Innholdsfortegnelse for April 2025 i Money Magazine

The subject of money – how to save it, invest it and spend it – is as broad as the universe is wide. And it’s often not until our editorial team decides to home in on a specific subject that we get a full picture of the mechanisms underpinning it. In this April issue, it’s insurance, with a special focus on life insurance. Life insurance is basically the desire to relieve yourself and others of debt in the event of an unfortunate occurrence, be it death, disability or the loss of a job. It’s available in three main ways: buying through a super fund, direct from an insurer or through a financial adviser, in what’s termed advised insurance. The first question to ask yourself is, Should I take out insurance?…

Anyone running an ice-cream shop knows there are always a few flavours that get consistent sales. The owner would be foolish to take them off the menu. Then there are flavours that come and go. As a child I was an ardent fan of chocolate mint for a time, before going back to vanilla. I thought my choices were the result of independent decision making. It is only now that I study investment funds flows for a living that I realise that my ice-cream decision was not independent. I was following the crowd. This is also something that ice-cream shop owners know. They keep selling the familiar and rotate other flavours in and out of the line-up. Funds managers do the same thing. When something is out of favour, they…

As we head towards tax season, many people are turning their minds towards the preparation of their 2025 return. It’s well known that the cost of getting your tax return prepared by a tax agent is a tax-deductible expense. Less well known is that as well as the cost of paying your agent to prepare your return, you can also claim any incidental costs that relate to having your return prepared, including accommodation, meals, taxi fares and travel insurance. Great care needs to be taken when claiming those costs, however. Guidance issued by the Australian Taxation Office (ATO) highlights that any such costs are only fully deductible where the sole purpose of the trip is to meet your tax agent. If you combine the trip with a private purpose, such…

66 The number of new ETFs launched in Australia in 2024. Source: Betashares The exchange traded fund (ETF) market has continued to grow at a rapid rate, with more than $65 billion of inflows recorded in 2024. As a result, the total assets under management in the sector reached $246.3 billion at the end of 2024, according to an analysis from Betashares. It suggests that the market could surpass the $300 billion mark by the end of this year, depending on conditions. Whether that milestone is reached, of course, remains to be seen. But it may well be helped by the host of new ETFs that have become available to Australian investors so far in 2025. In late February, Betashares launched two new cryptocurrency funds: a Bitcoin ETF and an Ethereum…

Despite its relative proximity in the scheme of foreign cities, Whangarei is not a place many Australians will be too familiar with. Nestled on the west coast at the top of the North Island, it’s New Zealand’s northernmost city and home to roughly 55,000 people. It’s where Jordan Cullen was born. And it’s not hard to imagine that one day, Jordan’s name could appear in the notable people section of Whangarei’s Wikipedia page. Right alongside Michael Hill (yes, that Michael Hill). Cullen’s family left New Zealand when he was young and settled 2500 kilometres away on a dairy farm near the town of Shepparton in northern Victoria. Like so many others, as Jordan grew older he knew that he wasn’t destined to stay on the farm. “Farming was not for…

Hi Paul, I’m 16 and have just started my first job at a small business. I work three hours a week after school and on alternating weekends. My pay comes to around $330 a fortnight, and on top of that I was delighted to find out that I would also be paid superannuation. The super guarantee comes to around $200 a quarter for me. To take advantage of the government co-contribution, I am also making additional post-tax contributions, which I expect to reach $600 this financial year. Although it is quite far down the track, I am hoping for a modest but comfortable retirement. Outside super, I invest personally through Stockspot and Betashares, loosely following The Barefoot Investor ‘buckets’ strategy for investing, saving and giving. So, my question is, considering…

Technology is shaking up the insurance industry, cutting costs and improving efficiency – and hopefully benefitting policy holders. ‘Insurtechs’ to watch include: Flip Insurance Instant accident cover For adrenaline junkies, Flip offers on-demand accident coverage with no waiting periods. Designed for high-risk activities, such as bungee jumping, skateboarding, and extreme sports, Flip lets users activate coverage instantly – whether for a single day or a full year. This flexible model ensures you only pay for coverage when you need it, making it an affordable alternative for thrill-seekers who want protection without committing to a full-time policy. Honey Insurance Home and contents The company uses smart technology to reduce claims and reward proactive homeowners. Customers who opt into Honey’s Smart Home Program receive complimentary sensors that detect water leaks, smoke alarms…

