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What Is The Difference Between Investment Platforms? · She's On The Money

• 0:00
  Speaker 1: Just before we get started, we'd like to acknowledge and
• 0:03
  Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.
• 0:07
  Speaker 1: They're the traditional custodians of the lands, the waterways and
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  Speaker 1: the skies all across Australia. We thank you for sharing
• 0:13
  Speaker 1: and for caring for the land on which we are
• 0:16
  Speaker 1: able to learn. We pay respects to elders past and present,
• 0:19
  Speaker 1: and we share our friendship and our kindness.
• 0:21
  Speaker 2: She's on the Money, She's on the Money.
• 0:45
  Speaker 3: Hello, and welcome to She's on the Money, the podcast
• 0:47
  Speaker 3: Millennials Who Want Financial Freedom. My name is Jessica Ricky,
• 0:51
  Speaker 3: filling in for George Key this week today, with of course,
• 0:54
  Speaker 3: as always, Victoria Devine.
• 0:56
  Speaker 1: Hello, Hey, going, you're just sneaking on in here to
• 0:59
  Speaker 1: do you were pod about investing.
• 1:01
  Speaker 3: Oh, you know, I love investing, so I'm very excited
• 1:04
  Speaker 3: for it.
• 1:04
  Speaker 1: Did you just knock George out of the ring because
• 1:06
  Speaker 1: You're like, this is going to be a really good topic.
• 1:08
  Speaker 1: I've been talking to Victoria about it a lot in
• 1:10
  Speaker 1: the office, obviously, because we're planning this.
• 1:12
  Speaker 4: I'm just going to do it myself.
• 1:14
  Speaker 3: Yeah, I st what I gave her the flu so
• 1:16
  Speaker 3: I could, Oh, my, you are so kind. I know
• 1:19
  Speaker 3: I'm really evil, but the like me, we're always just
• 1:22
  Speaker 3: so excited to see people start their investing journey. We
• 1:25
  Speaker 3: know that numbers of people starting that journey are increasing
• 1:29
  Speaker 3: right across the Australia, having risen significantly over the course
• 1:32
  Speaker 3: of the pandemic, which is just great to see.
• 1:34
  Speaker 1: Yes, Jesse, it makes my heart absolutely seeing and I
• 1:37
  Speaker 1: want to take some credit for that because I feel
• 1:39
  Speaker 1: like that She's on the money community make up a
• 1:41
  Speaker 1: really big portion of that. So let's say that it's
• 1:43
  Speaker 1: she's on the money. They're the investors in this community.
• 1:46
  Speaker 1: But what we really want to do with this show
• 1:49
  Speaker 1: is talk more about investing conversations and open up this
• 1:52
  Speaker 1: platform even more to talk more specifically, because I feel
• 1:56
  Speaker 1: like we've graduated a bit, Like a lot of people
• 1:58
  Speaker 1: are still in their budget and cash flow journeys, but
• 2:01
  Speaker 1: a lot of graduated to the point where they're picking
• 2:03
  Speaker 1: between different investment platforms, and there's lots of conversation and
• 2:06
  Speaker 1: questions in our community at the moment, Jess about what
• 2:09
  Speaker 1: platforms should I consider, how do I review them? What's
• 2:12
  Speaker 1: the difference between micro investing and like a share trading
• 2:16
  Speaker 1: platform and robo advice, and for me, I obviously know
• 2:20
  Speaker 1: what the difference is.
• 2:21
  Speaker 4: I'm like, what do you mean?
• 2:22
  Speaker 1: But you've had these questions before, We've gone through them,
• 2:25
  Speaker 1: and it's just something we haven't covered in detail on
• 2:28
  Speaker 1: the pod. So today we are going to be breaking
• 2:30
  Speaker 1: down the differences and who they might best serve.
• 2:33
  Speaker 3: And we really recommend you head back and listen to
• 2:35
  Speaker 3: our mini series on micro investing, which we did back
• 2:38
  Speaker 3: in twenty twenty.
• 2:39
  Speaker 4: I think I don't want to enjoy about it. It was
• 2:41
  Speaker 4: so long ago, can you imagine?
• 2:43
  Speaker 3: But we've done quite a few investing episodes since then.
• 2:45
  Speaker 3: So if you are at the point we are studying
• 2:47
  Speaker 3: your journey, definitely go back through the feed because we've
• 2:49
  Speaker 3: got the Investing one oh one series where we cover
• 2:51
  Speaker 3: the asset classes and then also that micro investing deep
• 2:54
  Speaker 3: dive as well.
• 2:56
  Speaker 1: But V where do we start, Jess, Let's talk about
• 2:58
  Speaker 1: the importance of understanding the different capabilities of the platforms,
• 3:01
  Speaker 1: because I feel like so many of us have only
• 3:04
  Speaker 1: recently started our investing journeys, which is why we're asking
• 3:07
  Speaker 1: questions like do I go with a micro investing platform
• 3:10
  Speaker 1: or do I go direct? And buy some shares, or
• 3:12
  Speaker 1: do I need to see a financial advisor? Like, one
• 3:15
  Speaker 1: of the most common questions in our community is do
• 3:17
  Speaker 1: I need to see a financial advisor? If so, how
• 3:19
  Speaker 1: do I find one? What does that mean? And a
• 3:21
  Speaker 1: lot of people are shocked when they come to find
• 3:24
  Speaker 1: out how expensive financial advisors are, but then they think
• 3:28
  Speaker 1: that maybe that's the only way you can access investing,
• 3:30
  Speaker 1: and that's just not the case. There are so many
• 3:33
  Speaker 1: options that put you in the driver's seat and in
• 3:36
  Speaker 1: the best possible position to actually invest and have a
• 3:39
  Speaker 1: positive impact on your future and feel empowered and get
• 3:43
  Speaker 1: education without actually having to see a financial advisor. Obviously,
• 3:47
  Speaker 1: there are some circumstances like if you've inherited a lot
• 3:50
  Speaker 1: of money or you're going through, you know, a significant
• 3:53
  Speaker 1: change in your life where you're like, you know, what,
• 3:55
  Speaker 1: I do need to see an advisor. I would always
• 3:57
  Speaker 1: recommend that, But given the fact that to see a
• 4:00
  Speaker 1: financial advisor it's probably going to cost you a minimum
• 4:03
  Speaker 1: of three and a half thousand dollars in a statement
• 4:05
  Speaker 1: of advice fee, that's quite prohubitive.
• 4:08
  Speaker 4: For so many people.
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  Speaker 1: So I think breaking down the different options that are
• 4:12
  Speaker 1: out there for us is going to put us in
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  Speaker 1: the driver's seat, and I want to break them down
• 4:16
  Speaker 1: in I guess levels of complexity. So like, let's frame
• 4:19
  Speaker 1: today in the context of primary school, high school, and university,
• 4:23
  Speaker 1: except we'll call it entry level, mid level, and advanced
• 4:26
  Speaker 1: kind of investing. Now, when I say advanced investing, I
• 4:30
  Speaker 1: don't mean, oh my gosh, you have to be an
• 4:32
  Speaker 1: absolute wizard like Warren Buffett and have millions of dollars.
• 4:36
  Speaker 1: It's just the level of complexity. It's kind of like
• 4:39
  Speaker 1: three steps. And I would love to maybe we'll make
• 4:42
  Speaker 1: a YouTube video on this. I would love to get
• 4:44
  Speaker 1: in front of a whiteboard and show you guys the differences.
• 4:48
  Speaker 1: But this is my way of framing that in an
• 4:49
  Speaker 1: audio context.
