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Why This Year’s Hottest Gift Is Investing · She's On The Money

• 0:00
  Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
• 0:04
  Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
• 0:08
  Speaker 1: we get started on She's on the Money podcast, I
• 0:11
  Speaker 1: would like to acknowledge the traditional custodians of the land
• 0:14
  Speaker 1: of which this podcast is recorded on a wondery country,
• 0:18
  Speaker 1: acknowledging the elders, the ancestors and the next generation coming
• 0:22
  Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
• 0:27
  Speaker 1: and the storytelling of you to make a difference for
• 0:30
  Speaker 1: today and lasting impactful tomorrow.
• 0:33
  Speaker 2: Let's get into it.
• 0:34
  Speaker 3: She's on the Money, She's on the Money.
• 0:53
  Speaker 2: Hello, and welcome to She's on the Money the podcast.
• 0:55
  Speaker 2: It's all about giving gifts that are thoughtful, meaningful and
• 0:58
  Speaker 2: maybe even finance empowering. Are you overgiving the same old
• 1:02
  Speaker 2: gifts every year? Let's be real, how many candles and
• 1:05
  Speaker 2: bath bombs can one person actually use?
• 1:07
  Speaker 4: Many?
• 1:09
  Speaker 2: Like, probably go twelve a day?
• 1:11
  Speaker 4: You know what, I have a bath maybe every couple
• 1:13
  Speaker 4: of days. There's nothing like it, nothing, but I love
• 1:17
  Speaker 4: a bath. I love a bath bomb. I don't love
• 1:19
  Speaker 4: the bath bombs that change your skin color though, you
• 1:22
  Speaker 4: know how sometimes you get in and then you get
• 1:24
  Speaker 4: out with like a shiny pink ting Like that's not
• 1:27
  Speaker 4: for me. So if you're going to give bath bombs,
• 1:29
  Speaker 4: be really thoughtful about the ones you give. Absolutely, or
• 1:31
  Speaker 4: you could just give them money.
• 1:33
  Speaker 2: This year, what if you could give something that actually grows?
• 1:35
  Speaker 2: And I don't mean like houseplant or like houseplants though,
• 1:39
  Speaker 2: this is the thing, just in case people are stening
• 1:40
  Speaker 2: they don't know who I am. I'm excited and today
• 1:42
  Speaker 2: we're not just talking about holiday presents. We're talking about
• 1:44
  Speaker 2: gifts that can actually build a future. Enjoining me as
• 1:47
  Speaker 2: always is Victoria Divide, whose love language is a perfect
• 1:51
  Speaker 2: mix of financial literacy, which I know is not a
• 1:53
  Speaker 2: love language any thoughtful gift giving.
• 1:56
  Speaker 4: I feel like financial literacy is a love language. I
• 1:58
  Speaker 4: think it should be.
• 1:59
  Speaker 2: Let's make it because like the love languages were made
• 2:01
  Speaker 2: by some dude.
• 2:02
  Speaker 4: Yeah, like we're updating them love language find.
• 2:06
  Speaker 2: Financial literacy, yeah, refe.
• 2:08
  Speaker 4: I also do definitely have the love language of gift giving,
• 2:11
  Speaker 4: Like I love giving, do you do? I have a
• 2:14
  Speaker 4: creepy list on my phone of just like ideas for
• 2:17
  Speaker 4: presents for people that sometimes I put down and I'm like,
• 2:20
  Speaker 4: I would never buy that person a present, but I
• 2:22
  Speaker 4: need to put it on the list because that would
• 2:23
  Speaker 4: be really thoughtful.
• 2:24
  Speaker 2: That's I need too.
• 2:26
  Speaker 4: But I guess today is not about house plants, it's
• 2:30
  Speaker 4: not about bath bombs. We're actually going to be rethinking
• 2:33
  Speaker 4: the idea of the gift that keeps on giving. Okay,
• 2:36
  Speaker 4: so what if beck instead of a present that gets
• 2:39
  Speaker 4: tossed decided by the time New Year's rolls around, we
• 2:41
  Speaker 4: could actually give people something that builds wealth over time.
• 2:44
  Speaker 4: And obviously I'm talking about investing.
• 2:47
  Speaker 2: Honestly, I know that there are probably people listening, and
• 2:50
  Speaker 2: I'm not gonna lie this is me, but investing as
• 2:52
  Speaker 2: a gift kind of sounds too serious or complicated. But also,
• 2:56
  Speaker 2: you know when someone's like, I've given you a present,
• 2:57
  Speaker 2: it's a donation to your favorite charity, Like, oh, that's
• 3:00
  Speaker 2: actually really nice, but I wanted a box of chocolates.
• 3:03
  Speaker 4: Actually, so when I bought everyone in the team last
• 3:06
  Speaker 4: year a goat from Oxfam, you were like, that's cool,
• 3:09
  Speaker 4: but I wanted the money I wanted. Sorry, sorry, I
• 3:12
  Speaker 4: got the goats from Oxfam were really cool. You're probably
• 3:15
  Speaker 4: still going to get a goat this year because it's
• 3:18
  Speaker 4: a milind to my love language, totally listen, mentally prepared.
• 3:21
  Speaker 4: But I feel like it's not that deep, right, like
• 3:24
  Speaker 4: investing men used to do it, So how hard could
• 3:27
  Speaker 4: it be?
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  Speaker 3: Back?
• 3:27
  Speaker 4: Sure, exactly right. So I think it's more exciting than
• 3:31
  Speaker 4: you think it is. Plus I'm going to show you
• 3:33
  Speaker 4: how you could get a little bit creative with it,
• 3:35
  Speaker 4: So it feels, I guess, just as personal as any
• 3:38
  Speaker 4: other gift you might give it this type of the year.
