Friends With Money

With interest rates at their highest level in years, could homeowners be doing more to keep their mortgage costs down?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Richard Whitten, money and home loans expert at Finder, to discuss the outlook for rates and the practical steps borrowers can take to cut their home loan costs.

00:00 Introduction

02:01 Are lenders passing on the latest rate rise?

03:08 What does the latest hike mean for borrowers?

04:22 Will there be another rate rise this year?

05:44 First steps to reduce your mortgage costs

08:00 How to negotiate a lower rate with your lender

10:00 When refinancing makes sense and what to watch for

12:00 Why refinancing may be harder right now

13:23 Richard's top tip for homeowners facing higher repayments

14:34 Conclusion

#friendswithmoney #tomwatson #richardwhitten #homeloans #rbaPodcast Links:

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✈️ Are frequent flyer points still worth it after the rewards shake-up?

❓Question:

With banks reducing rewards and changes to card surcharges coming into effect, should Australians still be chasing frequent flyer points?

✅ Short Answer:

Yes, but only if you play the game strategically. Frequent flyer points can still deliver significant value, particularly for travel, but the rules are changing. According to points expert David Moloney, Australians need to focus on earning points efficiently, avoiding interest charges, and redeeming points before they lose value.

💡 Key Takeaways:

• New RBA rules are reducing the amount banks earn from credit card transactions, which means some rewards programs are becoming less generous.
• Around 35% of credit card payments are linked to frequent flyer programs, meaning millions of Australians could be affected by changes to rewards schemes.
• Two-thirds of Qantas Frequent Flyer points are now earned on the ground rather than in the air through shopping, credit cards and loyalty partnerships.
• Simple strategies such as linking supermarket rewards programs, using airline shopping portals and pooling family points can boost balances with little extra effort.
• The most valuable points collectors focus on the highest return for the lowest level of effort, rather than chasing every available promotion.

🚨 Watch Out For:

• Never carry credit card debt just to earn points. Interest charges can wipe out any rewards value.
• Credit card annual fees only make sense if the value of the points and benefits exceeds the cost.
• Paying card surcharges that are greater than the value of points earned can leave you worse off.
• Avoid making unnecessary purchases simply to earn points. The points should be a bonus, not the reason for spending.
• Redeem points regularly rather than hoarding them for years, as airlines and loyalty schemes can devalue points over time.

🎯 Who This Matters To:

This episode is for travellers, credit card users, frequent flyer members and anyone looking to get more value from everyday spending. If you collect Qantas Points, Velocity Points or other loyalty rewards, you'll learn practical ways to maximise your rewards while avoiding costly mistakes.

📚 Resources & Links:

• Points: Mastering the Game of Frequent Flyers by David Moloney
• Qantas Frequent Flyer Program
• Reserve Bank of Australia payments and surcharge reforms discussed in the episode

⏱️ Timestamps:

00:00 Introduction

01:08 How the new RBA rules are changing rewards programs

02:10 Why Australians should still collect points

03:05 Why most points are now earned on the ground

04:13 The "highest return for lowest effort" strategy

05:45 Three easy ways to earn more points

07:29 Are points really free?

08:00 The dangers of credit card debt and rewards chasing

09:11 The hidden "lazy tax" points collectors pay

10:37 Why you should redeem points before they lose value

11:00 Final thoughts

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Financial advice can be valuable, but for plenty of Australians, the cost puts it out of reach. So could super funds hold the key to closing the advice gap?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Rudy Leong, senior private wealth adviser at UniSuper, to discuss the type of financial advice members can currently access through their super funds and how that could change in the future.

00:00 Introduction

01:56 What is the financial advice gap?

04:00 What advice can super funds currently provide?

06:10 Does advice through a super fund cost money?

07:42 Overview of the financial advice reforms

10:00 What the reforms could mean for super fund members

11:49 The opportunities and risk of AI in financial advice

14:34 One question everyone should ask their super fund

15:46 ConclusionPodcast Links:

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From October, card surcharges will become a thing of the past. But while the change promises savings for cardholders, it could have ripple effects beyond the checkout.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Adele Eliseo, founder of The Champagne Mile, to explain what's changing, who's likely to benefit and why credit cardholders need to pay close attention.

00:00 Introduction

01:34 What happens to card surcharges from October?

