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Show Me The Dividends Part 1: When Do You Actually Get the Money? · She's On The Money

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  Speaker 1: She's on the money. She's on the money.
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  Speaker 2: My name is Natasha Bamblett. I'm a proud First Nations
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  Speaker 2: woman and I'm here to acknowledge country. Hello, beautiful friends.
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  Speaker 2: We gather on the lands of the Aboriginal people. We thank,
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  Speaker 2: acknowledge and respect the Aboriginal people's land that we're gathering
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  Speaker 2: on today. Take pleasure in all the land and respect
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  Speaker 2: all that you see. She's On The Money podcast acknowledges culture, country,
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  Speaker 2: community and connections, bringing you the tools, knowledge and resources
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  Speaker 2: for you to thrive.
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  Speaker 1: Hello and welcome to She's On The Money, the podcast
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  Speaker 1: that discusses all of the issues concerning your wealth goals
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  Speaker 1: so that you can feel more in control. of your
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  Speaker 1: financial future. And if you're an investor, you'll understand better
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  Speaker 1: than anybody just how significant the impact of time and
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  Speaker 1: compound interest can be on that financial future. This week,
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  Speaker 1: we're discussing the outcomes of investing by asking the question,
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  Speaker 1: so when do you actually get the money back? While
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  Speaker 1: we love a long-term investment practice, we'll be exploring some
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  Speaker 1: of the different ways that Aussies invest, yes, including the
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  Speaker 1: short-term game. so that you can have a better understanding
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  Speaker 1: of your earnings, whether you're withdrawing now or in the
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  Speaker 1: distant future. I'm Victoria Devine and joining me on the
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  Speaker 1: deep dive couch is none other than Miss Bec Syed.
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  Speaker 3: Hi, thank you so much for having me.
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  Speaker 1: Of course, like who else would I have? So sweet.
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  Speaker 3: I do ask myself this question a lot. To what end?
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  Speaker 3: And when do we get that money?
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  Speaker 1: When do we get the money? I knew you would
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  Speaker 1: love this one. I was like scripting it up and
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  Speaker 1: having a chat with the team. And I was like,
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  Speaker 1: I reckon Bec's going to like this because it's not
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  Speaker 1: about investing and saving. It's actually about when we get
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  Speaker 1: the cash in our hot little heads. Exactly.
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  Speaker 3: We're talking about the prize at the end of it.
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  Speaker 1: Exactly.
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  Speaker 3: I'm so glad we're covering this because I know we're
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  Speaker 3: always saying the best time to start investing is now.
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  Speaker 2: Yes.
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  Speaker 3: But I'm not sure if we've ever spoken about withdrawing
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  Speaker 3: your investments or selling them down and that sort of thing.
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  Speaker 1: Yeah, exactly. And because a huge chunk of our listeners
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  Speaker 1: might actually have already begun investing or better yet, maybe
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  Speaker 1: they've been investing for years, they might actually be doing
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  Speaker 1: it for all different reasons. So Let's use an example.
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  Speaker 1: For example, some of them might be doing it for
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  Speaker 1: their retirement. Some of them might be paying themselves a
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  Speaker 1: salary in their golden years and others might be putting
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  Speaker 1: away money so that their kids can then build generational wealth.
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  Speaker 1: And there might even be a few of you out
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  Speaker 1: there that are investing for even shorter term results. Like
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  Speaker 1: I know people in our community who are investing for
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  Speaker 1: their home deposit or they're investing because they know in
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  Speaker 1: five years they want to get married. So there's a
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  Speaker 1: plethora of different reasons that people in our community would
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  Speaker 1: be investing. Yeah.
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  Speaker 2: Yeah.
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  Speaker 1: Okay.
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  Speaker 3: And I guess like the big question is when do
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  Speaker 3: you take it out and I guess like how and
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  Speaker 3: what things should you consider when you do take it out?
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  Speaker 2: Yes.
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  Speaker 1: And I think that's a very good place to start.
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  Speaker 1: So we're going to start at the very beginning, which
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  Speaker 1: isn't the strategy, but the actual reason. Because before we
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  Speaker 1: talk about how people invest, I think it's really important
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  Speaker 1: and we need to talk about why they invest. And
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  Speaker 1: before that, Miss Bex Syed, we're going to hear a
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  Speaker 1: little mention from our sponsors of today's episode. Hello. All right.
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  Speaker 1: So when we strip everything back, there are five really
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  Speaker 1: core reasons why people might choose to invest. And I
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  Speaker 1: think they're worthy of naming very clearly because your reason
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  Speaker 1: can completely change your investing strategy. And I don't think
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  Speaker 1: it's going to come as a surprise, Bec, but the
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  Speaker 1: first is long-term wealth generation. People want to create money.
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  Speaker 1: And that is the most common reason. And I guess
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  Speaker 1: it's the one that underpins almost Every single thing that
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  Speaker 1: happens in the She's On The Money community when it
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  Speaker 1: comes to talking about money, it's investing for a future
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  Speaker 1: version of your life, whether that is retirement, financial freedom,
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  Speaker 1: or even options you don't have yet. And the time
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  Speaker 1: horizon on this goal is usually more than 10 years. Okay. Typically,
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  Speaker 1: it's going to take you more than 10 years to
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  Speaker 1: achieve that. And the approach is slow and steady and
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  Speaker 1: making sure that we are well diversified and making sure
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  Speaker 1: that we are being really consistent because otherwise not much
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  Speaker 1: is going to happen. Okay.
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  Speaker 3: And would it be safe to say that majority of
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  Speaker 3: people invest for this reason?
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  Speaker 1: I mean, we've surveyed our community before and yeah, the
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  Speaker 1: majority of people who invest with any kind of discipline, yeah,
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  Speaker 1: that's why they're investing. And this is actually the most
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  Speaker 1: powerful reason to invest because Time is the ingredient, you
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  Speaker 1: could say, that makes everything else work better. Yeah, okay. Time,
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  Speaker 1: I was saying to my husband the other day, and
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  Speaker 1: he's just so sick of my BS, but he's like, Victoria,
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  Speaker 1: what are you on about? Anyway, I was saying time
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  Speaker 1: is like salt. Like I love salt. I want to
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  Speaker 1: put salt on everything. But if you put time in investment,
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  Speaker 1: it makes it better. Yes. You put salt on chips, better. Yes.
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  Speaker 1: Salted caramel.
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  Speaker 2: Yes.
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  Speaker 1: Better.
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  Speaker 2: Yes.
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  Speaker 3: Not enough salt, bad. Too much salt, bad.
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  Speaker 2: Exactly.
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  Speaker 1: Time is salt. And we're not being salty. We're using
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  Speaker 1: salt efficiently.
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  Speaker 2: Yes.
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  Speaker 1: And like, I love salt. Like you would think that
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  Speaker 1: I have a sodium deficiency with the way that I
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  Speaker 1: consume salt. I do not. I need to strip it back. Anyway,
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  Speaker 1: I digress. The second reason people might be investing, Bec,
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  Speaker 1: is income generation. This is investing specifically to create cash flow.
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  Speaker 1: Or money that comes to you regularly from your investments
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  Speaker 1: without you having to sell a single thing, right? Think
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  Speaker 1: the dividends you get paid for owning shares, maybe distributions
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  Speaker 1: from funds or income that you receive from owning a
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  Speaker 1: rental property, that sort of thing.
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  Speaker 2: Sure.
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  Speaker 1: So people who invest for income, they're often not trying
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  Speaker 1: to get rich quickly. They are trying to build a
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  Speaker 1: second income stream that then supplements or eventually replaces the
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  Speaker 1: salary that they have today. Okay.
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  Speaker 3: Oh my God, that's a dream. And I think it's
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  Speaker 3: a really good piece of info because I feel like
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  Speaker 3: a lot of people don't even know that this is
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  Speaker 3: an option. Like you can invest and the money comes
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  Speaker 3: to you without selling.
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  Speaker 1: Yeah, exactly. And the money that your money makes, makes money.
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  Speaker 1: But then people are like, cool, that sounds really sexy,
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  Speaker 1: but where does that money go? It can go into
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  Speaker 1: your back pocket if you want it to. Personally, the
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  Speaker 1: money that my money makes in my investing portfolio, I
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  Speaker 1: have set to reinvest back into that portfolio because I
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  Speaker 1: want it to continually grow. But when I, and I'll
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  Speaker 1: get to this, I'm just excited by it. When I
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  Speaker 1: get to retirement, I'm going to be like, no, no, no,
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  Speaker 1: no more of that. The money that my money makes
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  Speaker 1: is not going to continue making money. It's made the money.
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  Speaker 1: It's going to sit there and every dollar it makes
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  Speaker 1: is going to come to me as my income in
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  Speaker 1: the future. So like, I don't have to work. Okay.
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  Speaker 1: And I'll still have a paycheck, but the paycheck was
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  Speaker 1: built by me for me.
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  Speaker 3: Hell yeah.
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  Speaker 1: I think that's pretty sexy. And we're going to go
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  Speaker 1: deep on how that actually works in a little bit.
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  Speaker 1: But the third reason. Okay. is capital growth. And I
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  Speaker 1: love capital growth because again, it's like the salt. It's
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  Speaker 1: like time makes this even better. Investing specifically to make
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  Speaker 1: the investment itself worth more over time, right? Rather than
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  Speaker 1: like creating a regular income. So Beck, this is honestly
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  Speaker 1: as simple as you buying something, you hold onto it,
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  Speaker 1: it becomes more valuable. And at some point you sell
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  Speaker 1: it for more than what you've paid. It could be
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  Speaker 1: like Pokemon cards. You bought them for cheap. You held
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  Speaker 1: onto them because you knew one day they'd be valuable.
