Jacqueline Barton

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.

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.

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.

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.

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!