Innholdsfortegnelse for February 2025 i Money Magazine

Behind every joke about Boomers and property riches there is a deeper story to be told. Mine starts with my grandfather, a sheep shearer in New Zealand. His son, my father, was one of five and left school at 17 to provide income for his family. Through hard work, he rose from mail room to teller to management at a bank. My parents were good enough savers to buy a house in the 1970s; they then mortgaged themselves to the hilt in the '80s to buy an investment unit. Back then some things were easier: the average price of a property was three times the average annual wage (now it's about seven in NZ, more than nine in Australia). But some things were harder: after they bought, interest rates rose…

The world's focus in November 2024 turned to the US and the presidential election. A lesser-known fact is that there were more than 60 elections in 2024 affecting half the planet's population. They ranged from India, where 1.5 billion people were impacted, to the tiny nation of Tuvalu, with just over 11,000 people. Elections were also held in the European Union, Indonesia, Pakistan, Bangladesh, Sri Lanka, Taiwan, El Salvador, Finland, Azerbaijan, Belarus, Senegal, Russia, Mexico, Iran, UK, South Africa, South Korea, Algeria and Venezuela. Not all elections are fair and free by our democratic standards. In some instances, opponents of the incumbents are frequently harassed, intimidated and imprisoned. Time magazine has a ‘freedom and fairness’ score, ranking elections between zero (the worst) and one (the best). South Korea, the UK…

The Federal government is toughening the rules that apply foreign resident capital gains tax withholding (FRCGTW). The rate of tax to be withheld is increasing and the threshold is disappearing, meaning that more transactions will be caught by the tax. When a foreign resident sells Australian real estate, a percentage of the sale value is withheld and remitted to the tax office. This withholding tax ensures that foreign residents pay their fair share of tax on any capital gains from selling Australian property. Initially introduced in 2016, the rule required anyone buying property worth $750,000 or more from a foreign resident to withhold 12.5% unless the seller provided a withholding clearance certificate. The changes will apply to contracts entered on and after January 1, 2025. Under the changes: • the…

Australian travellers are on the cusp of significant change with the release of the draft Aviation Customer Rights Charter by the Federal government. This initiative, open for public consultation until February 28, seeks to address longstanding frustrations with airline policies and to give consumers greater clarity and fairness. Comments can be made on the Department of Infrastructure website (search for ‘aviation rights charter'). The charter proposes that customers have the right to: • dignified and respectful treatment in an accessible and inclusive environment; • accurate, timely and accessible information and customer service; • prompt, fair remedies and support during and after cancellations and disruptions; • safe and timely baggage handling and fair remedies for damage and delays; and • protection of their personal information. Rosie Thomas, director of campaigns at consumer…

This appears to be shaping up as a broadly positive year for fixed-interest investments such as bonds, according to a forecast by Janus Henderson Investors. The global asset manager is optimistic that the early shoots of a pro-growth environment are beginning to show, thanks to more beneficial fiscal and monetary policy settings as well as easing inflation. That said, investors are still being advised to stay tuned to potential risks such as growth disparity, geopolitical tensions and general market volatility. “While we still expect uneven growth across regions and industries, in our assessment, the year ahead represents a positive one for fixed-interest investors in both the rates and credit context,” says Jay Sivapalan, head of Australian fixed interest at Janus Henderson. “We feel that a proactive and constructive stance to…

THE BIG PICTURE 2025 This will likely be a year of mixed performance, with strong sectoral opportunities in materials, technology, small-cap financials and real estate, while sectors such as consumer staples and telcos may underperform. The inflation question With drivers such as wage price inflation, retail spending, services inflation and high house prices remaining sticky in 2023 and 2024, the outlook for rate cuts was dim as the Reserve Bank took a more cautious approach to lowering the nation's cash rate than the US, which also had a more aggressive rate-hike strategy. However, in 2025, we expect key inflation drivers will continue to moderate, paving the way for the RBA to cut interest rates and ease the cost-of-living pressures. While these drivers are showing signs of easing, it is still…

