Financial Autonomy

Borrowing to invest he is unquestionably a frequent contributor to wealth accumulation. Few of us would buy a home without using a mortgage, and it is a rare business that is able to grow without some form of debt. Borrowing to invest in the stock market has many positive attributes. Shares can be sold quickly, enabling you to reduce or clear your debt at short notice were your circumstances to change. Transaction costs are low. And diversification is easily obtained. There are several ways in which you can borrow to invest in the stock market. Under a debt recycling approach, it is assumed you are using equity in your home. Borrowing to invest magnifies an the outcome. If you invest $1000 and it increases in value by 10%, you have gained $100 in wealth. If instead you matched that $1000 with an equal amount of debt, and your now $2000 investment grew by the same10%, your wealth has increased by $200, double that of the original example. Now of course you need to back out the cost of the debt, but this simple example illustrates the impact. Investments don't always go up however, so the magnification brought about through gearing works in both directions. If the value of your investment rises, gearing enhances your outcome. But if the value of your investment falls, gearing makes the situation worse. For this reason, there's a few key criteria that you should tick-off before embarking on this strategy. Disclaimer Get GainingCHOICE

Welcome back to the What's Possible podcast where we explore people who've lived interesting lives and consider what lessons we can draw to have the fullest, most fun life possible. In this episode, we dive into Hillary Clinton's journey and what she's achieved alongside that. What's Possible has now moved to its own channel. Links are below for the most common players, or just search What's Possible in your podcast app. Find What's Possible on Spotify here: https://open.spotify.com/show/7beUaLlKeg7zlq6RlIObTp Find What's Possible on Apple here: https://podcasts.apple.com/us/podcast/whats-possible/id1766412250 Subscribe to GainingCHOICE Disclaimer

Having now rolled into a new financial year, you might have seen league tables floating around showing the best and worst super fund performers for the 2023/24 financial year. This year the large industry funds tended to lag their retail funds cousins. In this week's episode I wanted to explore why that had occurred, so you can determine whether you need to be taking any action. Subscribe to GainingCHOICE Disclaimer

Welcome back to another episode of the What's Possible podcast where we examine the life of someone interesting and then discuss what we can learn from their story to help us live full and interesting lives. Subscribe to Crawford's new weekly email The Dash. Disclaimer What's Possible has now moved to its own channel. Links are below for the most common players, or just search What's Possible in your podcast app. Find What's Possible on Spotify here: https://open.spotify.com/show/7beUaLlKeg7zlq6RlIObTp Find What's Possible on Apple here: https://podcasts.apple.com/us/podcast/whats-possible/id1766412250

What's going on with interest rates? At the beginning of the year there was near unanimous agreement that interest rates would fall at some point in 2024, probably in the back half of the year. Yet here in Australia at least, talk is of the potential need to lift interest rates. As it stands, interest rates are already at their highest level in over a decade, and we need to go back to 2008 to see a time where they were at these levels for a sustained period. This week I wanted to take a look at the change in thinking that is underway globally with respect to interest rate policy, and what that means for those of us with mortgages, and also those with investments. Disclaimer Subscribe to our weekly email update.

Welcome to the What's Possible podcast, our dive into the people who inspire us, how they achieved what they did, and what lessons we can all draw so that we can live the most interesting and full lives possible. Let us know what you think by hitting "reply" to a GainingCHOICE email. Not receiving GainingCHOICE? Fix that here. What's Possible has now moved to its own channel. Links are below for the most common players, or just search What's Possible in your podcast app. Find What's Possible on Spotify here: https://open.spotify.com/show/7beUaLlKeg7zlq6RlIObTp Find What's Possible on Apple here: https://podcasts.apple.com/us/podcast/whats-possible/id1766412250

