Latest / The Curve / TCW76: The world's most expensive wedding & an $83 trillion wealth transfer.
Transcript
- 0:00Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the
- 0:06money, business and stock market tea. Everyone should experience for us at least once
- 0:10in their lives, and Annie shouldn't miss out just because she can't afford it. Help
- 0:13me, I'm poor. How's your week then? Excuse me, God. How's your
- 0:18week been, Vic? Good. I have to preface this. I kind of still feel a bit drunk. From
- 0:24what? Did you drink last night? I did, Sophie. What? You never do a midweek. What did you
- 0:32do? I went to Coco. What's that? Look it up. It is like a super club. Was it fun?
- 0:41It was so fun. What was it like? Painting the picture. It's like a theatre, so if you
- 0:47think about the Civic in New Zealand, which is a terrible analogy, I feel like London
- 0:51just does everything so much better. Everything's bigger, grander, more audacious. Yeah, it
- 0:58was just like a theatre. Was it kind of like a super club and a massive
- 1:01amphitheater or something? Yeah, yeah. And you've got like those little things around
- 1:04the edges that people, you know, that usually the queen and king sit in. Oh, like the boxers.
- 1:11And there, there's people there and then there's like different rooms with different DJs
- 1:15and it's like honestly, it's just like quite wild. What time did you get home? About to a
- 1:19pop. Not too bad. No, one day you were late for podcasting this morning. I love that
- 1:25things like I'm going to be half an hour late. I was like, that is so off-brand. It's not
- 1:29even funny. Before we move on, I'd just really like to play a snippet of our friend Megan,
- 1:36who we just spoke to from the Curve community. She was admittedly about five vodka
- 1:41can butchers deep. But at least so hard. As soon as we were like setting up the tech,
- 1:46a tech spec being like, I think she's had a drink or two and then she was like, I'm having a
- 1:50kombucha vodka and I was like, of course you are. Good on you. It's a Friday night. It's a Friday night,
- 1:54yeah. And I came on and I was like, oh, yes, she's had a few drinks but I was, I guess, you know,
- 2:01you're way more open and honest when you've had a few drinks. And honestly, she could not speak
- 2:06more highly of the course, which I was like, this is fantastic. But yeah, it was very humbling to see
- 2:13how it had changed her life and she's now got her son investing and he's seven. I was like,
- 2:19oh my goodness, this is amazing. The amount of parents that seem to have kids interested in money
- 2:24and investing after doing these courses is pretty incredible. But we're just going to play a tiny
- 2:29little snippet. We'll make like a cute little montage of a few of the things she said because
- 2:33I think the best part for me on this whole conversation was that, you know, she's got four kids
- 2:40and she's, you know, she works as a cleaner. She doesn't have like an abundance of money
- 2:44and yet because of the curved classroom, she's been able to sort of her finances out in a way
- 2:49where she has enough to invest. And that's the whole point of this course is to get you ready
- 2:53and get your like, you know, priorities and goals and relationship with money to a point where,
- 2:59yeah, you can start investing in the stock market and she's like a very great example of that.
- 3:04Basically, I lost my job during COVID but with four kids, it was really hard to get a part-time
- 3:11job that suited me. So I went out on my own and I started cleaning people's houses.
- 3:17Geron's the main breadwinner. I'm part-time at best. I was like, I think we need to like put
- 3:23money somewhere and he was like, where are we going to put money in? I said, I don't know but I'm
- 3:26going to sort it. I started the course, put some money into the sheer market. Two days later,
- 3:32I remember messaging my sister and being like, oh my god, start listening to this podcast.
- 3:39But we talk about a lot with the kids like, all the kids want to invest like, they're like, oh,
- 3:43take some of my money and invest it, man. I just, I think I always felt like I was trying to
- 3:50find a way to cope. Like, how can I make this feel accessible? How can this be accessible to be
- 3:56because I didn't come for money. I'm not rich. We don't make a lot of money. And then to be given
- 4:01the tools to be like, you don't need a lot of money. Like, dollar class everything. Just like,
- 4:05put the money in, order invest. So easy. That's why I did the beginning. And it's a crow. Like,
- 4:11I've been in it for two years now and I'm f***ing flying. And the more you put in the more you want
- 4:16to put in, honestly, it's so addictive. Oh my god, you must be so proud of yourself. Like,
- 4:21that you put, you've got four kids. You don't have heaps of spare money and you put the time aside
- 4:26to sort out your finances and get yourself to a place that you can invest. Like, that is amazing.
