Aussie FIRE | Financial Independence Retire Early 52. Q&A: Cashflow vs Growth: Monthly ETFs, Tax Tweaks, and Super Strategies
5 snips
Nov 21, 2025 Dave and Hayden delve into the charm and pitfalls of monthly-income ETFs, emphasizing the importance of diversification. They discuss practical tactics to establish a steady paycheck through diversified ETFs and cash buffers. The hosts demystify PAYG tax variations, offering insights on optimizing cash flow while navigating investment losses. A listener's dilemma about whether to rent or sell a former home sparks a conversation on equity concentration and capital gains tax. Finally, they share efficient super contribution strategies for partners.
AI Snips
Chapters
Transcript
Episode notes
Don’t Prioritise Monthly Payouts Over Diversification
- Chasing monthly-paying ETFs narrows choices and often reduces diversification.
- Prioritise high-quality, diversified holdings and manage payout timing with a cash buffer or planned sells.
Use Cash Buffers To Smooth Dividend Timing
- Build a cash buffer to smooth income timing rather than chasing monthly dividend funds.
- Use cash reserves, dividend top-ups or planned share sells to create a stable monthly ‘paycheck’.
Apply For PAYG Variation To Improve Cash Flow
- Apply for a PAYG variation with the ATO if you consistently receive a tax refund.
- Reduce withholding during the year to improve monthly cash flow instead of lending the government your money.