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Glen James is Back to Answer Your Investing Questions · She's On The Money

0:00
Speaker 1: Hello.
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Speaker 2: My name's Satasha Nabananga Bamblet. I'm a proud or the
0:05
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
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Speaker 2: get started on She's on the Money podcast, I would
0:11
Speaker 2: like to acknowledge the traditional custodians of the land of
0:14
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
0:18
Speaker 2: the elders, the ancestors and the next generation coming through
0:23
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
0:27
Speaker 2: the storytelling of you to make a difference for today
0:30
Speaker 2: and lasting impactful tomorrow.
0:33
Speaker 1: Let's get into it. She's on the Money, She's on
0:36
Speaker 1: the Money. Hello, and welcome to She's on the Money,
1:00
Speaker 1: the podcast that's here to show you investing isn't just
1:02
Speaker 1: for the rich, It's for you too. Now, what happens
1:06
Speaker 1: when you get two retired financial advisors in a room together.
1:09
Speaker 1: It's not a joke. Well, it actually turns out they
1:12
Speaker 1: can't not talk about investing. So we decided to hand
1:15
Speaker 1: control of this episode over to you, our beautiful community,
1:19
Speaker 1: to find out the biggest investing questions that are currently
1:22
Speaker 1: on your mind. I'm Victoria Devine and of course I'm
1:26
Speaker 1: one of the two retired financial advisors because in the
1:30
Speaker 1: room today also joining us mister Glenn James.
1:34
Speaker 3: Hello VD, and hello to all your listeners.
1:37
Speaker 1: I'm so excited, Glenn, before we dive further in, I
1:40
Speaker 1: feel like a lot of the og she's on the
1:43
Speaker 1: money listeners are gonna know exactly who you are. Your dad,
1:47
Speaker 1: I'm mum. But for those of you who are maybe
1:50
Speaker 1: new to the pod, who are you, Glenn? How'd you
1:52
Speaker 1: get on the show?
1:53
Speaker 3: Actually I read a review once yeah, and someone had
1:57
Speaker 3: to go at you have me on the podcast?
2:01
Speaker 1: I would too, honestly paid me so much money to
2:05
Speaker 1: get in this room. It's priceless, honestly double what you
2:08
Speaker 1: paid last.
2:09
Speaker 3: Time, exactly. I've known VD for many years. Unlucky we
2:12
Speaker 3: were on the financial advice scene. Kind of still are.
2:15
Speaker 3: In Australia. I run a podcast called Money, Money, Money.
2:19
Speaker 3: You probably know it as My Millennial Money, but I
2:21
Speaker 3: changed the name. It was Millennials. It's not cool anymore.
2:25
Speaker 3: It was in twenty eighteen.
2:26
Speaker 1: It's not. I'm learning that I'm actually very uncool. And
2:29
Speaker 1: I was telling you just before that one of the
2:31
Speaker 1: people in my team has said, Victoria Devine, if you
2:33
Speaker 1: say slate again you're out. That's very millennial, canceled totally.
2:37
Speaker 3: And we are talking about Sigma pharmaceuticals today.
2:41
Speaker 1: We are, and I'm so excited.
2:43
Speaker 3: That's the word, right.
2:44
Speaker 1: Yeahs POTENTI Sigma Sigma and we got to say Diva
2:48
Speaker 1: instead of slack there. Yeah, absolutely. And they do not
2:52
Speaker 1: wear ankle socks, which you're not today. So I'm actually
2:55
Speaker 1: quite proud of you.
2:56
Speaker 3: I don't wear ankle socks.
2:57
Speaker 1: Yeah, because you're cool.
2:59
Speaker 3: Not heapes. But yeah, So we love to talk about money.
3:02
Speaker 3: A lot of my listeners are also listeners of your podcast,
3:05
Speaker 3: and there's great overlap with our content. We both want
3:09
Speaker 3: good things for good people.
3:12
Speaker 1: I like it well, Glenn. Our community delivered. They did
3:15
Speaker 1: not disappoint. We've got questions about everything, some of them
3:19
Speaker 1: I had to remove, but questions from how to actually
3:23
Speaker 1: invest regularly without getting stung by additional fees, like at
3:27
Speaker 1: what point does brokerage kick in to figuring out if
3:30
Speaker 1: your portfolio is actually balanced? What does that even mean?
3:33
Speaker 1: And we're tackling the age old question Glenn of when
3:37
Speaker 1: do you know it's time to actually change your strategy.
3:40
Speaker 1: Plus we've got some spicy discussions on whether you should
3:43
Speaker 1: invest jointly with your partner, what to look for in
3:46
Speaker 1: a tech ETF, and of course all the buzz that
3:49
Speaker 1: is currently surrounding chemist warehouse. Now, if you've ever stared
3:54
Speaker 1: at your portfolio and have thought am I actually doing
3:57
Speaker 1: this right? What to stick around? Because we're about to
4:00
Speaker 1: break all of it down for you? All right, Glenn,
4:03
Speaker 1: let's just dive straight in. Our first community member said
4:07
Speaker 1: Glenn Victoria. I want to invest regularly, but I'm so
4:10
Speaker 1: worried about racking up face. What is the best way
4:13
Speaker 1: to time my investments so that I keep costs low
4:16
Speaker 1: without sacrificing consistency.
4:18
Speaker 3: It's a good question, and it's a valid argument in
4:22
Speaker 3: every area of our life. I have a car, A
4:26
Speaker 3: costs to run that car, but I get the benefits
4:28
Speaker 3: for having that cost in my life. It's no different
4:32
Speaker 3: with when we invest. We may need to pay for
4:36
Speaker 3: costs to do the transaction. We may need to pay
4:38
Speaker 3: costs to have a professional if we're going down that road.
4:43
Speaker 3: So we can't remove costs from our life. But I
4:45
Speaker 3: think it's important to understand the costs and make a
4:49
Speaker 3: judgment call. I will say, when we get started with investing,
4:55
Speaker 3: you know you've worked with Sharess. There's plenty of investing
4:59
Speaker 3: apps that are very low cost relative to the money
5:04
Speaker 3: that you put in. There's an app Superhero. I think
5:06
Speaker 3: they charge three dollars per trade for a GTS deal,
5:10
Speaker 3: which at the end of the day, it's the cost
5:13
Speaker 3: of doing business if you want to any invest And
5:16
Speaker 3: we shouldn't be dictating our investing strategy by a tax
5:20
Speaker 3: outcome by investing fees. Now there is a pendulum that
5:23
Speaker 3: swings if they're like, oh, if you invest one hundred dollars,
5:26
Speaker 3: there's fifty dollars in fees. Well, no, we're not doing that.
5:29
Speaker 3: But the winning point here is you are getting started,
5:32
Speaker 3: you are investing. And this is a crazy kind of
5:36
Speaker 3: comment that flies in the face with some money community
5:40
Speaker 3: members out there who produce money content. There comes a
5:44
Speaker 3: point in your financial life where you can't expense, hack
5:50
Speaker 3: or reduce costs in order to get to financial freedom.
5:55
Speaker 3: But there's only so much you can do, so don't
5:58
Speaker 3: stress too much. Any of the big type of apps
6:01
Speaker 3: that you've heard of, I'm confident to say that, and
6:05
Speaker 3: this is a broad statement and.
6:07
Speaker 1: With a broad brush general only.
6:11
Speaker 3: Any of the big players that you see in Facebook
6:14
Speaker 3: groups sponsored podcasts, they're not going to be unscrupulous, and
6:20
Speaker 3: particularly I know UVD and for me on my podcast,
6:24
Speaker 3: we don't work with brands that we think aren't good
6:28
Speaker 3: on balance for a lot.
