Latest / She's On The Money / Lights! Camera! Investing Action Plan!

Transcript

Lights! Camera! Investing Action Plan! · She's On The Money

• 0:00
  Speaker 1: Hello.
• 0:01
  Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud Order Order
• 0:05
  Speaker 2: Kerney Whalbury and a waddery woman. And before we get
• 0:09
  Speaker 2: started on She's on the Money podcast, I would like
• 0:11
  Speaker 2: to acknowledge the traditional custodians of the land of which
• 0:14
  Speaker 2: this podcast is recorded on a wondery country, acknowledging the elders,
• 0:19
  Speaker 2: the ancestors and the next generation coming through as this
• 0:23
  Speaker 2: podcast is about connecting, empowering, knowledge sharing and the storytelling
• 0:28
  Speaker 2: of you to make a difference for today and lasting
• 0:31
  Speaker 2: impact for tomorrow. Let's get into it.
• 0:34
  Speaker 3: She's on the Money, She's on the Money.
• 0:57
  Speaker 1: Hello, and welcome to She's on the Money, the podcast
• 0:59
  Speaker 1: for MILLENNI who want financial freedom. We are in the
• 1:02
  Speaker 1: new financial year, and if you didn't get cracking on
• 1:04
  Speaker 1: your investment plan in January, it is not too late.
• 1:07
  Speaker 1: Now is the perfect time to get started.
• 1:09
  Speaker 4: I love this episode. I am so excited to do it.
• 1:13
  Speaker 4: We obviously adore talking investing at Cheese on the Money,
• 1:16
  Speaker 4: and personally, I always think it's a good time to
• 1:18
  Speaker 4: be talking about this topic. That's why today Beck, you
• 1:21
  Speaker 4: and I are going to be giving our little squad
• 1:23
  Speaker 4: some steps to get your investment plan back on track,
• 1:26
  Speaker 4: because I feel like so many of us set really
• 1:28
  Speaker 4: big goals for January, then we didn't do them, and
• 1:31
  Speaker 4: then it was February, and I don't know where the
• 1:34
  Speaker 4: year is going, but I know that so many of
• 1:37
  Speaker 4: you want to be investing amazing. Well.
• 1:39
  Speaker 1: I may not have started my journey yet, but I
• 1:41
  Speaker 1: do know that we need to be a lartey. That's
• 1:42
  Speaker 1: a lie I kind of do. I don't know if
• 1:44
  Speaker 1: I can guess. I guess I could count it. I
• 1:46
  Speaker 1: literally have twenty five dollars in cheerseas right now?
• 1:48
  Speaker 4: Are you an investor? Yeah?
• 1:49
  Speaker 1: I guess. So does that mean I started?
• 1:52
  Speaker 4: You've started?
• 1:53
  Speaker 1: I don't need this episode?
• 1:54
  Speaker 4: Then coming out straight in there, let's go I reckon,
• 1:57
  Speaker 4: I could go a coffee instead of this episode.
• 1:59
  Speaker 1: Let's do it right, Well, actually, let's do the episode.
• 2:01
  Speaker 4: I worked really hard on this, so true.
• 2:04
  Speaker 1: What's step one?
• 2:04
  Speaker 2: All right?
• 2:05
  Speaker 4: So step one is defining your investment goals? Again, not
• 2:08
  Speaker 4: very sexy. I've been trying for literal years to make
• 2:11
  Speaker 4: investments sexy, but sometimes it's just not. But how cool
• 2:15
  Speaker 4: we get to sit back and think about all the
• 2:18
  Speaker 4: things we want to achieve and this is where we
• 2:20
  Speaker 4: can like brainstorm up all of the crazy things that
• 2:23
  Speaker 4: we might want to achieve, and then we can whittle
• 2:25
  Speaker 4: them down to things that might be actually manageable. So
• 2:28
  Speaker 4: when we're setting goals, I like to have a good
• 2:30
  Speaker 4: idea of what your short, medium, and long term goals
• 2:33
  Speaker 4: are because I'm kind of an instant gratification girly back
• 2:37
  Speaker 4: like I need the short term goals to keep me
• 2:40
  Speaker 4: motivated so that the long term goals actually happen as well.
• 2:44
  Speaker 4: Because if I only have long term goals and we're
• 2:46
  Speaker 4: only talking about like retirement, I'm just going to spend
• 2:48
  Speaker 4: all my money now, like I can't wait. I am
• 2:52
  Speaker 4: impulsive if not anything else. So when it comes to
• 2:55
  Speaker 4: long term goals for me, a good example of that
• 2:57
  Speaker 4: would be like retirement planning or planning for your larger
• 3:01
  Speaker 4: investment portfolio to create a passive income so that you
• 3:04
  Speaker 4: don't have to work full time. Timeframe on this would
• 3:08
  Speaker 4: be more than seven years, because we know, because of
• 3:11
  Speaker 4: the rule of seventy two Beck, that money is going
• 3:14
  Speaker 4: to pretty much double every seven years, but also a
• 3:19
  Speaker 4: market is going to do more than a full circle
• 3:22
  Speaker 4: in that time, so we're minimizing our risk when we're
• 3:25
  Speaker 4: setting long term goals for more than seven years. When
• 3:28
  Speaker 4: we're talking about long term goals, this is where you
• 3:30
  Speaker 4: can comfortably go, all right, well, I am going to
• 3:32
  Speaker 4: invest in a property or I am going to potentially
• 3:35
  Speaker 4: invest in the share market, because there's less risk. Obviously
• 3:39
  Speaker 4: when it comes to like that short term goal, let's
• 3:41
  Speaker 4: flip to that these are things that you want to
• 3:43
  Speaker 4: achieve in like one to three years. And if you said,
• 3:46
  Speaker 4: v I really want to buy my first property next year.
• 3:48
  Speaker 4: I've got my home deposit sitting right here, I'd be like, one, beck,
• 3:51
  Speaker 4: where the heck did that come from? Like you've been
• 3:53
  Speaker 4: hiding this from me. I'm excited. But two I'd be like,
• 3:57
  Speaker 4: please don't invest it. It's too much of a short
• 3:59
  Speaker 4: period of time and we don't know what the market
• 4:02
  Speaker 4: can do in twelve months. And if the market went
• 4:04
  Speaker 4: off like your goal of purchasing a home in twelve months,
• 4:07
  Speaker 4: it's not going to happen. And I would hate for
• 4:10
  Speaker 4: you to be in that situation. And even if you
• 4:12
  Speaker 4: were to invest for twelve months, because you go will
• 4:15
  Speaker 4: be I'm willing to take a risk, And then you
• 4:17
  Speaker 4: want to purchase, then well, are you actually going to
• 4:20
  Speaker 4: pull all your investment out when it's worthless. That's a
• 4:23
  Speaker 4: bad financial decision, and I don't want you to be
• 4:25
  Speaker 4: forced to make one. Like if you and your partner
• 4:28
  Speaker 4: who's already a homeowner, I mean, good pool with that one.
• 4:31
  Speaker 4: But like if you and your partner wanted to purchase
• 4:32
  Speaker 4: property together and she was super ready in twelve months,
• 4:36
  Speaker 4: you'd be like, oh, maybe I do have to pull
• 4:38
  Speaker 4: my money out and cut my losses a bit so
• 4:40
  Speaker 4: I can still achieve this goal that she's ready for.
• 4:43
  Speaker 4: We don't want to do that. We don't want to
• 4:44
  Speaker 4: back ourselves into a corner. So investment types for short
• 4:47
  Speaker 4: term goals would be things like your high interest cash accounts,
• 4:51
  Speaker 4: your term deposits. Potentially maybe you've got an offset account
• 4:55
  Speaker 4: if you have a mortgage in this economy, not man
• 4:57
  Speaker 4: air if you will, or even short term bonds. But
• 5:01
  Speaker 4: I wouldn't be looking at, you know, investing your money
• 5:04
  Speaker 4: or purchasing a property in the hope of selling it
• 5:06
  Speaker 4: in twelve months. Like those things just don't make a
• 5:09
  Speaker 4: lot of sense for short term goals. When it comes
• 5:11
  Speaker 4: to short term goals, though, beck those are things like
• 5:14
  Speaker 4: buying car, going on a holiday, A short term goal
• 5:17
  Speaker 4: could be something really large if you've already been working
• 5:20
  Speaker 4: on it, like buying a house, but not usually for me,
• 5:23
  Speaker 4: short term goals are quite small things, and these are
• 5:26
  Speaker 4: the things that often keep me motivated along the way,
• 5:29
  Speaker 4: So like I know that it's not going to happen
• 5:32
  Speaker 4: next year because beck, while I was very willing to
• 5:34
  Speaker 4: travel with a three month old, I'm not that willing
• 5:37
  Speaker 4: to travel with a one year old. No, Like they
• 5:40
  Speaker 4: can move, they are on the move, and can you
• 5:43
  Speaker 4: imagine trying to control a one year old on a plane.