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  Speaker 1: And then one day they were valuable and you sold
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  Speaker 1: them and made some cash. And I mean, I probably
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  Speaker 1: shouldn't be promoting, which I definitely am not, purchasing Pokemon
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  Speaker 1: cards as an investment strategy. Is it an investment strategy
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  Speaker 1: for some people though, Bec?
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  Speaker 3: Sure.
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  Speaker 1: They do do that. Is it for me? No, that's
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  Speaker 1: not my journey and that is okay. But A classic
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  Speaker 1: example that maybe I would participate in is buying shares
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  Speaker 1: in a company that reinvests all of its profit back
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  Speaker 1: into growth And that will mean that the share price rises,
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  Speaker 1: but you never get paid some dividends. Okay. It's just
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  Speaker 1: like building the company into a more expensive, better company. Okay.
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  Speaker 3: And would property also count as this kind of investment?
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  Speaker 1: Yeah, exactly. And like, that's the long game. Like, I
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  Speaker 1: don't think there's anyone who buys a property and goes,
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  Speaker 1: I hope this doesn't increase in value, Bec. But a
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  Speaker 1: lot of Australians will invest in property primarily for capital growth.
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  Speaker 1: the rental income is almost secondary to the hope that
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  Speaker 1: property is going to be worth significantly more in like
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  Speaker 1: 10 or 20 years' time. And based on some recent
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  Speaker 1: stats from NAB– this makes me feel sick– rental income
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  Speaker 1: is set to significantly rise over the next few years,
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  Speaker 1: which is great news for investors, not so great news
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  Speaker 1: for renters who are already facing a really tough time. Yeah.
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  Speaker 1: Like the headline, Bec– which as of recording was released yesterday.
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  Speaker 4: Yeah.
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  Speaker 1: Do you want to, do you want to, it will
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  Speaker 1: make you feel sick. It's gross. NAB is predicting that
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  Speaker 1: rent will increase by 30% in the next two years.
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  Speaker 1: Oh my God.
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  Speaker 2: How?
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  Speaker 3: We can't afford that.
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  Speaker 1: No, no. Like really rude. Like really rude. Like I
• 9:04
  Speaker 1: am on my high horse right now. I am so
• 9:07
  Speaker 1: angry about this stuff. No, not at NAB. NAB is
• 9:09
  Speaker 1: just publishing the information and they're like, Hey, we're doing
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  Speaker 1: some research and this is what we're seeing. And like,
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  Speaker 1: inflation is cooked but this is going to be more
• 9:16
  Speaker 1: cooked and there's like a whole like this is like
• 9:17
  Speaker 1: a whole side conversation which we can definitely have and
• 9:20
  Speaker 1: girl do you think that I haven't already started scripting
• 9:23
  Speaker 1: an episode on this like I've been like frantically in
• 9:25
  Speaker 1: my google docs being like oh my god and I
• 9:27
  Speaker 1: want to talk about this and I want to talk
• 9:28
  Speaker 1: about this and here's a link from this and here's
• 9:30
  Speaker 1: what this person's saying like yeah oh I'm mad we
• 9:33
  Speaker 1: can't afford this like we just can't where's that money
• 9:37
  Speaker 1: coming from and I was having this rant to the
• 9:38
  Speaker 1: team yesterday and I was like guys This is why
• 9:41
  Speaker 1: She's On The Money is getting more and more important. Like, Bec,
• 9:45
  Speaker 1: I started She's On The Money like seven-ish years ago.
• 9:48
  Speaker 1: And I just thought, great, hopefully I'll be irrelevant one day. Like, hopefully, like,
• 9:54
  Speaker 1: I'll just teach you guys do budget do cash flow
• 9:57
  Speaker 1: investing and then my content will be so naff that
• 10:02
  Speaker 1: like why v are you creating content because everybody already
• 10:06
  Speaker 1: knows that yeah I'm like why do we need you
• 10:08
  Speaker 1: yeah but like I over the last seven years have
• 10:13
  Speaker 1: just got more and more mad and more and more
• 10:15
  Speaker 1: like oh my gosh yeah We need more she's on
• 10:20
  Speaker 1: the money like content.
• 10:22
  Speaker 2: Yeah.
• 10:22
  Speaker 1: And not just she's on the money. We need more
• 10:24
  Speaker 1: financial literacy content in general in the economy. Because if
• 10:29
  Speaker 1: you're telling me that rent is going to increase by 30%,
• 10:31
  Speaker 1: people are going to go into so much consumer debt.
• 10:34
  Speaker 1: People are going to go into literally crisis situations. Yeah. And-
• 10:40
  Speaker 1: I can't do anything about that right now. But what
• 10:42
  Speaker 1: I can do is be like, okay, Bec, we need
• 10:44
  Speaker 1: to get our, like, budgets together. We need to have
• 10:46
  Speaker 1: emergency savings. We need to put you in a position
• 10:47
  Speaker 1: where you're not going to be screwed. Yeah. And I
• 10:50
  Speaker 1: can do that. But, like, why? Why do I have
• 10:53
  Speaker 1: to keep doing this? I know.
• 10:55
  Speaker 2: I know.
• 10:55
  Speaker 1: Like, shouldn't the economy be coming down? Yeah.
• 10:58
  Speaker 3: Someone's got to step in here because it is way
• 11:01
  Speaker 3: too expensive to live. Look.
• 11:02
  Speaker 2: Look.
• 11:03
  Speaker 1: Give me the mic. I will absolutely do it. But
• 11:06
  Speaker 1: just know I'm happy to do it for you guys.
• 11:09
  Speaker 1: Thank you. I'm not happy with the economy.
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  Speaker 2: No.
• 11:12
  Speaker 1: I've got some people that I would like to have
• 11:14
  Speaker 1: good chat with. Anyway, yes, you are correct. Let's move
• 11:18
  Speaker 1: back on to task. The fourth reason people invest. And
• 11:24
  Speaker 1: this is, I don't know, boomer vibes maybe. Okay. Wealth preservation.
• 11:29
  Speaker 4: Okay.
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  Speaker 1: Okay. So they're already reaching, they're investing to protect what
• 11:33
  Speaker 1: they already have from the impact of inflation. So they're like,
• 11:37
  Speaker 1: I've got a heap of cash and I know that
• 11:39
  Speaker 1: if that cash just sits in my bank account over time,
• 11:42
  Speaker 1: it will be worth less. So I need to invest
• 11:45
  Speaker 1: it to make sure that it outperforms inflation, but they're
• 11:48
  Speaker 1: not investing aggressively to be like, oh, I'm really targeting
• 11:52
  Speaker 1: like eight or 10% returns. They're kind of like, My
• 11:55
  Speaker 1: goal is to be quite conservative and just be inflation
• 11:58
  Speaker 1: so that I can maintain my lifestyle. I can maintain
• 12:01
  Speaker 1: how much money I have. Clever. And it doesn't like
• 12:03
  Speaker 1: decrease in value.
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  Speaker 4: Yeah.
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  Speaker 2: Okay.
• 12:05
  Speaker 1: That's clever.
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  Speaker 3: So because your money buys less over time, which is
• 12:10
  Speaker 3: like a very underrated reason to invest. I didn't even
• 12:13
  Speaker 3: think about that.
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  Speaker 1: Yeah. And it's kind of rude, Bec. If you had
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  Speaker 1: $ 200, 000 and you put it into a savings account and
• 12:20
  Speaker 1: like for a lot of people, and for me, 200
• 12:22
  Speaker 1: grand is a lot of money. And that's why I'm
• 12:23
  Speaker 1: using this example. Because if I gave you 200 grand today,
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  Speaker 1: hopefully you wouldn't blow it. Let's pretend you wouldn't. But
• 12:30
  Speaker 1: a lot of people would get analysis paralysis and sit
• 12:32
  Speaker 1: on that amount of money and just put it in
• 12:34
  Speaker 1: a bank account and be like, oh my goodness, this
• 12:36
  Speaker 1: is just too overwhelming. I don't want to do the
• 12:38
  Speaker 1: wrong thing. And this happens every day. I used to
• 12:42
  Speaker 1: be a financial advisor. Wealth transfer is happening every day
• 12:46
  Speaker 1: to people our age because inheritance and insurance settlements and
• 12:52
  Speaker 1: just a plethora of different reasons. But If you have
• 12:56
  Speaker 1: that 200 grand in your account and it's earning 2%,
• 12:59
  Speaker 1: but inflation is running at 4%, which is closer to
• 13:02
  Speaker 1: what it is today, your money is losing purchasing power
• 13:05
  Speaker 1: in real time every single year. You're literally able to
• 13:08
  Speaker 1: buy 2% or 4% less every single year with the
• 13:12
  Speaker 1: same amount of cash. So people often target certain investments
• 13:16
  Speaker 1: like index funds or bonds or property or maybe gold
• 13:19
  Speaker 1: and to safeguard their existing wealth. And this is especially common.
• 13:24
  Speaker 1: And that's why I was like, it's a bit boomer.
• 13:25
  Speaker 1: This is especially common for people who are older, closer
• 13:28
  Speaker 1: to retirement, or generally just a little bit risk averse.
• 13:31
  Speaker 1: They're like, I don't know about this share market thing,
• 13:34
  Speaker 1: but do know that I need to invest my money.
• 13:36
  Speaker 1: So probably going to lean towards this. Okay. Okay.
• 13:40
  Speaker 3: Because buying gold might work out better for them than say,
• 13:42
  Speaker 3: like stashing their cash under the mattress.
• 13:44
  Speaker 1: Yes.
• 13:45
  Speaker 3: I get you. I get you. I get you.
