The difference comes down to one decision: whether you negotiate your pay alone or together with your colleagues.

When people bargain collectively, they win higher pay. The latest ABS figures show annual wage growth of 4.1% for workers on collective agreements, compared to 3% for those on individual agreements.

Over the course of a career, this widening gap adds up to tens of thousands of dollars in lost income. Factor in reduced superannuation contributions on top of that, and the difference is even starker.

Collective agreements are won and maintained by union members, so the more union members in a workplace, the more negotiating power workers have, resulting in better pay rises.

That is one of many reasons why union membership is now growing at its fastest rate in over a decade, particularly among younger workers.

The lowest pay rises come from people negotiating on their own, landing at only 3% over the past year. This isn't surprising - it's easy for an employer to say 'no' to one person, but it's much harder to say 'no' to their whole workforce.

Union fees are tax-deductible and cost as little as $10-$15 a week. In return, union members on average receive about $250 a week in higher wages. That payoff adds up fast and compounds year after year, like any reliable investment.

Membership also protects you when things go wrong. If your employer ever tries to short-change you or push you out, you will have trusted experts supporting you.

People spend a lot of time comparing the best investment options to get ahead financially. But one of the most reliable levers for boosting earnings is your very own bargaining power.

Some people assume unions are for someone else. But if you earn a wage, they're for you.

To find out which union you belong to, visit the Australian Unions website and sign up.

Joining your union is one of the smartest financial decisions you can make - and your future self will thank you for it.

We promise ourselves we'll get fitter, eat better, work smarter and spend less. But if there's one area where our good intentions tend to evaporate faster than a Boxing Day bargain, it's our finances.

I get it. I've spent years as a mortgage broker watching people squirm when the conversation turns to spending.

Not because they're irresponsible, but because they're human. We all are. We underestimate, we justify, we forget and sometimes (especially during the silly season) we simply look the other way.

In Australia, the spending spree doesn't start at Christmas. It kicks off at Melbourne Cup and doesn't slow down until after Australia Day.

That's nearly three months of long lunches, weekend getaways, gifts, celebrations and, "it's the holidays, why not?" purchases. It's fun. It's cultural. And it can absolutely derail your financial goals if you're not paying attention.

Whether you're saving for your first home, building an investment portfolio, or managing multiple properties, the truth is the same: you can't set meaningful financial goals until you know where your money is actually going.

Why most people avoid looking at their spending

Let's be honest. Tracking your spending during the holidays feels like stepping on the scales after Christmas lunch. You know it won't be pretty. You'd rather not know.

But here's the uncomfortable truth: avoiding the numbers doesn't change them.

A recent survey by Compare the Market found that half of Australians admit to lying about their salary, savings or spending.

Not to a bank. Not to a broker. To themselves and the people closest to them. That's not because people are deceitful, it's because money is emotional. It's tied directly to our identity, confidence and fear.

But if you want 2026 to be the year you finally get ahead, you need to lean into that fear.

Look at the last 12 months of your spending, especially the last three. Accept what you see without shame or excuses. That moment of honesty is where real financial change begins.

Why goals fail (and how to make them stick)

Most financial goals fail for one simple reason: they're built on guesswork.

People tell me all the time, "I think I spend about $3000 a month." Then we look at the data and discover it's actually $4500. Or $6000. Or more. Suddenly the deposit goal that should only take a year becomes a three-year plan.

This isn't about judgment. It's about accuracy.

When you understand your real spending habits (rather than the version you wish were true) you can set achievable goals. You can build a budget that reflects your actual life.

And most importantly, you can start making changes that stick.

Financial fitness is critical in 2026

Property markets move. Interest rates shift. Investment opportunities come and go. But the one thing you can control is your behaviour.

Think of it like getting a personal trainer. You don't hire one because you're already fit. You hire one because you need structure, accountability and expert guidance. Working with a mortgage broker or financial adviser is no different.

Professionals can help you understand your spending patterns, build habits that support your goals, stay accountable when motivation dips and adjust your strategy as your life changes.

As I've said publicly before, too many Australians underestimate the lifestyle changes required to take on a mortgage or build wealth.

Without clarity on where your money is going, you're flying blind. And that's when people end up in mortgage stress or abandoning their investment plans altogether.

Start now

If you're reading this in December or January, you're probably already deep in the silly season. That's perfect. There's no better time to start.

Track your spending for the next four weeks. Don't judge it. Don't justify it. Just observe it.

Then look back at the last 12 months. Notice the patterns. Notice the surprises. Notice the habits you didn't realise you had. That's your starting point.

From there, set one or two clear financial goals for 2026. Not ten. Not vague ones. Real, measurable goals grounded in real numbers.

Then get support. A broker, an adviser a coach - someone who can help you stay on track when life gets busy and old habits creep back in.

The bottom line

Most people think financial success starts with discipline. In my experience, it starts with the truth.

If you want 2026 to be the year you buy your first home, expand your portfolio, or finally start investing, you need to know yourself first. Your habits. Your blind spots. Your spending.

Lean into the fear. Look at the numbers. Accept what you see. Because once you know the truth, you can change it.

Globally, women's financial influence has also grown more rapidly than their male counterparts, with female-controlled wealth rising by more than 50%.

With Australia on the precipice of an historic intergenerational wealth transfer, this trend is expected to continue. Women are set to inherit and manage over 65% of the $4.9 trillion wealth transfer in Australia, becoming stewards of family wealth and long-term financial decisions.

Younger generations of women are also proactively boosting their financial acumen and investing more actively to grow their wealth.

As women become an increasingly important part of the investment landscape, there are many lessons to be learnt from this active and engaged investing cohort. Yet, behavioural biases, alongside lower confidence levels, present challenges along the way.

Lesson 1: Knowledge is power

In my role, I work with some of Australia's most successful investors, those who trade significant volumes with portfolio balances up to seven figures.

Over the past five years, female representation among these high-net-worth clients has almost doubled.

What might come as a surprise is that even among this sophisticated cohort, female investors frequently lack exposure to the technical analysis and market timing strategies that their male counterparts have honed over decades.

The reason is straightforward: women are typically entering the market later. While many male investors began trading in their youth, many women I speak with only began investing in the last five years.

The pandemic created a perfect storm - more time at home, better access to online education and heightened awareness of financial security. But a late start means fewer market cycles to learn from and less confidence navigating volatility.

Add to that the time pressures many women face with traditional caregiving duties, there's often limited bandwidth to consistently follow market indicators or trade actively.

Tailored educational content and digital tools can help strengthen financial literacy and support women seeking to learn more about investing. Dedicated professional support and guidance can also boost confidence for female financial decision makers.

Lesson 2: A patient focus on the long-term

Despite starting later, women have developed investing approaches that can deliver outperformance over the long-term.

In my experience, I have observed that male investors can be reactive, short-term focused risk takers, while women are typically patient and deliberate over the long-term.

They typically favour blue-chip stocks and dividend payers, building more balanced portfolios they're comfortable holding for years.

In volatile markets, this is a strength.

While men are often shown to chase trends or double down on risky positions, women clear the noise. They hold steady when others panic.

This discipline can pay off. For example, over 20 years, a model $100,000 portfolio with consistent annual growth of 7% p.a. would be worth approximately $387,000.

Bolstering this performance by just 0.5% p.a. can see this increase to $424,000 - that's an extra $38,000 return.

While women bring a wide range of investing styles - many are patient and disciplined, while others are confident and opportunistic - they share a dedication to methodical research.

This focus on fundamentals - earnings, valuations, business metrics - provides the confidence to stay the course.

Lesson 3: The cost of caution

But every strategy has its season, and at times, caution can carry a cost.

Currently, broader equity markets are showing signs of strength, with valuations in some large-cap stocks appearing elevated relative to historical averages.

This market dynamic has resulted in many women sitting on the sidelines, waiting for a pullback that may never come. They think, "It's too expensive now, I'll wait for a better entry". Meanwhile, others ride the momentum and capture the gains.

There's also a strong home bias. Australian women tend to focus on the ASX top 200, limiting diversification. Comfort with familiar markets is natural, but over-concentration at home can mean missed opportunities.

By contrast, many of my female, international clients are more comfortable maintaining globally diversified portfolios. For example, my Mandarin-speaking clients often incorporate exposure to Hong Kong, US and Japanese equities.

Overconfidence can hurt portfolios just as much as excessive caution can hold them back. The key is adding new tools to help make informed decisions in line with your risk appetite.

The future of investing

The future of investing won't belong solely to aggressive momentum traders or ultra-cautious buy-and-hold investors.

Rather, those who combine the best of both worlds - the discipline and patience of women, combined with the agility and confidence of men - will have a strategic advantage navigating an increasingly uncertain market environment.

With females becoming high-net-worth investors at nearly twice the rate of men, it will be imperative to arm them with the knowledge, tools, and frameworks needed to grow portfolios, ask sharper questions and back their own judgment.

The more women investing, the faster collective experience and confidence will grow. That same momentum is visible within the industry too, with a growing number of women professionals entering financial services.

With the largest intergenerational wealth transfer on record underway, the real test will be whether this current momentum can continue to build. From where I stand, I'm confident it will.

Over the past few years, greed has come to the fore, with investors tempted by very strong returns from share markets. However this can be high-risk, which applies to all investments, including superannuation.

For many of us, outside of the family home, superannuation will be the largest investment we have.

Most people remain invested in the default super investment option available through their fund.  This is usually a balanced option that combines returns with capital preservation.

Many Australians select this option when they set up their fund, look at their statement once a year, and that is about all the engagement they will have with their super.

However, there is a growing number of people who are becoming more active with their superannuation, particularly in switching investment strategies.

While it is good news that people are more interested in their superannuation, it is bad news that they may not be making the best decisions with their long-term retirement savings.

A recent study looked at 42,000 superannuation switch decisions between the beginning of January in 2019 and the end of March 2021.

This captured the extreme share market movements at the beginning of the COVID pandemic, when share markets fell by approximately 30%, but had largely recovered these losses by the end of 2020.

It found that more than half the superannuation switches resulted in a worse outcome for the member than if they had simply done nothing at all during this period.

This is an illuminating example of fear and greed in action.

It is understandable that people want to move into a conservative investment option after investments have already fallen substantially in value. Likewise, people tend be reluctant to move back into share markets until they have already risen 20%.

But this type of trading will result in members losing money. If this pattern of selling low and buying high is repeated, it can destroy most of someone's wealth.

It is not just superannuation that is affected by this. When investing in shares, it is often the case that if people had simply purchased shares and then not touched them for several years, the outcome would be better than more regular buying and selling.

Other research indicates the average investor return in share markets is about 3% a year less than the index. While this might not sound like much of a difference, over a long period of time it will compound into a significantly worse financial outcome.

Technology means it is now much easier than it was in the past to switch super, or buy or sell shares - people can simply change their options using a mobile phone app.