Sigma Healthcare (ASX: SIG) is a leading wholesale distributor of pharmaceutical goods. It rose to the forefront of investor minds in 2024 for its successful bid to merge with privately owned Chemist Warehouse for a whopping $700 million in cash, creating Australia's largest pharmacy company. We are approaching Sigma's full-year results period in March, so investors will be eagerly awaiting the sales results of the past 12 months and projected financial gains from the merger. Mesoblast (MSB) is rapidly rising to the top of the healthcare producers list with recent Food and Drug Administration approval of the company's drug candidate Ryoncil, the first treatment in the US for mesenchymal stem cell therapy. This comes after more than four years and two prior rejections of the drug. Mesoblast is a biotechnology…

A peaceful departure “We had one lady, approved for voluntary assisted dying, who wished to die in her coffin. She decorated her coffin, took it home and placed the cool plate underneath. She took her medicine and died in her coffin. And then the family had a vigil around her. It was a beautiful experience that was what the family and the lady wanted.” – Sam Clowes, Tender Funerals. A volcanic tribute “A travel journalist, passionate about Hawaii, wanted a distinctive farewell. His ashes were placed within a tiki, a wooden likeness of himself. This symbolic vessel was then thrown into an active volcano, accompanied by a tequila offering to appease the local gods. His loved ones danced at the base of the volcano to his favourite band.” – Sam…

You don't want to put off the aged-care assessment process. Once you know you or your elderly parents can't cope without extra home help, start the ball rolling. It can take a long time between applying for help and the help arriving. There are a few steps each with a wait time. In September last year, about 76,000 people were waiting to receive a home-care package, while more than 273,000 were receiving some sort of home care. Yet many elderly people put off the aged-care assessment. For example, my mother didn't want anyone she didn't know in her home. Others expect – unrealistically – that family and friends will step up and help. What is sometimes missed by stoic elderly parents is that home care helps them to be independent…

Are you planning to trade your backyard for a balcony? Undoubtedly, more of us are considering living in an apartment, with affordability a key driver of this trend as house prices and rentals have soared. For first home buyers desperate to get onto the property ladder, apartments and other strata developments offer a cheaper alternative, but it's important to ensure you're not buying a lemon. The disastrous structural problems at Mascot Towers and Opal Tower in Sydney are extreme examples of what can go wrong with high-rise apartment buildings. But even more worrying is that a NSW government strata survey has revealed that 53% of apartments registered from 2016 to 2022 have at least one serious defect. And experts say this is likely to be replicated in other States. With…

Global X Physical Gold ETF The ETF (ASX: GOLD) offers a simple way to invest in physical gold. It is the largest and most liquid gold-backed exchange traded product in Australia and delivers investors returns mirroring the growth in the Australian dollar gold price. Aoris International Fund This highly concentrated portfolio of high-quality, wealth-creating businesses is run by prudent and capable management teams. The strategy owns a maximum of 15 companies, which means the team has to be very disciplined with its quality criteria and price it is willing to pay. Man AHL Alpha Fund A systematic, statistically based investment strategy exploits technical or price-driven signals across a diverse range of global markets. The main strategy used is trend following: price trends (up or down) or repeatable patterns in the…

Source: Rainmaker Information. Data sourced October 31, 2024. *Numbers stated here depict averages, other than the Rank column, which is the total number of funds in the category For any queries on these tables, please contact info@rainmaker.com.au. 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…

PODCAST OF THE MONTH FRIENDS WITH MONEY #185: BEST OF THE BEST Guest: Vanessa Walker Hosted by: Michelle Baltazar Each year, the December-January issue of Money features the Best of the Best awards, and each year the awards showcase the best-value financial products, telcos, cars and even wines and books. In this podcast, Money‘s Michelle Baltazer and Vanessa Walker reveal the Best of the Best award winners for 2025. Here's your chance to save money by finding out who is offering the best internet and mobile deals, and which are the best super funds, bank accounts, brokers and ETFs in Australia. This is one podcast that you don't want to miss. SCAN THIS CODE TO ACCESS ALL OUR FRIENDS WITH MONEY PODCASTS NEWS BITES PayPal's Honey, a popular coupon finder,…

