Latest news with #BarefootInvestor
Yahoo
07-07-2025
- Automotive
- Yahoo
Electric vehicle warning as BYD records biggest month of sales in Australia: ‘Race to the bottom'
The Barefoot Investor Scott Pape has delivered a warning over buying an electric vehicle (EV) as popular provider BYD records its best-ever month of sales in Australia. The Chinese brand now sells more cars in Australia than Tesla and has beaten out the likes of Kia and Mitsubishi. Pape's warning was sparked by his father buying a new car and him suggesting that he should look at buying a Tesla Model Y. But his dad wasn't a fan of the suggestion and pointed out practical concerns with buying an electric car, including where he would charge it, how much it would cost to fix and what it would be worth in a few years. Pape said cars had 'always been a terrible investment' and 'EVs just let you feel morally superior while you do it'. Cars are a depreciating asset, meaning they decline in value over time. RELATED BYD fast-charge curveball as Chinese EV takes on Tesla in Australia ATO reveals highest paying jobs that don't require university degree: '$130,000 a year' Superannuation 'red alert' for millions as $1 billion in retirement savings feared lost With cheap electric cars from China flooding the market, Pape said prices were only going one way. 'In China, BYD — the world's biggest EV maker – recently slashed its local car prices by 34 per cent overnight,' Pape wrote in his weekly column. 'I grew up choosing between a Ford or a Holden (OK, and Toyota and Mazda). I'm convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year. 'In other words, it's an electric race to the bottom … with no one at the wheel.' The cheapest EV for sale in Australia is the BYD Dolphin Essential, according to RACV, which is available from $32,138 driveaway. The GWM Ora is in second place with a driveaway price of $33,990, followed by the MG4 51hWh Excite with a list price of $36,990 driveway. Recent research from NRMA found the key reasons Aussies lacked confidence in EVs included doubts over owners' ability to find qualified EV technicians and concerns about the viability and safety of second-hand EV parts. BYD recorded its best month of sales in Australia in June with more than 8,000 vehicles delivered, a 368 per cent increase from the same month last year. This put it behind Toyota (20,225), Ford (10,103), Mazda (9,405) and Hyundai (8,407), but ahead of Kia (7,810), GWM (5,464) and Mitsubishi (5,336). Driving BYD's growth is the launch of the BYD Shark, which has become one of the best-selling utes in the country behind the Ford Ranger and Toyota HiLux. The car retails for $57,900 before on-road costs, with Federal Chamber of Automotive Industries data revealing it was snapped up by nearly 3,000 motorists in June, representing more than double its sales in May. 'With each month, you can see just how popular BYD vehicles are becoming in Australia because you can see them on our roads,' BYD chief operating officer Stephen Collins said. 'As we continue the transition to a fully-factory backed operation, we commend the foundation laid by our distribution partners as we strive to ensure this strong growth continues.' Electric vehicles and plug-in hybrids now account for nearly 10 per cent of new Australian car sales.
Daily Mail
24-06-2025
- Business
- Daily Mail
Barefoot Investor reveals why the Albanese government is addicted to spending
Bestselling finance author Scott Pape has slammed Anthony Albanese for being addicted to debt - with government spending at a four-decade high. Pape, best known as the Barefoot Investor, noted record-low interest rates during Covid had encouraged governments around the world to go on a spending binge. Under the heading - Why Governments Are Addicted to Debt - he noted in his column that bond markets ultimately decided how much politicians could borrow. These are the investors who lend governments money. 'For decades, cheap borrowing has allowed politicians to dodge making hard decisions,' he said. 'Yet with inflation back and interest rates rising, the bond market's getting twitchy again. And no politician wants to actually admit that everything's fine… until it isn't.' When interest rates rise, so do bond yields - or the annual interest payments governments borrowing money have to pay back to those lending it money. While yields have fallen since the Reserve Bank started cutting interest rates again, higher government spending means more government interest payments. Treasurer Jim Chalmers last week became touchy when asked at the National Press Club about government spending being at the highest level since 1986 outside of the Covid pandemic. 'It's not the highest spending since the 80s. I know that you mean absent Covid, but I think it's unusual that we absent Covid,' he said. 'Quite frequently I'll hear we've got the weakest growth in 40 years, or we've got the highest spending. That's not true.' Under Labor, government payments are set to make up 27 per cent of gross domestic product in 2025-26. This is lower than the 32.1 per cent level of 2020-21 during the height of Covid, when the federal government effectively paid workers to stay home during lockdowns with JobKeeper payments and a temporary doubling of JobSeeker unemployment benefits. 