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Constructing Your Perfect Investment Portfolio · She's On The Money

• 0:00
  Speaker 1: Hello.
• 0:01
  Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
• 0:05
  Speaker 2: Order KERNI Whoalbury and a waddery woman. And before we
• 0:08
  Speaker 2: get started on She's on the Money podcast, I would
• 0:11
  Speaker 2: like to acknowledge the traditional custodians of the land of
• 0:14
  Speaker 2: which this podcast is recorded on a wondery country, acknowledging
• 0:18
  Speaker 2: the elders, the ancestors and the next generation coming through
• 0:23
  Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
• 0:27
  Speaker 2: the storytelling of you to make a difference for today
• 0:31
  Speaker 2: and lasting impact for tomorrow.
• 0:33
  Speaker 1: Let's get into it.
• 0:34
  Speaker 3: She's on the Money, She's on the Money.
• 0:57
  Speaker 1: Hello, and welcome to She's on the Money, the podcat
• 1:00
  Speaker 1: pass for millennials who want financial freedom. My name is
• 1:02
  Speaker 1: Beckside and with us is the one and only Victoria Divine.
• 1:06
  Speaker 4: You did not sound excited today. You sound like bear.
• 1:10
  Speaker 4: I don't want to be here. I don't want to
• 1:12
  Speaker 4: talk about this. Victoria's used the word portfolio over now.
• 1:17
  Speaker 1: I know, so you can tell that I've checked out
• 1:19
  Speaker 1: of this one.
• 1:19
  Speaker 4: Yeah, you're already.
• 1:21
  Speaker 1: We can make it fun.
• 1:22
  Speaker 4: Investing is literally my favorite topic in the entire world.
• 1:25
  Speaker 4: I don't know how to reiterate that more. I have
• 1:28
  Speaker 4: literally written a book on it. And then I'm also
• 1:31
  Speaker 4: releasing the spoiler an investing course story soon, which I'm
• 1:35
  Speaker 4: really excited about.
• 1:36
  Speaker 1: Oh my goodness, gracious, I'm just going to teach you
• 1:39
  Speaker 1: all the things. Watch out. You do have a way
• 1:41
  Speaker 1: of making it very, very exciting. But it is the
• 1:44
  Speaker 1: first Wednesday of the month, so we are looking at
• 1:46
  Speaker 1: an investment topic, and today we're talking about constructing your
• 1:49
  Speaker 1: perfect investment portfolio.
• 1:52
  Speaker 4: I don't know do we have structure that means that
• 1:55
  Speaker 4: on the first, I guess Wednesday of every month we
• 1:58
  Speaker 4: talk about investing, Like, has that exist said for this
• 2:00
  Speaker 4: whole time? And I haven't noticed? And our producers just
• 2:03
  Speaker 4: a wizard, I think it has.
• 2:05
  Speaker 1: I think so I didn't notice either. That's very impressive.
• 2:07
  Speaker 1: That is very impressive.
• 2:08
  Speaker 4: We just have these big brainstorming sessions and I'm like,
• 2:11
  Speaker 4: what about this topic? In this topic and this topic?
• 2:12
  Speaker 4: And then she's smile and nod, smiling, and then she
• 2:15
  Speaker 4: like organizes them.
• 2:17
  Speaker 1: What the heck like it's a job.
• 2:22
  Speaker 4: I bet nobody else noticed, but I don't think so
• 2:24
  Speaker 4: we finally noticed and elsa thank you.
• 2:27
  Speaker 1: I won't be able to unsee it now, how annoying
• 2:30
  Speaker 1: are we now?
• 2:31
  Speaker 4: Predictable?
• 2:32
  Speaker 2: Oh?
• 2:32
  Speaker 1: That sucks, but also good one out. Some people love
• 2:35
  Speaker 1: the comfortability of it. Nava, you mentioned to me that
• 2:38
  Speaker 1: you were at a speaking event recently and you talked
• 2:40
  Speaker 1: about the idea that risk and investment has two facets.
• 2:43
  Speaker 1: Could you tell us a little bit more?
• 2:45
  Speaker 4: Yes, Actually I love a speaking event, and recently this
• 2:48
  Speaker 4: has come up a few times because I just think
• 2:50
  Speaker 4: it's really important. So when it comes to the investing world,
• 2:54
  Speaker 4: I feel like we all get analysis paralysis, right, that
• 2:57
  Speaker 4: we feel so overwhelmed with this concept of where we
• 3:01
  Speaker 4: start and what we should be doing and what our
• 3:02
  Speaker 4: perfect portfolio looks like, that we forget that things can
• 3:06
  Speaker 4: actually be quite simple. And I mean, I'll get more
• 3:10
  Speaker 4: into it later on, but I talk a lot, especially
• 3:13
  Speaker 4: in person when I do like a speaking event, which,
• 3:16
  Speaker 4: for those of you who don't know, a lot of
• 3:18
  Speaker 4: my time now I'm a retired financial advisor. A lot
• 3:21
  Speaker 4: of my time is actually spent in corporate and seeing
• 3:25
  Speaker 4: corporate talking to I guess employees about their financial wellbeing
• 3:29
  Speaker 4: and their financial wellness, and it's one of my favorite
• 3:31
  Speaker 4: things in the entire world. But I often will say
• 3:34
  Speaker 4: the phrase I'm a conservative aggressive investor, and that sounds
• 3:39
  Speaker 4: very juxtapositione right, Like it sounds like, wait, you can't
• 3:45
  Speaker 4: be both, Victoria. If you've listened to all of our podcasts,
• 3:48
  Speaker 4: you've probably listened to the episode that we've done on
• 3:51
  Speaker 4: risk profiles where I talk about how there are usually
• 3:55
  Speaker 4: like six or seven different risk profiles and they go
• 3:58
  Speaker 4: all the way from capital stable, conservative, all the way
• 4:01
  Speaker 4: up to high growth or aggressive, which is language I
• 4:04
  Speaker 4: don't particularly like in the investing world because it makes
• 4:07
  Speaker 4: us feel a little bit overwhelmed, a little bit scared.
• 4:10
  Speaker 4: Like the second the word aggressive comes out, you're like,
• 4:12
  Speaker 4: hold up, that might not be for me.
• 4:14
  Speaker 1: Yeah, Like, I'm not so sure.
• 4:16
  Speaker 4: However, I would say that I'm a conservative aggressive investor,
• 4:20
  Speaker 4: and a little bit later in the show, I'll explain
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  Speaker 4: to you exactly why that does actually make sense.
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  Speaker 1: Few Okay, So, v you did ask me to gather
• 4:29
  Speaker 1: some relevant data for this, and you know I am
• 4:32
  Speaker 1: not a money wiz, but I'm gonna I wrote that
• 4:34
  Speaker 1: you are get this really good at Google. I'm very
• 4:38
  Speaker 1: good at Google, and I wrote some stuff down. So
• 4:40
  Speaker 1: let's see.
• 4:40
  Speaker 4: I'm ready.
• 4:41
  Speaker 1: What have you brought to the table today. Some of
• 4:43
  Speaker 1: these are tongue twister.
• 4:44
  Speaker 4: Here are Beck's top tips on creating your perfect portfolio.
• 4:48
  Speaker 1: All right, so I've got some information from Australian Investor
• 4:51
  Speaker 1: study for twenty twenty three, which focus on nexs. That's true,
• 4:56
  Speaker 1: that's big dog, that is And basically I'm going to
• 4:59
  Speaker 1: focus today on female identifying people investors. I should say,
• 5:03
  Speaker 1: also what they call next gen investors, which babies, the
• 5:06
  Speaker 1: little tiny babies, little.
• 5:07
  Speaker 4: Tiny babies who have so much opportunity to do well.
• 5:10
  Speaker 1: They do, and that I'm very happy that they're starting young.
• 5:13
  Speaker 1: So I'm going to give you the data on the
• 5:16
  Speaker 1: female identifying investors first. Yep. So the average age of
• 5:20
  Speaker 1: female identifying investors is forty seven.
• 5:25
  Speaker 4: Is that surprising?
• 5:26
  Speaker 1: I don't know. I have no idea.
• 5:28
  Speaker 4: Is that I feel like me dragging it down slowly.
• 5:30
  Speaker 4: I feel like forty seven is a good number because
• 5:33
  Speaker 4: obviously it's before retirement.
• 5:35
  Speaker 1: Sure, but I like want.
• 5:36
  Speaker 4: The average age of an investor to be younger because
• 5:40
  Speaker 4: that means they've got more opportunity to create wealth. Ideally, ideally,
• 5:44
  Speaker 4: but they could be.
• 5:45
  Speaker 1: A bunch of twenty four year olds and a bunch
• 5:46
  Speaker 1: of one hundred year olds and then that makes the
• 5:48
  Speaker 1: average age.
• 5:49
  Speaker 4: Actually, that makes me want to find the difference between
• 5:52
  Speaker 4: the me and the median and the morge or do
• 5:53
  Speaker 4: you want to do it for me or do you
• 5:54
  Speaker 4: want me to do it?
• 5:56
  Speaker 1: I think it. Yeah, I don't have no idea, but yes,
• 5:58
  Speaker 1: let's argue that.
