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Victoria & Brooke Reveal the Really Simple Framework Behind Their Investment Portfolios · She's On The Money

• 0:00
  Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations
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  Speaker 1: woman and I'm here to acknowledge country t Glenn Young
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  Speaker 1: Ganya Niana, Kaka yah Ya bin Ahaka Nian our gay
• 0:11
  Speaker 1: in Nimbina, yakarum jar Dominyamiga Umagahawakawaman, damon Imlan Bumba ban
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  Speaker 1: Gadabomba in and now in wakah Ghana on yak rum
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  Speaker 1: jar Watnadaa. Hello, beautiful friends, we gather on the lands
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  Speaker 1: of the Aboriginal people. We thank acknowledge and respect the
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  Speaker 1: Aberiginal people's land that we're gathering on today. Take pleasure
• 0:31
  Speaker 1: in all the land and respect all that you see.
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  Speaker 1: She's on the Money podcast acknowledges culture, country, community and connections,
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  Speaker 1: bringing you the tools, knowledge and resources for you to thrive.
• 0:44
  Speaker 2: She's on the Money. She's on the Money.
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  Speaker 3: Hello, and welcome to She's on the Money, the podcast
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  Speaker 3: that's here to show you that investing isn't just for
• 1:12
  Speaker 3: the rich, it is for you too. If you're ready
• 1:15
  Speaker 3: to start investing, but you're thinking where do I even begin,
• 1:18
  Speaker 3: this one is for you or maybe you've already bought
• 1:21
  Speaker 3: needed here for maybe you already own a few direct shares,
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  Speaker 3: and you now have like a portfolio that feels a
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  Speaker 3: little bit random. You're not sure if it's diversified. It
• 1:30
  Speaker 3: just feels a little bit chaotic. You're not totally clear
• 1:33
  Speaker 3: on what you're building, and you're just excited to be
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  Speaker 3: starting to invest. And honestly, girl, you are not alone.
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  Speaker 3: We have all been there. So today we are giving
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  Speaker 3: your investing strategy a glow up. We are breaking down
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  Speaker 3: one of the easiest ways to build a portfolio that
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  Speaker 3: actually works. I'm Victoria Devine and I am a retired
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  Speaker 3: financial advisor who is wildly passionate about getting more women
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  Speaker 3: just like you to start building wealth through investing. And
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  Speaker 3: with me today is someone who has quickly become a
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  Speaker 3: favorite in our podcast episodes, especially our Investments every in
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  Speaker 3: the office. Oh, your favorite in the office. That's nice.
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  Speaker 2: That's a nice.
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  Speaker 3: You are smart, you are strategic, and I am trying
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  Speaker 3: really hard to yes, please don't tell my husband, and
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  Speaker 3: you have built an investing portfolio that could have you
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  Speaker 3: retiring by the time you are thirty five. Miss brook Green,
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  Speaker 3: welcome back to the show.
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  Speaker 2: Thank you for the rule of the ah. I feel
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  Speaker 2: like I Miss Jessica Ricky Jesse, it's Ricky.
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  Speaker 3: Everybody says that, But like every time you slide into
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  Speaker 3: my DMS and tell me that I'm saying Jess's name wrong,
• 2:35
  Speaker 3: cheers for the engagement, Like, thank you, I appreciate it, illium.
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  Speaker 3: Do you think that I am doing that accidentally? No,
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  Speaker 3: it's not an accident.
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  Speaker 2: She's engagement farming.
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  Speaker 3: I have to say, our community loves hearing about your
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  Speaker 3: investing journey. I think the idea of hearing from someone
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  Speaker 3: who is a salaried employee who is working towards this.
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  Speaker 2: I'm working nine to five.
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  Speaker 3: Yeah, but it's also just really empowering because it's one
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  Speaker 3: thing to hear from me, and then people go, but
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  Speaker 3: like that's kind of not as relatable. You're a business owner,
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  Speaker 3: and like you have so many different elements and things
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  Speaker 3: going on. I think having somebody who's walking the walk
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  Speaker 3: that really is relatable to our community is just making sense.
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  Speaker 3: And we've had so many messages from people, and You've
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  Speaker 3: been in the messages as well, because you just like
• 3:18
  Speaker 3: reading about yourself from people saying how inspired they are
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  Speaker 3: by what you've built, especially knowing that you didn't start
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  Speaker 3: out with a finance degree or a massive inheritance. You
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  Speaker 3: were just like really consistent and really clear about your vision. Yes,
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  Speaker 3: but today we're not going to be talking about like
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  Speaker 3: the outcome or the results or performance. We're actually getting
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  Speaker 3: into something a little bit more gritty, and we're going
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  Speaker 3: to talk about strategy behind it.
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  Speaker 2: Yep.
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  Speaker 3: And we're going to talk about a specific strategy that
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  Speaker 3: I believe both you and I employ. Yes, are you
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  Speaker 3: excited for this? I am? Now, Brooke, I would say,
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  Speaker 3: having poured over your investment portfolio, because I am nothing
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  Speaker 3: if not perfect, I feel like.
