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52. Asset Rich, Cash Poor

360 Money Matters

Release Date: 08/23/2022

141. Market Wrap show art 141. 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 discuss recent market trends, with a primary focus on the U.S. and Australian economies. We highlight the strong performance of the S&P 500 in May, driven largely by tech giants like Nvidia, which significantly contributed to market growth due to the increasing influence of AI. Inflation in the U.S. shows signs of easing, potentially paving the way for rate cuts, while in Europe, the ECB is anticipated to reduce rates to stimulate economic...

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140. Active and Index Investments show art 140. Active and Index Investments

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast! In this episode, we talk about two ways people invest their money, active and passive investing. We explain that with passive investing, you put your money in a fund that follows the big companies in a certain market, like the S&P 500. But with active investing, you try to beat the market by making active choices about where to put your money that will outperform the market. We also discuss the benefits and detriments of each approach - such as the ease, simplicity and cost effectiveness of passive investing and the...

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139. Employee Share Schemes  show art 139. Employee Share Schemes

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed employee share schemes and their implications. We explored the concept, benefits, risks, tax considerations, vesting periods, and the impact on employees' financial decisions. We also emphasized the importance of understanding the pros and cons of participating in employee share schemes. This highlighted how these schemes can align interests between employees and businesses but also pose risks, such as potential loss if shares decline in value or tax complications. Tune in to our latest...

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138. Tax Planning for EOFY show art 138. Tax Planning for EOFY

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed the end of the financial year and tax planning tips, focusing on the effective utilization of superannuation. Key points included maximizing contributions, leveraging concessional and non-concessional caps, and using catch-up contributions before deadlines. Superannuation was emphasized for future financial stability through tax planning strategies like pre-tax contributions. We also discussed government co-contributions to boost super balances for low to middle-income earners, spouse...

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137. Changes to superannuation limits on 1 July 2024 show art 137. Changes to superannuation limits on 1 July 2024

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we explore deeper into the intricacies of year-end tax planning and the impending modifications in superannuation. We broke down significant adjustments like the transfer balance cap set at $1.9 million and the forthcoming increase in concessional contributions to $30,000 annually.  Additionally, we explored the bump in after-tax contributions to $120,000, accompanied by a three-year bring-forward option. We also examined the uptick in super guarantee contributions from 11% to 11.5% and the...

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136. Property Guest (Marcel) show art 136. Property Guest (Marcel)

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, Marcel Dybner, a Partner at Besser+Co Estate Agents in Melbourne, recounts his journey starting from a challenging rental experience that steered him towards making a positive impact. Initially focusing on sales, he entered property management before joining Dion at Besser & Co. He addresses the current property market dynamics, where increased interest rates and landlord pressures are prompting property sales. Furthermore, the strategies for selecting attractive properties are emphasized, highlighting...

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135. Protecting Your Assets  show art 135. Protecting Your Assets

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss asset protection strategies concerning personal and business finances. We stress the importance of segregating personal and business assets to shield against risks like creditors or business failures. Utilizing trusts, companies, superannuation for asset protection, and advising seeking professional guidance from financial advisors, lawyers, and accountants for legal compliance and tax planning. Lastly, we emphasize early planning and professional advice, noting the need for a comprehensive...

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134. Rentvesting show art 134. Rentvesting

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discuss rentvesting, a strategy where you rent your home while investing in other properties for income. This approach provides flexibility in your living situation while potentially generating returns from your investments. We discuss the tax advantages, such as mortgage interest deductions, and potential drawbacks like less security in your living situation and loss of first-time homebuyer benefits. We also touch on the need for careful cash flow management and alternatives like "own vesting." ...

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133. Market Wrap show art 133. 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 discuss the latest trends in global investment markets. We examine the S&P 500's decline of 2.47% and its connection to inflation, which came in at 0.4%, while addressing the shifts in interest rate expectations and potential recession signals such as the Mel and SAHM rules.  In Australia, the ASX 200 saw a minor decline of 0.79%, mirroring the US market, while rising inflation is outpacing income growth. There is also an increase in...

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132. Asset Rich & Cashflow Poor show art 132. Asset Rich & Cashflow Poor

360 Money Matters

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed the concept of being asset-rich but cash flow-poor in the context of retirement. The accumulation of assets without sufficient income, due to tax considerations, can lead to challenges during retirement. The options presented included liquidating assets for income-producing alternatives, downsizing the family home, considering reverse mortgages, or purchasing a downsized home early. Proactive financial planning, with advice tailored to individual circumstances, is crucial. It is essential to...

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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!

 

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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

 

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