- 4:32Okay, I loved that. And also just worth saying, if there's anyone else in the community,
- 4:36like she sent us the cutest email, just being like, I loved the cause. And we were like, oh,
- 4:40do you want to share on the podcast? So we've actually changed our email address on the website.
- 4:45I think it's L-O-L-O. Hello, at thecurvebletform.com. Is that right? And you email address. So if you,
- 4:52yeah, have anything you want to share, like any stories or experiences you've had listening
- 4:57to the podcast or thoughts like, love to hear from you. So feel free to, you know, like us an email.
- 5:02Vic. Yes. Have you done some research? No, this time I just thought I'd wing it.
- 5:08Yeah. Nice. I don't see you so badly. I'm like,
- 5:14why not? Because of my notes, because I did some research. My face up there. I can't.
- 5:21There she is. Up, girl.
- 5:26Definitely still pest. Um, anyway.
- 5:34I love that the theme of this is just, yeah, we should record on a Friday night. That'd be fun.
- 5:40Okay. Holy, but goalie. Imagine the soft. And I mean, you are very talented.
- 5:47But imagine if you could charge $10 million for a couple of hours of work, like you were so talented
- 5:55that you could charge someone $10 million for your skills. I don't think there's that many people
- 6:00in the world that could charge $10 million for a couple of hours worth. No. Well, Justin Bieber is one
- 6:04of them. Yeah. I mean, he's Justin Bieber. But if you haven't heard, which I feel like a lot of
- 6:11people probably have, because it's been going forever, what seems like forever is this Indian wedding.
- 6:17And it's Asia's richest family. And the sun is getting married. It's cool. It's the, I'm
- 6:23I don't know if I can get a bunch of this. And Barney family. And the parents, so the sun is
- 6:30getting married. And the parents, the father has started this company called Reliance Industries.
- 6:37It's one of the biggest companies in India. They do absolutely everything. Like, what do they do?
- 6:43Oil, solar, TV, fashion stores, supermarkets, asset management. Because it's like every industry,
- 6:51everything. It's like a conglomerate. It's like, it's massive. They started out in oil and they
- 6:55branched out, I think, like 10 years ago into all these other areas, the other industry.
- 7:00Anyway, it's a public company, actually. And it's listed on Indian Stock Exchange. But
- 7:06anyway, this wedding is outrageous. I looked into like the costs and what they're spending. And
- 7:12just to set the scene, it's 134 days of celebrations. That's nearly a third of a year.
- 7:20Or it is over a third of a year. Oh, sorry. Who the hell has time for that?
- 7:25And energy. I'd be like, what? Yeah. Are you, it's like longer than
- 7:30Glastonbury. It's like a festival, but it's like a half a year. Glastonbury is that three days,
- 7:35four days. Yeah, that's right, man. But even Glastonbury is extreme.
- 7:37134 days. Yeah, it's like a gender reveal. You know, it's like no one cares except the parents,
- 7:43really. I must say I kind of do like the reveals. I'm always like, oh, what is it?
- 7:47A boy wanted to help. He's different people. I don't know. I'm like, it's fun. Sorry,
- 7:52I continue. Yes. So what kind of stuff have they spent money on? So the parents or the father
- 7:59is worth $120 billion. He is the 11th richest person in the world. And this is the total cost
- 8:07of the wedding. Now, before I get, I just want to like preface kind of what's been involved.
