Latest / The Curve / The Fifa World Cup has a new rule. It's called pay your child support.

Transcript

The Fifa World Cup has a new rule. It's called pay your child support. · The Curve

0:00
Coming up in today's episode, it is the 10-year anniversary of Brexit.
0:05
What did this decision do to the UK, to economies really around the world?
0:11
It is such an important reminder how intertwined politics, money and the whole economy is.
0:17
The biggest IPO ever, SpaceX, is not doing too well.
0:21
I didn't invest, it's a humble brag.
0:24
We break down why it's not doing well and also we reveal some shocking news that came out.
0:29
the day before it went public.
0:31
There are 130,000, mostly men,
0:35
who are going to be showing up to the FIFA World Cup
0:37
and refused entry.
0:39
Why?
0:40
It all comes down to financial abuse
0:43
and not paying child support.
0:44
We're going to talk about the story
0:45
and why it's such an important signal
0:49
that people need to start stepping in
0:51
and making sure that people actually pay child support.
0:54
Welcome to The Curve Weekly,
0:56
where we read the finance news so that you don't have to.
0:58
I'm Vic Harris, a finance professional who's had a career making money for other people.
1:02
And I'm Sophie Hallwright, ex-TV radio producer,
1:05
who was really sick and tired of not understanding the economy, so we started this podcast.
1:09
But before we dive into today's headlines, here's a word from our sponsor.
1:18
This episode of The Curve Weekly is made possible thanks to Pathfinder KiwiSaver Plan,
1:22
helping you invest alongside your values.
1:24
We're really excited to bring you the ethical hotline where you can ask all your tricky ethical questions.
1:29
Each month, Pathfinder will answer the most interesting, popular, or polarizing question.
1:33
To submit yours, follow the link in the podcast show notes.
1:36
Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver plan.
1:40
A product disclosure statement is available at pathfinder.kiwi.
1:44
This is probably quite out of touch to complain about the heat when I know a lot of our audience are based in the southern hemisphere.
1:50
When it's the middle of winter
1:52
I know and we're like
1:53
It's so hot, bloody heatwave
1:55
No, I woke up three times to have a cold shower
1:57
In the middle of the night
1:58
So I couldn't sleep
1:59
It was so hot in my house
2:01
I've got an alarm clock next to my bed
2:02
And it was 32 degrees
2:04
It's crazy
2:05
I'm also sick of complaining about it
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Sorry, okay, let's swiftly move on
2:09
But you know, Brits just love complaining about the weather
2:12
I saw this meme
2:14
Which we're going to get into in a second actually
2:15
But it was like
2:16
When the Prime Minister resigns
2:18
But all people talk about is the weather
2:20
yeah it's like sorry so true but i've been practicing like i'm freezing i'm really cold
2:26
oh i wish i had you know a blanket you're trying to tell yourself you're cold yeah and hoping that
2:31
it would actually help you're gaslighting yourself yeah i'm gaslighting yeah you're
2:34
literally gaslighting myself yeah like oh oh it's so funny i saw two people faint one in a pub yeah
2:41
it's like oh my god because people are out drinking because it's sunny and you forget it's
2:45
yeah I've booked a train to go to the country today because my house is absolutely unbelievable
2:51
like it's actually unbearable because we've got several skylights so it's almost like being in a
2:56
glass house like it's so boiling anyway I went to book my train and there was all these warning
3:02
signs being like do not travel unless it's absolutely necessary there's so many people
3:06
with compromised health if you're on a train and it was that hot and they didn't have air con
3:10
dangerous i have been getting so many ubers because the aircon i did an uber to work this
3:16
morning too dang dang dang oh we've found a financial angle for the weather obviously
3:21
there's uber but you know it wouldn't be me if i wasn't thinking about the financial angle of
3:25
this heat wave i was also seeing a lot of posts like cafes were like look we can't open tuesday
3:31
wednesday thursday because we don't have aircon and so our staff you know it's not safe for our
3:35
staff if london's over a certain heat then you know you don't have to go to school or work or
3:40
like people have these like policies in place anyway and I was like gosh it must be disruptive
3:43
so then I was like and hot days in the UK cost the economy 1.2 billion dollars a year and lost
3:52
productivity like you can see why countries in Europe like Spain, Greece, Italy they have
3:58
siestas I have been so struggling to function and concentrate and I'm just so irritable
4:07
do not touch me do not it's so funny you say the irritable thing I was visiting a friend last
4:12
weekend in Zurich I went down to the river I then went to meet her and one of her friends straight
4:17
afterwards and I was walking in this heat like in such a foul mood yeah and I bumped into her
4:23
not realizing she was that close like I hadn't mentally prepared to be socially acceptable or
4:28
like god I was so hot and annoyed and I was like hi she's like are you okay and I was like yeah
4:33
and then afterwards I was like I was so hot I was like an iPhone that was like overheating to the
4:38
point of not being able to function I had to put me in a fridge put me in a fridge now to cool me
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down socially not okay it's just so outrageously hot yeah I've got my niece and nephew staying
4:47
from New Zealand and so there's six of us in our two-bedroom house and I got flannels on them
4:54
they're like auntie why don't you have a pool you know like just I love that you're called auntie
5:00
it's so cute i know it's still it's stuck because they couldn't say vic but now i'm still wit it's
5:03
way more fun yeah way more fun yeah aren't you wet everybody is is living and breathing this
5:07
heat wave right now it's in europe it's like we're seeing so many more extreme weather events
5:12
and yeah just like put on your little investing hat is there an opportunity here that we can
5:15
invest in is this something that is going to be long term i will say i think most people will be
5:22
relying on you for that yes i've been completely honest that's all right i'm happy to help business
5:28
idea for anyone or what little portable air conditioning units the uk would absolutely
5:34
suck them up even when i was in switzerland last weekend my friend was saying that someone told
5:39
her to put a big bowl of ice in front of a fan or we did that last night did it work no the ice
5:43
just melted in like two seconds yeah everyone's like your skin looks amazing i'm like it's just
5:49
the juice.