6:29
Speaker 1: Of people, Like, if I am working with somebody, you
6:33
Speaker 1: can guarantee that I would use them personally, Like it
6:36
Speaker 1: doesn't mean I am because there's so many different players
6:40
Speaker 1: in the market, And like, if I'm working with a
6:42
Speaker 1: bank but I already have my banking set up with one,
6:44
Speaker 1: I'm not going to change to the other. But I
6:46
Speaker 1: wouldn't have an issue doing so. And I think that's
6:48
Speaker 1: a really important point to remember because both you and
6:51
Speaker 1: I we were actually having this beautiful conversation before we
6:54
Speaker 1: started recording. We're talking about brands like that we'd recently
6:58
Speaker 1: said no to, and we'd never just throw brands under
7:00
Speaker 1: the bus. I'm sorry there's no tea there, but like
7:02
Speaker 1: just oh yeah, actually yeah, no, we're not working with
7:06
Speaker 1: anybody now pay later as that is all right. So, like,
7:10
Speaker 1: I mean more aligned brands, but there are some that
7:13
Speaker 1: both of us are like absolutely not, Like either we
7:16
Speaker 1: don't like their management teams, or we don't like their structure,
7:19
Speaker 1: or we don't like their PDS. So, like, there have
7:21
Speaker 1: been multiple times that I have been like, your product is beautiful,
7:24
Speaker 1: My community adore this product, and I would love to
7:27
Speaker 1: support you, but your PDS says some things in there
7:31
Speaker 1: that I'm just not comfortable with, and like, I would
7:33
Speaker 1: never want just one person in my community to be
7:36
Speaker 1: tripped by those So.
7:37
Speaker 3: And I think it's a good point you make, Like
7:40
Speaker 3: we're talking about product here and costs in the money world,
7:46
Speaker 3: and there's a question we maybe can go to that
7:48
Speaker 3: question now as I produce your.
7:49
Speaker 1: Podcast on this You can do whatever you want, we can.
7:52
Speaker 3: We need to talk about strategy first, and I'm a
7:56
Speaker 3: bit basic, So I like to use analogies to that
8:00
Speaker 3: car analogy where we buy a car and we have
8:04
Speaker 3: to pay on road costs and fuel before we worry
8:08
Speaker 3: about should I buy a car yes or no? Because
8:11
Speaker 3: there's fees involved. Let's go back. Okay, you need a car.
8:15
Speaker 3: Do you need something that's a compact suv? Lucy's in
8:19
Speaker 3: the studio with us today, so throw Lucy in the
8:22
Speaker 3: back of Do we need a little hatchback to zip
8:25
Speaker 3: around town? We can't get an electric car because I've
8:28
Speaker 3: got nowhere to charge it. Do I need a Prato
8:31
Speaker 3: because we're doing an overland tour with the family. We
8:35
Speaker 3: have to work out the strategy for the car first,
8:37
Speaker 3: and that is I've nailed my strategy down to I
8:40
Speaker 3: want to compact suv. I'm going to get a hybrid
8:44
Speaker 3: one that's looking like a RAB four on balance whatever.
8:49
Speaker 3: So okay, awesome, Now we know our strategy. Then we
8:52
Speaker 3: can kind of dial in and look in that strategy.
8:55
Speaker 3: We know a RAV four hybrid will suit our needs. Okay,
8:59
Speaker 3: can't afford the high We'll still get the RAB four
9:02
Speaker 3: of like a blue one. Can't find a secondhand blue one,
9:05
Speaker 3: I'm going to settle for a white one because on balance,
9:09
Speaker 3: that white RAB four still meets.
9:12
Speaker 1: All of the criteria, all the needs.
9:14
Speaker 3: Yeah.
9:14
Speaker 1: So, and there are things that are nice to have, right, Yeah,
9:19
Speaker 1: I agree. And I think when we're talking about investing regularly,
9:22
Speaker 1: because you and I both on our podcasts say you
9:25
Speaker 1: need to be regularly and consistently investing, but also some
9:29
Speaker 1: of us just don't have the cash to be investing
9:33
Speaker 1: large sums of money. And at that point you might
9:36
Speaker 1: be a little bit confused because you're like, but Victoria,
9:38
Speaker 1: you talk about dollar cost averaging and the importance of
9:41
Speaker 1: consistently being in the market. But then I also I
9:44
Speaker 1: am going to tell you, if you are investing fifty
9:47
Speaker 1: dollars a month and then you have your brokerage feet
9:49
Speaker 1: on top of that, perhaps that's actually a bit detrimental
9:53
Speaker 1: because yes, you're dollar cost averaging, but then it's costing
9:55
Speaker 1: you more to get into the market. We need to go, Okay, well,
9:59
Speaker 1: if my buddy for investing is fifty dollars a month,
10:03
Speaker 1: perhaps I actually invest maybe every three months and make
10:08
Speaker 1: the most of brokerage. But the important thing here is
10:10
Speaker 1: that every single month you're still putting that money to
10:13
Speaker 1: the side. You might not actually make that investment transaction
10:17
Speaker 1: until you have one hundred and fifty dollars based on
10:20
Speaker 1: the maths that you've decided. All right, I'm happy to
10:23
Speaker 1: spend that, you know, three dollars in brokerage because it's
10:26
Speaker 1: a larger sum of money. Therefore it's a smaller percentage
10:29
Speaker 1: of the overall investment.
10:31
Speaker 3: I like to tell people have a strategy, however small.
10:35
Speaker 3: So you've just said to me your strategy big picture,
10:39
Speaker 3: I want to invest for my future. I want to
10:42
Speaker 3: live on less mode, I earn and invest the rest
10:45
Speaker 3: that's your strategy. Okay, I've got fifty dollars a week
10:48
Speaker 3: to invest as part of my strategy. Awesome. Then what
10:52
Speaker 3: you've done, You've said, okay, fifty dollars a week investing.
10:56
Speaker 3: If I go to a traditional broker like your com set,
11:00
Speaker 3: your NAB trade, they may charge nineteen dollars per trade.
11:06
Speaker 1: And I think that that's where people get a little
11:08
Speaker 1: bit caught up in like which is the best investment platform,
11:11
Speaker 1: and it's like, well, there's actually one that's is your strategy.
11:13
Speaker 1: There's actually no such thing because like someone could say
11:16
Speaker 1: it's com sec and then the reality of that situation
11:19
Speaker 1: is yeah for them, yeah, because they're happy to spend
11:23
Speaker 1: nineteen dollars a trade. And that works because you didn't
11:27
Speaker 1: realize they're investing four thousand dollars a month and that
11:30
Speaker 1: nineteen dollars is actually such a small percentage. But they've
11:32
Speaker 1: made a recommendation to somebody investing fifty dollars a month.
11:36
Speaker 1: Can you imagine how much your profit is going to
11:39
Speaker 1: be eaten away if your trade is nineteen dollars but
11:42
Speaker 1: your investment is fifty dollars every month, Like that is
11:45
Speaker 1: detrimental to you creating wealth.
11:48
Speaker 3: Yeah, so strategy always comes first. Then we look as
11:52
Speaker 3: part of the strategy potentially ownership structure. There's a question
11:56
Speaker 3: there about joint accounts.
11:57
Speaker 1: We can perving on my list. I didn't give you
11:59
Speaker 1: a list. How do you know what's on my list?
12:01
Speaker 1: Emma showed you and as our producer, and she's too
12:04
Speaker 1: organized for me.
12:05
Speaker 3: Strategy, ownership structure, product, which is the investment app or play?
12:12
Speaker 1: What are we actually investing on? Then we can talk
12:15
Speaker 1: about ETFs or we can talk about the actual investment,
12:19
Speaker 1: which is actually where this leads. So I've got two questions.
12:22
Speaker 1: And one of our community members said, Hey, guys, I'm
12:25
Speaker 1: trying to build my portfolio, but I actually feel like
12:27
Speaker 1: I've just plucked the percentages out of thin air. How
12:31
Speaker 1: do I actually work out the right balance for your investments?
12:35
Speaker 1: Because like, let's say we've picked our product and we
12:37
Speaker 1: are on an investing platform, and now it's time to
12:40
Speaker 1: pick our actual investments that we are putting money into. Glenn,
12:44
Speaker 1: let's start with a round number that I feel like
12:47
Speaker 1: a lot of our community use as an example. It
12:49
Speaker 1: doesn't mean you have to start with that because on
12:51
Speaker 1: a lot of investing platforms you can invest with as
12:54
Speaker 1: little as one cent. But let's say you've got a
12:57
Speaker 1: thousand dollars, Glenn, because I feel like that's a sturdy
13:00
Speaker 1: follow your beginning.
13:02
Speaker 3: Can we do ten thousand?
13:03
Speaker 1: We can do ten thousand? Yeah, you rich Riach, I
13:06
Speaker 1: like it.
