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Should You Buy Property or Invest in Stocks? Most Kiwis Get This Wrong · Making Cents

• 0:00
  You'd
• 0:00
  think
• 0:00
  it'd
• 0:01
  be
• 0:01
  a
• 0:01
  good
• 0:01
  problem
• 0:02
  to
• 0:02
  have,
• 0:02
  but
• 0:02
  it
• 0:02
  can
• 0:03
  actually
• 0:03
  be
• 0:04
  paralyzing.
• 0:05
  You've
• 0:06
  worked
• 0:06
  hard,
• 0:06
  got
• 0:06
  out
• 0:07
  of
• 0:07
  debt
• 0:07
  and
• 0:07
  hit
• 0:07
  a
• 0:07
  point
• 0:08
  where
• 0:08
  you're
• 0:08
  ready
• 0:08
  to
• 0:08
  start
• 0:09
  investing,
• 0:10
  really
• 0:10
  build
• 0:11
  your
• 0:11
  wealth.
• 0:12
  But
• 0:12
  now
• 0:12
  everyone's
• 0:13
  got
• 0:13
  thoughts
• 0:13
  on
• 0:14
  what
• 0:14
  you
• 0:14
  should
• 0:14
  do
• 0:14
  next.
• 0:15
  Your
• 0:15
  parents
• 0:16
  say
• 0:16
  property
• 0:17
  worked
• 0:17
  well
• 0:17
  for
• 0:18
  them.
• 0:18
  Your
• 0:19
  friends
• 0:19
  say
• 0:19
  that's
• 0:20
  yesterday's
• 0:20
  news
• 0:21
  and
• 0:21
  the
• 0:21
  share
• 0:21
  market
• 0:22
  is
• 0:22
  better.
• 0:23
  So
• 0:23
  which
• 0:24
  should
• 0:24
  you
• 0:24
  go
• 0:24
  for?
• 0:25
  And
• 0:25
  even
• 0:25
  if
• 0:25
  you
• 0:26
  do
• 0:26
  pick,
• 0:26
  how
• 0:27
  do
• 0:27
  you
• 0:27
  do
• 0:27
  it
• 0:27
  Right?
• 0:28
  Well,
• 0:29
  welcome
• 0:29
  to
• 0:29
  Ask
• 0:29
  the
• 0:30
  Experts.
• 0:30
  For
• 0:30
  each
• 0:30
  week,
• 0:31
  people
• 0:31
  from
• 0:32
  inside
• 0:32
  the
• 0:32
  money
• 0:32
  world
• 0:33
  answer
• 0:34
  your
• 0:34
  questions.
• 0:35
  Making
• 0:35
  Sense
• 0:36
  has
• 0:36
  partnered
• 0:36
  up
• 0:36
  with
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  Enable
• 0:37
  Me
• 0:38
  to
• 0:38
  get
• 0:38
  you
• 0:38
  the
• 0:38
  strategies
• 0:39
  for
• 0:39
  reaching
• 0:39
  financial
• 0:40
  freedom
• 0:40
  faster.
• 0:41
  Head
• 0:41
  to
• 0:41
  their
• 0:42
  website
• 0:42
  to
• 0:42
  learn
• 0:43
  more.
• 0:43
  Visit
• 0:43
  Enable
• 0:44
  Me
• 0:45
  today.
• 0:46
  All
• 0:46
  right,
• 0:46
  we
• 0:46
  have
• 0:46
  the
• 0:46
  fabulous
• 0:47
  Katie
• 0:47
  Wesney
• 0:48
  from
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  Enable
• 0:48
  Me
• 0:49
  here
• 0:49
  to
• 0:49
  help
• 0:49
  us
• 0:49
  figure
• 0:50
  it
• 0:50
  all
• 0:50
  out.
• 0:50
  Ready
• 0:51
  for
• 0:51
  the
• 0:51
  letter?
• 0:52
  So
• 0:52
  ready.
• 0:52
  Okay.
• 0:53
  Hi,
• 0:54
  Frances.
• 0:54
  I've
• 0:55
  hit
• 0:55
  the
• 0:55
  stage
• 0:55
  where
• 0:55
  I'm
• 0:56
  finally
• 0:56
  out
• 0:56
  of
• 0:56
  the
• 0:57
  trenches
• 0:57
  with
• 0:57
  my
• 0:57
  money.
• 0:58
  Debt
• 0:58
  paid
• 0:59
  off,
• 0:59
  decent
• 1:00
  income,
• 1:01
  and
• 1:01
  now
• 1:01
  I
• 1:01
  want
• 1:02
  to
• 1:02
  build
• 1:02
  something
• 1:02
  for
• 1:02
  the
• 1:03
  future.
• 1:03
  I've
• 1:04
  been
• 1:04
  listening
• 1:04
  to
• 1:04
  your
• 1:04
  podcast,
• 1:05
  but
• 1:05
  I
• 1:05
  still
• 1:06
  don't
• 1:06
  know
• 1:06
  what
• 1:06
  I
• 1:06
  want
• 1:06
  to
• 1:07
  do.
• 1:07
  My
• 1:07
  parents
• 1:08
  swear
• 1:08
  by
• 1:09
  property
• 1:09
  and
• 1:09
  have
• 1:10
  a
• 1:10
  couple
• 1:10
  of
• 1:10
  rentals
• 1:10
  themselves,
• 1:11
  but
• 1:12
  it
• 1:12
  seems
• 1:12
  so
• 1:12
  expensive,
• 1:13
  and
• 1:14
  I'm
• 1:14
  not
• 1:14
  sure
• 1:14
  it's
• 1:14
  the
• 1:14
  same
• 1:14
  bet
• 1:15
  it
• 1:15
  was
• 1:15
  when
• 1:16
  they
• 1:16
  invested.
• 1:17
  Then
• 1:17
  I
• 1:17
  look
• 1:17
  at
• 1:17
  shares
• 1:18
  and
• 1:18
  in
• 1:18
  some
• 1:19
  ways
• 1:19
  it
• 1:19
  seems
• 1:19
  easier,
• 1:20
  in
• 1:20
  others
• 1:20
  it
• 1:21
  seems
• 1:21
  scarier.
• 1:22
  I
• 1:22
  don't
• 1:22
  know
• 1:23
  where
• 1:23
  to
• 1:23
  even
• 1:23
  start.
• 1:25
  So
• 1:25
  which
• 1:25
  one
• 1:25
  is
• 1:25
  better
• 1:26
  and
• 1:26
  do
• 1:27
  you
• 1:27
  think
• 1:27
  one
• 1:27
  is
• 1:28
  going
• 1:28
  to
• 1:28
  do
• 1:28
  better
• 1:28
  in
• 1:29
  the
• 1:29
  future?
• 1:29
  How
• 1:30
  do
• 1:30
  I
• 1:30
  choose
• 1:31
  and
• 1:31
  how
• 1:31
  do
• 1:31
  I
• 1:32
  start?
• 1:32
  Classic
• 1:33
  analysis.
• 1:33
  Paralysis.
• 1:34
  Yeah,
• 1:34
  I
• 1:35
  love
• 1:35
  it.
• 1:35
  And
• 1:35
  she's
• 1:36
  not
• 1:36
  at
• 1:36
  the
• 1:36
  starting
• 1:36
  line.
• 1:37
  Getting
• 1:37
  rid
• 1:37
  of
• 1:37
  debt,
• 1:38
  sorting
• 1:38
  income,
• 1:39
  that
• 1:39
  is
• 1:39
  huge.
• 1:40
  It's
• 1:40
  just
• 1:41
  what
• 1:41
  comes
• 1:41
  next
• 1:42
  for
• 1:42
  her
• 1:43
  in
• 1:43
  terms
• 1:43
  of
• 1:43
  strategy.
• 1:44
  Yeah,
• 1:45
  well,
• 1:46
  property
• 1:46
  versus
• 1:47
  shares.
• 1:47
  You
• 1:48
  must
• 1:48
  have
• 1:48
  people
• 1:48
  ask
• 1:49
  you
• 1:49
  that
• 1:49
  all
• 1:49
  the
• 1:49
  time.
• 1:49
  Do
• 1:50
  you
• 1:50
  have
• 1:50
  a
• 1:50
  preference?
• 1:51
  No,
• 1:52
  no,
• 1:53
  I
• 1:53
  actually
• 1:53
  don't.
