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Investing Q&A with Glen James: Your Questions Answered · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Order
0:05
Speaker 1: Order KERNI Whoalbury and a waddery woman. And before we
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Speaker 1: get started on She's on the Money podcast, I would
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Speaker 1: like to acknowledge the traditional custodians of the land of
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Speaker 1: which this podcast is recorded on a wondery country, acknowledging
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Speaker 1: the elders, the ancestors and the next generation coming through
0:23
Speaker 1: as this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
0:31
Speaker 1: and lasting impact for tomorrow.
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Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
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Speaker 4: Hello, and welcome to She's on the Money, the podcas
1:00
Speaker 4: for millennials who want financial freedom. I'm back with another
1:04
Speaker 4: episode that has been far too long between recordings. Mister
1:08
Speaker 4: Glenn James from Money, Money, Money or M three joins us. Glenn, Hi,
1:13
Speaker 4: welcome to the show.
1:14
Speaker 2: Thank you so much. It's been a long time.
1:16
Speaker 4: You're one of the only guys I let on the
1:18
Speaker 4: show like you are.
1:19
Speaker 2: Welcome, Thank you, and hello to everyone who's listening. I
1:22
Speaker 2: know that we've got a lot of crossover listeners.
1:25
Speaker 4: We do. I'm so excited for this episode because one
1:28
Speaker 4: you're visiting me down in Melbourne, which is really kind
1:31
Speaker 4: of you. But two you've released another book. I have,
1:35
Speaker 4: what is it called.
1:36
Speaker 2: It's called The Quick Start Guide to Investing.
1:38
Speaker 4: And you're doing that with my friend. Nick Bradley is
1:41
Speaker 4: now my friend who was your friend. We went to
1:43
Speaker 4: America together last year, and he's funny, Like he's like, really.
1:47
Speaker 2: Funny moving to Spain.
1:49
Speaker 4: I know, it's actually insane. He's just picked up his
1:52
Speaker 4: entire family and moved them to Spain. He's not only
1:54
Speaker 4: funny as in not funny because he's moving to Spain,
1:57
Speaker 4: but funny in isolation. So cool life.
2:01
Speaker 2: Story, but it's weird. Like I introduced you to my
2:03
Speaker 2: friend Nick, and then you guys all went out for
2:07
Speaker 2: the football or something one night.
2:09
Speaker 4: Social being more social, you were invited and you're like, no,
2:13
Speaker 4: I don't want to go out. I want to get
2:14
Speaker 4: ice cream and we're like, yeah, no, worries have fun
2:17
Speaker 4: on your own were he had hot dogs, Nick showed
2:20
Speaker 4: us American football. I had so much fun. And I
2:24
Speaker 4: also learned how to transfer money internationally because Nick bought
2:27
Speaker 4: my footy ticket? Do they call it footyo over there?
2:29
Speaker 4: I don't know. Nick bought my football ticket and I
2:31
Speaker 4: had to give him cash back, and it was a conundrum.
2:34
Speaker 4: I see the value in just being able to transfer
2:37
Speaker 4: money between our bank accounts. Glen totally like the American
2:40
Speaker 4: banking system cooked. But that's not what we here today
2:43
Speaker 4: talk about. I'm also not here to really talk about
2:46
Speaker 4: your book either, but you annoyed it. I did anoint it.
2:51
Speaker 4: We're in the book. Could I see my quote and number.
2:53
Speaker 2: For the first page at the top?
2:55
Speaker 4: I like that I'm first page at the top, But
2:57
Speaker 4: like on the back, I didn't get the cover because.
2:59
Speaker 2: I want to be a median. On the back, I
3:01
Speaker 2: wanted a comedian, But like, why.
3:02
Speaker 4: Is a comedian got to endorse an investing book?
3:05
Speaker 2: Well, why does everything have to be so serious all
3:08
Speaker 2: the time.
3:08
Speaker 4: You are so lucky that you're good at investing content,
3:10
Speaker 4: because otherwise I don't know if i'd endorse this. But
3:14
Speaker 4: I'm excited for this because this goes a little bit
3:16
Speaker 4: deeper than my investing book. And what was saying before
3:19
Speaker 4: off air that this probably is a really good Like
3:21
Speaker 4: if you've read Investing with Sheees on the Money and
3:23
Speaker 4: you want to kind of like take it a level
3:25
Speaker 4: up Nick. He's a right nerd, but like speaks in
3:29
Speaker 4: really general terms, so like his content is really easy
3:32
Speaker 4: to follow, and it's really highlighted, so you could just
3:34
Speaker 4: skip all the parts in this book that Glenn wrote
3:37
Speaker 4: and just focus on a niche part. Yeah, and I
3:39
Speaker 4: think that that's a really good way to approach it.
3:41
Speaker 4: But we asked our community Glenn a heap of investing questions,
3:45
Speaker 4: and I was hoping that you would be open to
3:47
Speaker 4: answering a few of them on the show and having
3:50
Speaker 4: a general chat about investing, because even though we're in
3:53
Speaker 4: the middle of the cost of living crisis, I feel
3:55
Speaker 4: like so many people are still really interested in self
3:58
Speaker 4: education and really interested in starting the process, even if
4:02
Speaker 4: it means they're just starting with twenty bucks.
4:04
Speaker 2: Yeah, and that's really good because there's a spectrum of
4:08
Speaker 2: life that we're all on, and someone could be starting
4:11
Speaker 2: out with their career, starting out with their first job,
4:14
Speaker 2: still at school or in university and not having much
4:18
Speaker 2: money and want to invest or. It could be the
4:20
Speaker 2: other end of the spectrum where like you've got more
4:23
Speaker 2: money than God, but a lot of people fit right
4:26
Speaker 2: in this middle part where things are tight, rent might
4:30
Speaker 2: be expensive, the mortgage repayments might be and have been increasing,
4:35
Speaker 2: or we might be trying to get out of consumer debt,
4:37
Speaker 2: but we still want to invest. And one thing I'm
4:40
Speaker 2: a big fan of is yes, putting your toe in
4:43
Speaker 2: the water. And I did a little table in the
4:45
Speaker 2: book where if you earn, say seventy thousand dollars a year,
4:49
Speaker 2: well let's try and make it so we're not going
4:52
Speaker 2: to not invest, but maybe allocate one percent of our investing,
4:56
Speaker 2: so seven hundred dollars a year. Or if you earn
4:59
Speaker 2: a thousand dollars, let's start with one percent. So it
5:03
Speaker 2: just keeps us Even if it's thirty or forty dollars
5:05
Speaker 2: a month, you're still getting out of debt or you're
5:08
Speaker 2: still trying to you know, keep things going along. But
5:11
Speaker 2: it keeps us interested and it keeps.
5:13
Speaker 4: Us engaged, which I think is really important. Like for me,
5:16
Speaker 4: engagement with the process is more important than saving up
5:20
Speaker 4: a really big lump sum to start. I literally just
5:22
Speaker 4: finished recording in episode Glenn about getting back on track
5:26
Speaker 4: with your investing plan this year, because so many of
5:29
Speaker 4: us set out to like invest in January, and then
5:31
Speaker 4: it was February, and then all of a sudden it
5:32
Speaker 4: was July and we're like, oh, we've fallen off the horse,
5:34
Speaker 4: Like maybe next year. But like, investing doesn't have to
5:38
Speaker 4: have a start point that's like so defined. We can
5:41
Speaker 4: actually just start investing today and putting ourselves in the
5:44
Speaker 4: best possible position. And I mean right now, coming into
5:47
Speaker 4: the second half of the year. Like a book called
5:49
Speaker 4: The Quick Start Guide to Investing feels like the book
5:52
Speaker 4: I actually need, Like if I'm not at the start
5:55
Speaker 4: of year and I need some motivation, that's maybe not
5:58
Speaker 4: New Year, New Me vibes, but like, let's just get started. Glenn,
6:02
Speaker 4: you already have a book. Why did you want to
6:04
Speaker 4: write another one?
6:05
Speaker 2: Because I wanted to just get to the point.
6:08
Speaker 4: And why didn't you get to the point in your
6:10
Speaker 4: first book?
6:11
Speaker 2: Because with my first book, Soort Your Money Out, people
6:15
Speaker 2: would always ask me, oh, what do you think about money?
6:17
Speaker 2: Or how should I get out of debt? Or how
6:19
Speaker 2: should I build a budget? Or how should I set
6:22
Speaker 2: up superannuation? Here's my book, He's all my thoughts. But
6:26
Speaker 2: this book it is smaller. So like I had a
6:28
Speaker 2: message from my cousin the other day and she said, Glenn,
6:31
Speaker 2: everyone at works talking about this trade a three thousand platform.