13:06
Speaker 3: I was worried you're going to say, let's start with
13:09
Speaker 3: nine and twenty dollars.
13:10
Speaker 1: Oh no, we only work in round numbers because I
13:12
Speaker 1: need to lull my community into thinking I'm actually good
13:15
Speaker 1: at maths, and I can only work with round numbers
13:18
Speaker 1: in my head. So let's do ten thousand dollars. How
13:21
Speaker 1: do we then go? All right, well, how am I
13:23
Speaker 1: balancing this?
13:24
Speaker 3: Like?
13:25
Speaker 1: Am I doing half half? Am I doing twenty five
13:27
Speaker 1: percent of each? What's that look like?
13:29
Speaker 3: So? I love everything that we do in the money world.
13:34
Speaker 3: We do these podcast career. I love that we talk
13:37
Speaker 3: about investing the problem that we get online and whatever
13:43
Speaker 3: industry you're in. So we're in the money industry, if
13:46
Speaker 3: you're in the health industry, if you're in the fitness industry,
13:50
Speaker 3: if you're in the butcher baker, candlestick maker industry. When
13:53
Speaker 3: stuff gets online, the top line vibe of all that
13:58
Speaker 3: we do online is awesome. We want people to invest
14:02
Speaker 3: for the future, stunning. The problem then sets in when
14:06
Speaker 3: we get down to other levels with different content creators
14:10
Speaker 3: is the nuance and people will get dogged on a
14:15
Speaker 3: point that doesn't make sense to get chess other people
14:20
Speaker 3: chest sponsorships one of them. So there's a school of
14:24
Speaker 3: thought where we get questions like this. People come in
14:28
Speaker 3: listen to She's on the Money. I listen to your
14:31
Speaker 3: podcast sometimes, why we we ack in?
14:33
Speaker 1: Do you miss me? And you're like, I need to
14:35
Speaker 1: give vd's voice. Yeah, I hope you're listening to the
14:38
Speaker 1: Deep Dive so that you can learn as well. Yeah, fantastic.
14:42
Speaker 3: So we get all this information and we're like, I've
14:45
Speaker 3: got to get started investing, and I'm new to the
14:46
Speaker 3: Facebook group. Someone has just said what percentage allication do
14:49
Speaker 3: I need? How do I build my portfolio? And I'm
14:52
Speaker 3: offensive and I get canceled every other week. There's a
14:56
Speaker 3: train of thought to say, with respect and care that
14:59
Speaker 3: if you don't quite know what percentages to make up
15:04
Speaker 3: your portfolio, how can you know how to manage a portfolio? Ongoing? Okay,
15:10
Speaker 3: so there's that.
15:12
Speaker 1: I have a whole investing masterclass room, lease do that. Yeah,
15:14
Speaker 1: But also we need to answer the question on the
15:17
Speaker 1: podcast because otherwise we gate keeping exactly.
15:20
Speaker 3: So that being said, you've got some options there, we
15:25
Speaker 3: do the portfolio in a box, your ETF. That's the
15:28
Speaker 3: one stop shop. So I focus on being good at
15:31
Speaker 3: my work. I've got my fifty dollars a week and
15:34
Speaker 3: I'm put into that and get on with my life.
15:36
Speaker 3: Then we go to the next step, which your lovely
15:38
Speaker 3: question is written in. I want to build a portfolio.
15:41
Speaker 3: I actually have learned about investing. I know that I
15:44
Speaker 3: can buy a single ETF with Australian Shares awesome. I
15:48
Speaker 3: know I can get an ETF with just American or
15:51
Speaker 3: just Tech awesome. So the question is now, if you
15:53
Speaker 3: want to go down that road and have a bit
15:55
Speaker 3: of a DIY, sure, what percentages do we use? Aha,
16:00
Speaker 3: I've got an answer.
16:01
Speaker 1: Don't know if it's the best that your risk profile.
16:03
Speaker 3: It is, But I'm talking more simplistically. If you look
16:08
Speaker 3: into your superannuation account and have a look at index
16:11
Speaker 3: balanced option with any major superfund, they will show you
16:15
Speaker 3: what their research says is a good balancing their portfolio. Yeah,
16:19
Speaker 3: there might go yet thirty five percent International, twenty five
16:22
Speaker 3: percent Australian and a bit of property.
16:26
Speaker 1: You could mirror that a cold restar profile. And that's
16:29
Speaker 1: actually something that in my investing master class I teach
16:32
Speaker 1: because it's like you have your risk profile and you
16:35
Speaker 1: would know when you do this with clients, Glen, it
16:37
Speaker 1: comes out with a beautiful pie chart. And I love
16:39
Speaker 1: to talk about pie charts because like I'm a visual learner,
16:42
Speaker 1: and we know that this amount should be shared, this
16:45
Speaker 1: amount should be property, this amount of cash, and maybe
16:47
Speaker 1: some like fixed interest assets, and I want that, but
16:50
Speaker 1: I want it just for my share portfolio. And one
16:53
Speaker 1: of the best ways to do that is to look
16:54
Speaker 1: at superanuation breakdowns of what a low risk portfolio balance
16:59
Speaker 1: putfall or a high growth portfolio is. And you will
17:02
Speaker 1: find more often than not, and this is a broadbrush
17:05
Speaker 1: statement again that if we look at a growth portfolio,
17:10
Speaker 1: because most of my community are growth investors from our research,
17:14
Speaker 1: you look at it and it goes all right, well,
17:16
Speaker 1: forty five percent international assets, fifty percent Australian assets, and
17:21
Speaker 1: then you might have five percent of like bonds or cash,
17:25
Speaker 1: and so you go, all right, am I comfortable with that?
17:28
Speaker 1: Does that suit me? And we're not saying that that would,
17:30
Speaker 1: but it's a good example. All right, I'm going to
17:33
Speaker 1: now either build that out with individual shares and I'm
17:36
Speaker 1: going to take of my ten thousand dollars four and
17:38
Speaker 1: a half thousand dollars of that, and I'm buying international assets.
17:42
Speaker 1: Is that an international ETF? Is that international direct assets?
17:47
Speaker 1: Keep in mind, if it is ever international, you will
17:50
Speaker 1: never own it directly. I have an international ETF to
17:54
Speaker 1: be clear. And then you've got your fifty percent. You
17:56
Speaker 1: could build that out with maybe like six or eight direction,
18:00
Speaker 1: or you could pick an ETF that makes sense to you.
18:02
Speaker 1: And I would say most people in our community, from
18:05
Speaker 1: our research, pick two different ETFs and then they might
18:08
Speaker 1: pick a bond. They might pick to keep a little
18:11
Speaker 1: bit of cash. And we always say, and financial advisors
18:15
Speaker 1: will tell you that keeping cash in your portfolio is important,
18:20
Speaker 1: not because it's not invested and it's not working, but
18:23
Speaker 1: like you're going to have the ability to rebalance whenever
18:27
Speaker 1: you need to. So with your weekly or monthly contributions,
18:30
Speaker 1: you'll be contributing fantastic, but one is going to grow
18:34
Speaker 1: more than the other, and you might need to tip
18:36
Speaker 1: a little bit of cash here or there to keep
18:38
Speaker 1: that balance and so that's what we mean when we
18:41
Speaker 1: say building a portfolio, or that's what we mean when
18:44
Speaker 1: we talk about balancing. And I just get so passionate
18:49
Speaker 1: about that because I'm like, I can show you, like
18:52
Speaker 1: I need to sit you down and give you examples,
18:54
Speaker 1: because I'm going to give you this example, and it's
18:56
Speaker 1: going to be really constructive, but at night, not fit you.
19:00
Speaker 1: You need to go back and do the work to
19:02
Speaker 1: get the outcome. There's actually no hey, here's actually the answer.
19:06
Speaker 3: So I think you've got your investing master class.
19:10
Speaker 1: I do.
19:11
Speaker 3: I would honestly say, and this is the best thing
19:13
Speaker 3: about investing. We can spend a whole hour talking about
19:16
Speaker 3: one question. If you are getting started, I believe the
19:20
Speaker 3: best and the first investment you should make is in
19:24
Speaker 3: your own education and understanding one hundred You're investing master class.
19:28
Speaker 3: It's under four hundred dollars.
19:30
Speaker 1: That's a money win.
