A few clients this week have asked me if it’s a good idea to invest a large sum in the share market at the moment (for a variety of reasons e.g. as super contributions, a gearing strategy and so on). I told these clients that I have some real concerns with it – not because I don’t have faith in the stock market – but because of the difference between actual versus compound returns.As these charts demonstrate , the US and Australian stock markets are close to their peaks since the GFC hit nearly ...
May 01, 2018•4 min•Season 1Ep. 18
You loan structure can have a big impact on your success as an investor. How you structure your loans can influence on your interest rates, borrowing capacity, cash flow, taxation liabilities and so on. Four years ago I wrote this blog which included 7 loan structuring tips and I wanted to update you on a few matters.In this podcast I discussed: Funding a property owned in one spouses name only Loans in join names typically are not a problem Cross securitisation and maximising your borrowing cap...
Apr 24, 2018•7 min•Season 1Ep. 20
I am a big believer in having balance when it comes to managing money. That is, it makes no sense saving ever dollar and always “going without”. After all, none of us know how much longer was have on this planet so we must make the most of every day. However, by the same token, it’s equally silly to spend all our income without any thought towards saving for tomorrow. We need to do both. It’s about finding a balance between spending some money today and save some for tomorrow.It can be very rewa...
Apr 17, 2018•7 min•Season 1Ep. 19
In this episode I discuss how do you get better value for money from your income protection insurance?I discuss: the importance of cover the key features of a contract why agreed value is better than indemnity value why I don’t recommend getting cover inside super (be warned) How to select a provider Why “quality” is so important and what quality refers to Some tips to reduce the cost of cover. If you are an investor, then its likely you need some level of income protection. It is important to e...
Apr 11, 2018•8 min•Season 1Ep. 17
We have all read the horror stories in the newspapers or seen them on television: Mum and Dad put their trust in a financial advisor. The advisor ‘sells’ them an investment that paid him a substantial commission. The investment was poor quality. Mum and Dad subsequently lose their life savings and the advisor goes unpunished. A new story like this comes up every few months. It’s frightening and very upsetting!I propose you can only do one thing to eliminate 99.9 per cent of all these stories occ...
Apr 03, 2018•7 min•Season 1Ep. 16
Evinced-based investing (EBI) is an approach that you can use to invest in either property or shares (and other asset classes). This process makes investing feel a whole lot more secure because its more transparent, you aren't making guesses and you have a lot more confidence that your investments are going to work! Evidenced-based investing refers to the process of adopting a set of rules to guide the implementation of the investment strategies and tactics. The efficacy of these investment rule...
Mar 29, 2018•7 min•Season 1Ep. 15
It stands to reason that not everyone needs a financial plan or relationship with a financial planner. There might be various reasons for this. However, perhaps the best way to answer this question, i.e. “who doesn’t need a financial plan” is to discuss what’s involved in a plan and then you can draw your own conclusions. In this podcast I discuss: • what’s involved in the financial planning process i.e. what outcomes will you enjoy • how to set the two most important goals • how to map out an a...
Mar 20, 2018•7 min•Season 1Ep. 14
If you sell a dud investment property, you may have to pay capital gain tax (CGT), selling costs and then stamp duty again when you reinvest… it can be a very expensive exercise! And if you have owned the property for a while, it is probably putting money in your pocket each month (i.e. more than covering its expenses – not costing you anything) and the CGT could be significant – even more reason to not sell it, right? This is what I would like to investigate in more detail. In particular, how b...
Mar 14, 2018•7 min•Season 1Ep. 13
Mistake # 1: The absence of a methodology – most investors make ad hoc investment decisions. How can you expect to win the game if you have no game-plan? Mistake # 2: Belief that they can make quick profits – too many people thing too short term. Mistake # 3: No patience – invest in quality assets with a quality (proven) methodology and then have the discipline to ride through the volatility. Mistake # 4: Almost no diversification – diversification is by far the biggest single necessary ingredie...
Mar 10, 2018•6 min•Season 1Ep. 12
How you structure your loans can have a large impact on the tax you pay, your risk, your ability to build wealth, your cash flow and your general financial strength. Efficient loan structuring is a commonly overlooked and rarely understood topic but that’s not to say it’s overly complex. Like anything, you don’t know what you don’t know until you know it. Many people tend to carry a reasonable amount of (investment) debt throughout their working life so it’s especially important for you to ensur...
