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Global Trade tensions re-escalated in October, with the US responding to increased rare earth export controls from China with an additional 100% tariff alongside export controls on critical software. This led to the S&P500 experiencing its largest one day decline since Liberation Day in April, falling by -2.71% on October 10. Gold prices accelerated to fresh record highs amid global trade tensions, the continued US government shutdown and expectations of further Fed cuts. The yellow metal then pared gains in the second half of the month as trade tensions eased and investors took profit, with the spot gold price ending the month +3.7% higher at US$4,002.92/oz. By the end of the month, US President Donald Trump and China’s President, Xi Jinping met to discuss a potential deal, during which Trump reduced the fentanyl tariff on China by 10%, while China agreed to pause export controls on rare earths. Global equity indices continued to create fresh highs throughout the month amid robust corporate earnings and continued monetary policy easing from global central banks. The Morgan Stanley Capital International (MSCI) World Index advanced +1.9%, with a strong contribution from US equities. The S&P500 added +2.3%, the Dow Jones gained +2.5% and the tech heavy NASDAQ rallied +4.7%. European equities also fared well, with the Stoxx600 gaining +2.5% on the month and the FTSE100 adding +1.9%. The global services Purchasing Managers’ Index (PMI) declined to 52.8 in September, from 53.4. The global manufacturing PMI ticked lower to 50.8, from 50.9. US The US federal government entered a shutdown on 1 October, resulting in delayed economic data prints and missed pay checks for furloughed employees. Treasury yields rallied on the risk off sentiment and as markets fully priced in a 25 basis points (bp) cut at the October Fed meeting. Nvidia became the first stock to reach a US$5tn market cap, amid a broader AI rally. Major US stock indices continued to reset record highs amid corporate quarterly earnings and increased AI related spending. NASDAQ +4.7%, DOW +2.5%, S&P500 +2.3%. Fed Chair, Jerome Powell indicated in a speech mid month that the Fed was on track to deliver a 25bp rate cut at its end of October meeting, despite the lack of economic data, as the economic outlook appeared unchanged since the Fed last met. Core Consumer Price Index (CPI) surprised to the downside in September, rising +0.23% month on month (MoM) vs consensus +0.3% MoM. At the end of the month the Fed delivered the widely expected 25bp rate cut, however Fed Chair Powell advised that a further rate cut in December was not a “foregone conclusion”. The market was fully priced in a 25bp cut in December, with Powell’s commentary sparking a repricing in the market. By the end of October, this had fallen to 67% priced in. The US Dollar Index (DXY) appreciated +2.1% during October amid the more cautious outlook towards future rate cuts from the Fed. Australia The ASX200 traded +0.4% higher in October, reaching a fresh high at 9,108.6. Annual General Meetings (AGMs) and a mixed bag of trading updates captured investor attention. The monthly household spending indicator slowed to +0.1% in August, below consensus expectations of +0.3%. The unemployment rate rose unexpectedly to 4.5%, from 4.3% in September, the highest level of unemployment since November 2021. This saw money markets begin to price in the likelihood of a rate cut in November. The Reserve Bank of Australia (RBA) Governor, Bullock provided hawkish commentary at an industry dinner, during which she advised that the labour market remained tight, with upside risks to the RBA’s expectations for Q3 trimmed mean CPI. The chance of a November cut was largely priced out again. Q3 CPI came in higher than expected, up +1.3% during the quarter, boosting the annual CPI increase from +2.1% to +3.1%. This caused markets to almost entirely price out the chance of a further rate cut in 2025. Interest rate sensitive stocks, including Real Estate Investment Trusts (REITS) and tech companies, sold off as the likelihood of further rate cuts diminished. The Aussie Dollar experienced a U-shaped month against the USD, ending October -1.0% lower. The AUD sold off on the unemployment print and then appreciated as the market began to price out the likelihood of imminent future rate cuts. New Zealand The Reserve Bank of New Zealand (RBNZ) delivered a unanimous 50bp rate cut in its October meeting to 2.5%. The market had priced a ~50% chance of a 50bp rate cut at this meeting. A further 25bp rate cut in November is almost fully priced in. Q3 CPI increased by +1.0%, slightly higher than market expectations for +0.9% and bringing yearly CPI to +3.0%, from +2.7%. Europe The FTSE100 and STOXX600 both reset their record highs during the month, advancing +3.9% and +2.5% respectively, tracking gains from its US peers. Eurozone inflation ticked higher in September in line with consensus, up to +2.2% year on year (YoY) from +2.0% YoY previously. European Union countries turned in their 2026 general government budgets to the EU Commission during October. Germany’s budget showed front loaded fiscal expenditure growth, with its general government deficit widening to 4.75% of Gross Domestic Product (GDP) in 2026 and 4.25% in 2027. Conversely, Italy’s budget saw a continuation of moderate fiscal conservatism. S&P downgraded France’s sovereign credit rating in an unscheduled decision, to A+ from AA-. The ratings agency highlighted risks to the French government (present or future) being able to see through fiscal consolidation. The European Central Bank kept rates on hold at 2% as widely expected, reiterating that the policy rate was in a “good place”. The Euro depreciated -1.7% against the USD during October, partially due to ongoing political uncertainty in France. The Euro closed the month at 1.1534 USD, its lowest point during the month. China Policymakers at the Fourth Plenum remained committed to the 2025 Objectives, which included modern industrial system and tech self sufficiency. Q3 GDP growth slowed to 4.8% YoY, slightly above market expectations for … Read more

