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If Buying a Home Feels Impossible—Is This the Next Best Thing? Plus, Should You Ditch a Share Over Ethics? · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud or
0:04
Speaker 1: the Order Kerni Whaltbury and a waddery woman. And before
0:08
Speaker 1: we get started on She's on the Money podcast, I
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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 impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money, She's on the Money.
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Speaker 4: Hello, and welcome to She's on the Money guys, the
1:00
Speaker 4: Meg's personal finance fun especially on Fridays. It is our
1:05
Speaker 4: favorite day of the week because I get to get
1:07
Speaker 4: my little team.
1:07
Speaker 2: Together and we get to celebrate you our incredible.
1:10
Speaker 4: She's on the Money community. Miss Jess Gricci is here here,
1:14
Speaker 4: She's here sharing her Miss becksay ed, you've got a
1:18
Speaker 4: few broke tips this week, and we're going to be
1:21
Speaker 4: helping to answer a juicy money dilemma, which this week
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Speaker 4: is all about commercial real estate and whether it's a
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Speaker 4: good alternative when you can't afford a house, which I
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Speaker 4: think will be a spicy conversation and something that you
1:34
Speaker 4: slid into our DMS about guys, should you hold onto
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Speaker 4: your investment when the CEO of a company is actually
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Speaker 4: acting unethically? So I feel like that's like less relationship drama,
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Speaker 4: which like I want more of that slide into our dms.
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Speaker 4: But also I feel like this is like, I know,
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Speaker 4: an ethical canundro like do you don't you like? And
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Speaker 4: also are you talking about your CEO or you've seen
2:00
Speaker 4: something in the media.
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Speaker 5: Interesting?
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Speaker 4: Yeah?
2:03
Speaker 5: Anyway, before we get there, how were your weeks?
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Speaker 3: Nothing exciting to report from me?
2:09
Speaker 5: Just I'm sorry, just how many flat tires?
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Speaker 2: Yeah?
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Speaker 3: One and two new tires and three hundred dollars later?
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Speaker 3: Thank you so much? Literally, No, it's it's been you know, a.
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Speaker 2: Couple of days.
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Speaker 3: Everything goes wrong, but it's what Yeah, how about you,
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Speaker 3: poor jess Ricky through it?
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Speaker 5: I feel like you view.
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Speaker 6: Bad luck like you're not always bad luck, but like
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Speaker 6: I think that you lean the universe has you leaning
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Speaker 6: a little bit bad luck.
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Speaker 3: I don't know what I did to deserve the bad.
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Speaker 6: This angel pie, I've ever met you don't deserve any
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Speaker 6: of that.
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Speaker 4: I'm sorry that you got a flat tire and it
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Speaker 4: wasn't even like a little bit like you sent me
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Speaker 4: a picture and she was sitting on the ground like
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Speaker 4: she was.
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Speaker 2: I did offer to change it, and I've done this before.
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Speaker 5: This is not new to me. I am actually the
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Speaker 5: v in the ra c V.
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Speaker 4: But as we were saying before, you were like, but
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Speaker 4: I don't have a tire, and I was like, oh,
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Speaker 4: I don't come prepared.
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Speaker 2: Like I'm a b Wayoh yeah.
3:08
Speaker 4: If you've got the stuff, I'll give it a crack.
3:10
Speaker 4: I don't promise to be good, but I will try. Thankfully,
3:15
Speaker 4: I just found someone who was reputable, Yes, beautiful.
3:18
Speaker 6: That's probably the safest bet.
3:22
Speaker 4: It's like I won't be here, but Beck and I
3:25
Speaker 4: we could do anything together.
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Speaker 5: Absolutely.
3:27
Speaker 2: You need a new car built, Jess, I Reckon Beck
3:29
Speaker 2: and I could do it from scratch. I believe scratch absolutely,
3:33
Speaker 2: and one that doesn't exist at the moment.
3:35
Speaker 3: We meant to car for Elon flying car that was
3:38
Speaker 3: off all my problems.
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Speaker 5: Okay, let's get silent, say less.
3:42
Speaker 6: Maybe anything for you your week. My week's been really lovely.
3:47
Speaker 6: I took a few days off.
3:49
Speaker 5: I saw it on Instagram.
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Speaker 6: Yeah, I've just been like, I feel like I was
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Speaker 6: a stay at home wife for a little while and i'd.
3:56
Speaker 5: Just be really playing stay at home? Did you enjoy
3:58
Speaker 5: that life?
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Speaker 2: I love? I was like, oh my god.
4:01
Speaker 6: Just wake up whenever I want my friends. That's the
4:04
Speaker 6: life I meant to live. But I also made this
4:06
Speaker 6: lovely sweet tato brownie. I never cook, you know, but anyway,
4:09
Speaker 6: and also is a t I bit. The only downside
4:12
Speaker 6: is that I've had some stomach issues and I've been
4:14
Speaker 6: really clogged up.
4:15
Speaker 2: And that's that's where I'm at right now. That I
4:18
Speaker 2: used to go two three times a day.
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Speaker 4: Okay, this feels like a lot, so I'm not surprised.
4:26
Speaker 2: Moved onwards and not outputs.
4:29
Speaker 3: Everyone is becoming very comfortable, you know, remember maybe your
4:32
Speaker 3: lounger getting too comfortable podcast.
4:35
Speaker 2: Sorry about that, guys. If anyone has any advice on how.
4:38
Speaker 5: To no worries, we'll talk about runs later. Let's move on.
4:43
Speaker 2: Would you guys like to have a five star review?
4:47
Speaker 3: Absolutely?
4:48
Speaker 7: Please?
4:48
Speaker 5: Serenade style yes please?
4:50
Speaker 4: Yeah? Okay, so say less spec this one. I think
4:53
Speaker 4: you're gonna like. This one comes from r X nine
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Speaker 4: two X y.
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Speaker 2: How would you pronounce that pronounced real?
5:01
Speaker 4: Yeah?
5:02
Speaker 5: Perfect?
5:03
Speaker 2: Love that She's on the Money Team.
5:05
Speaker 4: After leaving a financial abusive relationship and living paycheck to paycheck,
5:10
Speaker 4: I managed to buy a house solo six months later,
5:14
Speaker 4: and soon after that found this podcast. The financial literacy
5:18
Speaker 4: I now have is amazing thanks to the She's on
5:20
Speaker 4: the Money Team.
5:21
Speaker 5: Fast forward a few years.
5:23
Speaker 4: I've nearly fully renovated my house, I have an emergency fund,
5:27
Speaker 4: and I'm going on a big five week trip to Europe,
5:30
Speaker 4: and I'm investing a one thousand dollars a month for
5:33
Speaker 4: future me. I now have a financial plan and I am
5:36
Speaker 4: working on my money mindset. Could not thank She's on
5:39
Speaker 4: the Money enough for providing a simple, fun and entertaining
5:43
Speaker 4: money podcast. I look forward to listening to every single week.
5:47
Speaker 4: Oh my god, that's mege your story, seriously, that is the.
5:53
Speaker 5: Can you send me a DM because I'd like to
5:55
Speaker 5: do a money diary with you.
5:57
Speaker 2: That would be so cool.
5:59
Speaker 6: That's really good, cool, good on you are seven nine
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Speaker 6: to three.
6:04
Speaker 4: I like your name, it's unique. The username was available.
6:11
Speaker 4: Oh my goodness. I love a five star review because
6:13
Speaker 4: I just I love knowing how we have impacted our community.