• 5:46
  Speaker 4: I'm not willing. Could I'm willing, I'm not able. Do
• 5:49
  Speaker 4: not put me in the exit row, like it's just
• 5:51
  Speaker 4: not happening. But for me having a holiday or something
• 5:56
  Speaker 4: to work towards, or Meredith festival tickets or something, yes,
• 5:59
  Speaker 4: that is for me motivating in the short term, so
• 6:02
  Speaker 4: that I can set and forget my bigger goals and
• 6:04
  Speaker 4: know that they're happening. When it comes to medium term goals, though,
• 6:08
  Speaker 4: these are things like more education, like you might go,
• 6:12
  Speaker 4: I really want to save up some more so that
• 6:14
  Speaker 4: I can, you know, do this three year course or
• 6:16
  Speaker 4: buying a home could be a medium term goal because
• 6:18
  Speaker 4: it's all going to be different for every single person.
• 6:21
  Speaker 4: Like you could be a long term home buying girly.
• 6:24
  Speaker 4: You could be I'm actually ready in twelve months, girly,
• 6:27
  Speaker 4: Or you could be someone who's like in the middle
• 6:28
  Speaker 4: and you're like, all right, well in the next three
• 6:30
  Speaker 4: or five years, I could probably purchase that's fantastic. But
• 6:34
  Speaker 4: when we're talking about the investment types there, this is
• 6:37
  Speaker 4: where we could potentially have a bit of a mix.
• 6:39
  Speaker 4: So we could be doing things like the cash and
• 6:42
  Speaker 4: fixed interest options that we're talking about before. You could
• 6:45
  Speaker 4: also maybe do some more defensive shares or some bonds.
• 6:49
  Speaker 4: But this would be where I'm being really cautious. I
• 6:52
  Speaker 4: wouldn't be going and investing in an emerging industry with
• 6:55
  Speaker 4: a medium term goal because you just want to be
• 6:57
  Speaker 4: in that stuff.
• 6:58
  Speaker 1: For the long haul back. Yeah, that make a lot
• 7:00
  Speaker 1: of sense, actually, but what about like risk tolerance, because
• 7:03
  Speaker 1: we're all different with what we can stomach or even
• 7:05
  Speaker 1: manage responsibly.
• 7:07
  Speaker 4: See, this is where education comes into sure, Because let's
• 7:11
  Speaker 4: go back to baby Beck and baby Beck is only
• 7:13
  Speaker 4: a year younger when you started on the podcast. Would
• 7:16
  Speaker 4: you have invested in Chares?
• 7:18
  Speaker 1: No, I don't even think I knew what that was.
• 7:21
  Speaker 4: If you knew what they were, would you have thought
• 7:24
  Speaker 4: that that's a bit risky, not for me? Or would
• 7:26
  Speaker 4: you have thought no? Or would you have thought, yeah,
• 7:28
  Speaker 4: I'm straight in Like where would you head have been at?
• 7:31
  Speaker 1: I wouldn't understood it, so I woudn't have done it,
• 7:32
  Speaker 1: because I would have been like, this isn't Also, I'm
• 7:34
  Speaker 1: more of it, exactly same as you like short term
• 7:37
  Speaker 1: like mist gratification.
• 7:38
  Speaker 4: Exactly like that marshmallow experiment. Have you seen that where
• 7:42
  Speaker 4: the kid gets a marshmallow and told, if you don't
• 7:44
  Speaker 4: eat that, beck, I'll come back and I'll give you
• 7:47
  Speaker 4: two more. Yes, No, I don't need the extra too.
• 7:49
  Speaker 4: I had that one just.
• 7:50
  Speaker 1: Before and it was really good. Exactly. Actually, we're like another.
• 7:53
  Speaker 4: This is why we need to have really solid plans,
• 7:57
  Speaker 4: because I need to have a plan in place so
• 8:00
  Speaker 4: that the responsibility has taken off me. Like I know
• 8:03
  Speaker 4: that even at thirty three, I cannot be that responsible
• 8:07
  Speaker 4: with my money without a solid cash flow plan. If
• 8:10
  Speaker 4: it's not automated, it's not happening for me.
• 8:14
  Speaker 1: I wish it was.
• 8:15
  Speaker 4: I wish I was one of those girlies who was
• 8:17
  Speaker 4: just like so inherently good at money, and you might
• 8:19
  Speaker 4: have thought that V. Yes, she's on the money. You
• 8:22
  Speaker 4: should be inherently good at money. I'm also really impulsive
• 8:26
  Speaker 4: and have ADHD.
• 8:27
  Speaker 1: You're relatable, Like that's probably better.
• 8:28
  Speaker 4: I don't know if relatable, but like I'm just a
• 8:30
  Speaker 4: little bit unhinged. So your question about risk tolerance is
• 8:33
  Speaker 4: really important. But what we need to understand is that
• 8:36
  Speaker 4: risk tolerance changes. And if you're listening to this podcast,
• 8:39
  Speaker 4: you're probably already in your financial literacy era, like we
• 8:43
  Speaker 4: in our self made millionaire era were stepping into it
• 8:46
  Speaker 4: and we want to do better and be better and
• 8:48
  Speaker 4: no more. So your risk tolerance over time could change.
• 8:53
  Speaker 4: So there are about six different risk profiles. But if
• 8:56
  Speaker 4: you were sitting down and you were going to do
• 8:58
  Speaker 4: your risk tolerance and you survey and there are lots
• 9:01
  Speaker 4: online so you can look up risk tolerance questionnaire and
• 9:04
  Speaker 4: do one online. But it will go from anything from
• 9:08
  Speaker 4: cash stable so it'll be called capital stable all the
• 9:11
  Speaker 4: way up to high risk. Now high risk is sometimes
• 9:14
  Speaker 4: also called an aggressive portfolio. And we've done whole episodes
• 9:18
  Speaker 4: on risk and how to assess yourself, and we've you know,
• 9:21
  Speaker 4: even got a free risk tolerance questionnaire on our website,
• 9:25
  Speaker 4: which is I think pretty slay, So you can do ours,
• 9:27
  Speaker 4: you can do anyone, so I don't care, just do it.
• 9:30
  Speaker 4: It goes from capital stable, which is basically where all
• 9:33
  Speaker 4: your assets are in cash and you don't like taking
• 9:36
  Speaker 4: on any risk at all, beck because that's terrifying, and
• 9:39
  Speaker 4: like no shares, no property, no bonds, no fixed interest,
• 9:42
  Speaker 4: no high interest savings account all the way up to this,
• 9:46
  Speaker 4: I guess aggressive portfolio where most of your assets are
• 9:49
  Speaker 4: actually in more risky assets. So I've spoken about this
• 9:54
  Speaker 4: before and please go listen to our podcasts on risk
• 9:56
  Speaker 4: tolerance and investing. But just because you you have a
• 10:00
  Speaker 4: high risk profile or an aggressive portfolio, doesn't mean you're
• 10:04
  Speaker 4: investing in riskier assets. If we look at like a
• 10:07
  Speaker 4: conservative portfolio, which is like on that lower end, so
• 10:11
  Speaker 4: it often goes capital stable, conservative, moderately conservative, then goes growth,
• 10:18
  Speaker 4: moderate growth, and high growth. So if we look at
• 10:21
  Speaker 4: that scale, they actually invest in all the same things,
• 10:25
  Speaker 4: they just have different amounts in each bucket. So a
• 10:28
  Speaker 4: conservative person might go, I'm pretty conservative. I'm only going
• 10:31
  Speaker 4: to put twenty percent of my assets into a share portfolio,
• 10:34
  Speaker 4: whereas someone with a high growth risk tolerance might actually
• 10:38
  Speaker 4: have ninety percent of their assets in the same shares Beck,
• 10:41
  Speaker 4: So it's not having riskier shares, it's actually having more
• 10:46
  Speaker 4: exposure to an asset, which increases your risk.
• 10:49
  Speaker 1: So that makes sense a little bit.
• 10:51
  Speaker 4: So like if you had a pie chart and you
• 10:53
  Speaker 4: cut the pie chart up, you take a small piece
• 10:56
  Speaker 4: of the pie for the conservative person, Yeah, but you
• 10:59
  Speaker 4: take a really large piece of the pie for somebody
• 11:01
  Speaker 4: who's high growth. But the pie is still blueberry pie.