Overview The total value of Australian residential real estate is now $11.8 trillion. National housing values are gaining momentum, rising 2.2% over the September quarter alone. Darwin markets are setting the pace for capital growth since the first interest rate cut in February, with suburbs like Wanguri and Durack (NT) soaring by 20.1%. Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began. Australia’s property market has reached a new milestone, with the total value of residential real estate climbing to $11.8 trillion for the first time, increasing by $678 billion over the past 12 months, according to Cotality’s October Monthly Housing data. The milestone comes as momentum in national housing values continues to build, with dwelling values up 2.2% over the three months to September. This is the largest quarterly increase since the three months to May 2024 (2.2%). The annual growth trend also shifted higher for the fourth consecutive month, up from a low of 3.7% over the 2024-25 financial year, to 4.8% in the 12 months to September. This $11.8 trillion milestone is a clear testament to the resilience of Australia’s property market, where national dwelling values are now up 4.8% over the past year. There’s a clear building of momentum, with a 2.2% rise over the September quarter alone, the largest quarterly increase since May 2024. At the moment, there’s some uncertainty around the timing of another cash rate reduction and inflation impacting market momentum through to the end of the year. However, if the property market were to continue at its current rate of growth, it’s possible the combined market value could hit $12 trillion by the end of the year. Which market values have changed the most (or least) amid rate cuts so far? Largest and smallest change in suburb dwelling values between 28 February 2025 and 30 September 2025 Highest change – CAPITALS Source: Cotality Lowest change – CAPITALS Source: Cotality Highest change – REGIONALS Source: Cotality Lowest change – REGIONALS Source: Cotality Drilling down into the performance of individual suburbs reveals where the market has thrived most decisively since the first interest rate cut in February. This period, between the end of February and September 2025, highlights the markets responding strongest to lower borrowing costs and tight supply. Cotality’s analysis of suburb level dwelling values since February shows a clear trend: Darwin markets are setting the pace for capital growth. Suburbs like Wanguri and Durack (NT) both led the nation with outstanding growth of 20.1% in that time. This surge in Darwin suburbs reflects a powerful combination of relative affordability, extremely low levels of housing supply and a notable lift in investment activity. Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began. The largest declines were concentrated in inner city, lifestyle suburbs, primarily those with high density unit stock. Milsons Point in Sydney saw the greatest fall at −7.1%, with Kirribilli close behind at −6.3%. This reflected market dynamics more broadly. Even though the suburb analysis is hyper local, the data highlights a broader trend of Darwin leading Australia’s capital growth trend. City home values are up 13.4% through the year to date. It’s a relatively affordable market and investors may be taking note of high yields and rapid value increases. Some of the top performing regional markets were also the most affordable, such as Boggabri in regional NSW and Rochester in regional Victoria, each dwelling market with a median below $400,000. With other capital city and major regional markets soaring in value over the past few years, it seems like buyers are targeting what is left of the affordable land and housing across the country as interest rates fall and rents reaccelerate. Other highlights include: The strongest quarterly pace of growth has rippled from the lower quartile of the market (2.4%) to the broad middle (2.5%). Nationally, the ‘middle’ of the market is dwellings valued between $648k and $1.2m. Outside of Darwin, where values rose 5.9% in the September quarter, the ‘midsized’ capitals continued to lead growth, with Perth home values up 4.0%, Brisbane up 3.5% and Adelaide up 2.5%. Cotality estimates 44,436 sales occurred nationally in September, taking the rolling 12 month count to 540,775. Annual sales were roughly in line with the number of sales this time last year. The amount of time it takes to sell a property by private treaty has increased year on year to 30 days nationally but results vary depending on the market. For example, the recent strength in the Darwin market has driven down selling times from 51 days in the September quarter last year to just 39 days. In Melbourne, selling times have fallen from 35 to 32 days year on year. The discounts offered by sellers are generally smaller than they were a year ago amid rising buyer activity and low stock levels. The vendor discounting rate shrank from 3.3% in the September quarter last year to 3.2% in the three months to September 2025. Total stock levels have moved subtly higher in the past four weeks, with just 122,173 properties observed for sale nationally over the four weeks to October 5. Since the start of spring, total listing levels have risen 2.7%. However, stock levels generally remain tight, sitting -19.3% below the historic five-year average for this time of year.   Source: Cotality

Overview The total value of Australian residential real estate is now $11.8 trillion. National housing values are gaining momentum, rising 2.2% over the September quarter alone. Darwin markets are setting the pace for capital growth since the first interest rate cut in February, with suburbs like Wanguri and Durack (NT) soaring by 20.1%. Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began. Australia’s property market has reached a new milestone, with the total value of residential real estate climbing to $11.8 trillion for the first time, increasing by $678 billion over the past 12 months, according to Cotality’s October Monthly Housing data. The milestone comes as momentum in national housing values continues to build, with dwelling values up 2.2% over the three months to September. This is the largest quarterly increase since the three months to May 2024 (2.2%). The annual growth trend also shifted higher for the fourth consecutive month, up from a low of 3.7% over the 2024-25 financial year, to 4.8% in the 12 months to September. This $11.8 trillion milestone is a clear testament to the resilience of Australia’s property market, where national dwelling values are now up 4.8% over the past year. There’s a clear building of momentum, with a 2.2% rise over the September quarter alone, the largest quarterly increase since May 2024. At the moment, there’s some uncertainty around the timing of another cash rate reduction and inflation impacting market momentum through to the end of the year. However, if the property market were to continue at its current rate of growth, it’s possible the combined market value could hit $12 trillion by the end of the year. Which market values have changed the most (or least) amid rate cuts so far? Largest and smallest change in suburb dwelling values between 28 February 2025 and 30 September 2025 Highest change – CAPITALS Source: Cotality Lowest change – CAPITALS Source: Cotality Highest change – REGIONALS Source: Cotality Lowest change – REGIONALS Source: Cotality Drilling down into the performance of individual suburbs reveals where the market has thrived most decisively since the first interest rate cut in February. This period, between the end of February and September 2025, highlights the markets responding strongest to lower borrowing costs and tight supply. Cotality’s analysis of suburb level dwelling values since February shows a clear trend: Darwin markets are setting the pace for capital growth. Suburbs like Wanguri and Durack (NT) both led the nation with outstanding growth of 20.1% in that time. This surge in Darwin suburbs reflects a powerful combination of relative affordability, extremely low levels of housing supply and a notable lift in investment activity. Conversely, Sydney and Melbourne accounted for the majority of areas experiencing a dip in value since the rate cuts began. The largest declines were concentrated in inner city, lifestyle suburbs, primarily those with high density unit stock. Milsons Point in Sydney saw the greatest fall at −7.1%, with Kirribilli close behind at −6.3%. This reflected market dynamics more broadly. Even though the suburb analysis is hyper local, the data highlights a broader trend of Darwin leading Australia’s capital growth trend. City home values are up 13.4% through the year to date. It’s a relatively affordable market and investors may be taking note of high yields and rapid value increases. Some of the top performing regional markets were also the most affordable, such as Boggabri in regional NSW and Rochester in regional Victoria, each dwelling market with a median below $400,000. With other capital city and major regional markets soaring in value over the past few years, it seems like buyers are targeting what is left of the affordable land and housing across the country as interest rates fall and rents reaccelerate. Other highlights include: The strongest quarterly pace of growth has rippled from the lower quartile of the market (2.4%) to the broad middle (2.5%). Nationally, the ‘middle’ of the market is dwellings valued between $648k and $1.2m. Outside of Darwin, where values rose 5.9% in the September quarter, the ‘midsized’ capitals continued to lead growth, with Perth home values up 4.0%, Brisbane up 3.5% and Adelaide up 2.5%. Cotality estimates 44,436 sales occurred nationally in September, taking the rolling 12 month count to 540,775. Annual sales were roughly in line with the number of sales this time last year. The amount of time it takes to sell a property by private treaty has increased year on year to 30 days nationally but results vary depending on the market. For example, the recent strength in the Darwin market has driven down selling times from 51 days in the September quarter last year to just 39 days. In Melbourne, selling times have fallen from 35 to 32 days year on year. The discounts offered by sellers are generally smaller than they were a year ago amid rising buyer activity and low stock levels. The vendor discounting rate shrank from 3.3% in the September quarter last year to 3.2% in the three months to September 2025. Total stock levels have moved subtly higher in the past four weeks, with just 122,173 properties observed for sale nationally over the four weeks to October 5. Since the start of spring, total listing levels have risen 2.7%. However, stock levels generally remain tight, sitting -19.3% below the historic five-year average for this time of year.   Source: Cotality

Australians are living longer than ever before due to a combination of factors including improved healthcare, better living conditions and over all better quality of life. With this longevity comes the challenge of ensuring financial security throughout a longer retirement. Data from the Australian Bureau of Statistics (ABS) shows that life expectancy at birth is now 81.1 years for males and 85.1 years for females1. Despite the increases in these averages, many Australians will live well beyond these ages, making planning for your retirement income more important than ever. What is longevity risk? Longevity risk refers to the possibility of outliving your savings. Living longer allows you to enjoy the fruits of life for longer but it also means planning carefully to ensure your savings last as long as you do. For Australian retirees, this is especially important, as the Age Pension alone may not be enough to cover all living expenses over an extended period. According to the Challenger Retirement Happiness Index2, 72% of Australians aged 60+ report that the rising cost of living has adversely impacted their financial security, with 34% admitting the impact was significant. This highlights the importance of planning for longevity risk to maintain financial confidence in retirement. Building financial security for the future To ensure a comfortable and secure retirement, it’s important to take proactive steps to manage longevity risk. Here are some key considerations: Understand how long your retirement savings may last   Knowing how long you might live can help you plan your finances to last throughout retirement. Factors like health, lifestyle and family history can play a role in estimating life expectancy. Understand your income sources Retirement income can come