• 1:54
  It's
• 1:54
  just,
• 1:54
  where
• 1:55
  do
• 1:55
  you
• 1:55
  lean
• 1:55
  in
• 1:56
  terms
• 1:56
  of
• 1:56
  age
• 1:56
  and
• 1:57
  stage
• 1:57
  and
• 1:57
  what
• 1:57
  are
• 1:57
  you
• 1:58
  trying
• 1:58
  to
• 1:58
  achieve?
• 1:59
  Super
• 1:59
  important.
• 2:00
  When
• 2:00
  we
• 2:01
  look
• 2:01
  at
• 2:01
  both,
• 2:01
  I
• 2:02
  think
• 2:02
  there
• 2:02
  is
• 2:02
  a
• 2:02
  place
• 2:03
  for
• 2:03
  both.
• 2:04
  It's
• 2:04
  just
• 2:06
  as
• 2:06
  I
• 2:06
  said,
• 2:06
  in
• 2:07
  what
• 2:07
  order?
• 2:08
  Okay,
• 2:09
  so
• 2:09
  do
• 2:10
  you
• 2:10
  have
• 2:11
  sort
• 2:11
  of
• 2:13
  times
• 2:13
  when
• 2:13
  one
• 2:14
  works
• 2:14
  better
• 2:14
  than
• 2:14
  the
• 2:14
  other?
• 2:15
  General
• 2:15
  rules
• 2:15
  of
• 2:15
  thumb?
• 2:16
  Yeah,
• 2:16
  I
• 2:17
  think
• 2:17
  property
• 2:18
  works
• 2:19
  when
• 2:19
  there
• 2:19
  is
• 2:20
  quite
• 2:21
  a
• 2:21
  large
• 2:21
  wealth
• 2:22
  gap
• 2:22
  in
• 2:23
  terms
• 2:23
  of
• 2:23
  what
• 2:23
  you're
• 2:24
  trying
• 2:24
  to
• 2:24
  achieve,
• 2:25
  because
• 2:25
  you
• 2:25
  can
• 2:26
  leverage
• 2:27
  and
• 2:27
  use
• 2:27
  borrowed
• 2:28
  money
• 2:28
  to
• 2:28
  effectively
• 2:29
  have
• 2:30
  a
• 2:30
  bigger
• 2:30
  asset
• 2:31
  that's
• 2:31
  going
• 2:31
  to
• 2:31
  go
• 2:31
  up
• 2:31
  in
• 2:32
  time
• 2:33
  and
• 2:33
  you
• 2:33
  have
• 2:33
  a
• 2:33
  longer
• 2:34
  time
• 2:34
  frame
• 2:34
  in
• 2:35
  terms
• 2:35
  of
• 2:36
  when
• 2:36
  you
• 2:36
  need
• 2:36
  to
• 2:37
  achieve
• 2:37
  Something
• 2:37
  by
• 2:38
  versus
• 2:40
  Shares.
• 2:40
  And
• 2:40
  when
• 2:41
  I
• 2:41
  say
• 2:41
  shares,
• 2:41
  I'm
• 2:41
  generally
• 2:42
  speaking
• 2:42
  to
• 2:42
  my
• 2:42
  clients
• 2:43
  about
• 2:43
  managed
• 2:44
  funds.
• 2:45
  Generally
• 2:46
  speaking,
• 2:46
  the
• 2:47
  great
• 2:47
  thing
• 2:47
  about
• 2:47
  shares
• 2:48
  is
• 2:49
  it
• 2:49
  gives
• 2:49
  you
• 2:49
  that
• 2:50
  layer
• 2:50
  of
• 2:50
  diversification
• 2:52
  and
• 2:52
  liquidity
• 2:53
  when
• 2:53
  you
• 2:54
  are
• 2:54
  investing
• 2:54
  via
• 2:55
  the
• 2:55
  managed
• 2:55
  fund
• 2:56
  mechanism.
• 2:57
  Interesting
• 2:57
  there
• 2:58
  that
• 2:58
  you
• 2:58
  mention
• 2:58
  about
• 2:59
  property
• 2:59
  being
• 2:59
  good
• 3:00
  for,
• 3:00
  you
• 3:00
  know,
• 3:01
  you're
• 3:01
  borrowing
• 3:01
  money
• 3:01
  to
• 3:01
  get
• 3:02
  into
• 3:02
  it
• 3:02
  and
• 3:02
  you
• 3:02
  have
• 3:02
  a
• 3:02
  longer
• 3:03
  period
• 3:03
  of
• 3:03
  time
• 3:04
  because
• 3:04
  that
• 3:04
  means
• 3:05
  you're
• 3:05
  necessarily
• 3:05
  looking
• 3:06
  into
• 3:06
  the
• 3:06
  future.
• 3:07
  I
• 3:07
  have
• 3:07
  seen,
• 3:08
  and
• 3:08
  we've
• 3:09
  had
• 3:09
  that
• 3:09
  conversation
• 3:09
  on
• 3:09
  this
• 3:10
  podcast
• 3:10
  as
• 3:10
  well,
• 3:11
  where
• 3:12
  people
• 3:12
  have
• 3:12
  been
• 3:12
  talking
• 3:12
  about
• 3:13
  is
• 3:13
  the
• 3:13
  age
• 3:13
  of
• 3:13
  property
• 3:14
  over?
• 3:15
  So
• 3:15
  when
• 3:15
  you're
• 3:15
  looking
• 3:16
  into
• 3:16
  the
• 3:16
  future,
• 3:17
  how
• 3:17
  do
• 3:17
  you
• 3:17
  feel
• 3:18
  about
• 3:18
  that
• 3:18
  conversation?
• 3:19
  Property
• 3:19
  has
• 3:20
  changed.
• 3:20
  It
• 3:21
  really
• 3:21
  has.
• 3:21
  And
• 3:22
  I
• 3:22
  think
• 3:22
  we
• 3:22
  all
• 3:22
  acknowledge
• 3:23
  that
• 3:24
  era
• 3:24
  of
• 3:25
  easy
• 3:25
  money
• 3:26
  has
• 3:26
  just
• 3:28
  finished.
• 3:28
  And
• 3:29
  I
• 3:29
  think
• 3:29
  it's
• 3:30
  less
• 3:30
  about
• 3:31
  buying
• 3:31
  anything
• 3:32
  and
• 3:34
  letting
• 3:34
  time
• 3:34
  do
• 3:35
  its
• 3:35
  thing.
• 3:36
  I
• 3:36
  think
• 3:36
  it's
• 3:36
  more
• 3:36
  about
• 3:37
  discipline,
• 3:38
  understanding
• 3:39
  what
• 3:39
  you
• 3:39
  need
• 3:40
  to
• 3:40
  achieve
• 3:40
  with
• 3:41
  that
• 3:41
  asset
• 3:41
  class
• 3:42
  and
• 3:42
  really,
• 3:43
  really
• 3:43
  understanding
• 3:44
  your
• 3:44
  numbers.
• 3:45
  That's
• 3:45
  critical.
• 3:46
  It's
• 3:46
  different,
• 3:47
  but
• 3:48
  the
• 3:48
  same
• 3:49
  mechanisms
• 3:50
  that
• 3:50
  have
• 3:51
  worked
• 3:51
  well
• 3:51
  in
• 3:52
  the
• 3:52
  past
• 3:52
  can
• 3:53
  work
• 3:53
  again.
• 3:53
  You
• 3:54
  just
• 3:54
  have
• 3:54
  to
• 3:54
  be
• 3:55
  deliberate
• 3:55
  and
• 3:55
  disciplined.
• 3:57
  So,
• 3:58
  yes,
• 3:58
  still
• 3:58
  to
• 3:59
  property,
• 3:59
  but
• 3:59
  more
• 4:00
  strategically.
• 4:00
  Absolutely.
• 4:01
  You're
• 4:01
  not
• 4:01
  just
• 4:01
  buying
• 4:02
  anything.
• 4:02
  It's
• 4:03
  what
• 4:03
  is
• 4:03
  the
• 4:03
  right
• 4:03
  property
• 4:04
  for
• 4:04
  me
• 4:04
  and
• 4:05
  what
• 4:05
  is
• 4:06
  my
• 4:06
  hold
• 4:06
  strategy.
• 4:07
  Those
• 4:07
  two
• 4:08
  things
• 4:08
  are
• 4:08
  critical
• 4:09
  to
• 4:09
  ensure
• 4:10
  that
• 4:10
  you're
• 4:11
  able
• 4:11
  to
• 4:11
  keep
• 4:11
  it
• 4:12
  when
• 4:12
  the
• 4:13
  market
• 4:13
  might
• 4:13
  dip.