• 6:00
  Speaker 4: Yeah. So it's important to understand when we talk about
• 6:03
  Speaker 4: data that there are actually three ways that people might
• 6:08
  Speaker 4: report on it. Right, So there's the mean, there's the median,
• 6:10
  Speaker 4: and then there's what's called the mode. And we're just
• 6:13
  Speaker 4: going to take a quick dive into a statistics lesson
• 6:16
  Speaker 4: for a hot second, because I do think it's really
• 6:17
  Speaker 4: important to understand these things because so many times we
• 6:20
  Speaker 4: see data and I know from your notes you're about
• 6:23
  Speaker 4: to talk about the median, so let's start there. So
• 6:26
  Speaker 4: the median is actually the number that is smack bang
• 6:30
  Speaker 4: in the middle. So if you got every single data point,
• 6:33
  Speaker 4: like if there were ten people in this data set,
• 6:36
  Speaker 4: we would order them from smallest to largest number and
• 6:39
  Speaker 4: then smack bang in the middle. That is what the
• 6:42
  Speaker 4: median is. So the median is if we got every
• 6:45
  Speaker 4: single data point, put them in a row, and then
• 6:48
  Speaker 4: hit the smack bang middle one R.
• 6:50
  Speaker 1: That's just the middle number that occurs. Right.
• 6:53
  Speaker 4: Then you've got the mean, and the mean is from
• 6:56
  Speaker 4: my perspective, it's interesting to see what's smack bang in
• 7:00
  Speaker 4: the middle, But it's also interesting to see kind of
• 7:02
  Speaker 4: what the average is. And I would say the mean
• 7:04
  Speaker 4: is more of an average. So what you do with
• 7:07
  Speaker 4: the mean is you take all data points, add them together,
• 7:11
  Speaker 4: and so plus plus plus plus plus, and then you
• 7:13
  Speaker 4: divide it by how many data points there are in
• 7:16
  Speaker 4: that set to get the average number. So if you
• 7:18
  Speaker 4: added them all together, you'd end up with a really
• 7:21
  Speaker 4: high number maybe and a really low number, and then
• 7:23
  Speaker 4: there would be an average that comes out of that.
• 7:26
  Speaker 1: And so from my.
• 7:27
  Speaker 4: Perspective, to get a really good idea of what data
• 7:31
  Speaker 4: is looking like, I kind of want both of those
• 7:33
  Speaker 4: numbers because in a perfect world, both of those numbers
• 7:36
  Speaker 4: are really similar. But you might have smack bang in
• 7:39
  Speaker 4: the middle. The medium might be five, right, because you've
• 7:41
  Speaker 4: got ten data points and they go from one all
• 7:45
  Speaker 4: the way through to ten. Smack bang in the middle
• 7:47
  Speaker 4: happens to be five. What a dream, right. However, if
• 7:52
  Speaker 4: you had a more diverse data set where the lowest
• 7:55
  Speaker 4: numbers one and then five was still in the middle,
• 7:59
  Speaker 4: but then the last number was one hundred. If you
• 8:02
  Speaker 4: had divided all of those, your mean is going to
• 8:05
  Speaker 4: be higher, and that's going to give you a good
• 8:07
  Speaker 4: indicator of whether they're on par or not. So it's
• 8:11
  Speaker 4: just nice to know those things. And then the third
• 8:13
  Speaker 4: one I mentioned is the mode. And essentially the mode
• 8:16
  Speaker 4: is just the number that occurs the most. So you
• 8:19
  Speaker 4: might have ten data sets and five of them happen
• 8:21
  Speaker 4: to be the same number. That's the mode. It's just
• 8:24
  Speaker 4: the most common number to occur in a data set.
• 8:27
  Speaker 1: Gotcha. I actually cannot believe this is the first time
• 8:30
  Speaker 1: really understanding what that means. Median kind of seems a
• 8:33
  Speaker 1: bit useless, but it is a reason helpful.
• 8:36
  Speaker 4: But like we find that most surveys and most reports
• 8:39
  Speaker 4: will use the median because it seemed to be the average.
• 8:43
  Speaker 4: That's why when we talk about things like salary, I
• 8:46
  Speaker 4: don't particularly like the mean. I much prefer the median
• 8:49
  Speaker 4: because when we're talking about the mean and we've added
• 8:52
  Speaker 4: everything together, if I said, what's the average salary of
• 8:56
  Speaker 4: a female identifying person in Australia, right, you've got all
• 9:01
  Speaker 4: your CEOs, then you've got all of your stay at
• 9:03
  Speaker 4: home mums who don't particularly have a high income. But
• 9:07
  Speaker 4: we're not saying they don't have any value. We're just
• 9:09
  Speaker 4: talking about finances here. We add them all together and
• 9:12
  Speaker 4: then Beckett comes out as an average of about eighty
• 9:15
  Speaker 4: five thousand dollars. Right, that's not normal, Like, that's not
• 9:19
  Speaker 4: the normal income. Whereas if we lined everything up and
• 9:22
  Speaker 4: took you know, what is actually the middle of what
• 9:25
  Speaker 4: these people are earning, and what do female identifying people
• 9:28
  Speaker 4: in Australia actually earn, what does that look like? It's
• 9:33
  Speaker 4: more like sixty five thousand dollars sure, And that's a
• 9:35
  Speaker 4: really big difference, Like if we're making decisions based on data.
• 9:39
  Speaker 4: And this is why I think it's so important for
• 9:41
  Speaker 4: us to understand it, just so we know what's going on.
• 9:44
  Speaker 4: But it's so important that you know, like our government
• 9:47
  Speaker 4: takes this into consideration because if they're using the mean
• 9:50
  Speaker 4: or the median to make decisions about our healthcare or
• 9:53
  Speaker 4: what we can afford or what we can actually do
• 9:55
  Speaker 4: with our finances, there's a big difference when we're talking
• 9:59
  Speaker 4: about a cost of living crisis when it comes to
• 10:02
  Speaker 4: someone who earns eighty five thousand versus someone who earns
• 10:04
  Speaker 4: sixty five thousand, right, right, So if we aren't using
• 10:08
  Speaker 4: the right data point, or we're not looking at both
• 10:10
  Speaker 4: of them, we're actually doing people a disservice. That makes
• 10:14
  Speaker 4: so much sense, I hope so because I tried to
• 10:16
  Speaker 4: make it make sense.
• 10:17
  Speaker 1: Yeah, I really that's a great explanation. Be thank you
• 10:20
  Speaker 1: so much.
• 10:21
  Speaker 4: Tell me more about female identifying investors.
• 10:23
  Speaker 1: Speaking of median, the median trade size for female identifying
• 10:29
  Speaker 1: investors is four thousand and five dollars. That's big dog. Yeah,
• 10:34
  Speaker 1: that's pretty good. And the median portfolio size is ninety five,
• 10:39
  Speaker 1: nine hundred and ninety dollars. Now, VI, I want to know,
• 10:43
  Speaker 1: and maybe I should not as already, what's the difference
• 10:45
  Speaker 1: between trade and portfolio? Yeah?
• 10:47
  Speaker 4: Okay, so trade is how much they might so trade
• 10:51
  Speaker 4: each month. So you might go, hey, beck, I really
• 10:54
  Speaker 4: want to start investing. So trade is important when we
• 10:58
  Speaker 4: talk about So let's get a little bit deep for
• 11:00
  Speaker 4: a second. If you're an investor and you download any platform,
• 11:04
  Speaker 4: there's going to be usually some type of brokerage fee.
• 11:08
  Speaker 4: And brokerage fee is a fee that you pay for
• 11:10
  Speaker 4: your trade to be carried out. So let's say on average,
• 11:14
  Speaker 4: it's twenty bucks, so you sit down and go, V,
• 11:16
  Speaker 4: I really want to invest. However, if I'm investing twenty
• 11:20
  Speaker 4: dollars today, is paying twenty dollars for that privilege making
• 11:24
  Speaker 4: the total trade worth forty dollars?
• 11:26
  Speaker 1: Is that worth it? Absolutely not from my perspective.
• 11:29
  Speaker 4: So what a lot of people do is they kind
• 11:31
  Speaker 4: of bundle their money up. So you might have a
• 11:34
  Speaker 4: savings account to the side where you put money into
• 11:37
  Speaker 4: it each and every single month, and then when it
• 11:39
  Speaker 4: hits one thousand dollars, it hits two thousand dollars, you
• 11:42
  Speaker 4: invest that all in one go. That's what a trade is.
• 11:46
  Speaker 4: It's like a transaction essentially. So it's genuinely smarter to
• 11:51
  Speaker 4: have higher amounts per trade, which obviously there's a lot
• 11:55
  Speaker 4: of privilege in that because you need more money to
• 11:57
  Speaker 4: have a higher trade amount. But what that means is
• 12:00
  Speaker 4: it brings down the percentage of your brokerage fee. So
• 12:04
  Speaker 4: if you said I have twenty bucks to trade and
• 12:06
  Speaker 4: I go great, no worries. Your brokerage is twenty dollars,
• 12:10
  Speaker 4: that's one hundred percent of the fee, which means if
• 12:13
  Speaker 4: your money is then invested beck it has to make
• 12:16
  Speaker 4: another twenty dollars, so it's got a double in order
• 12:20
  Speaker 4: to break even for what it cost you to invest.