6:17
Speaker 4: Like it's funny because you know, it's the three of
6:20
Speaker 4: us in the studio right now having a chat, and
6:23
Speaker 4: we are so comfortable because we forget that literally hundreds
6:26
Speaker 4: of thousands of people listen to our podcast each and
6:28
Speaker 4: every single month. I mean, Beck talks about volvers and
6:31
Speaker 4: stomach issues as though hundreds of thousands of people are
6:36
Speaker 4: not actually tuning in. So like having those little bits
6:39
Speaker 4: that really connect us to you and it just reminds
6:43
Speaker 4: us that we are doing the right thing and we
6:44
Speaker 4: are on track, and we are surrounded by the right people,
6:47
Speaker 4: and it just it literally is my favorite part of
6:49
Speaker 4: the week, like sharing, it's so special. But anyway, another
6:52
Speaker 4: favorite part of my week is the money Wins and
6:55
Speaker 4: Confessions thread that happens every single week in our Facebook community.
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Speaker 5: Miss jess Arici, what are the highlights?
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Speaker 3: Alrighty? Firstly, I've got one from Brianna who said money win.
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Speaker 3: I went to a run club and all the women
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Speaker 3: who were there were gifted a pair of Pumic sneakers.
7:11
Speaker 3: It was apparently an IWD activation a.
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Speaker 5: Deal two hundred bucks. Oh my god, so expensive? Why
7:18
Speaker 5: sheoes so expensive?
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Speaker 1: You know?
7:20
Speaker 3: Have I told you about my ones that I think
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Speaker 3: I have. They have holes in them, so I just
7:23
Speaker 3: wear black socks.
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Speaker 4: You can't because the shoes Jessica, I will buy you
7:28
Speaker 4: in your sit really ruined.
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Speaker 3: But I just can't bring myself to buy new ones.
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Speaker 3: They're so expensive. Anyway, maybe I should join a run
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Speaker 3: club and that'll solve all my problems. Next, I've got
7:36
Speaker 3: a money win from Aunt who said money win. I
7:39
Speaker 3: found my chooks hidden stash of eggs right before I
7:41
Speaker 3: had to give up and buy some.
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Speaker 2: I love the chicks do that.
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Speaker 5: They're so cute that.
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Speaker 3: They like find new places to lay their eggs and
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Speaker 3: get comfy.
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Speaker 2: And they're like, oh, this good spot.
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Speaker 6: Yeah.
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Speaker 4: Like if you're a chicken and you didn't like have
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Speaker 4: a permanent home, like maybe you got your hatch, but
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Speaker 4: like you're always looking for good locations.
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Speaker 3: Yeah.
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Speaker 2: I love chickens too.
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Speaker 4: They're so some people think that they're really scary, but
8:02
Speaker 4: they are so cute. Actually, speaking of like feathered friends,
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Speaker 4: do you guys follow Alisha who works for Zella Money
8:09
Speaker 4: on Instagram? So Alisha is one of our team members.
8:14
Speaker 4: I don't oh, you would have met them at some
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Speaker 4: point anyway. Alisha is gorgeous and she went to her
8:21
Speaker 4: dad's house over the weekend. He like lives a little
8:23
Speaker 4: bit further towards New South Wales. He has pet emuse.
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Speaker 4: Oh wow, and they're super affectionate, like and they cuddley
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Speaker 4: hats and scratches. And I was like, babe, you've got
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Speaker 4: one of your siblings is an EMU?
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Speaker 2: That is really cute?
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Speaker 3: Is it?
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Speaker 4: Like?
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Speaker 2: I didn't even know that was Yeah.
8:39
Speaker 4: I was like, can I just get an mem you
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Speaker 4: and she said no, you actually have to have licenses
8:43
Speaker 4: and and he's got land so he's allowed. But she
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Speaker 4: has multiple EMU siblings and that is just not what
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Speaker 4: I expected to see on the internet over the weekends.
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Speaker 5: I want to cuddle him same what his name is?
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Speaker 1: No?
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Speaker 5: But do you know what his brother's name is?
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Speaker 3: Ernie?
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Speaker 2: Yes? Oh that is very cute.
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Speaker 4: Really, what else have you got, Jess? Sorry I had
9:08
Speaker 4: to tell you about Alicia's Amy's.
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Speaker 2: Oh, I'm very into it.
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Speaker 3: Next, I've got money in from Amy, who said she's
9:12
Speaker 3: managed to increase her emergency fund by twenty percent in
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Speaker 3: the last month to help her with the rising cost
9:17
Speaker 3: of living. That's actually so cool and good reminder with
9:20
Speaker 3: how expensive everything is getting might be a good time
9:23
Speaker 3: to double check if your emergency fund still covers the
9:25
Speaker 3: amount of time that you want it to, because we
9:27
Speaker 3: all probably need to chuck a little bit more in
9:28
Speaker 3: there at the moment.
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Speaker 5: Oh so true, because money says like, oh yes, far
9:32
Speaker 5: as he used to know.
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Speaker 3: Next, I've got money in from Samantha, who said, if
9:35
Speaker 3: the health benefits aren't enough of an incentive to take
9:38
Speaker 3: my dog for its nightly walk, then coming back with
9:40
Speaker 3: a new free harness, giant tacchimi and some limes definitely
9:43
Speaker 3: is sorry.
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Speaker 5: What well, you've just found all of those laying on
9:46
Speaker 5: the floor.
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Speaker 3: So she said, love communities that are always leaving fresh
9:49
Speaker 3: produce and free things out money win. So I think
9:51
Speaker 3: maybe she's got a Facebook page, I've got like lots
9:54
Speaker 3: of limes, or I've anyone near this dog harness mind's
9:57
Speaker 3: grown out of it, something like that, and she's just
9:59
Speaker 3: picked them up on her evening.
10:01
Speaker 4: Has been growing zucchinis, and like, at what point do
10:04
Speaker 4: you say just pick the zucchini duty?
10:07
Speaker 5: Like the zucchinis that she's pulling out of her garden
10:10
Speaker 5: is she trying to grow them?
10:11
Speaker 4: They're massive, And I'm like I don't need this, Like
10:14
Speaker 4: I needed half size, quarter size.
10:17
Speaker 2: What do I do with like a two kilo zucchino?
10:19
Speaker 5: One zucchini feeds the whole family.
10:21
Speaker 4: Yeah, Like, I'm just finding lots of different recipes for zucchinis.
10:25
Speaker 4: You want zucchini slaice, fantastic. I've also made it for
10:28
Speaker 4: a tata. Also, we're having zucchini pasta.
10:30
Speaker 1: You have.
10:32
Speaker 3: She's usually going to turn into a giant zucchini any second.
10:35
Speaker 3: And lastly, this week, I've got a money loss but
10:36
Speaker 3: a life win from Jackie who said she bought a puppy,
10:39
Speaker 3: Little Denise arrived last week and I couldn't be happier.
10:42
Speaker 3: And we do indeed have a beautiful pet tax photo
10:45
Speaker 3: that she put on the thread.
10:46
Speaker 2: Oh, I might.
10:47
Speaker 3: Be doing because.
10:52
Speaker 6: Also people named the dogs. Yeah, I want to say
10:56
Speaker 6: I love that. Yeah, I've got a Susan in my circle,
11:00
Speaker 6: a huge I'm a dog rescue Greyhounds. We will have
11:05
Speaker 6: you must have in my community.
11:09
Speaker 2: I'm obsessed, Jess.
11:10
Speaker 4: I feel like that was a good one to end
11:12
Speaker 4: on beck Broke tips.
11:14
Speaker 2: What are they?
11:15
Speaker 4: Yes?
11:15
Speaker 6: So this song comes from Emma who lives in South Australia,
11:20
Speaker 6: and I have mentioned the RACV situation here in Victoria.
11:24
Speaker 2: There's a lot of benefits, but this one is.