Mar 09, 2018•6 min•Season 1Ep. 11
How you structure your loans can have a large impact on the tax you pay, your risk, your ability to build wealth, your cash flow and your general financial strength. Efficient loan structuring is a commonly overlooked and rarely understood topic but that’s not to say it’s overly complex. Like anything, you don’t know what you don’t know until you know it. Many people tend to carry a reasonable amount of (investment) debt throughout their working life so it’s especially important for you to ensur...
Mar 09, 2018•6 min•Season 1Ep. 10
In my experience, novice investors can talk themselves into believing that an investment exhibits less risk than what it actually does. They think they are investing but in reality, they are closer to speculating than investing. The solution is to understand what evidenced-based investing is and how to use it effectively. This podcast discusses the difference between investing, speculation and business - sometimes they overlap as shown below. For more information, go to the blog page here . http...
Mar 06, 2018•7 min•Season 1Ep. 9
Parents always want their children to have the best education. For some people, that means sending their kids to a private school. Of course, private schooling can be expensive and can have a big impact on your cash flow. But I’d like to suggest that the ‘cost’ is a lot more than the initial cash flow impact which parents should take into account - it can be more than 5 times the actual cash flow cost . And maybe there's a better alternative to consider that ticks both the 'education' and 'wealt...
Feb 28, 2018•5 min•Season 1Ep. 8
In Melbourne, investment-grade apartments have not appreciated in value very much in the past three to five years when compared to houses – as illustrated in this chart https://www.prosolution.com.au/time-to-buy-apartments/ I would like to explore why this might have been the case and share my opinion of whether this performance differential will persist. My new book out in mid-2026: To join the pre-order waitlist and get a bonus. More info go to: https://prosolution.com.au/book-preorder-bonus D...
Feb 20, 2018•6 min•Season 1Ep. 7
When it comes to almost anything you buy, you have to weigh up three considerations: price, service and quality/features. Almost always, you can't have all three - choose the most important two . When it comes to financial advice, I believe that 'quality' is the most important consideration. There are 6 factors that you need to consider that will impact on the 'quality' of the advice you receive. https://www.prosolution.com.au/pursuit-quality-advice/ My new book out in mid-2026: To join the pre-...
Feb 14, 2018•6 min•Season 1Ep. 6
Investment-grade properties should double in value every 7 to 12 years on a perpetual basis. This equates to a 7% to 10% annual compounding growth rate – assuming inflation is in the RBA’s 2% and 3% band. https://www.prosolution.com.au/makes-proprty-investment-grade/ My new book out in mid-2026: To join the pre-order waitlist and get a bonus. More info go to: https://prosolution.com.au/book-preorder-bonus Do you have a question for the podcast? Email us at questions@investopoly.com.au . If you'r...
Feb 12, 2018•5 min•Season 1Ep. 4
What is more important to do first? Contribute into super or buy an investment property? How will investing in property help you fund retirement? What can you do (invest in) to minimise the risk of running out of money in retirement? These questions all relate to your investment strategy.Most of these questions can be answered by acquiring an understanding of a typical investment strategy life cycle. Watch the 8 minute video below and I will take you through the order in which many successful in...
Feb 12, 2018•5 min•Season 1Ep. 3
I believe that very few investing mistakes are the result of random bad luck. Most mistakes are predictable and preventable. And there are some mistakes that are very common amongst novice investors.My belief is that if you can avoid these most common three mistakes then you will have a very high probability of being a very successful investor. https://www.prosolution.com.au/top-3-mistakes-people-make-investing/ My new book out in mid-2026: To join the pre-order waitlist and get a bonus. More in...
Feb 12, 2018•5 min•Season 1Ep. 2
I’m sure you have seen the glossy ads espousing various benefits such as stamp duty savings, rental guarantees, discounts and incentives, state-of-the-art gyms, beautiful kitchen appliances, a concierge and the list goes on. As the title of this blog suggests, I strongly believe that off-the-plan apartments do not make good investments. And I put new-build townhouses and houses in the same boat. I’ll tell you why… https://www.prosolution.com.au/avoid-off-plan-apartments-new-homestownhouses-like-...
Feb 12, 2018•6 min•Season 1Ep. 1
When you compare the Australian market to the US, the difference is frightening. The Australian market is very concentrated (a handful of companies dominate the market), has nearly double exposure to risky ‘ cyclical’ sectors and has almost no exposure to technology. I’m going to suggest (below) that you can solve most of these problems by investing in just two low-cost, index ETF’s to achieve better diversification https://www.prosolution.com.au/share-market-diversification/ My new book out in ...
Feb 11, 2018•5 min•Season 1Ep. 5