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  Speaker 2: It's like it's ingrained in us to be nosy.
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  Speaker 3: Yeah, and like that's cool, that's market research.
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  Speaker 2: Yeah.
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  Speaker 4: Sorry, So if you guys want to send in what
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  Speaker 4: your portfolios are, we'd love to look at them. Yeah.
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  Speaker 3: Absolutely. Unfortunately I can't provide you any but we will
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  Speaker 3: just go thank you for showing me. Yeah, thank you.
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  Speaker 3: It's like gossip, and the best type of gossip is
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  Speaker 3: about other people that I have nothing to do with. Yes,
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  Speaker 3: but your portfolio is relatively impressive.
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  Speaker 1: Thank you.
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  Speaker 3: Was that always the case?
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  Speaker 1: No?
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  Speaker 4: Oh okay, no, no, this is boring. I'm the average
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  Speaker 4: retail investor. Like my portfolio was really boring and probably stupid.
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  Speaker 4: If a financial advisor looked at it the day that
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  Speaker 4: I started investing, I'm like, bro, what.
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  Speaker 2: Are you doing? But that's okay, chaos investor.
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  Speaker 4: Yeah, we do the best with the information that we
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  Speaker 4: have at the time, and then as we get more educated,
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  Speaker 4: we make better decisions that aligned with our financial goals.
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  Speaker 3: And we have to make some cleanup like and that's okay.
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  Speaker 3: We can't be perfect, no, And I think so many
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  Speaker 3: people are so scared to start investing because they're so
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  Speaker 3: worried that they'll make the wrong decision.
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  Speaker 2: They're like, what if I have to sell it, You'll
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  Speaker 2: never be perfect? Right time to start, and.
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  Speaker 3: It's all good, like try you know what, you can
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  Speaker 3: sell something and you can get into something else.
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  Speaker 2: But like what you used to have. If you sell something,
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  Speaker 2: you make a mistake, you can try again.
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  Speaker 3: I've done that.
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  Speaker 2: Yes, I've done that. I have paradigm.
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  Speaker 3: I've had shut up. I'm not getting rid of paradigm.
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  Speaker 3: I have had sell down regret before and it happened
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  Speaker 3: to the best of us. Rude, not too I'm getting
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  Speaker 3: back into that. When did it actually click for you
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  Speaker 3: that maybe chaos investing was not for you? And you
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  Speaker 3: needed an actual plan. Was that like you bought a
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  Speaker 3: couple of things and you were just hoping for the best,
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  Speaker 3: and then you were like, hold up, yeah.
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  Speaker 4: I think realizing that, Okay, well, if I'm investing in
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  Speaker 4: direct shares and I don't have lots lots of direct shares,
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  Speaker 4: my risk is heavily weighted in one or two things
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  Speaker 4: and one or two industries they probably mirror each.
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  Speaker 3: Other, so my risk is so so so high and confronting.
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  Speaker 2: It's really confronting it, especially as like a cause you
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  Speaker 2: think you're doing a really good job and then all of.
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  Speaker 3: A sudden, I'm not.
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  Speaker 4: And it's like because of I'm a salaried employee. It's
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  Speaker 4: like I don't have the money to splash around. If
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  Speaker 4: I make the mistake, that's on me. Like, I'm up,
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  Speaker 4: she'd creek without a puddle. So I needed to make
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  Speaker 4: a decision that was less risky but still going to
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  Speaker 4: provide me with growth options. So that's when we started
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  Speaker 4: employing the call versus satellite approach.
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  Speaker 3: Yeah, I was going to tell them about that spoiler approach,
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  Speaker 3: but I guess was there a moment in time where
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  Speaker 3: you were like, oh, I probably should change this or
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  Speaker 3: were you just like, I'm going to slowly work towards.
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  Speaker 4: This, like twenty twenty COVID times that was like my
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  Speaker 4: real like, okay, this is I've got nothing else to
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  Speaker 4: do except for TikTok and invest and that worked out
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  Speaker 4: really well for you when worked out for me? Go
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  Speaker 4: following on TikTok at splin, that's I'm going to make
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  Speaker 4: that my own.
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  Speaker 2: Clip for myself.
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  Speaker 4: So I kind of started reading lots of investing things.
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  Speaker 4: Then I joined a million one Subreddit says you probably
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  Speaker 4: already know. Listen to podcasts. I listened to Shoes on
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  Speaker 4: the Money, which is so funny. Full circle, and then I.
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  Speaker 3: Kind of realized, okay, I only indoctrinate people into my
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  Speaker 3: employee least if you're like in the colt already.
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  Speaker 2: I would like it to be known that you followed
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  Speaker 2: me first I did.
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  Speaker 3: She was scomo girl, I know you want to talk
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  Speaker 3: about that. No, I didn't move on and talk about
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  Speaker 3: a core satellite approach.
