Show Notes
Australian investors have spent decades being told there are good reasons to keep a big chunk of their money at home.
We've got franking credits, familiar companies, and the big banks and miners.
But what if that old investing playbook is starting to work against you?
Over the past decade, the gap between Australian and US sharemarket returns has been enormous. At the same time, some of the industries creating the most wealth in the world barely exist on the ASX.
And there is another problem Australian investors often overlook: your shares may not be the only part of your financial life already tied to Australia.
So how much Australian exposure is too much?
In this episode, Paul looks at whether the traditional case for owning a large allocation to Australian shares still stacks up, what has changed underneath the headline returns, and whether investors need to start thinking differently about where they build wealth.
Inside this episode:
The decade-long return gap that is getting harder for Australian investors to ignore
Why waiting for Australian shares to look cheap may not give you the answer you expect
The global growth story the ASX gives you surprisingly little access to
One reason your portfolio could be far more exposed to Australia than you realise
Why franking credits may be making this decision more complicated than it needs to be
The investing argument that made sense 20 years ago but is much harder to make today
Why putting more money overseas could actually reduce your risk
What the world's biggest companies can tell us about where future wealth may be created
If Australian shares still make up a big part of your portfolio, this episode may change how you think about what belongs in it. WONDERING IF YOU'RE TOO HEAVILY INVESTED IN AUSTRALIA?
At Guidance Financial Services, we can help you review your portfolio, understand where you may be overexposed and build an investment strategy that gives you the right mix of Australian and global investments for your goals. Book your appointment here. WANT TO STAY ACROSS WHAT'S MOVING THE MARKETS?: Subscribe to GainingCHOICE, our weekly email unpacking the key headlines and what to pay attention to.
GOT A FINANCE QUESTION FOR PAUL?: Send it to [email protected], and it could be featured in his Ask an Expert column each Sunday in The Age and Sydney Morning Herald.
You can also find all our links here.
General advice disclaimer
More from Financial Autonomy
UPDATED: This episode was originally published with the wrong episode audio; it has been republished with the correct audio. Thanks for your patience!
You've worked hard, built up your savings and investments, and spent years making sensible financial decisions. But when was the last time you gave yourself permission to actually enjoy the money you've earned? It's easy to tell yourself you'll take that big holiday, make that purchase or finally start doing the things you've dreamed about once you retire. But what if waiting comes at a cost you haven't considered? In this episode, financial adviser Paul Benson explores one of the trickiest decisions when it comes to building wealth: how much should you put towards your future, and how much should you enjoy today? Through real client conversations and a spending dilemma of his own, Paul challenges the idea that the financially smartest decision is always the best one. And why getting the balance wrong could leave you with regrets that money can't fix. Inside this episode: Why being disciplined with money can sometimes work against you
You're earning good money, paying down your mortgage and doing all the right things. But are you missing an opportunity to build wealth along the way?
You've spent decades building your super and retirement is finally within reach. But what if the sharemarket crashes just as you're preparing to stop work? Could you still retire as planned? Would you need to scale back your lifestyle? And could a few bad years in the market affect how long your money lasts? In this episode, Paul Benson explores a retirement risk many people overlook. He reveals why two people with identical savings and investment returns could end up with vastly different outcomes, and what you can do to prepare. Inside this episode: Why the timing of a market downturn matters more as retirement approaches
You want to retire while you're young enough to enjoy it, with enough money to say yes to the trips, the experiences and more time with the people you love. But how do you feel confident spending your savings when you don't know how long they need to last?