Nearly one in two Australians is interested in seeking help from a financial adviser. Many of them are looking for assistance in establishing an investment strategy. That's according to a survey conducted by Investment Trends, which found that 48% of people are considering using an adviser, compared with 45% who aren't and 7% who already use one. When asked about the type of advice they are interested in, around a third of respondents said that they are looking for assistance in developing an investment strategy, while a similar number want help making their money go the distance during retirement. The research also found that most Australians aren't interested in ongoing advice offered with traditional full-service models. Instead, more than half of respondents prefer the idea of one-off sessions with an…

We might not be able to appreciate it at the time, but every so often in life there comes a major turning point. A sliding doors moment. For Mike Anderson, one of those moments came in his mid-20s. He was working in the coal mining industry at the time and bringing in a very decent salary, but he knew it wasn't a path that he wanted to follow forever. “I always saw myself getting out at some point, because I didn't really like taking instructions from people or being bossed around or working to a clock. I've always had a bit of an entrepreneurial streak, too. My first business was when I was 12, washing cars, which I ended up franchising by getting other kids in the neighbourhood to wash…

CASE STUDY Finally I have a grandchild! He is 10 days old and will probably be the one and only. I want to set up an account that I will pay $100 a week into. What is your recommendation? I was thinking maybe Vanguard. He won't have access until his 21st birthday as I want this to help him get into the property market when he is older. I have been saving $100 a week since I knew about the pregnancy, so I have $4100 to start with, but can easily add more to take it up to $5000. HAVE A QUESTION? If you have a question you'd like Paul to answer, email money@moneymag.com.au or write to Money, Level 7, 55 Clarence Street, Sydney NSW 2000. Questions need to be…

Once seen as a more laidback and much more affordable alternative to Sydney or Melbourne, Brisbane has evolved into a hotspot for migration, investment and lifestyle-driven upgrades. Throw in strong economic fundamentals, a wave of infrastructure projects and the 2032 Olympics on the horizon, and it's easy to see why buyers and investors have flocked to the Sunshine State and are likely to continue to do so. After a stellar 2024 – dwelling values hit a new high after double-digit growth to rank second in the country, behind Sydney – affordability pressures were bound to bite. And they did in the final months of the year as growth rates slowed. Still, demand remains the backbone of Brisbane's resilience as buyers are drawn to the city's mix of economic opportunities and…

The Apple Isle continues to charm tourists and climate-conscious migrants, drawn to its temperate lifestyle and natural beauty. But beneath the idyllic image, the property market tells a more nuanced story. Hobart's dwelling values are down more than 12% from their March 2022 peak, making it the second most affordable capital. Regional Tasmania has held up better, with values slipping about 3% in the same period but climbing 92% over the past decade, thanks to local economic strength, affordability and infrastructure projects. Tasmania's 2025 property position will likely be defined by weak population growth and economic challenges. But improving affordability and targeted incentives present opportunities for first-home buyers and investors. Hobart has struggled to regain momentum, finishing 2024 among the few capitals to record a decline in median dwelling values.…

Market performance: The S&P/ASX 200 is expected to face a relatively flat start to 2025, with inflationary pressures and interest rate-cut outlook dominating early months. Growth is likely to accelerate later in the year, with materials, tech and real estate sectors poised to benefit from improving economic conditions. Inflation and interest rates: These will remain key themes, especially early in the year. Any indication of Reserve Bank rate cuts could provide a tailwind for growth stocks. Global recovery: A potential recovery in China, along with a weaker US dollar, could support demand for Australia's materials and commodities. Geopolitical risks: Ongoing tensions in the Middle East and with Russia, as well as shifts in US leadership, could introduce market volatility. Investment strategy Focus on sectors such as materials, tech, small-cap diversified…

