Indholdsfortegnelse for June 2025 i Money Magazine

Just as Money was going to print, news came through that investor extraordinaire Warren Buffett had announced his plans to retire from Berkshire Hathaway at the end of the year. At 94, after almost 80 years of investing and 60 years leading the conglomerate, he will hang up his hat. It really is the end of an astonishing era. Here at Money, we cannot overestimate the importance of the Oracle of Omaha, not only for his investing prowess – Berkshire Hathaway’s share price has risen an average of 19.9% a year compounded – but for his incredible generosity in sharing his knowledge. In many ways, Money seeks to emulate Buffett’s style: he is an investor who is able to clearly articulate his thinking; he is strategic, deeply understands market dynamics…

Every few years or so, I become aware of a concept that is so powerful it takes up rent-free residence in my brain and just won’t let go. One of these is the Dunning-Kruger effect. I first became aware of it when I was asked to develop a process for determining the winners of the best financial products and services for Money’s annual Best of the Best Awards. Little did I know then, but I was about to enter the world of the Dunning-Kruger effect. As with any good (or bad) superhero movie, the Dunning-Kruger effect has an origin story. In 1995, two men robbed two banks in Pittsburgh. Neither attempted to disguise themselves. When one was caught, having been identified by security cameras, he was astounded. “But I wore…

The problem with the end of the financial year is that most taxpayers find themselves engaged in a last-minute battle to find all the paperwork to support the deductions they’d like to claim in their tax return. If you’ve been organised and kept everything you need in a neat, well-ordered file, congratulations, but if you’ve spent 11 months of the year completely ignoring your taxes, you might struggle to find receipts and invoices for many of the things you could have claimed for. So, as we enter the last few weeks of the financial year, it makes sense to get ahead of the curve and make sure all of your paperwork is in order. With the ATO requiring substantiation for a deduction to be allowed, here’s a tip for keeping…

People relying on super for insurance payouts are facing lengthy delays, with total permanent disability (TPD) claims taking nearly five times longer to process than death claims. Analysis by Rainmaker Information, which publishes Money, of Australian Prudential Regulation Authority life insurance data reveals systemic issues in claim processing times, particularly around TPD. In the 12 months to June 2024, 43,000 death and TPD claims were lodged through group insurance in super funds, with 30,000 relating to TPD. While most death claims (76%) are resolved within two weeks, TPD claims drag on. On average, it takes 4.7 months for a claim to be finalised. For nearly one in four cases, the wait stretches beyond six months. Currently, 6600 claims (20%) remain unresolved. Group insurance within superannuation is highly concentrated, with just…

Two new exchange traded funds (ETFs) are giving investors more opportunity to diversify, including an asset class usually reserved for institutions. The first, the VanEck Australian RMBS ETF (ASX: RMBS), invests in AAA-rated residential mortgage-backed securities, which is a $59.2 billion asset class historically limited to big players. Backed by pools of home loans, the fund offers higher yields than cash or senior debt and the asset class has a strong track record of capital stability, according to Arian Neiron, VanEck chief executive officer and managing director. “Historically, investors in highly rated Australian residential mortgage-backed securities have never experienced principal losses,” he says. “They have been utilised in credit strategies for decades, and for the first time VanEck’s RMBS democratises the opportunity for all types of investors.” The second, the…

Over the past 12 months, Macquarie Technology’s share price has moved as high as $72 and as low as $53, a range of more than 25%. Yet the prospects of the business are as good as ever. We took advantage of those price moves and upgraded the stock late last year, although we expressed some caution about increasing debt levels and high capital expenditure. As swiftly as it fell, Macquarie has recovered, rising through our lowered buy price. Prices rise and fall. Sometimes pessimism reigns, other times optimism dominates. We can’t predict share prices and are not inclined to do so. Our view about the business remains consistent. Macquarie is expanding data centre capacity and swiftly filling that capacity with customers. The business model gets customers into its centres at…

CASE STUDY Bracket creep hits people on low incomes harder than those on high incomes. And it has a disproportionate impact on those whose need for cash is highest. As such, its biggest effect is on millennials (1980-1994) and gen Z (1995-2012) who are starting their careers and probably earning less. The examples below assume an inflation rate of 3% and that wages rise by the same amount. While the real-world economy is rarely so neat, they are nonetheless illustrative of the effects of bracket creep. Gen Z worker Annual income $67,000 Australians aged 21 to 34 years of age earn an average of $1289.20 a week, or $67,038 a year, according to the Australian Bureau of Statistics in 2024. The figure includes full-time and part-time work. A worker earning…