5:49
Because I'm sweaty.
5:53
Perks of the heatwave.
5:54
It actually did look
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amazing.
5:56
I look quite good today.
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Thank you.
5:57
Yeah, I know.
5:58
It's so true.
5:58
This is just like a natural body oil, but it's
6:01
sweat.
6:01
Oh my god, it's so funny.
6:03
When we have more extreme weather
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events, there's such a need for
6:07
energy consumption because you're either trying to
6:09
cool down or heat up.
6:11
Whereas when we're in the middle, you're kind
6:13
of, you know, you're using an average amount
6:15
of power or you're not having to do these extremes.
6:18
like even just ice makers must be on 24 7 right now i went to get a coffee this morning that's
6:22
so run out of ice i was like oh we'll see you later and in true brit style we have spoken for
6:28
about 10 minutes on the weather we go off we go moving right along to some more exciting news or
6:35
maybe more i don't know it hasn't really got as much attention to be honest as the heat wave this
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is important regardless where you are there's so many learnings in this yeah before you tune out
6:45
and think politics, snooze fest, there is so much interconnection between politics and money,
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just in the same way where you may never have connected the dots between weather and the
6:57
economy.
6:57
There's so much we can learn from what's going on.
7:00
So for anyone that has missed this,
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we'll give a quick overview of what's going on.
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10 years ago this month, the UK actually voted
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to leave the EU.
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So it was Brexit.
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I cannot believe that was a decade ago.
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I know.
7:12
I remember sitting
7:13
there when the results were coming through and I was like absolutely not this is I feel like when
7:17
you're in an echo chamber of your own like community and friends that all kind of think
7:21
the same way it's hard to think that think that there's people sometimes that can think such an
7:26
extreme different way it's like when Trump got into power and you just look there at the situation
7:32
thinking there's just an absolutely no way yeah and then you forget that you're so surrounded by
7:37
people who think like you often wear similar clothes have similar lives like you do you
7:42
gravitate towards people that are similar and that have have similar issues or like not as many
7:47
issues you know things that don't frustrate them or they haven't been impacted and so yeah when
7:51
brexit when the brexit vote came out yeah i mean everyone else was absolutely shocked but
7:56
that's that was 10 years ago this month and the eve of the anniversary kia starmer the uk prime
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minister resigned which was kind of quite ironic so the uk will now have its seventh prime minister
8:10
in 10 years that's so extreme so extreme if we compare that to new zealand we've had four in 10
8:16
years and two of those have left like bowed out when they've been on top not being like the issue
8:22
with the uk prime minister is pushed out by his own party because nobody wanted him there seven
8:27
in 10 years how disruptive trying to bring about change for a country when the average 10 years
8:33
like what one to two years not even not even that and let's link this to investing for a second so
8:39
I would say the hill you will die on is invest in founder-led businesses you know this is something
8:44
that you love and it's dying yeah she's like on this hill she's absolutely she was a great friend
8:50
she really cared about investor-led businesses the the reason this is so connected to money and
8:55
investments is if you think about the whole concept of having someone running a business
9:00
that owns it, that founded it.
9:01
They want to see long-term success.
9:03
So they don't make quick wins.
9:04
You're not going for instant things
9:06
that make you look good in your role
9:08
like you may if you're a CEO
9:09
that didn't have any equity in a business.
9:11
It's the same with politics
9:13
because if you have seven people in power in 10 years,
9:16
the stuff that you can bring in and change is so minute
9:20
because you're so short-sighted
9:22
in the decisions you're making for the country.
9:24
And the UK is in a real debt-ridden,
9:29
it's a it's a really such an issue if you have people in power that don't have the room and
9:34
space to make difficult decisions to get the country to a new it's really problematic and
9:39
the UK is in a bit of a dire situation you know since Brexit like there's there's so many stats
9:45
I could get into in terms of you know how the UK has done versus the US and like it's it's pretty
9:49
terrible if you think of the UK as a company you've got this company that's kind of lost its
9:54
way.
9:54
It used to be like the glitzy financial hub of the world.
9:58
You know, you had a lot of overseas
9:59
investors and companies sitting up here and it was really prosperous.
10:03
And now that shine has gone
10:06
away.
10:06
It's got a lot of struggles economically.
10:08
So you've got to find someone that wants to take
10:11
that on and know they're going to piss off a lot of people because to bring about meaningful change,
10:17
you do have to implement some tough things, whether it be higher taxes or tax cuts.
