What if Vanguard goes bust? Last Q&A of 2025

Dec 18, 2025

This discussion dives into the intricacies of fixed versus variable mortgage rates, exploring the trade-offs that influence people's decisions. Owen and Gemma shed light on common money clashes between couples and offer practical techniques to ease those conversations. They also break down geared ETFs, emphasizing their suitability for super funds over personal portfolios. Additionally, the hosts tackle concerns about financial security if major fund managers fail, explaining how ETF structures and diversification can protect investors.

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ANECDOTE

Winner Chose Weekly Payments Over $1M Lump Sum

A raffle winner chose $1,000 per week over a tax-free $1 million lump sum, sparking online criticism.
Gemma and Owen note behavior, lack of financial literacy, or fear of blowing a lump sum may explain the choice.

ADVICE

Hold Windfalls Temporarily, Then Seek Advice

If you receive a large windfall, don't rush to invest; put it in a bank account until you get advice and build confidence.
Consider professional financial advice before making big decisions to avoid costly mistakes.

ADVICE

How To Choose Fixed Vs Variable Rates

Fix rates give budget certainty but limit flexibility and can incur big break fees if you need to exit early.
Stay variable to use offsets and benefit from rate falls, or split fixed/variable to balance certainty and optionality.

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In this Friday episode of The Australian Finance Podcast, Owen Rask and Gemma Mitchell unpack your questions on mortgages, investing, relationships and ETF risk. This week we dive into how to think about fixed versus variable interest rates, why couples so often clash over money, and what really happens if a fund manager, ETF provider or broker were to fail. We also take a closer look at geared ETFs and why some products are designed for super funds rather than personal portfolios, plus a practical explainer on how ETF ownership actually works behind the scenes. Owen and Gemma cover - How to think about fixing your mortgage rate versus staying variable, why people choose different options, and the real trade-offs involved rather than trying to “pick the perfect time” - Why money conversations with your partner so often turn into arguments, and practical ways to get on the same page without it becoming a values or control battle - What geared ETFs like GHHF are, why they’re often suggested for SMSFs, and the risks and tax reasons they’re usually not recommended for individuals outside super - What would happen if Vanguard were to go broke, how ETF structures protect investors, and whether spreading money across multiple ETF providers actually reduces risk - How brokerage platforms like Pearler hold your investments, what happens if a broker fails, and why your ETFs don’t simply disappear if a platform shuts down If you like this episode of The Australian Finance Podcast, make sure you hit follow on Apple, Spotify, YouTube or wherever you get your podcasts. And don’t forget to send in your questions for future Q&As using the link in the show notes.

Resources for this episode - Sign up for the newsletter - Sign up for Rask Core - Buy Gemma’s book The Money Reset - Ask a question (select the Finance podcast)

Show partner resources - Join Pearler using code “RASK” for $15 of Pearler Credit - Get 50% off your first two months using PocketSmith - View Betashares range of funds

Rask resources - All services - Financial Planning - Invest with us - Access Show Notes - Ask a question DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg #finance #asx

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