Jacqueline Barton

Setting Financial Goals for the Year Ahead: A Practical Guide

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The start of a new year is the perfect time to reflect on your financial journey and set clear, actionable goals. Whether you’re aiming to pay down debt, boost savings, or plan for major life milestones, intentional goal-setting can help you stay focused and confident throughout the year. Goals give your money a purpose.

Without them, it’s easy to fall into reactive spending or miss opportunities to build wealth. A written plan helps you stay disciplined, track progress, and make informed decisions—even during market volatility.

1. Start with a Financial Health Check

Before setting new goals, review your current position:

  • Income and expenses: Where is your money going each month?
  • Assets and liabilities: What do you own and owe?
  • Savings and debt: Are you on track with emergency funds and repayment plans?

This baseline helps you identify gaps and prioritise goals that matter most.

2. Use the SMART Framework

The most effective goals are Specific, Measurable, Achievable, Relevant, and Time-bound:

  • Instead of “save more,” say: “Save $5,000 for a home deposit by December 31.”
  • Break big goals into smaller milestones (e.g., $500 per month).

SMART goals turn vague intentions into actionable steps.

3. Prioritise Your Goals

Rank your goals by importance:

  • Short-term: Build an emergency fund, pay off high-interest debt.
  • Medium-term: Save for a holiday, home deposit, or education.
  • Long-term: Retirement planning, wealth building, estate planning.

4. Create a Budget That Works

Your budget is the backbone of your financial plan. Use the 50/30/20 rule as a starting point:

  • 50% essentials (housing, bills)
  • 30% discretionary (entertainment, dining)
  • 20% savings and debt repayment

Adjust these percentages based on your priorities for the year ahead.

5. Automate and Track Progress

Set up automatic transfers to savings or investment accounts and schedule bill payments. Use budgeting apps or spreadsheets to monitor progress and celebrate small wins. Regular check-ins keep you accountable and allow for adjustments when life changes.

6. Align Goals with Your Values

Financial planning isn’t just about numbers—it’s about what matters most to you. Whether it’s homeownership, travel, or charitable giving, aligning goals with your values makes them easier to stick to.

Setting financial goals for the year ahead is more than a resolution—it’s a roadmap to financial confidence and freedom. Start today, stay consistent, and watch your goals turn into real results.

Simple ways to Spring Clean your Finances

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Spring is the perfect time to refresh not only your home but also your financial life. Just like decluttering your wardrobe, tidying up your finances can help you feel more organised, reduce stress, and set you up for success for the rest of the year.

Here are some practical steps to get started:

1. Review Your Budget

Your budget is the foundation of financial health. Take a close look at your income and expenses:

  • Identify areas where spending has crept up.
  • Cancel unused subscriptions and memberships.
  • Apply the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings.

2. Check Your Credit Report

Errors on your credit report can hurt your score. Review your report for inaccuracies and dispute any mistakes.

3. Declutter Your Debt

If you have multiple loans or credit cards, consider consolidating them into a single payment with a lower interest rate. This simplifies your finances and can save money on interest

4. Boost Your Savings

Revisit your savings goals and automate transfers to a high-yield savings account. Aim to build or replenish your emergency fund to cover 3–6 months of expenses

5. Organise Financial Documents

Go paperless where possible to reduce clutter and make tracking easier. Store important documents securely, whether digitally or in a locked filing system.

6. Shop Around for Better Deals

Review your insurance, utilities, and subscriptions. Switching providers or negotiating rates can lead to significant savings over time

7. Revisit Your Financial Goals

Life changes, and so should your goals. Whether it’s saving for a holiday, paying off debt, or investing for retirement, update your plan to reflect your current priorities.

A financial spring clean isn’t just about tidying up; it’s about creating clarity and confidence.

By taking these steps, you’ll reduce stress, uncover hidden savings, and set yourself up for a stronger financial future.

