Financial Autonomy

I received a question recently for my Ask an Expert column where the reader was comparing the annual income they received from their investment property, against the growth in the value of this superannuation fund. Their conclusion, looking at the numbers, was that they should sell the investment property and shift all the money to super. But their comparison was flawed on multiple levels. So in this week's podcast I thought I'd talk you through the differences across the main investment options to help you consider what the best path might be in your particular situation. [Website] [Disclaimer]

Investing is all about risk and reward. In endeavoring to build our wealth and gain choice in life, we take on risk with the expectation that we will be rewarded for taking on that degree of uncertainty. The Oxford Dictionary defines risk as the “possibility of something bad happening at some time in the future”. As investors that typically means a loss of our capital, either partially or in full. We think a lot about the potential rewards and the long-term outcomes that derive from the gains made by our investments, but this week I wanted to spend a little bit of time digging into some detail on the risk side of the equation. I've identified 8 different types of risk that are relevant for us investors. To be fair this list probably has more of a bias to stock market investors. I haven't included things like credit risk which would be relevant for bond investors, or risks that are unique to property investment. I'm hoping that as I go through these eight types of investment risk you mentally tick them off aga

The starting point is to consider why you might choose to be a business owner. Certainly it's not the right option for a lot of people. There's risk, extra stress, and a requirement for a broad skill set. A great analogy I think is comparing a decathlete at the Olympics to an athlete in a single pursuit. A decathlete isn't good enough to be a gold medalist in any one single event. But they are better than average across a whole variety of events such that when they combine their results they produce an impressive outcome. A business owner needs to be like a decathlete. They need to be able to understand marketing, the finances, people management, planning, pricing and operations. If you are the Usain Bolt of you are field, then chances are you're better off as an employee than a business owner. As an employee you can just focus on doing what you're good at, and let others worry about all the other cogs in the machine. Pursuing the business ownership path is best suited to the all-rounder. [Website] [Disclaime

Most of us, when we start investing, will buy Australian shares. We typically gravitate towards businesses that we recognize, perhaps one of the miners, a bank, or a retailer that we walk past at the local shopping centre. Before long we stumble across exchange traded funds, and most people tend to gradually invest more and more in these vehicles over time due to the lower level of mental energy required in making the investments, and their significantly lower level of volatility. Having a home country bias within portfolios is not something unique to Australia. Almost every country in the world sees the same thing. In some cases the portfolio bias can take on a degree of patriotism. My question though is whether as investors, aiming to grow our wealth and in so doing achieve the choice and flexibility that enables us to lead interesting lives, this bias makes sense? Or should we look overseas to international shares? [Website] [Disclaimer]

Tax cuts are coming for anyone earning over $45,000 a year. For those earning between $120,000 and $200,000, the changes are particularly meaningful. This week I wanted to explore some strategy considerations you might wish to think about in the lead up to these very significant changes. [Website] [Disclaimer]  

Given this week's episode is our first for the new year, I thought I'd take a look at the typical areas to focus on with reference to your stage of life. Now of course there's a wide range of normal, so feel free to adapt these thoughts to your own situation. Hopefully, they can help to give you some direction as you make your plans for an amazing 2024. [Website] [Disclaimer]

Recently I've had several planning discussions that centered around inheritances. Despite this common core, each discussion was very different. So in this week’s podcast I thought I'd share with you some of the things I'm seeing, and the discussions I'm having with clients. Perhaps they might help you in navigating this area, which can be challenging, with the emotional elements that are often a feature. [Website] [Disclaimer]

It's summer and hopefully you're kicking back somewhere, recharging the batteries with plenty of blue sky and sunshine. It's at times like these, perhaps strolling along the beach with our partner, nothing urgent to be done and plenty of time to think, that the thought might pop into our head “wouldn't it be great to spend more time here. I wonder what it costs to buy a holiday house?” Conveniently, real estate agents will have their windows brightly broadcasting all the various potentials to satisfy your desire. As a Financial Autonomy listener though, you are likely the prudent, perhaps even cautious, member of your little tribe, so perhaps your mind might turn to the factors that ought to be considered when contemplating a holiday home purchase. Over the years I've worked with many clients who purchased holiday houses, so this week I thought I'd share with you a few of my observations. [Website] [Disclaimer]

Today’s post is prompted by two separate discussions I had with new clients this week. In one case, there was a recent inheritance, in the other, the couple had recently paid off their mortgage. In both instances, multiple options existed. I heard about things like home renovations, private school for the kids, cutting back to four days a week, early retirement, buying an investment property, paying off an investment property, going on a big family holiday, topping up super. And on it went. The problem in both cases wasn't not having any goals, but rather, the opposite. Complete overwhelm with too many goals, too many options, and an inability to be able to decide which to pursue. So in this week's podcast, I thought I'd share how we overcome this very common problem. [Website] [Disclaimer]