- 8:12So it is the most costly wedding in history. And I guess it's kind of hard to figure out, like,
- 8:17help, you know, to get accurate data on how much people have spent on their weddings. But it is
- 8:21assumed to be the most expensive wedding in history. And this guy that's getting married is 29
- 8:27years old. He actually works at the company Reliance and his wife to be is actually, she's very
- 8:34kind of well off as well. So they're kind of very two very well families. Anyway, the wedding
- 8:39includes visits to the family's personal zoo. There's like trips to Europe for all the guests,
- 8:47music events that had Rihanna, Justin Bieber, Kim Kardashian and Mike Tyson are making
- 8:53appearances. Like the lineup of Boris Johnson Tony Blair, the CEO of BP. Sorry, the weirdest
- 9:01combination of people Kim Kardashian and the CEO of BP. Yeah, Mark Zuckerberg, Bill Gates,
- 9:08they definitely paid Justin Bieber and Rihanna. And yeah, I think it's kind of personally,
- 9:12I mean, the fact that it's special over the news, how much Justin Bieber got paid to do that.
- 9:16Like, you're paying Justin Bieber $10 million to come and sing a few songs for your guests.
- 9:21Like, did you see any of his performance? Was he just like, baby, baby, baby, oh, you know,
- 9:28like I say, like, oh, baby. Yeah, yeah. No, he, he always seems a bit not there. But anyway,
- 9:35so, do you know he's going to be a dad? Oh, no, crazy. Crazy, crazy. So 134 days of wedding
- 9:41celebration, 65 chefs are cooking, yeah, crazy. They're having at their 3,000 acre property
- 9:49for the actual wedding. And it's costing $120 million. Sorry, I know that's speechless.
- 9:58So what they did do, which I found out, which I thought was quite incredible, is that they had,
- 10:01as part of the celebrations, they hosted a wedding for 50 underprivileged couples that couldn't
- 10:07afford a wedding. So they almost, yeah, they started a wedding for them. But like, it was a mass
- 10:12wedding. So even I got married at the same time, which is kind of weird. I think you probably could
- 10:16splash out a bit more. Yeah, yeah. You give everyone a million dollars to have their wedding.
- 10:19Anyway, it's just like wild lots coming out of this. And the actual wedding was on Friday,
- 10:25so it's just been, but hopefully that's the end of it. Or there's probably post celebration.
- 10:30There's probably 134 days of honeymoon or something. I don't know. Well, this is kind of
- 10:33I was wondering, like, where if you were celebrating for that long, at what point would you put the
- 10:36wedding? Like, would it be the last event? Because no, you'd need the wind downs, you know? I
- 10:41don't know. Yeah. But then you'd want the build up. And then you'd be like, yeah, then we're going
- 10:44to marry. We're even being exhausted by that point. You'd want it to be first. I just feel like
- 10:49sometimes people's, yeah, it's what people's been money on. Do you know what I mean? For them,
- 10:53maybe that's like, you know, it's their, their oldest son getting married. They want to spend money.
- 11:00I don't know. It's everyone consuming money how they want, but it does seem in this day and age
- 11:05quite in self-adulgent, definitely. But hey, 120 million for them is probably nothing. Like,
- 11:12Reliance is a $250 billion company. And he is worth $120 billion. So in other news,
- 11:24I am keen to hear your opinion on the soft. Do you think that government officials or like people
- 11:31that work in government should be able to trade stocks? Well, I don't, I guess I don't really know
- 11:36what government officials know about companies. Yeah. So it's kind of hard for me to know if that's
- 11:42unfair or not. Yeah, there's a big debate at the moment going on in the US, you know, whether
- 11:46whether government officials should be able to trade stocks and there's an act that they're
- 11:49trying to bring into place, which is called the ethics act. And the reason behind it is that
- 11:55you're privy to a lot of sensitive information. You know, if you knew that there was a,
- 12:03what's a good example, like a healthcare, a change to some healthcare regulation,
- 12:09that was going to impact the healthcare industry super negatively, you would sell all your stocks
- 12:14in the healthcare space. Or on the flip side, if you knew that they might remove the ban on
- 12:21trading over like Anzac Day for retailers, which is really, really positive for retailers,
- 12:26therefore you'd buy a whole lot of retail stocks. You know, like things like that. I think,
- 12:31if you're, but what's the difference if you work in tech and you know what's happening in the tech
- 12:34industry, you can trade based on that information. And you always say invest in what you know and
- 12:39like use your knowledge and what's around you. So like, I kind of don't, yeah, I don't know,