Marriage and Money: Merging Finances Successfully

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Money is one of the most common sources of stress in relationships, but it doesn’t have to be. When couples approach financial integration with transparency and teamwork, they can build a strong foundation for both their marriage and their future.

Here are some simple ways to merge your finances successfully.

1. Start with Honest Conversations

Before combining accounts, talk openly about your financial histories—income, debts, credit scores, and spending habits. Transparency builds trust and helps avoid surprises later.

2. Define Shared Goals

Agree on what matters most: buying a home, saving for retirement, or planning for children. Shared goals give your financial decisions purpose and direction.

3. Choose the Right Structure

There’s no one-size-fits-all approach. Options include:

  • Joint accounts for simplicity.
  • Separate accounts for independence.
  • Hybrid approach combining both.

Pick what feels fair and practical for your relationship.

4. Create a Joint Budget

List combined income, essential expenses, and savings targets. Use apps or spreadsheets to track progress and adjust as needed. A clear budget reduces stress and keeps both partners accountable.

5. Tackle Debt Together

Be upfront about existing debts and agree on a repayment plan. Consider strategies like debt snowball or consolidation to simplify payments.

6. Set Spending Boundaries

Agree on limits for discretionary spending and when to consult each other for big purchases. This helps maintain independence while avoiding conflict

7. Schedule Regular Check-Ins

Money conversations shouldn’t be one-off. Set monthly or quarterly check-ins to track progress, adjust goals, and keep communication open.

8. Seek Professional Advice if Needed

If merging finances feels overwhelming, a financial adviser can help create a plan tailored to your goals and circumstances.

Combining finances isn’t just about numbers, it’s about building trust, reducing stress, and working toward a shared vision. Done right, it strengthens both your financial health and your relationship.

Economic update: November 2025

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In this month’s update, we provide a snapshot of economic occurrences both nationally and from around the globe.

Key points:

  • US Fed still in interest rate-cutting mode
  • Trump claims a good deal with China over tariffs and supply of rare earth minerals
  • US September quarter reporting season showing resilience in corporate earnings
  • RBA now thought to be on hold until well into 2026 due to strength in inflation

We hope you find this month’s Economic Update as informative as always. If you have any feedback or would like to discuss any aspect of this report, please contact your Financial Adviser.

The big picture

After more than six months of extreme uncertainty over President Trump’s trade and monetary policy settings, clarity is beginning to emerge.

The US Federal Reserve (“Fed”) is well into an interest rate cutting cycle that should take the Fed funds rate down to around 3% over the next 12 months or so. It might take interest rates even lower depending on who

Trump replaces current Fed chair Jerome Powell with come the end of his term in May 2026.

The RBA too seemed to be on track to return rates to a neutral setting. Recent labour force statistics seemed to have convinced the RBA that it needs to focus more on the full employment target of its twin mandate. But then an ‘unexpected’ CPI inflation reading created confusion.

The aberrant Australian CPI number was due to an ABS ‘fudge calculation’ that produced an electricity-price inflation estimate out of government flat subsidies for the year of 33.9%. The ABS noted the estimate would have been 4.8% without the correction for the energy subsidies. There is no generally accepted way of converting a fixed per household subsidy into a modified price index.

There is no doubt that the CPI read would have been within the 2-3% target range without the ABS’ meddling with the energy index data. The difference between 33.9% and 4.8% for electricity price inflation is huge.

The US import tariff policy seems to be settling down. Trump claims he has even cut a deal with China that will bring the tariffs down to a more reasonable level. US inflation is about one percent higher because of tariffs and the tariff effect will dissipate as the imposition of a tariff is a ‘one off’ that will pass with time.

Stock markets should continue to feed off ‘cheaper money’ resulting from lower interest rates for a few months or more. A problem might start to arise from the middle of next year if it transpires that central banks eased interest rates too much. Cheap money could provide support for stock markets for the first half of 2026 – while bond yields start to become relatively less attractive. What then follows depends upon how central banks react.