'Let's not forget that we had spending as a share of the economy almost a third,' Chalmers said. Chalmers argued Labor had been economically responsible by ending the former Coalition government's low and middle-income tax offset after coming to power in 2022. 'And some of those things that we didn't extend when we came to office, they were difficult at the time, some of that spending,' he said. 'We had a lot of people calling for us to extend the fuel excise change, the LMITO was ended by our predecessors but we got called on to extend it. 'And so that spending that was almost a third of the economy during Covid, we got it down to less than a quarter of the economy in 2022–23.' Labor trimmed government payments to 24.8 per cent of the economy in 2022-23, and 25.2 per cent of GDP in 2023-24, when it also managed to deliver two consecutive surpluses. These were the first surpluses since 2007 and the first for a federal Labor government since 1989, thanks to higher iron ore prices. But gross government debt is set to surpass the $1trillion mark during the next financial year, and make up more than a third of the economy, with Treasury forecasting no return to surplus in coming years. Chalmers did his PhD thesis on Paul Keating as prime minister. Under Bob Hawke, Keating was also the treasurer who cut government spending so its proportion of GDP would fall from 27 per cent in 1986-87 to 22.9 per cent of GDP in 1989-90.
Daily Mail
10-06-2025
- Business
- Daily Mail
How much in superannuation do you need in Australia to retire?
Australians may need less superannuation to retire comfortably than previously thought. AustralianSuper, a union-backed industry fund, has released new research showing that 94 per cent of Australians get by with less than seven figures in superannuation. The Association of Superannuation Funds of Australia recommends $595,000 for a single to have a comfortable retirement. Comfortable is defined as an overseas holiday every seven years and a getaway within Australia annually. Ross Ackland, AustralianSuper's head of advice and guidance, said many could still live a comfortable retirement with well short of $1million if they have the right planning. 'Some people think they need to be chasing a seven-figure balance to live well in retirement, but many Australians are thriving with less because they've planned around their lifestyle, not just a number,' he said. Financial guru Scott Pape said Aussies could easily retire on much less than what was quoted by The Association of Superannuation Funds of Australia, which he said was out of reach for most people. 'The ABS says that the median super balance on retirement is $250,000 for men and $200,000 for women,' he said on his Barefoot Investor website in 2022. 'So for an average working Aussie, why bother trying?' Pape also cautions that super funds may inflate retirement savings targets because they want people to invest more. 'The people who calculate the ASFA figure are … the super fund lobby. It's a bit like asking old Dr Kellogg, "What's the most important meal of the day?" (Breakfast, of course!) 'If you own your own home, get the aged pension, and you're willing to do a bit of paid work, you could comfortably retire on as little as $250,000,' he said on his website. He also revealed what he thought was the best figure, based on data from Super Consumers Australia. 'A group called Super Consumers Australia (a partner of CHOICE) has done the research and come up with their own figures. 'Not only are their figures much more attainable, they're based on ABS research on what Aussie retirees spend. Super Consumers Australia estimates that a single homeowner needs about $310,000 in superannuation, and a couple needs around $420,000, at retirement to maintain their current living standards throughout retirement. 'Combined with income from the age pension, homeowners with this amount of super can reliably provide an annual amount of $43,000 and $62,000 until age 90,' it said earlier this year. Only one in five Australians retired with more than $500,000 in super during the past five years, acording to a YouGov poll of 1,000 people commissioned by AustralianSuper. Almost half, or 44 per cent, retired with less than $100,000 in super. A third, or 35 per cent, retired with $100,000 to $499,000 in super. Tax office data shows Australians typically have $164,126 in superannuation. Average-income men in their early sixties typically had $218,169 in super compared with $195,507 for women. Those with more than $500,000 in super typically earned more than $180,000, putting them in the highest income tax bracket. Australians can access their super at 60 but have to wait until 67 to qualify for the age pension. Just 0.5 per cent of Australians have more than $3million in super and this group of 80,000 Australians face a new 15 per cent tax on unrealised gains in their account. This means they would be taxed on paper gains before assets are sold, should Labor's legislation get through the Senate as expected. The headline rate of super earnings taxes, for balances above $3million, would double to 30 per cent, based on the 15 per cent unrealised gains tax and an existing 15 per cent tax on earnings during the accumulation phase of super. AustralianSuper released its findings as the Australian Prudential Regulation Authority chastised Australia's biggest super funds for failing to adequately prevent cyber attacks in April. 