• 12:23
  Speaker 4: So that's not that sexy. But if I said to you,
• 12:26
  Speaker 4: all right, it's twenty dollars, but you've invested four grand,
• 12:29
  Speaker 4: you'd be like, that's fine. It's not going to take
• 12:31
  Speaker 4: that long for my four thousand dollar portfolio to return
• 12:34
  Speaker 4: twenty dollars and then some and so many times, and
• 12:38
  Speaker 4: I'm obviously wildly passionate about this, but so many times
• 12:42
  Speaker 4: people just forget about their brokerage and how much their
• 12:45
  Speaker 4: portfolio cost them. So you might look at a portfolio
• 12:47
  Speaker 4: and be like, well, I've got one thousand dollars invested.
• 12:49
  Speaker 4: Oh my god, it made me my first twenty dollars.
• 12:51
  Speaker 4: I'm making money. And you go, hold up, ut, how
• 12:53
  Speaker 4: much was your brokerage? Have we'd taken that into consideration,
• 12:56
  Speaker 4: Like have you made back what it cost you to
• 12:58
  Speaker 4: get in the door? So right, that's what a trade is.
• 13:01
  Speaker 4: And then total portfolio is the total amount that you
• 13:05
  Speaker 4: have invested, right, so from all the trades that have
• 13:08
  Speaker 4: added up. Okay, it's honestly, and obviously this is just
• 13:12
  Speaker 4: stuff we've never talked about. Beck, Like you didn't learn
• 13:14
  Speaker 4: this in school, so it makes sense. You don't get it, sure,
• 13:17
  Speaker 4: but it's pretty simple when you go, oh, what's a trade?
• 13:20
  Speaker 4: Oh you traded it? Yeah, all right, in the words
• 13:22
  Speaker 4: what's a portfolio, it's everything you own?
• 13:24
  Speaker 1: Oh okay, like nicely scary exactly.
• 13:27
  Speaker 4: And I feel like the more we talk about this stuff,
• 13:29
  Speaker 4: and this is why obviously we do do so many
• 13:32
  Speaker 4: investing episodes, I just want it to make sense so
• 13:35
  Speaker 4: that you feel super comfortable with it. And obviously this
• 13:38
  Speaker 4: topic is about constructing your perfect portfolio and to me, spoiler,
• 13:42
  Speaker 4: there's no such thing, but we're going to help you
• 13:44
  Speaker 4: feel comfortable with that idea. I just think it's so
• 13:47
  Speaker 4: important to have these conversations because they make me feel
• 13:51
  Speaker 4: so much more confident in my own portfolio. But also
• 13:54
  Speaker 4: I can see you go, ah, Vy, that actually makes sense,
• 13:58
  Speaker 4: Like this makes sense, and I think I could do it,
• 14:00
  Speaker 4: and that's my favorite thing.
• 14:02
  Speaker 1: Yeah. Absolutely, Well, my last point for that one was
• 14:05
  Speaker 1: that fifty five percent of people do prefer stable returns.
• 14:09
  Speaker 4: I'm not surprised by that.
• 14:10
  Speaker 1: Yeah, I think that's so that's like more of a
• 14:12
  Speaker 1: comfy sort of thing, like it's maybe like low, but
• 14:15
  Speaker 1: it's stable, and it's consistent women take.
• 14:17
  Speaker 4: Less risks than men. At the end of the day,
• 14:20
  Speaker 4: women are less likely to want risky a portfolio. However,
• 14:24
  Speaker 4: I think that that's also about education, because as we're
• 14:28
  Speaker 4: going to get into the more educated you are, often
• 14:32
  Speaker 4: the more likely you are to take on very comfortable risk.
• 14:35
  Speaker 1: Sure, so we're not.
• 14:36
  Speaker 4: Saying go invest in bitcoin or cryptocurrencies or things that
• 14:39
  Speaker 4: are inherently very risky. What risk often means is that
• 14:43
  Speaker 4: you're putting more of your money into the share market
• 14:46
  Speaker 4: as opposed to just holding it in cash. And the
• 14:49
  Speaker 4: second you can understand that, the more likely you are
• 14:52
  Speaker 4: to go, actually, maybe I am a growth investor. Maybe
• 14:54
  Speaker 4: I am a little bit aggressive.
• 14:56
  Speaker 1: And you didn't know it. Okay, I really like that. Actually,
• 15:00
  Speaker 1: So the next thing, I'm going to go through the
• 15:02
  Speaker 1: top five types of investments for female identifying people that
• 15:06
  Speaker 1: are outside of SUPER. So this does not include super.
• 15:09
  Speaker 4: No, and also on that super is not an investment.
• 15:13
  Speaker 4: Super is a tax structure in which you invest in.
• 15:16
  Speaker 4: You can invest the money that is sitting in that
• 15:19
  Speaker 4: tax structure, and I could not be more passionate about
• 15:22
  Speaker 4: that because it's your money, right, it's eleven percent now Beck,
• 15:25
  Speaker 4: do you know how many people listening to this podcast
• 15:27
  Speaker 4: have still not pulled their finger out and how to
• 15:29
  Speaker 4: look at their own portfolios to be like, Oh, I
• 15:32
  Speaker 4: wonder if this is working for me. If you're listening
• 15:35
  Speaker 4: to this episode, this is just like a little bit
• 15:37
  Speaker 4: of a side note personal attack to you.
• 15:40
  Speaker 1: I do love you.
• 15:40
  Speaker 4: That is why we are saying this right now. That
• 15:43
  Speaker 4: is why I think it's really important. But if you
• 15:45
  Speaker 4: are listening to us because you've clicked on an episode
• 15:48
  Speaker 4: to learn about how to construct your perfect portfolio, but
• 15:51
  Speaker 4: you haven't taken the time to go and look at
• 15:54
  Speaker 4: what portfolio your superannuation is sitting in, turn off this episode,
• 15:58
  Speaker 4: go look at your super. Don't do that. Listen to
• 16:01
  Speaker 4: the rest of this episode, and then go look at
• 16:03
  Speaker 4: your super because that is eleven percent now of your income. Beck,
• 16:08
  Speaker 4: Are you saving or investing eleven percent of your income
• 16:10
  Speaker 4: every single month?
• 16:11
  Speaker 1: I wish you are in super? Oh true, you are
• 16:15
  Speaker 1: in Super.
• 16:16
  Speaker 4: So like, why aren't we caring more about it? It
• 16:19
  Speaker 4: is so much money. It is your money. Go and
• 16:22
  Speaker 4: take control of it. Go and look at what it is.
• 16:24
  Speaker 4: Do you know what the most And I have said
• 16:26
  Speaker 4: this before a million times, but like, if anything, I
• 16:29
  Speaker 4: am a broken record.
• 16:30
  Speaker 2: Beck.
• 16:30
  Speaker 4: Do you know what the most underutilized resource I believe
• 16:33
  Speaker 4: is our huts? Oh honey, yes, yes, but also the
• 16:40
  Speaker 4: call center superannuation funds.
• 16:44
  Speaker 1: Iced to be a call center at super I know,
• 16:45
  Speaker 1: but like your fun I would call you. It's so
• 16:48
  Speaker 1: nice thing, But like you had access.
• 16:50
  Speaker 4: To all the information to tell me what my super
• 16:53
  Speaker 4: fund was doing, what it was invested in, what my
• 16:55
  Speaker 4: risk profile looked like, how that worked, and if you
• 16:58
  Speaker 4: couldn't answer the question, you'd send.
• 16:59
  Speaker 1: Me someone who could.
• 17:01
  Speaker 4: Sure you're paying the fees on your super fund so
• 17:03
  Speaker 4: that you can access that, and so technically it's free
• 17:06
  Speaker 4: to call because you can't not pay your super fund fees.
• 17:10
  Speaker 4: Yollo call them. Abuse that system. Make sure you know
• 17:14
  Speaker 4: it inside out, because at the end of the day,
• 17:15
  Speaker 4: it's your money. And to be really dramatic, but also
• 17:18
  Speaker 4: it's not dramatic, it's just true. The difference between you
• 17:21
  Speaker 4: not making a decision and not looking at your super
• 17:24
  Speaker 4: today and just retiring is hundreds of thousands of dollars.
• 17:28
  Speaker 4: You can be hundreds of thousands of dollars better off
• 17:30
  Speaker 4: because I told you to be true. Credit for that.
• 17:35
  Speaker 1: I love that I love that. I'm gonna personally give
• 17:37
  Speaker 1: you all the credit if that's okay, thank you, thank you.
• 17:39
  Speaker 4: So I would like to personally take.
• 17:41
  Speaker 1: All the credit.
• 17:42
  Speaker 4: Yeah, I have perfose working out so well for us.
• 17:45
  Speaker 1: It's great transaction, all right. So v fifty four percent
• 17:50
  Speaker 1: of Australian shares held directly.
• 17:53
  Speaker 4: Oh okay, you know what, I'm not surprised by that.
• 17:56
  Speaker 4: Oh I'm not surprised by that. Like, if that's the
• 17:58
  Speaker 4: I guess, let's say the will one investment for female
• 18:02
  Speaker 4: identifying people held outside of super I feel like that
• 18:05
  Speaker 4: makes the most sense because, to be honest, that's the like,
• 18:09
  Speaker 4: I don't know, what would you say, It's like the
• 18:11
  Speaker 4: gateway drug of the investment world because they're the easiest
• 18:13
  Speaker 4: to get your hands on.