19:31
Speaker 3: I would honestly say, invest in the master class, do
19:36
Speaker 3: the time, learn, then start your investing. In fact, I
19:42
Speaker 3: will to anyone who's on my Instagram that's going to
19:47
Speaker 3: look at maybe some of these clips, I'm going to
19:50
Speaker 3: donate three master classes.
19:52
Speaker 1: Oh no, I'm going to do that. To you and
19:54
Speaker 1: then you can give them back or whatever.
19:56
Speaker 3: I want to give away some masterclass, I will pay
19:59
Speaker 3: with my own money, okay, because I believe we need
20:02
Speaker 3: to understand first before we invest. Now, on that school
20:06
Speaker 3: of thought of whether we build our own portfolio, we
20:10
Speaker 3: do tweaks. We need to understand and work out whether
20:14
Speaker 3: we are a set and forget investor or we want
20:17
Speaker 3: to dabble and tweak. I would say I'm more of
20:20
Speaker 3: a set and forget investor. There is a disclosure here.
20:26
Speaker 3: Victoria and I are licensed by a company and they've
20:29
Speaker 3: got an investment platform called live Sharper Invest. They have
20:34
Speaker 3: not paid for me to say this.
20:35
Speaker 1: No, it's just a good pot.
20:36
Speaker 3: I did a full deep dive on my show.
20:40
Speaker 1: And we can link that.
20:41
Speaker 3: Yeah, we'll link it in the show notes, so you
20:44
Speaker 3: can go to the live shurper invest website. They've got
20:47
Speaker 3: all the different portfolios so it can be like higher growth,
20:51
Speaker 3: growth balanced, and you can see all the ETFs that
20:56
Speaker 3: they invest in and the percentages. It's literally free, publicly
21:02
Speaker 3: available information now and I love that.
21:05
Speaker 1: They do that one because transparent kings, but also I
21:10
Speaker 1: just love that they're like, no, we back ourselves, so
21:12
Speaker 1: much that you could go do this yourself or we
21:14
Speaker 1: could manage it for you. Diva, is that the right
21:18
Speaker 1: slag sigma shibbitty skibby gibbity gosh skibbity toilet.
21:24
Speaker 3: Is not aging well. So the thing is in the
21:29
Speaker 3: deep dive I did with Vince. We did a campfire
21:31
Speaker 3: chat podcast the other day.
21:32
Speaker 1: I lit into those I won't Yeah, so it wasn't
21:36
Speaker 1: for me because I listened to it on two time
21:38
Speaker 1: speed because both of you talk like snails.
21:41
Speaker 3: It's that millennial pause.
21:43
Speaker 1: Yeah, but like the pause happens after every word. So
21:46
Speaker 1: if you're going to listen to Glenn's content, that's fantastic.
21:48
Speaker 1: It's really good content speed.
21:49
Speaker 3: Now, the thing is you can go to a super
21:53
Speaker 3: fun You can go to life share for invest and
21:56
Speaker 3: look at the assets and the asset allocation, but what
21:59
Speaker 3: if something changed is in the portfolio. You need to
22:01
Speaker 3: be on top of that. We talked about one of
22:04
Speaker 3: the Aussie equity funds. They made a change to a
22:06
Speaker 3: different manager. You just have to be on top of it.
22:09
Speaker 3: So check out live Share to invest again. I'm personally
22:13
Speaker 3: going to be using that in my own money because
22:17
Speaker 3: I was a client then I started super fund and
22:19
Speaker 3: I'm now going to investing that in my superfund.
22:22
Speaker 1: So that's exciting.
22:24
Speaker 3: Yeah, I'm a big believer because of the transparency. I'm
22:27
Speaker 3: happy with the fees because they're not gouging, they're reasonable,
22:31
Speaker 3: and they take care of the investing. Yeah.
22:33
Speaker 1: I feel like as X Advisors, we have gone through
22:37
Speaker 1: a lot of different phases where we go real aggressive
22:41
Speaker 1: with buying direct shares on our own. We want to
22:43
Speaker 1: control every inch of our portfolio, and then we go, oh,
22:47
Speaker 1: maybe we want to take our hands off and we
22:49
Speaker 1: do a bit of super stuff, or then we put
22:52
Speaker 1: our hands back on and go, oh, maybe I really
22:54
Speaker 1: want to go into having just ETFs. And i feel
22:57
Speaker 1: like I've done the swings and the roundabouts of the
22:59
Speaker 1: last years and now I'm at a point where I'm like,
23:02
Speaker 1: you know what, I've got a few assets that are
23:04
Speaker 1: direct shares. They're fun, like you know, and I'm maybe
23:08
Speaker 1: having a little bit of a look at things. Most
23:10
Speaker 1: of my portfolio is too ets. Sorry now three ETFs
23:14
Speaker 1: International Australian and I'm calling it a day because I'm
23:18
Speaker 1: just exhausted with how much time, energy and effort goes
23:21
Speaker 1: into managing a portfolio. Consistently and for what benefits, Like
23:26
Speaker 1: I'm achieving the same returns that a managed fund can.
23:30
Speaker 3: Yeah, And I think the older we get, the more
23:33
Speaker 3: we look back and become a victim of the Dunning
23:35
Speaker 3: Kruger effect. Look it up Google Images. It's an awesome thing.
23:39
Speaker 3: You start out, you get really confident, you get ignorant.
23:42
Speaker 3: Then you realize that our craf I know nothing, and
23:45
Speaker 3: you kind of reset. I've realized in my life I'm
23:49
Speaker 3: a full time content creator. That's what my focus is
23:52
Speaker 3: on my podcast and my business. I'm outsourcing the investing,
23:56
Speaker 3: but if you want to do it yourself, you can
23:59
Speaker 3: copy other portfolios. You just have to be onto it.
24:02
Speaker 1: Yeah, one hundred percent, all right, Glenn, I want to know. Now,
24:06
Speaker 1: we've talked a lot about investing individually, but one of
24:11
Speaker 1: the questions we got from the community was is it
24:13
Speaker 1: a spart move to invest jointly with your partner or
24:16
Speaker 1: should it just be in one name?
24:19
Speaker 3: I want to know your thoughts first, or do you
24:21
Speaker 3: want to know my first?
24:23
Speaker 1: You can know my thoughts. Do you just want to
24:25
Speaker 1: know my personal strategy?
24:27
Speaker 3: Well, I guess if your personal strategy is your public thoughts.
24:31
Speaker 1: Here are both either I mean, I'm in a situation
24:35
Speaker 1: that is I would say privileged because if something should
24:39
Speaker 1: happen in my relationship and we decide not to continue it,
24:43
Speaker 1: which is not on the cards at the moment, but.
24:45
Speaker 3: I think that anyone safe Steve for now.
24:47
Speaker 1: Yeah, like I like Steve for now. He's in the
24:49
Speaker 1: good books. But if we decided to part ways, we
24:52
Speaker 1: both have the ability to continue to earn good income.
24:57
Speaker 1: I'm not compromised because I took you time to be
25:00
Speaker 1: a stay at home mum or like you know, made
25:03
Speaker 1: sacrifices for his career to flourish, like he has a
25:06
Speaker 1: solid career and so do I. So a lot of
25:09
Speaker 1: that conversation I think needs to come into joint assets,
25:12
Speaker 1: like you know, if you're staying at home, making a
25:15
Speaker 1: lot of sacrifices to put someone else's career first, Like
25:18
Speaker 1: I don't want it to be in one name. I
25:20
Speaker 1: have an individual share portfolio that's in my name because
25:23
Speaker 1: I established it before I even met Steve, and while
25:26
Speaker 1: we're in that dating and like early lifestyle, as before
25:30
Speaker 1: we were married, I was still investing into that. We
25:33
Speaker 1: also have an investment portfolio that we own jointly, but
25:37
Speaker 1: we own it insider trust. And the reason we own
25:40
Speaker 1: it insider trust is because, and I'm just being really honest,
25:43
Speaker 1: I know that I have a lot of privilege and
25:45
Speaker 1: I am very grateful for it. But I also need
25:46
Speaker 1: to point out I did work really hard for this,
25:49
Speaker 1: so I don't want to be shy that I've been successful.
25:52
Speaker 3: Yeah, there is a thing out there, and it's called
25:55
Speaker 3: living in reality. I think I live in it. Most days.