11:26
Speaker 6: South Australia and they're called r A and being a
11:30
Speaker 6: member you get deals discounts with certain businesses. For example,
11:33
Speaker 6: restaurants offer kids eat free, complimentary drinks, extra meal on.
11:38
Speaker 2: Feed me menu.
11:39
Speaker 6: There's also cheap movie tickets or zoo tickets, and can
11:42
Speaker 6: buy well leasse E gift cards for four percent discount.
11:45
Speaker 6: I think is great, which I think. I love that
11:48
Speaker 6: kind of stuff, back and stuff. It's like if you
11:51
Speaker 6: do that first and then go do your shop it's
11:54
Speaker 6: just like money that you say it is so smart.
11:57
Speaker 4: It's one of the girls that I interviewed this morning
11:59
Speaker 4: for Money Diaries was actually like, please thank Beck for
12:02
Speaker 4: me because I've been playing the shop back games while
12:05
Speaker 4: watching Maths and I've made fifty bucks.
12:07
Speaker 2: Yes, it's really good. I need to dive in a
12:11
Speaker 2: little bit more.
12:11
Speaker 4: But well you recommended it to someone, she's taken it.
12:14
Speaker 4: She's made fifty bucks. That's really a good deal.
12:17
Speaker 2: That's so good.
12:18
Speaker 6: I know. There's also this thing that shot Back are
12:21
Speaker 6: doing where it's like, you know, you go into a
12:23
Speaker 6: sponsor by shot back and I shot back at the
12:27
Speaker 6: moment like shot Back call me, but like maybe you
12:30
Speaker 6: are sorry.
12:31
Speaker 2: I'm don't be sorry. They can have free shout outs.
12:34
Speaker 4: We just want to disclose. You know, we would be
12:37
Speaker 4: true and ethical if we didn't.
12:38
Speaker 2: Oh.
12:38
Speaker 6: Absolutely absolutely, She's not sponsored. She's just obsessed.
12:43
Speaker 2: I am obsessed. I'm obsessed.
12:44
Speaker 6: It was my best friend was trying to buy a
12:46
Speaker 6: MacBook the other day, not on shot back, and I
12:48
Speaker 6: almost projectile vomited. I was like, why are you spending
12:52
Speaker 6: money right now? And not anyway, but it's great you
12:55
Speaker 6: get on. That's not what the broad tip is. It
12:58
Speaker 6: is about what is the broke You're a a from
13:00
Speaker 6: South Australia and the member benefits, so keep that in
13:03
Speaker 6: your back pocket if you live in South Australia. So
13:05
Speaker 6: the next one comes from my girlfriend who sent me
13:08
Speaker 6: TikTok about this place called pandom Art, which apparently cheap
13:11
Speaker 6: and I don't know why it's cheap, but.
13:13
Speaker 4: Oh hold on, hold on, let's sear the broke tip.
13:15
Speaker 4: And then, Jess, I know what you're going to say.
13:18
Speaker 6: I'm live nervous, but as far as I know, it's
13:22
Speaker 6: like a diso a Days of Swords.
13:24
Speaker 4: It's like everything just really cheap. Yeah, and if you
13:26
Speaker 4: said that a couple of weeks ago. I think Jess
13:28
Speaker 4: and I would have been like, yeah, that's great. So
13:29
Speaker 4: you're saying, there's like another cool shop that sells what
13:32
Speaker 4: your friend sent it to you because it's like cheap.
13:35
Speaker 6: Yeah, everything everything even, like, but this is the thing
13:38
Speaker 6: is that, like I think if you're if you do it,
13:39
Speaker 6: can't afford that much. You're like, oh, I'm just trying
13:42
Speaker 6: to block out the fact that this.
13:43
Speaker 4: It's like when you got to like NQR, you're kind
13:45
Speaker 4: of like, yeah, I get a good deal, but I
13:47
Speaker 4: don't know about it.
13:48
Speaker 6: You don't know unethical. Is this being made somewhere really bad?
13:51
Speaker 6: But I don't know about it? And so like that's
13:53
Speaker 6: not my friend's like, oh, but if you can't afford
13:56
Speaker 6: then it's like a dollar for a whole you know.
14:01
Speaker 5: I know what you mean.
14:02
Speaker 4: I feel like we're gonna have to null and void
14:05
Speaker 4: your money when or your broke tip because yes, I
14:09
Speaker 4: see you scurrying to your phone to Google to the
14:12
Speaker 4: headlines what happened to pandoma recently?
14:16
Speaker 3: They had like a big police rape.
14:21
Speaker 5: Read the headline.
14:21
Speaker 3: Jam It says urgent warning over dangerous items from New
14:25
Speaker 3: Melbourne discount shop.
14:26
Speaker 2: And we'll do it like knives.
14:28
Speaker 3: Or well, apparently there were thousands of products that they
14:32
Speaker 3: believe will fail to meet the mandatory product safety and
14:35
Speaker 3: information standards, including items that could be dangerous. I know.
14:37
Speaker 3: I saw a lot of people on TikTok talking on Pandama,
14:40
Speaker 3: and then I saw a lot of people on TikTok saying,
14:41
Speaker 3: oh my gosh, pandoma.
14:44
Speaker 5: So people, maybe let's not go to Pandama.
14:49
Speaker 4: That could have been a good broke tip if you
14:51
Speaker 4: used it much earlier before we knew that truly got raided.
14:54
Speaker 2: I see.
14:55
Speaker 4: But the more you know, the more educated we are,
14:57
Speaker 4: the more informed decisions we can make.
14:59
Speaker 6: A find it weird because it's just like in my mind,
15:01
Speaker 6: it popped up out of nowhere and we did gone
15:04
Speaker 6: before we could even.
15:06
Speaker 5: Hear today, Gone tomorrow, exactly, exactly sorry that we are.
15:10
Speaker 4: Yeah, I'm sorry that we ruined that one for you.
15:13
Speaker 4: Your personal one is gonna redeem this.
15:16
Speaker 6: So I have calculated because my girlfriend.
15:21
Speaker 2: Friend, Yes, sorry, I didn't. I genuinely feel so annoying
15:25
Speaker 2: when I do that, but I'm just like context, I
15:27
Speaker 2: need you annoy us. I never want to not hear
15:30
Speaker 2: about other jests. Maybe you'll join the show one day.
15:34
Speaker 5: Let's have her on guess yess, we know so much
15:38
Speaker 5: about you.
15:39
Speaker 6: She's very like, she's very like have staples in the
15:42
Speaker 6: house kind of girl, which I never am. So she
15:45
Speaker 6: always wants bread. She's a big fan of having a
15:47
Speaker 6: peanut butter toast in the morning. And so I was
15:49
Speaker 6: like going out to buy brand and I keep buying
15:50
Speaker 6: this bread. But it's like, sometimes nine dollars a loaf.
15:54
Speaker 5: It's actually getting astronomic.
15:55
Speaker 6: It's getting out of nine dollars, yeah, sometimes, And so
15:58
Speaker 6: I was like, oh, I'll just make something, And so
16:00
Speaker 6: I made for Kasha, and I realized, like genuinely, if
16:04
Speaker 6: you buy like a five kilo you don't even have
16:06
Speaker 6: to do this. You could just buy like five hundred
16:08
Speaker 6: gram sashet of I don't know bread flour, but if
16:11
Speaker 6: you buy it in bulk, it's obviously cheaper, but all
16:13
Speaker 6: you really need is bread flour into yeast and that
16:16
Speaker 6: will last so long. This for Kasha, I would say,
16:21
Speaker 6: you can get like ten fifteen loaves out of a
16:24
Speaker 6: five kilo bag just ten dollars. Now you have fresh
16:28
Speaker 6: homemade loaves, and it is really not that hard to
16:31
Speaker 6: make like if I can make it, literally, anyone can
16:33
Speaker 6: make it. It is so easy, so quick. I don't know,
16:36
Speaker 6: you gotta put a site some time whatever. But it's
16:39
Speaker 6: so much cheaper than buying bread.