• 18:14
  Speaker 1: Yeah yeah, what's next?
• 18:17
  Speaker 4: Okay?
• 18:17
  Speaker 1: So next is we have thirty five percent in residential
• 18:21
  Speaker 1: investment property.
• 18:22
  Speaker 4: Who's surprised? Zero Populian dream? Yeah mummy, nice? What's next?
• 18:30
  Speaker 1: Okay? Next we have thirty percent in term deposits.
• 18:35
  Speaker 4: Not surprised. Term deposits, especially at this point in time
• 18:38
  Speaker 4: because of what our economy is doing, very attractive. Yeah,
• 18:42
  Speaker 4: I'm not saying go invest in them, but they have
• 18:44
  Speaker 4: become increasingly attractive. The other thing that's increased in attractiveness recently,
• 18:49
  Speaker 4: becka part.
• 18:50
  Speaker 1: You we did not plan that we did so crazy
• 18:55
  Speaker 1: that we haven't been each other looking good.
• 18:58
  Speaker 4: Okay, sorry, sorry, is just high interest savings accounts. Ah,
• 19:03
  Speaker 4: you're better looking than a high interest savings account.
• 19:05
  Speaker 1: Back, thank you. That is so the nicest thing anyone's
• 19:07
  Speaker 1: ever said to me.
• 19:09
  Speaker 2: I know.
• 19:10
  Speaker 1: Okay, Next, we have thirteen percent in ETFs. I'm surprised
• 19:13
  Speaker 1: by that, and eleven percent in international shares held directly,
• 19:17
  Speaker 1: I'm not surprised by that.
• 19:18
  Speaker 3: Hah.
• 19:18
  Speaker 4: So I'm surprised by the exchange traded funds being only
• 19:22
  Speaker 4: at thirteen percent because if you look at our community,
• 19:25
  Speaker 4: a lot of people when you start an investing conversation,
• 19:28
  Speaker 4: you'll say, well, you know, Beck, you've got your first
• 19:31
  Speaker 4: thousand dollars. One thousand dollars to get straight into the
• 19:35
  Speaker 4: share market is very easy. From my perspective. What you
• 19:38
  Speaker 4: need to do is have a think about there's like
• 19:41
  Speaker 4: a laundry list of things. We've done episodes on this before.
• 19:43
  Speaker 4: But what you going to do is think about your values.
• 19:46
  Speaker 4: And I know that sounds really fluffy, but you actually
• 19:48
  Speaker 4: need to think about your values. You go, well, what
• 19:50
  Speaker 4: kind of investment do you want pick? Like you live
• 19:53
  Speaker 4: over Brunswick Way. Yeah, yeah, hippy, dippy, you're fine. You're
• 19:57
  Speaker 4: probably going to be a little bit more ethical than
• 19:59
  Speaker 4: the a Bridge bear.
• 20:00
  Speaker 1: So like we're going to start thinking, like, do you
• 20:02
  Speaker 1: want to invest in BHP?
• 20:04
  Speaker 3: What's that?
• 20:05
  Speaker 1: It's the oil company?
• 20:06
  Speaker 4: Oh?
• 20:07
  Speaker 1: I do not know that? No?
• 20:09
  Speaker 4: No, I say no because I know you don't know it.
• 20:11
  Speaker 4: Do you want to invest in like gambling or tobacco
• 20:14
  Speaker 4: or like, you know, all of those things that you
• 20:16
  Speaker 4: actually spend a lot of money on?
• 20:19
  Speaker 1: Like you know, I should say no, but I wouldn't mind.
• 20:21
  Speaker 4: Yeah, you wouldn't mind that. I think it's really important
• 20:25
  Speaker 4: to talk about your ethics first and like do you
• 20:27
  Speaker 4: want to hold those things or not? Yeah, let's say
• 20:30
  Speaker 4: you say no and you want to go down the
• 20:32
  Speaker 4: route of a more ethical portfolio, and you go, all right,
• 20:34
  Speaker 4: well I want it to be ethical. All right, We've
• 20:36
  Speaker 4: got some guidelines here that's really good. Do you want
• 20:39
  Speaker 4: to pick your own shares? In that case, if you
• 20:41
  Speaker 4: do want to pick your own shares I'm going to
• 20:43
  Speaker 4: be real blunt and say to get diversification on an
• 20:48
  Speaker 4: entire portfolio with just one thousand dollars is incredibly hard
• 20:53
  Speaker 4: because of the purchase price shares exist at. So to
• 20:57
  Speaker 4: buy a NAB or like a bank share of any kind,
• 21:01
  Speaker 4: you're looking at more than fifty dollars per trade. Sure,
• 21:05
  Speaker 4: So what are you going to do? Buy one share
• 21:07
  Speaker 4: and then another share in a different bank, and then
• 21:09
  Speaker 4: another share in a few different asset classes to get diversification,
• 21:13
  Speaker 4: in which case you only have one share per asset.
• 21:17
  Speaker 4: Or are you going to look at an ETF, which
• 21:20
  Speaker 4: is an exchange traded fund, which is essentially a big
• 21:22
  Speaker 4: basket of shares that a fund manager has picked and
• 21:26
  Speaker 4: put in the basket, and you go, I want to
• 21:28
  Speaker 4: own that because it gives you instant diversification. So I'm
• 21:31
  Speaker 4: not making recommendations here. I'm just very surprised to hear
• 21:35
  Speaker 4: that of all Australian female identifying investors, only thirteen percent
• 21:42
  Speaker 4: of them are holding ETFs. Yeah, right, because that ETF
• 21:48
  Speaker 4: is basically instant diversification. And if you look at our community,
• 21:52
  Speaker 4: I would say that's one of the most popular.
• 21:55
  Speaker 1: Asset classes to talk about.
• 21:57
  Speaker 4: Like, people aren't saying, oh, should I buy this particular share,
• 22:01
  Speaker 4: beck they're saying, oh, have you used this ETF? Are
• 22:05
  Speaker 4: you with Banguard? Are you with beta shares? What does
• 22:07
  Speaker 4: this look like? And I feel like that's the conversation
• 22:10
  Speaker 4: we're having the most as opposed to what shares should
• 22:13
  Speaker 4: we hold? Directly in saying that, let's go back to
• 22:17
  Speaker 4: the data that you gave me before you said the
• 22:19
  Speaker 4: average age's forty seven. Now, I'm not so surprised that
• 22:23
  Speaker 4: an ETF isn't as popular, because if you're forty seven,
• 22:27
  Speaker 4: that's not old. Like I'm not throwing you under a bus.
• 22:30
  Speaker 4: But the entry point in the investment world was very
• 22:34
  Speaker 4: different when you started investing. Let's say, if you started
• 22:37
  Speaker 4: investing in your twenties and you're now in your forties.
• 22:40
  Speaker 1: Sure, so it wasn't an.
• 22:42
  Speaker 4: ETF, and ETF was much harder to get into, whereas
• 22:45
  Speaker 4: a direct share might be something that your parents taught
• 22:48
  Speaker 4: you to buy or they owned and you just replicated
• 22:50
  Speaker 4: their portfolio. So I'd be interested to hear what you think.
• 22:55
  Speaker 4: And I know what's coming up. I just can't see
• 22:57
  Speaker 4: the data, but I reckon when you tell me about
• 22:59
  Speaker 4: these younger investors, I think that the stats for ETFs
• 23:03
  Speaker 4: are going to be higher.
• 23:04
  Speaker 1: Let's have a little word. Well, just really quickly, I
• 23:09
  Speaker 1: want to say, we do have an episode Basics of
• 23:11
  Speaker 1: Investing that we did a few months ago, many.
• 23:13
  Speaker 4: Investing things and so many low key keep an eye
• 23:17
  Speaker 4: out because I am dropping an investing course really soon. Yes, true,
• 23:21
  Speaker 4: true money master class. We're going to do an investing
• 23:24
  Speaker 4: master class. And you know what's kind of embarrassing because
• 23:27
  Speaker 4: I've been being asked for this for years and I
• 23:31
  Speaker 4: haven't done it.
• 23:32
  Speaker 1: Hey, that's quite all right, exactly right. So just in
• 23:36
  Speaker 1: case you're listening and you're like, I don't know what
• 23:38
  Speaker 1: any of these things mean, I.
• 23:39
  Speaker 4: Actually just want okay, like this is actually one of
• 23:42
  Speaker 4: the reasons I retired as a financial advisor beck because
• 23:45
  Speaker 4: I legally couldn't have done this master class if I
• 23:49
  Speaker 4: was licensed to.
• 23:50
  Speaker 1: Give follow advice.
• 23:52
  Speaker 4: Yeah, I had to wait so as much as since. Yeah,
• 23:54
  Speaker 4: it wasn't because I was being lazy. But no, sounds
• 23:57
  Speaker 4: more clickbaity if I say it that way, Hey.
• 24:00
  Speaker 1: Little bit, just kidding, No.
• 24:01
  Speaker 4: Carry on, carry on, What have you got for me?
• 24:03
  Speaker 4: Tell me about next genn invest So.