• 4:14
  Because
• 4:14
  property,
• 4:15
  like
• 4:15
  shares,
• 4:16
  is
• 4:16
  quite
• 4:16
  cyclical
• 4:17
  and
• 4:18
  you
• 4:18
  just
• 4:18
  have
• 4:18
  to
• 4:18
  have
• 4:18
  the
• 4:19
  ability
• 4:19
  to
• 4:19
  hold
• 4:19
  it
• 4:20
  when
• 4:20
  things
• 4:21
  change.
• 4:22
  It's
• 4:22
  really
• 4:22
  funny,
• 4:23
  isn't
• 4:23
  it?
• 4:23
  Because
• 4:23
  I
• 4:23
  do
• 4:24
  feel
• 4:24
  like
• 4:24
  we
• 4:24
  end
• 4:24
  up
• 4:25
  with
• 4:25
  this
• 4:25
  very
• 4:26
  black
• 4:26
  and
• 4:27
  white
• 4:28
  discussion
• 4:28
  of
• 4:29
  property
• 4:29
  where
• 4:30
  people
• 4:30
  tend
• 4:30
  to
• 4:30
  be
• 4:30
  either
• 4:31
  amazing
• 4:32
  fans,
• 4:32
  it's
• 4:32
  great,
• 4:33
  it
• 4:33
  doubles
• 4:34
  every
• 4:34
  10
• 4:35
  years
• 4:35
  or
• 4:35
  whatever
• 4:35
  they
• 4:35
  say,
• 4:36
  and
• 4:36
  it's
• 4:37
  going
• 4:37
  to
• 4:37
  be
• 4:38
  such
• 4:38
  an
• 4:38
  important
• 4:39
  lever
• 4:39
  for
• 4:39
  your
• 4:39
  wealth
• 4:40
  or
• 4:40
  it's
• 4:40
  over.
• 4:41
  You
• 4:41
  should
• 4:41
  only
• 4:41
  rent,
• 4:42
  put
• 4:42
  your
• 4:42
  money
• 4:42
  into
• 4:42
  shares,
• 4:43
  and
• 4:43
  it's,
• 4:44
  you
• 4:44
  know,
• 4:44
  properties
• 4:44
  for
• 4:45
  suckers
• 4:45
  or
• 4:45
  boomers.
• 4:46
  And
• 4:47
  I
• 4:47
  just
• 4:47
  think
• 4:47
  kind
• 4:48
  of
• 4:48
  both
• 4:48
  are
• 4:49
  wrong.
• 4:49
  Absolutely.
• 4:50
  And
• 4:51
  the
• 4:51
  fundamentals
• 4:52
  still
• 4:52
  exist,
• 4:52
  but
• 4:52
  you
• 4:53
  have
• 4:53
  to
• 4:53
  be
• 4:53
  deliberate.
• 4:54
  And
• 4:55
  again,
• 4:56
  I
• 4:56
  think
• 4:56
  getting
• 4:56
  good
• 4:57
  advice,
• 4:58
  understanding
• 4:58
  what
• 4:58
  you
• 4:59
  are
• 4:59
  trying
• 4:59
  to
• 4:59
  achieve,
• 5:00
  that
• 5:00
  is
• 5:01
  it's
• 5:01
  just
• 5:01
  critical
• 5:02
  in
• 5:02
  terms
• 5:02
  of
• 5:03
  any
• 5:03
  strategy.
• 5:05
  Okay,
• 5:05
  so
• 5:05
  if
• 5:06
  you
• 5:06
  were
• 5:06
  talking
• 5:06
  to
• 5:06
  someone
• 5:07
  who
• 5:07
  is
• 5:07
  looking
• 5:08
  at
• 5:08
  this
• 5:08
  and
• 5:08
  they
• 5:08
  are
• 5:08
  thinking
• 5:09
  maybe
• 5:09
  property,
• 5:10
  what
• 5:10
  would
• 5:11
  be
• 5:11
  the
• 5:11
  strategy
• 5:12
  now
• 5:13
  and
• 5:13
  how
• 5:14
  would
• 5:14
  you
• 5:14
  help
• 5:14
  them
• 5:15
  sort
• 5:15
  of
• 5:15
  lay
• 5:15
  out
• 5:15
  some
• 5:15
  of
• 5:16
  that
• 5:16
  groundwork?
• 5:16
  Yeah.
• 5:17
  So
• 5:17
  you're
• 5:17
  asking
• 5:17
  yourselves
• 5:18
  really
• 5:19
  clear
• 5:19
  questions.
• 5:20
  So
• 5:20
  what
• 5:21
  am
• 5:21
  I
• 5:21
  trying
• 5:22
  to
• 5:22
  achieve
• 5:23
  from
• 5:23
  a
• 5:23
  numeric
• 5:24
  perspective
• 5:25
  and
• 5:25
  what
• 5:25
  is
• 5:25
  my
• 5:26
  timeline
• 5:26
  to
• 5:27
  achieve
• 5:27
  it?
• 5:28
  When
• 5:29
  you
• 5:29
  look
• 5:29
  at
• 5:29
  a
• 5:29
  particular
• 5:30
  property,
• 5:31
  you're
• 5:31
  understanding,
• 5:32
  well,
• 5:32
  what
• 5:32
  is
• 5:32
  the
• 5:32
  cash
• 5:33
  flow
• 5:33
  associated
• 5:34
  with
• 5:34
  that
• 5:35
  property?
• 5:36
  So
• 5:36
  if
• 5:36
  you're
• 5:36
  renting
• 5:37
  it
• 5:37
  out,
• 5:37
  what
• 5:37
  is
• 5:37
  the
• 5:37
  rent
• 5:38
  versus
• 5:38
  what
• 5:38
  it's
• 5:39
  going
• 5:39
  to
• 5:39
  cost
• 5:39
  you
• 5:39
  in
• 5:40
  terms
• 5:40
  of
• 5:40
  mortgage
• 5:41
  rate,
• 5:42
  et
• 5:42
  cetera,
• 5:42
  and
• 5:42
  you're
• 5:43
  building
• 5:43
  in
• 5:43
  contingencies,
• 5:44
  you
• 5:44
  need
• 5:44
  to
• 5:45
  ensure
• 5:45
  that
• 5:45
  you
• 5:45
  have
• 5:45
  a
• 5:46
  buffer.
• 5:46
  And
• 5:46
  then
• 5:47
  you're
• 5:47
  trying
• 5:47
  to
• 5:47
  understand,
• 5:47
  well,
• 5:48
  what
• 5:48
  is
• 5:48
  the
• 5:48
  capital
• 5:49
  gain
• 5:49
  prospects
• 5:50
  associated
• 5:51
  with
• 5:51
  this
• 5:52
  property
• 5:53
  in
• 5:53
  terms
• 5:53
  of
• 5:54
  future
• 5:54
  growth.
• 5:55
  That
• 5:55
  is
• 5:55
  really
• 5:56
  critical
• 5:57
  in
• 5:57
  terms
• 5:57
  of
• 5:58
  buying
• 5:59
  the
• 5:59
  right
• 5:59
  property
• 6:00
  for
• 6:00
  you
• 6:00
  and
• 6:01
  the
• 6:01
  right
• 6:01
  property
• 6:01
  for
• 6:02
  me.
• 6:02
  And
• 6:02
  you
• 6:02
  could
• 6:02
  be
• 6:03
  entirely
• 6:03
  different
• 6:04
  in
• 6:04
  terms
• 6:04
  of
• 6:04
  our
• 6:05
  goals
• 6:05
  and
• 6:05
  our
• 6:05
  cash
• 6:06
  flow.
• 6:07
  So
• 6:07
  you've
• 6:08
  really
• 6:08
  got
• 6:08
  to,
• 6:08
  first
• 6:08
  of
• 6:08
  all,
• 6:09
  sit
• 6:09
  down
• 6:09
  and
• 6:09
  do
• 6:09
  the
• 6:09
  hard
• 6:09
  work
• 6:09
  of
• 6:10
  yourself
• 6:11
  what
• 6:11
  you
• 6:11
  want.
• 6:11
  Exactly
• 6:12
  right.
• 6:12
  Like
• 6:12
  anything.
• 6:13
  Okay.