A huge welcome back to the Financial Autonomy podcast, our first episode in about 5 months. The briefest glance at the market section in the GainingChoice e-mail will make it clear that investing in U.S. stocks has been by far the best strategy of the past several years. The five and 10 year average returns on Australian shares, inclusive of dividends, has been about 8%. In comparison The US S&P 500 index has delivered a 10 year average return of about 13% including dividends. The return is even higher when measured over five years. Emerging markets, the other market sector that we follow in GainingChoice, has generated an average return of about 5% per year over both measurement periods. So 13% versus either 8% or 5%. It's not hard to choose which one you'd prefer, if only we had the benefit of hindsight. But what do these percentage return differences mean in dollar terms? $100,000 invested in the U.S. S&P500 index 10 years ago would be worth about $340,000 today, assuming all dividends were reinvested. The same $100,000 invested in the Australian ASX 200 index would be worth about $216,000, again with all dividends reinvested. So whereas investing on the Australian Stock Exchange you did a little better than doubling your money, in comparison investing in U.S. stocks you more than tripled your money over the same time period. Emerging markets fared even worse, with your $100,000 having grown to approximately $163,000. The point here is that the differential is not small. It is meaningful, and it is impactful. But that's backward looking. We can't jump in a DeLorean and travel back in time unfortunately. The question then for us investors is how should we play things from here? Disclaimer Brought to you by Guidance Financial Services GainingChoice

Welcome to the What's Possible podcast our dive into the people who inspire us, how they achieved what they did, and what lessons we can all draw so that we can live the most interesting and full lives possible. Let us know what you think by hitting "reply" to a GainingCHOICE email. Not receiving GainingCHOICE? Fix that here.

I started this podcast in 2017 with the desire to put myself out there on what I felt was important in money management and wealth creation, gaining choice. My hope was that in putting that message out into the world, in time I'd attract people to our Financial Planning practice who shared this worldview. It took a while but I'm very pleased that this did indeed work. Why am I taking a break now? There's a few factors. [Website] [Disclaimer]

It's not uncommon I find, for people to arrive at the desire to achieve Financial Autonomy in their 40s or 50s. Particularly for those with kids, until this point in life it's largely just been survival mode. Money in equals money out. First it's saving a deposit for a home, then it's getting the mortgage under control. Usually either the first home isn't the forever home, or else renovations and improvements are required. Then you've got the costs of raising children. Layer on top this is the potential for divorce, and it's not uncommon for me to have people reach out wanting to achieve financial security but worried that it's too late for them. If you're worried that it might be too late for you build wealth and achieve financial security, this episode is for you. [Website] [Disclaimer]

In this episode, we talk with David Tuckwell of Global X about a few interesting potential satellite ETFs. [Website] [Disclaimer]

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 against your portfolio and reflect on whether you were comfortable with the level of risk that you are sitting at. [Website] [Disclaimer]

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] [Disclaimer]

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]

Jarrod McCabe is a director at Wakelin Property Advisory. Jarrod was on the podcast a couple of years back sharing his expertise. I've invited him back to get a read on the current property market. With interest rates looking like they may have peaked, it's certainly an interesting time. https://wakelin.com.au/about-us/ [Website] [Disclaimer]

In this episode, we will provide practical advice and techniques for professionals looking to tackle debt effectively, including debt consolidation, budgeting strategies, and tips for accelerating loan repayment. [Disclaimer] [Website]

This week, we provide a step-by-step guide on how professionals can lay a strong foundation for building wealth, including budgeting, saving, investing, and planning for retirement. [Disclaimer] [Website]

This week I chat with Katerina Peiros, estate planning lawyer from Hartwell Legal, about an interesting case that went through the courts recently. We'll also have a broader discussion around what you need to be thinking about when making your estate planning arrangements. [Disclaimer] [Website]

Which is better? A 50% return once, or an 8% return each year for 10 years? In this episode, we will go over this and the power of compounding. [Disclaimer] [Website]

Within the financial independence community, the concept of passive income frequently gets a lot of attention. Sometimes though, I find that its overemphasis leads to poor strategy decisions. So this week I wanted to explore where a passive income goal has the potential to lead you awry. [Disclaimer] [Website]