- 12:43I guess it depends how privileged that information is. Yeah, there's definitely a line. If you're
- 12:48in senior management, say you worked at Google and you were CFO and you knew what the financials
- 12:56were for that company before anyone else, you can't trade on that information. There is periods
- 13:01of time where you cannot trade. And there's windows. There's only windows after those results
- 13:06that are released that you can trade on the information. So there is rules in place for executives
- 13:12of companies. There are some rules in place for government officials, but there's not outright
- 13:17bands. And I think the difference here is that like, you could be working on a proposal or a
- 13:21law for so long. And then it comes into play where it's like, with a company, it's like,
- 13:28information is much more quick, I guess, in companies, you know, there might be a new product or
- 13:33there might be a great financial result or a terrible financial result. I'm just going to extrapolate
- 13:39out what you're saying. I think what you're trying to say is that governments have a really long
- 13:43term view on the picture of what society will look like, the kinds of companies that can operate,
- 13:49the technology that's going to be acceptable or you know, they have like a very holistic view
- 13:55of society and therefore what consumer behaviour will be and blah, blah, blah, which in turn
- 14:01gives them a bit of an advantage when it comes to investing because they know the types of
- 14:05companies and the industries that will be doing well based on what they know. Is that kind of the
- 14:09whole point? Yeah. And they've got visibility on what laws are going to come into play or what's
- 14:14impending laws might happen and therefore impacts certain industries or companies. It might be like
- 14:20with the whole Facebook when the cookies, you stop being at the track so much and so digital
- 14:25marketing took a massive dive and Facebook took a massive dive. Is that a good example? Yeah,
- 14:29and they can see that that's going to win and pass as law and then I mean, we also can hear through
- 14:36the media what they're working on, but I think also the other argument is that they will be swayed
- 14:44in terms of their votes. So if you own a whole lot of stock in tech companies, for example,
- 14:51and there is some kind of tech law that's being passed. I think this is a good point. Yeah,
- 14:55that it's like, okay, well actually, no, I'm going to vote against that because I have a personal
- 15:00interest in that not getting passed as law. So I think there's there's kind of two arguments to it
- 15:06as well. And so this is the whole ethics act that's being proposed is that there should be an
- 15:12outright blanket on government officials owning, owning stocks and their spouses and children,
- 15:19which is so many people. Yeah. I feel okay. I guess my thoughts on this are I think what I love
- 15:27about the stock market and investing is that if I invest and same with all the government
- 15:35officials, I'm not being disadvantaged, but well, I don't feel like I'm being disadvantaged by
- 15:39them also profiting from investing. What I don't like is the secondary element that you said,
- 15:46which is the idea that they might be making decisions that affect everybody based on their own
- 15:51personal interests from a financial lens. I don't like that. Yeah. Yeah. And it also comes,
- 15:56you're just trying to even the playing fields, like otherwise people and senior leadership roles
- 16:01of public companies, for example, if there aren't rules, regulations and plays, it's like the rich
- 16:07get richer and the poor get poorer. You know, like it's like that's there's kind of that
- 16:10asymmetric information. And if you're privy to certain information, then you get a certain leg up.
- 16:16And so they're just trying to like even the playing field, I guess, but yes, I think the bigger argument
- 16:20is that you will be swayed in how you vote on certain things. I guess there's also the element of
- 16:26like if you're in politics or you work in government, you should be doing that because you care about
- 16:30the future of people in society and not from a solely like financial economic standpoint, right?
- 16:37Like you're the reason, I mean, maybe what it will do as well as weed out people who are doing it
- 16:43purely for like lobbying or money or you know, have potentially not the most sound values or morals
- 16:49because that element is kind of remote, like maybe it's actually a positive thing. It also
- 16:55baffles me the number of politicians that it comes out that they're like doing something immoral
- 17:02or unethical or like. And I'm like, you have these people leading the country and making
- 17:06the decision. You're a politician, like you're in the spotlight, that you need to be squeaky clean.