Most official US macro-economic data was not produced during October because of the government shutdown. US debt has just surpassed $US 38Trillion and raising the debt ceiling to accommodate payments for government and military wages is becoming increasingly contentious.

Republicans have offered to push back the funding limits but that would lock in the reduced health benefits brought in under the ‘Big Beautiful Bill’ (“BBB”). The Democrats have been insisting on increasing the debt limits to accommodate restoring health benefits – at least to pre-BBB levels.

These stand-offs over debt limits occur frequently. Usually, they are settled before too much damage is done.

But this is now the longest shutdown in recent history.

While Trump was reflecting in ‘the success’ of his meeting with China’s president Xi in South Korea, the China delegation did not attempt to corroborate Trump’s interpretation of the meeting for the Western media.

The ‘rare earth’ minerals trade between China and the US was meant to have been resolved many months ago at the Switzerland meeting – but here we are. Trump is saying that he just negotiated a 12-month deal that will be renewed each year.

Trump also did a $US8.5 bn ‘critical minerals’ deal with Australia. Lots of partial solutions to the trade impasse have been floated but the time taken to build mining infrastructure and processing plants could be as much as 10 years. Moreover, the known pollution problems from processing are not easily resolved – which is largely why China holds the whip-hand as it does the vast bulk of the processing of these minerals.

Trump has cut some proposed tariffs because of the progress China has made with fentanyl distribution.

Except for a petulant additional 10% tariff levlevied on Canada because Trump didn’t like an advertisement Canada aired, tariff negotiations have been settling down. The Canada advert showed President Reagan’s objections to tariffs in general. In addition, the US Supreme Court is due to rule on whether Trump’s broad- brush executive orders that imposed the tariffs are legal.

China’s economic data were mixed in October but there were some promising signs. GDP for the September quarter came in at 4.8% which was below the previous 5.3% for the June quarter. However, retail sales came in on expectations at 3% and industrial output at 6.5% easily beat the 5% expectation. Exports were up 8.3% (against a forecast of 6.3%) and imports were up 7.4% (against a forecast of 1.5%).

Here in Australia, our labour force data did not seem too bad. The unemployment rate jumped two notches to 4.5% but the RBA governor pronounced that the difference could be due to randomness. What is not random is the relentless upward trend from 3.4% in October 2022 to 4.5% now. Given the dominance of government employment in this market, a climb from 3.4% to 4.5% is a concern.

Total employment rose by 14,900 over the month – or 1.3% for the year. Given population growth, 1.3% is not a strong result but nor is it a sign of an imminent collapse.

Investment prospects for the remainder of 2025 are quite strong. The US September quarter company reporting season has produced many stellar results with well over 80% of companies on Wall Street beating expectations.

A lot of strength in the US market is due to the Artificial Intelligence (AI) boom – particularly to do with building data centres in the US and around the globe. Jason Thurman, a Harvard professor and a one-time senior adviser in the Trump administration, has calculated that economic growth in the US without the data-centre boom would have been 0.1% in the first half of 2025 – rather than the published 1.6%. Since many of the estimates for data-centre investment are yet to be realised, questions can be raised about how strong the underlying US economy really is.

The AI investment boom has been further complicated by what seems to be a circular process. Companies are booking trades to other companies which, in turn, are booked back to the original companies.

We do not subscribe to there currently being an AI bubble however, that does mean that it does not become one. We believe the AI theme is still in its infancy but that does not mean that the price of shares in AI companies cannot get ahead of earnings and profits and lead to a correction for these stocks and potentially the market in general. We note lots of mega cap tech companies are producing output with associated revenues and profits. The dotcom bubble of 1999 – 2000 was based on companies listing on the stock market with no more than a mere idea of what they might produce.