When his mum died, Craig Hull, a seasoned professional in the funeral industry, experienced the profound impact of loss first-hand. “I'm usually on the other side of memorials, so it felt strange,” says Hull, founder of Ashes to Ashes, a fireworks funeral service. The seed for Ashes to Ashes was sown during a pivotal moment in Hull's life. A former circus performer, in 2000 he took part in the Sydney Olympics opening ceremony. When a fellow performer passed away, a unique celebration of his life was needed. “His partner wanted to sprinkle his ashes around the Olympic stadium. I said, why don't you share some with me?” Being a trapezist, Hull's was able to release these ashes mid-flight over the performance area. It was a unique way to remember his…

My aunt was as sharp as a tack and doing nicely with home care once a week in her retirement village unit. In her early 90s, she was most comfortable at home, wanting to live and die there. A home carer helped with cleaning, podiatry and shopping for a few hours once a week. Then her doctor said she needed to wear tight, elasticised stockings during the day to help her circulation. But they were impossible for her to put on and take off every day without help. Her home-care level only provided morning and afternoon support on some days. So, she either had to risk wearing them only three days a week or enter a nursing home. When she had a cancerous growth removed from her foot and had…

From the end of 2019 through to early 2021, the online brokerage Robinhood grew from just over five million accounts to 18 million. That means roughly 13 million people – one out of every 25 Americans – opened a new account in 15 months. In the first quarter of 2021, those 18 million customers traded stocks, options and cryptocurrencies an average of 7.6 million times a day. A Singapore-based online brokerage, Moomoo, reported in 2021 that its younger customers were trading an average of more than 140 times a year. According to Massachusetts regulators, Robinhood allowed one customer with no investment experience to make 12,748 trades in just over six months – an average of about 92 trades a day. Even people who didn't trade as if their underpants were…

There's no better time for a thorough check of your super than the beginning of the year while you're feeling refreshed from the holiday break and ready to take on the world. Setting time aside to make sure your super is up to scratch invariably pays off. Basically, you want to know it's performing well, your insurance is in order and all your personal details are correct and up to date. Here's a checklist to help you along. 1 The first thing to check is whether you have multiple accounts. “If you're not keeping them open for a reason, consolidate them,” advises Xavier O'Halloran, the chief executive office of advocacy group Super Consumers Australia. “It's a massive drain on your savings.” He says about four million people have two or…

In April 2024, shareholders rejected Woodside Energy's climate plan, after activist investors urged them to vote against it. Close to 60% of investors rejected the climate plan – a result that Will van de Pol, CEO of climate activist group Market Forces, said at the time was a “new world record”. And the oil and gas producer took notice of the vote, at least according to the chairman, Richard Goyder. “The board will seriously consider the outcome when reviewing our approach to climate change,” Goyder told shareholders at the meeting in Perth. “We take the shareholder feedback seriously.” This is the sort of shareholder activism that usually makes the news rather than stories about fund managers working in the background to affect change and drive profits. These don't focus on…

MICHELLE SINGER Contributor As a recovering spender, my 2025 financial goals balance long-term security and adventure. I automate monthly share investments, max out my super and am exploring commercial property opportunities. Alongside working with my husband on a small residential subdivision, I'm saving for a bucket-list trip: cycling solo from Vancouver to the Mexican border. Read Michelle's story on top property buys on page 34. RYAN JOHNSON Journalist To read Money magazine cover to cover each month. I want to pick up actionable tips to grow my savings and explore smarter ways to invest for my future. My goal is to finally get serious about building an emergency fund and make headway with my fiancée on saving for our big, fat Indian wedding. Read Ryan's story about funerals on page 53. GRADY…

