. We recommend you speak to us or your tax consultant to get the right advice for you. 3. Salary sacrificing You might also be able to reduce your tax and boost your super balance through salary sacrifice. This is an agreement with your employer to contribute a certain amount of your pre-tax salary or potential bonus into your super. The word sacrifice doesn’t really make this strategy sound appealing, but it has some great benefits. Instead of being taxed at your marginal tax rate, these contributions are generally taxed at the concessional rate of up to 15 per cent (an additional 15 per cent tax applies to concessional super contributions if your combined income and concessional contributions exceed $250,000). If you’re a high income earner, you’ll be taxed an extra 15 per cent on your before-tax contributions (30 per cent in total). However, this is still lower than your marginal tax rate of 47 per cent (including the Medicare Levy). Making before tax contributions to super can be a tax effective way of building wealth. Before tax (or concessional) contributions also include mandatory contributions made by your employer and are capped at $30,000 per year regardless of your age. Penalties apply for exceeding the cap. The Government’s MoneySmart website has a great super contributions optimiser calculator that can give you an idea of how salary sacrificing can affect your super and take home pay. If you like the idea of salary sacrificing, it’s a good idea to discuss it with your employer and see if you can make an arrangement with them to do this. You should also seek advice from a tax agent or speak to your financial adviser to determine if this strategy suits your financial situation. 4. Make after-tax super contributions Maybe you’ve received an inheritance, a bonus, or sold an asset? If you are considering making non-concessional (after-tax) contribution to you super, there are important things to consider. The after-tax contributions cap is $120,000 pa, or up to $360,000, if you bring forward two years’ worth of contributions. To be eligible to make non-concessional contributions, certain requirements must be met. For more information visit the Australian Taxation Office website or contact us. Government super co-contributions also help eligible people boost their retirement savings. If you’re a low income earner and you make personal (after-tax) contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500. The amount of government co-contribution you receive depends on your income and how much you contribute. When you lodge a tax return, the ATO will work out if you’re eligible. If the super fund has your tax file number (TFN) they’ll pay it to your super account automatically. The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions. You can visit the ATO website for specific income levels and amounts. You may be able to make after-tax contributions to your super before you turn 67 even if you’re not working. After 67, you’ll need to meet a ‘work test’ each financial year to be able to make after-tax contributions (you’ll need to have worked 40 hours over a consecutive 30 day period), or are eligible for the work test exemption. And you can’t make after-tax contributions once you’re 75. 5. Top up your spouse’s super Is your spouse working part-time, earning a low income or currently not working (but not retired)? If so, you may both be able to benefit by making a ‘spouse contribution’ to their super account. If your spouse’s assessable income is less than $40,000 and you make a spouse contribution on their behalf into their super account, you’ll receive a tax offset of up to $540 a year. Other eligibility criteria apply. You should also seek advice from a tax agent or speak to your financial adviser to determine if this strategy suits your financial situation. Source: NAB Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www. nab. com. au/personal/life-moments/work/plan-retirement/boost-super National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances. © 2025 National Australia Bank Limited (“NAB”). All rights reserved. Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Turbocharge your super before 30 June - Published: 2025-03-11 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/turbocharge-your-super-before-30-june/ - Categories: Insights More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s Moneysmart website. While most financial goals include saving money and paying down debts, the months leading up to 30 June provide an opportunity to review your super balance to look at ways to boost your retirement savings. What you need to consider first If you have more than one super account, consolidating them to one account may be an option for you. Consolidating your super could save you from paying multiple fees, however, if you have insurance inside your super, you may be at risk of losing it, so contact us before making any changes. i How to boost your retirement savings Making additional contributions on top of the super guarantee paid by your employer could make a big difference to your retirement balance thanks to the magic of compounding interest. There are a few ways to boost your super before 30 June: Concessional contributions (before tax) These contributions can be made from either your pre-tax salary via a salary-sacrifice arrangement through your employer or using after-tax money and depositing funds directly into your super account. Apart from the increase to your super balance, you may pay less tax (depending on your current marginal rate). ii Check to see what your current year to date contributions are so any additional contributions you may make don’t exceed the concessional (before-tax) contributions cap, which is $30,000 from 1 July 2024. iii Non-concessional contributions (after tax) This type of contribution is also known as a personal contribution. It is important not to exceed the cap on contributions, which is set at $120,000 from 1 July 2024. iv If you exceed the concessional contributions cap (before tax) of $30,000 per annum, any additional contributions made are taxed at your marginal tax rate less a 15 per cent tax offset to account for the contributions tax already paid by your super fund. Exceeding the non-concessional contributions cap will see a tax of 47 per cent levied on the excess contributions. Carry forward (catch-up) concessional contributions If you’ve had a break from work or haven’t reached the maximum contributions cap for the past five years, this type of super contribution could help boost your balance – especially if you’ve received a lump sum of money like a work bonus. These contributions are unused concessional contributions from the previous five financial years and only available to those whose super accounts are less than $500,000. There are strict rules around this type of contribution, and they are complex so it’s important to get advice before making a catch-up contribution. Downsizer contributions If you are over 55 years, have owned your home for 10 years and looking to sell, you may be able to make a non-concessional super contribution of as much as $300,000 per person – $600,000 if you are a couple. You must make the contribution to you super within 90 days of receiving the proceeds of the sale of your home. Spouse contributions There are two ways you can make spouse super contributions, you could: split contributions you have already made to your own super, by rolling them over to your spouse’s super – known as a contributions-splitting super benefit, or contribute directly to your spouse’s super, treated as their non-concessional contribution, which may entitle you to a tax offset of $540 per year if they earn less than $40,000 per annum Again, there are a few restrictions and eligibility requirements for this type of contribution. Get in touch for more information about your options and for help with a super strategy that could help you achieve a rewarding retirement. i Transferring or consolidating your super | Australian Taxation Office ii Salary sacrificing super | Australian Taxation Office iii Concessional contributions cap | Australian Taxation Office iv Non-concessional contributions cap | Australian Taxation Office --- ### How political events affect the markets - Published: 2025-03-04 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/how-political-events-affect-the-markets/ - Categories: Insights From the economy bending policies of Trump 2. 0 to the growing strength of the far right in Europe, the new alliance between Russia and the United States, the wars in Ukraine and the Middle East, and the US President’s vow to upturn world trade rules, the markets are certainly navigating tricky times. In recent months we’ve seen volatility in some areas but cautious optimism in others in a reflection of the hand-in-glove relationship between politics and markets. Of course, economic policies, laws and regulations– think tax increases or decreases, new business regulations or even referendums – have a big effect on how investors allocate their portfolios and that impacts market performance. In 2016, when the United Kingdom voted to leave the European Union, the UK pound plunged and more than US$2 trillion was wiped off global equity markets. i In the following four years until Brexit was finally achieved in 2020, the FTSE 100 performed poorly compared to other markets as domestic and international investors looked elsewhere to avoid risk. While it has risen since a massive drop during the coronavirus pandemic, the exodus of companies from the London Stock Exchange continues with almost 90 departures in 2024. ii Interest rate movements and any hint of political instability can also bring about a sell off or a rally in prices, with companies holding off on capital investment and causing economic growth to slow. iii Global oil prices rose 30 per cent in 2022 when Russia invaded Ukraine causing European stock markets to plunge 4 per cent in a single day. iv Since then, oil prices have fluctuated and are now back to pre-war levels and gold has reached new heights as investors globally look for a safe haven from high geopolitical risks. Do elections have an effect? Elections, which almost always cause market disruptions during the uncertainty of the campaign period and shortly after the vote is known, have featured strongly in the past six months or so. A review of 75 years of US market data has found that, while there may be outbursts of volatility in the lead up to the vote, there’s minimal impact on financial market performance in the medium to long term. The data shows that market returns are typically more dependent on economic and inflation trends rather than election results. v Nonetheless, the noisy 2024 US Presidential campaign saw some ups and downs in markets during the Democrats’ upheaval and the switch to Kamala Harris as candidate. Donald Trump’s various policy announcements on taxes, immigration, government cost cutting and tariffs both buoyed and dismayed investors. Analysis by Macquarie University researchers of the three days before and after election day found significant abnormal returns in US equities immediately after the vote. vi But the surge was short-lived as investor sentiment fluctuated. Small cap equities with more domestic exposure experienced the highest returns while the energy sector also saw substantial gains, in anticipation of regulatory changes. While currently the S&P500 and the Nasdaq have both gained overall since the election, there’s been extreme share price volatility. How Australia has fared Meanwhile, any impact on markets ahead of Australia’s upcoming federal election has so far been muted thanks to the volume of world events. The on-again off-again US tariffs are causing more concern here for both policymakers and investors. Tariffs on our exports could mean higher prices and a drop in demand for our goods and services, leading to economic uncertainty. In early February, the Australian share market took a dive immediately after President Trump’s announcement of tariffs on Mexico, Canada and China, wiping off around $50 billion from the ASX 200. They recovered slightly only to fall again later as the Reserve Bank cut interest rates. In the US, some tech companies delayed or cancelled their listing plans because of the volatility and uncertainty caused by the announcements. vii Amid a turbulent start to 2025, most economists agree the markets are unlikely to hit last year’s 7. 49 per cent achieved by the S&P ASX 200. Reserve Bank of Australia governor Michele Bullock is similarly downbeat on the prospects for the year, saying uncertainty about the global outlook remains “significant”. viii Please get in touch if you’re watching world events and wondering about the impact on your portfolio. i Post-Brexit global equity loss of over $2 trillion worst ever -S&P ii London Stock Exchange suffers biggest exodus since financial crisis iii Policy Instability and the Risk-Return Trade-Off | St. Louis Fed iv Why Financial Markets Are Sensitive to Political Uncertainty v How Presidential Elections Affect the Stock Market | U. S. Bank vi 2024 presidential election: U. S. equities surged, then retreated, after Trump’s victory vii They’ve Been Waiting Years to Go Public. They’re Still Waiting. – The New York Times viii Statement by the Reserve Bank Board: Monetary Policy Decision | Media Releases | RBA --- ### The benefits of automating your personal finances - Published: 2025-02-25 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/the-benefits-of-automating-your-personal-finances/ - Categories: Insights In today’s fast-paced world, where every minute counts, managing personal finances can feel like another tedious task. However, thanks to the rise of personal finance automation, managing these tasks, can now be handled with minimal effort on your part. Whether you’re a professional, a business owner or someone who is busy and looking to streamline your personal financial life, it makes sense to automate. Save time One of the biggest advantages of automating your finances is the time it saves you. Instead of manually paying bills, tracking spending, or worrying about due dates, automation takes care of these tasks for you. Prevent late payments and penalties – and mistakes! One of the most common pitfalls of personal finance management is missing the due date of your bill payments. Whether it’s your rent, mortgage, or utility bills, setting up automatic payments ensures that deadlines are always met, and penalties or late fees are avoided. Managing your finances manually can often lead to mistakes, whether it’s miscalculating a bill, forgetting to budget for a specific expense, or accidentally double paying an invoice. Automation helps eliminate human errors, ensuring that all your financial tasks are completed accurately. Keep your finances on track Automated tools can also track your spending habits, categorise your expenses, and provide insights into your financial behaviour. This can be particularly helpful for budgeting, allowing you to see where your money is going and make informed decisions about your spending habits and saving. Getting started The good news is that personal finance automation doesn’t have to be complicated. Here are a few simple tips to help you get started: Automate your bill payments Start by setting up automatic payments for your regular bills; such as utilities, rent or mortgage and credit cards. Most service providers offer online payment portals where you can link your bank account, debit, or credit card and set up recurring payments. You can schedule them to occur on specific dates each month, ensuring that everything is paid on time. You can also use apps like GetReminded to receive reminders when contracts are set to expire such as utility bills and insurance and some even enable comparisons with providers, making it easier to shop around. Make it easier to get ahead Budgeting apps like Mint, YNAB, or PocketGuard can enable you to create a spending plan. These apps automatically sync with your bank and credit card accounts, categorising your spending and tracking your progress against your financial goals. Once your budget is set, automate your savings by scheduling regular transfers to a savings account or investment portfolio. Apps like Qapital or Digit can help you set up automated savings that round up your purchases or take a small percentage of your income and save it for you. Even saving just $20 a week automatically can add up over time, and you probably won’t even miss the money! Set up alerts and track your progress Most of the major banks also have apps that can be used for a variety of financial services. Use your banking app or personal finance tool to set up alerts for when your balance hits a certain threshold or when you exceed your budget for a specific financial category. This will keep you informed and allow you to adjust as needed. Additionally, tracking your progress over time will give you a clear sense of achievement and motivate you to stick to your financial goals. Prepare for tax time Of course, we are always about being as organised as possible for tax time and finance automation can be your friend when it comes to having to substantiate any tax claims. The ATO app myDeductions can help you keep your tax records organised. It allows you capture information on the go, making tax time easier. The myDeductions app can record work-related expenses for your car travel, uniform, self-education, bank interest, and dividends. You can also email your records to us! Personal finance automation is one of the easiest ways to simplify your financial life and give you more time to focus on what matters most to you. Start small, and before you know it, you’ll have a financial system that works for you, not the other way around. --- ### Granny flats: tax traps and tips - Published: 2025-02-18 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/granny-flats-tax-traps-and-tips/ - Categories: Insights With more older Australians looking to downsize and younger generations looking to get a foot on the property ladder, building a granny flat or a second dwelling in your backyard has become a more affordable solution. In 2023, CoreLogic analysis of residential properties in Sydney, Melbourne and Brisbane found more than 655,000 sites suitable for constructing a granny flat. i It has become such a popular option that there are now a host of businesses providing modular buildings as an alternative to designing and building your own. Before taking the leap, make sure you have checked out local council regulations, restrictions and permit costs. Rules vary from council to council and usually include restrictions on the size and location. Tax implications It’s also important to know there are potential tax consequences – particularly capital gains tax (CGT). While, for some, a granny flat may be considered a secondary dwelling on a property, to be eligible for a CGT exemption, there needs to be a written agreement giving someone the right to occupy a property for life. ii The agreement can be entered into with any party – including family and friends – and will be exempt from CGT, provided the person with the ‘granny flat interest’ has reached pension age, or requires assistance with their day-to-day activities because of a disability. Granny flat or investment property? There are important differences between a granny flat arrangement and building a secondary dwelling on your property as an investment or renting out a room in your home. A second home on a property that is used for short or long-term rental purposes is considered a commercial arrangement and the rent you receive is assessable income, on which you pay income tax on at your marginal tax rate. Like most income-producing activities, you are entitled to claim the normal expense deductions against the rental income. Granny flat arrangements, on the other hand, must not be a commercial arrangement. Capital gains Capital gain can be an issue that needs to be considered when setting up a granny flat arrangement. If you don’t follow the rules, you may find yourself with an unexpected tax bill when you eventually sell your home. Usually, a granny flat arrangement is exempt from CGT provided it is not commercial in nature. This means if the person living in the granny flat is required to make payments (such as rent) at a market rate, CGT will apply. If the individual only contributes to ongoing household costs (such as electricity and water) however, the ATO is unlikely to consider it a commercial arrangement. To qualify for the CGT exemption, the property owner must be an individual, one or more individuals must have an eligible granny flat interest in the property, and both parties must have entered into a written and binding granny flat arrangement. The CGT exemption only applies to creating, changing or terminating a granny flat arrangement. Other CGT events unrelated to a granny flat arrangement, or outside the arrangement, are subject to normal CGT rules and may be liable for CGT. For example, the sale of a property previously used in a now terminated granny flat arrangement is still subject to the normal CGT rules. Tips for a successful arrangement While adding another dwelling to your property may increase the value of your home, it’s essential to get all the parties together to consider possible future scenarios before the written agreement is signed to avoid any potential problems further down the track. The agreement should cover everyone involved in the arrangement, the circumstances in which the agreement can be varied or terminated and what happens if this situation arises. It’s also sensible to discuss how any problems or financial conflicts will be resolved and to seek professional legal advice before signing. We can help explain the tax rules if you’re interested in setting up a granny flat arrangement, so call our office today. i Untapped granny flat potential in largest capitals could boost housing supply | CoreLogic Australia ii Granny flat arrangements and CGT | Australian Taxation Office --- ### Thinking about an SMSF? Here’s what you need to know - Published: 2025-02-11 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/thinking-about-an-smsf-heres-what-you-need-to-know/ - Categories: Insights Some investors find it satisfying to take a do-it-yourself approach to retirement savings – taking on the responsibility for the growth of their retirement savings in a self-managed superannuation fund (SMSF). While you have total control over how your retirement funds are invested within the confines of the laws, many factors need to be considered first. Before taking the plunge, weigh up the risks and rewards by understanding the various super and tax laws, check out the costs involved as well as the level of administration required and start considering your investment strategy. What you need to know Setting up an SMSF can be a complex and time-consuming process and there are quite a few regulations and rules that you need to be familiar with before setting up an SMSF. Therefore, seeking professional advice can be beneficial to get your SMSF off on the right foot so it qualifies for the tax concessions available through the super system. We can assist to ensure your SMSF is set up correctly in the first instance to ensure you are eligible for the tax concessions and it is easier to administer throughout the year. The advantages of an SMSF A SMSF offers several advantages, particularly for individuals who want more control over their retirement savings and investments. Some of the key pros of having an SMSF include: Investment control SMSF members have complete control over their investments, you decide where to invest and when assets are disposed. You could also incorporate in property as part of your portfolio. Estate planning SMSF members can set up binding death benefit nominations to specify how their superannuation will be distributed after they pass away. Asset protection SMSFs can protect members from bankruptcy and litigation, and their superannuation benefits are usually protected from creditors. Diversification An SMSF has greater access to investment options and a diversified SMSF portfolio could reduce risk and improve returns over time. Speaking to your accountant or financial adviser can help to ensure you are well-diversified. Tax advantages SMSFs have one of the lowest tax rates in Australia. Other tax credits can help to further reduce the tax rate. Lower costs Running your own SMSF can have lower ongoing costs, especially for larger funds. Lump sum payments SMSF can pay benefits as a lump sum, a pension or a combination if the payment is under the laws and the trust deed. The disadvantages of an SMSF While there are several benefits to having an SMSF, there are also some drawbacks and challenges. Here are some of the main things to consider: Responsibility and learning Trustees must understand and comply with legal and financial requirements. Cost SMSFs can be expensive to set up and maintain, especially for SMSFs with smaller balances. Time and effort Running an SMSF requires a significant amount of time, effort, and expertise. Engaging with your accountant or financial adviser for assistance and ongoing support can help to ease the burden. Risk SMSFs are not guaranteed by the government, and investment returns are not guaranteed. If you lose money, you won’t have access to the government compensation scheme. Is an SMSF right for you? Setting up an SMSF is worth the time for those who want greater control over their retirement savings, however before you start, you need to consider whether you are comfortable taking on the responsibility of making investment decisions and if you will have the time to manage the ongoing administration tasks associated with it. Get professional help Establishing and running an SMSF is not something you can do easily without professional assistance. Many of the legal and regulatory requirements are complex and must be adhered to ensure the fund is compliant. These requirements are also regularly updated or changed so you’ll need to keep an eye on any new obligations. Many trustees need help with the day-to-day running of the fund and to meet its ongoing reporting and administrative obligations. If you are considering setting up an SMSF, give us a call. We can help you decide whether an SMSF is right for you and assist you with the set-up and administration of the fund if you decide to proceed. --- ### Market movements and review video – February 2025 - Published: 2025-02-04 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-february-2025/ - Categories: Insights Stay up to date with what’s happened in the Australian economy and markets over the past month. Headline inflation eased more than expected during the last three months of 2024 – opening the door for the RBA to cut the cash rate. While the release of China-based DeepSeek’s new cut-price AI model sent shockwaves through markets late in the month, they quickly recovered ground. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### Things to do today that your future self will thank you for - Published: 2025-01-28 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/things-to-do-today-that-your-future-self-will-thank-you-for/ - Categories: Insights Achieving your long-term financial goals doesn’t need to be overwhelming. If you can put in place some basic financial steps, you are on the road to a successful outcome. It means keeping on top of your options and devising strategies for investment, debt reduction and risk protection. The start of the year is a perfect time to take a few proactive steps, that your future self will thank you for. Building your nest egg Adding to your superannuation is one of the most powerful and tax-effective ways to build your wealth over the long term. If you’re an employee, consider salary sacrifice to add to the mandatory contributions made by your employer. Even a small amount, paid regularly, will make a big difference over time. Don’t forget that there are some limits on how much you can invest before tax is affected, so it’s a good idea to keep track of any before-tax, or concessional, contributions. i Small business owners, sometimes struggling with cash flow issues, may be tempted to neglect their own super contributions but you risk missing out on the benefits later in life. Finding ways to cut living expenses and reducing or eliminating debt, including paying off the mortgage as quickly as possible, are also obvious ways to attain financial security, although not always easy to implement with cost-of-living pressures. But, again, any small and regular steps towards your goal are a positive contribution. Preparing for the unexpected Apart from finding ways to build your wealth and reducing debt, being prepared for unexpected losses is another way to secure your future. For example, losing your home, business premises or vehicle in a catastrophic event when you’re not adequately insured creates a significant financial burden. As natural catastrophes increase in frequency and intensity so does the ‘protection gap’, the economic losses caused by underinsurance or no insurance. One study estimated these losses in Australia at more than $18 billion in the nine years to 2023. ii The Insurance Council of Australia (ICA) says there are some common reasons for underinsurance. iii Making an incorrect guess about how much it would cost to repair, rebuild or replace property and contents. The ICA suggests using a building insurance calculator and a contents insurance calculator. Most insurers include both types of calculators on their websites. Forgetting to update your insurance after upgrades to your home and belongings. Renovations, new furniture, and upgraded appliances can all add to the value of your home. It’s a good idea to reconsider the value of replacement at least every time you renew your policy. Adding the extra costs such as demolition, clean-up, asbestos removal, council applications, architect, and surveyor services, and even the cost of temporary accommodation during a rebuild. Not accounting for all your assets – you probably own a lot more than you realise. Have you included the contents of your garden shed and you wardrobe? Financial protection for personal events Protecting yourself financially against unexpected personal events is also worth weighing up. A survey of more than 5000 working Australians shows that, on average, almost 80 per cent have car insurance while just one-third have life insurance. iv Life insurance is a valuable protection for your family if something happens to you. There is also income protection insurance and various other personal insurances that can ensure you continue to receive an income when you’re unable to work. While cost-of-living pressures might make insurance or self-insurance seem like a luxury you can’t afford, making an informed choice is the best you can do. That means the financial risks associated with events that affect yourself or your property and carefully weighing your options. We’d be happy to help you review your wealth building and risk strategies and solutions for a financially safer 2025 and beyond. i Concessional contributions cap | Australian Tax Office ii Insurance Catastrophe Resilience Report | Insurance Council of Australia iii The risk of underinsurance | Insurance Council of Australia iv Financial security takes back seat exposing advice crisis | CALI --- ### Is a retirement village right for you? - Published: 2025-01-21 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/is-a-retirement-village-right-for-you/ - Categories: Insights The retirement living sector is growing rapidly in Australia as the population ages and demand increases for a spot in a retirement village. For many people, the idea of having someone on site to help with property and garden maintenance is enough for them to make what can be a major change later in life. For others it is about the ready-made community and the easy access to social activities and a network of friends. And, as developers seek to entice younger and younger residents, they are dialling up the luxury and add-ons. The type of accommodation varies widely between villages from apartments, villas and houses. Some retirement villages have a resort-style feel with a range of onsite amenities on offer including swimming pools, fitness centres, cinemas and cafes and there are often different dining and cleaning options available for residents. Research released last year by the Property Council of Australia shows that retirement village residents are 41 per cent happier; 19 per cent less likely to require hospitalisation after only nine months; 15 per cent more physically active; five times more socially active; twice as likely to catch up with family or friends and have reduced levels of depression and loneliness. i One important factor that sets retirement villages apart from residential aged care facilities is that retirement village living is considered independent living, generally without medical or personal care available through the village itself. Different laws Some residential retirement complexes include both independent living homes and aged care facilities. This set up can make the transition to aged care, if needed, less stressful especially if one member of a couple needs greater care. However, the two operations are regulated quite separately under different laws and there are no guarantees that you can move smoothly from one to another when you want to. Unlike assisted living or residential aged care, retirement villages are not regulated by the Federal Government but are governed under state and territory retirement villages acts. As such, the rules can vary between jurisdictions and villages. Considering the costs Buying into a retirement village can be a significant expense, making it important to understand the legal implications and ensure you carry out a thorough check to see if it is affordable. In most cases you don’t own the village residence. A common arrangement is for a lease or loan type arrangement, where residents buy the right to occupy a home within the village for a specific period. The level of fees and how they are set is a private commercial arrangement and not governed by any laws. The costs could be roughly what would be incurred if you owned your home. As well as an upfront price, there could be ongoing maintenance fees and deferred management fees, which reduce the amount you receive when you leave the village. Knowing your rights and obligations, as well as the initial costs and ongoing fees and expenses are key considerations to a successful transition. Financial and legal advice is highly recommended to ensure clear understanding of the purchase arrangements and contracts. Their level of complexity is not to be underestimated. Extra services and support It is most people’s aim to remain living independently in their own home for as long as possible. For people living in retirement villages, this could mean accessing government subsidised home care services – for example, through the existing Home Care Packages Program. Depending on a person’s health, these services could include cleaning and domestic assistance as well as personal care, such as assistance with showering or the delivery of pre-cooked meals. Following the introduction of recent reforms, a new Aged Care Act aims to increase the subsidies for services and equipment to assist people staying at home. A new Support at Home Program will replace the Home Care Packages Program from 1 July 2025. The Commonwealth Home Support Program will transition after 1 July 2027. The reforms also include significant changes to the funding arrangements for residential aged care. For both home care and residential aged care, the focus will be increasing the quality of services and the rights of individuals, while at the same time looking for greater contributions from people accessing the services. Retirement villages are largely lifestyle considerations, but you also need to consider your current and future care needs to ensure that the village you choose will remain suitable for at least the medium term. Contact us to discuss your plans for retirement. i Seniors’ housing focus required as population ages | Property Council Australia --- ### 2024 Year in Review: Successfully navigating uncertain times - Published: 2025-01-14 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/2024-year-in-review-successfully-navigating-uncertain-times/ - Categories: Insights The many unpredictable events of 2024 could easily have been disastrous for investment markets. Instead, we saw remarkable resilience and growth despite occasional volatility as investors reacted to the extraordinary times. While economic growth in Australia and overseas was underwhelming, share markets rode out the ups and downs to finish 2024 strongly. 2024 was the ‘super election year’, when almost 2. 5 billion people in 70 countries voted. i One result that has captured the attention of governments and analysts around the world is Donald Trump’s return to office in the United States. He has promised massive tariffs, tax cuts and increased spending on defence. All measures are likely to increase inflation and budget deficits which will affect global markets and economies. ii Continuing geopolitical upheaval also marked the year. Tension in the Middle East grew as Israel expanded its campaign and European Union economies came under increased pressure when Ukraine stopped the flow of Russian gas. The US dollar ended the year on a two-year high but that, and a weakening Chinese Yuan, led to a two-year low for the Australian dollar, which ended the year just below 62 US cents. iii Cost of living falls but interest rates steady Around the world, interest rates fell during the year but in Australia, after five interest rate increases in 2023, the Reserve Bank (RBA) held steady at 4. 35 per cent, believing inflation is still too high. Nonetheless, the cost of living has fallen significantly, down to 2. 8 per cent in the September quarter from a high of 7. 8 per cent two years ago and 3. 8 per cent in the June quarter. iv Falls in electricity and petrol prices contributed to the easing. Australia’s economy grew by 0. 8 per cent in the three quarters to the end of September – it’s slowest in decades. v House prices mixed across the country The housing market appeared to cool by the end of the year with average national home values falling by 0. 1 per cent in December to a median of $815,000. vi CoreLogic’s Home Value Index data shows five of the eight capitals recording a decline in values between July and December. These included Melbourne, Sydney, Hobart and the ACT. While in Perth, Brisbane, Adelaide and Darwin, home values increased. Share markets survive and prosper Global share markets were unsinkable in a year of stormy economic and political conditions. The Nasdaq surged more than 30 per cent for the year. The S&P 500 was up 25 per cent – pushed along by the ‘magnificent seven’ tech stocks – and the Dow rose 14 per cent. Although not quite in the same league, the ASX performed strongly, recording 24 new record highs during 2024. The S&P/ASX 200 closed the year at 8159, up 7. 5 per cent, with some analysts predicting 2025 will close around 8800. Commodities Gold came into its own as a safe haven for those concerned about events around the globe, reaching an all-time high in October and adding more than 28 per cent for the year. Oil prices were subdued with investors cautious about a glut, the risks of wider conflict in the Middle East, the war in Ukraine and the change of government in the US. Although there is some optimism for improved growth in China in 2025. Iron ore prices have continued to decline, now down to about half of the peak US$200 a tonne in 2021. Looking ahead Economists’ forecasts vary on the timing of a cut in interest rates in 2025 but some believe there will be as many as four cuts, reducing the rate to 3. 35 per cent by year end. Share price volatility is expected to continue as investors roll with the global political and economic punches and the upcoming Australian Federal Election is likely to introduce uncertainty until the results are in. If you’d like to review your investment strategy in the light of recent and expected developments, don’t hesitate to get in touch. Note: all share market figures are live prices as at 31 December 2023 and 2024 sourced from: https://tradingeconomics. com/stocks. i Why 2024 is a record year for elections around the world | World Economic Forum ii The economy and markets will boom under Trump | AFR iii Australian dollar now at risk of plummeting to pandemic-era lows | ABC News iv Consumer Price Index, Australia, September Quarter 2024 | Australian Bureau of Statistics v Australian economy grew 0. 