• 11:05
  Speaker 4: Like it's the same pie, Beck, it's not different. So
• 11:08
  Speaker 4: like they might have the same etf as you, they
• 11:10
  Speaker 4: just own less and you own more and more of
• 11:13
  Speaker 4: their money might be in a bank account because they're
• 11:15
  Speaker 4: a bit conservative and they want to just keep their
• 11:17
  Speaker 4: money in a cash savings account. Or is someone who's
• 11:20
  Speaker 4: like high growth they just really like pie and don't
• 11:22
  Speaker 4: really want all of their money in a cash account.
• 11:24
  Speaker 1: God yeah, okay, So just to whirdle this down a
• 11:28
  Speaker 1: little bit. Yeah, So short term, medium term, long term
• 11:31
  Speaker 1: goals that could be like literally just going out for
• 11:34
  Speaker 1: a nice dinner could be a short term. Buying a
• 11:37
  Speaker 1: house could be medium as well as long term could
• 11:40
  Speaker 1: be like retiring and then we're talking about risk tolerance here.
• 11:44
  Speaker 1: I just want to double check with you, like is
• 11:47
  Speaker 1: this more toward something that is a house or something
• 11:52
  Speaker 1: like shares, or or is that.
• 11:54
  Speaker 4: It's anything anything? And I think that even if you're
• 11:57
  Speaker 4: in heaps of debt, Beck, we should be looking at
• 12:00
  Speaker 4: our risk tolerance so that we can understand it, because
• 12:02
  Speaker 4: this is your willingness to invest. Like, if you're listening
• 12:06
  Speaker 4: to this episode, you're probably pretty interested in investing. So
• 12:09
  Speaker 4: I don't know why you're here if you're not interested
• 12:11
  Speaker 4: in investing, if I'm being honest, But if we know
• 12:15
  Speaker 4: our risk profile, it cuts out all of the crap back.
• 12:19
  Speaker 4: It means that if we want to invest, we know
• 12:23
  Speaker 4: that we want to make up a portfolio to have
• 12:26
  Speaker 4: some shares, and we know we're a growth girly. We're
• 12:29
  Speaker 4: not that aggressive, like we don't want one hundred percent
• 12:32
  Speaker 4: of our assets inside shares, but we know from the
• 12:36
  Speaker 4: pie chart that will come out of that questionnaire that
• 12:38
  Speaker 4: we can do for free. We know, okay, well, maybe
• 12:42
  Speaker 4: fifty percent of my portfolio is going to be in ETFs.
• 12:45
  Speaker 4: I'm going to have twenty five percent of the cash
• 12:47
  Speaker 4: that I have inside a savings account, and I might
• 12:51
  Speaker 4: get a bond with the rest of the twenty five percent.
• 12:53
  Speaker 4: So if you've got and just for number's sake, not
• 12:56
  Speaker 4: that I expect everyone to be starting with ten thousand dollars,
• 12:59
  Speaker 4: because that is not truths just a good number. But
• 13:01
  Speaker 4: if you had ten thousand dollars and you're like, well,
• 13:04
  Speaker 4: I've got ten grand and I'm going to go do
• 13:06
  Speaker 4: my risk profile and get my pie chart, five thousand
• 13:09
  Speaker 4: dollars would be invested in shares, two thousand, five hundred
• 13:13
  Speaker 4: would be into a savings account so that you've got
• 13:16
  Speaker 4: your your cash component, and then two five hundred dollars
• 13:20
  Speaker 4: would go into a bond. So I've now given you
• 13:23
  Speaker 4: a formulation of how you're going to invest to make
• 13:26
  Speaker 4: sure that you're meeting your risk tolerance, which is really
• 13:30
  Speaker 4: important because it means that in the future we're not
• 13:32
  Speaker 4: going to freak out. You are protecting yourself against the
• 13:35
  Speaker 4: markets turning. You might have come out as a high
• 13:38
  Speaker 4: growth girly beck, in which case those percentages are going
• 13:41
  Speaker 4: to be different. But you might also want to be
• 13:44
  Speaker 4: adding an international option into your mix because you want
• 13:47
  Speaker 4: to take on a little bit more risk. Does that
• 13:50
  Speaker 4: make sense? So I'm kind of giving you the blueprint
• 13:53
  Speaker 4: of Okay, here's your empty pie chart. Beck, you've got
• 13:57
  Speaker 4: a fifty percent, you've got a twenty five and a
• 13:59
  Speaker 4: twenty five. What products are we now going to put
• 14:02
  Speaker 4: into our pie chart to make up that pie and.
• 14:05
  Speaker 1: To figure out what your risk tolerance is that it's
• 14:07
  Speaker 1: best to do like this survey is maybe on exactly website.
• 14:10
  Speaker 4: You can literally do any of them. Just go get
• 14:12
  Speaker 4: risk tolerance questionnaire and do it because it's going to
• 14:16
  Speaker 4: help you understand where you stand. And also, even if
• 14:20
  Speaker 4: you're in debt, even if you're not ready to start
• 14:22
  Speaker 4: your investment journey, education is key. The second you get
• 14:25
  Speaker 4: out of debt, you're able to then go all right,
• 14:27
  Speaker 4: well I already know my risk tolerance. I've been having
• 14:29
  Speaker 4: a little look. I've been listening to a few podcasts.
• 14:32
  Speaker 4: I feel quite confident. We don't want to start our
• 14:34
  Speaker 4: financial literacy or investing journey once you have.
• 14:37
  Speaker 1: The cash for it. Yeah, okay, to me.
• 14:40
  Speaker 4: That's shooting yourself in the foot. And also it's really
• 14:43
  Speaker 4: exciting and really sexy to talk about, so like stick
• 14:45
  Speaker 4: around place, it's.
• 14:46
  Speaker 1: Fun, it's fun. It actually is. Now that I've got
• 14:49
  Speaker 1: sharesse I'm like actually kind of like, oh, I check
• 14:51
  Speaker 1: it every single second of every day.
• 14:52
  Speaker 4: You can do. It's risk tolerance. They have whole blogs
• 14:55
  Speaker 4: on how to assess your own risk tolerance and what
• 14:58
  Speaker 4: that means. And I think that I don't care where
• 15:01
  Speaker 4: you get the information back, as long as it's legitimate
• 15:04
  Speaker 4: information from a reliable source and you are educating yourself.
• 15:08
  Speaker 4: Go hamp have a good time. I love that.
• 15:10
  Speaker 1: Okay, so V, before you mentioned the pie blue breeth pie,
• 15:14
  Speaker 1: I don't think I've ever had a bluebreef pie.
• 15:15
  Speaker 5: You.
• 15:15
  Speaker 1: I don't think I've even ever had. You know, there's
• 15:19
  Speaker 1: like American pies, like.
• 15:20
  Speaker 4: If you had a pumpkin pie.
• 15:22
  Speaker 1: I've never had a pumpkin pie. I would love a
• 15:23
  Speaker 1: pumpkin pie pie.
• 15:25
  Speaker 4: Yeah. Yeah, Jessici bullied me into it and it wasn't
• 15:28
  Speaker 4: even bad.
• 15:29
  Speaker 1: It was pretty good. But yeah, sorry pie question. It
• 15:32
  Speaker 1: is still relevant to the pumpkin pie. But you're talking
• 15:34
  Speaker 1: about asset classes and yes, things like that. So I
• 15:37
  Speaker 1: do want to know what are the asset classes. I
• 15:39
  Speaker 1: do know a little bit, but I just just in
• 15:41
  Speaker 1: case anyone.
• 15:43
  Speaker 4: Here in Australia, there are four asset classes that are recognized, right,
• 15:47
  Speaker 4: So A lot of people might talk and I'm going
• 15:49
  Speaker 4: to jump straight into this and talk about bitcoin and
• 15:51
  Speaker 4: cryptocurrencies because a lot of people say, I've got that
• 15:54
  Speaker 4: in my investment portfolio, and like, I mean, slay queen.
• 15:57
  Speaker 4: If that's aligned to your restolerance and you're really willing
• 16:00
  Speaker 4: to take that on and that's a risk that you're
• 16:02
  Speaker 4: happy with and you're well educated, I could not care
• 16:05
  Speaker 4: less because you're making a decision that is best for you. However,
• 16:09
  Speaker 4: that is not a recognized asset here in Australia. It's
• 16:12
  Speaker 4: something that we're working towards and hopefully it will be
• 16:15
  Speaker 4: recognized soon. And the reason because Beck, you know that
• 16:18
  Speaker 4: I'm not that positive about cryptocurrencies because I.
• 16:21
  Speaker 1: Just go they're too risky.
