Investopoly
383 episodes - English - Latest episode: 24 days ago - ★ - 1 ratingEach episode, about 15 minutes long, is packed with concise tips, strategies, research, methodologies, case studies, and ideas to help you safely and effectively grow your wealth. Stuart Wemyss, a qualified financial advisor, accountant, tax agent, and licensed mortgage broker, delivers holistic advice. With four authored books, including "Investopoly" and "Rules of the Lending Game," Stuart shares his insights through a weekly blog, which is replicated on this podcast.
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Episodes
Share market outlook: How to navigate the risks and capture the opportunities
October 24, 2023 20:00 - 12 minutes - 8.34 MBRead the full blog online. Are you prepared to conquer the volatile landscape of share market investing? We'll dissect the intricacies of this exciting yet challenging realm. We'll delve into the art of identifying potent markets through historical data, employ evidence-based methodologies to trim down investment risk, and scrutinise the performance of diverse asset classes over the previous decade. Did you know that a mere 7 stocks on the S&P 500 index account for a quarter of its total va...
Should you invest your super in property with borrowings?
October 17, 2023 20:00 - 17 minutes - 12.4 MBRead the full blog here. Are you ready to untangle the complexities of super investing in property with borrowings? We're going back in time to 2007 when the game changed for self-managed super funds. Once the laws allowed these funds to borrow for investment, it sparked a significant rise in borrowing, culminating to almost $45 billion over a decade. But things have shifted in recent years, with borrowing in super declining. What led to this change? And with new lenders on the scene offer...
ETFs vs. Managed Funds: Which investment vehicle is right for you?
October 10, 2023 20:00 - 13 minutes - 9.52 MBRead the full blog here. Ever wondered how you could smartly diversify your investment portfolio, reduce risk and achieve commendable performance over time? What if I told you the answer lies in Exchange Traded Funds (ETFs)? Today, we're breaking down everything you need to know about ETFs. We'll discuss what an ETF is, the process of investing in one, and the fees that come with it. We'll also introduce you to the key players who ensure ETFs run smoothly, and discuss the risks involved an...
How do rising construction costs impact property investment returns?
October 03, 2023 20:00 - 15 minutes - 10.7 MBRead the full blog here. Ever thought about how rising costs of construction can impact your property investment? Brace yourself for a deep dive into the world of property investment with our expert, Stuart Wemyss. With a keen focus on construction costs, we unravel the layers of how a 5.3% p.a. increase from 1966 to 2023 can influence the building value of your property. Together, we'll decipher how these escalating costs are balanced against inevitable factors like depreciation and maint...
Fundamentals series #5: A simple way to manage cash flow and still enjoy the things that give you pleasure
September 26, 2023 21:00 - 10 minutes - 6.99 MBWatch the presentation on YouTube here. Imagine a world where you have full control over your finances, where every dollar spent contributes to your joy and standard of living. This is not a dream with no basis in reality; it's completely achievable with an understanding of effective cash flow management. I'm Stuart Weems, here to guide you through this crucial financial maze. This episode uncovers the secrets of eliminating unconscious spending, enhancing your enjoyment per dollar, and the...
Fundamentals series #4: A simple, low-cost, proven approach to investing in the share market
September 19, 2023 21:00 - 12 minutes - 8.59 MBWatch the presentation on YouTube here. Curious about how to navigate the seemingly complicated world of share market investing? Join me, Stuart Weems, as I unravel the key principles of investing and illustrate why you don't need to be a Wall Street expert to grow your wealth. Together, we'll explore the merits of a hands-off investment approach, the beauty of regular income streams, and the freedom of liquid investments. We'll also delve into the potential flipside - the volatility that c...
Fundamentals series #3: How much super do you need to retire comfortable? And how to maximise your balance
September 12, 2023 21:00 - 11 minutes - 7.95 MBWatch the presentation on YouTube here. Link to the table regarding how long super will last. Are you feeling overwhelmed by the complexities of superannuation and its impact on your retirement planning? Fear not! We’re here to break down these financial intricacies, equipping you with the knowledge to retire comfortably. In this dialogue, we address the pressing concerns about fluctuating super rules and government control. We dissect the restrictions on contributions, including the nitt...