But while technology has improved our ability to access information and trade more in shorter periods, it has increased the risk that we could do something that worsens our financial position.

To a certain degree, Australians are protected by the limited investment options offered by super funds. For example, people are not able to put all of their super into bitcoin, or gold or whatever the latest investment du jour might be.

But we can still get caught in the trap of following last year's winner. This might work for a year or two, but historic one-year returns show that each asset class can move from the top to the bottom in a very short period of time.

All of the above is a long way of saying that the default investment option for superannuation is probably the best option for most people throughout their working life.

For those who have a financial adviser, this can be a valuable behavioural coach, particularly in times of crises, to remind us that this too shall pass.

Generally speaking, the point at which most people tend to seek advice is when nearing retirement.  A common question is whether their superannuation investments should change?

The simple answer is probably not - the average life expectancy for Australians means that many will spend close to 30 years in retirement, which is a long timeframe.

In order to preserve the wealth they have spent a lifetime building and to live off the income in retirement, having strong, stable investment returns is a must - enough to cover the pension withdrawal and also a couple of per cent for inflation.

It's also a good idea to have a few years' worth of pension payments in safe, secure investments that will hold their value in a market downturn.

All this will help with the 'sleep at night' factor when retired. So, this New Year, it could be worth making a resolution to leave super investments alone.

Ironically, I've struggled writing this article in a way that's fresh and new. Because the message hasn't really changed in 15 years.

Buy nothing new - get loads back in return! More money. More time. More peace. Healthier planet. More connected communities.

Gifts that heal not harm

We all know our planet needs our help. Mother Nature, who gives us food, medicine, shelter, health, joy, awe and wonder, is aching.

One of the simplest solutions - we need to consume less stuff.

Buying less gives us more. More time. More presence. More joy. (And less clutter. Less stress. Less debt.)

Make the gift match the message

If we want to show we care, gifting clutter no one wants, wrapped in plastic, heading to heaving landfill, in a world weighed down with wasteful consumption, mostly shows, that we don't care.

Christmas is the perfect time to remember, one of the most generous things we can do, for ourselves, families, communities and planet, is gift what we've got and buy nothing new.

We need more meaning - not more Labubus

We live in a culture that calls us "consumers" and tells us our role is to consume.

Drive to a place. Buy the thing. Give them your money. Upgrade the thing. Store the thing. Replace the thing.

When we step out of that script, something super awesome happens. We save money. We save time.

We reconnect, with each other (and what we've already got.)

When we choose reuse over retail, sharing over shopping, second-hand over brand-new, we remake our world.

We become citizens (instead of "consumers") creators and community members, with more time and money for the things that count.

So. Much. Stuff.

Our cupboards are full. Toy boxes overflow. Garages, bookshelves, wardrobes and kitchen drawers bulge. Recognising the extreme privilege of having too much stuff, it is a situation so many of us are in.

Regifting starts here. Think of these places as second-hand department stores!

Normalise re-gifting with a message of: "Because I love you, I'm choosing to spend time with you rather than money at the mall. Enjoy this book that I really loved and know you will too."

Sharing builds the kind of wealth money can't buy

Borrow the extra chairs. Swap kids' toys with mates.

Before you buy, ask neighbours do they have one you can borrow theirs?

Sharing can strengthen our social glue - the invisible infrastructure that makes our communities more connected, safer, resilient and fun. When we connect with our neighbours, loneliness drops, trust grows and everyday life gets easier.

Second-hand is first-rate

Second-hand gifts come with stories: they carry character, charm and far less environmental cost.

From books, to bikes to clothes to cookware, buying second-hand keeps valuable resources in circulation and money in our pockets.

A quiet rebellion that adds up

Choosing a thoughtful, waste-free Christmas isn't loud or flashy. It's subtle. It's practical. It works.

It saves households money during one of the most expensive times of the year and cuts waste at its source.

It reminds us that healing our planet doesn't require heroics, just better habits, done daily, shared widely.

This Christmas, be the one to call it

Spread the message to use what we've got, share what we can, reuse what works, donate what we don't need, buy second-hand, buy better, buy less.

Here's to more "Second Hand Santa", "Op-Shop Only", "Plants not Plastic", "Love Not Landfill" messages lighting up the Whatsapp channels

Let's make Christmas 2025 lighter on the planet, better to our bank balance and kinder to our kids' future.

They are the shock absorbers of our economy.

Women are more likely than men to absorb cost-of-living shocks by cutting back on essentials like healthcare, step in when childcare or elder care falters, and stretch themselves across both paid and unpaid work to stabilise the families and communities around them.

What the latest Financy Women's Index shows

But the latest Financy Women's Index (FWX) reminds us that while women have been the economy's invisible stabilisers, they can not be expected to remain so.

Shock absorption should not depend on gender. A resilient economy is one where pressure is absorbed by strong systems, fair workplaces and dependable care infrastructure, not by women stretching themselves further with each disruption.

This quarter's FWX offers reasons for optimism.

The Index rose to 79.44 points - a new record high - backed by real improvements in the financial foundations that matter most.

The superannuation gender gap continues to narrow, with the superannuation sub-index lifting by 0.6 points and the projected timeframe to equality falling from 17 years to 13.9. Underemployment also improved, with the gap between men and women narrowing in a way that speaks to genuine gains in job security and hours worked.

And the national gender pay gap remains at a historic low of 11.5%, reflecting the ongoing impact of transparency reforms and sustained momentum in female-dominated industries.

Economic red flags to watch

But the progress comes with signs of fragility. Women's full-time employment slipped slightly this quarter, while part-time roles increased.

National participation, which reached a record 63.5% in July, edged back to 63.3%. And in Melbourne West - the region most directly affected by recent childcare safety failures - women's participation fell sharply from 67.2 to 65.9% in a single month.

These shifts are not minor fluctuations. They reflect a core truth about how tightly women's economic confidence is anchored to the stability of Australia's care systems.

When childcare becomes unreliable or aged care difficult to access, women step back from economic participation to look after the kids or their elders. When costs surge, women adjust their work patterns and take on more unpaid labour. When labour markets soften, women's access to secure full-time roles becomes more fragile - they are more likely to be substituted into part-time or less secure work.

These patterns are not about preference or lifestyle. They are the predictable outcomes of systems that still rely on women to absorb the shocks that should be managed structurally.

Why Australia is at a turning point

What the FWX makes clear is that Australia now stands at a turning point. We know exactly what works: reliable care, predictable flexibility, fair pathways into secure work, and recognition of unpaid labour in the policies that shape lifetime financial security.

We also know that when these elements move in the right direction, women's participation lifts, their savings grow and their economic contribution expands - strengthening the national economy in the process.

The lesson from this quarter's FWX is not that women are faltering. It is that women have carried the burden of resilience long enough and that, with intentional investment, the burden itself can finally lessen.

While our progress is real and the momentum is visible, the opportunity now is to design an economy where resilience is structural, not gendered. Equality should not be something women must absorb their way into, but something Australia builds into its foundations.

Receiving an inheritance, regardless of its size, can be one of life's most emotionally charged experiences. It often comes at a time of grief and stress, making it challenging for us to navigate financial decisions.

It is a challenge likely to be experienced by more Australians as part of an intergenerational wealth transfer that is expected to result in around $3.5 trillion being passed to the heirs of older citizens by 2050.

It's a monumental movement of wealth that will shape how people spend, save and invest.

Pause before you act

Your first thought should be: don't rush. When a financial windfall lands, many experts agree that doing nothing immediately is often the best first step.

People who wait longer and give themselves space to process the emotions often make clearer, more informed decisions later, setting themselves up for better long-term outcomes.

Of course, it can be instinctive to want to do the exact opposite. A beneficiary of a Will may feel the urge to purchase an item they've been unable to afford previously. Or they may be tempted by bigger ticket purchases that were previously out of their reach.

Impulsive spending when stressed or at a time of loss, can lead to quick purchases on depreciating assets like luxury vehicles or overseas trips. This may erode the principal and the long-term benefit of an inheritance.

Likewise, a desire to make the money "work hard" straight away can also backfire if choices are rushed or not aligned to personal goals or risk tolerances.

The cost of such a decision could include losing money on a high-risk investment or foregoing potential returns by opting for an investment too conservative for your risk profile.

Finding a temporary home for your funds

A practical interim step can be placing an inheritance in a secure, income-bearing environment while you consider your next move.

So, what are the options?

For many, a simple savings account paying conservative but reliable interest on the lump sum inheritance can be a logical spot to park their new cash.

For other Aussies, they may prefer a term deposit, locking up their funds for a set period of time in exchange for a slightly higher rate - though that comes with less flexibility.

Beyond these traditional cash options, fixed income-style investments - such as government bonds or professionally managed funds - can provide regular income and help preserve capital.

Accessing these investments directly has often been complex or expensive for individual investors. However, in recent years, technology has made access to these types of investments simpler, allowing the everyday investor to participate without needing large minimum balances or complex structures.

Make a plan for the long term

Once an appropriate safe harbour is established for the funds, the next stage is to plan how the inheritance can support your broader financial life.

That might involve strategies such as paying down debt, building an investment portfolio, making super contributions or even setting aside money for future generations - but it depends entirely on personal goals, time frames and circumstances.

If needed, consider engaging a qualified financial adviser or discuss your situation with trusted family or friends who can provide perspective.

Take your time

Again, it's key not to rush these decisions. An inheritance is a gift that can improve financial security and allow people to reach important goals.

By slowing down decisions and giving yourself time to reflect, recipients can put themselves in a stronger position to make choices that strengthen future security - rather than rushing into riches that fade too fast.

Long queues stretch around the city, where people wait patiently to enter the physical storefront of a gold bullion dealer.

It feels almost anachronistic. In an age where groceries arrive in hours, payments clear in seconds, and nearly every asset can be traded online, many investors still prefer to buy their gold the old-fashioned way... by hand.

Buying physical bullion, though, isn't just a fun throwback. It's expensive and time-consuming, as anyone standing in those lines could tell you.

For most investors, a gold or silver ETF offers a far more efficient alternative. These funds provide exposure to physical bullion at a fraction of the cost, some as little as 0.15% per year, without the added burden of insurance, storage, or brokerage fees.

Rather than clutching gold bars on the street or hiding them under the bed, investors can own gold directly through an ETF traded on the ASX. Each investor's holdings are backed by specifically allocated gold bars stored in high-security vaults and verified by independent auditors.

These funds are professionally managed, ensuring the gold is properly stored, insured, and accounted for at all times. Safekeeping aside, liquidity is one of the biggest advantages - investors can buy or sell their holdings in seconds, with no queues, no haggling over premiums, and no need to handle the metal themselves.

That said, you can hardly blame the people for queueing up.

Gold and silver could be the trades of the year.