3 per cent in September Quarter | Australian Bureau of Statistics vi National home values record first decline in almost two years | CoreLogic Australia --- ### Say yes – what’s the best that could happen? - Published: 2025-01-07 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/say-yes-whats-the-best-that-could-happen/ - Categories: Insights As we step into a new year, it’s a good opportunity to think about what we want to embrace and experience in the year to come. Amidst all the resolutions that might be broken before we know it, one powerful and positive way to approach the new year, is to make this the year of saying yes. Let’s dive into the warmth of possibility, fight the fear and explore the benefits of saying yes, while also recognising that it’s perfectly okay to say no when it counts! The magic of yes There’s something magical about the word “yes”. It carries a sense of adventure, curiosity, and openness. When we commit to saying yes, we invite a world of possibilities into our lives. Whether it’s trying a new hobby, attending a friend’s event, or accepting an unexpected invitation, each “yes” can lead to enriching experiences that might just become the highlights of our year. Be open to growth and learning Every new opportunity is a chance to grow and learn something new. When we step outside our usual routines, we often discover hidden talents or passions we didn’t know existed. Maybe you’ve always wanted to paint but never picked up a brush. A friend invites you to an art class, and suddenly, you find joy in expressing yourself creatively. Each experience expands our horizons and introduces us to an aspect of ourselves that we may not have known existed. Cultivate new connections Saying yes also opens the door to new relationships. Each time we engage with new people, whether in a casual setting or a more structured environment, we have the opportunity to form connections. These relationships can lead to friendships, collaborations, or even just delightful conversations that brighten our days. When you attend that gathering or volunteer for a community event, you never know who you might meet or how they might inspire you. Build confidence and spark inspiration Each small step outside our comfort zones is an opportunity to build our confidence. When we say yes to new experiences, we’re essentially telling ourselves, “I can do this! ” Even if we stumble along the way, those moments contribute to our sense of self-efficacy. Think about that time you gave a toast at a wedding or tried rock climbing for the first time. The thrill of stepping up to the challenge can leave you feeling accomplished and more willing to embrace future opportunities. New experiences can also ignite creativity and inspiration. Have you ever noticed how a change of scenery or a fresh activity can spark new ideas? It’s like a reset for our brains. When we engage in activities that are different from our daily routines, we open ourselves up to innovative thinking. So, whether it’s a cooking class, a new fitness routine, or exploring a different neighbourhood, each experience has the potential to inspire new ideas and perspectives. Finding your balance While saying yes has its many benefits, it’s equally important to recognise that saying no is perfectly acceptable. Life is a balancing act, and sometimes we need to protect our time and energy. It’s okay to say no to things that don’t align with our values or drain us emotionally. For instance, if you’re feeling overwhelmed with work and social commitments, it’s perfectly fine to decline an invitation. The key is finding a balance that works for you and to say “no” to the things that aren’t right for you and “yes” to the things that are. When considering an invitation or opportunity, take a moment to ask yourself: Does this excite me? Will it bring me joy or growth? If the answer is yes, then lean in and say yes, but if it feels like a burden or something you’re not genuinely interested in, don’t hesitate to politely decline. Remember, it’s about making conscious choices that support your journey and well-being. Saying no when appropriate, frees you to say yes to the things that truly matter and make space for the right opportunities to come along—ones that truly resonate with us and enrich our lives. So, let’s step into this new year with open hearts and curious minds. Embrace those invitations, try that new activity, and savour the joy of each experience. Remember, it’s not just about what you say yes to; it’s about the richness of life that unfolds when you open yourself up to what could be. Here’s to a year of embracing new possibilities! --- ### Keeping records for property - Published: 2025-01-07 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/keeping-records-for-property/ - Categories: Insights Which records to keep for your property so you can work out CGT when you sell it. Property records you should keep For your property, you should keep records of: your acquisition of the property and related expenses, such as purchase contract stamp duty legal fees settlement statement survey and valuation fees your disposal of the property and related expenses, such as the sale contract sale settlement statement legal fees sales commission your costs of owning the property, including interest rates land taxes insurance premiums the cost of repairs capital expenditure on improvements, such as extensions or additions. The records for buying, owning and selling the property need to be kept for at least 5 years after you dispose of the property. If you acquired your property before 20 September 1985, it is exempt from capital gains tax (CGT). You do not need to keep records for CGT purposes unless you later add a capital improvement. However, you still need to keep records of any property income, such as rent, for income tax purposes. Main residence Your main residence – home is generally exempt from CGT. However, you should keep all records in case circumstances change and it is no longer exempt from CGT. For example, if you start renting out part of your home, you will need records. Using your main residence to produce income If you rent out part of your home or run a business from home, it may be subject to CGT. Keep records of: expenses during the time you produced income the proportion of the property used to produce income. If you first use your home to produce income after 20 August 1996, you need a record of your home’s market value at the time you first used it to produce income. It is best to get a market valuation of your home at the time. However, you can arrange a valuation later if necessary. Inherited dwellings If you inherit a dwelling that was the main residence of the person who left it to you, any capital gain when you later dispose of it may be exempt from CGT. The exemption depends on a number of things, such as when you inherit the property and how long you own it before disposing of it. Until you are sure of the circumstances, you should keep records of: relevant costs incurred by you, the previous owner and the trustee or executor the market value of the dwelling at the time the deceased died. If the executor or trustee has a record of a market valuation, get a copy of the valuation report. Records held by former spouse If a property transfers to you because of a relationship breakdown, get copies of the property records that show: how and when your former spouse acquired the property the property’s cost base when they transferred it to you. If the property was your former spouse’s main residence, get copies of records that show: the extent to which they used it to produce income during their ownership period the number of days it was their main residence during their ownership period. You’ll need these records to show how much of your spouse’s ownership period is eligible for the main residence exemption. If you do not have these records, you may be liable for CGT for periods when the property would have qualified for the exemption. Source: ato. gov. au June 2024 Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www. ato. gov. au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/keeping-records-for-property Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Surviving the silly season - Published: 2024-12-20 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/surviving-the-silly-season/ - Categories: Insights Ah, Christmas! – the time of year when your bank account shrinks, your social calendar explodes, and your family dynamics resemble a poorly scripted soap opera. As we navigate this festive minefield of shopping, social gatherings, and feasting, it’s common to feel a little frazzled. In fact, research has found that the holiday season is one of the six most stressful life events we go through, in the same category as moving house and divorce. i But it does not have to be – before you let the silly season get the better of you, here are some ways to not just survive, but thrive, to make it through the festive chaos and bring in 2025 feeling energised and on track to reaching your goals. Get organised Let’s face it, the silly season is a whirlwind. Between work parties, family catch-ups, and obligatory gatherings with distant relatives you only see once a year, it’s enough to make anyone want to retreat to a deserted island. However, rather than running off to Bora Bora, if you want to survive the silly season relatively unscathed, planning ahead is a must. With the social calendar filling up quicker than you can say cheers, it becomes easy to overcommit and leave yourself feeling a little stretched. Rather than maintaining a constant schedule of parties and social engagements, why not learn the power of saying ‘no’. Choose the events you really want to attend and think about each invitation before you send that RSVP. Remember to allow for some guilt-free ‘down time’ amongst all the festivities. Shopping shenanigans Shopping during the silly season can be akin to a scene from an action movie—chaotic, frenzied, and with a distinct chance of an all-in brawl. Channel your inner Santa Claus and make a list. And yes, check it twice! A good list keeps you focused and reduces the chances of impulse buys—like that life-sized inflatable Santa that seemed like a good idea at the time. (Spoiler alert: it wasn’t. ) Consider shopping online, too. You can sip your coffee in your pyjamas while avoiding the chaos of the shops. Just remember: the delivery cut-off dates are real! Don’t be the person frantically searching for gifts at 9 PM on Christmas Eve. The present predicament Let’s talk presents. It’s lovely to give and receive gifts, but when did we all agree that every adult needs a new mug or another pair of socks? To combat the gift-giving madness, consider doing a Secret Santa among adults. Set a reasonable budget and unleash your creativity. Who doesn’t want a mysterious gift that could range from a novelty toilet brush to a box of chocolates? Navigating the family dynamics Family gatherings can be a delightful mix of love, laughter, and the occasional argument that would make for great reality TV. You know the drill—everyone has an opinion, and even the Christmas ham can become a hot topic of debate. Before the big day, set some ground rules. No politics, no discussing that relative’s questionable life choices, and absolutely no karaoke unless everyone is fully prepared to participate. If tensions start to rise, a little humour can go a long way. Embrace the absurdity of it all. If Uncle Bob starts arguing about the best way to cook prawns, counter with a story about how Auntie Sheila once tried to deep-fry a turkey—because that’s a Christmas classic in its own right. Don’t try to do it all If you’re hosting this year, congratulations! You’re officially in charge of managing the chaos. But you don’t have to shoulder the entire load. Encourage those who are coming to bring their ‘special’ dish. Not only does it lighten your load, but it also allows everyone to show off their culinary skills (or lack thereof). Plus, you might discover that Aunt Margaret’s “special” potato salad is actually a hidden gem—just don’t ask what’s in it. Survive and thrive At the end of the day embrace the chaos, lean into the hilarity of when things don’t go to plan, don’t take it all too seriously and be prepared to step back a little when you need a break from all the festivities. Here’s to a joyful festive season filled with laughter and the wonderful chaos that is Christmas. We’ll catch you on the other side. Cheers! i Christmas stress | Relationships Australia --- ### Gifting for future generations - Published: 2024-12-17 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/gifting-for-future-generations/ - Categories: Insights At this time of year, when giving is particularly on our minds, some might turn their attention to how best share their wealth or an unexpected windfall with their loved ones­. You might be thinking about handing over a lump sum to help them with a major purchase or business opportunity, or be keen to help reduce or extinguish their student loans. Alternatively, it might be about helping to solve a housing problem. Whatever the reason there are some rules that it is worth being aware of to ensure both you and they are protected. Giving a cash gift You can give anyone, family or not, a gift of cash for any amount and, as long as you don’t materially benefit from the gift or expect anything in return, no tax is paid on the amount by either you or the receiver. i The same applies if you’re planning to pay out your child’s student loans. However, be aware that if the beneficiary of your cash gift is receiving a government benefit, such as an unemployment benefit or a student allowance, there is a limit on the size of the gift they can receive without it affecting their payments. They may receive up to $10,000 in one financial year or $30,000 over five financial years (which can not include more than $10,000 in one financial year). ii Helping out with housing Many parents also like to help their children get into the property market, where possible. It’s been a difficult time for many in the past few years in dealing with the COVID-19 pandemic, the rising cost of living and interest rates, and a housing crisis. A Productivity Commission report released this year found that while most people born between 1976 and 1982 earn more than their parents did at a similar age, income growth is slower for those born after 1990. iii With money tight and house prices climbing, three in five renters don’t believe they will ever own a home even though most (78 per cent) want to be homeowners, according data collected by the Australian Housing and Urban Research Institute (AHURI). iv Just over half of those surveyed (52 per cent) were renting because they didn’t have enough for a home deposit and 42 per cent said they couldn’t afford to buy anything appropriate, the AHURI survey found. So, in this climate, help from parents to buy a home isn’t just a nice-to-have, it’s becoming a necessity for many. Moving home Allowing your adult child, perhaps with a partner and family, to share the family home rent-free is common option, giving them the chance to save up for a deposit. One Australian survey found that one-in-10 people had moved back in with their parents either to save money or because they could no longer afford to rent. v If it gets too much living under the same roof, building a granny flat in your backyard may be an option. Of course there are council regulations to consider, permits to be obtained and the cost of building or buying a kit but on the upside, it may add value to your home. Becoming a guarantor Another way to help might be to become a guarantor on your child’s mortgage. This might be the best way into a mortgage for many but before you sign, think it through carefully, understand the loan contract and know the risks. vi Don’t forget that, as guarantor, you’re responsible for the debt. You will have to step in and repay if the borrower can’t afford to repay, and the loan will be listed as a default on your own credit report. Any sign that you are being pressured to be a guarantor on a loan may be a sign of financial abuse. There are a number of avenues for advice and support if you’re concerned. It’s vital that you obtain independent legal advice before signing any loan documents. If you would like more information about how to provide meaningful financial support to your children, we’d be happy to help. i Tax on gifts and inheritances | ATO Community ii How much you can gift – Age Pension – Services Australia iii Fairly equal? Economic mobility in Australia – Commission Research Paper – Productivity Commission iv Rising proportion of ‘forever renters’ requires tax and policy re-think | AHURI v Coming home: 662,000 Australian households reunite with adult children – finder. com. au vi Going guarantor on a loan – Moneysmart. gov. au --- ### Dollar cost averaging: can it work for you? - Published: 2024-12-10 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/dollar-cost-averaging-can-it-work-for-you/ - Categories: Insights Australian share prices have seen record highs in 2024 after a sluggish couple of years. The S&P ASX200 index added just under 7 per cent in the 10 months to October 31 closing at 8160. i It reached its previous all-time high of 8355 just two weeks before. So, if you were invested in an index fund or a basket of shares mirroring the ASX200 for the entire period, it’s likely you would have added some value to your portfolio. Over the course of the year, the index has ebbed and flowed, recording several all-time highs and some jarring notes in response to global events. Geopolitical tensions have also played a part in market skittishness as the wars in the Middle East and Ukraine continue and economists argue about the future impact on Australia of a Trump presidency. US share prices surged the day after Donald Trump’s election in what many saw as a positive reaction to the returning President’s policies. Since then, prices have declined in a not-unexpected correction. Various analysts are predicting future volatility as markets respond to the proposed policies including tariffs and mass deportations promised by the President-elect. These ups and downs in prices can have investors scurrying to hit the ‘buy’ or ‘sell’ buttons. They may be desperate to save further losses when share prices are falling rapidly or wanting to cash in on a rising market. Meanwhile, those with lump sums to invest may delay, trying to pick the time when prices are lowest. Timing the market It’s a strategy – known as timing the market – that may work for some, particularly if you need access to your investment in the short term. But, for mid- to long-term investors, it’s generally accepted to be problematic. To begin with, predicting the next market movement is extremely difficult – even for experienced investors – because of the endless factors that can influence the markets. Reacting to major market movements by selling or keeping a lump sum in cash until ‘the time is right’ means you run the risk of missing the market’s best days and reducing your overall return. Countless studies show that better long-term results are achieved by consistent investing over time. In Australia, $10,000 invested in the ASX/S&P 200 during the 20 years to October 2024 would have increased to $60,777. ii But, if you had missed the 10 best days during that time, your total investment would be just $36,014. Dollar cost averaging One way of removing the emotion and guesswork is to consider investing at regular intervals over time, ignoring any market signals, in a strategy known as ‘dollar cost averaging’. The strategy works best if you are investing over the medium to long term because it helps to smooth out the price peaks and troughs. In fact, compulsory superannuation paid by employers is a form of dollar cost averaging. Smaller, regular amounts are invested automatically, regardless of market movements and, over time, the investment grows. However, the jury is out on whether dollar cost averaging is a useful strategy when you have a lump sum in cash to invest. Some advocates of dollar cost averaging argue that there’s a better return because you reduce the risk of making a large investment just before markets plunge. Those opposed to the strategy for lump sum investing say that, with a lump sum sitting in a bank account as you chip away at regular stock purchases, there is a risk that you will miss the best of the market. A 2023 study found that investing a lump sum in the markets at once over the long term delivers a better return than a dollar cost averaging strategy. iii So, avoid the risks of timing the market and consider whether dollar cost averaging might be an appropriate strategy for you. We’d be happy to discuss how best to ensure your regular investing strategy or investment of a lump sum, takes account of future market movements and volatility. i Australia Stock Market Index | Trading Economics ii Timing the market | Fidelity Australia iii Lump-sum investing versus cost averaging: Which is better? | Vanguard --- ### Market movements and review video – December 2024 - Published: 2024-12-03 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-december-2024/ - Categories: Insights Stay up to date with what’s happened in the Australian economy and markets over the past month. While headline inflation eased to 2. 8% in the September quarter, the RBA appears cautious on interest rates. The RBA Governor stated that Australia’s core inflation remains too elevated to justify interest rate cuts in the near term. The sharemarket reacted to the RBA’s comments in the last days of a month that had seen several all-time highs as markets globally reacted to Donalds Trump’s win. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### Super vs property: what works for retirement income? - Published: 2024-11-26 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/super-vs-property-what-works-for-retirement-income/ - Categories: Insights There is no debate that Australians love investing in property. The value of Australian residential real estate at the end of August 2024 was an estimated $10. 95 trillion. i Some love it so much that they believe property is a better option for providing a retirement income. They see a bricks and mortar investment as a more tangible and solid approach than say, superannuation, preferring to take their super as a lump sum on retirement to buy property. They may also choose to invest a windfall, such as an inheritance, or the proceeds from downsizing the family home, in property instead of their super. So, given that a retired couple above age 65 needs an estimated yearly income $73,337 to lead a comfortable lifestyle, could a property investment do the job? ii While it’s true that a sizeable property portfolio could deliver rental income to equal a super pension, it might mean missing out on some useful benefits. After all, super is a retirement savings structure with significant tax advantages. It also has the flexibility to provide investments in a range of different asset classes, including property. Meanwhile, super fund performance has, generally speaking, outstripped house price movements over the past decade. Super funds (invested in an all-growth category) returned an annual average of 9. 1 per cent during that time while average house prices in Australian capital cities grew 6. 5 per cent per year over the same period. iii, iv Not that past performance can give you any guarantees about what will happen in the future. Indeed, the average numbers smooth out the years of high returns and the years of negative returns. More important considerations in making an informed decision are your financial goals, your investment timeframe and how much risk you’re comfortable with. Liquidity One of the most significant differences between super and property investments is liquidity, or how quickly you can convert your investment to cash. With super, assuming you’re eligible, funds can be accessed relatively easily and quickly. On the other hand, if your wealth is tied up in property it may take some time to sell or it may sell at a lower price. Nonetheless, market cycles affect both property and super investments. They can be affected by volatile conditions and deliver negative returns just at the time you need access to a lump sum. Long-term investing Superannuation is designed for long-term growth, often spanning decades as you accumulate wealth over your working life. The magic of compounding interest can lead to substantial growth over time, depending on your investment options and the state of the market. Property investments, on the other hand, can be invested for short, medium, and long-term growth depending on the suburb, the street, and the type of house you invest in. Of course, there are additional costs in buying a property (such as stamp duty) plus costs in selling (including capital gains tax). If there’s a mortgage over the property, you’ll need to factor in the additional costs of repayments and interest (bearing in mind that interest on investment properties is tax deductible). Risk appetite Investors’ attitudes towards risk also play a role in choosing between super and property. Superannuation funds can be diversified across various asset classes, which helps to reduce risk. But property investments expose investors to a single market meaning that while there might be a big benefit from an upswing, any downturn may be a blow to a portfolio. Making an informed choice Ultimately, any decision between superannuation and property should align with individual financial goals, risk tolerance, and investment strategies. And, of course, it doesn’t need to be one or the other – many choose to rely on their super while also holding investment property so it’s best to understand how super and property can complement each other in a well-rounded retirement plan. We’d be happy to help you analyse your retirement income strategy to develop a plan that works for you. i Monthly Housing Chart Pack – September 2024 | CoreLogic Australia ii ASFA Retirement Standard – June quarter 2024 | The Association of Superannuation Funds of Australia Limited (ASFA) iii Super funds deliver strong result in FY24 | Chant West iv SQM Research Weekly Asking Property Prices , 1 October 2024 | SQM Research --- ### Flying solo: tips for successful buying - Published: 2024-11-19 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/flying-solo-tips-for-successful-buying/ - Categories: Insights For those who are wanting to get started on the homebuying journey, going it alone can have its challenges compared to a couple but there are ways to make flying solo easier. As a solo buyer, even just saving up for a deposit can feel like scaling Mount Everest without a rope. Without the benefit of a dual income, it takes longer to stash away that 20% deposit you need to avoid extra costs like Lenders Mortgage Insurance. And when it comes to getting a loan, lenders often see solo buyers as riskier, which can mean higher interest rates or stricter lending criteria. However, around a quarter of homebuyers are buying by themselves, a figure that has stayed reasonably stable over the past 8 years, so if you are a single purchaser, you are not alone by any means. i Let’s look at some ways you can position yourself for success as a solo buyer. Strategies for success Start with your financials The first step is to get a clear picture of your finances and your capacity to save the deposit. Calculate your borrowing capacity and set a realistic savings strategy that includes paying down any debt such as credit cards and personal loans. Create a budget that covers not just the purchase price and loan repayments, but also ongoing costs like maintenance, utilities, and council rates. Potential lenders will be interested in your credit score. Take steps to improve your score by paying bills on time, reducing credit card balances, and correcting any errors. You can check your credit score through various credit reporting agencies such as Equifax, Experian, or Illion. Know what you are prepared to compromise on Explore different neighbourhoods or suburbs within your budget. Sometimes, areas just a little further from the city centre can offer more affordable options. Be open-minded about the type of property and the condition of the property too. Know what your ‘must haves’ are and what you are prepared to compromise on to stay within budget. Do your homework and think long term When you find a property you like, do your due diligence. Attend inspections, research the market value, and be prepared to negotiate. Getting pre-approved for a mortgage can strengthen your position as a serious buyer and give you an edge in negotiations. Consider the future when making your decision. Think about resale potential, rental yields if you decide to lease the property down the line, and the overall growth prospects of the area. Buying a home is an investment in your future, so make sure it aligns with your long-term goals. Getting help on the way You also don’t necessarily have to go it totally alone. One option is teaming up to buy with friends or family. You could pool resources to boost your buying power and share the load of mortgage repayments and other expenses. Just make sure to have clear agreements in place from the get-go to avoid any potential conflicts down the road. You could also consider using a guarantor—typically a close family member —who agrees to support your mortgage application by providing additional security should you become unable to make repayments. There are also options like rentvesting, where you buy a property and rent it out to tenants while you keep renting where you currently live. This way, you’re getting a foothold in the property market and building equity, while you live in your preferred location. And don’t forget about government grants and incentives tailored for first-time buyers. These can be total game-changers. Some grants can help cover your deposit or chip away at pesky expenses like stamp duty, making that dream home more within reach. We can help you investigate the options available to you. Taking that journey Buying a home on your own might seem like a daunting task, but it can also be an incredibly rewarding one. It’s about more than just bricks and mortar—it’s about creating a space that’s truly yours, where you can make memories and it can be a fantastic way to set yourself up for a financially secure future. With careful planning, determination, and the right support, you can make your dream of homeownership a reality. We are here to help. i https://www. raywhite. com/news-and-market-insights/economic-updates/where-are-all-the-single-buyers --- ### Helping the kids without derailing your retirement plans - Published: 2024-11-12 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/helping-the-kids-without-derailing-your-retirement-plans/ - Categories: Insights As parents, the instinct to support our children never truly fades, even when they become adults but when you are looking at giving them a financial helping hand there is a bit to consider. It’s important to ensure any support you provide is not at the expense of your financial future. It can also be tricky knowing what form your support should take, in order to maximise the benefits for your kids. Support in a challenging environment In today’s financial landscape, many young people are struggling to get ahead in the face of skyrocketing housing prices and rising living costs and it’s increasingly common for parents to provide some form of financial assistance. In fact, more than half of parents with a child older than 18 provide financial support. i So, if you are giving your adult kids a monetary helping hand, or considering it, you are in good company. Achieving balance The challenge for most people is the balance between helping your kids get a head start in life and making sure you have enough for a secure financial future. It’s important to have clear visibility of your own financial situation, of how much you’ll need to fund the retirement you aspire to, and how much you can comfortably spare. If your financial future is secure, you’ll be in a better position to help your children when they need it most, so ensure that any contribution you make to your kids’ financial wellbeing is not at the expense of your superannuation and other retirement savings. Ways of providing support When we think of support we often think of the ‘bank of mum and dad’ helping with a home purchase and that is quite common, with 40 per cent of new home buyers getting a hand from their parents. ii If you’re considering this route, you have several options: Gift funds: If you have the means, you can gift your child a portion of the deposit, however, be mindful of any tax implications. Going guarantor: Another popular option is to act as a guarantor on your child’s home loan. This means that you’ll use the equity in your own home to guarantee the loan, which can help your child secure better borrowing terms. It’s a significant commitment, so be sure to discuss the potential risks and implications thoroughly. Co-ownership: In some cases, parents and children can purchase a property together, sharing the financial responsibilities. This arrangement can be beneficial, but it’s crucial to have a clear agreement in place outlining each party’s responsibilities and financial contributions. Other ways of providing financial support There are lot of other ways you can help your kids with a range of expenses. Nearly 40 per cent of parents pay for their adult children’s groceries and around the same proportion allow their adult children to live at home rent-free, while around a third pay their adult children’s bills. One in five fork out for their kid’s car-related costs like registration fees and petrol and 20 per cent pay for their kids to take off on holidays. iii Non-financial support Financial assistance isn’t the only way to support your children. Often, your time and knowledge can be just as valuable. Encourage them to develop good financial habits, such as budgeting, saving, and investing. You might even consider involving them in family discussions about money management, which can empower them to make informed financial decisions. Communication is critical Regular, honest conversations about finances can strengthen your relationship with your children. Discuss their financial goals and challenges openly and encourage them to share their aspirations. These dialogues will allow you to gauge how best to support them and sometimes, just being there to listen can make a world of difference. Setting clear boundaries is also crucial when offering financial support. Discuss how much you can provide, whether it’s a one-off gift, a monthly allowance, or a loan. By being transparent about your limits, you can prevent misunderstandings and help your children set realistic expectations and become financially independent. Navigating the complexities of financial support can be challenging, especially when balancing your own needs with those of your children. We can provide assistance and advice tailored to your unique situation and help you create a sustainable plan that allows you to assist your children without compromising your retirement goals. i Finder Bank of Mum and Dad Report | Finder ii https://www. apimagazine. com. au/news/tag/deposit iii Bank of Mum and Dad slightly less generous than before COVID-19 crisis, survey shows | Domain --- ### Market movements and review video – November 2024 - Published: 2024-11-05 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-november-2024/ - Categories: Insights Stay up to date with what’s happened in the Australian economy and markets over the past month. Welcome news on the inflation front in October pointed to the Reserve Bank of Australia (RBA) holding steady on rates this month. The latest quarterly inflation figures show inflation has slowed to its lowest level since the height of the pandemic and now sits within the RBA’s target range at 2. 8%. Global share markets softened in the final two weeks of October, reflecting economic and geopolitical uncertainly. The S&P/ASX 200 closed slightly down over the month of October, after again reaching record highs mid-month. With the US election on the horizon there is much speculation about what that will mean for markets and the economy, both in the US and Australia. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### Harnessing the double edge sword of tech - Published: 2024-10-29 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/harnessing-the-double-edge-sword-of-tech/ - Categories: Insights In our fast-paced digital world, technology often feels like a double-edged sword. On one hand, it offers incredible opportunities for personal growth and efficiency. On the other, it can also be a source of distraction and stress. But fear not! It’s possible to harness the power of technology to enhance your life, rather than hinder it. Let’s explore some practical ways to use technology wisely for personal improvement and efficiency so you can focus on the meaningful stuff in your life – and also manage to ‘switch off’. Goal tracking apps to stay on track It’s important to recognise that technology is a tool that can be effective in helping you reach your goals but before you leap in it’s important to be clear about what your goals are. Think about what is important to you and what you want to achieve. Once you’ve established some goals you can then come up with tasks that support your ambitions and that’s where technology can come in handy – tracking and supporting your progress. Tools like Habitica and Todoist turn your tasks into manageable steps and offer a visual representation of your progress. Habitica gamifies your goals, rewarding you with points for completing tasks and achieving milestones, making productivity feel like an adventure. Similarly, Todoist helps you organise your tasks with ease, allowing you to set deadlines, create recurring tasks, and prioritise what matters most. There are even specific apps for different aspects of your life. For instance, if you’ve resolved to exercise more regularly, you can use an app like Strava or Fitbit to track your workouts, monitor your progress, and even join challenges with friends. These apps not only keep you on track and elevate your efforts but also provide a sense of community and accomplishment. Task management and automation Task management is key to working efficiently – it helps you stay organised, prioritise tasks, and manage your time better. With a clear plan, you can focus on what matters and technology offers numerous tools to assist. Apps like Todoist, Asana, and Trello provide intuitive platforms for organising tasks, setting priorities, and tracking progress. These tools help you break down large projects into manageable steps, set deadlines, and collaborate with others seamlessly. Then implementing some automation around selected routine tasks can be a massive time saver and free you up for more meaningful activities. From scheduling social media posts to managing your finances, automation tools can save you time and reduce the mental load of daily tasks. Zapier and IFTTT allow you to create automated workflows between different apps and services. For example, you can set up a workflow to automatically save email attachments to your cloud storage or post your latest blog update directly to your social media accounts. Embrace learning platforms Gone are the days when learning was confined to classrooms and textbooks. Today, technology offers a plethora of online learning platforms that can help you develop new skills and hobbies. Coursera, Udemy, and Khan Academy provide courses on everything from coding to cooking. Whether you’re looking to pick up a new language or delve into data science, these platforms make learning accessible and engaging. For example, if you’ve always wanted to learn how to play the guitar, apps like Yousician offer interactive lessons that guide you through the basics and beyond. They provide real-time feedback, making the learning process both efficient and enjoyable. Cultivate a balanced digital diet While technology offers numerous benefits, it’s also important to maintain a balanced digital diet. Too much screen time can lead to burnout and decreased productivity. Be mindful of your usage and establish boundaries to ensure it enhances, rather than detracts, from your life. Consider setting specific times for checking emails or social media. There are times in your life where setting boundaries around your use of tech can be beneficial – for example in meetings, at the dinner table, when you are out with friends, on holidays or even just before bed. It can be challenging to ignore the ‘siren call’ of your device but switching off – even for small periods – allows you to be fully present and engage with those you care about, focus on specific tasks, or even just allow yourself a little time to do nothing at all. It’s even possible to use technology to prompt you to switch off your devices to gently remind you to take a little ‘tech break’ every now and then. Embrace the possibilities, and let technology work its magic to enhance your life in meaningful ways and consider using the efficiencies offered by technology to free up some valuable time to go offline! --- ### Unlocking success: lessons from the world’s best investors - Published: 2024-10-22 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/unlocking-success-lessons-from-the-worlds-best-investors/ - Categories: Insights While effective investing is crucial for wealth creation, there is a lot to know and many pitfalls to avoid, as many of the world’s most successful investors have learned over their respective investment journeys. Those who have achieved success have often spent a considerable amount of time developing the requisite knowledge and skills to achieve solid and reliable returns, learning from their failures as much as their triumphs. There is a lot to be gained by looking at the methods and philosophies of those who have mastered the art of sustainable wealth creation, and their learnings can serve to inspire you on your own investing journey. Emphasise long-term value One of the most enduring lessons from legendary investors such as Warren Buffett is the importance of focusing on long-term value rather than short-term gains. Buffett, known for his role as the chairman and CEO of Berkshire Hathaway, advocates for investing in companies with strong fundamentals that can generate consistent returns over time. His approach emphasises patience and the belief in the intrinsic value of a company, which requires thorough research and understanding of the business. Diversify your portfolio Diversification is a cornerstone of successful investing, a principle espoused by investors like Ray Dalio, the founder of Bridgewater Associates. Dalio’s strategy involves spreading investments across various asset classes to manage risk and improve potential returns. His approach, known as “risk parity,” aims to balance risk across different investments rather than concentrating it in a few. A diversified portfolio includes a mix of asset classes such as stocks, bonds, real estate, and cash. Diversification helps mitigate the impact of any single investment’s poor performance on your overall portfolio. Manage risk wisely Managing risk is crucial to preserving capital and ensuring long-term success. Investors like George Soros, known for his successful currency speculation and macroeconomic trades, emphasize the importance of risk management. Soros’s investment philosophy includes a strong focus on assessing and mitigating potential risks, as well as having a clear plan for when to cut losses. Soros was quoted as stating, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong. ” Stay disciplined and patient Discipline and patience are critical traits of many successful investors. For instance, John Bogle, the founder of Vanguard Group and a proponent of index investing, encourages investors to stay disciplined with their investment strategies and avoid being swayed by market volatility. Bogle’s emphasis on low-cost investing and long-term holding reflects his belief in the benefits of staying the course. One way to emulate Bogle’s discipline is to create an investment plan with specific goals and stick to it, even when market conditions are volatile. Avoid making impulsive decisions based on short-term market movements or hype. Regularly review your investment strategy to ensure it aligns with your long-term objectives. Learn from mistakes and adapt Even the best investors make mistakes, and learning from them is essential for growth. Howard Marks, co-chairman of Oaktree Capital Management, is known for his insightful memos on market cycles and risk. Marks emphasizes the importance of understanding market dynamics and adapting strategies based on past experiences and current conditions. Reflect on your investment decisions and outcomes and be open to learning from both successes and failures. Stay adaptable and be willing to adjust your strategies as you gain more experience and as market conditions evolve. Enlisting expert help Finally, successful investors often leverage expert help to enhance their investment strategies and achieve better outcomes. We can work with you to create tailored investment plans based on individual financial goals, risk tolerance, and time horizons, as well as assist in navigating complex financial products and avoiding common pitfalls. By providing ongoing analysis and adjustments, we can help ensure that investment portfolios remain aligned with evolving market conditions and personal objectives. Our expertise helps investors make informed decisions, manage risks effectively, and optimise long-term returns. If you would like a hand with any aspect of wealth creation, please give us a call. --- ### The Age Pension and your retirement plans - Published: 2024-10-16 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/the-age-pension-and-your-retirement-plans/ - Categories: Insights Most people intend to retire between ages 65 and 66, according to the latest data and, surprisingly, despite growing superannuation balances, the Age Pension is the main source of income for many retirees. i The intended retirement age has increased significantly in the last two decades, from just over 62 years on average in 2004. Australian Bureau of Statistics (ABS) figures show that, in 2022-23, a government pension or allowance was still the main source of personal retirement income. This was followed by super, an annuity or private pension. More than 60 per cent of those aged over 65 years were receiving the Pension in 2021ii Am I eligible? It is important to remember that, while you may not meet the eligibility requirements today, you may qualify later in life. In 2021, only 44 per cent of people aged 65-69 received either full or part Age Pensions but this increased to 81 per cent for those aged 80 to 84 years. iii Veterans who have served in the Australian Defence Force may be eligible for pensions or benefits from the Department of Veterans Affairs. iv You are generally eligible for the Age Pension if you: are over 67 years (depending on when you were born) are an Australian resident and have lived in Australia for at least 10 years can meet an income and assets test What are the income and assets tests? The Age Pension means tests considers your income and the value of any assets you own. If the value of your income and assets exceed certain limits, your payment will be reduced. Income includes money from a job (including salary packaging), other pensions or annuities, earnings from investments and any earnings outside of Australia. v Assets are items of value you or your partner own or have an interest in such as investment properties and artworks; caravans, cars, and boats; shares; and business assets. While your family home isn’t included in the assets test, your pension may be affected if you sell it. vi Can I still work? Singles can earn up to $212 per fortnight without their pension being affected. For every dollar over that amount, their pension will be reduced by 50 cents. Couples can earn up to $372 per fortnight and for every dollar over that amount, 25 cents in the dollar will be deducted from their pension payment. vii If your income in a fortnight goes over a certain amount, you will not receive a pension payment. This cut-off amount is $2500. 80 for a single person and a combined $3,833. 40 for a couple. There are other higher cut-off allowances for those affected by ill-health. The Work Bonus may help you earn more from working without reducing your pension. You don’t need to apply for it, the Bonus will be automatically applied to your eligible income – you just need to declare your income. viii What does the Age Pension pay? There are different rates of pension for singles and couples. The current maximum basic rate for a single person is $1047. 10 per fortnight. A couple would receive 1,578. 60 per fortnight. With extra supplements, those on a full Pension could receive a fortnightly total of $1,144. 40 for singles and $1,725. 