6:34
Speaker 2: What do you think. I'm like, it sounds like rubbish,
6:37
Speaker 2: that sounds like a scam. Yeah right, I said, I'm
6:40
Speaker 2: literally getting the book and I'm giving you a copy
6:43
Speaker 2: because that book is everything I think about investing.
6:47
Speaker 4: That's why I wrote my Investing one, because I think
6:50
Speaker 4: you were the same as me. I was so excited
6:52
Speaker 4: to write a book, and I thought, I'm just going
6:54
Speaker 4: to put everything I know about money in this one
6:57
Speaker 4: and I'll be one and done.
6:58
Speaker 2: That's right.
6:58
Speaker 4: I will never write another book again. The writing process
7:01
Speaker 4: is so challenging, and I know you and I struggle
7:03
Speaker 4: with the same stuff. So we were both like, writing
7:07
Speaker 4: a book challenging as hell. But then obviously the questions
7:11
Speaker 4: come and people want more, and it's exciting to write
7:13
Speaker 4: another book because you can really niche down into a
7:16
Speaker 4: particular topic. So like I was being rude before, but
7:19
Speaker 4: that's maybe because I know you, But also I'm really
7:22
Speaker 4: excited to dive into this. But our community is also
7:25
Speaker 4: really excited to dive into this. I'm going to use
7:27
Speaker 4: this as a little bit of a Q and A session.
7:29
Speaker 4: I'm asking the questions, you're answering them, Glenn, I've got
7:33
Speaker 4: you captive Christa has asked, at what point should you
7:36
Speaker 4: move from micro investing to a big league investing platform.
7:40
Speaker 2: It's a very interesting and common question, and I actually
7:44
Speaker 2: think if the platform or the setup that you've got
7:47
Speaker 2: at the moment is working and the shoe fits, I
7:51
Speaker 2: don't know if you need to graduate. I mean maybe
7:55
Speaker 2: if you were starting to build significant amounts of wealth.
7:59
Speaker 2: I think the question always and it's exactly what I
8:02
Speaker 2: covered in the strategy chapter of the book. The question
8:05
Speaker 2: needs to be more about what's your long term strategy
8:08
Speaker 2: goals and why and what ownership structure do we need
8:11
Speaker 2: to house that investment in. Then we can work on, Okay,
8:15
Speaker 2: what's the best platform, app, brokerage account, Because what you
8:20
Speaker 2: invest in and how you own the investment, whether it's
8:23
Speaker 2: in your own name, whether it's in your superannuation, whether
8:26
Speaker 2: it's in trust if you're a complex investor, whether it's
8:29
Speaker 2: an investment bond, whether it's a joint name account, whether
8:33
Speaker 2: it's in a company, all that stuff, how you own it,
8:37
Speaker 2: what you buy is more important than the actual underlying
8:42
Speaker 2: brokerage account or platform. But I think when the student
8:47
Speaker 2: is ready, the teacher will appear.
8:49
Speaker 4: That's fun.
8:50
Speaker 2: I think it was from like an old movie karate Kid.
8:53
Speaker 4: Maybe karate Kid. Yeah, don't quote me, but I thought
8:56
Speaker 4: you were going to like quote like someone really not
9:00
Speaker 4: eligible candy. Yeah, you're gonna be like that's a Gandhi quote.
9:03
Speaker 4: You're like wow, deep and you're like karate Kids. So
9:05
Speaker 4: I was like, oh, okay.
9:06
Speaker 2: As an example, I think one of my hobbies is
9:11
Speaker 2: technology and.
9:12
Speaker 4: And purchasing useless technology.
9:14
Speaker 5: Is that what you mean?
9:15
Speaker 2: Yes, So I wanted to when I set up my
9:18
Speaker 2: first podcast studio.
9:19
Speaker 4: This man is not lying.
9:21
Speaker 2: I wanted to get all these camera gear, and you know,
9:24
Speaker 2: you buy the first camera and you get to the
9:26
Speaker 2: point where you know it so well. The limitations appear
9:30
Speaker 2: the more that you know and I know nothing, and
9:33
Speaker 2: then it's like, okay, so I'm now upgrading from a
9:36
Speaker 2: maybe a little Sony handheld digital SLR.
9:39
Speaker 4: We're still there yet.
9:40
Speaker 2: I went to black Magic, which is remember that like really.
9:44
Speaker 4: High using those no good about investment.
9:48
Speaker 2: It was good at the time, but too complex for
9:50
Speaker 2: what I needed. So now I'm back to Sony cameras
9:53
Speaker 2: from JB High Fire. And I say that to say,
9:57
Speaker 2: with you're investing, the more that you learn about the platform,
10:01
Speaker 2: what you're investing in. You know, in the book we
10:04
Speaker 2: talk about building your portfolio. Do you want a single
10:08
Speaker 2: share portfolio of ten individual shares? Do you want a
10:11
Speaker 2: DIY three ETF simple portfolio, or do you want to
10:15
Speaker 2: one and done investment in a box ETF portfolio.
10:18
Speaker 4: I feel like I'm on the same page as you
10:19
Speaker 4: about that. But that shouldn't be surprising to anyone who's
10:22
Speaker 4: ever heard us create content together. Yeah, because we're always like, yeah,
10:26
Speaker 4: that sounds about right.
10:27
Speaker 2: Well, my answer to the question is continue to learn
10:32
Speaker 2: about why you're investing, what you're investing in, what your
10:36
Speaker 2: investment strategy is, and then you'll start to see if
10:40
Speaker 2: there are any limitations to your current platform or brokerage account.
10:46
Speaker 2: There is a big discussion out there in personal finance
10:49
Speaker 2: land around chess sponsorship, brokers and custodium what is And
10:54
Speaker 2: I went to town on it in the book, gave
10:55
Speaker 2: my two cents.
10:56
Speaker 4: I know what that two cents is and can you
10:58
Speaker 4: just spoil it for us? How do you feel about
11:00
Speaker 4: chess sponsorship? So I think actually that track for those
11:03
Speaker 4: listening who are like, hold up, hold up, this has
11:05
Speaker 4: gone real deep, real quick. What is chess sponsorship? Glenn.
11:09
Speaker 2: So. Chess is the system at the ASX Australian Securities Exchange,
11:13
Speaker 2: and Chess is the system that electronically tracks purchases and
11:19
Speaker 2: assigns that to a dedicated number quarter HIN identification number. Now,
11:26
Speaker 2: if I opened a brokerage account that was quote unquote
11:29
Speaker 2: CHESS sponsored, it would be under the name of Glenn James.
11:32
Speaker 2: I could then log in purchase shares in I don't know,
11:36
Speaker 2: Woolworth's or whatever, and then on the AX register it
11:41
Speaker 2: would say, you know, one hundred shairs in Woolworth's HIN
11:44
Speaker 2: number Glenn James yep, and then that's track yeah, directly
11:51
Speaker 2: on my personal name. With a whole bit of different
11:54
Speaker 2: investment apps and platforms, they have what we call an
11:57
Speaker 2: omnibus hin, which means, you know, if I created my
12:01
Speaker 2: own investing platform called the Glen James Investing.
12:04
Speaker 4: Platform, moneybus sounds like something I get on in Bali
12:07
Speaker 4: to go to.
12:07
Speaker 2: A club sounds pretty fun.
12:09
Speaker 4: It's not that fun. But sorry, like Bali, I do digress, Yes,
12:12
Speaker 4: I do, like Bali. I've been a few times.
12:13
Speaker 2: Yeah, I'm going in November.
12:15
Speaker 4: Okay, well we'll talk about that later.
12:18
Speaker 2: So if I created a platform and this is where
12:20
Speaker 2: the advantages are with micro investing. I could have all
12:24
Speaker 2: these shareholders use my platform and we have one HIN
12:28
Speaker 2: or one listing with the ASX, and then that HIN
12:31
Speaker 2: is spread all through the different owners. Now that money
12:36
Speaker 2: that we invest on the platform is held in custody
12:39
Speaker 2: or on trust, So if the Glenn James investment platform
12:42
Speaker 2: goes under quote unquote, people's money isn't lost. Now there
12:47
Speaker 2: is this thing in personal finance land and stockbroking land
12:51
Speaker 2: where there is a purest play that you must hold
12:54
Speaker 2: investments on your own hint for absolute security. I push
12:59
Speaker 2: back on that to say, if you're going to have
13:02
Speaker 2: that logic, you need to be careful because everyone or
13:07
Speaker 2: most people's superannuation is effectively in a custodian model. If
13:11
Speaker 2: you buy ETFs, you are not buying the underlying shares,
13:15
Speaker 2: You're buying units in the ETF. The wealth is on
13:18
Speaker 2: custody on the ETF provider's balance.