• 4:51
  Speaker 3: I love that. So let's say I'm right at the
• 4:52
  Speaker 3: startup my journey. I've got, you know, maybe a couple
• 4:54
  Speaker 3: of hundred dollars to invest. I've never invested before, and
• 4:57
  Speaker 3: I am feeling overwhelmed and intimate.
• 5:00
  Speaker 4: Yeah, and it can be.
• 5:00
  Speaker 1: So disempowering when you're like, oh, I finally save. Like
• 5:04
  Speaker 1: maybe it's like your first three thousand dollars, or maybe
• 5:06
  Speaker 1: it's you know, your first one hundred dollars. Like we
• 5:08
  Speaker 1: don't know your situation, but when you get to that
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  Speaker 1: point and you've made that decision to invest, it can
• 5:13
  Speaker 1: be really overwhelming. As you said to go, well, I
• 5:17
  Speaker 1: can't afford advice like do I just sit here with
• 5:19
  Speaker 1: my savings? I'd like what I want to do is
• 5:22
  Speaker 1: invest and that's what this episode is for. So let's
• 5:25
  Speaker 1: start Jess with the primary school. Let's start with the
• 5:28
  Speaker 1: entry level. Let's talk about micro investing. So obviously there
• 5:32
  Speaker 1: are a couple of big ones in Australia that I
• 5:35
  Speaker 1: talked about in our community, and I will shout them
• 5:37
  Speaker 1: out by name. We're not going to break down the
• 5:38
  Speaker 1: actual product. We will do another investing episode at some
• 5:41
  Speaker 1: point breaking down the differences in specific product. But right now,
• 5:46
  Speaker 1: this is your foundational level of understanding of the different
• 5:49
  Speaker 1: types of platforms that exist. The choice of what you
• 5:52
  Speaker 1: use and what is going to work for you is
• 5:54
  Speaker 1: actually on you, it's not on listening to a podcast.
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  Speaker 4: So let's talk about micro investing.
• 5:59
  Speaker 1: Spaceship and Race the two names that come to mind
• 6:02
  Speaker 1: when we think of micro investing here in Australia. If
• 6:04
  Speaker 1: you're in the Shees on the Money community already, you've
• 6:06
  Speaker 1: probably seen people in our community talking about the two
• 6:09
  Speaker 1: and the differences and what they do and how they work,
• 6:12
  Speaker 1: because they are two very different products, but they both
• 6:15
  Speaker 1: fall into the category of being micro investing platforms. So
• 6:19
  Speaker 1: micro investing is when you deposit really small amounts of
• 6:22
  Speaker 1: money into an investment portfolio over time. Some people this
• 6:26
  Speaker 1: is an absolute dream because it breaks down the barrier
• 6:29
  Speaker 1: that used to exist, which was like, jess, if you'd
• 6:31
  Speaker 1: like to start investing, you need fifteen thousand dollars or
• 6:34
  Speaker 1: you need five thousand dollars or something that seems or
• 6:37
  Speaker 1: feels really prohibitive, like it's just is such a high hurdle,
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  Speaker 1: Like not many of us can actually say, look, I've
• 6:42
  Speaker 1: got five grand in savings, like life is expensive and
• 6:46
  Speaker 1: do we get that, But it's from little things that
• 6:48
  Speaker 1: big things do grow. It's been a while since I've
• 6:50
  Speaker 1: been allowed to say that on the podcast. So basically,
• 6:54
  Speaker 1: to start micro investing, it is relatively easy.
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  Speaker 4: You don't need to go see.
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  Speaker 1: A financial advisor, you don't need so, you know, sign
• 7:00
  Speaker 1: up for some complex platform. It can be as easy
• 7:04
  Speaker 1: as downloading an app from one of your app stores,
• 7:06
  Speaker 1: creating an account, and starting Most of them have the
• 7:10
  Speaker 1: ability to connect your bank account straight there. There's obviously
• 7:13
  Speaker 1: going to be some level of identification that is required,
• 7:18
  Speaker 1: so don't be terrified of that when they say, hey, Jess,
• 7:21
  Speaker 1: can you upload a photo of your ID? And you go,
• 7:23
  Speaker 1: oh my gosh, what for? In Australia, they actually need
• 7:26
  Speaker 1: to collect that information about you because we need to
• 7:29
  Speaker 1: know who our client is, right, So this applies to
• 7:31
  Speaker 1: financial advisors as well. And I actually think it's quite funny, Jess.
• 7:35
  Speaker 1: If you came to me as a client, which surprise
• 7:37
  Speaker 1: you have before. If you came to me as a
• 7:39
  Speaker 1: client and we sat down, I actually need to verify
• 7:42
  Speaker 1: your identity because it's in the counter Terrorism Act, right, Yeah, I.
• 7:47
  Speaker 4: Need to make sure that you're not laundering money.
• 7:49
  Speaker 1: Yeah, so we need to make sure that you are
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  Speaker 1: who you say you are, regardless of how much money
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  Speaker 1: you're investing, whether that is one cent or it is
• 7:56
  Speaker 1: a million dollars, Like, I still need to make sure
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  Speaker 1: as the person who's a advising you that you're doing
• 8:01
  Speaker 1: the right thing. And a platform would have those same
• 8:03
  Speaker 1: responsibilities as well. So they'm asking for your ID, isn't
• 8:07
  Speaker 1: them asking too much? It's actually a legal requirement. The
• 8:11
  Speaker 1: other feature that people really seem to love about micro
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  Speaker 1: investing platforms is their ability to round up. So a
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  Speaker 1: lot of micro investing platforms offer the ability to round up.
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  Speaker 1: And if you haven't heard of this before, it's a
• 8:24
  Speaker 1: fun concept where Jess, if you say when and bought
• 8:27
  Speaker 1: a note latte for three dollars fifty, what that would
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  Speaker 1: mean if you had roundups enabled on your account and
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  Speaker 1: you were connected to a micro investing platform is that
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  Speaker 1: they would round that purchase up to the nearest dollar.
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  Speaker 1: So instead of that transaction costing three dollars fifty, it
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  Speaker 1: would cost four dollars and your micro investing platform would
• 8:44
  Speaker 1: take fifty cents and put it into your investing platform.
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  Speaker 1: For a lot of people, this is such a more
• 8:50
  Speaker 1: accessible way to start investing, especially if you're a gen
• 8:54
  Speaker 1: Z or a millennial, or you're really young and you're
• 8:57
  Speaker 1: at UNI, or you know, you might just be strapped
• 8:59
  Speaker 1: for cash, but you still want to feel like you're
• 9:01
  Speaker 1: doing something for your future. This is a really good
• 9:04
  Speaker 1: way of just rounding up those purchases. And the reason
• 9:08
  Speaker 1: I kind of lean into it and go, do you
• 9:10
  Speaker 1: know what, that's actually a really smart way of finding
• 9:13
  Speaker 1: some extra cash. There are a lot of savings accounts
• 9:15
  Speaker 1: that have that capability too. The reason I like that
• 9:18
  Speaker 1: is sometimes, jes you just don't have the wiggle room
• 9:21
  Speaker 1: in your budget to allocate extra twenty or thirty bucks
• 9:24
  Speaker 1: a month towards investing, but you can always connect your
• 9:28
  Speaker 1: bank account that your discretionary spending is on, So if
• 9:31
  Speaker 1: you're buying a coffee or something that is not your
• 9:34
  Speaker 1: rent and not your bills, you actually have that capacity
• 9:37
  Speaker 1: to invest or save or do whatever you want. I
• 9:40
  Speaker 1: think it's a cool feature across the board, regardless of platform.