• 13:47
  Speaker 1: What about the fifth reason? All right, so speculation or
• 13:50
  Speaker 1: investing with the goal of making money from price movements
• 13:54
  Speaker 1: rather than the underlying business value. So often in shorter timeframes,
• 13:59
  Speaker 1: so we're actually talking like day trading, options trading, most
• 14:04
  Speaker 1: cryptocurrency investing and some forms of property flipping. And I
• 14:10
  Speaker 1: want to be clear, this is not like inherently bad
• 14:13
  Speaker 1: or inherently wrong. Like these things are legitimate investment options,
• 14:19
  Speaker 1: but they operate on a completely different logic to the
• 14:22
  Speaker 1: first four and come with a very different risk profile.
• 14:28
  Speaker 1: Which we will absolutely cover.
• 14:30
  Speaker 3: Okay.
• 14:30
  Speaker 1: Okay. So those are the five whys.
• 14:32
  Speaker 3: And I love that framing because it means that before
• 14:34
  Speaker 3: you can even think about what to buy, you're kind
• 14:36
  Speaker 3: of forced to ask yourself which of those five buckets
• 14:39
  Speaker 3: your money goals fall into.
• 14:41
  Speaker 1: And that's exactly why I wanted to frame it this
• 14:43
  Speaker 1: way because I was like, but why? Like I've got
• 14:46
  Speaker 1: a toddler at home now, Bec. Mm-hmm. He's got two
• 14:49
  Speaker 1: favorite words.
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  Speaker 4: Yeah.
• 14:50
  Speaker 1: And I'm sure you can bet. I can't believe. Something
• 14:54
  Speaker 1: money related? No. I was going to say. His first
• 14:57
  Speaker 1: favorite word? No.
• 14:58
  Speaker 2: Yes.
• 14:59
  Speaker 1: Even if he means yes, he means no.
• 15:01
  Speaker 3: That's cute.
• 15:02
  Speaker 1: Even if I'm like, do you want to go to
• 15:04
  Speaker 1: the pool and have a really fun time? No. Stop it.
• 15:07
  Speaker 3: That's crazy talk.
• 15:09
  Speaker 1: Do you want a yogurt pouch? No. And then he
• 15:11
  Speaker 1: holds his hand out for the yogurt pouch. Sir, get
• 15:14
  Speaker 1: it together. I like it. Mixed signals. And the second.
• 15:17
  Speaker 2: Ah.
• 15:17
  Speaker 1: Why? Why? everything.
• 15:20
  Speaker 2: Why? Why?
• 15:22
  Speaker 1: Why? We're going to go to the supermarket, Harvey, and
• 15:24
  Speaker 1: we're going to get some butter. Why? Because we're out
• 15:26
  Speaker 1: of butter. Why? Because we ate it. Why? Because butter's yummy. Why?
• 15:29
  Speaker 1: Because it's made of dairy. Why? Like, stop. Like, I can't, like.
• 15:35
  Speaker 1: And I answer every single one of his questions because
• 15:38
  Speaker 1: I'm like, how beautiful. He's being inquisitive. But my Lord,
• 15:40
  Speaker 1: my brain, my brain, I'm like, why? I've started flipping it.
• 15:44
  Speaker 1: I'm like, why do you think that? And he goes, why?
• 15:47
  Speaker 3: I can't deal with this.
• 15:50
  Speaker 1: I can't deal with this. Anyway, you need to ask
• 15:53
  Speaker 1: yourself why before you ask yourself how, because your investment
• 15:57
  Speaker 1: goals should be the thing that determine your strategy, not
• 16:00
  Speaker 1: the other way around, Bec. So now I'm sure you're
• 16:03
  Speaker 1: probably wondering, What's the difference between each one of these
• 16:06
  Speaker 1: strategies and where's like the off ramp in terms of
• 16:09
  Speaker 1: getting your hot little hands on that cash? So let
• 16:12
  Speaker 1: me go through each of them, starting with one that
• 16:15
  Speaker 1: in my personal view is the most appropriate for most
• 16:20
  Speaker 1: people and also the least exciting.
• 16:23
  Speaker 4: Okay.
• 16:24
  Speaker 1: Which is probably why it doesn't get enough airtime. Like
• 16:27
  Speaker 1: she's not training on TikTok. Yeah. I don't think I've
• 16:30
  Speaker 1: ever seen her trend on TikTok. And that.
• 16:33
  Speaker 2: Mm.
• 16:33
  Speaker 1: As you can probably guess, is passive long-term investing. Ah, yeah.
• 16:39
  Speaker 3: I don't think I've seen her trend.
• 16:40
  Speaker 1: No. But, like, I'm trying to make her happen. I'm
• 16:43
  Speaker 1: sure she will.
• 16:44
  Speaker 3: She'll get her time in the sun.
• 16:46
  Speaker 1: Hopefully. And she's been in the sun a really, really,
• 16:48
  Speaker 1: really long time because, like, this investing strategy has existed
• 16:53
  Speaker 1: since investing began, right? But the strategy is buy and hold.
• 16:58
  Speaker 1: And as its most famous advocate, a guy called John Bogle–
• 17:03
  Speaker 1: Who was the founder of Vanguard, who you might know,
• 17:06
  Speaker 1: lots of people in our community invest with Vanguard. Yes. He, like,
• 17:10
  Speaker 1: founded that. Put it in, buying the haystack. Okay, the haystack.
• 17:16
  Speaker 1: So rather than just, like, speculating and going, oh, I'm
• 17:19
  Speaker 1: going to try and find that profitable needle in the
• 17:23
  Speaker 1: stock haystack, like, because how do you do it? Like, Beck,
• 17:26
  Speaker 1: how would you find the needle in the haystack? God,
• 17:28
  Speaker 1: I don't even know where to start.
• 17:29
  Speaker 3: Exactly.
• 17:30
  Speaker 4: Exactly.
• 17:30
  Speaker 1: Why not just buy the whole damn haystack?
• 17:32
  Speaker 2: Yes.
• 17:32
  Speaker 1: You know the needle's in there. Oh, my God. Clever.
• 17:35
  Speaker 1: Just take the haystack. And, like, it's probably cheap because there's, like,
• 17:38
  Speaker 1: one really expensive thing in there, which is the needle,
• 17:41
  Speaker 1: the hay. Like, she's full of fluff. But, like, give
• 17:45
  Speaker 1: or take. Still a very valuable haystack because we know
• 17:48
  Speaker 1: the needle's in there.
• 17:49
  Speaker 2: Yeah.
• 17:49
  Speaker 4: Right?
• 17:50
  Speaker 1: Do we know what the needle looks like? No, we
• 17:51
  Speaker 1: haven't seen it, but it's in there. We can't predict
• 17:53
  Speaker 1: which part is it in.
• 17:54
  Speaker 2: Yeah.
• 17:55
  Speaker 1: But that's okay. But there's probably, like, you know, floating around.
• 17:59
  Speaker 1: And the idea of passive long-term investing is actually quite simple.
• 18:04
  Speaker 1: You invest regularly in a diversified bucket of assets, typically
• 18:08
  Speaker 1: index funds or ETFs, and you hold them for a
• 18:11
  Speaker 1: very long time. You don't try and predict which company
• 18:14
  Speaker 1: is going to outperform which and which is going to
• 18:16
  Speaker 1: be the most popular next year and which is going
• 18:18
  Speaker 1: to do badly. You don't try and time the market.
• 18:21
  Speaker 1: You just buy the whole damn market consistently and then
• 18:24
  Speaker 1: let time and compounding do the work. And that's what
• 18:27
  Speaker 1: John Bogle kind of championed. And I think that if
• 18:32
  Speaker 1: you look at Vanguard, who is, I would say, Australia's,
• 18:35
  Speaker 1: if not internationally, the biggest issuer of ETFs and index funds,
• 18:41
  Speaker 1: that's what he makes and why he makes it. So
• 18:44
  Speaker 1: that story checks out the market. It's making sense.
• 18:47
  Speaker 3: Yeah, it does make sense.
• 18:49
  Speaker 1: Okay.
• 18:49
  Speaker 3: So let's say you're doing this on the Australian market.
• 18:52
  Speaker 1: Yeah.
• 18:53
  Speaker 3: What does this actually look like in practice? Like what
• 18:55
  Speaker 3: are people actually buying?
• 18:56
  Speaker 1: So the most common building blocks for passive Australian investors
• 19:02
  Speaker 1: are ETFs, which we talk about a lot on the show.
• 19:05
  Speaker 1: And the names you'll most commonly hear within the She's
• 19:09
  Speaker 1: On The Money community, just because we all talk about it.
• 19:11
  Speaker 1: And you know what? This is probably the most popular
• 19:14
  Speaker 1: ETF in the country. is VAS. So VAS is an
• 19:20
  Speaker 1: ETF by Vanguard, which tracks the top 300 companies by
• 19:25
  Speaker 1: market cap. So VGS, a different Vanguard ETF, tracks developed
• 19:31
  Speaker 1: world international companies. And VDHG, which not so secretly I've
• 19:36
  Speaker 1: spoken about a lot because I quite enjoy it, is
• 19:39
  Speaker 1: a diversified all-in-one fund from Vanguard that holds a mix
• 19:44
  Speaker 1: of Australian and global equities and some bonds.
• 19:48
  Speaker 2: Yes. Okay.
• 19:49
  Speaker 1: So, like, it's like the Lunchable. Yeah. Of the investing world. Uh-huh, uh-huh.