03:42 Why are card surcharges being banned?

04:40 How much are consumers likely to save?

05:32 The impact on rewards credit cards

07:03 How banks are already changing rewards programs

08:27 What rewards card holders should do now

10:10 Conclusion

#friendswithmoney #tomwatson #adeleeliseo #creditcardsPodcast Links:

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Australia's sharemarket may be dominated by a handful of large miners and banks, but there are plenty of opportunities beyond the heavyweights.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jamie Hannah, deputy head of investments and capital markets at VanEck, to discuss the risks and rewards offered with small caps and mid caps.

00:00 Introduction

01:17 What are small caps and mid caps?

03:33 Behavioural differences

05:07 The mid cap sweet spot

06:18 How have small and mid caps performed?

08:36 The investment case for smaller companies

11:21 How much should investors allocate to small and mid caps?

13:19 The key risks of investing in smaller companies

15:30 Options for gaining exposure to small and mid caps

16:31 Local and international ETF opportunities

19:25 Conclusion

#friendswithmoney #tomwatson #jamiehannah #investing #smallcaps #midcapsPodcast

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💰 The retirement revolution: Why working longer isn't the real retirement plan

❓ Question:

How is retirement changing in Australia, why are so many people worried about running out of money, and what practical steps can Australians take now to improve their chances of a comfortable retirement?

✅ Answer:

According to journalist Nina Hendy, retirement is no longer a fixed destination reached at a particular age. More Australians are gradually transitioning into retirement through part-time work, flexible arrangements and second careers rather than stopping work completely. At the same time, many people are worried they won't have enough money to retire comfortably, despite having access to more retirement tools, guidance and income solutions than ever before. The challenge isn't a shortage of information. It's that many Australians remain disengaged from their superannuation until they're close to retirement.

💡 Retirement is becoming more flexible

The traditional model of working full-time until retirement age and then leaving the workforce entirely is fading. Many older Australians are reducing their hours gradually, changing careers or continuing to work beyond traditional retirement age. For some, it provides purpose and social connection. For others, it's simply a financial necessity.

💡 You may not need $1 million to retire comfortably

One of the biggest misconceptions discussed in the episode is the amount needed to retire. While many Australians believe they need more than $1 million in super, the figures cited suggest a comfortable retirement may require around $730,000 for couples and $630,000 for singles, assuming they own their home outright.

A comfortable retirement lifestyle is estimated to require annual spending of approximately $78,000 for couples and $55,000 for singles. This includes private health insurance, maintaining a car, home repairs and everyday comforts without excessive financial stress.

💡 Fear of Running Out is becoming a major retirement concern

A growing number of Australians are experiencing FORO, the Fear Of Running Out of money. The prospect of no longer earning a regular income creates anxiety for many people approaching retirement. Concerns about rising healthcare costs, unexpected expenses and increasing longevity can leave retirees reluctant to spend the money they've spent decades accumulating.

💡 New retirement income products are helping address longevity risk

Super funds are increasingly introducing retirement income products designed to provide greater certainty. These include lifetime income streams and annuity-style products that offer guaranteed ongoing payments. The aim is to reduce the risk of retirees outliving their savings while making it easier to convert accumulated super into reliable retirement income.

💡 Super funds now offer more tools and guidance

Recent regulatory changes have encouraged super funds to provide more support to members approaching retirement. Many funds now offer calculators, retirement projections and guidance that can help people better understand how long their savings may last and how super can work alongside the Age Pension.

🚩 Australians are living longer than ever

Retirement planning has become more important because Australians are living significantly longer. According to the discussion, men are living around 13 years longer than they were 50 years ago, while women are living around 11 years longer. Longer life expectancy means retirement savings may need to last for 25 to 30 years or more.

🚩 Cost-of-living pressures are fuelling retirement anxiety

Households are facing higher grocery bills, petrol prices and energy costs, leading many people to assume retirement will require significantly more money than previous generations needed. Inflation and financial uncertainty are contributing to growing concerns about retirement preparedness.

🚩 Supporting adult children is affecting retirement plans

Many parents are continuing to provide financial support to adult children for living expenses, university costs and housing deposits. While understandable, this generosity can place additional pressure on retirement savings and make it harder to build the nest egg needed for later life.