• 24:05
  Speaker 1: Yes, we are going to touch on next gen investors
• 24:07
  Speaker 1: now between eighteen and twenty four year olds, tiny babies.
• 24:10
  Speaker 1: So first up, just a baby, just honey, baby. The
• 24:13
  Speaker 1: average age is twenty one baby, so sweet. The median
• 24:18
  Speaker 1: trade size is five two and fifty nine dollars. That's
• 24:22
  Speaker 1: that's higher. It's very exciting. That's higher than women on average.
• 24:26
  Speaker 1: That is so big dog energy. Yeah, that is very
• 24:28
  Speaker 1: very impressive. And the median portfolio size is forty five
• 24:32
  Speaker 1: thousand and five hundred dollars for a.
• 24:34
  Speaker 4: Twenty one year old. Yeah, isn't that lit?
• 24:38
  Speaker 1: That is so good.
• 24:39
  Speaker 4: That's like literally half of what the average is for women.
• 24:43
  Speaker 1: They've got a bright future.
• 24:44
  Speaker 4: Give me twenty years. I want to see this data again.
• 24:47
  Speaker 4: It's gonna be so good.
• 24:49
  Speaker 1: Curious to know what the high if that's the middle, yep,
• 24:52
  Speaker 1: that I'm curious. Not the highest is.
• 24:53
  Speaker 4: Oh my gosh, I see so many We ask a
• 24:56
  Speaker 4: lot of people in our community like what do you earn?
• 24:58
  Speaker 4: What do you spend? What do you earn? What do
• 24:59
  Speaker 4: you like?
• 25:00
  Speaker 1: All of that?
• 25:01
  Speaker 4: And I think it's so interesting, Like there are a
• 25:05
  Speaker 4: couple of people and it blows my mind. And do
• 25:07
  Speaker 4: you know what, Beck, there's a whole heap of privilege
• 25:09
  Speaker 4: that plays into it.
• 25:10
  Speaker 1: Sure, but we've had them on the show before.
• 25:12
  Speaker 4: If you listen to our money diaries where young girls
• 25:15
  Speaker 4: are like, yeah, I'm twenty one and they have one
• 25:17
  Speaker 4: hundred and fifty thousand dollars an investment portfolio.
• 25:20
  Speaker 1: So what Yeah, how how did we get?
• 25:23
  Speaker 4: Is it black magic?
• 25:25
  Speaker 1: Yes, it must be. I don't think it could be
• 25:27
  Speaker 1: anything else.
• 25:27
  Speaker 4: Was it from your trust fund? It's it's not there.
• 25:31
  Speaker 4: Actually usually it's not, so to give them credit, it's
• 25:34
  Speaker 4: really not, of course.
• 25:35
  Speaker 1: So the top five investments outside of super for this bracket.
• 25:40
  Speaker 4: I'm excited. I'm excited.
• 25:41
  Speaker 1: Tell me some of your predictions might be right.
• 25:44
  Speaker 4: So first, I'm actually really excited to hear the cause
• 25:46
  Speaker 4: I love being right.
• 25:49
  Speaker 1: So forty three percent is held in Australian shares held directly.
• 25:54
  Speaker 4: Okay, that's a little bit lower.
• 25:58
  Speaker 1: Thirty three percent in Yes, yes, that was correct. Yeah,
• 26:01
  Speaker 1: I told you you were absolutely spot off.
• 26:04
  Speaker 4: I feel like the tiny babies I eat. Most people
• 26:06
  Speaker 4: who listen. Do you know what I was about to say,
• 26:08
  Speaker 4: I e most people who listen to our show. But
• 26:10
  Speaker 4: do you know the average age of our listener? I'm
• 26:12
  Speaker 4: going to say forty, no, fifty, No, I don't know.
• 26:16
  Speaker 4: There's one point six million of you. So the average
• 26:20
  Speaker 4: age is actually and it's a it's not an average
• 26:22
  Speaker 4: age because I don't have the media and I actually
• 26:24
  Speaker 4: just have like the mean, which is all the numbers
• 26:27
  Speaker 4: added together and then divided by the total number of listeners,
• 26:30
  Speaker 4: and that is twenty nine.
• 26:32
  Speaker 1: Oh really yeah, isn't it good? Yeah, so if you.
• 26:34
  Speaker 4: Like took it for a bracket, it's between the ages
• 26:36
  Speaker 4: of twenty eight and thirty four. So cool. That is
• 26:39
  Speaker 4: really coollection because I thought it was just tiny babies
• 26:41
  Speaker 4: listening because so many times we talk to these like
• 26:44
  Speaker 4: super young, super passionate like investors who am like, how
• 26:48
  Speaker 4: are you better than I ever was?
• 26:50
  Speaker 1: Yeah? And yeah, no, it's just people like uspeck well,
• 26:54
  Speaker 1: welcome to all our twenty nine year olds and everyone else.
• 26:57
  Speaker 1: That's hello friends, Love you, qudy nine, Love you guys.
• 27:00
  Speaker 1: Next up, we have thirty two percent in residential property.
• 27:04
  Speaker 4: That's interesting because I'm pretty sure you told me that
• 27:07
  Speaker 4: the average of female investors is thirty five, so like,
• 27:11
  Speaker 4: that's not that far off the mark. True, Yes, impressive.
• 27:15
  Speaker 1: The difference here, I think is that there's thirty five
• 27:17
  Speaker 1: percent of residential investment property for maybe the yeah okay
• 27:22
  Speaker 1: older generation. Yeah, ok, actually just maybe their first homes.
• 27:27
  Speaker 1: This is probably first homes. I would say, I could go.
• 27:29
  Speaker 4: On around here where I do not believe that your
• 27:31
  Speaker 4: family home is an investment. But we're going to save
• 27:33
  Speaker 4: that one for another day.
• 27:35
  Speaker 1: Yes, absolutely. And then we have thirty one percent in crypto,
• 27:38
  Speaker 1: which is interesting, Big Dog Energy. Alrightyes, I would.
• 27:41
  Speaker 4: Like to see your portfolios. I'm always so interested back
• 27:44
  Speaker 4: when it comes to people who buy crypto. No shade, absolutely,
• 27:47
  Speaker 4: no shade. As you know, I don't care what you
• 27:49
  Speaker 4: invest in. I just care that it comes from an
• 27:52
  Speaker 4: educated place. I care that it is in line with
• 27:55
  Speaker 4: your values and that you are feeling really confident with
• 27:58
  Speaker 4: the decision that you've made and you've like did everything.
• 28:01
  Speaker 4: But the fact that crypto is one of the riskiest assets,
• 28:04
  Speaker 4: knowing that so many women and women are usually more conservative,
• 28:08
  Speaker 4: to be a little bit stereotypical. To know that so
• 28:12
  Speaker 4: many people who are investing in crypto before they're investing
• 28:15
  Speaker 4: in shares which are inherently less risky, right, blows my mind.
• 28:20
  Speaker 1: Yes, very interesting. I find that very interesting. And then lastly,
• 28:25
  Speaker 1: V we have twenty five percent in international shares held directly.
• 28:29
  Speaker 4: How cool.
• 28:30
  Speaker 1: Yeah, wow, I'm really really excited I actually really like
• 28:34
  Speaker 1: this of these people.
• 28:35
  Speaker 4: I think it's an interesting, I guess thing to go
• 28:38
  Speaker 4: through and just talk about. Do you know what the
• 28:40
  Speaker 4: next gen investors? Give them another ten years, they're going
• 28:43
  Speaker 4: to be running rings around every other.
• 28:45
  Speaker 1: Person, and quite frankly, they can.
• 28:48
  Speaker 4: I will let them.
• 28:49
  Speaker 1: I will let them. I'm weaving them full control.
• 28:51
  Speaker 4: We'll give them the podium. They can have this podcast all.
• 28:54
  Speaker 4: They can take it, absolutely anything they want.
• 28:56
  Speaker 1: All right, beer, let's go to a really quick break.
• 28:58
  Speaker 4: Let's have a quick break, eat a coffee frape, and
• 29:01
  Speaker 4: on the flip side, we're going to dive into exactly
• 29:04
  Speaker 4: why I always say that I'm a conservative but aggressive investor.
• 29:08
  Speaker 4: Don't go anywhere.
• 29:15
  Speaker 1: Okay, V we are back. You were saying at the
• 29:16
  Speaker 1: start that risk in investing is multifaceted. Let's discuss that
• 29:20
  Speaker 1: a little.
• 29:21
  Speaker 4: Bit multifaceted risk that feels like it makes it much
• 29:25
  Speaker 4: smarter than it actually is. I like it. So we're
• 29:28
  Speaker 4: a multifaceted tongue twister. No, it just makes me feel intelligent.
• 29:32
  Speaker 4: We should use it more often. Yes, all right, So
• 29:35
  Speaker 4: let's talk about risks. So risk essentially, like if I
• 29:38
  Speaker 4: drew a little risk reward chart the more risk you
• 29:41
  Speaker 4: take on, the more you.
• 29:43
  Speaker 1: Could potentially lose.
• 29:45
  Speaker 4: So we have four different recognized asset classes here in Australia,
• 29:49
  Speaker 4: and I'm not going to get into every single nuanced
• 29:51
  Speaker 4: about each and every single one of them. However, we
• 29:54
  Speaker 4: have cash, essentially the money in your bank. We have
• 29:57
  Speaker 4: fixed interest, which is things like term deposits, high interest
• 30:01
  Speaker 4: savings accounts where you lock your money away, and bonds.