Fundamentals series #2: How to invest in property explained in 4 simple charts
September 05, 2023 21:00 - 12 minutes - 8.72 MBWatch the presentation on YouTube here. Ever wonder why property investing is such a profitable avenue? It's not just the properties themselves, but the power of leveraging that plays a crucial role. Welcome to an enlightening exploration where I, Stuart Wemyss, peel back the curtain on the ins and outs of property investing. I'll be chatting about key insights like the importance of growth over income and the long-term benefits of holding onto your property investments. In the first part ...
Fundamentals series #1: Navigating Taxes: Deductions, Gains, and Saving Tax
August 29, 2023 21:00 - 14 minutes - 9.66 MBWatch the presentation on YouTube here. Ready to level up your tax knowledge? This episode promises to make you rethink everything you thought you knew about taxes. We're breaking down complex tax concepts and deductions, from understanding ordinary and statutory income to exploring work-related expenses and super contributions. We're paving the way for you to keep more of your hard-earned money in your pocket, demonstrating how to maximize deductions and create a direct connection between...
Would a third super fund help you retire early (before age 60)?
August 22, 2023 21:00 - 14 minutes - 9.91 MBCan you imagine opening a third super fund, enabling you to accumulate assets outside of your retirement fund and plan for reduced taxes? What if you learned that you could retire earlier or cut down on work hours without stressing over super balance? Join me in this captivating discussion as we unlock financial planning strategies that propel you towards an early retirement. We'll unravel the power of a third superfund, and I promise you, it's a game-changer! Furthermore, we shed light on t...
Is Perth the next property market to explode?
August 15, 2023 21:00 - 13 minutes - 9.11 MBClick here to read the full blog. Ever wondered why Perth’s property market remains stagnant despite booming markets elsewhere in Australia? Could Perth, in contradiction of its recent performance, soon be the next growth market? Prepare to have your assumptions challenged as we look at the current state of Perth's property market in a fresh light. Leverage insights from the Real Estate Institute of Australia and explore intriguing historical growth patterns which point to a potential surg...
What is the priority: repaying your home loan or investing?
August 08, 2023 21:00 - 15 minutes - 10.9 MBRead the full blog here. What would you do if you had the opportunity to revolutionise your financial future? Join us as we navigate the complex world of investing and debt reduction, providing you with strategies and insights to build your wealth. This episode explores the importance of financial buffers, the power of reducing debts before retirement, and understanding how your cash flow responds to interest rate changes. We guarantee you'll walk away with a new perspective on managing yo...
Which industry super fund do I recommend? Review of returns for 2022/23
August 01, 2023 21:00 - 18 minutes - 12.6 MBRead full blog here. Do you ever ponder the enigma of superannuation returns and how they're impacted by elements such as increasing interest rates and shifting work dynamics? We promise you an enlightening exploration that would shed light on these queries. We chat about the performance of different industry funds during the 2022-23 financial year, despite the tumultuous times, and how they managed to finish above average. We pull back the curtain on the top 8 industry funds, pinpointing t...
Know when to hold 'em, or when to fold 'em
July 26, 2023 06:00 - 13 minutes - 9.53 MBReady to unlock the secret to successful investing that many overlook? This episode promises to reveal the power of patience in building a solid financial future. Inspired by the wisdom of Charlie Munger, Warren Buffet's long-term business partner, we'll explore how discipline and patience can yield incredible investment returns. Unpredictability is part and parcel of the short-term investment game, but when you're in for the long haul, returns become more stable. To illustrate, we'll walk y...
Laying the Foundation for Wealth: A Guide to Successful Investing
July 18, 2023 21:00 - 13 minutes - 9.34 MBRead the full blog here. Are you ready to uncover the secrets of successful investing? I promise, this episode will equip you with the essential knowledge and strategies needed to lay a solid foundation for wealth-building. As your host, Stuart Wemyss, we'll be tackling the pivotal first steps in this wealth-creation journey. Drawing inspiration from Stephen Covey, we'll explore the necessity of having a clear goal, understanding the significance of wealth accumulation, and how it can radi...
Should you invest or repay your home loan? A long-term perspective...
July 11, 2023 21:00 - 11 minutes - 7.95 MBRead the full blog here. Are you ready to challenge conventional wisdom about investing and home loan repayment strategies when interest rates are on the rise? I share why it's essential to rethink your investment tactics in the face of increasing interest rates. We will compare after-tax returns from both scenarios - investing in growth assets or focusing on home loan repayment. By the end of the episode, you'll have a clear understanding of the significance of compounding returns and how...