• 3:40
  Speaker 2: I love getting a little bit crafty, a little bit creative.
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  Speaker 4: I'm very crafty, very into cross stitch at the moment,
• 3:45
  Speaker 4: very into needle point, very into embroidery. I feel like
• 3:48
  Speaker 4: I've aged probably like thirty years since having a baby.
• 3:52
  Speaker 2: We don't look it.
• 3:53
  Speaker 4: That's because I stopped breastfeeding and I was able to
• 3:55
  Speaker 4: get my botox.
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  Speaker 2: Oh yeah, would actually combine the two cross stitching and investing,
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  Speaker 2: I'm sure so tells Why is it a good idea
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  Speaker 2: and not just like a finance person thing.
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  Speaker 4: You're a finance person. Everyone is a finance person. I
• 4:09
  Speaker 4: don't throw one person who doesn't use money. Yeah, you're
• 4:12
  Speaker 4: a finance people. He just didn't know it yet. He
• 4:16
  Speaker 4: actually uses money, like he goes into the bush. That
• 4:19
  Speaker 4: is a next level privilege. Right, you have to be like,
• 4:21
  Speaker 4: I'm going off grid. Okay, cool, you have to pay
• 4:24
  Speaker 4: to get there. On that anyway, completely different story. But
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  Speaker 4: let's think about it like this. So when you give
• 4:32
  Speaker 4: an investment as a gift, you're actually giving someone a
• 4:34
  Speaker 4: really tiny piece of financial freedom, unless you're giving them
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  Speaker 4: like millions invested, in which case you're giving them entire
• 4:41
  Speaker 4: financial freedom. If you would like to give that to me,
• 4:44
  Speaker 4: totally open. My address is actually on our website. But
• 4:47
  Speaker 4: it's not just money, right, it's potential. It's something that
• 4:50
  Speaker 4: could grow over time and contribute to a future goal,
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  Speaker 4: whether it's I don't know, buying a home or them traveling,
• 4:57
  Speaker 4: or just building a safety net or a urgency fund.
• 5:00
  Speaker 1: Right.
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  Speaker 4: And for anyone who's new to investing, it's also like
• 5:04
  Speaker 4: a really gentle nudge in the right direction so that
• 5:07
  Speaker 4: they start hopefully learning about their finances, but without the pressure,
• 5:10
  Speaker 4: because you didn't have to cough up the money to
• 5:13
  Speaker 4: begin with. Right. It's a classic example of I don't know,
• 5:16
  Speaker 4: teaching a man to fish or a person to fish,
• 5:20
  Speaker 4: rather than just giving them a fish. Yeah, I just
• 5:22
  Speaker 4: don't think that fish for Christmas is a good idea, though,
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  Speaker 4: Like I would be really disappointed if, like Christmas morning
• 5:28
  Speaker 4: rolls around and there was a fish in my Santa Sac.
• 5:31
  Speaker 2: A raw fish, possibly smelly by that point.
• 5:34
  Speaker 4: Yet one out of ten. But I do think that
• 5:36
  Speaker 4: it is a really great present to think about, especially
• 5:39
  Speaker 4: when you're like, oh my gosh, this person has literally everything,
• 5:42
  Speaker 4: but they're also a little bit financially irresponsible.
• 5:45
  Speaker 2: Maybe yeah, like maybe they have everything because they're financially it's.
• 5:48
  Speaker 4: Exactly like me, exactly better. Imagine if I turned around
• 5:52
  Speaker 4: and said, beck, I got you an investment, You'd be like,
• 5:54
  Speaker 4: what the hell? But then maybe you'd have to work
• 5:56
  Speaker 4: out how to redeem that gift card, or like you'd
• 5:58
  Speaker 4: have to work out how to invested, or you might
• 6:01
  Speaker 4: get a little bit interested in it. And that's like
• 6:03
  Speaker 4: the snowballs starting. And I know that you've already started investing, right, so,
• 6:07
  Speaker 4: like you already invest Imagine if I said, hey, here's
• 6:10
  Speaker 4: a contribution to this because I knew what platform you're
• 6:12
  Speaker 4: on and bought like a gift card for your investing platform,
• 6:15
  Speaker 4: you'd be like, oh my gosh, because I know you've
• 6:17
  Speaker 4: only been starting small. Imagine if I gave you fifty bucks,
• 6:19
  Speaker 4: you'd like double your investment. We feel exciting.
• 6:23
  Speaker 2: That would be so motivating. I feel how a snowball
• 6:26
  Speaker 2: effect might be created from that. But I sound like
• 6:28
  Speaker 2: a thowtful way to kickstart someone's financial journey if they're not,
• 6:30
  Speaker 2: you know, fully there yet. Plus I love that it's
• 6:33
  Speaker 2: a gift that could get bigger and bigger, you.
• 6:35
  Speaker 4: Know, absolutely, like over time you feel like I could
• 6:37
  Speaker 4: only afford a twenty dollars gift, Great, no worries, Like
• 6:40
  Speaker 4: that's a fantastic gift. In the future, it's going to
• 6:42
  Speaker 4: be worth way more.
• 6:43
  Speaker 2: But like, how do you actually do it?