20 for couples. ix Get in touch if you’d some help to work out your eligibility for the Age Pension and other government entitlements. i Retirement and Retirement Intentions, Australia, 2022-23 financial year | Australian Bureau of Statistics (abs. gov. au) ii, iii Age Pension guide | SuperGuide iv Eligibility for benefits and payments | Department of Veterans’ Affairs (dva. gov. au) v Income – Age Pension | Services Australia vi Asset types – Age Pension | Services Australia vii Income test for Age Pension – Age Pension | Services Australia viii Who can get the Work Bonus – Work Bonus | Services Australia ix How much Age Pension you can get – Age Pension | Services Australia --- ### Estate planning gives you a final say - Published: 2024-10-08 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/estate-planning-gives-you-a-final-say/ - Categories: Insights Planning for what happens when you pass away or become incapacitated is an important way of protecting those you care about, saving them from dealing with a financial and administrative mess when they’re grieving. Your Will gives you a say in how you want your possessions and investments to be distributed. But, importantly, it should also include enduring powers of attorney and guardianship as well as an advance healthcare directive in case you are unable to handle your own affairs towards the end of your life. At the heart of your estate planning is a valid and up-to-date Will that has been signed by two witnesses. Just one witness may mean your Will is invalid. You must nominate an executor who carries out your wishes. This can be a family member, a friend, a solicitor or the state trustee or guardian. Keep in mind that an executor’s role can be a laborious one particularly if the Will is contested, so that might affect who you choose. Around 50 per cent of Wills are now contested in Australia and some three-quarters of contested Wills result in a settlement. i The role of the executor also includes locating the Will, organising the funeral, providing death notifications to relevant parties and applying for probate. Intestate issues Writing a Will can be a difficult task for many. It is estimated that around 60 per cent of Australians do not have a valid Will. ii While that’s understandable – it’s very easy to put off thinking about your own demise, and some don’t believe they have enough assets to warrant writing a Will – not having one can very problematic. If you don’t have a valid Will, then you are deemed to have died intestate, and the proceeds of your life will be distributed according to a statutory order which varies slightly between states. The standard distribution format for the proceeds of an estate is firstly to the surviving spouse. If, however, you have children from an earlier marriage, then the proceeds may be split with the children. Is probate necessary? Assuming there is a valid Will in place, then in certain circumstances probate needs to be granted by the Supreme Court. Probate rules differ from state to state although, generally, if there are assets solely in the name of the deceased that amount to more than $50,000, then probate is often necessary. Probate is a court order that confirms the Will is valid and that the executors mentioned in the Will have the right to administer the estate. When it comes to the family home, if it’s owned as ‘joint tenants’ between spouses then on death your share automatically transfers to your surviving spouse. It does not form part of the estate. However, if the house is only in your name or owned as ‘tenants in common’, then probate will probably need to be granted. This is a process which generally takes about four weeks. Unless you have specific reasons for choosing tenants in common for ownership, it may be worth investigating a switch to joint tenants to avoid any issues with probate. You will also definitely need probate if there is a refund on an accommodation bond from an aged care facility. Rights of beneficiaries Bear in mind that beneficiaries of Wills have certain rights. These include the right to be informed of the Will when they are a beneficiary. They can also expect to hear about any potential delays. You are also entitled to contest or challenge the Will and to know if other parties have contested the Will. If you want to have a final say in how your estate is dealt with, then give us a call. i Success rate of contesting a will | Will & Estate Lawyers ii If you don’t, who will? 12 million Australians have no estate plans | Finder --- ### Insuring against loss of income - Published: 2024-10-01 - Modified: 2025-05-07 - URL: https://wealthinvestors.com.au/insights/insuring-against-loss-of-income/ - Categories: Insights Protecting income from unexpected illness and injury is particularly important to anyone with a mortgage to service, small business owners and self-employed people with no sick leave available. With income protection insurance, you can be paid some 70 per cent of your income for a specified period to help when you cannot work. i The most common claims are for illnesses such as cancer, heart attack, anxiety and depression. ii Payments generally last from two to five years although you can take a policy up to a certain age, such as 65, and the amount is generally based on 70 per cent of your income in the 12 months prior to the injury or illness. iii For some, income protection insurance may be part and parcel of your superannuation although more commonly this is limited to life insurance, and total and permanent disability cover. But, if you do have income protection insurance in your super, check the extent of the automatic cover as it can be modest. Alternatively, you could take out a policy outside super where you will enjoy tax deductibility on the premiums. Income protection insurance is the only insurance that is tax deductible. Other life insurance products outside super such as trauma insurance are not tax deductible. iv Work out a budget There are many considerations when looking at income protection insurance and the best place to start is to work out your budget, thinking about how much would you need to maintain your family’s lifestyle if you are unable to work. Then you are able to decide on the appropriate level of income protection insurance as well as other factors that affect premiums such as how quickly you might need the payments to start and how long these payments will last. Many people think income protection insurance is expensive, but you can fine tune policies to suit your budget by changing the percentage payment amount, the length of time for which you would receive the payment and how soon you start getting a payment once you cannot work. Reducing these parameters can reduce your premiums. Check the policy details It is important to be mindful of a number of factors that might affect the success of any claim you might make. So, make sure you read the product disclosure statement. Every insurer has a different definition as to what will trigger a payment, so you need to understand the difference between “own occupation” and “any occupation” for cover. For example, if you are a surgeon and lose capacity in one of your hands, you will receive a payout from your insurer if you have specified “own” occupation because you can no longer work as a surgeon. But if you opt for “any” occupation, then the insurer could argue that you could still work as a doctor just not as a surgeon and the claim may not be paid. It is also wise to understand that if your policy does not seek your medical history, it is likely there could be limitations to what illnesses are covered. Another consideration is whether you have stepped or level premiums. Stepped premiums start low and usually increase as you age. Level premiums begin at a higher rate but typically don’t increase until you reach 65. In the long run, level may work out cheaper for some. v You must work at least 20 hours a week to take out income protection insurance and you can usually only buy a policy up to the age of 60. Also, if you receive a payout, you need to declare that income on your tax return. If you want to check that you have sufficient cover to protect you and your family should you lose your income, then give us a call to discuss. i Income protection insurance | Moneysmart ( moneysmart. gov. au) ii The Most Common TPD Claims in Australia with Examples | Aussie Injury Lawyers iii Income protection insurance | Moneysmart ( moneysmart. gov. au) iv ATO Community – Stand alone Trauma Insurance and income tax | Australian Tax Office ( community. ato. gov. au) v Income protection insurance | Moneysmart ( moneysmart. gov. au) --- ### Clean out the cobwebs and freshen up your professional and personal life - Published: 2024-09-25 - Modified: 2024-09-25 - URL: https://wealthinvestors.com.au/insights/clean-out-the-cobwebs-and-freshen-up-your-professional-and-personal-life/ - Categories: Insights As the seasons change and the air fills with the promise of renewal, it’s the perfect time to have a clean out—not just for your physical space, but for your life and career as well. Spring cleaning isn’t just about dusting shelves and organising files; it’s about refreshing your mindset, optimising your processes, and ensuring that both your personal and professional worlds are in top shape. Here are some ideas to help you revitalise your business and life as we move into the warmer months. Declutter your physical and digital environments Start with your physical workspace. Clear out the clutter that has accumulated over months of hard work. A tidy workspace not only improves productivity but also clears mental clutter, allowing for better focus and creativity. Organise your files, shred unnecessary documents, and create a system that makes everything easily accessible. Extend this decluttering to your digital life. Clean up your email inbox by unsubscribing from unnecessary emails and set up rules to automatically organise emails into folders. Streamline your phone by deleting unused apps, grouping them by categories as well as reviewing your contacts and deleting old ones. Make sure everything you need is being backed up properly. Streamline your life and get organised Next, it’s time to look at where you spend your time. Spring cleaning your life means being ruthless with your time management. It’s said that a small portion of our time and effort (20%) generates a significant part of our results (80%) so focus your efforts on those activities that yield the most effective outcomes. Evaluate your commitments and activities—are they truly adding value to your personal or professional growth? Learn to say no to tasks or obligations that don’t align with your goals or values. This will free up time for activities that truly matter. Then it’s time to get organised. Allocate time for the important stuff. Review your calendar and update it with both personal and professional commitments. Prioritise self-care and relaxation alongside business meetings and deadlines. This balance ensures you remain productive without burning out and it’s vital to have time in your life for the things and people that you care about. Dust the cobwebs off your workplace and business processes Take a critical look at your everyday processes at work. Are there inefficiencies that can be streamlined? Are there repetitive tasks that can be automated? Improving your processes not only saves time but also reduces costs and enhances customer satisfaction. Getting your house in order also involves making sure your business is not vulnerable. Review your contracts with suppliers, clients, and employees, ensuring they are up to date and protect your interests. Evaluate your data security measures to safeguard sensitive information against cyber threats and review your insurance policies to ensure adequate coverage for your business needs. Polish your skills and connections until they shine Investing in yourself is key to staying competitive. Commit to ongoing professional development by planning to attend workshops, webinars, or conferences relevant to your field. Think about what areas you need to work on and update your skills and knowledge to stay ahead of industry trends and innovations. This can be as easy as listening to a regular podcast on your commute. Networking is also crucial. Refresh your professional network by reconnecting with contacts, attending industry events, and actively building new relationships. Your network can provide valuable support, advice, and opportunities for growth. Taking the first step to transformation Spring cleaning your life, career, and business is not just a seasonal chore; it’s a transformative process that sets the stage for success throughout the year. By decluttering your physical and digital spaces, streamlining your life, honing your processes at work, and committing to ongoing growth, you set yourself up for greater productivity, efficiency, and personal fulfillment. Take the first step today. Start small with one area—whether it’s organising your desk or updating your LinkedIn profile. Each step, no matter how small, contributes to the bigger picture of a rejuvenated business and a balanced life. Remember, spring cleaning is not just about tidying up—it’s about creating space for new opportunities, ideas, and experiences. Embrace this time of renewal and watch as your business thrives and your life flourishes. --- ### Holidaying off the tourist trail - Published: 2024-09-17 - Modified: 2024-09-17 - URL: https://wealthinvestors.com.au/insights/holidaying-off-the-tourist-trail/ - Categories: Insights When we dream of an overseas holiday, our minds often drift to iconic landmarks, bustling cities, and well-trodden tourist paths. While these destinations have their allure, travel to popular destinations is booming and comes with challenges so there are advantages to venturing off the beaten track and seeking out the hidden gems. Travel is booming – and creating some headaches It’s no secret that we Aussies love to travel outside our own country. Last year nearly 10 million of us headed overseas, marking a 12 per cent increase from the previous year, and this year is shaping up to continue the trend. i And it’s not just us enjoying getting out there and travelling the world, global figures anticipate international travel will soon exceed pre-pandemic levels and surpass 2 billion for the second time ever. ii That adds up to a lot of people out there travelling and some popular destinations are showing the strain with skyrocketing prices, excessive queues, damage at historical sites and environmental impacts all being felt. Tensions are high in some areas with tourists in Barcelona, Spain recently doused in water by frustrated locals and authorities in the historic city centre of Florence banning new short-term holiday rentals to try to relieve some of the pressure of over-tourism. Taking the road less travelled can help areas suffering from over-tourism and support those communities who would welcome more visitors. Supporting communities that need it Tourism plays a significant role in the economic growth of many communities around the world and there are many places that would really benefit from the tourist dollar. The money you spend as you travel can contribute meaningfully to local economies and help support small businesses, artisans, and entrepreneurs, ensuring that future generations can continue to enjoy unique destinations. But there are plenty of less altruistic reasons to seek out the hidden gems when you travel though. Authentic Encounters One of the lovely aspects of traveling to less touristy places is the opportunity to immerse yourself in local cultures. Away from tourist hotspots, communities maintain their unique traditions, cuisines, and ways of life. Imagine strolling through a market where locals gather to sell fresh produce, handicrafts, and homemade delicacies, or stumbling upon a hidden café where the owner shares stories of their town’s history. These encounters create lasting memories and offer a genuine glimpse into the daily lives of people from different corners of the world. Unspoiled natural beauty Nature enthusiasts will find bliss in exploring destinations that are off the typical tourist radar. Picture deserted beaches with powdery sand and crystal-clear waters, hiking trails winding through lush forests, or breathtaking untouched landscapes. Whether you’re seeking solitude in nature or hoping to capture stunning photographs without a sea of selfie sticks in the background, less touristy places often boast natural beauty that remains unspoiled and awe-inspiring. Affordable adventures Traveling to less touristy places can also be kinder to your wallet. Accommodation, dining, and activities in popular tourist hubs tend to come with inflated price tags due to high demand. In contrast, destinations that are yet to be discovered by the masses often offer more affordable options. You might find charming family-run guesthouses, budget-friendly eateries serving local dishes, and reasonably priced excursions that allow you to stretch your travel budget further. Destination dupes Doing a little homework can point you in the direction of alternatives to popular destinations. For example, instead of Venice – which is literally sinking under the weight of tourism -consider visiting the town of Trieste, an old port town by the Adriatic Sea. If you are after stunning beaches and clear aqua water, Palawan in the Philippines is a good alternative for the Maldives. Or for an alternative to over touristed St Tropez in France, Turkey’s Bodrum coast offers comparable glamour and affordable luxury. Doing a little research can uncover similar destinations that offer the experience you are seeking, with all the benefits and none of the problems of the overhyped placed. While the allure of ticking off the list of famous places is understandable, exploring less touristy places offers a wealth of unique experiences to the visitor, and benefits the local communities. So, the next time you plan an overseas holiday, think outside the square of the obvious destinations, and discover the hidden gems. i CATO reveals new trends with Australia’s 10m international travellers – Travel Weekly ii 2024 international travel boom predicted – VanillaPlus --- ### Market movements and review video – September 2024 - Published: 2024-09-10 - Modified: 2024-09-10 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-september-2024/ - Categories: Insights Stay up to date with what’s happened in Australian markets over the past month. Global stock markets – including the ASX – largely stabilised by the end of August after a turbulent month. It was a rocky start when markets everywhere fell after news of high unemployment figures in the US and an interest rate move by Japan’s central bank. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### How do retirement income options compare? - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://wealthinvestors.com.au/insights/how-do-retirement-income-options-compare/ - Categories: Insights Retirement is filled with opportunities and choices. There’s the time to travel more, work on long-delayed personal projects or volunteer your help to worthwhile causes. You also have a host of choices to make when it comes to funding your new life away from paid work. Here are four different options to consider. i Account-Based Pension An account-based pension (ABP) using your superannuation is one of the most common retirement income options. The amount you receive depends on the balance of your account and the drawdown rate you choose, subject to the minimum pension requirements set by the government. Some considerations: Tax benefits – Investment earnings, capital gains and withdrawals are tax-free, unless you have an untaxed component within your super. Payment flexibility – Subject to pension minimums, most super funds allow you to adjust the payment amount and frequency, and even make partial or full lump-sum withdrawals if needed. You can also return to work and continue to receive a pension. Longevity and market risks – You might outlive your account balance, especially if your withdrawals are high or your investment returns are poor. Transition to Retirement A transition to retirement (TTR) strategy allows access to some of your superannuation while still working, if you have reached age 60 (based on current rules). ii Some considerations: Flexible work options – You can reduce your working hours and supplement your income from your super. Limits on pension rates – Similar to an ABP, there is a minimum annual pension rate. However, there is also a maximum annual withdrawal of 10 per cent of your TTR account balance. Reduced retirement savings – Drawing on your superannuation while still working means your retirement savings might grow more slowly. Annuities An annuity is a financial product that provides a guaranteed income for a specified period or for the rest of your life. There are various types of annuities, including fixed, variable, and indexed annuities. You can purchase annuities or lifetime income streams using your superannuation. Some considerations: Predictable income – Provides a stable income stream, which can be reassuring for financial stability and provide an income for as long as you live. Lack of flexibility – Once you purchase an annuity, the terms are generally fixed and you cannot alter the income amount. There’s a restriction on capital withdrawals or in some instances no access to capital at all. Inflation risk – Fixed non-inflation-linked annuities may not keep pace with inflation unless specifically indexed to inflation. Innovative Retirement Income Stream An Innovative Retirement Income Stream (IRIS) is provided by a newer range of products. These were introduced after changes to regulations designed to deliver more certainty to retirement income by paying a pension for life without running out of funds. Some considerations: Age Pension benefits – Centrelink only counts 60 per cent of the pension payments received as assessable income and only 60 per cent of the purchase price of the product counts as an assessable asset until age 84 when it is reduced. Certainty – Some IRIS products offer a stable guaranteed income stream, providing financial security. No minimum requirements – IRIS products do not require an annual minimum amount, instead just requiring at least one annual payment. Complexity – Features vary widely between different IRIS products and may involve complex terms or conditions. Next steps How do these different options suit your personal needs and how would they affect your retirement income? Consulting with a financial advisor can help you navigate these choices and tailor a plan that best suits your needs. Speak to us, so we can help you structure a plan to fund the retirement lifestyle you’ve worked so hard for. i Planning to retire | Australian Taxation Office (ato. gov. au) ii Transition to retirement | Australian Taxation Office (ato. gov. au) --- ### When passion is the purpose of investing - Published: 2024-08-27 - Modified: 2024-08-27 - URL: https://wealthinvestors.com.au/insights/when-passion-is-the-purpose-of-investing/ - Categories: Insights Investing is often considered best undertaken with a cool head and heart. But for some investors, passion is the whole purpose of the investment. Passion investing is what it sounds like – investing in things you love, non-traditional assets that generally allow you to enjoy ownership while hopefully watching them appreciate in value at the same time. Most traditional investments take into consideration time horizon, risk appetite and investment capital appreciation goals. For the passion investor, while financial considerations may dictate their investments to some extent, they are strongly influenced by more than market returns and want to invest – and collect – in a way that supports their interests and passions. The growth of passion investing We Australians certainly love collecting and, according to the eBay State of Collectibles report, we also care about the financial implications of our collections. In fact, more than one in four Aussies collect goods such as coins, toys, sneakers and art and more than 40% of those collectors could be considered passion investors as they have a financial objective in mind. The top 10 luxury passion investments While buying and selling on Ebay is one end of the scale, the other end of the scale is the luxury passion investments. For those who have the cash to splash, some high-end investments can prove very lucrative. According to Knight Frank’s Luxury Investment Index, the top 10 most successful passion investments ranked in order from those recording the highest returns are art, jewellery, watches, coins, coloured diamonds, wine, furniture, luxury handbags, classic cars and rare whisky. i While major auction houses recorded record sales last year, the Luxury Investment Index recorded a marginal decline of -1%, largely due to a drop in the rare whisky index of -9%. This overall decline was on the back of an impressive 16% increase the previous year, highlighting the volatility of the index. Art typically records the most gains as investors pay stellar prices for museum quality works of art, with several single owner collections producing totals in excess of US$2. 5 billion. It’s not just art setting records though. A US$143 million Mercedes-Benz Uhlenhaut Coupé set a new record for the most expensive car ever sold, with the most expensive watch, a 1957 Patek Philippe 2499, going for almost $10 million dollars. Exploring other passions Of course, passion investing is more than just the above luxury goods. If you thought Lego was just a toy that possesses enduring popularity, think again – the biggest online database for collectible Lego sets is now worth $1. 2bn and it is possible for investors to realise profits in the range of 150% to 250%. ii Following in Lego’s footsteps as a popular passion investment is sneakers. More than just comfy footwear to collectors, sneaker reselling has become a $6 billion industry globally, with the most sought-after limited-edition shoes commanding six-figure prices on the resale market. iii Things to consider While collecting items you love may seem like an exciting way to park some extra capital, passion investing can be a risky proposition and there are a number of things to consider. Passion investments can be extremely susceptible to fluctuations in their value and luxury niche items can be hard to sell during economic downturns. You have to know what to look for and it can be difficult, if not impossible, to predict what will be of interest to collectors in years to come. As with more traditional investments, you usually need to hold on to passion investments for some time in order for their value to grow so they are rarely a ‘get rich quick’ scheme. They are also called passion investments for a reason. Any investment you are strongly attached to can potentially cloud your judgment when making decisions about buying, selling, or holding onto them. You also need to think about where and how your objects are stored so they don’t lose value and insurance is a consideration when you possess items of significant value. If you enjoy owning things that bring you joy, by all means pursue your passions – that’s what life is all about after all. Just approach with caution when mixing passion with investing. i https://www. knightfrank. com. au/blog/2024/04/04/art-leads-knight-franks-luxury-investment-index-with-prices-rising-11-in-2023 ii https://www. wsj. com/video/series/in-depth-features/lego-investing-is-booming-heres-how-it-works/5F2B44FE-2789-46E2-B280-9CA089EAB458 iii https://www. firstonline. info/en/sneakers-da-collezione-una-folle-ossessione-chi-ci-guadagna/ --- ### Releasing the value in your home - Published: 2024-08-15 - Modified: 2024-08-15 - URL: https://wealthinvestors.com.au/insights/releasing-the-value-in-your-home/ - Categories: Insights Rising property prices have led many people to look for ways to unlock the increased equity in their homes so they enjoy a comfortable lifestyle in their golden years. For most of us, our homes represent the biggest or most significant portion of our wealth. But it’s an asset that can’t necessarily be realised quickly. It might take some time to sell your home and, in any case, you still need somewhere to live. And, if you’re selling in a rising market, you’re also buying in a rising market. There are a number of ways to access the equity in your home, although be mindful of the consequences for your particular circumstances. With such a big decision and the complex financial products available, it’s best to get independent financial advice, we can help clarify how you might be affected now and in the future. Reverse mortgages Reverse mortgages are more popular than ever, allowing you to borrow money using the equity in your home as security. Following the introduction of tougher regulatory requirements, today, reverse mortgages are provided by a number of small bank and non-bank lenders. The highest amount you can borrow, using your home as security, varies according to your age. At age 60, it’s likely you will be able to borrow around 20 per cent of the value of your home. This amount usually increases as you get older so by 65, you may be able to borrow about 20-25 per cent. i The advantage of a reverse mortgage is that, while you’re living in your home, you don’t make any repayments on the loan. The loan, including interest and fees, is repaid when you move out or sell your home. Interest charged on the loan is usually higher than for standard mortgages. Currently, rates average just over 8 per cent to just under 10 per cent. ii The Australian Securities and Investments Commission MoneySmart website provides a reverse mortgage calculator to help you decide if it’s the right course of action for you. A Government scheme The Federal Government’s Home Equity Access Scheme is a popular alternative to private reverse mortgages products, with the scheme growing by about 60 per cent a year. iii The Scheme provides loans to eligible older people, secured against your home. You can choose to receive a lump sum or a fortnightly tax-free payment. iv The loan and any costs must be repaid to the government but you can make repayments or stop them at any time. If you sell the property you can repay the loan on settlement or transfer the loan to another property. If there’s an outstanding loan after your death, the government will seek repayment from your estate. The current interest rate is 3. 95 per cent. Home reversion Slightly different to a reverse mortgage, home reversion is another way of accessing the equity in your home while still living in the property. You don’t pay interest because it’s not a loan but there are transaction fees. The provider pays you a discounted amount for the percentage of the property you sell based on today’s value. Then, when the property is sold, the provider receives the same percentage of the sale price, meaning that the more your home increases in value, the more the provider receives. Other options Another way of taking advantage of the equity in your home is to sell it and buy a smaller one. Downsizing could allow you to clear the mortgage and invest or spend anything left over. Those aged 55 or older can contribute up to $300,000 (for each spouse) from the sale into your superannuation fund. It’s considered a non-concessional contribution, but it doesn’t count towards the contribution cap. v You could also consider converting your home to a dual occupancy or, if you’re on a large block, subdividing. Get in touch with us for a review of the options available to you, so you can look forward to enjoying your golden years with confidence. i Reverse mortgage and home equity release – Moneysmart. gov. auii Compare reverse mortgage interest rates in July 2024 – Finderiii 2022-23 Annual Report – Australian Government Department of Social Servicesiv Home Equity Access Scheme – Services Australiav Downsizer super contributions – Australian Taxation Office --- ### Investing cycles – Lessons from the Magnificent 7 - Published: 2024-08-06 - Modified: 2024-08-06 - URL: https://wealthinvestors.com.au/insights/investing-cycles-lessons-from-the-magnificent-7/ - Categories: Insights When it comes to investing in shares, it’s often said that time is your friend. The data shows that investing small amounts consistently over time and riding out the ups and downs of the market by holding onto your investments for the long term, can produce a healthy return. Over the past two decades, the top 500 US companies averaged a 10 per cent annual return and Australia’s S&P ASX All Ordinaries Index recorded an average annual return of 9. 2 per cent. i Those returns have been delivered despite some catastrophic events that sent the markets plummeting including the dot-com bubble crash, the Global Financial Crisis, and the effects of Covid-19. It takes grit to hold on as the markets plummet, but the best way might be to avoid the hype and tune out the ‘noise’. It can be a trap checking prices every day and week, causing heightened stress and anxiety about your portfolio, a recent example being the mid-2024 Microsoft outage which impacted briefly investor confidence. We can help you maintain a longer-term view, so it you have any concerns give us a call. The cycle of endless phases of good and bad times are a constant for markets. Most cycles follow a pattern of early upswing, after the market has bottomed out followed by the bull market, when investor confidence is strong and prices are rising faster than average. Then the market hits its peak as prices level out before negative investor sentiment drives a bear market. Finally, the bottom of the cycle is reached as prices are at their lowest. There are also certain seasonal market cycles that may be helpful in buying and selling decisions. Note, though, that there are always exceptions. In Australia, April, July, and December have tended to be the strongest months on the All Ordinaries Index. But these patterns have weakened a little over time, with lower average gains in April, July, and December more recently. Performance is usually the lowest in June. ii November and April have been the strongest months for US shares for the past 30 years, with average monthly gains of 1. 9 per cent and 1. 6 per cent respectively. The Magnificent Seven The performance of Nvidia and the Magnificent 7 is a real-time lesson in market dynamics and cycles. Despite the rise and rise of seven US technology stocks in the past 18 months – known as The Magnificent 7 – their price pattern has, more or less, followed these seasonal cycles. The seven stocks – Nvidia, Alphabet, Microsoft, Apple, Meta, Amazon, and Tesla – returned more than 106 per cent in 2023 alone. iii In the first half of 2024, their prices rose around 33 per cent on the US S&P 500 index while the rest of the index increased by only 5 per cent. But another story has been emerging in recent months. The Magnificent 7 has now become the Magnificent 3, thanks to intense excitement around artificial intelligence (AI). Nvidia, Alphabet and Microsoft leapt into the lead on the index, doubling the performance of the other four. iv Nvidia has been the market darling, with its price almost tripling in 12 months. But prices have been volatile at times. A correction in June knocked the company from the biggest in the world, a title it held briefly before the plunge, to number three after Microsoft and Apple. Some describe the activity as a bubble that is due to burst. Others say the Magnificent 7 stocks are undervalued and have further to go. Either way, be wary about getting caught up in the hype that surrounds rapidly rising prices. Keeping a cool head and taking the time to understand what you are investing in, and the potential risks will help you stay focussed on your long-term investing goals. Get in touch if you’d like to discuss your investment portfolio and to review in the context of your long-term investment goals. i 2023 Vanguard Index Chart: The real value of time – Vanguard ii The ’best’ and the ‘worst’ months for shares – asx. com. au iii The magnificent 7: A cautionary investment tale – Vanguard iv The Kohler Report – ABC News --- ### Ready, Set, Goals – Is it time for a mid-year check-in? - Published: 2024-07-30 - Modified: 2024-07-30 - URL: https://wealthinvestors.com.au/insights/ready-set-goals-is-it-time-for-a-mid-year-check-in/ - Categories: Insights Making time throughout the year to review and reassess the goals you set at the beginning of the year is just as important as setting the goals themselves. Now is the perfect time to reflect on what you’ve achieved to date and determine whether you’re still on track to achieving some or all of them or whether you might need to readjust the goal posts a little. You may have set business goals that focus on sales, improving your business cash flow, new product development or streamlining business processes but whatever it may be, you need to ensure each goal is reviewed regularly to help keep you on track for success. The path to success can change With the Olympics taking centre stage in July, there are plenty of lessons we can learn and highlighting why reassessing and resetting goals is important. Professional athletes train hard to achieve glory in their respective sports, but as part of their ongoing training, they will also need to factor in what will happen if they sustain an injury, become unwell or their performance plateaus. The same can be applied to setting professional or personal goals – you cannot always predict what happens on a day-to-day basis. Some things will be completely out of your control – as an example, what would happen if there was a data security breach to your business or you needed to take time off to attend to a family emergency? Situations like this could potentially derail your entire day/week/month which means less time spent working towards achieving your goals. It’s important to keep in mind that circumstances can change in a heartbeat, so it’s crucial that you factor this in and don’t be too hard on yourself if you’re not exactly where you expected to be at this time of year. Reflecting and resetting goals Using the SMART goal strategy (Specific, Measurable, Achievable, Relevant, Time-bound) can help you to define your goals and stay focussed. This method is used by many businesses to help keep projects on track. If you don’t want to use the SMART strategy, another practical way to help you achieve your goals is by: Assessing whether your goals are achievable – are you setting unattainable goals? Be realistic about what you are trying to achieve. Think about each of the goals you set at the beginning of the year and why you set them. Accounting for setbacks – as mentioned previously, life can throw unexpected curveballs, so it’s important to factor this in or have a contingency plan in place. Choose the right framework – while using the SMART method is popular, it may not be the best tool for your business. There are other goal-setting tools available so do your research to find out what works best for you. Incorporating ‘Stretch’ targets – stretch goals, KPIs (Key Performance Indicators) or targets are designed specifically to be more challenging. While they may take people out of their comfort zone, they can help to boost results. Take time out – this generally means having a good work/life balance but the same can be applied in the workplace. Team building activities are a good way to reduce stress in the workplace, increase job satisfaction, and incorporate better collaboration within the workplace. Refocus your goals – once you have reassessed your objectives and goals you can refocus on each of your priorities. Break down each objective so you can focus on achieving smaller goals to begin with – this will seem less daunting and more than likely set you up for success. What does success look like? Success is more than the end result, it’s also about the journey you took to get there. You may be in the exact same position in three months but sometimes it takes baby steps to achieve goals. Everyone’s path is different, so be flexible and make the necessary adjustments along the way to help set your business up for long-term success. --- ### To sell or not to sell is the question for moving into aged care - Published: 2024-07-23 - Modified: 2024-07-23 - URL: https://wealthinvestors.com.au/insights/to-sell-or-not-to-sell-is-the-question-for-moving-into-aged-care/ - Categories: Insights Moving into residential aged care can trigger a range of emotions, particularly if it involves the sale of the family home. What is often a major financial asset, is also one that many people believe should be either kept in the family or its value preserved for future generations. Whether or not the home has to be sold to pay for aged care depends on a number of factors, including who is living in it and what other financial resources or options are available to cover the potential cost of care. It also makes a difference if the person moving into care receives Centrelink or Department of Veterans Affairs payments. Cost of care Centrelink determines the cost of aged care based on a person’s income and assets. i For aged care cost purposes, the home is exempt from the cost of care calculation if a “protected person” is living in it when you move into care. A protected person could be a spouse (including de facto); a dependent child or student; a close relative who has lived with the aged care resident for at least five years and who is entitled to Centrelink income support; or a residential carer who has lived with the aged care resident for at least two years and is eligible for Centrelink income support. ii Capped home value If the home is not exempt, the value of the home is capped at the current indexed rate of $201,231. iii If you have assets above $201,231 – outside of the family home – then Centrelink would determine you pay the advertised Refundable Accommodation Deposit (RAD) or equivalent daily interest rate known as the Daily Accommodation Payment (DAP), or a combination of both. The average RAD is about $450,000. Based on the current interest rate of 8. 36% the equivalent DAP would be $103. 07 a day. Depending on your total income and assets, you may also be required to pay a daily means tested care fee. This fee has an indexed annual cap of $33,309 and lifetime cap of $79,942. This is in addition to the basic daily fee of $61. 