• 30:05
  Speaker 4: We have property, which is the great Australian dream. And
• 30:08
  Speaker 4: then we have shares, which arguably is remote perspective, the
• 30:11
  Speaker 4: sexiest of the four asset classes. Right. So you've got
• 30:15
  Speaker 4: those four asset classes, and a good portfolio is made
• 30:19
  Speaker 4: up of a good mix of all four of those.
• 30:21
  Speaker 4: So when you're talking to the idea of risk, the
• 30:25
  Speaker 4: more risk you take on, the more you could potentially return,
• 30:29
  Speaker 4: but as we've said, the more you could potentially lose.
• 30:32
  Speaker 4: So we know in Australia beck that the lowest risk
• 30:35
  Speaker 4: asset class is technically cash, right, so the cash in
• 30:38
  Speaker 4: your bank, like, you're not necessarily going to lose it.
• 30:41
  Speaker 4: In fact, we live in Australia and we have government
• 30:44
  Speaker 4: guaranteed bank accounts, which means, hypothetically, if the world flipped
• 30:49
  Speaker 4: upside down and your bank went down, Beck and it
• 30:51
  Speaker 4: became completely bankrupt. The government guarantees that they will give
• 30:55
  Speaker 4: you back up to two hundred and fifty thousand dollars
• 30:58
  Speaker 4: of what you've got in your savings count. So that
• 31:01
  Speaker 4: feels pretty comfy, right, Yeah, So if like your bank
• 31:03
  Speaker 4: for some reason went absolutely down, the gurglar, it's all right,
• 31:08
  Speaker 4: the government's got you back.
• 31:09
  Speaker 1: That is so cool. I did not know that.
• 31:11
  Speaker 4: Very cool. But also, let's be honest, if one of
• 31:14
  Speaker 4: the big four banks goes down, bed, I promise there
• 31:17
  Speaker 4: is so much more to worry about, right than your savings.
• 31:21
  Speaker 4: And I know that that sounds dramatic, but if one
• 31:23
  Speaker 4: of the banks is going down, her economy is absolutely rancid.
• 31:28
  Speaker 4: And I know, and this hasn't happened before, but I
• 31:32
  Speaker 4: can almost guarantee that if one of the big banks
• 31:35
  Speaker 4: was going to go down because of how much it
• 31:36
  Speaker 4: props up the economy, the government would basically jump in,
• 31:40
  Speaker 4: give them a little bit of a life raft and
• 31:42
  Speaker 4: make sure that that didn't happen because of how impactful
• 31:44
  Speaker 4: those big four banks are on our economy. Right, But
• 31:49
  Speaker 4: in saying that makes us reel really safe The flip
• 31:52
  Speaker 4: side of cash, though, is that a dollar today is
• 31:55
  Speaker 4: not worth a dollar tomorrow. And we know this because
• 31:58
  Speaker 4: of inflation. As you know inflation, and we knew when
• 32:01
  Speaker 4: we got kicked in the absolute guts when our hex
• 32:04
  Speaker 4: and help debts.
• 32:05
  Speaker 1: Went up by seven point one percent.
• 32:08
  Speaker 4: Inflation's really high at the moment, and that essentially means
• 32:11
  Speaker 4: that what we could buy on this day last year, Beck,
• 32:14
  Speaker 4: is more than what we could buy today. And essentially
• 32:17
  Speaker 4: CPI or consumer Pricing Index is essentially where, in the
• 32:23
  Speaker 4: most simplest terms, a whole heap of economists they go, Beck,
• 32:26
  Speaker 4: let's go shopping, and they have a basket of goods
• 32:29
  Speaker 4: just from woolies or coals, and they go and fill
• 32:31
  Speaker 4: their basket full of all of these essentials and then
• 32:34
  Speaker 4: they go, what does this cost? And last year it
• 32:36
  Speaker 4: might have cost thirty five dollars and this year it
• 32:38
  Speaker 4: might cost forty five dollars. So that's the increase in
• 32:42
  Speaker 4: consumer Pricing Index or CPI or inflation. How much stuff
• 32:47
  Speaker 4: is going up, right, So it means that if you're
• 32:50
  Speaker 4: going to put all your money in cash and go,
• 32:52
  Speaker 4: do you know what the other asset classes real risky?
• 32:55
  Speaker 4: I'm not so sure about them. It means that because inflation,
• 33:00
  Speaker 4: when you see you went up by seven point one percent,
• 33:03
  Speaker 4: you would need to be making on your savings account
• 33:05
  Speaker 4: at least seven point one percent to have the same
• 33:08
  Speaker 4: amount of money that you had last year. We're not
• 33:11
  Speaker 4: saying that if you dumped ten grand in a savings account,
• 33:14
  Speaker 4: you won't have it. Next year. You'll have ten grand,
• 33:17
  Speaker 4: it will stay identical. But to purchase the same amount
• 33:20
  Speaker 4: of stuff that you could have purchased last year with
• 33:23
  Speaker 4: ten grand, you're going to need ten thousand and seven
• 33:26
  Speaker 4: hundred dollars because it's increased by seven percent. Does that
• 33:29
  Speaker 4: make sense?
• 33:30
  Speaker 1: That does make sense.
• 33:30
  Speaker 4: So you're going to need more, Yeah, because unfortunately the
• 33:34
  Speaker 4: world is increasing in price, and ten grand today is
• 33:38
  Speaker 4: not worth what it is tomorrow. And that means that, unfortunately,
• 33:42
  Speaker 4: if you're going to have all of your assets or
• 33:44
  Speaker 4: all of your money tied up in cash, it's going
• 33:47
  Speaker 4: to cost you more over the long term, and you're
• 33:49
  Speaker 4: actually shooting yourself in the foot, which is not that sexy. Right,
• 33:53
  Speaker 4: then we've got and we're not going to go too
• 33:55
  Speaker 4: much into it, but bonds and fixed interests and stuff
• 33:57
  Speaker 4: like that higher return but also relatively stable, and it's
• 34:02
  Speaker 4: going to depend on what type of asset class you
• 34:04
  Speaker 4: get into. Then we've got property, the Great Australian dream.
• 34:07
  Speaker 4: It's not going to go up in the same way
• 34:09
  Speaker 4: that it has over the last thirty years. But that's
• 34:11
  Speaker 4: absolutely okay because it doesn't mean it's a bad asset class.
• 34:14
  Speaker 4: It means we just need to be smart about what
• 34:15
  Speaker 4: we're purchasing and where we're purchasing. And as I've said before,
• 34:19
  Speaker 4: we are only talking about that in investment terms. I'm
• 34:22
  Speaker 4: not talking about your first house or your first apartment.
• 34:24
  Speaker 4: To me, that is a hygiene factor, not that you
• 34:27
  Speaker 4: need to have one. Beck I don't think that anyone
• 34:29
  Speaker 4: needs to purchase property if they don't want to. Renting
• 34:32
  Speaker 4: is totally acceptable as an outcome for putting a roof
• 34:36
  Speaker 4: over your head. Like, it doesn't matter if you own
• 34:38
  Speaker 4: property or not, that's not the point. But if you
• 34:41
  Speaker 4: choose to buy a property to live in, that's not
• 34:43
  Speaker 4: an investment because if you've chosen it to be an investment,
• 34:48
  Speaker 4: you would have to sell it for that money to
• 34:50
  Speaker 4: actually have an impact on your life. So don't get
• 34:54
  Speaker 4: me wrong, it's an absolute privilege to pay off a
• 34:56
  Speaker 4: mortgage completely and not have to be paying rent each
• 34:58
  Speaker 4: in every single month. But we also need to look
• 35:01
  Speaker 4: at the flip side of that, where if you go, yeah,
• 35:03
  Speaker 4: but it'll increase in value. That's that old school concept
• 35:07
  Speaker 4: of downsizing.
• 35:08
  Speaker 1: Right.
• 35:09
  Speaker 4: It's like their stereotypical two lawyers. They get married, but
• 35:13
  Speaker 4: they have a lot of income. They go by the
• 35:15
  Speaker 4: biggest house in a very fancy suburb. Right, they work
• 35:18
  Speaker 4: until they retire. They retire at the ripe old age
• 35:21
  Speaker 4: of sixty five years early. You can see the lawyers
• 35:24
  Speaker 4: a right, big dog.
• 35:24
  Speaker 1: Right.
• 35:25
  Speaker 4: Yeah, their property is now worth like five million dollars, oh,
• 35:28
  Speaker 4: big dog. But all their money is tied up in
• 35:31
  Speaker 4: that five million dollar property because it was a big
• 35:33
  Speaker 4: mortgage and they've spent their entire lives paying that mortgage off.
• 35:36
  Speaker 4: Right for them to live comfortably in retirement, because they've
• 35:41
  Speaker 4: used their family home as their main asset, you know
• 35:44
  Speaker 4: what they have to do. They have to sell their
• 35:46
  Speaker 4: family home because you don't just have five million dollars.
