Investing isn’t just a numbers game. It’s an activity that stirs various emotions from hope and optimism to fear and anxiety.

Whether the ASX is surging or stumbling, emotional responses to market movements can shape outcomes just as much as economic fundamentals. Understanding those responses is crucial to building resilience, especially in unpredictable times.

These patterns underscore the importance of long-term perspective, especially in a market shaped by both global sentiment and uniquely local factors.

How emotions enter the equation

We like to think our financial decisions are rational, but the truth is more complex. Investors aren’t robots crunching numbers in isolation. We are influenced by news cycles, cultural values and personal stories from friends, family and colleagues.

When markets rise, euphoria and FOMO can drive hasty buying decisions. During downturns, anxiety and regret can push investors to sell at a loss, despite having sound long-term strategies.

This pattern has played out across decades, from the dot-com bubble to the COVID recovery. And remember that emotional investing isn’t just a beginner’s problem. Even seasoned investors can be swept up by sentiment if safeguards aren’t in place.

Psychologists have long observed how financial stress activates similar responses to physical threats, triggering fight-or-flight instincts rather than thoughtful analysis. That’s why even well-informed investors may react defensively when facing market instability.

The good, the bad and the balancing act

Emotional investing isn’t all risk. In the right conditions, it reflects conviction, clarity and purpose. For example, values like patience and belief in the future can help investors stay committed during market dips.

Life changes such as home ownership, welcoming a child or retirement can bring useful emotional clarity to financial decisions. And ethical investing often stems from emotions such as care and connection to community.

When used with discipline, emotions can reinforce sound decisions rather than undermine them. Investors who use emotional clarity to establish long-term goals tend to feel more confident, even when short-term volatility strikes.

That said, emotions can also derail strategy. Panic selling during downturns, overconfidence after gains and herd mentality all pose risks.

The 2022 market correction saw many Australians pull out of super investments prematurely, missing the rebound that followed. These reactions stem not just from fear but also from a desire to act, even when patience may be more effective.

Learning from behavioural finance

Behavioural finance gives us tools to interpret emotional reactions. Biases like loss aversion, recency bias and anchoring affect decision-making in subtle but powerful ways.

These include:

• Loss aversion – People often feel the sting of losses more intensely than the joy of equivalent gains, which can lead to overly cautious or reactive choices.
• Recency bias – Recent events weigh heavily on perceptions, leading investors to expect trends will continue simply because they’ve just occurred.
• Anchoring – Fixating on a past portfolio value or arbitrary benchmark can skew rational assessment.

Recognising these tendencies helps investors avoid knee-jerk decisions and design portfolios that stay aligned with goals over time. It’s not about eliminating emotion; it’s about becoming aware of how it operates and mitigating its effects through smart responses.

After all, markets are always shifting. Emotions will always emerge. The goal isn’t to shut them out, but to understand them and develop structures to keep emotions from steering the ship. When investors learn to pause, reflect and act with intent, they not only improve outcomes but feel more confident in their journey.

If you’d like to explore strategies to build emotional resilience in your portfolio, or tools to help remove bias from investment decisions, please give us a call.

At its latest meeting, the Reserve Bank Board announced it was lowering the cash rate from 3.85% to 3.60%.

What drove this decision?
There are two main reasons:

• Inflation is easing – Prices aren’t rising as quickly as before. The RBA’s preferred measure of inflation is now close to their target range of 2–3%.
• Global uncertainty – Issues like trade tensions in the US could affect economic growth, so the RBA is being cautious.

What’s happening in Australia?

• Inflation: The trimmed mean inflation (a key measure) was 2.1% in June – the lowest since 2021.
• Jobs: Unemployment rose slightly to 4.3%, showing the job market is softening
• Wages: Pay rises are strong, which can push up business costs and slow down how quickly inflation falls.

What does this mean for interest rates going forward?
The RBA is expected to continue lowering rates slowly and carefully. They may cut rates again to around 3.35% by the end of the year if inflation keeps easing and the economy remains stable.

Key takeaways:

• Lower interest rates can help reduce borrowing costs (like mortgage repayments).
• Inflation is coming down, which is good news for household budgets.
• The RBA is being cautious and will adjust rates as needed to keep the economy on track.

Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.

With the official rate change, we’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.

Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.

Spring cleaning isn’t just for closets.

We’re used to tackling physical mess. We clear out closets, sort through garages, and sometimes even face that overflowing junk drawer in the kitchen. But there’s another kind of clutter we often ignore – the kind that lives on our devices, in our inboxes, and across the dozens of apps and platforms we use every day.

Our digital lives can become chaotic without us even realising it. Old files pile up, passwords go unchanged, unused apps stake up digital space, and outdated accounts hang around long after we’ve forgotten them.

Cleaning up your digital life isn’t just about tidiness. It’s about taking back control, reducing stress, and protecting your personal information. A little effort can help you make the most of the technology you rely on every day.

Start with the inbox

Email is one of the easiest places for clutter to grow unnoticed. Between unread messages, endless subscriptions, and decades of digital dust, many of us feel buried in content before we even open our inbox.

