Broadly speaking, investors fall into one of two camps - those whose portfolios are weighted towards capital growth, and those with income as their primary goal.

Growth investors typically focus on assets such as shares with the potential for long-term capital growth, even though short-term returns can be negative.

Income investors, on the other hand, look for assets that deliver a reliable and steady flow of income through returns such as interest on fixed income investments.

In this way, income investors might be retirees looking to replicate their old pay cheque, with regular income at set intervals throughout the year.  But the game changes in inflationary environments, and investors need to be ready.

It's about finding the right blend

For both types of investors - income- and growth-focused, it makes sense to have a diversified portfolio.

So, it's not a question of investing only in one type of asset, but more a case of finding the blend that meets your needs.

Income investing, with its emphasis on stability and predictability, is particularly attractive to retirees, and those who rely on investments for money to live on.

However, income investments can play an important role in a diversified portfolio because they tend to be less volatile and provide more immediate financial benefits than growth assets.

Income investing can be lower risk

Income investing has another point of appeal.

Investments that generate regular, predictable income can be less risky than growth assets, and if you're not specifically seeking income, you may be able to reinvest the income for a compounding rate of return.  That's a double benefit - as it can be lower risk, while providing a real rate of return by outpacing inflation.

This can especially be the case for private credit funds managed by mature, financially stable asset managers that combine scale with a proven track record across economic cycles^*.

This scale and experience matters.

The sector's regulator, ASIC, notes that Australia's private credit market has "grown in recent years and continues to grow strongly."

The size of Australia's private credit market is currently estimated at around $200 billion.

This growth has attracted new, less experienced entrants to the private credit market.

That makes it essential for investors to look under the hood of any private credit investment to understand who is behind the fund, how long they have been in business, and their breadth of experience.

La Trobe Financial has been a leader in Australian credit for over 70 years, having navigated the full spectrum of economic conditions. And it shows.  The flagship 12 Month Investment Account has been recognised as Australia's "Best Credit Fund - Mortgages" by Money magazine for 17 consecutive years.

Inflation could drive more Australians to income investing

During periods of economic change, investors have tended to focus on income they can depend on.

Right now, inflation remains persistently high in Australia and globally. Geopolitical events are rattling share markets, and the Reserve Bank of Australia (RBA) has delivered rate hikes in quick succession.

Under these conditions, income investing can be very attractive for all investors by generating real returns which exceed the rate of inflation, with lower risk profiles.

Fortunately for investors, La Trobe Financial's popular 12 Month Investment Account is backed by variable rate mortgages. As market rates move higher, the income generated can be inflation-responsive.

This gives La Trobe Financial's investors income and  a  variable regular cash flow, while helping to maintain purchasing power.

The bottom line - it pays to invest in experience

Ultimately, the allocation between income-focused and growth-focused investing depends on your financial goals, time horizon, and risk tolerance.

Nonetheless, in today's environment where inflation has re-emerged as a key risk, certainty of income is particularly attractive.

Private credit funds and the La Trobe Financial 12 Month Investment Account can provide a positive contribution to a diversified portfolio.

Just be sure to check the track record of any private credit fund you're thinking of investing in. In uncertain times, it pays to invest in experience.

If you're seeking a durable income solution, contact the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au and find out more.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website.

*Past Performance is not a reliable indicator of future performance

Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website.

Reader question

I'm a single, 62-year-old renter in Melbourne living in a share house to keep my rent low.

I receive a carer's pension, as I'm caring for my daughter.

I have $900,000 in super (some from inheritance).

If I keep renting, I will have too much money in super to continue receiving the pension at 67, but not enough to live on for another 30 years.

If I want to continue on a pension, I could buy a home (for example, a unit), but prices are so high it would leave me with very little super for the next 30 years.

Retirement villages seem to have very high fees. I'm not sure what my best option is.

Any suggestions? - Sherri

Paul's response

I think that a lot here depends upon your daughter and her long-term needs, Sherri.

We are in Melbourne a lot; our youngest child lives there.

I don't know where you live, but I popped in 'two-bedroom, two-bathroom apartments with parking in the inner-city region' into a search engine. I set the filter at a maximum price of $500,000.

My thinking was that I would like you to own a home but have an amount in super that at age 67 would give you maximum, or at least a part age pension. A lot of options appeared in locations close to the city.

My experience, and one I think widely shared by Money readers and pensioners more generally, is that homeownership makes life a lot more certain and much more settled.

A home is also a good investment, and doesn't impact a future pension.

The extent of care your daughter needs and your carer support is fundamental to your decision.

You do have money going out in rent.

Homeownership would remove this expense. I'd encourage you to do your own research, based on your own needs and expectations, but my view is that owning a home will be a plus for you and your daughter.

It could also provide long-term security for her.

Maybe the foundation of a plan could be to own a home, while not jeopardising your carer or age pension.

You know best what your and your daughter's needs are, but I'd put homeownership into your thinking, while maintaining a reasonable super balance and allowing for future age pension options under the income and assets test.

What to read next

• Cooling prices haven't helped first home buyers
• Your step by step guide to buying your first home
• Renting? You may need twice the super to retire well
• Why one-off financial advice is so hard to get
• How to make money from your spare bedroom

Residential property will be made less lucrative for investors as part of major reforms to the Capital Gains Tax (CGT) discount and negative gearing outlined in the 2026 federal budget.

Federal Treasurer Jim Chalmers argued in his budget speech that the changes - which are among part of a wider suite of tax reforms - are necessary to address inequality in the tax system and boost home ownership rates.

"This Budget includes the most significant tax reform package in more than a quarter of a century.

"We're delivering a fairer tax system for workers, for first home buyers and future generations. This will help rebalance a system which is more generous to assets than it is to labour."

So how will the existing Capital Gains Tax discount and negative gearing settings change? When will they change? And how will existing investments be affected? Here's what we know.

Capital Gains Tax discount

What are the existing rules?

Australian residents can currently reduce their capital gains by 50% when they sell an asset if they've owned it for at least 12 months.

This is what's known as the capital gains tax discount and it applies to a whole range of assets including property, shares, cryptocurrency, collectables and more.

What's changing?

Under the proposed reforms, the existing 50% discount will be replaced by inflation-based indexation and a 30% minimum tax on net capital gains.

The shift will mean that the effective tax rate paid by investors on capital gains will vary based on the nominal return, the inflation rate over the period that the assets have been held and the investors' marginal tax rate.

Who will be affected?

The new rules will apply to all asset classes eligible for CGT. However, Australians looking to invest in new residential property will be able to choose between having the 50% discount or the new indexation and minimum tax system applied.

As for timing, the changes will only apply to gains made from July 1, 2027. The existing 50% discount will still apply to any gains made on investments before that date.

What's the argument for reform?

The government argues that the CGT discount has overcompensated investors who have put their money into detached residential housing in recent decades, compared to those who have invested in other types of housing (like units) or assets like equities.

By reducing this incentive (along with negative gearing changes) the hope is that other investments will be made more attractive and investor interest in existing housing stock will be reduced, potentially benefiting those looking to get into the property market.

Negative gearing

What are the existing rules?

If the deductible costs associated with an investment (like interest on a loan) are greater than the income the asset produces, investors can offset their losses against their taxable income. This is negative gearing.

The strategy can be applied to numerous investments, but property is by far and away the most common, with Treasury suggesting that 98% of net losses from negative gearing come from property investments alone.

What's changing?

From July 1, 2027, losses made on residential property (except new builds) will only be deductible against rental income or the capital gains made from that property. Though excess losses will be able to be carried forward and offset against property income down the track.

In short, most new property investors won't be able to deduct losses against taxable income like their wages.

Who will be affected?

The changes only apply to residential properties acquired from 7:30pm tonight (May 12), meaning that existing property owners will continue to be able to make use of negative gearing until the property is sold.

New residential builds will be largely exempt, as will properties in superannuation funds and widely-held trusts. Commercial property and other assets like shares will also be unaffected.

What's the argument for change?

Behind the government's argument for reform is the idea that - together with the 50% CGT discount - negative gearing is giving some property investors unfairly generous tax breaks.

"For almost one in three properties sold in 2022-23 which were net negatively geared throughout the course of the investment, investors paid less income tax than they would have if they had not purchased the property at all - despite also turning a nominal profit," the budget papers note.

So, by removing the benefit of negative gearing on existing residential property going forward, the government hopes to redirect investor demand toward new housing to help increase supply.

ESG isn't disappearing. It's adapting.

If you spend enough time in the responsible/ethical/sustainable investing world, you'll live through periods of strong inflows followed by moments of hesitation as investors lean in or pull back from investing in various shades of green.

During my time as a reporter and editor at FS Sustainability, I saw several of these cycles play out.

They were driven by shifts in policy, global crises like the GFC and COVID, domestic tragedies like the Black Summer bushfires of 2019-2020, alongside the maturation of the industry as it grappled with greenwashing and accountability.

ESG investing cycles are nothing new

Now in my current role as stewardship manager at U Ethical, the question I'm often asked is whether rising cost-of-living pressures and geopolitical volatility, most recently highlighted by the closure of the Strait of Hormuz, will cause investors to turn away from ESG.

As always when it comes to ethical/responsible/sustainable investing, the answer is a hearty "it depends."

According to Morningstar's Global Sustainable Fund Flows - Q4 2025 report, Australia and New Zealand sustainable funds saw inflows of US$400 million in net inflows during that quarter, noting "this continued the momentum from the third quarter's roughly US$ 330 million, bringing total net inflows for 2025 to around US$ 730 million".

ESG fund flows are shifting, not falling

However, those flows weren't evenly distributed.

Passive sustainable funds attracted US$660 million, while active strategies experienced outflows of US$260 million, with investors also showing a preference for fixed income. In other words, capital is rotating but not retreating.

Investors are recalibrating how they express their values alongside their investment objectives.

Fascinatingly, Australian consumers are connecting the dots between volatility in global oil markets, increased cost of energy and fuel and the possibility of managing this risk and are doubling down on rooftop solar backed with batteries.

Last year, the federal government introduced the Cheaper Home Batteries Program, which offers significant discounts for the upfront cost of installing small-scale solar battery systems in households.

The same dynamic is playing out across markets: money is moving, not leaving.

Households are already shifting their behaviour

The program proved so popular that in less than one year, Australia's residential battery capacity doubled and more than a quarter of a million units were installed across the country, according to the ABC.

This is a tangible example of values and economics aligning: investing in renewable infrastructure is not just an environmental decision, but a financial one.

Meanwhile, 2026 is the first full year where large entities like the big end of the ASX and financial institutions will report against mandatory climate-related financial accounting standards, meaning that taking climate into account when assessing risks and opportunities is no longer a nice to have, but the baseline.

ESG investing now extends beyond climate

Of course, the energy transition is only one dimension of ESG. Investors continue to engage across the full spectrum of environmental, social and governance issues.

At U Ethical, our philosophy remains unchanged.

We assess ESG factors as both risks and opportunities, focusing on those that are financially material to each company, and prioritising engagement where we can have the greatest impact consistent with our broader ethical framework.

Importantly, conversations with investors, advisers and researchers suggest that values-led considerations remain front of mind.

We are regularly asked about the implications of AI for valuations and inequality as well as impacts on hiring and the future workforce, biodiversity and nature-related risks, and modern slavery within global supply chains.

Demand for ESG is evolving, not disappearing

So while financial returns remain paramount-as they should be-demand for responsible and ethical investing has not disappeared. It has evolved.

Or, to borrow from Talking Heads: "the same as it ever was, the same as it ever was."

Reader question

Hi Paul,

What is the best option to invest for our children's education?

In the past my folks had a specific education saving or investment set up for me and my brother.

This does not appear to be an option with the major providers that I can find.

So far we have looked at ETFs, bonds set up in each child's name so we can claim the tax benefits, and simply setting up an offset account on our mortgage, which saves us in interest but doesn't have a growth option like investing.

Are there better managed options we can investigate?

We are looking to start with $20,000, $10,000 per child, plus monthly contributions.

We are not anticipating redrawing for a minimum of five years when the eldest starts high school.

PS. Our financial adviser was not much help for this one.

Paul's response

Hmm, I'm not impressed with your adviser, Haydn.

Investing for children may not make an adviser much in the way of fees, but it is a wonderful conversation.

We're talking about setting children up with money for the future but, more importantly, starting a conversation about saving, investing, compound interest and overall financial literacy.

That is one of the best skills we can give kids and grandkids.

This is a personal view, but with our kids and now grandkids, we prefer to invest as trustees for them using low-cost ETFs.

Another option my wife and I like is listed funds, such as Future Generation Global or Future Generation Australia.

What I like about these two funds is that the board and managers work on a pro bono basis, and 1% pa of net assets is donated to youth mental health.

Maybe this is an opportunity to teach your kids about something that is a responsibility of those of us who have done okay with money, to help others.

Our government cannot do everything.

A final idea, and one where I am totally biased, is Fundlater, a product offered by InvestSMART. My bias is that I chair the company and own shares in it.

But I think it is a great idea.

We've done this for our four little granddaughters.

You invest $4000 into Fundlater, we chose the ethical option, and InvestSMART adds $6000. This is paid back in $300 monthly amounts over 20 months. There is no interest, but there is a monthly account fee.

Once the app showing the four accounts is up, and while the little ones are too young to be involved, I do enjoy showing our adult kids how the grandkids' money is doing.

Extra money can be added at any time, such as birthdays, or you can add another $4,000 and off you go again. Clever idea, I wish I had thought of it.

Sure, bonds are also a simple option.

The real point here is no matter which way you go, you are doing something, and this is the real issue.

My parents did this for me and my sister and the money helped hugely with starting my business when I was in my late 20s.

It was also a topic of conversation over the dinner table a few times a year and developed my interest in money, which became my career.

What to read next

• Ask Paul: How to invest for our grandchild in Australia?
• Why parents are turning to bonds for kids
• Can I set up a super fund for my kids?
• How to help your kids manage an after-school job
• Public v private: How to plan to afford school fees

For many investors, the word stagflation sounds like something best left in an economics textbook.

It may conjure memories of the 1970s when oil shocks, stubborn inflation, weak growth generated a market environment that challenged the standard playbook.

Australia battled double-digit inflation throughout most of that decade.

This story sounds familiar.

The combination of sticky inflation, a softening US labour market and rising fiscal strain across developed economies is pushing that era back into view.

Add a conflict that threatens global energy supply chains and you have a set of conditions that should prompt every investor to ask a serious question: does my portfolio reflect the world as it is, or the world as it was?

Stagflation is an uncomfortable mix.

Inflation stays higher than expected, while economic growth slows and confidence weakens. It is challenging because the usual policy responses can work against each other.

Cutting rates to support growth can risk reigniting inflation. Keeping policy tight to tame prices can put more pressure on households, business activity and markets. For investors, that means there is less room for complacency.

What is stagflation and why does it matter now?

The era of low inflation, strong growth and abundant conviction is behind us, at least for now.

What is emerging instead is a far less comfortable regime, where inflation remains sticky, growth is uneven.

Stagflation appears as the base case, a Goldilocks scenario of low inflation and high growth is not on the cards, with the best case being an awkward middle in which growth is uneven and conviction is low.

Understanding how portfolios performed during the last major stagflationary period can help investors think more clearly about the risks today.

What assets perform best during stagflation?

1. Gold tends to earn its keep when confidence in the broader system starts to erode

Gold was the standout of the decade, rising from around US$35 per ounce at the start of the 1970s to over US$500 by 1980.

Gold has been in the news recently for good reason. In periods of sticky inflation, policy uncertainty and geopolitical tension, gold can behave differently to other commodities because it is also a currency and a store of value.

It has been one of the standout performers in the current cycle, supported by central bank buying, investor demand and a renewed focus on portfolio diversification. Gold, and the companies that mine it, can play an important role when confidence in traditional financial assets is being tested.

2. Real assets matter

In a world where inflation proves sticky, owning assets with some linkage to prices can make a difference.

Toll roads, pipelines, utilities and airports tend to carry revenues explicitly or implicitly linked to inflation - when prices rise, so too, over time, do their cash flows.

In the inflationary period that followed COVID, specifically in calendar year 2022, global listed infrastructure outperformed broader developed market equities.

The logic is unchanged: assets with genuine pricing power, long-dated cash flows and inelastic demand are exactly what you want to own when inflation erodes the real value of everything else.

3. 'Value' companies outperformed

This may surprise investors conditioned by fifteen years of growth dominance, but the logic holds.

When inflation is elevated and discount rates rise, the present value of distant future earnings falls sharply.

Growth stocks, priced on earnings many years out, are disproportionately exposed. Value stocks tend to earn their returns sooner and cluster in sectors, materials, energy, financials, that benefit from inflation rather than suffering under it.

Is today's stagflation different from the 1970s?

It's worth noting that today's inflation has different drivers: tariffs, geopolitical fragmentation and energy supply disruption rather than pure oil shock. Central banks have more established frameworks.

Technology has introduced genuine productivity tailwinds.

But the underlying portfolio logic remains sound.

In periods where inflation is sticky and growth is below trend, owning assets with real cash flows, pricing power and inflation linkage can prove powerful.

Investors can no longer rely on the assumptions that defined the most recent cycles.

Simply riding the benchmark is unlikely to be enough from here.

Over the past five years, benchmark indices in Australia and the US have been driven higher by a narrow group of mega-cap stocks, creating a level of concentration that leaves passive investors more exposed than they may realise.

The next wave of equity opportunities is likely to come from outside those mega-caps, and it will demand a different set of exposures than the last five years.

History may not repeat.

But for those paying attention, it tends to rhyme. And there are opportunities for those who see that.

Even before the conflict we're seeing in the Middle East and the associated disruptions to oil supply and petrol prices, inflation was persistent and well above the RBA's target range of 2% to 3%.

Australians are feeling the impact of rising prices in their hip pockets, and this has more serious implications for retirees and others who rely on investments for income.

We're already seeing prices rise across many areas - not just fuel, and the Reserve Bank of Australia (RBA) is warning inflation could surge above 5.0% this year.

This has the potential to leave retirees considerably worse off, particularly if their income is fixed, and not responsive to inflation.

High inflation erodes the value of returns

Inflation is already sitting at 3.7%, which has fuelled recent rate hikes, and while it's easy to assume higher interest rates are a plus for retirees, this doesn't paint the full picture.

Inflation reduces 'real' (after-inflation) investment returns. Put simply, the income you receive buys less than it used to.

Think of it this way.

Right now, it may be possible to earn around 5.0% on bank deposits. This may sound attractive. However, when we allow for inflation of 3.7%, the 'real' return drops to 1.3%.

It doesn't end there.

The Association of Super Funds of Australia (ASFA) says retirees are facing "higher inflation than the general population" because they spend more on essentials that have risen fastest.

This can be a real problem for retirees whose income streams are not indexed to keep pace with rising prices.

Those on a pension are not immune. As ASFA notes, the age pension has failed to keep pace with the cost increases retirees face.

The upshot is that high inflation can leave retirees financially squeezed - even when interest rates are rising.

In response, retirees may feel they only have two options - cut back spending, or dip into precious capital to maintain their lifestyle.

But there is another alternative that is often underutilised by Australians retirees. The solution can lie with diversification into established, income-generating investments such as credit.

Credit - low volatility, a shield against inflation

Credit simply refers to lending; it can be public (from a bank) or private (from investors). It's an asset class that has grown significantly in recent years, and as an income-generating investment, it can play a valuable role for retirees, especially when inflation is high.

Mortgages are a common form of credit and, similar to bank loans, the majority of mortgages involve a floating-rate that adjusts in line with interest rates. This may provide investors into these mortgage funds (known as mortgage schemes in the past) better rate protection than, say, other fixed-rate investments.

In addition, mortgages can be a source of predictable income when well managed in a diversified portfolio.

Investments into a mortgage scheme are not government guaranteed and they are not bank deposits. However, the returns can be attractive.

Inflation-responsive returns

As a guide to returns, La Trobe Financial's 12 Month Investment Account, recognised by Money magazine as Australia's Best Private Credit Fund - Mortgages for 17 consecutive years has a consistent track record of performance across market cycles.*

It not only gives investors competitive, inflation-responsive returns underpinned by mortgage assets back by Australian property, but the 12 Month Investment Account is also designed to provide regular monthly income.

In this way, retirees can be confident the investment aims to support a healthy 'real' return, while still having a reliable income.

With a track record spanning 70 years, La Trobe Financial has navigated the full spectrum of economic conditions and unexpected market events. This, combined with disciplined management, is giving Australians planning for retirement or already enjoying it, the opportunity to live their best life, the reassurance of income that's outpacing inflation.

