Financial Autonomy

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]

Often when I ask new clients when they would like to be able to retire the answer is "tomorrow", with a smile and a chuckle. Retiring as early as possible is seen by many as the pinnacle of financial success. This is interesting, because if you had someone who had been made redundant and was finding it difficult to get back into the workforce - early retirement but not at a time of their choosing - they're unlikely to be in a happy state. This week I want to explore a few alternatives to retiring early, and some reasons why you might like to consider these as part of your plans. If early retirement is the choice in life that you're shooting for, go for it, by all means. But if your deeper goal is to live a happy and healthy life, perhaps these alternatives might provide a viable way forward for you. [Disclaimer] [Website]

This week we're talking career change. For many of the clients that we work with, the choice being pursued is a career change, usually because the job they're in is not making them happy. Sometimes it might be following a redundancy. Now our area of expertise is around the finances, so our focus is on how to make the career change possible financially. But there's a whole lot more to a successful career change than just the dollars. I'm joined this week by Kate Richardson. Kate is an Executive Career Coach, who orchestrated her very own career change 4 years ago. Today she helps people like you and me succeed in their very own career transition. Link: www.katerichardson.co [Disclaimer] [Website]

I came across a great story recently that got me thinking. A successful woman in her 50s observed that several of her younger colleagues at work, all in their 20s, were furnishing very expensive handbags. She realised that she'd never had a luxury item like that, and if these young folk could afford one, then surely after all these years of work, she could too. She mentioned this to a few friends, and they were all encouraging - splash out, enjoy yourself, you've earned it. She had a look around and found a Chanel bag that was to her liking. Apparently she even needed to make an appointment to buy the bag. But when the time came to hand over the credit card and make the purchase, she pulled back. She couldn't bring herself to do it. Spending thousands of dollars on a status symbol just wasn't something that she could do. In this week's episode I wanted to explore the idea of luxury, particularly as it pertains to financial autonomy. Once you've got yourself into a financially secure position, what use do you put that to? [Disclaimer] [Website]

The focus of our podcast is to help you gain choice through the achievement of what I've called Financial Autonomy. A very close cousin of the idea of financial autonomy is Financial Independence. Financial independence is the concept of owning assets that produce income such that it is not necessary for you to engage in paid employment to produce the money you and your family need to live. I'm sure most listeners are familiar with the FIRE acronym. As we've canvassed in past episodes, whilst this is a cool and catchy acronym, most advocates of this philosophy have come to the realisation that the RE portion, the retire early portion that is, is probably misguided. The financial independent piece though, the first half of the acronym is a valid pursuit, and that's certainly something that aligns well with us here at Financial Autonomy. The bulk of the people we work with are in their 40s and 50s, and so that's why this week I thought I'd share with you the key strategy elements we use to help people like you achieve financial independence. I hope you find it useful. [Disclaimer] [Website]

You'd have to have been living on a deserted island for the last 18 months to not know that interest rates have been on the rise. Central banks around the world are endeavouring to return rates to normal levels, following sharp cuts through the pandemic. Normalising rates is not without pain however, as many who bought homes two or three years ago are very well aware right now. But higher interest rates have impacts for investors too. So this week I wanted to dig into four ways in which today's higher interest rates are impacting your share portfolio. [Disclaimer] [Website]

If you've listened to a few of these podcasts, or read our weekly email, you will know that our core theme is helping you Gain Choice in life. Today's episode covers a few different systems which we can use to make better financial decisions. [Disclaimer] [Website]

This week we're going to look at 6 core personal finance concepts. These are concepts that it's easy for those of us working in the space to assume everyone understands. It might also be that your understanding of what these terms mean differs from the industry definition. So let's run through these core concepts together and make sure we're all on the same page. [Disclaimer] [Website]

Given the large increases seen in property values in recent decades, combined with more and more of us living well into our 90s, the problem of being asset rich and cash poor is becoming increasingly common. Another way to frame this problem is something an old neighbour said to me once, "Paul, you can't eat bricks". It's great to be financially secure and have significant assets behind you, but you need cash flow to pay the bills and put food on the table. That's easy enough whilst you are working, but once you retired you either need your assets to be throwing off income, or else liquidated to be available for spending. In this week's episode we're going to look at a few ways that you, or perhaps an older family member you care for, might be able to solve the problem of being asset rich but cash poor. [Disclaimer] [Website]

As a parent, providing your child with the best possible education is core business. This week I'm talking to Marie Van Asch of Futurity about education funding solutions. This was a great discussion, hope you enjoy it. [Website] [Disclaimer]

It's not uncommon for our clients to want to assist their children to get into the property market. Particularly in our major capital cities, we all know that prices are at levels that make it very difficult to accumulate an appropriate deposit and be able to service the level of debt required. Usually, parental assistance in the property market is achieved through a gift, or a lump sum of money to supercharge the deposit. Sometimes, parents might go guarantor on a loan, with all the risk this entails. Recently I've been working with some clients who have a slightly different take on how they would like to help their kids. In the medium term, they do want to be able to assist their children to get into the property market. But in the short term, their priority is about helping them transition from living in the family home to becoming independent adults. [Website] [Disclaimer]

This week to explore when you should be taking some time to look at your personal insurance. Appropriate insurance is an essential financial safety net, but we want to have the right levels of cover - not too much, and not too little - because insurance costs money, and that's money you can't use for other things like growing your wealth. [Disclaimer] [Website]

The Australian share market has gotten off to a great start this year. Indeed the last 12 months have been fantastic. If you've been following along via the gaining choice email you will know that over the last 12 months, investors in the Australian market have gained around 11% inclusive of dividends whilst those investing in the US market are down about 6.5%, again inclusive of dividends. The ASX's outperformance is a distinct break from what we've seen over the last decade or more. What's going on and will it continue? That's what we'll be discussing in today's episode. [Website] [Disclaimer]

This week joining me on the podcast is Shelley Johnson, who, in addition to hosting the My Millenial Career podcast, recently co-authored a book with a friend of the podcast, Glen James from My Millenial Money. Their new book is called Sort Your Career Out. This is a great fit with our goal of gaining choice, which very often relates to issues around our paid employment - a career change, going back to study, or perhaps taking a sabbatical and doing some travel. So I'm looking forward to having a great discussion with Shelly today. [Website] [Disclaimer]