For many affluent and high-net-worth individuals, particularly those approaching or enjoying retirement, the idea of creating a 'living legacy'—sharing wealth and making a difference while you're here to see it—is increasingly appealing. Unlike traditional estate planning, a living legacy empowers you to witness the impact of your generosity firsthand, bringing significant emotional and financial benefits.

At Arrow Private Wealth, we often assist clients in exploring and implementing living legacy strategies tailored to their unique goals and circumstances.

In this episode of Arrow Insights, Ryan Synnot and Peter Leggett explore the growing role of the Bank of Mum and Dad—a phenomenon where parents assist their children in buying property. With housing affordability becoming an increasing challenge, more families are asking: Should we help our children get into the market earlier? What are the financial and legal risks? And how can we ensure fairness among siblings?

Equity market drawdowns are an inherent part of investing in shares. These temporary declines in the value of shares indices can be disconcerting, but they are a natural and common occurrence in finance. Understanding what drawdowns are, their causes, and how to navigate them is essential for any investor looking to succeed in the equity market.

In this episode of Arrow Insights, Mark O’Leary and Kreston Leggett explore the growing importance of intergenerational wealth transfer and the strategies families can use to invest for their children and grandchildren. With rising education costs, an increasingly challenging property market, and shifting financial landscapes, more affluent families are looking for structured ways to provide long-term financial support.

Self-Managed Superannuation Funds (SMSFs) are often positioned as the ultimate vehicle for retirement savings, offering control, flexibility, and tax advantages. However, they are not a one-size-fits-all solution. While an SMSF can be a powerful tool for the right investor, it can also be a costly and complex burden for others.

From a wealth planning perspective, the question isn’t just “Can I have an SMSF?” but “Should I have an SMSF?”

The Rule of 72 is a simple and powerful tool that helps investors understand how long it takes for an investment to double. To estimate this, simply divide 72 by the annual return. For example, if an investment earns a 10% annual return, it will double in 7.2 years. While this is a useful rule of thumb, there are important nuances to consider when applying it to real-world investing.

Investing is often seen as a rational, numbers-driven exercise, but in reality, emotions play a significant role in decision-making. Fear, greed, overconfidence, and herd mentality can all lead to choices that undermine long-term returns. As advisers, we see firsthand how psychological biases can cause investors to deviate from their strategy—especially during periods of political or economic uncertainty.

The final quarter of 2024 delivered tamer performance across portfolios, rounding out a strong year for investment performance. It was a choppy quarter, as strong returns in November offset declines and flat returns in December and October. The quarter was eventful, with significant developments such as the US Presidential election and interest rate cuts from the Federal Reserve.

From 1 July 2025, new rules under the Aged Care Act will significantly impact the cost of residential aged care in Australia. These reforms aim to create a sustainable aged care system while ensuring that government support is directed to those with the greatest financial need. While these changes address long-standing funding issues, they also introduce complexities for families planning aged care for themselves or loved ones.

Providing for the education of your children or grandchildren is one of the most meaningful financial gifts you can offer. In Australia, education costs continue to rise, particularly when factoring in private schooling, extracurricular activities, uniforms, and technology. For example, the cost of educating a child born today at a private school is likely to exceed $200,000 for primary and secondary education. In some instances, the total cost can climb significantly higher, reaching several hundred thousand dollars beyond this estimate.

We continuously strive to provide insightful investment strategies that strengthen portfolio resilience and leverage opportunities in global markets. Thanks to their distinctive characteristics and timely appeal, UK equities have become a key area of interest. Below, we unpack what makes the UK equity market unique, and why it stands out among global peers.

We are thrilled to announce that Peter Leggett and our team-based approach have once again been recognised in the Barron's Top 150 Financial Advisers list for 2024. This marks the third consecutive year of being honoured, reflecting our unwavering commitment to delivering exceptional service and providing innovative solutions tailored to our clients' evolving needs.

Life is full of uncertainties. While we cannot predict what the future holds, we can plan for it. Personal insurance—encompassing life insurance, total and permanent disability (TPD) insurance, trauma insurance, and income protection—is an essential part of any comprehensive financial plan. Yet, many Australians remain underinsured or uninsured, often underestimating the financial and emotional toll an unforeseen event can have on themselves and their families.

In this episode of Arrow Insights, Mark O'Leary and Mathew Ashton discuss the crucial role insurance plays in safeguarding the wealth of business owners and affluent families. Despite the common assumption that wealth eliminates the need for insurance, they explain why continuity strategies remain vital. From securing business assets to protecting family wealth, insurance can ensure that assets aren't liquidated prematurely due to unforeseen circumstances like death or disability.

The third quarter of 2024 delivered strong performance across portfolios, with solid contributions from various asset classes. It was a volatile quarter, marked by sharp declines in early August, followed by a steady recovery through the remainder of the period. The quarter was eventful, with significant developments such as the Federal Reserve’s first expansionary move since 2020 and policy tightening from the Bank of Japan, which pushed equity market volatility to its highest level since March 2020.

As parents or grandparents, you have a unique opportunity to set up a secure financial future for your children or grandchildren. Investing for them can provide a substantial head start, whether it’s for education, property, or simply helping them navigate adult life. However, with numerous investment options and Australian tax laws to consider, it’s essential to make informed decisions that align with your goals and the financial well-being of your loved ones.

In this episode of Arrow Insights, Mathew Ashton and Peter Leggett delve into the concept of "giving while living" and the evolving approach to family succession planning. As the Baby Boomer generation faces decisions around wealth transfer, they discuss the benefits of creating a living legacy—helping family members and philanthropic causes during one’s lifetime. Peter highlights how this modern approach allows individuals to experience the joy of giving while actively shaping their legacy.

With falling interest rates, term deposit yields are set to decline, posing reinvestment risk for income-seeking investors. Alternatives like corporate bonds, private debt, and structured credit can offer higher returns. Arrow Private Wealth’s Lifestyle and Liquidity Portfolios provide diversified solutions to balance risk and enhance income generation.