• 6:13
  If
• 6:14
  you
• 6:14
  were
• 6:14
  talking
• 6:14
  to
• 6:14
  a
• 6:14
  client,
• 6:15
  how
• 6:15
  would
• 6:15
  you
• 6:15
  help
• 6:16
  them
• 6:16
  start
• 6:16
  that
• 6:17
  conversation
• 6:18
  with
• 6:18
  themselves
• 6:18
  as
• 6:18
  well?
• 6:19
  First,
• 6:20
  it
• 6:20
  is
• 6:21
  understanding,
• 6:22
  do
• 6:22
  I
• 6:22
  have
• 6:23
  a
• 6:23
  long
• 6:23
  time?
• 6:24
  So
• 6:24
  I
• 6:25
  always
• 6:25
  say
• 6:25
  you
• 6:26
  buy
• 6:26
  a
• 6:26
  property
• 6:26
  and
• 6:26
  have
• 6:27
  the
• 6:27
  ability
• 6:27
  to
• 6:27
  hold
• 6:28
  it
• 6:28
  through
• 6:28
  at
• 6:28
  least
• 6:28
  a
• 6:29
  cycle,
• 6:30
  generally
• 6:30
  speaking,
• 6:31
  10
• 6:31
  years.
• 6:31
  So
• 6:32
  that's
• 6:32
  the
• 6:32
  time
• 6:32
  frame
• 6:33
  we're
• 6:33
  looking
• 6:33
  at.
• 6:34
  And
• 6:34
  what
• 6:34
  does
• 6:35
  that
• 6:35
  property
• 6:35
  need
• 6:35
  to
• 6:36
  do
• 6:36
  for
• 6:36
  me?
• 6:36
  So
• 6:37
  if
• 6:37
  it's
• 6:37
  an
• 6:37
  investment
• 6:38
  property,
• 6:38
  maybe
• 6:39
  we've
• 6:39
  figured
• 6:39
  out
• 6:40
  that
• 6:40
  we
• 6:40
  have
• 6:41
  a
• 6:41
  gap
• 6:42
  in
• 6:42
  terms
• 6:42
  of
• 6:42
  what
• 6:43
  we
• 6:43
  need
• 6:43
  to
• 6:43
  achieve
• 6:43
  around
• 6:44
  retirement,
• 6:45
  maybe
• 6:45
  that's
• 6:46
  400,000.
• 6:47
  So
• 6:48
  we
• 6:48
  need
• 6:48
  to
• 6:48
  kind
• 6:48
  of
• 6:49
  crunch
• 6:49
  the
• 6:49
  numbers
• 6:50
  to
• 6:50
  understand,
• 6:51
  being
• 6:52
  conservative,
• 6:53
  based
• 6:54
  on
• 6:54
  what's
• 6:54
  happened
• 6:54
  in
• 6:55
  the
• 6:55
  past,
• 6:55
  can
• 6:55
  we
• 6:55
  project
• 6:56
  what's
• 6:56
  going
• 6:56
  to
• 6:56
  happen
• 6:57
  in
• 6:57
  the
• 6:57
  future
• 6:57
  and
• 6:58
  will
• 6:58
  that
• 6:58
  property
• 6:59
  tick
• 6:59
  the
• 7:00
  box
• 7:00
  and
• 7:01
  do
• 7:01
  we
• 7:01
  have
• 7:01
  the
• 7:02
  capacity
• 7:02
  from
• 7:03
  a
• 7:03
  cash
• 7:03
  flow
• 7:03
  perspective
• 7:04
  to
• 7:04
  top
• 7:05
  up
• 7:05
  potentially
• 7:06
  that
• 7:06
  property
• 7:07
  at
• 7:07
  the
• 7:08
  moment,
• 7:08
  in
• 7:08
  terms
• 7:08
  of
• 7:08
  where
• 7:09
  interest
• 7:09
  rates
• 7:09
  are,
• 7:10
  to
• 7:10
  have
• 7:10
  the
• 7:10
  ability
• 7:11
  to
• 7:11
  hold
• 7:11
  it?
• 7:12
  So
• 7:12
  those
• 7:12
  are
• 7:12
  the
• 7:12
  things
• 7:12
  that
• 7:13
  we're
• 7:13
  looking
• 7:13
  at.
• 7:15
  Not
• 7:15
  so
• 7:15
  fun
• 7:15
  fact.
• 7:16
  When
• 7:16
  you
• 7:16
  take
• 7:17
  on
• 7:17
  a
• 7:17
  30
• 7:17
  year
• 7:18
  mortgage,
• 7:18
  you'll
• 7:19
  probably
• 7:19
  pay
• 7:20
  more
• 7:20
  than
• 7:20
  double
• 7:21
  what
• 7:21
  you
• 7:21
  originally
• 7:21
  borrowed
• 7:22
  because
• 7:23
  of
• 7:23
  the
• 7:23
  cost
• 7:23
  of
• 7:23
  interest.
• 7:24
  That's
• 7:25
  probably
• 7:26
  not
• 7:26
  the
• 7:26
  Kiwi
• 7:26
  dream
• 7:27
  you
• 7:27
  bought
• 7:27
  into
• 7:28
  the
• 7:28
  team
• 7:28
  at
• 7:29
  EnableMe.
• 7:29
  Specialise
• 7:30
  in
• 7:30
  taking
• 7:31
  charge
• 7:31
  of
• 7:31
  your
• 7:31
  money
• 7:32
  and
• 7:32
  growing
• 7:32
  your
• 7:33
  wealth,
• 7:33
  including
• 7:34
  how
• 7:34
  to
• 7:34
  get
• 7:35
  rid
• 7:35
  of
• 7:35
  your
• 7:35
  mortgage
• 7:35
  faster.
• 7:36
  Book
• 7:37
  a
• 7:37
  consultation
• 7:38
  with
• 7:38
  an
• 7:38
  Enable
• 7:38
  Me
• 7:39
  financial
• 7:39
  advisor
• 7:40
  today
• 7:40
  by
• 7:40
  visiting
• 7:41
  Enable
• 7:42
  Me.
• 7:43
  One
• 7:43
  of
• 7:43
  the
• 7:44
  other
• 7:44
  things
• 7:44
  that
• 7:45
  I
• 7:45
  picked
• 7:45
  up
• 7:45
  in
• 7:45
  this
• 7:45
  letter,
• 7:46
  I
• 7:46
  mean,
• 7:46
  short
• 7:46
  and
• 7:46
  sweet
• 7:47
  letter,
• 7:47
  but
• 7:47
  a
• 7:48
  sentence
• 7:48
  that
• 7:48
  really
• 7:49
  stuck
• 7:49
  out
• 7:49
  to
• 7:49
  me
• 7:50
  was,
• 7:51
  look
• 7:51
  at
• 7:51
  shares.
• 7:52
  In
• 7:52
  some
• 7:52
  ways
• 7:52
  it
• 7:52
  seems
• 7:53
  easier,
• 7:53
  in
• 7:53
  others
• 7:53
  it
• 7:54
  seems
• 7:54
  scarier.
• 7:55
  Yeah,
• 7:55
  so
• 7:55
  true.
• 7:56
  I've
• 7:56
  had
• 7:56
  people
• 7:57
  say
• 7:57
  it
• 7:57
  to
• 7:57
  me
• 7:57
  a
• 7:57
  lot,
• 7:58
  that
• 7:58
  they
• 7:58
  find
• 7:58
  the
• 7:59
  share
• 7:59
  market
• 7:59
  feels
• 8:00
  particularly
• 8:00
  intimidating,
• 8:01
  particularly
• 8:01
  scary.
• 8:02
  Do
• 8:02
  you
• 8:02
  think
• 8:03
  people
• 8:03
  see
• 8:03
  that?
• 8:04
  Like,
• 8:04
  do
• 8:05
  clients
• 8:05
  come
• 8:05
  in
• 8:05
  and
• 8:05
  say,
• 8:06
  I
• 8:06
  want
• 8:06
  to,
• 8:06
  but
• 8:07
  it's
• 8:07
  scary.
• 8:07
  Yeah,
• 8:08
  absolutely.
• 8:08
  Because
• 8:09
  I
• 8:09
  think
• 8:09
  a
• 8:09
  house
• 8:09
  is
• 8:10
  tangible,
• 8:11
  you
• 8:11
  can
• 8:11
  see
• 8:12
  it
• 8:12
  versus
• 8:13
  kind
• 8:13
  of
• 8:14
  shares,
• 8:14
  managed
• 8:14
  funds
• 8:15
  like
• 8:15
  our
• 8:15
  kiwisaver.