16:41
Speaker 4: So I was talking to my dad about this. I
16:43
Speaker 4: mentioned on the show before that my dad has started
16:45
Speaker 4: making bread at home and it's like my favorite thing ever.
16:49
Speaker 4: And I don't want to give him too much credit
16:51
Speaker 4: because like he keeps like testing new recipes, but I
16:54
Speaker 4: think he's nailed it. Like he has this crunchy on
16:57
Speaker 4: the outside, soft on the inside. I would say, like,
17:00
Speaker 4: you know, like French style bread, you know where it's
17:02
Speaker 4: like the bread that you get that's just really good
17:06
Speaker 4: with like butter. Anyway, he has calculated that to have
17:10
Speaker 4: his bougie bread after you make it at home, it's
17:14
Speaker 4: like two dollars ish a loaf, like that is a
17:16
Speaker 4: money when that includes like the yeast and the flower
17:19
Speaker 4: and whatnot. And he was telling me that you can
17:21
Speaker 4: get these and you can just get the mccole's and woolies.
17:24
Speaker 4: It's by the brand Luck la uc k. How would
17:28
Speaker 4: you say that Luck? Look la Luck lurk.
17:33
Speaker 5: Look they do a bread mix.
17:38
Speaker 4: So it's already got the yeast and stuff in it,
17:40
Speaker 4: so you don't have to do any of the math. Obviously,
17:42
Speaker 4: it's going to be a bit more expensive than doing
17:44
Speaker 4: it from scratch, but I just looked at it. It's
17:46
Speaker 4: ten bucks for a box that is two point four kilos,
17:50
Speaker 4: which apparently makes four loaves.
17:52
Speaker 2: Oh you know what you could do?
17:54
Speaker 4: Yeah, Facebook marketplace bread maker?
17:58
Speaker 5: Oh yeah, bread maker.
18:00
Speaker 4: Honestly, the old school bread makeout that has the bucket
18:03
Speaker 4: inside that my mum had twenty years ago.
18:06
Speaker 2: You want one of those?
18:07
Speaker 4: Yeah, my dad has been testing out my mom's twenty
18:10
Speaker 4: year old breadmaker that she used to use.
18:13
Speaker 2: Perfect every time.
18:14
Speaker 4: Okay, you can pick up or if you can, like
18:16
Speaker 4: rummage through a parents or a grandparent's cupboard and see
18:19
Speaker 4: if they still have one of those big white breadmakers. Yeah,
18:25
Speaker 4: say less. Oh my god, that's great.
18:27
Speaker 6: I mean it's really sounded like we're in the Great
18:29
Speaker 6: Depression or something like make your bread at home, guys,
18:31
Speaker 6: because we can't afford it.
18:32
Speaker 5: But also but it is some activity.
18:35
Speaker 6: Awesome your house, Oh my gosh, going to my parents'
18:38
Speaker 6: house now, because like I'll say, oh, Dad.
18:41
Speaker 5: What a coincidence that I'm calling you? At least eight
18:44
Speaker 5: hours before I come to your house to let you
18:47
Speaker 5: know that I'm coming.
18:48
Speaker 4: To your house, and then I arrive at his house.
18:51
Speaker 4: In the house smells like bread. Oh so nothing better. Yeah,
18:54
Speaker 4: I feel like it's very Jessica, she coated. Yeah, to
18:57
Speaker 4: be definitely making her own sour dough like I don't
19:00
Speaker 4: think she'd be like us Beck, she's not going to
19:02
Speaker 4: buy the pre mix. I can see her with her
19:04
Speaker 4: own sour dough starter like she's she's going to be
19:10
Speaker 4: there one day. Oh yes, I love that. Let's go
19:13
Speaker 4: to a really quick break because on the flip side,
19:15
Speaker 4: we're not going to talk about bread. We are actually
19:18
Speaker 4: going to be talking about whether commercial real estate is
19:21
Speaker 4: a good alternative if you have decided that you can't
19:23
Speaker 4: afford a house, or if that's out of the question
19:26
Speaker 4: and then you slid into our dms. This week we're
19:28
Speaker 4: talking about should you hold onto your investment when you
19:31
Speaker 4: realize that the CEO of the company you own is
19:34
Speaker 4: actually relatively unethical, So don't go anywhere.
19:41
Speaker 3: Welcome back, everybody. Let's take a listen to this week's
19:44
Speaker 3: money dilemma.
19:47
Speaker 4: Hi, there, have you got a money dilemma you just
19:49
Speaker 4: can't solve that She's on the Money team is here
19:52
Speaker 4: to help. Every week, we tackle your dilemmas, both big
19:55
Speaker 4: and small, to answer your most burning money.
19:57
Speaker 5: Career and life questions.
19:59
Speaker 4: To get involved, simply head to our website and leave
20:01
Speaker 4: us a short voice recording and you might just find
20:03
Speaker 4: yourself on the show. Now, let's take a listen to
20:06
Speaker 4: this week's money dilemma.
20:10
Speaker 3: Hi, She's on the Money.
20:11
Speaker 8: Girls love the podcast. I've got a question for you.
20:14
Speaker 7: My husband and I make decent money and we could
20:16
Speaker 7: save up for a house deposit in a couple of years,
20:19
Speaker 7: but the problem is making their payments. It looks like
20:22
Speaker 7: it would be about double our rent. And because we
20:24
Speaker 7: have a young baby and I'll be you know, I'm
20:27
Speaker 7: on and off work, maternity leave, et cetera, I just
20:30
Speaker 7: don't think that that's manageable for us to be able
20:32
Speaker 7: to do. I've recently got some advice from a family
20:35
Speaker 7: member to look into commercial real estate instead of buying,
20:39
Speaker 7: you know, a personal property. Basically, they said that it's
20:42
Speaker 7: way cheaper than buying a house, and as.
20:44
Speaker 8: You paid off or the you know, someone pays rent
20:47
Speaker 8: off of you that pays off the mortgage, you could
20:49
Speaker 8: eventually use it for leverage to buy yourself a home
20:52
Speaker 8: or buy more property, and it's basically just passive income.
20:56
Speaker 8: But I don't know how this impacts like first home
20:59
Speaker 8: buyas grant if we do want to buy a house
21:01
Speaker 8: later on, or how it impacts like taxes or you
21:05
Speaker 8: know what if it's empty and then you're paying rent
21:08
Speaker 8: and you're paying this like mortgage on the commercial real estate.
21:11
Speaker 8: I'm really just not sure if that's a way to
21:13
Speaker 8: go and who we should talk to or how it
21:16
Speaker 8: would go about doing that.
21:17
Speaker 7: Thanks so much?
21:18
Speaker 2: What do you guys reckon? This sounds like this is
21:21
Speaker 2: too good to be true. I've never even heard of this.
21:24
Speaker 4: What is it like your I think I just would
21:27
Speaker 4: she just commercial property, like it's still property, but often
21:30
Speaker 4: commercial property isn't going to be as expensive as like
21:33
Speaker 4: buying a first home in the suburb of your choice.
21:37
Speaker 6: But then you're paying off your rent is going towards
21:40
Speaker 6: the mortgage Or did I misunderstand that she's talking about
21:42
Speaker 6: purchasing a commercial property and having a mortgage rent commercial
21:46
Speaker 6: property and then renting it out.
21:47
Speaker 3: Oh yeah, the investment property. It's just commercial instead of
21:51
Speaker 3: it's not.
21:52
Speaker 6: Oh sorry, oh my god, Okay, I understand now, So
21:54
Speaker 6: it's like, you know, a cafe, for example, Yeah, something
21:58
Speaker 6: that's cover.