from a mix of sources, including the Age Pension, superannuation, personal savings and investments. For many Australians, the Age Pension alone may not be enough to cover all living expenses, especially if superannuation or other savings run out. Adding a source of regular income such as a lifetime annuity to your retirement income plan can help you manage the risk of outliving your savings. By using some of your super or other money to set up a lifetime income stream, you could create an additional layer of secure income that complements the Age Pension, if you are eligible. This approach helps to provide peace of mind by ensuring you have a regular source of income that can cover essential needs throughout your life. This can form part of a comprehensive retirement income plan. Use planning tools and resources Make a budget The Age Pension is a key safety net for many Australians. Consider how it works, including eligibility and its role alongside superannuation and lifetime income streams. For personalised guidance to help you make informed decisions about your finances, consider accessing free services like the Financial Information Service (FIS) offered by Services Australia or see a Financial Adviser. The benefits of financial security Financial security can transform retirement into a time of freedom and fulfilment, allowing retirees to focus on what truly matters. With a lifetime income stream you can enjoy meaningful activities like traveling, pursuing hobbies or spending quality time with loved ones without the stress of financial uncertainty. The Challenger Retirement Happiness Index2 reveals that 41% of Australians aged 60+ see “having enough money to enjoy retirement” as essential for happiness, while 33% value knowing their money will last. This financial confidence provides the foundation for a retirement filled with confidence, happiness and peace of mind. Planning for a confident retirement A well thought out retirement plan provides the confidence to enjoy life without the constant worry of running out of money. By understanding longevity risk and taking proactive steps, you can feel more confident that your retirement income will last as long as you do. 1 Life expectancy, 2021 – 2023 | Australian Bureau of Statistics 2 Challenger Retirement Happiness Index   Source: Challenger

Super is money from your employer and your own savings you can use when you retire. As you earn an income it keeps growing a little at a time. But if you want to set yourself up for more choice for your life in retirement, there are two ways to help your super savings grow faster. Super booster #1: save more When you earn income, your super gets paid by your employer as a percentage of your salary. That’s something they are legally required to do and that’s why it’s called the superannuation guarantee. But your super savings don’t have to be limited by what you earn. You can make personal payments into super and there are a few different ways to do this. Super booster #2: invest smart Choosing how to invest your super is another step towards helping your savings grow. When you join a super fund, if you don’t choose how to invest your super, any savings you already have, and any new payments into your account, will be invested in a standardised investment option, known as MySuper. This might be ideal for your life stage and the type of investments you feel comfortable with. But most super funds offer a whole range of investment options and there might be one that is a more appropriate choice for getting the most from your super savings or if you want to play a more active role in your investment decisions. Get motivated to save Saving a little extra in your super now can make a big difference to your future income. But this can be hard to get your head around when it’s money you won’t get to spend until you retire. Here are four things to think about when it comes to saving as a way to grow your super: Super is your money It’s important to think of super as part of your net worth, just like any other savings account or the $50 note in your hand. Finding out how much super you actually have is a good way to remind yourself that it has real value, even though you usually need to wait until retirement to access your super. Even small savings count Another way to get motivated to save is to look at the difference your extra savings can make in 30, 20 or even 10 years’ time. See how a head start can help you reach your super goal and find out more about the big changes small savings can make for your super. Super isn’t everything Choosing to save more super can be hard if you feel like you’re struggling to make ends meet or you’re saving for something that’s really important, here and now. So you need to think about your other money priorities before choosing to make extra payments into your super. Extra super can save on your tax Making extra payments into super up to a certain amount each year could actually see you pay less in tax. So you get to put more money into retirement savings. Get educated to invest When it comes to investing super, knowing how to choose between all the options is a major hurdle to get over. And there are a lot of different things to consider when you’re investing your super, from the time it will be invested to the amount of risk you’re comfortable with or what is suitable for your life stage. Take a closer look Cass starts saving an extra $100 each month from age 25. Her friend Sunita starts her extra savings into super from 45. If the two friends earn the same throughout their career and keep saving at the same rate, Cass will have a super balance of $560,488 and Sunita will have a super balance of $521,198. Cass will have a super balance that’s $39,290 higher when they both retire at age 65. Choosing to save a little more into super now will see your money grow much more over time. And thanks to the magical multiplying effect of compounding interest, every extra dollar added to your super savings is another dollar that can earn even more towards your final balance. The interest or investment returns your super is earning are also going to be reinvested and earn more for your super. As this example shows, a 20 year head start on saving extra into super has earned Cass an additional $15,290 in investment earnings form her super savings up to age 65. Around 60% of her extra balance at retirement comes from her savings and around 40% comes from the earnings on those savings. Source: MLC