If you're seeking a durable, inflation-responsive income solutions, contact the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au and find out more.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website.

*Past Performance is not a reliable indicator of future performance

Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website.

Understand how tax impacts your returns

One of the biggest costs most investors face is tax. Now is the time to ask, "What are you left with after tax?"

Tax-efficient investments do exist. Investment bonds, for example, are 'tax paid'. The investment bond issuer, rather than the investor, pays tax on the underlying returns.

While tax is capped at 30%, issuers aim to enhance underlying tax efficiency.

If you make no withdrawals within the first 10 years, you don't need to provide details of the investment bond, or its returns, in your annual tax return.* After 10 years, any withdrawals you make are fully tax paid and free from personal tax.

Capital gains tax needs to be managed

Tax time can be a sharp reminder of the impact of capital gains tax (CGT).

This is another area where investment bonds can deliver worthwhile tax advantages. No personal CGT applies to withdrawals or switches between investment options within an investment bond.

An investment bond can also be transferred to anyone, including a partner, trust or adult child, without triggering a personal CGT event.

Don't overlook super, but beware of potential tax traps

For many Australians, concessional super contributions provide an incentive to contribute to super and grow their future retirement nest egg.

The maximum level of concessional contributions you can make is $30,000 for 2025-26, increasing to $32,500 for 2026-27. This amount includes your employer's compulsory superannuation guarantee contributions plus any salary sacrifice contributions.

However, there are important limitations to be aware of.

If your income and concessional super contributions exceed $250,000, Division 293 may apply. This results in an extra 15% tax on the lesser of your concessional contributions or the amount above the threshold. Planning ahead is essential.

For Australians affected by Division 293, or the new Division 296 tax on earnings on total super balances above $3 million, investment bonds are proving to be a popular, tax-friendly alternative.

More importantly, investment bonds should be viewed as working alongside your other savings options, not replacing them. Always speak to a financial adviser for personal advice ahead of tax time.

*Investment bonds are 'tax paid' if held for at least 10 years without any withdrawals, and where the 10-year period has not been reset.

In the first two months of 2026, markets followed the playbook. Developed ex-US and emerging market equities were outperforming with a strong global growth outlook and a weakening US dollar.

Gold was trading above US$5000 an ounce for the first time while US indices were treading water on AI jitters.

Then, on the last day in February, the US invaded Iran and began a war that remains ongoing today.

What Trump may have hoped would be a swift operation, toppling the existing leadership and spurring protesters to install a new government, has instead become his trickiest geopolitical entanglement yet.

Equity markets pared their early year gains to be trading down across the world over March, which have more recently rebounded on hopes of a resolution.

The short-term threat is the hit to global growth and inflationary pressure from higher oil prices.

Given the recency of the shock, its impact will only show up in hard economic data with a lag.

Suffice it to say, the longer the war runs, the greater the risk of global recession.

Our base case assumption remains a timely de-escalation without a severe shock to the global economy.

But in any case, it may be the longer-term implications that matter most for investors, long after any resolution in Iran.

Re-thinking portfolio satellites in a fracturing world

Portfolio satellites are used by investors alongside their core allocations to achieve specific goals. More than ever, investors should be considering using these satellites as hedges to geopolitical events.

Russia's invasion of Ukraine accelerated defence spending and European energy diversification.

The Iran conflict is now doing the same for global energy self-sufficiency while further fracturing the US security umbrella and embedding geopolitics as a structural driver of asset prices, rather than an episodic risk to be faded.

For investors, that argues the case for allocations to select exposures in portfolios going forward to help reduce portfolio volatility through a potentially prolonged period of geopolitical tension and global order reshuffling. These include:

Defence contractors

Global defence stocks have been among the best performing since the start of Trump's second presidential term.

In April of 2026 the US proposed a US$1.5 trillion defence budget for FY27, the largest in history and a 50% increase on FY26.

Across the Atlantic, Europe's rearmament is accelerating.

EU defence budgets have nearly doubled from €218 billion in 2021 to a projected €392 billion in 2025, marking the first year all EU-NATO members have hit the 2% of GDP threshold.

To unlock additional fiscal room, 17 member states have activated the EU's national escape clause, permitting defence spending above Stability and Growth Pact limits through 2028.

Germany alone has committed to €162 billion by 2029.

The direction of travel is clear, and defence contractors globally are set to be structural beneficiaries and a potential hedge to geopolitical threats that can cause broader equity market disruption.

Given the breadth of potential beneficiaries, investors can seek to gain diversified exposure to the global defence sector through an ETF, like Betashares Global Defence.

Uranium and energy security

Russia's invasion of Ukraine and the subsequent scramble to wean Europe off Russian oil and gas, thrust energy security to the top of the policy agenda.

The Iran conflict has now re-ignited energy self-sufficiency concerns globally.

As governments reassess baseload power and seek to reduce dependence on hostile suppliers, nuclear energy has re-emerged as a cornerstone of the solution.

As of the most recent COP (the United Nations annual climate change conference), 33 countries, including the US, France, UK, Japan, South Korea, Canada and the UAE, now back the pledge to triple global nuclear capacity by 2050.

With nuclear increasingly recognised as essential for energy independence, decarbonisation and AI-driven electricity demand, the uranium supply chain is entering a structural deficit that favours producers in allied nations.

Given the breadth of the uranium supply chain, spanning mining, exploration, development and production of uranium, modern nuclear energy, or companies that hold physical uranium or uranium royalties, diversified exposure, through an ETF like Betashares Global Uranium ETF, can provide efficient access to the theme.

Critical minerals

Critical minerals, inputs essential for AI data centres, EVs, renewable energy and defence technology, are at the intersection of future technologies and geopolitics.

China controls over 60% of global refined critical mineral supply and 90% of rare-earth magnets.

In response, Western allies are moving decisively: in February, ministers from 54 countries discussed a US proposal to reduce dependence on Chinese supply, while the EU, Japan, Mexico and the US agreed to create price support mechanisms and capital backing for critical mineral projects.

Both the US and Australia have established strategic mineral reserves, and the latest US defence budget dramatically expands investment in domestic critical mineral supply chains.

Selected producers from allied nations, Australia, Canada, Peru and Chile, are well-positioned as key beneficiaries of this government-backed push for supply chain resilience.

With supply chain resilience now a policy priority across allied nations, the opportunity spans the entire critical minerals ecosystem, from miners and processors in Australia, Canada and the Americas, to the companies supplying the inputs that make EVs, data centres and defence systems possible.

The Betashares Energy Transition Metals ETF is designed to capture that breadth, rather than making a bet on individual winners in what remains a complex and evolving structural shift.

The events of early 2026 have reinforced that geopolitics is no longer an episodic risk but a structural force reshaping economies, supply chains and capital flows.

Defence rearmament, energy self-sufficiency and critical mineral realignment are policy-backed, capital-intensive and multi-decade in nature.

For investors with a long-term horizon, maintaining diversified growth exposures to these themes is not simply a hedge against disruption, but a considered response to where structural capital is flowing today and, increasingly, where it may flow tomorrow.

For a digitally-native generation, it's easy to assume that Gen Z investors are building portfolios shaped by social media.

Research from the Australian Securities and Investments Commission (ASIC) suggests that assumption isn't unfounded.

Nearly two-thirds of Gen Z Australians use social media for financial information, while more than half trust "finfluencers" and even AI tools.

ASIC warns that this dynamic is contributing to riskier financial decisions.

But where Gen Z gets ideas and what they do with their money are not the same thing.

Data from Selfwealth by Syfe, based on more than 130,000 Australian investors, shows that Gen Z portfolios are not radically experimental or trend-driven. In fact, they look remarkably considered.

Gen Z investors hold an almost even split between ETFs and individual stocks, closely mirroring Gen X. This stands in contrast to other generations, Millennials are far more ETF-heavy, while Baby Boomers lean towards individual stocks.

If social media is such a dominant influence, why do Gen Z portfolios resemble those of a pre-digital generation?

Exposure doesn't equal execution

Gen Z may be discovering investing through TikTok or YouTube, but discovery is not decision-making.

ASIC research highlights that while social media is a primary entry point, 60% of Gen Z investors also use professional or formal sources, and half turn to family and friends for guidance.

What we're seeing is not blind adoption, but cross-referencing. Gen Z investors are combining digital discovery with more traditional financial principles, testing, validating and filtering what they consume before acting on it.

Social media, in this sense, is functioning less as a source of truth and more as a starting point. It is closing the awareness gap that existed for previous generations, acting as a gateway into broader financial education.

ETFs have reset the starting point

The more meaningful shift is structural.

ETFs have transformed diversification from a high-capital, complex strategy into the default entry point for new investors.

Today, just a single trade and decision point can immediately provide broad exposure to global markets, something that once required significant time, experience and confidence.

And that global diversification has become even more important - indeed, we've seen growing demand even just in the last quarter in the purchase of ETFs that offer international exposure versus purely domestic.

For Gen Z, that means they are enjoying a substantial leg up, by starting their investing journey already diversified.

This helps explain the balance we're seeing. ETFs form the foundation of portfolios, while individual stocks offer a way to engage more actively and express one's own personal views and "bets".

In many ways, younger investors are now using tools that enable more balanced outcomes than previous generations had access to at the same age.

A generation that's informed - but not immune

None of this contradicts ASIC's warning.

There are clear pockets of risk. Nearly one in four Gen Z Australians hold cryptocurrency, and many take a short-term or speculative approach, sometimes influenced directly by social media content.

Gen Z is not a monolith. While many are diversified and long-term focused, others are more exposed to hype-driven decision-making. For Selfwealth users, the former is more common.

Generational differences still matter

Looking across demographics reinforces this pattern.

When we look at our own Selfwealth by Syfe platform data, we see that Millennials, for example, are leaning more heavily into ETFs, with around 70% of their portfolios allocated to these vehicles, suggesting a strong preference for diversified, long-term strategies.

Baby Boomers, by contrast, remain more active stock pickers, with roughly two-thirds of their portfolios in individual equities.

Gen Z sits between these approaches, not as passive as Millennials, not as stock-heavy as Boomers, but notably aligned with Gen X in its balance.

That alignment is unlikely to be coincidental. While access to information and tools is reshaping how Gen Z invests, Gen X, who parent much of this cohort, may still play a quiet, supporting role in shaping attitudes to risk and diversification, whether through direct advice or observed behaviour.

This isn't simply behavioural. It reflects a convergence of better access to information, improved financial literacy, and tools that make diversification easier than ever before.

Rethinking the Gen Z narrative

The idea that Gen Z investors are impulsive or purely trend-driven doesn't fully hold up.

They are navigating a complex information environment shaped by algorithms, influencers and constant content.

But they are also demonstrating an ability to filter, balance and apply that information in a way that reflects long-standing investment principles.

For the industry, this presents both an opportunity and a responsibility: to meet Gen Z where they are, while equipping them with the tools and education needed to make informed decisions.

Because if the data tells us anything, it's this: Gen Z investors aren't simply following trends.

They're interpreting them, and often investing more thoughtfully than they're given credit for.

And while access and tools are doing much of the heavy lifting, habits still form early. In my own household, that means investing my children's savings in a globally diversified portfolio of ETFs from day one.

The biggest advantage you can give the next generation is firstly, time in the market, where compounding does the heavy lifting but even more importantly, to educate them on the importance of investing from an early age.

For many of us, higher interest rates chiefly mean higher home loan repayments. But the impact will extend a lot further, providing both opportunities and challenges for investors.

Let's take a look at five key ways rising rates are likely to reshape the investment landscape.

1. Returns on cash rise but there will be strings attached

On the face of it, higher rates can make savings accounts more attractive.

There is a catch though.

A large number of savings accounts impose strict conditions around deposits and withdrawals before 'bonus' interest is paid.

We know from a review by the Australian Competition and Consumer Commission (ACCC) that consumers often find it hard to meet these conditions.

In fact, the ACCC found that in any given month, over seven in ten bonus interest accounts didn't pay bonus interest.

A more certain return is available through private credit - essentially non-bank lending.

GPS Investments, for example, typically pays 1-2% more than cash deposits.

As a guide, our Arkus Fund pays a return of 6.50% with zero fees. And you get the same flexibility to invest on a regular basis as a savings account, with the option to make monthly withdrawals.

The added upside of a private credit fund is that you don't see your savings every time you bank online, which can reduce the temptation to dip into the funds.

2. Regular distributions are likely to make private credit even more attractive

As part of the 'fixed interest' class of investments, private credit funds can be a source of regular income, often with distributions paid monthly.

Right now, passive income can be especially valuable.

Australians are battling high living costs and skyrocketing fuel prices, yet the past year has seen wages growth of just 3.4% - below the rate of inflation of 3.7%.

It's not just about income. As the name suggests, private credit funds do not trade on public markets. This means there is none of the volatility we've seen on sharemarkets over the past year - volatility that can leave investors exhausted, and their portfolios worse for wear.

3. Investors may take unnecessary risks

As we all grapple with the cost-of-living crunch, it can be very tempting to look for investments promising elevated returns.

It pays to remember though that high returns always go hand-in-hand with increased risk.

In the private credit market, for instance, some funds are advertising returns of 10%-plus. Make no mistake, this sort of return can come with far higher risk than investors may realise.

These funds tend to have high loan to value ratios, with extremely low buffers if anything goes wrong. The underlying loans are often secured by second registered mortgages, which rank behind first mortgages in terms of repayment priority if a default occurs.

By contrast, at GPS, we always maintain lending buffers of at least 30%, and our loans are secured by first registered mortgages - the highest level of security, which lowers risk for our investors.

4. Experience will shine through

Whether it is listed companies, share funds or private credit funds, the next few months will test newcomers to the market simply because these asset providers lack experience across a range of economic conditions.

In the private credit market, a significant number of new funds have launched in recent months, often by providers with worryingly little experience.

This lack of experience means not every private credit fund will emerge from the current economic climate unscathed.

GPS Investments has been funding new homes in the south east Queensland growth corridor for over 30 years. This depth of experience backed by our conservative approach, and in-depth knowledge of the market we serve, saw us successfully navigate the global financial crisis as well as the COVID pandemic.

That experience will stand us - and our investors - in good stead as we forge a path through the current period of high rates.

5. Diversification is even more important

Diversification has long been seen as a cornerstone of successful investing. It reduces volatility, lowers risk, and helps achieve more consistent returns.

Diversifying is especially important as a risk management strategy when rates are rising as it helps soften the impact of stock market volatility.

Yet fewer than one in two Australians believe they have a diversified portfolio.

Now could be the time to add fixed interest investments such as private credit, to your portfolio.

It can give you the benefit of regular income and above-inflation returns. And options like the Arkus Fund, which charges zero fees, makes investors' money work even harder at a time when every dollar counts.

A new report reveals the strength of Australia's private credit sector compared to global markets, which is attracting substantial offshore capital, particularly from high-net-worth individuals, family offices and insurance companies.

This is according to the Australian Investment Council's (AIC) 2026 Australian private capital yearbook, which found that the country's economic outlook relating to tariffs, geopolitical tensions and demographic factors puts it in good standing among global private credit investors.

Private wealth investors are expected to deploy more capital to the sector, with "substantial potential" for large Australian private credit managers to attract Asian and European money. However, this is contingent on better promoting Australia's diversified economy internationally.

Preqin estimates there is $5.4 billion in closed-ended private credit funds, and a further $40 billion in net asset value in open-ended funds.

"The influx has been both beneficial and challenging - while validating the market's appeal, it has intensified the need for deployment discipline as managers compete to put capital to work," the report read.

"The sector anticipates accelerated growth driven by diversification demands from investors seeking alternative return sources."

Conversely, Australian investors are investing "significant capital" to global private credit funds.

Several issues in the local private credit market, however, play at large. This includes the need for deployment discipline and better enhanced transparency.

"A critical debate centres on appropriate fund structures for private credit. Do private credit's shorter-duration assets make it better suited to open-ended funds than traditional private equity? If so, private credit managers need to maintain rigorous discipline in managing capital flows and provide clear communication about redemption opportunities," the report said.

"There is broad emphasis on the importance of investor education around fund mechanics and the fine print governing capital access."

Overall, the Australian private capital sector reported assets under management (AUM) at record levels of $161 billion.

Private equity and venture capital together account for $72 billion. Assets across real estate, infrastructure and natural resources came to $83 billion.

Australian private capital funds also outperformed globally, delivering a return of 12.7% per annum, including both realised and unrealised returns.

Private equity saw $13.6 billion in deals across 147 transactions in 2025, with technology accounting for about one third.

AIC chief executive Navleen Prasad says the yearbook shows private capital is playing a bigger role in funding Australia's future, but that regulatory friction and uncompetitive policy settings risk pushing investment offshore.

"Other countries are falling over backwards to court international capital, including our world-class superannuation pool. Presenting a Team Australia front is smart, but where are the much-needed reciprocal programs selling Australian opportunities to international investors?" he says.

In recent years, the study found family offices became more active private capital investors, though in volume terms, institutional investors, including superannuation funds, still dominate.

Family offices' demand for venture capital is more pronounced. Almost half of all venture capital investors studied between 2021 and 2025 were active Australia-based family offices.

This article first appeared on Financial Standard

Investing is one of the most effective ways to build wealth over time - but it also comes with tax consequences that can catch investors off guard. Whether you're buying shares, dipping into exchange-traded funds (ETFs), trading crypto, or investing in managed funds, understanding how tax applies can make a meaningful difference to your after-tax returns.

Here's a straightforward guide to how the tax system works across the most common investment types in Australia-and what to watch out for at tax time.

The basics: Income vs capital gains

Before diving into specific investments, it's important to understand the two key ways your investments are taxed:

• Income: Earnings such as dividends, distributions, and interest are generally taxed in the year you receive them at your marginal tax rate.
• Capital gains tax (CGT): Applies when you sell an investment for a profit. If you've held the asset for more than 12 months, you may be eligible for a 50% CGT discount.

The Australian Taxation Office (ATO) requires you to report both types of income in your annual tax return.

Shares: Dividends and capital gains

Investing in shares is popular for both income and growth-but it comes with a dual tax treatment.

Dividends and franking credits

When Australian companies pay dividends, they may include franking credits, which represent tax already paid by the company. These credits can:

• Reduce your overall tax bill, or
• Even result in a refund if your tax rate is lower than the company tax rate.

You must declare both the dividend and the franking credit as income, but you also receive a tax offset for the credit.

Selling shares

If you sell shares for more than you paid, the profit is a capital gain. Key points include:

• Gains are taxed in the year of sale-not when proceeds are received.
• Losses can be used to offset gains, but not ordinary income.
• Holding shares for more than 12 months may qualify you for the CGT discount.

A common mistake is forgetting to include brokerage costs in your cost base, which can reduce your taxable gain.

ETFs: Similar to shares, with a twist

Exchange-traded funds (ETFs) are often seen as simple, low-cost investments-but their tax treatment can be slightly more complex than shares.

Like shares, ETFs can generate:

• Income distributions (often quarterly or semi-annually)
• Capital gains when you sell your units

However, ETF distributions may include multiple components:

• Dividends (sometimes with franking credits)
• Interest income
• Foreign income
• Capital gains

Each component is taxed differently, and you'll typically receive an annual tax statement breaking it all down.

One key point: even if you reinvest your ETF distributions, you still need to declare the income for tax purposes.

Managed funds: Watch the distributions

Managed funds operate similarly to ETFs but are often actively managed. From a tax perspective, they can be one of the trickiest investment types.

Annual distributions

Managed funds distribute income each year, and you're taxed on your share of that income-even if:

• You didn't receive it in cash (e.g. reinvested), or
• The fund hasn't actually sold underlying assets you're aware of

This can lead to the frustrating scenario of paying tax without receiving cash.

Capital gains within the fund

If the fund manager buys and sells assets during the year, any capital gains may be passed on to investors as part of the distribution. This means:

• You can be taxed on gains even if you didn't sell your units
• Timing matters-buying just before a distribution can result in an unexpected tax bill

Understanding the distribution statement is critical, as it outlines how each component is taxed.

Crypto: Not tax-free or anonymous

Cryptocurrency has gained popularity, but there's still a misconception that it operates outside the tax system. In reality, the ATO has increased its focus on crypto transactions.

CGT applies

Crypto is generally treated as a capital asset, meaning CGT applies when you:

• Sell crypto for Australian dollars
• Swap one cryptocurrency for another
• Use crypto to purchase goods or services

Each of these events can trigger a taxable gain or loss.

Record-keeping is essential

Crypto investors need to keep detailed records of:

• Purchase dates and values
• Sale or exchange details
• Wallet transfers

Given the frequency of transactions, using portfolio tracking tools can make tax reporting much easier.