25:59
Speaker 3: You're allowed to work hard and be successful.
26:01
Speaker 1: Yeah, And I don't not of the detriment to others.
26:03
Speaker 1: Absolutely not. And that's why I'm proud of what I
26:06
Speaker 1: do every day, because my success has come from bringing
26:09
Speaker 1: other people up. But we also own an investment property.
26:13
Speaker 1: So inside our trust at the moment, which we established
26:16
Speaker 1: when we decided to, you know, kind of invest a
26:18
Speaker 1: bit more aggressively for our futures, is an investment property
26:22
Speaker 1: and a share portfolio. And obviously every year those profits,
26:26
Speaker 1: if there are profits, get distributed to us and you know,
26:30
Speaker 1: we can reinvest and whatnot. And the reason for that
26:33
Speaker 1: is literally, because of historicals, there was no point me
26:36
Speaker 1: selling down my share portfolio to invest it into the
26:40
Speaker 1: trust because there would have been capital gains issues tax
26:43
Speaker 1: issues whatnot. I have stopped contributing to that portfolio unless
26:48
Speaker 1: it's like that portfolio holds the stuff that I like
26:50
Speaker 1: to have fun with.
26:51
Speaker 3: That's a side quest.
26:53
Speaker 1: Yeah, that's side adventure. But then inside our trust, the
26:57
Speaker 1: share portfolio that we have has a consistent the investment
27:00
Speaker 1: that goes into it in both of our names, and
27:03
Speaker 1: it is a joint asset and for us that works,
27:06
Speaker 1: so I think, and you would know this already. But
27:10
Speaker 1: the decision made there was a tax decision to hold
27:13
Speaker 1: it inside a trust because I am a high income
27:17
Speaker 1: earner and it's my husband position.
27:19
Speaker 3: And I will say, family call will pierce any corporate veil.
27:23
Speaker 3: So if there is a family court property dispute, they'll
27:26
Speaker 3: open that trust right up. It's not protected.
27:28
Speaker 1: It's not protected a way.
27:30
Speaker 3: Yeah, so I think your comments I would agree with.
27:35
Speaker 3: And when you started talking, I've got a bit nervous.
27:38
Speaker 3: And then you said the T word trust.
27:40
Speaker 1: You got nervous because I just own stuff in my
27:42
Speaker 1: personal name. You're like, what is she doing?
27:45
Speaker 3: I got a bit nervous. My personal view is I
27:50
Speaker 3: don't think there's great benefit holding a joint investment account. However,
27:58
Speaker 3: it's technically for both of you not because it's owned
28:01
Speaker 3: by the trust that your beneficiaries. So if we move
28:04
Speaker 3: that aside. If you're not a self employed person, if
28:07
Speaker 3: you do not have a trust, and most people most
28:10
Speaker 3: of the time don't need a trust.
28:12
Speaker 1: That is a shiny, fancy thing that essentially tells you
28:16
Speaker 1: that I own a significant amount of money and you're
28:20
Speaker 1: self employed. I think it's important to be transparent with
28:24
Speaker 1: you guys about that. I don't take it for granted
28:26
Speaker 1: any day of the week. And do you know what
28:29
Speaker 1: if it could be gone tomorrow, like I might lose
28:31
Speaker 1: literally everything, and that is okay, but that's the risk
28:34
Speaker 1: you take as a business owner. I don't want to
28:36
Speaker 1: say that with the expectation that you then go, oh,
28:39
Speaker 1: my goodness, Victoria has a trust with her husband and
28:41
Speaker 1: that's what I should do, because that strategy might not fit,
28:45
Speaker 1: and nine times out of ten it won't fit.
28:47
Speaker 3: I wouldn't in my own personal life have a joint
28:50
Speaker 3: account with a spouse or partner in terms of shares
28:54
Speaker 3: because the issue is there's really no flexibility, and particularly
29:00
Speaker 3: the state planning, I'd have to fact check myself it's
29:03
Speaker 3: one or the other. When you set up a joint
29:06
Speaker 3: brokerage account, you need to check with the brokerage to
29:08
Speaker 3: work out whether by default it's tenants in common or
29:12
Speaker 3: joint tenants. So that means if you die, you need
29:15
Speaker 3: to just check if there is a joint share brokerage account,
29:20
Speaker 3: whether the registry say that one half goes to the
29:24
Speaker 3: state of the deceased or one half goes to the
29:26
Speaker 3: surviving person automatically, So check that. The reason also why
29:31
Speaker 3: I don't love joint share accounts. There's a philosophical side
29:36
Speaker 3: to this which I can get to. With the lack
29:39
Speaker 3: of flexibility. If two people have a genuine alternate risk profile,
29:45
Speaker 3: it just gets a bit more confusing. If there is
29:47
Speaker 3: a separation and we did need to sever the assets, well,
29:52
Speaker 3: one sale lands on both people's tax return. There's just
29:58
Speaker 3: less flexibility. I went into it in great detail in
30:01
Speaker 3: the investing book that I think I was talking about
30:04
Speaker 3: last time. I think when it comes to money in
30:08
Speaker 3: investing your own share accounts, it's fine if there is
30:13
Speaker 3: a broader discussion in your household. I actually put in
30:17
Speaker 3: my Facebook group a couple of weeks ago, does anyone
30:19
Speaker 3: want to come on the podcast and debate me on
30:22
Speaker 3: something that they disagree with me.
30:24
Speaker 1: I don't know what I could come on the podcast
30:26
Speaker 1: and disagree with you from my version of me.
30:30
Speaker 3: Yeah, and it's philosophical. In your household, do you share
30:36
Speaker 3: money or have you got separate finances. I'm of the
30:40
Speaker 3: personal view that the law says, if we're in a
30:44
Speaker 3: de facto relationship over eighteen months, and whether there's one
30:48
Speaker 3: hundred thousand dollars, ten thousand dollars, if it's in joint names,
30:52
Speaker 3: it's either. If it's in separate accounts, it's either. However,
30:56
Speaker 3: there is a carve out my own view is, and
30:59
Speaker 3: this is a tea for the debate I'll have with
31:01
Speaker 3: my awesome listener. She's coming on to debate me because
31:05
Speaker 3: she thinks couples should keep their money separate.
31:08
Speaker 1: And like fully separate, never together.
31:10
Speaker 3: Yeah. I would agree on the principle, and the debate
31:15
Speaker 3: will be that there's no current record of any DV
31:19
Speaker 3: or anything like that.
31:20
Speaker 1: Oh yeah, no, no, no.
31:21
Speaker 3: However, I think is best practice if the law says
31:26
Speaker 3: you both own everything equal, practically, I think we need
31:29
Speaker 3: to have our own emergency funds in our own names. Okay,
31:33
Speaker 3: about how little escape money, and that's awesome, but I'm
31:39
Speaker 3: talking day to day.
31:40
Speaker 1: Yes, Steve and I have our incomes come into one
31:44
Speaker 1: account together and we share everything. Like there's never a
31:47
Speaker 1: conversation of his pay versus my pay, Like we're always
31:51
Speaker 1: talking how income over time that has ebbed and flowed.
31:55
Speaker 1: There have been periods of our you know, shared life
31:59
Speaker 1: where we've shared and he's earnt more than me, and
32:02
Speaker 1: then years where I've earned more than him, and I
32:04
Speaker 1: can't tell you when that's happened because it comes into
32:07
Speaker 1: the one account and then we deal with life. But
32:09
Speaker 1: we have always had our own spending accounts, We've always
32:12
Speaker 1: had our own savings, like to the side, so that
32:16
Speaker 1: that is kind of like a form of protection because
32:18
Speaker 1: we know that fifty percent of marriages ended divorce, right,
32:22
Speaker 1: So even though it's not very sexy and not very
32:25
Speaker 1: very valanty and we don't want it, Yeah, we don't
32:27
Speaker 1: want to talk about it, like we actually have to
32:29
Speaker 1: have these conversations because fifty percent of marriages end in divorce.
32:34
Speaker 1: The other fifty percent, Glenn, end in death, which is
32:37
Speaker 1: why we need to talk about binding financial agreements. And
32:39
Speaker 1: then on the flip side, we need to talk about
32:41
Speaker 1: a state planning. So if you're not talking about either
32:43
Speaker 1: of those. You're going to at some point, irrespective of
32:47
Speaker 1: whether your relationship is successful or it doesn't work out,
32:51
Speaker 1: you're going to have issues if you don't have that
32:54
Speaker 1: documentation in place.