21:59
Speaker 5: I think it's clever. What do you think, Jess, I.
22:02
Speaker 3: Don't know much about the pricing. To me, I can't
22:04
Speaker 3: imagine retail space being that much cheaper than residential property.
22:09
Speaker 3: But again, I have done literally zero research and have
22:12
Speaker 3: no point of reference that that's just like my gut instinct.
22:15
Speaker 2: I would have.
22:16
Speaker 3: Significant concerns over the viability of something long term. I
22:21
Speaker 3: think that something that I just personally have observed in
22:24
Speaker 3: even out inner suburbs in Melbourne, Richmond, Brunswick, places like that.
22:28
Speaker 5: I keep saying full lease on every.
22:30
Speaker 3: Retail spaces particularly seem to be sitting empty for longer,
22:35
Speaker 3: probably partly due to the increase we're from home, partly
22:38
Speaker 3: due to the fact that so many of us have
22:40
Speaker 3: way less disposable income, so we're cutting out discretionary spending, cafe,
22:45
Speaker 3: you know, all that sort of thing. So I would
22:47
Speaker 3: really say, you want to do your research into making
22:50
Speaker 3: sure that it's a viable option, because you don't want
22:54
Speaker 3: to get stuck in the trap of exactly as our
22:56
Speaker 3: listener are saying, if you purchase the space, then you're
22:58
Speaker 3: not able to rent it out, you are responsible for
23:01
Speaker 3: that rent. And if you're saying to me, now, I
23:03
Speaker 3: can't make repayments on a mortgage, it's still that's exactly
23:06
Speaker 3: the same thing, just on a commercial space. And then
23:09
Speaker 3: the other thing that I would say, as far as
23:10
Speaker 3: I know from my personal research for my property, pretty
23:13
Speaker 3: much all of the first home biogrants, schemes etc. That
23:17
Speaker 3: are available do rely on it being your first property
23:20
Speaker 3: for you to live in your first residential property. Correct,
23:23
Speaker 3: So you not only would you not be able to
23:25
Speaker 3: use those for that property purchase, you would not be
23:28
Speaker 3: able to use them in future because generally fitting them Yeah. Correct,
23:31
Speaker 3: it's for your first property purchase.
23:33
Speaker 2: Yeah, oh yeah.
23:34
Speaker 4: And I feel like for a lot of us, if
23:36
Speaker 4: this is the first time we're putting it on the table,
23:39
Speaker 4: purchasing a commercial property could feel like a very strategic
23:42
Speaker 4: move because you're like, oh, this is you know, a
23:45
Speaker 4: smart thing to do instead of purchasing a residential property.
23:48
Speaker 4: But at the end of the day, it does come
23:50
Speaker 4: with like, it's not a bad idea, it's one that
23:52
Speaker 4: you need to weigh up, but it does come with
23:53
Speaker 4: a number of different trade offs. The one just mentioned
23:57
Speaker 4: your first home biogrants in any stamp duty concessions that
24:00
Speaker 4: are available in your state or territory are going to
24:02
Speaker 4: be forfeited because it was your first property purchase, and
24:06
Speaker 4: those things only actually apply to your first residential property.
24:10
Speaker 4: Commercial properties, they obviously can the like being a little
24:13
Speaker 4: bit positive, They can generate rental income. They can you know,
24:16
Speaker 4: give you some tax benefits, which is really exciting. But
24:20
Speaker 4: they do typically and I come from an educated perspective
24:23
Speaker 4: on this. As you guys know, I run a mortgage
24:25
Speaker 4: broking business. They have a higher need for a deposit,
24:29
Speaker 4: so you're not gonna be able to work with a
24:31
Speaker 4: mortgage broker. Like I get my team getting first home
24:35
Speaker 4: buyers into houses for five percent, I have my team
24:38
Speaker 4: getting people in for ten percent. We have been working
24:41
Speaker 4: with single moms who are getting in for two percent.
24:46
Speaker 1: Like.
24:46
Speaker 4: There are lots of schemes and grants when it comes
24:49
Speaker 4: to commercial property. I'd say ninety nine percent of the
24:51
Speaker 4: time you need a full twenty percent deposit plus costs,
24:55
Speaker 4: which is fine, but then there are tighter lending criteria
24:58
Speaker 4: as well, unless lending options, so you can go to
25:01
Speaker 4: the Big four bank, but they have a different interest
25:04
Speaker 4: rate for commercial properties. Than they do for residential, and
25:08
Speaker 4: then there will be banks that say, oh no, this
25:10
Speaker 4: loan product is only for RESI, not for commercial, and
25:14
Speaker 4: we can't use that. So your lending options are whittled down,
25:18
Speaker 4: which means you're probably going to have a high interest rate.
25:21
Speaker 4: And then obviously another negative is it can be a
25:24
Speaker 4: little risky. Just you said market fluctuations, market turned down.
25:28
Speaker 4: Often when you have a commercial property, the vacancy rate
25:32
Speaker 4: is higher. So a vacancy rate is the percentage of
25:36
Speaker 4: time every year that there's nobody paying you rent. This
25:40
Speaker 4: could happen to somebody who owns a residential property as well,
25:43
Speaker 4: because your tenant says, oh, I'm moving out, and then
25:45
Speaker 4: you've got maybe a couple of weeks before someone else
25:47
Speaker 4: moves in. But as you guys know, like the residential
25:51
Speaker 4: rental market is quite competitive, so I can almost guarantee
25:54
Speaker 4: that if you've got a tenant who said, hey, beck,
25:56
Speaker 4: I want to move out of your property, you've already
25:58
Speaker 4: put it online and lined someone else up. You've probably
26:00
Speaker 4: got a few days where you're doing the cleaning, bond transfer,
26:04
Speaker 4: all of that, and then somebody else moves in. With
26:07
Speaker 4: commercial property, that could be months because it's got to
26:10
Speaker 4: be the right business. There's got to be someone who's
26:12
Speaker 4: willing to pay for fit out, someone who's probably willing
26:15
Speaker 4: to actually sign a five year lease because often leases
26:19
Speaker 4: in commercial are much longer than year to year because
26:23
Speaker 4: you know, obviously I can talk about this in more
26:25
Speaker 4: detail one day, but with commercial leases, you as a
26:29
Speaker 4: landlord don't actually take on any of the responsibility for upkeep.
26:34
Speaker 4: So like the air conditioner breaks, that's your tenants deal
26:38
Speaker 4: to fix, whereas in residential you'd call your landlord and
26:40
Speaker 4: they'd fix it. So all of that stuff becomes their responsibility.
26:44
Speaker 4: So obviously, if they're going to put air con in,
26:46
Speaker 4: they are going to want to stay there for longer
26:49
Speaker 4: than twelve months to cover that investment. And then, yeah,
26:52
Speaker 4: I guess it just makes it a little bit harder
26:54
Speaker 4: if you chose that as your first property to enter
26:57
Speaker 4: the market a little bit later on when it comes
27:00
Speaker 4: to residential, because you don't get any of those concessions
27:02
Speaker 4: that are designed to support first time bias.
27:05
Speaker 5: So that's my two cents.
27:07
Speaker 4: Yeah, would you say talk to a mortgage broker, Absolutely,
27:10
Speaker 4: because they can do the pros and the cons for
27:12
Speaker 4: you and work out what that looks like because residential
27:15
Speaker 4: properties we are seeing they are still very popular despite
27:19
Speaker 4: me saying yes or no, Like we purchased even recently
27:23
Speaker 4: a few factory warehouse things for clients, and like the
27:27
Speaker 4: rental yield on them in the location that they have
27:29
Speaker 4: picked is really high, really great location, like it's up
27:33
Speaker 4: and coming, like.