Asset classes

Australian equities

The ASX 200 reached another all-time high in October – at 9,095. The gains over the month were modest at+0.4%. The resources sector – Energy (+3.7%) and Materials (+4.3%) – led the way. Consumer Discretionary (-6.9%), Health (-4.8%) and IT (-8.4%) delivered poorer returns.

International equities

The S&P 500 posted its sixth consecutive month of gains in October and included a new all-time high. At +2.3% for the month and +16.3% for the year, the gains have led some to believe that the market is heavily over-priced.

However, earnings expectations have been improving – particularly in the ‘mag 7’ stocks. Monetary policy has shifted towards easing, which is supportive of continued gains on Wall Street. Japan’s Nikkei recorded a gain of +16.6% in October, part of which has been attributed to Sanae Takaichi having been sworn in as first female prime minister. The Nikkei has posted gains of +31.4% over the year-to-date.

The UK’s FTSE (+18.9%), German DAX (+18.9%), China’s Shanghai Composite (+18.0%) and Emerging Markets (+28.4%) all gained substantially over 2025 albeit with more modest gains in October compared to the Nikkei.

Bonds and interest rates

The Fed cut the Fed funds rate by 0.25% (25 basis points) to a range 3.75% to 4.0%. Before the meeting, interest rate cuts in the October and December meetings were priced in as almost certain. Powell poured cold water on the prospect of an interest rate cut at the December meeting, but he did not rule it out. The odds of a December cut now stand at 62%.

The Bank of Canada also cut by 0.25% but to 2.25%. The Bank of Japan and the European Central Bank (ECB) were both ‘on hold’. The RBNZ cut its rate by 50 bps. An interest rate cut by the RBA on Melbourne Cup Day appeared to be almost certain until the recent CPI inflation data were released. The odds of a November cut fell sharply to 7%. We believe that the RBA has misinterpreted the unemployment and CPI data and an interest rate cut is appropriate given the outlook.

Othere assets

Brent Crude (-2.9%) and West Texas Intermediate (WTI) (-2.2%) oil prices were down moderately in October. The price of gold fell -8.4% from an all-time peak at the end of October but still gained +3.8% over the month. The price of gold is up 51.6% over the year-to-date. The price of copper (+6.6%) grew strongly in October. The price of iron ore gained +3.8% over the month. The US S&P500 VIX ‘fear’ index finished October just above normal levels at 17.4. The Australian dollar was down -0.8% against the greenback in October.

Regional review

Australia

The Treasurer has finally walked back from imposing a capital gains tax on unrealised profits in superannuation. Most commentators believed that taxing unrealised gains is fraught with all sorts of unintended consequences. Simply increasing the tax take on superannuation is less contentious. The Australian jobs market remains weak, but it is not seemingly heading towards a recession. The growth in part-time employment following the pandemic has stabilised. However, growth in employment at 1.3% is not sufficient to match population growth.

China

China has played a very strong opposition to Trump’s trade tariff policies. It stopped importing soybeans from the US – now sourcing its demand from Brazil and Argentina instead.

China also brought in export licence controls for its rare earth sector. Processed rare earths play a central role in building advanced goods such as magnets in Electric Vehicles (EV), aircraft, and defence equipment. Since China holds a significant monopoly in rare earths and their processing, it could be said that it was holding the US and the rest of the world to ransom in relation to their availability.

At the end of October, Trump announced that exports of rare earths will flow again but with annual updates on licencing. Trump also stated that China will import US soybeans again. China has not yet confirmed any of these conditions.

China’s economy is in a state of flux as it tries to accommodate the impact of US import tariffs. After a promising improvement over several months in the Purchasing Managers’ Index, the October read slipped back to 49.0 when 49.8 had been expected. The 50 level demarcates expected expansion from contraction.

United States

With most government data not being published in October due to the government shutdown, it is not possible to fully assess the health of the US economy.

The Fed can rely on state and private data to fill some of the gaps. The ADP private payrolls data was weak. -22,000 jobs were lost when the market expectation was for an increase of +45,000. The August ADP data was revised down to -3,000 from +54,000. The weakness of these data is in line with what we observed in the official payrolls data leading up to the government shutdown.