Should families stay together in the same home? For some cultures, it is a normal way of life. Not only does living together make good financial sense, by pooling the big living costs such as housing, childcare and day-to-day bills, it can be enriching and life affirming for young and old family members to cohabit. Multigenerational living is increasingly popular. Around 20% of Australians live with two or more generations of related adults in the one home. In Sydney, with its high property prices, 25% live in extended families, according to the UNSW’s City Futures Research Centre. For people from the Middle East, Asia and southern Europe, sharing with grandparents and young adults is common and it is increasingly popular in other cultures, too. Older non-working grandparents and parents can…

When Lawrence, 39, set out to buy his first home with his partner in Creswick, Victoria, he faced the same challenge as many Australians: affordability. So, he turned to a prefabricated home. “We were budget constrained like every first-home-buying couple,” says Lawrence. “We found that factory-built homes are significantly more efficient to construct and are competitively priced.” He also wanted practicality. His prefab home, built on stumps, allowed for future renovations and better weather protection. Lawrence says building a prefab home follows a similar permit process as traditional construction but is much quicker. “Once it hit the site, the house was ‘finished’ inside a week. Factory time was about six weeks, but there was a bit of a wait for a build slot.” Since moving in, he’s been impressed with…

The five regional areas attracting the most movers are: 1 Sunshine Coast, Qld The combination of natural coastal and bushland beauty, a relaxed lifestyle, job opportunities, quality education and recreational activities makes it a compelling choice for people looking to relocate. It’s less than two hours from Brisbane by car and there is a train line. Population growth has seen median house prices jump by 70% in five years to $1,055,104, according to CoreLogic’s November 2024 Regional Market Update. Median rentals are up 44.4% over the same period to $760 a week. 2 Greater Geelong, Vic Offering a relaxed lifestyle close to beaches and the countryside, it’s the second largest city in Victoria and is only about an hour’s commute by car to Melbourne. There is also a train line.…

Invesco Australian Smaller Companies Aims to provide long-term capital growth and distributions by investing in companies predominantly outside the S&P/ASX 100 Index. Its proprietary investment model seeks to unlock persistent long-term excess returns. UBS Microcap Fund Actively manages a portfolio of 35 to 65 Australian microcap companies across a range on sectors. It looks to take advantage of the uncertain economic outlook, position the portfolio towards companies with sustainable growth and expects to capitalise on understanding structural changes in driving long-term outperformance. Vanguard MSCI Australian Small Companies Index ETF (VSO) Seeks to track the return of the MSCI Australian Shares Small Cap Index before fees, expenses and tax. Sectors include industrials, materials and consumer discretionary.…

Spiders, fossil fuels, governments and company delistings generally get poor press in Australia. They’re seen as irredeemably bad. That’s harsh, particularly for spiders, which are vital to a healthy ecosystem. As are delistings. Admittedly, being tangled in the web of a company that is removed from a public market can be sticky. But it doesn’t always result in a painful bite. According to the deListed Australia website (delisted.com.au), the go-to source for information on companies that have been removed from public exchanges in Australia, about 6500 companies have delisted domestically over the past 100 or so years. That’s an average of 65 a year across all listing venues. Clearly, delistings are common and a normal feature of a dynamic market. But some investors worry that delistings have become too common,…

1800RESPECT A 24-hour national sexual assault, family and domestic violence counselling line for anyone who has experienced, or is at risk of, family and domestic violence and/or sexual assault. 1800 737 732, 1800respect.org.au 13Yarn The first national crisis support line for mob who are feeling overwhelmed or having difficulty coping. It offers a confidential one-on-one talking opportunity with a Lifeline-trained Aboriginal and Torres Strait Islander crisis supporter. 139 276, 13yarn.org.au Elder Abuse Helpline Free information and support for people who experience or witness the abuse of an older person. Operating hours vary. 1800 353 374 Men’s Referral Service This service from No to Violence offers assistance, information and counselling to help men change their abusive behaviour. 1300 766 49, ntv.org.au/get-help Lifeline Anyone experiencing a personal crisis or thinking about suicide…

Every now and then, a mythical creature appears in the startup world – a unicorn. These privately held companies, valued at $US1 billion ($1.6 billion) or more, are the gold standard in business, and Australia has some shining examples. While ‘Aussie-corns’ such as Airwallex (valued at $8.7 billion), Immutable ($4 billion) and SafetyCulture ($2.5 billion) have emerged in recent years, Canva, the web tool, is perhaps the prettiest of them all. The design titan has surged to a valuation of $63 billion, acquiring the AI tool Leonardo.Ai, reaching 200 million users and expanding its leadership team. If Canva goes public, it will join Atlassian and Judo Bank as Aussie exicorns – companies that successfully launched on the market. Had you invested $10,000 in Atlassian at its IPO, it would be…