Personal use exception

In limited cases, crypto used for personal transactions may be exempt-but this exemption is narrow and often misunderstood.

Offsetting gains and losses

One of the key advantages of the tax system is the ability to offset capital gains with capital losses.

For example:

• If you make a $10,000 gain on shares and a $4,000 loss on crypto, you'll only pay tax on the net $6,000 gain.
• Losses can be carried forward to future years if not fully used.

However, losses cannot be used to reduce salary or other income.

The importance of timing

When it comes to investments and tax, timing can have a big impact.

Holding period

Holding assets for more than 12 months can reduce your CGT liability through the discount.

End of financial year planning

As June 30 approaches, investors often:

• Realise losses to offset gains
• Defer selling assets to the next financial year
• Review portfolios for tax efficiency

However, tax should never be the sole driver of investment decisions-commercial outcomes still matter.

Common tax mistakes investors make

1. Forgetting to declare income
   Distributions, dividends, and crypto transactions are all reportable.
2. Misunderstanding reinvestment
   Reinvested income is still taxable.
3. Poor record-keeping
   Missing purchase records can lead to overpaying CGT.
4. Ignoring foreign income
   Many ETFs and funds include international investments with additional tax implications.
5. Assuming crypto is invisible
   The ATO receives data from exchanges and actively monitors compliance.

Keep it simple and stay organised

While the tax rules may seem complex, the key to managing them effectively is organisation:

• Keep detailed records of all transactions
• Review annual tax statements carefully
• Understand the difference between income and capital gains
• Seek professional advice for more complex portfolios

Conclusion

Investing across shares, ETFs, crypto, and managed funds can be a powerful way to grow your wealth-but tax is an unavoidable part of the journey.

The good news? With a basic understanding of how each investment is taxed, you can avoid common pitfalls, make more informed decisions, and potentially improve your after-tax returns.

In the end, it's not just about what you earn-it's about what you keep.

Reader question

Hi Paul, we're 63 and 58 years old. We have a small mortgage on our investment property in Queensland.

We're retired (we hope). We have $400,000 in super between us and $500,000 to invest from the sale of our primary home.

Should we put much more in our super accounts (half the $500,000) leading up to pension age and make smart spending and investment choices with the remaining $250,000?

Health has impacted our working life so we're currently seeing Australia in our van.

We are pretty much minimalists and are planning to live in the investment property down the track. Can you see a financial path for us? Hope we haven't confused you. - Chris and Jonna

Paul's response

One thing is for sure, Chris and Jonna, I can certainly see a terrific life adventure for you. I'm still having a chuckle at you saying, "We're retired. We hope".

I know what you mean. It is one thing coming up with a life plan and another thing making your money fit your plan. You are off to a cracking start, though.

I get to enjoy some very funny conversations about money and life plans.

Once on a flight, an executive asked me how much he would need to retire. He had no idea what his annual spending amount in retirement would be. We chatted about holidays, paying for his family home, cars, insurance, healthcare, entertainment and all the stuff that costs money, which added up to a large number. He wanted to retire at 65, so had to multiply his annual required spending amount by 17. At this point he went pale.

Sadly, too few of us have got a realistic plan about how we want to live in the years to come and how to pay for it. But your plan sounds realistic to me. In the example above, assets did not meet the dream. In your case, I think they will.

You have given me the broad information I need. First up, you have had some health issues and are vanning around Australia. My concern is, of course, what backs up this dream lifestyle if one or both get ill and need to be near care? But you will have your investment property that can become your home. This also gives you an asset that you could use to fund aged care if required in the future.

You have a logical start with the van and a logical end, if required, with your investment becoming your home. The spending gap between beginning and end is, of course, filled by your current assets. Let's take a look at these.

First up, I think I am safe in assuming that with a small mortgage your investment is producing surplus cashflow after expenses, but to be safe I'll call that neutral.

Forgetting where it is invested for a moment, you have an additional $900,000 in your super and proceeds of the sale of your home. History suggests that on a diversified amount of money, you could spend some 5% of the capital sum each year and your capital would keep pace with inflation over time, that is, you would die with $900,000 plus inflation.

Here is the first question. Does 5% of $900,000 or $45,000 cover your annual van lifestyle? Out of curiosity, let's look at $70,000 a year, which I suspect is more than you are spending. That amount would require a return of about 8% on your $900,000. If we look at historical guidance from assets such as shares, we find that since 1900, the average return, including dividends has been a bit more than 10%pa, but 100% in shares is a pretty risky strategy for retirees. Let's look at the returns for balanced type superannuation funds.

Compulsory super started about 34 years ago, the typical large, low-fee, balanced fund being around 8% over these decades. This means that $70,000 a year from your $900,000 is not crazy.

Second question is: if you do need $70,000 a year to enjoy your van life, are you happy to run down the real value of your $900,000? I should say in your shoes, I would be. At life expectancy of 81 for men and 84 for women, you would still have real buying power with your $900,000. You'd also have an investment property worth a lot more.

The magic sauce to your magic pudding is your ability to get an age pension at 67. Talk to Services Australia, an independent adviser or your accountant, but I think it makes sense after the sale of your home to turn your investment property into your home.

You must seek your own advice but general information suggests this may require you to live there for six months. Once it is established as your home, you could move out and rent it for up to six years at a time. This is important because your home is an exempt asset under the assets test for an age pension.

You and all Australians are entitled to own a home that is exempt as an asset for pensions, land tax and capital gains tax on the sale. Sure, you would not get a lot of pension at first, but as you cut into your $900,000 and inflation indexing increased the assets test level, you would get more. This is well worth understanding as even a small amount of age pension could help to protect your investment assets.

We have not covered 'how to invest', because once again you need professional advice based on the complete knowledge of your personal circumstances. In general terms, it is hard getting money into super, but once you reach retirement age, very easy to get it out.

In your position, I would be looking at putting the $300,000 that is allowable from the sale of your home into super. Your fund is one source of advice on the merits of this or, of course, an adviser.

Anyway, you have asked me can I see a financial path for you. Obviously, when it comes to health, nothing can be guaranteed, but your plans and your financial resources seem to match up.

Go for it. And please send a photo or two to us here at Money as the years go by.

What to read next

• Why thousands of retirees are better off with less super
• The grey nomads' guide to money
• How to get free advice from your super fund
• How much super you need for a comfortable retirement now
• Why one-off financial advice is so hard to get

They discuss gold's key advantages over other elements, how much exists (about 219,000 tonnes ever mined), and its role in Australia's history from the 1851 gold rush through to the establishment of the Sydney and Perth mints and the Eureka Stockade.

They explore how currencies were once pegged to gold, why the link ended during the depression and why central banks still buy gold, including the RBA's 80 tonnes largely stored in London.

Episode timestamps

01:19 Why gold works

02:57 How much gold exists

03:35 Australia gold rush

05:01 Gold standard ends

06:21 Central Bank gold

07:53 Gold price outlook

09:00 Selling physical gold

10:41 Investing with ETFs

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There's no arguing that right now, we are facing uncertain times.

Investors don't like it, and nor do investment markets.

However, we only have to look at recent history to see how investors can navigate a path to bring stability to their portfolio - and their wealth.

Learnings from the COVID pandemic that apply today

It's been six years since the start of the COVID pandemic. At the time, it was an incredibly destabilising event that saw sharemarkets tank, and sent consumers panic-buying.

Sound familiar?

Of course, the underlying cause of instability was very different from today.

Even so, we can take three valuable lessons from the pandemic, and apply these to invest for stability in today's uncertain times:

1. Don't ignore your investments

Back in 2020, we saw plenty of people who were so worried by the situation that they overlooked their investments.

That's a mistake. Yes, there is a lot to unpack right now, and it can all seem overwhelming.

But your money matters. Keep an eye on your investments, and be mindful of how they could be impacted by current events.

2. Investors tend to focus on homegrown assets

When global issues arise, investors tend to bring things closer to home. We saw this during the pandemic when investors typically focused on homegrown investments while shunning overseas asset markets.

The good news is that Australia is a well-regulated market with plenty of quality investment opportunities.

3. Investors look for flexibility

When surrounded by uncertainty, investors seek the reassurance of being able to access their money sooner. They don't want to be locked in for the long term or face rigid terms.

This trend drove GPS Investments to launch our Arkus Fund, which has been an instant hit with Aussie investors. By offering slightly lower returns, we are able to give investors the reassurance of increased access to their money - this resonated with Australians during the pandemic, and continues to do so today.

We're seeing a flight to safety

The feedback we are getting from investors right now is that they want to keep their money working hard.

At the same time they are concerned about investing in listed companies that may have a connection to the oil industry, or which could be impacted by conflict in the Middle East.

Overarching these concerns, no one knows if the current conflict could last for days, weeks, or even months.

The uncertainty is seeing Australians embrace investments that don't demand large chunks of capital. This has driven a fresh wave of interest in the Arkus Fund.

Investors can get started in Arkus as little as $1, and make regular transfers into the fund - so you're still actively investing. Distributions are paid monthly (extra income to help cover rising fuel bills), and Arkus still offers the freedom to make monthly withdrawals, so you're not locked in.

Better still, the Arkus Fund has that reassuring homegrown element.  The underlying asset is first registered mortgages over residential townhouse and apartment developments within a 2-hour drive of Brisbane - a growth corridor that KPMG says is outpacing the rest of Australia for population growth.

Time to invest in experience

One thing is for sure.

Now is the time to focus on investment providers with experience spanning past uncertainty.

With our 30-year track record, GPS Investments has been through it all - from the Asian financial crisis of the late 90s and the Dot Com bubble of 2000, through to the Global Financial Crisis of 2008-09, the COVID pandemic of 2020 and of course, today's Middle East crisis

Let me stress, none of us is enjoying the current instability. As human beings, the GPS team shares the same concerns as all Australians.

But as investment professionals we have been through this before, and we have the experience to know the path forward.

Take a fresh look at your investments, be mindful of being able to access your money if it's needed, and look for an investment provider that has stood the test of time.

Tick these boxes, and you can be confident of bringing stability to your portfolio even in these uncertain times.

It was almost 12 months ago that the Liberation Day tariffs triggered a sharp sell-off in Australian and global share markets. Since then, we've seen a strong rebound in equities, record highs for gold and silver, and no shortage of geopolitical shocks.

Now, investors are once again facing volatility. Ongoing conflict in the Middle East has pushed oil prices sharply higher, reigniting inflation fears just as many hoped cost-of-living pressures were easing. The big question this Easter is how to protect your nest egg from cracking and ensure your portfolio is built to handle inflationary and rising interest rate pressures.

Why are interest rates rising again

The Reserve Bank of Australia is walking a tightrope. Inflation remains above its comfort zone, the job market is still relatively tight, and policymakers have been clear that bringing prices under control is their top priority. Even if that slows economic growth.

Recent oil price shocks have made the RBA's job harder. Transport makes up a relevant share of Australia's inflation basket, so higher fuel prices quickly flow through to everyday costs. That's one reason markets have shifted from expecting rate cuts to pricing in further hikes.

The message for investors is simple: interest rates may stay higher for longer, and portfolios need to be able to cope with that reality.

A focus on energy and materials

Higher interest rates don't mean shares are off the table. They do, however, change which types of companies tend to perform better.

In rising rate environments, the market often favours businesses with strong cash flows and pricing power. These types of businesses are generally better positioned to protect their profits when inflation sticks around.

Energy and materials companies are a good example. Commodity producers often benefit from higher prices, and the Australian share market already has strong exposure to these sectors. Historically, they have tended to outperform during inflationary periods.

On the flip side, sectors like technology and property (including REITs) can struggle when interest rates rise. Higher rates reduce the value of future earnings, which can pressure valuations. Consumer discretionary shares may also feel the pinch as households adjust to larger mortgage repayments and rising rents.

Rethinking income beyond bank dividends

Generating reliable income has become harder. Dividend yields across the Australian market have fallen over recent years, and relying solely on traditional dividends may no longer be enough to keep up with the cost of living.

One approach is to be more selective by focusing on higher-yielding companies while still maintaining diversification. The goal is not to chase the highest yield at any cost, but to find sustainable income streams with sensible risk.

Some investors are also turning to covered call strategies. In simple terms, these strategies involve generating extra income by selling options over share portfolios. During volatile markets option premiums tend to be higher, which can boost income and help smooth returns when markets move sideways or fall.

Fixed income: floating instead of fixed

Traditional fixed-rate bonds usually struggle when interest rates rise, because newer bonds offer better yields, pushing down the value of older ones.

Floating-rate bonds work differently. Their income payments reset as interest rates move higher, which can make them more resilient in a rising rate environment. For income-focused investors, this can mean steadier returns with less price volatility.

Including floating-rate exposure alongside traditional bonds can help balance a portfolio as rates change.

Commodities as protection against inflation

Commodities aren't a direct interest rate play, but they are closely tied to inflation.

During periods of high inflation and slowing growth, real assets like commodities and gold have historically helped protect purchasing power. They're not about quick gains, but about diversification and resilience when traditional assets face pressure. Commodities are the insurance you hope won't perform, but glad you have them when you need it most.

Broad commodity exposure or targeted precious metals allocations can both play a role, depending on an investor's goals and risk tolerance.

Don't overlook global diversification

Australia isn't moving in lockstep with the rest of the world. While the RBA is tightening, other major economies are further along the cycle or already easing.

Investing globally helps spread risk and reduces reliance on local economic conditions. It also provides access to long-term growth themes like artificial intelligence, renewables and automation, that exist regardless of where interest rates sit in the short term.

Currency movements matter too. Higher Australian rates can support the dollar, which may reduce returns from unhedged offshore investments. For this reason, many investors are increasingly considering currency-hedged options.

Staying steady through uncertainty

Rising interest rates don't require drastic changes or panic selling. They do, however, reinforce the importance of diversification, flexibility and discipline.

Markets move in cycles, and volatility comes and goes. The most resilient portfolios are built to weather all conditions.

This Easter, protecting your nest egg is less about finding the biggest chocolate egg, and more about making sure your basket is well-balanced enough to enjoy the whole hunt, whatever the market brings.

It's the advice that's been passed down at kitchen tables across Australia with the same confidence as a family recipe.

For decades, buying property has been a reliable formula for building wealth, how security is a way to help give your children a better start than you had.

For many years, the advice was largely correct. But for the generation now trying to make it a reality, the math has stopped adding up.

Recent research from Propertyology found the average value of the main residence for Australian households has risen about 560% over the past 25 years. This is significantly further ahead of the increase in the average income for Australians in that time.

This means the vehicle most Australian families relied on to build and pass on wealth has become, for many young people, the single biggest barrier to starting at all.

The advice hasn't changed. But the Australia it was written for has.

The data paints a stark generational picture.

Baby Boomers hold the highest net worth of any generation while Gen X households have the most wealth in property and shares. Millennials, by contrast, carry significant mortgage debt, student loans, and the rising cost of simply getting started.

They are not behind because they are less capable. They are behind because the asset prices that made their parents wealthy are now the barriers preventing the same story from repeating.

And yet, something else is happening beneath the surface.

Younger Australians are not disengaged from wealth creation - they are engaging differently. According to the ASX Australian Investor Study 2023, 43% of Gen Z already hold Australian shares. They are also the cohort most likely to hold ETFs (33%), invest internationally (25%), and hold cryptocurrency (31%). Far from being financially apathetic, they are digitally fluent and globally minded in how they approach investing.

Millennials, often described as the "bridge generation", are reinforcing that shift. The same study shows they favour ETFs and digital investing platforms, prioritise risk awareness in decision-making, and are more likely than older generations to factor ESG considerations into their investment choices. They sit between the property-driven wealth model of their parents and the diversified, digitally enabled portfolios of their children.

Alongside property, long-term share market investing has quietly delivered strong returns for decades - without attracting the same cultural reverence.

The difference is that most Australians haven't been invited into that conversation early enough for it to matter.

Minor investing matters more than ever

Over the past few years, CMC Invest has seen an increase in parents reaching out about Minor Trust Accounts as ways to invest for their children's future and ensure they have a financial jumpstart once they reach adulthood.

That interest is not theoretical. The Finder Wealth Building Report (September 2024 survey) found that around 34% of Australian parents have already bought shares or other investments for their children. Behaviour is shifting.

Accounts designed to build future savings for your kids, provide a unique bridge between a standard savings account and a formal family trust. However, parents should be aware that minor trust accounts may have different tax treatment depending on the structure and income generated, and it may be worth seeking independent advice to understand any potential implications.

But beyond supporting your children with a nice nest egg, investing for your kin can help set them on a path to lifelong financial success.

1. Financial literacy that sticks

Research has found that from a young age, children can begin to grasp delayed gratification, risk, and the relationship between decisions today and outcomes tomorrow. If you bring your child along on the journey of their investing account, it can serve as a practical teaching tool where they can see their balance grow.

At the same time, it provides a natural opportunity to explain that investments can rise and fall in value and that outcomes are not guaranteed. Strong financial habits formed early tend to be the ones that last.

2. Time doing the heavy lifting

The single most powerful variable in long-term investing is not stock selection or market timing, it is duration.

An investment started early and held consistently can represent the difference between a meaningful asset base and a standing start. While time can help smooth out short-term volatility, investments can still experience periods of loss and should be approached with a long-term mindset. Starting early is not a nice-to-have - it is the whole strategy.

3. A head start

A young adult facing a uni degree, a rental bond, a house deposit or simply the desire to head overseas for a holiday before settling down needs capital.

A minor investing account, started early and contributed to consistently, can become the financial foundation for all of those moments.

4. Accessibility

Modern investing platforms are professional, slick, and user friendly - making it straightforward for anyone interested to open an account, contribute flexibly, and access thousands of local and international shares and ETFs and crypto with low or no brokerage on many markets.

The barriers that once made this feel like a product for the wealthy have largely fallen away in recent years making it more accessible than ever.

A changing landscape

The shift we are seeing across investing from different Australian generations is not about decline but change in how we invest, our financial strategies, but also in opportunity and accessibility.

For most of modern financial history, investing for a child's future required wealth to begin with. That is no longer true.

The ability to give a child a real stake in the global economy is now available to Australian families of all shapes and sizes in a way it never has been before.

As with any financial decision, it's important for families to consider their circumstances and understand both the potential benefits and the risks involved.

Minor investing accounts will not solve every challenge currently facing young Australians. But they are a practical, and now widely available tool, to give our kids something no amount of advice can substitute for: a head start, a foundation, and the knowledge that someone invested in their future before they were old enough to do it themselves.

Australians are good at growing their super. We're not so good at switching from the accumulation phase to spending our super in retirement.

That's largely because of FORO - the 'fear of running out' of money. And it's understandable. Today's retirees may need to stretch their super over 20, even 30, years of retirement.

Retirees often try to reduce longevity risk by saving their savings - living frugally, instead of relishing retirement.

This has fuelled regret risk. That's when retirees realise all too late that they've missed the boat to go harder on super savings at an early stage, when they were better placed physically to enjoy the lifestyle pursuits we dream of in retirement. Fortunately, there is a solution.

Lifetime annuities can hold the key

More than four in five retirees invest their super in an account-based pension. It's an appealing option with tax-free returns and the flexibility to make lump-sum withdrawals.

The downside is no guarantees about how long the money will last. That's where lifetime annuities can make a difference.

Lifetime annuities pay an income guaranteed for life 

When an annuity is purchased with super savings, investment returns and the income received are tax-free.

Even better, usually only 60% of a lifetime annuity is included in the age pension assets test.

The drawback is less flexible access to your money.

That's why an account-based pension combined with a lifetime annuity can provide the best of both worlds - income for life plus flexible access to super savings.

Lifetime annuities have evolved

Lifetime annuities, which are offered by some super funds as well as leading life insurance companies like Generation Life, have come a long way in recent years.

Every lifetime annuity now pays a death benefit - either passing on the income stream to a spouse or paying a lump sum to other beneficiaries.

More recently, we've seen the rise of investment-linked lifetime annuities. These still offer income for life but have the added opportunity of the investment growing over time depending on the chosen investment options.

More bang for your super buck

If you're in or near retirement, it's worth taking a fresh look at lifetime annuities.

Coupled with an account-based pension, annuities can give you the confidence to embrace a rewarding lifestyle without regrets about missing out on everything retirement has to offer.

But what about Bowie Bonds, poison pills or pump and dump schemes? These quirky investing terms regularly pop up in market commentary, takeover battles and share market scams.

Here are 15 unconventional investing terms every investor should understand to build confidence, spot risks and better follow what is happening in the market.