27:34
Speaker 2: Really really popular.
27:35
Speaker 4: Yeah, that doesn't mean that just commercial property across the
27:38
Speaker 4: board is a good investment. This was and I was
27:41
Speaker 4: even thinking like, oh, that's pretty good. How did you
27:43
Speaker 4: find out about that? I'd like to buy one of these?
27:45
Speaker 4: Can't afford it right now, don't worry. But I think
27:47
Speaker 4: it's interesting to see how people value different things. And
27:53
Speaker 4: if you're getting advice from a family member, I adore that,
27:56
Speaker 4: but always like temper it with like are they an
28:00
Speaker 4: investment expert? Are they somebody I should be taking investment
28:03
Speaker 4: advice from? And then let that guide you as to
28:07
Speaker 4: how much more research you need to do?
28:09
Speaker 2: So sorry, it just really quickly. Two things I have
28:11
Speaker 2: in my mind.
28:11
Speaker 6: The first one is that if you call me crazy,
28:14
Speaker 6: but if like it's vagant for a while, your commercial property,
28:17
Speaker 6: and then you could.
28:19
Speaker 2: Use that space to be often you can't, oh you can't.
28:22
Speaker 4: Well, I mean you could use that space, but it
28:24
Speaker 4: would be completely stripped. And a lot of people, sorry
28:28
Speaker 4: to bite in, a lot of people want to buy
28:29
Speaker 4: commercial property in their superannuation fund, which means you cannot
28:33
Speaker 4: go on that premise.
28:34
Speaker 2: It's not yours to play.
28:35
Speaker 6: Oh you're not allowed to use that money that if
28:37
Speaker 6: it's in your generate money.
28:39
Speaker 4: But yeah, I mean you could technically use it as yours.
28:41
Speaker 4: But also if it zoned as commercial, you can't move
28:44
Speaker 4: into it.
28:44
Speaker 2: Gotcha?
28:44
Speaker 6: Okay, okay, Well that candler which was you know those
28:48
Speaker 6: terrace houses, Yeah, no, no, you can't be living upstairs
28:52
Speaker 6: unless it's zoned that way and it's got residential above commercial,
28:56
Speaker 6: which you could do.
28:57
Speaker 5: You can't live in a commercial property. It's actually legal.
29:00
Speaker 5: Very good to know, thank you.
29:01
Speaker 6: Yeah, sorry was the other thing that was My other
29:04
Speaker 6: thing was that like, could you get one of those
29:06
Speaker 6: like terrorist places where you live up top?
29:09
Speaker 5: But that is I'm being a bit of a DeBie downer,
29:12
Speaker 5: So I do it.
29:14
Speaker 2: Let's move on. I've got a DM for you.
29:16
Speaker 5: Would you like to hear it?
29:17
Speaker 4: Yes?
29:17
Speaker 2: Please?
29:17
Speaker 4: Okay, Hey, she's on the money. I need some advice
29:20
Speaker 4: because I'm feeling so conflicted. My husband and I bought
29:23
Speaker 4: Teslas stock ages ago, way before all of the Elon drama.
29:28
Speaker 4: We've been open about what to invest in, and when
29:31
Speaker 4: Trump got in, some friends started saying we'd gained wealth
29:34
Speaker 4: by supporting.
29:35
Speaker 5: A racist, and now we should sell.
29:38
Speaker 4: Now with the stock dropping, obviously a lot of investors
29:41
Speaker 4: are jumping ship for that reason. I don't agree with
29:44
Speaker 4: Musk's political views, but we had planned to hold long term.
29:48
Speaker 4: My husband isn't phased, his friends aren't bringing it up anymore,
29:52
Speaker 4: but I feel guilty now the drop is confusing me
29:55
Speaker 4: even more.
29:56
Speaker 2: I don't know what to do. Hmmm.
29:59
Speaker 6: Personally, I I wouldn't have shares in like something something
30:03
Speaker 6: that's that's a kind of like as bad or as
30:06
Speaker 6: like you know, I kind of have a lot of
30:08
Speaker 6: ETFs and stuff like that that and I don't know
30:11
Speaker 6: where that money is going. I'm like kind of like
30:13
Speaker 6: my head's in the sand, which is also bad. But
30:15
Speaker 6: it's like if there's something that I'm investing and that's
30:18
Speaker 6: and ethical, it's not as in my sights as like
30:22
Speaker 6: Musk is obviously, you know, supporting Trump, And I mean
30:27
Speaker 6: I don't want to get into We don't want to
30:28
Speaker 6: get into politics right now.
30:29
Speaker 4: But I just recorded a whole episode on that, And
30:31
Speaker 4: what you're telling me right now, Beck, is that I
30:33
Speaker 4: know you don't listen to my podcast because I did
30:36
Speaker 4: a whole episode and I discussed Trump's tariffs and Elon
30:40
Speaker 4: and all of that drama.
30:42
Speaker 5: So obviously that okay.
30:44
Speaker 2: But oh but yeah, we don't want to get that.
30:47
Speaker 2: I don't want to get political, but I will explain
30:49
Speaker 2: policy to.
30:50
Speaker 6: Of course, I think that like on my personally, I wouldn't.
30:53
Speaker 6: I would not be investing in Tesla right now or anything.
30:56
Speaker 6: That's that I know that I can't ignore that.
30:58
Speaker 1: I is not.
30:59
Speaker 5: You know, you did it beforehand.
31:01
Speaker 4: So like, let's say ages ago, you were like, oh
31:03
Speaker 4: my goodness, like the electric vehicles, I've started my investing journey.
31:07
Speaker 4: You went and purchased a heap of Tesla stock, right
31:09
Speaker 4: and that has been performing.
31:11
Speaker 2: For you, Beck, Yeah, I love it anymore. No, So
31:13
Speaker 2: would you sell it? I would sell it.
31:15
Speaker 4: How much of a loss would you be willing to
31:17
Speaker 4: take to get out of that investment? What if you
31:20
Speaker 4: personally lose thousands of dollars by disposing of that stock?
31:24
Speaker 6: I mean, in an ideal world, I would have been
31:29
Speaker 6: aware of the whole. You know, Elon Musk there.
31:32
Speaker 4: But you wouldn't have because historically he was seen as
31:34
Speaker 4: an em bagelist, like he was seen as somebody who
31:38
Speaker 4: was doing really cool things. But I mean there's a
31:40
Speaker 4: lot to him that now, like in hindsight, we all
31:43
Speaker 4: have realized that always a bit off on the whole. YEA,
31:47
Speaker 4: most people buying Tesla, they had no idea. They thought
31:50
Speaker 4: they were investing in the future. Well, I guess not
31:53
Speaker 4: in some delulu.
31:54
Speaker 5: No totally is best is with Trump?
31:57
Speaker 6: But and I do want to preface all of this
31:58
Speaker 6: best saying like if I had friends who invested in Tesla,
32:00
Speaker 6: I like, that's so fine, Like I'm not at all,
32:03
Speaker 6: you know, kind of going to put my views on them,
32:05
Speaker 6: just like for my own personal comfort, I would be
32:07
Speaker 6: not doing that. But yeah, I guess, like you know,
32:09
Speaker 6: because we now know about mask, we now you know,
32:12
Speaker 6: whether you're for him, against him, whatever, indifferent, it doesn't matter.
32:15
Speaker 6: Now we have kind of the information. So unless I've
32:18
Speaker 6: found out I didn't align with him in that way,
32:22
Speaker 6: the same day I lost thousands of dollars and I
32:26
Speaker 6: did not know before, Like if it's a slow descent,
32:28
Speaker 6: and I kind of am like, Oh, I don't know
32:30
Speaker 6: if I like this, hopefully i'll get it earlier. But
32:32
Speaker 6: if it's so happened that I lost so much money
32:35
Speaker 6: the exact same day I found out I did not
32:37
Speaker 6: like Musk, then I would probably stay in until I
32:40
Speaker 6: made some money back and then got out.