32:55
Speaker 3: I totally agree, And this is where you know nuance
32:58
Speaker 3: is the first casualty of a face bok comment.
33:01
Speaker 1: But you didn't take the whole situation into consideration, and
33:04
Speaker 1: it would have been much bigger than the Facebook comment
33:06
Speaker 1: would have allowed it.
33:07
Speaker 3: Yeah, and that's why I want to unpack it with
33:08
Speaker 3: my listener when she debates me on it, because I think, yeah,
33:12
Speaker 3: business as usual day to day, we need to make
33:15
Speaker 3: the view. Are we married or are we de facto?
33:19
Speaker 3: Are we doing life together?
33:21
Speaker 2: Yeah?
33:21
Speaker 3: If the answer is yes, This why I'm getting someone
33:24
Speaker 3: on to debate me. I'm sleeping just as well tonight.
33:27
Speaker 3: If people disagree with me, awesome, I might learn something.
33:31
Speaker 3: They can disagree with me and sleep just as well. Awesome.
33:34
Speaker 3: We can all get along. I just like debating these ideas.
33:37
Speaker 3: So I think the debate is if we agree that
33:41
Speaker 3: we're doing this as a team together, the business as
33:44
Speaker 3: usual rent, electricity bill, groceries, whatever, who cares. Let's have
33:48
Speaker 3: a joint account let's have our own individual splurge little
33:52
Speaker 3: fund money accounts. Awesome, but I think one hundred percent
33:55
Speaker 3: we need our own emergency savings in our own account.
33:58
Speaker 3: But back to the share question, and it's just a
34:01
Speaker 3: little bit more nuanced and annoying to have a joint
34:04
Speaker 3: brokerage account. Yeah, joint property, it's easy. There's one asset,
34:08
Speaker 3: we're selling it or not, yes or no. It just
34:10
Speaker 3: can be a bit more complex. So I'm not a
34:13
Speaker 3: fan of joint investing accounts. The trust layer basically says
34:17
Speaker 3: the trust owns the account and the income can be
34:20
Speaker 3: distributed each year to wherever it needs the land. That's
34:23
Speaker 3: all good, But I think we're on the same page there.
34:25
Speaker 1: I agree, and I think it's one of those things.
34:28
Speaker 1: When I was a financial advisor, it was definitely a
34:30
Speaker 1: school of not owning joint assets and setting up maybe
34:34
Speaker 1: two share portfolios, even though we had a little bit
34:37
Speaker 1: more brokerage. It would mean that there was structure. If
34:39
Speaker 1: someone wantly, we didn't actually have to sell our sets.
34:42
Speaker 1: You kind of just went your own way. And I'm
34:44
Speaker 1: very much a risk averse person as much as I'm
34:47
Speaker 1: like I would say, a very high risk investor. I'm
34:50
Speaker 1: very risk averse because I just don't want there to
34:52
Speaker 1: be negative impact on people, and like you see it
34:56
Speaker 1: in lots of situations where they're like we had to
34:58
Speaker 1: sell the house because the other person couldn't afford to
35:00
Speaker 1: buy out, and so therefore we both lost. Like I
35:03
Speaker 1: just want there to be amicability where possible.
35:07
Speaker 3: And that's the thing, like if you hear all this
35:10
Speaker 3: stuff and you have separate finances and live together and
35:13
Speaker 3: I pay for rent.
35:14
Speaker 1: Because there's actually no one size fits all, do it. Yeah,
35:18
Speaker 1: we're talking about Glenn.
35:19
Speaker 3: I'm not going to do it. And this is just
35:20
Speaker 3: my view, and it's worth what everyone.
35:22
Speaker 1: Paid for it, yeah, which is millions trillions even. All right, Glenn,
35:27
Speaker 1: let's go to a really quick break because this has
35:29
Speaker 1: been good, but I really want to pivot into talking
35:31
Speaker 1: about Chemist Warehouse and what's going on there, so guys
35:35
Speaker 1: don't go anywhere. All right, Glenn, we are back, and
35:42
Speaker 1: I feel like we've been having a very good conversation
35:44
Speaker 1: about investing and philosophy and sharing money and sharing assets,
35:50
Speaker 1: and it's been I think a lot of fun. We
35:52
Speaker 1: haven't answered that many questions, so you're going to have
35:54
Speaker 1: to come back again. I'm sorry, but we did have
35:58
Speaker 1: a community member ask us about Chemist Warehouse, especially with
36:02
Speaker 1: all of the hype that has been surrounding that business
36:05
Speaker 1: at the moment. Obviously, we can't say whether someone should
36:08
Speaker 1: invest in it or not, but I want to know
36:11
Speaker 1: from your perspective, Glenn, what makes a company like this
36:13
Speaker 1: interesting from an investment opportunity perspective.
36:17
Speaker 3: Yeah, so most people would own Chemist Warehouse now because
36:21
Speaker 3: Sigma Healthcare basically hate them, et them, which was interesting
36:26
Speaker 3: because Chemists Warehouse was the bigger.
36:28
Speaker 1: Company tried to eat them.
36:30
Speaker 3: Yeah, but Sigma they do a lot of over the
36:33
Speaker 3: counter medications, medical supplies. They own like Amcow, Guardian Pharmacy,
36:38
Speaker 3: Distant Drugs.
36:39
Speaker 1: They are a relatively big dog, but you don't know
36:41
Speaker 1: who they are because they are not called Amcow.
36:44
Speaker 3: That's right. So basically Chemists ware House, and I think
36:47
Speaker 3: it's just important before we talk about the investing opportunity
36:51
Speaker 3: is just to step back. You know, they were valued
36:54
Speaker 3: at about ten billion Australian before the.
36:56
Speaker 1: Merger, just a few dollars where.
36:58
Speaker 3: Sigma was worth about a one hundred million, so ten times.
37:03
Speaker 3: It's an interesting world. In the pharmacy world. We know
37:06
Speaker 3: that Woolworths can't open a pharmacy. Coles can't open a
37:11
Speaker 3: pharmacy within the stores, which I think is good. But
37:16
Speaker 3: Chemists ware House, like, you go in there, you can
37:19
Speaker 3: buy literally everything but fresh produce. It's like full on,
37:23
Speaker 3: like the Priceline and all that.
37:24
Speaker 1: So do you have the little fridges for your probiotics
37:27
Speaker 1: so that they're getting close?
37:28
Speaker 3: Yeah, So I'm not really saying much here other than
37:31
Speaker 3: Chemists Warehouse, it's a retail store. They do chemistry things.
37:37
Speaker 1: Like they do chemistry things.
37:38
Speaker 3: But the investing thing, I think what we need to
37:41
Speaker 3: look at, and I don't play in the weeds of
37:44
Speaker 3: individual stocks. I would say, if you do the investing
37:49
Speaker 3: master class, you will talk conceptually about individual stocks. You'll
37:54
Speaker 3: learn potentially how to value individual stocks. There are a
37:58
Speaker 3: lot of free websites that will give a rating to
38:02
Speaker 3: individual companies, whether they think they're overvalued and they're rationale,
38:05
Speaker 3: whether they're worth a buy or not. But I will say,
38:09
Speaker 3: and this is just what I do. I don't have
38:10
Speaker 3: more than ten percent of my equity portfolio in individual
38:15
Speaker 3: stocks because I want to buy the market. I don't
38:20
Speaker 3: want to try and pick winners. But if you are
38:23
Speaker 3: interested in the story, you look into it, you might
38:25
Speaker 3: shop there, and just because you shop there, it doesn't
38:28
Speaker 3: mean it's a good investment. I mean there's a bank
38:31
Speaker 3: that I bank with where it's actually a dog of
38:34
Speaker 3: a bank compared to the one down the road. As
38:36
Speaker 3: an investment, so I buy shares in the one down
38:38
Speaker 3: the road and I bank with the other one. So
38:41
Speaker 3: we have to disconnect that. But if you're like, I
38:45
Speaker 3: love this story, I want to buy into Sigma. The
38:49
Speaker 3: chemist thing, it's a very interesting sector when you look
38:52
Speaker 3: at it, and if you've met any small businesses. Most
38:55
Speaker 3: pharmacies are small business owners and licensees and whatnot. It's
38:59
Speaker 3: an interesting industry and they are a genuine disruptor. Like
39:04
Speaker 3: medication that I takes like half price from chemists ware house.