The US CPI data were published as they are necessary to update government benefits data. Not surprisingly, inflation remains above the Fed 2% target. However, inflation in CPI less housing rose from 1.4% in April 2025 to 2.7%. We attribute much of this gain to the impact of import tariffs. We do not see the tariff component increasing much further before the contribution will become negative as tariffs have only a one-off impact on prices.

Europe

The British unemployment rate rose to 4.8% which is the highest since Q2 in 2021. Economic growth came in at 0.1% following a -0.1% in the previous period. Inflation was steady at 3.8% and is expected to peak at 4.0%.

Rest of the world

Japan swore in a new prime minister – the first female in that position. Relevant markets rallied on the news. The Nikkei made a new high above 50,000 for the first time. Japan inflation rose to 2.9% from 2.7%.

The political tussle between the US and Canada continues. A TV advert was aired in the province of Ontario that used an edited clip of President Reagan speaking negatively about tariffs. As a consequence, Trump slapped on an additional 10% tariff on Canada. He was irked that Canada did not pull the ad until after it played at a major sporting event.

 

Getting Ready to Meet Your Financial Adviser: A Practical Guide

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Meeting with a financial adviser is a powerful step toward gaining clarity, confidence, and control over your financial future. Whether it’s your first appointment or a regular review, a little preparation can go a long way in making the most of your time together.

1. Gather Your Financial Information

Before your meeting, collect key documents that give a clear picture of your financial situation:

  • Recent tax returns and pay slips
  • Superannuation and investment account statements
  • Insurance policies (life, income protection, etc.)
  • Mortgage, loan, and credit card details
  • Estate planning documents (wills, powers of attorney)

Having these on hand allows your adviser to assess your current position and tailor recommendations to your needs.

2. Clarify Your Goals

Think about what you want to achieve, both short-term and long-term. Common goals include:

  • Planning for retirement
  • Saving for a home or children’s education
  • Managing debt or cash flow
  • Building wealth or protecting assets

The clearer your goals, the more focused and relevant your advice will be.

3. Be Ready to Share Personal Circumstances

Your adviser will want to understand your personal and financial background. Expect to discuss:

  • Your income and expenses
  • Family situation and dependents
  • Employment status and career plans
  • Any recent life changes (marriage, divorce, inheritance, etc.)

This helps your adviser build a strategy that reflects your real-life context.

4. Prepare Questions

Your meeting is a two-way conversation. Consider asking:

  • How do you tailor advice to my goals and risk tolerance?
  • What fees are involved?
  • What happens if my circumstances change?
  • How do you choose investment products?

Bringing questions ensures you leave the meeting with clarity and confidence.

5. Understand the Advice Process

The advice process will include:

  • Completing a Fact Find and Risk Tolerance Questionnaire
  • Discussing general strategies and next steps
  • Receiving a Letter of Engagement outlining advice areas and fees
  • Reviewing your financial goals and updating your profile as needed

If you’re considering SMSFs or other entities, be prepared to provide trust deeds, investment strategies, and compliance documents.

6. Be Honest and Open

The more transparent you are, the better your adviser can help. Share your concerns, values, and any financial habits or challenges. This builds trust and ensures your plan is realistic and achievable.

Preparing to meet your adviser isn’t just about paperwork, it’s about setting the stage for a meaningful partnership. With the right preparation, you’ll walk away with a clearer understanding of your financial path and the confidence to move forward.

Mastering Your Money: The 50/30/20 Budget Rule

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Budgeting doesn’t have to be complicated. In fact, one of the most effective frameworks is also one of the simplest—the 50/30/20 Budget Rule. Whether you’re just starting your financial journey or refining your current strategy, this rule offers a clear, flexible way to manage your money and stay on track with your goals.