- 17:10I could never be a politician. I'm not squeaky clean, you know? On politics, we spoke about our new
- 17:19prime minister here in the UK, Kier Starmler. Oh my gosh. Okay, he's new. He's new, give me some
- 17:25time to figure out how to actually pronounce his name. But anyway, he is introducing, we're proposing
- 17:32another increase in the minimum wage here, which is good. Yeah, I'm on the fence with this one.
- 17:40What is the minimum wage around the world? What is it in New Zealand at the moment? It's about
- 17:45$23. That's $23. And $12 pounds here. It's pretty important. Yeah. And they increased it by
- 17:5310% in April this year. And that was the second biggest increase ever in the UK. 10% is a huge
- 18:02increase in a minimum wage. I'm on board with that though, like the people who are not earning
- 18:07minimum wage. It is so hard to live in London. And especially inflation's gone up by 10%.
- 18:14So everything, they're kind of just on par still. Do you know what I mean? Like prices have gone up
- 18:20and your your minimum wage or the way you're getting paid has gone up 10%. So you're kind of not
- 18:25even any better off, even though 10% seems like an issue with it. Yes. So then now he's coming to
- 18:31power and he is proposing another increase. Well, give me a counter argument. Yeah. Every employee
- 18:39that is in say a retail store supermarket, any kind of employee now is that's that's on him
- 18:48in a wage is now getting paid 10% more. That's just going to be put through to price increases.
- 18:53So we're going to end up paying 10% more for everything. So it just again kind of fuels this
- 18:58inflation. So it's like the cycle. Yeah. So it's like, okay, well, you know, the retail stores aren't
- 19:04just going to stomach that 10% increase. They're going to pass it on to the consumer. So we end up
- 19:08paying for it at the end of the day. And then everything keeps getting more and more expensive.
- 19:12So therefore they need to keep increasing the minimum wages. And so it's just like this constant
- 19:17cycle and that's economics for you. But I 100% agree. I was like, you cannot live in London
- 19:24because inflation is so high right now in the UK, there needs to be policies like this or
- 19:30employers that are increasing people's wages to reflect that. Otherwise, you're just going backwards.
- 19:35You can afford less and less and less and less. So it's like, I totally see both sides of the
- 19:39argument. But is it going to increase inflation? That's what everyone's scared of. It's like,
- 19:44look, we're just trying to, we're trying to keep inflation under control. And here you are increasing
- 19:49wages, which is one of the biggest impacts on inflation. But then you've got all the people
- 19:54that are like, so the companies are saying, don't do it. Don't do it. Don't do it. Because it's
- 19:59going to be increasing their cost base. But then you've got all the other people saying, no,
- 20:04do it. Do it. Do it. Because I kind of afford to live off a minimum wage of 12 pounds an hour.
- 20:09And it's so hard because like no one really wins. Yeah. No, exactly. So it's like, it's
- 20:14almost like, who are you willing to piss off? Because you're going to be soft. I feel like, yeah, I mean,
- 20:20I don't, I think it's unfair for the minimum wage to be low with it. I mean, I don't know,
- 20:27it sort of just feels a little bit like you can't win. You need to give people that are not
- 20:31earning enough to survive more money. But it's going to make everything more expensive for them
- 20:36anyway. So like, is it even going to help? I'd really love to, I know we've said this a couple of
- 20:40times, we've actually had a few messages from people who know a bit about politics and money
- 20:44in that whole situation. I really think that would be valuable. Yeah, I agree. It's almost like
- 20:47101 politics in economics. Yes. Oh my god. I love economics. One incredible stat that I came across
- 20:56is that over the next 30 years, there is going to be 83 trillion dollars of wealth transfer
- 21:05from the older generation to the younger generation. 83 trillion. Is that from
- 21:12boomers to millennial? No, that's a really like not all good word. But do you next to, do you know why?
- 21:18Yeah. So a fifth of the world assets right now are sitting with people over at the age of 75.