• 8:16
  You
• 8:16
  know,
• 8:17
  you're
• 8:17
  looking
• 8:17
  at
• 8:17
  a
• 8:17
  number
• 8:17
  on
• 8:18
  a
• 8:18
  screen.
• 8:18
  It's
• 8:19
  kind
• 8:19
  of
• 8:19
  bouncing
• 8:19
  around
• 8:20
  a
• 8:20
  lot
• 8:20
  potentially.
• 8:21
  And
• 8:22
  that
• 8:22
  can
• 8:22
  feel
• 8:22
  like
• 8:22
  gambling.
• 8:23
  But
• 8:24
  again,
• 8:24
  not
• 8:25
  if
• 8:25
  you
• 8:25
  do
• 8:25
  it
• 8:25
  well.
• 8:26
  But
• 8:26
  I
• 8:26
  think
• 8:26
  that
• 8:26
  kind
• 8:27
  of
• 8:27
  feeds
• 8:27
  into.
• 8:28
  It's
• 8:28
  not
• 8:28
  tangible,
• 8:29
  you
• 8:29
  can't
• 8:29
  see
• 8:30
  it.
• 8:30
  So
• 8:31
  it
• 8:31
  feels
• 8:31
  harder.
• 8:32
  Yeah.
• 8:32
  So
• 8:33
  how
• 8:33
  do
• 8:33
  you
• 8:33
  beat
• 8:34
  that
• 8:34
  sort
• 8:34
  of
• 8:35
  mental
• 8:36
  moment?
• 8:36
  Yeah.
• 8:37
  Again
• 8:37
  you
• 8:37
  go
• 8:37
  back
• 8:38
  to
• 8:38
  your
• 8:38
  plan
• 8:38
  and
• 8:39
  your
• 8:39
  goals
• 8:39
  and
• 8:39
  I
• 8:40
  think
• 8:40
  often
• 8:40
  it's
• 8:41
  just
• 8:41
  starting
• 8:42
  with
• 8:42
  something
• 8:42
  as
• 8:43
  well.
• 8:43
  Not
• 8:43
  making
• 8:43
  it
• 8:44
  too
• 8:44
  hard
• 8:45
  for
• 8:45
  my
• 8:45
  clients.
• 8:45
  We're
• 8:46
  not
• 8:46
  share
• 8:46
  picking.
• 8:47
  I
• 8:47
  think
• 8:47
  that,
• 8:48
  you
• 8:48
  know,
• 8:48
  a
• 8:48
  bit
• 8:48
  of
• 8:48
  fun
• 8:49
  certainly.
• 8:49
  But
• 8:49
  you're
• 8:49
  not
• 8:50
  going
• 8:50
  to
• 8:50
  stake
• 8:50
  your
• 8:50
  financial
• 8:51
  future
• 8:51
  on
• 8:51
  it
• 8:52
  because
• 8:52
  that's
• 8:52
  quite
• 8:53
  high
• 8:53
  risk.
• 8:53
  If
• 8:53
  you're
• 8:54
  just
• 8:54
  looking
• 8:54
  at
• 8:54
  one
• 8:55
  company
• 8:56
  that's
• 8:56
  that
• 8:57
  particular
• 8:57
  board
• 8:58
  of
• 8:58
  directors,
• 8:59
  it's
• 8:59
  in
• 8:59
  a
• 8:59
  particular
• 9:00
  country
• 9:00
  industry,
• 9:02
  again,
• 9:02
  that
• 9:03
  seems
• 9:03
  risky.
• 9:04
  So
• 9:04
  when
• 9:04
  my
• 9:04
  clients
• 9:04
  look
• 9:05
  at
• 9:05
  it,
• 9:05
  generally
• 9:05
  speaking,
• 9:06
  it's
• 9:06
  that
• 9:06
  managed
• 9:07
  fund
• 9:07
  piece.
• 9:07
  They're
• 9:08
  figuring
• 9:08
  out
• 9:09
  what
• 9:09
  can
• 9:09
  they
• 9:09
  afford
• 9:10
  to
• 9:10
  invest
• 9:11
  and
• 9:11
  then
• 9:11
  they're
• 9:12
  automating
• 9:13
  it
• 9:13
  to
• 9:13
  make
• 9:13
  it
• 9:14
  easy
• 9:14
  and
• 9:14
  removing
• 9:15
  friction.
• 9:15
  So
• 9:16
  that
• 9:16
  kind
• 9:16
  of
• 9:16
  dollar
• 9:16
  cost
• 9:17
  averaging.
• 9:17
  So
• 9:18
  you're
• 9:18
  just
• 9:18
  investing
• 9:19
  as
• 9:19
  a
• 9:19
  matter
• 9:20
  of
• 9:20
  course.
• 9:20
  And
• 9:21
  again,
• 9:21
  I
• 9:21
  think
• 9:21
  that
• 9:21
  makes
• 9:22
  it
• 9:22
  easier.
• 9:23
  And
• 9:23
  once
• 9:23
  you're
• 9:23
  doing
• 9:23
  it
• 9:24
  on
• 9:24
  a
• 9:24
  small
• 9:24
  scale,
• 9:25
  it's
• 9:25
  easier
• 9:26
  to
• 9:26
  scale
• 9:26
  up.
• 9:26
  Just
• 9:27
  like
• 9:27
  what
• 9:27
  I
• 9:27
  say
• 9:27
  all
• 9:27
  the
• 9:28
  time.
• 9:28
  You
• 9:28
  know,
• 9:28
  I
• 9:28
  started
• 9:29
  investing
• 9:29
  with
• 9:29
  $5
• 9:30
  a
• 9:30
  week
• 9:30
  and
• 9:31
  some
• 9:31
  people
• 9:31
  will
• 9:32
  message
• 9:32
  me
• 9:32
  and
• 9:32
  say,
• 9:33
  what's
• 9:33
  even
• 9:33
  the
• 9:33
  point
• 9:33
  of
• 9:33
  that?
• 9:34
  The
• 9:34
  point
• 9:34
  is
• 9:35
  that
• 9:35
  I
• 9:35
  started,
• 9:36
  you
• 9:36
  know,
• 9:36
  I
• 9:37
  invest
• 9:37
  more
• 9:37
  than
• 9:38
  that
• 9:38
  now.
• 9:39
  But
• 9:39
  I
• 9:39
  don't
• 9:39
  think
• 9:39
  I'd
• 9:40
  have
• 9:40
  ever
• 9:40
  had
• 9:40
  the
• 9:40
  confidence
• 9:41
  to
• 9:41
  invest
• 9:41
  if
• 9:42
  I
• 9:42
  hadn't
• 9:42
  started
• 9:42
  small.
• 9:43
  Yep,
• 9:43
  absolutely.
• 9:44
  And
• 9:45
  boring
• 9:45
  works
• 9:46
  and
• 9:46
  it's
• 9:47
  making
• 9:47
  it
• 9:47
  accessible
• 9:48
  in
• 9:48
  terms
• 9:48
  of
• 9:49
  smaller
• 9:49
  chunks.
• 9:50
  And
• 9:50
  then
• 9:50
  our
• 9:51
  brain
• 9:51
  just
• 9:51
  gets
• 9:51
  used
• 9:52
  to
• 9:52
  doing
• 9:52
  it.
• 9:53
  Yeah.
• 9:53
  And
• 9:54
  I
• 9:54
  think
• 9:54
  that
• 9:54
  rise
• 9:55
  of
• 9:55
  the
• 9:55
  DIY
• 9:55
  investing,
• 9:56
  I
• 9:57
  love
• 9:57
  that
• 9:58
  in
• 9:59
  terms
• 9:59
  of.
• 9:59
  It's
• 9:59
  just
• 9:59
  made
• 9:59
  it
• 9:59
  so
• 10:00
  much
• 10:00
  more
• 10:00
  accessible
• 10:00
  for
• 10:01
  people.
• 10:01
  It's
• 10:01
  so
• 10:02
  much
• 10:02
  more
• 10:02
  of
• 10:02
  a
• 10:02
  reality
• 10:03
  for
• 10:03
  people.
• 10:05
  Do
• 10:05
  you
• 10:05
  think
• 10:05
  there's
• 10:06
  a
• 10:06
  good
• 10:06
  way.