What Is the 50/30/20 Rule?

The 50/30/20 rule divides your after-tax income into three categories:

  • 50% for Needs
    These are your essential expenses such as housing, groceries, utilities, insurance, and minimum debt repayments. They’re the foundation of your financial stability.
  • 30% for Wants
    This covers discretionary spending that enhances your lifestyle, such as dining out, entertainment, hobbies, and travel. It’s about enjoying life while staying within your means.
  • 20% for Savings and Debt Repayment
    This portion goes toward building your future, think setting up for retirement contributions, emergency funds, investments, and paying down debt.

Why It Works

The beauty of the 50/30/20 rule lies in its simplicity and adaptability. You don’t need to track every dollar—just focus on the big picture. It helps reduce financial stress by balancing responsible spending with enjoyment and long-term planning.

For clients navigating complex financial decisions, this rule can serve as a starting point. It’s not rigid, as percentages can be adjusted to suit individual circumstances, such as higher debt levels or aggressive savings goals.

How to Get Started

  1. Calculate Your After-Tax Income
    This is your take-home pay after taxes and deductions. Use this figure to apply the 50/30/20 split.
  2. Define Your Needs vs. Wants
    Be honest about what’s essential. For example, groceries are a need; dining out is a want.
  3. Automate Your Savings
    Set up recurring transfers to savings accounts or debt repayments to stay consistent.
  4. Review Regularly
    Life changes—so should your budget. Revisit your allocations quarterly or after major life events.

Tailoring the Rule to Your Life

While the 50/30/20 rule is a great framework, it’s important to personalise it. For example, clients in high-cost areas or with irregular income may need to adjust the percentages. The key is to maintain balance. Cover essentials, enjoy life, and build financial resilience.

The 50/30/20 rule is more than a budgeting tool, it’s a mindset. It encourages clarity, discipline, and flexibility to move confidently toward your goals.

Economic update: October 2025

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In this month’s update, we provide a snapshot of economic occurrences both nationally and from around the globe.

Key points:

  • US Fed reactivates interest rate cutting cycle.

  • Big downward revision to US jobs data.

  • The legality of Trump’s tariffs has been challenged and is to be adjudicated by the Supreme Court.

  • RBA did not cut interest rates due to slightly stronger inflation data.

We hope you find this month’s Economic Update as informative as always. If you have any feedback or would like to discuss any aspect of this report, please contact your Financial Adviser.

THE BIG PICTURE

After immense pressure from President Trump, the chairman of the US Federal Reserve (“Fed”), Jerome Powell, announced a 0.25% cut in the Fed funds interest rate to a range of 4.00% to 4.25% at its September meeting. Not only did the Fed cut interest rates, but it also signalled another two rate cuts this year and one in each of the next two years.

We have long argued that the Fed rate was far too high for current economic conditions. Powell may well have privately agreed but we suspect he didn’t want to be seen to be running a Fed that was not independent from the government.

There seem to have been two trigger points. We reported last month that there was a big revision to the previous two months’ new jobs data and a lower-than-expected number for the latest month (at the time). September’s release was a paltry 22,000 new jobs, and the unemployment rate inched up to 4.3%! Less than a week later, the BLS (Bureau of Labour Statistics) that produces much of the government economic data reported its annual revision to the recent twelve-month period (April 2024 to March 2025) was a downward move of 911,000 jobs. In the previous year, the BLS reported a downward revision of 818,000 jobs. That revision prompted Trump to accuse the BLS of being politically motivated – hiding poor data before the run-up to the November 2024 election. Trump’s claim was that the BLS wanted to support a Biden victory. That revision also heralded in a 0.5% Fed cut in September 2024 to start a new rate-cutting cycle.

We have seen no reasonable evidence that the BLS has done anything other than the best job it can in difficult circumstances. The nature of work and jobs are changing, and the response rate to the BLS monthly telephone surveys has been declining rapidly since the pandemic – as has also been reported response rates in Australia and Britain.