13:21
Speaker 4: Sheet, and both you and I, Glenn, I think this
13:24
Speaker 4: probably tells people a lot because we obviously can't give
13:26
Speaker 4: advice on well what should I do there? But let
13:29
Speaker 4: you and I both own ETFs and both of us
13:32
Speaker 4: have superanuation funds that operate under a custo to your model,
13:35
Speaker 4: and we are both comfortable with that.
13:37
Speaker 2: I don't have any of my wealth with a Chess
13:39
Speaker 2: sponsored broker, And the main thing is when you strip
13:42
Speaker 2: back and look at your strategy and how you're going
13:45
Speaker 2: to invest. The main thing for me is paperwork and
13:49
Speaker 2: ease of administration. So I have my investments on a
13:52
Speaker 2: platform and that platform has its own hint with the
13:56
Speaker 2: registrar and every year I get consolidated tax report. I
14:02
Speaker 2: don't have to keep records myself. And for me, you know,
14:06
Speaker 2: every time there's a dividends paid, they get paid into
14:09
Speaker 2: the cash account and then they get sucked back up
14:11
Speaker 2: and I have to repurchase ETFs. I don't have to
14:15
Speaker 2: keep any records.
14:16
Speaker 4: And that's worthy of consideration because so many people get
14:19
Speaker 4: caught up in this purest model of going. But that's
14:23
Speaker 4: the right thing to do. But the risk that is
14:26
Speaker 4: being carried in that decision, a whole heap has to
14:30
Speaker 4: happen to the Australian economy before you would be impacted.
14:35
Speaker 4: Like we're talking banks falling down before that's a thing.
14:38
Speaker 4: And I promise you there are bigger fish to fry
14:40
Speaker 4: when it comes to setting up your.
14:42
Speaker 2: Platform and I think my thing and we will move
14:45
Speaker 2: on to the other questions. But you know we've both
14:48
Speaker 2: had paid work with Chasi's they're a platform or on
14:52
Speaker 2: app in Australia and New Zealand. I don't want you
14:54
Speaker 2: to be scared by people online saying you've got to
14:58
Speaker 2: have a chest sponsored broker and you've got to do
15:01
Speaker 2: it this way. Let's celerate people investing on that.
15:05
Speaker 4: I also think it's really important to understand that when
15:08
Speaker 4: it's not chess sponsored, it's more accessible. So accessibility is
15:14
Speaker 4: something that to me is incredibly important in this investing world.
15:18
Speaker 4: And a platform like shares Is enables you to purchase
15:21
Speaker 4: fractions of shares and that is never going to be
15:24
Speaker 4: possible if you want to be completely chess sponsored individually,
15:27
Speaker 4: that's right, Like it's just not going to be an option.
15:29
Speaker 2: And so for example, when we talked about before, if
15:31
Speaker 2: you are cleaning up your mess, if you are building
15:34
Speaker 2: your career, if things are tight and you still want
15:36
Speaker 2: skin in the game, and you've got an income of
15:39
Speaker 2: fifty thousand dollars a year, one percent of year is
15:41
Speaker 2: five hundred dollars, that's forty one dollars a month, that's
15:44
Speaker 2: pretty achieve You can't do that with a brokerage account.
15:47
Speaker 2: You've got to use an appal platform.
15:49
Speaker 4: Yeah, exactly.
15:50
Speaker 2: Now I will say as well, if you have a
15:53
Speaker 2: brokerage account, and because you're a chess purist and you
15:56
Speaker 2: only buy shares that are direct in your name with
16:00
Speaker 2: the ASEX, must be nice. The moment you go onto
16:04
Speaker 2: your brokerage account and buy direct shares in Tesla, Microsoft
16:09
Speaker 2: Apple in the US, you're exiting the chest system. Yeah,
16:12
Speaker 2: so you're going back into custody. Most of the world
16:15
Speaker 2: operates in the custodian model.
16:17
Speaker 4: It's not that common.
16:18
Speaker 2: Yeah, So let's just have a shower and a chill
16:21
Speaker 2: pill cold shower, that is. And don't get scared by
16:24
Speaker 2: other people saying you have to do this. Because one
16:28
Speaker 2: thing I was really proud of, which we'll put a
16:31
Speaker 2: link in the show notes in the back of the book,
16:34
Speaker 2: I've got what we call an investing constitution, and what
16:38
Speaker 2: I challenge people to do is go through your investing constitution.
16:42
Speaker 2: So an example, here, you write down your goal, your why,
16:47
Speaker 2: your time horizon, your asset allocation, the ownership structure, the
16:51
Speaker 2: investing strategy, how you're rebalancing, what you're doing. So when
16:56
Speaker 2: things get tough or when you hear people say, oh,
16:58
Speaker 2: do it this way, we'll do it that way. You
17:00
Speaker 2: Oh no, No, I've got.
17:02
Speaker 4: My formula, I've got my strategy. I have my own plan,
17:06
Speaker 4: thank you.
17:06
Speaker 2: Yes. So a lot of it is turning down the
17:08
Speaker 2: noise and being so clear on your own investing strategy.
17:12
Speaker 4: I think that's really important. All right, let's move on
17:14
Speaker 4: to the next question, because I feel like it does flow.
17:17
Speaker 4: Bell has asked Glenn, how do I pick a platform?
17:22
Speaker 4: There are so many I would say to Bell, how
17:24
Speaker 4: do you pick a car?
17:27
Speaker 2: There are so many I want to know.
17:29
Speaker 4: So, like if I wasn't in an investment land and
17:31
Speaker 4: I didn't have any level of understanding this, how do
17:35
Speaker 4: we understand what's a sham? Like before you were telling
17:38
Speaker 4: me off air that someone had asked you about an
17:40
Speaker 4: investing platform that both you and I immediately we heard
17:43
Speaker 4: the name, well like scam, absolutely steer clear. But how
17:46
Speaker 4: do we get to being able to identify that and
17:49
Speaker 4: then picking a platform that works for us?
17:51
Speaker 2: Yeah? So I think again, I do sound like a
17:54
Speaker 2: broken record, And this is why, Okay, you.
17:57
Speaker 4: Haven't sounded like a broken record in a long time
17:59
Speaker 4: on my podcast, So just bring it back, all right,
18:01
Speaker 4: we're bringing it back the old classics.
18:04
Speaker 2: The whole thing about this philosophy this book is to
18:09
Speaker 2: work out why you're investing, So the why, how long
18:15
Speaker 2: you need to be invested for what you're going to
18:17
Speaker 2: be investing in. Do you want to do direct equities?
18:20
Speaker 2: Do you want to do ETFs? Do you want to
18:21
Speaker 2: do one soop shop? You nail that stuff and then
18:25
Speaker 2: you go, okay, what do I want to invest in?
18:27
Speaker 2: So it could be well, I actually want some American equities,
18:30
Speaker 2: I want some Australian or I just want to invest
18:32
Speaker 2: in Australia. So we work out exactly what we want
18:36
Speaker 2: to invest in. Then once we're clear on what we're
18:39
Speaker 2: investing in. And so if someone's thinking, like you've got
18:42
Speaker 2: older listeners who might be ten years out from age sixty.
18:47
Speaker 2: If someone's like, I just want to build wealth for retirement,
18:50
Speaker 2: well the question is we're probably looking at superannuation for that,
18:55
Speaker 2: So we're not really looking at an app or a platform.
18:58
Speaker 2: So once you get on your strategy and the why
19:02
Speaker 2: and the what, then we can look at the how.
19:05
Speaker 2: A lot of the discussion online and everything you see
19:09
Speaker 2: it always speaks to the how and the execution is
19:12
Speaker 2: always the easiest part. Well, if you're, for example, like
19:16
Speaker 2: I'm really comfortable investing in the top two hundred shares
19:21
Speaker 2: in Australia via an index, you've worked that out, you
19:25
Speaker 2: can go, okay, well what do we look at? You
19:27
Speaker 2: could ask your friends and family, Hey, what investment platform
19:31
Speaker 2: do you use and what do you like about it?
19:34
Speaker 2: Or you could ask people online. But the thing is
19:38
Speaker 2: you've just got to be so careful that when you
19:40
Speaker 2: ask these questions, people's response isn't going to impact your
19:47
Speaker 2: strategy or deter you from what you want to do.