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  Speaker 4: So there are lots of different ways to go about it,
• 6:47
  Speaker 4: depending on who you're giving gifts to, how much you
• 6:50
  Speaker 4: want to spend. So before we get there, I think
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  Speaker 4: it's also important to highlight here we have an episode
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  Speaker 4: on investing for children, because that's actually a completely different
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  Speaker 4: ball game then me gifting new money for investing, right beck,
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  Speaker 4: Because if I give you a gift, there's no tax implications,
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  Speaker 4: But if you are going to invest on behalf of
• 7:10
  Speaker 4: a child because you are probably their guardian, you're going
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  Speaker 4: to have some tax implications there. And if it's in
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  Speaker 4: the miner's name, those tax implications are even higher. So
• 7:22
  Speaker 4: I'm not going to get into it too deeply because
• 7:24
  Speaker 4: there's an entire episode on it, but essentially, small human
• 7:27
  Speaker 4: beings get taxed astronomically, like over fifty percent when they invest,
• 7:32
  Speaker 4: so a lot of the time it's smart to keep
• 7:34
  Speaker 4: it in your name. But that's a decision that you
• 7:36
  Speaker 4: can make and work out because a lot of people
• 7:38
  Speaker 4: in our community, they also go, oh, instead of you know,
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  Speaker 4: investing individually for my child, I'm actually going to buy
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  Speaker 4: what's called an investment bond, right, and that is a
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  Speaker 4: really tax effective way of investing for a child. So
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  Speaker 4: maybe an investment bond becomes a kid's Christmas present. It
• 7:54
  Speaker 4: sounds less sexy, but we can frame it up and
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  Speaker 4: you know what we can do. We could jump on
• 7:57
  Speaker 4: like cam and make up like a little gift certificate,
• 7:59
  Speaker 4: so a little bit more exciting, right, that's pretty cure. Yeah,
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  Speaker 4: I know anyway, So I just wanted to caveat it
• 8:05
  Speaker 4: that way because obviously there's a few different ways we
• 8:07
  Speaker 4: could invest, but for kids, it is a little bit different. Sure,
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  Speaker 4: there's a whole episode on it, but the first thing
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  Speaker 4: is shares right like shares stocks my favorite thing in
• 8:17
  Speaker 4: the entire world. You could use platforms like shares is
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  Speaker 4: where you can actually gift individual shares or contribute to
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  Speaker 4: a share portfolio. So that's when you know if someone
• 8:27
  Speaker 4: has a specific holding or like I know Beck you
• 8:29
  Speaker 4: invest with shares's because you told everybody on the podcast.
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  Speaker 4: So that makes it really simple. But if it's someone
• 8:35
  Speaker 4: that you don't know invests yet, like you could purchase
• 8:37
  Speaker 4: shares in any way. To be honest, the best way
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  Speaker 4: that I would do it is actually to give them
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  Speaker 4: the money so that they can invest in their own name,
• 8:45
  Speaker 4: because it's very hard to transfer a share to somebody
• 8:47
  Speaker 4: else's name, whole heap of admin that you don't want
• 8:50
  Speaker 4: to do. But you could draw them up a really
• 8:52
  Speaker 4: cute like quote share certificate or like Canva or something,
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  Speaker 4: and then give them the money and be like, this
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  Speaker 4: money is intended for you to invest.
• 9:00
  Speaker 2: I imagine if you gave me cash, you know that's
• 9:02
  Speaker 2: going to I.
• 9:03
  Speaker 4: Know you're not going to do it, yes, so you
• 9:07
  Speaker 4: could get an investment gift card. So platforms like Chaz's
• 9:10
  Speaker 4: and other platforms as well, and like this isn't me
• 9:13
  Speaker 4: just promoting chair Za's it's just because I know what
• 9:15
  Speaker 4: the best At this point in time. They offer investment
• 9:18
  Speaker 4: gift cards. So if I give you an investment gift card,
• 9:21
  Speaker 4: you can choose your investments, but you can't spend it
• 9:23
  Speaker 4: on anything else.
• 9:24
  Speaker 2: Beck, that's very helfl Actually that's great.
• 9:26
  Speaker 4: It locks and loads you, right, that's all. You could
• 9:29
  Speaker 4: talk to the person that you're gifting about an ETF, right,
• 9:32
  Speaker 4: so you could do some research for them, and I
• 9:34
  Speaker 4: could say, Beck, I know your likes and dislikes, and
• 9:38
  Speaker 4: I've picked out this ETF and here's a gift card.
• 9:41
  Speaker 4: I'd love you to buy this particular ETF because it
• 9:44
  Speaker 4: aligns to your values. It's ethical, it's moral. Oh my gosh, Beck,
• 9:47
  Speaker 4: they only have women on their boards. I think you'd
• 9:50
  Speaker 4: be like, oh, thanks for the research. That does sound
• 9:53
  Speaker 4: aligned to me. And I think it's just a really
• 9:54
  Speaker 4: fun way to go about it. Also, an ETF, it's
• 9:58
  Speaker 4: a bucket of shares, right, so and ETF Lots of
• 10:01
  Speaker 4: people throw that term around because they like to confuse us.
• 10:04
  Speaker 4: In the investing world, it's called an exchange traded fund,
• 10:07
  Speaker 4: which feels even more complicated, but essentially it's a bucket
• 10:10
  Speaker 4: of shares that someone who has the knowledge and the
• 10:12
  Speaker 4: power and is an investment manager has picked this list
• 10:16
  Speaker 4: of shares. It could be twenty shares, it could be
• 10:20
  Speaker 4: two hundred shares, it could be any amount, right, but
• 10:23
  Speaker 4: they've picked this specific amount of shares and put it
• 10:25
  Speaker 4: all in this bucket and said, if you put your
• 10:27
  Speaker 4: money in our bucket, you'll get instant access to all
• 10:30
  Speaker 4: of these shares. So you get the average return of
• 10:33
  Speaker 4: that list as opposed to just me giving you one
• 10:36
  Speaker 4: bank share. Yeah, does that make sense.
• 10:37
  Speaker 2: Definitely.
