Building long-term wealth requires balancing cash and investments. Cash serves key roles: as an emergency fund (3-6 months of expenses), for daily expenses, and for short-term goals (1-2 years). However, holding too much cash presents risks like inflation and missed investment opportunities. While cash ensures liquidity and stability, especially for short-term needs, long-term wealth growth is better achieved through investments. The S&P 500, for example, has historically recovered from downturns, often delivering double-digit returns. While cash protects against immediate risks, investing is crucial for harnessing market growth and accelerating wealth accumulation over time.

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Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. No one enjoys rejection. But despite this, there are plenty of times in life when we put ourselves in a position where rejection is a possibility. From applying for a new job to asking the love of your life to marry you, the risk of a knock back isn’t too far away. Yet we give it a go because the rewards of success outweigh the disappointment of being turned down.

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In an increasingly complex financial world, the role of a Financial Adviser has never been more valuable. But what does value really mean in Financial Planning? Is it just about maximising returns, or is there more to it? This article delves into the multifaceted role of Financial Advisers, unpacking the tangible and intangible benefits they bring to your financial journey.

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September has been a challenging month for Australian markets, historically known for declines. The ASX dropped 1.88%, driven by weak Chinese and U.S. manufacturing data, causing selloffs in commodities like copper, oil, and iron ore, impacting material and energy stocks. Financial and real estate sectors gained from recession fears and lower interest rate speculation. Internationally, U.S. markets saw low trading volumes before the holiday, with the Nasdaq hit by NVIDIA's 10% drop due to AI bubble concerns. Europe’s FTSE 100 rebounded, but inflationary pressures persist. Investors focus on U.S. jobs data, influencing future Federal Reserve rate decisions.

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The Australian Taxation Office (ATO) has a well-established framework for managing penalties and interest, designed to ensure that individuals and businesses comply with their tax obligations. In 2024, the ATO has taken a more stringent approach to penalties and interest, reflecting its commitment to maintaining the integrity of the tax system. Understanding these changes is crucial for taxpayers who want to avoid costly mistakes.

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Want to grow your investment portfolio but have most of your wealth tied up in your family home? You may be able to leverage recent gains in the property market as equity for an investment property. Let’s take a look: We all have a few financial goals, and right now investing in a rental property is one of the more popular investment goals among Australians. In fact, more than one-in-five Australians (21%) aspire to own investment properties to build their wealth, according to MLC’s Financial Freedom report. Interestingly, this percentage increases to 27% for Gen Zs and 23% for Gen Ys.

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Australia's tax system is structured to accommodate both its citizens and foreign residents. Understanding how foreign resident tax works in Australia is crucial for anyone living in the country temporarily or investing from abroad. This article provides an overview of the key aspects of the tax obligations and benefits that apply to foreign residents in Australia.

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The ASX has rebounded after a weak performance, recording 10 consecutive days of positive returns, pushing the ASX200 index above 8000 points. The IT sector led the surge, rising 15.65%, with significant gains from WiseTech, Xero, and NextDC. WiseTech's 34.5% rise was fueled by a strong earnings report, showing a 28% year-over-year revenue increase. In contrast, the Energy sector struggled due to falling oil prices, influenced by China's economic slowdown and geopolitical risks. Utilities also declined, mainly due to a large sell-off following Origin Energy's weak earnings and guidance. Internationally, U.S. markets are recovering, with the tech-heavy NASDAQ leading the gains. Investors anticipate a potential Federal Reserve rate cut, with more clarity expected after their meeting. In Europe, the DAX and STOXX Europe 600 saw gains, driven by expectations of a rate cut from the European Central Bank (ECB) following a decrease in wage growth. The Japanese Nikkei 225 continues its gradual recovery, nearing pre-August levels, with potential to reach new highs given favorable monetary conditions.

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In today's interconnected world, many investors are starting to look beyond just financial returns. This shift in perspective has fuelled the growth of ethical investing – an approach that aligns financial goals with personal values and societal concerns. At its core, ethical investing involves choosing investments based on Environmental, Social, and Governance (ESG) factors. The aim is to build a portfolio that not only generates returns but also reflects your values and commitment to sustainable and responsible business practices.

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