32:42
Speaker 5: Yeah.
32:42
Speaker 4: But it's like the question of, like how much you're
32:44
Speaker 4: willing to lose in order to uphold your values, which
32:49
Speaker 4: ultimately impacts your future wealth.
32:51
Speaker 2: Like, it's such a hard thing, jess, what would you do?
32:53
Speaker 3: It's so hard to discuss ethical investments because obviously no
32:57
Speaker 3: such thing. Well, yeah, and it's a deeply personal topic
33:00
Speaker 3: because I would argue that Musk is a very strong example,
33:04
Speaker 3: you know, like we've seen how he treats women, We've
33:06
Speaker 3: seen how he you know, the policies that he's aligning
33:09
Speaker 3: himself with politically, which personally very much go against my
33:12
Speaker 3: own personal value set. Da da da da. But if
33:15
Speaker 3: you look into it more deeply, I would argue that
33:18
Speaker 3: the vast majority of blue chip stocks are held by
33:23
Speaker 3: either individuals or companies that are ethically ambiguous on some level.
33:28
Speaker 3: Like I think that the vast majority of big corporations
33:32
Speaker 3: in some way shape or form are not good. Do
33:35
Speaker 3: you know what I mean? And again, it really comes
33:37
Speaker 3: down to your personal compass. But whether it's their environmental practices,
33:40
Speaker 3: whether it's the political views howled by their senior vps,
33:44
Speaker 3: whether it's you know, the way that they treat women,
33:47
Speaker 3: whether it's the gender pay gap. We saw a lot
33:50
Speaker 3: of data come out on that this month. There are
33:53
Speaker 3: all of these ethical issues that I would argue are
33:56
Speaker 3: held by the Maybe the majority is the wrong word,
34:00
Speaker 3: but like a lot a significant portion of the shares
34:03
Speaker 3: that a lot of us are probably investig in, either
34:05
Speaker 3: through ETFs or funds, or whether they're individual shares that
34:09
Speaker 3: you've selected because you lack what they're doing or where
34:11
Speaker 3: you think they're going. And so I think it can
34:13
Speaker 3: be quite hard to overlay your moral compass along with
34:18
Speaker 3: your goals for the future because you would rule out
34:21
Speaker 3: whole industries a lot of the time purely based on
34:24
Speaker 3: And I'm not saying that that's right or wrong, because
34:26
Speaker 3: I think you at the end of the day, you
34:28
Speaker 3: really need to do what you're going to feel good about.
34:30
Speaker 3: And so for you, Beck, you've said that, I would
34:32
Speaker 3: not feel good holding shares like for example, Tesla knowing
34:37
Speaker 3: that they are doing the things that they're doing knowing
34:40
Speaker 3: that Musk is supporting and et cetera. And I don't
34:43
Speaker 3: think I'm the person to tell you what's right or
34:45
Speaker 3: wrong in that situation. It really comes down to what
34:47
Speaker 3: you think. For me personally, I'm going to be I'm
34:51
Speaker 3: going to sound like a money hungry person, but I
34:54
Speaker 3: don't know that I would be willing to sell at
34:55
Speaker 3: a significant loss or any loss for that matter.
34:58
Speaker 2: I think that.
35:00
Speaker 3: My future security is something that's really important to me,
35:04
Speaker 3: and would I look to sell once I was in
35:07
Speaker 3: the green potentially. But also I think that it's so
35:12
Speaker 3: hard because I do agree that we should vote without money,
35:15
Speaker 3: Like I think that that's something that's really powerful. But
35:18
Speaker 3: I also think that, yeah, like sometimes those things it's
35:22
Speaker 3: not a Venn diagram, or it is a ven diagram.
35:25
Speaker 4: It is?
35:26
Speaker 1: It is?
35:27
Speaker 3: It is a ven diagram, right, it is, it's not
35:30
Speaker 3: it is. Two things are not mutually exclusive, like a
35:34
Speaker 3: good investment is not always going to be ethical in
35:37
Speaker 3: often I personally believe it isn't entirely, and so it
35:41
Speaker 3: becomes quite complex when you're deciding, well, do I uphold
35:44
Speaker 3: all of my morals or do I look out for
35:47
Speaker 3: future me or do I find a middle ground? And
35:50
Speaker 3: I mean, I don't have a good answer for you
35:51
Speaker 3: if you can't tell by the way that I'm rambling.
35:53
Speaker 3: But I think that it's really deeply personal, and I
35:56
Speaker 3: think it comes down to what you think. It comes
35:58
Speaker 3: down to what ethical issue it is, because some might
36:01
Speaker 3: be more important to you than others. Like I personally
36:04
Speaker 3: probably would honestly prioritize my future financial security if I'm honest,
36:10
Speaker 3: that's fair. I don't know if I feel good about
36:11
Speaker 3: that as I'm saying it, but that's not honestly the truth.
36:16
Speaker 6: Sorry, I took so long to say that's okay because
36:18
Speaker 6: I was like, I didn't want to interrupt you.
36:20
Speaker 2: But that's okay, thank you.
36:23
Speaker 5: I love that.
36:25
Speaker 4: I love that, and I think that you guys know
36:29
Speaker 4: that I uphold my values. But I wouldn't sell. I
36:34
Speaker 4: know that, Jess, you seem to be having like an
36:35
Speaker 4: internal conflict of whether we wouldn't and I don't. I
36:39
Speaker 4: don't because at the end of the day, I invested
36:41
Speaker 4: with intent, and my intent was pure from the beginning,
36:45
Speaker 4: and I'm going to uphold that. Yeah, I'm probably going
36:47
Speaker 4: to sell laid down the track when it's good. Let
36:50
Speaker 4: me like step back for a second. When I was
36:52
Speaker 4: a financial advisor, I had a client come to me
36:54
Speaker 4: who inherited a couple of million dollars and they inherited
36:58
Speaker 4: a couple of million dollars from a grandparents who had
37:00
Speaker 4: invested really aggressively and that's where the money was made.
37:05
Speaker 4: And they came to me and they were like, I
37:07
Speaker 4: want to go through my share portfolio with you, and
37:09
Speaker 4: I want to sell like most of it because none
37:11
Speaker 4: of it's ethical and I hate this and I hate that.
37:13
Speaker 4: And I was like totally, like, come in review the
37:15
Speaker 4: whole thing.
37:16
Speaker 2: So we go through all of this.
37:18
Speaker 4: And one of the shares that his grandpa had bought
37:21
Speaker 4: was BHP and that share was bought so long ago,
37:26
Speaker 4: that was purchased in British sterling. Wow, so that was
37:29
Speaker 4: when he had purchased it, right, So he had held
37:32
Speaker 4: it and continually invested. And do you know what that
37:35
Speaker 4: does to a financial advisor?
37:37
Speaker 3: Yeah?
37:37
Speaker 4: But do you know what that does to a financial
37:39
Speaker 4: advisor who has to calculate the gains and they're like,
37:43
Speaker 4: what your capital gains would be payable on that amount?
37:46
Speaker 4: Should you sell it so that I can give you
37:48
Speaker 4: proper financial advice and you're dealing with historic currency in
37:53
Speaker 4: the bin.
37:54
Speaker 2: I hated that.
37:56
Speaker 5: Anyway, I did all the maths and I worked it out.