• 35:49
  Speaker 4: Like your house might be worth five million dollars, but
• 35:52
  Speaker 4: if you've worked your entire life to build up this
• 35:54
  Speaker 4: beautiful big home, doesn't matter if it's the big or small.
• 35:57
  Speaker 4: This is just the example I'm using, you worked your
• 35:59
  Speaker 4: whole life for this, right, You've built it up, you've
• 36:02
  Speaker 4: done all of this stuff, and you're so excited about it.
• 36:05
  Speaker 4: But now it's all designed the way that you want
• 36:08
  Speaker 4: it designed, and you've brought up your kids in there,
• 36:11
  Speaker 4: and now your grandkids come over. For you to have
• 36:13
  Speaker 4: a comfortable retirement, you have to sell that house. You
• 36:15
  Speaker 4: have to move potentially into a different suburb because you
• 36:18
  Speaker 4: can no longer afford the suburb. While still having retirement savings,
• 36:22
  Speaker 4: you might go and buy a house for two million
• 36:24
  Speaker 4: dollars in a different area, and now you have access
• 36:27
  Speaker 4: to the additional cash to retire comfortably. So from my perspective, Beck,
• 36:32
  Speaker 4: why did we save all our money and invest it
• 36:35
  Speaker 4: technically into this big family home for us to then
• 36:38
  Speaker 4: dispose of it if it is our one favorite true asset.
• 36:42
  Speaker 1: Like if you've worked your.
• 36:43
  Speaker 4: Entire life for your dream family home but all your
• 36:45
  Speaker 4: money is tied up in it, well, do you want
• 36:48
  Speaker 4: to have to throw your family home down the drain
• 36:50
  Speaker 4: so that you move to a smaller place Like, Don't
• 36:52
  Speaker 4: get me wrong, that's a very valid investment strategy if
• 36:56
  Speaker 4: that's aligned to your family values and what you want
• 36:58
  Speaker 4: to create. Telling you right now, I have only just
• 37:02
  Speaker 4: finished renovating. It's not even finished. Don't even start me
• 37:05
  Speaker 4: my first home. I'm so excited about it, but I
• 37:09
  Speaker 4: also know that it's not my forever home. However, having
• 37:14
  Speaker 4: gone through this whole process of picking things and doing
• 37:16
  Speaker 4: my own bathrooms and oh my god, I got to
• 37:18
  Speaker 4: pick the carpets and the lights in my bedroom. If
• 37:21
  Speaker 4: I get to my big family home one day and
• 37:24
  Speaker 4: I do that, I don't want to sell that. I
• 37:26
  Speaker 4: want to bring my kids up in that house. I
• 37:28
  Speaker 4: would want my kids to bring home their kids and
• 37:30
  Speaker 4: that's their grandparents' house. Do you know what I mean? Like,
• 37:33
  Speaker 4: everybody has different values, and I'm not saying that you
• 37:35
  Speaker 4: need the same ones as mine, But I think that
• 37:38
  Speaker 4: we need to reframe this idea that your family home
• 37:41
  Speaker 4: is an investment, because from my perspective, it's only an
• 37:44
  Speaker 4: investment if you're willing to dispose of it. Does that
• 37:47
  Speaker 4: make sense?
• 37:47
  Speaker 1: It makes so much sense.
• 37:49
  Speaker 4: Okay, So other house ran to side. We now move
• 37:53
  Speaker 4: on to shares, and they are, from my perspective, one
• 37:56
  Speaker 4: of the most attractive investment types. Do you know why
• 37:59
  Speaker 4: I think they're real sex because they do two things, Beck,
• 38:02
  Speaker 4: in this day and age, two things. I know, we
• 38:05
  Speaker 4: love a flexible gal. They can increase in value. Nice.
• 38:10
  Speaker 1: Nice, But they can also pay you with dividends.
• 38:13
  Speaker 4: Oh my, I've worn something that is worth more tomorrow
• 38:18
  Speaker 4: and also paid me for the privilege.
• 38:21
  Speaker 1: Hot girlshit. Yeah.
• 38:23
  Speaker 4: Anyway, So shares I think are relatively attractive, but we
• 38:26
  Speaker 4: know that they're more risky. So because they're more risky,
• 38:29
  Speaker 4: people tend to shy away from them. But they usually
• 38:31
  Speaker 4: shy away from them because they don't have the education
• 38:33
  Speaker 4: around what we're building. So when I say I am
• 38:37
  Speaker 4: a very conservative, aggressive investor, I say I'm willing to
• 38:41
  Speaker 4: take a lot of risk by exposing most of my
• 38:45
  Speaker 4: money to the share market. So I'm happy for my
• 38:49
  Speaker 4: money to all be in shares. I do have my
• 38:52
  Speaker 4: emergency fund. Please don't get me wrong. Never invest your
• 38:55
  Speaker 4: emergency fund. Beck, They're the rules.
• 38:57
  Speaker 1: I made them, so you've got to follow them.
• 39:00
  Speaker 4: You have to follow you have to follow them. Yeah, absolutely,
• 39:02
  Speaker 4: no investing of your emergency fund. However, as a conservative,
• 39:07
  Speaker 4: risky investor, I'm not picking crypto. I'm not picking shares
• 39:13
  Speaker 4: that have just joined the market. I'm not picking Do
• 39:16
  Speaker 4: you remember when everyone was talking about after pay shares
• 39:18
  Speaker 4: and they were just like super excited about buying after pay.
• 39:21
  Speaker 1: Yeah that does ring a bell.
• 39:22
  Speaker 4: Yeah, I feel like it was maybe like twenty eighteen,
• 39:24
  Speaker 4: twenty nineteen. Everyone was like, oh my god, I wont
• 39:27
  Speaker 4: after pain and I was like, oh, a big billion energy,
• 39:29
  Speaker 4: you will. But after pay weren't paying dividends. So I
• 39:32
  Speaker 4: was like, I'm not buying that because I want to
• 39:34
  Speaker 4: be paid for the privileged baby. Yes, So to me,
• 39:37
  Speaker 4: that was not a share that I purchased, and the
• 39:40
  Speaker 4: only way people were making money by buying after pay
• 39:43
  Speaker 4: shares back then was to buy them, have them increase
• 39:46
  Speaker 4: in value, and sell them.
• 39:48
  Speaker 1: Laughing at and joke that I was going to make,
• 39:49
  Speaker 1: but I.
• 39:50
  Speaker 4: Know I want to hear joke now.
• 39:52
  Speaker 1: Okay, Well you were going to say they don't play paid,
• 39:55
  Speaker 1: they don't pay dividends. I was going to say, it's
• 39:57
  Speaker 1: a selfish not a share. Yeah, okay, anyway, that's so dumb.
• 40:02
  Speaker 1: Who are so?
• 40:04
  Speaker 4: I love that you tried.
• 40:06
  Speaker 1: Thank you and thank you pople laugh here even though
• 40:08
  Speaker 1: it was so dumb.
• 40:09
  Speaker 4: That's why I laughed. I think everyone's like that, what
• 40:12
  Speaker 4: was that?
• 40:12
  Speaker 2: Really?
• 40:13
  Speaker 1: Really bad?
• 40:13
  Speaker 4: She's usually really funny for you. Thank you, You're welcome,
• 40:18
  Speaker 4: but sorry continue. I want assets that to me are
• 40:22
  Speaker 4: really stable. So as much as to quote every investment
• 40:27
  Speaker 4: professional ever, past performance is not a reliable predictor of
• 40:30
  Speaker 4: future performance. I do not want to be buying things
• 40:35
  Speaker 4: that don't have good past performance, as much as we
• 40:37
  Speaker 4: can't use it as a predictor of the future. To me,
• 40:40
  Speaker 4: it's what's making me feel comfortable about the future. So
• 40:43
  Speaker 4: if a share has been on the Australian share market
• 40:45
  Speaker 4: for the last fifty years, has for the last fifty
• 40:47
  Speaker 4: years paid out a dividend and has consistently increased in value,
• 40:51
  Speaker 4: we're not saying doubled every year, because that's unsustainable, do
• 40:54
  Speaker 4: you know, just bopping along, going up, maybe in line
• 40:57
  Speaker 4: with inflation, that.
• 40:58
  Speaker 1: Would be good, just just keeping We love a girl
• 41:01
  Speaker 1: that just keeps up.
• 41:02
  Speaker 4: We're not trying to go fast, You're just trying to
• 41:05
  Speaker 4: get to the place safely, right. So for me, I
• 41:09
  Speaker 4: would much prefer that type of share than a risky one.
• 41:12
  Speaker 4: So when I say that I'm conservative but aggressive, I
• 41:16
  Speaker 4: have most of my assets tied up in shares, But
• 41:19
  Speaker 4: beck those shares are so boring it's not funny. Like
• 41:22
  Speaker 4: those shares are the most conservative shares I could buy.
• 41:26
  Speaker 4: They are what is called blue chip shares, and I
• 41:29
  Speaker 4: have them spread across a few ETFs because again, love
• 41:33
  Speaker 4: some diversification as much as I could, and have managed
• 41:37
  Speaker 4: my own direct share portfolio before. Just love a good ETF. Sometimes, Yeah,
• 41:42
  Speaker 4: they do good. They be good.
• 41:44
  Speaker 1: They've got good.