96 and potentially an additional or extra service fee. There is no requirement to sell the home to pay these potentially substantial costs, but if it is a major asset that is going to be left empty, it may make sense. Other options to cover the costs may include using income or assets such as superannuation, renting the home (although this pushes up the means tested care fee and can reduce the age pension) or asking family to cover the costs. Centrelink rules For someone receiving Centrelink or DVA benefits, there is an important two-year rule. The home is exempt for pension purposes if occupied by a spouse, otherwise it is exempt for up to two years or until sold. If you are the last person living in the house and you move into aged care and still have your home after two years, its full value will be counted towards the age pension calculation. It can mean the loss of the pension. Importantly, money paid towards the RAD, including the proceeds from a house, is exempt for age pension purposes. Refundable Deposit As the name suggests, the RAD is fully refundable when a person leaves aged care. If a house is sold to pay a RAD, then the full amount will ultimately be paid to the estate and distributed according to the person’s Will. The decisions around whether to sell a home to pay for aged care are financial and emotional. It’s important to understand all the implications before you make a decision. Please call us to explore your options. i https://www. myagedcare. gov. au/understanding-aged-care-home-accommodation-costs ii https://www. myagedcare. gov. au/income-and-means-assessments iii https://www. myagedcare. gov. au/income-and-means-assessments --- ### When DIY does not pay off - Published: 2024-07-16 - Modified: 2024-07-16 - URL: https://wealthinvestors.com.au/insights/when-diy-does-not-pay-off/ - Categories: Insights “If you want something done right, you’ve got to do it yourself” Not necessarily! The appeal of doing it yourself is understandable. There is a great feeling that comes with doing something that challenges you and with being resourceful and learning a new skill. However, there can be pitfalls to DIY and there are benefits from getting an expert involved sometimes. We tend to be proud of what we create and place greater value on things we have made ourselves. There is a statistical difference between the dollar value someone places on something that they have built, compared to what another person would pay for it (this is for good reason known as the “Ikea effect” as it even applies to putting together flat-pack furniture). Making DIY look easy With all the information we have at our fingertips, encouraged by the appeal of learning a new skill and guided by the power of Google and YouTube videos, we are emboldened to give things a go. Whether it’s fixing that dripping tap, troubleshooting the laptop that’s playing up or even investing your hard-earned dollars, DIY has never looked so easy. The growth in DIY The DIY mindset seems to be one that is on the increase. When we think of DIY we tend to think of home improvement and fixing things around the home. This market has increased by almost 10 million dollars in the last ten years. i The statistics reveal more than half of us are taking up the tools, with 55 per cent of homeowners deciding to take on home improvement and repair jobs rather than seek professional help. ii DIY can be a lot more than just picking up a hammer though, and our love of DIY also extends to our financials. The search for additional income in an inflationary environment has seen an increase in traders keen to take the reins and invest for themselves. Over the past decade there has been a steady increase in the share of retail investors, with equity trades by a retail investor nearly doubling in volume from a decade ago. iii Equally, when it comes to getting ready for retirement the number of people setting up self-managed super funds (SMSFs) continues to rise, increasing by around 9 per cent over the past 5 years. iv Reasons to be careful There is a lot more to lose if there is a problem with your financial situation than a tap that’s leaking though, so it’s important to think about what is at stake when you manage any aspect of your own financials. The bottom line is you want to be getting the best outcomes and that does not always happen if you are taking a DIY approach. For example, when it comes to investing, a number of academic studies have shown that DIY investors tend to underperform the market and that underperformance ranges between 1% to 10% per year. v Getting an expert involved The trick with any form of DIY is to do your research, understand the task and what’s involved, and acknowledge when you might benefit from a helping hand. There are times when it’s OK to have a go yourself and times when it makes more sense to get advice and support. You can still learn and gain skills that you can apply to future situations but it can make sense to maximise your efforts, while leveraging the skills of the experts. When it comes to your financial life, whether it’s investing and growing your wealth, protecting your wealth, retirement planning or estate planning, there is a lot to know and consider, and consulting with an expert can really add value and help you avoid potential pitfalls. Getting help does not mean being passive and not engaged, however. The best outcomes are achieved when we actively work together in partnership to achieve your desired outcomes. There is a world of difference between totally going it alone and maybe floundering a little, and getting advice and guidance to reach the best outcome. So, if you want something done right, sometimes it is best to call in the experts! We are here to help. i https://www. mordorintelligence. com/industry-reports/diy-home-improvement-market/market-size ii https://blog. idashboard. com. au/2022/05/13/understanding-the-home-improvement-and-diy-market/ iii https://public. com/documents/2023-the-retail-investor-report iv https://www. morningstar. com. au/insights/retirement/246207/smsfs-continue-to-thrive v https://occaminvesting. co. uk/do-diy-investors-underperform/ --- ### Market movements and review video – July 2024 - Published: 2024-07-09 - Modified: 2024-07-09 - URL: https://wealthinvestors.com.au/insights/market-movements-and-review-video-july-2024/ - Categories: Insights Stay up to date with what’s happened in markets and the Australian economy over the past month. Despite some signs of a weakening economy with stalling growth and a softening labour market, persistently high inflation is acting as a roadblock to the RBA’s possible rate cuts. Markets have now priced in a risk that the RBA could hike rates as soon as the next meeting in August. Australian shares finished the month close to where they started, with investor sentiment influenced by news of higher inflation and fears of another interest rate hike. Click the video below to view our update. Please get in touch if you’d like assistance with your personal financial situation. --- ### Going for Gold - Published: 2024-07-04 - Modified: 2024-07-04 - URL: https://wealthinvestors.com.au/insights/going-for-gold/ - Categories: Insights Gold fever is in the air and it’s not just the prospect of medals at the upcoming Paris Olympics. Gold prices have been climbing strongly in 2024 as investors, jittery about the effects of wars in the Middle East and Ukraine, buy up the asset because of its reputation as a safe haven. The spot price has risen more than 18 per cent since mid-February. i Demand for the precious metal is also being driven by central banks adding to their gold reserves to hedge against currency and other market risks. For investors, gold has been an alluring buy for centuries thanks to its association with wealth and power. As a precious metal and a physical asset, it often attracts a certain confidence, which is sometimes misplaced. Patchy performance Day traders might be lucky enough at times to buy or sell gold for a decent profit by correctly guessing when to get in or out but, generally speaking, gold is not an easy investment to love. Over the longer term, it hasn’t always beaten inflation, the price can plunge at a time when market conditions suggest it should be rising and its performance against stocks and bonds has been varied. In fact, there have been long periods of persistently low prices. It languished for around six years from 1988 before recovering and then again for the decade or so leading up to the beginning of COVID-19 in 2020. The uncertainty of the pandemic-era helped spark a rally that has increased the price by almost 38 per cent. Pros and cons So, is gold worth considering as part of a portfolio? As with any investment, there are pros and cons. Like many other asset classes, gold can help to diversify a portfolio and reduce certain risks. During stock market downturns, gold prices often (but not always) begin to rise. Some investors like the idea that it is a scarce, physical asset and, despite its ups and downs, gold has tended to hold its value over time. At times gold has provided a good hedge against inflation. For example, in the US between 1974 and 2008, there were eight years when inflation was high and during those times, gold prices rose by an average of 14. 9 per cent annually. ii But different periods give different results. While US CPI growth was around 6. 8 per cent in 2021 and 2022, gold prices were achieving an annual increase of just over 1 per cent. How to invest You don’t need to lug home gold bars and hide them under the bed to have a stake in a gold investment. Of course, it is possible to own gold bullion by buying online or in person from one of a number of registered dealers in Australia. The actual gold can be delivered to you or held in storage for a fee. You could also own physical gold by buying jewellery although there are high mark ups and resale value isn’t assured. The ASX provides the avenue to buy shares in one or more of the many gold mining companies. You’ll need to do your homework carefully to consider the credentials of the companies. Some are riskier than others depending on the countries in which they operate and their size. You could also consider exchange traded funds (ETFs) that are linked to or track the gold price. One advantage is provided by funds that hedge currency risk so that your returns won’t be affected by differences in the US dollar. Although with any fund, you’ll need to factor in an annual management fee, which will reduce your ultimate return. If you’re interested in achieving a balanced portfolio, we’d be happy to help you. i Gold – Price – Chart – Historical Data – News (tradingeconomics. com) ii Is Gold An Inflation Hedge? – Forbes Advisor --- ### Preparing your family trust for EOFY - Published: 2024-07-04 - Modified: 2024-07-04 - URL: https://wealthinvestors.com.au/insights/preparing-your-family-trust-for-eofy/ - Categories: Insights With less than a month to go before the end of the financial year (EOFY) rolls around, some important tasks need to be completed for family trusts. Discretionary trusts (often called family trusts) are the most common trust used in Australia and are generally created to hold and protect family or business assets. Trustees of family trusts are able to distribute trust income or capital to any beneficiaries they choose. That means beneficiaries have no entitlement to receive payments in any one year, so one of the key tasks before EOFY is making the necessary trustee resolutions for the current income year. To ensure the trust’s discretionary beneficiaries are presently entitled to trust income, effective resolutions must be made by 30 June, or the date noted in the trust deed. This is particularly important if you wish to make beneficiaries specifically entitled to franked dividends and capital gains this year. Putting it in writing Written records of annual resolutions are essential if you wish to effectively stream capital gains or franked distributions to beneficiaries for tax purposes. i If a resolution deals with franked distributions from the trust, trustees are required to put these in writing indicating the beneficiaries specifically entitled to the franked distribution. When it comes to capital gains, written resolutions are also required and these need to be made by 31 August of the following income year to ensure discretionary beneficiaries are specifically entitled to the capital gain. However, if some or all of a capital gain forms part of the income of the trust estate, the resolutions need to be made by 30 June, because any capital gain forming part of the trust income cannot be specifically dealt with after a beneficiary has already been made presently entitled to it. Check family trust elections It’s also vital to check the elections your family trust currently has in place to avoid incurring family trust distribution tax (FTDT). ii If a trustee distributes income or capital to an entity other than the individuals specified in the family trust election, FTDT is payable at the top marginal tax rate (plus the Medicare levy) on the distributions. The ATO encourages trustees to regularly review their trust’s in-force elections. It recommends checking annually whether current elections can or should be revoked, if the specified individuals remain suitable, and the timeframes for varying or revoking elections. If any new entitled beneficiaries have been added to the trust during the income year, check you are holding their tax file number. Prepare for new reporting requirements Trustees also need to ensure they are prepared for the administration changes from 1 July 2024. These changes are part of the Modernisation of Trust Administration Systems (MTAS) project and affect return lodgements for the 2023-24 and later income years. iii The MTAS project was announced in the 2022-23 Federal Budget with the aim of streamlining taxpayer lodgements, improving the accuracy of income tax return information from trusts, and providing better information for ATO compliance activities. The new system is also designed to encourage the 30,000 trusts still lodging paper returns to move to electronic lodgement. From 1 July 2024, trustees are required to complete four new capital gains tax (CGT) labels in the statement of distribution section of their trust’s return. These labels are designed to help notify beneficiaries of their entitlement to trust income and assist with calculation of CGT amount in their tax returns. Trustees are also required to prepare a new trust income schedule for all beneficiaries receiving income from the trust. Beneficiaries will need to lodge this trust income schedule with their annual tax return. If you would like more information about EOFY requirements for your family trust, call our office today. i Capital gains | Australian Taxation Office (ato. gov. au) ii Family trusts – concessions | Australian Taxation Office (ato. gov. au) iii Modernising trust administration systems | Australian Taxation Office (ato. gov. au) Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Investment Property: Getting it right - Published: 2024-07-04 - Modified: 2024-07-04 - URL: https://wealthinvestors.com.au/insights/investment-property-getting-it-right/ - Categories: Insights With property remaining a high-priced asset, it’s more important than ever for investors to ensure their property investments are a financial success. The latest data demonstrates property’s popularity. One-in-five households (21%) owns a home in addition to their usual residence. i Maximising taxation benefits is one key element but the ATO recently found 9 out of 10 returns were incorrect, so it’s essential to check your paperwork as we approach the end of the financial year. ii Get your structure right As with any investment asset, ensuring the right ownership structure for a property asset is vital because it can make a big difference to your tax position each financial year. It’s also sensible to check if you are using the right structure to help protect your investment from creditors, provide income in retirement, or cope with the unexpected death of a part-owner. Managing the loan Once you establish your investment loan, tax still remains a consideration. Any deductions you claim for your loan expenses must directly relate to earning assessable rental income. iii In cases where money from the loan is used for both private and income-producing purposes (such as a property partly used for rental and partly as your home), you must split your claims into deductible and non-deductible amounts. If you use the redraw facility on your home’s mortgage to fund an investment property, you won’t be able to claim the interest as a deduction if you subsequently use your family home as a rental. There are also capital gains tax (CGT) implications with this strategy. iv Costs related to loan establishment fees cannot be claimed as a deduction upfront and must be spread over the term of the loan or a five-year period, whichever is shorter. v Rental deduction dangers Although many investors focus on the tax deductions they can claim from a property asset, both rental income and deductions are key areas of ATO interest. Detailed records are required to substantiate all claims and any rental income from ‑short-term arrangements and insurance payouts must be included in your return. vi You also need to be careful not to overclaim. Many new investors make the mistake of claiming an immediate deduction for initial repairs after purchasing a property. Existing damage must be claimed over several years as a capital works deduction and is used when working out your capital gain or loss when selling. vii Deductions such as advertising for tenants, professional property management, council rates, land tax and strata fees, building and landlord insurance, and pest control can only be claimed for time periods directly connected to earning income. Depreciation or capital works? Property investors are able to claim a wide range of deductions for expenses associated with maintaining and financing property assets, but care is needed. Claims for depreciation of assets with a limited effective life (such as freestanding furniture, washing machines and TVs), can be made each year, but deductions for capital works must be spread over 40 years following construction. Capital works include improvements or alterations such as adding a driveway or altering the building. viii Improvements such as renovating a bathroom, are a building cost and must be claimed at 2. 5 per cent annually over 40 years from completion. ix Check your CGT When it comes time to sell your investment, an important consideration is capital gains tax (CGT). The key to making your investment tax-effective is to ensure you have identified all legitimate expenses contributing to the property’s cost base so you can correctly calculate the capital gain or loss. The property’s cost base includes the price paid plus your buying and selling costs (such as stamp duty, legal fees and the agent’s commission). You are not permitted to include amounts already claimed as a deduction, including depreciation and capital works. Any capital gain must be included in your tax return for the income year the property is sold, while capital losses can be carried forward and used in future years. To ensure you are making the most of your investment assets, call our office today. i Housing Occupancy and Costs, 2019-20 financial year | Australian Bureau of Statistics (abs. gov. au) ii https://www. ato. gov. au/Media-centre/Speeches/Commissioner/Commissioner-s-address-to-the-Tax-Institute-s-Tax-Summit-2022/ iii, iv https://www. ato. gov. au/api/public/content/530c1d629e07404aa4405dbe664b8011? v=0ced7a8c v https://www. ato. gov. au/individuals-and-families/investments-and-assets/residential-rental-properties/top-10-tips-to-help-rental-property-owners vi https://www. ato. gov. au/Media-centre/Media-releases/Get-your-rental-right-this-tax-time/ vii, ix https://www. ato. gov. au/Individuals/Investments-and-assets/Residential-rental-properties/Top-10-tips-to-help-rental-property-owners/ viii https://www. ato. gov. au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-time/tax-time-toolkits/tax-time-toolkit-for-investors --- ### Enjoy the now and secure your future - Published: 2024-06-25 - Modified: 2024-06-25 - URL: https://wealthinvestors.com.au/insights/enjoy-the-now-and-secure-your-future/ - Categories: Insights Managing your financial situation always involves tension between how you live your life now and preparing for your future – whatever that looks like. The worry about not getting the balance right and making unnecessary sacrifices now – or not having enough money for the things you want to do in the future is a common and valid concern we hear when we talk to clients. You want to be living your best life now which means not living too frugally or worrying about your future. At the same time, you don’t want the choices you are making now in how you live your life to impact or make impossible the wonderful life you envision for yourself down the track. Balance whatever your stage of life We all have financial goals - whether you are saving for your children's education, working towards that once in a lifetime round the world trip, freeing up finances for a gap year, or setting yourself up for a wonderful retirement. It’s important to balance your ‘now’ with your ‘future’ when it comes to spending, saving, and investing to make sure you can achieve those goals. You don’t want to regret your spending – or on the other hand live a frugal life and look back on opportunities you missed while you were squirrelling it away. The tension between the ‘now’ and your ‘future’ with respect to your finances can be even more heightened when you have retired. It can be a strange adjustment suddenly not having a wage coming in and living off your savings, super and investments. It’s common, and quite understandable, to worry about not having enough to last the distance, particularly given that a 65-year-old today may live well into their 90’s and could spend up to three decades in retirement. i No one wants to outlive their savings. However, many retirees live unnecessarily frugal lives as evidenced by a 2020 Retirement Income Review which found that most people die with the bulk of their retirement wealth intact. ii Those that live frugally do so often not from necessity but because they don’t have an understanding of their financial needs, including how these will change over time, and how much they can afford to spend. How the balance changes over time That balance is hard to hit. It is different for different people, and your approach to saving and spending will change at various stages of your life. If you are paying off a difficult to maintain level of debt or in the final stages of scraping together a deposit for a home, making sacrifices now in the way you live life your life might feel OK. Equally if you have spent much of your life building wealth, letting loose the reins a little and going on that cruise might be something you are extremely comfortable with. Certainty now and confidence in the future Whatever your stage of life, achieving the right balance comes from having an in-depth understanding of your financial situation now, and establishing and maintaining a personalised plan that takes into account all aspects of your financials – your earning capacity, level of debt, assets and very importantly, the life you want to live today and your goals for the future. The importance of receiving support with financial planning is reinforced in a recent report which indicated advised Australians are significantly more likely to say they feel confident in achieving their financial goals (71 per cent) compared with those who are not receiving support (55 per cent). iii The same proportion said that they were living well now, stating their finances allow them to “do the things I want and enjoy in life. ” And those receiving advice are also balancing the “now” with their future needs. Those accessing financial advice also indicated they were more likely to be financially prepared for retirement and have a higher savings balance. This confidence that comes from receiving personalised advice also means being more prepared when people leave the workforce (and a wage) behind. Advised Australians are significantly more likely to feel very or reasonably prepared for retirement (76 per cent), than those without advice (45 per cent). iv The key to achieving a balance between living your best life now and being financially secure in the future is knowledge. If we know that tomorrow is shaping up well for us, we may worry a little less today, feel a little less guilty when we spend today and be less likely to have regrets about spending - or about missing out - further down the track. i https://www. aihw. gov. au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancyii https://treasury. gov. au/sites/default/files/2021-02/p2020-100554-ud00b_key_obs. pdfiii https://www. netwealth. com. au/web/insights/the-advisable-australian/understanding-australian-advice-clients-better/#downloadiv https://www. netwealth. com. au/web/insights/the-advisable-australian/understanding-australian-advice-clients-better --- ### What’s all the noise about loud budgeting? - Published: 2024-06-18 - Modified: 2024-06-18 - URL: https://wealthinvestors.com.au/insights/whats-all-the-noise-about-loud-budgeting/ - Categories: Insights Loud budgeting is a trend that may have started as a joke but is being embraced by those who want to share their financial goals and priorities and in doing so, also improve their chances of achieving them. It was comedian and writer Lukas Battle who bought the term “loud budgeting” to the world in a TikTok post, presenting it as an alternative to “quiet luxury” as loud budgeting represents a move away from spending to impress or conform. As is the way with trends, the idea resonated with people, was picked up and run with by a growing group of budgeters. The spirit of the trend is about saying a loud “no” to what doesn’t align with your values. But there’s more to it than that, and there is also a right way to go about loud budgeting that will enable you to keep your finances on target – and your friendships intact. The benefits of loud budgeting But before we look at how to get it right, let’s explore why loud budgeting can be such a powerful tool to put you in control of your financial journey. The fundamental reason it works is because talking transparently about your finances and sharing your reasoning behind how you want to spend your money gives you power and lets you decline invites in a way that is less likely to offend others. Being open about your challenges can create a sense of community and inclusion. By sharing and acknowledging that it is normal to have limited spending capacity and that it can be a juggle to manage our short-term spending with our long-term savings goals, helps everyone understand each other’s pressures. Once things are out in the open you are also more accountable. When you have shared your financial hopes and dreams with others, you are more likely to do what is required to stay on track and get support from those who care about you. Making it loud - and successful! Think of your goals Before you start sharing your financial goals with others you must be clear on what they are. Think about what is important to you and what you are working towards. Don’t just have figures in your head - do a proper budget of what you have coming in, what you need to save to meet your targets and what you have left over to spend, so you can make educated decisions. What matters to you When you have decisions to make about how to spend your money it can help to think about what is important to you and make intentional choices. That ensures you are not living unnecessarily frugally, but being selective about what you choose to spend your money on, taking into consideration what matters most to you. Eye on the prize It’s important to keep your eye on the prize (or prizes) whatever form they may take. Looking to the longer term, this can be smaller goals, like saving up for a special occasion or bigger ones, such as a home deposit. It could also be prioritising payments such as mortgages, student loans and other kinds of debt. Check in from time to time to track your spending and savings against your goals. Careful communication Being careful in your phrasing will help make sure feelings aren't hurt when you decline an invitation. Part of loud budgeting is not saying ‘no’ outright – it's about explaining what’s going on for you and offering an alternative that works for you. For example, if you’re invited out for a dinner that you know will blow the budget, you could say “I’m trying to get enough together for a deposit to buy a place so I’m on a tight budget at the moment, can we catch up for a BYO barbeque at my place instead? Making financial choices that are in line with how you want to live your life and prioritising long-term goals over temporary indulgences is a great way to set yourself up for a fantastic future. So why not speak up and try making your budgeting loud? --- ### How to end the financial year on a high note - Published: 2024-05-28 - Modified: 2024-05-28 - URL: https://wealthinvestors.com.au/insights/how-to-end-the-financial-year-on-a-high-note/ - Categories: Insights As the financial year draws to a close, it's the perfect time to review your financial affairs and set the stage for a successful new financial year. By taking care of essential tasks and implementing strategic planning, you can position yourself for a smooth transition and a strong start for the new financial year. Topping up super One important item for the To Do list is to top up your super with either concessional (pre-tax) or non-concessional (post-tax) contributions. For example, you could make a voluntary concessional contribution up to limit allowed and then claim a tax deduction on your personal assessable income for it. Consider making additional contributions to your own super account or your spouse's account, to take advantage of tax concessions. If you have unused concessional cap amounts from previous five years and a super balance less than $500,000 on June 30 the previous year, you may be eligible to make a catch-up (or carry-forward) contribution greater than the annual. Maximising contributions not only helps you build your retirement savings but can also provide valuable tax benefits. But it’s critical to be mindful of your caps and to ensure that you make any super contributions before the end of the financial year to meet the deadline. Reviewing investments Reviewing your investment portfolio is a valuable task at any time but particularly now. For example, you could take a look for any capital gains or losses that you could be used strategically to manage your tax liability. Also, it is worth considering how your portfolio performed over the past 12 months against your goal of capital growth, income, or balance. You may decide to readjust your goals or your investments to help steer performance in the right direction for the next 12 months. Of course, if you’re planning any changes, it’s important to check in with us to ensure you're making informed decisions about your investments. Paying expenses early Another useful strategy at tax time can be to bring forward any deductible expenses or interest payments before 30 June to reduce your taxable income. That could include incurring expenses on an investment property, prepaying interest on investment loans, making charitable donations, or claiming eligible work-related expenses. Make sure you keep detailed records and receipts to support your deductions. The ATO’s myDeductions app is a great place to start for free record keeping and being ready during tax time. Setting up salary sacrifice As you look ahead to the new financial year, consider whether a salary sacrifice arrangement might be right for you. Salary sacrifice allows you to divert a portion of your pre-tax salary directly into your superannuation, which effectively reduces your taxable income and boosts your retirement savings. You will need to think carefully about your living expenses to work out the amount you can afford to contribute to your super, ensuring you do not exceed your concessional (before-tax) contributions cap of $27,500, which will increase to $30,000 from July 1 2024 to avoid paying any extra tax. Your employer or payroll department can help you set up a salary sacrifice arrangement. Checking your budget This is a good time to revisit your financial goals and how you’re tracking, and then to put together a strong budget for the new financial year that will help get you further along the track. Take the time to review your income and expenses and identify any areas where you can cut back spending or improve your income. This exercise not only helps you understand your financial habits but also allows you to reallocate funds towards your goals, such as paying down debt, building an emergency fund, or increasing your investment contributions. Consult with professionals Don’t forget to check in with your trusted advisers - financial advisers, accountants, or tax professionals - to make sure you are making the most of any opportunities for financial growth and maximising tax savings. Taking advantage of our expert advice to review your current financial situation and goals, and to check that you are making the best decisions for you can make a difference. It provides peace of mind, ensures that you are complying with any obligations and, importantly, puts you in the best position to achieve your financial goals. Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Caught in the middle: help for the sandwich generation - Published: 2024-05-21 - Modified: 2024-05-21 - URL: https://wealthinvestors.com.au/insights/caught-in-the-middle-help-for-the-sandwich-generation/ - Categories: Insights If you are feeling a bit like the meat in the sandwich you are not alone. The ‘sandwich generation’ is a growing social phenomenon that impacts people from all walks of life, describing those at a stage of their lives where they are caring for their offspring as well as their elderly parents. The phenomenon is gathering momentum as we are tending to live longer and have kids later. It even encompasses royalty - Prince William has been dealing with a sick father while juggling school aged kids (as well as a partner dealing with serious health issues). A growing phenomenon The number of people forming part of the sandwich generation has grown since the term was first coined in the 1980’s, as we tend to live longer and have kids later. It is estimated that as many as 5% of Australians are currently juggling caring responsibilities which has implications for family dynamics, incomes, retirement and even the economy. i Like many other countries, the number of older Australians is growing both in number and as a percentage of the population. By 2026, more than 22 percent of Australians will be aged over 65 - up from 16 percent in 2020. ii It is also becoming more common for aging parents to rely on their adult children for assistance when living independently becomes challenging. The other piece of bread in the sandwich is that as a society we are caring for kids later in life. The median age of all women giving birth increased by three years over two decades. iii And with young people staying in the family home well into their twenties, we are certainly supporting our children for longer. Even after the kids leave the nest, it's also common for parents to become involved in looking after grandchildren. Taking its toll on carers While we want to support our loved ones, when that support is required constantly and intensively for both parts of the family, it can mean that something has to give and that ‘something’ is often the carer’s well-being. Even if you are not part of the sandwich generation but being squeezed at either end – caring for kids or parents, acting as a primary care-giver often requires you to provide physical, emotional, and financial support. It’s common to feel it take a toll on your own emotional and physical health, and sometimes your finances as you sacrifice some of your savings or paid work to help your loved ones. Support for caregivers It can be difficult to acknowledge you need assistance but there are a number of ways you can access help. Deciding what to get help with It can feel like there is not enough hours in the day and that’s overwhelming. Try to think about what you really need to do and where your time is best spent and consider if you can get assistance with tasks or duties you don’t have to do. This may mean outsourcing things like buying a healthy meal instead of cooking or getting a hand with gardening or lawn mowing. Think about what others could assist with to lighten and share your load. Accessing support There are also support networks out there that exist to take off some of the pressure. Reach out to local support networks via Carers Australia for help identifying mainstream and community supports. You or your loved ones may also be entitled to government support, under the National Disability Insurance Scheme (NDIS) or My Aged Care. These programs provide funding and resources to help pay for essential care; from domestic assistance with cleaning and cooking, to home modifications, to 24-hour care for those who require more support. The importance of self-care It’s vital to take some time out for yourself and make your own wellbeing a priority. Don’t feel that it’s selfish to take care of your own needs as that’s an essential part of being a carer. Resources like respite care and getting support when needed is an important gateway to self-care. Managing your finances Caregiving can put financial pressure on the whole household and has the potential to impact retirement savings. The assistance of a trusted professional can help, and we are here if you need a hand. Raising kids as well as supporting parents to live their best lives as they age is becoming more common and can be a challenging time of life. While the act of caring is the ultimate act of kindness - the most important thing to remember is to be kind to yourself. i https://info. careforfamily. com. au/blog/sandwich-generationii https://www. sydney. edu. au/news-opinion/news/2023/10/09/confronting-ageing-the-talk-australia-has-to-have. html iii https://www. abs. gov. au/ --- ### The art of refinancing - Published: 2024-05-14 - Modified: 2024-05-14 - URL: https://wealthinvestors.com.au/insights/the-art-of-refinancing/ - Categories: Insights Refinancing your home loan has the potential to save you thousands, reduce your monthly repayments and free up your finances to achieve your goals. However, mastering the art of refinancing requires strategic planning, an understanding of the process and taking numerous considerations into account. Whether you plan on external or internal refinancing, here’s what to keep in mind. Understand the different types of refinancing While many people think of refinancing as switching lenders, you can also choose a better deal but stay with your original lender. Refinancing through your original lender but opting for a different deal is referred to as an internal refinance; external refinance is where you find a different lender. In 2023, it was reported that Australia had the largest boom in mortgage refinances in history over the past three years. i And according to Finder’s Housing Market Report 2023, while in 2019 just over half of refinancers were external refinancers, by mid-2023, this had jumped to 72%. ii Know the market and interest rate movements As the stats show, in recent times more mortgage holders than ever, are swapping lenders in order to chase a better deal. Often this is the main goal – to refinance to get a lower interest rate. Given the fluctuations in the market and the rise and fall of interest rates, it’s smart to keep informed as to what’s happening. It’s also a good idea to touch base with a financial expert to get their take on whether now is a good time to refinance. Assess your financial health It’s then time to look at your financial situation, so you have a clear understanding of your credit score, current financial position and equity, income, and debt-to-income ratio. It may have been some time ago that you last did this and it’s likely that some things have shifted, especially given the higher cost of living at the moment. Understand your loan Whatever your reasons for wanting to refinance are, you need to understand what your current commitment is and what changes you want to make. Read through your current loan’s terms and conditions, as it may have been a while since you’ve checked them. You can chat to your current lender to see if there are any benefits you haven’t been utilising or costs you are unaware of. Understand refinancing costs A follow-up from knowing your loan is ensuring you have a clear understanding of refinancing costs. While the lure of a better deal can be hard to resist, you may find that it may cost you more than you had thought. Calculate your break-even point to determining if refinancing is beneficial – this includes taking any valuation fees and payout costs (such as exit fees) into consideration. If you are on a fixed rate home loan, you may need to pay a break free if you refinance. Consider the impact on your credit score and LVR Another thing to be aware of is how refinancing can impact your credit score. Aspects that come along with refinancing, such as ending a loan and needing another credit check, can cause your credit score to dip. And if there is the possibility that you skip out on a mortgage payment (should the refinancing process take longer than expected, for example), this will further damage your credit score. Loan to Value Ratio (LVR) is the difference between the amount you’re borrowing to the value of the property. If your LVR is over 80%, you need to pay Lender’s Mortgage Insurance (LMI). When refinancing, it’s likely that your LVR has shifted due to your mortgage repayments, so your LVR tends to be lower as a result. However, if your property has fallen in value and your LVR has risen, then you may need to pay LMI when refinancing. We can assist with refinancing to ensure it’s not only beneficial for you, but that it also frees up your finances. Get in touch today so we can discuss your options. i https://www. macrobusiness. com. au/2024/03/mortgage-refinancing-boom-turns-bust/ ii https://www. finder. com. au/home-loans/housing-market-report --- ### Market movements & review video - May 2024 - Published: 2024-05-07 - Modified: 2024-05-07 - URL: https://wealthinvestors.com.au/insights/market-movements-review-video-may-2024/ - Categories: Insights Stay up to date with what's happened in markets and the Australian economy over the past month. As eyes turn to the 2024-25 Federal Budget, stronger-than-expected domestic inflation was recorded for April. The markets have been subdued due to geopolitical instability and uncertainty around cash rates both in Australia and the US. The S&P/ASX 200 was down by about 2. 