Why yesterday’s investment strategies won’t build tomorrow’s wealth

In a world evolving at lightning speed, standing still is the riskiest move of all.

Many families and businesses are relying on outdated investment ideas – but the game has changed and keeps changing fast. Just because a strategy worked in the past doesn’t mean it will build and protect your wealth today.

What's dangerous is not to evolve.

Jeff Bezos - Amazon founder

A couple of years ago if you asked me about the state of the current market or where we were headed, I would have struggled to give a clear answer. I honestly didn't know. And it frustrated me. That was until my co-founder David Coomber taught me some lessons about market cycles.

Let's look quickly at a few of these areas that took me two years to digest.

1. Debt is changing the rules

Debt levels across the world are at all-time highs. Here in Australia, our household debt-to-income ratio is almost top of the charts globally. This puts real pressure on the financial health of our families and businesses. And traditionally safe investments like property may no longer be appropriate, affordable or even safe investment options to get ahead right now.

Action: Sit down with fresh eyes and look at your investment and debt strategy. Make sure your plan is built to handle higher interest rates and inflation - and not just relying on what used to work.

2. Being open to change

While economic cycles seem more unpredictable and mystical than ever - scratch beneath the surface and a pattern begins to emerge. History shows there's a rhythm to the booms and busts of the past - and where things are at right now.

Waves of government stimulus (money printing), rising debt levels and periods of FOMO speculation by the masses over the last fifteen years have helped push global share and property markets to new heights. By the early 2020's, household debt had climbed to record levels, especially here in Australia.

So this tells me that the old rules of diversification and 'set and forget' investing are about to get tested. But this isn’t the first time we’ve been here. We’re not heading into the unknown; we’re just at the next chapter in a cycle we’ve seen before. What’s different now is how fast things are shifting, and how many moving parts there are. Doing nothing could undo what you’ve built. But families and businesses who stay proactive, ask the right questions, and remain open to change are better placed to protect and grow their wealth.

Action: Don’t assume what worked in the past will work now. Stay engaged and be open to new strategies in the current era.

3. Structure matters more than ever

The way wealth is managed, protected, and passed on is changing - and the rules around tax and financial regulation aren’t getting any simpler. Without the right setup, families can quietly lose money to unnecessary tax, excessive fees, legal disputes or simply to poor communication between advisers. It’s not just about having good professionals around you - it’s about making sure they’re all on the same page, connected and working together for you.

Action: Bring your advisers together for a proper review. This is the chance to close gaps and find new opportunities to strengthen how your finances are structured.

Conclusion

The world has changed - and so has the way we need to manage our money. What worked in the past might not work now. It's a good time to pause, check in, and make sure your plan still makes sense for where things are heading.

More soon.