10:22
That's
10:22
the hardest part with all these prime ministers is they try to then the UK people or even the party
10:28
themselves get pissed off and then they leave and it's it's a really hard cycle to get out of
10:36
it's so complicated isn't it because it's like we look at the UK economy and we're like okay look
10:40
it's not great right now I mean there was a time where it was absolutely the most thriving one of
10:46
the most thriving economies in the world now it's really struggling and it all comes a lot of it
10:53
comes back to Brexit like yes there was some increased taxes you know doing trade now with
10:58
the with the European Union etc but it was more the fact that it created so much uncertainty for
11:04
businesses that the businesses within the economy the UK economy weren't able to flourish and thrive
11:11
and therefore hire people pay higher wages and that feeds back into the economy so when you
11:15
create this disruption it trickles down and the same thing with this whole non-dom status which
11:24
was it will just never not be funny to me I know but it essentially the UK was no longer attractive
11:31
for overseas people to buy houses here or you know have houses overseas and I guess kind of
11:37
spend money in the UK because they were now taxed and so say if I was like a wealthy person from
11:44
Dubai and I was living here and then all of a sudden my tax rates gone up I'm moving my my
11:49
fortune but as well as my family putting them in schools maybe in you know another country if you
11:53
just change that tax back I'm not then moving back all of a sudden you know like those are big big
11:57
changes and if you have that on I don't know hundreds of thousands of people or millions or
12:02
billions of dollars like that doesn't just come back as you change the taxes again you know it
12:07
takes a while even Portugal I mean they introduced some very favorable taxes for tech startups and
12:13
this was like a long time ago and it's still now starting to filter through and people are like oh
12:19
Portugal's actually a really great place to live and it's like feeding through this economy these
12:22
things take time but I guess what I'm saying is 10 years on and the economy is in a I would say
12:28
worse much worse position than beforehand even if you reverse that decision now it's not all of a
12:34
sudden overnight whoever you get into power into politics and the and the policy they put in place
12:39
can have huge ripple effects.
12:41
The main reason for Brexit was immigration.
12:44
And a lot of UK citizens were worried about too much immigration
12:48
or too many immigrants coming into the UK.
12:49
Interestingly now, the immigration has never been at a higher level
12:53
than it was last year.
12:54
What do you mean?
12:55
So Brexit didn't solve that problem at all.
12:58
Oh my gosh.
12:59
So all of this palaver didn't even solve the issue at hand.
13:03
Similarly to what we're seeing in the US,
13:05
with people just get so up in arms about the idea of it's my country, it's my job, you're
13:11
taking an opportunity.
13:12
I just feel like it's such a classic and easy way for a politician to turn
13:18
people on their side.
13:20
They know that it's one of those things that irks people, so they use it to
13:23
try and get people to vote for them.
13:25
It's an easy blame.
13:26
It's not immigration that's the issue.
13:30
it's it could be solvable for so many other things but because this is an easy target and it's it's
13:36
polarizing right it's it's it's horrible but it is what happens when economies are not doing well
13:43
and people are frustrated you want to point the finger yeah let's talk about brexit 10 years on
13:49
and what the uk actually looks like financially now brexit costs the uk between about six to
13:56
8% of GDP.
13:57
That's not like a dramatic crash.
13:58
It's over a 10-year period.
14:00
So it's kind of been like
14:01
this slow handbrake on growth.
14:05
Before Brexit, the UK was one of the fastest growing economies in
14:10
this G7, which is kind of the top seven economies in the world.
14:13
Who's G7 then?
14:14
It's Canada, France,
14:15
Germany, Italy, Japan, UK, US.
14:18
So it used to be kind of the top of this group and it's now
14:21
dropped below the middle countries like France Canada they're all growing you know much faster
14:28
than the UK which when you think of the UK I mean I still think of it as this yeah financial hub
14:35
people walking around in gilets you know all of that me too I mean I still feel so excited about
14:41
the UK and the potential over here but the the sentiment generally for most people in the UK
14:46
is everyone's pretty disappointed and disheartened and feeling kind of sad about the state of the
14:51
economy and the strength of the pound it's not great over here exactly yeah i mean i just think
14:57
maybe new zealanders have this like exciting kind of glimmer in their eye like i'll go to london the
15:01
big big bad london and make all this money i still have that sort of mindset and then you hear people
15:06
be like oh i haven't got a job and i've been here for six months you know like it's used to come
15:10
over here and earn so much and make a real killing financially and then go back to you know like you
15:16
used to come here because it was so prosperous we also had covid in the middle of this we had
15:20
COVID in the middle of Brexit, which has kind of stuffed up a whole lot of the stats.
15:24
But since
15:24
COVID, the UK has grown 5%.
15:28
The US has grown about 15%.
15:32
Even house prices, like house prices,
15:34
they're roughly up about 30%.
15:37
But in the US, they're up 80% since 2016.
15:39
But if we look at
15:41
the affordability, so this is like how much of your salary does it take to purchase a house?
15:46
In the UK, house prices sit at around eight times your average earnings.
15:51
And in London, that's about 10.
15:53
So affordability is still absolutely terrible here in London.
15:56
In Auckland, that's about 11 times.
15:57
You have to have 11 times your salary to purchase a house.
16:00
So if you own $100,000 or pounds.
16:02
Oh my God.
16:04
House prices sit at around 10 times that in London.
16:06
Whoa, like that's so outrageous.
16:10
And in Sydney, it's 14 times.
16:13
I mean, holy, I'm not surprised.
16:16
it would be so expensive to buy in Sydney.
16:18
But what you get paid in Sydney is higher also.
16:22
So the opportunity there is greater,
16:24
even though it's still 14 times,
16:25
so it is in relation to Europe.
16:26
But you could say that about London too.
16:28
Totally, yeah.
16:29
I think the wages is the really depressing part
16:32
since Brexit.
