Today’s email is sponsored by Global X

What we’re chatting about this week…

Do credit scores matter when you’re investing?

Aren’t these an American thing? Apparently not! In today’s Get Started Investing episode - we talk about how credit reports are used in Australia as well - playing a role in the lending process and helping determine if you’re a risky borrower. So… as an investor, it’s pretty useful to understand how they work.

Listen to the podcast to hear Alec and Bryce chat about how credit scores are calculated and what their scores are (here’s a handy link to find out where to do that). But if you’re looking to improve your score - here’s a couple of ideas:

1. Pay your bills on time: Boring, we know! But late payments can have an impact on your score, so make sure to pay your bills on time! If you’ve a cash flow issue, communicate with your billers so they are aware. If you just forget to pay - set up direct debit, so it never doesn’t go through!

2. Keep your credit applications to a minimum: Too many credit applications can also negatively impact your credit score, so only apply for credit when you need it.

3. Pay off your debts: Reducing your total debt load can improve your credit score and make it easier for you to obtain credit.

Also, remember to check your credit report regularly: this will help you identify any errors or inaccuracies that could be impacting your credit score - and let you help!

ICYMI: You’re In Good Company is interviewing Cathie Wood!

A special request today. Maddy and Sophie recently locked in an interview with none other than Cathie Wood - the American investor and founder of ARK Invest. To get the chance to interview Cathie is an absolute dream for the YIGC team, as she’s been an idol and dream guest… well, basically since the podcast started.

But Maddy and Sophie know that Cathie isn’t just their idol - she’s someone many of you look up to as well. So they’d like your help - they want to know what you’d ask Cathie if you held the mic - cause maybe, they’ll put that question to her! Jump on our contact page through the link below and let us know

What income from your investments is taxed?

We’ve been asking you what you want more information on from the past few weeks, and you’ve said you’d like to know more about the tax implications from your investment decisions.

🟨🟨🟨🟨⬜️⬜️ What fees and charges are involved in investing?

🟩🟩🟩🟩🟩🟩 Are there tax implications from investing?

It’s an emphatic yes - there definitely are tax implications from investing, and your income is counted. Don’t let that dissuade you from starting your journey of course! It’s also important to note that while you can look after your tax return all on your own, some of us choose to find excellent professional help each June 30.

So, firstly, what counts as investment income?
Basically investment income is any of the sweet gains you make from your investments. Remember, that can happen in a bunch of ways:

1. Dividends from shares (Quick refresher on dividends here)

2. Interest from your bank account

3. Rental income from property

4. Capital gains from selling investments as a profit (The ATO has a useful page here if you’ve got as many questions as we did).

You must include any and all of the above in your tax return. Doesn’t matter if you got the cash directly, or if you reinvested automatically, or it came from a bunch of different sources - you have to declare it!

There’s so much to unpack when it comes to tax and investing, so we are going to do a dedicated podcast episode with a financial adviser soon - & we’d love to know if you have any questions! Send them through via our Contact Us page. After all, we’re on this journey beside you.

But while you’re thinking of what to ask us, check out the episode Bryce and Alec recorded with Charlie Viola that we’ve dug out of the vault. He talks about franking credits, capital gains discounts and talks about exactly what is deductible.