Here’s what you need to know today

• Australian Treasurer Jim Chalmers has shared Treasury modelling of Trump’s proposed policies will mean a “small reduction in our output and additional price pressures, particularly in the short term” here in Australia. Translating that, Chalmers thinks the policies may make it harder for Australian exporters to sell into the US while at the same time pushing prices up here in Australia, making it harder to get inflation back into the sustainable 2-3% range. (Capital Brief)
  
  

• Australia’s world-first social media ban for children under the age of 16 could be law by the end of the year. Opposition leader Peter Dutton has written to the Prime Minister urging him to move swiftly and promising support for the legislation. Despite Dutton’s support, it is unlikely the government will be ready to pass it with just two sitting weeks left in the year. (West Australian)
  
  

• Bitcoin has crossed US$80,000, riding momentum after Trump’s election. One SEC Commissioner who is considered a possibility to become SEC Chair under Trump, Mark Uyeda, has come out and said he wants to end the regulator’s “war” on the crypto sector. (Quartz)
  
  

• Restrictions on China purchasing advanced computer chips continue to expand. ASML has long called out the increasing restrictions on selling to China. Now TSMC has announced it is pulling back from producing advanced chips (7 nanometres and smaller) for tech companies in China. (Financial Times)
  
  

• Executives of Australian gold miner Resolute Mining have been detained by Mali’s ruling military junta. Resolute own 80% of the Syama gold mine with the Malian government owning the remaining 20%. In September, staff of US gold miner Barrick Gold were detained in a similar manner. Last year Mali, Africa’s third-largest gold producer, introduced a new mining code intended to increase local ownership and revenue. (ABC News)

What the…?

When the Paris Climate Agreement was signed in 2016, signatories agreed to try and limit global warming to 1.5 degrees Celsius above pre-industrial levels. Sadly, just 8 years later, we’ve reached that limit.

Bloomberg report that 2024 will be the hottest year on record and will come in 1.55C above pre-industrial levels. (Bloomberg)

Investing is a lifelong journey

Here’s what you can learn today.

Community Question: I’m 21 and have absolutely no knowledge regarding insurance, where do I start?

We put this question to Phil Thompson, financial adviser and founder of Skye Wealth

Starting with insurance at 21 is a smart move! You can start by understanding the basics of the 4 main types of insurance: 

1. Death cover
Death cover provides financial support to your family or dependents in the event of death or diagnosis of a terminal illness. The payment helps your family repay debts, cover funeral expenses and replace lost income. 

2. Total & Permanent Disability (TPD) Cover
If you become totally and permanently disabled and can’t work, TPD cover helps you pay off debts and medical expenses, make modifications to your home, and replace lost income. 

3. Trauma or Critical Illness cover
Trauma insurance is paid if you get a diagnosis of a serious illness like cancer, heart attack or stroke. Put the focus on recovery and getting well – an immediate payment helps meet your financial commitments and medical costs. 

4. Income Protection (or salary continuance)
This insurance protects one of your biggest assets – your income. If you’re unable to work due to illness or injury, you’ll still receive a regular income to meet your financial commitments and living expenses. 

All four of these insurances fall under the "life insurance" category because they protect you financially in the event of your death.  

In your early 20s, it's a good idea to think about getting some type of personal insurance, like income protection. While you may not have any dependents yet, you do have financial responsibilities like rent and bills, however, your may not have any need for life insurance specifically if you do not have any debt or anyone depending on your financially.  

Also keep in mind, give your age 25, your super fund will not automatically set any of this cover up on your behalf until you are age 25 years old, so it's worth considering when reviewing your finances.  

If you're feeling a bit lost, reaching out to a financial adviser can provide personalised guidance tailored to your needs and goals. Remember, it's never too early to start securing your financial future! 

Want to speak to one of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

Today’s sponsor is Australian Property Scout

Join Sammy Gordon, regular Equity Mates property expert in the studio along with his co-host Jimmy Ibrahim and the rest of the Australian Property Scout experts for the debut episode of the “Myth Busting Series”. 

Our panel of experts discuss the “Property Bubble”, its relevance to the Australian market, and the impacts of APRA, infrastructure, migration, and market growth.

Tune in to this episode on the Scouting Australia Podcast on all your favourite listening platforms. 

Want more Equity Mates?