16:33
So British workers have been literally living
16:36
through a nearly two decade,
16:38
so that's 20 years,
16:40
so not even Brexit, even before that,
16:42
stagnation, which means your wages
16:44
have pretty much gone nowhere.
16:44
Is that in 20 years it's happened over here?
16:47
Yeah.
16:47
Because you've got inflation and wages haven't really kept up with inflation.
16:51
We've had this dramatic inflation.
16:53
We had like 11% inflation a few years ago.
16:56
Because wages haven't kept up, wages have stagnated essentially.
17:01
So like if we had 3% inflation and we've probably had 3% wage growth.
17:07
But doesn't that mean that you are keeping up with inflation?
17:09
You're keeping up, but you're not doing any better.
17:11
People may have had pay rises and thinking that they're, wow, I'm doing so much better, but actually they're not because it's just keeping up with inflation.
17:17
Totally.
17:17
Like you could have been on £40,000 two years ago and now you're on £50,000.
17:23
You're like, woohoo.
17:24
But if you actually look at that in relation to inflation, it's actually not a woohoo.
17:29
If wages had kept growing at their pre-2008 level, so before global financial crisis, the average worker would be earning around £10,000 more than they would today.
17:38
We are on average all about £11,000 worse off today than we were in 2008.
17:45
I'd like to speak to my boss about a pound.
17:47
Victoria Harris, I would like £10,000, £11,000 deposited into my bank account immediately.
17:52
This is averages as well.
17:54
You've got people earning heaps, you've got people earning not so much.
17:57
Anyone listening to this, if you are not keeping up with inflation or above inflation, keep this in mind.
18:03
There was one takeaway from this podcast.
18:05
ask like please please please either be growing your savings at an inflation rate or higher or
18:10
asking for a pay rise each year at inflation or higher like it just if you don't ask you don't
18:15
get it is ridiculous okay ridiculous this also goes for anyone wherever you are this is not just
18:23
in the uk inflation has been insane the last 10 years 20 years all over the world so if you are
18:30
looking at your pay increases thinking stunning look at my little pay rise how exciting no no no
18:36
no compare that to inflation and double your pay rise this is what frustrates me with some employers
18:41
it's like oh we'll give you a four percent pay rise it's like no no that that's standard yep
18:46
that's off to one side and it's like okay what about me as a person in terms of my performance
18:52
you also then look at businesses that have tried to keep their prices steady because they're trying
18:57
to not it's hard because like if we were to look at for example things that we sell we're not
19:02
raising our prices in line with inflation because it's way too people would be like what on the one
19:08
hand it's like I fully agree with you but I do think you need to also look at the context of
19:12
what your workplace is like if you're in a big corporate kind of different I think you do need
19:16
to be aware but I think if you are a business owner you need to factor in definitely if inflation
19:23
goes to 10% what does that look like in our cost base but also there's other there's other nifty
19:28
ways I remember we spoke to a friend the other day and he was like yeah when my team hits targets
19:34
we give them a week's holiday yeah that was so cool on top and for them and for younger staff
19:39
that's that's great yeah that's such a non-financial incentive that can help people if you can't pay a
19:47
highest salary.
19:48
We have two brilliant episodes that we did with Meggie Palmer from Pep Talker,
19:52
and her whole premise is how to get a pay rise, the things that you need to do, what you should
19:56
be thinking about all year round, et cetera.
19:58
So we'll link those in the podcast show notes because
20:00
she is amazing and it's really practical.
20:04
So if you're listening to this and you're feeling
20:05
pumped up and you're thinking, all right, fine, I need to pay more attention to this,
20:08
but I actually don't really know where to start.
20:10
Really, really good episodes.
20:12
Coming up after the break, we're going to give an update on the biggest IPO
20:16
in the history of the world.
20:17
So traumatic.
20:18
I know.
20:19
Also, your arms crossed looking very serious.
20:22
And also we've had a very, oh, it's sad,
20:26
but it's also incredible story
20:27
that surrounds the FIFA World Cup, child support.
20:31
It's a whole thing.
20:32
And we're going to get into that.
20:33
But first, a word from today's sponsor.
20:35
I invest so much more now,
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but I still don't feel great
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about profiting from companies that I don't believe in.
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You know, weapons.
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I just, I personally do not want to be making money from conflict.
20:46
But what about weapons companies that supply like both sides of the conflict?
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Pretty confusing, right?
20:51
I know, it's so confusing and I feel like I'm not alone in that.
20:55
Yeah, I mean 80% of New Zealand investors don't want weapons in their KiwiSaver,
20:59
yet Mindful Money reports that over $400 million is still invested in weapons manufacturers,
21:05
which is why choosing the right provider matters,
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like Pathfinder KiwiSaver plan, which aims to avoid profiting from conflict.
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They've been recognized as weapons-free by Mindful Money and written loads of blogs on this topic,
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even covering their position on Gaza, which a lot of people have avoided.
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So if you want to check out our podcast show notes to learn more,
21:22
and thanks so much to Pathfinder for making this episode of The Curve Weekly possible.
21:26
Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver plan.
21:30
A product disclosure statement is available at pathfinder.kiwi.
21:34
Oh, we've got some really exciting news.
21:37
And I will say when I saw these headlines, I thought Victoria Harris is going to be absolutely
21:43
thrilled with this.
21:44
You're my biggest hype girl.
21:45
I love it.
21:46
I'm going to do an overview here.