Retail investors everywhere have adopted a "better late than left behind" mindset as markets wobble and headlines grow darker. Some of the demand is sound portfolio hedging, but much of it is good old-fashioned FOMO as precious metals have outshined nearly every other asset.

Even central banks are piling in. With debt mounting in the United States, France, and Japan, traditional safe havens like bonds and cash no longer look quite so safe. Central banks have bought more than 1000 tonnes of gold each year since 2022, a signal that the rush for hard assets isn't limited to retail crowds.

But before heading out to join the queues, consider this: the Global X Gold Bullion ETF (GXLD), Australia's lowest-cost physical gold ETF, charges just 0.15% per year - that's $1.50 per $1000 invested.

Compare that to the 1.5%-2.5% storage fees charged by many bullion providers (plus insurance and brokerage premiums), and the difference quickly adds up.

If that isn't convincing enough, investors' actions speak for themselves.

As of October 20, 2025, Australian gold ETFs have attracted a record $997 million in inflows year-to-date, surpassing the previous annual record of $981 million set in 2020.

Investing in gold-backed ETFs is not only cheaper and more accessible than holding bullion - it also saves investors from the hidden costs and long waits of physical ownership.

In today's markets, that time and efficiency might just be worth their weight in gold.

For too long, digital assets such as crypto have grown faster than the regulatory frameworks designed to protect investors and consumers. The fallout from the collapse of global exchanges like FTX, where billions in client assets were lost due to poor governance, is a stark reminder of what's at stake when regulatory gaps are left unaddressed.

The draft legislation sets out to require crypto businesses to follow the same rules as banks and other financial companies. These businesses must get an Australian Financial Services Licence (AFSL) and will be watched by the Australian Securities and Investments Commission (ASIC), Australia's corporate regulator. The policy isn't about the cryptocurrencies themselves, but about the companies that hold and manage them for customers.

This change is designed to prevent unregulated companies from moving large amounts of crypto without proper checks or protections.

It also ensures any business holding crypto on behalf of clients will face clear licensing, disclosure, and conduct rules. These include minimum standards for custody (and how assets are stored) and plain-English risk disclosures so investors know exactly what they're signing up for.

Building confidence: Advisers and investors

A significant impact of the draft legislation is the clarity for financial advisers and their clients. Until now, advisers have been largely unable to recommend or facilitate crypto investments due to regulatory uncertainty. This has left many Australians, especially those who rely on professional advice, unable to access cryptocurrency safely, even as self-directed investors and SMSFs have jumped in on their own.

By treating crypto like any other financial product, these new measures allow advisers to support clients who want access to crypto, allowing them to provide holistic advice about all their current and future investments. Advisers will be able to assess, recommend and monitor crypto allocations with the same rigour as other investments, ensuring clients' interests are protected and their portfolios are properly diversified.

This regulatory clarity also unlocks the door for larger investors like superannuation funds. With the new framework, these investors can participate with confidence, knowing that platforms are licensed, assets are securely stored and consumer protections are in place. This is likely to accelerate the mainstream adoption of crypto, driving greater innovation and economic growth here in Australia.

Custody is critical: Lessons from FTX

The new, purposeful legislation is undoubtedly a good thing.

At the heart of the reforms is a simple but powerful message: proper custody processes are non-negotiable for protecting everyday Australians who invest in crypto. Put simply, custody is the process of holding and managing assets on behalf of investors and ensuring that it is done safely. The draft law mandates that firms must comply with new minimum standards of custody for asset-holding, transaction, and settlement functions, a positive step towards protecting investors.

This means crypto companies must follow strict standards set by ASIC. If they break these rules, they can be fined. The companies must also keep customers' money separate from their own, have clear records and make sure customers' assets are not mixed with the company's money or used for the company's own trading.

At CloudTech for example, we use a combination of offline and online asset storage, to ensure the cryptocurrency is accurately attributed to the investor and can be withdrawn at any time. This directly tackles the failures seen in the collapse of FTX, where poor custody, misuse of customer funds and a lack of transparency led to catastrophic losses for investors.

For consumers, these new processes will certainly lead to increased protection for their investments. However, making the framework more black and white will reduce the need for court decisions to outline what is right and wrong and that is something we will push for during the consultation process.

A platform for growth

Importantly, these reforms aren't just about risk. They're about making Australia a serious player in global digital finance.

By leveraging existing industry standards, the proposed rules provide a familiar and robust framework for businesses, while leaving room for innovation. Smaller platforms with limited activity are set to be exempt from the full regulatory burden, ensuring that creativity and competition are not restricted.

With clear rules, Australia can attract global investment, talent, and partnerships, while supporting local start-ups and established players to build the next generation of financial infrastructure. As super funds and institutional investors gain confidence to invest, the benefits will spread across the economy.

The focus now is on how quickly Australia can establish frameworks so everyone can invest in crypto safely. Public consultation on the draft legislation is open until late October and we hope to see it enter Federal Parliament in early 2026.

Mandy Jiang is the executive director and CFO of CloudTech Group

Just by being human, we've been compelled to tackle the central challenges of life, which also happen to be the central challenges of investing.

Having a good investment experience is about more than returns. What matters just as much is how someone feels along their financial journey.

Investing better means living better. Not just because it can lead to having more money, but because many of the habits that serve us well as investors serve us well in life, too.

By integrating our life and investment philosophies, we can see money as a tool that empowers our plans rather than as a goal in and of itself.

Here are six principles that can help you in life and in investing.

1. Uncertainty creates opportunity

Uncertainty can be uncomfortable, but we often forget that without it there would be no opportunity. When we decide to move to a new city or change career paths, we don't know exactly what will happen.

There's always a risk that things won't work out the way we had hoped, yet these experiences help us grow and can change our lives in amazing ways.

When you invest, returns are compensation for taking on uncertainty. Without risk, there would be no reward.

But there's also risk in choosing not to invest, because if your money doesn't grow over time, it won't go as far in the future. Cash hidden under a mattress can't keep up with inflation.

As investors, it's easy to get caught up in worrying when markets drop.

But when we realise that investing means getting paid for accepting risk, we can start to see uncertainty as a source of opportunity, even during times of market volatility.

Embracing uncertainty rather than trying to avoid it can help us live better. This approach to life and investing guides us through uncertain times and helps refocus our attention on the opportunities ahead.

The best antidote to uncertainty is educated optimism.

2. Plan, don't predict

Plan for what can happen, rather than trying to predict what will happen.

We've all tried to predict what will happen in life, only to be disappointed when it didn't turn out the way we anticipated.

But human beings develop strategies to deal with the fact that none of us has a crystal ball.

We apply to a list of potential universities, not just our first choice. We interview a series of job candidates, even when there's a clear front-runner. We wear a life jacket on a boat, even though we know how to swim.

Investing is just like life: For maximum peace of mind, we make plans that account for a broad range of possible outcomes. This way, you can feel empowered by the unknown instead of paralysed by it.

Research has shown that stock pickers consistently underperform their benchmarks.

But you don't need to be able to predict winners to have a good investment experience. Over the past century, markets have returned, on average, about 10% a year.

So don't try to outguess markets - go with them, even when that means being prepared to live through some short-term disappointments.

Odds are you'll have a better investment experience in the long run.

3. Flexibility adds value

When you're in the market for a new car, you probably know exactly what you want, down to the colour of the interior.

But it can be hard to locate the precise model you're after, and you may have to pay a premium for it.

If you're willing to be flexible with your choices - going with black instead of grey or sacrificing a sunroof -you can get that new car faster, and at a better price. Life rewards flexibility over rigidity.

Flexibility adds value in investing, too. Staying flexible around what stocks to hold and when to trade can give you an advantage.

While index funds are a solid, low-cost solution for many investors, they are forced to trade on certain days to track their index.

The funds may not get the best prices on the securities they hold, resulting in investors leaving returns on the table.

In life, as in investing, sound decisions are often grounded in research and implemented with flexibility. Flexibility adds value because it leaves space for judgment.

4. Harness the power of compounding

Your life is the result of the cumulative effects of the decisions you make every day.

Even the small, seemingly inconsequential decisions we make every day can have a big impact over time.

Whether we're trying to run a faster kilometre or master a foreign language, the best way to stay motivated is to keep reminding ourselves of the rewards that come from patience and commitment.

Just a little bit of time every day can add up to a lot of progress.

The same is true of investing. A 10% return on your investment each year - similar to the stock market's historical annualised average -would double your money every seven years.

Having a lot of time can help an investor make up for not having a lot of money.

In both life and investing, compounding is a powerful force. You might say that the life equivalent of compound interest is wisdom.

Learning from the past can help us make better decisions in the future, and those lessons build on one another over time.

5. Control what you can control

While you can't control the world around you, you can control how much risk you take.

So much in life - good and bad - is out of our control. Sudden storms can pummel us in the middle of summer.

A sporting team that seemed destined for a disappointing season can come out of nowhere to win a championship. While we can't control everything that happens, we can take charge of how we prepare for and react to life's curveballs.

As human beings and investors, all we can do is try to make the best decisions possible with the information we have available, plan for a range of outcomes, and relax knowing we've taken a sensible approach.

In investing, you can't control the ups and downs of the market. What you can control is how much you save, the risk you take on, and the guidance you seek in putting together an investment plan that's right for you.

The future is uncertain, but the quality of your decisions doesn't have to be. When you make informed choices, you have the satisfaction of knowing you did everything within your control, even if things didn't work out exactly the way you'd hoped.

6. Tune out the noise

When you focus on an important goal, other people's opinions can be distracting, even derailing.

Who cares if a friend doesn't agree with your new exercise plan, as long as it's working for you? Once you've done the research and come up with a road map for success, rally your supporters and turn down the volume on your detractors.

This mindset is also key to being a successful long-term investor. Many of us are exposed to a barrage of investment commentary -for example, TV pundits handing out stock tips and friends touting the 'next big investment'.

As tempting as the ideas may sound, they're potentially harmful distractions. Things that seem too good to be true usually are - and yielding to your 'fear of missing out' can exact a deep price in the form of lower returns over a lifetime.

We all know that markets rise and fall- so we can be disappointed by downturns, but we shouldn't be surprised by them.

Reacting emotionally to market volatility may be more detrimental to your portfolio performance than the drawdown itself.

How do you tune out the noise? Working with a financial advisor, like working with a personal trainer, can help you see past the headlines to cultivate discipline and the sense of security that comes from knowing you have a well-thought-out plan.

For investors, there is a risk of FOMO - fear of missing out - if they aren't investing in these themes.

While this is understandable, it's important that investors remember that achieving good long-term returns isn't dependent on what's "hot" today.

Proven performance

Fortunately, there's no need to just take my word for this.