19:50
Speaker 2: But I think any type of you know, if you
19:54
Speaker 2: want to get to the technical things, reputable platforms, they've
19:58
Speaker 2: got to be licensed in Australia. So on their website
20:02
Speaker 2: at the very bottom the front page of every money website,
20:05
Speaker 2: your website, she's on the money. My website, go to
20:08
Speaker 2: the very bottom of the front page, you'll have details
20:10
Speaker 2: of their license. Our websites have details.
20:13
Speaker 4: Of our lifey people check that license.
20:15
Speaker 2: Google reviews, heck, send probably don't, but do it whatever
20:20
Speaker 2: ask us and we'll say our Facebook group people will
20:23
Speaker 2: tell you like, I think it's getting too a trusted community.
20:27
Speaker 2: We can't give personal advice, but for example, as a
20:30
Speaker 2: bit of a sales thing for my audience, I tell.
20:33
Speaker 4: Them I've told people in my community that's a scam,
20:35
Speaker 4: don't do it. Yeah, I'll tell people if i'll I
20:38
Speaker 4: think it's trash.
20:39
Speaker 2: But if it's not trash, we'll say, you can't tell you.
20:42
Speaker 4: No, no, no. If it's trash, I'll be like, do not
20:44
Speaker 4: touch that with a ten foot poll. Then if you
20:47
Speaker 4: send me something that you know is legitimate, I'll be like, hey, yeah,
20:51
Speaker 4: I had a look online. They have a credit license.
20:54
Speaker 4: I have no experience with this platform. Good luck. Like,
20:58
Speaker 4: I can't give you advice, I can't tell you what
21:00
Speaker 4: to do, and I never will because even though it's illegal,
21:04
Speaker 4: it's also for me quite unethical. Like I don't know
21:06
Speaker 4: your situation, like that could be the perfect platform for you,
21:10
Speaker 4: or you might have a whole heap of stuff going
21:12
Speaker 4: on that I have no idea about and it doesn't
21:16
Speaker 4: make sense for you. So it's irresponsible of us to
21:19
Speaker 4: have an opinion. But I will stop you from jumping
21:21
Speaker 4: into a scam.
21:22
Speaker 2: I won't tell anyone on my podcast or in my
21:25
Speaker 2: Facebook group what investment account that I use or what
21:28
Speaker 2: I invest in.
21:29
Speaker 4: What do you invest in?
21:30
Speaker 2: Well, I can't tell you, but in the book, we've
21:32
Speaker 2: got lots of practical examples, right, And I said to Nick,
21:35
Speaker 2: if we're using practical examples, I need to do a
21:38
Speaker 2: disclosure section at.
21:39
Speaker 4: The back, so the outline that they never paid.
21:42
Speaker 2: So like, for example, it's like disclosures Glen Hold's the
21:45
Speaker 2: following investments mentioned in this book. There's some of the
21:47
Speaker 2: investments that I personally hold.
21:49
Speaker 4: I'll see how number one is bitcoin?
21:51
Speaker 2: I did it. Well, don't read the other ones. Gosh,
21:54
Speaker 2: but I said listed alphabetically. I just did it alphabetical.
21:57
Speaker 4: Okay, so bitcoin is still number one. Then't worries.
22:00
Speaker 2: Glenn has active accounts with don't you read them live? Oh,
22:05
Speaker 2: same as me and Glenn's business we host the podcast
22:09
Speaker 2: has been paid or I've done corporate speaking with Amazon
22:12
Speaker 2: aware super So I think what I'm saying is, if
22:15
Speaker 2: you want to know what I use personally, by the book,
22:17
Speaker 2: but I like that. I like all that, go to
22:21
Speaker 2: a reputable community like your Facebook group and ask other
22:26
Speaker 2: like market investors.
22:27
Speaker 4: Yeah, the conversation.
22:29
Speaker 2: Look at Google reviews.
22:30
Speaker 4: So don't take some random person's opinion as gospel, like
22:34
Speaker 4: do your own research, get comfortable with it. That leads
22:37
Speaker 4: me into Glenn, I just saw a name in your
22:41
Speaker 4: book that we won't read on the show, but Kelly
22:44
Speaker 4: has asked, Glenn, how do I invest for my child?
22:47
Speaker 2: You've got a variety of options. I think it's one
22:50
Speaker 2: of the most complex areas. And number one, if you
22:55
Speaker 2: want to do it the right way, you have to
22:58
Speaker 2: set up a tax file number for your child. And
23:01
Speaker 2: then if you set up an investment account. So like
23:04
Speaker 2: heaps of investment platforms and companies, they allow you to
23:07
Speaker 2: click set up a child account, right and it just
23:10
Speaker 2: mirrors the account and it can be on trust for
23:13
Speaker 2: the child. Then what you basically have to do is
23:16
Speaker 2: you have to declare that income or dividends on the
23:20
Speaker 2: child's tax return. The problem is when you're a minor.
23:24
Speaker 4: You have there's a lot tax rate.
23:27
Speaker 2: Yeah, and then it steps up to sixty and then
23:29
Speaker 2: back to forty.
23:30
Speaker 4: Like it's it's a cook to savage.
23:32
Speaker 2: So my personal view is so get.
23:35
Speaker 4: Rich, getting richer, so like I'm not that mad, but
23:37
Speaker 4: at the same time, make it easier for people trying
23:40
Speaker 4: to invest for their kids.
23:41
Speaker 2: Yeah, it's a big discussion. I personally for my niece
23:44
Speaker 2: and nephews have an investment bond. I've got the view
23:48
Speaker 2: with because I did a holy research on all the
23:51
Speaker 2: options that you can do, and if you want, I
23:53
Speaker 2: can share a link to the blog. I would love
23:56
Speaker 2: the show notes and it will just step through. I
23:58
Speaker 2: think there's six different ways you can invest you kids,
24:00
Speaker 2: and just quickly I've resolved after doing all that research
24:04
Speaker 2: that healthy parents financially or financially healthy parents they'll do
24:08
Speaker 2: equals healthy financial kids. And the only other thing as
24:13
Speaker 2: well that I think is really cool. If you're a
24:15
Speaker 2: little bit older, and if you have kids and you're forty,
24:18
Speaker 2: for example, or in your forties, and once you get
24:21
Speaker 2: to age sixty, the kids are going to becoming quote
24:24
Speaker 2: unquote online as adults, So eighteen twenty thirty or whatever,
24:28
Speaker 2: you could actually set up a separate superannuation account in
24:31
Speaker 2: your name and just put money for the kids in
24:34
Speaker 2: there and just have that turn off the insurances put
24:38
Speaker 2: them as a beneficiary, so the estate planning is protected.
24:41
Speaker 2: It's very complex, but that's I like that option. But
24:44
Speaker 2: I honestly.
24:45
Speaker 4: Thinknd's way too complex for me, Like not for me
24:49
Speaker 4: in general, but I think exceptionally. Yeah, as a concept.
24:52
Speaker 4: If you are, you know, a little bit overwhelmed with
24:55
Speaker 4: the space, I think the first thing I would do
24:58
Speaker 4: is go what type of tax do I have as
25:01
Speaker 4: an individual, and how is this going to impact my
25:03
Speaker 4: child's investment, because most investments are going to be kept
25:06
Speaker 4: in your personal name until the child becomes eighteen or
25:10
Speaker 4: until you decide to give them access to it, and
25:12
Speaker 4: that's going to put you in a position where, you know,
25:14
Speaker 4: if you are on the highest marginal tax rate, is
25:16
Speaker 4: that something that you want to consider. If you are
25:19
Speaker 4: on the highest marginal tax rate and you want something
25:21
Speaker 4: like an investment bond, have a look into them like
25:24
Speaker 4: they are not a bad option. I know you use
25:26
Speaker 4: them for your niece and nephew, and we have recently
25:28
Speaker 4: established one for Harvey. So for me, it's a really
25:32
Speaker 4: good tool. It's quite tax effective, and there's obviously a
25:35
Speaker 4: lot of benefits. There's also a little bit of a
25:38
Speaker 4: barrier to entry. You need to have a certain amount
25:40
Speaker 4: of money to be able to access it. It's not
25:42
Speaker 4: like a share'ss where you can go on the platform
25:44
Speaker 4: and just start investing with as you know, like a cent.
25:47
Speaker 4: But at the end of the day. You need to
25:49
Speaker 4: have a look at all of these options. And I
25:51
Speaker 4: do talk about it in my book. I know you
25:53
Speaker 4: touched on it in your first book. Have you touched
25:55
Speaker 4: on it in your second book? What about the options
25:57
Speaker 4: about investing for children?