This week, we're talking about all things risk profiles. What they are, how they work, what to do when you and your partner's risk profiles conflict, and much more. [Disclaimer] [Website]

This week I chat with Mitch Potter on his financial autonomy journey - travel, starting an apprenticeship in his 30s, investing, and having plenty of fun along the way. [Disclaimer] [Website]

With mortgage rates having leapt up this past year, the effective return savers receive by parking their money in an offset account is looking increasingly attractive. This has led to a question we're being asked more and more. Should I invest or just leave my money in the offset account? [Disclaimer] [Website]

Today I'm talking with Shannon Nutter, Head of Vanguard Super, about the findings from their recent study - How Australia Retires. [Disclaimer] [Website]

For an investor trying to build wealth and achieve financial independence, a question they will inevitably face is whether they should be sending their savings into stock market investments, or paying off an investment property instead. [Website] [Disclaimer]

In 2012 Gail, her husband, and their 4 young children set off from Melbourne for a 6-month long Australian adventure. In this week's episode, I ask Gail how she made it possible, what have been the implications since, and what adventures they have planned next. This one is sure to inspire. [Disclaimer] [Website]

Saving requires forgoing spending today for benefits in the future. Whilst it's clear that financially, to live entirely in the present with no allowance for the future is unwise, there is the potential to go too far the other way. But how do you know what the right balance is? [Disclaimer] [Website]

A while back I put a call out in the GainCHOICE email asking for readers to reach out if they had a story to share about taking a career break or making a career transition. Several people came back to me, so over the next few months we'll have a few interviews around this topic. This week is the first of these. I'm chatting with Brenda today, who is in the early stages of a 6-9 month sabbatical. We talk about her Financial independence journey and how she aligns that with her goal to visit every country on the planet. This is a wonderful discussion that I'm sure you will love. [Disclaimer] [Website]

This week's episode is another one inspired by a recent client question, one that we get asked multiple times each year. Should I be topping up my super? The primary motivation in seeking out an answer to this question is to determine whether you're on track to have enough retirement savings for a comfortable and enjoyable later phase of life. But the other element is around tax. There's a general awareness that there are tax savings to be had through using the superannuation system. The unsaid element to this question of topping up super, is whether potential tax savings are being squandered through not taking maximum advantage of the superannuation system. [Disclaimer] [Website]

Redundancy. With the Australian economy slowing as the impact of higher interest rates begins to bite, job cuts are likely to accelerate. Layer on top of this the potential impact that artificial intelligence might have on the white-collar workforce of the future, and it's easy to understand why many people are feeling anxious about their employment future. I've found that when I'm feeling anxious, the best way to relieve stress is to identify what I would do if the thing that's keeping me awake at night, were to occur. Worst-case scenario planning. Once I'm clear on what I would do, even though it's somewhat unpalatable, I find the anxiety goes away. So if the potential for redundancy is something causing you sleepless nights, this week's episode might provide you with a way to take control and move forward with positivity. [Disclaimer] [Website]

This week I have the pleasure of welcoming Michael Kemp onto the podcast. Michael's working life has bounced between dentistry and financial markets, sometimes doing both at the same time! For 9 years he was the chief investment analyst for Scott Pape's newsletter. Michael has recently released his third book - The Ulysses Contact - how to never worry about the share market again. [Website] [Disclaimer]

I try my best to avoid financial jargon, but "mean reversion" is one piece of jargon well worth being acquainted with. The "mean" is just a fancy way of saying the average. The concept of mean reversion then, is that investments and markets tend to want to pull back to their average over time. This week we're going to dig into what mean reversion is, and perhaps more importantly, its implications for you as a long term investor. [Disclaimer] [Website]

This week we're talking all things financial modeling with Jacob Kettler from Intelliflo. [Disclaimer] [Website]