• 10:38
  Speaker 4: So that's a good way of making it a little
• 10:40
  Speaker 4: bit less risky, a little bit more diversified, and I
• 10:43
  Speaker 4: don't know, it feels a little bit personal. Yeah, very
• 10:45
  Speaker 4: thoughtful for your friends who are maybe a little bit
• 10:47
  Speaker 4: more conservative. You could pick a bond. My favorite way
• 10:52
  Speaker 4: of explaining a bond is like an IOU note. Okay,
• 10:55
  Speaker 4: So if I gave you an IOU note, you have
• 10:58
  Speaker 4: this little piece of paper and you go, my cash
• 11:00
  Speaker 4: is in one day, and I go, you wait ten years, beck.
• 11:03
  Speaker 4: But essentially what happens is the government usually issues what's
• 11:07
  Speaker 4: called a bond, and they go out to market and
• 11:09
  Speaker 4: they say, hey, Beck, we want to build some new roads,
• 11:11
  Speaker 4: or we want to build some public hospitals or some
• 11:14
  Speaker 4: infrastructure for our community, but we need some funding, Like,
• 11:18
  Speaker 4: we don't have the cash for it today, but we
• 11:20
  Speaker 4: know that if we do this, we'll have the cash
• 11:22
  Speaker 4: in ten years. Right, So they go, Beck, could we
• 11:24
  Speaker 4: borrow your cash and we'll give you an IOU note?
• 11:27
  Speaker 4: So we give all your cash back when we're done
• 11:29
  Speaker 4: with it ten years and along the way we'll pay
• 11:32
  Speaker 4: you five percent. Is that cool? And you go, Okay,
• 11:35
  Speaker 4: take my cash. Can I have my IOU note and
• 11:38
  Speaker 4: I'll cash it in later? When this term ex bias
• 11:41
  Speaker 4: per year? Yeah, often often so it just depends on
• 11:45
  Speaker 4: what the bond is and how much it's paying. But
• 11:48
  Speaker 4: it is usually a safer option or a less quote
• 11:51
  Speaker 4: risks ski option than an ETF or buying shares because
• 11:55
  Speaker 4: here in Australia bonds are triple A rated. So what's
• 12:00
  Speaker 4: that mean back? It means that in Australia, historically a
• 12:04
  Speaker 4: bond that has been issued by our government has never
• 12:07
  Speaker 4: not been returned, right, So they always, always, always have
• 12:11
  Speaker 4: historically given our money back. Can't say the same for
• 12:13
  Speaker 4: the Greek government though, Oh they don't really like giving
• 12:17
  Speaker 4: their money back, how do they get away with that
• 12:19
  Speaker 4: what their entire economy is in a lot of debt.
• 12:21
  Speaker 2: I see, yeah, I see like.
• 12:23
  Speaker 4: They're in a bit of a pickle. You could say back, sure,
• 12:25
  Speaker 4: but in Australia, bonds do return, so they are seen
• 12:28
  Speaker 4: to be a less risky gift that if your friend's
• 12:32
  Speaker 4: not ready to invest in shares or in you know, ds,
• 12:36
  Speaker 4: they might feel a little bit more comfortable with that.
• 12:38
  Speaker 2: Also, that's cute.
• 12:40
  Speaker 4: In most investing portfolios, a bond makes up a really
• 12:44
  Speaker 4: good portion of like a stable investment. Think about an
• 12:47
  Speaker 4: investing portfolio as a pie chart. Usually you would, you know,
• 12:51
  Speaker 4: draw some lines through the pie chart and then fill
• 12:53
  Speaker 4: in the blanks. Right, So, like for somebody who's a
• 12:56
  Speaker 4: bit more of an aggressive investor, like me, I have
• 12:59
  Speaker 4: my pie chart, but most of that pie is actually
• 13:02
  Speaker 4: made up of shares, and I do have some bonds,
• 13:05
  Speaker 4: but most of my assets are in shares. But if
• 13:08
  Speaker 4: someone's a bit more conservative, they're like, oh, put the
• 13:11
  Speaker 4: rakes on, I'm not ready to invest in shares as
• 13:15
  Speaker 4: aggressively as Victoria is. They're seem to be a more
• 13:17
  Speaker 4: conservative investor. They still have their pie, right, but their
• 13:21
  Speaker 4: pis cut up and most of it is made up
• 13:23
  Speaker 4: of bonds and cash and.
• 13:26
  Speaker 2: Less risky things.
• 13:27
  Speaker 4: Yeah, less risky things. And they might still have shares,
• 13:30
  Speaker 4: and they might be identical to mine, they just own
• 13:32
  Speaker 4: less of them. The pires cut up in different ways. Yeah,
• 13:36
  Speaker 4: but it doesn't mean that the asset is more risky.
• 13:38
  Speaker 4: It's just seen to be a more risky portfolio because
• 13:41
  Speaker 4: it has more shares instead of the stable things. Yes,
• 13:44
  Speaker 4: so don't make sense totally. I think it's really cool.
• 13:47
  Speaker 2: Imagine like I gave one hundred bucks in a bond
• 13:49
  Speaker 2: right now, and then in ten years time, because right
• 13:51
  Speaker 2: now it's like, oh thanks, Like I can't even see
• 13:54
  Speaker 2: this money for like a decade.
• 13:55
  Speaker 4: Yeah, but it's starting to pay off.
• 13:57
  Speaker 2: They're getting the back maybe double exactly.
• 14:01
  Speaker 4: Money should double every ten years and in an average
• 14:03
  Speaker 4: rate of return based on the Australian share market, your
• 14:07
  Speaker 4: money should double if you're investing in the Australian share
• 14:09
  Speaker 4: market every seven years.
• 14:12
  Speaker 2: That's that's real. That's really a good deal.
• 14:15
  Speaker 4: Bet.