1. Ankle biters

Ankle biters are stocks with a market capitalisation of less than $500 million - so in micro-cap or small-cap territory. Beyond referring to its size, the term can also be used to describe the stocks volatility but potential for growth.

2. Bag holder

A bag holder is an investor who is left holding a stock after its price has collapsed, usually once early buyers or promoters have already sold. The term is often used in speculative or hype-driven trades, where latecomers end up stuck with shares that are worth far less than what they paid.

3. Bear hug

A bear hug is used to describe a situation in which an offer is made for a company that is far more generous than its market value. Why would such an offer be made? Often it's done to woo over existing investors and to pressure a company's board to accept.

4. Black swan

No, not the 2010 Oscar-nominated film starring Natalie Portman. In relation to the stock market, the term black swan refers to an unpredictable event which has a significant impact on the market. For example, the U.S. housing crash that lead to the global financial crisis.

5. Bowie Bonds

If your mind goes straight to David Bowie you'd be correct. Bowie Bonds were a specific bond issued in 1997 that used the royalties of the singers' 25 albums recorded before 1990 as the underlying security. They are considered the first example of a celebrity bond which use intellectual property as security.

6. Circuit breakers

Also known as a trading curb, a circuit breaker is a regulatory mechanism used by some exchanges to temporarily pause trading in order to avoid a market crash. For example, on the New York Stock Exchange if the S&P 500 Index drops by 7% then trading is halted for 15 minutes. Circuit breakers aren't used on the ASX, which instead employes Anomalous Order Thresholds (AOTs).

7. Cockroach theory

The cockroach theory (and it is very much theory, not fact) is an idea that when a company announces bad news, there's likely more of it to come in the future. It comes from the idea that if you spot one cockroach in your home, there will be a heap more lurking out of sight.

8. Dawn raid

A strategy used to acquire as many shares - and therefore a decent stake - in a particular company as possible. By launching a dawn raid at the start of the trading day the target company is, in theory, caught unaware and the shares can be scooped up cheaply.

9. Dead cat bounce

Based on the idea that even a dead cat will bounce after falling from a great height, a dead cat bounce in finance refers to a falling share price having a brief uptick before continuing to decline.

10. Falling knives

The phrase "don't catch a falling knife" is a warning which refers to the possibility of an investor buying a stock or equity whose price is falling, only for it to fall even further. Obviously, that's something that nobody wants to do.

11. Haircut

In investing, the term haircut is used to describe the difference between the market value of an asset and how the value is assessed when it's used as collateral for a loan. For example, while the current market value of a particular asset may be $500,000, its value when used as collateral could be judged to be $400,000. Therefore it's been given a 20% haircut.

12. Paper hands

Paper hands is slang used to describe an investor who sells too quickly when a share price falls or volatility rises. It implies a lack of conviction and emotional decision-making, and is often contrasted with "diamond hands", which refers to holding through market swings.

13. Penny dreadfuls

Penny dreadfuls are stocks priced right at the lowest end of the market - generally in the range of 10 cents or less. Dreadfuls are typically viewed as companies that have little chance of making a profit, but can sometimes surprise on the upside.

14. Poison pill

A poison pill is a defensive maneuver used by a company's board of directors to stave off hostile takeovers. In practice, a company with a shareholder rights plan could specify a maximum stake that a single entity can own then, if that is reached, give existing shareholders the option to buy shares at a heavy discount. This will dilute the entity's stake, but it can obviously have a negative impact on all shareholders by lowering the stock price.

15. Pump and dump

Illegal under Australian law, pumping and dumping is a fraudulent scheme designed to inflate the price of a stock via the spread of false information. Fraudsters who already own a particular stock use the tactic to lure in new buyers in order to drive up the price and then sell it for a profit.

Every day of our adult lives we are called on to make complex decisions. Many of them revolve around money.

The sheer complexity of all this decision-making can be exhausting.

So, when it comes to investing, there is a lot to be said for low-maintenance, hands-free investments that help us reach our financial goals.

Add in 'easy to understand', and it's fair to say these 'simple' investments hold plenty of appeal.

Yet as investors, we often have a bias towards complexity.

It's easy to assume that complicated structures must be superior to simple ones -and deliver higher returns.

But this is not always the case.

Complex investments can bring increased risk. And higher fees.

The more 'moving parts' an investment has, the more can go wrong - and, most importantly, the harder it is to understand what your true risk position really is.

On the other hand, the simpler an investment is, the easier it is to understand what can go right, and what can go wrong. And the lower the cost tends to be.

With this in mind, let's take a closer look to see if investors can earn healthy returns just by committing to simplicity.

How does the 'simplicity premium' work?

When it comes to investing, the 'simplicity premium' is all about sticking to straightforward, low-cost, and easy-to-understand investments.

As a guide to simplicity, let's look at the private credit market, which is essentially all about non-bank lending.

On one side, non-bank lenders pool investors' money, typically via a managed fund structure.

This capital is then used to provide loans to borrowers - it may be a family buying a home, a business expanding, or a developer completing a project.

On the flipside, investors can receive regular income generated by interest on the underlying loans.

And, if they choose the right manager, they can be confident their capital is being put to good use and may also enjoy low volatility.

People love to overcomplicate things, but in essence, this is what private credit is all about.

If you've ever taken out a loan, you already have a sense of how private credit works.

So, does this simplicity pay a premium?

Yes, simplicity can pay a premium.

An example is La Trobe Financial's award-winning^ 12 Month Investment Account.

This fund is big - really big - with over $11 billion in funds under management.

It is underpinned by a granular portfolio of over 12,000 loans, so there is tremendous depth and breadth of borrowers (great for diversification, which lowers risk).

It's a classic example of how simplicity doesn't have to mean compromising on strong returns.

The simplicity premium goes beyond financial gains

Of course, the concept of simplicity also relates to understanding what you want from your investments - be it regular income, low volatility, capital growth, or a mix of all three.

Either way, the simplicity premium can extend well beyond financial returns.

Investors who understand how their money is being put to work - and, by extension, what could go wrong - are better placed to feel relaxed about their portfolio. For example, bank hybrids were widely misunderstood, particularly in relation to where they ranked in the capital structure. In reality, they were complex instruments that did not perform predictably during periods of stress.

Put simply, investors who understand exactly how an investment works tend to sleep more easily at night, rather than stressing over their portfolio.

Simplicity isn't always equal

Within any asset class there are grades of simplicity.

Not all private credit funds for example, are created equal, and not all underlying assets are the same.

At La Trobe Financial, we focus on quality assets, disciplined borrower selection, and careful portfolio construction - all wrapped in skilled management.

The bottom line is that we take a far from simple approach to managing our investment opportunities.

But by doing the hard work behind the scenes, our investors can enjoy a simple investment that delivers premium returns.

Explore how La Trobe Financial's income strategies are designed to support dependable monthly income. Call the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the Credit Fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the Credit Fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the Credit Fund. The key risks of investing in the Credit Fund are explained in section 9 of the PDS, available on our website.

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Reader question

Hi Paul, I've been reading Money since I was a uni student with a hundred dollars to my name. I learn something from every issue and it keeps me focused on my finances, so thanks to you and the Money team.

I'm now in my 40s and my wife and I have paid off our home.

With no mortgage to pay anymore, we have been investing our surplus cash into broad-based index funds and have accumulated a portfolio of about $300,000 outside super (our combined super balance is also about $300,000). We have two children and live a modest lifestyle to maximise savings.

We would like the option to 'retire' in about 10 years and will likely become carers for elderly parents. We are torn between the best option for us financially. Would it make more sense to:
1.  Stop investing in shares outside super and buy an investment property?
2.  Access some of the equity in our family home to buy additional shares/index funds?
3.  Continue to do what we are doing and build our share portfolio?

I know our current path is the least risky, as we have no debt, but part of me thinks I should be leveraged a little more with a 10-year timeframe ahead. - Aaron

Paul's response

I'm feeling very old, Aaron. But also honoured that you have been following Money for so long.

This is the second letter, recently, from a Money reader who has also paid off their house at 40 (Paul's Verdict, February issue).

Some of my favourite moments come from those who have followed my key advice to pay extra into their mortgage. I was saying this on radio in the early 1980s, my Money TV show in the 1990s and Money magazine from 1999.

In particular in the '80s, few really understood compound interest and the value of just a few extra dollars into a mortgage each week.

I feel really pleased when someone tells me they paid their mortgage off years or decades early due to this advice. Paying a house off is such a simple idea, but where I hope we have helped a bit with Money is to constantly reinforce the principles of wealth creation.

Paying off a home is a 'genius' strategy. It literally locks in a path to financial independence, as you are demonstrating. Once achieved this allows you to make life choices, such as early retirement, and in your case the ability to play a vital and loving role as careers for your parents. So what's next for you?

I agree that at age 40, with a strong savings history, your $300,000 in super and $300,000 invested outside of super, some gearing is a good idea with your 10-year view. You have already noted your current path is the least risky. I support being "leveraged a little more", as you say.

In your situation, you can manage risk with time. It is hard to move away from the historical fact that in a world with growing population numbers, good quality assets such as property and shares are likely to show good long-term returns.

Yes, we will get downturns and these can be large. Our friend history shows, though, that prices recover.

Those who lose through gearing are forced to sell in bad times, usually at a big loss. If you choose to gear, we must eliminate the forced sale risk. This means you do not borrow money where you cannot afford to service the repayments.

Obviously, you also have your safety pot of investments outside super. In terms of shares or property, I am neutral. You own property in your home and shares inside and outside super.

Let's look at these asset classes through the 'sleep at night' lens. In a downturn, which asset are you more comfortable with, property or shares?

Technically, shares are a much easier option and after all costs, a higher performing investment. The problem, of course, is when our property goes backwards, we would struggle to sell in a downturn and we don't see or know its value every day.

In summary, I agree with a 10-year gearing strategy into quality shares or a well-located property. The scale of gearing should reflect your situation. Don't over-gear. I think it is sensible to go with either of these proven asset classes, based on your preference.

Energy supply risks and regional instability have caused significant market volatility.

The reason this is a very significant global issue is because energy is a key input to all sectors across the economy, and no sector is immune from its effects.

For investors, this is a timely reminder that the key principles, like diversification and horizon-based planning, matter more when the geopolitics are consistently in the headlines.

And the good news? Staying disciplined can help mitigate uncertainty and protect holdings and potential allocations from significant downside risk.

Immediate market shocks take hold

Markets reacted swiftly. Oil prices spiked on fears of disrupted supply, pushing energy stocks higher while broader equity indices dipped amid inflation worries.

This comes at a time when up until recently, markets valuations are at all-time highs. Safe-haven assets-gold, the US dollar, and longer-dated government bonds-saw inflows as investors shifted away from riskier exposures.

Asian and European markets have felt the 'pinch' harder due to their higher energy dependence.

There is ongoing uncertainty as to how long the conflict might play out, what implications there are for global supply chains, and indeed potential inflationary pressures that ripple across global economies.

Central banks are having to make additional and complex judgment calls on their monetary policy settings. This in turn has ramifications for economic growth, in the form of a likely slowdown, likely-higher domestic interest rates, and relative currency valuations.

These added complexities might be perceived as a sudden extra 'tax' on everything, for instance, increased fuel and freight costs.

It could also be taken as a sign that the traditional correlations between the asset classes are breaking down in the short term and becoming less uniform, thus departing from long-evident historical patterns.

Diversification's critical role

Against this backdrop, diversification isn't just textbook advice-it's an investors' primary defence.

Spreading investment exposures across asset classes, regions, and industry sectors helps to lessen the impacts of sudden (adverse) volatility when one investment driver, such as energy, becomes a 'flashpoint'.

For example, a portfolio invested heavily in US tech (which is increasingly reliant on energy to power AI) or oil-dependent emerging markets, might suffer disproportionately; whereas an investment strategy balanced across commodities, quality government bonds, and other non-correlated alternatives may well be less sensitive to exogenous shocks like war and supply-chain bottlenecks.

Portfolio rebalancing at regular intervals can help prevents drifts in asset allocation exposures, and low-cost ETFs help make this process of adjustment easier than ever.

Yet, chasing 'hot' war stocks after the fact rarely pays off-markets have already priced in future expectations regarding valuations very quickly. However, the timeless truth remains: While diversification doesn't eliminate portfolio losses, it does help keep them insulated from large drawdowns overall.

Making life-stage adjustments

This brings us to an important evaluation when implementing an investment approach. Your stage in life should shape how you might respond to critical moments over the (long) investment horizon.

Younger investors (typically in their 20s-40s), and still in accumulation mode, tend to have higher exposures to equities and are more likely to see volatility as a buying opportunity. Long time horizons provide a greater means to benefit from the multi-decade investment cycle.

Mid-stage investors (40s-60s) need more balance and flexibility, and a lower allocation to growth-oriented and volatile asset classes, compared with a younger cohort

For pre-retirees and retirees (60s and over), asset preservation is usually the main priority. They tend to place an emphasis on cash buffers (highly liquid assets), high-quality bonds, and stable income sources to help avoid sequence-of-returns risk. Hence, a diversified, conservative mix of assets helps to meet this investor group's lifestyle needs.

While the commentary above are only generalised guidelines, all investors should consider their own needs, and preferably consult a licensed financial adviser.

Summary

The Iran conflict underscores a core reality: Geopolitics will always create noise, but sound investment principles endure.

Stay diversified, align with your life stage, and maintain a long-term investment horizon. And seeking quality investment advice from a licenced financial adviser could make all the difference.

A national survey conducted by YouGov found around one in four Gen Z Australians owns crypto; 66% say they take a speculative approach to at least some of their crypto investments.

Twenty-four percent of Gen Z crypto investors report trying to pick a winner by buying the latest new 'coins' and 15% say they invest just for a 'bit of a punt'. They also reported being contacted about crypto investing, with men being contacted more often than women.

"Short-term or speculative trading based on what's popular online carries real risks, particularly in volatile markets like crypto," says ASIC commissioner Alan Kirkland.

Social media, one of the main sources of information for the 18 to 28 age demographic, is also a major distributor for crypto marketing. Almost three-quarters of Gen Z have seen crypto ads on social media.

Sixty-three percent of Gen Z respondents say they use social media for financial information and guidance, while 30% use YouTube and 18% use AI platforms.

More than half of Gen Z say they somewhat or completely trust financial information on social media and from 'finfluencers', while 64% trusted AI platforms.

The regulator urged Gen Z Australians to complement the information they seek from influencers and content with reputable and evidence-based sources.

ASIC warned relying on a narrow range of sources, particularly unverified or promotional content, can increase financial risk, especially in an environment where markets and online trends move quickly and information is rarely tailored to individual circumstances.

At the same time, ASIC has refreshed the Moneysmart website, its consumer education platform, to make it more engaging and relevant for Australians of all generations.

"This refresh helps ensure Moneysmart provides a trusted alternative - free, independent and designed to help young Australians make decisions that work for them, not someone selling a product," says ASIC.

It comes as the Ecstra Foundation notes a decline in financial literacy has meant young people enter adulthood without the skills they need to manage money, avoid scams and navigate an increasingly complex financial system.

Its program, Talk Money, recently introduced a workshop called Becoming Scam Savvy, designed to help high school students recognise scams and stay safe online.

Ecstra Foundation chief executive Caroline Stewart says: "Financial education goes far beyond understanding money. It's about building the confidence, habits and practical life skills young people need to make good financial decisions throughout their lives."

This article first appeared on Financial Standard

Investing isn't just the foundation for building wealth, it can also help Australians reach major life goals like buying a home, funding education or enjoying a comfortable retirement.

Investments can also generate passive income, potentially lift living standards over time, and even support emotional well-being by giving people a sense of agency over their financial future.

What many people don't realise is that investing can be simple - especially if you stick to a few sound principles.

Here are three 'golden rules' that, when followed consistently, tend to deliver better outcomes over the long run.

While no approach guarantees success, these principles provide a practical starting point.

1. Keep it simple

As human beings, we often assume that 'complex is better'.

When it comes to investing, nothing could be further from the truth.

Complicated investments may sound sophisticated, but complexity can make it harder to understand how you might make - or lose - money. And that plays a crucial role in deciding whether an investment suits your goals and appetite for risk.

Pro tip: Focus on investments that are both simple and transparent.

Always look for investments that make it crystal clear how, and where, your money will be put to work.

Warning bells should start ringing if an investment provider is vague about providing this sort of information, or if you can't explain easily to a friend or family member how an investment works.

2. Be patient

Patience may be a virtue, but for investors it can be a competitive advantage.

One of the most challenging things we can do as investors is...nothing.

It can be hard to resist the urge to continually tweak or finetune a portfolio - and it's a lot harder these days given the 24/7 news cycle and social media.

The thing is, patience can make a meaningful difference over time.

Letting quality investments do their thing, working hard for you behind the scenes is both simple and cost-effective. Continually chopping and changing investments can rack up unnecessary costs that eat into returns.

Pro tip: 'Getting rich slowly' never goes out of fashion. 

Rather than chasing every hot new prospect or 'next big thing', aim to build a portfolio of quality investments that have a proven performance record across the entire economic cycle.

If you can tick this box, all that remains is to wait. Sit tight, monitor your investments, and see first-hand how patience can be rewarded over time.

3. Embrace diversification

Variety is the spice of life. And it brings real upsides to your portfolio.

Asset markets don't all move in the same direction at the same time.

That's why spreading your money across different asset classes and geographic regions - a process known as diversification -  is a proven way to help manage risk and smooth returns over time.

Diversification can go a step further.

A portfolio that combines growth assets with income-generating investments can help investors enjoy the best of both worlds - regular passive income backed by the capital growth needed  for a portfolio to outpace inflation.

Pro tip: Consider investments that boost your portfolio's diversity.

Some investments bring additional diversification to the table, and this can help to reduce risk without compromising healthy returns.

One example of this approach is La Trobe Financial's award-winning 12 Month Investment Account. It is backed by a portfolio of over 12,081 loans including more than 8,300 residential mortgages. This level of diversification offers investors valuable protection, and has contributed to La Trobe Financial's long term track record of 100% return of capital to investors.

The bottom line

These three simple golden rules are relevant for investors at all stages of their wealth creation story.

Investing doesn't have to be intimidating. These three rules- simplicity, patience and diversification - are not just straightforward, they also hold up under scrutiny and are widely supported by financial research.

If you build your investment approach around these principles, you'll be better positioned to navigate market ups and downs, and better placed to pursue the kind of long term outcomes that matter.

Explore how La Trobe Financial's income strategies are designed to support dependable monthly income. Call the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au.

Any financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website.

According to HLB Mann Judd's latest IPO Watch report, the ASX recorded 35 new listings in 2025, up from 29 in 2024 and 32 in 2023, but still well below the long-run annual average of 83.

The firm says there are early signs this year could be stronger, even if activity remains patchy for now.

"The pipeline remains soft," says Simon James, partner at HLB Mann Judd Sydney, "but several high-profile names have signalled an intention to float later in the year."

For everyday investors, IPOs can be exciting. They offer a chance to buy into a company when it first lists on the sharemarket. But they also come with hype, uncertainty and plenty of risk.

Why companies list on the sharemarket

An IPO is when a private company lists on the sharemarket and sells shares to investors for the first time.

At its core, the process is about raising money. That capital might be used to fund growth, expand into new markets, develop projects, pay down debt or strengthen the balance sheet.

In some cases, it also lets founders, private equity backers or early investors sell down part of their stake.

One example of an upcoming IPO is 49 Metals, a gold explorer pursuing ASX plans this year.

The company is seeking to raise $10 million to advance projects in Nevada in the US. According to reporting on the offer, it plans to issue 50 million shares at 20 cents apiece.

In its prospectus - a legally required document that functions as a pitch to investors - the company will offer 50 million shares at $0.20 each to raise the amount.

"I look forward to you joining us as a Shareholder and sharing in what we believe are exciting and prospective times ahead for the Company," said Richard Pearce, a non-executive chairman at 49 Metals in the document.

What new listings are in the IPO pipeline?

Including 49 Metals, the ASX's upcoming floats and listings page shows only a handful of near-term deals, a sign the market is still cautious.

One of them, Kapstream Investment Trust, is structured as a listed investment trust (LIT) - investors buy units in a closed-end trust that invests in a managed fixed-income/private-credit portfolio, and those units then trade on ASX like shares.

The other entries are traditional IPOs, where investors buy shares in a company at an offer price.

All of these near-term floats sit in materials - four gold-focused explorers and one uranium name - extending last year's pattern of resources dominating the tape.

Brad McVeigh, HLB Mann Judd partner in corporate and audit services in Perth, says that in contrast to the broader market, resources listings have been "red hot."