• 9:43
  Speaker 1: So for me that makes a lot of sense, and
• 9:45
  Speaker 1: for you, if you're an investor using a micro investing platform,
• 9:49
  Speaker 1: you might really like the fact that you're dollar cost
• 9:51
  Speaker 1: averaging into the market. So dolar cost averaging, if we
• 9:55
  Speaker 1: haven't discussed it before, is where instead of dropping lump
• 9:58
  Speaker 1: sums into the market over a longer period of time,
• 10:02
  Speaker 1: you're consistently transacting in the market, so you're dropping money
• 10:05
  Speaker 1: in on a regular basis, which means that you're always
• 10:07
  Speaker 1: making use of the highs and the lows of the market.
• 10:10
  Speaker 1: So on average, over time we end up paying the
• 10:13
  Speaker 1: average right, And that is good because Jess, if we
• 10:16
  Speaker 1: could time the market, we would be so rich, like
• 10:20
  Speaker 1: beyond rich.
• 10:21
  Speaker 4: Look at Warren Buffett. He's able to time the market.
• 10:24
  Speaker 4: I don't know how.
• 10:25
  Speaker 1: I think he's a wizard, or maybe he has something
• 10:27
  Speaker 1: magic fairy duest in that house.
• 10:28
  Speaker 3: He won't give up sold has sold to somebody to
• 10:30
  Speaker 3: figure that out.
• 10:31
  Speaker 1: I think, yeah, look, let me know, Warren, if you
• 10:33
  Speaker 1: want to catch up a coffee, I will buy you
• 10:35
  Speaker 1: an oat latte, and I will round up my purchase
• 10:38
  Speaker 1: and I will invest fifty cents.
• 10:40
  Speaker 3: So these platforms v I know that there's kind of
• 10:42
  Speaker 3: two primary ways that they break down the investing. It's
• 10:46
  Speaker 3: managed funds and ETF fuss. Yes, what's the difference between
• 10:48
  Speaker 3: the two?
• 10:49
  Speaker 1: Oh my gosh, she's done her research, kind of obsessed
• 10:52
  Speaker 1: with you. All right, So micro investing platforms are not
• 10:55
  Speaker 1: all created the same. So you don't just go all right, well,
• 10:58
  Speaker 1: i've seen this brand or i've seen that brand. I'm
• 11:00
  Speaker 1: just going to go with one or the other. I
• 11:02
  Speaker 1: like the marketing, or I like you know, the branding,
• 11:04
  Speaker 1: or i've seen an influencer to use it like that
• 11:06
  Speaker 1: is not how we make decisions. The way we should
• 11:08
  Speaker 1: be making decisions is by actually looking at the different products,
• 11:11
  Speaker 1: their features, and benefits and going this one suits me
• 11:14
  Speaker 1: better or this one suits me better. Right, So the
• 11:17
  Speaker 1: difference between a managed fund and an ETF is is
• 11:21
  Speaker 1: quite big in the grand scheme of things, but to
• 11:24
  Speaker 1: you as a consumer, it's probably not.
• 11:26
  Speaker 4: There are a couple of different products on.
• 11:28
  Speaker 1: The market when it comes to micro investing, and some
• 11:31
  Speaker 1: of them have different portfolios that you can choose from.
• 11:34
  Speaker 1: So they will have like a conservative portfolio or an
• 11:37
  Speaker 1: aggressive portfolio. They might have like a sustainable portfolio for
• 11:41
  Speaker 1: you to choose from, and then those portfolios are made
• 11:43
  Speaker 1: up of different ETFs that that micro investing platform has
• 11:46
  Speaker 1: chosen that might work for you. So that is one
• 11:49
  Speaker 1: way of investing. And an ETF is an exchange traded fund,
• 11:53
  Speaker 1: which is basically where instead of buying individual shares, there
• 11:58
  Speaker 1: is a portfolio that is put together. It's like a
• 12:00
  Speaker 1: big bucket, right, That's how I see ETFs. Like every
• 12:03
  Speaker 1: time someone says ETF, I think bucket very sexy. But
• 12:06
  Speaker 1: it's essentially a bucket that is run by an ETF
• 12:09
  Speaker 1: manager and they put all of their different shares into
• 12:12
  Speaker 1: a portfolio and they manage it and then you purchase
• 12:15
  Speaker 1: into that bucket instead of purchasing individual shares on your own,
• 12:19
  Speaker 1: and one of the benefits of that is that you
• 12:21
  Speaker 1: get instant diversification. So diversification is making sure that your
• 12:26
  Speaker 1: assets are spread out instead of having all your eggs
• 12:28
  Speaker 1: in one basket. And an ETF is quite a popular
• 12:31
  Speaker 1: way of making sure that you have access to diversification,
• 12:35
  Speaker 1: which is really important when it comes to investing. You
• 12:37
  Speaker 1: need to make sure that you do have good diversification
• 12:40
  Speaker 1: because when we are investing law or amounts, we don't
• 12:43
  Speaker 1: have the ability to be instantly diversified, right, especially when
• 12:47
  Speaker 1: like if you look at like a bank's share, right
• 12:49
  Speaker 1: that could be like anywhere between sixty and one hundred
• 12:52
  Speaker 1: dollars per share to own. And then if you're creating
• 12:55
  Speaker 1: your big portfolio, like how do you get diversification across
• 12:59
  Speaker 1: all the different sectors? Like you want to own some banks,
• 13:01
  Speaker 1: maybe you want to own some commodities, you want some
• 13:03
  Speaker 1: sustainable things in there, you might want some retail. There's
• 13:06
  Speaker 1: not a lot of ways that you can make sure
• 13:08
  Speaker 1: that happens with a limited budget when you're buying directly.
• 13:11
  Speaker 1: So a lot of people like ets right. The alternative
• 13:14
  Speaker 1: in the micro investing space is what's called a direct
• 13:17
  Speaker 1: managed fund, and a managed fund is where, instead of
• 13:21
  Speaker 1: having different portfolios that you choose from that might be
• 13:24
  Speaker 1: like conservative or aggressive or as we said, sustainable, they
• 13:27
  Speaker 1: actually just have a set list of stocks that that
• 13:30
  Speaker 1: company has chosen and you buy into that managed fund.
• 13:34
  Speaker 1: A managed fund then has an allocated fund manager, so
• 13:38
  Speaker 1: that could be a person that is in charge of
• 13:40
  Speaker 1: making sure that performs and they make decisions on all
• 13:44
  Speaker 1: of those shares in that portfolio. But instead of you going,
• 13:48
  Speaker 1: I'm a conservative investor, I want to match this to
• 13:50
  Speaker 1: my risk profile, you're picking a type of managed fund,
• 13:53
  Speaker 1: and some of them in the market at the moment
• 13:56
  Speaker 1: have maybe one or two or even three different types
• 13:59
  Speaker 1: of managed funds you can choose from, but instead of
• 14:01
  Speaker 1: aligning to your risk they actually align to maybe your values.
• 14:05
  Speaker 1: So it might be like up and coming companies, or
• 14:07
  Speaker 1: it might be you know, the stock standard top two
• 14:10
  Speaker 1: hundred companies, So it really depends on what you're looking for,
• 14:13
  Speaker 1: and I think understanding those differences and how they work
• 14:17
  Speaker 1: is really really important because you just want to know.
• 14:20
  Speaker 4: What you're getting. Like, it's not just about reading the
• 14:23
  Speaker 4: front of the cereal box.
• 14:24
  Speaker 1: It's about reading the ingredients and how you're meant to
• 14:26
  Speaker 1: mix it up and how it works and who it's
• 14:28
  Speaker 1: going to suit. So for me, it's really important that
• 14:30
  Speaker 1: you understand that not all micro investing platforms are created equally.