Some of my friends and relatives have adult children – typically in their early to late 20s – who are transitioning their gender. Each trans person is taking a different approach. Often families want to support them on their journey, as it can be overwhelming. Gender affirmation can be costly, too, depending on what approach they take. For example, one relative is helping her trans daughter with her clothes, hair and appearance. Others are navigating hormone blockers or taking either masculinising hormones such as testosterone or feminising hormones such as oestrogen and progesterone. Some, after careful investigation, are embarking on surgery. While surgery isn’t a goal for all trans people, for some it will improve their quality of life. Options include chest or breast surgery, facial surgery, tracheal shaves, hysterectomies…

Canadian David Edmondson works in the film industry but has a side hustle with collectables that he says earns him $C70,000 ($78,000) a year. He started collecting after his grandmother died and he sold off her old kitchen equipment, which appealed to collectors’ sense of nostalgia. “It’s absolutely amazing what people will pay for nostalgia,” he says. The author of Cashing in on Collectibles: How to turn your hobby into your business, Edmondson shares his top tips: • Collect what you know: Everybody has an interest and knows more about something than most people, be it kitchen mugs or Barbie dolls, and this is where they should start collecting. • Have a separate bank account: Open a new account with the cash to fund your collecting. It’s a way of…

With the end of the financial year fast approaching it’s worth considering whether you should top up your super. Even small amounts of extra contributions can make a dramatic difference to your nest egg and, as a bonus, it can lower your taxable income. “Superannuation is the most tax-effective savings vehicle you can invest in – it’s head and shoulders above the next best investment structure like a discretionary family trust and/or an investment bond,” says Colin Lewis, head of strategic advice at Fitzpatricks Advice Partners. “The sooner you start, the more you will have at retirement. Most people, when they reach retirement, are either thankful they took the opportunity to start saving early or recognise that they should have started earlier and are now playing catch-up.” Fund members who…

CASE STUDY Ali works at a tech company with an employee share purchase plan. She decides to make use of the 15% discount available with the plan to purchase 400 shares at $4.25 each (their market value is $5). All up, Ali has paid $1700 for $2000 worth of shares. They have a three-year vesting period (until she can exercise her rights). Because Ali is eligible for a tax-deferred scheme, that $300 discount she has obtained isn’t assessed as part of her taxable income straightaway. After five years, Ali decides to sell her shares, which are now worth $8 each ($3200 in total). At this point the $300 discount that was deferred initially will be included in her taxable income. Ali will also need to pay capital gains tax on…

Source: Rainmaker Information. Data sourced March 31, 2025. *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…

Picture a holiday in your mind. Perhaps you’re walking down a cobblestone street in Europe with a coffee in hand. Maybe you’re skiing on a slope of fresh snow in Japan. How about holding a beer and balancing some hot chips in your lap while watching a football game? While that won’t be the first image that comes to mind for many travellers, the reality is that sports tourism is booming. Expedia Group, a travel tech company, estimates that it now represents 10% of all global tourism, with sports-related spending projected to hit $US1.3 trillion ($2 trillion) this year. Not that this is anything new. People have been travelling to watch major events such as the FIFA World Cup and the Olympics for decades. As have dedicated supporter groups such…

LEND A HAND HABITAT FOR HUMANITY AUSTRALIA: BRUSH WITH KINDNESS Part of an international not-for-profit that originated in the US – and founded on the belief that everyone deserves a safe and decent place to live – Habitat for Humanity Australia helps disadvantaged people through its Brush with Kindness corporate volunteering program. This rewarding one-day activity sees teams of volunteers bonding while landscaping, renovating and undertaking minor building repairs (no building skills required) at accommodation for women and children escaping domestic violence or people experiencing homelessness. The charity also offers other volunteering options for individuals keen to make a difference. Get in touch to find out more Phone: 1800 88 55 99 Email: volunteer@habitat.org.au Donate No time to volunteer? You can still contribute by making a donation at habitat.org.au/donate. PODCAST…

