118. Understanding the Difference: Income vs Capital Growth Assets

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

In this episode, we explore the difference between income and capital growth assets. We explain that capital growth means an asset increases in value over time, while income comes from dividends or rent. These principles also apply to other asset classes like managed funds or shares.

We emphasize that there isn’t a one-size-fits-all approach. Different investment strategies are suitable at different times based on individual goals and life stages. We also talk about franking credits from dividend income and their benefits for investors.

Additionally, we discuss the “asset rich, cash poor” concept, where individuals have significant assets but limited cash flow due to low rental yields or high living expenses. We cover strategies for repositioning assets or investing in capital growth assets to address this issue.

Join us in this episode for valuable insights and strategies tailored to your financial goals. Don’t miss out on learning more about smart investing.

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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