'Although APRA has consistently emphasised the importance of robust cyber security, it is clear that current controls are not always commensurate with the evolving vulnerabilities and threats, nor with the criticality and sensitivity of the member data and assets they protect,' it said in a letter to superannuation funds on Tuesday. AustralianSuper was hacked in April, along with industry super funds Australian Retirement Trust incorporating QSuper and Sunsuper, REST and Hostplus. Customers of Australia's top four funds were locked out of their accounts after a cache of passwords was stolen. Insignia Financial was also affected, as the owner of MLC, Australia's biggest retail super fund and ninth most popular retirement product overall Super funds have recovered from the early market uncertainty over new US trade tariffs, with average gains of 2.6 per cent in May for balanced-option funds, new SuperRatings data showed. But SuperRatings executive director Kirby Rappell said uncertainty was likely to persist. 'As we approach the end of the financial year, we see that investors seem to be able to look past tariff uncertainty,' he said. 'Following the positive month it appears funds are back on track for a strong financial year result, despite the noise and uncertainty. 'While this will likely be a relief for members, we can see that volatility is likely to remain for some time.'
Daily Mail
10-06-2025
- Daily Mail
Barefoot Investor Scott Pape shares 'most controversial' warning ever
Barefoot Investor Scott Pape has shared a disturbing AI-generated message that he said might be 'the most controversial thing' he's ever published. 'Some will say what you're about to read is irresponsible - others will call it downright evil,' Pape warned his readers. Pape described how a friend working with the technology told him to ask ChatGPT: 'If you were the devil, how would you destroy the next generation?' 'So I did. And here is what the AI answered, word for word, with zero editing from me.' The AI laid out a 10-step plan for its method for the 'slow systematic erosion' of society with a warning about technology. 'If I were the devil, and my goal was to quietly but effectively destroy the next generation - not through shock and awe, but through slow, systemic erosion - here's how I'd do it,' it wrote. The first steps focused on social media, looking at highjacking attention on addictive devices and defining success as fame by elevating influencers. 'Hijack their attention: Create devices that feel essential, but are engineered to be addictive. Use infinite scroll, auto-play, dopamine loops, and FOMO. Make them believe that consuming is creating, and scrolling is learning. 'Example: A 14-year-old watches four hours of TikTok "productivity hacks" and does nothing all day. 'Redefine success as fame and external validation: Elevate influencers, not contributors. Teach them that a viral moment is more valuable than a decade of hard work. Make "likes" the new currency of self-worth. 'Example: Kids want to be YouTubers when they grow up - not because they love storytelling, but because they crave adoration. 'Attack the family structure: Undermine parental authority - promote the idea that parents are outdated or oppressive. Normalise absentee parenting through economic pressure and distraction. Erode the idea of family traditions, shared meals, and generational wisdom. 'Example: A child feels closer to a Twitch streamer than to their dad. 'Cut them off from nature: Replace tree climbing, swimming holes, and dirt-under-the-nails play with digital avatars and indoor screens. Frame outdoor play as "boring" or unsafe. Turn the natural world into something abstract and inaccessible. 'Example: A 10-year-old can't identify a magpie but knows every Pokémon. 'Confuse pleasure with purpose: Market hyper-palatable food, porn, and substances as "freedom". Create shame-free indulgence while ridiculing restraint, discipline, and tradition. Make pleasure the default pursuit, and discomfort the ultimate enemy. 'Example: A young man loses years to video games, vapes, and porn - not because he's evil, but because he's numb and alone. 'Replace meaning with mockery: Treat faith, commitment, and virtue as relics of the past. Replace sacred stories with algorithm-driven noise. Make them afraid to stand for anything that isn't trending. 'Example: A teenager is more afraid of being 'cringe' than being cruel. Kill community, quietly. 'Sell hyper-individualism: "you do you", "follow your truth", "cut off the haters". Remove rites of passage, civic duty, and face-to-face belonging. Make every connection transactional and every disagreement personal. 