• 14:34
  Speaker 1: But one of the things that is really attractive to
• 14:37
  Speaker 1: a lot of people in the community is they're very
• 14:40
  Speaker 1: low entry fees. So a lot of microinvesting platforms won't
• 14:44
  Speaker 1: charge you until you get to a minimum amount, and
• 14:46
  Speaker 1: that amount could be five thousand dollars invested, or they
• 14:50
  Speaker 1: might have a very low monthly fee when compared to
• 14:53
  Speaker 1: bigger investing platforms that would have the platform fee, but
• 14:56
  Speaker 1: then you'd also be paying brokerage and maybe some advice
• 14:59
  Speaker 1: like It completely depends, but accessibility on microinvesting platforms seems
• 15:04
  Speaker 1: to be something that people adore.
• 15:06
  Speaker 3: In terms of those different types of funds, would it
• 15:08
  Speaker 3: be fair to say that something like Spaceship is an
• 15:11
  Speaker 3: example of a managed fund and then something like comsec
• 15:15
  Speaker 3: pocket would be an ETF fund where you're choosing your
• 15:17
  Speaker 3: selection yet.
• 15:19
  Speaker 1: So I'm trying here to just give you an idea
• 15:21
  Speaker 1: of the types of platforms, but yes, we can talk
• 15:23
  Speaker 1: about that. So raise they have different portfolios that you
• 15:26
  Speaker 1: would pick based on your risk tolerance, and then they
• 15:29
  Speaker 1: pick ETFs which build up that portfolio. Something like Spaceship
• 15:34
  Speaker 1: has more of a managed fund approach where you pick
• 15:36
  Speaker 1: the managed fund that works for you, and then comsect
• 15:40
  Speaker 1: Pocket is the platform that you can log into and
• 15:43
  Speaker 1: pick one of their limited options.
• 15:45
  Speaker 4: Of ETFs available.
• 15:46
  Speaker 3: Got it?
• 15:47
  Speaker 1: Now?
• 15:47
  Speaker 3: What can't these platforms do because they're sounding pretty good
• 15:50
  Speaker 3: right now.
• 15:50
  Speaker 1: Honestly, they do sound pretty good, pretty accessible. But a
• 15:53
  Speaker 1: few weeks back, on our chat about growth and dividend investing,
• 15:57
  Speaker 1: we mentioned el Maate Warren Buffett, who clearly I talk
• 15:59
  Speaker 1: about a lot on this podcast. He keeps coming back.
• 16:02
  Speaker 1: People are going to start accusing me of having a crush,
• 16:04
  Speaker 1: which I very much do. But we talked about his
• 16:08
  Speaker 1: quote that said, if you aren't thinking about owning a
• 16:11
  Speaker 1: stock for ten years, don't even think about owning it
• 16:14
  Speaker 1: for ten minutes. And I feel like that should really
• 16:17
  Speaker 1: be taken into consideration when we talk about what your
• 16:19
  Speaker 1: investing journey should look like, because a micro investing platform
• 16:23
  Speaker 1: isn't the type of platform that a financial advisor would
• 16:27
  Speaker 1: recommend to someone who's about to retire, and the reason
• 16:30
  Speaker 1: for that is because you can't take the income that
• 16:33
  Speaker 1: is being made in your investment portfolio as a income
• 16:37
  Speaker 1: for you directly. It just automatically gets reinvested and your
• 16:41
  Speaker 1: portfolio is there and it grows and you would have
• 16:43
  Speaker 1: to cash the entirety out to make money. So from
• 16:46
  Speaker 1: my perspective, accessibility is really good. It's easy to get
• 16:50
  Speaker 1: on these platforms. A lot of people in our community
• 16:53
  Speaker 1: really like it because they feel like they're not, you know,
• 16:55
  Speaker 1: putting their life savings into an investment. They can just
• 16:58
  Speaker 1: start with like five or ten dollars so that they
• 17:00
  Speaker 1: can see how the market starts to perform and how
• 17:03
  Speaker 1: they feel when it's off and what that looks like,
• 17:05
  Speaker 1: and slowly start building from there.
• 17:07
  Speaker 4: But what we do see in our community.
• 17:09
  Speaker 1: Is a lot of people using micro investing platforms to
• 17:12
  Speaker 1: springboard into like a shared trading account or robo advice
• 17:17
  Speaker 1: or then seeing a financial advisor. So what I'm seeing
• 17:20
  Speaker 1: is a lot of people using it. It's kind of
• 17:22
  Speaker 1: like the start point. It's like primary school. As we said,
• 17:25
  Speaker 1: let's talk about that.
• 17:25
  Speaker 3: So say I've been micro investing and I'm understanding the
• 17:28
  Speaker 3: ebbs and the flows, I'm feeling a bit more confident,
• 17:30
  Speaker 3: and I'm a little bit more in control. What would
• 17:33
  Speaker 3: I be looking at for more of that mid level
• 17:35
  Speaker 3: investing point?
• 17:36
  Speaker 1: Okay, so mid level so this is secondary school or
• 17:39
  Speaker 1: like you know, if you were going skiing, it would
• 17:42
  Speaker 1: be a blue run. So just mid level investing is
• 17:44
  Speaker 1: more about DIY platforms where I genuinely believe you need
• 17:48
  Speaker 1: to have a little bit more knowledge before you log
• 17:50
  Speaker 1: in and start trading. So these could be things like
• 17:54
  Speaker 1: Chaz's and Superhero and self wealth, which we've all talked about.
• 17:57
  Speaker 4: In the community.
• 17:58
  Speaker 1: I feel like those are some pretty big as that
• 18:00
  Speaker 1: people in our community are going to be very well
• 18:03
  Speaker 1: aware of. And the thing is they're not harder to
• 18:06
  Speaker 1: access than a micro investing platform.
• 18:08
  Speaker 3: Right.
• 18:09
  Speaker 1: All of these bar self wealth that I've mentioned, have
• 18:11
  Speaker 1: apps that you can download that are super user friendly
• 18:14
  Speaker 1: that you can just download from an app store, upload
• 18:17
  Speaker 1: your information, and start trading, which is so exciting, right,
• 18:21
  Speaker 1: and it means that investing is so much more accessible.
• 18:24
  Speaker 1: Something like self wealth load does have like an access
• 18:26
  Speaker 1: point where you need a minimum of like five hundred
• 18:29
  Speaker 1: dollars to invest, so obviously that's not as accessible, but
• 18:31
  Speaker 1: if you compared that to like a SHARESI is you
• 18:33
  Speaker 1: only need one cent to invest and I just feel
• 18:36
  Speaker 1: like that is such a new idea these days.
• 18:39
  Speaker 4: Like historically, entry level to direct.
• 18:42
  Speaker 1: Share trading was so prohibitive because you'd need so much money,
• 18:45
  Speaker 1: you'd have to pay a ridiculous amount of brokerage, and
• 18:47
  Speaker 1: it would just feel like it was so beyond what
• 18:50
  Speaker 1: you could control. Now it's super easy. But the thing
• 18:54
  Speaker 1: that I would want you to be aware of is
• 18:56
  Speaker 1: that you need to have a knowledge of like, jess,
• 18:57
  Speaker 1: what are you gonna buy once you've downloaded that a
• 19:00
  Speaker 1: how do you know what you want to trade? So
• 19:02
  Speaker 1: it's a bit more DIY and that you don't just
• 19:04
  Speaker 1: go on the app, pick a portfolio and go yep, cool,
• 19:07
  Speaker 1: this is what I'm buying. You go on the platform
• 19:11
  Speaker 1: and depending on what app you've downloaded, you could have
• 19:14
  Speaker 1: access to Australian Shares, US Shares, New Zealand Shares, you
• 19:17
  Speaker 1: could have access to some platforms have crypto and NFTs.
