loader from loading.io

52. Asset Rich, Cash Poor

360 Money Matters

Release Date: 08/23/2022

165. Owning Assets in a Trust show art 165. Owning Assets in a Trust

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss the complexities of owning assets in a trust and offer guidance on when it might be beneficial. We address a common question about whether to buy assets individually or through a trust, weighing the pros and cons of each approach. We emphasize that trusts can provide a layer of protection for assets, particularly for business owners concerned about creditors. However, we clarify that trusts are not "bulletproof," especially when it comes to family court proceedings in cases of relationship...

info_outline
164. How To Not Ruin Your Budget Over Christmas show art 164. How To Not Ruin Your Budget Over Christmas

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we share tips to avoid overspending during the holidays. We stress setting a realistic budget, planning ahead, and avoiding credit card debt. Alternative gift ideas like Secret Santa, re-gifting, or pooling money for family experiences are encouraged, along with early online shopping and price comparisons to save money. We also highlight the value of saying no to costly commitments and focusing on meaningful, budget-friendly interactions. The goal: enjoy the season without financial regret. Ready to enjoy...

info_outline
163.  Offset vs. Redraw Account show art 163. Offset vs. Redraw Account

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss the differences between offset and redraw accounts, key financial tools for managing mortgage payments. We outline how both accounts reduce mortgage interest but differ in terms of flexibility and tax implications. An offset account, linked to a mortgage, allows daily transaction access, providing flexibility and potentially larger tax deductions if the property becomes an investment. In contrast, a redraw account holds excess funds paid toward the mortgage, which can be withdrawn, though with...

info_outline
162. Market Wrap show art 162. Market Wrap

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast! We are back again with our monthly ‘Market Wrap’ segment. In this episode, we talked about post-US election market impacts. We start off with the positive response of the U.S. stock market, which reached all-time highs, and discuss the soft economic landing, resilient labor market, and potential inflation concerns if certain policies are enacted. We’ll also talk about challenges in Europe, where deflation concerns may lead to lower interest rates, and China's focus on boosting domestic demand to meet growth targets, which...

info_outline
161. Purchasing a Property Using Super show art 161. Purchasing a Property Using Super

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss the intricacies of purchasing property using superannuation, particularly through a Self-Managed Super Fund (SMSF). We outline the fundamentals of SMSFs, including the flexibility they offer within the confines of superannuation legislation, as well as the responsibilities involved, such as managing contributions and undergoing annual audits. Also, we cover the costs associated with establishing an SMSF and the potential for property investment, emphasizing the strict regulations that prohibit...

info_outline
160. Refinancing Considerations show art 160. Refinancing Considerations

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode we discuss the key considerations around refinancing a mortgage, especially in light of potential interest rate reductions. We cover various factors, including negotiating with your existing lender, the "loyalty tax," and the pros and cons of fixed versus variable rates. Also, we dig deeper into using offset accounts, interest-only loans, and the importance of having a strategy for debt repayment. Finally, we emphasize being mindful of loan terms when refinancing, as extending the loan period can result in...

info_outline
159. Choosing The Right Superfund show art 159. Choosing The Right Superfund

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss the importance of paying attention to superannuation, as 12% of an employee's income is allocated to it. We explain that superannuation is a tax-effective trust structure designed to help grow wealth for retirement. Also, we explore various types of superannuation funds—industry, retail, wrap platforms, and self-managed super funds (SMSFs)—highlighting their differences in investment options, insurance, and complexity. Furthermore we emphasize the need to review your super fund as life...

info_outline
158. Market Wrap show art 158. Market Wrap

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast! We are back again with our monthly ‘Market Wrap’ segment. In this episode, we discussed the significant movements in the investment markets, highlighting the 5.18% rise in the S&P 500 over the last month, driven by factors such as East Coast dockworkers' strike resolutions and U.S. interest rate cuts. Additionally, we touch on China’s economic stimulus efforts, its potential global impacts, and the Australian market's growth. Furthermore, we tackled into the potential effects of the upcoming U.S. election on the...

info_outline
157. Downsizing as a Retirement Strategy show art 157. Downsizing as a Retirement Strategy

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we explore downsizing as part of a retirement strategy. We discuss why retirees often choose to downsize, such as reducing space and maintenance needs, and the financial benefits like unlocking equity from the family home to boost retirement income. The downsizer contribution allows those over 55 to contribute up to $300,000 (or $600,000 for couples) to their superannuation, providing tax-free retirement income opportunities. Lastly, we touch on strategies like purchasing a downsized property early to...

info_outline
156. Growing Your Superannuation show art 156. Growing Your Superannuation

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss superannuation and the strategies for growing it effectively. We address the importance of starting early, making consistent contributions, and understanding the tax advantages associated with superannuation. We answer common questions, such as why superannuation is a powerful investment tool and the benefits of tax-free income during retirement. Additionally, we highlight the importance of balancing super contributions with other financial priorities, like debt repayment or personal...

info_outline
 
More Episodes

Welcome back to another episode of the 360 Money Matter Podcast! One of the most common misconceptions in financial planning is the separation of the assets from cash flow. We often deal with the resistance of people when it comes to converting their assets into income.

 

While we understand the emotional attachment to the asset, especially when it comes to property, producing income to support your lifestyle is one of the most important things to enhance the quality of your life. We work with our clients to navigate these issues and make decisions that make them feel confident about their financial future. 

 

By the end of this episode, we hope to have widened your horizons when it comes to your choices in dealing with the crisis of being asset rich and cash poor. Plan ahead with your financial advisers now!

 

--

 

This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of AMP Financial Planning – AFSL 232706

 

Episode Highlights:

  • What being asset rich and cash poor means
  • Various options in converting assets into cash
  • Different types of assets
  • Why people resist selling properties
  • The importance of advance planning for your assets

 

Connect with Billy and Andrew!

360 Financial Strategists

 

Check out our latest episode here:

Apple Podcast

Spotify

Google Podcast