BOOK OF THE MONTH WORTHY & WEALTHY by Emma Lagerlow (Grammar Factory, RRP $24.95) This self-development book is the brainchild of wealth and mindset coach Emma Lagerlow, who explores what she refers to as the five pillars of a worthy and wealthy life: self-worth, purpose, wellbeing, financial empowerment and time freedom. The author invites the reader to redefine wealth: true wealth is more than just money. Worthy & Wealthy offers a holistic approach to living a fulfilled life beyond money, it’s about cultivating a rich, meaningful life that nurtures your spirit and enhances your overall wellbeing. Ten readers can win a copy. In 25 words or less, tell us what ‘wealth’ means to you. Enter online at moneymag.com.au/win or send entries to Worthy & Wealthy, Money, Level 7, 55 Clarence…

Westpac and NAB have introduced a new feature allowing homeowners to link up to 10 offset accounts to eligible home loans, making it easier to reduce interest payments. An offset account is a transaction account linked to a mortgage. The balance offsets the loan principal, reducing the amount of interest charged. A savings account, on the other hand, earns interest and is subject to tax. For example, if your home loan interest rate is 6% and you have $10,000 in an offset account, you save $600 per year on interest. If that same $10,000 was in a savings account earning 6%, you’d make $600 in interest, but after tax (assuming a 30% rate), you’d only keep $420. The offset account effectively provides a tax-free return equal to your mortgage rate.…

Frances would rather give her daughter $10k for a home, not a wedding. Flashy celebrations don’t make sense, but they’re fun Q What are your thoughts about paying for a child’s wedding, Paul? We have two adult daughters. One is engaged. We have some money put aside and could contribute about $10,000 to the wedding. But I would rather see them put the money into a home deposit. I think the security of their own home should take precedence over a big, flashy day. You are not going to get any argument from me, Frances. Personally, I reckon a wedding with a few drinks with family and friends in a park or a pub is a great idea. I’m also very keen to be cremated in a cardboard coffin. But…

Hang on, Nathan, are you 16 or 60? I’ve spent much of my life trying to do my little bit, along with so many others, to improve financial literacy in our community. For many years I was chair of the Australian government’s Financial Literacy Board and today I chair Ecstra Foundation. This received quite substantial funds to promote and build financial literacy. Our major program, Talk Money, runs in schools. These interactive workshops are free to schools, are delivered in class by our expert facilitators and are aligned to the Australian curriculum and the National Consumer and Financial Literacy Framework. If you, or Money readers, are interested in the work Ecstra does to build financial literacy, just search online for Ecstra Foundation. We provide grants to organisations who are building…

When searching for the ‘best deal’ on insurance, some people focus on price. You compare policies, find one that’s $30 cheaper per month and lock it in. Bingo, you think – that’s your Netflix subscription covered, 4K and all. But with insurance, cheaper isn’t always better. “The biggest mistake people make is always going for the cheapest option,” says Angelo Azar, chief operating officer at Honey Insurance, which sells home and contents insurance. Azar understands the temptation – when money is tight, cutting costs feels smart. But because insurance is something you pay for but hope never to use, it’s easy to overlook its real purpose. Think of insurance as a tightrope walk. Price is on one side, coverage is on the other. Lean too far toward price and you…

While there was a collective sigh of relief from borrowers when the Reserve Bank (RBA) finally announced an interest rate cut in February, from 4.35% to 4.10%, there were no guarantees when further cuts would come or how low rates could go. In fact, RBA governor Michele Bullock was quick to quell expectations that rates would fall quickly. “The market is expecting quite a few more interest rate cuts in the middle of next year, about three more on top of this,” she said. “Whether or not that eventuates is going to depend very much on the data. Our feeling at the moment is that that is far too confident.” That said, most economists were still predicting further cuts, with the next cut to occur in April or May. THE…

For an industry at housing’s cutting edge, prefab construction goes back a way. As early as 43AD, the Romans used prefab components to quickly build forts in newly conquered Britain. In 1889, Gustave Eiffel’s temporary tower, built for the world’s fair held in Paris and supposed to be destroyed after 20 years, was assembled using prefabricated iron. It’s no wonder prefab is often called ‘architecture’s oldest new idea’. Mathew Aitchison, professor of architecture at Monash University and CEO of Building 4.0 CRC, a construction research initiative co-funded by the Federal government, says Australia has been doing prefab on and off since the mid-19th century. “It crops up cyclically, because it solves particular needs at particular times.” During the 1850s gold rush, prefab homes were shipped in, with Victoria home to…