21:47
SpaceX is one of the biggest IPOs that's ever happened.
21:50
Yes.
21:50
It had a record like spike straight after it went public, which a lot of people weren't
21:56
expecting.
21:57
And one of the things that Vic has talked about for the last few weeks on this podcast
22:01
is be aware that there is a lot of hype going on.
22:04
There is a lot of hype.
22:06
and yes, this may have initially done well.
22:08
Does it mean it's going to stay there?
22:09
We don't know.
22:10
So Vic didn't buy the stock.
22:12
So it was one of those weird things.
22:14
We were talking about it quite a lot within the team
22:16
and, you know, off mic and, you know,
22:18
are you going to do it?
22:19
What are your thoughts on it, Vic?
22:20
You know, and the fact that you didn't buy it
22:21
was quite interesting.
22:22
Two reasons for that.
22:23
Firstly, it's actually very hard to get stock at an IPO
22:27
and particularly an IPO that's kind of the most hyped
22:31
and talked about and the biggest.
22:32
the second is I genuinely spent so much time looking at this and I was I just could not get
22:39
comfortable with what it was priced at in terms of its earnings it's it's losing billions of dollars
22:46
you know the shareholder structure there were so many things which I can dig into a second but
22:50
that was I was like you know what no and if this does really well I can sit here and be like no I
22:56
hand on heart stuck to my investing strategy which has been tried and true and hey if I miss out on
23:02
something that does well that's life there's plenty more fish in the sea so Vic landed in
23:07
Greece last week off she was on holiday and what did she see when she landed I landed and I saw
23:13
that I was up 30% and I was like oh why did you stick to your investing strategy you get really
23:19
like no because you know you get really defensive almost and when you're kind of deciding
23:26
to invest in something it's like okay if this does go up and and does really well I had to
23:31
get comfortable with that if it went down 30% or if it went up 30% you know how would I feel
23:37
what would I do you know you kind of had a bit of a bit of a plan kind of interrogating yourself
23:42
it's almost like it's almost like you analyze your own psyche in the different outcomes that
23:47
could happen and what price would it get to before I buy before I actually start buying the stock
23:53
what would need to change like you do do this and we used to do it back in my finance days you'd have
23:58
devil's advocate so you'd pitch an idea and there would be someone's sole job to like rip it to
24:03
shreds quite fun oh i'd love to be that person i think you'd be quite good at that person too
24:08
how could i be wrong here is kind of what you're trying to think of the stock ipo'd 135 dollars it
24:13
went up to about 200 it's now down to about 154 so it's down about 25 still well above its ipo
24:21
price so people that bought an IPO were still doing very well Elon Musk still literally in there
24:26
I think this is a really good reminder for me and anyone else that missed out it's like
24:30
there is so many FOMO hype IPOs and if we look at the history of IPOs particularly ones that
24:38
do well straight out the gates there is genuinely 99.9% of times a better opportunity to buy the
24:45
stock at a lower price.
24:47
There is a lot of hype and people do buy things that aren't based on
24:51
fundamentals and the company is going to start reporting financial results.
24:55
It could have a
24:56
slip up, it could have something delayed.
24:58
And because there is so much hype that could lead it
25:01
to not do so well in terms of its share price.
25:05
I don't know what's going to happen in the short
25:06
term.
25:06
I'm just, I'm glad I stuck true to my investing strategy.
25:09
And yes, it's still up in
25:12
terms of its IPO price but if it had gone down significantly and I hadn't stuck to my investing
25:18
strategy I would feel 10 times worse if you'd bought SpaceX and it had gone up and then it
25:23
had gone down or you bought it and it instantly plummeted how do you self-regulate because it's
25:29
so emotional it's so hard because I would have had my head in a salt and vinegar bag of chips
25:34
and eating the entire thing and then I would have moved on to the giant Haribos and eaten an entire
25:39
a pack you know like I've been there I've definitely been there yeah it's okay what
25:44
mistake did I make and how can I not do that again and I have done this many times bought
25:49
IPOs at hype and not stuck to investing fundamentals and you know because everyone
25:54
else is and I don't want to miss out and I've learned okay you did that once that's okay you
26:00
make a mistake you learn from it do it twice no no no no no yeah yeah you need to learn and hey
26:07
if you get things wrong and you will and anyone will that's investing you will get some investments
26:12
wrong that's why we say diversify and invest in lots of different things as long as you learn from
26:16
your mistakes that's okay like I had some absolute disasters to the point that I didn't even want to
26:21
tell my boss because I was so petrified I think the calmness and the rationale just the pragmaticness
26:27
of my boss was like oh okay this is okay as long as you learn and you write down your learnings and
26:33
you don't or you try not to make that same mistake again if you make it again and again again and you
26:37
try and hide it again and again again that's when it's like okay see you later you are not this is
26:42
not for you yeah but you also know me as a person i'm very good at compartmentalizing yeah it's so
26:48
scary sometimes no you're just you're really pragmatic you're really being logical and
26:53
compartmentalizing emotion from sensible decisions what we should say before we wrap this up for
26:58
anyone that also didn't invest in spacex is this is essentially an enormous marketing campaign
27:03
to go public.
27:04
There are PR strategies.
27:06
There is so much involved in making sure that people feel
27:09
FOMO.
27:10
In the same way, I look at the Cannes Festival at the moment and there's all these
27:13
creators there.
27:13
And I'm all of a sudden like, why am I not at the Cannes Festival?
