Another Panic, Another Recovery
As at the time of writing, share markets have largely recovered from the volatility that began in February 2025 and intensified sharply in early April. That period in early April was marked by extreme investor fear, which, as is often the case, triggered an outpouring of exaggerated predictions and doomsday headlines about what might come […]
Debt Recycling and Dollar Cost Averaging
Dollar cost averaging (DCA) is one of the most common investment strategies for everyday investors. It simply involves contributing to your investment portfolio gradually over time, rather than investing a lump sum all at once. This is the default approach for superannuation contributions, and it’s how most people invest their surplus cashflow – often monthly, […]
The Hype Around Private Credit
The investment story of 2025 may already belong to private credit. You’ve probably heard about it – from your adviser, stockbroker, neighbour, or simply from its domination of AFR headlines. There’s a long history of irrational exuberance for particular asset classes, and it rarely ends well. Bitcoin notwithstanding. Of course, there’s more nuance to the […]
The Shoddy Marketing Behind Bank Account Alternatives
There’s been a recent surge in fintechs offering fixed-interest investments to retail investors. This is interesting because fixed interest has never been as popular as shares, whether held directly or through ETFs. More access to fixed interest isn’t necessarily a bad thing. The issue is how these products are marketed, being pitched as alternatives to […]
Vertical Integration in Financial Advice Never Died
This article outlines the history of product-based financial advice in Australia and how the industry evolved from advisers being employed directly by product issuers. Vertical integration has long been blamed for many of the industry’s indiscretions, with most advisers now preferring to offer more independent recommendations to clients. The prevailing view is that this model […]
7 Years is Not Long-Term: Why Average Returns Are Rare
How often have you read that 7 years is considered a “long-term” investment timeframe? Here’s a typical example, taken directly from the Betashares website: The idea that 7 years qualifies as long-term is widely accepted across the investment industry – and it’s highly problematic. Framing it this way implies that investors can expect the average […]
Listed Investment Companies (LICs)
Experiencing a peak in interest a few years ago due to a certain book written by a particular shoeless man, LICs have fallen out of favour recently. ETFs have clearly overtaken listed investment companies (LICs) as the savvy investors preferred choice of vehicle. This article will review the investment structure, the most popular LICs on […]
The Secret Tax on TPD Payments
Total and permanent disability (TPD) insurance provides a lump sum if you suffer a serious illness or injury that leaves you unable to ever return to work. It is an important form of cover that many people hold by default in their super fund. While the benefits of TPD insurance are clear, the tax treatment […]
Investing For Your Children
Many parents want to set up an investment portfolio for their young children, something they can gradually add to over time. The motivations vary: helping with a future home deposit, providing early investment education, or simply giving their child a financial head start. These portfolios often use ETFs, as they’re accessible, low-cost, and suitable for […]
Guide to the First Home Super Saver Scheme (FHSSS)
An often-misunderstood strategy, the First Home Super Saver Scheme (FHSSS) allows a first home buyer to utilise some of the tax benefits of superannuation to help with their property purchase. In reality, the FHSSS is mostly a tax strategy. It’s up to the individual whether it’s useful for their property plans or not. It can […]
Market Crashes and Investor Emotions
At the time of writing, share markets are experiencing significant volatility, swinging both up and down. It’s no surprise that many investors are feeling uneasy about their portfolios. That fear is only amplified by the relentless news cycle and commentators insisting that everything is “unprecedented”. Some investors may feel tempted to make changes to their […]
How to Mess Up Debt Recycling
Debt recycling continues to gain popularity within the personal finance space, but so too do the risks of getting it wrong. While the strategy is relatively straightforward to implement, small mistakes can completely undo all of the potential benefits. This article outlines some of the common mistakes people make when setting up or managing a […]
Retirement Planning: The Bucket Strategy
This article continues our series on retirement drawdown strategies, the risks involved, and how to manage them. Previous articles in this series include: This piece will explore the retirement strategy of bucketing. This is one of the most popular strategies amongst retirees and the financial advisers guiding them. The bucket strategy is not a strict […]
Debt Recycling with a Family Trust
We have previously written about debt recycling and family trusts both of which can improve investment outcomes, primarily through tax benefits. Family trusts also offer additional asset protection advantages. Some may assume these strategies must be used separately, but they can be combined to further enhance tax efficiency. However, this approach comes with additional risks […]
Should I Invest in Emerging Markets?
Emerging markets as an asset class have fallen out of favour over the past decade, primarily due to poor relative returns and concerns over governance within constituent countries. This article takes an objective approach to assessing emerging markets, steering clear of the opinion-based forecasting that often dominates discussions on the topic. Importantly, it will also […]
SMSF Strategy: Geared Funds
Many people establish an SMSF solely to purchase direct property, often borrowing from a bank to complete the transaction. The approach of borrowing a significant amount of money is widely recognised and accepted, within both an SMSF and personal investment strategies However, borrowing to invest (also called gearing or leveraging) in shares carries a completely […]
Retirement Planning: The 4% Rule
This article builds on a previous piece about sequencing risk and how it can negatively impact retirement outcomes. Various strategies have been proposed to mitigate sequencing risk and broader market risk when drawing down assets in retirement. Among them, the 4% rule is perhaps the most well-known, and the most debated. The 4% rule suggests […]
Hourly Fee Financial Advice
This article builds on a previous critique of ongoing advice fees. As of this writing, only three known financial planning firms in Australia operate on an hourly fee basis. This is surprising, given how common the model is in other professional services like law and accounting. There is also a mature hourly advice industry in […]
The Problem with Ongoing Advice Fees
This article will be deeply unpopular amongst financial advisers. For those advisers reading this, please attempt to see this from a client’s perspective and not someone whose livelihood depends on maintaining the status quo. It will always be difficult to read critique of a core business practice. However, if ours is to become a profession, […]
SMSF Strategy: Buying Your Own Commercial Property
Self-Managed Super Funds (SMSFs) are a popular choice for investing in property, thanks to their lower tax rate of 15%. This tax advantage is particularly appealing for commercial properties, which often deliver higher yields than residential properties. However, these higher yields reflect the increased risks associated with commercial property, such as elevated vacancy rates and […]
