Innholdsfortegnelse for March 2025 i Money Magazine

Hello, from a recent returnee from Japan. Yes, along with almost one million other Australians (in 2024), I travelled to the land of plenty. Plenty of food, plenty of mass transit and plenty of clever tech. A case in point was buying prescription glasses. One night in Osaka I popped into one of the country's many optical chainstores. It had a wide variety of frames available for around $100 each. The shop assistant took my glasses (off my head), ran them under a machine that identified my prescription, inquired if I'd like a blue light, polarised or coloured lens, then asked me to come back in 20 minutes. By the time I'd enjoyed some ramen, two new pairs of glasses were ready for me. Obviously, at 124.5 million, Japan has…

Having studied the growth and development of the Australian exchange traded fund (ETF) industry for the past 10 years, I have come to the conclusion that there are very few events that are real game changers. What we have seen from ETF providers in the past is pretty much what we expect from them in the future. But there is one ETF provider that has broken with its past patterns and the result is, in my view, a game changer. Let me explain. On a recent weekend, I was driving around the streets of Melbourne delivering kids to parties and sports, and trying to get home before the summer heat peaked for the day. It was then I heard someone say something profound on Radio National. National security expert Professor…

Are you making money from your hobby? That could include anything from selling homemade cakes at a local market to charging people to see your social media content. Basically, everything you do for fun that you have potentially monetised! Did you know that you may be required to pay tax on the money you are making from these hobbies? There are a number of indicators that can be applied to help determine whether a business is being carried on, such as whether: • the activity has a significant commercial purpose or character • the taxpayer has more than just an intention to engage in business • the taxpayer has a purpose of profit as well as a prospect of profit from the activity • there is regularity and repetition of…

Gen Z are using social media as a key tool for managing money, earning them the title of the most financially confident generation. New NAB economics data reveals that nearly one in three people aged 18-29 feels confident discussing their finances, compared with just one in 10 aged over 50. Zoomers are leading the charge in budgeting confidence (38% versus 25% for over-50s) and savvy saving habits (31% versus 17%), depending on digital resources, with financial advice videos on TikTok amassing more than 21 million views last year. NAB executive Kylie Young says the surge in activity is largely good news, but it is important not to rely solely on social media for financial advice. “Most banks will have content on their websites that will help guide you and there…

Healius has spent five years shedding old baggage and is finally focused on what it does best – pathology. The former Primary Health Care, largely a chain of GP practices, built up its debt by adding two divisions – pathology and medical imaging. Now it is poised to be debt-free, selling its Lumus Imaging division to Affinity Equity Partners for a banner price of $965 million. After clearing equipment leases and transaction costs, Healius should receive about $800 million net. With $161 million in franking credits, management has committed to paying a special dividend. Assuming the company retains $100 million of cash as movie-night money, a payout of 47 cents seems achievable. Deducting that and the $100 million from Healius's current market cap means the remaining business is selling for…

1 Abodey: Billed as an AI-powered buyers agent, its online platform aims to simplify the home-buying process. Buyers are matched with properties via an AI-powered search function and matched with conveyancers, mortgage brokers, etc. 2 BrickX: As a fractional property investment platform, BrickX gives users the opportunity to invest in property for a fraction of the outlay required to buy bricks and mortar. For a fee, investors can buy a ‘brick’ in a property in return for a share of any rental income and capital growth over time. 3 FrontYa: A self-described ‘deposit booster’, FrontYa offers to double the deposit of would-be home buyers to help them get into the market sooner. The catch? Buyers will need to pay back the funds within six years, plus 25% of any value…

In 2018, the historian Yuval Noah Harari warned of a dystopian future where humans might become “tiny chips inside a giant data processing system that nobody really understands”. By 2025, that future feels disturbingly close. Every day, the average person engages in about 5000 data interactions, according to statistics portal Statista – a leap from 298 in 2010. Each time you open your phone or laptop and load content with ads, an auction is triggered to determine which ads you see. According to a report by the policy organisation Reset Tech Australia, this real-time bidding system shows your location 449 times a day. Australians’ data is broadcast this way 3.7 trillion times a year by the online advertising industry, excluding activity on Amazon and Meta, for which data is unavailable.…

When my friend's 32-year-old daughter, Tahlia, announced she had decided on a wedding in Italy, her mother was horrified and tried to talk her out of it. Straight up she said: “I'm not paying a cent towards it”. Tahlia, an accountant whose partner, Massimo, is an electrician from Italy, didn't back down and they are looking at a bill of at least $60,000 for their Italian wedding with 130 guests, of whom more than 100 are his. Her mother says: “At what age do you stop paying for a wedding?” The thing is that Tahlia and Massimo were married at a registry office in Australia to make it legally binding here and her parents paid for drinks and finger food at a pub. Her mother said it was a lovely…