• 19:55
  Speaker 1: It's got a little bit of this. Yeah, it's like
• 19:56
  Speaker 1: a little charcuterie, but it's got, like, M & Ms
• 19:58
  Speaker 1: or something in it as well. So, like, you've got dessert,
• 20:00
  Speaker 1: everything's included, like, you're Australian, you're international, and they're just like,
• 20:04
  Speaker 1: let's package all of this up and put it here. So,
• 20:06
  Speaker 1: if you were to hypothetically only ever want to pick
• 20:09
  Speaker 1: one ETF. You'd be like, VGS, well diversified. Or sorry, VDHG,
• 20:15
  Speaker 1: well diversified. That makes sense. Yes. Okay. I see. They
• 20:21
  Speaker 1: obviously have equivalents. Vanguard is not the only one on
• 20:24
  Speaker 1: the market. There are companies like BetaShares and they have
• 20:27
  Speaker 1: an ETF called the A200 for Australian equities or BGBL
• 20:34
  Speaker 1: for international. And basically you've just got plenty to choose
• 20:37
  Speaker 1: from based on like your values and what you're looking for.
• 20:40
  Speaker 1: And it might just be dependent on which platform or
• 20:44
  Speaker 1: brokerage you're buying them through. So this might be your
• 20:47
  Speaker 1: Sharesies account or like whichever platform you choose to invest with.
• 20:51
  Speaker 1: And then, so once you've picked, you just continue to
• 20:54
  Speaker 1: make your regular contributions. Okay. Same amount. Same day each month, regardless, Beck,
• 21:00
  Speaker 1: of what the market is doing. We don't care what
• 21:02
  Speaker 1: the market is doing. Is it down? We're investing. Is
• 21:04
  Speaker 1: it up? We're investing. Is it average? We're investing. We
• 21:07
  Speaker 1: don't think about it. We do not let our emotions
• 21:09
  Speaker 1: drive our decisions around investing. What we have committed to
• 21:13
  Speaker 1: is just investing. This is called dollar cost averaging into
• 21:17
  Speaker 1: the market, and it removes the temptation to try and
• 21:21
  Speaker 1: time your entry or overcorrect.
• 21:24
  Speaker 3: Okay. So when you say hold, how long are we talking?
• 21:28
  Speaker 3: How long is long-term realistically? You just want to get
• 21:31
  Speaker 3: your hands on the cash.
• 21:32
  Speaker 1: Okay. So for this strategy to really work, I'm so sorry,
• 21:36
  Speaker 1: you want to be thinking about a minimum of seven
• 21:39
  Speaker 1: to 10 years. Ideally, much longer than that. Basically, the
• 21:43
  Speaker 1: reason why I say, and literally everybody in the investing
• 21:46
  Speaker 1: world says that you shouldn't invest money you'll no longer
• 21:49
  Speaker 1: need in the next two to three years is Is
• 21:52
  Speaker 1: because we'd hope that that money stays invested for longer
• 21:54
  Speaker 1: so that you can actually get that money to compound
• 21:56
  Speaker 1: and have your money that makes money, make money and
• 21:59
  Speaker 1: like make big money.
• 22:01
  Speaker 2: Right.
• 22:02
  Speaker 1: I did a solo episode. I recorded it just before
• 22:05
  Speaker 1: and I'm going to test this theory on you. Okay. Bec,
• 22:10
  Speaker 1: I can give you today $ 1 million.
• 22:13
  Speaker 3: Okay.
• 22:15
  Speaker 1: Good deal. Or today I'll give you one cent and
• 22:20
  Speaker 1: I'll double it. Every day, just for this month, just
• 22:24
  Speaker 1: for the rest of the 30 days of this month.
• 22:26
  Speaker 1: Which one do you want? Wait a second.
• 22:29
  Speaker 3: Absolutely the million.
• 22:30
  Speaker 1: Do you?
• 22:32
  Speaker 3: I think, yeah, well, I think there's a trick here.
• 22:36
  Speaker 1: I'm saying million.
• 22:37
  Speaker 4: Okay.
• 22:38
  Speaker 3: And I want to know how much actually that would cost.
• 22:41
  Speaker 1: So if you choose the million.
• 22:42
  Speaker 2: Yeah.
• 22:43
  Speaker 1: That is what most people would choose. Yeah. Because like.
• 22:47
  Speaker 1: You can't do the quick maths in your head because
• 22:49
  Speaker 1: the maths actually involves compounding, which is not something that
• 22:52
  Speaker 1: we inherently are able to understand and conceptualize. It's not
• 22:56
  Speaker 1: like one plus one equals two and two plus two
• 22:58
  Speaker 1: equals four. So that gets compounding. It's not something you
• 23:02
  Speaker 1: can easily calculate in your head. That's fine. That starts there.
• 23:06
  Speaker 1: The next is that a million dollars feels like a lot.
• 23:09
  Speaker 1: And we always hear like a dollar today is worth
• 23:11
  Speaker 1: more than a dollar tomorrow, right? So we're like a
• 23:13
  Speaker 1: little bit apprehensive. But- If you decided, Victoria, I'm going
• 23:18
  Speaker 1: to take the one cent today. So tomorrow I get
• 23:21
  Speaker 1: two cents. The day after that I get four cents.
• 23:25
  Speaker 1: On day 30 you'd have $ 5 million. No way. Yeah.
• 23:29
  Speaker 1: No way.
• 23:30
  Speaker 2: Yeah.
• 23:31
  Speaker 1: But like seven days in you basically have like five bucks. Oh.
• 23:38
  Speaker 1: And then like another week in it's not that good.
• 23:41
  Speaker 1: All of the compounding happens in the last week.
• 23:45
  Speaker 3: That's insane.
• 23:46
  Speaker 1: The day before you get your cash out, it's worth $ 2.
• 23:49
  Speaker 3: 5 million.
• 23:49
  Speaker 1: On the day you get your cash out, it's worth
• 23:52
  Speaker 1: $ 5 million. Oh my God, true, of course. Because of
• 23:54
  Speaker 1: the power of compounding interest.
• 23:56
  Speaker 2: Yeah.
• 23:56
  Speaker 1: Not because of some magic trick. It's literally compound interest.
• 24:01
  Speaker 1: But that million dollars felt more valuable to you until
• 24:04
  Speaker 1: I explained that, well, actually, the other one's going to
• 24:06
  Speaker 1: experience compound interest. And when you started with a really
• 24:09
  Speaker 1: small amount but had a period of time that it
• 24:11
  Speaker 1: could go over- You were like, wait, wait, wait, that's
• 24:14
  Speaker 1: a good deal. But you just threw away $ 4 million
• 24:17
  Speaker 1: because you felt like the million dollars was more powerful
• 24:20
  Speaker 1: because we didn't. fully able, like we're not fully able
• 24:23
  Speaker 1: to put on our compound interest hat without a genuine calculator.
• 24:26
  Speaker 4: Yeah.
• 24:27
  Speaker 1: It's not what the human brain is set up to.
• 24:29
  Speaker 1: And your little reptilian brain was like, more now, more better.
• 24:32
  Speaker 3: Yeah.
• 24:33
  Speaker 2: Yes.
• 24:33
  Speaker 1: Like that's where you were at. That's crazy. That's crazy.
• 24:38
  Speaker 3: I cannot comprehend that.
• 24:39
  Speaker 1: But the only way you would have been able to
• 24:42
  Speaker 1: confidently say, V, give me the one cent.
• 24:44
  Speaker 2: Mm-hmm.
• 24:45
  Speaker 1: Was education and understanding the value of that one cent
• 24:48
  Speaker 1: and understanding how compound interest could work. And that's why
• 24:51
  Speaker 1: we want to stay invested for a long period of
• 24:53
  Speaker 1: time because the longer, the more double. Hot. Yeah, hot.
• 24:57
  Speaker 1: But obviously it doesn't happen on a daily basis, but
• 25:00
  Speaker 1: like 30 days– 30 years.
• 25:02
  Speaker 3: Yeah.
• 25:03
  Speaker 1: Are we investing one cent or are we investing on
• 25:06
  Speaker 1: $ 100 today or am I giving you a million dollars
• 25:08
  Speaker 1: today and you're not allowed to invest it?
• 25:11
  Speaker 3: No, actually, yeah, totally.
• 25:12
  Speaker 1: So if we extrapolate that out and take it from
• 25:14
  Speaker 1: being one cent to, well, actually, did you want to
• 25:17
  Speaker 1: invest like $ 1, 000 a month? And you go, oh, is
• 25:20
  Speaker 1: that ever going to be worth anything? Yes. Yeah. Because
• 25:24
  Speaker 1: of the power of compounding, it works in exactly the
• 25:26
  Speaker 1: same way. Crazy, crazy, crazy. It's my favorite thing ever, Bec. Oh,
• 25:29
  Speaker 1: my God. That is wild.
• 25:31
  Speaker 3: You've really blowed my mind.
• 25:32
  Speaker 1: I'm trying. I'm trying. But back to that. What you
• 25:35
  Speaker 1: should have taken from that example that I went on
• 25:38
  Speaker 1: a tangent to tell is that you want to be
• 25:40
  Speaker 1: invested for a long time. And basically, the reason we say...
• 25:44
  Speaker 1: we don't want you to invest your money for, you know,
• 25:47
  Speaker 1: two to three years is because it should be staying
• 25:49
  Speaker 1: invested and we can't predict what the market is going
• 25:52
  Speaker 1: to do. And like, if we look at the ASX 200,
• 25:56
  Speaker 1: so the top 200 companies right now in Australia, it
• 26:00
  Speaker 1: fell by more than 35% in the early days of COVID.
• 26:04
  Speaker 1: You would have absolutely been like, oh, this is BS.
• 26:07
  Speaker 1: I'm out. Like, I'm going to take my money and
• 26:09
  Speaker 1: run away because your reptilian brain is like, I'm losing something. Run.
• 26:13
  Speaker 4: Yeah.