Demand for gold has surged in early 2025 as investors worldwide, including Australia, pile into the precious metal amid rising uncertainty and record-breaking prices, according to the World Gold Council’s latest quarterly report. Total gold demand hit 1206 tonnes in the first quarter, up 1% year-on-year and the strongest quarter since 2016, even as gold surpassed $US3000/oz ($4648) for the first time. Since then it has hit more than $3300/oz ($5110) – nearly a 50% yearly increase. The standout driver has been a global revival in gold exchange traded funds, with investment demand rising 170% to 552 tonnes, its highest since 2022. Australian investors joined the rush, pouring $US255 million ($395 million) or 2.8 tonnes into gold ETFs, the strongest quarterly inflow on record, taking total holdings to $US4.5 billion…

In Western Australia’s Wheatbelt, Ian and Dianne Haggerty are showing that farming can be something better. For three decades, the regenerative agriculture pioneers – and 2025 WA Australians of the Year – have farmed some of the country’s toughest soils. Their approach, known as natural intelligence farming, is changing how we think about food, health and the future of the land itself. From artisan bakeries and international fashion houses to farmers seeking a new way forward, the Haggertys’ influence stretches far beyond their fencelines. At its heart, their story is about listening and healing – of soil, landscapes and the people who depend on them. In 1937, Franklin D. Roosevelt warned: “The nation that destroys its soil, destroys itself.” At the time, the American Midwest was in the grip of…

I’m 35 and work in an industry that is relatively unstable and inconsistent. I’ve recently been divorced and decided to settle on an off-the-plan inner-city apartment despite only having one income now. My loan is $900,000 and the repayments are large at $6000 a month. I’m really burnt out and worried that my capacity to service this loan is in jeopardy. I have no family to draw on for financial help. At the time, I worked with brokers to put myself in a position to settle, which wouldn’t be the case if I were to ask for a similar loan now. There were also concessions on stamp duty, as it was a new build. CASE STUDY I felt this was a good opportunity to secure a nice apartment in inner…

Get ready for an overhaul of most aspects of aged care. “It’s a complete re-write,” says Louise Biti, co-founder of Aged Care Steps, in describing the changes to the Aged Care Act that take effect from July 1. From home care to residential aged care, the widespread changes will affect every type of aged care currently being used by 1.3 million Australians. The costs are changing, too, depending on your assets and income, posing a challenge for budgets and cashflow. Self-funded retirees and those who draw down a part age pension will pay more towards their care. Self-funded retirees using home care will be required to contribute 50% of the cost of independence support services and 80% of everyday living costs. Additionally, the lifetime cap for non-clinical care costs will…

WE ARE VERY DIFFERENT Not all countries are as addicted to variable-rate home loans as we are. In Australia, the vast majority of fixed-rate loans are for one to five years, with only a couple of seven- and 10-year options available. In the US, however, fixed-rate loans are the norm, with 30-year fixed-rate loans one of the most popular in the market. While the proportion of Australians taking out fixed-rate loans shot up to almost half of all new loans in mid-2021 during the pandemic, it has since plummeted to less than 5%. The Covid boom aside, it has been rare for fixed-rate loans to make up more than about 15%-20% of our home loan market. The pandemic jump was mainly due to the super-cheap rates offered during that period.…

Increased volatility on stockmarkets worldwide – sparked by the uncertainty caused by US President Donald Trump’s global trade war – will see property become an increasingly attractive sector for investors. In Australia, this will put even more upward pressure on our already high house and apartment prices, and buying a residential property investment outright will be beyond the reach of even more first-home buyers and investors. In light of this, many people will turn to other ways to invest in residential and commercial property schemes that are not tied to the gyrating sharemarket. Alternatives include: 1 Fractional investing Through ‘fractional’ strategies, investors can buy smaller shares in properties rather than buying them outright. Starting with as little as $250, you can benefit from capital growth as prices rise, plus get a…