• 16:23
  Speaker 4: Like for me personally, I get anxious investing in something
• 16:28
  Speaker 4: that is far more risky than anything else on the market.
• 16:32
  Speaker 4: It gives me anxiety to think that people are willing
• 16:34
  Speaker 4: to invest in cryptocurrency yet not play with the Australian
• 16:37
  Speaker 4: share market. Somehow, the marketing for cryptocurrencies has been a
• 16:42
  Speaker 4: lot more palatable than the Australian share market, when in reality,
• 16:45
  Speaker 4: if you take any thirty year period of time here
• 16:49
  Speaker 4: in Australia, the share market has never not yielded a
• 16:52
  Speaker 4: positive result for someone like cryptocurrency. Cannot say the same.
• 16:56
  Speaker 4: One it's not been around long enough. But two, there's
• 16:58
  Speaker 4: way too much up and down the volatility, and that
• 17:01
  Speaker 4: is insane. But the reason I want cryptocurrency recognized here
• 17:05
  Speaker 4: in Australia is regulation because the second it is recognized
• 17:09
  Speaker 4: as a genuine asset class by the Australian government, it
• 17:12
  Speaker 4: will be more highly regulated and that will lead to
• 17:16
  Speaker 4: safer outcomes when we are purchasing it. And I like that,
• 17:19
  Speaker 4: so hopefully that happens soon. But right now we only
• 17:22
  Speaker 4: have four. The first, you know and love cash. We
• 17:25
  Speaker 4: all understand that cash is things like your high interest
• 17:27
  Speaker 4: savings accounts, it's your regular savings accounts, it's term deposits.
• 17:31
  Speaker 4: I feel like we all know and love cash because
• 17:33
  Speaker 4: it's the one thing we all have pretty good experience in.
• 17:36
  Speaker 4: The Next is fixed income. So these are things like
• 17:39
  Speaker 4: government and corporate bond. So government bond beck, I feel
• 17:43
  Speaker 4: like it's a little bit confusing, but the best way
• 17:45
  Speaker 4: to understand a government bond is kind of like an IOU.
• 17:49
  Speaker 4: So the government they put their hand up and they
• 17:52
  Speaker 4: say beck, we really want to build some roads. We
• 17:55
  Speaker 4: need one thousand dollars to do that, obviously at scale.
• 17:59
  Speaker 4: And you go, mate, I've got one thousand dollars. I
• 18:02
  Speaker 4: want something for it. And they say, Beck, we'll give
• 18:04
  Speaker 4: you five percent of your thousand dollars, plus we'll give
• 18:07
  Speaker 4: you your money back once we're done building the roads
• 18:10
  Speaker 4: and got the cash back. So over five years, we're
• 18:14
  Speaker 4: going to hold on to your thousand dollars. We'll give
• 18:16
  Speaker 4: you five percent return, so you get some money along
• 18:19
  Speaker 4: the way, and at the end of that five years,
• 18:21
  Speaker 4: we'll give you your thousand dollars back, and you go,
• 18:24
  Speaker 4: that's a pretty good deal. So my favorite way of
• 18:27
  Speaker 4: viewing government bonds or even corporate bonds is it's like
• 18:29
  Speaker 4: an IOU note. So you give them your money and
• 18:32
  Speaker 4: they give you an IOU note and you can then
• 18:34
  Speaker 4: cash that IOU note in when the term is finished.
• 18:38
  Speaker 4: Does that make sense?
• 18:39
  Speaker 1: It does? Do you have to I guess it depends
• 18:40
  Speaker 1: on case by case. But are you able to get
• 18:43
  Speaker 1: out of that early?
• 18:44
  Speaker 4: Yes, you can get out of them early, but it
• 18:46
  Speaker 4: often means you're forfeiting the interest, or there's like fees
• 18:49
  Speaker 4: and charges that might apply. So you don't want to
• 18:51
  Speaker 4: just jump into a bond with your emergency savings that
• 18:53
  Speaker 4: you might need.
• 18:54
  Speaker 1: Sure.
• 18:55
  Speaker 4: The other thing with bonds here in Australia, we are
• 18:57
  Speaker 4: very lucky. They are what is called a triple a
• 19:00
  Speaker 4: raided bond, which means that in the history of Australia
• 19:03
  Speaker 4: having issued bonds to its citizens, they've never not returned
• 19:07
  Speaker 4: their money. You can't say the same for other countries.
• 19:10
  Speaker 4: So there are other countries that issue bonds to their
• 19:13
  Speaker 4: citizens and they don't return the money, so there's a
• 19:16
  Speaker 4: lot more risk, whereas in Australia, government bonds are seen
• 19:19
  Speaker 4: as being a pretty stable return and are considered relatively
• 19:23
  Speaker 4: low risk.
• 19:24
  Speaker 1: Oh great, okay, that's scary. Yeah, it is scary.
• 19:29
  Speaker 4: But like we live in a country where financially we're
• 19:31
  Speaker 4: relatively stable, so we are very lucky. A good example
• 19:35
  Speaker 4: of an unstable market would be like Greece, who are
• 19:38
  Speaker 4: not very good at finances.
• 19:40
  Speaker 1: Oh well, don't give Greece, give Greece government, just.
• 19:44
  Speaker 4: Give it to them for holidays, just for holidays, just
• 19:46
  Speaker 4: for holidays. The academy, Yeah, yeah, yeah, anyway you can contribute.
• 19:50
  Speaker 4: The third thing I want to talk to.
• 19:52
  Speaker 1: You about is property.
• 19:53
  Speaker 4: The great Australian dream. Everybody knows and loves property, right,
• 19:57
  Speaker 4: And there are two ways that you could invest in property,
• 19:59
  Speaker 4: So you might have your primary residence. And obviously I
• 20:02
  Speaker 4: could have a fight with you right now about whether
• 20:04
  Speaker 4: your primary residence is an investment or not, because I
• 20:08
  Speaker 4: believe that your primary residence is not an investment, because
• 20:12
  Speaker 4: beck if you go and buy your first home and
• 20:14
  Speaker 4: then you live in it, you're like, probably you're pretty
• 20:17
  Speaker 4: motivated to pay off your home, right, because then you
• 20:20
  Speaker 4: don't have to pay rent, you don't have to pay
• 20:21
  Speaker 4: your mortgage. It's only an investment if you're willing to
• 20:24
  Speaker 4: sell it. Are you willing to sell your family home? Yeah,
• 20:29
  Speaker 4: as much as it's an asset, And if the proverbial
• 20:32
  Speaker 4: hit the fan, we could sell it and rent again.
• 20:34
  Speaker 4: And you know, it's a security blanket. I wouldn't want
• 20:36
  Speaker 4: you putting that inside your investment portfolio as an asset,
• 20:40
  Speaker 4: because anything inside your investment portfolio we should be looking
• 20:44
  Speaker 4: at as being able to dispose of or being an
• 20:48
  Speaker 4: asset that generates income, and your primary residence doesn't do that.
• 20:52
  Speaker 4: It does a lot to save you money because if
• 20:54
  Speaker 4: you've paid the whole thing off, you're not paying rent,
• 20:56
  Speaker 4: you're not paying a mortgage, and that's pretty sexy. But
• 20:59
  Speaker 4: on the fleet side of property, you've got investment properties,
• 21:02
  Speaker 4: and that's obviously like very sexy. I mean, I must
• 21:05
  Speaker 4: be nice if you have investment properties. But inside the
• 21:08
  Speaker 4: property asset class BECK, you've got investment property, so you
• 21:11
  Speaker 4: could buy residential or commercial properties and lease them out.
• 21:14
  Speaker 4: It obviously requires a lot of capital. You have to
• 21:17
  Speaker 4: have a lot of cash al or to start. The
• 21:19
  Speaker 4: other thing you could purchase if you're like super into
• 21:21
  Speaker 4: property BECK, but don't have a heap of cash, is
• 21:23
  Speaker 4: what's called an ARIIT. So that's a real estate investment
• 21:27
  Speaker 4: trust and they're actually a share that you purchase on
• 21:30
  Speaker 4: the share market that hold property, so you get returns
• 21:36
  Speaker 4: that have come from property. So you're able to invest
• 21:39
  Speaker 4: in property indirectly through the market. So if you've done
• 21:42
  Speaker 4: your little pie and you were like, oh, I really
• 21:44
  Speaker 4: want property in this twenty percent, but I don't have
• 21:47
  Speaker 4: the cash to buy an investment property, or maybe you
• 21:49
  Speaker 4: don't want the responsibility because being a landlord means you know,
• 21:52
  Speaker 4: if they want a heater breaks, you've got to fix it.