Welcome to our inaugural column on financial advice. Money is launching this column in 2025 for two reasons. First, demand for reliable financial advice is high. In the recent Investment Trends 2024 Financial Advice Report some 16.4 million Australians indicated they needed help on financial matters. Of these, 10.2 million are open to seeking guidance from a qualified practitioner. This means there is a huge wave of people prepared to engage with the advice industry. Second, the government has introduced its Delivering Better Financial Outcomes reform package, which aims to shake up the industry and make advice more accessible. As part of this, late in 2024, Australians were given approval to pay for limited advice from their retirement savings in super. Most super funds are offering digital tools to accommodate…

With missed profits increasingly returning to consumers’ pockets, banks were left scrambling to recover their lost margins. In 2022, Commonwealth Bank, Australia's largest lender, launched Unloan, a digital-only home loan platform that bypasses mortgage brokers. For CBA, it's a cost-cutting success, reflecting a broader trend among banks to embrace digital platforms and reduce overheads. This shift has driven widespread branch closures, with more than 2000 branches – 800 in rural and remote areas – shutting since 2017, leaving many regional communities without essential in-person services. With the power of CBA behind it, Unloan offers competitive rates, winning the gold award for Best-Value Flexible Home Loans – Boutique Banks in Money‘s Best of the Best 2025. However, critics claim the platform's strict lending criteria exclude many borrowers. In a move to…

1 Block (SQ2) See Top 5 US picks, on page 63, for more on this dual-listed company. The share price rebounded by 21.6% in 2024, though it is still down from its highs. It had earnings growth of 48.9%. 2 Zip Co (ZIP) The digital financial services company offers innovative and people-centred products. Its two core markets are Australia and New Zealand and the US. It offers access to point-of-sale credit and digital payment services, connecting millions of customers with its global network of tens of thousands of merchants. It scored a share price surge of 452.7% in 2024, just two years after the ignominy of being the ASX's worst performer of 2022. Its share price is still well below its record high of $12.35 in 2021 at the peak of buy…

Melior Investment Management has two aims: to achieve positive social and environmental impact by contributing to the United Nations Sustainable Development Goals (SDGs) and at the same time to deliver competitive financial returns by outperforming the S&P/ASX 300 Index over a rolling seven-year period. It predominantly invests in large Australian-listed companies that it considers contribute positively to SDGs, including equality and education, health and wellbeing, economic participation and sustainable communities. Its latest investment impact report outlines key SDG contributions that companies in the portfolio made in the 2024 financial year, including: 30,000 people in Australia who benefit from childcare facilities; 4500-plus Indigenous people employed; 2.5 million diagnostic imaging examinations on more than 1 million patients across Australia and New Zealand; and 332 million passengers transported on buses, ferries and trams.…

The Chinese AI startup DeepSeek – which, mind you, is a little over one year old – has caused a massive stir in global financial markets and led to a material de-rating in US technology stocks. In short, the startup is providing comparable performance to US competitors at a fraction of the development cost. Before we get into what DeepSeek is all about, I must say I am a little surprised at comments from some investors such as “DeepSeek came out of nowhere” or “it has caught us by surprise”. While I am not for one moment suggesting we personally had advanced insights into the imminent release of a very competitive AI model by any Chinese startup, what we can say with confidence is that we have been stating for…

There's a reason many investors love companies that belong to the unimaginatively named consumer staples sector. When times get tough, people may put off buying a new car, skip that overseas holiday or even cut back on eating out. But they still need to eat, drink and keep their homes running. That's why the ASX's consumer staples sector – home to supermarkets, food producers, liquor retailers and agricultural businesses – has long been a favourite for defensive investors. But ‘defensive’ doesn't (necessarily) mean boring. It doesn't mean risk free, either, whatever the name may suggest. The consumer staples sector is dominated by a handful of well-known giants. Woolworths and Coles control the lion's share of grocery retailing, and while Metcash isn't a household name, it supplies independent supermarkets (IGA, for…

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…

Just days into 2025, we were confronted with photos and videos of out-of-control fires tearing through neighbourhoods and homes in Los Angeles. Fast-forward to early February and communities in North Queensland were left devastated by severe flooding – some areas received more than 1.5 metres of rain in just a few days. While the year has started on an ominous note as far as natural disasters are concerned, the reality is that events such as fires and floods are becoming more common and more extreme as a result of climate change. For those who haven't been directly impacted by flooding or fires in recent years, it can be easy to view these as distant events. But the fact is that they impact us all. For instance, research released by the…