5% for April. Please get in touch if you’d like assistance with your personal financial situation. Click to view May Market & Economic review video --- ### Living your best life in retirement - Published: 2024-04-30 - Modified: 2024-04-30 - URL: https://wealthinvestors.com.au/insights/living-your-best-life-in-retirement/ - Categories: Insights If you’re nearing retirement age, it’s likely you’re wondering if you will have enough saved to give up work and take it easy, particularly as cost-of-living increases hit some of the basic expenses such as energy, insurance, food and health costs. Fortunately, someone has already worked out what you might need. The Association of Superannuation Funds in Australia (ASFA) updates its Retirement Standard every year, which provides a breakdown of expenses for two types of lifestyles: modest and comfortable. i Based on our average life expectancy - for women it is just over 85 years and men 81 - if you are about to retire at say age 67, you will have between 14 and 18 years in retirement, on average and depending on your gender. ii ASFA finds that a couple needs $46,944 a year to live a modest lifestyle and $72,148 to live a comfortable lifestyle. That’s equal to $902 a week and $1387 respectively. The figure is of course lower for a single person - $32,666 for a modest lifestyle ($628 a week) or $51,278 ($986) for a comfortable lifestyle. iii What does that add up to? ASFA estimates that, for a modest lifestyle, a single person or a couple would need savings of $100,000 at retirement age, while for a modest lifestyle, a couple would need at least $690,000. iv A modest lifestyle means being able to afford everyday expenses such as basic health insurance, communication, clothing and household goods but not going overboard. The difference between a modest and a comfortable lifestyle can be significant. For example, there is no room in a modest budget to update a kitchen or a bathroom; similarly overseas holidays are not an option. The rule of thumb for a comfortable retirement is an estimated 70 per cent of your current annual income. v (The reason you need less is that you no longer need to commute to work and you don’t need to buy work clothes. ) Building your nest egg So how can you build up a sufficient nest egg to provide for a good life in retirement? There are three main sources: superannuation, pension and investments/savings. Superannuation has the key advantage that the money in your pension is tax free in retirement. Your superannuation pension can be augmented with the government’s Aged Pension either from the moment you retire or later when your original nest egg diminishes. Your income and assets will be taken into account if you apply for the Age Pension but even if you receive a pension from your super fund, you may still be eligible for a part Age Pension. You may also be eligible for rent assistance and a Health Care Card, which provides concessions on medicines. vi Money keeps growing It’s also important to remember that the amount you accumulate up to retirement will still be generating an income, whether its rentals from investment properties or merely the growth in the value of your share investments and the accumulation of money from any dividends paid. You can also continue to add to your superannuation by, for instance, selling your family home and downsizing, as long as you have lived in the home for more than 10 years. If you are single, $300,000 can go into your super when you downsize and $600,000 if you are a couple. This figure is independent of any other superannuation caps. vii Planning for a good life in retirement often require just that – planning. If you would like to discuss how retirement will work for you, then give us a call. i Retirement Standard - Association of Superannuation Funds of Australia ii Life expectancy, 2020 - 2022 | Australian Bureau of Statistics (abs. gov. au) iii https://www. superannuation. asn. au/media-release/retiree-budgets-continue-to-face-significant-cost-pressuresiv https://www. superannuation. asn. au/resources/retirement-standard/v https://www. gesb. wa. gov. au/members/retirement/how-retirement-works/cost-of-living-in-retirement vi Assets test for Age Pension - Age Pension - Services Australia vii Downsizer super contributions | Australian Taxation Office (ato. gov. au) --- ### SMSFs: What happens if you exceed your super caps - Published: 2024-04-23 - Modified: 2024-04-23 - URL: https://wealthinvestors.com.au/insights/smsfs-what-happens-if-you-exceed-your-super-caps/ - Categories: Insights The rules around making some types of super contributions have been relaxed in recent years, so it’s worth exploring the different opportunities available to you before making a large contribution. i What are contribution caps? Given the tax-effective environment of Australia’s super system, there are annual limits on how much you can contribute each financial year. The two main types of contributions are concessional (before-tax) and non-concessional (after-tax) contributions. Concessional contributions include employer Super Guarantee contributions, salary sacrifice and personal tax-deductible contributions, with the general contributions cap for 2023-24 being $27,500. In some situations, you may be permitted to contribute more if you have unused cap amounts from previous financial years. If you’re a SMSF member, you may be able to make a concessional contribution in one financial year and have it count towards your concessional cap in the following financial year. Non-concessional contributions cap If you use after-tax money to make a super contribution, this is classes as a non-concessional contribution and there is no tax payable when the contribution is paid into your super account. The general non-concessional contributions cap in 2023-24 is $110,000 provided you meet all the eligibility criteria, such as your Total Super Balance being below your personal limit. Your personal cap may be different. If you’re age 55 or older, the once-only downsizer contribution cap is $300,000 per person ($600,000 for a couple). These contributions from the sale of your main residence don’t count towards your annual non-concessional cap. Exceeding your contribution caps There are different rules for super contributions that exceed the annual caps, depending on the type of contribution. If you go over the annual concessional cap, your contribution is counted as personal assessable income and taxed at your marginal tax rate, with a 15 per cent tax offset to reflect the tax already paid by your super fund. Your increased assessable income may also affect any Medicare levy, Centrelink benefits and child support obligations. The excess contributions can be withdrawn from your super fund, but if you choose not to withdraw them, the excess is counted towards your non-concessional contributions cap. If you don’t or can’t elect to release excess contributions, you could end up paying up to 94 per cent in tax. ii Exceed your non-concessional cap Contributions exceeding your annual non-concessional (after-tax) cap are taxed at 45 per cent plus the 2 per cent Medicare levy. This is in addition to the tax already paid on this money. Before the ATO applies this tax, you are given the opportunity to withdraw the excess non-concessional contributions, plus a notional amount to reflect the investment earnings. You pay tax on the notional earnings just like personal income, less a 15 per cent offset. Withdrawing excess contributions Like most things to do with tax and super, the process for withdrawing excess contributions is fiddly. If you have an excess concessional contribution, the ATO sends you a determination letter with details of what you need to do, plus an income tax notice of assessment. You have 60 days to decide whether to have the excess concessional contribution refunded by the super fund and tax deducted by the ATO, or to pay the tax personally and leave the contribution in your account. Refunding excess non-concessional contributions For excess non-concessional contributions, the ATO assumes you wish to have your excess contributions and notional earnings refunded in order to avoid paying 47 per cent on them. The default process is the ATO automatically issues a release authority to your fund and directs it to deduct the additional tax owing and return the leftover amount to you. If you wish to nominate a specific fund from which the refund should be paid, or leave the excess in your account and pay the tax personally, you must make an election within 60 days of the initial notice. Call us today to assess how the super contribution caps may affect you. i https://www. ato. gov. au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/restrictions-on-voluntary-contributionsii https://www. ato. gov. au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap --- ### Being informed is the key to avoiding scams - Published: 2024-04-16 - Modified: 2024-04-16 - URL: https://wealthinvestors.com.au/insights/being-informed-is-the-key-to-avoiding-scams/ - Categories: Insights While it seems we all like to think we are clever enough to outwit a scam, Australians collectively lost more than 480 million to scams last year. Every year scammers get more sophisticated in the methods they use to part us with our money – or our valuable personal information. It’s important to recognise that even the savviest of us can fall victim to scams that are ever evolving to take us for a ride. Let’s look at the scams that are having the most impact – and how to avoid them. Phishing scams continue to reach new heights The most common type of scam, and one that continues to increase in prevalence is known as phishing. The reason these scams are so common, is that unlike romance scams targeting those looking for love, or financial scams targeting investors, phishing scams target everyone – and everyone who has an email account, or a mobile phone is vulnerable. There were nearly 109,000 phishing-related scam reports last year, with losses amounting to $26. 1 million (up 6 per cent year-on-year). i These may come in the form of text messages or emails from a scammer pretending to be a legitimate business or government entity you know and trust. They are designed to convince you to provide personal information to steal your identity or to be able to access bank accounts and/or superannuation accounts. Or they can simply be asking you to part with your money to pay an overdue invoice, a “fine,” or tax debt. There are also the scammers who pretend to be a person you know, in order to extract money from you. A classic that’s been doing the rounds is the “Hi mum/ dad” text where the scammers pretend to be one of your kids who has lost their phone and urgently needs you to transfer them money. How to avoid getting caught So, given how convincing these messages can be, how do you keep yourself safe? The best defence is awareness and knowing what to look for, so let’s look at some common characteristics of scam emails and texts and some of the methods commonly employed by scammers so you can be alert – and stay safe. Urgent call to take action or threats – Scammers will often create a sense of urgency, telling you to take immediate action to claim a reward or avoid a fine or penalty. They are hoping you’ll react without thinking too much about it or checking the legitimacy of the message or email. Tip: be sceptical if a message is prompting urgent action and approach with caution. Emails that look like they are coming from a trusted source – Scammers are often quite good at mimicking a business's branding and at first glance can look pretty convincing. Tip: Some of the red flags to look for are spelling mistakes or a generic greeting (if the message is from a provider, they should have your name on file). Check the email source carefully. Scammers use subtle misspellings of the legitimate domain name. Like replacing "o" with a zero or replacing "m" with an "r" and a "n". Suspicious links – Scammers include links to online forms to capture your information that can look uncannily like the real thing and often send computer viruses and malware through malicious attachments. If you suspect that a message, or an email is a scam, don't open any links or attachments. Tip: Hover your mouse over, but don't click the link. Look at the address that pops up when you hover over the link and see if it matches the link that was typed in the message. To visit a provider’s website rather than click on a link to a website manually type the official web address into your browser. You could also use a search engine to find the official website and log in that way. With phishing attempts becoming ever harder to spot and avoid, it’s more important than ever to stay vigilant and equip yourself with tools to make sure you don’t take the bait. If you think you may have fallen prey to a scam, contact your bank and report the matter to Scamwatch. i https://www. sbs. com. au/news/article/481m-in-losses-and-302k-complaints-the-scams-hitting-australians-hard/hg52ignc8 --- ### Markets love certainty, but what happens next? - Published: 2024-04-09 - Modified: 2024-04-09 - URL: https://wealthinvestors.com.au/insights/markets-love-certainty-but-what-happens-next/ - Categories: Insights Financial markets can be like finely tuned racehorses, poised to gallop ahead under ideal conditions but often highly reactive to unexpected events. It’s often said that the markets love certainty. Investors feel more confident when economic conditions are stable and predictable. But certainty in financial conditions is never a sure thing. Uncertainty is always just around the corner with the possibility of changes in interest rates, new laws or regulations, upheavals in overseas markets, a breakdown in Australia’s relationship with a major trading partner, and wars and political instability. As a result, stability and predictability are most often fleeting with peaks and troughs in prices inevitable. Look at the past few years. Between 2020 and 2022, we were dealing with the side effects of COVID-19 on the economy and markets. Since 2022, interest rate rises, increases in the cost of living and conflicts in Ukraine and the Middle East have caused further market volatility. This year, global political stability may be affecting markets with almost 50 per cent of the world’s population due to head to the polls to choose new governments including the United States, India, Russia, South Korea and the European Union. i Interest rate movements in Australia and overseas are another focus. In this dynamic environment, investors find themselves grappling with crucial decisions about how to safeguard and optimise their portfolios. It could be useful to know that making hasty decisions, reacting quickly to the latest event, may not be the best move. Consider the performance of various assets classes over 24 years. If you had invested $10,000 in a basket of Australian shares on 1 February 2000, for example, your portfolio would have been worth $67,717 at 31 January 2024, delivering a return of 8. 3 per cent each year. ii The same amount invested in international shares over the period would have provided a 5. 4 per cent annual return with your portfolio then at $35,373. US investment advisers Dimensional have calculated the risk to a portfolio of being out of the market for even a short period. An investment of US$1,000 in 1998 of stocks that make up the Russell 3000 Index, a broad US stock benchmark in 1998, would have turned into U$6356 for the 25 years to 31 December 2022. But if you had decided to sell up during the best week, before later reinvesting, the value would have dropped to $5,304. Miss the three best months, which ended June 22, 2020, and the total return dwindles to $4,480. iii In other words, reacting to events by quickly selling up can have an unwelcome effect on your portfolio. Trying to time the market by identifying the best and worst days to buy and sell is almost impossible. Investing for the long-term in a well-diversified portfolio can better suit some investors. Historically, long-term investors who have weathered short-term storms have been rewarded. Markets have shown they tend to recover over time, and a diversified portfolio allows investors to capture the upside when conditions improve. And there’s a bonus. The compounding effect of returns over an extended period can significantly enhance the overall performance of a portfolio if they are reinvested. Why diversify? Different asset classes – such as shares, bonds and cash – perform differently at different times. By diversifying investments across different asset classes, regions and companies, can work towards reducing the effect of a poorly performing asset on the overall portfolio, providing a buffer against volatility and lowering risk. Appreciating the lessons learned from the past while also understanding that past performance may not predict future performance, is a helpful way of navigating the uncertainties of the global markets. We can help you stay committed to a robust investment strategy, design a portfolio that meets your objectives and help navigate the complexities of the markets. Reach out to us to help you invest confidently. Market uncertainty caused by key historical events Source: Vanguard Digital Index Chartiv Missed opportunity Source: Dimension Funds Advisorsiiii The Ultimate Election Year: All the Elections Around the World in 2024 - Elections Around the World in 2024 | TIME ii https://insights. vanguard. com. au/VolatilityIndexChart/ui/retail. htmliii What Happens When You Fail at Market Timing | Dimensionaliv Vanguard Index Volatility Charts --- ### New increased super contribution caps - Published: 2024-04-03 - Modified: 2024-04-03 - URL: https://wealthinvestors.com.au/insights/new-increased-super-contribution-caps/ - Categories: Insights As the end of financial year gets closer, some investors are thinking about the most effective ways to boost their super balance, particularly with an increase in the caps on contributions from 1 July. The concessional contributions cap, which is the maximum in before-tax contributions you can add to your super each year without paying extra tax, is increasing to $30,000 from $27,500. i The cap increases in line with average weekly ordinary earnings (AWOTE). It’s a good idea to keep track of your concessional contributions – which include any compulsory contributions made by your employer as well as salary sacrifice contributions – so that you don’t unintentionally exceed the cap. It is particularly important for those with more than one job or super fund because all of the contributions are added together and must not exceed the cap. You can check your current balance at ATO online services. Log into your myGov account and link to the ATO to see all your details. It is also useful to be aware of payment and reporting timelines. For example, your employer can make super guarantee contributions up until 28 July for the final quarter of the financial year and salary sacrifice contributions up until 30 June. Any amounts showing on the ATO website for your account are based on when your fund reports to the ATO. Carry forward unused amounts If you haven’t made extra contributions in past years, you may have unused concessional cap amounts. These can be carried forward, allowing you to contribute more as long as your super balance is less than $500,000 at 30 June of the previous financial year. You can carry forward up to five years of concessional contributions cap amounts. Getting close to exceeding the cap? If you’re worried about going over the cap, you may wish to stop any further voluntary contributions based on an assessment of the extra tax you will pay. For those with two or more employers, you may opt out of receiving the super guarantee from one of the employers. Meanwhile, if special circumstances have caused you to exceed your cap, it’s possible to apply to the ATO for some or all of the contributions to be disregarded or allocated to the next financial year. But, if all else fails and you have exceeded the cap, the excess contributions will be included in your assessable income and taxed at your marginal rate less a 15 per cent tax offset. The good news is that you can withdraw up to 85 per cent of the excess contributions from your super fund to pay your tax bill. Any excess contributions left in the fund will be counted towards your non-concessional contributions cap. Timing is everything The upcoming Stage 3 tax cuts, which commence on 1 July 2024, may affect the value of your concessional contributions. For some, tax benefits may be greater if contributions are made before the tax cuts begin. Please check with us about your circumstances to make sure you make the most effective move. Non-concessional cap also increased The non-concessional contributions cap is the maximum of after-tax contributions you can make to your super each year without paying extra tax. ii The non-concessional cap is exactly four times the amount of the concessional cap so from 1 July 2024 it increases from $110,000 to $120,000. If you exceed the cap, you may be eligible to use the ‘bring forward rule’iii, which allows you to use caps from future years and possibly avoid paying extra tax. It means you can make contributions of up to two or three times the annual cap amount in the first year of the bring forward period. If your total super balance is equal to or more than the general transfer balance cap ($1. 9 million from 2023–24 and 2024-25) at the end of the previous financial year, your non-concessional contributions cap is zero for the current financial year. We’d be happy to help with advice about how the changes in contribution caps might affect you and whether you are eligible for the bring forward rule. Non-concessional contributions Bring-forward cap first year (applying to 2023–24) Total super balance on 30 June of previous year Non-concessional contributions cap for the first year Bring-forward period Less than $1. 68 million $330,000 3 years $1. 68 million to less than $1. 79 million $220,000 2 years $1. 79 million to less than $1. 9 million $110,000 No bring-forward period, general non-concessional contributions cap applies $1. 9 million or more nil Not applicable Speak to us if you have any questions regarding the above information. i, ii Understanding concessional and non-concessional contributions | Australian Taxation Office (ato. gov. au) iii Non-concessional contributions cap | Australian Taxation Office (ato. gov. au) Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Evidence-based ways to hold back the hands of time - Published: 2024-03-26 - Modified: 2024-03-26 - URL: https://wealthinvestors.com.au/insights/evidence-based-ways-to-hold-back-the-hands-of-time/ - Categories: Insights You can’t stop the clock, so the saying goes, but humanity has spent a long time trying to slow down or even reverse the effects of aging. Even today it can be hard to distinguish those measures that work from those that may not work and avoid those that may be downright dangerous! Fortunately, science- based public health research has some of the answers, so for some medically backed ways to stay healthy as you age- read on. But first let’s look at mankind’s long history of trying to stop the clock, or at least slow it down a little. Anti-aging practices included the Egyptian queen Cleopatra bathing in donkey’s milk, 16th century French courtesans drinking suspended particles of gold, and the Spanish explorer Juan Ponce de Leon’s infamous quest for the legendary fountain of youth. Unfortunately, many of these measures weren’t successful and may have actually shortened rather than lengthened the live spans of those trying them. Today the quest continues... The quest for the fountain of youth has not ceased - it’s just taken other forms in today’s society. The anti-ageing market is ever expanding and expected to be more than $119. 6 billion globally. i American tech centimillionaire Bryan Johnson is a significant contributor to that figure, reportedly spending $2 million a year on a complex regime designed to reduce his biological age from 45 to 18, which includes injecting himself with his 17-year-old son’s plasma. The truth is, aging is natural. Our bodies aren’t meant to stop aging entirely. But the good news is that there are some tried and true, medically proven ways to stave off many of the problems associated with aging and, in some cases, slow down the aging process. While none of these are groundbreaking discoveries, it’s worth keeping in mind that you don’t have to spend all your money or waking hours to stay healthy as you age. Tips for living well and living long: Move it! That treadmill at the gym may not be a time machine but it can play a part in slowing down the clock. In fact, research showed that those who ran a minimum of 30-40 minutes, five days a week, had an almost nine-year “biological aging advantage” over those who lived a more sedentary lifestyle. ”ii Doctors call physical exercise a “polypill” because it can prevent and treat many of the chronic diseases associated with aging and it’s never too late to start getting the benefits from regular exercise. Even a daily walk can do wonders! Stress less It’s no secret that being in a constant state of stress is wearying and can make you feel older than your biological age, but recently scientists confirmed that exposure to stress can cause inflammation and damage to DNA in cells, which in turn can accelerate aging. iii The good news is this can be reversed using stress busting techniques such as mindfulness meditation, breathing exercises and progressive muscle relaxation which can lead to improvements in various biological markers associated with aging. Nourish yourself While there is plenty of hype around the plethora of “superfoods” that are touted to possess anti-aging qualities there is no one food that will significantly impact the aging process and turn back the clock. However, the food and drink we put in our bodies day after day does make a difference to our health as we age. Research from the worlds “Blue Zones” - areas where people tend to reach the age of 100 - demonstrate the benefits of a relatively plant-focused diet consisting largely of vegetables, fruits, grains, and legumes. iv Maintain a positive mindset and embrace aging Finally, it’s also worth considering that as we can’t beat the clock, we might as well accept, if not embrace, the gifts that come with age (wisdom and a longer-term perspective come to mind! ). And moving through life with a positive mindset about the aging process might also give you more days to enjoy. A study recently confirmed that those with a positive view of growing older lived seven years longer than those who complained about it. v All in all, life is to be lived to the fullest and it’s precious because it’s finite. Do what makes you feel healthy and gives you joy now and that will also help you to enjoy life in the future. i https://www. globenewswire. com/en/news-release/2022/03/29/2412093/0/en/Anti-aging-Market-Size-to-Worth-Around-US-119-6-Bn-by-2030. htmlii https://news. byu. edu/news/high-levels-exercise-linked-nine-years-less-aging-cellular-leveliii https://www. healthline. com/health-news/stress-can-increase-your-biological-age#How-stress-ages-the-body iv https://www. everydayhealth. com/diet-nutrition/the-blue-zone-diet-a-complete-scientific-guide/v https://pubmed. ncbi. nlm. nih. gov/12150226/ Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Insurance is a sound investment - Published: 2024-03-19 - Modified: 2024-03-19 - URL: https://wealthinvestors.com.au/insights/insurance-is-a-sound-investment/ - Categories: Insights Managing risk is an essential part of investment strategy to reduce the potential for losses. Risk is not just associated with investing though - life can throw a curve ball or two and insurance is one way to manage risk in a broader context. It’s a matter of weighing up your risks and thinking about what you would do if the worst happened. Could you afford to build a new house, buy a new car or support your family if you became too ill to work? Various insurance products or self-insurance can help to mitigate these types of risks. Underinsurance While many Australians have some form of life insurance through their superannuation, the level of cover is rarely sufficient. The standard offering within the super framework is well below what your family need to live comfortably should you die or lose your ability to earn an income. A Financial Services Council report, estimates that as many as one million Australians are underinsured for death and total permanent disability (TPD) and 3. 4 million for income protection. i Rice Warner estimates that insurance cover for a 30-year-old with dependents should equal eight times the annual family income for life insurance, four times the family income for TPD and 85 per cent of the family income for income protection. The default superannuation offering falls well short of this figure. ii Home and contents But it’s not just life insurance. There is also a fair amount of underinsurance in home and contents. With the growing incidence of bushfires, floods and storms, protecting your home and possessions with insurance is more important than ever. The biggest mistake is insufficient cover to rebuild your property particularly with the recent surge in building costs. You should also consider the costs associated with demolition and removal of debris, the cost of architects and builders and the need to find alternative accommodation while your home is being rebuilt. It is important not to head for the cheapest policy as this may well fail to meet your needs. Read the product disclosure statement to make sure the cover delivers exactly what you need. Health and travel Health insurance and travel insurance are also important considerations. You will pay a Medicare Levy surcharge if you do not take out private health insurance and have a taxable income above $93,000 for singles or $186,000 for a family, couple or a single parent (increased by $1,500 for each dependent child after the first child). This starts at 1 per cent of your taxable income and goes up to 2. 5 per cent. So, it is worthwhile weighing up whether taking out private health insurance is the better option. iii When it comes to travel insurance, if you can’t afford it, you can’t afford to travel overseas, according to the Federal Governments Smart Traveller website. iv The cost of medical care in other countries can be exorbitant and you may need to be transported back to Australia. The expenses can be enormous. Of course, travel insurance can also help to compensate for cancelled or delayed trips and lost luggage. Self-insurance alternative An alternative to taking out an insurance policy is to self-insure. That means putting money aside regularly to build up a big enough fund to help keep a roof over your head or replace a vehicle. v The upside is that these funds are yours and, properly invested, can grow over time. The downside is that you may not have enough money together when a disaster happens. Insurance can be the difference between successfully recovering from an event and changing your life forever. If you would like to discuss your insurance needs, call us. i https://fsc. org. au/resources/2537-fsc-australias-life-underinsurance-gap-research-report-2022/file page 18 ii https://www. ricewarner. com/life-insurance-adequacy/iii https://www. ato. gov. au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates iv https://www. smartraveller. gov. au/before-you-go/the-basics/insurance v https://www. investopedia. com/terms/s/selfinsurance. asp --- ### Understanding the new $3m super tax - Published: 2024-03-12 - Modified: 2024-03-12 - URL: https://wealthinvestors.com.au/insights/understanding-the-new-3m-super-tax/ - Categories: Insights The much debated tax on superannuation balances over $3 million is inching closer and those who may be affected should ensure they have considered the implications. Although it is not yet law, the Division 296 tax should be taken into account when it comes to investment strategy and planning, particular in relation to any end-of-financial-year (EOFY) contributions into super. Tax for higher account balances The new tax follows a Federal Government announcement it intended to reduce the tax concessions provided to super fund members with account balances exceeding $3 million. The draft Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 was introduced to Parliament on 30 November 2023. i The legislation has been referred to the Senate Economics Legislation Committee, with its report due on 19 April 2024. Once it passes through Parliament and receives Royal Asset, Division 296 will take effect from 1 July 2025. Who Division 296 applies to Division 296 legislation imposes an additional 15 per cent tax (on top of the existing 15 per cent) on investment earnings of a super account where your total super balance (TSB) exceeds $3 million at the end of the financial year. ii The extra 15 per cent is only applied to the amount that exceeds $3 million. When law, Division 296 will represent a significant change to the super rules, particularly for fund members with significant account balances. Given the complexity of the new rules, it will be important to seek professional advice so you can make informed decisions about your super and wealth creation strategies in coming years. How the new rules work A crucial part of the new legislation is the Adjusted Total Super Balance (ATSB), which determines whether you sit above or below the $3 million threshold. When assessing your ATSB, the ATO will consider the market value of assets regardless of whether or not this value has been realised, creating a significant impact if your super fund holds property or speculative assets. The legislation also introduces a new formula for calculating your ATSB for Division 296 purposes. The legislation outlines how deemed earnings will be apportioned and taxed, based on the amount of your account balance over the $3 million threshold. Negative earnings in a year where your balance is greater than $3 million may be carried forward to a future financial year to reduce Division 296 liabilities at that time. If you are liable for Division 296 tax, you can choose to pay the liability personally or request payment from your super fund. Strategic rethink may be needed For many fund members, superannuation remains an attractive investment strategy due to its favourable tax treatment. iii But those with higher account balances need to understand the potential effect of the Division 296 tax and check their investment strategies offer the best possible outcomes. For example, you may need to consider whether high-growth assets should automatically be held inside super given the new rules. Holding long-term investments that may be more difficult to liquidate, such as property, within super may be less attractive in some cases, because the new rules create the potential to be taxed on a gain that is never realised. This could occur where the value of an asset increases during a financial year but drops in value by the time it is actually sold. For some, holding large commercial property assets (such as your business premises) within your SMSF may be less attractive. Reconsider your investment vehicles If you are likely to be affected by Division 296, an important issue will be to review the most tax-effective investment structures in which to hold assets. Super has been the clear winner in the past but, once the new rules are in place, other vehicles such as companies or discretionary trusts may also be useful options. It will also be important to balance asset protection against tax effectiveness. For some people, the asset protection provided by the super system may outweigh the tax benefits of other investment vehicles, such as a family trust. Division 296 will require more frequent and detailed asset valuations, so you will need to balance this administrative burden with the tax benefits provided by super. Estate planning implications Your estate planning and the succession plan for your SMSF will also need to be revisited once Division 296 is law. The tax rules for super death benefits are complex and will need to be carefully reviewed to ensure you don’t leave an unnecessary tax bill for your beneficiaries. If you still have many years to go before retirement and decide to hold high-growth assets in your fund, you will need to closely monitor your super balance. If you want to learn more about how Division 296 tax could affect your super savings, contact our office today. Quick ways to grow your super If your super balance is under $3 million, you will be unaffected by Division 296 and the current concessional tax rates continue to apply. For most people, super remains the most attractive place to save for retirement and making additional contributions prior to EOFY is a sensible idea. Options to consider include: Take advantage of any concessional cap amounts you have not used since 2018-19 to make a carry-forward contribution, if your total super balance is less than $500,000 at June 30 of the previous year Make a personal tax-deductible contribution to give your account a boost and provide a tax deduction Make a personal (non-concessional) after-tax contribution Make a larger non-concessional contribution using a bring-forward arrangement Talk to your employer and put in place a salary sacrifice arrangement to make pre-tax contributions Make a contribution for your spouse (provided they are under age 75), which may also give you a tax offset of up to $540 Consider a downsizer contribution of $300,000 if you are aged 55 and over and plan to sell your current home. Most contributions have eligibility criteria and annual caps you must not exceed, so talk to us before you make any contributions. i https://www. aph. gov. au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result? bId=r7133 ii https://treasury. gov. au/sites/default/files/2023-09/c2023-443986-em. pdf iii https://www. ato. gov. au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/understanding-concessional-and-non-concessional-contributions Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Market movements & review video - March 2024 - Published: 2024-03-05 - Modified: 2024-03-05 - URL: https://wealthinvestors.com.au/insights/market-movements-review-video-march-2024/ - Categories: Insights Stay up to date with what's happened in markets and the Australian economy over the past month. The economic indicators for February were mixed. Inflation has remained at a two-year low, giving confidence of a possible rate cut in coming months, and business capital investment rose in the December quarter. However, the Australian dollar remained in the doldrums and retail figures from January remained weak, after a 2. 1% loss in December. Please get in touch if you’d like assistance with your personal financial situation. Click to view March Market & Economic review video --- ### What insurance do you need when buying a house? - Published: 2024-02-27 - Modified: 2024-02-27 - URL: https://wealthinvestors.com.au/insights/what-insurance-do-you-need-when-buying-a-house/ - Categories: Insights When getting ready to buy property, there are many things to keep track of as settlement approaches. An important consideration is what you will need in terms of insurance – admittedly not the most exciting part of buying a new home, but one which can save you money and stress in the future. Why lenders often require insurance While not a legal requirement, insurance is often required by lenders, and they may want to see your policy before either the exchange of contracts or ahead of the settlement. As the lender has a stake in the property during the life of the loan, they will want to know should the property be damaged or destroyed, if any large insurance claims are made, and if your insurance lapses. Types of insurance There are various forms of insurance relating to your property, these include: Home or building insurance – to protect you against damage to the property (such as due to an extreme weather event like fire or floods). Contents insurance – to safeguard you against theft or accidental damage to your belongings. Lenders Mortgage Insurance (LMI) – to cover the lender should you default on your repayments (note: LMI is a one-off payment by the buyer, not the lender). Landlord insurance – to protect your property if you are renting it out. Mortgage protection insurance – to cover your mortgage payments in case you or your partner become unemployed, seriously ill or die. Home and contents insurance Home and contents insurance, is often what buyers think of when it comes to getting insurance. There are two main types of home insurance: sum-insured cover (which means the insurer will pay for repairs or a rebuild up to an estimated amount you specify in your policy) and total replacement cover (which means you will be covered for your home to be repaired or rebuilt as it was without you having to set a specific sum-insured limit). Total replacement cover is more expensive and not all lenders offer it, so keep that in mind. As for contents insurance, you tend to be covered for the replacement value of your belongings. According to statistics from Finder in January 2023, 60% of survey respondents have some form of home insurance policy. An interesting finding was that only 43% of respondents with home insurance said that they fully understood their home insurance policy. While 48% said they partially understood it, 8% didn’t understand the benefits and inclusion of their policy. It's important to know what you are covered for, such as which type of event. Home and contents insurance don’t cover everything, so check the exclusions – these might be a house left unoccupied that is then damaged, doing renovations, any existing damage and damage caused by pets. You can usually request additional insurance, for example, covering high value items such as expensive jewellery or fixing that hole in the wall, so it’s worth checking what is included in your policy and whether it’s worth paying extra. Do you need insurance before settlement? As mentioned above, some lenders will ask to see proof of insurance before any contracts are exchanged. In some instances, the lender will ask that your insurance is effective from the date you sign the contract or before the loan becomes conditional. Depending on which state or territory you live in, you may be responsible for damage to the property as soon as contracts are exchanged. Here is a list on each area’s requirements: ACT, TAS & SA – the buyer is responsible for damage to the property as soon as contracts are exchanged. NSW & VIC – the buyer is responsible for damage to the property on settlement. QLD – the buyer is responsible for damage to the property from 5. 00pm the next business day after the contract date (before settlement). WA & NT – the buyer is responsible for damage to the property on whichever comes first: either the date the whole purchase price is paid, or the date the buyer is entitled to or is given possession of the property. i https://www. finder. com. au/home-insurance-statistics --- ### Securing your passwords online - Published: 2024-02-20 - Modified: 2024-02-20 - URL: https://wealthinvestors.com.au/insights/securing-your-passwords-online/ - Categories: Insights We spend a lot of time online and don’t often think about the risks involved. Yet if we are not careful, we can make ourselves vulnerable to criminal activity such as hacking, phishing, and identity theft. The annual Cyber Threat Report announced in 2023 a 23% year-on-year increase in cybercrimes in Australia, amounting to a cybercrime reported every six minutes. i And according to the recent Cybercrime in Australia report also published in 2023, 47% of survey respondents experienced at least one cybercrime that year, with half of all victims experiencing more than one instance. ii One of the simplest ways to protect yourself online is to ensure you have secure login credentials and to update your passwords regularly. So, if you haven’t updated your passwords for some time, below are some tips to ensuring stay secure online. Stronger password security Vary your passwords The most common vulnerability is passwords. We have passwords for many things we do online, protecting our bank accounts, inboxes, and social media accounts to name just a few. With the need for so many passwords, it’s easy to see why we often become complacent and choose the same one for multiple accounts. A 2019 Google/Harris Poll study found that 52% of respondents use the same password for multiple accounts and 13% reuse the same password for all their accounts. iii Not only does this put your accounts at risk of being compromised, using the same password can lead to hackers utilising your credentials as a way of identifying as you. Get creative It’s no surprise that the most common passwords are 123456 and admin– they are easy to remember, however they are also easy for anyone to guess. iv Choose a password that’s at least 12 characters long with a mix of uppercase and lowercase letters, numbers, and symbols. Some sites will need you to do this when you sign up, and it is good practice even when not required. Avoid using easily guessed information like birthdays, names, or common words (such as user or password). Password management Remembering your passwords, especially those which are a unique combination of letters and numbers, can be tricky. Use a centralised password management system to record passwords. There are many to choose from so look out for ones that are encrypted with a strong algorithm to prevent hacking. Use 2-step verification Another way to strengthen online security is to use 2-step verification. This adds additional security by asking you for further details, such as a number sent to you as a text message or email, or using an authenticator application to verify your identity when you log-in. More ways to keep safe online Using anti-virus software is wise as it’s designed to provide protection against the latest viruses and other types of malware. It updates automatically so you don’t need to worry as much about having to be on top of the latest cyber threats. It’s also worthwhile backing up any important data. Not all our interactions online are protected, so be sure to use secure networks and be careful about public Wi-Fi, such as the one you might use in a café, airport, or library. Public Wi-Fi is convenient, however if you are using websites that aren’t encrypted, this information is at risk. Look out for the lock symbol near your browser’s location field and check that the site address starts with ‘https’ rather than ‘http’ to be on the safe side. Lastly, it’s the simplest solution but one that bears mentioning – keep your personal information private. Don’t share your log-in information unless absolutely necessary and don’t display your passwords somewhere that’s easy to find (such as a label on your phone or laptop). These preventative measures can help you stay safe online and away from the risks of cybercrime. Common passwords in Australia 1. Banned — 2 minutes to crack 2. 123456 — less than a second to crack 3. Admin — less than a second to crack 4. password — less than a second to crack 5. qwerty123 — less than a second to crack 6. 12qwasZX — less than a second to crack 7. Starwars29 — 3 seconds to crack 8. welcome11 — 2 seconds to crack i https://www. minister. defence. gov. au/media-releases/2023-11-15/release-annual-cyber-threat-report-2022-23ii https://www. aic. gov. au/publications/sr/sr43iii https://services. google. com/fh/files/blogs/google_security_infographic. pdfiv https://nordpass. com/most-common-passwords-list/ --- ### Investing mistakes to avoid - Published: 2024-02-13 - Modified: 2024-02-13 - URL: https://wealthinvestors.com.au/insights/investing-mistakes-to-avoid/ - Categories: Insights Investing successfully and improving your investment portfolio can be as much about minimising mistakes as trying to pick the ‘next big thing’. It’s all about taking a calm and considered approach and not blindly following trends or hot tips. Let's delve into some of the most prevalent investment mistakes and look at the principles that underpin a robust and successful portfolio. Chasing hot and trending shares Every so often there are industries or shares that are all over the media and you may begin to worry that you are missing out on something. Jumping on every trend is like trying to catch a wave; you might ride it for a bit, but you're bound to wipe out sooner or later. That’s because the hot tips and ‘buy now’ rumours often don’t pass the fundamentals of investing test. The key is to keep a cool head and remember that the real winners are often the ones playing the long game. Not knowing your ‘why’ What would you like your investment portfolio to achieve? Understanding your motivations and goals will help you to choose investments that work best for you. If you want to build wealth for a comfortable retirement, say 20 to 30 years down the track, you can afford to invest in riskier investments to play the long-term game. If you have already retired and plan to rely on income from your portfolio, then your focus will be on investments that provide consistent dividends and less on capital growth. Timing the market Timing the market involves buying and selling shares based on expected price movements but at best, you can only ever make an educated guess and then get lucky. At worst, you will fail. As the world-renowned investor Peter Lynch wrote in his book Learn to Earn: “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves”. i Putting all the eggs in one basket This is one of the classic concepts of investing but it’s worth repeating because, unless you are regularly reviewing your portfolio, you may be breaking the rule. Diversifying your portfolio allows you to spread the risk when one particular share or market is performing badly. Diversification can include different countries (such as adding international shares to your portfolio), other financial instruments (bonds, currency, real estate investment trusts, exchange traded funds), and industry sectors (ensuring a spread across various sectors such as healthcare, retail, energy, information technology). Avoiding asset allocation While diversification is key, how do you achieve it? The answer is by setting an asset allocation plan in place and reviewing it regularly. How much exposure do you want to diversify into defensive and growth assets? Within them, how much should be invested in the underlying asset classes such as domestic shares, international shares, property, cash, fixed interest and alternatives. Making emotional investment decisions The financial markets are volatile and that often leads investors to make decisions that in hindsight seem irrational. During the COVID-19 pandemic, on 23 March 2020 the ASX 200 was 35 per cent below its 20 February 2020 peak. ii By May 2021, the ASX 200 crossed the 20 February 2020 peak. Many investors may have made an emotional decision to sell out during the falling market in March 2020 but then would have missed the some of the uplift in the following months in. Seeking out quality and trustworthy financial advice can help to minimise investment mistakes. Give us a call if you would like to discuss options for growing your portfolio. i From the Archives: Fear of Crashing, Peter Lynch - From the Archives: Fear of Crashing - Worth ii Australian Securities Markets through the COVID-19 Pandemic - Australian Securities Markets through the COVID-19 Pandemic | Bulletin – March 2022 | RBA --- ### Tax changes – what it will mean to me - Published: 2024-02-06 - Modified: 2024-02-06 - URL: https://wealthinvestors.com.au/insights/tax-changes-what-it-will-mean-to-me/ - Categories: Insights Prime Minister Anthony Albanese has announced proposed changes to address ongoing cost of living pressures with all 13. 