• 21:55
  Speaker 4: You've got to have all these overheads. Maybe you're talking
• 21:57
  Speaker 4: about positive or negative gearing. Maybe you don't even want
• 21:59
  Speaker 4: to have that conversation. You could go buy anriit and
• 22:03
  Speaker 4: have exposure to property in your portfolio and have returns
• 22:07
  Speaker 4: from the property market without all the overheads. That's kind
• 22:11
  Speaker 4: of sexy.
• 22:11
  Speaker 1: That is really cool.
• 22:12
  Speaker 4: It in that's kind of fun. And then the last thing, Beck,
• 22:16
  Speaker 4: the fourth asset class recognized in Australia. I think it's
• 22:20
  Speaker 4: very sexy and it's my favorite asset class BECK because
• 22:23
  Speaker 4: not only should they overtime increase in value, yes, most
• 22:27
  Speaker 4: of them pay you for owning them. And that is
• 22:29
  Speaker 4: the share market. So the share market is it's not
• 22:33
  Speaker 4: a secret that it's my favorite type of way to invest,
• 22:37
  Speaker 4: and it's my favorite type of way because it's so accessible,
• 22:41
  Speaker 4: Like you can today invest for as little as one cent.
• 22:44
  Speaker 2: Beck.
• 22:44
  Speaker 4: You were saying before that you have twenty five bucks
• 22:46
  Speaker 4: in shares's and then you're like have I started, And
• 22:48
  Speaker 4: I was like, yes, that's a legitimate investment. Isn't that
• 22:52
  Speaker 4: cool because go back twenty years you wouldn't have had
• 22:55
  Speaker 4: that option because we couldn't purchase shares with twenty five dollars.
• 22:58
  Speaker 4: We had to have lots of cash to begin, which
• 23:01
  Speaker 4: is a stereotype we are still trying to break down.
• 23:03
  Speaker 4: So many people still believe that to be able to invest,
• 23:07
  Speaker 4: you need to have a lump sum of cash. Ye,
• 23:09
  Speaker 4: you don't even Beckx doing it. She didn't even know
• 23:11
  Speaker 4: she was doing it exactly. But when we're talking about
• 23:14
  Speaker 4: shares here in Australia, we have Australian shares.
• 23:17
  Speaker 1: So this is a share that is listed.
• 23:18
  Speaker 4: On the Australian Stock Exchange or the AX as we
• 23:21
  Speaker 4: often call it. On the ASX, you can purchase shares directly.
• 23:26
  Speaker 4: You could purchase your bonds that were talking about before,
• 23:28
  Speaker 4: You can purchase ETFs and managed funds. This gives you
• 23:32
  Speaker 4: access to all your investing options, right, so even those
• 23:35
  Speaker 4: ariits that we're talking about, you can purchase through the AX.
• 23:38
  Speaker 4: If you've got analysis paralysis and you're like, I want
• 23:41
  Speaker 4: exposure to the Australian share market, but I didn't realize
• 23:44
  Speaker 4: there were going to be so many options. You could
• 23:46
  Speaker 4: go for an asset like the ASX two hundred index,
• 23:50
  Speaker 4: which actually takes beck the top two hundred companies listed
• 23:53
  Speaker 4: on the AX, puts your money in that and calls
• 23:57
  Speaker 4: it a today. So that's kind of helped full to
• 24:00
  Speaker 4: know that options.
• 24:01
  Speaker 1: Like that exist.
• 24:02
  Speaker 4: And then obviously if you're a little bit more risky
• 24:05
  Speaker 4: and you want to diversify even further, you've got the
• 24:09
  Speaker 4: option of international shares. So there are so many different
• 24:13
  Speaker 4: stock exchanges around the world. So you've got like the
• 24:15
  Speaker 4: New York Stock Exchange, You've got the New Zealand Stock Exchange,
• 24:19
  Speaker 4: You've got literally so many I won't give you examples
• 24:22
  Speaker 4: because I could go on and on and on, and
• 24:25
  Speaker 4: that really excites me. But with international markets, it gives
• 24:28
  Speaker 4: you the option to diversify internationally. When we zoom out
• 24:32
  Speaker 4: and we just look at the economy as a whole,
• 24:34
  Speaker 4: like the worldwide economy, we know that when Australia is
• 24:37
  Speaker 4: doing really well, the rest of the world might be
• 24:40
  Speaker 4: slightly off. In Australia, we kind of exist in a
• 24:43
  Speaker 4: bit of a bubble, and that bubble means that we
• 24:46
  Speaker 4: are often protected from things that are going on internationally.
• 24:49
  Speaker 4: So like Australia is as an investment when we're talking
• 24:53
  Speaker 4: about the ASEX a lot more conservative than America. America
• 24:57
  Speaker 4: they feel the fields. They are dramatic, right, Like if
• 25:00
  Speaker 4: there is a high, they're feeling the highest of pies
• 25:03
  Speaker 4: and if there is a low, they feel the lowest
• 25:05
  Speaker 4: of lows. That's why I often we'll hear about impending
• 25:08
  Speaker 4: recessions because America is in one that maybe not get
• 25:11
  Speaker 4: hit with it in Australia. Does that make sense? So
• 25:14
  Speaker 4: we are a little bit protected. But to get diversity.
• 25:17
  Speaker 4: When Australia is not performing that well, often we see
• 25:20
  Speaker 4: the rest of the world having better performance, so we
• 25:24
  Speaker 4: might want to look at you know, let's just really
• 25:27
  Speaker 4: simplify it. You go, I want exposure to the Australian
• 25:30
  Speaker 4: market and to international b and I go, well, Beck,
• 25:33
  Speaker 4: an option is the ASX two hundred, which is going
• 25:36
  Speaker 4: to give you exposure to the top two hundred companies
• 25:38
  Speaker 4: in Australia. And then you might go with a global option,
• 25:41
  Speaker 4: which is another option. This is just one of many.
• 25:44
  Speaker 4: Like it's not a recommendation, Beck, but like the MSCI
• 25:46
  Speaker 4: World Index, which gives you exposure to a heap of
• 25:49
  Speaker 4: international assets without having to do too much of your own.
• 25:52
  Speaker 1: Research, like a sample path exactly.
• 25:54
  Speaker 4: So those are the four asset classes that would make
• 25:57
  Speaker 4: up your pie.
• 25:58
  Speaker 1: So V, I don't know about you, but I need
• 26:00
  Speaker 1: to take a quick moment to absorb everything. So let's
• 26:02
  Speaker 1: go to a really quick break.
• 26:03
  Speaker 4: You want to pie?
• 26:05
  Speaker 1: I do want to pe to you really got me
• 26:07
  Speaker 1: craving a pie.
• 26:08
  Speaker 4: I'm going to try and make pie.
• 26:10
  Speaker 1: Can you make a pumpkin pie?
• 26:12
  Speaker 4: No, but I'll buy one from Costco for you.
• 26:14
  Speaker 1: Great's You're welcome.
• 26:16
  Speaker 4: Let's go to a break And on the flip side,
• 26:18
  Speaker 4: we've got some more investing hot tips for you. Don't
• 26:21
  Speaker 4: go anywhere.
• 26:25
  Speaker 1: Welcome back everyone. I think we were just about to
• 26:30
  Speaker 1: come to the most exciting part of the episode.
• 26:32
  Speaker 2: Is it.
• 26:33
  Speaker 4: Actually we've been like baiting them. We're like, this is exciting,
• 26:36
  Speaker 4: this is sexy. People are listening, going the you have
• 26:39
  Speaker 4: rocks in your head and I'm like, yeah, please don't
• 26:41
  Speaker 4: take them out.
• 26:42
  Speaker 1: They're like, when's this going to be the exciting buddies.
• 26:45
  Speaker 1: Sexy is subjective, isn't it.
• 26:47
  Speaker 4: Sexy is very subjective. So don't judge us, No, exactly,
• 26:51
  Speaker 4: don't yu out. So I know that we have spoken
• 26:54
  Speaker 4: about this in the past, but we have not mentioned
• 26:55
  Speaker 4: it yet. But I know you say that superannuation is
• 26:59
  Speaker 4: the most import an investment of them all.
• 27:01
  Speaker 1: Arguably.
• 27:02
  Speaker 4: Well, I think it's maybe not the most important investment,
• 27:06
  Speaker 4: but an incredibly important investment and arguably the biggest investment
• 27:10
  Speaker 4: you will have in your entire lifetime, which probably makes
• 27:13
  Speaker 4: it the most important, right, But that's not true for everybody.