• 19:21
  Speaker 1: Like there's so much diversification and range that you're going
• 19:26
  Speaker 1: to need to have some level of education to make
• 19:29
  Speaker 1: a decision that is right for you. And I don't
• 19:31
  Speaker 1: want that to sound overwhelming, because as we said before,
• 19:34
  Speaker 1: ETFs are really popular. You can buy ETFs on share
• 19:36
  Speaker 1: trading platforms, so it shouldn't be overwhelming. And sometimes just
• 19:41
  Speaker 1: downloading an app and having a look through is a
• 19:43
  Speaker 1: really good start of an education. Like you're not going
• 19:45
  Speaker 1: to be bullied into investing five thousand dollars just by
• 19:48
  Speaker 1: downloading the app and having a bit of a play
• 19:50
  Speaker 1: with a small amount of money.
• 19:52
  Speaker 4: But what I do want you guys to understand.
• 19:53
  Speaker 1: Is is a bit more of a responsibility on you
• 19:56
  Speaker 1: to be making those decisions. And you do need to
• 19:59
  Speaker 1: understand what an ETF is or a managed fund, or
• 20:02
  Speaker 1: what type of direct shares you do want to be
• 20:04
  Speaker 1: purchasing for and why. And I think why is the
• 20:07
  Speaker 1: biggest question we need to answer here is what's your intention?
• 20:10
  Speaker 1: Are you buying it just because it's a bit of
• 20:12
  Speaker 1: fun like your friends, you know a couple of years
• 20:14
  Speaker 1: we're talking about after Patiares, Do you want to have
• 20:16
  Speaker 1: a bit of a dabble in a few tech stocks
• 20:18
  Speaker 1: or are you genuinely starting your journey towards creating financial freedom,
• 20:23
  Speaker 1: in which case it is important to pick stocks that
• 20:26
  Speaker 1: you buy and hold and go back to Warren Buffett's
• 20:28
  Speaker 1: quote about holding it for ten years.
• 20:30
  Speaker 3: So say you're someone like me, and you're using the shares'
• 20:32
  Speaker 3: platform and you're buying stocks that really align with your
• 20:35
  Speaker 3: values or the things that you think could be really
• 20:38
  Speaker 3: fantastic in the future or make a difference. Can I
• 20:41
  Speaker 3: purchase those and hold them long term in a way
• 20:44
  Speaker 3: that I can't really on micro investing Clay.
• 20:46
  Speaker 4: Yes, absolutely you can.
• 20:48
  Speaker 1: And that is the intention of a lot of platforms,
• 20:50
  Speaker 1: Like I know we're talking to Chase's and they've said
• 20:52
  Speaker 1: directly to us, no, that's the intention, Like they don't
• 20:54
  Speaker 1: actually want people going on there and buying and selling
• 20:57
  Speaker 1: and being like day traders, which is a completely different conversation.
• 21:01
  Speaker 4: To be had.
• 21:02
  Speaker 1: And I think that that's the important thing. It is
• 21:04
  Speaker 1: a responsibility on you. You need to make a decision
• 21:07
  Speaker 1: that you feel is right for you. But the intention
• 21:09
  Speaker 1: when buying shares should be a buy and hold strategy,
• 21:13
  Speaker 1: like and that's not financial advice. That is just saying
• 21:16
  Speaker 1: that we wouldn't want you to put yourself in a
• 21:18
  Speaker 1: position where you had to sell something really quickly, Like
• 21:21
  Speaker 1: I want you to be in the financial position where
• 21:24
  Speaker 1: you don't have to sell something, because you shouldn't be
• 21:26
  Speaker 1: investing your emergency fund right you should only be investing
• 21:30
  Speaker 1: money that can be allocated towards investing directly, and that's
• 21:34
  Speaker 1: a question. We get a lot like, oh my gosh,
• 21:36
  Speaker 1: well my emergency fund is doing nothing, And I'm like,
• 21:38
  Speaker 1: that's the point of an emergency fund, Like it's meant
• 21:41
  Speaker 1: to be super accessible. You're meant to know that that
• 21:43
  Speaker 1: money is there, rain, hail, or shine for you in
• 21:46
  Speaker 1: the case of an emergency. It's not there to create wealth, Like,
• 21:50
  Speaker 1: its job is to keep you safe. And I think
• 21:53
  Speaker 1: we need to differentiate between the role that money has
• 21:55
  Speaker 1: in our lives. Some money is there to keep us safe.
• 21:59
  Speaker 1: Its job isn't to make money. But then other money,
• 22:02
  Speaker 1: like we're going to put that to work, and that's
• 22:03
  Speaker 1: really important. And that's the type of money you'd put
• 22:06
  Speaker 1: on an investing platform. So if you're in a position
• 22:09
  Speaker 1: where you don't have an emergency fund yet, I definitely
• 22:11
  Speaker 1: would be considering that before downloading an investing app, because
• 22:15
  Speaker 1: in investing app, it should be for the long term.
• 22:17
  Speaker 1: Regardless of what app you've picked.
• 22:19
  Speaker 3: What types of features do these share trading platforms have
• 22:22
  Speaker 3: that maybe we wouldn't be seeing on a micro investing platform.
• 22:25
  Speaker 1: So they usually have a whole heap more research, So
• 22:28
  Speaker 1: they have the underlying actual asset. You'll be able to
• 22:30
  Speaker 1: click into a particular stock and see what they're doing,
• 22:33
  Speaker 1: what their performance has been over time. There's not going
• 22:36
  Speaker 1: to be any aspect of advice on there, Like you're
• 22:38
  Speaker 1: not going to click into a NAB share and it'll
• 22:41
  Speaker 1: say this is a good share to purchase, like that's
• 22:43
  Speaker 1: not how it works. But it'll explain to you what
• 22:46
  Speaker 1: the dividend yield might be and what that share is
• 22:49
  Speaker 1: going to cost you to purchase, and it's going to
• 22:52
  Speaker 1: explain to you what it's been doing over time, which
• 22:55
  Speaker 1: I think is a really powerful thing and really important
• 22:57
  Speaker 1: to tak into consideration when making this. As we said before,
• 23:01
  Speaker 1: these apps exist to be a bit more DIY like
• 23:04
  Speaker 1: you're meant to be doing these things yourself, like that
• 23:06
  Speaker 1: is your decision, whereas when compared to a microinvesting app,
• 23:09
  Speaker 1: like the decisions are made for you. You don't have
• 23:11
  Speaker 1: to pick stocks, whereas on a shared trading platform you've
• 23:14
  Speaker 1: got the power to pick your stocks. And I feel
• 23:16
  Speaker 1: like I'm making this sound like it's a big responsibility,
• 23:19
  Speaker 1: and it absolutely is, but it can be really empowering
• 23:22
  Speaker 1: once you start looking into things and go do you
• 23:24
  Speaker 1: know what, I'm going to download this app and I'm
• 23:26
  Speaker 1: going to buy an ETF, probably going to buy two
• 23:29
  Speaker 1: or three eutfs that might align to my values. But
• 23:32
  Speaker 1: then it gives you the access to be able to
• 23:34
  Speaker 1: buy things that are in line with your values as well, which,
• 23:37
  Speaker 1: as shees on the Money, we always want you to
• 23:39
  Speaker 1: be buying things that are in line with your values.
• 23:41
  Speaker 3: So there are so many share trading platforms out there,
• 23:44
  Speaker 3: I would say way more than micro investing platforms. How
• 23:46
  Speaker 3: do people figure out what is right for them?