6 million Australian taxpayers receiving a tax cut from 1 July 2024, compared to the tax they paid in 2023-24. i Now is the time to assess what it means to your hip pocket and what implications it may have for end of financial year planning as a result of the new rules, due from 1 July 2024. The Federal Government has recently announced changes to the third stage of a series of tax reforms introduced by the previous Coalition government almost six years ago which were designed to deliver tax cuts to most, simplify the tax system and protect middle income earners from tax bracket creep. The proposed changes The new rules will see the current lowest tax rate reduced from 19 per cent to 16 per cent and the 32. 5 per cent marginal tax rate reduced to 30 per cent for individuals earning between $45,001 and $135,000. The current 37 per cent marginal tax rate will be retained for those earning between $135,001 and $190,000, while the existing 45 per cent rate will now apply to income earners with taxable incomes exceeding $190,000. In addition, the low-income threshold for Medicare levy purposes will be increased for the current financial year (2023-24). A single taxpayer with a taxable income of $190,000 paid $59,967 tax in 2023-24. Under the revised rules, they will now pay $55,438 tax, a tax cut of $4,529. While still a reduction in tax paid, this compares with the $7,575 tax cut received if the original Stage 3 tax cuts had proceeded. On the other hand, low-income earners will receive a bigger tax cut under the revised rules. A single taxpayer with a taxable income of $40,000 who paid $4,367 in tax in 2023‑24, would have received no benefit from the original Stage 3 tax plan, but will now receive a tax cut of $654 under the revised rules. Implications for investment strategies For high-income earners, the key take-away from the government’s new changes to the tax rules is you will now receive a lower amount of after-tax income than you may have been expecting from 1 July 2024. This reduction makes it sensible to revisit any investment strategies you had planned to take advantage from your larger tax cut to ensure they still stack up. For example, the smaller tax cut for some may impact the effectiveness of property investment. Investment strategies such as negative gearing into property or shares, however, may become more attractive. Particularly for investors close to the new tax thresholds and looking for opportunities to avoid moving onto a higher tax rate. Timing expenditure and contributions Investors considering repairs or maintenance for an existing investment property should revisit when these activities are undertaken. Depending on your circumstances, this expenditure may be more suitable in the current financial year given the difference in tax rates starting 1 July 2024. Selling an asset liable for CGT also needs to be reviewed to determine the most appropriate financial year for the best tax outcome. Other investment strategies that may need to be revisited include those involving making contributions into your super account. If you are considering bringing forward tax-deductible personal super contributions, making carry-forward concessional contributions, or salary sacrificing additional amounts before 30 June, you should seek advice to ensure the timing of your strategy still makes sense. If you would like help with reviewing your investment strategies or superannuation contributions in light of the new rules, contact us today. i https://treasury. gov. au/sites/default/files/2024-01/tax-cuts-government-fact-sheet. pdf --- ### Riding the AI wave to make your life easier - Published: 2024-01-30 - Modified: 2024-01-30 - URL: https://wealthinvestors.com.au/insights/riding-the-ai-wave-to-make-your-life-easier/ - Categories: Insights During a period where technological developments have picked up speed, one innovation in particular wields a profound, broad-reaching impact on our lives. That innovation is Artificial Intelligence (AI). Developments in computing power, the availability of data, and the rise of machine learning algorithms are driving AI’s incredible growth to transform the way we work, live, and deal with the world around us. AI is not just changing the way we deal with the world, but also changing the world. It is anticipated that AI will boost the global economy by $15. 7 trillion by 2030. i That’s more than the value of China and India’s economies combined. AI will drive this growth by contributing to labour productivity increases (by up to 40 %) due to new technologies supporting more efficient workplaces and the creation of a new virtual workforce capable of solving problems and self-learning. These changes have profound implications for labour markets, businesses, and economies. Driving innovation As anyone who has received personalised product recommendations, which have clearly been based on your browsing and purchase history, retail and ecommerce are the most obvious sectors benefitting from AI, but there are many other sectors that are utilising AI in unique ways. AI is already assisting the manufacturing sector by optimising production and maintenance. AI can spot patterns and suggest preventative maintenance weeks or months before a failure occurs and provide efficiencies in the production process. The healthcare industry is also starting to use AI to improve medical diagnosis by revealing issues that might go undetected by physicians and provide more personalised treatment based on patient data. How you can use AI to make your life easier While AI is being used in many ways by a wide range of industries, there are many ways to utilise AI In your personal and professional life that are worth exploring. Improve productivity If you need more hours in the day, AI task schedulers can help you organise and prioritise tasks, suggesting the best times to do certain tasks based on past productivity patterns. AI tools like Wordtune can also help if you’ve got reading to catch up on by providing a summary of lengthy documents or articles. Tools like Speechify can also transform text into audio, allowing you to ‘read’ on the go. Or to get your emails under control, AI can help you sort messages, remove irrelevant ones, and prioritise those that are important - even helping you with draft responses. Elevate your efforts Got a problem to solve or do you need some inspiration for a project? AI brainstorming tools like HyperWrite can provide fresh insights, suggest innovative solutions, and stimulate your creativity. Writing tools like WordTune can give the final polish to something you have drafted, or you can use AI tools to provide copy on a specific topic. For a smoother, safer household AI assistants such as Google Assistant, Siri and Alexa have been helping us for some time now and can now assist even more by acting as the hub of a smart home if you start to replace old appliances with new ‘smart’ devices you can control using voice commands. The most popular device on the market is smart speakers to control what music is playing and volume levels, but more smart devices are coming onto the market all the time. Smart robot vacuum cleaners use algorithms to map your house and can be pre- programmed so you can come home to a clean house and even fridges are getting smarter, helping you with shopping lists and even placing online orders! And for a safe smart home, security systems can leverage AI to detect unusual activity, send alerts to your phone and even contact authorities if needed. Smart devices can also save money on power bills - adjusting lighting and temperature based on your daily routines and preferences. There are many ways you can benefit from the current AI wave of innovation as it impacts so many industry sectors and areas of our working and personal lives. As it’s a wave that’s growing in momentum, it’s worth using some artificial intelligence to supplement yours! i https://www. dailymail. co. uk/sciencetech/article-12064229/How-AI-changed-world-2030-according-experts. html --- ### Investors making a comeback - Published: 2024-01-23 - Modified: 2024-01-23 - URL: https://wealthinvestors.com.au/insights/investors-making-a-comeback/ - Categories: Insights During the past couple of years property investors have been less active as interest rate rises began eating into their profits. However, as 2024 begins, it’s clear more investors are returning to the real estate market. According to the ABS lending indicators report for October, new loan commitments for investors increased by 5% in one month, up 12. 1% over the year. i As market conditions slowly improve, vacancy rates remain extremely tight, and interest rates tipped to fall later this year, some savvy individuals are jumping back in before a new investor wave rolls around. However, before diving straight in there are some simple steps needed to test the waters first. Before launching into a real estate investment, whether it’s your first or the next in your portfolio, be sure to figure out your property purpose. Are you seeking long-term capital growth or an immediate cash flow? Understanding your goals will help shape a successful investment strategy and will help guide your decision-making. Capital growth versus positive cash flow If it’s a steady passive income you’re after, a property with positive cash flow may be the right path. On the other hand, if you're focused on long-term wealth accumulation, an investment with the possibility for substantial capital growth could be more suitable. The two don’t have to be mutually exclusive either, it can be possible to have both at the same time. Deciding which strategy would work best for your personal financial circumstances is crucial and planning should start well before the house hunting does. By creating a detailed budget, you can ensure your investment aligns with any future income expectations. Crunch the numbers to find out what the personal pros and cons could be for either strategy. Those investors prioritising capital growth may need to accept a negative cash flow in the short term with the expectation of substantial profits one day upon resale. Those taking the direction of positive cash flow may have to ride with rental market fluctuations and be prepared to pay income tax on their earnings. Understand the positive versus the negative Positive gearing occurs when rental income exceeds expenses, resulting in a profitable cash flow that is taxable income. On the flip side, negative gearing is when expenses such as home loan interest, maintenance, and council rates exceed any rental income leading to a tax deduction. Setting up your investment to fit either scenario should be part of your forward planning. Understanding the ‘for’ and ‘against’ of each option is vital when deciding how to structure your investment portfolio. Therefore, it makes great financial sense to seek the advice of a professional who can provide valuable insights tailored to your specific situation. Get to know the risks Every investor has a different level of risk tolerance. It's essential to assess your comfort level with certain financial risks before investing in real estate. Consider factors such as market volatility, rental vacancies - and the most recent challenge of interest rate fluctuations. Anyone with a low risk tolerance may want to lean towards those investments with a lower risk profile possibly meaning smaller returns but greater stability. Alternatively, if you're comfortable with more risk, then explore properties with the potential for higher returns. Do the homework on values and hidden costs Thoroughly research the rental market in your desired location to estimate sale prices and the potential rental income. Then research where you believe local property prices and demand (by both tenants and future buyers) are headed so you’ll be able to get an idea of long-term capital growth. Additionally, determine what your mortgage repayments will be while working in a buffer for any more interest rate movements and periods when the property could be sitting vacant. Carefully consider letting and property management fees, any strata costs, insurances, council rates, maintenance expenses, renovation budgets, as well as any other potential ongoing charges. If you feel you’re ready to take the next step towards property investing, seek professional advice from your mortgage broker today. i https://www. abs. gov. au/statistics/economy/finance/lending-indicators/latest-release --- ### 2023 Year in Review - Published: 2024-01-16 - Modified: 2024-01-16 - URL: https://wealthinvestors.com.au/insights/2023-year-in-review/ - Categories: Insights Australia’s economy stubbornly defied predictions during 2023, dashing any hopes that we might begin to return to some kind of normal. Some had expected an end to the Reserve Bank’s continued cash rate rises during the year. Instead, inflation has been a stubborn foe and we saw five rate rises, adding another 1. 25%. But there was good news for property investors with an increase in prices in some cities. On another positive note, superannuation funds bounced back after losses in 2022. i SuperRatings reported that the median balanced option is expected to return 9. 6% in 2023, after most funds produced negative returns the previous year. Australia key indices December Share markets (% change) Year to December 2022 2023 2022 2023 Economic growth 5. 8% *2. 1% Australia All Ordinaries -7. 2% 8. 4% RBA cash rate 3. 1% 4. 35% US S&P 500 -19. 3% 24. 2% Inflation (annual rate) 7. 8% ^5. 4% Euro Stoxx 50 -11. 7% 19. 2% Unemployment 3. 5% #3. 9% Shanghai Composite -15. 1% -3. 7% Consumer confidence 82. 5 82. 1 Japan Nikkei 225 -9. 3% 28. 2% *Year to September, ^September quarter # NovemberSources: RBA, ABS, Westpac Melbourne Institute, Trading Economics The big picture Global economic forecasts for 2023 were also beset by a number of wild cards during the year. While many economists were predicting recession in the United States and Europe and a rebound in China, the year ended differently with no recession in the US, Europe struggling but doing better than expected and China still battling some headwinds. October brought concerns of a wider Middle East conflict, the International Monetary Fund revising its outlooks for the region, saying that an escalation of the conflict could be far-reaching, affecting tourism, trade, and investment. ii Inflation and interest rates In Australia, economic growth slowed a little on 2022’s result but still delivered a better return than forecast. The economy grew by 2. 1% although a larger-than-expected increase in the population is putting extra pressure on housing and prices, keeping inflation higher. iii It was the eighth quarter in a row of economic growth. Inflation remains high but many believe we have seen the end of interest rate rises for 2024. The latest figures show the rate of inflation dropped from 4. 9% in October to 4. 3% in November. New dwelling prices rose 5. 5% in the 12 months to November while rents rose 7. 1%. Electricity prices were up by 10. 7% for the year and food and non-alcoholic beverages increased by 4. 6%. The Reserve Bank raised the cash rate five times to finish the year at 4. 35%. Sharemarkets Global sharemarkets ended 2023 on a more positive note. In the US, welcome news from the Federal Reserve of an end to rate hikes saw stocks and bonds soar in the final weeks of the year. During the year, the Dow Jones index increased by 13. 7% and the Nasdaq by 43. 4%. There was mixed news in Asian markets with a jump of 28. 2% on the Nikkei 225 and 18. 7% on India’s BSE Sensex but China’s Shanghai Compositive fell 3. 7% and the Straits Times index of Singapore was down 0. 3%. iv Australia’s sharemarket may not have experienced the heady double-digit returns of some global markets but it ended the year with a gain of almost 8%, marking its best performance since 2021. v Commodities Despite big falls from the peaks of 2022, commodity prices remain high across the board. Iron ore, Australia’s biggest export, rose more than 21% as the Chinese government continues to create strong demand by stimulating property and infrastructure development. Oil prices saw some spikes during the year but steadied by December. However, the World Bank notes that conflict in the Middle East, on top of the disruptions caused by the war in Ukraine, could cause a major oil price shock, pushing global commodity markets into uncharted waters. vi As the US dollar gathers strength and Australia’s high inflation figures persist, the Australian dollar is under pressure. It ended the year where it began after recovering from a slide in the second half of the year. Property market While rising interest rates usually dampen property prices, by year’s end we saw a remarkable turnaround for some cities in another result that upended forecasts. CoreLogic’s national Home Value Index rose 8. 1% in 2023, up from the 4. 9% drop in 2022 but not quite at the stellar 24. 5% increase recorded in 2021. vii It was a patchy performance across the country. House prices rose at more than 1% every month on average in Perth, Adelaide, and Brisbane in the second half of the year. While Melbourne values dropped in November and December, Sydney and Canberra prices barely moved, and Hobart and Darwin prices fell slightly. Looking ahead As floods and storms ravage the eastern states and bushfires break out in the west, another tumultuous Australian summer might be mirrored by a chaotic year for the economy both in Australia and overseas. The RBA expects economic growth to remain subdued but resilient in 2024, largely supported by construction and infrastructure work. Meanwhile the rebound in international students and tourism is expected to contribute to robust growth in consumer spending. viii The RBA is also confident that inflation will continue to fall slightly throughout the year, but many predict at least one more cash rate increase during the year. Worldwide, China’s spluttering economy and the outcome of the US presidential election may cause ripple effects across the globe, meanwhile markets will be nervously watching the conflicts in the Middle East and Ukraine as well as China’s threat to blockade Taiwan, for the potential to create broader economic challenges. Whatever the year ahead brings, we are here for you. If you would like to discuss your financial goals and circumstances in light of prevailing economic conditions, don't hesitate to get in touch. Note: all share market figures are live prices as at 31 December 2023 sourced from: https://tradingeconomics. com/stocks i https://www. afr. com/policy/tax-and-super/super-balances-grow-almost-10pc-thanks-to-tech-rally-20240103-p5euwbii https://www. imf. org/en/Blogs/Articles/2023/12/01/middle-east-conflict-risks-reshaping-the-regions-economies iii https://www. abs. gov. au/media-centre/media-releases/australian-economy-grew-02-cent-september-quarteriv https://www. businesstoday. in/markets/story/global-market-performance-heres-how-global-equity-markets-major-currencies-performed-in-2023-411391-2023-12-31 v https://www. abc. net. au/news/2023-12-29/asx-markets-business-live-news-dec29-2023/103271578vi October 2023 Commodity Markets Outlook: Under the Shadow of Geopolitical Risks - World | ReliefWeb vii https://www. corelogic. com. au/news-research/news/2023/australian-home-values-surge-in-2023viii https://www. rba. gov. au/speeches/2023/sp-ag-2023-11-13. html Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Out with the old in 2024... - Published: 2024-01-09 - Modified: 2024-01-09 - URL: https://wealthinvestors.com.au/insights/out-with-the-old-in-2024/ - Categories: Insights A New Year is a chance to start afresh and move into the year ahead with confidence and optimism that it’s going to be a great one! Part of setting yourself up for a wonderful year can sometimes be letting go things in your life that are not so beneficial for you and may be holding you back from living the life you want. “You must create space in your life to let new things in. Sometimes the things you're holding onto are the very things that are holding you back. " – Unknown Letting go of something that no longer serves you can be challenging at the time, but in doing so you are not just removing negative habits, thought patterns or physical things that you do not need any more, you are also opening your arms to new possibilities. Why do we hang on? It can be easier said than done to let go, though. We are all creatures of habit and tend to gravitate towards the ‘known’. We tend not to like letting go of the familiar to venture into the unknown, but just because things are comfortable or familiar does not mean they are working for you. As we move through life, we change and it’s common to find that some of our beliefs, habits, or existing goals, may not work for us anymore. If that’s sounding familiar it might be time to let go. Liberate yourself It can be tricky to identify what needs to go, but it’s important to trust your gut. Think about what you are hanging onto that is not serving you well any more – be that a goal that no longer suits where you now see your life going, a job you once enjoyed but that is now not making you happy, or a way of thinking or behaving that does not help you move your life in the direction you want it to take. Everyone is different, but with a bit of self-examination you can decide how to best lighten your load for the New Year. Breaking those bad habits We all have habits and behaviours we know are not serving us well as we move through life. You might recognise that you are prone to procrastination and it’s interfering with your ability to get things done. Making a conscious effort to address this and develop the discipline to work through a to-do list could be the best move you make to start the new year afresh. Or you might decide now is the time to address your spending habits and get on top of your finances – ditching the unnecessary purchases and being more mindful in your spending. Lightening the load If your emotional baggage is starting to feel like a literal weight on your shoulders, it is time to actively address some of these emotions and lighten the load. Be it past failures, or even previous successes, unresolved anger, hurt and regret, this baggage can weigh us down. Talking to a trusted friend or seeking professional help can help you identify what’s going on and unpack some of that baggage. Cutting through the clutter Of course, letting go might be more about your physical environment rather than your emotions and habits. It’s easy to accumulate ‘stuff’ but often harder to let it go. It can be a wonderful start to a brand-new year to go through your things and get rid of anything that is not serving a purpose, letting go things that are not useful or don’t give you joy. Letting go is a process not a destination, once you’ve made your decisions about how you intend to move into the New Year, make the commitment to create space in your life, allowing you to grow, achieve your goals and move forward with your life in a positive way. --- ### How will you use your super? - Published: 2023-12-22 - Modified: 2023-12-22 - URL: https://wealthinvestors.com.au/insights/how-will-you-use-your-super/ - Categories: Insights We spend decades watching our super balances grow but for those thinking about retirement in the next few years, it can be confusing to work out how best to use your super. Here are some of the considerations for the popular options. Easing into retirement You can keep working and receive regular payments from your super when you have reached your super preservation age (55 to 60, depending on your date of birth) and are under 65. Using a transition-to-retirement income stream allows you to reduce your working hours while maintaining your income. To take advantage of this option you must use a minimum 4 per cent and a maximum 10 per cent of your super account balance each financial year. A transition-to-retirement strategy is not for everyone, and the rules are complex. It is important to get independent financial advice to make sure it works for you. Pros Allows you to ease into retirement by working less but receiving the same income, using the transition-to-retirement income stream to top up your salary. If there is spare cash each week or month, you can make extra contributions to boost your super, perhaps by salary sacrifice if it suits you. There are tax benefits. If you are above 60, the transition-to-retirement pension payments are tax-free (although the earnings in the fund will continue to be taxed). Cons For people between 55 to 59, the taxable portion of the transition-to-retirement pension payments is taxed at your marginal tax rate, however you will receive a 15 per cent tax offset. Withdrawing money from super reduces the amount you have later for when you retire. It may affect Centrelink entitlements Taking a retirement pension This is the most common type of retirement income stream. It provides a regular income once you retire and you can take as much as you like as long as you don’t exceed the lifetime limit, known as the transfer balance cap. Pros While there is a minimum amount you must withdraw each year, there is no maximum. There is flexibility - you can receive pension payments weekly, fortnightly, monthly or even annually. You can still choose to return to work and it won’t affect income stream you have already commenced. Cons The account-based pension may affect your Centrelink entitlements There is a risk that the amount in your super to draw on might not last as long as you do The amount you can use for your pension is limited by the transfer balance cap. Withdrawing a lump sum You can choose to take your super as a lump sum or a combination of pension and lump sum payments, once you have met the working and age rules. Pros Gives you a chance to pay off any debts to help relieve any financial pressures. Allows you to make an investment outside super in a property, for example. Pay little or no tax if you are 60 and older. Cons If you are using the lump sum to invest, you may pay more tax Reducing your super balance now, means less for later Receiving a lot of money at once may encourage you to spend more than is wise Access to SMSF funds There are a number of additional issues to consider for those with self-managed super funds (SMSFs). For example, you will need to carefully check your Trust Deed for any rules or restrictions for accessing your super and consider how your fund can meet pension requirements if it holds large assets that are not cash, such as a property. It essential to consult a financial planner to understand your circumstances. The process of choosing the best approach for your retirement income can be daunting so let us walk you through the options and advise on the most appropriate strategies. Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### How to give back - Published: 2023-12-22 - Modified: 2023-12-22 - URL: https://wealthinvestors.com.au/insights/how-to-give-back/ - Categories: Insights Australia is a giving country, but we often give in kind rather than financially. Whenever there is a disaster here or overseas, Australians rush to donate their time, household goods and cash. However, we still lag other countries when it comes to giving money. According to Philanthropy Australia, our total financial giving as a percentage of Gross Domestic Product is just 0. 81 per cent, compared with 0. 96 per cent for the UK, 1 per cent for Canada, 1. 84 per cent for New Zealand and 2. 1 per cent for the US. i Currently the number of Australians making tax deductible contributions is at its lowest levels since the 1970s. ii Despite this, the Australian Tax Office reports that deductible donations claimed by individuals rose from $0. 74 billion in 1999-2000 to $3. 85 billion in 2019-20. iii Considering an estimated $2. 6 trillion will pass between generations over the next 20 years, the opportunities for increasing our financial giving abound. Philanthropy Australia wants to double structured giving from $2. 5 billion in 2020 to $5 billion by 2030. iv Many ways to give There are many ways of being philanthropic such as small one-off donations, regular small amounts to say, sponsor a child, donating to a crowd funding platform or joining a giving circle. For those with much larger sums to distribute, a structured giving plan can be one approach. Structured giving You can choose a number of ways to establish a structured giving plan including through a public or private ancillary fund (PAF), a private testamentary charitable trust or giving circles. Whichever way you choose, there are attractive tax incentives to encourage the practice. The type of vehicle will depend on: the timeframe of your giving the level of engagement you want whether you want to raise donations from the public whether you want to give in your lifetime or as a bequest whether you want to involve your family to create a family legacy. Private ancillary fund A private ancillary fund is a standalone charitable trust for business, families and individuals. It requires a corporate trustee and a specific investment strategy. Once you have donated, contributions are irrevocable and cannot be returned. To be tax deductible, the cause you are supporting must be a body identified as a Deductible Gift Recipient by the Australian Tax Office. The benefits of a PAF are that contributions are fully deductible, and the deductions can be spread over five years. The assets of the fund are exempt from income tax. The minimum initial contribution to a PAF is at least $20,000. The costs of setting up a PAF are minimal and ongoing costs are usually about 1-2 per cent of the value of the fund. Each year you must distribute 5 per cent of the net value of the fund to the designated charity. v Testamentary charitable trust An alternative to a PAF is a testamentary charitable trust, which usually comes into being after the death of the founder. The governing document is either a trust deed or the Will. With a testamentary charitable trust, trustees control all the governance, compliance, investment and giving strategies of the trust. The assets of the trust are income tax exempt. The minimum initial contribution for such a fund is usually $500,000 to $2 million. vi Philanthropy through structured giving still has a long way to go in Australia. The latest figures for total giving in Australia is $13. 1 billion, of which $2. 4 billion is structured giving. Currently the number of structured giving entities stands at just over 5400. vii As the baby boomers pass on their wealth to their families, there is a wide opening for some of this money to find their way into charities and causes through structured giving. If you want to know more about structured giving and what is the right vehicle for you to help the Australian community at large, then give us a call to discuss. i, iii https://www. philanthropy. org. au/wp-content/uploads/2022/11/7480-PHA-Giving-Trends-and-Opportunities-2023-1. 2. pdfii https://www. socialventures. com. au/sva-quarterly/insights-to-grow-philanthropic-giving-for-not-for-profits/iv https://www. philanthropy. org. au/our-impact/a-blueprint-to-grow-structured-giving/v, vi https://www. philanthropy. org. au/guidance-and-tools/ways-to-give/choosing-the-right-philanthropic-structure/vii A Blueprint to Grow Structured Giving 2021 - Philanthropy Australia --- ### Powering down for a relaxing holiday - Published: 2023-12-19 - Modified: 2023-12-19 - URL: https://wealthinvestors.com.au/insights/powering-down-for-a-relaxing-holiday/ - Categories: Insights It’s nice to enjoy a break over the summer months. In fact, it’s an Aussie tradition - that mass exodus after Boxing Day that sees us head off for some well-earned rest and relaxation. However, it can be hard to unwind when we have a device in our pocket buzzing away every couple of minutes. Even those who manage to resist taking work away with them and checking work emails while on holiday, can spend a lot of time on a digital device! And while you are glued to that device, chances are you are not ‘in the moment’ enjoying your time with family and friends fully or the delights of wherever you are vacationing. Digital addiction It’s not an overstatement to say that during our everyday lives we are glued to our devices. The average person spends around five and a half hours a day on their phone – that’s over two months over the course of a year! i We also tend to check our phones on average around 8 times an hour - almost once every 8 minutes. And just over half of Aussies (50. 65%) consider themselves addicted to their phones. ii Throw in the amount of time we spend on tablets, laptops and other devices and it’s clear we generally spend a lot of time in front of a screen. A vacationing trend A new trend that may help to curb our online addictions is known as a ‘digital detox’ holiday. Resorts and lifestyle destinations have got on board and many offer wellness packages offering a respite from the fast pace of online life with no phones, texts, emails, social media use or web browsing for the duration of your stay. You don’t have to fly off to an internet black spot or sign up for a digital detox retreat to get the benefits though. Doing your own digital detox can be as simple as switching your phone to airplane mode or better still turning your devices off for a designated time every day or for a period of time. Breaking free The benefits of getting away from a screen, even if it’s just for a short break, are numerous but the main benefit of having a proper digital detox is reducing stress. If your phone or tablet isn't buzzing, beeping or vibrating in your pocket or hand every few minutes, you start to breathe deeper and slow down. Another plus of having a break from your device is the way it can affect the quality of your interactions with others. If you are not staring at a screen you open up opportunities to engage more fully with those around you. That means better quality time connecting with friends and family. If you are a solo traveller, it can be challenging to not have the safety blanket of a phone in your hand, however there is something special about being more aware of your surroundings and taking in the little moments as they happen, without distractions. Open to offline discovery While tech can certainly make travel smoother in many ways, going phone free can open up opportunities for discovery. While it’s tempting to grab your phone to check the Google score of every restaurant you pass or using Maps to locate local attractions, it can be satisfying stumbling across a great little eating place tucked away down a laneway or finding a wonderful local market on your travels. And when it comes to sharing your discoveries, you could also try keeping it offline. Instead of snapping moments to share immediately on social media, knowing you are going to be constantly distracted checking how your posts are being received, try to treasure those moments as they happen. Whether you digitally detox for a few hours a day, a few days, or the duration of the holidays, your vacation will benefit from you unplugging for a bit. And who knows, you may even find some of your good digital detoxing habits follow you into the New Year. i, ii https://www. reviews. org/au/mobile/2022-mobile-phone-usage-statistics/ --- ### Financial wellbeing is a gift worth giving yourself - Published: 2023-12-12 - Modified: 2023-12-12 - URL: https://wealthinvestors.com.au/insights/financial-wellbeing-is-a-gift-worth-giving-yourself/ - Categories: Insights The festive season is a time of joy and celebration but, for some, it can also lead to a financial hangover in the New Year. Overspending on gifts, parties, and decorations can quickly add-up, leaving us with unwanted debt in the New Year. In 2022, Australians spent more than $66. 7 billion during the pre-Christmas sales in preparation for the festive season. The rising cost of goods and services mean that even though many are trying to curb their spending, it is expected that we will spend a little extra this year. 5 ways to rein in Christmas spending Create a Christmas budget - A budget is an effective way of controlling spending. It may not sound like fun, but it helps you to understand what you would like to spend and how much debt you are prepared to live with. List all of the costs you can think of (gifts, decorations, food, travel and entertainment), then set limits for each category and stick to them diligently. Consider using budgeting apps or spreadsheets to track your expenses and ensure you stay on track. Embrace the spirit of giving - Instead of buying individual gifts for every family member or friend, organise a Kris Kringle or Secret Santa gift exchange. This not only reduces the financial burden for everyone, but it adds an element of surprise and excitement to the holiday festivities. Take advantage of sales and discounts - Begin your Christmas shopping early to take advantage of sales and discounts. Stockpiling non-perishable food items and other essentials before prices rise closer to Christmas can deliver big savings. Online shopping - You can often find better prices by shopping around online and various third-party websites offer cash back or rewards not available in store. DIY and personalised gifts - Tap into your creativity by making your own gifts. Handmade gifts can be a welcome and thoughtful way of giving. Consider creating homemade cards, photo albums, or baking treats for loved ones. Tackle any debt now With many household budgets feeling the pinch due to rising housing, power, petrol and other costs, debts may already be increasing. But if you are feeling burdened with debt, don’t decide to leave it until after Christmas. The time to tackle it is now before it gets out of hand. One option to consider, is to consolidate your high interest debts into a single more manageable loan. This approach can simplify repayments and potentially reduce interest rates, making it easier to eliminate debt over time. But it is important to do your calculations carefully to make sure it is worthwhile for you and then to be vigilant about watching spending. Another option is to take a cold, hard look at your expenses. Is there something that can be cut back, and that money diverted to repaying debt? Any reduction of your debt load will help, no matter how small. Some people like to implement the snowball method in tackling their debts: while continuing to make the minimum repayments on all your debts you pay a little extra on the smallest debt to pay it off faster. Getting rid of debts can help to inspire you to continue. Taking control of Christmas spending and debt is crucial for starting the New Year on a positive financial note. So, start planning early, know what you can afford to spend and prioritise your financial wellbeing for a debt-free and stress-free holiday season. If you are struggling with post-Christmas debt or need assistance to manage your finances, we are here to help. Contact our team of financial experts today to discuss strategies to regain control of your financial future. Make this Christmas season a time of joy and financial empowerment. i Pre-Christmas spending forecast to tread water as uncertainty looms for discretionary retailers - Pre-Christmas spending forecast to tread water as uncertainty looms for discretionary retailers | Australian Retailers Association --- ### Market movements & review video - December 2023 - Published: 2023-12-05 - Modified: 2023-12-05 - URL: https://wealthinvestors.com.au/insights/market-movements-review-video-december-2023/ - Categories: Insights Stay up to date with what's happened in markets and the Australian economy over the past month. Consumer prices eased by more than expected in October. The news that inflation may have been tamed means interest rate rises may be behind us, for now. Even the Organization for Economic Cooperation and Development (OECD) is optimistic about our economic recovery, predicting rate cuts from late 2024. The ASX200 regained most of its October losses through November. Hopes the US may be ceasing its interest rate hikes impacted investor sentiment, as did the better than expected inflation figures locally. Please get in touch if you’d like assistance with your personal financial situation. Click to view December Market & Economic review video --- ### 3 easy ways to manage your money this festive season - Published: 2023-11-28 - Modified: 2023-11-28 - URL: https://wealthinvestors.com.au/insights/3-easy-ways-to-manage-your-money-this-festive-season/ - Categories: Insights Christmas is a time for giving and it’s so easy to get caught up in the joys of the festive season and lose track of how much you are spending. Fortunately, there are a few tried and true strategies to manage your money to see you through the silly season into the New Year and keep your savings goals in sight. A budget helps you manage your day-to-day expenses and should also have some allowance for your festive spending, while making sure it’s not at the expense of your long-term financial goals. One of the best ways to strengthen your willpower is to have a strong sense of what you are saving for. Whether it is saving for a home deposit so you can move into your own home, getting the loan down for the reno you’ve been planning, stashing money away for a rainy day or planning that trip to Paris, it’s important to have a clear idea of not just what you are saving for but what your end goal represents to you. Keep your eye on the prize and your emotional attachment to that prize – so you can manage your festive spending. Money in... money out Ok, so now we have established why you are budgeting let’s look at the how. One of the fundamentals of budgeting is looking at how much you have coming in, and how much you spend. The difference between these two figures will dictate whether you are heading into debt or socking it away. Then once you have a sense of what you are working with, it’s time to decide which approach you want to take to budgeting and there are a few tried and true methods you might want to consider. The envelope budget This budget method involves putting specific amounts of your money into envelopes (physically with cash which is known on known on TikTok as "cash stuffing", or electronically with an app or spreadsheet) for different budget categories. Once you have spent the funds in an envelope, you can no longer spend within that budget category until next month. If you have remaining funds at the end of the month you can roll over the funds into the next month’s envelopes or put the remaining funds into savings. Whether you separate your money into physical envelopes or online in separate bank accounts, dividing up your cash into categories encourages you to be more mindful of where your money is going, giving you the confidence of knowing exactly where you stand any point in time. This method will help you allocate funds for all your necessary expenses as well as the amount you allocate for your festive spending, keeping them separate so you don’t overspend. The 50/30/20 budget In the 50/30/20 budget, 50% of your net income should go to your needs, 30% should go to wants and 20% should go to your savings. Your needs are the things you can’t do without, (like rent and your bills), your wants are the more discretionary things you want to do like going out to celebrate the festive season with friends and buying gifts. If you stick to this plan, the final 20% of your income is dedicated to savings. This method ensures you don’t feel too deprived as you still have some cash to spend on enjoying yourself and the joys of the festive season, but it also helps to provide some discipline to save. Pay yourself first If you want to keep it really simple, try the “pay yourself first” method which involves transferring a pre-determined amount into savings at the beginning of the month. After you pay yourself, you should pay your bills, then use the rest however you please. This is a ‘no frills’ budget that’s easy to do and prioritises your savings ahead of any spending which is a good thing to do at a time of year when spending can get out of control. Whatever method you choose it’s important to take your budgeting beyond Christmas. It takes time to develop habits around money so make sure to commit to whatever method works best for you and keep your end goal in sight. It will be worth it! Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Spark up your life and others by being a connector - Published: 2023-11-21 - Modified: 2023-11-21 - URL: https://wealthinvestors.com.au/insights/spark-up-your-life-and-others-by-being-a-connector/ - Categories: Insights We all know them. The people who seem to know everyone and effortlessly make connections within their network. While it’s wonderful to know a ‘connector’, we can also develop those qualities and become a connector ourselves. Maxwell Gladwell coined the phrase in his book “The Tipping Point”, describing connectors as the social equivalent of a computer network hub, who "link us up with the world... people with a special gift for bringing the world together”. Their network is extensive – they tend to be acquainted with over 100 people across many social, professional, and economic circles, and they actively introduce those who move in different circles. The notion that a few influential people make the word go around is not new. In the 1960s, psychologist Stanley Milgram conducted “the small world” experiment, sending letters to 160 people in Nebraska with the details of a Boston stockbroker, instructing them to send the letter to someone who might get the letter one step closer to the stockbroker. Not only did most of the letters reach the stockbroker in six steps (rising to the six degrees of separation theory), just three people were responsible for half of the letters being successfully delivered. Those three, well-connected people would certainly be considered connectors. Why is connection important? The saying goes “no man is an island” and that’s never been truer. We live in a world that is growing ever more connected and isolation can be crippling. Our mental well-being and our physical health both benefit from being socially connected with others, while it can also help us achieve success in our endeavours. Just think about the last time you achieved a significant goal – whether it’s a personal achievement or a business milestone and it’s likely that at some point you drew upon the help of someone else or others. Ways to foster connections and benefit from them So, for those of us who make not be so socially inclined, what can we learn from those among us who forge strong connections and are responsible for the spread of ideas and making things happen and how can this help us in our careers, businesses and in our personal lives? Here are some tips that will help you to help others as well as make the most of any opportunities that come your way. Networking is quite distinct to connecting Whereas networking is often viewed as a means to an end, connecting is more altruistic - driven by a genuine interest in purposeful engagement to assist others. In your interactions, don’t just look to what is in it for you or even for mutual benefit - be the hub and actively seek out connections on behalf of others. Foster quality connections over quantity It’s easier to foster many connections, particularly via social media, but be conscious of the quality of those connections. To be able to purposefully connect with others in a way that offers real value, you need to engage with people. That takes time and genuine curiosity: ask questions, find out what makes them tick and then you can meaningfully assist them. Being open to different things One of the reasons connectors are so successful is they have contacts in diverse areas within many different communities, often through hobbies and interests. If you’d like to expand your network and horizons the first step might be to follow where your interests lead and explore your passions. Get out of your comfort zone To be a connector or get the benefit from connections you may have to move out of your comfort zone. That might mean putting yourself in a new environment, being willing to break the ice in a social situation or reach out when you don’t know what the response may be – and risk rejection or embarrassment. Connectors are not all extroverts and they come from all walks of life. You don’t have to be anyone other than yourself and in fact being authentic in your interactions will stand you in good stead. What steps are you going to take today to increase your connectability and benefit from the connectors you know? --- ### Returning to work after retirement - Published: 2023-11-14 - Modified: 2023-11-14 - URL: https://wealthinvestors.com.au/insights/returning-to-work-after-retirement/ - Categories: Insights Employers are desperate for workers and cost of living pressures are making it tough to live on a pension. That’s a perfect mix of conditions to send some retirees back to work. But it’s smart to get good advice before you take the leap. With unemployment rates at historic lows and employers facing a shortage of skilled workers, an increasing number of retirees are choosing to re-enter the workforce. According to recent data from the Australian Bureau of Statistics (ABS), approximately 45,000 more individuals aged over 65 are actively working compared with a year ago. i Some retirees may have been forced to return to work to financially support themselves. National Seniors research found 16 per cent of age pensioners re-entered the workforce after initially retiring, while another 20 per cent said they would consider returning to work. ii Declining superannuation returns combined with rising inflation and cost of living pressures may be some of the reasons why retirees could soon be returning to work. Things to consider Returning to work after retirement raises several important financial and logistical considerations for retirees including the effect on the Aged Pension and superannuation. If you receive an Aged Pension and are planning to return to work, you will need to let Centrelink know you are receiving additional income within 14 days. The extra income may mean that your pension is reduced if it exceeds Centrelink’s income threshold. It's essential for retirees to be aware of these thresholds and how their earnings may affect their pension to plan their finances effectively. Eligible age pensioners should also consider the Work Bonus incentive. This incentive encourages age pensioners to return to work with no or less impact on their age pension. Under the Work Bonus, the first $300 of fortnightly income from work is not assessed as income under the pension income test. Any unused amount of the Work Bonus will accumulate in a Work Bonus income bank, up to a maximum amount. The amount accumulated in the income bank can be used to offset future income from work that would otherwise be assessable under the pension income test. Effect on superannuation Returning to work after retirement can have implications for your superannuation, particularly if you're receiving a pension from your super fund. You can continue taking your pension from super, but you will still have to meet the minimum pension requirements. So, even though you may not need that pension income, you have to withdraw at least the minimum, which depends on your age and your super balance. This minimum pension rate is set by the government. Failing to meet these requirements can have tax implications and may affect your pension's tax-free status. You can convert your super pension phase back into the accumulation phase if you wish to stop taking the minimum pension. However, be aware of the tax differences. In the accumulation phase, any income and gains are taxed at 15 per cent whereas they are tax-free in the pension phase. Don’t forget that if you retain your pension account, then you will have to open a new super accumulation account to receive employer contributions because you cannot make contributions into a super pension account. Other investments If you have personal investments outside super and have been receiving a pension, your lower income may mean that you are not paying tax on any gains from them. But extra income from a job may mean you move up a tax bracket and any investment income and capital gains will then be assessed at the higher rate. Returning to work after retirement can have far-reaching implications on your finances, particularly with regard to your Aged Pension and superannuation. It's vital to carefully seek appropriate advice to ensure a smooth transition back into the workforce, allowing you to make informed decisions that align with your financial goals and overall well-being. If you would like to discuss your options, give us a call. i Retirees in demand as employers continue to face tight labour market - ABC News ii A working retirement – choosing to return to work - National Seniors Australia --- ### Aged care challenges in the home - Published: 2023-11-07 - Modified: 2023-11-07 - URL: https://wealthinvestors.com.au/insights/aged-care-challenges-in-the-home/ - Categories: Insights Aging at home with government-subsidised funding is made possible through the Home Care Packages program. However, a crackdown on what the funds can be used for and a shortage of support workers, can make it challenging to understand the funding available. If you are approved for a Home Care Package you will be assessed at one of four levels. These levels acknowledge the different types of care needed. Current annual funding for packages is $10,271. 10 for level one (someone with basic care needs); $18,063. 85 for level two (low care); $39,310. 50 for level three (intermediate care); and $59,593. 55 for level four (high care). i It can take up to six months for a Home Care Package to be assigned following the initial assessment. Once assigned, a provider must be chosen to design a package of aged care services that is best and most appropriate for you - within the home care package guidelines. Providers charge care and package management fees, which were recently capped at a combined 35 per cent of the package funds. Income tests apply The packages are income tested, with part pensioners paying no more than $6,543. 66 a year and self-funded retirees paying no more than $13,087. 39 a year in fees. Full pensioners do not pay an income tested fee. Older Australians can apply for a package directly, or through their GP, via the government’s My Age Care aged care gateway. Due to high demand for Home Care Packages, you may be offered a lower level package while you wait for the one you are approved for. You may also be given access to the entry level government support known as the Commonwealth Home Support Program – where individual referral codes are allocated to you to access interim support such as cleaning, transport or personal care at highly subsidised rates. A revised manual released earlier this year by the Department of Health clarifying what a Home Care Package can be used for is presenting additional challenges for some package recipients looking to maximise what they can get. ii Generally, a requested support or service must meet an individual’s “ageing related functional decline care needs”. The main categories of care and services you can get from a Home Care Package are services to keep you: well and independent (nursing, personal care, food), safe in your home (home maintenance, goods and equipment) and connected to your community (transport and social support). Exclusions and inclusions One area that is becoming more difficult for those with Home Care Packages is gardening – which is one of the most popular subsidised service requests. Once a regular prune and possibly some new planting was an approved service, but now only minor or light gardening services can be provided and only where the person was previously able to carry out the activity themselves but can no longer do so safely. For example: maintaining paths through a property or lawn mowing. Other exclusions causing angst amongst recipients are recliner chairs (unless they support a care recipient’s mobility, dexterity and functional care needs and goals); heating and cooling costs including installation and repairs; whitegoods and electrical appliances (except items designed specifically to assist with frailty, such as a tipping kettle). With an aging population it is no secret that there is a shortage of support workers. While there are government programs to try and fix this, a back-up plan is needed for when support workers call in sick or are unavailable and no replacement can be found. Most people’s preference is to remain living independently at home for as long as possible. If you would like to discuss your options to make this happen, give us a call. i https://www. myagedcare. gov. au/help-at-home/home-care-packages ii https://www. health. gov. au/sites/default/files/2023-04/home-care-packages-program-inclusions-and-exclusions-faqs-for-providers-version-1. pdf --- ### When enough is never enough - Published: 2023-10-31 - Modified: 2023-10-31 - URL: https://wealthinvestors.com.au/insights/when-enough-is-never-enough/ - Categories: Insights How much is enough? It’s a good question. Our relationship with our finances can be a tricky one. Everyone has a different idea of how much it takes to be comfortable or even well off. Given it is something that has such a strong influence on how we live our lives it’s unsurprising that money, or the pursuit of it, can develop into somewhat of an addiction. The million-dollar question is how do you know if you are developing an unhealthy relationship with money and what can you do if you, or someone you know, is heading down that path? The love of the dollar When John D. Rockefeller, who has been widely considered the wealthiest American in modern history, was asked how much money is enough, he famously stated: “Just a little bit more. ” It’s a common approach to money - that it's not possible to have too much of a good thing. However, we can become addicted to the act of growing our net wealth to the detriment of our daily lives. If you’re only interested in seeing your account balance go up, you might miss opportunities to put your money to work in other ways and enjoying what life has to offer. If you can relate to the words of Rockefeller, it might be time to do some self-examination and see whether your relationship with your finances could be healthier. Common feelings about acquiring money Competitive “Keeping up with the Joneses” is embedded in our culture. As a society, we’re constantly comparing ourselves to those who earn more or are wealthier than ourselves. The danger is there will always be someone better off than you (unless you are Rockefeller! ). Gratitude can serve as an antidote to competition, so try shifting your focus to what you have rather than what others possess. Of course, for many the focus is not outward but inward. The competition can be an internal struggle to meet and exceed continually shifting self-imposed financial objectives. If this is moving beyond a healthy drive for success, it might be time to celebrate your successes and focus more on enjoying your wealth. You are what you possess Compulsive saving can be a need to find self-worth, defining yourself by what you possess and accruing the trappings of wealth to feel whole. Recognising your self-worth goes beyond possessions and how much money you have in the bank is a key step in breaking the hold money may have over you. Fear of loss Being afraid of losses can keep you from making smart decisions with your money that could improve your financial situation. For example, you might be so fixated on accruing wealth and so afraid of losing money that you never invest. Having an appreciation of the relationship between risk and reward can help you make healthier decisions. Scarcity mindset An extreme focus on your financials can be driven by a fear of not having enough. The underlying cause of anxiety around money might be traced back to a time when you struggled. The key is to review your financial situation and let go the past to manage your finances in a way that is appropriate to your present circumstances. Breaking money habits That sounds easy but it can be difficult in practice. Whatever the driver of your approach to money, if you’ve been operating in a certain way for a long time, habits can be hard to break. If you've been saving furiously for a home deposit it can be hard to step out of the frugal behaviour, take a breather and feel Ok about spending money again. Alternatively, if you've spent a lifetime building your wealth to have a wonderful retirement it can be difficult to flick the switch from saving to spending - especially if you suddenly have no wages coming in. Recognise that old habits can be hard to break but that it is possible to change. One thing that can help is having a financial plan, so you know how you are tracking to meet your financial goals. That’s where talking to a third party who is not so emotionally involved can be of benefit. We are here to assist if you need assistance with any aspect of your financial life. --- ### Yours, mine & ours - estate and succession planning for modern families - Published: 2023-10-24 - Modified: 2023-10-24 - URL: https://wealthinvestors.com.au/insights/yours-mine-ours-estate-and-succession-planning-for-modern-families/ - Categories: Insights Navigating complex family relationships and blended families can be challenging at times and particularly when a family member dies. A good estate plan can help to make sure your wishes are carried out when you die. An estate plan, of which a will is the first and most important part, can ensure your estate is distributed in the way you want. It can also help if you become incapacitated, particularly when it includes an enduring power of attorney and a medical power of attorney that indicate who should be in charge of your affairs and any relevant instructions. Professional advice is vital in estate planning to make sure that you have considered all the issues, including tax matters, and that your loved ones are protected. It is also important to clearly communicate your wishes, particularly when there are complex issues involved, so that your wishes are clearly understood. Here are some of the issues to think about. Superannuation A binding death benefit nomination should be at the top of your list when you are considering the distribution of your superannuation funds. This makes certain that your super death benefit is paid to those you choose because without one, the trustee of your super fund will make their own decision. The nomination is usually valid for three years before it lapses and must be renewed. Blended families If you have been married more than once and/or have children with more than one partner, your will helps to effectively provide for those you choose. You may wish, for example, to ensure that your children receive the proceeds of your estate rather than your spouse or ex-spouse. Alternatively, you may need to ensure your will protects your current spouse from the claims of previous spouses. When it comes to the family home, the type of home ownership is important. If you have purchased as 'joint tenants', the entire asset will pass to the surviving spouse. On the other hand, if you have purchased as 'tenants in common', each spouse can distribute their share of the house to others. You may also wish to include a ‘life interest’ in the home so that your current spouse can continue to live in the home until their death before it ultimately passes to your other beneficiaries. Trusts Any existing family trusts should be reviewed with a blended family in mind. Check that the trust deed provides clear instructions for succession, if you want to ensure your children from past relationships are catered for. Your will can also establish new trusts, known as testamentary trusts, to provide for any dependents with disability, when you are worried that a child may waste or misuse your assets, or to allow for young children. A testamentary trust can also help to protect your adult child’s interests if they were to divorce a partner or are facing bankruptcy. Any inheritance they receive from you would become part of their property and can be considered in a divorce settlement or called on by creditors. Handing on a business If you are in business with partners, or would like to hand on the family business to one child but not others, a life insurance policy may be a useful strategy – sometimes known as estate equalisation – to even the distributions from your estate. In the case of a business partnership, you would name your partner or partners as beneficiaries of the life insurance policy, to effectively ‘buy you out’ of the business. Where it’s a family business due to be handed on to one child, your life insurance would go to your other children to match the value of the business. Note that it is crucial to continually review the value of the business and the value of the life insurance to ensure they remain current. Estate planning can be tricky and emotional, particularly when your circumstances are a little more complex. So, get in touch with us to ensure your estate plan meets your wishes and takes account of all the issues. Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### A positive property outlook for some - Published: 2023-10-17 - Modified: 2023-10-17 - URL: https://wealthinvestors.com.au/insights/a-positive-property-outlook-for-some/ - Categories: Insights Residential property investors have been on a wild ride in recent years as prices slumped during the pandemic then quickly skyrocketed before losing ground again. Now, with prices levelling out or slowly increasing, there is good news around the corner, according to some analysts. i A combination of positive indicators for housing could help to fuel further price rises. With a widespread view that the Reserve Bank’s interest rate increases are beginning to work to ease spending, some believe we may see the first rate cuts as early as next March. Add to that the increase in migration and the fall in new house construction, and residential property gains may follow. CBA Chief Economist Stephen Halmarick is forecasting a 7 per cent rise in house prices this year and another 5 per cent in 2024 claiming that, by this time next year, prices will return to “all-time record highs”. The sustained levels of high demand clashing with historically low levels of for-sale listings are also pushing prices up, according to the Property Investment Professionals of Australia (PIPA). ii In the meantime, some investors are doing it tough with rising interest rates and the end of fixed interest rate mortgages sometimes a contributing factor. The number of short-term property resales made at a loss has jumped, according to property analysts CoreLogic, from 2. 7 per cent a year ago to 9. 7 per cent in the June quarter this year. iii The median loss was $30,000, for houses sold within two years, compared to a median profit of $75,000. PIPA’s annual survey to gauge property investor sentiment found just over 12 per cent of investors sold at least one investment property in the past year. iv Less than a quarter of those houses sold went to other investors, continuing a trend that has been happening for several years. Almost half of those who sold said they were concerned about governments increasing or threatening to increase taxes, duties and levies. Where are rents headed? Will rents continue to rise or stabilise? Experts’ views are mixed about the short-term outlook for the rental market. The Reserve Bank says the continuing shortage of rental housing is likely to support ongoing increases in rents. The rents paid by new tenants provide a good indication of price movements in rental housing. Actual rents paid by new tenants increased by 14 per cent over the year to February 2023. Since the onset of the pandemic in 2020, rents paid by new tenants have increased by 24 per cent. vi But CoreLogic predicts a slowing in rental price growth next year, saying rents rose for the 35th month in a row in July but monthly growth has eased over the past four months. It says the expected drop in interest rates next year combined with softer income growth and stretched rental affordability will contribute to a slowing in rents. Build-to-rent growth Australia’s growing build-to-rent (BTR) market is getting a boost with tax concessions from governments eager to increase housing stock. BTR projects, common in Europe and North American, see landlords build a large-scale residential development intending to hold it for the long-term while renting the apartments for as long as three years with rent increases locked in. Rents are often slightly higher than market averages in return for better communal amenities such as roof gardens and gyms. Institutional investors, such as super funds, are also getting onboard with the projects, favouring the steady income stream. While Australia’s BTR market is mostly being driven by large developers and global players, smaller private investors are also getting in on the act. On the plus side, BTR offers regular income, often better returns and the chance to minimise expenses, not to mention the government tax concessions. On the downside, there is the possibility the concept might not take off in Australia and that vacancy rates may be higher. Meanwhile, the locked-in rental increases may not keep pace with rapid market changes. i https://www. abs. gov. au/statistics/economy/price-indexes-and-inflation/total-value-dwellings/latest-release ii, iv https://www. pipa. asn. au/wp-content/uploads/PIPA_Investor-Survey-Report_2023_Final. pdf iii https://www. corelogic. com. au/news-research/news/2023/short-term-loss-making-resales-on-the-rise v, vi https://www. rba. gov. au/publications/bulletin/2023/jun/new-insights-into-the-rental-market. html --- ### Market movements & review video - October 2023 - Published: 2023-10-10 - Modified: 2023-10-10 - URL: https://wealthinvestors.com.au/insights/market-movements-review-video-october-2023/ - Categories: Insights Household wealth has grown for the third quarter in a row, rising by 2. 6% in the June quarter, pushed up by rising house prices and increases in super balances. Please get in touch if you’d like assistance with your personal financial situation. Click to view October Market & Economic review video --- ### Destinations to fire up your passions - Published: 2023-10-03 - Modified: 2023-10-03 - URL: https://wealthinvestors.com.au/insights/destinations-to-fire-up-your-passions/ - Categories: Insights The world is an amazing place, with so much to see and do. In fact, sometimes it can feel as though there is so much to experience it can be quite a challenge selecting a destination, but if you follow your heart and explore your passions when planning a trip you can’t go wrong. Considering the plethora of amazing places and experiences our world has to offer, it’s a shame that many people, overwhelmed by choice, stick to going back to places they have visited before. In fact, a poll conducted in the US confirmed that three out of four people always go back to the same places. i If you are keen to avoid the ‘same old, same old’ but short on ideas, it can help to think not of where you want to go, but what you want to do. One travel trend that’s not going away any time soon is the desire for genuine experiences. Just look at Airbnb – in addition to being an accommodation platform it now offers a massive range of around 41,000 ‘experiences’ across 93 countries and more than 2000 cities. ii So, what do you look for when there is a big wide world out there with so much to see and do? Think about what you and your travelling companions love. If you have a ‘need for speed’ The Tour de France is known as the greatest race on Earth. The endurance needed to ride over 100kms a day for three weeks across some of the world’s most physically challenging terrain, is incredible. Every year spectators line the routes to be part of the atmosphere and it’s even possible to hop on a bike and experience some of the stages for yourself. If you prefer the roar of engines and the smell of burning rubber and high-octane fuel, maybe the Monaco Grand Prix is for you. With a course that is the most difficult on the F1 circuit winding through the streets of the city, it’s certainly a race like no other. Closer to home, another race like no other is the Alice Springs Camel Cup. The antics of the notoriously unpredictable dromedaries and their riders makes for a hilarious day out. If you want to marvel at our natural world The famous Bandhavgarh National Park in central India is a stunning wildlife destination where you have the best chance out of anywhere in the world to spot a wild Bengal Tiger. And if you want to stay in Australia, head to Ningaloo Reef in WA where you can snorkel with the gentle giants of the shark world – whale sharks, which can measure up to a massive 10 metres. If you’re an adrenaline junkie Get your pulse racing with white river rafting on the Colorado River, passing through the iconic Grand Canyon or fly down the fastest zip line in the world in Wales at an eye-watering 200 km/h. Or for an amazing local experience, walk along the harbour bridge in Sydney on one of the world’s longest bridge climbs and gaze out on an unparalleled view of the iconic harbour. If you like to sample fine wine For the wine buffs – not for nothing is Bordeaux, France is considered by many to be the world’s foremost region for wine. If you need to narrow the field a little further, the vineyards of Saint Emilion were the first to be listed as a UNESCO World Heritage Site. And Australia is no slouch in the wine stakes either, with the Baross Valley in SA widely considered Australia's preeminent wine region, famous for its Shiraz. If you were born to shop In terms of sheer variety and abundance of styles and shops, New York City is the shopping Mecca that dreams are made of. Or fossick for exotic treasure in Istanbul's Grand Bazaar, the world’s oldest and largest undercover market. On a smaller scale, but closer to home, Salamanca Market in Tasmania is a vibrant streetscape of the state's finest artisan products. With so many amazing experiences to be had, think about how you like to spend your time to come up with an itinerary that will tick all your boxes whether you want to race, explore, sip, or shop. i https://nypost. com/2022/09/20/americans-say-they-vacation-in-the-same-places-poll/ii https://tourpreneur. com/few-airbnb-experiences-generate-significant-revenue-according-to-the-latest-arival-research/ --- ### Small business risk and cyber security: Are you prepared? - Published: 2023-09-26 - Modified: 2023-09-26 - URL: https://wealthinvestors.com.au/insights/small-business-risk-and-cyber-security-are-you-prepared/ - Categories: Insights We’re all now only too aware of the risk of cybercrime after the well-publicised data hacks of Medibank Private and Optus. Although these crimes involved large organisations, email scams, cyberattacks and online scams also represent a major risk for small businesses, particularly if you don’t have the funds or knowhow to strengthen your digital security. Simple scams, big costs to business According to the government’s Australian Cyber Security Centre (ACSC), small businesses in particular are at increasing risk of cyberattack, with 43 per cent of all Australian cybercrime now targeting these entities. A cybercrime is reported every seven minutes on average. Cyberattacks often involve fairly straightforward scams. The ACSC highlights the example of a small construction business that received an email from a supplier saying they had changed banks and providing new account details. The construction firm didn’t call their supplier to check and twice paid an invoice for over $70,000. The supplier was unaware one of its email accounts had been hacked and was sending out fraudulent bank account details. No funds were recovered. New tools and training to counter threats To counter growing cyber risks, the government allocated funding to upskill small business owners and employees in the May Federal Budget. Run by the Council of Small Business Organisations of Australia, the new $23. 4 million Cyber Wardens program aims to build small business cyber resilience by training 60,000 non-technical employees. Cyber Wardens will help other employees prevent digital threats in a similar way to workplace safety officers. ACSA has revamped its Cyber Security for Small Business Guide and accompanying video. One of its key recommendations is for small businesses to create a cyber emergency plan and test it using the ACSC’s Exercise in a Box tool. The ATO is also emphasising the importance of business cyber security and has released a checklist of tips for businesses, such as turning on automatic updates. Covering your risk with cyber insurance Aside from the obvious inconvenience resulting from a cyberattack, small businesses also face other considerable risk exposures. There is a mandatory reporting obligation under the Notifiable Data Breaches scheme requiring a business to report data breaches to the government and its customers if the breach is likely to result in data being misused. The financial losses resulting from a cybercrime can also be considerable, making cyber insurance a worthwhile investment for many small businesses. These policies cover a wide range of cyber-related financial risks, including losses suffered by third parties (such as customers), cyber extortion, public relations expenses, system and business interruption expenses, and data breach notification costs. Cover for business continuity Expenses resulting from a cyberattack are not the only potential risks a small business can face, making appropriate insurance cover invaluable if the worst happens. While most small businesses have traditional business cover for building, contents, theft, commercial vehicle and general property, other business risks such as business interruption are often overlooked. Management liability insurance protects the company and the people managing it against the risks and exposures of running the business, such as allegations of misconduct or legislative breaches. It can also be worth considering key person insurance to compensate your business for financial losses arising from the death or extended incapacity of an important staff member. The lump sum payout can be used to offset costs such as recruiting a successor, or losses such as a decreased ability to transact business in the event of losing a key person. Public liability insurance covers you and your employees for potential liabilities to third parties if your product or service cause bodily injury or property damage, while professional indemnity protects against liability for damages and legal costs arising from claims due to acts or omissions. In a constantly evolving risk landscape, taking proactive steps within your business can work to reduce the likelihood of a cyberattack or limit damage should the unfortunate occur. Source: Australian Cyber Security Centre --- ### How the Aussie dollar moves your investments - Published: 2023-09-19 - Modified: 2023-09-19 - URL: https://wealthinvestors.com.au/insights/how-the-aussie-dollar-moves-your-investments/ - Categories: Insights It has been a wild ride for the Australian dollar since the Covid-19 pandemic struck and that could mean good news or bad news for your investment portfolio. In March 2020 the Aussie dipped below US58 cents for the first time in a decade. Since then, a high of just over US77 cents in 2021 has been followed by a rollercoaster ride, mostly downhill. In October 2022 the dollar plummeted to US61. 9 cents, bounced its way back up to US71. 3 cents in February this year but by mid-August it had slipped to a nine-month low at under US64 cents. i Many analysts agree that further falls are on the cards with some even predicting the dollar could fall to as low as US40 cents within five years. ii What’s driving the dollar? Given any currency’s susceptibility to changing economic conditions both at home and overseas, the Aussie has had quite a bit to deal with lately. Rising interest rates can boost the Australian dollar by making us more attractive for foreign investors, providing our rates are rising ahead of the US and others. If foreign investors buy more Australian assets because they can get a bigger return on their investment, more money flows into Australia which increases demand for Australian dollars. And if investors hold more Australian assets than overseas ones, less money leaves the country, decreasing supply. So, increased demand and decreased supply see the Australian dollar rise. While the Reserve Bank of Australia (RBA) has increased rates by 4 per cent in Australia since May last year as it battles to get inflation under control, rates have also been rising in the US. The US Federal Reserve has undertaken its most aggressive rate-rising cycle in 40 years with rates now at a 22-year high and signs of further increases likely. This has put pressure on the Australian dollar, narrowing the difference between the US and Australian rates, meaning foreign investors will look for better returns elsewhere. Changing economic conditions The value of the Australian dollar is also affected by changes in economic conditions as well as rises and falls in other financial markets. For example, in August news that the unemployment rate had increased slightly and an easing in wage price growth led to speculation that the RBA would put a hold on rates, putting a dampener on the Aussie. Also affecting the dollar was a decline in US share markets in August, confirming the typical pattern of falls in the Australian dollar when prices in equity markets drop. Meanwhile, the performance of China’s economy plays a significant part in Australian dollar movements. China is currently battling soaring unemployment, particularly among young people, falling land prices and a housing crisis, among other ills. As Australia’s largest trading partner, both in terms of imports and exports, any slowdown in China means lower sales of our commodities and other goods and services and less investment in property and business. iii How the dollar affects us There are advantages and disadvantages of a falling Australian dollar. On the plus side, our exports will be more competitive because our customers will pay less for our goods and services compared with those produced overseas. Conversely, imported goods will be relatively more expensive. There could also be an increase in tourism – the cost of travel in Australia will be cheaper for those coming from overseas. Unfortunately, those planning an overseas trip will need to find a significantly greater pile of Australian dollars to pay for airfares, accommodation and shopping. For investors, it is a useful exercise to review the currency’s effect on your portfolio. For example, if you’re invested in Australian companies that rely on overseas earnings, look at how they handle their exposure to the currency risk. A lower dollar is good news for those with overseas operations and those that export goods. On the other hand, those that need to buy in components or products from overseas may suffer. In any case, have a chat to us to look at the best way forward in these uncertain times. i https://tradingeconomics. com/australia/currencyii https://www. news. com. au/finance/markets/australian-dollar/aussie-dollar-in-free-fall-amid-bloodbath/news-story/929165d65db4dc7d8a97bc7b27b5ab0diii https://www. aph. gov. au/about_parliament/parliamentary_departments/parliamentary_library/ Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Should I buy insurance through my super? - Published: 2023-09-05 - Modified: 2023-09-05 - URL: https://wealthinvestors.com.au/insights/should-i-buy-insurance-through-my-super/ - Categories: Insights While we all hope for good health, the reality is that some of us may struggle at times with sickness or injury. And that may affect your family’s financial wellbeing. Different types of life insurance or personal insurance can provide an income when you’re unable earn, or a lump sum to protect your loved ones if the worst happens. Insurance products such as life insurance and total and permanent disability (TPD) cover are available through your superannuation fund or directly through an insurance company. There are also other products not usually offered by super funds such as accidental death and injury insurance, and critical illness or trauma cover. Almost 10 million Australians have at least one type of insurance (life, TPD or income protection) provided through superannuation. i Check what your fund offers Super funds usually provide three types of personal insurance. These include: Life insurance or death cover provides a lump sum payment to your beneficiaries in the event of your death. Total and Permanent Disability (TPD) pays a lump sum if you become totally and permanently disabled because of illness or injury and it prevents you from working. Income Protection pays a regular income for an agreed period if you are unable to work because of illness or injury. While these insurance products can provide valuable protection, it's essential to be aware of circumstances where coverage might not apply. For example, super funds will cancel insurance on inactive super accounts that haven’t received contributions for at least 16 months. ii Some funds may also cancel insurance if your balance is too low, usually under $6000. Automatic insurance coverage will not be provided if you're a new super fund member aged under 25. Should you insure through super? Using your super fund to buy personal insurance has advantages and disadvantages so it’s a good idea to review how they might affect you. On the plus side Cost-effective: Insurance through super can be more cost-effective because the premiums are deducted from your super balance, reducing the impact on your day-to-day cash flow. Automatic inclusion: Many super funds automatically provide insurance cover without requiring medical checks or extensive paperwork. Tax benefits: Some contributions made to your super for insurance purposes may be tax-deductible, providing potential tax benefits. Think about possible downsides Limited flexibility: Super funds can only offer a standard set of insurance options, which may not fully align with your needs. Reduced retirement savings: Paying insurance premiums from your super balance means less money invested for your retirement, potentially impacting your final payout. Coverage gaps: Depending solely on your super fund's insurance might leave you with coverage gaps, as the default options may not cover all your unique circumstances. Possible tax issues: Be aware that some lump sum payments may be taxed at the highest marginal rate if the beneficiary isn’t your dependent. Don’t forget the life admin Whether you decide to buy insurance through your super fund or not, it is important to regularly review your insurance coverage to make sure they reflect your current life stage and to make sure you are not paying unnecessary premiums if you have more than one super fund. Insurance within super can be a valuable safety net, providing crucial financial support to you and your loved ones. Understanding the types of coverage offered, the pros and cons of insuring inside super and the need for regular reviews are essential steps to make the most of this benefit. If you would like to discuss your insurance options, give us a call. i The future of insurance through superannuation, Deloitte and ASFA, 2022 1051554 Insurance through superannuation. inddii Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019, No. 16, 2019 Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (legislation. gov. au) --- ### Harnessing the power of LinkedIn to build your personal brand - Published: 2023-08-29 - Modified: 2023-08-29 - URL: https://wealthinvestors.com.au/insights/harnessing-the-power-of-linkedin-to-build-your-personal-brand/ - Categories: Insights Linkedin is a powerful tool to help you establish and maintain your reputation and develop your career and business. So, if you either don’t yet have a presence on Linkedin or suspect you may not be getting the best out of the platform, we’ve got a few tips for you! Linkedin