This week we’re lucky enough to have Ana Kresina, co-hosts of the Get Rich Slow Club podcast. Ana is also the Head of Content and Community at investment app Pearler, and a parent of two small children. Today we are talking financial planning for parents and I’ve asked Ana to join me because she is the author of a book called Kids Ain’t Cheap: How to plan financially for parenthood and your family's future so she’s clearly well and truely across this topic. [Disclaimer] [Website]

This week’s podcast is inspired by a question I got for my Ask an Expert column in the Fairfax press. A reader asked whether it was worth adding extra money to super given the balance goes up and down. She can put $5000 in one day, only to see the balance drop by that amount the next, causing her to feel like those savings just got flushed down the toilet. There are several different elements that are important to get your head around in thinking about this question, and the word count limit in the newspaper makes giving a complete answer challenging. The podcast format however offers far more flexibility, so let's take a few minutes to dig into this question, something that I know other people have had go through their mind over the years, and dispel a few misunderstandings. [Website] [Disclaimer]

You've almost certainly heard of index investing, also sometimes called passive investing. Here investment portfolios are constructed to replicate I given a market. The weighting given to each individual stock is determined by the size of each company, its market capitalisation. So for instance in the Australian market, the largest allocation would be to BHP, then Commonwealth Bank, CSL, etc. The main alternative to index or passive investment is active investment. Here fund managers deploy various strategies in an effort to outperform the market average. Factor investing sits in between these two approaches. It's been around for a long time, with mixed results. ETF offerings adopting a factor investing methodology are expanding in the Australian market, so this is an investment approach that you are likely to hear more about. Let’s get you up to speed. [Website] [Disclaimer]

A cancer diagnosis (in the midst of COVID), a career change, and starting a new business. This week I speak with Suzanne Alexander from Mindful Finances about how she helps her clients and the challenging journey she’s been on to accumulate the wisdom she’s now able to impart. ‌[Website] [Disclaimer]

Owning your own home is the goal for most of us. The security that comes with owning the roof over your head is a massive stress relief. It’s also almost certainly a good financial move in the long run, as you accumulate wealth through the combination of capital appreciation in the value of your home, and progressively paying down the debt. The challenge typically though, is getting on that first rung of the ladder. Often there isn’t a huge difference between mortgage repayments and rental payments, so cash flow wise, the move to home ownership is doable. The barrier however is the deposit.   [Website] [Disclaimer]

This week on the podcast I’m joined by Kate Toon, entrepreneur and digital marketing guru. Regular listeners will know that there are 3 pathways to achieving Financial Autonomy - investing in shares, investing in property, and running a business.  This week's episode clearly fits into the running a business stream. Financial Autonomy is about having choices in life, and being your own boss can certainly enable that. But running a business is far from simple, which is why I’m very excited to chat with Kate, someone who has not only succeeded herself in building a sustainable business but also helped many others as well. You can find Kate's book here: www.katetoon.com [Website] [Disclaimer]

When does it make sense to move your superannuation savings into a Self Managed Super Fund? Is not shifting to an SMSF a wasted opportunity? Who should have a self-managed fund? This week we're going to get you answers to all these questions. So if you've ever wondered whether a Self Managed Super Fund is right for you, hopefully this week's episode we'll set you straight. [Website] [Disclaimer]

This week I’m excited to have Serina Bird join me on the podcast. You may have come across her podcast, The Joyful Frugalista. Serina is here to talk about her new book - How to Pay off your mortgage in 10 years. So if paying off your mortgage is on your to-do list, listen up for some great tips and insights. [Website] [Disclaimer]

Annuities are a product most people have heard of but don't know exactly what they are or when to use them. With interest rates returning to more normal levels, annuities are coming out of the deep freeze. So this week I thought I’d take you through the basics of annuities so you have an appreciation for where they might have a use in your financial plan. [Website] [Disclaimer]

This week we're talking with Bryan Mitchell on all things intergenerational wealth transfer, and looking particularly at the question of whether a gift or a loan is the best way to pass wealth on to the next generation whilst you are still alive. Structuring the transfer of wealth as a loan might provide some level of asset protection in the event of a future divorce, but Bryan explains what is needed for such an arrangement to stand up in court.   [Website] [Disclaimer]

All of us will retire at some point, but with the pressures of mortgage repayments, school fees, and just living, it's common for people to give little thought to retirement planning until well into their 50s. So this week I thought I'd take the opportunity to cover off on a few key fundamentals that we regularly discuss with clients. Hopefully several of these you can tick off as done, but perhaps there are a few you hadn't considered that you might be able to nudge up your to-do list.  [Website] [Disclaimer]