The biggest mistake people make in the lead-up to retirement is not giving their super the time and attention it deserves. After decades of contributing to it, people exit the workforce with some trepidation, wondering if their account-based pension will last the distance. Adjusting to life without a regular salary can be challenging. People begin to worry whether their retirement savings will give them a decent lifestyle and security, cover them in the event of emergencies, survive falling markets and, finally, pay for aged care. Many people regret not having got to grips with their super earlier and made the most of it, instead of leaving it on automatic pilot. Super is a low-fee, well-regulated, taxadvantaged investment, but it’s also up to individuals to make the most of it. Here…

• If a company chooses to delist, the ASX will generally make it a condition that investors have a period to sell or be cashed out. • In the case of mergers and acquisitions, investors generally have a choice to transfer their shares to the new company or sell their shares to the acquirer. • Sometimes a share buyback or other facility will be offered to allow shareholders to sell or redeem their shares for a period up to and/or following the delisting. • If a company is moving its listing to another jurisdiction, the ASX will consider if the shares are ‘readily able’ to be traded on that other exchange, including at a fair price. • Sometimes shareholders may have to trade off-market and over-the-counter, which provides less transparency…

The boom-and-bust cycles of commodities are nothing new, but few have illustrated the extremes quite as vividly as lithium. Investors who piled in when lithium was the darling of the market enjoyed amazing gains. But those who held found out the hard way that gravity still applies to commodity markets. In 2021, lithium prices soared, reaching more than $US80 ($129) a kilogram in late 2022. Many assumed it was a one-way bet. Fast-forward to today and prices have crashed to less than $US15 ($24) a kilogram. The lesson? Commodity markets are inherently cyclical, and even the most compelling long-term demand story doesn’t guarantee sustained high prices. Of course, lithium isn’t the only example. Oil, iron ore, gold – each has experienced spectacular rallies and just as spectacular declines. The fundamental…

The tables on these pages contain data and information to help you compare managed funds, which are pooled funds managed professionally by investment experts. Managed funds displayed in these tables are multi-sector or asset class specific. Multi-sector managed funds invest across a diversified mix of asset types spanning equities, property, bonds, cash, infrastructure, private equity and alternatives. Managed funds are normally set up as unit trusts. You may be able to invest in them directly or through a platform. These products may be recommended to you by a financial adviser. The performance results displayed are the annualised investment returns each managed fund has delivered after taking into account taxes paid by the unit trust and investment fees. Research was prepared by Rainmaker Information. For more information see rainmaker.com.au. The table…

TOM WATSON Senior journalist It won’t come as a surprise to learn that as a 34-year-old who has spent most of the past decade working in consumer finance, I regularly check my super. It’s part of a monthly review of my savings, investments and mortgage. I make sure that both employer and personal super contributions have gone through. I wish I could say I was just as diligent about checking my insurance in super, though. See Tom’s story on green loans on page 62. POOJA ANTIL Research manager As a research manager cum analyst at Rainmaker, I look at my superannuation fund way more than the average person would. Thanks to my job, I automatically find out my fund’s performance on a monthly basis. However, I consciously log into my…

Recent headlines highlighting management shortfalls in founder-led companies underscore the need for rigorous corporate governance. While founder-led companies often deliver superior returns for investors, related risks can reduce shareholder value, and it is essential that investors are clear-eyed when assessing the risks and benefits of such ownership structures. Founder-led companies possess distinct advantages that contribute to their impressive performance compared with professionally managed companies. Founders typically have significant ownership stakes, aligning their interests with those of shareholders. This alignment encourages long-term value creation as the company’s financial success is tied to the founder’s success. However, to benefit from the range of positive outcomes of investing in founder-led companies including the founder’s alignment with shareholders and deep expertise, shareholders must remain vigilant in overseeing corporate governance. To this end, investors should…

At this point, it isn’t a competition between Coles and Woolworths – it’s a knockout. Their interim results paint a clear picture: Coles outpaced Woolworths in sales growth, expanded market share and improved profitability. Woolies was hit by last year’s 17-day strike, which cost it $240 million in lost sales and had a $95 million impact on operating profits. We expect margins will improve and Woolworths’ size advantage should mean it can top Coles’ margin when it has its act together. In response, the company has aggressively lowered prices and increased promotions. This starts to make sense given that Woolworths appointed a new CEO, Amanda Bardwell, in September. New chiefs tend to like weak results early in their tenure. This sets a low baseline, making future improvements appear more impressive,…