• 10:06
  To
• 10:06
  handle
• 10:07
  it
• 10:07
  in
• 10:07
  terms
• 10:07
  of
• 10:09
  give
• 10:09
  it
• 10:09
  a
• 10:09
  little
• 10:09
  flutter
• 10:10
  on
• 10:10
  your
• 10:10
  own,
• 10:11
  do
• 10:11
  it
• 10:11
  through
• 10:12
  a
• 10:12
  company,
• 10:13
  through
• 10:13
  a
• 10:13
  fund
• 10:13
  manager.
• 10:14
  Is
• 10:14
  there
• 10:15
  any
• 10:16
  tactics
• 10:17
  along
• 10:17
  that
• 10:18
  sort
• 10:18
  of
• 10:19
  scale
• 10:20
  that
• 10:20
  help
• 10:20
  make
• 10:21
  it
• 10:21
  a
• 10:21
  bit
• 10:21
  less
• 10:21
  scary?
• 10:22
  I
• 10:23
  really
• 10:23
  do
• 10:23
  advocate
• 10:24
  for
• 10:24
  my
• 10:24
  clients.
• 10:25
  It's
• 10:25
  around
• 10:25
  that
• 10:26
  manage
• 10:26
  fund
• 10:26
  piece
• 10:27
  and
• 10:27
  you're
• 10:27
  just
• 10:27
  understanding
• 10:28
  your
• 10:28
  risk
• 10:29
  in
• 10:29
  terms
• 10:30
  of
• 10:30
  when
• 10:30
  you
• 10:30
  might
• 10:30
  need
• 10:30
  to
• 10:31
  access
• 10:31
  it.
• 10:31
  That's
• 10:31
  a
• 10:32
  really.
• 10:32
  And
• 10:33
  you're
• 10:33
  doing
• 10:33
  it
• 10:33
  already,
• 10:34
  likely
• 10:34
  through
• 10:34
  kiwisaver.
• 10:35
  That's
• 10:36
  a
• 10:36
  good
• 10:36
  reminder
• 10:37
  you're
• 10:37
  already
• 10:37
  investing.
• 10:38
  And
• 10:39
  again,
• 10:39
  that
• 10:40
  manage
• 10:40
  fund
• 10:41
  element
• 10:41
  is
• 10:41
  great.
• 10:42
  It
• 10:42
  is
• 10:43
  liquid.
• 10:44
  It's
• 10:44
  just
• 10:44
  how
• 10:45
  much
• 10:45
  risk
• 10:45
  can
• 10:46
  I
• 10:46
  afford
• 10:46
  to
• 10:47
  take
• 10:47
  that
• 10:47
  will
• 10:47
  dictate
• 10:48
  what
• 10:48
  fund
• 10:48
  type
• 10:49
  you
• 10:49
  lean
• 10:49
  into.
• 10:50
  And
• 10:50
  again,
• 10:50
  just
• 10:50
  start,
• 10:51
  just
• 10:52
  start
• 10:52
  with
• 10:52
  anything.
• 10:54
  It
• 10:54
  doesn't
• 10:54
  have
• 10:54
  to
• 10:54
  be
• 10:54
  perfect.
• 10:55
  It
• 10:55
  doesn't.
• 10:55
  Because
• 10:55
  you
• 10:56
  learn
• 10:56
  as
• 10:56
  well.
• 10:57
  And
• 10:57
  again,
• 10:57
  if
• 10:57
  you
• 10:58
  start
• 10:58
  micro,
• 10:59
  you
• 10:59
  can
• 10:59
  course
• 10:59
  correct
• 11:00
  as
• 11:00
  well
• 11:00
  and
• 11:00
  you're
• 11:01
  figuring
• 11:01
  out
• 11:01
  what's
• 11:01
  comfortable
• 11:02
  to
• 11:02
  you,
• 11:03
  you.
• 11:03
  Can
• 11:04
  change
• 11:04
  as
• 11:04
  you
• 11:04
  go
• 11:05
  exactly
• 11:05
  what
• 11:05
  you're
• 11:06
  saying
• 11:06
  you
• 11:06
  can
• 11:06
  course
• 11:06
  correct.
• 11:07
  For
• 11:07
  some
• 11:07
  reason
• 11:08
  we
• 11:09
  expect
• 11:09
  ourselves
• 11:10
  to
• 11:10
  start
• 11:10
  off
• 11:10
  perfect
• 11:11
  with
• 11:11
  money
• 11:11
  and
• 11:11
  keep
• 11:11
  doing
• 11:12
  it.
• 11:12
  I
• 11:12
  mean,
• 11:12
  did
• 11:13
  any
• 11:13
  of
• 11:13
  us
• 11:13
  start
• 11:13
  cooking
• 11:14
  intense
• 11:15
  five
• 11:16
  course
• 11:16
  meals
• 11:16
  for
• 11:17
  dinner
• 11:17
  every
• 11:17
  night?
• 11:17
  No.
• 11:18
  We
• 11:18
  probably
• 11:18
  started
• 11:18
  when
• 11:18
  we
• 11:19
  were
• 11:19
  teenagers
• 11:19
  making
• 11:19
  beans
• 11:20
  on
• 11:20
  toast.
• 11:20
  You
• 11:21
  know,
• 11:21
  let
• 11:21
  yourself
• 11:22
  do
• 11:22
  the
• 11:22
  same
• 11:22
  with
• 11:22
  your
• 11:23
  money.
• 11:23
  Right.
• 11:24
  I
• 11:24
  think
• 11:24
  you
• 11:24
  do
• 11:25
  have
• 11:25
  to
• 11:25
  counter
• 11:25
  yourself
• 11:26
  a
• 11:26
  little
• 11:26
  bit
• 11:27
  though
• 11:27
  because
• 11:28
  if
• 11:28
  you
• 11:28
  are
• 11:29
  for
• 11:29
  example,
• 11:30
  investing
• 11:30
  in
• 11:31
  a
• 11:31
  growth
• 11:32
  managed
• 11:32
  fund
• 11:32
  for
• 11:32
  the
• 11:33
  long
• 11:33
  term
• 11:34
  and
• 11:34
  the
• 11:34
  market
• 11:35
  drops,
• 11:36
  you
• 11:36
  really
• 11:37
  do
• 11:37
  need
• 11:37
  to
• 11:37
  keep
• 11:38
  telling
• 11:38
  yourself
• 11:38
  if
• 11:39
  you
• 11:39
  do
• 11:39
  not
• 11:39
  need
• 11:39
  that
• 11:40
  money
• 11:40
  now,
• 11:41
  you
• 11:41
  shouldn't
• 11:41
  crystallize
• 11:42
  a
• 11:42
  loss
• 11:43
  because
• 11:43
  the
• 11:43
  share
• 11:44
  market
• 11:44
  will
• 11:44
  dip.
• 11:45
  We
• 11:45
  know
• 11:45
  that's
• 11:46
  true.
• 11:46
  Property
• 11:47
  market
• 11:47
  will
• 11:47
  dip.
• 11:48
  It's
• 11:48
  just
• 11:49
  having
• 11:49
  the
• 11:50
  ability
• 11:50
  to
• 11:50
  hold
• 11:50
  your
• 11:51
  line
• 11:51
  because
• 11:51
  we
• 11:52
  know
• 11:52
  in
• 11:52
  time
• 11:52
  it
• 11:53
  will
• 11:53
  course
• 11:53
  correct.
• 11:54
  So
• 11:54
  again,
• 11:54
  you're
• 11:55
  trying
• 11:55
  to
• 11:55
  counter
• 11:55
  yourself
• 11:56
  more
• 11:56
  than
• 11:57
  anything
• 11:57
  else
• 11:57
  in
• 11:58
  this
• 11:58
  process.
• 11:59
  Yeah.
• 11:59
  Have
• 12:00
  plan,
• 12:00
  don't
• 12:01
  rely
• 12:01
  on
• 12:01
  blue
• 12:01
  sky
• 12:02
  thinking
• 12:02
  of
• 12:02
  this.
• 12:02
  Obviously
• 12:03
  we
• 12:03
  want
• 12:03
  to
• 12:03
  be
• 12:04
  doing
• 12:04
  this
• 12:04
  to
• 12:04
  make
• 12:04
  our
• 12:05
  money
• 12:05
  better.