Start by archiving or deleting messages you no longer need. Use the search function to batch-delete emails from certain senders, especially those you no longer want to hear from. Unsubscribe from newsletters or promotional emails you tend to ignore and consider setting up filters to automatically sort messages into folders moving forward.

Even if you only clean up a few hundred emails, you’ll immediately feel a sense of relief. A tidier inbox helps you spot what’s actually important and reduces the mental load of “dealing with it later”.

Declutter your devices

Next, look at your phone and computer. These devices often become digital dumping grounds. Photos, documents, apps, and downloads accumulate over time and can start to feel overwhelming.

Begin by deleting apps you haven’t used in the last three to six months. If you’re not sure about something, check when it was last opened. Move photos and videos to cloud storage or an external drive to free up space. Organise documents into clearly labelled folders and delete duplicates or outdated versions.

Some parts of digital clutter are less visible but still worth clearing. Take a moment to empty your downloads folder, clear your browser cache, and remove temporary files. These forgotten corners of your devices can quietly slow things down and make everything feel more chaotic.

Audit old accounts

Over the years, you’ve probably signed up for countless shopping websites and other services, many of which you’ve long forgotten. These inactive accounts can pose security risks, especially if they’re linked to old or weak passwords.

Use a password manager to help identify and organise your accounts. Close the ones you no longer use and update the passwords for those you still need. Closing unused accounts limits the number of places your data is stored, which reduces your exposure in the event of a data breach.

This step may take a little time, but it’s one of the most powerful ways to protect your digital footprint.

Check your digital security

While you’re auditing, take time to strengthen your online security. Start with your most important accounts – like email, banking, and cloud storage – and make sure each one uses a strong, unique password.

Enable two-factor authentication where possible. This extra layer of protection only takes a few minutes to set up and can make a big difference in keeping your accounts secure.

Finally, don’t forget to check for software updates on all your devices. These often include important security patches, so keeping your system up to date is one of the easiest ways to stay protected.

Refresh your social media

Social media can be a powerful tool, but only if it reflects who you are now. If your feed feels stale or overwhelming, take a few minutes to clean it up.

Unfollow or mute accounts that no longer resonate with you. Curate your feed so that it reflects your current interests, values, and goals. This simple step can turn mindless scrolling, or doomscrolling, into a more positive, inspiring experience.

Digital spring cleaning is not about perfection. It’s about creating a digital environment that supports how you live and work right now. If this all sounds a little intimidating just take it one step at a time. Wherever you begin, the most important thing is to begin.

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Interest rates and tariffs continue to influence markets globally.

After the RBA’s surprise move to leave rates on hold at its July meeting, soft inflation data has paved the way for a future rate cut.

The ASX 200 climbed to a fresh record high during the month of July. Wall Street also recorded all-time highs as tariffs begin to be locked in and AI investment takes off.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Wealth Advisers Pty Ltd (ABN 35 994 727 125) is a Corporate Authorised Representative (1316489) of Integrity Financial Planners Pty Ltd (AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Buying a home is one of life’s biggest milestones—and can be one of the most stressful. From working out what you can afford, to numerous property inspections, understanding auction conditions, reading legal contracts and navigating finance approvals, it’s no wonder so many buyers feel overwhelmed. We see it every day—clients come to us excited but also anxious, especially when it’s their first home or first major investment.

There’s a lot to juggle when you’re purchasing property. As mortgage brokers, we help you navigate the finance side of things—ensuring your loan is the right fit, competitive, and ready to go when the time comes to make an offer on a property. But, on the property hunting and purchasing side, many buyers don’t realise they can also call in a professional to guide them on that part of the journey too.

What exactly is a buyer’s advocate?

A buyer’s advocate (also known as a buyer’s agent) is a licensed property professional who works solely for the buyer. Unlike real estate agents, who are paid by the seller to get the highest possible price, buyer’s advocates are hired by you, the purchaser, to act in your best interest.

Their role is all about strategy and support. They can help you define what you’re really looking for (beyond the 3 bed, 2 bath). They can research suburbs that align with your budget and goals, inspect properties, assess true market value, and negotiate the purchase—whether that’s through a private sale or bidding at auction on your behalf. Many also have access to off-market properties that never get listed online, which can be beneficial if you’ve been looking for a long time.

Some buyer’s advocates offer full-service packages—handling the entire search and negotiation—while others offer auction bidding or negotiation-only services if you’ve already found a property yourself. Whatever the level of involvement, their aim is the same; to protect your interests and help you buy smarter, with less stress and more confidence.

Buyer’s advocate fees typically range from 1% to 3% of the purchase price, but this can vary based on service level and location. Some agents offer fixed fees, while others use a commission model where the fee is a percentage of the purchase price.

Still niche but growing

While using a buyer’s advocate is still considered a niche option, it’s one that’s growing steadily across Australia. Industry data shows the number of registered buyer’s advocates in Australia has increased from around 500 in 2016 to over 1,000 today.

Even more telling is the shift in buyer sentiment. A recent survey found that approximately one in three property seekers are considering using a buyer’s advocate for their next purchase. That includes not only first-home buyers, but also investors and even those looking to upgrade to a bigger home, who want expert support as they navigate a competitive and fast-moving market.