The problem of monitoring the labour market going forward has been exacerbated by the government shutdown in the US that just started on October 1st for an indeterminate time. There have been 14 such shutdowns in four decades – it is the way the two major parties try to direct funding to their chosen projects. The shutdown allows the president to choose which departments he will shut down. It is widely believed Trump will shut down the BLS before the next jobs’ data, due on October 3rd, to prevent more poor data from being published. We do not think a lack of data will divert the Fed from its cutting cycle, and market pricing supports this view.

US June quarter GDP growth was revised upwards to 3.8%, making for an average 1.6% p.a. for the first half of the year. Volatile trade data, caused by changing news on tariffs, continues to hamper estimating current growth. We think the US is likely to be growing at below trend, but that it is unlikely to go into recession anytime soon.

US inflation data remains a little elevated – currently running at 2.9% pa. Since tariffs have contributed to rates being above the target 2%, there is no reason to change monetary policy to accommodate these small changes. The tariff effect will only be transitory unless it inspires workers to escalate wage demands. With a weak jobs’ market, inflation is not a problem.

Some commentators are calling the current situation ‘stagflation’. We see this claim to be a headline-seeking activity. The term was introduced in the 1970s when unemployment and inflation were both high. Inflation was well into double digits and unemployment rates were about double what they are now.

Trump is still announcing lots of new tariffs, but with so many conditions that it is not feasible to keep up with what is real and what is not. The US Appeal Court found Trump’s across-the-board tariffs to be illegal. Trump has petitioned the Supreme Court to overturn that ruling – and to do that quickly.

Apparently, reasonable legal experts have stated that only Congress can impose across-the-board tariffs, but there are so many variations on what Trump might do if the ruling goes against him, it is not wise to speculate on what might happen next.

What is clear about the tariffs is that the US consumer and US businesses are bearing the brunt of tariffs – which are simply taxes by another name. There is no credible evidence that the exporters to the US are cutting prices to share the tax burden. However, that does not mean exporters are not shifting their exports to other markets to replace lost revenue from previous US imports.

China has turned out to be an awesome opponent in the tariff war. The deadline for a ‘deal’ keeps getting pushed back. China has a near monopoly on rare earth minerals, which are crucial in manufacturing high-tech goods such as EVs, drones, and military equipment. China has resumed exporting some rare earths to the US, but it is keeping a tight rein on where the minerals go. China is still in a position to cause serious economic damage to the US by withholding supply.

China has also stopped importing soybeans from the US – not because there is a tariff on them, but in an act of retaliation. Other examples exist.

Last year, the US exported half of its production of soybeans to China. Brazil has now replaced that supply. When Trump imposed similar tariffs in his first term, the US lost about 20% of market share to Brazil and never recovered.

US farmers are hurting, and Trump is offering $23bn of tariff revenue to compensate farmers. The problem is that the tariff revenue is being sourced from US consumers and businesses.

Other Trump policy initiatives are under fire. Courts also ruled against many of the mass deportations, but Trump seems to be following this ruling as he has now realised deportations are affecting employment and economic growth.

At home, the RBA is seemingly having difficulty interpreting inflation data. The problem lies squarely with our data agency, the ABS, and how it adjusted electricity prices to allow for government subsidies.

Without going into the details, the latest inflation publication revealed that electricity prices had gone up by 24.6% over the previous 12 months (from 12-monthly growths of +13.6% and -6.3% in the previous two reports) but this inflation was reportedly down -6.3% during the latest month! It doesn’t make sense.

The ABS seemingly tried to take the heat out of the inflation reports by calculating an implicit price change from a flat subsidy. As the subsidies come off, electricity price inflation and, hence, CPI inflation will be inflated for the following 12 months or more.

The ABS did report what the 24.6% electricity price inflation would have been without the subsidy effect: 5.9% for the last 12 months. We could have lived with that!