The investment portfolios that we manage for our clients have outperformed the median superannuation fund over the past 12 months by 4%, despite having no exposure to CBA and being underweight the booming US tech giants, demonstrating the strength of a diversified, actively managed approach.

The challenge for investors is to recognise where they are basing their decisions on emotions such as fear, and where they are making decisions on sensible, long term views.

Investor behaviour

There has been a lot of research done into investment biases and how these affect investor behaviour.

With a high level of volatility in markets, and a lot of chatter about what President Trump might do next with tariffs, how AI might upend markets, and whether the RBA will keep lowering interest rates - to name just three recent headlines - certain biases are probably more prevalent than ever.

Anchoring bias, for example, refers to decisions made that are based on a single point in time rather than a holistic view.

For instance, investors might look at a company's performance or stock price today, and use this as an anchor to make a future price prediction, without considering how accurate or representative the current price point is.

Availability bias

Another bias is availability bias, where investors rely on the first piece of information they hear about a company, or the knowledge that comes most readily to mind, without fully considering other information.

This is particularly likely to happen at the moment when there is so much talk about the likes of Nvidia, Tesla and Microsoft.

A disciplined investment process, built on a long-term and diversified strategy, is the best way to minimise the risk of these kinds of investment behaviours.

Investing's free lunch

We've long been advocates of diversification.

As Harry Markowitz - the father of modern portfolio theory - once said, diversification is the only free lunch in investing.

This means more than adjusting the balance between, say, equities and bonds in a portfolio, or investing in global equities as well as Australian equities. For us, this means including different asset classes such as listed property, global infrastructure and high yield debt.

The key is to maintain a tight focus on investing with the discipline to avoid overpriced investments, and focus on long-term expected returns.

For example, this focus has led us to have zero exposure to CBA for the whole financial year. This is at a time when the ASX 200 increased 14% during the year and CBA contributed nearly 30% of this return.

Lower volatility

Likewise, we had an underweight exposure to large US equities, particularly the Magnificent 7.

The US market performed well for the year rising 13.6% and those stocks were about 50% of the return.

However, our global exposure was ahead of respective benchmarks and importantly we had much lower volatility when the US market went through its near 20% correction in March 2025.

Our investment changes throughout the year have reflected an overall need to be more defensive when share markets are approaching being fully valued.

This may seem strange after a year of 10% plus returns, however with the US share market having been on a strong upward trajectory since the end of the global financial crisis and the Australian share market averaging 13.3% per annum over the last five years, it makes sense that these share markets are now starting to be fully valued.

Most importantly for investors, they shouldn't be thinking 'What's going to happen over the next six to 12 months?', but rather, 'How long do I wish to invest for, and what do I want to achieve?'.

According to the Australian Bureau of Statistics (ABS) the national population is projected to reach between 36 million and 45 million by 2056.

The country recorded net overseas migration of over 667,000 people in 2024, slightly down from 739,000 in 2023 but still significantly ahead of government forecasts by approximately 200,000 annually.

We believe this strong migration trend is more than a statistical anomaly. This structural population growth and migration-driven demand is going to serve as key catalysts for long term investment opportunities, particularly benefiting Australia's small cap companies.

Population growth boosts aggregate demand and acts as a shield against economic contraction, while simultaneously allowing the economy to expand without rapidly encountering labor market constraints.

Australia is now entering a multi-year, demand led growth phase, particularly in segments where supply is structurally lagging.

Housing undersupply is a persistent issue across all states now.

As of March, the total number of dwelling units commenced rose 11.7% to 47,645 dwellings, far behind both on estimates of demand and the government's target of building 1.2 million homes in five years.

As a result, vacancy rates in major cities have dropped below 1%, despite interest rate pressures.

Healthcare sector is gaining traction due to expanding patient loads, growing aged care requirements and in financial services there is increased activity in mortgage origination. We see these trends accelerating in response to population growth.

Much has been discussed about the parallels between Australia and Canada, both of which have embraced high immigration as a growth lever.

However, Australia appears to be better positioned to monetise the demographic shift. Australia posted GDP growth of approximately 2.3% in 2023, compared to Canada's 1.2%.

Despite similar migration rates, Canada is grappling with demographic and housing challenges, while its real GDP per capita is projected to decline.

Meanwhile, Australia is leveraging its immigration tailwinds more effectively, helping maintain consumer confidence and labor market stability.

In terms of investment strategy, we believe the most effective exposure to these macro forces lies in high-quality small and mid-cap companies with the capacity to scale into under served market segments.

The healthcare industry, in particular, is expected to continue its upward trajectory, with a projected compound annual growth rate (CAGR) of 4.5% from 2021 to 2028, driven by an aging population's increasing demand for healthcare services and the pressing need for digital infrastructure.

The industry offers favorable demographics due to Australia's aging population, a strong focus on research and development (R&D), a robust regulatory framework, public-private partnerships and opportunities in medical tourism.

Looking ahead, the Datt Capital Small Companies Fund is well positioned across thematically aligned businesses in residential development, diagnostics, mortgage servicing and digital financial infrastructure.

Passive strategies often overlook these sectors, but companies in these sectors offer strong earnings growth and pricing power. For investors willing to target underserved pockets of the economy, the implications are potentially transformative.

Australia's world-class superannuation system has once again been in the spotlight last week.

Super is one of the most powerful tools we have to ensure financial security in later life, yet its full potential remains unrealised for many working Australians.

That's why the move to increase the Superannuation Guarantee (SG) contribution to 12% is far more than a policy tweak or a small extra contribution on the payslip - it's a transformative step that will help more Australians realise long-term financial wellbeing and enjoy their retirement to the fullest.

When your super earns returns, those returns are reinvested and start earning their own returns. Year after year, decade after decade, it builds on itself. Starting early and contributing consistently matters enormously.

Even this seemingly modest lift of half a percent to 12% will, over time, change the outcomes for millions of Australians - particularly now that the system is reaching full maturity.

What this will mean for young Australians

Let's take a closer look at what this increase means in real terms.

AMP modelling shows that a 25-year-old with an existing super balance of $26,957 would be around $8000 better off in just 10 years with the higher SG. That may not sound like much, but it's a meaningful boost to their financial confidence early in their career.

Fast forward to retirement age in 2065, and the benefit becomes even more profound. At 12% the same individual is on track for a nest egg of around $3.17 million, approximately $120,000 more than under the previous 11.5% rate.

That extra amount is just shy of a typical first home buyer's deposit in Australia today - providing extra funds for healthcare, travel, or simply peace of mind in retirement.

That's the magic of compounding.

Every extra dollar contributed today doesn't just sit idle-it grows, multiplies, and works harder over time. The earlier and more consistently we invest in super, the greater the rewards. And for younger Australians, who have decades ahead of them, the benefits of a higher SG rate are especially compelling.

Retiring with dignity

But this isn't just about numbers - it's about people.

More than 710,000 Australians are expected to retire over the next five years. Yet many older Australians still find our system too complex or don't engage with their super until it's too late.

According to AMP data, three in five Australians aged 50 and over are more worried about having enough in retirement now than they were 10 years ago, two in five are worried about outliving their wealth, while almost one in five don't have a will.

Retirement should be a time of enjoyment, not anxiety. Strengthening the system by lifting the SG to 12% helps ensure that the hard work Australians put in today translates into security tomorrow. Every Australian deserves the chance to retire with dignity and choice.

The government deserves credit for continuing to improve the system. From this year, super is paid on Paid Parental Leave for the first time - a significant step in recognising the impact of career breaks on retirement balances.

Moving to 12% strengthens the entire retirement system. Australia's superannuation model - combining individual saving with the universal age pension safety net - is the envy of the world. A stronger, better-funded system reduces pressure on taxpayers while giving retirees more freedom and comfort.

Ultimately this is more than a policy: it's a promise - a promise that we value the future of every worker, believe in the power of long-term planning and that we want help more Australians create their tomorrow.

They will now have to assess a customer's suitability for the agreement before providing it.

It never made sense that a teenage retail worker could sign up you up for a potential liability that can have profound impacts on your borrowing capacity, credit score and cash flow.

And yet a mortgage lender or a broker has an obligation to assess your affordability for a much more valuable asset, even considering potential changes in circumstances.

You'll argue the sums involved are vastly different and you are right, but equally there's a vast difference in the outcome. One sees you with a roof over your head and the other might be a new pair of jeans or a haircut.

The biggest challenge we see as brokers around BNPL is they can be stacked - there's no consideration for repayments you're already making when the new facility is provided. Effectively you can sign yourself up for a number of facilities where the total repayments consume or exceed your income for the period. Inevitably, you then rely on another facility to make ends meet.

The repayments are often reasonably small, but add a few of them simultaneously and suddenly you can't afford to buy groceries. You're then resorting to a different type of credit and the cycle perpetuates. If you miss a repayment the fees are generally disproportionately high.

It's all good being interest free, but fees or interest are costs all the same.

There's also the matter of suitability.

How can it make sense to pay off a pizza over four equal fortnightly repayments? When pizzas, meat and other small ticket consumables became available under BNPL, the problem was highlighted.

While there's a reasonable argument for larger purchases like car repairs, items that are consumed well before the repayments are made just does not make sense.

You could argue that they are no different than using a credit card, and this is true.

But the accumulation of cards is tested and limited, and there are evident consumer warnings about the true cost of the card if you're only making minimum repayments. Not to mention that the repayments rarely take up your entire pay.

BNPL schemes coming under greater scrutiny will seem a great inconvenience to consumers at first, but the positive effects to your credit history, cash flow and financial management will last a lot longer than the new shoes you would have bought.

The Government passing more responsibility patients to pay more for their aged care follows recommendations from the Royal Commission into Aged Care Quality and Safety, the Final Report of which was tabled in the Australian Parliament in 2021.

The government will continue to pay around 75% of the cost of care for older Australians.

However, from November 1 all self-funded retirees will pay between $20,000 and $50,000 more per year, depending on the quality of their room, the facility they choose, and their means. Three quarters of part pensioners will contribute more and 30% of full pensioners will contribute more.

These changes to aged care in Australia were supposed to be introduced on July 1 but were delayed by four months following concern from the industry.

'Necessary changes'

I firmly believe these changes are necessary for the future of the industry.

Nearly half of Australia's residential aged-care providers are operating at a loss, with too many going out of business including 32 Australia-wide in the July-September 2024 quarter.

For facility owners to continue to invest in the sector and provide more beds, the funding model needs to change quickly.

There is currently an aged-care bed shortage in Australia. With Australia's ageing population, over the next 25 years demand for aged-care beds in Australia is projected to grow more than 300%, from 180,000 beds to more than 750,000 beds.

The government has realised that for this to happen, more aged-care costs must be passed on to those who can afford it.

Importantly, low-means residents will be no worse off.