• 12:06
  But
• 12:06
  plan
• 12:07
  for
• 12:07
  things
• 12:07
  to
• 12:07
  go
• 12:07
  wrong
• 12:08
  and
• 12:08
  have
• 12:08
  that
• 12:08
  as
• 12:08
  part
• 12:09
  of
• 12:09
  the
• 12:09
  plan
• 12:09
  from
• 12:10
  the
• 12:10
  get
• 12:10
  go.
• 12:10
  Right.
• 12:11
  And
• 12:11
  then
• 12:11
  you'll
• 12:11
  be
• 12:11
  fine.
• 12:12
  Yeah.
• 12:12
  And
• 12:12
  in
• 12:12
  the
• 12:12
  same
• 12:13
  breath,
• 12:13
  if
• 12:13
  you're
• 12:14
  investing
• 12:14
  your
• 12:14
  funds
• 12:15
  because
• 12:16
  you
• 12:17
  want
• 12:17
  to
• 12:17
  earn
• 12:17
  a
• 12:17
  better
• 12:18
  return
• 12:18
  than
• 12:18
  the
• 12:18
  bank
• 12:19
  and
• 12:19
  you're
• 12:19
  going
• 12:19
  to
• 12:19
  buy
• 12:19
  a
• 12:19
  house
• 12:20
  in
• 12:20
  12
• 12:20
  months
• 12:20
  time,
• 12:21
  be
• 12:22
  very
• 12:22
  cognizant
• 12:23
  of
• 12:23
  that
• 12:23
  in
• 12:24
  terms
• 12:24
  of
• 12:24
  the
• 12:24
  risk
• 12:25
  that
• 12:25
  you
• 12:25
  take
• 12:26
  because
• 12:26
  that
• 12:26
  is
• 12:26
  effectively
• 12:27
  the
• 12:27
  volatility
• 12:28
  that's
• 12:28
  going
• 12:28
  to
• 12:28
  be
• 12:28
  attached
• 12:29
  to
• 12:30
  that
• 12:30
  particular
• 12:30
  investment.
• 12:31
  So
• 12:31
  again,
• 12:31
  get
• 12:32
  that
• 12:32
  right
• 12:32
  at
• 12:32
  the
• 12:32
  start
• 12:33
  and
• 12:33
  it's
• 12:33
  easier
• 12:34
  to
• 12:34
  kind
• 12:34
  of
• 12:34
  hold
• 12:35
  that
• 12:35
  line
• 12:35
  into
• 12:35
  the
• 12:36
  future
• 12:36
  to
• 12:36
  get
• 12:36
  the
• 12:36
  gain
• 12:37
  that
• 12:37
  you
• 12:37
  want.
• 12:38
  Okay,
• 12:38
  if
• 12:39
  this
• 12:39
  client
• 12:40
  walked
• 12:40
  into
• 12:40
  your
• 12:40
  office
• 12:41
  and
• 12:41
  they
• 12:42
  say
• 12:42
  dealing
• 12:43
  with
• 12:43
  some
• 12:43
  analysis
• 12:44
  paralysis
• 12:44
  here,
• 12:44
  my
• 12:45
  parents
• 12:45
  say
• 12:45
  this,
• 12:45
  my
• 12:46
  friends
• 12:46
  say
• 12:46
  this.
• 12:47
  I
• 12:47
  don't
• 12:47
  know,
• 12:48
  property
• 12:48
  shares,
• 12:48
  what
• 12:49
  do
• 12:49
  I
• 12:49
  do?
• 12:49
  Where
• 12:50
  would
• 12:50
  you
• 12:50
  start
• 12:50
  with
• 12:50
  them?
• 12:51
  Yeah.
• 12:51
  So
• 12:51
  again
• 12:52
  we
• 12:52
  just
• 12:52
  go
• 12:52
  back
• 12:52
  to
• 12:52
  cash
• 12:53
  flow,
• 12:53
  what
• 12:54
  cash
• 12:54
  in,
• 12:54
  cash
• 12:54
  out,
• 12:55
  what's
• 12:55
  left
• 12:55
  over
• 12:56
  Then
• 12:56
  understand
• 12:57
  the
• 12:57
  goals
• 12:58
  non
• 12:58
  negotiable
• 12:59
  if
• 12:59
  they're
• 12:59
  employed
• 13:00
  and
• 13:00
  they
• 13:00
  get
• 13:00
  a
• 13:00
  contribution
• 13:01
  from
• 13:01
  their
• 13:01
  employer.
• 13:02
  We're
• 13:02
  investing
• 13:03
  in
• 13:03
  Kiwisaver
• 13:04
  to
• 13:05
  maximise
• 13:05
  that
• 13:05
  employer
• 13:06
  contribution.
• 13:07
  We
• 13:07
  would
• 13:07
  also
• 13:08
  potentially
• 13:09
  even.
• 13:10
  And
• 13:10
  I
• 13:10
  know
• 13:10
  this
• 13:10
  is
• 13:10
  not
• 13:11
  part
• 13:11
  of
• 13:11
  the
• 13:11
  question,
• 13:11
  but
• 13:12
  it's
• 13:12
  definitely
• 13:12
  part
• 13:12
  of
• 13:12
  the
• 13:13
  equation.
• 13:14
  Look
• 13:14
  at
• 13:14
  ensuring
• 13:15
  that
• 13:15
  she's
• 13:15
  adequately
• 13:16
  protected
• 13:17
  her
• 13:17
  income
• 13:17
  thereafter,
• 13:18
  because
• 13:19
  again,
• 13:19
  that
• 13:19
  helps
• 13:19
  steady
• 13:20
  the
• 13:20
  ship
• 13:20
  in
• 13:21
  terms
• 13:21
  of
• 13:21
  strategy.
• 13:22
  And
• 13:24
  if
• 13:24
  she
• 13:24
  has
• 13:24
  the
• 13:25
  capacity
• 13:25
  to
• 13:25
  leverage,
• 13:26
  I
• 13:26
  would
• 13:26
  say,
• 13:27
  well,
• 13:27
  let's
• 13:27
  buy
• 13:27
  a
• 13:28
  property,
• 13:28
  whether
• 13:29
  it's
• 13:29
  a
• 13:29
  home,
• 13:30
  if
• 13:30
  it's
• 13:30
  an
• 13:30
  investment,
• 13:31
  we
• 13:31
  figure
• 13:32
  that
• 13:32
  out
• 13:32
  in
• 13:32
  accordance
• 13:33
  to
• 13:33
  her
• 13:33
  goals
• 13:33
  and
• 13:34
  capacity,
• 13:35
  have
• 13:35
  a
• 13:35
  great
• 13:35
  strategy
• 13:36
  to
• 13:36
  pay
• 13:36
  off
• 13:37
  that
• 13:37
  mortgage,
• 13:38
  and
• 13:38
  then
• 13:38
  again,
• 13:38
  when
• 13:38
  the
• 13:39
  mortgage
• 13:39
  is
• 13:39
  down
• 13:39
  to
• 13:39
  a
• 13:40
  point,
• 13:40
  we
• 13:40
  buy
• 13:40
  another
• 13:40
  property
• 13:41
  and
• 13:41
  then
• 13:42
  we're
• 13:42
  looking
• 13:42
  to
• 13:42
  invest
• 13:43
  in
• 13:43
  shares
• 13:44
  to
• 13:44
  add
• 13:44
  that
• 13:44
  liquidity
• 13:45
  piece
• 13:45
  in
• 13:45
  managed
• 13:46
  funds.
• 13:46
  When
• 13:47
  you
• 13:47
  look
• 13:47
  at
• 13:47
  your
• 13:47
  sort
• 13:47
  of
• 13:47
  client
• 13:48
  roster
• 13:48
  overall,
• 13:49
  do
• 13:49
  you
• 13:50
  have
• 13:50
  a
• 13:50
  way
• 13:50
  that
• 13:50
  people
• 13:50
  tend
• 13:51
  to
• 13:51
  go.
• 13:51
  When
• 13:52
  people
• 13:52
  are
• 13:53
  younger
• 13:54
  and
• 13:54
  have
• 13:54
  capacity
• 13:56
  to
• 13:56
  borrow
• 13:56
  money
• 13:57
  and
• 13:57
  they're
• 13:57
  trying
• 13:57
  to
• 13:58
  grow
• 13:58
  wealth
• 13:59
  and
• 13:59
  close
• 14:00
  a
• 14:00
  gap?