BOOK OF THE MONTH THE FOUNDER EFFECT: Three Pillars of Success in Founder-Led Companies by Lawrence Lam (Wiley, $34.95) The managing director and founder of a funds management firm, Lam sets out to help readers understand the magic formula that generates success. He outlines his strategy to create and recognise great management teams, using case studies from some of the world's leading companies, such as Boeing, Siemens and LEGO. He points out: “After all, a company is a mere collection of decisions made over time that, once accumulated over many years, steer the company in a certain direction. Once you understand how well a company thinks, you will be able to realistically judge its potential for success.” Ten readers can win a copy. In 25 words or less, tell us…

Many parents are helping their children well before they reach the home-buying age: 14% are putting money into shares and other investments on behalf of their kids as frequently as once a month. $49,000 The amount that an initial $15,000 investment could grow to based on an average return of 8%pa over 15 years. Source: Finder The finding comes as part of research conducted by the comparison site Finder, which also revealed that 12% of parents invest sporadically for their children on a birthday or at Christmas, while 7% said they had made a one-off investment when their kids were born. “Most parents want their children to have the very best head start in life they can – it's encouraging to see so many making kid-vestments,” says Graham Cooke, Finder's head…

Hi Paul, I'm a 58-year-old young female and have $220,000 in an investment account. It is invested in Vanguard (international and Australian index funds) and a few other options. This was part of a redundancy payment from 2021 and has been my buffer in case I needed to access money. My super is sitting at $840,000. I own my home and have no debt. Should I put $100,000 of my investment into my super? I have been lucky not to have touched the investment, and by leaving $100,000 in the account, if something did go wrong I would still have quick access to money. I intend to work until 65, earning about $70,000pa. I know what is happening in the US is shaking up the sharemarket – it could go…

AI is at the core of many of these transformations, redefining how we shop, save and communicate. Companies harness vast amounts of data to create tailored marketing campaigns that resonate with individual preferences in real time. From Netflix recommending your next binge-worthy series to Spotify curating playlists that seem to read your mind, AI is the invisible engine powering our curated experiences. Ryan Warren, vice president of personalisation and data solutions at Salesforce, believes these innovations are just the beginning. “Imagine leaving a concert or sporting event and before you even get to your car or train, you receive an email to thank you for attending and to suggest related events you may want to attend in the future,” he says. “Or imagine ordering a new pair of shoes online…

• Work out all expenses so there are no surprise blow-outs. • Set a budget and stick to it. This could mean doing your own flowers or asking guests to pay for drinks. • Do you need a wedding planner who has local knowledge? Do you need to hire a translator? • Couples and their guests should allow a week either side of the overseas wedding date. • Investigate visa requirements. Check how to get married in a foreign country. Will you need to go back there if you ever get divorced? How will the divorce legislation affect the division of assets? • Does the venue have enough accommodation for the guests? Provide a list of nearby possibilities, including some luxurious as well as inexpensive places. Ask for discount rates…

Australian listed real estate investment trusts (A-REITs) had a good year in 2024, even without interest rate cuts, delivering a total return of 17.63% compared with 11.39% for the wider market. The sector, which had been battered by high interest rates, started to recover as inflation eased and valuations bottomed out. The average annual return for the three years to the end of 2024 was just 3.21%, illustrating just how outstanding the 2024 performance was. There is no doubt the ASX property sector has suffered several rough years amid higher interest rates and other factors, reported the Motley Fool investment website in September. Office real estate was downgraded in the wake of Covid, which ushered in a new work-from-home era, but now there are signs of recovery, says the Motley…

1 Block (NYSE: SQ) This company is also included in second place in Insider Monkey's list of the 13 most promising fintech stocks to buy (see page 66). “Block's product suite has evolved from a way for merchants to accept credit cards using their mobile phones into a large-scale financial ecosystem for individuals and small businesses,” says Motley Fool. “It now processes for merchants at an annualised rate of about $240 billion, has its own banking subsidiary (Square Financial Services) and a thriving small business lending platform. Cash App is especially interesting and could still be in the early stages of monetisation, providing major upside potential.” 2 PayPal (NASDAQ: PYPL) Motley Fool describes this company as “the undisputed leader in online payments – and so much more”. Its Venmo person-to-person payment…

There are a handful of fintech ETFs, although Motley Fool's Scott Phillips is not a big fan of ‘thematic’ ETFs, as opposed to index-based ETFs. His argument is that even if you're on the right theme, you could still lose money. “Think about the growth of air travel since the '70s. If you'd accurately predicted that and bought an airline ETF, you'd have likely gone broke two or three times over. “Also, how do you know if the ETF is reasonably valued or if the companies in that ETF are worth owning? You don't, unless you do the research … by which time you may be better placed finding a handful that you think have the best potential and buying them instead.” An ETF considered to be worth a look…