37:58
Speaker 4: And he was going to have to pay so much
38:00
Speaker 4: capital gains tax if he was to sell, because at
38:05
Speaker 4: the end of the day, like he'd made a lot
38:06
Speaker 4: of money because it was purchased so long ago, but
38:09
Speaker 4: he didn't feel like it was ethical, and so he
38:11
Speaker 4: was in this predicament where it's like, you own this asset,
38:14
Speaker 4: and this asset is making you money, and this money
38:18
Speaker 4: you're not feeling that good about. So instead of selling,
38:21
Speaker 4: because I was like, dude, like this is going to
38:23
Speaker 4: be a terrible financial decision. We're putting ethics to the side,
38:27
Speaker 4: but now we're overlaying ethics.
38:29
Speaker 5: Are we willing to lose this amount of money?
38:32
Speaker 4: Ultimately the answer was no, and we then worked together
38:36
Speaker 4: to find a solution that was actually, you know, taking
38:40
Speaker 4: all of the money that he was making from BHP
38:42
Speaker 4: because he decided that he didn't want to be invested
38:44
Speaker 4: in it anymore, and taking that money that that company
38:47
Speaker 4: was making and investing it in things that were directly
38:50
Speaker 4: working against BHP. I love that, so that made him
38:54
Speaker 4: feel really good about it. We were investing in areas
38:56
Speaker 4: that were also growing, that were, you know, actually providing
38:59
Speaker 4: really good returns. So he ultimately kept the BHP. We
39:04
Speaker 4: invested in other stuff, and over time, as their dividends
39:07
Speaker 4: were coming in, they were all going over here, and
39:10
Speaker 4: if we could, we were selling off bits and pieces
39:13
Speaker 4: as things happened. If the market dropped or if he
39:16
Speaker 4: had a serious loss in his portfolio, we were able
39:18
Speaker 4: to absorb some of it. So over time the plan
39:20
Speaker 4: was to sell it down, but not all of it.
39:23
Speaker 4: And I think something like that could absolutely happen. So
39:26
Speaker 4: if you have an investment that you're not adoring or
39:28
Speaker 4: that you feel is a little bit unethical, but it
39:31
Speaker 4: doesn't make financial sense to dispose of it immediately, like well,
39:34
Speaker 4: obviously stop investing in it today. Just hold it over there.
39:38
Speaker 4: What are you doing with those profits? Are you investing
39:41
Speaker 4: them in other electronic cars? Are you investing them in
39:45
Speaker 4: other assets that you feel are more ethical? And then
39:47
Speaker 4: maybe let's ride the investment wave, wait until it comes
39:50
Speaker 4: back up, and then we can sell it and maybe
39:52
Speaker 4: even do a direct swap, sell it for the same
39:55
Speaker 4: amount that you purchased it for. So like you're just
39:57
Speaker 4: disposing of it and on the same day invest that
40:00
Speaker 4: money in something else, like make a plan. So I think,
40:03
Speaker 4: for me, when I put my financial advisor hat on,
40:06
Speaker 4: instead of just taking into account your ethical values, I
40:11
Speaker 4: also need to be like, I need to put future
40:13
Speaker 4: in the best possible financial position.
40:15
Speaker 5: How do we do that and also make you comfortable
40:17
Speaker 5: with that?
40:18
Speaker 4: So that's probably the analogy slash story that I hope
40:21
Speaker 4: kind of helps you go, Oh, like, I don't necessarily
40:24
Speaker 4: have to dispose of everything. I can actually have a
40:27
Speaker 4: positive impact, and yeah, put your money where your mouth is.
40:29
Speaker 4: I get it.
40:30
Speaker 2: But also, we are not.
40:32
Speaker 4: In a privileged world. We're losing thousands of dollars just
40:35
Speaker 4: because you invested in something and now they're a douche.
40:38
Speaker 5: Is fair?
40:39
Speaker 1: Like?
40:39
Speaker 5: That is not fair?
40:40
Speaker 4: Like selling your assets and losing money because of him
40:44
Speaker 4: is just going to make you salty long term.
40:46
Speaker 3: He's laughing all the way to banks. He's rich, exactly.
40:49
Speaker 2: Let's wait until he makes us some money, sell the
40:51
Speaker 2: stuff and invest in something else.
40:53
Speaker 3: I think to Beck's point before, though, you said you
40:55
Speaker 3: would never put your opinions on your friends, and I
40:58
Speaker 3: think that's probably the one other element that I would
41:00
Speaker 3: highlight is I really don't think that your friends should
41:03
Speaker 3: be so aggressively. You know, it's one thing to have
41:05
Speaker 3: a great conversation where you challenge each other's thoughts and feeling,
41:09
Speaker 3: but it's another to really put somebody down over the choice.
41:12
Speaker 5: No, that's not a friend.
41:13
Speaker 4: A friend doesn't make you feel like trash about decisions
41:16
Speaker 4: that you're making. We are to our friends, we said,
41:20
Speaker 4: we said, you've invested in a company, but the CEO
41:22
Speaker 4: starts making headlines for all the wrong reasons.
41:24
Speaker 1: What do you do?
41:26
Speaker 5: They said, yep, I'm going to sell. Can't support that?
41:28
Speaker 4: Thirty three percent eight percent of you said only if
41:31
Speaker 4: it drops, and fifty nine percent of you said no,
41:34
Speaker 4: share isn't its ceo. Next question, we asked, are ethical
41:39
Speaker 4: investments important to you? Twenty nine percent of you said yes,
41:42
Speaker 4: I invest with purpose, fifty nine percent of you said
41:46
Speaker 4: I try, but profit matters. Twelve percent of you said nope,
41:49
Speaker 4: I'm just here for returns. Iconic and then we said, hey, guys,
41:54
Speaker 4: what's your two cents? First person said, I'm sure if
41:58
Speaker 4: we dig through a lot of CEO closes, we're going
42:00
Speaker 4: to fight a lot of skeletons.
42:01
Speaker 3: I completely agree you Saint rong.
42:03
Speaker 4: Next person said, separate the art from the artist. Musk sucks,
42:07
Speaker 4: but investing in sustainability is a sleigh.
42:11
Speaker 8: Yeah.
42:11
Speaker 4: Someone else said, I refuse to let that man take
42:14
Speaker 4: my sanity and my money. Another person said, perhaps you
42:19
Speaker 4: could balance the shares with more ethical company, which is
42:22
Speaker 4: kind of what I was talking about. Someone else said,
42:24
Speaker 4: there's accepting that no ceo or company is perfect, but
42:28
Speaker 4: musk is.
42:28
Speaker 2: The next level. Baud i'd be getting out.
42:30
Speaker 3: That's fair. Yes, that's pretty crazy, and.
42:32
Speaker 5: I've got two more for you.
42:33
Speaker 4: Second last is if you saw these headlines and then invested,
42:37
Speaker 4: that sucks, but I think you're fine.
42:40
Speaker 2: Yeah, that's a good one.
42:41
Speaker 4: And the last person said, your money has power. By
42:44
Speaker 4: selling the stock, you are sending a message.
42:46
Speaker 5: Yeah, which.
42:50
Speaker 4: It's just perpetuating the dilemma, right, Like from my perspective
42:53
Speaker 4: as an ex financial advisor on the ethical dilemma, I
42:56
Speaker 4: don't want you to lose money because you had your
42:59
Speaker 4: heart in the right place to begin with. Let's just
43:01
Speaker 4: let that balance out over time and dispose of it later.
43:05
Speaker 4: You go, Well, it's been fun, guys, thank you for
43:09
Speaker 4: doing another Friday episode with us.
43:11
Speaker 5: We have had a very good time, but.
43:13
Speaker 2: We'll see you bright early on Monday morning for a
43:15
Speaker 2: money diary.
43:15
Speaker 3: Bye guys, Bye.
43:22
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43:25
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43:29
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