⚠️ Women continue to face bigger retirement challenges

Women frequently retire with lower super balances than men due to time spent out of the workforce raising children and caring for family members. As a result, women are more likely to report retirement-related stress and concerns about financial security in later life.

⚠️ Too many Australians still ignore their super

Despite superannuation being one of the largest assets many Australians will ever own, many people rarely review their balance, check fees or understand how their money is invested. Hendy argues that greater engagement is often the simplest and most effective way to improve retirement outcomes.

🏦 Five simple ways to boost your retirement outlook

• Consolidate multiple super funds into one account to reduce fees.
• Check whether your super fund is performing well.
• Review fees, costs and insurance attached to your account.
• Consider making additional contributions, even small amounts.
• Log in every six months to ensure you're on track and receiving the correct employer contributions.

📈 Why it matters:

For many Australians, superannuation is their second-largest asset after their family home, yet it often receives far less attention than other financial decisions. As Australians live longer, retirement becomes more flexible and new retirement income products emerge, actively engaging with your super can have a significant impact on your financial future. Small actions taken today can improve confidence, increase retirement savings and help ensure greater financial freedom later in life.

🎙️ Sources:

Nina Hendy, journalist and author of The retirement revolution

Vanessa Walker, Managing Editor, Money magazine

Money magazine September cover story: The retirement revolution

⏱️ Timestamps:

00:00 – Introduction to the Retirement Revolution

00:41 – Why retirement is becoming more flexible

02:15 – Why Australians worry but don't take action

04:00 – How much money do you really need to retire?

06:12 – Understanding the Fear Of Running Out (FORO)

07:42 – New retirement income products and lifetime income solutions

09:30 – Longevity and the challenge of longer retirements

10:07 – How cost-of-living pressures are affecting retirement planning

11:15 – The most important retirement lessons for Australians

13:21 – Final takeaways and practical retirement tips

Podcast Links:

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With interest rates near their highest levels in years, many savers will be taking a fresh look at term deposits. But are they the right home for your cash?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Olivia McArdle, head of deposits and payments at Macquarie Bank, to unpack everything savers need to know about term deposits.

00:00 Introduction

01:25 Term deposits versus savings accounts

04:10 Are higher rates making term deposits more attractive?

05:50 How banks determine term deposit rates

08:15 Common mistakes savers make with term deposits

10:50 Can you access your money early?

13:10 Term deposits and the Financial Claims Scheme

14:20 Conclusion

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In August 2001, Australia’s first ETFs were launched. Today, more than two million Australians own them. So what can investors learn from 25 years of ETF investing?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jonathan Shead, head of investments, Australia, at State Street Investment Management, to discuss the evolution of ETFs and the investing behaviours that matter most.

00:00 Introduction

01:11 Biggest lesson from 25 years of ETFs

03:07 How investors should approach ETFs as investments

04:35 The evolution of diversification over time

06:20 Can you own too many ETFs?

07:37 Which ETFs have been most popular with investors?

09:35 Lessons from the GFC and COVID downturns

11:37 ETF liquidity during market crises

13:47 The future: Active ETFs and tokenisation

15:36 Conclusion

#friendswithmoney #tomwatson #jonathanshead #etfs #investingPodcast

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💰 How can investors maximise returns after Australia's biggest tax shake-up in decades?

❓ Question: With major tax reforms set to begin from July 1, 2027, what investment strategies could help Australians grow wealth more effectively while navigating the end of the 50% capital gains tax discount and changes to negative gearing?

✅ Answer: According to Nicola Field, one of Australia's most significant tax reforms in recent years will reshape the way investors think about property, shares, ETFs and wealth-building. While some traditional strategies may become less attractive, investors still have opportunities to maximise after-tax returns by focusing on income-producing assets, ETFs, investment bonds and superannuation. The key is understanding how the new rules change the tax treatment of different investments and preparing well before the reforms take effect.

💡 The government had two key goals in mind. The reforms aim to improve housing affordability by reducing investor competition for established homes while also ensuring higher-wealth Australians contribute more tax. According to Nicola Field, policymakers were responding to the growing dominance of investors in the housing market and concerns that wealthy Australians derive much of their income from more lightly taxed sources such as capital gains, trusts and dividends.

