118. Income vs Capital Growth Assets



Welcome back to another episode of the 360 Money Matters Podcast! 

In this episode, we discuss the difference between income and capital growth assets. We explain that capital growth refers to the increase in the value of an asset over time, while income is usually received in the form of dividends or rent. We also mention that these principles apply to other asset classes such as managed funds or shares. Additionally, we emphasize that there is no one-size-fits-all approach and that different investment strategies are appropriate at different times depending on individual goals and life stages.

Furthermore, we also discuss franking credits associated with dividend income from shares and how they can be advantageous for investors. We explore the concept of being “asset rich, cash poor,” where individuals have significant assets but limited cash flow due to low rental yields or living expenses exceeding income generated by assets. Lastly, we delve into strategies for repositioning assets or investing in capital growth assets to address this issue.

Join us in this episode as we continue to explore the dynamic world of investments. Don’t miss out on valuable insights and strategies tailored to your financial goals. 

This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706

 

Episode Highlights

  • Difference between capital growth and income in asset

  • Understanding different types of asset

  • How to structure investment portfolios

  • Franking credits are and how they can influence investment decisions

  • Importance of timing in investments

  • Balancing capital growth and income

  • Implications of market conditions and retirement on investments

 

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