Financial Planning

By Luke Volker, Partner and Senior Financial Advisor, Scone

Most Australians are either dangerously under-insured or quietly burning thousands of dollars a year on insurance they don’t need. In 2025, life insurance claims at record highs after the pandemic back-log, and income-protection premiums jumping 12–18% for certain occupations, getting this wrong is expensive.

Start with the “What keeps you awake at night?” test

I make every client answer these four questions out loud:

1. If I died or became disable tomorrow, could my family keep the house and the same lifestyle for 10–15 years?
2. If I couldn’t work for a sustained period of time (injury/illness), who pays the mortgage, groceries and school fees?
3. If my child needed open-heart surgery or cancer treatment, would we be forced into the public system or bankrupt in the private?

Your answers tell us which insurances are non-negotiable and which are optional.

Life Insurance (Death Cover) – “If I die, my family don’t lose the house”

What it actually does: Pays a tax-free lump sum to whoever you nominate the moment you die. That’s it. No waiting, no questions.

Total & Permanent Disablement (TPD) – “If I never work again, we’re still okay”

What it does: Pays a lump sum if you’re permanently unable to work in ANY job you’re suited for (any occupation) or YOUR OWN job (own occupation – much better).

Two types – know the difference:

• Any occupation: Cheaper but brutal. If you can theoretically push a pen, no payout.
• Own occupation: Gold standard. If you’re a surgeon who loses a hand, you get paid even if you can teach.

Claims for mental health TPD (anxiety, depression, PTSD) now 42% of all payouts. Super funds are tightening definitions – external own-occupation policies are much stronger

Income Protection (IP) – “If I’m off work sick or hurt, the bills still get paid”

The single most claimed insurance in Australia – 94 cents of every dollar collected is paid out.

What it does: Replaces up to 70% of your pre-disability income (up to $30,000/month) for as long as you choose – 2 years, 5 years, or to age 65/70 after a specific waiting period (usually 30/60/90 days).

Trauma Insurance (Critical Illness) – “Cancer/heart attack/stroke = instant cash”

What it does: Pays a lump sum the moment you’re diagnosed with one of 40–60 listed conditions (cancer, heart attack, stroke, MS, Parkinson’s, etc.). No need to stop work.

Why it’s different: You get the money WHILE YOU’RE ALIVE. Pay medical bills, wipe the mortgage, take 12 months off.

Final Thoughts

I’ve sat beside too many widows who discovered—too late—that their husband “meant to get around to it.” I’ve also handed over seven-figure cheques to clients who thought insurance was a waste of money until the diagnosis came. The difference between those two futures isn’t luck, income, or age. It’s one hour of your time and a handful of decisions you make this week.

So close this article, and take action. While your kids are asleep, while the coffee’s still hot, while you still can. Because the only thing more expensive than proper cover is the price of regret.

To find out more, contact Brooks and Partners for expert financial advice.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

By Luke Volker, Partner and Senior Financial Advisor, Scone

I’ve been helping Australian families with their money for over 10 years, and right now—November 2025— almost every client I see is feeling the same squeeze. The September quarter CPI came in at 3.2%, and the RBA is holding the cash rate at 3.60% with no cuts in sight. Groceries are up 4.8% year-on-year, electricity bills jumped 14.2% in the last 12 months for many households, and if you’re on a variable mortgage, your repayments have probably risen by $1,200–$1,800 a month since the first hike in 2022.

I’m not going to sugar-coat it: if you don’t have a budget that you actually look at every month, you’re flying blind. Here’s exactly what I’m telling client’s right now:

First, do the mortgage autopsy

Open your internet banking. Look at the last three months of repayments. Then pull up your loan statement from 3 years ago and compare. I had a client whose variable rate had crept from 2.69% to 6.84%.

What I do next:

• Contact your mortgage broker to compare the market. Is your rate competitive. Are you in the right product?
• Is refinancing a viable option: even dropping 0.5% saves $250 a month on a $600,000 loan.

Second, build a proper buffer

I advise run at least three months’ expenses in an offset or high-interest saver. Right now the best offset accounts are paying 4.75–5.10%. That’s free money and instant access.

Here’s my rule:

• Take your new mortgage repayment after any refinance
• Add rates, insurance, groceries, fuel, school fees
• Multiply by 3
• That number sits in offset.