- 21:24So as they pass away, they're going to pass that down to younger generations. And the bulk of
- 21:30that 83 trillion is going to be transferred in the next 10 years. So the majority of that is going
- 21:36to be transferred in the next 10 years. I just want to unpack that. Like considering that
- 21:44firstly, women outlive men. So there's probably going to be a transfer from men to women
- 21:51within that. There's also going to be then a transfer from the older age group to the younger age
- 21:56group who, you know, there's a lot more women participating in this space now than there was
- 22:05our parents, our grandparents generation. And yet the industry is so accustomed to products,
- 22:15services, everything is designed for men still. And I think there's going to be a huge wake-up
- 22:24slash shock that, you know, we don't invest the same way as men. We don't interact with
- 22:31products. We don't interact with each other the same way. Like there's going to have to be a big
- 22:35step up in the way the finance industry conducts itself in does business in a way that is way more
- 22:42diverse for genders, ages, just ethnicities, everything. Because the world is a very different place
- 22:51right now than it was when our parents and grandparents were our age. So yeah, and I guess
- 23:01definitely. And same again, our children are like, you know, every generation changes. But
- 23:0583 trillion dollars, like that is insane. And the biggest gainer of that. So the biggest kind of
- 23:14wealth transfer is happening in Taiwan. Interesting. The biggest loser. Guess what country it is.
- 23:22New Zealand. The UK. Is it? Yeah. Just because people are kind of fleeing and taking their
- 23:30property, their assets out of the UK because of tax right now. There's been changes in the tax.
- 23:37And like it's, it's just not a very tax friendly place to have a lot of wealth. And so yeah,
- 23:46the same kind of as mass exodus of people with foreign assets, people that, yeah, it's just like
- 23:51anyway, it's quite interesting that one of the biggest financial hubs of the world and it's
- 23:57going to be the country that is going to benefit the least from this wealth transfer. So I'm so
- 24:02gay, we're here. It's okay, I've got no wealth of transfer. I'm not taking part in it. Not yet,
- 24:12babe, not yet refraining yet. I actually did do a budget. This is my financial flex for the
- 24:18way. I did a budget yesterday. Forget how much I can invest in. I'm basically pretending I'm
- 24:23on less than I am so that I can invest more. I'm not going to lifestyle creep. I really don't
- 24:28want to be going and spending, you know, I just think, can we like time stamp this and come back
- 24:34in a year? Oh yeah. Shit. So people will be there like diamond earrings and I just don't want to
- 24:46lean into lifestyle creep, I mean. Giant fucking earrings. I don't spend too much. I'm free.
- 24:55By 2025. Oh no. Oh no, no, no, no. I need more money before I have babies.
- 25:01Yes, so just to finish on this. You're probably pregnant in a year. Sorry, can we just
- 25:06what the fuck? Do you need to get a maternity leave in place? A maternity policy?
- 25:11My god. I just, they honestly, they dare everything. Another living thing that relies on me to
- 25:17be alive is like so foreign. I reckon you'd be amazing. I reckon it would almost have the
- 25:25opposite effect. Do you know what I mean? Do you think having something that that literally relies
- 25:30on you for living, I think will be game changer for anyone, but I think you think I'd be a good
- 25:35mum. Yeah, I think you'd be a great mum. Thanks, bag. That's really good. You are very good at
- 25:40looking after dogs and other. Just totally ruined like a nice moment. You're really good at looking
- 25:49after dogs. I was finished the dogs and like friends and like I think I think you need to get
- 25:55yourself credit. I think yes, I feel like you feel like you've got sometimes a bit of a
- 26:01shit show looking after yourself, but I think when it comes to other people and other animals,
- 26:06you are amazing. That's my childhood with me so all the time. Well, thanks, bag. That's
- 26:13actually lovely. What we're talking about, whilst transfer. Yeah, okay. I think we just
- 26:21wrap it up because I'm on one percent. Sorry for the lack of time and chat, but read the
- 26:28curve weekly. It's a great newsletter. There's lots of lots of good stuff in there this week.
- 26:32We go into a lot more detail of lots of other interesting topics, what comes to finance,
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- 26:43Yes, also the money reset starting in a couple of weeks. So if you would like to join,
- 26:48we'll put the details in the show notes. And yeah, have a fantastic rest of your week and we will be
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- 27:20week and see you next Monday. Bye, bye. So yeah, see you next Tuesday. Wow.
- 27:29See you next Tuesday. I made Monday.