• 27:18
  Speaker 4: But subernuation is really important to touch on here. If
• 27:20
  Speaker 4: we're going to give you, you know, a few actionable
• 27:22
  Speaker 4: steps to get you cracking on creating an investment plan. Right,
• 27:26
  Speaker 4: supernuation is not actually an investment, beck, Subernuation is a
• 27:32
  Speaker 4: tax structure, which makes it sound even more sexy, But
• 27:37
  Speaker 4: it's a tax structure, right. Like think of a clown car.
• 27:40
  Speaker 4: Supernuation is the clown car, right right, and you get
• 27:44
  Speaker 4: to fill your clown car with whatever you want. Like
• 27:47
  Speaker 4: you could go get Bonzo the clown and put him
• 27:49
  Speaker 4: in your car. You could go get like a circus
• 27:50
  Speaker 4: line and put him in the car. You could get
• 27:52
  Speaker 4: in the car yourself, like you could literally, you know how,
• 27:55
  Speaker 4: in a clown car you can basically fit anything. Yes,
• 27:57
  Speaker 4: that's superanuation. You can literally invest in anything inside the
• 28:02
  Speaker 4: super environment. Now, it's really cool. It's important to understand
• 28:05
  Speaker 4: that nuance when we're talking about super because supernuation, I
• 28:09
  Speaker 4: feel like so many of us just think it's a
• 28:12
  Speaker 4: super fund. It's an investment. I just check it online,
• 28:15
  Speaker 4: and I don't have a lot of control, when in reality,
• 28:18
  Speaker 4: you have so much control it's not funny. In fact,
• 28:22
  Speaker 4: you could go and open a self managed superfund and
• 28:25
  Speaker 4: do absolutely everything yourself. I would not recommend that though,
• 28:28
  Speaker 4: because it's actually incredibly regulated now and probably not for
• 28:32
  Speaker 4: the best. But that's a conversation for another day. But
• 28:35
  Speaker 4: I really like thinking of it as a clown car,
• 28:38
  Speaker 4: because you're not going to forget that for one, But
• 28:40
  Speaker 4: to this clown car, it kind of.
• 28:42
  Speaker 1: Gives you access to the circus.
• 28:44
  Speaker 4: And the circus is a very sexy fifteen percent tax rate.
• 28:48
  Speaker 4: Right So, right now, most people are going to have
• 28:50
  Speaker 4: a tax rate between thirty seven and thirty nine percent, right, Like,
• 28:53
  Speaker 4: you're not going to be able to make money and
• 28:56
  Speaker 4: only pay fifteen percent tax, Like it just doesn't happen.
• 28:59
  Speaker 4: This clown car gives us access two or fifteen percent environment,
• 29:04
  Speaker 4: and then we can invest inside of that.
• 29:06
  Speaker 1: So we have this asset.
• 29:07
  Speaker 4: And it's called super and that's actually the money that
• 29:10
  Speaker 4: goes in, and then it's up to you to choose
• 29:12
  Speaker 4: where it's invested. Most commonly we use investment funds, so
• 29:16
  Speaker 4: you might have host plus or hester you might have
• 29:19
  Speaker 4: Australian super We've heard of all of them, right, But
• 29:22
  Speaker 4: it's actually up to you to choose what fund reflects
• 29:27
  Speaker 4: your values and reflects what you want to choose. And
• 29:30
  Speaker 4: I think the coolest thing about super especially right now,
• 29:33
  Speaker 4: because Beck, we're in the middle of a cost of
• 29:34
  Speaker 4: living crisis, we're talking about investment. It is not beyond
• 29:37
  Speaker 4: me that people listening to this episode might be like,
• 29:41
  Speaker 4: v I can't invest. You know, at the start of
• 29:44
  Speaker 4: the episode, Beck, you asked me like, hey, what if
• 29:46
  Speaker 4: we didn't start investing in January? And it was our plan.
• 29:49
  Speaker 4: So many of us haven't been able to even though
• 29:51
  Speaker 4: it's part of our goals. And that's okay. But one
• 29:54
  Speaker 4: way to get ahead is to look at our super
• 29:57
  Speaker 4: because it's not going to cost you a thing out
• 29:59
  Speaker 4: of your bank account to now actively manage this. To
• 30:02
  Speaker 4: go and have a look at what portfolio you're in.
• 30:05
  Speaker 4: To make sure that you understand your risk tolerance. Go
• 30:08
  Speaker 4: do a free risk tolerance questionnaire. There will be one
• 30:12
  Speaker 4: on your superfund website. Go do that and see what
• 30:16
  Speaker 4: your risk tolerance is and then make sure your investment
• 30:19
  Speaker 4: is reflective of that. If it's too hard, call your
• 30:22
  Speaker 4: super fund. You're paying fees for your super fund to
• 30:26
  Speaker 4: call these people and answer the questions like it's going
• 30:29
  Speaker 4: to help you be in a better position in the
• 30:31
  Speaker 4: long term, so that instead of feeling really stagnant and
• 30:34
  Speaker 4: like you're not in control of your finances, let's zoom
• 30:38
  Speaker 4: out a bit, look at the big picture and go, well,
• 30:39
  Speaker 4: I can't really control my budget. I have literally no
• 30:42
  Speaker 4: free cash flow, but I can have a look at
• 30:44
  Speaker 4: my super and make sure that future me is in
• 30:46
  Speaker 4: the best possible position, so that I feel like there
• 30:50
  Speaker 4: is a light at the end of the tunnel, Like
• 30:52
  Speaker 4: times might be tough right now, but this is just
• 30:54
  Speaker 4: a season of lifeback because it's not always going to
• 30:56
  Speaker 4: be like that. Because we're caring about our super we
• 30:59
  Speaker 4: know what's in there, we know what insurances are in
• 31:01
  Speaker 4: there to potentially protect us. So superannuation is something that
• 31:05
  Speaker 4: we need to talk about and inside your super beck
• 31:08
  Speaker 4: all the assets that we discussed in the first end
• 31:10
  Speaker 4: of the show.
• 31:11
  Speaker 1: Sure, okay, So if you've like hypothetically never even looked
• 31:14
  Speaker 1: at your super you don't maybe you know how much
• 31:16
  Speaker 1: is in there, but you've never actively invested that money anywhere.
• 31:20
  Speaker 1: Will it just be.
• 31:21
  Speaker 4: It'll be automatically invested on your palf. Most usually when
• 31:25
  Speaker 4: you got your super fund forms and they handed them
• 31:27
  Speaker 4: over to you and said, congrats on the new job, Beck,
• 31:29
  Speaker 4: can you return these forms to us? Right, you would
• 31:31
  Speaker 4: have said, I don't know what I'm talking about, and
• 31:34
  Speaker 4: you would have ticked balanced portfolio yea and been like, h,
• 31:38
  Speaker 4: I don't know. Balanced sounds good because often they have
• 31:41
  Speaker 4: like in little brackets underneath the balanced most common or
• 31:44
  Speaker 4: this is the most popular or whatever, and you go, well,
• 31:46
  Speaker 4: if it's popular, I'm in. But more often than not,
• 31:50
  Speaker 4: people between the age of twenty and forty are not
• 31:53
  Speaker 4: actually balanced investors. So from the research that we've done
• 31:57
  Speaker 4: inside of She's on the Money, we know that most
• 31:59
  Speaker 4: people in our community are growth or high growth investors
• 32:03
  Speaker 4: like they should be, not they should be. They are
• 32:05
  Speaker 4: actually growth investors. That's what they've come back as. So
• 32:10
  Speaker 4: if you're in that bucket of I don't know my
• 32:12
  Speaker 4: risk profile, but I have a default of balanced, and
• 32:16
  Speaker 4: you're not actively changing that, that could literally cost you
• 32:19
  Speaker 4: hundreds of thousands of dollars in returns over the long term.
• 32:23
  Speaker 4: So by going and checking it and making sure you're
• 32:26
  Speaker 4: dotting all your eyes and crossing all your t's. It's
• 32:28
  Speaker 4: so easy, I promise, And like this is not condescending
• 32:32
  Speaker 4: at all, back, but subranuation funds service every single Australian
• 32:37
  Speaker 4: that is employed, right, so it has to be understandable.
• 32:41
  Speaker 4: They have to talk in a way that makes sense
• 32:43
  Speaker 4: and if it doesn't, they're doing you a disservice. So
• 32:47
  Speaker 4: go and have a look at your superfund. Make sure
• 32:49
  Speaker 4: it's reflective of your actual risk tolerance, because the difference
• 32:53
  Speaker 4: between a balanced fund and a high growth fund is
• 32:55
  Speaker 4: often at least two hundred thousand dollars by the time
• 32:58
  Speaker 4: you retire. Even if if you're not able to invest,
• 33:01
  Speaker 4: you know, even a dollar on Chaz's like Beck has,
• 33:05
  Speaker 4: you can go and have a bit of a fix
• 33:07
  Speaker 4: up with your super and make sure that future use
• 33:08
  Speaker 4: in the best possible position. And I think that's really empowering.