25:59
Speaker 2: I didn't heaps touch on it. I did a little bit.
26:02
Speaker 2: So in the strategy chapter, I did a deep analysis
26:06
Speaker 2: on the six ways that you can own things, so
26:09
Speaker 2: in your own name, joint name, superinvestment on company, and
26:12
Speaker 2: trust and each of those things. I did a concept.
26:15
Speaker 2: I did how tax works year on year. I did
26:18
Speaker 2: how tax works when you sell the shares, and most importantly,
26:21
Speaker 2: estate planning for each option, and then the pros and
26:24
Speaker 2: cons of.
26:25
Speaker 4: Each, which is all really important to understand before you're
26:28
Speaker 4: planning on investing for a child. Anyway, I feel like
26:31
Speaker 4: lots of us want to invest for our children and
26:34
Speaker 4: want to put them in the best possible position, but
26:36
Speaker 4: often it's to our demise. Maybe you're not investing for
26:39
Speaker 4: yourself first, you don't have an emergency fund for yourself.
26:41
Speaker 4: I think there are a lot of things that we
26:43
Speaker 4: need to be planning for and pouring from an empty
26:47
Speaker 4: cup is not possible. So like set your financial house
26:50
Speaker 4: up for you and then work out what you're planning
26:53
Speaker 4: on doing.
26:54
Speaker 2: You know, I'm a pragmatist to a fault, and you
26:58
Speaker 2: know when I was practicing as an advisor and you're
27:02
Speaker 2: now a retired advisor slave, welcome to the retirement club.
27:05
Speaker 4: Thank you.
27:06
Speaker 2: The amount of people that we set up investments for
27:08
Speaker 2: kids when the child was born four years down the track,
27:12
Speaker 2: I'll need a new lounge or we need something, and
27:14
Speaker 2: they I will just take that money like it doesn't
27:16
Speaker 2: I don't know, like it's just tough, and I just think,
27:18
Speaker 2: build wealth in your own name.
27:20
Speaker 4: And distribute it to those kids and lay it down
27:23
Speaker 4: the show when.
27:23
Speaker 2: They need it. You might want to help your child
27:26
Speaker 2: out when they turn it in they're switched on with money,
27:29
Speaker 2: like hey, let's set up a shared investment account in
27:31
Speaker 2: your name. I'll see to it with five grand I'll
27:34
Speaker 2: do that. Or they might be free spirit I want
27:37
Speaker 2: to get all right, we're going to pay for your
27:38
Speaker 2: flight to Europe. We want you to have this life
27:40
Speaker 2: giving experience. Or I don't know. I just think healthy
27:45
Speaker 2: financially healthy parents equals options for kids if they're not
27:49
Speaker 2: little brats and you want to help them when they
27:51
Speaker 2: come online as an adult. True.
27:52
Speaker 4: All right, Moving on, Maddie has a question. She wants
27:56
Speaker 4: to know, Glenn, what are the downfalls of having multiple
27:59
Speaker 4: investing platforms. I have a few at the moment.
28:02
Speaker 2: It's just going to record keeping. So number one, if
28:04
Speaker 2: you've got, say a traditional brokerage account might be with
28:08
Speaker 2: one of the big banks, You're going to keep dividends
28:11
Speaker 2: records each year. Some of those brokerage accounts will not
28:16
Speaker 2: pay interest on cash that's in the cash account. You
28:19
Speaker 2: need to check that with your investment app or platform.
28:22
Speaker 2: Another downfall is you may have investment overlap. So if
28:26
Speaker 2: I've got I don't know, a Comsec account over here,
28:28
Speaker 2: and I'm invested in IoZ, which is the Australian two
28:33
Speaker 2: hundred index by black Rock Top two hundred Companies weighted Index,
28:38
Speaker 2: and then on my Chase's account, I invest in VAS
28:42
Speaker 2: which is the Vanguard Australian Share Index, which invests in
28:45
Speaker 2: the top three hundred Autralian companies, You've literally got overlap,
28:49
Speaker 2: I would probably say, And this is cool because when
28:52
Speaker 2: you get started and we've all been guilty this, we
28:55
Speaker 2: set up different investing apps and accounts, and oh, this
28:57
Speaker 2: is cool, I would say, probably pick one that you
29:00
Speaker 2: like using the most, one that has the features that
29:04
Speaker 2: you like, one that might be really easy for reporting,
29:08
Speaker 2: the one I use. I just like it and it
29:10
Speaker 2: does the job and it's sweet, then you might go okay.
29:14
Speaker 2: Any in the money world, we call it new money.
29:17
Speaker 2: If you're investing new money, which is I've been paid,
29:20
Speaker 2: it's been in my savings account, then I've moved onto
29:22
Speaker 2: the app or the platform. You might decide that going forward,
29:26
Speaker 2: any new money will be directed to this investment account,
29:30
Speaker 2: and I'm going to just use this going forward. You
29:34
Speaker 2: might be able to do an in specie transfer from
29:37
Speaker 2: the other investment account and move the ETFs or shares
29:40
Speaker 2: across to the new one. But I think it's just
29:42
Speaker 2: about having clear and clean housekeeping. The downsides, they're not
29:49
Speaker 2: really going to be hugely financially detrimental, because if you're
29:54
Speaker 2: just holding ETFs and not doing new investments, well, the
29:58
Speaker 2: ETFs have internal fees, so you'll get on either platform.
30:01
Speaker 2: The only downside would be if you're paying investing on
30:04
Speaker 2: one week and the next the other week into the
30:06
Speaker 2: same underlying vibe. For what it's worth, you might pay
30:10
Speaker 2: higher brokerage on one, but I shared some options in
30:13
Speaker 2: the book where if you go through this set your
30:15
Speaker 2: strategy you're like, oh crap, I've been building wealth in
30:18
Speaker 2: my super but I should use this option instead, or
30:21
Speaker 2: whatever reason. I talk about ways how we can unscramble
30:24
Speaker 2: that egg.
30:25
Speaker 4: Unscramble an egg. I would actually that's impossible.
30:28
Speaker 2: Done possible as said it is, but there are ways
30:33
Speaker 2: to slowly cut over. But in my life I've got
30:36
Speaker 2: one main platform per entity, So in my.
30:40
Speaker 4: Own I feel like that's the most important part of
30:43
Speaker 4: it for me. Right Like, when I look at that,
30:46
Speaker 4: I go, well, if you've got multiple platforms, I'm assuming
30:49
Speaker 4: you would across the board have the same risk tolerance,
30:51
Speaker 4: which means you've probably picked very similar assets on both platforms,
30:55
Speaker 4: and therefore the diversification is probably not having the intended impact.
31:00
Speaker 4: I would say that, being really generalist about it, you've
31:02
Speaker 4: probably picked an Australian ETF in one and probably something
31:06
Speaker 4: similar but maybe something different, and you're just overlapping and
31:08
Speaker 4: it's not actually giving you the diversification.
31:11
Speaker 2: Though you've reminded me something of which is cool. So
31:16
Speaker 2: Nick Bradley, who was my co author, who talks about
31:18
Speaker 2: advanced strategies like options trading and swing trading, and you know,
31:23
Speaker 2: trying to time the market is wild. He's great. I
31:25
Speaker 2: love him. So what if Maddie, you were like, oh,
31:28
Speaker 2: I really love investing and I want to do what
31:32
Speaker 2: all these people say. So basically, once we work out
31:37
Speaker 2: what our investment strategy is, part of that could be
31:41
Speaker 2: I want to allocate ten percent of my portfolio to
31:45
Speaker 2: individual companies, so Specky's or oh I saw this company,
31:49
Speaker 2: I think they're an up and comer. You may set
31:51
Speaker 2: up Maddie one of your accounts as So, if I
31:54
Speaker 2: had a total twenty thousand dollars investment account we have,
31:57
Speaker 2: we call it twenty thousand dollars. Because Maddie's growing financially successfully,
32:02
Speaker 2: she might say, this account over here, I'm going to
32:05
Speaker 2: keep around two thousand dollars in it, and I'm going
32:07
Speaker 2: to buy individual shares just because I want to be
32:10
Speaker 2: interested in investing. I want to buy Jbhi Fi, I
32:13
Speaker 2: want to buy A Cole's, Woolworth's, and the other one
32:16
Speaker 2: she keeps her broad based ETF. Long term, I'm just
32:20
Speaker 2: building wealth over here because in this other account, she's
32:24
Speaker 2: quarantined the money, which helps with behavior. And if she
32:29
Speaker 2: invests two thousand dollars in a single stock, and that
32:32
Speaker 2: single stock gets flushed, It's not going to flush her
32:34
Speaker 2: whole portfolio. So maybe, depending how interested you are, Maddie,
32:39
Speaker 2: you could actually say, well, one of these accounts will
32:42
Speaker 2: be my long term broad based portfolio. The other one
32:45
Speaker 2: has ten percent of my total value, which, because I'm
32:48
Speaker 2: interested in individual shares, I'll do it that way.