Materials accounted for around 63% of all listings in 2025.

"There were a number of instances of companies launching capital raises and closing the book just an hour later due to overwhelming demand."

McVeigh says the optimism should continue in 2026: "With a supportive equities market and clear drivers of demand, the resources sector appears set for a period of sustained activity."

ASX IPO rumours in 2026

It is not just miners that could test the market this year.

Koala appears to be one of the more advanced non-resources candidates. Recent reports say the furniture brand is targeting an April 2026 ASX listing, seeking about $70 million at a valuation of roughly $300 million to $305 million.

It joins competitor Amart Furniture, which has flirted with the idea of listing on the ASX after chalking over $1 billion in annual sales. It is set to join its other home retailer competitors such as Nick Scali, Adair and Temple and Webster on the exchange.

Pet supply company Greencross has also been widely tipped as a possible candidate, although some recent reports suggest its IPO plans may be on hold.

That is a useful reminder for investors: until a prospectus is lodged and a timetable is locked in, an IPO is still only a possibility.

Tech company IPOs to break records

Technology is still setting the tone for valuations and fuelling speculation about who lists next.

Rokt, the Australian-founded e-commerce software firm, is again eyeing public markets. Recent reports put its valuation around US$7.2 billion, and it has explored a dual listing that could see shares trade on both the ASX and Nasdaq.

Sharon AI has opted for that offshore-first route: it listed on Nasdaq in February, raising about US$125 million to fund its AI cloud infrastructure, and has flagged an ASX secondary listing by April.

Rival Firmus Technologies is also closing in on an ASX listing mid-year, after securing a US$10 billion Blackstone- and Coatue-led debt facility to build out "AI factories" across Australia.

In sadder news for the local market, Aussie tech darling and design platform Canva is expected to launch on US markets. Valuations are estimated at around $65 billion, with investors expecting a 2026 timetable.

Even so, these mooted local floats and Aussie projects sit alongside a much larger US-led IPO watchlist.

Anthropic (maker of Claude) has just raised US$30 billion at a US$380 billion valuation and is widely tipped to pursue a 2026 IPO.

Its competitor, OpenAI, maker of ChatGPT, was valued at US$500 billion last October and has been linked to additional fundraising that could push its private valuation higher ahead of a possible late-2026 listing.

And at the top end, SpaceX is reported to be weighing a 2026 IPO at roughly US$1.5 trillion, a record-scale listing if it proceeds.

Should investors rush in?

Not necessarily. IPOs can offer the appeal of getting in early, but they do not always deliver quick gains. Some list strongly and then fade. Others disappoint from day one.

Unlike established listed companies, new floats often have a shorter track record in public markets and less information for retail investors to work with.

Simon James says investors should be careful of the IPO whispers as there's an "element of sales and marketing" to them.

"I'd be looking for the whispers that are actually tied into proper business plans and money being raised for the right reasons as opposed to hype around company names," he says on a recent Friends with Money podcast.

"Anyone investing in any stock should understand the business model and what it's trying to achieve. Is it hitting its milestones or not? Just go onto the ASX website to upcoming listings where all the prospectuses and information are readily available."

Reader question

Hi Paul,

I recently turned 75 so I have a short window in which to add to my super.

I have $139,000 in super and will add another $300,000 when I sell my house, I guess that will be in the next two to three years.

My question is that I have $20,000 and would like to know whether I should add this to super or buy more CSL shares, which I believe will rise again.

Any thoughts appreciated. Thank you. - Judie

Paul's response

We'd better start with one of my money stories, Judie. My dad was a doctor in the NSW country town of Griffith. As a doctor, he understood the value of blood plasma.

Back then Griffith also had a CSIRO centre, so when CSL was floated on the stock exchange out of the CSIRO, he bought $2000 of them. Money was never a big deal for Dad. He worked as a GP until he was 81, owned a modest home in Griffith and a basic car.

His big expense for the week was his Rotary Club dinner at a local club on a Tuesday night, but investment interested him and he enjoyed his share portfolio, which passed to me and my sister after our parents passed away.

This included the CSL shares. After various share splits, we had quite a few, each with a cost base of less than $1 a share.

I appreciate CSL has fallen dramatically from its peak of around $330 a share to about $180 a share today, but I share your positive view of the company. So do most analysts - and it has an average price target of $230. But I won't be buying any more.

I already hold my dad's shares (which we would like to pass to our children). I believe in diversification, and I am already 'overweight' CSL shares.

CSL is about 5% of our market and more than 5% of my share portfolio, so I have enough regardless of the price! Whether you put your $20,000 into super or CSL is very dependent upon this. You may be happy to hold a high percentage in CSL, which is fine, as long as you understand the risks in focusing on a single share or small group of shares.

A bonus of super is that you get automatic diversification and, over the longer term, pretty predictable returns.

In particular, with $300,000 from the sale of your house going into super, I am relaxed about the decision you make regarding adding $20,000 to CSL or super.

As you can see, I have an emotional attachment to CSL but given its significant price drop and the quality of the company, investing more into it is not likely to be a bad decision.

What to read next

• Diversification: Why you shouldn't put all your eggs in one basket
• What are franking credits and why do they matter?
• The hidden tax perks that boost your super balance
• How much super you need for a comfortable retirement now
• Here's how to get free advice from your super fund

The importance of diversification is one of the first lessons investors learn. It has been called the 'only free lunch' in investing. However, over-diversification can lead to diluted returns.

There must be a balance between diversification and concentration risk. Concentration risk is the equivalent of putting too many of your eggs in one basket.

As Australians, many of us are too concentrated in the local market. Exacerbating this risk, the Australian stockmarket is concentrated on two main industries - financial services and mining.

Further, we derive income from the Australian economy. All of a sudden, we have most of our super and investments in the Australian economy and our income is derived from the Australian economy.

This is one example of concentration risk. Other examples would be concentrating your investments in one particular manager or in one investment, such as a house. It is an understatement to say that Australians are obsessed with property. Houses come up whenever investing and personal finance are discussed.

Affordability, the best places to buy and how to get into the market are common themes.

Many Australians' wealth is concentrated in the illiquid asset that is their primary place of residence, and according to the Australian Taxation Office more than two million of us have further concentrated our wealth through investment properties.

A survey commissioned by Raiz Invest in 2019 suggests that Australians have no problem with this: 53% of participants don't believe cash is the safest place to invest money and 22% believe property is the safest investment. Whichever assets you hold, concentration is a risk for investors to manage.

How to judge the right level of concentration for your goals

One of the main questions to ask: What is the balance between concentration and diversification?

How many shares should I have in my portfolio? Investors need to ask themselves, if the value of any investment or security dropped to zero, would it prevent me from reaching my goals?

This is the risk you need to balance. Many financial commentators and professionals see 12 to 18 stocks as a safe number because it diversifies the risk while maintaining enough concentration for each holding to have a decent impact on returns.

Practical steps to building a portfolio An academic example of a diversified portfolio will always contain a mix of many asset classes - cash, international and domestic fixed income, alternatives, international and domestic equities.

Gold, crypto and commodities might be added to the mix. You can always find an argument to add another asset class in the interests of diversification. In reality, such a complicated mix is often not necessary.

What a diversified portfolio can look like in practice

Diversification is the process of removing single-security risk from a portfolio. Once that is accomplished, many investors pick and choose which asset classes and investments will best help them reach their goal.

The goal of removing single-security risk is not the justification you often hear for diversification.

Instead, many in the investment industry like to talk about buying uncorrelated assets - that is to say, assets whose values don't move in lockstep. Taken to the extreme, holding negatively correlated assets means prices move in opposite directions.

The reason the investment industry talks up uncorrelated assets goes back to the idea that volatility is synonymous with risk. Uncorrelated assets lower volatility in a portfolio; a negatively correlated asset acts as a hedge.

There may be very specific reasons why an investor would want to lower the volatility of a portfolio or hedge it. It shouldn't be the default move, however. Remember, it is important to avoid the mindset that says being a great investor involves holding a complex portfolio. Being a great investor means you accomplish your goals.

You don't lose any points for doing that in the simplest and safest way possible. We think the benefits of simplicity outweigh those of complexity.

Keeping track of a complex portfolio is time-consuming and rebalancing a complex portfolio can be difficult. Adding new contributions to your portfolio can be challenging as your holdings grow since you will need to decide where to funnel new savings.

As we've reiterated, most investors lower their returns by trading too much. More holdings increase the temptation to tinker, risking your goals.

Why simplicity often beats complexity in real portfolios

Research from Morningstar shows that portfolio diversification doesn't have to be complicated. A simulation with a basic mix of 60% stocks and 40% investment-grade bonds was compared with a portfolio that held 11 different asset classes.

The more complex portfolio was made up of 20% large-cap domestic shares, 10% developed and emerging markets stocks, government bonds, US core bonds, global bonds and high-yield bonds, and 5% each in small-cap stocks, commodities, gold and real estate investment trusts (REITs).

Although the more diversified portfolio outperformed at times, the 60/40 mix provided better risk-adjusted returns in about 87% of the rolling 10-year periods since 1976. This is great news because it means you don't have to overcomplicate your portfolio. It doesn't take much to achieve the right mix with adequate diversification.

Your job is to find investments that will help you meet the return and asset-allocation requirements that will achieve your goal. Your investment strategy will include security-selection criteria that provide a framework for picking from the thousands of available investment options.

How many ETFs and funds make sense for most investors

One of the most common questions we get is about quantity. How many stocks should I have in my portfolio? How many ETFs? How many funds? Let's start with ETFs and managed funds.

A simple portfolio involves a single ETF for each asset class to which you want exposure. For most investors shares and a single defensive asset class such as bonds or cash will probably suffice. Australian investors will typically want one ETF for Australian shares and one for global shares plus a defensive asset class.

An army of investors termed Bogleheads follow the advice of Vanguard founder John Bogle. He advocated for the simplicity of a three-ETF portfolio for the reasons we've outlined.

A portfolio needn't be limited to just three ETFs but as an investor you should consider seriously the justification for adding any and every additional holding.

It may make sense to do so based on your goals and investment strategy. Just be sure there is a high hurdle for including asset classes such as emerging markets, small-cap shares, a thematic or factor ETF or any of the countless other offerings.

How to pick shares that actually diversify your risk

When it comes to equities, there are many professional investors and financial firms that provide guidance on how many shares are adequate for diversifying away risk.

The number ranges from 12 to 30 but the number alone, without context, is meaningless. It's the shares themselves that matter - the sectors, industries, geography.

Consider this when picking the shares in your portfolio, especially in Australia with its concentration in the two industries of mining and financial services. Because Australian investors have a great sense of home bias - they like to focus on Australia - many of them are invested in one geography and mostly across two industries.

To sum up, don't overcomplicate your portfolio and do have your investments directly connected to the goals of your portfolio. You don't need a stake in every single asset class to be diversified.

Exercise: set diversification rules that fit your goals

You are on the pathway to a personalised investment strategy based on your goals. As part of your strategy, you will establish rules around diversification.

A precursor is framing diversification around the goals you have already defined.

Start with asset classes

Think through which asset classes you want in your portfolio and why.

We suggest you start high level and consider global and Australian shares, global and Australian bonds, global and Australian listed property and cash. You shouldn't just own something for the sake of owning something. Look at the returns in different asset classes over the long term and compare them with the returns you need to achieve your goal.

Think about the role you want an asset class to play in your portfolio

Consider whether other options would achieve the same end, especially if they are cheaper to access or work better with the other assets in your portfolio.

Write down which asset classes you will consider and which you won't, along with your rationale for these choices. This will be an input into setting your asset allocation as part of your investment strategy.

Consider the individual holdings in your portfolio

If you use or plan to use funds or ETFs in your portfolio, this step is less critical. Funds and ETFs are already diversified, so you don't need to set a specific rule around holdings. It is perfectly reasonable to include one ETF or fund per asset class in your portfolio. If you hold or plan to hold individual shares, there are other considerations.

Think through position sizing or the percentage of your total portfolio that each share can make up.

The risk you are trying to diversify away is that of not achieving your goal. Use that as the basis for your decision making. If a position that makes up 5% of your portfolio were to go to zero, could you still achieve your goal? If not, that holding is too large.

One trick to help you as you complete this exercise is to go back to the calculation of your required rate of return.

Reduce your portfolio

Don't change any of the other variables but reduce your current portfolio size by different amounts that represent size limits of a position. How much would it change your required rate of return if you were to reduce your current portfolio by 5%?

Could you make up for this change by saving more money to maintain the current required rate of return? You don't need an exact number. Aim for a comfortable range for an individual share as a percentage of your portfolio while protecting your goal from a catastrophic loss.

Write down the range for each position and your rationale for selecting it

This will be an input later. Finally, consider any other aspects of your goal that may influence diversification.

For instance, if you are an income investor you may want to limit the amount of income that comes from any one share. Think through any other components of diversification that are related to your individual goal.

This is an edited excerpt of Invest Your Way by Mark LaMonica and Shani Jayamanne. Enter now for your chance to win a free copy!

Most assume their existing super fund will take care of everything, and for many, that's exactly what happens. They leave their money where it is.

But is that the best strategy for dependable income and risk-adjusted returns in retirement? Evidence suggests it may not be.

The status quo: most stay put 

Research shows that most retirees keep their savings with their existing super provider and product mix rather than exploring alternatives.

This inertia is driven by convenience, comfort and a lack of awareness of other options. The findings also suggest a lack of adviser relationship and independent financial advice through the critical transition phase.

The Household, Income and Labour Dynamics in Australia (HILDA) survey, a major, long-term national study that tracks the life circumstances of thousands of Australians over time, and Australian Prudential Regulatory Authority (APRA) data confirm engagement with super members is low: with many remaining in accumulation phase longer than necessary, and even when they move to pension phase, they rarely diversify beyond their fund.

Why that's a problem 

Concentration risk: staying with one provider means relying on a single investment philosophy and product set.

Limited innovation: APRA's Retirement Income Covenant review highlights that many funds are still playing catch-up on decumulation strategies, with regulators urging improvement.

Performance gap: according to the SMSF Association, self-managed funds consistently outperform APRA-regulated funds over five-year periods, delivering 0.3%-1.3% higher annualised returns, a meaningful difference over a 20-year retirement.

The case for alternatives 

Private credit and real assets offer stable, low-volatility income streams that complement traditional super options. La Trobe Financial's own track record, of portfolio investments providing decades of low volatility returns for investors, demonstrates how disciplined credit strategies can deliver resilience across market cycles.

These strategies are designed for income and low volatility, with granular diversification and conservative risk management, features often missing in growth-oriented super portfolios.

Super funds are outsourcing too 

The industry knows it can't do it alone. Under the Retirement Income Covenant, super funds are increasingly partnering with external managers to deliver dependable income solutions. APRA and ASIC have flagged this trend as essential for improving member outcomes.

This trend is blurring lines between traditional super and specialist asset managers and validates the role of external expertise in retirement income.

Sequencing risk and tax efficiency 

Sequencing risk refers to the danger that the order and timing of investment returns can negatively impact retirement outcomes.  This is heightened during the transition phase when you start drawing income from your portfolio.

Transition-to-retirement strategies can help manage sequencing risk and optimise tax outcomes, but they work best when combined with diversified income sources, not just a single super fund.

When transitioning into retirement, it's not the time to set and forget. For investors seeking better risk-adjusted returns, durable income and resilience, considering alternatives, like private credit and real assets, alongside super is no longer optional. It's essential.

Explore how La Trobe Financial's income strategies can complement your super and deliver dependable returns in retirement. Call the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au. Past performance is not a reliable indicator of future performance. Withdrawal rights are subject to liquidity and may be delayed or suspended. La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website. Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

Every week, more than 1.5 million listeners tune in to the Kyle & Jackie O commercial breakfast radio show on KIIS FM, to hear a variety of chat, music and, of course, the all-important, revenue-building advertising.

The listeners hear the duo joke about - and graphically describe - a range of crude and, at times, harmful topics.

Among these listeners is a group who call themselves Mad F***** Witches (MFW).

Who are the Mad F***** Witches?

This group is not listening for enjoyment, they are taking note of sexist, misogynist, racist and homophobic content. Most, importantly they are noting companies that advertise on the show.

The activist group's followers then email these companies to bring their attention to the objectionable content and lobby them to stop spending their advertising budget on the show.

MFW calls it the #VileKyle campaign. It's an example of a new type of group that is forgoing boycotts to trigger change; instead they employ the power of finance.

The idea being that if enough advertisers pull their spots from the Kyle & Jackie O show, it will reduce network owner ARN Media's radio advertising revenue to the point where they are left with no choice but to take 54-year-old Kyle Sandilands off air.

"Kyle is degrading to women and people in minority groups; he speaks in a degrading, bullying manner to pretty much anyone who's not a straight white male," says Jennie Hill, the founder of MFW.

"I don't have any idea whether he's a physically violent man, and would obviously never accuse him of that, but what he does is verbally violent and it validates the violence that men who are prone to physical violence will commit."

Warning: objectionable content

There are numerous examples of the sort of content MFW objects to. While chatting to Jackie 'O' Henderson, Sandilands makes regular references to sexual violence towards women, incest, fat-shaming, homophobic slurs and more.

Money is reproducing one example here so readers can understand the context of the #VileKyle campaign: reacting to criticism about his since-cancelled TV show from journalist Alison Stephenson, Sandilands called her "a fat slag", commented on the size of her breasts and threatened to hunt her down.

Some of the content is simply puerile: Sandilands talks about eating a Magnum ice-cream while on the toilet and "holding it in" (this content is promoted on the KIIS YouTube channel).

Hill says MFW doesn't object to puerile content in general, it's the harmful content it is targeting. It's worth nothing that more than 200,000 children and teenagers listen to the show in Sydney alone.

The uncomfortable truth is, however, that it is Sandilands' and Henderson's crudeness that attracts listeners. And that large number of listeners in turn attracts advertisers.

"Kyle and Jackie O have been like they've been for well over a decade and they've been wildly successful. They haven't needed to change," says Chris Walton, managing director of Nunn Media, which buys advertising space on behalf of companies.

Any change to the content or the line-up will be driven by commercial imperatives, not a lobbying campaign, he says. If the MFW campaign ever got to the point that it began to impact commercials, then it would be taken into consideration.

Radio ratings going south

Last year the show started broadcasting on KISS 101.1 in Melbourne, in what was to be the first step in a push to syndicate the show around the country.

Ratings were disappointing, which commentators said was because the sort of crude content that attracts Sydney audiences turned off the more refined Melburnians.

But the latest radio ratings survey suggested that the show might have turned the corner in the southern capital, with ratings starting to improve, dashing hopes among detractors that the pair would have to retreat from Melbourne or tone down their content.

In fact, ARN is making a virtue of the crude content and in May launched an advertising blitz for the hosts in Melbourne with the theme 'Radio Gone Rogue!'.

Power of the advertising dollar

At stake are many hundreds of millions in advertising revenue.

ARN Media earned more than $300 million from radio advertising in 2024, and would earn significantly more should the national syndication plan succeed.

Much of this comes down to Sandilands and Henderson, and their pay reflects it. They are on a 10-year contract said to be worth $200 million.

At the same time, ARN Media is implementing what it calls a businesses transformation program to reduce its costs by $40 million a year.

The cost cutting has done little to help ARN Media's share price, which has slid from $2.20 at the end of 2021 to 51 cents at the end of May this year.

Name of the game

Hill points to the cost-cutting program in her estimate that MFW has cost ARN Media $30 million to $40 million in lost advertising revenue.

MFW publishes a list with the names of several hundred businesses that it says no longer advertise on the Kyle & Jackie O show.

However, Hill acknowledges that the list may contain errors and that companies might have stopped advertising on the show for reasons other than the MFW campaign.

This is MFW's claimed list of new and returning advertisers, released recently:

 

 

 

 

View this post on Instagram

 

 

 

 

 

 

 

 

 

 

 

A post shared by MFW (@mfwitches)

Advertisers reluctant to comment

Most of Australia's big businesses don't want their name associated with MFW in any way.

Of more than a dozen enquiries sent to major corporates, only a couple supplied an 'on the record' comment - that is, a statement they are happy to put their name to.

Among the major banks, only NAB responded, saying: "The placement of our advertising campaigns is dynamic and constantly changing as we seek to meet our customers' needs. We continually work with our agency and media buying partners to ensure the integrity of our brand and to position our advertising where are customers consume their media."

It did not dispute MFW's claim that it doesn't advertise on the Kyle & Jackie O show.

Westpac, Commonwealth Bank and ANZ didn't respond.