Decoding Homeownership: Financial Implications of Renting vs Owning, Tax Exemptions, and More
July 04, 2023 21:00 - 17 minutes - 12 MBRead the full blog here. Ever thought about the financial impacts of owning a home versus renting? We'll be tackling this head-on today. I'm Stuart Wemyss, your guide through this financial labyrinth, and I'm going to clear up some key misconceptions around capital gains tax exemptions and how they can still apply even when renting out your property. We'll decode the six-year rule and its effects on your exemption. Plus, I'll break down the difference between land tax and capital gains tax...
Surviving the high interest rates: tips to navigate the next few months
June 27, 2023 21:00 - 15 minutes - 10.6 MBRead the full blog here. How long can we expect the current high interest rates to stick around, and what can we do to navigate this challenging financial climate? I share my insights and tips on managing debt and restructuring loans to soften the blow of rising rates, while also taking a look back at interest rates over the past 40 years to make sense of the current situation. As we explore the impact of these higher rates on consumer spending, I also discuss how Australians have been ...
Borrowing capacity isn’t enough to invest in property? What to do…
June 20, 2023 21:00 - 21 minutes - 14.5 MBRead the full blog here. What if your borrowing capacity isn't enough to allow you to invest in a high-quality property? Should you reduce your budget or consider investing in shares? Discover the similarities and differences between property and share investments, as well as the benefits of borrowing to invest. Gain valuable insights on investing in the share market, the significance of timing, and the necessity of financial advice when investing large sums of money over extended perio...
Navigating Stubborn Inflation: Risks, strategies, and portfolio construction for a possible decade of rising prices
June 13, 2023 21:00 - 18 minutes - 12.4 MBClick here to read the blog online. What if inflation remains stubbornly high for over a decade? Today, I explore the potential risks of increased inflation and interest rates, based on compelling research by US firm Research Affiliates. We delve into the historical behavour of inflation since 1970 and discuss the significant impact of low interest rates and quantitative easing on the current inflation scenario. Join me as I examine the ripple effects of higher interest rates on borrowers...
How much money should you give away now?
June 06, 2023 21:00 - 15 minutes - 10.6 MBSome people plan to give money to beneficiaries (typically children and/or charities) before they pass away, especially if they consider they have more than enough money i.e., surplus wealth. Often, their thesis is that their kids can make good use of the money now, whilst they are younger, rather than waiting another couple of decades. By that time, they’ll probably already be financially established. I discuss what you must consider before making an early inherence. Inheritance tsunami...
Does household income drive property prices?
May 30, 2023 21:00 - 11 minutes - 8.2 MBCommentators often refer to the price of property relative to household incomes. For example, it is estimated that property in Melbourne and Sydney now costs more than 10 times the median household income. But is this really a meaningful measure because if it is, property cannot continue to grow at a faster rate than incomes (a point often made). If prices continue to rise faster than income, how will property be affordable? At the beginning of this year, I wrote about the factors that ...
The news is mostly bad for commercial property investors
May 23, 2023 21:00 - 17 minutes - 12 MBAll investment asset classes move in cycles. Investment returns are almost never linear. As such, investors must expect good and bad periods, which is why patience and discipline are big contributors to an investor’s success. I suspect that commercial property investors’ patience and discipline are about to be tested. This asset class is facing a lot of challenges. However, as they say, every cloud has a silver lining so there could be good investment opportunities over the coming months a...
What is more tax-effective, investing in property or shares?
May 16, 2023 21:00 - 16 minutes - 11.6 MBMany people are attracted to borrowing to invest in property because of negative gearing tax benefits. That is, the (income) loss that an investment property generates helps reduce the amount of tax you pay on your salary or business income. However, investing in shares also offers unique tax advantages. I thought it would be interesting to quantify and compare the taxation outcomes of these two investment options. Taxation of share market investments Investing in shares can result i...