32:50
Speaker 4: All right, let's go to a really quick break, Glenn,
32:53
Speaker 4: And on the flip side, I have a few questions
32:55
Speaker 4: about mindset and your favorite income streams, and I also
32:58
Speaker 4: want to talk about reverse engineering some investment goals. So
33:01
Speaker 4: guys don't go anywhere. All right, Glenn, we are back,
33:08
Speaker 4: and I have a question from Claudia. Claudia says Glenn James,
33:12
Speaker 4: what is your favorite passive income stream?
33:14
Speaker 2: Oh, I reckon my book royalties.
33:18
Speaker 4: But how much you're making from not much?
33:20
Speaker 2: Yeah, doesn't mean the most successful? Yeah?
33:24
Speaker 4: Okay, that's true. That's true. Why is it your favorite?
33:27
Speaker 2: Okay? So we hear about this stuff online all the
33:30
Speaker 2: time about passive income, right, and I see people post
33:34
Speaker 2: stories like, oh, I've got my passive income.
33:37
Speaker 4: I do affiliate marketing.
33:39
Speaker 2: Yeah, or I was literally last night in the hotel,
33:42
Speaker 2: in the bath looking up new propeller for my boat.
33:45
Speaker 4: Baths at they w They're nice, really nice, Yeah, really nice,
33:48
Speaker 4: like kind of woodlog fire vibes.
33:50
Speaker 2: Love it. And so this company that I purchased the
33:53
Speaker 2: propellers from, it was kind of their Yeah, well we
33:58
Speaker 2: all need a propeller. If you've got a boat, don't
34:00
Speaker 2: at me everyone you get a boat. Yeah, it is
34:04
Speaker 2: carry on. That's what I value.
34:05
Speaker 4: It is your favorite passive income stream. Hey, is that
34:08
Speaker 4: what you did with your income stream? You've got a
34:10
Speaker 4: passive income stream, You've got a boat. Okay, again relatable.
34:14
Speaker 2: So this guy that I purchased the propellers off, that's
34:16
Speaker 2: his side hustle, right, that's his side thing. Now, I've
34:20
Speaker 2: seen people online say I've got this passive income thing.
34:23
Speaker 2: I sell propellers on eBay or marketplace. Okay, there's not
34:28
Speaker 2: much passive in boxing up a propeller, printing a postage lab.
34:33
Speaker 2: It's pretty active. Yeah. So, I honestly think the best
34:38
Speaker 2: passive income thing that you'll get on this island or
34:43
Speaker 2: anywhere in the world is investing in shares.
34:45
Speaker 4: Yeah, that's what I was going to say, was mine.
34:47
Speaker 4: I mean Claudia didn't ask me, She asked.
34:50
Speaker 2: You, but what's your favorite investing in shares?
34:52
Speaker 4: I would say it's my share portfolio because I don't
34:54
Speaker 4: do anything to it. And if tomorrow I stopped investing
34:58
Speaker 4: and stopped adding, I guess because every month we add
35:01
Speaker 4: a certain amount to it. If I stopped, it would
35:04
Speaker 4: still pay me. And I agree, like it's very cool
35:07
Speaker 4: to have book royalties, but like that depends on whether
35:11
Speaker 4: people are purchasing my book and marketing and branding, and
35:13
Speaker 4: I'm assuming at some point people are going to stop
35:16
Speaker 4: purchasing my book, whereas my shares are well diversified and
35:19
Speaker 4: kind of set and forget in the Australian share market
35:22
Speaker 4: and the international share market to be really clear out.
35:24
Speaker 2: And I will say so Claudia, I would say as
35:27
Speaker 2: well that if you're thinking about this stuff, what are
35:31
Speaker 2: you really good at in your life? Because sure, like
35:34
Speaker 2: I've written a book, I've done online courses and all
35:36
Speaker 2: that stuff. There's a lot of active work to start with,
35:40
Speaker 2: but once it's launched, it's pretty low maintenance.
35:43
Speaker 4: Everything that is going to create good passive income. I
35:47
Speaker 4: believe takes really big initial investment, not necessarily financial, but
35:52
Speaker 4: time energy, effort, planning research.
35:55
Speaker 2: Well you think. So if someone's like, oh, I want
35:58
Speaker 2: to invest in shares because it's the only passive income
36:01
Speaker 2: game in town, there's got to be a trade of
36:04
Speaker 2: human capital. So if you want to put I don't know,
36:07
Speaker 2: one hundred dollars in your investing account, if you're on
36:10
Speaker 2: thirty three dollars an hour, it's three hours of your time.
36:14
Speaker 2: But also it's probably more because thirty three dollars an
36:16
Speaker 2: hour it's pre tax. And that's kind of you talked
36:19
Speaker 2: about mindset. I did a whole chapter in this book
36:22
Speaker 2: about establishing your investing mindset and having the mindset of
36:27
Speaker 2: an investor and ask VD, why do you invest.
36:31
Speaker 4: Because I want to be rich? AF it's good.
36:33
Speaker 2: Answer, richie most wealthy acting ritual making folks. So as
36:36
Speaker 2: long as you don't act rich, that's fine.
36:38
Speaker 4: I mean, I've fallen into the trap of that, right,
36:40
Speaker 4: Like I think that I definitely have fallen into the
36:43
Speaker 4: trap historically of like lifestyle creep and enjoying life. And
36:48
Speaker 4: I don't regret that. But I feel like I'm making
36:50
Speaker 4: wealthier decisions now, which is really nice. But if I'm
36:53
Speaker 4: being frank, like, I am investing because I want to
36:57
Speaker 4: be wealthy, and I don't think that there should be
37:00
Speaker 4: any shame around that. I think that we should be
37:03
Speaker 4: more open with that. I think, you know, obviously, in
37:06
Speaker 4: addition to creating wealth for me and my family, I
37:10
Speaker 4: feel like that to me is freedom of time, It
37:13
Speaker 4: is choice. It is giving my kids the best possible
37:16
Speaker 4: upbringing and experiences and setting them up so that they
37:20
Speaker 4: don't have to struggle financially. I mean, you can delve
37:22
Speaker 4: into it, but like if you said in a sentence, V,
37:25
Speaker 4: why do you like investing, I go, well, I know
37:27
Speaker 4: that every single month I'm creating a asset that is
37:32
Speaker 4: going to pay me and pay my family into the future,
37:35
Speaker 4: and that to me is very sexy. I think that
37:38
Speaker 4: at the moment, there seems to be a lot of
37:40
Speaker 4: shame because we are in the middle of a cost
37:42
Speaker 4: of living crisis. And like I laugh at you sometimes
37:44
Speaker 4: because you have your boat and a lot of people
37:48
Speaker 4: come for you for that online. I mean they come
37:51
Speaker 4: for me when I fly business class on Points, they
37:55
Speaker 4: come for me, when I go to Europe, they come
37:57
Speaker 4: for me, you know, when I'm just doing day to
37:59
Speaker 4: day thing. But I also think that we need to
38:02
Speaker 4: remember that that is also earned. And it's not us
38:06
Speaker 4: showing it off in your face to be like na, nah,
38:08
Speaker 4: it's actually us going, hey, we've done this ourselves from scratch.
38:12
Speaker 4: You can do it too. Like I don't think I'm
38:14
Speaker 4: a genius, and I know that you don't think you're
38:16
Speaker 4: a genius. In fact, I think we're both as baffled
38:17
Speaker 4: as each other that we've gotten this far, and I
38:20
Speaker 4: think that we need to look at it and go, well, actually,
38:23
Speaker 4: if Glenn and Victoria can do that for themselves, we
38:25
Speaker 4: can probably do something clearly similar.
38:27
Speaker 2: Yeah, And I would just say, you know, I'm speaking
38:30
Speaker 2: to your audience, but do you want the host of
38:32
Speaker 2: a money podcast who isn't financially successful? I mean, I'm
38:37
Speaker 2: not out there doing a hair growth.
38:38
Speaker 4: Have you read the book? No, no one will be
38:40
Speaker 4: paying for that.