Key changes to aged care fees from November 1

Refundable Accommodation Deposits (RADs)

Currently RADs (formerly known as bonds) are fully refunded when a resident leaves care. Under the new rules, providers will retain 2% of the RAD per year for up to five years, meaning a total of 10% can be retained by the facility.

Daily Accommodation Payments (DAPs)

Interest rates on unpaid RADs, currently locked in at the time of admission, will instead be indexed to inflation (CPI) twice a year.

Hotelling supplement

Previously covered entirely by the government this daily fee, which will be up to $13.46, will now be means-tested, with residents contributing none, some or all of it, based on their financial circumstances.

Higher Everyday Living Fee (HELF)

Replacing the current extra or additional services fee - which ranges from $0-100 - this charge will be negotiated only after a resident has moved into care, with built-in cooling-off periods and regular reviews. It will also be indexed to CPI.

Non-Clinical Care Contribution (NCCC)

The NCCC will replace the current means-tested fee, which has an annual cap of $34,311 and a lifetime cap of $82,347. While clinical care will be fully funded by the government, residents will pay up to $101.16 per day with no annual cap, but a higher lifetime cap of $130,000

The Basic Daily Care Fee, which is set at 85% of the full pension, remains unchanged under the new rules.

Key financial considerations include:

• RADs will remain exempt from pension assessments and remain government guaranteed.
• Residents' contributions will need to factor in CPI-linked fee increases.
• The value of a resident's principal place of residence will remain capped at $206,663 for means-testing purposes.
• All protected person rules for the family home will still apply.

Residents who are already in aged care before November 1 this year will be grandfathered into the current system.

Those planning to move into care in the near future should assess how much more it may cost them if they enter after November 1.

The new rules add another layer of complexity, especially with the introduction of CPI-linked fees and the increased emphasis on means-testing. Although the rules aim to create a more sustainable aged-care sector, they also mean those who can afford to pay more will contribute more for their care.

Understanding these changes and determining how much money a person could save by entering aged care before the transition date requires careful planning.

In the past month, the world's largest cryptocurrency has surged more than 20% since its "Liberation Day" lows and broken fresh records of US$112,000.

The coin's performance has far outstripped the performance of the S&P 500 and Nasdaq over the same period (as the chart below shows) and the meteoric rise has seen its market capitalisation exceed US$2 trillion.

A key support for Bitcoin has been the accelerating de-dollarisation trend.

In April, Bitcoin appeared to benefit from capital rotation associated with "sell-America" positioning and growing scepticism around US monetary dominance.

While still in early stages, this narrative is gaining traction among investors seeking more neutral assets in an increasingly fragmented global system. Bitcoin's finite supply, global accessibility, and resistance to centralised control make it uniquely suited to ride this wave of monetary realignment.

Another key driver of Bitcoin has been the US's political re-engagement with the crypto industry. This narrative has taken many forms. On the legislative side, a marquee stablecoin bill recently advanced to the US Senate after weeks of opposition.

While the legislation is yet to be passed, it sets the stage for a new level of crypto adoption in the US and will be a massive step in policy clarity for the industry if approved.

Another display is Donald Trump's recent Trumpcoin-holder's dinner held on May 22. While the gala offered little in the way of announcements, the Trump family's embrace of cryptocurrencies shows that the industry is top-of-mind for the new administration and has continued to inspire bullish sentiment among speculators.

In addition, President Trump's more conciliatory tone on trade tariffs this month, marked by the reopening of trade talks with China, has helped to boost investor confidence. For something as sentiment driven as Bitcoin, that kind of backdrop is usually enough to spark a rally.

These bullish catalysts are being reflected in capital flows. Australian Bitcoin ETFs have attracted roughly $134 million in inflows so far this year, double the amount recorded over the same period last year. In the past month, local Bitcoin ETFs have seen $65 million in new flows, up sharply from just $6.9 million in March 2025.

So, should investors be rushing to buy Bitcoin? As always with cryptocurrencies or any growth assets, there are still meaningful risks to consider.

Regulatory inconsistency remains a major challenge, with policy frameworks fragmented across jurisdictions and subject to sudden change. Political reversals are also a persistent risk, particularly as digital assets re-enter the spotlight.

On the market side, Bitcoin's correlation with risk assets - especially technology and growth stocks - means it remains sensitive to shifts in investor sentiment.

In a low-growth, high-volatility environment, or if central banks turn more hawkish in response to tariff-driven inflation, Bitcoin could come under renewed pressure. Still, Bitcoin's role as the cornerstone of the digital financial ecosystem positions it as a unique asset, well-placed to navigate these challenges

Given the strength of the above catalysts, we do think the potential for Bitcoin to achieve a higher price has become more evident. In terms of price targets, we believe Bitcoin could reach somewhere between US$150,000 to US$200,000 by the year's end - assuming all key catalysts align, that is, positive political engagement, institutional rotation, and a favourable macroeconomic environment.

Ultimately, while investing in cryptocurrencies will always carry a degree of intrinsic risk, we believe Bitcoin presents a diversification opportunity - particularly for Australian investors not yet exposed to the asset class.

For those unfamiliar with the complexities of crypto exchanges and decentralised finance, Bitcoin ETFs offer a straightforward, regulated entry point.

These products remove the technical barriers associated with managing digital wallets and private keys, as custody and security are handled by professional fund managers.

Investors can access Bitcoin exposure through the same online brokerage platforms they use for equities and traditional ETFs, making it easy to integrate digital assets into your portfolio.

Many SMSF investors have maintained a strong home country bias, often overweighting Australian shares due to their familiarity and appeal of high dividend yields, including the associated franking credit system.

While these features can be attractive, Australia only makes up around 2% of the global share market, meaning investors are missing out on diversification across sectors like healthcare, technology, and consumer brands that are underrepresented locally.

Familiarity with domestic stocks can create a false sense of security, potentially increasing concentration risk and reducing long-term portfolio resilience.

Although Australian shares may occasionally outperform global markets, like we saw in 2009 and 2010, this isn't guaranteed nor consistent, and there are often extended periods where they lag behind international counterparts.

ETFs offer SMSFs a simple, low-cost way to access global markets and diversify across geographies and sectors, without the need to pick individual stocks.

ETFs tracking global shares help investors build a more balanced portfolio aligned with long-term retirement goals, because true wealth isn't just mined from the Australian outback, but built by exploring opportunities beyond our borders.

Yet SMSFs are largely staying home.

Recent data release by the ATO showed that SMSFs' assets under management (AUM) stood at a record $1.02 trillion in the December quarter of 2025, with almost 30% of that invested in Australian shares and just 2% invested in individual offshore equities, or $18.65 billion.

SMSFs invested a near record $277.6 billion in Australian shares, or in the December quarter, representing 27.2% of all SMSF assets. In addition, SMSFs had invested a record $168 billion in direct Australian property, accounting for 16.5% of their total assets.

SMSFs held another $161.4 billion in cash investments as at December 2024, up from $160.7 billion in the September quarter, or around 16.0% of their total assets, despite falling savings account returns.

RBA data shows that bank term deposit rates across all maturities averaged just 3.20% p.a., down from 3.25% in February, while rates on one-year deposits fell to 4.0% from 4.1%. By staying invested in cash, SMSFs could be missing out on much greater returns elsewhere over the long-term and could be falling behind when adjusting for inflation.

Arguably, many SMSF portfolios need greater diversification and exposure to international share investment, which can offer more opportunity.

By investing internationally, you gain access to leading global companies such as Nvidia, Microsoft, Apple, Google, and Amazon and sectors such as robotics, AI and healthcare that are underrepresented in Australia.

International shares allow you to spread your investments across more countries, industries, and companies, reducing reliance on the Australian share market and economy. An important lesson when it comes to investing is that different markets perform differently over time. International exposure lets you benefit from growth in regions or industries that may outperform the Australian market at various times.

It's also evident that the US share market has easily outperformed the Australian share market in recent years.

Whereas the Australian share market has gained around 51% on a price return basis (94% if you include dividends) over the past five years to May 5, the Nasdaq Composite Index down is going to almost double, or 128% over the same time., and the S&P 500 has moved ahead 111%.

There are other diversification benefits of investing in international shares. Investing in unhedged international shares provides protection against local equity market volatility, whereby any fall in the Australian dollar helps to cushion equity market losses.

That's because a falling Australian dollar boosts returns for international investors when assets are converted into local currency. So if, for example, the Australian dollar falls 10%, the value of offshore investments would rise by 10%. For investors in offshore assets, such currency movements would represent a real gain on their portfolio.

ETFs have opened up the world of international shares and significantly reduced their costs. Traditionally, investing directly in international shares often involves higher brokerage fees, foreign exchange charges, and other costs, which eat into your returns, compared to investing in Australian shares alone.

Over time, these expenses can significantly erode returns. However, with an investment in an ETF, in a single trade, you can gain exposure to hundreds of international companies, and while there is a management fee associated, an ETF helps reduce the complexity of extra transactional and cumbersome fees.

There are hundreds of ETFs listed on the ASX which offer exposure to both developed markets and emerging share markets, which can help to build out the growth element of SMSFs portfolios potentially helping to provide much more robust returns over time.

Sticking only to Australian shares is like booking a holiday and never leaving your postcode - international markets open the door to a whole world of growth. For SMSFs looking to make the most of their retirement years, that extra passport stamp of international diversification could make all the difference.

Let's be honest, whoever takes office is walking straight into a cost-of-living crisis and a housing affordability nightmare, not exactly a dream. But beyond politics, there's something every investor should be asking.

How will the election effect the direction of the stock market? Let's unpack it.

Historically, it's simple: Labor spends, Liberal saves. And while both parties are offering similar short-term sweeteners, like tax relief and lower energy bills, their broader economic strategies are worlds apart.

Liberals want to tighten the belt. They're promising to slash more than $40 billion from the national debt through fiscal consolidation, all while championing lower taxes and deregulation.

This is music to the ears of big players in mining, energy, and financials, the heavyweights of the ASX. Plus, their embrace of traditional energy alongside renewables could be the boost the energy sector desperately needs, which is already down more than 40% since September 2023.

Labor, meanwhile, is placing its chips on growth through spending, pledging $22.7 billion under the "Future Made in Australia" plan to drive domestic manufacturing and job creation.

That could help infrastructure, housing, and renewables... but let's be real, those aren't the fastest-moving sectors for growth-focused investors. Think REITs and infrastructure stocks, not exactly rocket ships.

But here's the kicker.

Since 2004, every time Labor has held office, the stock market has delivered around 8% growth over a four-year term. Respectable, sure. But they were also in charge during the 2007 crash.

Meanwhile, under Liberal governments, the market has never produced a negative return across any four-year period since 2004, with average gains of 35%. That's not just good-it's powerful.

So, what's the takeaway?

If Labor wins, prepare for slower gains in more defensive sectors. But if the Liberals take the reins, history says it could be time to load up-because the high-growth sectors might be ready to run.