• 41:45
  Speaker 4: Fund managers involved with them, They're from good companies. I've
• 41:48
  Speaker 4: got a little bit of Australian shares, like we've got
• 41:50
  Speaker 4: some Australian stuff. I've got some international stuff as well.
• 41:53
  Speaker 1: Wow, discriminate.
• 41:55
  Speaker 4: I love some international stuff in an ETF too. Tax oblations,
• 42:00
  Speaker 4: they're not as complicated as if I owned them directly. Sure,
• 42:04
  Speaker 4: So I just I'm a low maintenance kind of girlie.
• 42:08
  Speaker 4: I don't want much except all of the returns.
• 42:11
  Speaker 1: I want those exactly, we wouldn't hurt.
• 42:13
  Speaker 4: So when I say that, I'm the type of person
• 42:15
  Speaker 4: I don't really like taking on risk that it's unnecessary
• 42:19
  Speaker 4: for me. I just want to be that slow and steady.
• 42:22
  Speaker 1: Horse that wins the race. She's not making a fuss, she'sactly.
• 42:25
  Speaker 4: I want to look at my portfolio, and as much
• 42:27
  Speaker 4: as like this is hypocritical, I'm so happy to share
• 42:30
  Speaker 4: it with all my friends, which are you. I still
• 42:33
  Speaker 4: when I log into my platform to have a look
• 42:36
  Speaker 4: at my shares, if my portfolio is down, I get
• 42:39
  Speaker 4: that like hit in the chest, you know, and you're like, oh,
• 42:42
  Speaker 4: you know that feeling that you get if you're not
• 42:43
  Speaker 4: an investor. You get that feeling when you check your
• 42:45
  Speaker 4: bank account and you thought there was one hundred bucks
• 42:47
  Speaker 4: more in there than there actually was.
• 42:49
  Speaker 1: It's that feeling when you're But.
• 42:53
  Speaker 4: That's just the emotional investing journey, and we have to
• 42:55
  Speaker 4: be aware of that. And the reason I'm sharing that
• 42:57
  Speaker 4: with you right now is because I genuinely get a
• 43:01
  Speaker 4: little bit stressy about it, regardless of how much education
• 43:04
  Speaker 4: I have. But that's why we need to be educated,
• 43:06
  Speaker 4: because then I go, actually, Victoria, put your ex financial
• 43:10
  Speaker 4: advisor hat right back on.
• 43:11
  Speaker 1: And tell yourself that it's just your reflection of the market.
• 43:14
  Speaker 4: The market's not doing so well at the moment, so
• 43:17
  Speaker 4: it kind of makes sense that your portfolio is reflective.
• 43:20
  Speaker 1: Makes sense.
• 43:20
  Speaker 4: So if your portfolio is reflective of the market, you
• 43:23
  Speaker 4: can't be too mad.
• 43:24
  Speaker 2: No.
• 43:25
  Speaker 4: However, if your portfolio is tanking and the market is
• 43:27
  Speaker 4: doing really well, we need to have a look at
• 43:29
  Speaker 4: what you've done.
• 43:30
  Speaker 1: Absolutely, but actually it's not you.
• 43:33
  Speaker 4: It's market exactly, especially if you've chosen assets that are
• 43:37
  Speaker 4: well diversified, and diversified can be really scary. But Beckett's
• 43:42
  Speaker 4: basically just not putting all your eggs in one basket.
• 43:45
  Speaker 4: So if you've got a thousand dollars and you're trying
• 43:47
  Speaker 4: to invest for the first time, buy a few different
• 43:50
  Speaker 4: options or an ETF or a managed fund or something
• 43:53
  Speaker 4: that is going to give you that instant diversification. Because
• 43:56
  Speaker 4: if you went and just bought one bank, I promise
• 43:59
  Speaker 4: that it's not good diversification.
• 44:01
  Speaker 1: Sure, it is really bad diversification.
• 44:03
  Speaker 4: I could not recommend it.
• 44:05
  Speaker 1: It is a solid advice fee.
• 44:06
  Speaker 4: He's an investor.
• 44:08
  Speaker 1: I think I'm almost there. Via I feel like that's
• 44:10
  Speaker 1: a really good place to leave it for today.
• 44:12
  Speaker 4: Is it a good place to leave it because you're
• 44:13
  Speaker 4: run out of time or you've run out of like
• 44:16
  Speaker 4: energy capacity? Okay, that makes sense, But I can rant
• 44:20
  Speaker 4: on another episode because honestly, when it comes to investing,
• 44:24
  Speaker 4: essentially all of this is just trying to make you
• 44:27
  Speaker 4: feel as comfortable as possible when it comes to getting started.
• 44:31
  Speaker 4: And I feel like the hardest thing is actually just
• 44:34
  Speaker 4: taking the first sleep. And I think when it comes
• 44:37
  Speaker 4: to getting started on your investing journey. I know we've
• 44:39
  Speaker 4: talked about trades and how you know it's not worth
• 44:43
  Speaker 4: investing twenty dollars if your trade is twenty dollars, right,
• 44:46
  Speaker 4: But if that's what gets your foot in the market,
• 44:49
  Speaker 4: and it actually gives you exposure to an ETF so
• 44:51
  Speaker 4: you can follow the market go up and down and
• 44:54
  Speaker 4: you can get that emotional investing journey in. Maybe it's
• 44:57
  Speaker 4: an investment into your financial literacy so that you get
• 45:00
  Speaker 4: exposure to the market you feel really comfortable with it.
• 45:03
  Speaker 4: Would I recommend that all the time? Absolutely not. Maybe
• 45:06
  Speaker 4: find a shared trading platform that makes sense for your
• 45:09
  Speaker 4: investment amount, like beck if you were talking about, oh,
• 45:11
  Speaker 4: I have my first fifty bucks to invest, Well, I'm
• 45:14
  Speaker 4: not going to say go with self Wealth because they've
• 45:16
  Speaker 4: got a minimum investment amount of five hundred dollars. That's
• 45:19
  Speaker 4: not going to work for you, is it. But you
• 45:21
  Speaker 4: might consider something like share Z's where you can invest
• 45:24
  Speaker 4: with as little.
• 45:24
  Speaker 1: As one cent.
• 45:25
  Speaker 4: And that's not me trying to promote a platform at all.
• 45:28
  Speaker 4: I just think if you are looking to get invested
• 45:31
  Speaker 4: there is going to be an option for you. In fact,
• 45:34
  Speaker 4: just to do a little shameless plug, I wrote a book.
• 45:36
  Speaker 4: It's called Investing Wishes on the Money. I did a
• 45:39
  Speaker 4: chart in that book, so maybe if you don't even
• 45:42
  Speaker 4: want to buy it, just like, head down to kmart,
• 45:44
  Speaker 4: open the book, take a photo of this chart, run away,
• 45:47
  Speaker 4: pretend it never happened. But it's a comparison of all
• 45:50
  Speaker 4: the fees, all the charges, all of the bells and whistles.
• 45:53
  Speaker 4: What exposure you get for a whole heap of investing
• 45:56
  Speaker 4: platforms that are most popular in our community. So we
• 45:59
  Speaker 4: go through spaceship, we go through rays, we go through
• 46:01
  Speaker 4: shares is, we go through self wealth, we go through
• 46:03
  Speaker 4: peerl like literally everything that is really popular in Australia
• 46:08
  Speaker 4: at the time that I wrote that book, I've compared.
• 46:10
  Speaker 4: So all you have to do is go through it
• 46:13
  Speaker 4: and go all right, Well, do I want a micro
• 46:15
  Speaker 4: investing platform? No, okay, Next I want to share trading platform.
• 46:19
  Speaker 4: I really want exposure to Australian shares. Okay, well, these
• 46:22
  Speaker 4: are the ones that give me access to that. Oh look,
• 46:25
  Speaker 4: here are the fees, here are the charges. I don't
• 46:27
  Speaker 4: know if I want that particular bell and whistle, or
• 46:30
  Speaker 4: I do want some more research, or I don't want
• 46:32
  Speaker 4: some more research. So you can make the best decision
• 46:34
  Speaker 4: for you, because picking a platform, from my perspective, one
• 46:38
  Speaker 4: of the hardest decisions when it comes to starting your
• 46:40
  Speaker 4: investing journey.
• 46:41
  Speaker 1: Right, well now is a really good time to leave.
• 46:44
  Speaker 4: Yeah, you're done with me? I are done.
• 46:46
  Speaker 1: Need to absorb all of this.
• 46:48
  Speaker 4: We can talk about it over lunch.
• 46:49
  Speaker 1: Oh, thank you.
• 46:50
  Speaker 4: Absolutely not.
• 46:53
  Speaker 1: We can talk about a multitude of other things, but
• 46:55
  Speaker 1: let's talk about this again.
• 46:57
  Speaker 4: Nor sorry for me? Sorry not sorry. Well, you have
• 47:01
  Speaker 4: a good week. We will see you on Friday for
• 47:03
  Speaker 4: Friday drinks and then we'll see you on Monday for
• 47:05
  Speaker 4: another Monday and money dough and I can't.
• 47:06
  Speaker 1: Wait, can't wait. So you guys be goodbye boy.
• 47:15
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• 47:17
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• 47:21
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• 47:25
  Speaker 3: not be relied upon to make an investment or financial decision.
• 47:28
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