38:41
Speaker 2: No, I'm not out there doing a get good abs podcast.
38:44
Speaker 4: Oh you could try, I could. Is it comedy?
38:47
Speaker 2: It is? It's fiction.
38:49
Speaker 4: But have you read and this is probably my favorite
38:51
Speaker 4: investing book and it's probably showing my nerdy a side
38:53
Speaker 4: the richest man in Babylon. So I probably haven't because
38:57
Speaker 4: you're planning.
38:58
Speaker 2: Touched on it.
38:58
Speaker 4: You would have picked up the book you needed it
39:00
Speaker 4: out the window because you don't have the patience for it.
39:03
Speaker 4: But right now, right now. But in that book it
39:06
Speaker 4: says you would never take advice on buying a diamond
39:09
Speaker 4: from a brick layer. And I think that that's a
39:11
Speaker 4: really important thing to carry irrespective of whether we're talking
39:15
Speaker 4: about money content or content in general. Like if you're
39:17
Speaker 4: going to get legal advice, Glenn, are you going to
39:19
Speaker 4: ask your mate at the bar or are you going
39:21
Speaker 4: to go, oh, this is actually pretty serious message in
39:24
Speaker 4: a crisis, And yeah, okay, that's fair, that's fair. But
39:29
Speaker 4: I think it's really important to remember that, like I
39:33
Speaker 4: would not want to take money advice from somebody who
39:36
Speaker 4: wasn't managing their money well, like at the crux.
39:40
Speaker 2: Of it, yeah, I just want a bit of a
39:42
Speaker 2: mind game for your listeners. And this is what I
39:45
Speaker 2: talked about in like knowing your why with investing. Have
39:50
Speaker 2: you got a simple money manto or vibe or plan
39:54
Speaker 2: for your life? And I share my three point plan
39:58
Speaker 2: for managing money.
39:59
Speaker 4: What does it get rich and then or die train?
40:02
Speaker 2: Yeah, so the first one Glenn James's three point plan
40:07
Speaker 2: managing money. I live on less than I own, Like
40:10
Speaker 2: straight up, I don't.
40:11
Speaker 4: Just honestly surprising. Yeah, I don't see that coming through.
40:14
Speaker 2: Really, I don't live on consumer debt. I don't have
40:18
Speaker 2: any personal loans. I live on lesson I own. Okay,
40:23
Speaker 2: that's the first thing I do. The second thing I
40:25
Speaker 2: do is I give generously. So I very You know
40:30
Speaker 2: I've outspoken about well, if you're struggling to make ends meet,
40:35
Speaker 2: it's not your time to give financially, you need to
40:37
Speaker 2: look after your family first, or if you are in
40:39
Speaker 2: a position to help other people financially, do it. I'm
40:44
Speaker 2: not talking about those people that go, oh, I volunteer
40:47
Speaker 2: instead of giving. No, you volunteered once for half a
40:50
Speaker 2: day at work three years ago. You don't volunteer.
40:53
Speaker 4: I feel like there's going to be some people who
40:54
Speaker 4: feel attacked.
40:55
Speaker 2: But okay, Glenn, so I give generously. I'm a generous giver.
40:59
Speaker 2: The third thing I do is I invest the rest.
41:01
Speaker 4: So how should we be investing, Glenn, Well.
41:04
Speaker 2: However you like that's in line with your values. But
41:08
Speaker 2: I really spend a bit of time in this mindset thing.
41:10
Speaker 2: I actually don't invest to have my investing account make
41:15
Speaker 2: me rich.
41:17
Speaker 4: And that's weird because I do.
41:18
Speaker 2: Yeah, So let's walk down this garden path.
41:21
Speaker 4: What are we investing for?
41:23
Speaker 2: Then? Yep. So I'm living on less than I own,
41:26
Speaker 2: which means I'm having a good life. I'm buying propellers
41:29
Speaker 2: on eBay, going to debt and all that stuff. Yeah,
41:32
Speaker 2: I'm generous giver. I invest the rest. So how I
41:36
Speaker 2: invest the rest and what I'm investing the rest for
41:38
Speaker 2: is My whole thing is I'm parking money long term
41:44
Speaker 2: for the glen of tomorrow. And my only metrics I don't.
41:48
Speaker 4: Want to park it, Glenn. I want to park it
41:50
Speaker 4: and see it get bigger, and then that's for future
41:53
Speaker 4: v yea.
41:53
Speaker 2: So my guard rails with parking it is must be
41:59
Speaker 2: higher than cash and inflation, and I'm happy to take
42:01
Speaker 2: the market risk.
42:02
Speaker 4: Okay, So that's basically what I do. I know, Like
42:06
Speaker 4: on the flip side, like for those of you listening along,
42:08
Speaker 4: Glenn and I are friends outside of podcast land, and
42:11
Speaker 4: I mean inside of podcast land as well, but I
42:14
Speaker 4: know what he holds, and he holds a lot of
42:15
Speaker 4: stuff that I hold. So I was shocked when he
42:17
Speaker 4: said I'm not investing to create wealth. I was like, sir,
42:20
Speaker 4: you are.
42:21
Speaker 2: Well, but this is so the mindset thing I want
42:24
Speaker 2: to teach people about mindset. I'm not investing to get
42:29
Speaker 2: one hundred percent return to make my life better overnight, because.
42:33
Speaker 4: Oh no, it's a long term thing.
42:35
Speaker 2: Well, like I've shared publicly on my podcast, i struggle
42:38
Speaker 2: with depression, anxiety. I'm collecting all the things right, and
42:44
Speaker 2: I know categorically that money doesn't fix your life. It
42:49
Speaker 2: makes it better. It gives you more options. So what
42:51
Speaker 2: I do is I encourage people just to invest the
42:55
Speaker 2: rest after they've lived and gived. I like that now
42:59
Speaker 2: within that, I'm comfortable with market returns from broad based indexes.
43:04
Speaker 2: And there's a heap of examples in the book where
43:08
Speaker 2: if I need my investing account to make lots of
43:11
Speaker 2: money so I can quit my job and my life's better,
43:16
Speaker 2: I would need to be hanging out in places in
43:19
Speaker 2: the investing world that is way too risky. Yeah, So
43:23
Speaker 2: we talked about the question of before who might have
43:26
Speaker 2: a hypothetical twenty thousand dollars portfolio. If she had a
43:31
Speaker 2: twenty thousand dollar portfolio and invested it in one unicorn
43:36
Speaker 2: and it got one hundred percent return in a year,
43:39
Speaker 2: amazing return. That's an extra twenty thousand dollars that twenty
43:44
Speaker 2: thousand dollars. While it's great, I'll take it. I'm not
43:46
Speaker 2: allergic to money that's not quote unquote life changing. So
43:52
Speaker 2: we need to make sure. And this is why I
43:55
Speaker 2: wrote the career book. First, I think you had shell
43:57
Speaker 2: on the show I did.
43:58
Speaker 4: Yeah, she was way better than you or as shy.
43:59
Speaker 2: Yeah she really is. Soort your career out and make
44:02
Speaker 2: more money. The first investment you should make is in
44:05
Speaker 2: your career because that's the annuity that produces the income.
44:09
Speaker 2: So that can change your human capital to money. So
44:14
Speaker 2: if I think my life sucks and I hate my life, well,
44:17
Speaker 2: to save enough money so I can quit my job,
44:19
Speaker 2: I need to be investing six grand a month to
44:22
Speaker 2: build out this big portfolio because when you're starting, the
44:24
Speaker 2: capital you put in will do more than the returns
44:27
Speaker 2: you're getting to start with. And if it takes five
44:29
Speaker 2: years to build up that, and if you did have
44:31
Speaker 2: five grand a month to invest, you're going through five
44:34
Speaker 2: years of hell. So let's go back and build a
44:37
Speaker 2: life that we like and we love. If you hate
44:39
Speaker 2: your job and you're listening, you might not be able
44:42
Speaker 2: to change tomorrow, but you can tomorrow start to think
44:45
Speaker 2: about what would my life look like if I was
44:48
Speaker 2: doing something I love, because then the investing part isn't
44:51
Speaker 2: the answer to all my life problems.
44:53
Speaker 4: That's true, That is very true. I feel like it's
44:55
Speaker 4: about enjoying the rest coming to my No no worries
44:58
Speaker 4: do I have to pay? Oh, thank you? That one
45:01
Speaker 4: was for free. We were talking about mindset, and we
45:03
Speaker 4: actually have a mindset question from Chelsea. She's asked, how,
45:08
Speaker 4: Glenn do I mentally shift away from saving five hundred
45:11
Speaker 4: dollars every month to investing that amount. She's struggling with it.