When we buy a major home appliance such as a fridge or washing machine, we're spending hundreds, perhaps thousands, of dollars, yet there is no way of knowing if it will last or can be repaired. It's a costly gamble we shouldn't have to take. The Consumer Policy Research Centre (CPRC) found that more than a third (39%) of major appliances feature meaningless environmental claims at the point of purchase, promising ‘eco-friendliness’, ‘sustainability’ and ‘resource efficiency’. Four in five consumers admit they rely on these unclear claims when buying. Meanwhile, crucial information about repairability and durability is nowhere to be found, despite two-thirds of consumers stating they wanted this information. France's durability rating system provides a proven model. It evaluates products based on repairability and durability criteria, presenting results on…

Aussie households spent more on groceries than ever in December 2024, with the average weekly bill hitting $208, up from $184 in December 2023, according to Finder's Consumer Sentiment Tracker. Households with children younger than 18 reported even higher costs, averaging $285 a week (up from $229). This comes despite a decline in overall inflation, with October's consumer price index (CPI) at 2.1% year-on-year. However, a closer look reveals food and non-alcoholic beverage prices surged 3.3% during the same period. Coffee prices are also climbing, with experts warning coffee drinkers could be paying up to $12 for their favourite brew by the end of 2025. Global coffee prices have skyrocketed due to dry conditions in Brazil, the world's largest producer, leading to an 80% surge in Arabica bean prices over…

When selling a property, choosing the right real estate agent is crucial. Platforms such as LocalAgentFinder aim to simplify this process. It markets itself as a free, easy-to-use tool for homeowners or renters to compare agents. But is it the game-changer it claims to be? LocalAgentFinder users input property details and matches them with local agents. It says you can compare fees, marketing plans and experience all in one place. However, there are drawbacks. First, not all agents are listed, as participation requires them to pay a referral fee for successful transactions. Second, consumers also ‘pay to play’, in a sense, by handing over their data. To use LocalAgentFinder, you need to provide personal details (name, home address, email and phone) and property specifics (type, value, bedrooms, ownership and timeline).…

Jan relies on his share portfolio to supplement his pension. Even in a sharemarket crash, dividends keep flowing Q I am 78 and on the full age pension. I have $93,000 in shares and $5000 in savings. I own my unit and am mortgage free. My question is: should I continue to keep my shares or sell them and put the cash in the bank? My reason being: taking into account my age, if there is a market crash I am concerned I may not have the years left to recoup my losses. I rely on the money from my shares to supplement my age pension for my daily living expenses. My shares are low-risk and over the years the annual return has been around 7%. I would appreciate your…

You have me chuckling, Michelle. Your enthusiasm and joy about your grandson just radiates out of your words. My wife, Vicki, was also hanging out for grandkids, a gorgeous little girl arrived and then three other granddaughters in pretty quick succession from our son and older daughter. My deadline for this issue came up during our January holiday, with our kids and grandkids. Vicki is currently cuddled up on a very wet day at the beach with three-year-old Isabel, watching a kid's movie. They look very happy. You will get so much pleasure and have so much fun with your grandson. I also love your enthusiasm to not only be part of your grandson's life but to be thinking of his financial future. In my 40-plus years of answering money…

Canberra's property market, much like the city itself, is distinctive: shaped by high wages, strong employment and a highly educated population. But in 2024, it was far from the top of the class with the formerly second-most expensive market by median dwelling now ranking third, behind Sydney and Brisbane, with Adelaide not far behind. A stagnant population and negative interstate migration since mid-2022 have dampened demand. Adding to that, a wave of new housing supply has softened competition, nudging dwelling values 6.5% below their May 2022 peak. While Canberra's economy offers stability, the property market remains in transition. CoreLogic research director Tim Lawless doesn't believe the downturn has quite finished yet. “The trend in home values is still moving gradually lower, with no evidence the market is bottoming out just…