In Australia, we’re pretty big on borrowing money. According to figures published by Finder in 2024, Australia takes the number three spot, after Switzerland and the Netherlands in the top five countries with the highest levels of household debt. So, if you’re in debt, you’re certainly not alone in owing money. Mortgage debt is the number one contributor to household debt, followed by personal loans, credit cards and student loans. Quick stats – average Australian debt levels Household debt $261,492 Home loan debt $665,978 Credit card debt $3,306 Personal loan debt $8,098 Care loan debt $13,315 Student debt $27,640 Source: Finder – March 2024 Being in debt doesn’t have to be a problem as long as you’ve got money coming in to meet all your financial commitments, including loan repayments. But falling behind on those payments or finding yourself juggling too much debt along with bills and rent, can lead to serious short and long-term financial stress. In this guide to getting out of debt you’ll learn about the steps you can take straight away to deal with debt problems. You’ll also find out what to expect if your debts or bills remain unpaid. What to do if you can’t pay The most important thing when it comes to getting on top of debts is to act quickly. Take one or more of the following steps as soon as you become aware that you’re struggling to keep up with payments. This gives you more time to understand your options and make the right decision without putting yourself under extra pressure. Speak to your credit provider – contact your bank or other loan, credit card provider or utility company as soon as you can. Even if you’ve already missed a payment, there’s a good chance you can speak to someone about a new instalment plan you can afford. Apply for a hardship variation – if you’re unable to keep up with payments because of unemployment, ill health or changes in your financial circumstances, you could be eligible for a hardship variation. You can phone your provider to begin this process but may need to make an application in writing. The Financial Rights Legal Centre offers sample letters you can use for a hardship variation and for other situations like dealing with debt collectors. Speak with a financial counsellor – when your finances get out of control, dealing with debts and unpaid bills can be scary and isolating. If you’re confused about what to do, speaking to a financial counsellor could be the best course of action. You can hear more about your options and find out about your rights and responsibilities when it comes to dealing with debt collectors and any legal action against you because of your debts. Moneysmart offers more detailed information and advice on these different ways to get help with debts. Accessing super to pay debts It’s generally the case that you can’t withdraw any of your super until you reach your preservation age. However, there are two ways you may be able to gain early access to your super to pay off debts. The first is access on compassionate grounds, which includes ‘making a payment on a loan or council rates so you don’t lose your home’ as a legitimate reason for early access to a lump sum from your super. You may also be able to withdraw super early on the grounds of severe financial hardship. The Department of Human Services website provides guidance on what is considered to be financial hardship. You’ll need to apply to your super fund to make any arrangement for early withdrawal on these grounds. It’s well worth speaking to a financial counsellor before making a decision to apply for early access to super as this could impact your future financial security in retirement. What can happen if you don’t pay Credit history – unpaid debts or bills that have been outstanding for more than 60 days will be included on your credit history for five years, even after the debt or bill has been paid. When your provider is unable to contact you to request payment, this stays on your credit history for seven years. This will lower your credit score, which can impact your future ability to borrow money. Repossession – when a loan is secured on an asset, such as your car or home, and you miss a repayment, a lender may take action to repossess that asset. Once you’ve missed a payment, a lender must issue you a default notice and then give you 30 days following the date of issue to pay the overdue amount before taking steps to repossess the asset. Debt recovery – if you do not make an instalment plan for overdue debt or bill payments or take any other steps to repay money you owe, your provider may arrange for a debt collection service to recover the debt. Debt collectors are required by law to operate within strict guidelines in how they can contact you. If you are experiencing threatening or intimidating behaviour from a debt collector, you can make a complaint to the Australian Competition & Consumer Commission (ACCC) or your credit or service provider. What to do about debt recovery Unless you dispute a debt – and you can do this if you believe you don’t owe the money you’re asked to repay – it’s important to communicate clearly and honestly during all stages of a debt recovery process. If you don’t, it’s possible your credit provider will seek judgement from a court to issue a garnishee order to recover the debt directly from your bank accounts or your salary payments. The ATO can also take this action to claim unpaid taxes without seeking judgement from a court. How long can debts last? Unpaid debts can stay on your credit history for up to seven years, even once they’ve been paid in full. In most cases, debts are consider ‘statute-barred’ if no payment has been made on the debt within the last six years and there has been no court judgement regarding the debt. So, if you have an ‘old’ debt and receive a request for payment, seek legal … Read more