• 26:14
  Speaker 1: But if you needed that money in 2020, that would
• 26:18
  Speaker 1: make sense. You would have been in a pickle. You
• 26:20
  Speaker 1: would have been in trouble. But if you had the
• 26:22
  Speaker 1: ability to hold on and stay invested, the market recovered
• 26:25
  Speaker 1: fully within about a year and then continued growing, which
• 26:28
  Speaker 1: is something that the big wigs like Warren Buffett predicted
• 26:32
  Speaker 1: and then acted upon opportunistically in the moment. And they
• 26:36
  Speaker 1: made a lot of cash. Beck, I also want to
• 26:39
  Speaker 1: make a lot of cash. So I'm interested. I'm clocked in.
• 26:43
  Speaker 1: But this whole strategy is a little bit boring because
• 26:45
  Speaker 1: it's a little bit nuanced and it's a little bit
• 26:47
  Speaker 1: like abstract and not able to easily be conceptualized. That's
• 26:51
  Speaker 1: why she's not trending on TikTok.
• 26:53
  Speaker 3: It's a shame.
• 26:54
  Speaker 1: So the long horizon is what allows you to ride
• 26:57
  Speaker 1: through that volatility without it destroying you. It will actually
• 27:00
  Speaker 1: build you. That's crazy.
• 27:02
  Speaker 4: Okay.
• 27:02
  Speaker 1: It's hot, I think.
• 27:03
  Speaker 2: It is.
• 27:04
  Speaker 3: So I shouldn't be afraid of the waves.
• 27:07
  Speaker 1: No.
• 27:07
  Speaker 3: Just kind of like the market's doing its thing. Yes.
• 27:10
  Speaker 3: The fees matter here too, though.
• 27:12
  Speaker 4: I assume.
• 27:12
  Speaker 2: Oh, yeah.
• 27:12
  Speaker 1: The fees matter a lot here too. So in short term, Bec,
• 27:16
  Speaker 1: you might think like, oh, 1% in fees per year, whatever.
• 27:20
  Speaker 1: Like that's not much. Who cares? But over 30 years-
• 27:24
  Speaker 1: The math on those fees is so brutal. In passive investing,
• 27:29
  Speaker 1: keeping your costs low is not a minor consideration. It's
• 27:33
  Speaker 1: a really, really big deal.
• 27:34
  Speaker 3: I know we've been talking about the stock market and ETFs,
• 27:36
  Speaker 3: but what about our super? Would you say that's the
• 27:39
  Speaker 3: ultimate form of passive investing?
• 27:41
  Speaker 1: Yes, I love it. For most Australians, absolutely yes. Your
• 27:46
  Speaker 1: employer puts 12% of your salary into your super every
• 27:49
  Speaker 1: single pay cycle, So many of you could not say, oh, V,
• 27:52
  Speaker 1: I'm just investing and saving 12% outside of my super.
• 27:55
  Speaker 1: We don't have that type of cash flow. Absolutely not.
• 27:59
  Speaker 1: But in the year of our Lord, 2026, they do.
• 28:03
  Speaker 1: They do it inside of superannuation. And that money goes
• 28:07
  Speaker 1: into a pooled investment fund that is managed by your
• 28:10
  Speaker 1: super provider and invested across a diversified mix of different assets.
• 28:14
  Speaker 1: So most people, and like I went through this with
• 28:17
  Speaker 1: my team recently, Most people are invested in the balanced
• 28:21
  Speaker 1: or the growth option depending on their life stage and
• 28:23
  Speaker 1: their risk profile. And these options essentially do what a
• 28:26
  Speaker 1: passive diversified portfolio might. They're just managed by your super
• 28:31
  Speaker 1: fund on your behalf. They are just doing the grunt work,
• 28:33
  Speaker 1: but it is your money. You have complete control over it.
• 28:36
  Speaker 1: It is yours. We need to be looking at it
• 28:39
  Speaker 1: and looking after it. And that's why, Bec, I know
• 28:43
  Speaker 1: I'm a nag. I don't care. No, but I am.
• 28:47
  Speaker 1: Start listening and I'll stop.
• 28:48
  Speaker 3: Okay.
• 28:49
  Speaker 1: It's like a husband, and I don't nag my husband, hopefully.
• 28:52
  Speaker 1: Like I asked him the other day, I was like,
• 28:54
  Speaker 1: am I nag? He's like, look, I wouldn't say it
• 28:56
  Speaker 1: that way. And I was like, okay, well, that's all
• 28:57
  Speaker 1: I'm taking from this conversation.
• 28:59
  Speaker 3: Bye.
• 28:59
  Speaker 1: Yeah. Say no more. But like if you're consistently stacking
• 29:03
  Speaker 1: the dishwasher wrong– And I'm consistently like, Bec, you're stacking
• 29:07
  Speaker 1: the dishwasher wrong. I'm going to be a nag until
• 29:09
  Speaker 1: you do it right. And then we don't have to
• 29:10
  Speaker 1: talk about it again. So that's your superannuation. Just do it.
• 29:14
  Speaker 1: Go look after it. And then I won't pester you
• 29:17
  Speaker 1: about it. But you want to make sure that you're
• 29:20
  Speaker 1: in the right investment option for your appetite. You want
• 29:23
  Speaker 1: to review your fees and keep those costs down. And
• 29:26
  Speaker 1: if you do that, You could be hundreds of thousands
• 29:29
  Speaker 1: of dollars better off in retirement without spending a single dollar.
• 29:33
  Speaker 3: It's starting to sink in.
• 29:34
  Speaker 1: Just check it.
• 29:35
  Speaker 2: Okay.
• 29:36
  Speaker 1: Okay.
• 29:36
  Speaker 3: Anyway, let me get.
• 29:37
  Speaker 1: Back off my high horse and keep telling you more.
• 29:40
  Speaker 2: Stuff.
• 29:40
  Speaker 3: No, I really appreciate it. Genuinely. So that's passive long-term.
• 29:45
  Speaker 3: What about people who want to be a bit more
• 29:47
  Speaker 3: hands-on or really enjoy being involved?
• 29:49
  Speaker 2: Okay.
• 29:50
  Speaker 1: Okay. I do love a little involved moment too. So
• 29:53
  Speaker 1: let's talk about active investing, specifically stock picking. So this
• 29:58
  Speaker 1: is where you would go away and And you would
• 30:00
  Speaker 1: research individual companies and buy shares in ones that you
• 30:03
  Speaker 1: think are going to outperform the market.
• 30:05
  Speaker 2: Okay.
• 30:06
  Speaker 1: You're not buying the haystack. You're like, no, no, no, no.
• 30:10
  Speaker 1: I don't need that whole thing. I don't want to
• 30:11
  Speaker 1: buy the whole thing. It's got some hay in it
• 30:14
  Speaker 1: and I don't particularly like hay. I just want the needles.
• 30:16
  Speaker 1: And I think I'm smarter than the average bear. I
• 30:19
  Speaker 1: think I can find some needles on my own and
• 30:21
  Speaker 1: buy just needles. Okay. Pop off queen. You better be
• 30:24
  Speaker 1: good at this. But you are selecting individual needles you
• 30:27
  Speaker 1: think are currently undervalued, so you think you're getting a
• 30:30
  Speaker 1: really good deal on them, or have exceptional growth potential.
• 30:34
  Speaker 1: So you go, this needle can be worth more than
• 30:37
  Speaker 1: all the other needles in the future. So this feels
• 30:39
  Speaker 1: like that.
• 30:40
  Speaker 3: Thing that most people imagine when they think about investing,
• 30:42
  Speaker 3: like picking stocks as what I kind of thought as well.
• 30:45
  Speaker 3: It's like you go in, there's.
• 30:47
  Speaker 1: Lists of names. You have like three screens in front
• 30:49
  Speaker 1: of you.
• 30:49
  Speaker 4: Yeah.
• 30:50
  Speaker 1: It goes up and down. That kind of thing. Yeah,
• 30:52
  Speaker 1: like a really dark background, green everywhere, red everywhere. Yeah, yeah, yeah.
• 30:57
  Speaker 3: Exactly like the Matrix or something.
• 30:58
  Speaker 1: Yeah. No, no. So I think it's probably the most
• 31:02
  Speaker 1: glamorized version of investing. And the people who've done it brilliantly,
• 31:08
  Speaker 1: like our old mate Warren Buffett, And Peter Lynch and
• 31:12
  Speaker 1: Charlie Munger are truly extraordinary at this, right? But there
• 31:17
  Speaker 1: can only be so many buffets. Like you and I
• 31:20
  Speaker 1: might not have what it takes. And sometimes we've got
• 31:23
  Speaker 1: to be honest about our capabilities, right?
• 31:25
  Speaker 3: Sure, sure.
• 31:26
  Speaker 1: Like I sometimes say, how hard could it be? Boys
• 31:30
  Speaker 1: do it. But I'm talking about mundane things. Like I
• 31:34
  Speaker 1: can change a tire. Absolutely. You and I can change
• 31:37
  Speaker 1: our own wiper blades.
• 31:38
  Speaker 3: Absolutely.
• 31:39
  Speaker 1: I can push over the patriarchy. How hard could it be?
• 31:43
  Speaker 1: How hard could it be? Boys do it. But studies
• 31:47
  Speaker 1: show that a vast majority of fund managers or professional
• 31:51
  Speaker 1: fund managers, I should correct myself, I'm talking about the
• 31:54
  Speaker 1: people who do this full-time, who are employed and educated
• 31:59
  Speaker 1: to do this job every single day, and they have
• 32:03
  Speaker 1: a team of analysts, and they have access to All
• 32:07
  Speaker 1: of the information they need that the average person does
• 32:09
  Speaker 1: not have access to will underperform a simple index fund
• 32:16
  Speaker 1: over 10 years net of fees. Really? So they won't
• 32:19
  Speaker 1: even do a good job in comparison to just buying
• 32:22
  Speaker 1: the haystack. Ah, okay. So if the professionals mostly can't
• 32:27
  Speaker 1: beat the market consistently, why are we believing in them? Respectfully.