💡 Investment property rules are changing significantly. From July 2027, investors purchasing established properties will no longer receive the benefits of negative gearing. Capital gains on investment assets will also move away from the long-standing 50% CGT discount, with gains instead indexed for inflation and subject to a minimum tax rate of 30%. New-build investment properties will continue to enjoy more favourable tax treatment.

💡 Income-focused investments could become more attractive. Assets that generate regular income rather than relying heavily on capital growth may gain popularity under the new rules. Nicola highlights private credit funds, income-focused ETFs and high-dividend shares such as Telstra and Transurban as examples that may appeal to investors seeking tax-efficient returns.

💡 Investment bonds are enjoying a resurgence. Often overlooked, investment bonds offer a compelling proposition under the new regime. Earnings are taxed at a maximum of 30% within the bond structure, and withdrawals can be tax-free after 10 years, making them particularly attractive for long-term investors and families planning for future generations.

💡 ETFs may become even more popular. Beyond diversification and low costs, ETFs can offer administrative and tax advantages. Because index-tracking ETFs make relatively few portfolio changes, they typically generate fewer capital gains events. They can also simplify record-keeping, making future tax calculations much easier than managing large portfolios of individual shares.

⚠️ Investors should not wait until 2027 to act. Nicola Field suggests reviewing loss-making investments ahead of the new rules. Capital losses realised before July 2027 may be more valuable because future losses will not receive the benefit of inflation indexation. Investors holding pre-CGT assets acquired before 1985 may also want to consider their options before gains become taxable under the new framework.

👥 Different generations may need different strategies.

• Gen Z: The First Home Super Saver Scheme remains a powerful tool, combining tax savings with the potential for stronger returns than traditional savings accounts.

• Millennials: ETFs continue to offer diversification, simplicity and tax efficiency while balancing the financial demands of mortgages and young families.

• Gen X: With retirement becoming more visible on the horizon, superannuation grows increasingly attractive. Investment bonds may also suit those wanting to build wealth for children.

• Baby Boomers: Superannuation remains a standout option, while investment bonds can provide a tax-effective way to invest for grandchildren.

🏦 Superannuation remains the standout winner. Despite all the tax reforms, super continues to offer compelling advantages through concessional tax treatment, tax deductions on contributions and long-term wealth accumulation benefits. The trade-off, of course, is accessibility, as funds remain locked away until preservation age. For many Australians, however, it remains one of the most effective wealth-building tools available.

💡 Why it matters:

The federal government's tax reforms will fundamentally change how Australians invest from July 2027. Strategies that have been staples for decades, including negative gearing and the 50% capital gains tax discount, will no longer deliver the same benefits. Investors who understand the changes early can take advantage of emerging opportunities in ETFs, investment bonds, income-producing assets and superannuation. The challenge now is not just growing wealth, but maximising what you keep after tax.

🎙️ Sources:

Nicola Field, finance writer

Vanessa Walker, managing editor, Money magazine and host, Friends With Money podcast

⏱️ Timestamps:

00:00 – Why the government is reforming Australia's tax system

01:07 – Helping first-home buyers and taxing wealth more fairly

02:28 – Key tax changes that have passed

03:45 – What the reforms mean for shares, ETFs and managed funds

04:12 – Income investments that may benefit under the new rules

05:00 – Why investment bonds are back in focus

05:34 – Are ETFs more tax-effective than individual shares?

07:09 – What investors should do before July 2027

08:43 – Investment strategies for Gen Z

09:29 – Why ETFs suit millennials

09:57 – Opportunities for Gen X investors

10:38 – The best options for baby boomers

10:53 – Is superannuation still Australia's best investment?

12:01 – Money magazine's guide to investing for maximum profitPodcast Links:

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After a stellar 2025, cryptocurrency has endured a difficult start to 2026. So what's behind the downturn and where do investors go from here?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Justin Lin, investment strategist at Global X ETFs, to discuss the latest price movements and what could lie ahead for the crypto market.

00:00 Introduction

01:45 Bitcoin and Ethereum performance in 2026

02:55 What's been driving the downturn?

05:15 How Australian investors are reacting

07:45 Crypto battles AI for investor attention

09:20 Institutional demand and ETF adoption

11:00 The long-term investment case

13:45 Outlook for the second half of 2026 and beyond

14:55 Conclusion

#friendswithmoney #tomwatson #justinlin #crypto #bitcoin

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