While you may have been putting off the money talk with your partner, matters of the bank account are very important. In fact, discussing your finances with a long or short-term partner, can save you uncomfortable conversations down the track, especially when you start to manage money together. While you don’t necessarily need to know about your partner’s morning coffee run, some of the basics to discuss could include: Money talk – their debts  If your partner is in debt, it’s important to know what you may be inheriting. While it might be a tough one to discuss, one in six consumers struggle with credit card debt in Australia alone[1], which means it’s a common conversation that needs to be had. According to a psychotherapist and couples therapist, one of the major money issues in a relationship is the perception of dishonesty. When we have a situation where one partner has racked up some credit card debt, without any disclosure, you’re dealing with more than money. The fact that this information was withheld, suggests the relationship may be facing issues around trust and security. Regardless of how hard the conversation might be, honesty is the only policy. If you have overspent or perhaps made a poor decision around finances, then be up front, open and honest. It’s an issue that you will have to work through together, and for the person who is carrying the secret, the release of stress in sharing is important for their own mental health. Get support as well, so you do not have to go through this alone. Working through the issue with a qualified counsellor you’re both comfortable with can help work through these threats in your relationship. Keep in mind that you are not legally responsible for repaying your partner’s debts, assuming they aren’t joint debt and you haven’t agreed on being a guarantor. You may however, find yourself taking on these debts, either directly or indirectly if you combine your finances in a longer term relationship. Money talk – defaults or bankruptcy The reality is, defaults or bankruptcy could impact you or your partner’s credit score and cash flow, not to mention your future plans with them. If you have joint accounts, then one partner’s credit rating can affect the other, which may determine how you manage money together. Many couples may find themselves wanting to buy a home together at some point in the future. With homeownership more often than not being accompanied by the need to borrow, understanding each other’s financial position when it comes to borrowing will be important. Money talk – financial goals Do you both have the same vision for the future? Do you want to travel the world while you partner wants to invest in shares? Do you both want to buy property or is one of you happy to rent for the foreseeable future? Having the money conversation early and knowing this upfront, could help you compromise or save you from heartache down the track. Managing money is a reality of everyday life and is not without its challenges, so you need to start making financial decisions that impact two of you, which adds another dimension to the decision making process. Having these conversations early and sharing your views and plans financially can only be a good thing. Creating a safe space for financial conversation is key. When we come together as a couple, we bring with us baggage from a previous life, particularly our childhood. If someone comes from a background of financial disadvantage, then you are likely to be more frugal with money. The key to every successful relationship is how we communicate with each other, having each other’s backs and creating a loving and supportive environment where no topic is off limits. Keep in mind that having difficult conversations is a key part of a relationship – being open and able to speak freely on a topic, such as how your partner’s spending could cause distress. Money talk – joint finances To combine or not combine – that is the question. Deciding whether or not to combine assets and finances or apply for joint loans can be quite complicated, which is why it’s important to identify the benefits of both: Pros for combining Knowing the complete picture for your joint finances and allowing you to strive to achieve joint financial goals. Equal access to funds, particularly in the case of an emergency. Cons for combining One partner’s credit score could affect the other, especially in joint asset or financial applications. Some people might see combining finances as a loss of independence. May cause strife in situations where each partner manages money differently and there’s yet to be agreement on a budget both are comfortable with. In situations where your partner has existing debts or has previously declared bankruptcy, it might be valuable to seek advice from lawyers, accountants and financial advisers on managing this. All is fair in love and war Having practical conversations about finances upfront can help you find a fair and comfortable way of managing your future with your partner – for better and for worse. As a relationship evolves and you begin living together, not having mapped out a plan on how you will deal with the bills and the sharing of finances is asking for trouble. If you are looking at moving in together and sharing a life, then coming to an agreement on money should be a priority. [1] https://asic.gov.au/about-asic/news-centre/find-a-media-release/2018-releases/18-201mr-asic-s-review-of-credit-cards-reveals-more-than-one-in-six-consumers-struggling-with-credit-card-debt/ Source: BT