CPI inflation stands at 3.0% for the headline rate, but that would be in the middle of the 2% to 3% range without the statistical massaging!

If it were not for massive government support in the job market and economic growth, the Australian economy would be seen to be in a bit of trouble. The latest growth data support that view. The RBA should have cut on September 30th but it was probably led astray by the ABS inflation data.

In spite of the economic machinations at home and abroad, equity markets continue to make new highs or close to them. We see the momentum trend continuing.

US bond yields have settled down after the tariff debacle. However, the ‘standard’ 30-year US mortgage rate went up after the Fed’s recent rate cut – as did the 10-year Treasurys’ yield. Long interest rates are determined by the market based on confidence in future growth and inflation. There is no ‘interest rate cut to pass on’ in the US or here.

Who Should Inherit Your Wealth? A guide to Making the Right Decision

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When it comes to estate planning, few questions are as personal—or as complex—as deciding who should inherit your wealth. Whether you’re passing on a modest nest egg or a multimillion-dollar portfolio, the decision involves more than just numbers. It’s about values, relationships, and legacy.

Start with Your Intentions

Ask yourself: What do I want my wealth to achieve? Whether it’s supporting family, funding education, or giving back to the community, your goals should guide your decisions.

Family Isn’t Always Simple

While many default to leaving everything to family, it’s worth considering:

  • Financial readiness: Are your heirs prepared to manage a lump sum?
  • Life circumstances: Are there dependents with special needs or strained relationships?
  • Fairness vs. equality: Should each beneficiary receive the same amount, or should distributions reflect individual needs?

Use the Right Structures

Tools like wills, testamentary trusts, and superannuation nominations help ensure your wishes are followed and your estate is protected. These structures can also reduce tax burdens and prevent disputes.

Consider Charitable Giving

If you’re passionate about a cause, allocating part of your estate to a charity or foundation can be a powerful way to extend your impact beyond your lifetime.

Prepare Your Beneficiaries

Inheritance can be a gift—or a burden. Educating your heirs about financial management and your intentions can help them make wise decisions and honour your legacy.

A well-considered inheritance plan ensures your wealth supports the people and causes that matter most to you. It’s not just about what you leave behind, it’s also about how you’re remembered.

The Psychology of Saving: Why We Struggle and How to Overcome It

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Saving money isn’t just a financial habit, it’s a psychological challenge. Despite knowing the benefits, many Australians find it hard to consistently put money aside. So, what’s really going on in our minds when we try to save?

Why Does Saving Feel Hard?

Our brains are wired to focus on the present. This is called present bias, and it means we tend to prioritise short-term rewards (like takeaway or a new outfit)over long-term goals like a house deposit or retirement. When we add in emotional triggers like stress, boredom, or social pressure, it’s no wonder saving often takes a back seat.

Rewiring Your Brain to Save

The good news is you don’t need to overhaul your life to become a better saver. Here are a few simple mindset shifts that can help:

  • Start small: Even saving $10 a week builds momentum. It’s about consistency, not perfection.
  • Make it visual: Track your progress toward a goal, like a holiday or emergency fund, with a chart or app. Seeing it grow is motivating.
  • Know your triggers: Notice when you’re most tempted to spend. Is it scrolling online stores at night? A stressful day at work? Awareness is the first step to change.
  • Automate it: Set up a direct debit to your savings account on payday. If you don’t see it, you won’t spend it.

Saving Feels Good

Believe it or not, saving can actually reduce stress. Studies show that people who feel in control of their finances sleep better and feel more confident about the future. It’s not just about the money, it’s about peace of mind.

Talk About It

If you’re struggling to save or unsure where to start, you’re not alone. A quick chat with a financial adviser can help you set realistic goals and build a plan that works for you. Sometimes, just having someone in your corner makes all the difference.

Saving isn’t about being perfect, it’s about being intentional. With a few small changes and the right support, you can build habits that stick and feel good doing it!