• 14:15
  Speaker 2: So you can actually make this gift as big or
• 14:17
  Speaker 2: as little as you want. You can tailor it to
• 14:20
  Speaker 2: how involved with the person wants to get and for
• 14:22
  Speaker 2: someone who's totally new, maybe starting with a little bit
• 14:24
  Speaker 2: and shares could be exciting without being overwhelming. And as
• 14:27
  Speaker 2: you just explain, like investing can be a little bit
• 14:29
  Speaker 2: different for kids, So just keep that in mind. We
• 14:31
  Speaker 2: do have a whole episode on that.
• 14:32
  Speaker 4: Yeah, and I mean it can be really cool. So
• 14:35
  Speaker 4: I have had you know, Glenn James, my friend from
• 14:38
  Speaker 4: this is Money or money, Money, money, Okay, he has
• 14:41
  Speaker 4: lots of different pod names floating around at the moment.
• 14:43
  Speaker 4: He talks about how he invests for his niece and
• 14:46
  Speaker 4: his nephew and he has an investment bond for them
• 14:50
  Speaker 4: that every year, instead of Christmas and Birthday presents, he
• 14:53
  Speaker 4: just contributes more to that investment bond. And so that's
• 14:56
  Speaker 4: something that Steve and I have set up for Harvey,
• 14:59
  Speaker 4: and that's what we will be doing. Because I won't
• 15:01
  Speaker 4: say it's the most tax effective for everybody, right, Like,
• 15:04
  Speaker 4: this is a very privileged thing for me to be
• 15:07
  Speaker 4: able to say and do, right, I'm just being completely transparent.
• 15:10
  Speaker 2: Sure, But because.
• 15:10
  Speaker 4: Steve and I are high income earnest and our tax
• 15:14
  Speaker 4: is at the highest marginal tax bracket, an investment bond
• 15:18
  Speaker 4: works best for us, Okay, Right, So we've decided that
• 15:20
  Speaker 4: we want to invest for Harvey, and we've done all
• 15:22
  Speaker 4: of the maths in the background and gone, well, what
• 15:24
  Speaker 4: does this mean? We really want to invest for him,
• 15:27
  Speaker 4: But it actually isn't financially a very smart decision for
• 15:30
  Speaker 4: us to invest in Harvey's name. Nor is it a
• 15:33
  Speaker 4: smart decision for me to go and buy shares that
• 15:35
  Speaker 4: I know pretend to Harvey's and I'll transfer to him
• 15:38
  Speaker 4: one day, because I'll have a whole heap of transfer
• 15:40
  Speaker 4: fees that I need to pay, because you can't just
• 15:43
  Speaker 4: transfer easily and be like, oh, here's this gift. Like
• 15:46
  Speaker 4: the taxman's going to be like, hey see how you
• 15:48
  Speaker 4: had these shares because Harvey has been investing now for
• 15:52
  Speaker 4: eighteen years. So what you're going to have to do
• 15:55
  Speaker 4: is pay capital gains tax as you transfer that over.
• 15:58
  Speaker 4: And I'm just looking into the future and going, I know,
• 16:02
  Speaker 4: I don't want to do that because what did I
• 16:03
  Speaker 4: say before, beck, money is on average going to double
• 16:06
  Speaker 4: every seventy yeares.
• 16:07
  Speaker 2: Yeah, yeah, yeah, we're going to.
• 16:09
  Speaker 4: Have hopefully a really big capital gains issue because we've
• 16:12
  Speaker 4: made heap of money. But I don't want to pay
• 16:14
  Speaker 4: their tax man. I do love paying tax don't get
• 16:19
  Speaker 4: me wrong. It is an absolute privilege.
• 16:20
  Speaker 1: Beck.
• 16:21
  Speaker 4: The more money you make, the more tax you pay,
• 16:22
  Speaker 4: and the more tax you pay, the more privilege you are.
• 16:25
  Speaker 4: That's a good deal. But if I can avoid it
• 16:27
  Speaker 4: in the future, that's a good deal too.
• 16:29
  Speaker 2: That's good.
• 16:30
  Speaker 4: So an investment bond has made the most sense for
• 16:32
  Speaker 4: Steve and I in our personal situation, but it doesn't
• 16:35
  Speaker 4: mean that all work for everybody. You might go, it
• 16:37
  Speaker 4: just makes sense for me to have a few shares
• 16:40
  Speaker 4: in my own name, and I will deal with it.
• 16:42
  Speaker 4: In fact, the entire reason I have shares in my
• 16:44
  Speaker 4: own name is because I really want to teach my
• 16:47
  Speaker 4: kid about the concept of investing rather than have them
• 16:50
  Speaker 4: you have a house deposit when they are eighteen years old,
• 16:53
  Speaker 4: because that's just not financially viable for me. And so
• 16:56
  Speaker 4: I think it's important to work out what works for you,
• 16:58
  Speaker 4: which is why we have that episode. But I don't know.
• 17:00
  Speaker 4: I feel like I owe you guys transparency as well,
• 17:03
  Speaker 4: to be like, well, this is what I'm doing, but
• 17:04
  Speaker 4: also this is why I'm doing it. Yes, because if
• 17:07
  Speaker 4: I just said, oh, Beck, well we've chosen an investment bond,
• 17:10
  Speaker 4: you might go, well, that makes the most sense then,
• 17:13
  Speaker 4: because if they did. It must be the best decision, right, Like,
• 17:16
  Speaker 4: if Victoria is doing something and she's you know, a
• 17:18
  Speaker 4: money person, an investment bond must be the best outcome.
• 17:22
  Speaker 4: But that doesn't mean it is for you. Does that
• 17:24
  Speaker 4: make sense?
• 17:25
  Speaker 2: Yeah, definitely, And from memory, I know this is in
• 17:27
  Speaker 2: the episode, but it's a higher tax bracket. So people
• 17:31
  Speaker 2: don't kind of like take advantage of like putting money
• 17:33
  Speaker 2: in their children's names.