However, in an email to an MFW supporter who had asked the bank to reconsider its advertising expenditure given its 'inappropriate content', ANZ wrote that the Kyle & Jackie O show is on its brand exclusion list.

The bank explained that some of its 'bonus' slots - where the radio network plays their ads for free - weren't filtered to ensure that they didn't appear on the show. ANZ said it had contacted ARN about the issue.

It's not just the big banks that don't want to comment on MFW.

Qantas and Virgin didn't respond to enquiries, nor did Optus.

Telstra supplied a statement: "We stopped advertising on the program in August 2024 as the content didn't align with our brand."

Woolworths and Coles also didn't respond, although Coles has emailed an MFW supporter to say it will not advertise during the Kyle & Jackie O show.

Business as usual

Steve Allen is a media analyst at Pearman, a media agency that buys advertising space on behalf of companies.

The suggestion that MFW has cost ARN up to $40 million is fanciful, he says, and questions whether they have cost ARN any revenue at all.

There is, Allen says, no doubt that some companies are concerned when contacted by MFW. They then tell ARN they don't want their advertisements to appear when Sandilands is on air or ask their media agency to tell ARN.

But the advertising spots taken out of the breakfast timeslot are usually placed elsewhere in the KIIS FM or other stations' schedules.

"When they get the call from us, the last thing they're going to do is let go of dollars," Allen says of ARN Media.

"They're sympathetic to the plight that advertisers find themselves in and the simplest and easiest commercial way is to reschedule."

And while MFW's campaign is generating headlines and making advertisers take note, Allen also doubts that it will result in the pair toning down their content because, ultimately, it's the ratings that count.

MFW's Hill argues, however, that if organisations are taking their advertisements out of the four-hour prime time KIIS breakfast spot, there is only so much other prime-time broadcasting they can go into instead, and that many organisations have pulled their advertisements from the network altogether.

ARN Media did not provide an executive to interview and instead responded in writing to questions.

The company didn't directly address questions on the effect the #VileKyle campaign has had on its revenue, instead saying it has a strong and stable advertiser base, "with partners continuing to achieve great results across our platforms".

The broadcaster acknowledged that the Kyle & Jackie O show "may not be for everyone", but said its enduring success lies in its ability to resonate with a large portion of everyday Australia.

"Radio is subject to robust regulations. The same can't be said for social media, and some of the personal attacks and radical views held within these activism groups are deeply concerning," ARN Media said.

On activist groups in general, the broadcaster said they "pick fights" with radio personalities to increase their own relevance.

"These groups are prone to overstating their impact, and they don't dictate our strategy or programming. We are focused on the millions of loyal fans who enjoy our content and the advertisers that get quality results," ARN said.

Accidental activist

MFW came about in 2016, after then Minister for Immigration and Border Protection Peter Dutton referred to political journalist Samantha Maiden as a 'mad f#$$!!$ witch' in a text message and mistakenly sent the message to Maiden herself.

The name resonated with Hill and she started what she describes as a "silly little Facebook page". It now has 90,000 followers on Facebook and tens of thousands on other social media sites.

Some followers contribute $5 to $10 per month to MFW's $120,000 revenue, which it uses to pay five part-time workers around $25,000 each, including Hill, who refers to herself as an accidental activist.

She says she is embarrassed by the swearing in her group's name and still cringes when she hears it, but says it also carries an important message because it has not traditionally been acceptable for women to swear, and that by swearing without apology women are taking back their power.

Three years after she formed MFW, she heard an interview with then Prime Minister Scott Morrison, during which bombastic Sydney radio host Alan Jones said Morrison should "shove a sock down [New Zealand Prime Minister Jacinda Ardern's] throat". He followed it by saying the PM should give her "a few backhanders".

"[MFW] didn't really want to start a campaign, but the pressure from our followers was intense," says Hill.

"I was working in a successful career at that time, had run my own business for 30 years, so I wasn't looking for anything like that."

Inspired by campaigns overseas, Hill and her supporters drew up a roster to listen to the Alan Jones Breakfast Show and make a note of the advertisers. The supporters then emailed the advertisers to say they were unhappy with the content, urging them to pull their ads.

In May 2020, Jones announced his retirement from his role at 2GB and the following year Sky News Australia announced it would not be renewing Jones' contract.

MFW was widely credited for ending Jones' media career.

Hill made herself available to Money for two interviews to answer any questions, including claims from companies whose advertising MFW targets (who asked that their names not be used).

These included claims that MFW is an extremist group.

"We're only extremists because we're women," she says, adding that pro-nuclear, tax cuts and policies seeking to control women's bodies are more extreme.

MFW has been accused of bullying individuals, such as receptionists or customer service people who work for the advertisers.

However, sending them examples of the offensive content is an important part of MFW's campaign strategy.

Hill says MFW is sorry for upsetting these people, but considers it hypocritical that MFW is being criticised when these companies are supporting offensive content.

Commenting on the #VileKyle campaign, she says: "What I work for now is just trying to make the world a bit better for other women," she says.

With Iran under attack - and retaliating - from joint strikes from the United States and Israel after talks over nuclear capabilities broke down, the price and availability of oil is at stake once again.

Janus Henderson global head of multi-asset Adam Hetts says the current situation has the potential for escalation beyond the relatively short-lived recent conflicts between Israel and Iran seen in April 2024 and then 12 days of war in June 2025.

"From an investing perspective, the main focus is on the impact on the price of oil. Iran produces around 3-4% of global oil supply, but the regional spillover is already accelerating," Hetts says.

"Perhaps most notably, the strikes have led to what is essentially a halt of traffic through the Strait of Hormuz. The Strait of Hormuz is an oil transportation bottleneck in the Middle East through which roughly 20% of the world's oil supply passes."

Hetts says oil prices were expected to rise but that levels should be maintainable.

"These moves are meaningful but not yet particularly worrisome in the broader scheme of investment implications. A continued increase to US$80 would be consistent with the June 2025 conflict, and US$90 consistent with April 2024, when global markets were able to largely shrug off the price rises as the conflicts were resolved in relatively short order," he says.

"As a rough proxy for a major conflict, the Russian invasion of Ukraine in early 2022 brought oil prices above US$100 for a prolonged period with brief peaks above US$120. Oil prices as they stand are pricing in a limited conflict of relatively short duration."

Hetts says should uncertainty persist, investor sentiment could be suppressed which can weigh on risk-assets globally.

"This would likely make global developed market sovereigns, including US Treasuries, and safe-haven currencies more attractive. In a prolonged period of uncertainty, increases in oil prices could generate a global inflationary scare, which in turn may reduce the likelihood of interest rate cuts by the US Federal Reserve, currently expected for later this year," he says.

Principal Asset Management chief global strategist Seema Shah says any further escalation, particularly that which disrupts key energy supply routes or threatens the Strait of Hormuz, would likely have meaningful implications for energy markets and broader global financial conditions.

"Geopolitical shocks are inherently difficult to forecast. Although uncertainty can spark sharp market reactions, history suggests that equity sell-offs driven by geopolitical events are typically short-lived," Shah says.

"Over the past six decades, most geopolitical crises have led to temporary market drawdowns, with a median peak-to-trough decline of around 7%. Markets have typically needed around three weeks to bottom and another three weeks to recover. After three months, equities have historically been about 4% higher."

However, Shah says exceptions occur when geopolitical events materially alter economic fundamentals, trigger a policy response from central banks or coincide with periods of broader macro vulnerability.

"In this context, oil prices are the most important transmission mechanism from geopolitics to the real economy," she says.

"From a supply-demand perspective, oil markets currently appear reasonably well supported. Global supply is running ahead of demand, several Middle Eastern producers increased exports last month, and OPEC+ has agreed to lift production. Inventories, therefore, provide some buffer, though they are leaner than before Russia invaded Ukraine, and spare capacity within OPEC+ remains uneven."

Shah says currently the global economy appears capable of absorbing a moderate, temporary rise in energy prices.

"US growth remains robust, capital expenditure is strong, and household energy spending as a share of income is near historic lows. Corporate profit margins also remain elevated, providing a buffer against higher input costs," Shah says.

"Europe is enjoying a tentative growth revival, while Asia remains a key engine of global expansion, driven by AI-related investment, resilient tech exports, and healthy domestic demand."

Shah says it is important investors avoid making dramatic portfolio shifts in response.

"While our constructive medium-term macro outlook remains intact, the unpredictability of the current episode reinforces the importance of diversification and resilience," she says.

"Portfolios should remain positioned for continued global growth, but with sufficient exposure to assets that tend to perform well during periods of heightened risk aversion.

This article first appeared on Financial Standard

Warren Buffett, one of the world's richest people, isn't making life easy for his kids. The 95-year-old has instructed his children to give his $US140 billion wealth away within 10 years of his death.

It's not the sort of financial challenge many of us will face.

That said, Australians are currently leaving larger estates than at any point in history. But far from bringing families together, the inheritance boom has fuelled significant court action. Inheritance disputes in NSW alone have almost tripled since 2005.

Why estate planning can be emotional

There's nothing new about inheritance disputes. Just ask King Lear.

However, along with larger estates, family dynamics are evolving.

The growth of 'blended' families and a rise in family estrangements can see estate planning trigger a spectrum of emotions - from guilt and anxiety to fear and anger.

Your will may not be a failsafe option 

I know from conversations with financial planners that Australians are often concerned about how long their wealth may last after they pass away.

That's understandable.

Wealth-building often carries memories of hard work, risk and sacrifice, as well as moments of growth, progress and opportunity.

So, when we hand over wealth, we also pass on values, expectations and responsibility.

The problem is that even the most carefully worded will may not always control how a beneficiary will use their inheritance, nor prevent legal actions.

The good news? There are other solutions

While wills play an essential role in estate planning, once a will is admitted to probate, it becomes a public document.

Fortunately, there are flexible - and more discreet, alternatives.

Superannuation and investment bonds are both non-estate assets.

The downside of super is that fund trustees can end up having the final say on who gets your money.

By contrast, investment bonds can be tailored to suit the needs of individual beneficiaries - and be designed to generate income, rather than just handing over a lump sum, or even skip entire generations.

And investment bonds have seen far fewer court disputes than assets within a will.

There's no denying that estate planning can be emotionally challenging. I'm sure even Warren Buffet would agree with that.

But understanding the options to pass on your wealth, your way can make the journey easier and help your family thrive long term.

Felipe Araujo is Generation Life's chief executive officer. He joined the group in October 2017 as head of national key accounts and in January 2019 was appointed general manager of distribution. Felipe joined the group from the Westpac Bank where he held several leadership and national strategy positions, most recently as director of the Westpac Premium Victoria team, responsible for the first acquisition focused team. He has over 16 years of experience in financial services across Australia and Brazil. Previously, Felipe held key positions at Accenture Group, Investments XP based in Brazil and a director role at the Australia Brazil Chamber of Commerce. Felipe holds a Bachelor of Economics and Finance and is currently studying to complete his Level 2 Chartered Financial Analyst (CFA) certification.

We break down why companies choose to list on the ASX, analyse how the IPO market performed in 2025, and look ahead to the sectors and standout companies to watch in 2026, including major global names like SpaceX, Canva and Guzman y Gomez. Simon also shares expert insights and practical tips for anyone considering investing in IPOs.

00:24 Understanding IPOs: Basics and importance

01:50 2025 IPO market analysis

03:08 Materials sector dominance in iPOs

04:08 Private capital vs public listings

05:31 Top performers and future prospects

09:38 Global IPO landscape

14:13 Investing in IPOs: Practical tips

Listen to this episode of Friends With Money

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Subscribe to Friends With Money

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

With the right planning and advice, however, the transition can be both secure and rewarding.

Start planning early 

Think of retirement planning like planting a tree, the sooner you start, the stronger and more fruitful it will be.  And, if you consider estate planning as part of your wealth management strategies, consider the writing of Cicerio, 'He plants trees, which will be of use to another age'.

Ask yourself:

• How long will I be in retirement? 
• What income will I need to maintain my lifestyle? 
• When can I access my superannuation? 

Example: a 55-year-old investor dreams of retiring at 65. After crunching the numbers, they realise they'll need about $60,000 a year to live comfortably. Starting early means they can boost contributions and clear debt before the big day. That's peace of mind in action.

Tip: use retirement calculators to estimate your future income and expenses. And don't forget inflation and healthcare costs, they have a sneaky way of creeping up.

Understand your income options 

Your retirement income might come from a mix of sources:

• Superannuation - your main savings pot. 
• Investments - shares, managed funds, property, and yes, even private credit for diversification and potentially higher yields. 
• Age pension - if you qualify. 

What's a TTR strategy? 

Transition to retirement (TTR) lets you access part of your superannuation while continuing to work, often reduced hours. It's a handy way to ease into retirement without sacrificing lifestyle.

Example: an investor reduces their work hours to three days a week. Using a TTR strategy, they draw a modest income from their super to top up their salary. More time for hobbies, less stress about bills. That's what balance looks like.

Leverage expert advice

Retirement planning can feel like a maze and involves balancing income needs, investment risk and longevity.  A financial adviser can help you:

• Balance risk and reward. 
• Avoid sequencing risk; that's the danger of poor returns early in retirement, which can shrink your savings faster. 
• Tailor strategies to your goals. 

Example: during a period of market volatility, an adviser helps an investor rebalance and add more defensive assets during market volatility. This kept income steady when things got rocky. That's the power of professional guidance.

Embrace a staged approach 

Trees grow from seedlings into saplings and ultimately into maturity. Likewise, retirement planning can be approached in stages:

1. Education - read, learn, attend webinars. 
2. Activation - test strategies, talk to experts. 
3. Implementation - set up income streams and estate plans. 

Taking it step by step makes the process less daunting and more empowering.

Redefine your goals

Your priorities will shift over time. Early years might be about travel and adventure; later years may focus on health and security.

Example: an investor initially budgets for overseas travel but later reallocates funds toward home renovations and healthcare. Flexibility is key - your plan should evolve with you.

Avoid common pitfalls 

• Underestimating expenses - include healthcare and lifestyle costs. 
• Ignoring inflation - prices rise over time, so plan accordingly. 
• Delaying advice - the longer you wait, the fewer options you have. 

Confidence comes from clarity 

Retirement is about confidence, not just cash. Start early, explore your options, including private credit for diversification, and always seek independent financial advice before making decisions.

With the right plan, you can step into retirement with peace of mind and a sense of excitement for what's ahead.

There's another quote regarding timing: "The best time to plant a tree was 30 years ago. The second best time is now."

Designed for reliability in retirement 

For retirees and pre-retirees, dependable income and capital preservation are central to maintaining confidence in retirement. Managing sequencing risk, avoiding unnecessary volatility and maintaining diversification can be particularly important during periods of market uncertainty.

This is where specialist income managers can play a role.

La Trobe Financial's Australian Credit Fund portfolios have delivered steady income and full capital returns since their respective inception dates, including through periods of significant market stress. At La Trobe Financial we believe that income-focused investing means never taking unnecessary risks with investors' capital. With the right approach, it's possible to earn strong, steady returns while safeguarding your investment.

If you're looking for a durable retirement income solution, call the La Trobe Financial team on 1800 818 818 or visit latrobefinancial.com.au.

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website. Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund. 

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website. 

Reader question

Hi Paul, I am 41, married with a three-year-old son.

We own our home, valued at $910,000, with a $500,000 mortgage.

Our plan is to buy three investment properties over the next few years to set up our son with a home and ourselves with a passive income in our retirement years. I earn about $85,000 and my husband earns $105,000.

I will be receiving about $300,000 in 12 months' time from the Department of Veterans' Affairs for compensation for injuries sustained while in the defence force.

Should I pay it off my home loan, invest it elsewhere or add to super? - Brooke

Paul's response

This is not a bad plan, Brooke.

Obviously, I can't help banging on about spreading investment risk through diversification, but it is hard to argue that well-located property in a country where the population is growing is a bad idea. And your super balances will be growing a nice pot of diversified assets.

Adding your compensation payment to super is not a silly idea at all, but I don't see how this fits with your plans to own three properties in the next few years. I'd think topping up via salary sacrifice is a more tax-effective way to build super. Presumably, the compensation payment is your stepping stone to your first investment property.

Chat to your bank or mortgage broker to look at your borrowing capacity.

The elephant in the room is your attitude to risk. The safest thing you can do is to pay down your mortgage. This can't be a bad idea, using an offset account, you effectively earn risk free and tax free, the current interest rate of your mortgage. A very safe option.

Next you could put it in super. Super has performed very well over many decades. Historically, over the long term it should earn a higher rate than your mortgage.

But you can't touch it until you retire.

The highest risk, with potentially the highest return, is gearing into property. Gearing adds risk, it accentuates drops in value but provides high returns if your property increases in value, which it should if you do your research. I know I've thrown the ball back to you, because it is your choice.

Where I hope I have helped is in identifying risk.

Also, please don't forget you don't have to go all in. Maybe starting with one property, topping up your super by salary sacrifice and keeping a bit of the compensation money in your mortgage is a good starting point.

And you would make me very happy, as I do like to see us all managing investment risk through diversification.

What to read next

• How much super you need for a comfortable retirement
• What is your risk profile?
• How offset accounts are helping Aussies hack their home loans
• Why you should diversify your portfolio and how to do it
• The new property investor hotspots in Australia

On this episode of the Friends With Money podcast, Money's Tom Watson is joined Terry Vogiatzis, director of wealth management at Omura Wealth Advisers.

They discuss the pros, cons and trade-offs involved with making use of extra funds.

01:11 Why people find the decision tricky

02:11 Factors to consider before diving in

03:50 Assessing extra mortgage contributions

06:33 Superannuation vs other personal investments

11:38 The benefits of seeking financial advice

14:04 Final thoughts and additional tips

Listen to this episode of Friends With Money

Listen on Apple Podcasts

Listen on Spotify

Watch on YouTube for closed captions

Subscribe to Friends With Money

Subscribe wherever you get your podcasts

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Strong investment portfolios don't happen by chance.

They're built with care, discipline and a clear focus on quality.

What makes a portfolio resilient?

The past 20 years have brought major challenges for investors. From financial crises to global pandemics and trade disruptions, markets have faced serious uncertainty. Yet, investment strategies that prioritise quality have continued to deliver steady income, protect capital and maintain access to funds. Some have even done so without a single investor loss.

The key is how the portfolio is built.

Diversification plays a big role. For example, a mortgage investment strategy can include thousands of individual loans, each carefully selected and spread across different borrowers, industries and locations. This helps reduce the impact of any single event or downturn.

In the private credit space, a key measure of quality is the loan-to-value ratio (LVR). While loans may go up to 80% LVR, keeping it closer to 65% provides a strong buffer. This means that even if property values fall, the loan is still well covered by the value of the property.

A lower LVR also reflects careful lending and a focus on protecting investor capital. It supports steady income and keeps arrears and losses low. In short, LVR is more than a number - it's a key part of a quality-first approach that delivers reliable returns without taking on unnecessary risk.

Who are private credit's borrowers?

Private credit mortgage investments often involve lending to 'complex prime' borrowers. These are financially strong individuals, such as doctors, pilots, business owners and self-managed super funds, who may not meet the strict rules of traditional banks. Their finances may be more complex, but they are still creditworthy.

At La Trobe Financial, 96% of borrowers have no history of credit issues. Their credit scores are similar to those of customers at Australia's major banks.

A personal approach to lending

Banks, particularly post-global financial crisis, tend to rely heavily on regimented and automated lending systems.

This has seen them withdraw from lending into the economy where a more specialised or personalised approach is required to achieve an acceptable outcome for both the borrower and lender. Just because a bank is unable to make the loan, does not mean that one should not be provided.

Private credit lenders, like La Trobe Financial, take a more personal approach. Every loan application is reviewed by at least two experienced credit assessors. This hands-on process ensures that only high-quality borrowers are approved.

Mortgage brokers also play a key role. They help connect lenders with borrowers who need tailored solutions, helping to build a strong and stable portfolio for investors.

Different to a bank

Private credit funds are not bank accounts. They are investment funds, and their managers aren't banks they are asset managers.

By focusing on high-quality assets, strong credit checks and a well-diversified portfolio, private credit has and can continued to deliver for investors through all kinds of market conditions.

The numbers speak for themselves. La Trobe Financial's Australian Credit Fund portfolios have delivered steady income and full capital returns - even during market stress.

The 12 Month Term Account, for example, has a seven-year average annual loss rate of just 0.03%. And, this has been fully covered by the investor reserve, a built-in safeguard that protects against loan defaults.

At La Trobe Financial we believe that income-focused investing means not taking unnecessary risks with investors' capital. With the right approach, it's possible to earn strong, steady returns while safeguarding your capital.