If you’re thinking “I can’t afford to save that,” you definitely can’t afford NOT to.

Third, slash discretionary spending—ruthlessly

Print their last 90 days of transactions and we go line by line with a red pen. Here’s just a few areas where savings can often be easily achieved:

• Afterpay/Zip
• Deleted subscription apps
• Uber Eats → meal-plan
• Streaming – Do you need every streaming option – consolidate

My favourite trick: Want something over $100 that isn’t a need? Wait a fortnight and ask yourself again, “Do I still want this?” Without the impulse to transact, 90% of items never make it to purchase.

Finally, the part most people hate: weekly/monthly budget reviews

No excuses. Set a recurring calendar invite. Open the budgeting app, categorise anything uncategorised, check the mortgage offset balance, and answer three questions:

1. Did we stick to the plan this week?
2. Where did we overspend and why?
3. What are we moving to the buffer or mortgage this week?

If you skip this, the budget dies. I’ve seen it a thousand times. But the clients who treat it like brushing their teeth? They’re the ones paying off 30-year mortgages in 12 years, building six-figure offsets, and sleeping through rate rises.

My promise to you

If you do these four things—review your mortgage this week, build a three-month buffer, cut the low-hanging discretionary fruit, and commit to regular reviews—you will have more cash in your pocket by next Christmas than you thought possible. I’ve watched families go from “we’re drowning” to “we just booked a holiday” in a relatively short period of time.

Inflation doesn’t care about your feelings, but a budget you actually follow does. Start tonight. Pull up your banking app, grab a coffee (that you made at home), and get your money working harder for you.

To find out more, contact Brooks and Partners for expert financial advice.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

By Luke Volker, Partner and Senior Financial Advisor, Scone

Investment diversification remains the most powerful risk-management tool available to everyday Australians, yet many portfolios suffer from a silent killer: home-country bias. Despite the ASX representing just 2% of global market capitalisation, the average Australian self-managed or industry super fund still holds 30-70% in domestic assets. In 2025, with the ASX 200 trading at a 15% premium to fair value and global tech giants driving returns, understanding the distinct roles of Australian and international equities has never been more important.

Why Home Bias Hurts Australian Investors

Australia’s market is uniquely concentrated. As of October 2025:

• Financials: 29.8% (CBA, NAB, ANZ, WBC, MQG)
• Materials: 24.1% (BHP, Rio, Fortescue)
• Top 10 stocks: 48.2% of the ASX 200

This means a single sector downturn—such as iron ore prices falling 18% in Q3 2025—can drag your entire domestic allocation down, even if the global economy is booming. Meanwhile, the MSCI World ex-Australia Index returned 18.4% annualised over the past five years, driven by the “Magnificent Seven” US tech stocks that barely feature on the ASX.

The Distinct Roles of Each Allocation

Australian Equities – Income + Franking Credits

Role in portfolio: Reliable income and tax efficiency

Key advantages:

• Fully franked dividends averaging 4.8% yield (ASX 200 Accumulation Index, September 2025)
• 30% imputation credits effectively boost after-tax yield to ~6.9% for top-bracket taxpayers
• Lower volatility than global peers (ASX 200 annualised standard deviation 13.2% vs MSCI World 16.8%)
• Natural currency hedge – no AUD/USD exposure

Best used for:

• Retirees needing tax-effective income
• Defensive allocation during global uncertainty
• Capital-stable core holding in super (especially Hostplus Choice Income or AustralianSuper Balanced)

International Equities – Growth + True Diversification

Role in portfolio: Capital growth and risk reduction through low correlation

Key advantages:

• Access to 10,000+ global companies vs ASX’s ~2,000
• Exposure to high-growth sectors missing domestically: semiconductors (NVDA +142% in 2024-25), cloud computing (MSFT, AMZN), biotech
• Negative correlation during Australian resource busts (e.g., 2022 iron ore crash vs NASDAQ +28%)
• Emerging markets exposure (China A-shares, India) for long-term demographic tailwinds

Best used for:

• Anyone under age 55 with 15+ year horizon
• Growth tilt in super (AustralianSuper High Growth: 45% international)
• Rebalancing opportunities when ASX outperforms

Evidence: 20-Year Performance Comparison (to 30 Sep 2025)

Asset Class	Annual Return	Annual Volatility	Worst Drawdown
ASX 200 Accumulation	9.1%	13.2%	-47.2% (GFC)
MSCI World ex-Aus (unhedged)	10.8%	16.8%	-54.1% (GFC)
50/50 Blend	10.3%	13.9%	-44.8% (GFC)

The blend delivered higher returns than pure ASX with only marginally higher volatility—classic diversification benefit.