Tips on how to maximise your borrowing capacity
May 09, 2023 14:00 - 16 minutes - 11.4 MBBorrowing capacity has reduced by around 30% over the past year due to the impact of higher interest rates and the increased 3% interest rate buffer that banks must use to calculate your borrowing capacity. This was eloquently depicted in this chart by CBA in February 2023. I wanted to explore the common strategies that people can use to safely maximise their borrowing capacity. How to borrow safely I’ve written several times that building wealth is a marathon not a sprint. Whilst it is...
Will Melbourne’s median house price exceed $2m by 2033?
May 02, 2023 21:00 - 16 minutes - 11.6 MBThe unrefuted trend in all investment markets is mean reversion. It means that a period of below average returns is always followed by a period of above average returns. It is my thesis that investment-grade property in Melbourne looks attractive compared to other markets and that there are several economic tailwinds that may result in the median house prices doubling over the next decade. The macro environment is positive for property In short, property prices are driven by the law of su...
My investment philosophy is based on 4 principals. What is your investment philosophy?
April 25, 2023 21:00 - 12 minutes - 8.66 MBI was listening to Morgan Housel’s new podcast recently (which I highly recommend by the way), and he said something along the lines of; once you define your investment philosophy, you won’t be distracted by any noise that doesn’t align with it. It really resonated with me. Success with investing is more about avoiding mistakes than anything else. Therefore, having a clear, well-defined (evidence-based) investment philosophy will help you avoid getting distracted by any unhelpful ‘noise’...
The typical life cycle of an investor
April 18, 2023 21:00 - 18 minutes - 12.8 MBMost people struggle with knowing how to invest their money. Do they upgrade their home, contribute more into super, buy an investment property, invest in the share market, or something else? In fact, this common challenge was the reason that I decided to write my book, Investopoly. I knew that if people understood the fundamental financial planning concepts (i.e., the 8 rules outlined in Investopoly), they might be able to figure out the answer themselves. Whilst everyone’s situation is...
Property investors need to be fussier! Here's why...
April 11, 2023 21:00 - 16 minutes - 11.3 MBEvery few months, there’s a story online about an investor in their 30’s that has amassed a property portfolio of 12 properties…and how you can do it too. Firstly, we shouldn’t be impressed by the number of properties that someone owns, as it doesn’t tell us anything about their wealth (equity). Boasting about the number of properties you own is like a business boasting about the number of employees it has. It’s often an ego trip. Secondly, there’s nothing impressive about borrowing huge...
Are index funds still outperforming?
April 04, 2023 21:00 - 18 minutes - 12.5 MBEverything you must know before you refinance: https://www.prosolution.com.au/ebook/ =================== Share markets have been highly volatile over the past couple of years. Markets fell by circa 30% when Covid hit in March 2020 and then proceeded to boom until the end of 2021, fuelled by government stimulus and zero interest rates. However, markets fell by circa 20% in 2022 after central banks aggressively hiked rates. It’s been a wild ride. Arguably, these large volatility events shoul...
How to buy the highest quality property within your budget
March 28, 2023 20:00 - 24 minutes - 17 MBTypically, you need a budget of circa $1.5 million to purchase an investment grade house (investment property) in Melbourne, less in Brisbane, and a lot more than $1.5 million in Sydney. Of course, not everyone can afford this budget, so I wanted to discuss how to buy the highest quality property possible within your budget. This blog will still be useful even if you do have a budget of $1.5+ million, as it will help you understand what “investment-grade” property means. What makes a pro...
A recession in the US will crash stock markets! What to do before that happens
March 21, 2023 20:00 - 19 minutes - 13.3 MBeBook Download: https://www.prosolution.com.au/ebook/ We are all aware that central banks around the world have been hiking interest rates to reduce inflation back to normal levels. The US economy, and particularly the labour market, have been more resilient than most expected. This means the US central bank might have to hike interest rates higher than in other jurisdictions to tame inflation. A consequence of this is that it will probably send the US economy into recession. And if history...
Why don't my accountant and financial advisor work together?
March 14, 2023 20:00 - 12 minutes - 8.76 MBEnsuring your accountant collaborates with your financial advisor is important, as they will be able to discuss and workshop ideas to improve your financial position. However, in my 20+ years of experience, this collaboration almost never occurs, unless they work in the same firm. Theoretically, there shouldn’t be any impediments to these two professionals working together. Practically, it doesn’t happen and depending on the complexity of your situation, it could be costing you. Accounta...