27:16
Obviously,
27:17
I need to be there next year.
27:18
It's the same with an IPO.
27:20
They are being strategic to make people
27:22
feel like they need to jump on the bandwagon.
27:24
Someone said to me, a CEO's main job is to sell
27:28
the business.
27:29
And I was like, no, they've got to manage team.
27:31
They've got to, you know,
27:32
and they're like, no, no, if you're a public company, all you want is your share price to go
27:36
up.
27:36
The way your share price goes up is profits growing.
27:39
But a big part of that is also making
27:42
it attractive in whatever way possible so that people buy it.
27:47
So yes, an IPO is, it's like opening
27:50
your flagship store.
27:51
You want to get as many headlines, you want people talking about it,
27:54
you want from all of that.
27:55
So, so, so spot on.
27:57
And continually selling it.
27:59
You know, you want
27:59
to update the market when there's positive things you want to release really good results I guess
28:04
with SpaceX as well one thing worth mentioning and probably the reason it's fallen over the last
28:09
kind of four or five days is people taking profits you know if you made a lot of money during
28:14
you know the initial IPO you're like cool I'm gonna take some profit now but also the day before
28:20
the IPO one of the biggest and most influential investment rating agencies the MSCI in the US
28:28
handed SpaceX a triple C rating for its environmental, social and governance.
28:33
What is triple C rating?
28:34
It's like, it's the lowest of lowest of lowest rating that you can get.
28:37
Like it's pretty bad.
28:39
Wow.
28:39
So a lot of responsible investing, sustainability, ESG funds, like they cannot own SpaceX.
28:46
So even though you're coming out trying to sell your stock and sell your company,
28:51
the fact that Elon Musk has 85% of the voting power,
28:55
So you're effectively investing in a private company.
28:58
You effectively have no say as a shareholder.
29:00
This is kind of what made MSCI give.
29:03
So it's not even really environmental.
29:05
It's actually more focused on the G.
29:07
So ESG, environmental, so like land.
29:11
Climate, water, planet, all of that.
29:13
Social, people.
29:15
Yeah, do you look after your staff?
29:17
Do you pay them right?
29:17
All of that.
29:18
And then G stands for governance, which is the idea of who is running the business.
29:21
The idea of having a really not diversified governance structure, so one person having that much control, is not good.
29:29
And also the directors on SpaceX are also on multiple other boards that Elon Musk is on.
29:36
So everyone's like, it's not independent.
29:37
You're not having a board.
29:39
It's like there needs to be independent, but they're kind of in bed with Elon Musk.
29:42
So everyone's like, it's not actually a truly independent board.
29:45
There's so many things.
29:46
it's almost like if you're investing in SpaceX, you need to realize you don't have the rights as
29:51
a normal shareholder.
29:52
You are kind of at the whim of whatever Elon Musk decides, essentially.
29:56
This
29:56
was not a good headline to come out the day before you IPO.
30:00
And also, there's a lot of ESG ETFs that
30:05
cannot own SpaceX.
30:06
Oh, of course, they have to pull out.
30:07
If you are an investor who has particular
30:10
mandates or really strict rules around being an ethical fund or investing with a particular lens
30:16
that's ethical it automatically discounts a lot of money that would otherwise have perhaps flown
30:21
into that business if you own an ESG fund or ETF you won't be owning SpaceX anytime soon if you
30:28
hold like a broad index fund like an SP500 SpaceX will be coming your way very soon if you're
30:33
thinking about buying it directly just make sure you're aware you are buying a company that is
30:38
losing billions of dollars a year trading at over a hundred times revenue and a CEO who controls
30:44
nearly 90% of the votes.
30:46
That's what you're dealing with.
30:47
So just be aware.
30:48
This is a really fun story.
30:50
I know!
30:51
I saw this and I thought,
30:53
this is exactly why this podcast exists.
30:56
Now, Argentina has just used the World Cup
30:59
to do something that I would say anyone that has a child...
31:02
I'm like, how has this not been done earlier?
31:04
They handed the US a list of, was it 130,000?
31:08
It's 130,000.
31:09
Okay.
31:10
Mostly dads who haven't paid child support
31:14
and said block them from the stadiums.
31:16
They're not allowed to go in.
31:17
And the preface of this is if you can't afford to feed your kids,
31:21
but you can afford a World Cup ticket, like what the hell?
31:25
Absolutely, job on.
31:26
Yeah.
31:26
World Cup tickets are super expensive.
31:28
And if you can afford a World Cup ticket and you can afford flights,
31:30
why are you not paying child support?
31:32
And I just think people are so passionate about the World Cup.
31:36
It's a great way.
31:37
Imagine if you had a ticket and you got to the entrance and you got denied
31:41
because your name was on a register of 130,000 people.
31:44
Wait, so they buy the ticket and then they get there
31:47
and they're not allowed in.
31:48
That's even better.
31:50
I know.
31:50
So it's not like they can't spend the money.
31:52
They spend the money and they get there
31:54
and they're shamed and not allowed to go in.
31:55
And Argentina shared that list with US Homeland Security
31:58
and the US has been separately revoking passports
32:03
for Americans who owe over $100,000.
32:06
Well, kind of absolute dirtbags owe $100,000
32:09
in child support.
32:11
That should be illegal.
32:12
A hundred percent.
32:14
This isn't a story about
32:15
football.
32:15
This is a story about who bears the financial cost when the system fails.