The Missing Tech Engine: Australia’s Biggest Structural Gap

Australia has almost zero exposure to the global technology revolution. The entire ASX technology sector (IXJ) is just 2.1% of the market—smaller than Woolworths alone. Our largest “tech” names are not true tech at all:

ASX “Tech” Stock	Actual Business	2025 Weight
WiseTech Global	Logistics software	0.6%
Xero	Accounting SaaS	0.4%
TechnologyOne	Enterprise software	0.2%
Total ASX tech	~2.1%	vs 29% in MSCI World

By comparison, the US S&P 500 has 29.4% in information technology. The seven largest global tech companies (Apple, Nvidia, Microsoft, Amazon, Meta, Alphabet, Tesla) have a combined market cap larger than the entire ASX. A single day’s move in Nvidia now shifts global indices more than the entire Australian tech sector moves in a year.

Over the past five years to September 2025:

• ASX Information Technology Index: +11.2% p.a.
• Nasdaq-100: +23.8% p.a.
• Gap: 12.6% per year of missed growth

That’s the difference between turning $100,000 into $170,000 (ASX tech) or $290,000 (global tech) over five years—before franking credits are even considered.

Final Word

Diversification isn’t just about owning more things—it’s about owning different things that behave differently when you need them most. As we move from 2025 to 2026, with Australian valuations stretched and global growth accelerating, reducing home bias isn’t just “going overseas”—it’s simply catching up with the rest of the world.

If you rely solely on Australian equities, you are effectively betting that banks, miners, and supermarkets will outperform AI, cloud computing, semiconductors, and electric vehicles for the next decade. History says that’s a losing bet. International equities aren’t optional—they’re mandatory for anyone who wants exposure to the most powerful wealth-creating sector of the 21st century.

To find out more, contact Brooks and Partners for expert financial advice.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

By Luke Volker, Partner and Senior Financial Advisor, Scone

Retirement planning is a cornerstone of financial security, particularly in Australia where the superannuation system plays a pivotal role. As Australians, we benefit from a robust framework designed to support us through our working years and into retirement. However, effective planning requires tailoring strategies to your life stage, considering factors like super contributions, tax implications, and lifestyle goals. With the Superannuation Guarantee (SG) rate now at 12% as of July 2025, employers are contributing more to your super, but personal strategies across early career, mid-career, pre-retirement, and retirement phases, are essential to maximize growth and ensure you’re prepared for a comfortable future.

Early Retirement Planning

In your early career—typically ages 20-35—you’re building foundations. At this stage, focus on establishing good habits rather than amassing large sums. Start by maximising employer contributions through salary sacrificing into super. The concessional contributions cap for the 2025-26 financial year is $30,000, which includes SG payments and any pre-tax contributions you make. If your employer pays 12% on a $80,000 salary, that’s about $9,600 annually, leaving room for additional contributions up to the cap. These are taxed at 15%, far lower than marginal tax rates for most earners. Diversify your super investments early; opt for growth-oriented funds with higher equity exposure, as you have time to recover from market dips. Avoid lifestyle inflation—track expenses and allocate bonuses to super rather than spending.

Mid-Career Retirement Planning

Moving to mid-career (ages 35-50), life complexities increase with family, mortgages, and career peaks. Here, debt reduction complements retirement planning. Prioritise paying down high-interest debts like credit cards before boosting super, but don’t neglect contributions. The non-concessional cap is $120,000 for 2025-26, allowing after-tax contributions without immediate tax. If under 75, you can bring forward up to three years’ worth ($360,000) if your total super balance is below $1.9 million. This is ideal after selling assets or receiving inheritances. Couples should consider spouse contributions for tax offsets up to $540 annually. Investment-wise, review your super fund’s performance. Estate planning also should be considered: nominate beneficiaries to ensure super passes efficiently, bypassing wills in many cases.