45:14
Speaker 2: So I think what we need to do, Chelsea, is
45:18
Speaker 2: we get our house in order. And you know you've
45:22
Speaker 2: seen it. I've talked about in my Sound Financial House,
45:25
Speaker 2: It's in the book. We want to get to the
45:26
Speaker 2: point where we've got our emergency fund, we might have
45:29
Speaker 2: a budget and cash flow, we might have our insurance
45:31
Speaker 2: a setup, and we've got a good foundation. Then what
45:35
Speaker 2: we can do is say, okay, I say five hundred
45:39
Speaker 2: dollars a month. I want Chelsea to get really clear
45:43
Speaker 2: on her life goals now, whether that is I want
45:47
Speaker 2: to save up and buy a new lounge in a
45:49
Speaker 2: few months, whether I want to go to Europe, or
45:52
Speaker 2: I don't want to just build wealth because I'm in
45:54
Speaker 2: this fortunate position. So once we've got our emergency fund
45:59
Speaker 2: and she's in the great position to have five hundred
46:02
Speaker 2: dollars free per month, can we at least start to
46:05
Speaker 2: put the toe in the water. Because it's a behavioral thing.
46:09
Speaker 2: So my challenge is, can you start by doing one
46:12
Speaker 2: hundred dollars a month investing for the long term or
46:15
Speaker 2: do some type of thing. It's like, all right, I
46:18
Speaker 2: need to do these lifestyle goals. So I think over
46:21
Speaker 2: the next twelve months it will cost me x. The
46:23
Speaker 2: rest is just going to be invested. But it's not
46:26
Speaker 2: all or nothing. You're allowed to start by doing one
46:29
Speaker 2: or two hundred dollars a month. When I talk about
46:31
Speaker 2: in the book about starting with one percent of your income,
46:38
Speaker 2: if you are cleaning up your mess and all that
46:39
Speaker 2: stuff I talk about. Now, once we start to do
46:43
Speaker 2: what I call wholesale investing, now that isn't what Acid
46:47
Speaker 2: says that you've got over five hundred thousand dollars in
46:50
Speaker 2: someone's life. Five hundred dollars a month investing is real money.
46:53
Speaker 2: It's serious amounts. Right. We need to be very strategic
46:57
Speaker 2: on how we're buying who's owning it? So is it
47:02
Speaker 2: in our own name, is it in a joint name,
47:04
Speaker 2: is it in superannuation what we're buying, then we can say, Okay,
47:10
Speaker 2: we're very clear on our strategy. Let's now ratchet up
47:15
Speaker 2: within the next three or four months. I want to
47:18
Speaker 2: get to the point where I am doing that five
47:19
Speaker 2: hundred a month. And I would say, Chelsea, even if
47:24
Speaker 2: you want to feel a little bit more comfortable, and
47:27
Speaker 2: if your emergency fund says three months of expenses, he's
47:29
Speaker 2: ten thousand dollars, maybe fifteen thousand dollars, then start investing
47:34
Speaker 2: like you're allowed to have a higher emergency fund just
47:36
Speaker 2: because you want to go.
47:37
Speaker 4: One hundred percent. And I feel like that mental shift
47:40
Speaker 4: away from saving to investing often it's because you feel
47:45
Speaker 4: like you're losing something because it's further out of reach.
47:47
Speaker 4: So making sure that you have your emergency fund set
47:50
Speaker 4: up and you are financially confident and you've got your
47:53
Speaker 4: cash flow going, that's going to mean that when you
47:56
Speaker 4: move into that investing space and that five hundred dollars
47:58
Speaker 4: that you've been saving each and every seath now becomes
48:01
Speaker 4: an investment. It doesn't hurt it doesn't feel like you're
48:04
Speaker 4: missing anything. And I think that's then about making sure
48:07
Speaker 4: that you have enough clarity over that platform as well,
48:10
Speaker 4: so you can log in, you can see it, you
48:11
Speaker 4: can feel it. But often when I'm talking to people
48:14
Speaker 4: about starting their investing journey, I say save it first,
48:18
Speaker 4: because we don't want to find out that we couldn't
48:21
Speaker 4: afford to invest it, and then we have to pull
48:22
Speaker 4: it out and it's not a good experience. Glenn, I'm
48:26
Speaker 4: running out of time, but I have another question for you.
48:29
Speaker 4: This one comes from Tara, and I feel like this
48:31
Speaker 4: is a fun question. Glenn. If you had fifty thousand
48:34
Speaker 4: dollars today, what would you do with it?
48:38
Speaker 2: Oh? I would?
48:41
Speaker 4: I feel like everyone it was in the investing question.
48:43
Speaker 4: So I'm assuming she thinks you're going to invest, but
48:45
Speaker 4: I know you're not going to.
48:46
Speaker 2: Well, I would like before we start a recording, I said, oh,
48:50
Speaker 2: get Josh to bring in a tape measure because I'm
48:51
Speaker 2: about to build a new studio.
48:53
Speaker 4: You would buy a studio, probably do that or if
48:57
Speaker 4: it's with fifty thousand dollars, build a Glenn jay is
49:00
Speaker 4: approved studio.
49:01
Speaker 2: No, And that's this is the problem I've got it's
49:04
Speaker 2: so annoying. Everything's expensive. But what it does speak to
49:07
Speaker 2: is because I'm at the stage in my life and
49:12
Speaker 2: a lot of your listeners are.
49:13
Speaker 4: Where where it's a retiree.
49:15
Speaker 2: Well, we're established, so you are.
49:18
Speaker 4: I spent all my money? Yeah, I being dumb, so
49:21
Speaker 4: did I On that mindset, That's how I feel.
49:24
Speaker 2: Right, I'm terrible at saving money. I'm a terrible saver.
49:26
Speaker 2: I'm a great investor. So I've trained myself to be
49:28
Speaker 2: a great investor. If fifty thousand dollars came into my
49:31
Speaker 2: lap tomorrow, it would only go towards income producing assets.
49:36
Speaker 2: A little bit of giving.
49:37
Speaker 4: You get to hire your studio out to me. If
49:39
Speaker 4: you come up to Newcastle, Newcastle, absolutely go to your studio.
49:42
Speaker 2: But yeah, it would be income producing assets. Look, if
49:45
Speaker 2: it was had to go into an ETF, I'd probably
49:47
Speaker 2: split it between IVV and IoZ because I like those
49:51
Speaker 2: two ETFs YEP, Broad Based Index Australia the US. I
49:54
Speaker 2: don't hate to invest in quote unquote global ETFs YEP
50:00
Speaker 2: because I've got the view that, for right or wrong,
50:03
Speaker 2: don't do what you want. Everyone don't do what I do.
50:05
Speaker 2: Most of the big companies listed on the US Exchange
50:09
Speaker 2: operate all around the world, and I just want a
50:11
Speaker 2: simple portfolio. But everyone you speak to when it comes
50:14
Speaker 2: to investing will have a different view or vibe.
50:18
Speaker 4: Of course, and you've got to work out your own
50:20
Speaker 4: that's right.
50:20
Speaker 2: So income producing assets. The best investment that anyone could
50:24
Speaker 2: ever make, I believe would be their own business. Not
50:27
Speaker 2: everyone's cut out to do that. That's okay, is hard,
50:30
Speaker 2: it is, so it's income generating is my studio or
50:34
Speaker 2: into ETFs. Although I do want a new car, all.
50:37
Speaker 4: Right, Well that's where we might leave it before this
50:40
Speaker 4: goes completely off track, Glenn. Where can we buy your
50:44
Speaker 4: book anywhere? Literally anywhere books are sold? Be nice to
50:48
Speaker 4: write a book and then it's anywhere, okay, try.
50:50
Speaker 2: Next to yours VD big WQBD dimicks.
50:54
Speaker 4: It's also in the link in our show notes. So
50:57
Speaker 4: that's super super easy for you. See.
50:59
Speaker 2: I just want to thank all your listeners for you know,
51:02
Speaker 2: supporting what we do over at Money, Money Money and
51:05
Speaker 2: our pod Vegas. And yeah, I say to people, if
51:09
Speaker 2: you buy the book and you're not satisfied with it,
51:11
Speaker 2: take it back to the retailer, tell them it's faulty,
51:13
Speaker 2: and see what happens.
51:14
Speaker 4: Oh my gosh, plend James, get off my show. Thanks
51:17
Speaker 4: for coming.
51:18
Speaker 2: See friends by.
51:25
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51:28
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51:29
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