The S&P 500 index in the US is down about 3.5% year-to-date at the time of writing, driven entirely by President Donald Trump’s global tariff policy. At its very lows in early April, it was down about 15%. Unfortunately for investors hoping for a quick resolution to tariff discussions so that markets and businesses can ultimately gain some level of certainty, it isn’t likely to be forthcoming anytime soon. Trump announced sweeping reciprocal tariffs on April 2, with significantly higher tariffs on some countries (for example, China). He later announced a 90-day pause, opting to maintain a 10% tariff rate for the interim (excluding China). All of this has meant the markets have whipsawed around this year, particularly in April. The S&P 500 Index found a floor on April 8…

When my babyWhen my baby smiles at me, I go to Riode Janeiro, my-oh-me-oh Those with a “passionate persuasion for dancin’ or romancin’” might go with Peter Allen to Rio de Janeiro in Brazil. While investors who love Rio of the Tinto kind, for the diggin’ and dividends, have the choice of Australia or the UK, where the resources company is dual listed. But neither of these locations offers much of a samba. Rio’s dual-listed status – quoted on both the ASX (Rio Tinto Ltd) and the London Stock Exchange (Rio Tinto Plc) – has been in the news. Some shareholders wanted the dual-listed company structure collapsed and its shares unified under a primary listing on the ASX. Much like BHP did in 2022 (see case study, page 79). That’s…

What makes a truly great financial company? It’s easy to assume that size alone is the answer, or perhaps market share, or maybe brand strength. But the real magic happens when a company consistently delivers results across changing economic landscapes, shifting regulatory sands and volatile market conditions. And that’s a pretty nice summary of where we sit in 2025. We are, if not at a turning point per se, in a period of economic uncertainty. Rising interest rates, traditionally a tailwind for banks, have been no help this time, and margins have stalled or contracted. Digital payments are growing, loan growth has slowed and retail banks are turning to business lending and are having to sharpen that pencil too. Insurance premiums have soared, but seem to now be stabilising, and…

Association of Superannuation Funds of Australia (ASFA) 1800 812 798 (outside Sydney) 9264 9300 (Sydney) superannuation.asn.au Australian Communications and Media Authority 1300 850 115 acma.gov.au Australian Competition and Consumer Commission 1300 302 502 accc.gov.au Australian Energy Regulator aer.gov.au/consumers/making-a-complaint Australian Financial Complaints Authority 1800 931 678 afca.org.au Australian Securities and Investments Commission (ASIC) 1300 300 630 asic.gov.au Australian Securities Exchange (ASX) 131 279 asx.com.au CPA Australia 1300 737 373 (within Australia) +61 3 9606 9677 (outside Australia) cpaaustralia.com.au Do Not Call Register To reduce telemarketing calls 1300 792 958 donotcall.gov.au/contact-us/contact-details Fair Trading/Consumer Affairs ACT: 132 281 NSW: 133 220 NT: 1800 019 319 QLD: 137 468 SA: 131 882 TAS: 1300 654 499 VIC: 1300 558 181 WA: 1300 304 054 Financial Counselling Australia National Debt Helpline: 1800 007 007 financialcounsellingaustralia.org.au/contact…

JOHN CACHIA Financial planner As a business owner, I use Xero along with my bookkeeper and accountant – I leave the number-crunching to the experts. For clients, we use our MyWealth app (powered by Myprosperity), where they can tag tax-deductible expenses and upload receipts all in one place. And I set a yearly calendar reminder to donate before June 30. Giving back is something I value deeply, and it turns out generosity can be tax-effective too. See John’s column on clients’ questions on page 51. ANNETTE SAMPSON Columnist Guilty! I start every tax year with good intentions, but end up using the old shoebox method. Everything gets dumped into a storage box and pulled out at tax time. Digital info gets shoved into a tax folder. Pre-filling has made tax…

The trend of structured giving highlights a new era of philanthropy. It’s a tax-smart giving option that is growing in popularity, thanks to its flexibility and ability to provide greater support for the community. It’s also a vehicle that can build a legacy or involve the next generation. It is now possible to simplify your giving with just one tax-deductible donation that can support your favourite causes over time. The funds are invested and grow through tax-free investment returns to help you give more for longer. In addition to being income-tax-exempt, these giving structures are also able to claim franking credits, further enhancing their financial efficiency. As the donated sum is irrevocable, donors receive an immediate 100% tax deduction that can be used in the current tax year to offset…