• 33:11
  Speaker 1: Yeah, Okay, when.
• 33:12
  Speaker 4: Was the last time you looked at your super Beck?
• 33:15
  Speaker 1: Honestly, actually not that longer. I'm gonna say January.
• 33:18
  Speaker 4: Oh exciting. And when you looked at it, were you
• 33:21
  Speaker 4: like reviewing your platform or you were you just having
• 33:24
  Speaker 4: a look at how much money was in there? Like
• 33:25
  Speaker 4: what were you up to in there?
• 33:27
  Speaker 1: I was curious. It's like, what's going on here? And
• 33:29
  Speaker 1: it's much lower than thought it would be. But I
• 33:33
  Speaker 1: changed some things around and I think I'm in a
• 33:35
  Speaker 1: good I don't know investment. I like that, So we'll see.
• 33:38
  Speaker 4: If you've got a bit of analysis proalysis. One of
• 33:41
  Speaker 4: my favorite tools is my super Tool, which is a
• 33:43
  Speaker 4: free Australian government run platform that compares all of the
• 33:47
  Speaker 4: superannuation funds in Australia apples for apples, like we all
• 33:52
  Speaker 4: know those comparison sciites. And don't get me wrong, I
• 33:54
  Speaker 4: love a little keepe me a cat with a vest,
• 33:56
  Speaker 4: But those are marketing platforms that feed you products based
• 34:01
  Speaker 4: on who's paying them the most money. Right, So making
• 34:05
  Speaker 4: sure that if you're going to look for a new
• 34:06
  Speaker 4: super fund, you're not using a paid platform. You're using
• 34:09
  Speaker 4: a government run platform, and beck if it gets too overwhelming,
• 34:13
  Speaker 4: you know, like I don't really know how to use this.
• 34:15
  Speaker 4: My favorite part of your super Tool is they give
• 34:17
  Speaker 4: you the top five funds in Australia and the bottom
• 34:20
  Speaker 4: five funds in Australia, and I would say, as a
• 34:22
  Speaker 4: basic hygiene, please make sure your super fund is not
• 34:25
  Speaker 4: in those bottom five and you're doing not that bad ideally,
• 34:28
  Speaker 4: ideally in a perfect world, but I do know also,
• 34:31
  Speaker 4: superannuation companies tend to have like their own in build
• 34:34
  Speaker 4: financial team.
• 34:35
  Speaker 1: They can give you advice and all that kind of things.
• 34:37
  Speaker 1: So yeah, take advantage of exactly as you're saying, be
• 34:40
  Speaker 1: take advantage. Just to recap, we've gone through investment goals,
• 34:44
  Speaker 1: asset classes, risk tolerance. Are you talking.
• 34:47
  Speaker 4: Dirty to me?
• 34:48
  Speaker 1: I know that's yes, I don't know. It's a loud
• 34:51
  Speaker 1: on the shot might have to bleep.
• 34:53
  Speaker 4: All of these all of my favorite things.
• 34:56
  Speaker 1: We've also obviously talked about super but I guess, like
• 34:59
  Speaker 1: on like a more human level, like what actually is
• 35:02
  Speaker 1: holding us back? Interest rates? Interest rates and possibly you know,
• 35:06
  Speaker 1: like not knowing enough about all of this stuff, which
• 35:09
  Speaker 1: is why we're here. Also not really having the funds.
• 35:12
  Speaker 1: We totally get it. There's all these things, but it
• 35:14
  Speaker 1: can be so empowering. When I jumped into my superannuation
• 35:18
  Speaker 1: account and like, I, this is before you this before
• 35:20
  Speaker 1: I knew anything. I kind of just like was winging it.
• 35:23
  Speaker 1: But there's something so nice about taking this money that
• 35:26
  Speaker 1: I didn't put in there myself but did earn and
• 35:30
  Speaker 1: putting it in different like risk asset classes. I don't
• 35:34
  Speaker 1: really know.
• 35:34
  Speaker 4: I'm really impressed. I think I love that you're having
• 35:36
  Speaker 4: these conversations now.
• 35:37
  Speaker 1: Thank you so much. The old Beck.
• 35:39
  Speaker 4: She's gonna be so impressed. No, no, keep her. I
• 35:42
  Speaker 4: love her too.
• 35:42
  Speaker 1: Yeah, maybe I'll keep her. She's proud. She is proud.
• 35:46
  Speaker 1: That's very true.
• 35:47
  Speaker 4: But I guess now is a good time to have
• 35:49
  Speaker 4: a conversation about, like, what is holding us back Beck
• 35:52
  Speaker 4: starting your investment journey. It took I would say, a
• 35:55
  Speaker 4: year before you felt confident enough to like download an
• 35:58
  Speaker 4: app and like even have look at it. And I
• 36:00
  Speaker 4: mean you've started at a baby level, but like that
• 36:04
  Speaker 4: is the best type. Right You're dabbling your toes in
• 36:06
  Speaker 4: the water, and I'm assuming that that doesn't feel overwhelming. No,
• 36:11
  Speaker 4: what was holding you back before or what's been holding
• 36:14
  Speaker 4: you back from you know, doing it before?
• 36:16
  Speaker 3: Now?
• 36:17
  Speaker 1: Genuinely, I think it was it was a number of things.
• 36:20
  Speaker 1: It was like not having the money to even start
• 36:22
  Speaker 1: in emergency fund. I just started one, which is incided you.
• 36:26
  Speaker 1: Actually it's not much in their button, it's there, and
• 36:29
  Speaker 1: I think also like not knowing enough about it. It's
• 36:33
  Speaker 1: also and I think maybe a lot of people can
• 36:35
  Speaker 1: relate to this. There's something so like mentally draining about
• 36:38
  Speaker 1: getting myself out of a scroll hole on Instagram and
• 36:41
  Speaker 1: going to download something and then signing up and.
• 36:43
  Speaker 4: Then I left the algorithm like I live on.
• 36:47
  Speaker 1: Yeah, definitely, but once once you get started. I've only
• 36:50
  Speaker 1: got twenty five dollars, but god, it feels good. And
• 36:52
  Speaker 1: the motivation that I got from just that that inspired
• 36:55
  Speaker 1: me to start an emergency fund that inspired me to
• 36:58
  Speaker 1: start saving it. I don't know what's happened to myself,
• 37:03
  Speaker 1: but like, just like starting so small get realerious. Yeah,
• 37:06
  Speaker 1: I really did. Even if you have like five dollars,
• 37:09
  Speaker 1: if you put it in a savings accounts like these
• 37:11
  Speaker 1: are savings I've named mind savings do not spend, and
• 37:14
  Speaker 1: I'm like, there's five dollars in there? Really back totally,
• 37:18
  Speaker 1: yeah exactly, So I've actually cured poverty all around.
• 37:21
  Speaker 4: But oh my gosh, I love this for us.
• 37:23
  Speaker 1: I feel like they're writing an article about me right now.
• 37:26
  Speaker 1: I'm making a doco but I'm sure that'll come out soon.
• 37:28
  Speaker 1: But no, there's something so nice about just like starting small,
• 37:31
  Speaker 1: as small as you want to, as small as you can.
• 37:32
  Speaker 4: But it's like a little bite sized piece that doesn't
• 37:34
  Speaker 4: feel overwhelming. And I think so many of us set
• 37:36
  Speaker 4: goals where we're like, Okay, I'm going to start investing,
• 37:40
  Speaker 4: and the way I'm going to do that is I'm
• 37:41
  Speaker 4: actually going to save five hundred dollars and then I'm
• 37:43
  Speaker 4: going to invest that five hundred dollars is so much money,
• 37:46
  Speaker 4: You're going to feel so much responsibility making that decision
• 37:49
  Speaker 4: when it comes time to doing that, because it is
• 37:52
  Speaker 4: a big decision. And I mean, at the moment, we're
• 37:54
  Speaker 4: in the middle of a cost of living crisis, and
• 37:56
  Speaker 4: I am pretty sure a lot less of us are
• 37:58
  Speaker 4: investing when we actually should be or want to be.
• 38:02
  Speaker 4: And I mean, the only way to grow our capital
• 38:06
  Speaker 4: and grow the money that we currently have is investment.
• 38:10
  Speaker 4: Like it sounds dire, but it's literally the only way
• 38:13
  Speaker 4: beck that you are going to make money without exchanging
• 38:17
  Speaker 4: your time for cash. And that's how wealth is created.
• 38:22
  Speaker 4: And I guess that's why I am so passionate about it.