You probably have a good idea of who you’d like to give your hard earned assets to when you’re gone. Making a Will can help ensure your assets are distributed the way you want. Many people see making a Will as something to do when they have children or other dependents to worry about. After all, they want to make sure that in the worst case scenario, their loved ones are well cared for. But what if that isn’t your life? What if you are single or if you are in a relationship that may not be classified as de facto or a spouse relationship? Do you still need a Will and what should it look like? Where there’s a Will, there’s a way A Will is a legal document setting out your wishes for the distribution of your assets after you die and who you would like to be responsible for carrying out your wishes. Typically, it needs to be a written document which you’ve signed, had witnessed by two people; and you need to be aged over 18 years old and considered to have the mental capacity to understand what you are doing for it to be considered valid. You should check whether your state or territory has any specific additional requirements to be valid. You can write a Will yourself using a kit – you can find a range online varying in price or use a solicitor. Bear in mind, just because you’ve written a Will and had it witnessed, doesn’t guarantee that it will be considered a valid document if it doesn’t meet legal requirements. Given the complexities, speaking to a solicitor may be helpful to ensure that your Will meets the necessary criteria to be considered valid and that you’ve accounted for everything you need to. No Will left behind The process and laws vary slightly from state to state if you die without leaving a Will (known as dying intestate). Typically, the Supreme Court appoints an administrator (often your next of kin) to arrange your funeral, collect your assets, establish a family tree using certificate evidence and distribute the assets across your next of kin after paying any debts and taxes. Your assets are distributed across your next of kin based on a specific formula. If you don’t have a legally recognised partner or any children, the order of priority is usually your parents, your siblings (or their children), grandparents, aunts and uncles, and then first cousins. In some instances, others can lay claim to your assets. For example, if you regularly volunteered at a charity or regularly donated, they may be able to petition the court for a portion of your estate. 3 reasons to write a Will There are a number of reasons to write a Will. Choose where your assets go and who executes your Will Maybe you wanted your best friend to have your collection of art or your furniture go to a particular charity. Or you were happy to have your assets divided amongst family but wanted a cousin to inherit the bulk to help with their medical bills. If you leave it to the legal process, it’s less likely that any of these wishes will come to light unless your family specifically know of them and are happy to forgo their legally allocated shares to make it happen. Dying intestate (without a Will) also means a court appointed administrator for your assets and organising your funeral. When you have a legally binding Will, you can make sure the person organising your funeral and distributing your assets is someone you trust to carry out what you wanted. For example, you might feel a certain family member is better suited to the pressures of managing your estate than the person a court might choose to appoint. Or the relationship you have with a particular person may mean you feel they would better understand your wishes. Not having a Will at very least can delay the distribution of your estate, which could be difficult depending on costs that may be incurred from your death – such as the funeral. A clear picture of your assets This is something that can actually be useful to you right now. Taking the time to write a Will can help you get across all your assets and debts – ranging from finances and investments to physical possessions. Understanding the complete picture can help you plan ahead for your own life (not just your death) and also manage any areas which might be a concern for you, through a strategy. Part of this might also include considering how any debts you’ve accrued would be paid in the event of your death. Usually, your assets are used to pay any debts first, before being distributed to your beneficiaries. Depending on your debts, there might be proceeds left for your loved ones – or not. Any remaining debt after your assets have been used to cover debt does not pass onto your beneficiaries unless the debt is a joint one (in which case, the joint partner to the debt would have to manage it). A financial adviser can help you evaluate this and whether there are strategies, like life insurance, you could consider to manage your debts and keep your assets for beneficiaries. Lessen the stress for your loved ones A court process is stressful but then consider what it might be like combined with the pressures of grief. Making a legally binding Will can take some strain off your loved ones in a very difficult time for them – losing you. And it might give you the opportunity to offer some comfort beyond the grave where you’ve chosen to make certain bequests. However you choose to approach writing a Will, make sure it meets your hopes for distributing your assets and remember it’s okay to change your mind and write a new Will at any stage through your life. As part of this, don’t forget your … Read more

Living off the income from investments is a dream for many Australians. Along the way, passive income can help cover school fees, fund holidays or pay for life’s little luxuries. Whether you’re just starting out or looking to diversify, here are three ways to invest for passive income, for different levels of risk appetite, investment experience and investment timeframes. Dividend investing Investing in companies that pay dividends is one of the most popular ways to generate passive income. Dividends are regular payments made to shareholders as a way of letting them share in a company’s profits. These can be paid in cash or additional shares; and they can provide a steady income stream alongside potential capital growth or be reinvested to help compound growth over the long term. While dividends are by no means limited to Australian shares, companies listed on Australia’s share market have historically paid relatively high dividend yields compared with those listed on other share markets and are more likely to pay dividends that are ‘fully franked’^. Australian dividends have been trending lower but there’s also the return from share price growth to consider over the long term. When a dividend is ‘franked’, it means the company has already paid tax on those profits, which is then taken into account when determining your tax bill. A dividend yield, which is an indicator of the return a dividend offers, is calculated by dividing the annual dividend by the current share price. So a $2 dividend paid on a $40 share equals a 5% yield. Dividends are not guaranteed, but for the top 500 companies that make up the Australian Stock Exchange’s All