• 32:31
  Speaker 1: Or I don't like saying respectfully because I've never met
• 32:34
  Speaker 1: someone who says, Respectfully, and then says something really complimentary after. Like, respectfully,
• 32:39
  Speaker 1: your hair looks great today, Bec. Like, that's respectful.
• 32:43
  Speaker 3: That is respectful.
• 32:44
  Speaker 1: They usually say, respectfully, something rude. Yes. We're reframing that.
• 32:49
  Speaker 1: I say, disrespectfully.
• 32:51
  Speaker 3: Yeah.
• 32:51
  Speaker 1: Because, like, I say what I mean. So, disrespectfully... If
• 32:56
  Speaker 1: the professionals can't beat the market consistently, why the heck
• 32:59
  Speaker 1: do you think you could stock pick on your lunch
• 33:03
  Speaker 1: break or at 11 p.m. in bed better than a professional?
• 33:08
  Speaker 3: That's a great question. It's like, you know, that thing
• 33:10
  Speaker 3: where you're like, I never tried... hurtling or gymnastics. I'm like,
• 33:15
  Speaker 3: there's something about us that thinks like, I wonder if
• 33:18
  Speaker 3: I'm just really good at this and I don't know
• 33:20
  Speaker 3: it yet.
• 33:20
  Speaker 1: Yeah. And like, we've got the audacity. It's like, I
• 33:22
  Speaker 1: don't know about you, but like, I love watching the Olympics.
• 33:25
  Speaker 4: Yeah.
• 33:26
  Speaker 1: And then I'm like, oh, what was that? Like, I'm
• 33:28
  Speaker 1: critiquing professional athletes at the top of their game. And
• 33:32
  Speaker 1: I love watching the gymnastics and I'll be like, how'd
• 33:34
  Speaker 1: you fumble that flip? Yeah.
• 33:36
  Speaker 3: It's like, I couldn't even, I can't even stand for
• 33:39
  Speaker 3: more than three minutes.
• 33:40
  Speaker 1: Can someone just like point the mirror at me and
• 33:42
  Speaker 1: be like, who's got this feedback?
• 33:44
  Speaker 3: A hundred percent. So for that, like you'd have to
• 33:48
  Speaker 3: either be very lucky or exceptionally gifted to be able
• 33:52
  Speaker 3: to stock pick.
• 33:53
  Speaker 1: Yes. And I think that that is a very important point, Bec,
• 33:57
  Speaker 1: because I'm not here trying to discourage people from investing.
• 34:00
  Speaker 1: I want you to invest in I'm saying it because
• 34:03
  Speaker 1: I think that there is this expectation gap and it
• 34:07
  Speaker 1: is one of the most damaging things in retail investing.
• 34:10
  Speaker 1: People believe that if they're smart and they just did
• 34:13
  Speaker 1: their research and they pick the right companies, they'll beat
• 34:16
  Speaker 1: the market and they'll be the best at it and
• 34:18
  Speaker 1: they're going to get really rich. And sure, sometimes you will.
• 34:22
  Speaker 1: I have absolutely picked stocks that have performed incredibly. I've
• 34:26
  Speaker 1: also picked stocks that have been more than disappointing and
• 34:30
  Speaker 1: over one or two years, like, you might start to think,
• 34:33
  Speaker 1: I'm pretty good at this. I am a weapon. Can
• 34:36
  Speaker 1: you do that over 20 years? Can you do that
• 34:39
  Speaker 1: over 30 years? Can you be consistent? Also, have you
• 34:43
  Speaker 1: been lucky? Because so many of us go, no, it's
• 34:47
  Speaker 1: because I'm smart up here. How do you think that
• 34:51
  Speaker 1: you have better fund performance over one year than a
• 34:54
  Speaker 1: professional who has spent the last 30 years working in
• 34:57
  Speaker 1: this industry, has been educated, maybe has a PhD in
• 34:59
  Speaker 1: this industry, and hasn't been able to achieve that. There
• 35:02
  Speaker 1: has to be some element of luck. And I'm so
• 35:04
  Speaker 1: sorry to have to point it out. But like, I
• 35:08
  Speaker 1: can't even do that. And I live and I breathe this. Like, Bec,
• 35:12
  Speaker 1: the first app I open in the mornings is, well, yes,
• 35:17
  Speaker 1: but it's like all of my emails to read my
• 35:21
  Speaker 1: fund manager updates. That's wild. Yeah, I'm like reading the news. Like,
• 35:28
  Speaker 1: I'm like, On the financial review. Like, I love a
• 35:31
  Speaker 1: Bloomberg moment. Like, I'm doing all of that.
• 35:34
  Speaker 3: The all odds are up, or whatever they say.
• 35:36
  Speaker 1: Yeah, the all odds were up. Good idea. Were they up?
• 35:39
  Speaker 1: They were this morning, but.
• 35:41
  Speaker 3: The hell are they?
• 35:42
  Speaker 1: Yeah, I think it's worthy of going. Why would it, like,
• 35:46
  Speaker 1: ask yourself, why would Victoria not just pick individual stocks?
• 35:50
  Speaker 2: Mm-hmm.
• 35:51
  Speaker 1: Yeah, that's fair. If she's so good at it.
• 35:53
  Speaker 3: That's true. That's true.
• 35:54
  Speaker 1: Me making you question my competency is really good on
• 35:57
  Speaker 1: this podcast, which I created. Anyway, carry on.
• 36:01
  Speaker 3: It's not in me to question the competence.
• 36:02
  Speaker 1: But consistent outperformance through stock selection alone is exceptional. exceptionally rare.
• 36:10
  Speaker 1: That is not common. And even if you just missed
• 36:13
  Speaker 1: 10 of the best trading days in a 20-year period, Bec, 10,
• 36:19
  Speaker 1: just 10 days out of, what's that, like 5,000, your
• 36:24
  Speaker 1: portfolio would be worth half. of that of someone who
• 36:27
  Speaker 1: just stayed fully invested the whole time. Imagine missing 10
• 36:31
  Speaker 1: days out of 5,000 days and halving your portfolio.
• 36:35
  Speaker 2: Oh, yeah.
• 36:35
  Speaker 1: Okay. That's what happens.
• 36:37
  Speaker 3: Okay.
• 36:38
  Speaker 1: So how are you picking?
• 36:40
  Speaker 3: So who should be stock picking?
• 36:43
  Speaker 1: That's a good question. And this is where I come
• 36:46
  Speaker 1: to you to admit that I still stock pick.
• 36:48
  Speaker 3: Fair.
• 36:49
  Speaker 1: You know why?
• 36:49
  Speaker 3: It'd be fun.
• 36:50
  Speaker 1: I love it.
• 36:51
  Speaker 2: Yeah.
• 36:52
  Speaker 1: I love it. And This is where I've told you
• 36:54
  Speaker 1: guys before that I have a core satellite approach. So
• 36:59
  Speaker 1: core is full of ETFs. Satellite, that's where I have fun.
• 37:03
  Speaker 1: I mean, it's for people who genuinely love it, who
• 37:07
  Speaker 1: genuinely find the research process interesting and rewarding in itself,
• 37:11
  Speaker 1: not just a means to an end. Like a lot
• 37:14
  Speaker 1: of what I'm doing is staying engaged with the market
• 37:16
  Speaker 1: because really like it. And that's okay if you don't
• 37:19
  Speaker 1: like it. It's actually not that normal. There's a reason,
• 37:22
  Speaker 1: and this is not good, but there's a reason that
• 37:25
  Speaker 1: I got bullied at school. And it's not because I
• 37:29
  Speaker 1: was so cool. It was because I was in mathematics.
• 37:33
  Speaker 1: I was debating team captain. This is very aligned to
• 37:37
  Speaker 1: my interests. And that is okay. I'm not expecting everybody
• 37:42
  Speaker 1: else to have the same interests as me. Because I'd
• 37:45
  Speaker 1: have too many friends, you know? Sure, sure, sure. But
• 37:48
  Speaker 1: I think if you genuinely enjoy the research process and
• 37:53
  Speaker 1: put on your investing cap, you can still engage in this.
• 37:56
  Speaker 1: And if you're someone who understands fundamental analysis and loves
• 38:00
  Speaker 1: to read financial statements and annual reports and understands how
• 38:03
  Speaker 1: to value businesses and find their competitive advantage, you might
• 38:08
  Speaker 1: Simply get joy from the practice, not the profit.
• 38:12
  Speaker 3: Okay.
• 38:12
  Speaker 1: And that is okay. Yeah. But that is why I
• 38:15
  Speaker 1: let myself do that. Because, like, if it was up
• 38:18
  Speaker 1: to me, like, and we just go back to Victoria's
• 38:21
  Speaker 1: reptilian brain, which does whatever it wants, I'd just stock
• 38:24
  Speaker 1: pick all the time. Like, how fun.
• 38:27
  Speaker 2: Yeah, hell yeah.
• 38:28
  Speaker 1: But I also want long-term investment returns. So I do
• 38:31
  Speaker 1: have that core, like, genuinely 90% of my portfolio sits
• 38:35
  Speaker 1: in ETFs. I'm not. out here picking random things. So
• 38:40
  Speaker 1: you might choose to do it like I do with
• 38:42
  Speaker 1: a portion of your portfolio that I can afford for 10%
• 38:47
  Speaker 1: of my portfolio to underperform, but it's never going to
• 38:50
  Speaker 1: be my life savings or my life investments. So keeping
• 38:53
  Speaker 1: 80 to 90% of your portfolio in really boring, diversified,
• 38:57
  Speaker 1: low cost index funds first, and then playing with the
• 39:00
  Speaker 1: remaining 10 or I don't even allow myself 20, but
• 39:04
  Speaker 1: you might allow yourself 20%. in individual stocks, that could work.