• 23:49
  Speaker 1: So the important thing is to go onto their different websites,
• 23:52
  Speaker 1: have a look at the features and benefits, and maybe
• 23:55
  Speaker 1: write your own little bucket list, like what do you
• 23:57
  Speaker 1: actually want out of this process? Do you want really
• 24:00
  Speaker 1: good tax reporting or do you want to be able
• 24:02
  Speaker 1: to access an overseas market or are you just looking
• 24:05
  Speaker 1: for an app that will give you access to ETFs?
• 24:08
  Speaker 4: Like what do you want? And then also what.
• 24:11
  Speaker 1: Type of accessibility do you want? Are you looking for
• 24:14
  Speaker 1: the ability to start at one cent or are you
• 24:16
  Speaker 1: looking for the ability to invest your first few thousands
• 24:19
  Speaker 1: of dollars? And obviously an option that has one cent
• 24:22
  Speaker 1: is going to work for a few thousand dollars. But
• 24:24
  Speaker 1: if you're in this situation where you're like me, I
• 24:26
  Speaker 1: have my first five hundred, like and I want to
• 24:29
  Speaker 1: maybe start with one hundred, You're going to want to
• 24:31
  Speaker 1: look for options that are aligning to your ability.
• 24:34
  Speaker 4: To access a platform.
• 24:35
  Speaker 1: Right, So I would go on to their websites and
• 24:37
  Speaker 1: just look for how much is it going to cost me?
• 24:39
  Speaker 1: Am I able to access the things I want to access?
• 24:42
  Speaker 1: Is the reporting that I want there? And am I
• 24:44
  Speaker 1: happy with the values and goals of this company as well?
• 24:47
  Speaker 1: So from my perspective, it's not just about going, can
• 24:51
  Speaker 1: I access something good? It's about looking at the team
• 24:53
  Speaker 1: and going, am I comfortable with the way they run
• 24:55
  Speaker 1: this business? Do I like this as a thing that
• 24:58
  Speaker 1: I'm going to interact? Because when you're picking a shared
• 25:02
  Speaker 1: trading platform, like the idea would be to buy and hold,
• 25:05
  Speaker 1: but also stick with that platform for that period of
• 25:08
  Speaker 1: time because it can get a little bit messy when
• 25:11
  Speaker 1: you try and change platforms. So I'm making it sound
• 25:14
  Speaker 1: dramatic that it's a really big decision, but it is
• 25:16
  Speaker 1: and I need you guys to take it as seriously
• 25:18
  Speaker 1: as I do.
• 25:19
  Speaker 3: Incredible, So we've talked micro investing we've talked share trading.
• 25:23
  Speaker 3: We've still got one more to go, robo investing.
• 25:26
  Speaker 2: Jess.
• 25:26
  Speaker 1: I am trying so hard to not get too deep
• 25:29
  Speaker 1: on these. You keep saying that it is an overarching thing,
• 25:32
  Speaker 1: so there are going to be so many more episodes
• 25:34
  Speaker 1: where I'm like, all right, we're going to break down
• 25:35
  Speaker 1: the different platforms and their features and benefits. Like I
• 25:37
  Speaker 1: have an entire spreadsheet that I want to share with
• 25:40
  Speaker 1: you guys, So just wait, it's coming. But yes, let's
• 25:43
  Speaker 1: go to a quick break, and when we come back,
• 25:45
  Speaker 1: I'm going to deep dive straight into robo advice.
• 25:53
  Speaker 3: Already we're back, We're chatting investing platforms. It's very exciting, Victoria.
• 25:57
  Speaker 3: I'm telling you to ren it in because we only
• 25:59
  Speaker 3: have so much today. So let's tackle the last kind
• 26:02
  Speaker 3: of option under that big umbrella that you gave us
• 26:04
  Speaker 3: at the start, which is robo investing.
• 26:06
  Speaker 1: I don't know if I want to call it advanced.
• 26:08
  Speaker 1: I'm going back on what I said. I don't know
• 26:10
  Speaker 1: if this is advanced because at the same time as
• 26:13
  Speaker 1: it being kind of like that third step up, so
• 26:15
  Speaker 1: it goes kind of like micro investing. Then you've got
• 26:17
  Speaker 1: your DIY investing platforms and then you've got robo advice.
• 26:21
  Speaker 1: The reason I'm calling it like that third step up
• 26:25
  Speaker 1: or the advanced option, is not because it's more complicated.
• 26:28
  Speaker 4: It's because it's a little.
• 26:30
  Speaker 1: Bit more expensive and a little bit more complex and comprehensive,
• 26:34
  Speaker 1: and I think that that's important to understand. It's not
• 26:36
  Speaker 1: because it's harder to access, it's not because it requires
• 26:39
  Speaker 1: so much more knowledge on your behalf. It's actually because
• 26:42
  Speaker 1: it's the one option that includes personalized investment advice. So
• 26:47
  Speaker 1: it's basically just the same as going and seeing a
• 26:50
  Speaker 1: financial advisor and just talking to them about investments. So,
• 26:54
  Speaker 1: as you guys know are here in Australia, financial advice
• 26:57
  Speaker 1: can be really expensive and it's important for you to
• 27:00
  Speaker 1: understand why that's the case. So I'm a financial advisor
• 27:03
  Speaker 1: and I give this advice and just before we even
• 27:05
  Speaker 1: get into robo advice, so I think it's important to
• 27:07
  Speaker 1: give you a little bit of insight as to why
• 27:09
  Speaker 1: it costs so much, because if you go the like
• 27:12
  Speaker 1: why does it cost you so much to go hey,
• 27:14
  Speaker 1: invest in X, Y and Z, Like why is it
• 27:16
  Speaker 1: between three and a half and seven thousand dollars for
• 27:19
  Speaker 1: you to do that, but it's all about the relationship, right, So,
• 27:22
  Speaker 1: like you would come in and sit with me as
• 27:25
  Speaker 1: a financial advisor, and I take into consideration absolutely every
• 27:28
  Speaker 1: part of your personal life, your values, your goals, your
• 27:31
  Speaker 1: tolerance to risk, what that means. Then we'd have another meeting.
• 27:35
  Speaker 1: It might be another two hours or so on strategy.
• 27:38
  Speaker 1: What you think you want to do? Do you want
• 27:39
  Speaker 1: to buy property? These are the different options we have.
• 27:42
  Speaker 1: Do you want to be investing in shares?
• 27:43
  Speaker 4: What does the future look like.
• 27:45
  Speaker 1: We've just got a lot of strategy to sort out,
• 27:47
  Speaker 1: and then honestly, it takes hours for me to put
• 27:51
  Speaker 1: together a statement of advice. So a statement of advice
• 27:54
  Speaker 1: is an official document, our one in our office I
• 27:57
  Speaker 1: think usually sits between sixty five and eighty five page,
• 28:00
  Speaker 1: depending on what type of advice I'm giving. You know,
• 28:03
  Speaker 1: the more complex obviously, the more pages. But I don't
• 28:05
  Speaker 1: want you guys thinking it's just it's like LTT one
• 28:07
  Speaker 1: page that says hees inversting exercise, because that's not how
• 28:11
  Speaker 1: it works. Like, it's this really comprehensive document that compares
• 28:15
  Speaker 1: and contrasts every option and shows you exactly why the
• 28:18
  Speaker 1: option I'm putting on the table is the right option
• 28:20
  Speaker 1: for you so that you feel empowered. Honestly, a lot
• 28:23
  Speaker 1: of clients are just like V this is too much
• 28:25
  Speaker 1: to read. Please tell me what the outcome is. I
• 28:27
  Speaker 1: will look at that later and it makes sense. But
• 28:29
  Speaker 1: these things honestly take hours. Then there's implementation, so I
• 28:33
  Speaker 1: actually then have to go and set it up. And
• 28:36
  Speaker 1: accessibility of platforms that are available to financial advisors isn't
• 28:40
  Speaker 1: available to you, Jess, so it does require different setups.