39:07
Speaker 1: It's actually a really solid business.
39:10
Speaker 3: Yeah, but they've just taken the view we'll obviously get
39:13
Speaker 3: scale by buying the medications, probably not making much on them,
39:17
Speaker 3: but will sell the other vitamins, makeup deodorants. Yeah, I
39:22
Speaker 3: get my goat soap there, all that stuff. So the
39:24
Speaker 3: investment question is you'll find so much information online. It's
39:27
Speaker 3: a list company.
39:28
Speaker 1: Do them research, yeah, because it's also probably in the ETFs.
39:33
Speaker 1: You're already purchasing.
39:34
Speaker 3: Right and it's in your super already, you will have exposure.
39:37
Speaker 1: I think it's interesting because a lot of you are
39:39
Speaker 1: already going to own Sigma, and you might not have
39:42
Speaker 1: paid any attention to Sigma until now, and you're hearing
39:45
Speaker 1: a name like chemists Warehouse and you're going, hold on,
39:48
Speaker 1: what does that mean? That's a really cool acquisition. And
39:51
Speaker 1: the whole purpose of the chemist Warehouse like framework working
39:57
Speaker 1: is because it's low cost, high volume. Why everybody I
40:01
Speaker 1: know goes down to chemist Warehouse because their medications are
40:04
Speaker 1: genuinely cheaper, So you've got people hook line and sinker.
40:08
Speaker 1: I'm always buying additional things at chemist Warehouse because I'm
40:11
Speaker 1: roaming around the shop. I'm looking around, going what's going
40:14
Speaker 1: on while I'm waiting for my buzzer for my antidepressants.
40:17
Speaker 3: You know, it is like I do feel it for
40:19
Speaker 3: the other self employed small business owners with their community pharmacy.
40:23
Speaker 3: That might be another franchise where they literally can't do
40:27
Speaker 3: the medication for that cheap.
40:28
Speaker 1: And I get that, but I also think that we're
40:30
Speaker 1: talking from an investment perspective, and you know, Chemist Warehouse
40:35
Speaker 1: does franchise out so there are a lot of small
40:37
Speaker 1: business owners who own Chemist Warehouse locations, which is very cool.
40:41
Speaker 1: And Chemist Warehouse shareholders now own about eighty five percent
40:46
Speaker 1: of the new company, which means that they are majority owners,
40:49
Speaker 1: which is kind of attractive, and there's an expectation in
40:54
Speaker 1: the market that it's going to then attract and this
40:57
Speaker 1: is why it's being talked about a lot attractive, very
41:00
Speaker 1: strong investor interest, because people are like, this was a
41:03
Speaker 1: privately listed company that we all thought was successful beforehand.
41:07
Speaker 1: Now it's got in public because it is very dominant
41:10
Speaker 1: in it the pharmaceuticals.
41:12
Speaker 3: Every day, a ten billion doll a whale it's private
41:16
Speaker 3: gets listed.
41:17
Speaker 1: One hundred percent. Like if you've gotten to being that
41:20
Speaker 1: size and you have made the conscious decision to list,
41:24
Speaker 1: that decision would have been made because there is significant upside.
41:27
Speaker 1: They can clearly afford to scale, They can clearly afford
41:31
Speaker 1: to even go down to the bank. Because even companies
41:34
Speaker 1: like Chemist Warehouse might go down to the bank and
41:36
Speaker 1: get a loan to grow their business. They have the
41:39
Speaker 1: backing to be able to do that. But when you
41:42
Speaker 1: list as a company, it puts significant responsibility back onto
41:46
Speaker 1: you as the organization. Do you have a proper board
41:49
Speaker 1: which you didn't have an obligation to have before, have
41:52
Speaker 1: proper governance, and actually report to shareholders. So there must
41:57
Speaker 1: need to be some very significant upside for what was
42:01
Speaker 1: privately owned company to list. Yeah, and I think that's
42:04
Speaker 1: so excited.
42:05
Speaker 3: It's a good liquidity event for the private owners.
42:08
Speaker 1: Anyway, they might have said, I just want some cash
42:11
Speaker 1: out and the only way I'm getting up.
42:13
Speaker 3: Exactly a Melbourne story to start with.
42:15
Speaker 1: Yeah, I believe. So all right, let's move off chemist
42:19
Speaker 1: warehouse because I know I'm running out of time with you.
42:21
Speaker 1: But we also promised that we would talk about tech ETFs,
42:25
Speaker 1: and we had a community member ask about investing in
42:28
Speaker 1: a tech ETF, but they weren't sure where to start
42:30
Speaker 1: because there are so many options out there, Glenn, what
42:34
Speaker 1: should we be looking for if we are looking for
42:36
Speaker 1: a tech ETF specifically, there are so many options out there.
42:41
Speaker 1: I'm going shopping. I've made my decision, I have my product,
42:44
Speaker 1: I know what platform I'm investing on, but I looked
42:47
Speaker 1: up on I don't know cheress. I typed in tech ETF.
42:50
Speaker 1: Heaps of options came up. How am I picking?
42:53
Speaker 3: I don't even know if I know the answer that.
42:55
Speaker 3: For me, it goes back to why do you want
42:58
Speaker 3: a tech etf to start with? Because sometimes it sounds shiny. Yeah,
43:03
Speaker 3: we asked these questions. I personally don't own a tech etf.
43:08
Speaker 3: Peel Back, the Young had a little bit the S
43:10
Speaker 3: and P five hundred. There's a huge tech waiting. You
43:14
Speaker 3: look at Nvideo, Microsoft, Apple, All these companies have such
43:19
Speaker 3: big waiting.
43:20
Speaker 1: Yeah, we're talking about in a video on the podcast
43:22
Speaker 1: the other day. I think you don't realize how significant
43:26
Speaker 1: it is because they hold such dominance.
43:29
Speaker 3: All these big tech companies your Google's, Tesla's, Borderline Tech.
43:34
Speaker 3: I've got enough exposure to them.
43:36
Speaker 1: We've got tech at home.
43:38
Speaker 3: Yeah, like I know, I can't go to bed without tech.
43:42
Speaker 3: My mum was saying that today she bought an earth
43:45
Speaker 3: sheet where they plug into the wall, it connects to
43:48
Speaker 3: the earth of the PowerPoint and you lay under it.
43:51
Speaker 1: So anyway, Mum's gone to Lulu tech everywhere.
43:54
Speaker 3: Am I right?
43:57
Speaker 1: I'm going to be like, excuse me, but what are
43:59
Speaker 1: you talking about?
44:00
Speaker 3: Earth sheet?
44:01
Speaker 1: But sounds like you got scammed from a tisktok video.
44:05
Speaker 3: Yeah. So if you do want tech exposure, the good
44:07
Speaker 3: thing is most of them will be an index, a
44:10
Speaker 3: lot of them will be a Nasdaq index. A lot
44:13
Speaker 3: of them will be listed in the US, because most
44:15
Speaker 3: of the big tech plays are in the US. And
44:19
Speaker 3: if we tie back to the question on fees, you
44:21
Speaker 3: could take the view that, Okay, there's three tech ETFs
44:24
Speaker 3: and I don't even know because I don't look at
44:26
Speaker 3: this stuff enough. I'll make examples up. There's one from
44:28
Speaker 3: black Rock, there might be one from Beata Shares. That
44:30
Speaker 3: might be one from global X, there might be one
44:32
Speaker 3: from State Street. They all have the same tracking on
44:34
Speaker 3: the index. You might just go, I want tech exposure.
44:37
Speaker 3: I can see the index. I'm just going to go
44:39
Speaker 3: the cheapest. But having said that, the cheapest might be
44:44
Speaker 3: only a whisker away from the next one up. So again,
44:48
Speaker 3: I don't know the answer. Make sure if you want
44:51
Speaker 3: some exposure, maybe you see it as a satellite in
44:55
Speaker 3: your portfolio. So you might say, Okay, I do want
44:57
Speaker 3: some extra tech exposure, but I'm not going to put
45:00
Speaker 3: more than ten percent of my portfolio into that because
45:04
Speaker 3: you will have overlap. You look at anyone who invested
45:08
Speaker 3: in the spaceship app. They got a real lesson about
45:11
Speaker 3: diversification and what a single sector tech investment will do
45:18
Speaker 3: when the going isn't good.