Private school fees: the true cost and alternatives
March 07, 2023 20:00 - 13 minutes - 9.32 MBIt is stating the obvious that private school education is expensive. If you are uncertain whether you would like to send your kids to a private school, I thought it would be interesting to consider some alternatives and put the costs into perspective. The public versus private school decision is a very personal one influenced by many considerations, including financial. I acknowledge that many factors may be more important than financial consideration. However, in this blog I would like t...
Rent crisis, property prices, borrowing capacity and fundamentals – how will it affect you?
February 28, 2023 20:00 - 22 minutes - 15.7 MBIt has certainly been a wild ride for property investors over the past 6 years. In 2017 and 2018, the banking regulator demanded banks reduce the volume of interest only loans, particularly to investors. The media called this the “interest only cliff” and predicted that many borrowers would face financial stress when loan repayments switched to principal and interest resulting is higher arrears and default rates. It didn’t. Then in 2018-2019, Bill Shorten (you will recall that everyone w...
It’s all about gearing, not property. Without gearing, shares are better.
February 21, 2023 20:00 - 14 minutes - 10.1 MBIt is often debated which is a better investment, property or shares. It is my thesis that property is an okay investment, but not as good as shares. However, when you factor in gearing (the ability to borrow to invest), property becomes a wonderful investment – better than shares. Property versus shares The main advantages of shares (compared to property) include: § You can outsource the management of a share portfolio to an advisor. However, as a property investor, you may need to sp...
Why value investing will deliver higher returns with lower risk
February 14, 2023 20:00 - 16 minutes - 11.6 MBI’m a big advocate of value investing. If you buy high a quality investment for fair price and hold it for the long run, you can’t help but make a lot of money. But if you can buy the same quality asset cheaply (below its intrinsic value), then it’s likely that you will make even more money. This is what value investors attempt to do. You can adopt a value investing approach with many asset classes, which I’ll discuss later. However, for most of this blog, I’ll use shares as an example be...
What to do if your fixed rate or interest only term is due to expire in 2023
February 07, 2023 20:00 - 18 minutes - 12.8 MBIt has been very well reported that many mortgage holders will soon be paying much higher interest rates when their fixed rate terms expire. It is estimated that $478 billion worth of fixed rate mortgages are due to expire in 2023. In addition, borrowers may also have to navigate the end of an interest only term, which typically apply to investment loans. This blog sets out our advice on how to navigate these changes. What are your options? Fixed rate expiry If your fixed rate is ...
Getting into the property market is easier today than 30+ years ago
January 31, 2023 20:00 - 26 minutes - 18.3 MBIt is often suggested that it’s a lot more difficult for people to buy their first property compared to many decades ago. It is true that property is a lot more expensive. However, I would like to suggest that in many respects, buying a property today is easier than it was many decades ago. I would like to start by highlighting the main advantages that property buyers enjoy today compared to many decades ago. I’ll address the affordability issues once I’ve done that. Abundant access to i...
Your most important financial step for 2023
January 24, 2023 20:00 - 14 minutes - 9.82 MBGood cash flow management is by far the most important practice that you must master to be successful at building wealth. I realise that it’s not a particularly popular topic, but bear with me, because it’s an easy thing to master if you know how. It won’t take you much time, and you will feel more empowered and in control as a result. You can’t expect to build wealth if you spend all your income Investment returns alone won’t help you build wealth, unless you already have a large invest...
Where you should have invested in 2022?
January 17, 2023 20:00 - 16 minutes - 11.3 MBIn 1905, George Santayana wrote; “Those who cannot remember the past are condemned to repeat it.” That’s why it is always worthwhile to reflect on the past year to identify any lessons that we can learn. Below I share the investment lessons that I believe last year taught us. Review of markets in 2022 Firstly, let’s review what returns various asset classes generated in the 2022 calendar year. The US market lost around 20%. However, if you were an Australian investor (unhedged) you wou...
Best of 2022: Three steps to develop your own financial strategy
January 10, 2023 20:00 - 22 minutes - 15.2 MBThis was the third most popular podcast episode in 2022. My aim for this topic was to give investors an insight into the strategic process that I follow to develop a holistic, long-term financial plan for my clients. The topic obviously resonated with people. I hope you enjoy it and here’s a link to the blog in case you want to read it (instead of listing to the podcast). ASK ME A QUESTION ON YOUTUBE: https://www.youtube.com/watch?v=ACnxmEP8vv8 My YouTube channel: https://youtube.com/@inv...