• 28:44
  Speaker 1: And let's be honest, the financial advice industry is also
• 28:47
  Speaker 1: a little bit backwards. That's why I can't use a Mac.
• 28:49
  Speaker 1: Do you know that half of the financial advice software
• 28:52
  Speaker 1: is don't work on Max?
• 28:53
  Speaker 4: Really? So rude? Cool goal, Yess? Yes, cool girl. I'm
• 28:57
  Speaker 4: not a cool girl.
• 28:58
  Speaker 1: But I have to go and implement all of those things.
• 29:02
  Speaker 1: I also have to get paperwork signed and submitted and
• 29:05
  Speaker 1: organized because like due diligence. But it's one of those
• 29:08
  Speaker 1: things where I don't think people understand how long it takes.
• 29:11
  Speaker 4: But do you know what.
• 29:12
  Speaker 1: Robo advice has done, Jess, What's automated my job? So
• 29:16
  Speaker 1: I'm not mad, I'm just a little envious that when
• 29:20
  Speaker 1: it comes to robo advice. Obviously, you're not getting that
• 29:23
  Speaker 1: holistic advice. You're not going to go sit down with
• 29:25
  Speaker 1: a financial advisor and talk about your goals and values
• 29:27
  Speaker 1: and help sort those out, because you're going to have
• 29:29
  Speaker 1: to know what your goals and your values are before
• 29:31
  Speaker 1: you go. And they're not going to talk to you
• 29:33
  Speaker 1: about insurance needs and they're not going to talk about
• 29:35
  Speaker 1: superanuation because to be honest, those two things are way
• 29:38
  Speaker 1: too complicated at the moment for me to even comprehend
• 29:42
  Speaker 1: an algorithm doing it. But if you were seeing a
• 29:44
  Speaker 1: financial advisor just for investing, this is what robo advisors do.
• 29:49
  Speaker 1: It's automating that entire process, so that fact find meeting
• 29:52
  Speaker 1: and that risk profile that you do and the strategy
• 29:55
  Speaker 1: it's all done in the background. And most robo advice
• 29:58
  Speaker 1: platforms do that for fe free, like the statement of
• 30:01
  Speaker 1: advice is free, and you only start paying once you
• 30:04
  Speaker 1: start actually implementing that advice, which I think is quite
• 30:08
  Speaker 1: accessible in comparison. The thing that frustrates me about these comparisons, though,
• 30:14
  Speaker 1: is so many times and you would have seen it
• 30:15
  Speaker 1: in the community, Jess, people go, oh my gosh, robo
• 30:19
  Speaker 1: advice so much more expensive the micro investing and you
• 30:22
  Speaker 1: want to kind of go or I want to kind
• 30:24
  Speaker 1: of go.
• 30:24
  Speaker 4: No, Like it's completely different.
• 30:26
  Speaker 1: It's like comparing apples with oranges because you're just dumping
• 30:30
  Speaker 1: your money into something on a micro investing platform, whereas
• 30:33
  Speaker 1: with robo advice, you've got that full piece of advice,
• 30:36
  Speaker 1: you get a statement of advice, but then on the
• 30:39
  Speaker 1: back end, there are actual people doing actual work to
• 30:43
  Speaker 1: make sure your portfolio is doing the right thing, to
• 30:45
  Speaker 1: make sure it is aligning to the performance that is expected.
• 30:48
  Speaker 1: They will rebalance your portfolio. So rebalancing your portfolio is
• 30:51
  Speaker 1: incredibly important because over time, you will have different weights
• 30:55
  Speaker 1: of different assets in your portfolio and you need to
• 30:58
  Speaker 1: make sure they're even and aligne into your goals and
• 31:00
  Speaker 1: values depending on what your risk profile is, and that
• 31:03
  Speaker 1: can actually be quite complex. But all of that is
• 31:06
  Speaker 1: done for you with a robo investing platform, so you're
• 31:09
  Speaker 1: able to access things like ETFs and a portfolio that
• 31:12
  Speaker 1: is recommended by that statement of advice while having all
• 31:16
  Speaker 1: of the back end support. So it can be kind
• 31:19
  Speaker 1: of like the step up for people who are like
• 31:21
  Speaker 1: I am not interested in DII share trading.
• 31:25
  Speaker 4: Not for me. Some people absolutely adore it. I totally
• 31:28
  Speaker 4: get it.
• 31:29
  Speaker 1: Robo advice is that step up which is kind of
• 31:31
  Speaker 1: giving you advice but not being prohibitive on cost.
• 31:35
  Speaker 3: So what does that cost look like for robo investing platforms?
• 31:38
  Speaker 1: So it can range, but it's usually anywhere between six
• 31:42
  Speaker 1: dollars twenty five and maybe like ten dollars a month,
• 31:45
  Speaker 1: depending on what platform you choose and how that works.
• 31:48
  Speaker 1: There are a few platforms in circulation. So there's stock Spot,
• 31:52
  Speaker 1: which you might have heard of before. There's six park
• 31:54
  Speaker 1: which you've probably heard of before because we do have
• 31:56
  Speaker 1: an affiliation with them, which means that we have those
• 31:58
  Speaker 1: shees on the money six Parker. To go back to
• 32:01
  Speaker 1: the question you are actually asking, yess, it is definitely
• 32:04
  Speaker 1: higher than a micro investing platform, which you can access
• 32:06
  Speaker 1: for about three dollars fifty a month. Please do remember though,
• 32:09
  Speaker 1: that if you're paying for advice fees, so like robo
• 32:11
  Speaker 1: advice fees or financial advice fees or even your microinvesting
• 32:15
  Speaker 1: like fees that you pay, it's all claimable and tax
• 32:18
  Speaker 1: So definitely write that one down for JUNI three. But
• 32:22
  Speaker 1: I think it is kind of as a financial advisor
• 32:24
  Speaker 1: a little bit frustrating when people compare a micro investing
• 32:28
  Speaker 1: platform to a platform that you know does so much
• 32:31
  Speaker 1: more and is actually a very different offering. And I mean,
• 32:34
  Speaker 1: you guys go mass investing Victoria and I'm like, no,
• 32:37
  Speaker 1: it's not.
• 32:37
  Speaker 4: It's so different.
• 32:38
  Speaker 1: And the important thing I would be taking into consideration
• 32:41
  Speaker 1: there when it comes to robo advice is the background information.
• 32:45
  Speaker 1: So I really believe in automating processes that can be automated, right, Like,
• 32:49
  Speaker 1: the less work I am doing day to day on
• 32:52
  Speaker 1: the things that can be automated, the more time I
• 32:54
  Speaker 1: have to spend all my clients and their goals and
• 32:56
  Speaker 1: their values and maintaining those relationships and making sure that
• 32:59
  Speaker 1: you are doing exactly what you said you were going
• 33:01
  Speaker 1: to do, right. And if the fact find process, which,
• 33:05
  Speaker 1: to be honest, is a big survey that we go
• 33:07
  Speaker 1: through and I collect all the information about you the
• 33:09
  Speaker 1: risk profile, which, again, to be honest, I do do
• 33:13
  Speaker 1: this big risk profile. But again I'm manually calculated. If
• 33:17
  Speaker 1: all of that can be automated and we can create
• 33:20
  Speaker 1: an algorithm that spits out advice, it's probably smarter than me.
• 33:24
  Speaker 1: Like like, no room for human error, No room for
• 33:28
  Speaker 1: human error there. But when you flip to the back end.