• 14:00
  Generally
• 14:01
  speaking,
• 14:01
  we
• 14:02
  more
• 14:02
  lean
• 14:02
  into
• 14:02
  property
• 14:03
  as
• 14:04
  people
• 14:04
  get
• 14:04
  older
• 14:05
  and
• 14:05
  closer
• 14:05
  to
• 14:06
  retirement,
• 14:06
  we're
• 14:07
  trying
• 14:07
  to
• 14:07
  introduce
• 14:07
  that
• 14:08
  layer
• 14:08
  of
• 14:08
  diversification
• 14:09
  and
• 14:10
  liquidity
• 14:11
  because,
• 14:11
  to
• 14:12
  be
• 14:12
  very
• 14:12
  clear,
• 14:12
  you
• 14:13
  do
• 14:13
  not
• 14:13
  have
• 14:13
  an
• 14:13
  infinite
• 14:15
  time
• 14:15
  to
• 14:16
  invest
• 14:16
  in
• 14:16
  property
• 14:17
  because
• 14:17
  the
• 14:18
  bank
• 14:18
  just
• 14:18
  won't
• 14:18
  lend
• 14:19
  you
• 14:19
  money.
• 14:20
  As
• 14:20
  you
• 14:20
  get
• 14:20
  older
• 14:21
  and
• 14:21
  closer
• 14:21
  to
• 14:21
  retirement,
• 14:22
  that
• 14:22
  becomes
• 14:23
  more
• 14:23
  challenging.
• 14:24
  You
• 14:24
  lean
• 14:25
  where
• 14:25
  you
• 14:26
  have
• 14:26
  opportunities
• 14:27
  and
• 14:27
  abilities
• 14:28
  and
• 14:28
  that's
• 14:29
  anchored
• 14:29
  to
• 14:29
  what
• 14:29
  you're
• 14:29
  trying
• 14:30
  to
• 14:30
  achieve.
• 14:30
  Generally
• 14:31
  speaking,
• 14:32
  that's
• 14:32
  super
• 14:32
  interesting,
• 14:33
  the
• 14:33
  way
• 14:33
  you've
• 14:33
  linked
• 14:34
  that
• 14:34
  to
• 14:34
  age.
• 14:35
  It
• 14:35
  makes
• 14:35
  so
• 14:35
  much
• 14:36
  sense.
• 14:36
  We
• 14:37
  think
• 14:37
  that
• 14:37
  we
• 14:38
  have
• 14:38
  this
• 14:39
  infinite
• 14:40
  ability
• 14:40
  to
• 14:41
  do
• 14:41
  everything
• 14:42
  and
• 14:42
  we
• 14:43
  just
• 14:43
  don't.
• 14:43
  So
• 14:44
  I
• 14:44
  think
• 14:44
  acknowledging
• 14:45
  that
• 14:45
  that's
• 14:45
  important.
• 14:46
  And
• 14:46
  again,
• 14:46
  that
• 14:47
  capacity
• 14:47
  thing
• 14:48
  comes
• 14:48
  and
• 14:48
  goes
• 14:49
  in
• 14:49
  terms
• 14:50
  of
• 14:51
  you
• 14:51
  might
• 14:52
  be
• 14:52
  out
• 14:52
  of
• 14:52
  a
• 14:52
  job
• 14:53
  for
• 14:53
  a
• 14:53
  point
• 14:53
  in
• 14:54
  time,
• 14:54
  you
• 14:54
  might
• 14:54
  get
• 14:55
  sick.
• 14:55
  I've
• 14:56
  had
• 14:56
  beautiful
• 14:56
  clients
• 14:57
  who
• 14:58
  have
• 14:58
  invested
• 14:59
  in
• 14:59
  property
• 15:00
  and
• 15:00
  two
• 15:00
  years
• 15:00
  later
• 15:01
  there's
• 15:01
  a
• 15:01
  cancer
• 15:02
  diagnosis
• 15:03
  and
• 15:03
  again,
• 15:03
  that
• 15:04
  window
• 15:04
  just
• 15:04
  shuts.
• 15:05
  And
• 15:05
  if
• 15:05
  you
• 15:05
  do
• 15:06
  it
• 15:06
  well,
• 15:06
  you've
• 15:07
  just
• 15:07
  got
• 15:07
  another
• 15:07
  asset
• 15:08
  bubbling
• 15:08
  away
• 15:08
  in
• 15:09
  the
• 15:09
  background
• 15:09
  that's
• 15:10
  going
• 15:10
  to
• 15:10
  serve
• 15:10
  you
• 15:10
  into
• 15:11
  the
• 15:11
  future.
• 15:12
  Yeah,
• 15:12
  yeah,
• 15:13
  there
• 15:13
  we
• 15:13
  go.
• 15:13
  Life
• 15:13
  happens
• 15:14
  and
• 15:14
  you
• 15:14
  got
• 15:14
  a
• 15:14
  plan
• 15:14
  for
• 15:15
  it.
• 15:15
  It
• 15:15
  does.
• 15:15
  And
• 15:16
  again,
• 15:16
  if
• 15:17
  you
• 15:17
  do
• 15:17
  this
• 15:17
  sensibly,
• 15:18
  you're
• 15:18
  understanding
• 15:19
  how
• 15:19
  that
• 15:20
  asset
• 15:20
  might
• 15:20
  serve
• 15:21
  you.
• 15:21
  You're
• 15:21
  having
• 15:22
  a
• 15:22
  buffer
• 15:23
  and
• 15:23
  you.
• 15:23
  It's
• 15:24
  not
• 15:24
  a
• 15:24
  drain
• 15:24
  or
• 15:24
  it
• 15:25
  shouldn't
• 15:25
  be
• 15:25
  a
• 15:25
  drain.
• 15:26
  Where
• 15:26
  things
• 15:26
  go
• 15:27
  wrong
• 15:27
  is,
• 15:27
  oh,
• 15:28
  I'll
• 15:28
  just
• 15:28
  buy
• 15:28
  any
• 15:29
  old
• 15:29
  thing.
• 15:30
  And
• 15:31
  over
• 15:31
  leveraging,
• 15:32
  that's
• 15:32
  where
• 15:32
  you
• 15:32
  can
• 15:33
  get
• 15:33
  hurt.
• 15:33
  Because
• 15:33
  again,
• 15:34
  there's
• 15:34
  no
• 15:34
  strategy
• 15:35
  around
• 15:35
  that.
• 15:36
  Really
• 15:36
  smart
• 15:37
  as
• 15:37
  always,
• 15:37
  Katie
• 15:38
  Wesley.
• 15:38
  Thank
• 15:39
  you
• 15:39
  so
• 15:39
  much
• 15:39
  from
• 15:39
  Enable
• 15:40
  Me,
• 15:40
  financial
• 15:41
  advisor
• 15:41
  extraordinaire.
• 15:42
  Thank
• 15:42
  you
• 15:42
  so
• 15:43
  much.
• 15:43
  Now,
• 15:43
  if
• 15:43
  you
• 15:44
  have
• 15:44
  a
• 15:44
  question
• 15:44
  that
• 15:45
  you
• 15:45
  would
• 15:45
  like
• 15:45
  us
• 15:45
  to
• 15:45
  answer,
• 15:46
  send
• 15:46
  it
• 15:47
  through.
• 15:47
  Let's
• 15:47
  dissect
• 15:48
  it
• 15:48
  for
• 15:48
  you.
• 15:49
  AskRanciscook
• 15:51
  Co
• 15:51
  NZ.
• 15:52
  That's
• 15:52
  the
• 15:52
  email
• 15:52
  to
• 15:52
  send
• 15:53
  it
• 15:53
  through.
• 15:53
  Until
• 15:54
  next
• 15:54
  time.
• 15:54
  Have
• 15:55
  a
• 15:55
  great
• 15:55
  day.
• 15:57
  This
• 15:57
  podcast
• 15:58
  can
• 15:58
  only
• 15:58
  give
• 15:58
  you
• 15:59
  general
• 15:59
  information
• 15:59
  about
• 16:00
  how
• 16:00
  things
• 16:00
  work
• 16:01
  in
• 16:01
  most
• 16:01
  situations.
• 16:02
  It's
• 16:03
  not
• 16:03
  individual
• 16:03
  financial
• 16:04
  advice.
• 16:05
  If
• 16:05
  you're
• 16:05
  after
• 16:05
  that,
• 16:06
  a
• 16:06
  financial
• 16:06
  advisor
• 16:07
  is
• 16:07
  always
• 16:07
  the
• 16:08
  best
• 16:08
  bet.