32:20
It's been a personal issue of, you know, couples probably arguing of, you know, you pay me.
32:25
No,
32:26
I'm not paying you.
32:27
And now it's become a system and being like, no, no, this is a
32:30
economic issue.
32:31
This is something we need to take control of and we will.
32:35
And that's what Argentina
32:36
in the US are doing, rather than being like, you guys sort it out.
32:39
The financial burden then falls on majority women
32:42
because 80% of custodial parents are mothers.
32:46
I heard the Shameless Girls talk about this on the podcast.
32:48
They said it should be illegal almost for a man to leave
32:52
before a child is two years or they have to pay, you know,
32:55
they were basically talking about the idea that financially,
32:58
if someone has a baby and then they're on their own,
33:01
it is unreal what that's going to be doing to them.
33:04
But also, the man could just walk away and never pay child support.
33:08
So to be able to think that this is slowly making its way into the actual financial system
33:13
where it's not just a social nicety to pay child support.
33:17
It's like you have to or you'll be publicly shamed.
33:19
I think it's more, it should be set up like a KiwiSaver or like a superannuation or pension.
33:25
If you're earning and it's on a register that you owe $100,000, that's like a debt.
33:30
You have to start paying it off.
33:32
That's such a bad idea.
33:32
It's like a student loan.
33:33
Oh my god.
33:34
You get 3% of your salary or whatever it is that goes into paying this.
33:38
Because the total child support that's owed in the US alone is $115 billion.
33:45
From people that just refuse to pay.
33:47
Yeah, people that refuse to pay.
33:48
And in Australia, unpaid child support is now being framed as financial abuse because...
33:52
It should be.
33:54
If child support payments were paid in full in Australia,
33:58
21% of children in single mother families would be lifted out of poverty.
34:02
This whole FIFA World Cup and calling out the men that are not allowed to go, I mean, it's a signal of a much bigger issue.
34:10
And it's also just highlighting the fact that this is actually, this is not something that you can get away with in a relationship setting.
34:18
You're right, the idea of it being something that's almost registered, like how many kids do you have and are you separated?
34:23
Cool, this is the minimum that you need to be paying off every month, week, etc.
34:27
Hearing you say that, I'm like, why does that not even exist?
34:29
And many women don't chase or follow up out of like fear or retaliation or anything like that.
34:36
So to remove that.
34:36
Or they don't want to be in comms at all with them.
34:39
So to remove that and make it a system issue or a policy rather than an individual will sort it out issue just removes that fear, removes that drama.
34:49
Oh, that's honestly genius.
34:50
When we're talking about men and women in this situation, the reason we're saying, you know, men aren't the ones paying is because the 80% of custodial parents are mothers.
34:57
So I just want to be clear.
34:58
It's not like we're solely dads.
35:00
There is probably mothers out there as well.
35:02
And there's single fathers.
35:04
And the mothers haven't been paying.
35:05
It shouldn't be gendered anyway.
35:07
It should be if you separate or you're the one to leave.
35:10
It should be the same if you're in a same-sex female relationship.
35:13
If you leave someone in a financial position where they're financially in charge of a child that you brought into the world too.
35:20
Yes.
35:21
It's not.
35:21
Totally.
35:22
Like, if you have a baby, you are financially responsible to look after that child in the world
35:28
and ensure that it has the basic things that it needs to not live in poverty.
35:32
You made a decision to purchase a World Cup ticket.
35:35
You also made a decision to have a child.
35:38
So, fork up.
35:40
Just imagine being the person on the door.
35:43
Oh, John Smith.
35:44
No, sorry, you won't be coming in today.
35:46
Imagine being on a date and being like, let's go to the World Cup.
35:48
And then you get to the front and you're like, why can't you get in?
35:51
oh I just owe a bit of transport oh my I actually feel I would pay to be the person with the list
35:58
you can come in if you pay uh 120 000 right now yeah we've got the bank details if you want to
36:03
transfer I mean we laugh but it is quite sad to be honest it is very sad I'm just glad that there's
36:09
a massive sporting event that everyone is so passionate about that like can literally put
36:13
rules like this in power and bring about change yeah pretty amazing so we have a community question
36:18
from Miriam.
36:20
She says, hi, ladies.
36:21
Firstly, you do an amazing job.
36:23
Thank you.
36:23
I'm just going to
36:24
continue to read all the nice stuff out.
36:25
I'm not going to skip through that.
36:26
The Curve Weekly is
36:27
the highlight of my newsletter week.
36:29
Oh, so she reads it.
36:30
Cool.
36:30
If you don't get this, you can get
36:32
it via the link in the show notes if you don't get our newsletter.
36:35
And the podcast makes my drives
36:37
so much more interesting.
36:39
Thanks for the confidence that you've given me to ask for more money.
36:41
Oh,
36:42
quite a timely, very relevant community question.
36:45
And look elsewhere.
36:46
I've just landed a new job
36:48
with a 40k pay rise.
36:50
Go Miriam!
36:51
Sorry, this is amazing.
36:53
The female leadership team looks incredible
36:54
and I'm so excited.
36:56
I was fine in my old job,
36:57
but fine isn't really a long-term strategy.
37:00
We did not make this up by the way.
37:02
My question is,
37:03
we can comfortably live off my old salary,
37:06
so what's the best way to manage the extra income?
37:08
This is a stunning question.
37:09
More into shares,
37:10
build a bigger cash buffer,
37:12
both.