BEST-VALUE INSURANCE IN SUPER WINNERS EQUIP SUPER + METLIFE Both affordable and flexible, cover is adjusted to members’ life stages, providing high levels of protection when it is needed most. Around eight million Australians have insurance through their super. As well as providing for their members’ future, this makes super funds a valuable source of financial protection. But it’s still important to look for value because premiums come out of retirement savings. So, what you pay today can impact your retirement income tomorrow. “We recognise the critical importance of both protecting and growing our members’ retirement savings, while ensuring they can continue to contribute to them throughout their life,” says Carrie Norman, Equip Super’s chief experience officer. “This is why insurance is an integral part of our overall offering. Placing…

1 What questions should potential clients ask financial advisers to ascertain if the person is right for them? People should feel comfortable asking any and all questions that will help them come to the conclusion that this planner is right for them. Some examples include: • What services do they offer and what product areas can they advise on? • Who licences them (AFSL number and name) and who owns the company they work for? • Do they have any links to product providers and, if so, how do they manage any potential conflicts? • How they work with clients. • How they work with clients’ other professionals (such as lawyers, accountants, etc). • How they charge. • How they manage privacy and cybersecurity. • How they deal with complaints.…

The lure of ‘sea’ and ‘tree’ changes remains strong, with net migration to regional areas reaching a two-year high as more Australians relocate for more affordable housing, job opportunities and an improved quality of life. The latest Regional Movers Index (RMI) shows a significant increase in city-to-region migration, with 35.6% more people going from capital cities to regional areas then in the opposite direction. In the three months to September 2024, city-to-region relocations were 19.8% above the pre-pandemic average and 1.8% above the average recorded during the height of the lockdowns. Popular coastal centres continue to attract the largest share of movers, with the Sunshine Coast in Queensland, Greater Geelong in Victoria and Lake Macquarie in NSW securing the top three spots by net internal migration inflows, says the RMI,…

One of the themes that has been circulating through the investor landscape over the past six months is Australian small capitalisation equities. Since the market correction of 2022 – on the back of the Russia-Ukraine war plus the subsequent inflation outbreak leading to rising global bond yields – and subsequent recovery, Australian small cap equities have materially underperformed their larger peers. From September 1, 2022, to February 28, 2025, the S&P/ASX Small Ords Index has delivered a return of 6.9%pa compared with the 12.9%pa from the S&P/ASX 200 Index over the same period. Another way to highlight the small cap underperformance is through valuations. The small cap equities index forward price earnings (PE) multiple has traded sideways while the large cap index forward PE multiple has re-rated from a low…

After a strong run of earnings growth, the insurance sector is no longer the bargain it once was. With risks mounting, analysts say investors need to be selective. Filip Tortevski, Wealth Within: “Hold and watch for buying opportunities.” “Right now, broadly speaking, Australian insurance stocks are a hold. However, this may change to buy as the economy picks up. That said, it is about stock selection and, like GDG, there are diamonds just waiting to be found.” Anthony Golowenko, MLC Asset Management: “Selectively accumulate.” “We see QBE, Suncorp and Medibank Private as preferred insurance sector holdings,” he says. “Among the broader financials, these companies offer less demanding valuations, solid gross dividends and constructive profitability and growth outlook. We’re likely to be selectively adding to positions, making this perhaps a ‘selectively…

I ask for ‘stupid questions’ in the Marcus Today newsletter, and I get them. Here’s one: “I have $10,000 and want to turn it into $1 million. How do I do it?” You’re thinking, ‘How stupid’, but it’s a really good question. So, let’s try to answer it. The first thing to do is to accept that you will not achieve this goal without being prepared to lose all your money. You will not achieve it in the bank, in cash, in property or in managed funds. There is no ‘average’ return in any asset class that will suit you. You need to win the lottery or win some long-odds bet at the bookies. Outside of that, you have one obvious option: build a business. I have handled a lot…

Tell us about your early years. What were your formative money experiences? When I was younger, I loved to hustle for money. I was the kid that was delivering pamphlets at eight years old and hustling for money in the canteen line. I’d write to surf companies featured in Tracks magazine asking for free stickers to sell at school. At 17, I found a hack where I’d buy Burton snowboards off US eBay and resell them on Australian eBay before they were delivered to my house for an instant profit. I was a dreamer – but I enjoyed the game of finding a way to make money. What was your first job and how much did you earn? It was at my local supermarket, Berkeley Vale Superette on the NSW…

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