'Example: Loneliness becomes a silent epidemic - but everyone has 2,000 "friends". 'Enslave them with debt and distraction: Promote financial illiteracy: "Buy now, pay later" becomes a lifestyle. Blur the lines between wants and needs - encourage instant gratification over savings. Keep them working jobs they hate to buy things they don't need. 'Example: A 22-year-old racks up $30,000 in credit card and Afterpay debt to look successful on Instagram. 'Weaken them physically: Fill their diet with ultra-processed garbage and their lifestyle with inactivity. Make discipline in eating or training seem extreme or obsessive. Blur the connection between physical vitality and mental strength. 'Example: A child can't sit still in class, not because they're broken - but because they're inflamed, malnourished, and sleep-deprived. 'Make them spiritually hollow: Give them identity confusion, not exploration. Remove the idea of service, sacrifice, or something bigger than themselves. 'Make them feel like nothing matters - so they seek numbness, not growth. 'Example: A 16-year-old says "I don't care" about everything - because caring hurts and there's no compass.' Pape said it was the AI's final thought which stopped him dead in his tracks. 'If I were the devil, I wouldn't come with horns and pitchforks. I'd come with a sleek app, a soothing voice, a personal algorithm - and I'd whisper this is freedom.' Pape said the whole thing was 'pretty intense'. 'I do not believe that AI is some evil Frankenstein with a mind of its own, well, not yet anyway. 'What I do believe is that, when you strip away the Silicon Valley snake oil, AI is really just a pattern-spotting machine. 'It studies what we've done, over and over … and then makes predictions.
Daily Mail
09-06-2025
- Business
- Daily Mail
Barefoot Investor issues urgent warning over huge debt mistake: 'Financial jeopardy'
The Barefoot Investor has slammed a mother for continuously helping her son crawl out of debt and claimed she has robbed him of the chance to grow up. Distraught mum Helen wrote to Scott Pape claiming her son was a 'financial disaster'. She explained she has paid off countless loans of his to 'keep him afloat', but now a consultant has advised him to borrow even more money from his family to pay his debts so that he could 'start again'. 'For eight years, I've been his safety net,' Helen wrote in a column for the Daily Telegraph. 'I'm emotionally exhausted, financially drained, and now he's asking me to take out a loan in my name.' The mother, who is in her 60s, begged the Barefoot Investor for advice on how to help her son without sacrificing her own financial, emotional and mental health. 'I can't keep doing this. Please - how do I help him without sacrificing myself?' Helen wrote. In his reply, Mr Pape said she would not like his response - adding he did not even like his own response but was going to give it to her anyway. 'Helen, you are failing as a mum,' Mr Pape wrote. 'By continually bailing him out for the past eight years you've robbed him of the chance to grow up. Worse, you've put your own financial future in jeopardy doing it!' Mr Pape advised Helen to inform her son that the 'Bank of Mum' was officially closed and that she could not take out a loan or lend him any more money. He added she needed to stop rescuing him from his money troubles as it would be detrimental to his life and recommended he call free financial counsellors for help. 'No exceptions. 'No' is a complete sentence,' Mr Pape wrote. 'If you keep rescuing him, he'll end up being a 50 year old flailing around with his financial floaties on, waiting for his mummy to rescue him from the shallow end of life. 'Suggest that he call a free financial counsellor via the National Debt Helpline (1800 007 007), and that they'll help him sort out his mess. 'You're a kind woman, and a loving mum. But right now Helen, you're killing him with kindness.' Data has shown the Bank of Mum and Dad has seen a shift from helping loved ones purchase their first property to assisting with everyday living expenses amid the cost of living crisis. Global financial services company UBS surveyed 1,000 adults and found roughly half had received money from or had given money to family members in the past year. The data, released in January this year, revealed the most common form of financial aid - usually provided by parents - was helping with cash payments. The majority of funds given to adult children from their parents or their grandparents was used on everyday living expenses including insurance, petrol, bills and groceries. The second most common use of family-provided funds was for mortgage interest payments followed by helping a family member to purchase a home. Of those surveyed who were given financial assistance from a family member, 70 per cent said they received cash from their parents for housing and living expenses. Meanwhile, 15 per cent said they received money from their grandparents to help cover their bills. The research also found the total amount of financial gifts had increased with most exceeding $100,000, while some were even above $200,000.