Once, we knew how to deal with death. While rituals differed across cultures, it was common to dress the deceased ourselves, carry them to rest and honour their memory. We buried our own and knew how to perform this last sacred act for those who had departed. Over time, we outsourced this responsibility, entrusting it to an industry that promised dignity and care. There are hundreds of funeral homes in Australia serving the 452 people who die daily on average in this country. However, while funeral homes carry a variety of names and brands, they tend to be owned by a few large corporations. And until people confront the death of a loved one, they presume it's a straightforward and transparent process that will aid them during what is often…

Peace is often framed as something soft, passive or even indulgent – more of a ‘nice to have’ than a cornerstone of success. But what if peace isn't just about staying calm and stress free? What if a deeper internal peace is, in fact, a critical factor in becoming a better investor, professional or entrepreneur? Rather than being the byproduct of wealth and success, could peace be the pathway to prosperity itself? To explore this, let's flip the script. Instead of chasing success as the engine for fulfilment, imagine it as the outcome of peace. Peace anchors you, gives you the resilience to weather uncertainty and allows meaning to emerge naturally. And in a world where noise, comparison and anxiety dominate, this shift might just make the difference between winning…

FASTEN YOUR SEATBELTS As Money hits the newsstands, the US will be welcoming its 47th president, who also served as its 45th president. Trump's victory, against all predictions, was resounding and this time around he has the added benefits of Republican control of both the Senate and Congress. Even more notably, he also has the experience of his first term to guide him and it has been clear from his list of appointments that this time around he is building a team that will help him implement his more controversial policies rather than working against him. TARIFFS – WILL HE OR WON'T HE? For Australia, and pretty much every country that does business with the US, the big question is whether Trump will deliver on his pledge to impose tariffs…

Metrics Master Income Trust (ASX: MXT) One of three private credit trusts currently listed on the ASX by Metrics, the trust provides investors with exposure to the Australian corporate loan market. It pays distributions monthly. Pengana Global Private Credit Trust (PCX) Self-described as the ‘most diversified global private credit fund’ on the ASX, the trust comprises thousands of loans (mostly to mid-market companies) through a variety of funds across different sectors and geographies. Distributions are paid monthly. Perpetual Credit Income Trust (PCI) While not solely composed of private credit, the trust aims to provide investors with a source of monthly income by investing in a diverse range of credit and fixed-income assets from Australian and global entities.…

At the start of every year, market strategists from across the globe pen down their forecasts for the year. So, in keeping with this tradition, our first article for 2025 will do the same for our readers. However, what we aim to present are several non-consensus calls. They may seem controversial or far-fetched, but our investment experience over many decades constantly reminds us that nothing is ever off the table. • The bull market will continue -expect double digit returns over the next two years. Global equity investors have now enjoyed two stellar years of double-digit returns. From January 2023 to December 2024, the MSCI All Country World Index (AUD) delivered 25.3%pa and the S&P/ASX 300 Total Return Index delivered 11.7%pa. Most investors right now are pinching themselves over these…

Financial uncertainty, left unaddressed, is like an undiagnosed cancer, a constant niggle that eats away at your frame of mind with potentially catastrophic long-term consequences for your health. Bumbling along day to day, relying on luck, hoping that everything will be alright in the end, is normal. You are not alone, but you can do better. Not many people know their financial future, but it doesn't have to be that way. Ask anyone who has confronted their financial future, and they will tell you that whatever you find out, whether you are behind the financial eight ball or ahead of it, just knowing where you are and where you are going will save you a fortune in avoidable stress and leave you, at retirement, ready to fly rather than ready…

Last year was a heck of a year for retailers. Doubly so if your wares were of the ‘I'd like it, but don't really need it’ variety. A combination of higher prices and higher interest rates (and rents) took a serious bite out of our spending power last year. Sure, some of us had more (those who own their homes and have cash in the bank), but many of us had less, thanks to the rising prices of life's necessities. In that context, it was no wonder that Godfreys failed (to be subsequently reborn as an online-only retailer), nor Mosaic Brands, the parent company of brands such as Millers, Rockmans, Noni B, Rivers and Katies. Most retailers are fine when spending grows. But when we close our wallets and purses,…