• 38:24
  Speaker 4: And I mean cash it's really sexy and I like
• 38:27
  Speaker 4: seeing it in my bank account, but I also want
• 38:30
  Speaker 4: future me to be in the best possible position. And
• 38:33
  Speaker 4: I mean last year, the stock market actually did really well,
• 38:36
  Speaker 4: so if we look at the S and P five hundred,
• 38:38
  Speaker 4: which is an index used in the US, it returned
• 38:41
  Speaker 4: twenty four percent. Bech, oh, my twenty four percent.
• 38:45
  Speaker 1: God, that's my pick.
• 38:46
  Speaker 4: That's obviously just reflective of the economy and what's going on,
• 38:50
  Speaker 4: because obviously we have quite high interest rates. I mean
• 38:53
  Speaker 4: at the moment they're plus five percent, which is a lot.
• 38:56
  Speaker 4: A lot of us are experiencing home loans of like
• 38:58
  Speaker 4: more than six percent, and there's a whole conversation in
• 39:01
  Speaker 4: that coming very soon. Inflation is also really high. Last
• 39:05
  Speaker 4: year it was at seven point one percent, and that
• 39:07
  Speaker 4: was crippling. Everybody was anxious. So, like, I get why
• 39:10
  Speaker 4: we haven't started, and I can also see why so
• 39:12
  Speaker 4: many people feel like keeping cash in the bank is
• 39:16
  Speaker 4: the smartest thing to do. But it was actually a
• 39:19
  Speaker 4: little bit dumb, wasn't it. Like, and our community aren't silly,
• 39:24
  Speaker 4: but in hindsight, the share market had a really solid return.
• 39:28
  Speaker 4: We're missing out on potentially great returns. So keeping your
• 39:32
  Speaker 4: money in a bank is actually, over time, going to
• 39:34
  Speaker 4: set you behind. I mean, even with inflation, right, Like
• 39:38
  Speaker 4: to make this even more dramatic, it's not dramatic, it's
• 39:41
  Speaker 4: just fact, but like, so we know that inflation last
• 39:44
  Speaker 4: year was seven point one percent, right, Yeah, can I
• 39:47
  Speaker 4: contextualize that for you? So if you just had your
• 39:50
  Speaker 4: money in a bank account and it wasn't returning anything
• 39:54
  Speaker 4: at the moment. We've got some pretty sexy high interest
• 39:56
  Speaker 4: savings accounts that exist, so please make sure you're considering them.
• 39:59
  Speaker 4: But if you you just had ten thousand dollars sitting
• 40:02
  Speaker 4: in a bank account, you had analysis paralysis, you wanted
• 40:05
  Speaker 4: to invest it, but you didn't because of inflation, that
• 40:09
  Speaker 4: ten thousand dollars today only buys you nine thousand, two
• 40:14
  Speaker 4: hundred and ninety dollars worth of what it could last year.
• 40:18
  Speaker 4: That's seven hundred and ten dollars that you have lost technically,
• 40:24
  Speaker 4: not physically. You still might have that ten thousand dollars
• 40:27
  Speaker 4: inside your savings account and you might go, but V,
• 40:29
  Speaker 4: I still have what I had last year. But the
• 40:32
  Speaker 4: costs of goods and services last year was seven point
• 40:36
  Speaker 4: one percent less than it is this year. So life
• 40:38
  Speaker 4: is costing you more this year. Beck, you are spending
• 40:41
  Speaker 4: technically seven hundred and ten dollars more than you were
• 40:44
  Speaker 4: last year.
• 40:44
  Speaker 1: That makes sense.
• 40:45
  Speaker 4: That's a lot of money. Yeah, that's a lot of
• 40:47
  Speaker 4: money to be making a decision on. So I really
• 40:50
  Speaker 4: want people to understand that there's massive risk in not
• 40:53
  Speaker 4: taking risk. Is that powerful, But there's massive risk in
• 40:58
  Speaker 4: not doing something. And that I think, as my dad
• 41:01
  Speaker 4: used to say, is like not making a choice is
• 41:03
  Speaker 4: actually making a choice. Yeah, like you're choosing the other outcome.
• 41:07
  Speaker 4: You might not be choosing to move, but like that
• 41:10
  Speaker 4: is a choice. And I think that the choice not
• 41:12
  Speaker 4: to invest, it's actually not risk free. People think that
• 41:16
  Speaker 4: they're not. You know, they're saving their butts, but it's
• 41:19
  Speaker 4: not risk free. If you leave your money exposed to
• 41:22
  Speaker 4: things like inflation over a long period of time, inflation
• 41:25
  Speaker 4: eats away at it and then there's not much left.
• 41:28
  Speaker 4: And even though you think you're putting future you in
• 41:30
  Speaker 4: the best possible position, you're not. So we need to
• 41:34
  Speaker 4: talk about I guess what's holding us back? And sometimes
• 41:36
  Speaker 4: that's analysis paralysis. We don't know how to make a
• 41:39
  Speaker 4: decision because we're just overwhelmed with education and there is
• 41:42
  Speaker 4: so much of it today. We might not be in
• 41:44
  Speaker 4: a financial position to make that decision. And that's okay.
• 41:48
  Speaker 4: That's where we need to zoom out look at things
• 41:50
  Speaker 4: like our super and what we can control. We need
• 41:52
  Speaker 4: to look at our income. Can we negotiate that, should
• 41:56
  Speaker 4: we be changing roles?
• 41:57
  Speaker 1: What does that look like.
• 42:00
  Speaker 4: In a position where we just don't have a solid
• 42:02
  Speaker 4: cash flow plan? Are we just you know, letting money
• 42:05
  Speaker 4: slip through our fingers, which you were very guilty of
• 42:08
  Speaker 4: last year. And it's not even me going that's a
• 42:11
  Speaker 4: bad thing. But like, how much more in control do
• 42:13
  Speaker 4: you feel today than you did six months ago?
• 42:16
  Speaker 1: Definitely like I'm still spending Like no, we love that.
• 42:19
  Speaker 4: We love that, we take every step, yes, the way
• 42:23
  Speaker 4: we need to take it. But I think it's really
• 42:24
  Speaker 4: important to maybe have a bit of a think about
• 42:27
  Speaker 4: personally what's holding you back, because motivation to start investing
• 42:32
  Speaker 4: isn't going to come from me or you, Beck, It's
• 42:35
  Speaker 4: going to come from internal. Like a lot of people
• 42:37
  Speaker 4: are going to say, Beck, how did you get the
• 42:39
  Speaker 4: motivation to you know, do X, Y and Z. And
• 42:41
  Speaker 4: I can almost guarantee your answer is never going to
• 42:44
  Speaker 4: be oh, I just listened to this podcast. Yes, that
• 42:49
  Speaker 4: might have been the trigger, but the motivation came from inside.
• 42:52
  Speaker 4: You decided that enough was enough and you wanted to change,
• 42:55
  Speaker 4: and that has to come from you, and to do
• 42:57
  Speaker 4: that you need to understand you. So I understand and
• 43:00
  Speaker 4: all of these things that we've spoken about today, but
• 43:02
  Speaker 4: also sit down and be like, well, why aren't I
• 43:04
  Speaker 4: in the position I would like to be in? And
• 43:06
  Speaker 4: how do I get there? Well?
• 43:08
  Speaker 1: Powerful do we think we're done here? I feel satisfied?
• 43:10
  Speaker 1: Perposal two.
• 43:11
  Speaker 4: All right, Well, happy Wednesday, guys. If you're not listening
• 43:15
  Speaker 4: to this on a Wednesday, please insert whatever day of
• 43:17
  Speaker 4: the week it is, and we'll see you on Friday
• 43:20
  Speaker 4: to catch up with the team.
• 43:21
  Speaker 1: So you guys are fine.
• 43:27
  Speaker 5: The advice shared on She's on the Money is general
• 43:30
  Speaker 5: in nature and does not consider your individual circumstances. She's
• 43:34
  Speaker 5: on the Money exists purely for educational purposes and should
• 43:37
  Speaker 5: not be relied upon to make an investment or financial decision.
• 43:41
  Speaker 5: If you do choose to buy a financial product, read
• 43:43
  Speaker 5: the PDS TMD and obtain appropriate financial.
• 43:46
  Speaker 1: Advice tailored towards your needs.
• 43:48
  Speaker 5: Victoria Divine and She's on the Money are authorized representatives
• 43:52
  Speaker 5: of money sirper pty Ltd ABN three two one is
• 43:56
  Speaker 5: six four nine two seven seven zero eight af I
• 44:00
  Speaker 5: sell four five one two eight nine
• 44:12
  Speaker 4: Mm hmm