Fund members in MySuper's single diversified option have enjoyed median annual returns of just more than 7% over the past 10 years, with top-performing funds earning up to 8%. Thanks to regulatory reforms, funds with excessive fees and poor performance have been weeded out. “MySuper is aimed at providing a simple, cost-effective, balanced product for the vast majority of Australian workers who are invested in the default option,” says Craig Sankey, advice governance and technical specialist at Industry Fund Services. The product has to meet minimum standards, which in turn benefits super fund members, says Sankey. “It's important to acknowledge MySuper was one part of a raft of changes that has benefited members over the years.” (See breakout, opposite.) MySuper products were introduced in 2011, with legislation passed in 2014,…

Global X Artificial Intelligence ETF (ASX: GXAI) Designed to track the performance of companies listed or incorporated in developed markets that are positioned to benefit from the development and utilisation of AI in their products and services, as well as companies that produce hardware used in AI applied for the analysis of big data. Global X Global Robotics & Automation ETF (ROBO) Provides investors with a comprehensive, transparent and diversified benchmark that represents the global value chain of robotics, automation and AI-related companies. Betashares Asia Technology Tigers ETF (ASIA) Aims to track the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan), including Alibaba, Tencent, Baidu and JD.com.…

When I first started working for UBS in London back in the 1980s, they sent us all on a residential sales course to learn how to sell financial products. It was blunt and it was a revelation. They taught us two basic principles of finance that have stayed with me ever since. The first is that “happiness is expectations met”. I quickly realised that, if true, as the self-help guru Tony Robbins will tell you, happiness is within your grasp right now. All you have to do is set very low expectations. Instant happiness. But from a sales point of view, it meant something quite different. Deciding to buy, it turns out, is not a financial decision; it's an emotional one. So, our job was to convince clients that UBS…

NICOLA FIELD Contributor As a keen global traveller, I've saved a bundle, thanks to Google Maps. It let me navigate multiple train lines to reach my far-flung hotel in Tokyo (saving $350 on a taxi fare), it helped me find obscure attractions such as the Museum of Ice Cream in Singapore (yum!) and it allowed me to explore on foot. By popping in earbuds, I've walked the streets of London, Glasgow, Auckland and Dubai without the uncertain map reading and costly taxi rides that scream ‘tourist’. See Nicola's update on super changes on page 74. MATTHEW GIBBS Contributor As one who uses fountain pens, wears a watch with Roman numerals and has never read a book on a Kindle, I may seem like a digital dinosaur. But, in truth, I love…

Super is meant to be for everyone, but young workers face a delayed entry to our worldclass retirement system. Throughout the summer months, thousands of young Australians have stacked our shelves, cooked our fast food, waited on tables and worked in local shops. But an outdated law means that workers aged under 18 are legally denied compulsory super unless they work more than 30 hours per week for the same employer. A law that can cost them dearly at retirement. A Super Members Council report reveals that about nine in 10 under-18s don't meet the 30-hour-per-week work threshold, depriving around 505,000 young workers of about $368 million in super contributions each year. Imagine a typical teenager who works for at least two years; they could have almost $2200 in their…

A new study from Great Southern Bank has found that property investors, including a large share of ‘mum and dad’ investors, are more financially confident than other homeowner groups. The survey of more than 2000 people found that property investors were 10% more confident in managing their current expenses than first-home buyers, with 44% of investors reporting high residential satisfaction, compared with 34% of those buying their first home. When it comes to meeting long-term financial goals, property investors were also well ahead: 41% felt on track, compared with 29% of owner-occupiers and 33% of first-home buyers. Among property investors, 48% were revealed to be ‘mum and dad’ investors – small-scale, non-professionals with an existing mortgage – while 14% identified as rentvestors – those who rent where they live while…

Helen wonders if she needs an adviser to help prepare for retirement. Getting value for money is the important thing Q I am 63 years old and have $450,000 in super. I plan to retire at 65 with more than $500,000 in super. We own our own home and have an investment property that has not been paid off yet. My husband has his own business and his own super and does not want to retire when I retire. Do I need a financial planner to manage my retirement money, or is this something I can do myself? Will I make more money than I outlay if I use a financial adviser? The financial adviser I have talked to says their company charges 0.88%. Interesting question, Helen. And I like the way you…