*The variable rate of return is current as at November 1, 2025. The rate of return is reviewed and determined monthly, are not guaranteed, and may be lower than expected. The rate of return is determined by the future revenue of the credit fund, and distributions for any given month are paid within 14 days after month-end.  An investment in the credit fund is not a bank deposit, and investors risk losing some or all of their principal investment. Past performance is not a reliable indicator of future performance. Withdrawal rights are subject to liquidity and may be delayed or suspended."

La Trobe Financial Asset Management Limited ACN 007 332 363 Australian Financial Services Licence No. 222213 Australian Financial Services Licence No. 222213 is the responsible entity of the La Trobe Australian Credit Fund ARSN 088 178 321. It is important that you consider the Product Disclosure Statement (PDS) before deciding whether to invest or continue to invest in any of the funds. The PDSs and Target Market Determinations are available on La Trobe Financial's website. Any Financial product advice is general only and has been prepared without considering your objectives, financial situation or needs. You should, before investing or continuing to invest in the La Trobe Australian Credit Fund, consider the appropriateness of the advice having regard to your objectives, financial situation or needs and consider the PDS for the fund.

When considering whether to invest or continue investing in the La Trobe Australian Credit Fund, you should be aware that (1) an investment in the fund is not a term deposit, and your investment is not covered by the Australian Government's deposit guarantee scheme. Investing in the fund has a higher level of risk compared to investing in a term deposit issued by a bank and (2) there are other risks associated with an investment in the fund. The key risks of investing in the fund are explained in section 9 of the PDS, available on our website.

Reader question

Dear Paul,

I'm a 16-year-old who is passionate about developing my financial literacy. My question is whether you think that, when I'm 17, it would be a good investment strategy to put most of my income into savings plus Vanguard Diversified Balanced Index ETF (ASX: VDBA).

Then when I get a bit older (say 20-22) incorporate Vanguard Australian Shares Index ETF (VAS) and Vanguard MSCI Index International Shares ETF (VGS) for the long haul.

I plan to leave those untouched, but am looking for medium-term investments, obviously not high-risk, too volatile or pure equity, as I'm hoping to access them in the next 10-15 years (property, business etc). - Esther

Paul's recommendation

I am delighted your personal finances interest you. As you know, one of the real truths about money is compound interest - and time is its best friend.

Apart from investing in my uni education and a small amount of money my parents put into shares, I did not get started on the path to financial independence until I was about 27.

Sure, compound returns have worked very well for me and my wife, Vicki, over 40-plus years, but by the time you reach my age of 70, you will have had more than a half century of compounding. Just for fun, let's look at what this looks like. Let's say you start with $5000 and add $5000 a year and see what amount you are likely to have in a fund, such as the Vanguard funds you mention, in about 50 years.

This ignores inflation but, equally, I have not inflation-adjusted your annual $5000 being invested. This strategy would see you with about $2.3 million. I've used the sort of return you would expect from the Vanguard funds you mention, around 7%pa on average. You will be rich.

But here is where I might be able to share something valuable with you. Most of my life as a healthy, fit, active adult has been lived.

Your adult life is just starting. This is so exciting for you. I don't want you to ever lose your financial literacy skills; aim to be a financially independent young woman and maintain this for your lifetime. So much will happen. This is the joy and wonder of being 16.

At 16, I could see school ending and me heading to university in Sydney. I felt strongly I would return to Griffith, NSW, but that idea lasted about a week. A whole new world opened up at UNSW: new friendships, new relationships. These led to me starting my business, ipac securities, with four guys from uni.

I met Vicki. We travelled, had three kids and now four beautiful grandkids. We live a life neither of us could have imagined as 30-year-olds, let alone as 16-year-olds.

So my advice is to keep saving and learning. Invest in the Vanguard funds and build your pot of money. Critically, keep learning how to be good with money, but be flexible and go where life takes you.

Even if relief hasn't arrived yet, the move is telling us something about where the economy is heading. Markets are starting to treat Australia as steady, resilient and worth backing again. That shift matters more than most people realise.

Historically, 70 cents has been the sweet spot for the Aussie dollar. When it's around the mid-60 cents, Australia effectively imports inflation. Fuel, electronics, cars and everyday goods all get more expensive.

Above the mid-70 cents, exporters start to feel real pain as margins compress. Around 70 cents sits the balance point: strong enough to ease inflation, but not so strong that it chokes off growth. That's why this move matters.

Let's start with the obvious upside. Your Bali trip just got cheaper. Flights, hotels, shopping overseas and anything priced in US dollars now costs a little less. Imported goods follow the same logic.

Phones, cars, electronics and clothing stop creeping higher in price when the dollar strengthens. It doesn't show up overnight, but it shows up eventually.

This is where the conversation usually gets lost. A stronger dollar doesn't magically fix the cost-of-living crisis, and anyone who promises it is selling fantasy. Rent doesn't fall because the Aussie dollar ticks higher, and insurance bills don't ease because of foreign exchange moves. Electricity prices don't care what the currency is doing. Those pressures are home-grown, policy-driven and deeply structural.

What the dollar does do is stop things from getting worse. When the currency is weaker, every imported item quietly adds fuel to inflation. That pressure has now eased. Households aren't winning yet, but they've stopped losing ground on that front.

This shift also matters for interest rates. A rising dollar takes pressure off inflation, and inflation is what keeps the RBA awake at night. The stronger the currency, the less urgent the case for higher interest rates becomes. That doesn't mean cuts are coming tomorrow, but it does mean the RBA can breathe a little easier.

But there's a trade-off. Exporters feel the pinch when the dollar rises. Miners, energy producers and agricultural exporters can see margins tighten, but Australia sits in a rare position. Global demand for our resources remains strong, and buyers still need what we dig out of the ground. That softens the blow.

For everyday Australians, the real takeaway is perspective. The dollar's move is a signal, not a solution. It tells you inflation pressure is easing at the edges. It shows that global money is flowing back to Australia and suggests things are stabilising, even if they're not comfortable yet. Watch the dollar the same way you watch the weather. It won't decide your entire future, but it shapes the conditions you live in. Right now, the wind has shifted slightly in Australia's favour.

And yes, enjoy the cheaper Bali cocktails while you can.

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

The best-performing sectors include Energy, up more than 4%, followed by Materials, up more than 3% and Consumer Staples, up more than 0.5%. The worst-performing sectors include Information Technology, down more than 4%, followed by Real Estate and Consumer Discretionary, both down more than 1%.

The best performing stocks in the ASX top 100 include Sandfire Resources, up more than 11%, followed by Genesis Minerals, up more than 7% and Northern Star Resources, up more than 6%. The worst-performing stocks include Life360, down more than 14%; Pilbara Minerals, down more than 9%; and IGO Limited, down just under 8%.

What's next for the Australian stock market?

The All-Ordinaries Index has made a solid start to the week, finishing up more than 0.5% by Thursday's close. While that headline number may appear modest, it's the quality of the move that matters. The index has closed at the highs of the previous two weeks, a constructive signal that momentum is shifting back in favour of the bulls.

With the market now only a few percentage points below the all-time high set in October last year, a test of that level looks increasingly likely as we move into February. A break to new highs would not be surprising, and while it's important not to get carried away, a sustained move into fresh territory opens the door to significantly more upside. A run toward the 9800 level is very achievable this year, and in a stronger bullish scenario, the psychological 10,000-point milestone comes into view.

At a sector level, Materials continue to show impressive resilience, but Energy was the clear standout, surging more than 4%. Strength in LNG pricing, ongoing geopolitical tensions, and rising northern-hemisphere winter demand have combined to provide a powerful tailwind. This backdrop should continue to support the Energy sector and may also flow through to Utilities as the year unfolds.

Overall, it's been an excellent start to the year. January delivered close to a 3% gain and set a confident tone heading into 2026. For those who used the break to refine their strategy and prepare their watchlists, this is exactly the type of market environment those preparations are made for. The market is moving again, so it's game on.

For now, good luck and good trading.

Rodney Forrest secretly accessed the computer of Regal Partners' chair in August 2024 and photographed confidential documents about a planned takeover of Platinum Asset Management.

He then bought, and encouraged others to buy, more than $3 million worth of Platinum shares before leaking details of the deal to the media.

The trades netted more than $300,000 in profit. Forrest will be eligible for parole in 2029.

The case is a stark reminder of how seriously regulators treat insider trading.

In Australia, the offence carries penalties of up to 15 years' jail and fines of more than $1.5 million.

But what actually counts as insider trading, and why should everyday investors care?

What is insider trading?

Insider trading is when someone trades financial products, such as shares, while in possession of information that is not publicly available and could affect the price of that investment.

Crucially, the rules don't just apply to company insiders like executives or board members.

Anyone who receives and acts on inside information whether through work, personal connections or chance access, can be caught.

It's not just about buying shares

Many people assume insider trading only means buying shares ahead of good news. In reality, the net is much wider.

It is also illegal to:

• sell shares before bad news becomes public
• recommend or encourage someone else to trade
• tip off another person who is likely to trade
• ask someone else to trade on your behalf

Even choosing not to trade, if that decision is based on inside information, can put you at risk.

Importantly, it doesn't matter if the information later turns out to be wrong. What counts is whether you believed it was inside information when you acted.

What counts as 'inside information'?

Inside information is any non-public information that a reasonable person would expect to have a material impact on a company's share price.

Common examples include:

• details of a takeover or merger
• upcoming financial results
• major customer contracts or strategic partnerships
• changes in senior management or board structure

It can also apply indirectly. Trading based on sensitive information about a supplier, competitor or customer of a listed company can still fall foul of the law.

Is insider trading a victimless crime?

The Rodney Forrest case marks the first outcome for ASIC's new specialist insider trading team which investigated and finalised the case within 16 months of the offending.

It's the result of a perennial battle to address what is often seen as a victimless crime.

Ten years ago, then-ASIC chair Greg Medcraft published an op-ed about insider trading after disgraced trader Oliver Curtis was sentenced to two years' jailtime for it.

After Curtis served one year, he went on to make a small fortune investing in liquid that cools down data centres.

Three months after serving his own sentence, Curtis' partner in insider trading and former classmate at elite private school St Ignatius College, John Hartman was scooped up by Australia's richest man Andrew Forrest, the Sydney Morning Herald reported.

Critics questioned whether the punishment fit the crime.

"This is not a victimless crime. Those on the other side of the trade - those who were not "in the know", certainly suffered," Medcraft said.

"They did not make the $1,433,727.85 that Curtis did and were denied a fair and equal chance to make a profit from their trading."

ASIC's focus on insider trading

In 2024, ASIC reviewed the cleanliness of Australia's markets from 2006 onward.

It found that while Australia's equity markets are among the "cleanest in the world", the review also identified two periods where conditions deteriorated - in 2020-21 and again in late 2023.

Medcraft had previously shared what Australian investors would be losing if standards slipped.

"We are all affected, at least indirectly, by insider trading," Medcraft said in the op-ed.

"Just as we are all beneficiaries of living in a society where the rule of law is respected, where markets are assumed to be fair and transparent and where it is assumed sensible, informed decisions are possible."

This led to strengthening the regulator's scope and resulted in the formation of ASIC's specialist team.

A decade after the infamous Curtis case, current ASIC Chair Joe Longo echoed the sentiment of his predecessor: "Insider trading is a zero-sum game."

"When somebody profits from inside information, everyone else loses, including every Australian with a superannuation or investment account."

Only this time the consequences were far greater: Where Curtis and Hartman profited in the millions, Forrest profited more than $300,000.

Where Curtis was sentenced to two years jailtime, Forrest was sentenced to six.

Since 2009, ASIC investigations have led to 46 criminal insider-trading convictions, and the regulator is narrowing the space for anyone hoping to profit from information kept out of reach of everyday investors.

"ASIC will continue cracking down on insider trading and other misconduct that damages," says the outgoing ASIC Chair.

"Australia is recognised globally for the integrity of its financial markets, and ASIC is determined to keep it that way."

Reader question

Hello, Paul.

My husband and I used to subscribe to Money magazine in the late '80s and '90s for several years while both working, and valued your advice and opinions.

Now we're both receiving a small amount of government pension each fortnight as we have too much in each of our super accounts.

We have a new grandson (a delight we never thought would happen) and would like to invest some money for him, about $2500.

I've done some research and am leaning towards some kind of shares for him? I would greatly appreciate your thoughts. - Wendy

Paul's response

Hello Wendy, I do appreciate your comment that I did not lead you astray with your money back in the '80s and '90s.

Goodness, that was a long time ago. Like you, Vicki and I also have the pleasure of grandchildren, in our case two little girls from each of our older kids. We do love them.

I had to chuckle about you having too much money in super, that is probably partially my fault, but what a lovely problem it is. Vicki and I are in the same boat, in that we are able to live off 
our super, other investments and my part-time work. Vicki sometimes mentions I should retire fully, but I really enjoy the money-type work I do and, in particular, answering questions in each issue of Money magazine.

So, what do we do about our grandkids? Well, first, as they grow we make them aware of money, even if it means getting cash from an ATM and paying for things when shopping with them and getting change.

As they get older, with their parents' approval, open a bank account for them and pop in a bit of Christmas or birthday money. This money will not grow for them, so don't put in much; it is all about money principles, not amounts.

I agree with you, shares are an excellent long-term wealth creator. We've built a small share portfolio for our four. One of the easiest ways is to invest via an ETF. You can buy these on the ASX or you could use a low-cost manager such as Vanguard or BlackRock.

These allow you to establish an account for your grandchild; you'd invest as trustee for them and you can add to that account.

Over the decades, with periodic contributions, this will grow into a very handy sum for your grandchild, but as they grow, it is also a way of teaching them and talking about money. I can't stress how important this is.

Money remains a bit of a taboo topic with our kids and grandchildren. We really need to talk to them about money as part of our daily lives.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Australia's financial services industry is the second largest contributor to our national economy, behind the mining sector, and managed funds are, in turn, a major component of the financial sector.

It takes a lot to reach the top - and stay on top, of the managed funds industry in Australia, but that's exactly what Macquarie Asset Management has achieved.

Macquarie has taken out the award for Best Investment Manager for the second year in a row. A key point of difference Macquarie Asset Management brings to the table is a focus on active rather than passive management.

Brent Andal, head of ANZ Wealth, Macquarie Asset Management, says, "At Macquarie Asset Management we believe active management is essential to providing long-term value for our investors."

Macquarie Asset Management certainly has size on its side. It is an international asset manager with approximately $941 billion in assets managed globally. These assets are spread across a diverse range of investment solutions including real assets, real estate, credit and equities and multi-asset options. It gives Macquarie's investors the benefit of choice and clever ways to achieve that all-important portfolio diversification.

Andal notes that MAM has a strong track record of "providing differentiated investment solutions to our investors across public and private markets while maintaining focus on areas where we have an edge and where we think we can generate alpha (above-benchmark returns) long term".

He adds that MAM takes "a long-term approach to investing as a fiduciary for our clients. Our investment teams leverage deep research, analysis and market data to uncover opportunities that may be missed by passive approaches". Andal further explains the strength of Macquarie's investment teams.

"In today's dynamic markets, their expertise enables us to respond swiftly to evolving risks and changing conditions."

While Macquarie Asset Management offers a variety of unlisted managed funds to retail investors, it also has a line-up of exchange traded funds (ETFs). However, rather than focus on passively managed ETFs that aim to match market returns, the common thread behind Macquarie Asset Management's ETFs is that they are actively managed.

In this way, Macquarie Asset Management lets investors benefit from the transparency and convenience of an ETF structure, while accessing new options for portfolio diversification and the potential for index outperformance.

As Andal says, "With a commitment to excellence, our investment experts strive to consistently outperform benchmarks and deliver superior returns to meet client needs."

How do you find the best managed funds and ETFs?

Rainmaker's managed funds and exchange traded funds awards consider a variety of factors to determine winners and finalists.

While overall medium term (five-year) performance is important, it is only one factor among many. Our quantitative process also considers investment risk, in the form of volatility (standard deviation) and downside volatility (the variability of negative returns generated by the fund). Accounting for a fund's risk is critically important, because it would be naive to simply award funds with the highest returns if they had also subjected investors to the highest risks.

To further improve our performance insights, we also examined performance persistence (or consistency) relative to the peer group using annual performance in each of the preceding five years.

In other words, performance persistence is more interested in rewarding investment providers that have a time series of annual returns that are competitive against the peer group, rather than just a higher average return for the period.

Finally, in some asset classes such as shares, an adjustment is made depending on whether a product has shown a persistent bias to style factors, such as value, growth and small-caps.

The best managers are chosen for having the most products shortlisted in most categories. The products are ranked in each category, and this ranking determines the number of points given to each product. The manager with the most points determines the winner.

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.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Investors prize consistency. And, as the winner of this award every year since 2010, it is hard to think of a more consistent performer than La Trobe Financial. This year winning with its La Trobe Australian Credit Fund - 12 Month Term Account.

La Trobe Financial has been active in private a for more than 70 years and in 1989 launched investments for retail investors. Some 36 years later, it has continued to steward investor capital by providing durable, low-volatility income for retirees and pre-retiree investors.

Chris Paton, chief investment officer at La Trobe Financial says, "Our longevity and proven track record allows investors to invest with confidence. We have delivered consistent monthly income for investors from a portfolio carefully constructed to deliver across the cycle. Our products are backed by high-quality granular assets within diversified portfolios, from a manager with a commitment to transparency and best-in-market liquidity disciplines.

"We have demonstrated our experience as careful stewards of investors' capital, building out market leading liquidity management, disclosures and transparency frameworks. Our hard-wired conservatism to managing investor capital has seen us thrive through a range of real-world challenges."

In addition to length of time in the market, Paton says La Trobe Financial stands out for its "human-centric approach and unwavering commitment to transparency. We are driven by people and purpose to deliver for our investors."

How we found the best managed funds and ETFs

Rainmaker's managed funds and exchange traded funds awards consider a variety of factors to determine winners and finalists.

While overall medium term (five-year) performance is important, it is only one factor among many. Our quantitative process also considers investment risk, in the form of volatility (standard deviation) and downside volatility (the variability of negative returns generated by the fund). Accounting for a fund's risk is critically important, because it would be naive to simply award funds with the highest returns if they had also subjected investors to the highest risks.

To further improve our performance insights, we also examined performance persistence (or consistency) relative to the peer group using annual performance in each of the preceding five years.

In other words, performance persistence is more interested in rewarding investment providers that have a time series of annual returns that are competitive against the peer group, rather than just a higher average return for the period.

Finally, in some asset classes such as shares, an adjustment is made depending on whether a product has shown a persistent bias to style factors, such as value, growth and small-caps.

The best managers are chosen for having the most products shortlisted in most categories. The products are ranked in each category, and this ranking determines the number of points given to each product. The manager with the most points determines the winner.

Reader question

Dear Paul,

I migrated to Australia in 2008 with one suitcase, $1500 in savings and a student visa.

Since then, my spouse and I (ages 37 and 34) have built a family with two children (ages eight and four) and a household income of around $250,000 per year. We have no car loans or credit cards.

We own our principal place of residence, valued at $880,000 ($450,000 mortgage) and one negatively geared investment property ($700,000 mortgage) in Melbourne.

I contribute the maximum concessional cap of $30,000 per year into super starting from last year.

We have around $230,000 invested in shares and ETFs, plus $60,000 in our offset account.

For our kids, I've set up kids accounts and contribute $8 (ETF value $3400) and $4 (ETF value $1200) per week (based on their ages) and invest in ETFs for them every couple of months via CommSec Pocket to teach them about money.

Looking ahead, I'm unsure whether it's better to buy another investment property, continue maximising super contributions, or invest more heavily into ETFs and shares.

Which option would be the most effective wealth-building strategy given our income, existing assets, and long-term goals? I have been following Money magazine since 2020. - Deepak

Paul's response

I love your suitcase, $1500 and student visa start to life in Australia, Deepak.

We also appreciate your support of Money magazine. It seems a long time ago that we launched the first edition in 1999. I certainly have a lot more grey hair!

I can see we share a commonsense view when it comes to personal finances.

Building your career or business to generate income is the starting point, then it is spending less than you earn and applying the surplus to saving and investing.

Sounds easy, but we all know it is not; life gets in the way. But you have done all the key core things at an early age.

At 37 and 34 you have done well to own a home, an investment property, you are building super and investments outside of super and the family home. Now I think about it, looking back to when I was 37, you are significantly ahead of me at the same age.

I'm also delighted you are teaching your kids about money.

There are programs such as Ecstra Foundations Talking Money programs in schools, but teachers time and resources are very stretched.