• 17:35
  Speaker 4: You great, me so proud, thank you. Yeah, it's come
• 17:38
  Speaker 4: into play because rich people can be really dodgy. But ha,
• 17:42
  Speaker 4: And what they do is they set up these family
• 17:44
  Speaker 4: trusts because they've got fancy pants accountants and they can
• 17:47
  Speaker 4: afford to set these structures up. And they go, all right,
• 17:50
  Speaker 4: I'm going to put my kid Beck in this structure
• 17:53
  Speaker 4: and every year I'm going to distribute income to Beck,
• 17:56
  Speaker 4: because as you know, the first eighteen or so thousand
• 17:59
  Speaker 4: dollars you earn, you don't pay tax on. Right, So
• 18:02
  Speaker 4: if I paid my kid eighteen grand, tax free money
• 18:05
  Speaker 4: coming out, and then they just go into their kids'
• 18:07
  Speaker 4: bank account, pull it out tax free, okay, dodgy, dodgy,
• 18:12
  Speaker 4: that is not okay. So to get around all of
• 18:16
  Speaker 4: this the ater is gone, no, no, no, no, no. What
• 18:19
  Speaker 4: we're going to do is miners can only earn up
• 18:22
  Speaker 4: to four hundred and sixteen dollars per year from investment income,
• 18:27
  Speaker 4: so that's a pretty good deal. They could absolutely earn,
• 18:30
  Speaker 4: you know, a couple of hundred bucks before this comes
• 18:32
  Speaker 4: into play, before facing tax rates of sixty six percent.
• 18:37
  Speaker 2: Whoa, that is astronomical, right, that's higher than the highest
• 18:41
  Speaker 2: marginal tax rate in Australia.
• 18:43
  Speaker 4: Literally, they're doing it so that you're turned off doing
• 18:46
  Speaker 4: that rate.
• 18:46
  Speaker 2: See pretty well.
• 18:48
  Speaker 4: I think there needs to be like more flexibility in
• 18:51
  Speaker 4: this area because like some of us, we're just doing
• 18:53
  Speaker 4: the best that we can and we're genuinely investing for
• 18:55
  Speaker 4: our kid. Like what if your kid was one of
• 18:57
  Speaker 4: those like Target models, like you know the kids in
• 19:00
  Speaker 4: the Target catalog. Yeah, but what if they go and
• 19:02
  Speaker 4: they're earning their own money and then mum and dad
• 19:04
  Speaker 4: are being smart about it and they're investing it, like
• 19:07
  Speaker 4: they shouldn't be crucified by the money that they're earning.
• 19:09
  Speaker 4: But the richie riches of the world took the mickey
• 19:12
  Speaker 4: and now the ATO were like, we're just going to
• 19:14
  Speaker 4: ban that. Oh yeah, so anyone under ateen that applies
• 19:18
  Speaker 4: to However, Beck, that doesn't apply if they've earned the
• 19:21
  Speaker 4: money from paid employment. So like if a kid is
• 19:24
  Speaker 4: you know, fourteen years and nine months and got their
• 19:26
  Speaker 4: first job, obviously different tax rates apply. This is just
• 19:30
  Speaker 4: for passively earned income.
• 19:33
  Speaker 2: Oh okay, gotcha, gotcha, got cha?
• 19:34
  Speaker 4: Okay, So what about you just stop the sneaky fancy pantss.
• 19:37
  Speaker 4: But at the same time, I think it's important that
• 19:39
  Speaker 4: we understand why that exists, so then you can pick
• 19:42
  Speaker 4: a structure that makes sense. Because if you were just
• 19:45
  Speaker 4: investing pocket money, Beck, maybe it's of absolutely no consequence
• 19:49
  Speaker 4: to you. And you're like, I don't mind if my
• 19:50
  Speaker 4: kid has you know, fifteen dollars worth of shares in
• 19:54
  Speaker 4: their name and they're trading and making you know, less
• 19:57
  Speaker 4: than a dollar a year on it, like it's their
• 19:59
  Speaker 4: financial edge. You just have to be aware when you're
• 20:01
  Speaker 4: making more than the four hundred ishmark. Right. But Beck,
• 20:05
  Speaker 4: as you said in the intro to this podcast, one
• 20:08
  Speaker 4: of my love languages is thoughtful gift giving, and you
• 20:12
  Speaker 4: weren't making that up. So let's take a really quick
• 20:15
  Speaker 4: break because afterwards, I'm going to give you some ideas
• 20:17
  Speaker 4: on how to choose the right investment for your gift
• 20:20
  Speaker 4: and make it more thoughtful and more meaningful.
• 20:27
  Speaker 2: All right, we are back everybody. But before the break
• 20:29
  Speaker 2: V you did promise us some tips on how to
• 20:31
  Speaker 2: choose the right investment for your gift. I think again,
• 20:34
  Speaker 2: like you, Beck, I wouldn't go, all right, well, I've
• 20:37
  Speaker 2: just purchased you some shares on self Wealth, because you'd
• 20:40
  Speaker 2: be like, oh my gosh, that is an overwhelming, confusing platform.
• 20:43
  Speaker 4: It's a great platform. I have used that platform and
• 20:46
  Speaker 4: still hold assets on that platform, and I really like it.
• 20:49
  Speaker 4: But I was an ex financial advisor and I really
• 20:52
  Speaker 4: like the way things work on there. However, you're a
• 20:55
  Speaker 4: Shares's girl, right like, and you just like the fact
• 20:58
  Speaker 4: that it's on an app. I can almost guarantee you've
• 21:00
  Speaker 4: never logged into your Shares's account on a computer, have you, Yeah, exactly.
• 21:05
  Speaker 4: So we need to think about picking the right investment
• 21:08
  Speaker 4: for the right person. Because self Wealth it doesn't have
• 21:11
  Speaker 4: a very good ap like it's very much a desktop
• 21:14
  Speaker 4: user experience, so that doesn't make a lot of sense.