37:13
I'm determined to not let the new lifestyle earnings creep in
37:15
and just spend it,
37:17
because honestly,
37:18
How many pairs of shoes and activewear sets does one person need?
37:20
Laughy face.
37:21
I am obsessed with everything that's done with this message.
37:25
That's amazing.
37:26
Firstly, congratulations on the new job.
37:28
Absolutely.
37:29
The fact that you have recognized you're in a position where you're about to potentially drift into lifestyle create is so good.
37:37
Having that awareness.
37:38
Rather than doing it and then being like, oh my gosh.
37:41
It's so much easier to nip it in the bud than try and revert back.
37:44
I would like to say as someone who does not have as much money as I would like and if I am being
37:51
completely honest if I had more I think it would bring me a little bit more happiness I would put
37:58
a little bit of that into those things so for example for me if it was actually I really want
38:03
to up my class pass because if I go to a class three times a week I'm I know I'm going to feel
38:08
better be happier I would look at the parts of my life where I know that I'm not spending on which
38:14
would bring me more happiness.
38:15
I would add bits to that, not in a crazy way, not like I need
38:18
to get five new pieces of jewelry or anything like that, but that's what I would do.
38:22
And then I would be putting all the rest of it into investments.
38:25
If you have enough of a cash
38:27
buffer, for example, if you have three or six months of what you need, your essentials,
38:32
and you feel really comfortable with that buffer, I wouldn't add more cash for the sake of it.
38:36
If you look at what you have as your emergency fund, and it's perhaps slightly less than you
38:42
would feel comfortable with then short build it up to a place that you would feel better about
38:46
other than that if I didn't need the money for my you know immediate lifestyle and I had my buffer
38:52
and I wasn't in debt I would be investing almost majority of what my pay rise was when I first
38:58
read this my first reaction was like invest invest invest obviously but then I was like
39:04
no just chill Vic just chill and it depends on what their goals are or what they what they want
39:10
to achieve.
39:10
Of course, if they've got some short-term ones, then maybe put it into more
39:13
high yield or high returning investments.
39:16
Say they want to go on a holiday or have a wedding
39:18
or something that's, you know, or buy a house or something, then maybe put it in things like
39:23
term deposits or high returning savings accounts, just because you don't, you kind of want to
39:28
protect that money because the market goes up and down and you don't want the market at that point
39:32
to have gone down and then you've kind of lost money.
39:35
So you're worse off.
39:35
So I think the steps
39:36
here would be firstly, look at your spending and your lifestyle.
39:39
Is there anything that would
39:40
add more happiness or joy in a not over the top frivolous way there's more that you could actually
39:47
put within your budget that would you think significantly improve your life and I would start
39:50
with that I just wouldn't take it to the extreme don't add like money into your budget you're the
39:55
lifestyle creep just because you're earning more money don't just chuck an extra yeah 200 in your
40:00
travel fund or an extra 200 pounds or whatever it is into your beauty account just because now you
40:06
have a pay rise I would say look at what you're spending and if you were to increase any of those
40:11
areas would you be happier I personally think probably like simple answer this if she's if
40:16
she's happy with her spending and her lifestyle at the moment put as much as you can into into
40:22
into shares and investments if you've got an emergency fund as well and you're happy with that
40:27
put as much as you can into investments if they're short term maybe a little bit into
40:31
you know to cover those in a high yield savings account but the more that you can put into
40:34
your investments, the better off you'll be long term.
40:36
If you don't need the money for five years,
40:38
you should put it all in investments.
40:41
If anyone else has questions,
40:43
either comment where you're listening,
40:44
if you've got any comments or things that you want to share.
40:47
We love reading those comments.
40:48
It's so great.
40:49
If you have a more personal question,
40:51
you want to DM us, you can, or email.
40:52
Actually, please can someone send a voice note to the hotline?
40:55
I'm obsessed with the hotline.
40:56
It's so fun to listen.
40:57
Oh, Vic.
40:59
Yes.
40:59
Next week, an exciting week for the Curve podcast.
41:02
What, what, what?
41:03
there's going to be two of these episodes a week so we're going to two curve weekly so monday and
41:07
wednesday if you want to find out what is going to be in those episodes or or what it's going to
41:12
look like highly recommend following the show like following or subscribing wherever you listen so
41:17
then you just get notified every time yes and other than that good luck out there in the in
41:23
the heat anyone that's on the in the northern hemisphere hope people are not freezing their
41:27
us off in um southern hamster new zealand um but have a great week thank you so much for listening
41:33
to the curve weekly make sure you hit subscribe or follow wherever you're listening so you're
41:37
always up to date with the latest finance and investing news and feel free to leave a comment
41:41
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41:44
we've got new curve weekly episodes for you to listen to every monday but until then
41:48
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41:52
all things money we're also around all week on socials if you're hungry for more curve content
41:56
and all the links are in this podcast's show notes.
41:58
We hope you have a great week
41:59
and we'll catch you for the next episode
42:01
of The Curve Weekly on Monday.
42:10
Okay, quickly, The Curve was created to empower
42:13
and educate you about investing,
42:14
but we are not financial advisors.
42:16
Our platform exists for educational purposes only
42:19
and it doesn't provide personalized investing advice
42:21
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42:22
and should not be relied upon
42:23
to make an investment or financial decision.
42:26
and always remember to do your own research before making any investment or financial decision
42:30
we're here for any knowledge and support you need but the final call is always yours
42:34
and thanks for being here you got this yeah we know you got this