was created in 2003 as a way for professionals to network and has been around longer than many other social platforms including Facebook, Twitter, Snapchat, and Instagram. Its popularity is one reason why it’s a platform you need to have a presence on. It hosts more than 900 million professional profiles, which means nearly an unlimited supply of network connections and opportunities. i What are the benefits of Linkedin? Establish yourself as the knowledgeable professional you are. One way to think of Linkedin is your digital business card. Unlike a business card, you can say a lot more about who you are, your strengths, expertise and experience. Expand your network. Linkedin allows you to reap the benefits of engaging with others. It’s a critical tool for professional development and business development as you connect with those who could potentially benefit from what you offer. Learn and grow professionally. Given Linkedin’s professional focus, it’s a great tool to build your knowledge and keep you up to date with what is happening in your industry. It features business news and educational articles on various topics. With a bit of regular scrolling, it’s possible to do a lot of learning. How to master Linkedin Power up your profile – It’s important to have a complete and compelling profile. If you’ve signed up with good intentions at some point and never got around to completing your profile, you are doing yourself a disservice. Linkedin's internal search only ranks profiles that register as "complete," and these can get more than 20 times as many views as incomplete profiles. Here are some things to consider doing: Add a good-quality photo of yourself and a background image that reflects your personality and profession. Mention your industry and location in your headline. Include a summary of who you are, what you do, and what you have to offer. Include a call to action for people to contact you. Build keywords into your profile so that they will come up if people search for a particular skill set. Also consider customising your unique link address so you can be found easier. Describe your current position. Sharing samples of your work is a great way to demonstrate your skills and capabilities. Add your previous work history, education details, and at least four skills or areas of expertise And finally, when it comes to your profile and presence on Linkedin, there is nothing more powerful than an endorsement from a client or colleague. Be strategic about what you ask for and use on your profile to highlight your strengths and skills. Connecting with others – This is what Linkedin is all about so make the most of your existing connections. It can be challenging reaching out beyond those to people you don’t know, and the most successful approach is always going to be a personal message rather than the default ‘I’d like to add you to my connections’. Think about why you’d like to connect with them, whether you admire their achievements or work in the same industry sector. Linkedin also offers interest-based and professional groups, which can be a great place to connect with others. Engaging with others – This is a key component of leveraging Linkedin. If you are on Linkedin but do not engage with others, you are unlikely to generate many new connections. The beauty of social networks is they promote dialogue - so they enable you to demonstrate your expertise and position yourself without overtly ‘selling’ so you can have the conversations you would like to with the people you would like to talk to. Sharing valuable content - Through sharing articles or insights, you can establish yourself as a knowledgeable professional in your field. Think of what useful information for others would be and provide some commentary on content that you don’t generate or write. Whether you use Linkedin and/or other channels to build and strengthen existing client relationships and to find and help prospective clients, the principles are the same: focus on the other person and their needs, be yourself and build relationships one at a time. If you do this, you’ll reap the rewards! i https://news. Linkedin. com/about-us#Statistics --- ### Trusts and the new super tax rules - Published: 2023-08-22 - Modified: 2023-08-22 - URL: https://wealthinvestors.com.au/insights/trusts-and-the-new-super-tax-rules/ - Categories: Insights Ensuring you’ve structured your finances tax-effectively is always a concern, but with new tax rules for super on the horizon, many people with large balances are considering alternative vehicles to save for retirement. Unsurprisingly, this has sparked a renewed interest in an old favourite – trusts. Trusts have always been popular in Australia, with the government’s Tax Avoidance Taskforce (Trusts) estimating more than one million were in place in 2022. Separating ownership using a trust The popularity of trusts for business, investment and estate planning purposes is due to both their flexibility and inherent benefits, particularly when it comes to managing your tax affairs. At their heart, trusts are simply a formal relationship where a legal entity holds property or assets on behalf of another legal entity. This separation means the trustee legally owns the assets, but the beneficiaries of the trust (such as family members) receive the income flowing from the assets. A common example of a trust structure is a self managed super fund (SMSF), where the fund trustee is the legal owner of the fund’s assets, and the members receive investment returns earned on assets held within the SMSF trust. Which trust is best? There are many different types of trusts, with the appropriate structure depending on the financial goals you’re trying to achieve. For small businesses and families, the most common trust is a discretionary (or family) trust. These vehicles are very flexible and can be used with immediate and extended family members, family companies or even charities. In a discretionary trust, the trustee has absolute discretion on how both the income and capital of the trust are distributed to various beneficiaries. This gives the trustee a great deal of flexibility when it comes time to allocate income to family members paying different marginal tax rates. Advantages of a trust structure Discretionary trusts offer tax, asset protection, estate planning and property holding benefits. They can also assist with the accumulation of assets for younger generations within your family and provide opportunities for the discounting of capital gains. For small businesses and farming operations, a discretionary trust can be used to provide valuable asset protection. If your business goes bankrupt or a beneficiary is divorced, creditors will be unable to access assets or property held within the trust as it is the legal owner of the assets. Building wealth outside super With new tax rules for super fund balances over $3 million being introduced, trusts also provide a useful tool to consider for continued wealth accumulation. Unlike super funds, trusts don’t have annual contribution limits, restrictions on where you can invest or borrowing limits. Money can be added and removed from the trust as necessary, providing significant financial flexibility. Discretionary trusts can also be used with vulnerable beneficiaries who may make unwise spending decisions. The trustee can decide to provide a spendthrift child or a family member with a gambling addiction regular income, but not large capital sums. Holding ownership of assets within a trust is useful for estate management, as the assets will not be part of a deceased estate, avoiding the possibility of a Will being challenged. Trusts aren’t always the solution Although trust structures provide many benefits, there are also tax issues that need to be considered. For example, any trust income not distributed to beneficiaries is taxed at the top marginal rate. Distributions to minor children are taxed at higher rates and a trust is unable to allocate tax losses to beneficiaries, so they must remain within the trust and be carried forward. Trusts can be expensive to set up, administer and dissolve when they are no longer needed and the trustee’s actions are restricted by the terms of the trust deed. If a family dispute arises, running a trust can become difficult and making changes once it is established isn’t easy. If you would like to find out more about trusts and whether one is appropriate for your business or family, call us today. --- ### How to boost your super with a lump sum - Published: 2023-08-15 - Modified: 2023-08-15 - URL: https://wealthinvestors.com.au/insights/how-to-boost-your-super-with-a-lump-sum/ - Categories: Insights If you’re lucky enough to have received a windfall, perhaps an inheritance or a retrenchment payout, your first decision will be what to do with it. Assuming you have decided against a shopping splurge, finding the best place to invest a lump sum is all about the effect on your tax bill and how soon you will need access to the funds. For those interested in investing their lump sum for a longer term, superannuation is one approach because of its tax benefits. But be aware that, while super can be a tax-effective investment, there are limits on how much you can pay into your super without having to pay extra tax. These are known as contribution caps. Different types of contributions There are two types of super contributions you can make – concessional and non-concessional – and contribution caps apply to both. Concessional contributions are paid into super with pre-tax money, such as the compulsory contributions made by your employer. They are taxed at a rate of 15 per cent. Non-concessional or after-tax contributions are paid into super with income that has already been taxed. These contributions are not taxed. So, the tax you pay depends on whether: the contribution was made before or after you paid tax on it you exceed the contribution caps you are a high income earner (If your income and concessional contributions total more than $250,000 in a financial year, you may have to pay an extra 15 per cent tax on some or all of your super contributions. ) Investing after-tax income There are many different types of after-tax contributions that can be made to your super including contributions your spouse may make to your fund, contributions from your after-tax income, an inheritance, a redundancy payout or the proceeds of a property sale. Based on current rules, the annual limit for non-concessional or after-tax contributions is $110,000. You can also bring-forward two financial years’ worth of non-concessional contributions and contribute $330,000 at once but then you can’t make any further non-concessional contributions for two financial years. Note that are certain limitation on these types of contributions. It is also useful to note that, under certain conditions, there are some types of contributions that do not count towards your cap. These include: personal injury payments, downsizer contributions from the proceeds of selling your home and the re-contribution of COVID-19 early release super amounts. The Downsizer scheme allows the contribution of up to $300,000 from the proceeds of the sale (or part sale) from your home. You will need to be above age 55 but there is no upper age limit, the home must be in Australia, have been owned by you or your spouse for at least 10 years, the disposal must be exempt or partially exempt from capital gains tax and you have not previously used a downsizer contribution. Giving your super a boost A review of your super balance and some quick calculations about your projected retirement income might inspire you to give your super a boost but not everyone has access to a lump sum to invest. A strategy that uses smaller amounts could include any amount from your take-home pay. These contributions will count towards your non-concessional or after-tax cap. Alternatively, you add to your super from your pre-tax income using, for example, salary sacrifice. These types of concessional or pre-tax contributions attract a different contribution cap: $27,500 per year, which includes all contributions made by your employer. If your super fund balance is less than $500,000, your limit may be higher if you did not use the full amount of your cap in earlier years. You can check your cap at ATO online services in your myGov account. The rules for super contributions can be complex so give us a call to discuss how best to maximise your benefits while avoiding any mistakes. --- ### Market movements & review video - August 2023 - Published: 2023-08-08 - Modified: 2023-08-08 - URL: https://wealthinvestors.com.au/insights/market-movements-review-video-august-2023/ - Categories: Insights While the price of most goods and services continues to rise, the good news is the rate of increase is continuing to slow. As a result, the markets are beginning to breathe a sigh of relief. The ASX rallied to close the month on a positive note due to a combination of stronger than expected growth data, better than expected earnings and lower inflation. Please get in touch if you’d like assistance with your personal financial situation. Click to view August Market & Economic review video --- ### How iron ore plays a big part in our economy - Published: 2023-08-01 - Modified: 2023-08-01 - URL: https://wealthinvestors.com.au/insights/how-iron-ore-plays-a-big-part-in-our-economy/ - Categories: Insights Iron ore has been the backbone of the Australian economy and many investment portfolios for much of the 21st century. In 1921, iron ore accounted for 68 per cent of Australia’s export revenue. This was the year that iron ore prices peaked at almost $US230 a tonne. i However, its growth as an export icon really took off with the first shipment of iron ore from the Pilbara in Western Australia in 1966. Today there are three major companies that mine iron ore in Australia - BHP, Rio Tinto and Fortescue Minerals. Considered blue chip stocks, they are often favourites with investors and their share price performance is linked to iron ore prices. Iron ore’s importance worldwide stems from its use in steel, a key material used in infrastructure, housing and manufacturing equipment globally. ii China’s role The main recipient of Australia’s iron ore is China. In 2022 China bought 1. 1 million tonnes of iron ore, 65 per cent of which came from Australia. iii While demand is still high in China, Covid put a dampener on its economic growth. Its strict measures did not start to roll back until December 2022 and investors began to worry. While economic activity is slowly resuming, it has reduced significantly from its heady days. As a result, demand for iron ore has also fallen. This has seen the price of iron ore drop to around the $US100 a tonne mark from its $US230 million peak in 2021. Although China’s economy is not performing as energetically as it did a decade ago, recent moves to boost domestic demand are causing some optimism among market watchers, although there are still bears around who are more circumspect. Global demand The rest of the world is wrestling with recession and that too has put a dampener on the market. Added to this slowdown in demand are moves to increase supply by Australia’s major producers and Brazil’s Vale Mining. iv Luckily, iron ore is relatively cheap to produce in Australia at around $US30 a tonne, which shelters the miners somewhat from price fluctuations. While Rio Tinto and BHP can remain profitable with prices dropping as low as $US60, lower prices will have a flow on effect, impacting superannuation balances, investor returns and the broader economy. v Impact on the economy Unfortunately, lower profits mean significantly lower tax revenue and that in turn will affect the Australian economy. While profits are still boosting the government’s coffers, the outlook is less bright. Tax revenue from iron ore has made a significant contribution to our economy and has been a key reason for the recent federal budget surplus after 15 years of deficits. Nevertheless, the domestic economy is still expected to slow as high inflation and global challenges make their mark. Budget papers estimate that a $US10 per tonne increase in the Commonwealth’s assumed price for iron ore exports is expected to result in an increase in tax receipts of around $500 million in both 2023-24 and 2024-25. vi But the federal government is still cautious about the economic outlook for Australia and are forecasting a return to a budget deficit and the possibility of a recession as the move to higher interest rates puts brakes on the economy. vii Aside from economic performance, any reduction in revenue for the mining companies will also translate into lower dividends and lower price growth for investors. But despite some bearish sentiment in the market including the growing number of institutional and individual investors steering clear of mining stocks over ethical and environmental concerns, there is no denying that iron ore is still a big money spinner. If you would like to discuss options for investment in the current economic climate, then give us a call. i https://minerals. org. au/resources/record-high-for-resources-export-revenue/ii https://www. mining-technology. com/features/timeline-australian-iron-ore-at-a100bn/iii https://edition. cnn. com/2023/05/05/economy/australia-china-exports-record-intl-hnk/iv https://www. mining. com/iron-ore-price-expected-to-ease-over-next-5-years-on-slower-demand-growth-and-more-supply/. v https://www. abc. net. au/news/2023-05-30/australian-iron-ore-boom-ending-after-china-rift/102408002vi https://www. watoday. com. au/politics/western-australia/how-wa-s-resource-riches-helped-deliver-the-first-budget-surplus-in-15-years-20230509-p5d725. htmlvii https://www. reuters. com/markets/australia-eyes-bigger-budget-surplus-warns-economy-still-slowing-2023-06-28/ --- ### Homebuyer support to ring in the new financial year - Published: 2023-07-25 - Modified: 2023-07-25 - URL: https://wealthinvestors.com.au/insights/homebuyer-support-to-ring-in-the-new-financial-year/ - Categories: Insights The new financial year marks the opportunity to access a raft of support to help more people buy a home. Now is the perfect time to sort through all the national and state schemes and find the ones that are right for you. Three National Home Guarantee Schemes The National Home Guarantee Scheme (HGS) has expanded to help more groups that find it difficult to buy their own home. i All three offer a government guarantee of your below 20 per cent deposit loan which save the cost of Lenders Mortgage Insurance (LMI). No money changes hands but having a loan with a deposit of 5 per cent or even 2 per cent guaranteed by the government could help you get into the market sooner. Let’s take a brief look at what’s on offer. The First Home Buyer Guarantee (FHBG) supports up to 35,000 eligible first home buyers each financial year. You must have a minimum deposit of 5 per cent, while the maximum price and other conditions vary from state to state. The scheme now accepts joint applications from friends, siblings, and other family members and buyers who have previously owned a home may also be allowed to apply as long as their last ownership was at least 10 years ago. The Regional First Home Buyer Guarantee (RFHBG) is for eligible first home buyers in regional areas. There are 10,000 places available each financial year to 30 June 2025. Again, the maximum cost of the home and the applicant’s annual income varies state to state but a minimum 5 per cent deposit is needed wherever you are. The Family Home Guarantee (FHG) supports eligible single parents and single legal guardians with at least one dependent child. That now includes single aunts, uncles and grandparents caring for a child. The minimum deposit needed is just 2 per cent, with 5,000 places available each financial year to 30 June 2025. Again, there are limits on annual income and the cost of the home. One thing to keep in mind when looking at these schemes is that most, but not all, lenders will include the schemes when assessing your home loan application. It may save you valuable time and keep your banking record clean if you check with us before applying for any scheme or loan. State specific grants, stamp duty and shared equity schemes Regardless of where you are buying, you'll find that each state or territory has some form of support for first home buyers. Usually, these offer payments or discounts to first home buyers purchasing new properties, or house and land packages. These grants are not taxed and don’t have to be repaid, making them worth considering. Stamp duty is a huge up-front cost for buyers. All the states have a minimum price threshold before stamp duty is charged. They also offer one-off stamp duty concessions for first homebuyers paying below certain amounts. In some states, first homebuyers can also opt to pay a much smaller annual land tax instead of stamp duty. Shared equity schemes are also broadening the people who qualify. Shared equity is when the state government buys a portion of your home. This reduces your deposit, loan amount and repayments. In return, if and when you sell, they will take that percentage of the sale price. Shared equity is traditionally only offered to key workers. However, in some states, single parents and singles aged over 50 can also apply. ii First Home Super Savers Scheme Another scheme is the national First Home Super Savers Scheme. In this, you make contributions into your super fund to save for your first home. Depending on how many years you’re registered with the scheme, you can withdraw a maximum of $50,000, plus the calculated earnings from those investments. iii You find out how much you can access by asking for a FHSS determination, and then request a withdrawal when you sign the contract for your home. This takes a minimum of 20 days, so planning is crucial. Because it affects your super, it’s wise to get financial advice before you do it. While having more schemes to choose from provides options, sorting through your options can be complicated. The capped number on some offers means it’s best to get in touch with us sooner rather than later, so call us today. i https://www. nhfic. gov. au/support-buy-homeii https://www. firsthome. gov. au/iii https://www. ato. gov. au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/ --- ### Keeping cashflow positive - Published: 2023-07-18 - Modified: 2023-07-18 - URL: https://wealthinvestors.com.au/insights/keeping-cashflow-positive/ - Categories: Insights Managing a healthy cash flow is often tough for small businesses and it is particularly the case right now in the challenging economic conditions. In this climate, recent changes to rules and regulations may both help and hinder cash flow. Here are some to keep an eye on. Minimum wage rise The Fair Work Commission’s recent increase to the national minimum wage will add costs for some employers. The 5. 75 per cent increase must be paid to employees who are not covered by an award or registered agreement. The new minimum wage of $882. 80 per week or $23. 23 per hour must be paid from 1 July 2023. i Changes to employee super The Superannuation Guarantee – the amount that employers must pay to their workers’ super funds – has increased again from 1 July 2023. You now need to pay 11 per cent of an employee’s ordinary time earnings. This amount will increase by 0. 5 per cent in 2024 and a further 0. 5 in 2025 bringing it to 12 per cent. ii Payment of the superannuation guarantee payments to your employees should be made at least four times a year. The payments must be made in full by the quarterly due dates, which are 28 days after the end of each financial quarter However, some employers – often those with cashflow issues - have been dragging the chain on payments. As a result, billions of dollars in super are owing. The Australian Taxation Office says that, in 2019-2020, $3. 4 billion in employees’ super went unpaid. iii The solution will potentially have a big effect on small business cashflow. From 1 July 2026, employees’ super must be paid at the same time they receive their wages. The federal government is calling it ‘payday super’ and Treasurer Jim Chalmers says more frequent super payments will make payroll management smoother and employers will have fewer liabilities building up. And to strengthen the system, the ATO will receive extra funds to help it detect unpaid super payments earlier. New PAYG and GST instalment rates The Federal Budget delivered a potentially positive boost for small business cashflow with a change to the quarterly Pay As You Go (PAYG) and goods and services tax (GST) instalment payments. iv These payments are available to small businesses with an annual turnover of up $10 million for GST instalments and an annual turnover of up to $50 million for PAYG instalments. The ATO adjusts the amount each year depending on increases or decreases in Australia’s gross domestic product (GDP) in the previous year. That would have meant a 12 per cent increase to instalment payments because GDP has performed strongly in the last 12 months. But the government has decided to cut the increase to 6 per cent for this financial year. Instant write-offs In another bonus for cashflow management, the new rule for instant asset write off is good news if you are considering any big purchases this financial year. The instant asset write-off allows eligible businesses to claim an immediate deduction for the cost of assets including: tools, computers and office equipment, freestanding office furniture, and vehicles. Instant asset write-off can be used for any number of assets purchased for use during the year, if the cost of each individual asset is less than the threshold of $20,000. It can also be used for second-hand assets. However, there are some exclusions. These include some assets that are leased out, plants including grapevines, assets used in research and development activities, and capital works such as new buildings and structural improvements. Assets valued at $20,000 or more, which can’t be immediately deducted, can be depreciated at 15 per cent in the first income year and 30 per cent each income year after that. Get in touch with us for more information on the new rules and regulations or to help improve your cashflow management. i https://www. fairwork. gov. au/pay-and-wagesii Super guarantee percentage | Australian Taxation Office (ato. gov. au)iii Introducing payday super | Treasury Ministersiv Small Business Support – helping small business manage tax instalments and improve cashflow | Australian Taxation Office (ato. gov. au) --- ### Making conscious the unconscious for better decisions - Published: 2023-07-11 - Modified: 2023-07-11 - URL: https://wealthinvestors.com.au/insights/making-conscious-the-unconscious-for-better-decisions/ - Categories: Insights When you’re faced with a decision, do you trust your feelings or do you look at the situation objectively, making a careful list of pros and cons? Emotions exert a strong influence on our decisions, so it’s important to have a bit of balance between reason and emotion – particularly when it comes to the big decisions in life. The decisions we make have the potential to steer our lives in vastly different directions. Good decisions can profoundly improve our situation in life, while a poor decision can have unpleasant consequences. Examining how emotions influence your thoughts and actions can equip you to make well-grounded decisions, including those relating to your financial affairs. The influence of emotion Even if you think your decisions are based on logic and common sense, the reality is they are often steered by emotion. A study performed by Nobel Prize-winning psychologist Daniel Kahneman showed that emotions contribute around 90% to our decisions, while logic only factors in for around 10%. i Kahneman’s position was that human reason left to its own devices is subject to emotional biases, so if we want to make better decisions in our personal lives, we need to be aware of these biases. Awareness is key Given that emotions and unconscious bias can cloud our judgement, some self-examination can help ensure that you are making the best decisions. It’s been shown that people who could identify the emotions they were feeling were able to make better decisions, in part due to a greater ability to control any biases caused by those feelings. ii This is known as "making conscious the unconscious" and it involves examining your emotions and beliefs to so you can better understand their influence on you. The goal isn't to be emotionless - it’s important to ‘feel’. The key is to understand how your feelings are impacting your choices. A good example might be how feeling particularly confident may cause you to take on more risk associated with an investment than you would ordinarily be comfortable with. Hit ‘pause’ on reacting Once you’ve identified how you are feeling, it’s time to hit ‘pause’ for a moment. Decisions driven by the unconscious mind generally happen faster than those we think about. Not reacting immediately gives you a chance to observe any biases without being controlled by them, allowing for improved and more objective decision-making. Even taking a couple of deep breaths before responding to that email that’s made you angry will help you respond in a more rational way. Just think about how scammers use people’s tendency to react to fear, without thinking too much about what they are being asked to do. Recognise patterns Taking time to think also allows you to reflect on past decisions and the result of those decisions. For example, reflecting on past investment choices that were unduly influenced by a fear of missing out, can help individuals better manage future decisions. Your subconscious can cause you to cling to outdated views you hold of yourself - and these can drive poor decisions. A good example is people managing their wealth according to how they did things when they first started out, rather than adapting their behaviours to their changed financial circumstances. Get rational Once you have acknowledged the part that your subconscious and past patterns of behaviour play in decision making, it’s time to get rational. Rational decision-making involves taking emotion and any unconscious biases out of making decisions and applying logical steps to work towards a solution. The process involves a series of steps that generally encompass: identifying a problem or opportunity then gathering the relevant information, developing options, evaluating alternatives, then finally selecting a preferred alternative on the basis of the research you’ve done. It’s also a good idea to run important decisions by a third party who is not so emotionally involved. For your financial decisions that’s where we come in. While we respect and acknowledge how you feel in relation to your financial life, we can provide factual information and challenge any notions that no longer serve you, to help you make the best possible decisions regarding your finances. i https://www. jstor. org/stable/1914185 ii https://www. ncbi. nlm. nih. gov/pmc/articles/PMC2361392/ --- ### Managing the costs of raising children - Published: 2023-07-04 - Modified: 2023-07-04 - URL: https://wealthinvestors.com.au/insights/managing-the-costs-of-raising-children/ - Categories: Insights It is a special feeling to welcome a new child or grandchild into the world and watch them grow. Sharing their joy as they reach new milestones is priceless. Of course, there is a real cost – raising a child is expensive, particularly now as the cost-of-living spirals higher. Estimates vary widely from the few studies completed but it is fair to say that over a child’s lifetime families can spend hundreds of thousands of dollars on living, medical and schooling expenses for their children. So, having a financial strategy in place to cover the costs and taking advantage of government support where available can make a big difference. Taking care of the basics The first step is to update your Will to nominate guardians for your children in case the worst happens. You may also consider life insurance and income protection to ensure your family is protected. Next, a savings and investment plan will help you navigate the years ahead with more certainty. Adding small amounts of money regularly to an account for education and other expenses can help to ease financial stress. The MoneySmart savings goals calculator shows what can be achieved. You could consider fee-free high interest savings accounts or your mortgage offset account as a way to save cash for short-term needs. Meanwhile, some longer-term investments such as shares, exchange traded funds or listed investment companies may provide financial support for later expenses. They can offer the possibility of capital growth and diversification for a relatively low cost. Super splitting Keeping an eye on the future also means thinking about your superannuation. If one partner is staying at home to care for the children, the other partner can split their super contributions with them. You will need to check if your fund allows it, whether they charge a fee and complete some paperwork. There are also some tax considerations, so it is important to make sure you understand the implications for you. Government support Take the time to discover the government payments and supports available for families. For example, the Paid Parental Leave Scheme provides support for mothers for up to three months before the birth. A recent change to Parental Leave Pay and Dad and Partner Pay sees these two payments combine into one payment that is available to both parents for up to two years after the child’s birth. You will need to meet income and work tests and claim within certain timelines. Even if you are not eligible for parental leave pay, you may still be able to apply for both the Newborn Upfront Payment and the Newborn Supplement. Then there is the Family Tax Benefit, a two-part payment to help with the cost of raising children. To receive the benefit, you must have a dependent child or a full-time secondary student aged 16 to 19 who is not receiving any other payment or benefit such as a youth allowance, care for the child at least 35 per cent of the time and meet an income test. Grandparent gifting Grandparents who are keen to help out their families financially can gift money to their children or grandchildren. Be aware that Centrelink has gifting rules for those receiving an age pension. You can give $10,000 in one year or up to $30,000 over five years without your pension being affected. If you give more, the amount will be treated as though you had retained it in your own accounts. However, gifts and inheritances are generally not considered as income for tax purposes. The ATO says neither the donor nor the receiver will pay tax on a gift if: it is a transfer of money or property. the transfer is made voluntarily. the donor does not expect anything in return. the donor does not materially benefit. Tax may apply in some cases where property or shares are gifted. The joys of raising a little one are many, and having a plan to manage the financial implications can let you enjoy the journey. Get in touch with us to create a plan to secure your family’s future. --- ### Will these super changes affect you? - Published: 2023-06-27 - Modified: 2023-06-27 - URL: https://wealthinvestors.com.au/insights/will-these-super-changes-affect-you/ - Categories: Insights As our superannuation balances grow larger, it makes more sense than ever to keep track of the many rules changes that have recently happened or are coming up soon. Australians are investing more in super - almost $151 billion dollars in the year ending March 2023, an increase of 11. 3 per cent. i Those extra contributions, plus the rebound in the financial markets, have resulted in super assets of around $3. 5 trillion. ii And it is being put to good use. We took out lump sum payments totalling $53. 5 billion dollars during the 12 months and pension payments of $42. 3 billion. iii Quarterly rate of return Source: APRA Quarterly superannuation performance statistics highlights, March 2023 To keep your super on track for a comfortable retirement, check out these latest changes in case they affect you. Super bonus for workers For employees, the new financial year kicks off with an increase in the Superannuation Guarantee paid by employers. It is now 11 per cent of eligible wages. This rate will increase by 0. 5 per cent each year until it reaches 12 per cent in 2025. iv The Australian Tax Office will also be cracking down on employers who don’t pay on time or at all. From 1 July 2026, super must be paid at the same time as wages rather than at the end of each quarter. The recent Federal Budget also provided funds to help the ATO enforce super payments and recover unpaid amounts. Minimum pension drawdown increased A COVID-19 measure to reduce the minimum drawdown required on super pensions will end on 1 July 2023. Investors receiving super pensions and annuities must withdraw a minimum amount each year. The federal government reduced this amount by 50 per cent over the last four financial years to help those wanting to protect their capital as the markets recovered from the chaos of the pandemic. You can find out more by visiting the ATO’s minimum pension standards. Transfer balance cap to be lifted The maximum amount of capital that can be transferred to your super pension will increase to $1. 9 million from 1 July 2023. v The transfer balance cap limits the total amount of super that can be transferred into a tax-free pension account. This is a lifetime limit. The cap is indexed and began at $1. 6 million when it was introduced in 2017. Increases in the cap are tied to CPI movements. You can see your transfer balance account and cap information in your online ATO account. Extra tax for large balances Investors with super balances of $3 million or more will lose the benefit of super tax breaks on earnings. From 1 July 2025, taxes on future earnings will be 30 per cent instead of 15 per cent although they will continue to benefit from more generous tax breaks on earnings from the funds below the $3 million threshold. This change is expected to apply to around 80,000 people. Other recent changes A number of changes announced in both Federal Budgets last year have also been slowly introduced over the past 12 months. In one major change, the minimum age was lowered for those able to invest some of the proceeds of the sale of their homes into super, known as a ‘downsizer contribution’. From 1 January 2023, if you are aged 55 or older, you can now contribute to your super up to $300,000 (or $600,000 for a couple) from the sale of their home. The home must be in Australia and owned by you for at least 10 years. In another residential property initiative, a scheme that allows investors to use their super fund to save for their first home has been expanded. The First Home Super Saver Scheme was last year increased from $30,000 to $50,000. The Scheme allows you to make contributions into your super then apply to release them when you want to purchase your first home, provided you meet the eligibility requirements. Another significant reform for many has been the removal of the work test for those under 75, who can now make or receive personal super contributions and salary sacrificed contributions. (Although the ATO notes that you may still need to meet the work test to claim a personal super contribution deduction. ) Previously if you were under 75, you could only make or receive voluntary contributions to super if you worked at least 40 hours over a 30-day period. A further change introduced last year was the removal of the $450 per month threshold for super contributions. Employers must now pay the super guarantee to all employees regardless of their earnings however, employees who are under 18 still need to work more than 30 hours in a week to be eligible. While caps have been lifted and programs expanded, at least one scheme has not changed. The Low Income Super Tax Offset (LISTO) threshold remains at $37,000. LISTO is a government payment to super funds of up to $500 to help low-income earners save for retirement. If you earn $37,000 or less a year you may be eligible a LISTO payment. You don’t need to do anything other than to ensure your super fund has your tax file number. Finally, a project that may pay off down the track, the Federal Budget included continued funding for a superannuation consumer advocate to help improve investors’ outcomes. Expert advice is important to help navigate these changes over the coming year. Call us for more information. i, ii, iii https://www. apra. gov. au/news-and-publications/apra-releases-superannuation-statistics-for-march-2023 iv https://www. ato. gov. au/Business/Small-business-newsroom/Lodging-and-paying/The-super-guarantee-rate-is-increasing/ v https://www. ato. gov. au/Individuals/Super/Withdrawing-and-using-your-super/Transfer-balance-cap/ Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. --- ### Who needs a testamentary trust? - Published: 2023-06-20 - Modified: 2023-06-20 - URL: https://wealthinvestors.com.au/insights/who-needs-a-testamentary-trust/ - Categories: Insights The rising cost of living is grabbing all the attention right now as people struggle to pay the increasing prices. But in the meantime, our collective wealth has been growing steadily and is being transferred to the next generation at increasing rates. In fact, the value of inheritances as well as gifts to family and friends has doubled over the past two decades. i A 2021 Productivity Commission report found that $120 billion was passed on in 2018 and that amount is expected to grow fourfold between now and 2050. In 2018, the value of the average inheritance was $125,000 while gifts averaged $8000 each. So, there is a lot at stake and it means that estate planning – a strategy for dealing with your assets after you die – is vital to help fulfil your wishes and protect the interests of the people you care about. One powerful tool in planning your estate is a testamentary trust, which only comes into effect after your death. It operates in a similar way to a discretionary family trust and your Will acts as the trust deed, providing instructions for the trust. It allows you to control the distribution of your assets and provides a way of managing any tax implications for your beneficiaries. Testamentary trusts are often used to protect assets from unforeseen circumstances such as lawsuits, creditors and divorces and they can help to preserve a family’s wealth. A testamentary trust can be useful for those with blended family relationships and children with complex needs. For example, a child with a disability who is unable to manage their own investments can be supported by the use of a trust. Testamentary trusts may also help to provide some certainty for parents that their young children will be provided for. They are also often used by philanthropists as a way of providing a legacy for a cause they support. Choosing a trustee If you are setting up a testamentary trust, you will need to appoint one or more trustees who will manage administration and distributions. The trustee could be a family member (who may also be a beneficiary) or the role could be handed to an independent person or organisation. Trustees should understand the tax situation of each of the beneficiaries to ensure that the timing and amount of distributions don’t inadvertently cause difficulties for them. Trustees must also lodge a tax return every year and maintain trust accounts and records. As the ATO points out, for the trust to operate effectively, a high level of co-operation between family members may be important so that tax, financial and other information is shared. The pros and cons Whether or not you should set up a testamentary trust in your will depends on your own circumstances. The positives include: The ability to control the distribution of income The possibility of some tax advantages for your beneficiaries A level of protection for your assets from lawsuits, family breakdowns and business difficulties A way of keep a family’s wealth intact into the future Support for vulnerable beneficiaries such as those with special needs or lacking financial experience and minors Can be used by anyone with assets to distribute, whatever the size of their estate On the other hand, there are a number of considerations to be aware of such as: The complex paperwork and reporting required The cost to establish the trust and keep it running The possibility of disputes among beneficiaries or with the trustee over the future of the trust, distributions, and its administration Testamentary trusts are a valuable strategy to help ensure your wishes are followed. They can shape your legacy, provide fairly for your loved ones and protect assets. Call us if you would like to know more about establishing a testamentary trust and to see whether it is suitable for you. i https://apo. org. au/node/315436 Important: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. 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