The rise in demand makes sense when you consider how complex the property landscape has become. With fluctuating prices, regional hotspots, and a surge in off-market activity, buyers are realising they need more than just enthusiasm—they need expertise.

Less stress. More confidence.

For first-home buyers especially, the emotional impact of missing out on properties, feeling out of your depth at auctions, or second-guessing your choices can take a serious toll. We’ve seen buyers get stuck in “analysis paralysis” for months, afraid to make a move. We’ve also seen others rush into purchases they later regret—often because they didn’t have the right guidance.

A buyer’s advocate helps cut through the noise. They can tell you if a property is worth the asking price. They know the local agents and how to negotiate with them. They understand market trends, suburb growth potential, and zoning rules. They can calmly manage auction day nerves or advise you when it’s smarter to walk away.

In short, they help you buy with your head—not just your heart.

You don’t have to do it alone

If you’re thinking about purchasing a home or investment property, you don’t have to do it all alone. Start by having a chat with us. We’ll walk you through your finance options, help you understand your budget, and prepare your loan strategy so you’re ready to act when the right opportunity comes along.

And if you’d like extra support on the property side, it’s worth considering the benefits of having an expert to help you buy. 

If you have any questions or need any information please give us a call on 039723 0522.

Many of us associate trust funds with their depictions in popular culture – tools used by the mega-rich to distribute enormous family incomes among “trust-fund babies”.

Recently, they even went viral as the centrepiece of a TikTok audio by user @girl_on_couch, who was famously “looking for a man in finance. With a trust fund. 6’5. Blue eyes.”

But trusts – which allow assets to be managed by one party for the benefit of others – are more widespread than many people realise.

And they’re not just for the super wealthy. In 2020-21, more than a tenth of all Australians who lodged a tax return reported trust income.

Among the most common types of trust in Australia are family trusts, which are often designed to hold family assets or manage a family business. But their popularity has seen them regularly in the sights of the government and the tax office.

So what exactly are family trusts, and why are they so controversial?

First, what’s a trust?

A trust is a legal arrangement where a person nominated as a “trustee” manages assets for the benefit of another person or particular group of people. It isn’t a separate legal entity, but rather a kind of legal relationship.

A trust imposes what’s called an “equitable obligation” on its trustee to hold and manage trust assets according to specific conditions. These are set out in a “trust deed” for the explicit benefit of others, known as the trust’s “beneficiaries”.

The trustee acts as the legally appointed administrator of trust assets. But the beneficiaries still have what’s called “equitable interest” under the arrangement – certain rights to benefit from those assets.

Trustees can be individuals or companies. And many trusts include an “appointor” who has ultimate control. This appointor can appoint or remove the trustee at any time, and in many cases must consent to any changes in the trust deed.

What’s a family trust, and why do people use them?

In Australia, a family trust is a type of “discretionary trust”. Unlike a “fixed trust”, this means the trustee can make decisions about how assets and income are allocated among beneficiaries.

Family trusts are typically set up by a family member for the benefit of the family as a whole. A family trust deed can nominate multiple beneficiaries. These could include not only parents, children, grandchildren and other family members, but also other trusts and even companies.

Family trusts are often used to take advantage of their tax implications. This is because between years, trustees can vary the distribution of income among beneficiaries.

Any undistributed income left in the trust is taxed at the top marginal tax rate of 45%. But if distributed to beneficiaries with lower personal marginal tax rates, it is instead taxed at those rates, which can lower the total tax paid.

This explanation oversimplifies the picture, and there are a range of important caveats.

For example, if a beneficiary is non-resident of Australia for tax purposes, the trustee will be liable to pay tax on their behalf. And distributing trust income to beneficiaries aged under 18 can attract penalty taxes at the top marginal rate.

Why are they controversial?

Family trusts have attracted scrutiny from regulators and the public for a range of reasons – perhaps chief among them, this broad ability to lower taxation by splitting income.

The private nature of many trusts means there is often minimal public reporting, so it can be difficult to determine who in society is benefiting from trust income, and how. There are also concerns that they can be structured inappropriately to hide income.

Trusts can also help safeguard a family’s wealth by shielding a family’s assets from the liabilities of individual members. The beneficiaries of a discretionary trust generally have no legal entitlement to its assets.

This means that if the beneficiary goes bankrupt or gets divorced, the trust’s assets may often be protected from any claims.

In 2019, the Australian Taxation Office (ATO) released the findings of an independent review into trusts and the tax system. Some key areas of concern include:

• income tax shuffles (individuals exploiting differences in income definitions between trust law and tax law to dodge higher marginal tax rates)
• using convoluted structures like circular trusts (two trusts that are beneficiaries of each other) to obscure trust income and who the ultimate beneficiaries are, and
• trusts failing to lodge tax returns.

The use of trusts as a business structure in Australia may yet require further review.

This should not only seek to examine the legislation underpinning trusts, but also improve education for accountants to better understand trust and tax law.

Talk to us if you have any questions regarding family trusts.

Source: https://theconversation.com/what-are-family-trusts-232601