Whatever limited wisdom I have, Elizabeth, will certainly not stretch to trying to understand Donald Trump, nor what his various proclamations will do to the sharemarket. I have a very basic view of the global and Australian economies. Fortunately, this pretty much ignores the political classes and focuses on real people. Right now, according to the Worldometer website, there are about 8.2 billion of us on the planet. We live, we die, but from our first breath to our last, we are consuming goods and services. One way or another, as workers, business builders, taxpayers, child raisers, carers for parents, grandparents or other people, we also all make an economic contribution. The number of us on the planet is quite extraordinary and growing rapidly – in fact, by about 80…

The lifestyle-first approach • Tech uptake: Uses all available smart devices from home assistants to wearables. • Payments: Fully digital; uses mobile wallets and biometric authentication. Shruti, 26, a business development professional at a Sydney law firm, thrives on technology for efficiency and getting the best deals. “I'd implant a microchip tomorrow if it meant I never had to carry a wallet again,” she says, reflecting a mindset that sees convenience as a top priority. Like 72% of Australians, Shruti has left cash behind as a thing of the past. “I don't think I've ever really used cash. Apple Pay is just faster and easier,” she says. Her digital wallet isn't just a payment tool; it's also a gateway to savings. By connecting it to rewards programs, such as Flybuys,…

For many, concepts such as hope and optimism seem antithetical to a prudent financial mindset. This comes down in part to our brain's built-in loss-aversion mechanism, which primes us to focus more on avoiding losses rather than maximising gain. There are countless stories of people who have lost fortunes to scammers and con artists who play on hopes and dreams, reinforcing the idea that hope is a sanctuary for the gullible, the desperate, the ignorant. It is a domain where the unsophisticated and the unenlightened congregate, their cognitive faculties dulled by the allure of improbable outcomes. Therefore, when discussing personal finance we often focus on the tangible aspects – budgeting, investing and saving. But are we missing something when we avoid the intangible? The mindset we bring to our financial…

Imagine Sarah is a mortgage broker who helps James secure a home loan for $500,000 with a lender. Here's how Sarah's commission might work: Upfront commission The lender pays Sarah an upfront commission of 0.65%* of the loan amount drawn down. $500,000 × 0.65% = $3250 (*After James's loan is settled.) Trail commission Each year, Sarah also earns a trail commission of 0.15%* based on the outstanding balance of James's loan. Year 1: $490,000 (after repayments) × 0.15% = $735. Year 2: $475,000 (after more repayments) × 0.15% = $712.50. This continues for the term of the loan. Key facts No cost to borrowers: Lenders pay commissions because brokers generate business for them. Clawback risk: If the loan is repaid or refinanced early, lenders reclaim upfront commissions.…

1 Goodman Group (GMG) Its strategy of investing in and developing high-quality industrial properties close to large urban populations and in and around major gateway cities globally has paid off for investors, says Motley Fool. “This focus has underpinned strong earnings growth over the past 10 years (to December 2024) leading to its shares generating an average 20.9% a year.” 2 Scentre Group (SCG) It manages Westfield shopping centres across Australia and New Zealand. Over the past five years, it has delivered an average dividend yield of 4.8%pa, making it attractive to those looking for income. Two leading brokers see more gains ahead for shareholders, according to a January report from Motley Fool. “Citi raised the stock to a buy rating with a price target of $3.91 a share. And Jarden Securities…

1 StoneCo (NASDAQ: STNE) The company provides financial technology solutions to help merchants and integrated partners conduct e-commerce seamlessly. Founders Andre Street and Eduardo Pontes spent a decade working in the electronic payment and payment processing field in Brazil before launching the company in 2012. The fintech has demonstrated strong revenue growth, accelerated profitability and improved earnings over the past three years and is rated as having upside potential of 63.73%. 2 Block (NYSE:SQ) Co-founded by CEO Jack Dorsey, Block helps expand access to the economy through Square, Cash App, Spiral, TIDAL and TBD. Following its takeover of Australia's Afterpay, Block shares are also listed on the ASX. With growth at scale and successful key businesses alongside, average upside potential for the stock stands at 34.39%. 3 Global Payments (NYSE: GPN) The American…

Does the success of MySuper suggest a pathway for improving the retirement phase of super? David Bell, the executive director of independent think tank The Conexus Institute, says yes and no. The retirement phase of super is developing slowly, which is difficult to watch given 250,000 people are retiring this year, he says. “Retirement is far more complex than accumulation. Members have diverse needs and preferences, the range of retirement products can be perplexing and the nature of the retirement income challenge – drawing an income over an unknown period of time with uncertain market returns – is difficult.” Bell says this means members require a combination of advice and guidance services, with a suitable blend of products. “While we think further policy reform is required to facilitate progress, overall…