• 21:17
  Speaker 4: But the first thing I'd really want to think about
• 21:19
  Speaker 4: here is time period. Like, if somebody is investing, how
• 21:24
  Speaker 4: long are they going to be investing for So if
• 21:27
  Speaker 4: you're like, oh, I really want to get Beck to invest,
• 21:29
  Speaker 4: and like, let's pretend that you're a rich boomer, rich boomer, Okay,
• 21:32
  Speaker 4: channel your rich boomer energy. You want to invest one
• 21:36
  Speaker 4: thousand dollars for Beck? Right, yep, yeah, we really want
• 21:39
  Speaker 4: to do that, But Beck is currently saving for a
• 21:41
  Speaker 4: first home. Is that the best decision to bank?
• 21:44
  Speaker 2: Like you see, if.
• 21:45
  Speaker 4: I invested one thousand dollars for you as a rich boomer,
• 21:48
  Speaker 4: because that's you know, who can afford to give in
• 21:51
  Speaker 4: my head presents that are to the value of a
• 21:53
  Speaker 4: thousand dollars in if we were doing that, does that
• 21:57
  Speaker 4: then mean that you're going to pull that money out
• 22:00
  Speaker 4: pretty quickly to put towards your home deposit?
• 22:02
  Speaker 1: Right? Yeah?
• 22:03
  Speaker 4: Yeah, because you might go, shit, like that's one thousand
• 22:05
  Speaker 4: dollars and I'm really aggressively saving for a house, Like
• 22:09
  Speaker 4: that would be much better used here. I think we've
• 22:11
  Speaker 4: got to put our thinking caps on and think about
• 22:13
  Speaker 4: the timeframe if you are investing for them, or if
• 22:17
  Speaker 4: you are purchasing a gift card for them to invest,
• 22:20
  Speaker 4: like how long are they going to hold it? And
• 22:23
  Speaker 4: then how easy is it going to be for them
• 22:25
  Speaker 4: to manage it. I think we need to have a
• 22:27
  Speaker 4: good think about that, because I know that if I
• 22:29
  Speaker 4: purchased you something like a gift card where you could
• 22:32
  Speaker 4: pick your own investments on the platform you're already used,
• 22:35
  Speaker 4: that's thoughtful, that's meaningful. Me picking something completely rogue, that
• 22:40
  Speaker 4: just feels controlling, you know what I mean?
• 22:44
  Speaker 2: Right, And I might never actually be able to use
• 22:46
  Speaker 2: it because I don't know what to do with it.
• 22:47
  Speaker 2: I don't know where to go exactly. I see, and
• 22:50
  Speaker 2: how can we add some personalized touches to make the
• 22:53
  Speaker 2: gift even more meaningful?
• 22:54
  Speaker 4: So here's a few different ways that you could make
• 22:58
  Speaker 4: this gift really resonate supposed so relating to long term goals.
• 23:02
  Speaker 4: So say you're again rich boomer. It's a good example,
• 23:06
  Speaker 4: and you are saving for your first homeback, but you're
• 23:09
  Speaker 4: not very close, Like you know it's going to take
• 23:11
  Speaker 4: another seven to ten years to purchase that. You could
• 23:14
  Speaker 4: write a really beautiful card and be like, I know
• 23:16
  Speaker 4: that this is hopefully going to grow into part of
• 23:19
  Speaker 4: your home deposit, so like you know it could be
• 23:21
  Speaker 4: for like an eighteen or a nineteen year old and
• 23:23
  Speaker 4: you're like, I want you to put this away because
• 23:25
  Speaker 4: it doesn't make any sense right now for you to
• 23:26
  Speaker 4: purchase property. But I'd like to give you this money
• 23:29
  Speaker 4: in the hopes that by the time you purchase it's doubled. Yeah,
• 23:33
  Speaker 4: wouldn't that be cool? That's pretty cute exactly. And then
• 23:36
  Speaker 4: I think going back to what I was telling you
• 23:38
  Speaker 4: before about choosing investments with meanings, so like, if you're
• 23:41
  Speaker 4: going to pick a share or an ETF, I would
• 23:43
  Speaker 4: relate it to that person's interests. So like, if they
• 23:46
  Speaker 4: love tech, maybe you could buy them like a tech company.
• 23:49
  Speaker 5: Yeah.
• 23:49
  Speaker 4: Like, wouldn't it be so cool to like make up
• 23:52
  Speaker 4: a fake Apple gift card that then set on the
• 23:55
  Speaker 4: back ha ha these are shares?
• 23:57
  Speaker 2: Yeah, yea cool, that's pretty cute.
• 24:01
  Speaker 4: You could also always include a personal note. I'm a
• 24:03
  Speaker 4: very big fan of like writing proper Christmas cards for people. Yes,
• 24:07
  Speaker 4: so you could write a Christmas card for somebody that says,
• 24:10
  Speaker 4: here's a little start to your future. I chose this
• 24:12
  Speaker 4: book as the lines with something I know you're passionate about,
• 24:15
  Speaker 4: like and tell them how much you love them all
• 24:17
  Speaker 4: of that. Like, to be honest, all I want for
• 24:18
  Speaker 4: Christmas is Christmas cards. Anyway, here's a good idea veck.
• 24:22
  Speaker 4: You could include it in an investing book, huh, So
• 24:27
  Speaker 4: you couldmpare an investment like a little like investing gift
• 24:31
  Speaker 4: card with I don't know, maybe like a beginner friendly
• 24:34
  Speaker 4: investing book that's won some awards, Like I don't know,
• 24:37
  Speaker 4: investing's on the money. So this like sets some I
• 24:41
  Speaker 4: guess realistic expectations. It explains markets ups and downs, and
• 24:46
  Speaker 4: it really emphasizes that this gift is all about long
• 24:49
  Speaker 4: term wealth creation and growth and helping them be the
• 24:52
  Speaker 4: best version of themselves. Yes, but like I don't know
• 24:55
  Speaker 4: any investing.
