Smart money weekly; Share market rally, investing with confidence, cutting your tax bill, & insured for WFH?

Ben Nash
Hey team,

Happy Monday.

This came up in the news this week and caught my attention; can working from home void my home and contents insurance policy?

As many of you know, I’m all for smart levels of risk and that includes everything to do with insurances to safeguard your future. This article in the ABC unpacked a story about a Victorian family who lost their house in a fire and then had their home insurance voided because they operated a hobby farmgate egg operation from their property.

Since then, more stories have come out of individuals and families having their insurance cancelled because of their home businesses. While the revelations had business owners rattled, those working from home had questions too. The news for those workers is good: if you work from home for an employer, you’re probably safe. But if you have an ABN registered to your address, you might want to contact your insurer or check your policy documents.

When it comes to all forms of insurance, it’s always good to get a sense check on these, ensure that you’re adequately insured and that you’ve safeguarded your family, and your wealth for the long term.

Upcoming events:
Coming up, I’ll unpack exactly how to save money faster – in this economic climate, it’s something worth tuning in for. Don’t leave it to the last minute, click through to register and join live:

Event schedule and links to book here:

Share market wrap
The S&P/ASX 200 closed 0.04 per cent lower on Friday but held on to a gain of 2.8 per cent for the week. The European Central Bank raised interest rates for the first time in 11 years with a half-percentage point increase, as Europe navigates high inflation and slowing economic growth. Jobless claims hit an eight-month high in the United States as more companies announce job cuts as recession fears loom.

Key sharemarket numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 3.19% higher than last Friday at 7,011.80 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 2.03% higher than last week at 3,961.63 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 2.38% higher than last week at 11,834.11 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.77% higher than last week (Friday AEDT) at 7,276.37 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,420.05 for the month, up 27.24% for the month to date

Investment story of the week: Treasury Wine Estates Ltd (ASX: TWE)
While the Treasury Wine Estates Ltd (ASX: TWE) share price has largely remained stagnant for a year, the price of their premium top-shelf wine (Penfolds Grange) has risen to $1,000. Penfolds’ 2016 and 2017 Grange vintages came with a price tag of around $950. Penfolds managing director Tom King has stated that he believes his customers have a strong desire for premium wines, with a shifting perspective to buy less expensive wines than more cheap wines. “We see increasing demand for Penfolds luxury wines in all markets around the world.” Ultimately, this could prove to be a telling point to see how much Wine enthusiasts enjoy the product. We’re seeing luxury markets go from strength to strength so it’s interesting to see how this will fare even in a high inflation environment.

Smart Money upside #79
Because people don’t often talk about the full ins and outs of their money, it’s hard to learn lessons from hearing what good and bad choices other people make. This story is from one of our clients to help you take your money game to the next level.

Individual; early 40’s with income of approximately $130K. Total assets worth $600k. Saving about $2K annually.

Understanding where and how to invest savings that are currently in an offset account. Eager to use the funds to generate larger medium-term goals.

What they wanted from us / the advice process
Education, confidence in a plan, models to illustrate a future based on different decisions, and a better understanding of how to use funds to build wealth.

What success looks like for them
A solid return on investments, on track, to upgrade their home in 2-4 years. Ability to regularly travel and maintain current lifestyle by having confidence in their financial situation.

What money strategy they were following before we went through the planning process

What money strategy they choose to pursue from our planning work
Investing into a diversified investment portfolio, setting up a solid banking structure, building an emergency fund as a safehold, reallocating superannuation to a more cost-effective fund that aligns closer to their goals and risk profile, and setting up an estate plan.

Key benefits of going through the process
Understanding what a good investment is, getting over the fear of paralysis with investments, and a clear plan to get to where I want to go. The modelling showed me what is achievable should I follow certain paths.

Value of advice after all advice fees year one: $7k
Year 20 upside after advice fees: $800k

If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.

Giving update of the week
This week one of our amazing clients had a baby, so we’ve celebrated by helping 100 women in Kenya with desperately needed medical support and childbirth assistance. This is all part of our ongoing commitment to make a difference in the lives of our clients and simultaneously make an impact on our world through our partnership with B1G1 (Buy 1 Give 1). You can check out more information about our giving here.

Money hack of the week: How to know all your money options.
Figuring out what to compromise on your money journey can be challenging, but finding the right person to help can make all the difference. I recently talked to Chris Bates about the intricacies of decision-making when it comes to mortgages and how a mortgage broker can help. Check out our full chat here.

Money mistake of the week:  Not having the confidence to invest.
Hindsight is a wonderful thing, especially when we’re talking about investments. In our chat, Luke Olsen dropped some serious wisdom regarding how our future money goals might be preventing us from maximising our opportunities in the present. Check out our full chat here.

Jargon Buster of the Week: Shares (via Canstar)
A share is a unit of ownership in a company, mutual fund, financial asset or trust. When you own a part of that company, you are entitled to a portion of the profit. This profit is paid out in dividends.

Podcast from last week:  #230 How to cut your tax bill before EOFY
This episode is a recording of a live event I did on ‘how to cut your tax bill’, before the end of the financial year. I talk about the tax system, investment tax, and how it works in Australia. Some of the tax mistakes that cost people money, how to structure your investments, and how to be more tax-effective and not end up with a higher after-tax return which is what I think is important when you invest. And also on how you can work things together into a clear tax plan.

This episode is perfect for anyone that wants to know the tax basics in Australia, tax on investments, how it works, and how to be smarter with your tax.

Helping people with this stuff is our jam, so if you want to chat about how to make your money success easier you can book an intro call with us here.

Be awesome,


I know you’re smarter than someone that would need me to write the words that come next, but our compliance peeps are real hard-asses so here we go… This information is not personal advice, poetry, or a map to where Jimmy Hoffa is buried. It may only be regarded as general advice and shouldn’t be considered something worthy of inclusion for Donna Hay’s next cookbook or the Archibald prize. This is actually just an email communication that has been sent to a bunch of people and doesn’t even have your name on it. Your personal objectives, needs or financial situation have not been considered when preparing this email, but I want you to know that I have spent a lot of time thinking about the Venn diagram intersection of poetry, landscaping, and essential oils – if you’re fascinated by this same phenomenon please reply so we can compare notes. You should consider the appropriateness of any general advice we have given you, regarding your objectives, financial situation and needs, and if necessary, seek advice before acting on it. You should also consider other people when getting on and off public transport, smiling more, eating healthy, and listening to your mum when she tells you that you’ve been working too hard. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Where the information relates to a hilarious joke I’ve made, you should consider belly laughing deeply. Worth noting also that past performance is not a reliable indicator of future performance when it comes to investments, and definitely not when it comes to the Wallabies. Financial services guide. All jokes aside and just to be clear, this information may only be regarded as general advice. Your personal objectives, needs or financial situations were not considered when preparing it.  You should consider the appropriateness of any general advice we have given you, regarding your objectives, financial situation and needs, and if necessary, seek advice before acting on it. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Past performance is not a reliable indicator of future performance.