And that's the result every investor should care about.

What are the best and worst-performing sectors this week? 

The best performing sectors include Information Technology, up more than 8%, followed by Real Estate, up more than 4% and Consumer Discretionary, up more than 3%.

The worst performing sectors include Materials, down under half a per cent, followed by Consumer Staples and Utilities, both up under 2%.

The best performing stocks in the ASX top 100 include Mineral Resources, up more than 13%, followed by NEXTDC Limited and Pro Medicus, both up more than 11%.

The worst performing stocks include Northern Star Resources, down more than 8%, followed by Amcor, down more than 5% and Newmont Corporation, down more than 4%.

What's next for the Australian stock market? 

Buyers have had a standout week, with the All-Ordinaries Index surging more than 2%.

Impressively, not a single trading day closed in the red, which is clear evidence of the strong bullish sentiment currently driving our market. It's a sharp turnaround from just two weeks ago, when some were forecasting doomsday scenarios for global equities.

This is exactly why it pays to stay independent and let the price action guide your thinking.

As we flagged in our previous update, the All Ordinaries has now convincingly broken through the key 8200 resistance level-a major hurdle that needed clearing. The index is now eyeing the next big milestone: 8400.

If we see a close above 8400 this week, it will mark yet another bullish breakthrough.

And from there, it's game on, the all-time high is the next logical target. At the current pace, don't be surprised if we reach that level in the coming months.

So, with the bulls firmly in control and sellers nowhere to be seen, now might be the perfect time to hunt for quality stocks with share prices building momentum.

While it is continuing to become a mainstream asset class for Australian investors, a lack of regulation is acting as a barrier to cryptocurrency fulfilling its true potential in the market.

Proper rules and guidelines are the key to unlocking other uses for cryptocurrency that will modernise the Australian economy, and politicians are now moving quickly to try to fill the gap.

Regulation provides guardrails for industry players, helps protect consumers and instils confidence in investors.

More Australians are choosing to invest in crypto, but many others have been discouraged by the absence of these benefits and protections, which is acting as a handbrake to further mainstream adoption.

Having been in Canberra with senior politicians and bureaucrats over the past few weeks, it's clear that all sides of politics are working to put these protective measures in place.

Many politicians have acknowledged that with the inauguration of Donald Trump creating a bull-run in the crypto market and consumers increasingly interested in the investments, they need to act quickly to ensure their constituents are better protected.

The state of play on crypto regulation in Australia

Frameworks and safeguards for protecting consumers come through two channels in regulation and legislation.

Regulations are created by the Australian Securities and Investments Commission (ASIC), while legislation is formed by politicians in Canberra. Both focus on protecting consumers and their investments.

In November 2024, ASIC released Info Sheet 225, a consultation paper which sought to identify ways to protect Australian investors by providing greater accountability and licensing requirements for market operators, such as crypto exchanges.

This process is ongoing and we are unlikely to see the outcome until after the Federal election in May.

Many industry stakeholders saw this proposal as too cumbersome on crypto companies with a view that its harsh requirements, particularly around licensing, would stifle innovation and force firms offshore.

I believe it is important that the final policy aligns with the views of the incoming government - regardless of which party wins the next election - to ensure consistency and streamline reform.

As Australia heads to the polls next month, both major parties are demonstrating that they are committed to deliver a regulatory framework that protects consumers and encourages investment in the industry.

Prime Minster Anthony Albanese took on a dedicated digital assets adviser in late 2024, and both parties have formed crypto working groups with external stakeholders to incorporate a range of perspectives into their policy platforms.

Both major parties have now released their policy platforms and it's pleasing to see that they offer a more balanced approach than some of ASICs strict licensing proposals.

The proposed policies make it easier for crypto companies to operate efficiently, while maintaining consumer protections.

In our view, the government elected in May must act quickly within the first few months of office to introduce a comprehensive roadmap and timeline for crypto legislation.

This is fundamental to restoring confidence for businesses by demonstrating that Australia is taking crypto seriously. It will also protect consumers at a time of heightened interest and demand.

Where politicians are seeing the future of crypto in Australia

From my discussions in Canberra, it's clear that our leaders are looking to three main areas where they expect cryptocurrency to form part of the future of everyday finance, outside of investing. These are: stablecoins, payments and tokenisation.

Stablecoins

Stablecoins are a type of cryptocurrency that hold a stable value by being linked to another asset such as the US dollar.

Stablecoins are piquing regulators' interest, as they can reduce transaction costs, speed up money transfers and allow global payments, for imported and exported trade for example, to be made seamlessly between countries.

Politicians from all sides of the political spectrum are excited by these benefits, underpinned by a deeper desire to ensure that Australia is at the forefront of innovation, which starts by modernising our economy.

Payments

Politicians are eager to foster innovation within payments more broadly.

They acknowledge that providing more opportunities for Australians to pay with crypto for everyday goods and services can reduce fees and expand choices for customers. For example, through Crypto.com Pay, customers can pay in-store using crypto at more than 440 retail outlets.

This is a direct end to end transaction, without a fiat currency conversion, so fees are minimised and the merchant is paid in Australian dollars.

There is a desire to see innovations like these made available to all Australians in years to come, to again facilitate innovation and improve consumer choice.

Tokenisation

Tokenisation is another underutilised benefit of crypto within the Australian market, which politicians are seeking to better incorporate throughout the economy.

Tokenisation works by creating a digital representation of an asset to demonstrate ownership rights. In our discussions with politicians, they were eager to explore the idea of tokenising ASX shares, so that much like crypto, they could be traded 24/7, rather than 10am to 4pm.

So, where to now?

With the election now only a few weeks away, it is important that Federal Parliament does not lose sight of the need to introduce legislation. The industry and Australian consumers cannot afford to be heading into 2026, still in limbo and without a clear direction.

A failure to act could result in firms moving offshore, investment going abroad and continued vulnerability for consumers.

In short, Australia risks being left behind. Our nation is at an inflection point with harnessing the benefits of crypto and we must grab it with both hands.

In terms of superannuation, market experts believe that it will have a profound negative impact on super balance.

Because of Trump's tariff's, the ASX is down about 1000 points (13%) compared to its recent highs, which will inevitably flow through into a similar reduction in many super balances.

Now of course, that is only a notional loss (which will only be crystalised if people sell their shares, which won't necessarily happen in a super context) but it is profoundly worrying, especially for those nearing or at retirement age who might have to dip into their super in the fairly short term.

Unless there is a rapid uptick in the stockmarket, this could mean that many people will have to work longer to afford the kind of retirement they thought they were looking at just a few weeks ago.

In tax terms, the effects of the tariffs and the associated stockmarket crash will take longer to feed into the system.

Reduced economic activity and possibly higher unemployment will lead to a reduced income tax take and a reduction in sales of goods and services will lead to a reduction in the amount of GST collected.

Exports will be hit and sales of vital minerals and ores will inevitably occur with the shrinking of the world economy, leading to less demand and less tax being paid into the system.

This could lead to increased government borrowing to support the domestic economy.

For individuals, fear of unemployment (and possibly actual unemployment) could have a chilling effect on consumer sentiment, leading to a fall in demand for goods and services as households put off making purchases until the economy stabilises.

Falling interest rates (which may be cut quicker and more dramatically than expected to beef up local demand) could prove to be a silver lining to this particular cloud but it is important to be aware that there could be large job losses as a result of the tariffs which could negatively impact a large number of affected consumers.

This proportion which has increased over time as property values surge, raising the need for Australians to diversify into other more defensive asset classes to reduce their financial risk.

While money cannot buy happiness, it is an important means to achieving higher living standards.

Recent data from the Australian Bureau of Statistics (ABS) shows that household net wealth rose to a record $16.2 trillion in the March 2024 quarter, boosted by a record level of property assets of $11.0 trillion.

The included a huge $200.5 billion rise in residential property values over the quarter, with the supply of housing unable to keep up  with meet demand. As a proportion of net household wealth, residential property accounted for around 67.9%, up from 61.7% in December 2020.

The ABS data shows that the key driver of household wealth gains in recent years has been rising property prices. That growth in the value of residential dwellings has outstripped growth in mortgage liabilities, as the chart below from the Reserve Bank show, indicating Australians are getting richer.

In terms of other assets, households also held $1.46 trillion directly in equities at the end of the March 2024 quarter, a record $1.73 trillion in cash and deposits, and $3.88 trillion in superannuation, which was also an all-time high.

Growth in superannuation was driven by strong investment performance in both domestic and overseas share markets, a strong labour market and rising contributions from employers.

Total contributions increased by 11.3% to $177.0 billion in the year ending in March 2024; employer contributions increased by 12.4% to $133.3 billion while member contributions rose 8.2% over the year to $43.7 billion, data from APRA reveals.

Need to diversify asset base

With such a large proportion of individual wealth tied up in property, it makes sense for investors to diversify into other asset classes, to lessen the risk of their wealth falling should residential property prices pull back on higher interest rates or with any slowing in the economy or a rise in unemployment.

While lower rates helped to boost asset values after the COVID pandemic, higher interest rates could work to erode wealth in coming quarters should interest rates move higher this year.

With inflation remaining sticky, the RBA Governor, Michele Bullock recently said the RBA board did discuss increasing interest rates at its June meeting.

While the central bank didn't do so, it could raise rates again at its August meeting; that indicates a positive outlook for the returns on private credit, as most corporate loans are floating rate and can increase with changes in the official cash rate.

That is an important point. More defensive assets such as fixed income, and private credit particularly, may deliver more attractive yields than residential property, cash or fully-franked shares.

That's a key detail because it is income-yielding assets that will support Australians in everyday living and in retirement. Private credit can deliver investors yields up to 10% per annum, which is almost double typical yields on cash and up to four times the yields on rental properties which fall well below 5%.

In contrast, private credit offers an attractive level of regular stable cash income and return for investors, particularly in comparison to the long-run average returns of more volatile asset classes such as residential property and share markets.

That is one of the main reasons that Australia's largest institutional investors are allocating more to private credit assets.

AustralianSuper is one of the largest investors and has allocated over US$4.5 billion (A$7 billion) in private credit globally, with the stated ambition to triple its exposure in the coming years.

As I am currently on maternity leave, I assumed it was a delayed payout, but thought it was strange that the credit was cryptically labeled "Superannuation Guarantee Voucher" and did not specify it was from my employer.

I didn't think too much of it until a former work colleague and friend, who two months later, asked if I recently received any unusual amounts in my account. It turns out that she received $15,000 in super from a company we used to work at from over 15 years ago.

A few days later, I received a ping from the Australian Taxation Office via myGov confirming what I suspected.

The letter didn't provide any useful details other than the remitting company, the amounts and the two financial years they related to.

I rang the ATO for more information but the customer service representative kept mum.