45:20
Speaker 1: Yeah, and tech right now is doing really well, Like
45:23
Speaker 1: we're seeing returns of twenty even thirty percent in tech ETF.
45:26
Speaker 1: So I feel like that is potentially what is driving
45:29
Speaker 1: the interest and the need for a tech ETF because
45:32
Speaker 1: you go, the returns are incredible, but that is fleeting.
45:35
Speaker 1: Like I always say on the pod, when in doubt,
45:37
Speaker 1: zoom out, and when you're not sure about something like,
45:39
Speaker 1: let's look at the bigger picture, what's their long term strategy? Like,
45:42
Speaker 1: what is your strategy purchasing this ETF You're going to
45:45
Speaker 1: be holding it for a long period of time or
45:47
Speaker 1: are you going to just like make hey, well the
45:49
Speaker 1: sun shining, which I wouldn't recommend, but I would be
45:54
Speaker 1: stepping back and picking the research house or the share
45:58
Speaker 1: trading platform first. So you mentioned before like Beta shares
46:01
Speaker 1: or Vanguard. I'd work out which one of those businesses
46:04
Speaker 1: aligns to your values. You might go really love a Vanguard. Fantastic, Glenn,
46:09
Speaker 1: I'm so happy for you. Yeah, you like the color
46:11
Speaker 1: red cool, Well, let's actually hone it down and then
46:14
Speaker 1: just look at their offerings as opposed to every single
46:17
Speaker 1: offering on the market, or you might be purchasing a
46:20
Speaker 1: tech ETF because obviously purchasing direct shares of an international
46:25
Speaker 1: asset is not actually the best idea. Like most people
46:29
Speaker 1: aren't going to go by direct shares in Apple because
46:31
Speaker 1: there's currency issues, there's a lot of things going on.
46:35
Speaker 1: You might want to pick an ETF, but you might
46:37
Speaker 1: be looking for a specific waiting so that you can
46:40
Speaker 1: say or you can own Apple. I would be looking
46:42
Speaker 1: at it that way. There's no best ETF. But I
46:45
Speaker 1: could sit down and write a whole blog post or
46:47
Speaker 1: to a whole podcast on it, Glenn of like, what
46:50
Speaker 1: were the best performing tech ETFs in twenty twenty four.
46:53
Speaker 1: But past performance is not a reliable predictor of future performance,
46:56
Speaker 1: and therefore it would just be a conversation to have
46:59
Speaker 1: to see what happened historically.
47:01
Speaker 3: Yeah, and I think it's interesting. Nevertheless, I mean, if
47:03
Speaker 3: someone is on the train or going for a walk,
47:06
Speaker 3: just pull up Google Now and search Intel share price,
47:10
Speaker 3: and just in the top Google chart, click maximum and
47:15
Speaker 3: so you'll see in the early two thousands, Intel did
47:18
Speaker 3: a lot as and videos kind of currently doing and
47:21
Speaker 3: then you'll see it kind of come off. So yeah,
47:24
Speaker 3: I don't have huge overexposure to the tech ETFs.
47:28
Speaker 1: I feel like this has been fun chat. One last
47:30
Speaker 1: question though, I want to know, Glenn, what is one
47:34
Speaker 1: investing myth that is currently driving you mad?
47:37
Speaker 3: Oh.
47:37
Speaker 1: I don't know about you, but I am a tragic
47:41
Speaker 1: on TikTok. Like most of my screen time is spent
47:44
Speaker 1: on TikTok. And I'll say that, but like, I'm not
47:46
Speaker 1: proud of it. I'm just sharing. And the amount of
47:49
Speaker 1: investing content I see that, I'm like that is terrible
47:52
Speaker 1: with advice and I have to scroll on because I'm
47:54
Speaker 1: not going to get in DM comment arguments. But what's
47:58
Speaker 1: been annoying Glennie James Race.
48:00
Speaker 3: Gosh, I'll just give caution to any type of things
48:06
Speaker 3: that you know people are like sell the farm, go
48:09
Speaker 3: all in on crypto or bitcoin or get rich asap
48:13
Speaker 3: type stuff. Yeah, I think that's probably what annoys me.
48:17
Speaker 3: If something worked for one person, it doesn't mean it's
48:21
Speaker 3: going to work again, and we can all fall into
48:23
Speaker 3: this trap. I picked a winner here doesn't mean I
48:26
Speaker 3: can do it again. And if someone's on TikTok going,
48:29
Speaker 3: you need to put all your money to bitcoin if
48:31
Speaker 3: you want to build your financial future. Absolutely not, Nah,
48:34
Speaker 3: maybe have a small allocation here.
48:36
Speaker 1: We're not saying it's terrible, but there seems to acentration.
48:40
Speaker 3: Less is more. You don't have to over engineer you're
48:44
Speaker 3: investing portfolio. You'll make more money from your job and
48:49
Speaker 3: your career than you're investing account at the moment, So
48:52
Speaker 3: focus on what makes more money in your life and
48:55
Speaker 3: you'll be all GTG.
48:57
Speaker 1: I like that. We did get a few questions through, actually,
49:00
Speaker 1: Glenn that we covered in our last Q and A
49:03
Speaker 1: with you, So if you're wondering about things I mentioned earlier,
49:06
Speaker 1: So if you've been thinking about chests sponsorship, or investing
49:09
Speaker 1: in international markets, or graduating from micro investing platforms to
49:13
Speaker 1: big boy platforms, or even we spoke about investing for
49:16
Speaker 1: kids last time. I'm going to make sure that that
49:18
Speaker 1: episode is linked in the show notes so you can
49:20
Speaker 1: check that out and get more Glenny James content. Glenn
49:23
Speaker 1: as always, what a pleasure. I'm so grateful to have
49:26
Speaker 1: you in my brand new studio.
49:28
Speaker 3: I love it, and it feels like a better conversation
49:30
Speaker 3: than sitting at that desk.
49:32
Speaker 1: I know, I love it. I feel like it's a
49:34
Speaker 1: lot more relaxed. I feel more relaxed, like I don't
49:37
Speaker 1: leave the studio feeling exhausted anymore.
49:39
Speaker 3: This is we're just having a chat. We're not doing
49:41
Speaker 3: a podcast. I think that's the difference.
49:43
Speaker 1: Yeah, that's much better. All right, Well, thank you for
49:45
Speaker 1: your wisdom. For anyone who wants to hear more from
49:48
Speaker 1: the Glenn James himself, where can we find you?
49:51
Speaker 3: You can search money, money money wherever you're listening to this.
49:54
Speaker 3: And I've got to get Von to do MLM episode
49:57
Speaker 3: for Mike.
49:58
Speaker 1: I cannot wait. We've been talking about this because so long.
50:00
Speaker 1: And if you guys think I'm over multi level marketing,
50:03
Speaker 1: you're wrong. I just haven't had time.
50:04
Speaker 3: We need to get you on my show.
50:06
Speaker 1: I'm excited. All right, we are done. But if you've
50:08
Speaker 1: been listening to this and you want to get investing,
50:10
Speaker 1: my next intake for the Investing master Class is open now.
50:14
Speaker 1: Masterclass is going to open its doors and start on
50:16
Speaker 1: the first of April, which I'm really excited about. The
50:19
Speaker 1: link is going to be in the show notes for that.
50:21
Speaker 1: And of course, if you loved this episode, make sure
50:24
Speaker 1: that you're following the podcast so you never miss an
50:27
Speaker 1: update from us. Hit that subscribe button, leave us a
50:30
Speaker 1: review if you're feeling a little bit generous and come
50:33
Speaker 1: hang out with us in the She's on the Money
50:34
Speaker 1: community on Instagram, because that's where we do all of
50:37
Speaker 1: our callouts for questions for episodes just like this. We
50:40
Speaker 1: love hearing your questions, so keep them coming, my friends.
50:43
Speaker 1: That is it for us, Glenny James, goodbye, happy investing,
50:46
Speaker 1: and we'll see you next time. Byebee did buy shared
50:55
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50:57
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