Best of 2022: Consistency is the key to building wealth
January 03, 2023 20:00 - 15 minutes - 11 MBThis was the second most popular podcast episode in 2022. My aim for this topic was to educate investors about the fact that investing a little bit each week, fortnight or month is much better than investing on an ad hoc basis. You may have seen the idea that improving something by 1% each day for one year results in a 37x improvement – small, regular improvements create massive results over the long run. The topic obviously resonated with people. I hope you enjoy it and here’s a link to the...
Best of 2022: 7 key economic principles you must know
December 27, 2022 20:00 - 19 minutes - 13.4 MBThis was the most popular podcast episode in 2022. The idea behind this topic was to share some basic economic principals to help people understand economic commentary, political rhetoric and so on. The topic obviously resonated with people. I hope you enjoy it and here’s a link to the blog in case you want to read it (instead of listing to the podcast). ASK ME A QUESTION ON YOUTUBE: https://www.youtube.com/watch?v=ACnxmEP8vv8 My YouTube channel: https://youtube.com/@investopolypodcast I...
Brace for a big drop in consumer spending in 2023
December 13, 2022 20:00 - 12 minutes - 8.41 MBAs you are aware, the RBA has aggressively hiked rates by 3% p.a. over the past 8 months, so variable home loan rates are now more than 5% p.a. (and investment loans approaching 6% p.a.). Fixed rate borrowers have avoided these higher interest rates. However, a lot of fixed rates will begin expiring next year. As such, many borrowers are facing much higher (40%+) mortgage repayments next year. These higher interest rates will have a huge impact on consumer discretionary spending and econom...
Should you invest in gold?
December 06, 2022 20:00 - 12 minutes - 8.7 MBI was interested to watch this YouTube video produced by ETF manager, BetaShares which compared the differing views of Warren Buffett and billionaire fund manager, Ray Dalio. Both men have been some of the most successful investors over the past 50+ years, yet they have opposing views regarding investing in gold, which I find very interesting. How well has gold done? As depicted in the chart below, the (USD) gold price has appreciated by 7.66% p.a. since 1970. However, between 1980 and...
Are there major changes to super on the horizon?
November 29, 2022 20:00 - 17 minutes - 11.8 MBThe Albanese government’s first Federal Budget last month was a bit of a fizzer in that there wasn’t much in the way of changes that affected investors and superannuants. However, subsequent murmurs by politicians’ hint at proposed changes that the government may be contemplating. In particular, I wanted to address these potential super changes and how they may impact you. Higher super contribution taxes for higher earners In 2011, the Gillard government introduced a higher rate of tax ...
Why I think property prices have bottomed
November 22, 2022 20:00 - 17 minutes - 12.1 MBCoreLogic data indicates that property prices in the 5 largest capital cities have fallen by 7.1% since May, when the RBA started hiking interest rates. Sydney has seen the largest price fall – down by around 10%, and Melbourne has fallen by 6.7%. But it’s not all bad news. House prices in Brisbane, Adelaide, and Perth are still materially higher than they were a year ago. I wrote a blog in March in response to fund manager, Christopher Joye’s prediction that property prices would fall 1...
Governments vested interest in maintaining property price growth
November 15, 2022 20:00 - 18 minutes - 12.6 MBThere are many large and powerful institutions that have a vested interest in rising property prices. But all levels of government (i.e., federal, state and local) probably have the most to gain, as I’ll explain in this blog. This leads to two important observations. Firstly, the government is the main contributor to housing affordability pressures i.e., making housing less affordable. Secondly, government tax revenues are dependent upon rising prices and demand for property. I don’t wan...
Retirement might not be as enjoyable as you expect unless...
November 08, 2022 20:00 - 15 minutes - 10.4 MBI recently appeared as a guest on The Australian newspaper’s Money Café podcast, where we discussed the FIRE moment. The acronym stands for Financially Independent, Retire Early, which involves living as frugally as possible, investing as much as possible so that you can afford to retire as soon as possible. A listener that works in the mental health sector wrote into the show to say that she would actively discourage people from retiring early. Instead, perhaps work less, she suggested. S...