• 24:55
  Speaker 2: Books, No, I don't know a single one.
• 24:57
  Speaker 4: But hypothetically, if you were to pair it with an
• 25:00
  Speaker 4: investing book, yes, I'm in a link one in the
• 25:03
  Speaker 4: show notes that you guys.
• 25:04
  Speaker 2: Might like pathetically that I might have written maybe no pressure,
• 25:07
  Speaker 2: no pressure.
• 25:08
  Speaker 4: But it's a gift. And also, like low Key, we
• 25:12
  Speaker 4: spent so long beck on the covers of those books,
• 25:15
  Speaker 4: So if you wanted to buy multiple, they look really
• 25:17
  Speaker 4: great as a little set, they do. They look lovely
• 25:20
  Speaker 4: as a coffee table book. Yeah, bedside table books, bedside
• 25:23
  Speaker 4: table book. Any stylists purchase this book put it on
• 25:25
  Speaker 4: people's bedside tables, when you're selling homes.
• 25:28
  Speaker 2: Yes, yes, yes, I mean it's just a care.
• 25:30
  Speaker 4: It just makes sense.
• 25:31
  Speaker 2: That just makes sense.
• 25:33
  Speaker 4: You could use it as I don't know, a month
• 25:35
  Speaker 4: older if you're not into.
• 25:36
  Speaker 2: Readings, beautiful coast stuff, fantastic at stop.
• 25:41
  Speaker 4: Same anyway, I think that that's probably the best Christmas
• 25:46
  Speaker 4: present you could get someone is basically you know my books.
• 25:49
  Speaker 2: Yeah that's true. Okay, so that's our guy to giving
• 25:52
  Speaker 2: a gift that's way more exciting than socks or any
• 25:54
  Speaker 2: of the candle.
• 25:55
  Speaker 4: I love a candle.
• 25:56
  Speaker 2: I do love a.
• 25:56
  Speaker 4: Candles Sunday blue candle. If you're looking for candles this
• 25:59
  Speaker 4: Christmas data paid sponsorship, they just have this Mediterranean blood
• 26:05
  Speaker 4: orange can.
• 26:06
  Speaker 2: Oh that's doning.
• 26:08
  Speaker 4: I guess okay, we're done.
• 26:08
  Speaker 2: Sorry, Well okay, this holiday season, why not give something
• 26:12
  Speaker 2: that grows with the person or maybe even inspires them
• 26:15
  Speaker 2: to learn about money. That's a really idea.
• 26:18
  Speaker 4: And think of it as like a little financial seed
• 26:21
  Speaker 4: that you're planning for someone, whether it's shares and ETF,
• 26:24
  Speaker 4: an investment bond, a book, an investing course that you
• 26:28
  Speaker 4: might want to give to someone for Christmas. I think
• 26:32
  Speaker 4: it's a gift that could turn into something much bigger
• 26:34
  Speaker 4: over time, and there's literally nothing more festive than the
• 26:37
  Speaker 4: idea of a future that's a little brighter. Beck. And
• 26:40
  Speaker 4: who knows, you might even spark a lifelong interest in investing.
• 26:43
  Speaker 4: Can you imagine? I know you dragged them into my community.
• 26:46
  Speaker 2: You could literally.
• 26:48
  Speaker 4: Change Merry Christmas. Beck, I'm going to add all your
• 26:50
  Speaker 4: friends to my Facebook group.
• 26:52
  Speaker 2: Thank you so much. That is a great You could
• 26:54
  Speaker 2: change the trajectory of someone's life in a good way.
• 26:57
  Speaker 2: That's my plan. That's literally what I've been trying to
• 26:59
  Speaker 2: do this whole time. Fantastic be Oh that's what you're
• 27:01
  Speaker 2: trying to do. Okay, Okay, I get it out. If
• 27:03
  Speaker 2: you're feeling extra generous this season and want to give
• 27:05
  Speaker 2: the shees on the Money team a little holiday cheer,
• 27:08
  Speaker 2: consider leaving us a love note in the form of
• 27:10
  Speaker 2: a review.
• 27:11
  Speaker 4: But also probably just put the actual love note in
• 27:13
  Speaker 4: the review.
• 27:14
  Speaker 2: A love note might actually be nice if you call it,
• 27:16
  Speaker 2: but seriously, it gives us a warm and fuzzy feeling.
• 27:19
  Speaker 4: Absolutely, and on our Friday episodes, we have started reading
• 27:22
  Speaker 4: out our favorite five star reviews so that you might
• 27:25
  Speaker 4: find yourself on the show. Reviews actually make a really
• 27:28
  Speaker 4: huge difference to the performance of our show as well,
• 27:31
  Speaker 4: which helps more people find Sheese on the Money and
• 27:34
  Speaker 4: join our incredible community. So if you do have a
• 27:36
  Speaker 4: few moments, we would love to hear what you think.
• 27:39
  Speaker 4: It's the best gift you could actually give us this year.
• 27:41
  Speaker 2: That's so true. Okay, happy for giving everyone. Here's to
• 27:44
  Speaker 2: thoughtful presents, bright futures and maybe a five star review.
• 27:48
  Speaker 4: Wow, just a cheeky one. Anyway, have a good week, guys,
• 27:51
  Speaker 4: and we will see you for five star reviews on Friday.
• 27:53
  Speaker 2: Who by guys.
• 28:00
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• 28:03
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• 28:07
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• 28:10
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• 28:14
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• 28:16
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