Pre-Retirement Planning

As you approach pre-retirement (ages 50-65), preservation and protection become key. Transition to retirement (TTR) strategies allow drawing a pension while working, reducing taxable income. For example, salary sacrifice up to the $30,000 cap and withdraw 4-10% from super as a pension, tax-free if over 60. This minimizes tax and preserves capital. Catch-up contributions are crucial: carry forward unused concessional caps from the past five years if your balance is under $500,000. Health checks are vital—consider private health insurance to avoid Lifetime Health Cover loading. Downsize property if feasible; the downsizer contribution allows up to $300,000 per person into super from home sales, ignoring caps if over 55. Model scenarios to ensure your super meets the Age Pension asset test thresholds.

Retirement

Finally, in retirement (65+), focus on sustainable income. At 60, super withdrawals are tax-free, but plan drawdowns to last 20-30 years. Account-based pensions offer flexibility, with minimum withdrawals starting at 4% under 65, rising to 14% over 95. Centrelink’s Age Pension supplements if assets are below $1,031,000 for couples (homeowner). Diversify income: combine super with investments, part-time work, or annuities for guaranteed streams. Review annually for tax changes, like the proposed higher taxes on large balances over $3 million. Healthcare costs rise, so budget for out-of-pockets despite Medicare.

Throughout all stages, regular reviews with a financial planner are essential. Australia’s super system is world-class, but personal action drives success. Start small, stay consistent, and adapt to life changes for a secure retirement.

To find out more, contact Brooks and Partners for expert financial advice.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

By Luke Volker, Partner and Senior Financial Advisor, Scone

I’ve been riding market rollercoasters since the GFC in 2008, the COVID crash in 2020, and now this messy 2025 stretch. Right now, as of 10 November 2025, the ASX 200 has dipped below 8,200 after hitting 8,900 in late October, iron ore’s cratered another 12% in the last fortnight, the RBA’s still glued at 3.60% with inflation ticking up to 3.2%, Trump 2.0 tariffs are hammering global sentiment, and gold—everyone’s “safe haven”—has fallen 8% from its September peak above US$2,800 to around US$2,580.

If your stomach drops every time you open your Super/Investment app, this article is your seatbelt. And if you’re a brand-new investor who just jumped in at the highs—you’re not alone, and you’re not screwed, know that markets do not move in a straight line, that “loss” is on paper only, you haven’t sold, and these market dips also create opportunity. Here a few tips to help you navigate this period of volatility.

1. First, stop looking at the market every day

Studies from Vanguard show investors who check their portfolio daily underperform those who check annually by 1.5% a year. My rule: log in once a month

2. Understand what’s actually happening right now

• ASX 200: down 7.8% from October peak, resources smashed (BHP -19%, Rio -21%)
• Gold: US$2,583/oz spot, down 8% in six weeks as real yields spike
• US S&P 500: still +21% YTD despite Friday’s 2.4% drop on tariff fears
• China demand collapse → iron ore $88/tonne → Fortescue -28%
• Bond yields jumping → banks wobbling
• AUD smashed to US$0.638

3. The only three things that actually matter in volatility

• Your time horizon: If you need the money in <5 years → you shouldn’t be heavily invested in shares or gold. If it’s 10+ years → every single crash in history has been a buying opportunity. This dip is noise.
• Ensure your asset allocation is in line with your risk profile.
• Ensure your portfolio is regularly rebalanced.

4. The emotional traps I see every single crash (especially from new investors)

• “I just got in, I’m pulling out until it recovers” → If you do this, you are converting your paper loss into an actual loss
• “Gold was supposed to protect me!” → It does—over decades. Not weeks.
• “My mate sold everything last week” → Your mate will likely miss the re-entry waiting for the ‘bottom’ and will likely end up buying back higher.
• Checking every day → Panic sell at the exact worst moment.

5. The historical truth

Since 1980, the ASX 200 has had 12 corrections >10%. Average decline: –22%. Average recovery time: 13 months. Every. Single. One. Recovered. Gold? Six major drawdowns >20% since 2000. All recovered.

Volatility isn’t the enemy. Panic is.

I’ve watched the market crash a few times now. Every client who followed the plan—and stayed invested—retired richer. Every new investor who jumped in at the top and stuck around? They’re the ones with the best stories (and fattest balances).

The market will do what it does. Your job is to do nothing—intelligently.

Stick to the plan.

We’ve seen this movie before, and spoiler alert: the good guys—and the patient investors—always win.

To find out more, contact Brooks and Partners for expert financial advice.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.