Ordinaries index, the dividend yield has averaged just over 4% over the past 40 years or so#. For some companies, the dividend yield may be significantly higher than the average. But looking at yield alone can be risky, as yields tend to go up when share prices go down. Instead, many dividend investors look for companies with a history of growing dividends and the ability to keep doing so in the future based on strong financial health. Risk: High Investment horizon: 7+ years For beginners: Consider dividend focused exchange traded funds (ETFs). These funds invest in a basket of dividend paying companies, offering diversification and ease of access and may include ‘high yield’ options. For experienced investors: Explore dividend growth strategies targeting companies with rising earnings and a commitment to increasing dividends over time. Or look into actively managed portfolios that aim to deliver income above the ASX 200 index yield, while maximising franking credits. You may wish to consult a financial adviser to help you explore dividend investing. Property (direct or indirect) Property has long been a favourite among Australians seeking passive income. Traditionally, this has meant buying a house or unit and renting it out. Rental income can provide steady cash flow, rising property values may deliver capital gains over time and there may also be tax breaks available to property investors. However, direct ownership comes with risks including periods when a property may be vacant, maintenance costs, a relative lack of liquidity (meaning it can take time to sell for a fair cash value) and the potential for overextending on debt. That’s where indirect property investments come in. Real estate investment trusts (REITs), property funds and property ETFs allow you to invest in commercial or residential property without owning it outright. These options are typically more liquid and diversified, though they can be more volatile. It is easier to value listed property trusts or REITs, as you can see what each unit is worth and they are subject to market listing rules. Unlisted property schemes are not listed on any share markets, which can make it harder to track the value of your investment. The Moneysmart website offers a checklist for assessing the potential risks when it comes to investing in listed and unlisted property schemes. Risk: Medium to high Investment timeframe: 7+ years For beginners: Listed REITs and property ETFs offer exposure to a wide range of properties with lower upfront costs and easier access. For experienced investors: Unlisted property funds may provide more stable returns and less price volatility, though they often require longer investment horizons and higher minimum investments. Bonds and fixed income Bonds and fixed income investments offer a more secure path to passive income, which may be particularly attractive for investors who are focused on preserving capital. Unlike shares, which offer part ownership of a company, bonds and fixed income are essentially loans to governments or companies that pay regular interest and often return your capital at maturity. They offer a set rate of interest to be paid at set intervals over a fixed period. Payments of a fixed income security are known in advance and remain fixed throughout the term. Popular versions include government bonds, corporate bonds, debentures – which are assessed by the issuer’s creditworthiness rather than secured against assets, and capital notes, which are also unsecured and tend to offer a higher interest rate (but have a lower repayment priority should the issuer default). While it’s possible to buy bonds as an individual, minimum investment amounts may be high, so bonds are often invested in via managed investment funds (within a super fund or separately) or ETFs, which may track a portfolio of government or corporate bonds. They tend to move in the opposite direction to interest rates, so if interest rates are falling, existing bond prices are likely to rise, but the yield on bonds for new investors will fall. While bonds are considered a defensive or low risk investment type, bond prices can fluctuate and there is some risk of losing your investment – for example, if a company issuing a bond later fails. Bonds have offered higher returns of late, although this coincides with higher market volatility. For example, over the past year, global bonds provided a return of 5.5%* — well above their 10-year average return of 1.9%. Australian bonds returned 6.8% or more than three times their 10-year return of 2.1%*. Risk: Low Investment timeframe: Generally 1-3 … Read more

You might have a regular accountant you see at tax time who helps you sort out what you owe the government, or if you’re lucky, what the government owes you. Sometimes they will make recommendations on how to reduce your tax for the next year. However, for many, there is more that can be done to improve their financial position. And in many cases, this insight comes from a financial adviser. Many financial planning practices are now working with accountants, mortgage brokers, insurance professionals and in some cases, lawyers. Your adviser is still often your main contact in your financial matters but many have practices that act as a concierge service providing referrals to other professionals. As complexities arise in personal circumstances, your adviser is able to refer you to an aged care specialist if they don’t provide the service themselves or to a lawyer if your Will needs updating or you need a power of attorney or enduring power of attorney. If you’re going through a divorce or something complex, a whole team might be warranted, which may include a financial adviser, lawyer, accountant, counsellor, mediator and even mortgage broker or banker. Once you have a good adviser or other professional, it is likely that they can refer you to others who have similar styles and values. If you’re interested in seeing an adviser there are several ways to find one. One way is through LinkedIn, where many advisers promote their professional profiles. And personal recommendations from friends and family are always valuable. Make sure you’ve got the right team together to help you achieve the financial future you desire.   Source: Money and Life