• 39:08
  Speaker 1: That way, if your picks do brilliantly, like pop off queen,
• 39:12
  Speaker 1: you benefit. But if they don't, your core wealth is
• 39:16
  Speaker 1: really protected. And it's not for everybody, but it could
• 39:20
  Speaker 1: be a really slippery slope if you don't handle it properly.
• 39:23
  Speaker 1: And this is the type of stock picking that, oh
• 39:27
  Speaker 1: sorry this is the type of investing so stock picking
• 39:30
  Speaker 1: is the type of investing that people most stereotypically think
• 39:34
  Speaker 1: is the reason why investing is gambling oh okay because
• 39:39
  Speaker 1: there is the ability to lose a lot of money
• 39:41
  Speaker 1: if you don't do it right but it is still
• 39:44
  Speaker 1: not gambling Yeah. But that's where you have to put
• 39:46
  Speaker 1: your smart hat on. It feels like a really balanced
• 39:50
  Speaker 1: way to do it. Definitely less chaotic and less stressful
• 39:53
  Speaker 1: than the movies kind of make it out to be.
• 39:55
  Speaker 2: Yeah.
• 39:55
  Speaker 1: And I mean, it lets you keep the parts that
• 39:59
  Speaker 1: you love without exposing you to too much risk. And
• 40:03
  Speaker 1: for what it's worth, when you do research individual companies
• 40:06
  Speaker 1: and you understand what what you own and why you
• 40:10
  Speaker 1: own it, that's genuinely a really great way to learn
• 40:13
  Speaker 1: about business and markets, even if the returns are nothing
• 40:16
  Speaker 1: to write home about.
• 40:17
  Speaker 4: Okay.
• 40:18
  Speaker 3: So can we talk about dividends? Because I feel like
• 40:21
  Speaker 3: this is something a lot of people have heard about,
• 40:22
  Speaker 3: but don't fully understand. Like who gets them? When do
• 40:26
  Speaker 3: you get them?
• 40:27
  Speaker 2: Yeah.
• 40:27
  Speaker 3: I just like, we do. They're very confusing to me.
• 40:30
  Speaker 1: Okay. So dividend is a share of a company's profits
• 40:33
  Speaker 1: paid directly to its shareholders. So when you own shares
• 40:37
  Speaker 1: in a company, Bec, and that company makes some hot money,
• 40:41
  Speaker 1: makes some cashola, it has a choice. It goes, all right,
• 40:45
  Speaker 1: we've done our business financials this financial year. We've got
• 40:48
  Speaker 1: a hundred bucks profit. Should we reinvest those profits back
• 40:53
  Speaker 1: into the business to make our business bigger? Or should
• 40:56
  Speaker 1: we distribute some of that profit to the people who
• 40:59
  Speaker 1: own our business as a dividend and say, well, thank
• 41:01
  Speaker 1: you so much for investing in us. We have done well.
• 41:03
  Speaker 1: We would share our bounty with you. And that's really exciting.
• 41:09
  Speaker 1: And in Australia... Dividends are particularly interesting because of something
• 41:14
  Speaker 1: called franking credits.
• 41:15
  Speaker 2: Yes.
• 41:16
  Speaker 1: Which is genuinely, again, me and my little investing high horse,
• 41:21
  Speaker 1: genuinely one of the most misunderstood and underappreciated features of
• 41:26
  Speaker 1: the superannuation and Australian tax system. And franking credits work.
• 41:31
  Speaker 1: So when an Australian company makes a profit, it pays
• 41:35
  Speaker 1: company tax, which is currently 30% for very large companies. Now,
• 41:40
  Speaker 1: when it then pays a dividend to you as the
• 41:43
  Speaker 1: shareholder for owning that share, it can attach what's called
• 41:46
  Speaker 1: a franking credit. And you've probably heard me call them IOUs.
• 41:49
  Speaker 2: Yes.
• 41:50
  Speaker 1: Like a little post-it note. They just got like a
• 41:52
  Speaker 1: post-it note and stuck it on you and said, I
• 41:53
  Speaker 1: owe you franking credit 30%. Yeah. That attached franking credit
• 41:59
  Speaker 1: to that cash that was given to you. represents the
• 42:03
  Speaker 1: tax that has already been paid by the company. So
• 42:06
  Speaker 1: they've already paid tax on it, so you don't have to? Yeah. Yeah. Okay.
• 42:10
  Speaker 1: So essentially they've been like, hey, Bec, just FYI, here's
• 42:14
  Speaker 1: a little franking credit or a little post-it note. I
• 42:16
  Speaker 1: actually paid for your coffee this morning at the cafe,
• 42:19
  Speaker 1: but you need to take the post-it note because the
• 42:21
  Speaker 1: barista might not remember. So we've got to hold on
• 42:23
  Speaker 1: to our franking credits. Like we don't just go, oh,
• 42:26
  Speaker 1: they would know. Like we have to track these things.
• 42:29
  Speaker 1: And so- for you as a shareholder, that franking credit,
• 42:32
  Speaker 1: it's like the little coffee voucher, but it's a tax voucher.
• 42:36
  Speaker 1: So when you do your tax return, you get all
• 42:38
  Speaker 1: your little tax vouchers together and the franking credit offsets
• 42:42
  Speaker 1: your personal income tax on that dividend because like the
• 42:45
  Speaker 1: company's already paid tax on your profit on your behalf.
• 42:49
  Speaker 1: So like you only have to pay the gap instead of,
• 42:52
  Speaker 1: you know, paying more. We don't have to pay tax twice,
• 42:55
  Speaker 1: which is very nice. And if the franking credit is
• 42:58
  Speaker 1: worth more than your tax liability on the dividend, well,
• 43:03
  Speaker 1: it might be the case for lower income earners. And
• 43:06
  Speaker 1: there's a lot of people in our community, this could benefit.
• 43:08
  Speaker 1: The ATO actually refunds you the difference. So not only
• 43:11
  Speaker 1: did you get the dividend, you got some tax back
• 43:13
  Speaker 1: for holding that dividend back in your account because the
• 43:16
  Speaker 1: company paid it at their tax rate. And then they're like, Bec,
• 43:19
  Speaker 1: you earn less than that. Here, have some more. Oh,
• 43:21
  Speaker 1: that's gorgeous. Good deal.
• 43:23
  Speaker 3: So the ATO actually gives you the money for being
• 43:25
  Speaker 3: a savvy investor, basically.
• 43:26
  Speaker 2: Yes.
• 43:27
  Speaker 1: Slate queen. I know. And it feels like a trick,
• 43:29
  Speaker 1: but it's actually not. And this is one of the
• 43:32
  Speaker 1: genuine structural advantages of investing in Australian shares for Australian investors.
• 43:40
  Speaker 1: Something that investors in other countries just don't get access to.
• 43:43
  Speaker 1: Like it's only you and I who pay tax in
• 43:46
  Speaker 1: Australia who could reap this benefit.
• 43:49
  Speaker 2: Hmm.
• 43:49
  Speaker 1: Okay.
• 43:50
  Speaker 3: So why doesn't everyone invest for dividends then?
• 43:54
  Speaker 1: Okay. So good question. Dividend paying companies tend to be
• 43:58
  Speaker 1: a lot more mature. They're more established businesses. So you
• 44:01
  Speaker 1: think like the big banks, mining companies, think Woolworths and
• 44:05
  Speaker 1: their Ooshies and Telstra. And they often don't grow as
• 44:08
  Speaker 1: fast as like younger, more dynamic, high growth companies that
• 44:12
  Speaker 1: reinvest all of their profits back into the business to
• 44:14
  Speaker 1: grow and be really aggressive, which we're seeing a lot
• 44:16
  Speaker 1: at the moment in like the AI and tech space
• 44:19
  Speaker 1: where they're like, Bec, we can't afford to give you
• 44:21
  Speaker 1: any of our profit because like, do you know how
• 44:23
  Speaker 1: much other tech we have to invest in to make
• 44:25
  Speaker 1: us bigger and better? And you go, yeah, yeah, do
• 44:27
  Speaker 1: that because I want the bigger and better later down
• 44:29
  Speaker 1: the track. So if you're investing purely to get dividends,
• 44:33
  Speaker 1: you might be trading some capital growth potential. So like
• 44:38
  Speaker 1: you might be like, look, I really want to buy
• 44:39
  Speaker 1: a Woolies share, but I know it's not going to
• 44:42
  Speaker 1: increase significantly in the future, but it will keep paying
• 44:45
  Speaker 1: me money. And I can reinvest that money or I
• 44:48
  Speaker 1: can take it into my hot little hands. And second,
• 44:51
  Speaker 1: dividends are never guaranteed. So companies can cut or suspend
• 44:55
  Speaker 1: their dividends, which many did during COVID, which was rude.
• 45:00
  Speaker 1: And if you're relying on dividend income, a market shock
• 45:03
  Speaker 1: can temporarily reduce your income stream. So during COVID, some
• 45:07
  Speaker 1: people who were relying on dividends from their dividend-paying shares
• 45:13
  Speaker 1: and when the companies cut or suspended dividends during COVID,
• 45:16
  Speaker 1: they just stopped getting an income. You can't control that.
• 45:19
  Speaker 1: That's just how the market works. And finally, this is
• 45:22
  Speaker 1: something a lot of people miss. For newer investors in
• 45:25
  Speaker 1: the growth phase of their investing journey, dividend reinvestment is
• 45:29
  Speaker 1: often more powerful than accepting it as cash. Most companies
• 45:33
  Speaker 1: and funds offer what's called a dividend reinvestment plan, which
• 45:36
  Speaker 1: is what I alluded to before. That's what I'm doing.