• 33:30
  Speaker 1: That's when I think it's really important to consider what
• 33:33
  Speaker 1: that type of follow up looks like, like are you
• 33:35
  Speaker 1: going to have access to people? Are you going to
• 33:37
  Speaker 1: have a supportive community behind you if you're joining something
• 33:41
  Speaker 1: like this. And something else that's important to consider is
• 33:43
  Speaker 1: do they actually have like some kind of investment committee
• 33:47
  Speaker 1: or some kind of human overlay over the top of
• 33:50
  Speaker 1: an algorithm, Because an algorithm is really smart, but you
• 33:54
  Speaker 1: do need to still have that level of human interaction
• 33:57
  Speaker 1: and human nouse that I don't believe in Algornith Rhythm
• 34:00
  Speaker 1: has nailed on the head yet. So if you look
• 34:03
  Speaker 1: at it, you go, all right, well an algorithm could
• 34:06
  Speaker 1: solve it. And some robo advice platforms are one thousand
• 34:09
  Speaker 1: percent algorithm. There's no room for human intervention at all.
• 34:13
  Speaker 1: And some other platforms actually have that automated process of
• 34:16
  Speaker 1: the statement of advice and the implementation process. But once
• 34:20
  Speaker 1: you're there and invested, they have an investment committee that
• 34:22
  Speaker 1: oversees all of the investment in addition to making sure
• 34:25
  Speaker 1: that they're doing the right thing. So for me, it's
• 34:27
  Speaker 1: about just working out what aligns to your values and
• 34:29
  Speaker 1: really understanding and comparing and contrasting platforms to go, well,
• 34:32
  Speaker 1: which one would I be the most comfortable on if
• 34:34
  Speaker 1: I'm asking for advice?
• 34:36
  Speaker 3: Last question on robo advice, what is the barrier to
• 34:38
  Speaker 3: entry on those kinds of platform because if you're getting
• 34:41
  Speaker 3: that level of advice, I'm assuming it's going to be
• 34:43
  Speaker 3: a little pricier.
• 34:44
  Speaker 1: Yes, but it's not just price, it's actually accessibility. So
• 34:47
  Speaker 1: robo advice platforms, because they do have that level of
• 34:51
  Speaker 1: diversification that they would need to achieve and they are
• 34:54
  Speaker 1: putting you into a portfolio and providing advice, the entry
• 34:58
  Speaker 1: point is a lot higher, so it's not going to
• 35:00
  Speaker 1: cost you more, but you would have to have a
• 35:01
  Speaker 1: bigger initial investment, and most of them started about two
• 35:05
  Speaker 1: thousand dollars for like a more limited profile, and then
• 35:07
  Speaker 1: five thousand dollars for a very comprehensive profile. So it
• 35:10
  Speaker 1: definitely requires a bigger upfront investment. But it's also about well,
• 35:14
  Speaker 1: what's going to suit your situation, Jess, Like what do
• 35:17
  Speaker 1: you actually want to do and where are we actually
• 35:19
  Speaker 1: going with this? And then I guess to compare and
• 35:21
  Speaker 1: contrast that to a financial advisor, similar things happen as well,
• 35:25
  Speaker 1: got it?
• 35:26
  Speaker 3: So I guess to summarize, micro investing platforms really low
• 35:29
  Speaker 3: barrier to entry, probably not going to sit there forever
• 35:32
  Speaker 3: because you can't make those dividend payments that set you
• 35:35
  Speaker 3: up to kind of make passive income the way we all.
• 35:38
  Speaker 1: Dream of is that what you got out of what
• 35:39
  Speaker 1: I said, because like that's a better summary. Just like
• 35:41
  Speaker 1: cut everything I said earlier and drop that in thank you.
• 35:44
  Speaker 3: Welcome to my podcast. So share trading platforms. Barrier to
• 35:47
  Speaker 3: entry varies. It can be as little as one cent,
• 35:49
  Speaker 3: like our friends at Chairs's, or it can be slightly
• 35:51
  Speaker 3: higher for different platforms. Great for the long term because
• 35:54
  Speaker 3: you can get that dividend yield and set yourself up. However,
• 35:57
  Speaker 3: you're taking on more responsibility personally because you're the one
• 36:01
  Speaker 3: selecting your shaft.
• 36:02
  Speaker 4: I'm responsible, gal Jess Grici one hundred percent.
• 36:05
  Speaker 3: You are, but it means that you have to make
• 36:06
  Speaker 3: sure that you're diversified and that it's in line with
• 36:08
  Speaker 3: your values and all of those other fun things. Robo
• 36:12
  Speaker 3: investing means that that responsibility is off of you. Somebody
• 36:15
  Speaker 3: else is making those decisions, or maybe it's you know,
• 36:18
  Speaker 3: an algorithm, not a person.
• 36:19
  Speaker 4: It's an algorithm. I'm trusting the algorithm.
• 36:22
  Speaker 1: Though, Like I feel like everybody is so skeptical, and
• 36:25
  Speaker 1: that's cause old fuddy duddy financial advisors are skeptical because
• 36:29
  Speaker 1: they don't want their jobs taken from them.
• 36:31
  Speaker 4: That's me.
• 36:31
  Speaker 1: I will do an entire podcast on the industry at
• 36:33
  Speaker 1: some point. I won't be making friends in that episode,
• 36:36
  Speaker 1: that's for sure. But I just have this idea that
• 36:39
  Speaker 1: like automation is the way of the future, and if
• 36:41
  Speaker 1: we can embrace it as advisors, we can lower the
• 36:43
  Speaker 1: cost of advice in general. Like imagine if we can
• 36:46
  Speaker 1: get to a point where everybody's sitting on some kind
• 36:48
  Speaker 1: of robo advice platform and we know that the investing
• 36:51
  Speaker 1: stuff is just ticking along really well, so I can
• 36:54
  Speaker 1: focus on like goal setting with you, and I can
• 36:55
  Speaker 1: focus on actually achieving things and changing your money mindset,
• 36:59
  Speaker 1: which I think is so much more important.
• 37:00
  Speaker 3: So those robo investing platforms like six Park or stock Spot,
• 37:04
  Speaker 3: they've got the algorithm ticking away doing work for you.
• 37:06
  Speaker 3: Maybe there's a person on the back end keeping it
• 37:08
  Speaker 3: in check. Maybe there's not, but it's a much higher
• 37:11
  Speaker 3: barrier to entry because you have a higher minimum investment
• 37:13
  Speaker 3: and generally higher fees. Yes, did I get it all?
• 37:16
  Speaker 4: I think you've got it all. I think we're done
• 37:17
  Speaker 4: for today.
• 37:18
  Speaker 1: Do you want to read out the disclaimer to say
• 37:20
  Speaker 1: that I am a legit financial advisor and charge lots
• 37:22
  Speaker 1: of money if you came to see me personally.
• 37:23
  Speaker 3: Oh, if you insist, I try really hard.
• 37:25
  Speaker 1: Guys.
• 37:26
  Speaker 3: Don't forget guys. The advice shared on She's on the
• 37:28
  Speaker 3: Money is generally nature and does not consider your individual circumstances.
• 37:32
  Speaker 3: She's on the money if it's purely for educational purposes
• 37:34
  Speaker 3: and should not be relied upon to make an investment
• 37:36
  Speaker 3: or a financial decision. And victoria divine and she's on
• 37:40
  Speaker 3: the money? Is it all?
• 37:41
  Speaker 4: That's shiny?
• 37:42
  Speaker 3: So fancy is an authorized representative of Infocused Securities Australia
• 37:46
  Speaker 3: Proprietary Limited ABN four seven nine seven seven nine seven
• 37:50
  Speaker 3: four nine AFSL two three six five two three.
• 37:53
  Speaker 4: We'll see you all on Friday.
• 37:55
  Speaker 3: See you then, guys. Byeected day