He couldn't explain how or when this long-lost super came about. He rattled off possibilities that an employee could've unearthed the missing money or that the company could've been audited. He also couldn't provide a breakdown between the super and interest components.

"How do I know if I have been paid correctly if you cannot give me more information?" I asked, to which he didn't give an answer.

"My super is invested aggressively," I pressed on. "The earning potential of $4241 invested in shares from 15 years ago is massive. I should be paid that difference!" He chuckles.

"Well, can you at least explain why there is a large gap between the payments and the ATO informing me?"

"There must be a delay in the system," he said.

I emailed my former boss to get to the bottom of it. Further fuelling my frustration, I was ignored.

I asked other former colleagues to see if they received any unusual super payments and most didn't bother to check, either because they didn't know how to log in to their account or didn't get around to it - which speaks volumes of how deeply rooted the unengagement problem is.

I regularly check my account, rebalance my portfolio and reassess my cover according to life circumstances, so I'm considered somewhat 'engaged'.

My former company, which operates in financial services, hires financially savvy people. Yet not one person noticed they were missing thousands of dollars in retirement money.

If this flew under all our radars, what chance would other everyday Aussies have in knowing they are receiving what they're owed?

If the ATO obfuscates basic information that workers have every right to, how will its lack of transparency help us avoid such pitfalls with future employers?

While the onus ultimately rests on us to ensure we are paid the correct wages and superannuation, ingrained overreliance and misplaced trust in a broken payroll system will not change anytime soon until the government undertakes more effective measures.

Until then, the super industry and consumer advocates will continue to excoriate the government for enabling unpaid super to reach such immense heights.

The latest estimates from Industry Super Australia show that workers were underpaid $33 billion in super over seven years. Some $4.3 billion that went begging in 2019-20 alone makes two things clear: the ATO's ineptitude in managing the problem and an archaic system that mandates super to be paid every quarter screaming for an overhaul.

A million dollars used to be the dream, the Lotto win, the favourite fantasy shopping exercise. Yet today the question, 'What would you do if you won a million dollars?' seems most likely to be met with a lame or alarming answer, like 'pay off most of my mortgage', or, worse still, 'use it as a deposit on a new house'.

This deeply depressing financial madness struck me recently when discussing the future with my debt-loving wife, who informed me that I was being some strange species of flower called a Worry Wort and that I needed to get over myself because "everyone has a million-dollar mortgage these days".

Now I'm sorry, and I know that interest rates are so low that such a thing would only cost you, roughly, $20,000 a year in interest alone, but there's just something about all those zeroes with a minus sign in front of them that would (and no doubt soon will) cause me to suffer chest pains every time I opened the banking app on my phone.

Call me crazy or, worse still, old, but I've long associated the idea of genuine freedom with the seemingly outdated idea of being mortgage-free (apparently this is something only Boomers got to experience, and I should just appreciate being young and never debt-free).

As long as one owns some of a house in Sydney, or what my wife and others prefer to call "an asset", then one should be satisfied with their financial lot in life, and happy, nay delighted, to continue paying interest on that associated debt for the rest of your days.

Even if it is ONE MILLION DOLLARS (I find writing it in capitals provides at least some of the appropriate heft, although I can confirm that shouting those words has no effect on people who aren't bothered by the idea).

Some time after this robust discussion, as I lay in a darkened room with iced towels on my head, I was approached by my teenage son, who wanted to know why I'd been crying, again.

We had a long and, I hope, informative discussion about inflation, stagnant wage growth, the false economy of borrowing money over 20 years on the basis that interest rates look likely to stay low for the next three, and ham and cheese croissants.

Having wasted most of my life by being a journalist rather than an economist, I found the idea of inflation particularly challenging to explain to him as he struggled to understand why the price of things, and houses in particular, constantly rises.

The only technical term I could find to appease him was "greed". Human beings, it seems, constantly want more, and given the chance, many of us will fleece our fellow man out of every possible dollar to get that more.

I was sorry to explain to him that, many moons ago, Australia was actually an affordable, nay wondrously cheap, place to live, but by my observation, the introduction of the GST in 1999 had changed all that. I moved to London in 1997 and was financially crushed by how expensive it seemed. Visiting home over the next few years, I was moved to tears by how cheap a case of beer, or a ham and cheese croissant, was in Australia.

And then the GST hit, and it was as if every shop owner and retail company couldn't believe their luck. Prices jumped 10% overnight and people happily kept paying, so why, they seemed to think, would they not pay 20, or 30% more?

It seemed, at least from my very personal point of view, that things really lost control from there. Back in 1997, I'd sold a motorcycle to raise the funds for a deposit on a sizeable house, which cost a then-intimidating $125,000. Today, $125,000 would be barely a deposit on that same home. And I dread to think what it will cost by the time my son is ready to dream about buying one.

For the past decade or so I have undertaken an unscientific yet undeniably illuminating pricing survey, where I seek out the price of a ham and cheese croissant in every country I visit (they are a remarkably global foodstuff), and while I've seen some expensive ones in Europe, the Australian habit of charging $9, $12 or even $14 for what is essentially a flaky sandwich remains unmatched.

Are we more greedy, and perhaps more gullibly willing to pay more for things, than other countries? I'm sure there's data that would dispute my lived experience, but that's certainly the way it feels.

And at this rate it's surely only a matter of time until a ham and cheese croissant will cost One Million Dollars.

Blaming Boomers for the ills of the world, and for having it too good, has been popular for a long while, but mocking them for being ignorant and too dozy to be a-woke-n is a more recent trend.

Unfortunately, the habit of saying "Ok, Boomer" spilled over its ill-defined borders, particularly in my house, where my resident teen seemed to find it amusing to use the phrase on me, every time I dared to question his boundless youthful wisdom.

It is at times like this that I truly mourn the absence of World Book encyclopaedias in the modern home, as I would have joyfully opened one at the page bearing a definition of "Baby Boomers" and then firmly closed said volume around each of his ears.

We'll get to that definition shortly, but what I've wondered is whether we are all being a little hard on Boomers. Did they really have it so good? Are the financial benefits they've grown up with, apparently accumulating great riches with no effort whatsoever, their fault?

And are they to blame, specifically, if the generations that followed them will not be as well off as they are, because they've somehow overseen, or even caused, a rise in property prices and the cost of living generally that's so steep that little snowflake millennials melt from the effort of climbing it before they're even off the ground?

You certainly don't have to look far to find people throwing bricks - or at least heavy books - at Boomers for ruining everything. As Helen Andrews - author of the cheery tome, Boomers, The Men and Women Who Promised Freedom and Delivered Disaster, puts it: "Baby Boomers have been responsible for the most dramatic sundering of western civilisation since the Protestant Reformation."

She slams them for being "institution destroyers" who found the traditional family "too constraining" and "decided that churches could no longer put moral constraints on their parishioners".

Then there's Jill Filipovic's OK Boomer, Let's Talk About How My Generation Got Left Behind (there's that phrase again, even being used to sell books). Described as a "very nice encapsulation of the economic case for millennial rage", Filipovic's book blames Boomers for climate change and, more generally, being rapaciously greedy.

So who are these Boomers, and how awful are they? Helpfully, the internet seems to agree to a very specific definition - Boomers are those people born from 1946 to 1964, although that can be broken into two Boomer "cohorts".

The lucky ones seem to have been born between 1946 and 1955, and thus got to relish the riotous good times of the 1960s, while those born in the second half of the strictly defined time period came of age in the 'malaise' years of the 1970s.

Now look, it's easy to be jealous of anyone who lived through a revolution with the word "sexual" in it, but I feel genuine sympathy for those 70s Boomers who "eschewed anything that women traditionally wore to make themselves attractive" and "preferred love to money, feelings to facts, and natural things to manufactured items".

All that and being forced to endure the rise of disco music? It's a wonder they survived at all.

Yes, I'd agree that it's mildly absurd to splash so many billions of people with the same brush as regards their behaviour and attitudes, but there are clear themes that leap out of the internet, some of them entirely contradictory. They were lazy hippies who could diss capitalism because they didn't need it, but they were also greedy pigs with their noses in the trough for too long.

Without doubt the most scathing line on the internet for Boomers is this mocking-toned classic: Boomers "grew up genuinely expecting the world to improve with time".

What fools.

The sense that life was not only cheaper but easier in the 1960s is perhaps some source of the resentment towards Boomers today. At a more micro level, younger generations seem to hate the fact that they're all effortlessly rich because they bought their houses for $10,000, paid them off by the age of 30 and are now sitting so pretty it's as if their couches are made out of Emma Stones or Ryan Goslings.

Mind you, they didn't get to give iPhones to their kids and ignore them for most of each day.

Boomers will argue that they had higher interest rates, millennials will point out that they didn't have to come up with $200,000 in cash as a deposit on their first homes.

It's the kind of argument that can go on forever, and, as someone who was born after the Boom, I get the ill feeling, I really do. But I still don't think I'd want to be a Boomer, okay?

"Children" didn't exist because society treated them merely as small adults, who could just bloody well go to work like the rest of us.

Today, of course, children are worshipped, wrapped in cotton wool and helicoptered over by parents who think of them as deities rather than the largely ungrateful little brats they are.

They are also, in far too many cases, financially insulated from the harsh realities of life by people who seem to believe that their own hard work and struggles were undertaken purely so that they could pass on a life of low-stress and even lower effort to their offspring.

I'm talking here about the kind of people who are so upset about how hard it is for kids to get a Nike Air Jordan-clad foot on the property ladder that they go out and buy investment properties and then hand the keys to their children.

I am distant associates with one couple who have four children and have bought enough land to build a townhouse for each of them to inherit as soon as they turn 18.

No, this is not like buying your children their first car, or giving them half the money for their first overseas trip, this is absurdly unnecessary and almost certainly psychologically damaging.

I'm not saying that all trustafarians (or trust-fund kids) are bad people, just that all the ones I've ever met are.

The struggles of real life, the ability to understand what a dollar is worth and how difficult it is to accumulate enough of them to make something of yourself is, arguably, one of the most important lessons any of us ever learn.

How many sweaty, oleaginous shifts at KFC is your child going to volunteer for if they know they've already got the keys to their first home dangling in front of them like a big, flashing invitation to move into Lazy Town?

How hard does anyone work if there is no fear of failure? If they know that if they fall, they will not land on hard times but on a giant feather bed stuffed with easy money?

Frankly, I don't think this whole sad scenario is driven by the enormous cost of property today - or even the fact that Boomers have made so much out of the house-price explosion that they just don't know what to do with all their profits - it's more indicative of the idea that today's children are somehow different, more precious, more in need of protection from any kind of challenges or even negative thoughts.

You can see it in every corner of society, from the fact that many children's sports now refuse to keep score - so that neither side has to suffer the indignity of losing, ever - to the millennial malaise of employees who feel it is their right to leave any job that has not given them at least two promotions in their first six months in a new role.