Teaching kids about money, without boring them to tears, is a major parent and grandparent responsibility.

Money skills are not a nice-to-have, they are a must-have.

I am so grateful to my parents for putting a little money aside for my sister and I, plus talking to us about our family finances over the dinner table. Too many parents keep this very secretive. That is a bad plan for your kids.

I don't need to spend much time on your money, because you are seriously good at it.

Frankly, just the $30,000 a year into super via salary sacrifice is a very clever strategy. That alone will see you with a huge super amount in say 30 years or so.

But you can't access that for decades, so building wealth outside of super is also a great plan. That takes us to property or shares. The choice here is more emotion than logic. A well-located property or a low cost global and Australian share portfolio will deliver solid returns over time.

It is technically correct that your average share portfolio will outperform your average property, but not by a lot.

Personally, I lean into shares. I love the dividends, often fully franked, plus no issues renting a property or fixing the broken toilet. The liquidity in shares is also good.

Of course you could borrow to buy shares, but most do this with property. At your age and income, while gearing increases your risk, over the long-term debt should be your friend.

The obvious comment I would make is you have far more in property than shares, so spreading risk is not silly.

My advice is to do your planning. Look closely at the risk another leveraged property means to you and your family, but I cannot argue that in your situation, sensible risk, using debt, is a viable strategy.

Whether from here you prefer to build wealth via shares or property is not really the critical issue for you. Just keep doing what you are doing and barring a major unpredictable global event, I can see you will be financially independent at a quite young age.

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Bendigo Bank named Money's Best-Value Term Deposits - Long-Term - Banks

The returns on offer to Australians with savings in the bank have taken a downward turn. But there's still an opportunity for savers to earn a better return on their money by shopping around and entrusting their savings to a bank offering better value.

Billing itself as the 'better big bank', Bendigo Bank can certainly make that argument with confidence when it comes to the value provided by its long-term term deposits.

Bendigo Bank took top spot in the category this year, thanks to the interest rates available on its two-, three-, four- and five-year term deposits that were, on average, higher than its big bank competitors.

Savers who are willing to lock at least $5000 away in a Bendigo Bank term deposit will earn a fixed-interest rate on their money over the course of their chosen term and receive their interest at maturity.

Savers may also sleep easier knowing that funds up to $250,000 kept in a Bendigo Bank term deposit will be guaranteed by the Federal government under the Financial Claims Scheme.

Of course, one common question savers might have when it comes to term deposits is why they would want to lock away their savings for years at a time rather than keeping them in a more accessible location such as a savings account?

According to Bendigo Bank, long-term term deposits can provide competitive rates that are guaranteed over the course of the term, meaning that savers have more certainty if they're looking to generate a specific return over a set timeframe.

BankVic named Money's Best-Value Term Deposits - Long-Term - Customer-Owned Banks

One of the strengths of the Australian banking ecosystem is the diversity of choice available to banking customers. There are major banks. International banks. Digital banks. Regional banks. Banks that cater to specific occupations.

BankVic is one of them. Originally formed in 1974 in Victoria as a credit union for police officers, BankVic now has more than 120,000 members made up of workers from the police, health and emergency services sector.

As a customer-owned bank, BankVic says that it's able to reinvest its profits in the banking experience it offers to these members. Part of which is designing products that are a cut above. 

That certainly rings true for BankVic's longer term deposits. The competitiveness of the rates available across its two-, three-, four- and five-year terms helped BankVic take out top spot in this category ahead of its customer-owned counterparts. 

While savers will naturally be focused on the returns, there are other features to a BankVic term deposit worth knowing about. 

Customers will need to be willing to lock away at least $5000 over the term in exchange for interest which can either be paid annually or at maturity. And unlike some other banks, BankVic won't charge a fee for savers who need to withdraw their funds ahead of schedule. 

Savings up to $250,000 per person held in a BankVic term deposit will also be safeguarded under the federal government's Financial Claims Scheme in the unlikely event that BankVic goes under. 

Judo Bank named Money's Best-Value Term Deposits - Long-Term - Boutique Banks

The decision to lock away money in a term deposit for three, four or even five years isn't likely to be an impulsive one. Savers may want to ensure that the timeframe aligns with their goals and that they can live without that money. 

They might also want to make sure that they're being adequately rewarded by way of a competitive interest rate. The kind of rates that 2026 Best of the Best award winner Judo Bank offers with its longer term deposits. 

"At Judo, we are committed to helping our customers grow their wealth with confidence and to support their financial wellbeing, and it's great to be acknowledged for this," says Patrick Nolan, general manager of product at Judo Bank. 

And it appears that savers are taking advantage of the certainty that comes with a fixed rate - not to mention the higher rates often available on longer term deposits - to work towards a range of goals.

"Many of our customers use long-term deposits to save for major life milestones and things like a home deposit, children's education or their retirement plans," says Nolan. 

"Others are focused on building financial security and setting aside funds they don't need immediate access to, but want to see grow steadily and safely over time. 

"There's also a growing segment of customers who value the predictability of a fixed return in the uncertain economic environment we are seeing now. For them, a long-term term deposit is a way to lock in peace of mind while staying disciplined with their savings."

Want more Best of the Best? Australia's best-value super funds for young people

How do you find the best term deposits?

Term deposits (TDs) were assessed according to the highest interest rates in two categories: short-term TDs that paid the best rates at maturity for terms shorter than 12 months and long-term that paid the best annual interest rates for terms longer than one year.

He was focused. He was objective. He was a young Australian who lived in Bali. He had inherited $500,000 that he didn't expect or need and, with no stockmarket knowledge, he set about investing it.

His first step was to find me: sought me out. He even did his homework when finding a broker.

BB (as my colleagues called him - a play on Bali Boy), interestingly, had all his own ideas and almost all of them were good.

It reached a point where my broking colleagues started surreptitiously monitoring his account in the admin back end to find out what he was doing and when. The chatter in the lift was regularly about what BB had just done.

BB was a bit unique for a couple of reasons. One was that he only ever held one to five stocks: no diversification for him. Two, he didn't want advice, from me or anyone else. If he was going to lose his money, it was going to be him that lost it, no one else.

And if he was going to make it, it was going to be him who made it.

I was simply someone he used for information and someone he used to execute trades for him. He never wanted to hear my lame morning meeting ideas. They were for the sheep, which suggests he was the wolf.

But he wasn't a wolf. He was a sheep as well - a very nice, pleasant sheep. But he was a touch smarter than the average sheep.

He was the sort of sheep who would let someone barge the queue at the abattoir. An independent sheep and, ultimately, a very pleasant guy.

(Note to clients - you get much more out of service people being nice.)

When I first 'met' BB as a client, he had his inherited $500,000. By the time I left him to go and write newsletters? Millions.

I wouldn't be writing about him if he had lost money, of course, but he didn't, so I am. The incredible thing about BB was his focus. Zero to five stocks with a 100% hit rate.

And the trick of it was this - take note.

He didn't trade - he played themes.

When I was talking to him (2005 - some years ago now), he was playing the iron ore theme, and we were in the middle of the Australian resources boom (China was building a city the size of Brisbane every three months). He sat most of his money in BHP.

He held Fortescue Metals when it was just an explorer. Never saw him sell it. He also played uranium. He held Paladin when it was less than 5c.

He sold it the day Fukushima blew up (it got to $10).

I would ring him up and unimaginatively tell him to buy Leighton Holdings because the analyst had told us it was cheap, and he'd say: "Marcus, I don't know the stock, I don't care if it's cheap, what's the theme, what's driving it, what's the catalyst? Without that, without the fundamentals getting better, the price won't go up, so why would I buy it?"

And there's the key.

He only bought and held stocks that were riding a wave because of some catalyst. The static fundamentals alone, cheap or expensive, were/are not enough. The fundamentals need to be on the move, changing for the better. Let's repeat that - the fundamentals need to be changing for the better.

The resources boom was a theme. Anything close to the theme was having its fundamentals propelled and changed, every day, for the better.

Cue a Marcus Today Principle; "Good things happen to stocks in good sectors".

We used to watch in awe as BB's iron ore stocks announced better-than-expected results (how did he know?), 
or declared special dividends (was he analysing the accounts?), or announced share buybacks (surely he knows someone), or got taken over (he's inside trading). We scratched our heads. Just HOW did he know?

Well, he didn't. He knew nothing we didn't know. But what he did know was that good things happen to stocks in good sectors.

The iron ore space was booming, so, in hindsight, of course companies had better-than-expected results, of course they declared special dividends, of course they announced share buybacks, and of course other companies wanted to take them over.

That's what happens when you have a strong core driver in a sector. Good 'luck' follows (a takeover, buyback, special dividend, better-than-expected results).

It is the same in Big Tech at the moment. All the Big Tech companies are making a fortune. When companies have money, they do deals, they announce investments, they have great results, they have share buybacks, they pay special dividends and they take each other over.

And these, arguably, blatantly obvious observations, can make you rich the same way the iron ore theme made 
BB rich.

Conclusions

• BB succeeded because he came at stocks through themes. Let's repeat that - he bought stocks because of themes 
and held those individual stocks until the theme ended.
• These days, we have ETFs that allow us to buy themes a lot more easily without the individual stock risk. He didn't have that luxury. We do.
• He found those themes easily - it wasn't rocket science. He simply applied himself to the task of finding themes. As we used to say in broking: one good idea a year makes for a very good year. One good theme a lifetime can make for a very good investing lifetime. He did it by simply reading. In Bali. Plenty of reading time in Bali. We can all read. You don't have to be an analyst to pick up on BNPL, milk powder, AI, Big Tech, weight-loss drugs, cybersecurity, robotics... all you need is the awareness that one good theme can make you rich and keep your antennae tuned for the next one.
• He was objective. As an Australian in Bali, I felt his edge was that he came at Australian stocks from the outside. He was the Man in the Moon. The Man in Bali, if you like. His objectivity was key. Let's repeat that - objectivity is key. He saw what we missed because we were up too close. He saw that China had to have Australian iron ore to build a city the size of Brisbane every three months. That's all it took.

For BB it took one theme. Bang. Rich.

The global expansion of nuclear power made him richer. Fukushima ended that theme. He knew it that day, and sold.
Spotting the end of the theme is obviously a bit of a trick as well.

It can be characterised as saving money for a 'rainy day' or to meet some future goal, meeting future income requirements, enabling money to compound over time, and as a means of ensuring that inflation does not erode the purchasing power of our money.

We've all seen the scourge and magnitude of inflation over the past few years. And it has been a major focus for the Reserve Bank of Australia (RBA) in setting monetary policy (interest rates) to try to get the inflation rate back to the 2%-3% target band.

The impact of inflation

Inflation has been unavoidable since the dawn of time. To illustrate the cruel reality of inflation diminishing $100 over time, let's take a $100 polymer note issued by the RBA that has not been invested, even at the bank.

One hundred dollars from 25 years ago would only be worth around $50.46 today. In other words, inflation has eroded almost half of what $100 was worth at the turn of the century.

Inflation can be viewed as a hidden tax because it diminishes the value of our money. In the past few years, after more than 30 years of very low inflation, the 'inflation genie' had been allowed to escape the bottle and caused quite painful cost-of-living pressures for many Australians.

To preserve the monetary value of their assets, investors typically look to opportunities and financial products that can at least keep pace with inflation's erosive effects.

Principles of investing

What are the critical principles around investing $10k?

While people have different investment needs, the starting point is almost the same for everyone.

It begins by asking a series of important questions:

1. What is my ultimate goal? 
2. What is my time horizon? 
3. What are the costs involved? 
4. What is my risk profile or appetite for risk, given that different types of assets (equities, property, gold, crypto etc) have varying degrees of variability in their returns over time? 
5. What assets or financial products do I invest in? 
6. What types of risks am I being exposed to and do I have the requisite information to be able to make the investing decisions I need to make with confidence? 
7. Do I need expert advice to formulate my investment approach and execute the strategy? 
8. Are any investment recommendations appropriate for my situation?
9. Do I understand the fine print clearly? 
10. Have I been able to sufficiently diversify my assets in the event of a major economic calamity? 
11. Am I unnecessarily financially exposed to unscrupulous intermediaries? 
12. How liquid (the speed and cost of converting assets to cash) are my investments, and how important is this feature, given the investment approach I have decided to adopt? 
13. What kind of tax might my investment strategy attract?

While diversification is one of the most important aspects of investing, it is the old adage of 'time in the market, not timing the market' that matters.

Empirical research shows that even the most savvy, professional and well-informed experts have a great deal of difficulty in truly forecasting what the winning (or losing) investments next year will be, including whether we are at the top or bottom of the investment cycle.

And not all assets perform the same.

Assets have different risk profiles and different return features, including that not all assets provide income (such as dividends or interest) and not all assets or investment products have capital appreciation (for example, bank deposits).

Some assets are perceived as speculative (such as cryptocurrencies), while others are considered as 'safe' (such as short-dated Treasury notes that pay periodic interest or perhaps gold).

In terms of investing $10,000, there are two popular approaches suitable for investors with various levels of expertise. First, investment in exchange traded funds (ETFs) is popular and useful for implementation purposes, as ETFs are an efficient way to provide broad diversification benefits with a relatively low amount of capital invested.

The other approach is to invest a proportion of the $10,000 (say half) today, then to 'drip feed' the remainder of the assets over a period of time (say $1000 every six months or over five regular purchases).

It's an approach known as 'dollar-cost averaging', which helps ensure that the whole amount is not invested potentially at the very top of the market cycle. In other words, a staggered investment approach ensures an average price point that will be lower than a fixed point in time at the very top of the market.

One final noteworthy point: past returns are not necessarily an accurate guide to what future returns might be.

WHERE TO INVEST $10K: Why Michelle Baltazar backs EV ETFs

Reader question

Hi Paul, my husband and I are both 31. No children but trying.

We own our home, which is worth about $1.3 million. The mortgage is $293,500.

We have a newly built investment property worth about $710,000. The mortgage is $508,000, and it's currently rented.

We also have an equity loan of $142,000 and my husband's HECS debt of about $100,000. We don't have any other debts.

We both work. Our combined monthly income is about $10,900 take-home. This is after a 15% contribution to our individual super accounts. My super is sitting at $166,000 and my husband's is $30,000.

We have about $27,000 in our home loan offset account.

Our next financial plan is to pay off the mortgage on our home in less than five years. I want to work part-time after paying off our home.

We currently don't invest in the market, but I plan on investing in mutual funds after our house and equity loan are paid off.

But my husband prefers to obtain another investment property over investing in the market.

My questions are: can I work part-time in five years, and which financial strategy is better, mine or my husband's? - Mary

Paul's response

I'd better put on my crash helmet here, Mary, I can hear your husband getting cranky with me. You are right. I admit this is a technical argument because in Australia, thanks to a growing population and limited areas of our country where we can live, property has done very well.

But so have other investments, such as shares. This is why our major super funds own no or very little residential property.

It is too labour intensive, has high stamp duty and selling fees, too many costs to maintain and run and, frankly, on a risk-adjusted basis, in particular given the lack of liquidity in residential property, other investments have historically returned more.

But I'm not arguing that property hasn't been a good investment - and it will continue to be as long as our population grows, which is highly likely.

Here we come to personal choice.

To be frank with you I don't much care whether people invest in property or shares, as long as they do something.

Technically, though, 'spreading your risk' is just common sense. Look at the returns from any decent, large, low-cost balanced super fund since the inception of compulsory super over 33 years ago. This is about 8%-9%pa. And this is after all costs, with zero effort on your part.

In terms of going part-time in five years, looking at your pool of assets, which you will build over the next five years and you will also pay off your home, providing you don't plan on buying a Learjet, the answer is yes.

Obviously, how much you spend is the key to this, but it is clear to me you are very good with money and have built a lot of wealth at a young age.

I'm not going to have a hissy fit if you buy a property, but it is putting most of your eggs in one basket. On technical terms, however it is a yes from me to your idea to spread risk and a no to more property. Sorry, hubby!

From all the Money team, we wish you the very best in starting a family.

The 2022 Bordeaux vintage is being billed as the "vintage of the century", with critics calling it the best modern Bordeaux yet, even outshining the prized 2016 crop.

Michael Anderson, head of Australian auction house Langtons, says the enthusiasm is justified.

"Bordeaux is always a solid long-term luxury investment," Anderson says. "In the best vintages, such as 2022, it takes a step up."

For investors, the timing matters. Prices are softer after a sluggish few years, while quality at the very top end is exceptional. That combination is rare in the wine world.

The fine wine market has cooled - but that may help investors

The global fine wine market has gone through a correction.

The Liv-ex Fine Wine 1000 - a major benchmark for global wine prices - has fallen 17.8% over the past two years, following weaker demand for the disappointing 2023 and 2024 Bordeaux vintages.

Industry sentiment is mixed. The 2025 Global Vines Report, which surveyed more than 800 wine professionals, shows buyers are becoming more selective.

Demand for low- and no-alcohol options is rising, and sustainability is becoming a major purchasing factor. Younger collectors, in particular, want transparency around how wines are grown and made.

Almost half of experts expect a market rebound by 2026, but 39% are bearish for the outlook. For retail investors, that could mean there's more value in choosing standout producers and standout vintages rather than broad exposure.

Why does Bordeaux still matter?

Bordeaux's key market index, the Liv-ex Bordeaux 500, has fallen nearly 20% from its 2022-23 peak.

Analysts also warn of a short-term surplus of high-end wine, with secondary market prices for Bordeaux and Burgundy down around 30%.

But the long-term story hasn't changed. Bordeaux's cabernet sauvignon and merlot blends have defined fine wine for centuries because of their ability to age and gain value over time.

And there's a cultural shift helping its appeal. As one Global Vines respondent put it: "People are drinking less, but they want better wine, unique experiences and stories."

Anderson sats the best Bordeaux estates offer all three.

What's so special about the 2022 vintage?

The 2022 vintage succeeded where it could have failed. While the season was unusually hot and dry, Langtons says careful vineyard and cellar work kept the wines balanced.

This resulted in bottles with richness and depth.

"People who can spend at this level demand the best and 2022 is the best of the blue-chip Bordeaux," Anderson says.

Wine critics agree. The 2022 Global Vines Report ranked Bordeaux at the top for red wines tasted during the year.

Review site James Suckling noted that although some wines showed higher alcohol or softer acidity, the leading estates produced reds that remain fresh.

How long can 2022 Bordeaux age?

Fine Bordeaux doesn't show its full personality immediately.

Most top 2022 wines will begin hitting their stride in around five to ten years, with the very best remaining collectible - and enjoyable - until about 2060.

This ageing curve is central to the investment appeal: time enhances both flavour and financial value.

The top wine investment picks of 2022

When asked which wines offer the strongest long-term potential, Anderson nominates three:

• Cos d'Estournel - Known for consistency and exceptional ageing potential (around $750 per bottle).
• Château Lafite - A "First Growth", the highest Bordeaux classification, retaining global demand in every great vintage. (around $2000 per bottle).
• Château Pontet-Canet - A biodynamic "Super Second" with lower production in challenging years, supporting long-term scarcity and value (around $330 per bottle).

Château Latour and Château Mouton Rothschild were also among the most talked-about wines of the 2022 vintage, according to the

How beginners can start investing in Bordeaux

There are four main pathways:

1. Buy bottles and store them

Ideal if you want the option to drink or sell. Professional storage is recommended unless you have a consistently cool space at home. Wine should be kept between 14°C - 18°C and at around 65%-75% humidity. Light and vibrations also need to be kept at a minimum.

2. Invest through En Primeur

This means buying wine before it's bottled. It often gives access to lower prices and guarantees allocations for sought-after estates.

3. Buy at auction

Anderson says auctions can offer good value, especially for large-format bottles or producers that are well known internationally but less recognised in Australia.

4. Use wine investment platforms or indexes

These allow investors to buy into curated wine portfolios without handling storage. It's a passive option, but you lose control over which labels you own.

The bottom line - wine is an asset you can enjoy

Bordeaux can be a slow-moving investment, and storage costs need to be factored in. But for investors wanting an alternative asset with heritage, scarcity and longevity, the 2022 vintage offers a rare mix of quality and value.

Anderson says that while rare wine can behave like other luxury goods in terms of price performance, there's one important difference.

"You can't drink a Birkin bag," he says. "The beauty of Bordeaux, indeed, all fine wine, is also the beauty itself."

"In a custom-built home, rows of red-topped wine bottles in the display cellar evolve into an interactive art piece that reveals as much about the collector as it does about the artist."

"Plucking a bottle from the cellar to share with a guest (or letting them choose) or selecting a dozen to sell at auction, luxury collecting, and investment in this sector gamify the experience like no other."