• 45:39
  Speaker 1: Or a DRP, where you're Dividends automatically buy more shares
• 45:44
  Speaker 1: instead of coming to you as cash, and this accelerates
• 45:47
  Speaker 1: compounding significantly. It's more boring, but it's building your wealth,
• 45:52
  Speaker 1: and that's ideally what you want to do, right?
• 45:54
  Speaker 3: Yeah, and so you could just, like, I guess it
• 45:57
  Speaker 3: depends on your platform, but you could instead choose to
• 46:00
  Speaker 3: just get that directly put into your bank account.
• 46:01
  Speaker 1: Yeah, and this is why we do this entire show. Okay,
• 46:04
  Speaker 1: before I get into the spicier end of investing, let's
• 46:07
  Speaker 1: take a really quick break. All right, welcome back. We
• 46:13
  Speaker 1: cannot do an episode on how Australians invest without talking
• 46:17
  Speaker 1: about property, Bec, the great Australian dream. It is culturally
• 46:21
  Speaker 1: baked into us. Okay, the Australian dream. Hell yeah, I'm keen.
• 46:25
  Speaker 1: All right, the Australian dream. And property is a legitimate,
• 46:28
  Speaker 1: powerful investment vehicle that has built generational wealth for a
• 46:32
  Speaker 1: huge number of Australians. But I want to talk about
• 46:34
  Speaker 1: it very honestly, including the bits that don't always make
• 46:38
  Speaker 1: the conversation. And there are two main ways Australians use
• 46:41
  Speaker 1: property as investments at the moment. So the first is
• 46:44
  Speaker 1: in the family home, which most Australians think of as
• 46:47
  Speaker 1: an investment, even though technically it's a consumption asset. Like
• 46:52
  Speaker 1: to me, you live in it. It generates no income.
• 46:54
  Speaker 1: It costs a heap of money for you to maintain it. But-
• 46:58
  Speaker 1: In Australia, the capital gains tax exemption on your primary
• 47:03
  Speaker 1: place of residence make it one of the most tax
• 47:07
  Speaker 1: effective wealth building tools available if you're a homeowner. Crazy, crazy, crazy.
• 47:11
  Speaker 1: And like we need to talk about more. Yeah. Or
• 47:14
  Speaker 1: something I think we need to talk about more is
• 47:16
  Speaker 1: just inherently people who are homeowners have wealth easier. Yeah.
• 47:19
  Speaker 1: People who are homeowners are going to be able to
• 47:22
  Speaker 1: be richer for longer. Don't get me wrong. There is
• 47:25
  Speaker 1: a strategy of renting forever, but inherently, if you own
• 47:28
  Speaker 1: your own home, you are far more financially stable. And
• 47:31
  Speaker 1: we should definitely talk about that more. Not because I'm saying, Bec,
• 47:34
  Speaker 1: more people need to do it, but we need to
• 47:36
  Speaker 1: acknowledge that privilege and then plan around it for the
• 47:38
  Speaker 1: rest of us who that might not be an option.
• 47:41
  Speaker 3: That's very true.
• 47:42
  Speaker 1: Like we need to be blunt about it in a way,
• 47:44
  Speaker 1: because I think for so long, people are dancing around it,
• 47:47
  Speaker 1: being like, oh, it's not that bad. Like you could
• 47:49
  Speaker 1: just rent forever and invest and do this and do that.
• 47:52
  Speaker 1: You're going to be significantly financially disadvantaged, call it what
• 47:55
  Speaker 1: it is. Let's plan for it. Anyway, again, another side note.
• 48:00
  Speaker 1: The second includes investment properties. And this is where I
• 48:03
  Speaker 1: think it gets really complicated. An investment property generates A,
• 48:09
  Speaker 1: rental income, which is taxable, and B, hopefully capital growth
• 48:12
  Speaker 1: over time, In Australia, there are two related tax concepts
• 48:16
  Speaker 1: that honestly come up constantly. You would have heard of
• 48:20
  Speaker 1: negative gearing.
• 48:21
  Speaker 2: Yes.
• 48:21
  Speaker 1: And you also would have heard of the capital gains
• 48:23
  Speaker 1: tax discount.
• 48:24
  Speaker 2: Yes.
• 48:25
  Speaker 1: We talk about both of these things.
• 48:26
  Speaker 4: Absolutely.
• 48:27
  Speaker 1: I have heard of.
• 48:27
  Speaker 3: Both of those. They do come up heaps in recent
• 48:29
  Speaker 3: budget and like election chats and stuff.
• 48:31
  Speaker 1: Political junk, right? Yeah. Always. People are up in arms, Bec,
• 48:35
  Speaker 1: and here is why. So negative gearing is when the
• 48:38
  Speaker 1: costs of your investment property like The interest on the loan, maintenance,
• 48:43
  Speaker 1: management fees, and council rates exceed the rental income that
• 48:47
  Speaker 1: you receive. And because it's costing you more to own
• 48:50
  Speaker 1: the property than the rental income coming in, you're operating
• 48:54
  Speaker 1: at a loss. The loss that you make is tax
• 48:57
  Speaker 1: deductible against your other income. So the government is essentially
• 49:02
  Speaker 1: subsidizing a portion of your investment losses on the bet
• 49:06
  Speaker 1: that the capital growth will eventually make it worthwhile.
• 49:10
  Speaker 3: Oh, so that's like good for renters, I say.
• 49:13
  Speaker 1: No, good for owners.
• 49:16
  Speaker 2: Oh.
• 49:16
  Speaker 1: Very good for owners.
• 49:17
  Speaker 3: But like they might not increase the rent for that.
• 49:20
  Speaker 2: Reason?
• 49:20
  Speaker 1: I don't know. No, they might leave it that way,
• 49:22
  Speaker 1: but I mean not always increase rent because like inherently
• 49:26
  Speaker 1: expenses are really expensive at the moment. This is why
• 49:28
  Speaker 1: it is in the media at the moment because people
• 49:30
  Speaker 1: want to cap that because they don't want to be
• 49:32
  Speaker 1: taking advantage of it. Totally. Literally exactly. And it works
• 49:35
  Speaker 1: best in rising markets over long timeframes. Yep. the CGT
• 49:40
  Speaker 1: or the capital gains discount is the company incentive for
• 49:44
  Speaker 1: investment properties, right? So if you hold an investment asset
• 49:47
  Speaker 1: for more than 12 months before selling it, right now,
• 49:51
  Speaker 1: and it is potentially set to change in July next year,
• 49:55
  Speaker 1: you only pay capital gains on 50% of the profit.
• 49:58
  Speaker 1: So if you sold your house back and you made
• 50:01
  Speaker 1: a $ 200, 000 profit, you'd actually only pay tax on $ 100, 000
• 50:05
  Speaker 1: of that.
• 50:05
  Speaker 3: Okay.
• 50:06
  Speaker 1: But while legislation is absolutely not through yet, there are
• 50:10
  Speaker 1: some very significant proposed changes to CGT, which might come
• 50:14
  Speaker 1: into effect in the next six months, depends, but probably
• 50:18
  Speaker 1: by July next year. So if you aren't already in
• 50:20
  Speaker 1: the market or you plan on selling in the next
• 50:22
  Speaker 1: 12 months... I think you'll need to get your head
• 50:25
  Speaker 1: around the new rules or around the CGT exemption and
• 50:28
  Speaker 1: like not so subtle plug, come and talk to us
• 50:31
  Speaker 1: at Zella Money because this right now is your opportunity
• 50:35
  Speaker 1: to get into the market and get a negatively geared
• 50:37
  Speaker 1: property if that's what you want. Because if you hold
• 50:41
  Speaker 1: it today, they will let you have it forever. But
• 50:43
  Speaker 1: if you hold it after July next year, you can't
• 50:46
  Speaker 1: have that same rule applied to you. Oh, my God. Okay.
• 50:48
  Speaker 3: It all sounds very, very complex. It is. While owning
• 50:51
  Speaker 3: an investment property might come with tax advantages, I have
• 50:55
  Speaker 3: a feeling the recent changes that you're talking about might
• 50:57
  Speaker 3: make people think twice about this.
• 50:59
  Speaker 1: Yeah. And Bec, CGT and all of that and property,
• 51:03
  Speaker 1: it's not the only thing holding people back. There are
• 51:05
  Speaker 1: actually several reasons why you might be reluctant about property
• 51:09
  Speaker 1: as an investment. And this episode has been absolutely jam-packed.
• 51:13
  Speaker 1: So what we're going to do, Bec, is we're going
• 51:14
  Speaker 1: to split it in two and do the other half
• 51:17
  Speaker 1: on another date. So let's put a pin in it
• 51:20
  Speaker 1: and I'll come back at the top of property and
• 51:22
  Speaker 1: let you know what the other thing I think is
• 51:24
  Speaker 1: really important to take into consideration. So Our lovely listeners,
• 51:28
  Speaker 1: thank you. That is all we have time for today
• 51:30
  Speaker 1: and we hope that you've enjoyed this episode and that
• 51:33
  Speaker 1: you've come away with some new considerations and maybe you're
• 51:35
  Speaker 1: open to hearing some more on the next second part
• 51:38
  Speaker 1: of this and understanding what this whole investing landscape looks
• 51:42
  Speaker 1: like and maybe what your position in it exactly is.
• 51:46
  Speaker 1: As always, we'll share any links or resources in our
• 51:49
  Speaker 1: show notes. And if you aren't already subscribed, please do.
• 51:52
  Speaker 1: It means you'll never miss an episode, a learning or
• 51:54
  Speaker 1: a takeaway. We will catch you later in the week
• 51:56
  Speaker 1: for Friday drinks. Until then, take care of yourselves and
• 51:59
  Speaker 1: of each other. See you for part two.
• 52:01
  Speaker 2: Bye, guys.
• 52:06
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• 52:08
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• 52:12
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• 52:16
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• 52:31
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