Apparently, there are restrictions these days on what age children can go to work - the Middle Ages recruitment agencies would be appalled - but by age 13 I'd already been sweating my backside off on a milk run.

My memories of that time aren't, however, of the backbreaking slog of chasing a milk truck driven by a sadist while juggling a dozen empty bottles in each of my hands, but of the sweet, rich moment at the end of the night when I was handed a tiny envelope filled with cash.

Work equalled money, I could see, and working harder, or smarter, could lead to even more.

Yes, it's possible that my ideas are as outdated and unimaginable to today's teens as the concept of fresh milk turning up on your doorstep every evening, but the bad news, for my children, is that I'm not willing to let go of them.

Nor am I likely to buy them an investment property each.  The only leg up they'll get from me is a foot in the backside.

Measure after measure corroborates woeful facts that as a woman, I am expected to retire with about 45% less than men and that my balance should currently sit at $60,000.

After 22 years in the workforce, my super balance has never received an additional cent in contributions.

I recently came back from maternity leave after one year. During my 20s, I took months off to travel and had sporadic but protracted periods of unemployment in between jobs that string together to leave an indelible hole in my bank and super account. I've taken hard-to-swallow pay cuts to switch industries, and been fearful of salary negotiations that asked for more or the same amount my male counterparts earn.

Topping it all off, I had multiple superannuation accounts with costly retail funds running simultaneously with insurance cover I did not know I was entitled to - which I probably would not have been able to claim.

How I managed to more than double my nest egg compared to the average balance is nothing short of a superannuation-gender gap miracle.

Entering the workforce at 16, I remember being bewildered by filling out my first-ever superannuation-application form. What was a binding death nomination? I have a younger brother. Does that mean he's my dependent? Or was I a dependent?

When it came to the investments section, there was an option to "default". I didn't like the sound of that, so I opted to split my contributions across eight asset classes to add up to 100%.

I distinctly recall that Australian shares was at the top of the list by happenstance and allocated a nice, neat figure of 40% to it, followed by international shares, which also received 40%.

With my Year 10 commerce education in tow, I knew leaving my cash in the bank would guarantee interest, so I allocated the remaining 20% to the cash option.

That was a fun exercise, I thought to myself, and oddly gratifying to have a vague level of control for something I had no language or enough understanding for.

So, for every job I started and super fund application form I had to fill out thereafter, I never deviated from splitting my money across 40% Aussie and international shares respectively, and leaving 20% in cash.

At the onset of the Global Financial Crisis, I was working for an investment bank when the financial world started to implode. As stock markets and capital markets crumbled, a sage colleague told me that he moved all his superannuation to cash. I did the same thing.

In mid-2009, as signs of recovery began to flicker, he told me that he went back to equities. I did the same thing. When the coronavirus pandemic hit and ravaged the markets, I moved everything to cash. Four months later, I reverted to my 40-40-20 split.

You could hardly say that I was 'engaged' with my super. I left multiple accounts open only to bleed fees for a decade. Prior to becoming a financial journalist for the super fund and investment sectors four years ago, I had no idea what industry or retail funds were, or what a MySuper product was.

Even after years of studying and working in accounting, the concept of 9.5% superannuation did not leave the confines of my employment contract.

The critical importance of superannuation to me now is the by-product of occupational hazardry.

I took my Gen-Z brother out of a pitiful lifecycle product and yanked my husband out of a crummy industry fund that took 10 business days to implement investment switches (it was 20 March 2020 by the time the fund moved all his savings to cash and, by that stage, the market had plunged 30%, leaving me infuriated).

The fact that I will retire with a hefty nest egg propped up by an overreliance on equities and unsolicited intra-fund advice is underwritten purely by kismet.

To think what could have been if I knew my way around the superannuation system back then - to understand what 'Superannuation Guarantee' meant or the difference between bonds and equities from as young as 14 years and nine months - would solve the much-decried superannuation and financial literacy gap.

The thought of quantifying the financial literacy and socioeconomic capital opportunity costs are distressing and growing.

I wish that all hard-working, low-income earning women who leave the workforce to have kids; don't have the confidence to ask for a pay rise; or cannot work but want to work because they are experiencing domestic violence have the same luck.

This article first appeared on FS Super

Grow up to become a parent, however, and this is exactly what you will do, as you unwittingly set up your very own Bank of Mum and Dad.

The ability humans have to justify their flights of financial stupidity is perhaps one of our greatest mental feats. I bet a chimpanzee couldn't do it.

My mother has been an avid and insatiable collector of shoes for more than 50 years now, and shows little signs of either slowing or turning into the kind of human centipede that might make sense of all that footwear.

Apparently she "needs" all of those shoes, just as badly as children need food (which is almost as much as they need screen time and TikTok accounts) and she can justify each pair in unfeasible detail.

Her efforts are as nothing compared to hearing someone justify their investment in children, particularly those seemingly unhinged types who have had one kid, experienced the tsunami of financial devastation that followed and then leapt back into the deep end again.

I recently met a Sydney real estate agent (I believe they're called "millionaires" in the common parlance) who justified his decision to have a fourth child by saying "it's only fair, my wife let me buy a Porsche, and she likes kids, so she's getting what she wants".

Cars are depreciating assets, it's true, but to compare them to children is like saying that planting an oak tree in front of your house is the same as spitting an apple seed on your step.

Children cannot be traded in, remortgaged, leased or sold. I believe there were some golden ages where it was possible, but today, the ability to send them to boarding school is about as close as we get. And that's expensive, too.

Essentially, what you are doing by having a child is establishing your very own financial institution; one that is doomed to lose money faster than a shop selling milk past its use-by date.

Most commonly known as The Bank of Mum and Dad, this institution will loan out money, not just at low rates, but with little hope or expectation that it will ever be repaid.

As the years go by and the demands of your beloved offspring increase, it will fund cars, clothes, airline tickets and even, if you are particularly generous/wealthy, first homes.

If you're a new parent, or thinking about becoming one, you might assume this expenditure is decades away and thus a problem for another day (this is another wonderful ability of the human brain; not worrying overly today about things it knows will be hugely problematic later, and if we didn't do this it's quite likely no logical person would have had a child since contraception was invented). But the fact is, the spending quickly accelerates from nappies and food to monthly bills that would have mystified, alarmed and possibly bankrupted my parents.

I have child who's barely a teen and we are already paying his mobile bill, X-Box Live account, Microsoft-software membership of some kind and a Disney Plus monthly bill that only seems to keep going up. And that's just the regular, monthly bills to keep him from frothing at the mouth about how hard done by he is.

The only bright spot is that in a few years he'll probably accept the offer of a new iPad and a bus pass rather than a hugely more expensive car.

So is there a payoff for all this financial frittering away? Some will point to old age and not having to be lonely, and that's a nice thought, if you live in Italy and are thus likely to be invited into your extended family's home.

In Australia, at best, you might be blessed with children who'll plonk you in a nicer kind of soulless aged-care home.

There is no sensible financial justification for having children because the return on your investment is, of course,  too vast and inexpressible for numbers or balance sheets. Parenting is priceless and having children is an almost overwhelming joy, most of the time, that's impossible to equate with anything else you ever do in your life.

But seriously, there's no way of justify having more than two kids. We're only given two hands, after all, and two pockets from which to pluck money for our demanding yet delightful offspring.

'A strong work ethic'

My dad was a Yorkshireman which, the British joke, is "a Scotsman with all the generosity squeezed out of him". Growing up in England in the shadow of the depression, war and rationing, he was definitely careful with money. His lessons to me came mainly from behaviours observed. We would take packed lunches to school and work and even sandwiches on days out.

We had very little waste in our home - things would be mended, fixed and kept in good nick to extend their wear. His lessons on repairing, not wasting and recycling are those which are very popular today as they're good for the environment as well as the bank balance.

We never had a new car - it lost too much value as soon as it came out of the showroom. Buying second-hand was also natural when it came to buying books and some of my best memories are fossicking through book sales with him. Money on books and education was always seen as well spent and a strong work ethic was also forged by my dad who encouraged me to work from age 14 - and I haven't stopped since.

- Julia Newbould, editor-at-large

'Don't sit on cash'

Having an accountant as a father didn't rub off on me as much as I'd hoped. Still, he left me with some nuggets of wisdom that I carry with me to this day.

The first is a rule of thumb for splitting the hard earned dollars - keep a third for expenses, a third for saving or investing, and a third for fun. My preference for the last has too often come at the expense of the first two, but hey, life's to live.

He also taught me that the best time to invest is as soon as you have the capacity to. So, don't sit on cash doing nothing when you can invest it sensibly and let compound interest, one of the only 'free lunches' in finance, do its thing. I've tried to follow this last maxim as best I can, ignoring the short-term up and down of an investment's value. In that sense, I've never gambled and don't plan to start - the house usually wins.

- David Thornton, staff writer

'Make your possessions last'

Dad (and mum) were raising three children under four when the 90s recession began. As a family we lived off Dad's income for more than a decade and to this day I'm still amazed as to how we did it.

He taught me the value in making your possessions last. Whether it was toys, tools or cars, he never took these things for granted.

Dad also taught me that you didn't need to live or holiday five-star to have fun - our family holidays were always domestic and in caravan parks, but the stories are timeless.

In adult life, dad offered great advice on what to look for when buying and maintaining big ticket items like a house or car. His attention to detail on these purchases has always impressed me.

- Darren Snyder, managing editor

'Don't be selfish'

My dad gave me the best - and the worst - money advice I've ever received when I was growing up and they continue to influence me to this day.

First, my dad taught me the value of short-term sacrifice for long-term gain. For example, instead of saving up on small things, he would save up all his money to buy property - in cash. He came from a generation that didn't automatically have access to bank loans. He bought most things in cash - but had to really penny-pinch to save enough.

But while he's frugal, he didn't scrimp when it comes to big-ticket items.  For example, you don't just buy a TV unit. You buy a TV unit that lasts. You don't just buy a lawn mower. You buy a lawn mower that lasts. This meant that he always bought the product that's usually twice or three times dearer than the cheaper alternative but nothing ever broke down in our house!

He was, however, an extremely generous man and would rather give to his family and relatives than save for his retirement. When someone's in trouble or needed help, he would always give money, even if it's his last dime. When I complain and tell him that he should set aside money for a rainy day, he would always tell me, "Michelle, don't be selfish. It's just money. If you keep your money to yourself, God will take it away!" So unfortunately, I associated saving up for my retirement, irrational as it may sound, as being cursed by God if I make my own financial needs a priority. There was so much focus on using our finances for the present instead of setting it aside for the future.

I've decided to make the most of his good advice and found a healthy compromise about saving some money for myself while still being there for my extended family.

- Michelle Baltazar, editor-in-chief