166. First Home Saver Super Scheme
360 Money Matters
Welcome back to another episode of the 360 Money Matters Podcast! In this episode, we discuss the First Home Saver Super Scheme (FHSSS), which helps first-time buyers save for a property deposit using superannuation. We highlight its tax benefits, such as contributions taxed at 15% instead of higher marginal rates, potentially saving individuals thousands annually compared to regular savings. However, we note the scheme’s complexity, with restrictions like annual and lifetime caps, making professional advice essential. While we commend its potential, we advocate for simpler rules and...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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_outlineWelcome back to another episode of the 360 Money Matters Podcast!
In this episode, we discuss the difference between income and capital growth assets. We explain that capital growth refers to the increase in the value of an asset over time, while income is usually received in the form of dividends or rent. We also mention that these principles apply to other asset classes such as managed funds or shares. Additionally, we emphasize that there is no one-size-fits-all approach and that different investment strategies are appropriate at different times depending on individual goals and life stages.
Furthermore, we also discuss franking credits associated with dividend income from shares and how they can be advantageous for investors. We explore the concept of being "asset rich, cash poor," where individuals have significant assets but limited cash flow due to low rental yields or living expenses exceeding income generated by assets. Lastly, we delve into strategies for repositioning assets or investing in capital growth assets to address this issue.
Join us in this episode as we continue to explore the dynamic world of investments. Don't miss out on valuable insights and strategies tailored to your financial goals.
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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, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights
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Difference between capital growth and income in asset
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Understanding different types of asset
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How to structure investment portfolios
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Franking credits are and how they can influence investment decisions
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Importance of timing in investments
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Balancing capital growth and income
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Implications of market conditions and retirement on investments
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