As prices soar, the Bank of Mum and Dad has quietly morphed into the Gift of Mum and Dad, with most parents no longer expecting repayment when helping their children buy a home. According to research from the comparison platform Mozo, 75% of parents providing financial assistance in 2025 say they don’t expect to be repaid, which is up sharply from 33% in 2021. “The property ladder is losing those bottom rungs,” says Mozo’s Rachel Wastell. “Aussie parents are stepping in to build new ones, using their own savings.” With house prices rising more than 51% since 2019, the typical 20% deposit has jumped from $129,200 to $195,360, according to Mozo. For many first-home buyers, saving that kind of money is now out of reach without family support. While today’s…

Melinda is looking for a fair way to support her grandchildren through her will. Avoid the horror story that can be caused by an unequal inheritance Q My husband and I have two children. Our daughter and her husband have given us two grandchildren, while our son and his wife do not have children and are unlikely to do so. We want to support our grandchildren in our will. How do we do this in a way that is fair and equal for everybody? Do we leave less to my daughter because her children will inherit some of her share? Oh, goodness, we are about to step into a minefield, Melinda. Danger is everywhere! The drama that I see ‘unequal’ wills creating is a genuine horror story. My dad was…

You have a heck of a lot on your plate, Tobias. I have a daughter who is a film writer living in Melbourne, so I do understand a little how unstable and inconsistent the industry is. Moving towards settlement on a property, a divorce, along with irregular pay cheques are a lot for you to handle. Let’s take stock. You have some long-term money in super, which is potentially available under hardship provisions, but let’s try to leave this alone at present. It does provide a nice base to build on for the future. While I realise you’ll need to pay rent for a home for yourself, I imagine that, if rented, the property might return around 3%, so let’s call that $30,000. With a new inner-city apartment, I imagine…

Is it better to pay off our mortgage or invest? This is one of the most common questions I hear: “Now that we’ve got some surplus cash, should we pay down the home loan or start investing?” I recently worked with a couple in their early 40s, earning around $250,000 a year with a $750,000 mortgage and growing savings in their offset account. After years of juggling kids, careers and cashflow, they were in the fortunate position of having choices but weren’t sure which one to make. The simplicity of paying down the mortgage There’s a strong case for paying down debt. With mortgage rates around 6%, every additional repayment effectively earns you a guaranteed 6% after-tax return. Why after tax? Because mortgage repayments are made from post-tax income. Unlike…

There are two certainties in life: death and taxes. It makes sense, then, that we learn to make peace with both: control what we can and accept what we cannot. Yet, although we live in an advanced society, we’re notoriously poor at accepting either concept. While the importance of embracing our mortality is a subject many of my colleagues talk about a lot, rarely is tax discussed. And there is good reason for that. Death conjures up fear, whereas tax conjures up anger, and fear is much easier to discuss than something that is likely to trigger an aggressive response. Why does tax provoke such anger and why is it as important to manage our emotions around tax as it is around death? Clearly, it’s time we addressed ‘tax-rage’ and…

iShares S&P 500 ETF (ASX: IVV) Aims to provide investors with the performance of the S&P 500 Index before fees and expenses. It is a low-cost way to gain access to the top 500 US stocks in a single fund. GQG Partners Global Equity Fund Seeks to invest in high-quality, attractively priced companies exhibiting competitive advantages. The portfolio seeks to manage downside risk while providing attractive returns to long-term investors over a full market cycle. VanEck MSCI International Small Companies Quality ETF (QSML) A diversified portfolio of 150 developed-market, small-cap, quality growth securities. It contains some of the world’s highest-quality small companies based on three key fundamentals: high return on equity, earnings stability and low financial leverage.…

Ray Dalio is the billionaire American founder of the world’s biggest hedge fund, Bridgewater Associates, and was number 124 on the Forbes World’s Billionaires list last year. He has been higher. He worked his way up from golf caddie at the Long Island Country Club in New York in the 1960s, has a self-confessed inability to take instructions and describes himself as incapable of rote learning. Despite that, he was inspired by ‘ideas’ and attended Harvard Business School, starting his Wall Street career trading commodities, which at the time were a backwater. His claim to fame is that he worked out how to hedge chicken feed prices (corn and soybeans), which allowed the major chicken supplier to McDonald’s to fix prices, enabling the fast-food chain to launch Chicken McNuggets. Yep,…