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  Speaker 4: So twenty twenty I chose that we need to switch
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  Speaker 4: this up and we need to go let's pick some
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  Speaker 4: core ETFs. So I tried to pick two or three
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  Speaker 4: that aligned to my goals and then I did that
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  Speaker 4: for a while, and then I introduced the satellite approach.
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  Speaker 3: Yes, so I think that that's where, thankfully, I have
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  Speaker 3: kind of always been placed because I had that and
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  Speaker 3: thanks with your meditation. And you know, a lot of
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  Speaker 3: people are so worried that they'll make mistakes, but the
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  Speaker 3: reality is like, just like Brook, you can make mistakes
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  Speaker 3: and you can fix it. Yeah, and it's also like
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  Speaker 3: not the biggest mistake because.
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  Speaker 2: You had the end of the the money. It as
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  Speaker 2: much just a small amount of money.
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  Speaker 4: Like obviously, if you're a retail investor, you're not investing
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  Speaker 4: one hundred fifty thousand dollars. I was investing like two
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  Speaker 4: or three grand, and that was over a couple of years,
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  Speaker 4: So like you might think, oh, that's a lot of money,
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  Speaker 4: but it's like ten dollars a week. Yeah, so that
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  Speaker 4: point Okay, well, okay, great, I've only invested two with
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  Speaker 4: three grand, maybe I've lost seven hundred dollars.
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  Speaker 2: Who cares. I'd rather make the.
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  Speaker 4: Decision sell that off, enjoy the losses for my tax return,
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  Speaker 4: and then begin and again with an approach that makes
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  Speaker 4: a bit more sense of my financial future.
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  Speaker 3: Let's go back to because I'm trying to make this
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  Speaker 3: like a little bit of a snappy episode because like
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  Speaker 3: we can, we can, Yeah, we can, yeap. So we're
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  Speaker 3: trying to get through this. Both of us have mentioned
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  Speaker 3: that we have a core satellite approach. And if you're thinking,
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  Speaker 3: what the heck, what the helly, what is going on here?
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  Speaker 2: What is that?
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  Speaker 3: Don't worry because we are going to break that down
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  Speaker 3: for you. So I would say it's probably one of
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  Speaker 3: the most popular strategies employed by financial advisors in Australia.
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  Speaker 3: Like when I talk to other financial advisors, we all
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  Speaker 3: kind of fall back onto the core satellite approach and
• 8:38
  Speaker 3: it sounds a lot more fancy than it is. But
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  Speaker 3: like when we talk about core satellite, it's literally core.
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  Speaker 3: Like think about the Moon and that's where majority of
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  Speaker 3: your investments are going to sit. And then there's literally
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  Speaker 3: a satellite and it's really small and it floats around, but.
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  Speaker 2: It's really space.
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  Speaker 3: Yeah, it's the International Space Station. We don't know what
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  Speaker 3: the hell's going on there. That's why we don't try buying. Yeah,
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  Speaker 3: we don't invest heaps, but it like sits a little
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  Speaker 3: bit separate and that's where we can play.
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  Speaker 2: We like, that's our fun.
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  Speaker 3: Nothing on the moon. Now it's kind of boring, and
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  Speaker 3: it should be boring, because that's what a good investment
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  Speaker 3: strategy is. Low and slow of fun. Stuff's happening at
• 9:12
  Speaker 3: the space station and spin around and around, and there's
• 9:14
  Speaker 3: so much fun stuff going on there. But we also
• 9:16
  Speaker 3: don't want to put all of our money there because
• 9:18
  Speaker 3: it's risky. We don't know what's happening exactly. So floating
• 9:21
  Speaker 3: in space, why did you choose a course satellite approach?
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  Speaker 3: I think I chose a course.
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  Speaker 4: Originally I started with just the core, and then as
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  Speaker 4: it became a bit more knowledgeable and added things to
• 9:30
  Speaker 4: my watch list and change while I was investing in,
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  Speaker 4: I was like, well, I really want to try investing
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  Speaker 4: in thematic ETFs and some directions. Okay, but I don't
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  Speaker 4: want to change my actual investments, Like I really love
• 9:41
  Speaker 4: what I've got going on here, but I still want
• 9:43
  Speaker 4: to dabble in that. So then I started introducing every
• 9:45
  Speaker 4: time I get paid dividends, I'd put that dividend money
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  Speaker 4: into a different Breakeridge account so that I can then go, okay, well,
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  Speaker 4: I will do my little satellite options over here, and
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  Speaker 4: then I'm hearing in the news all these fun companies
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  Speaker 4: adding those to my watch lists, and when I was
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  Speaker 4: ready to buy, I'd check some money in, but it
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  Speaker 4: was not big amount. It's under five to ten percent
• 10:01
  Speaker 4: of my portfolio. Like, it is not a lot of money,
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  Speaker 4: but it's money that I'm willing to lose because I
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  Speaker 4: do consider it a little bit more high risk than
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  Speaker 4: my core.
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  Speaker 3: Yeah, and so honestly, the core satellite approach, I would
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  Speaker 3: say is relatively ideal if you're a long term buy
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  Speaker 3: and hold kind of investor, Like you want something that
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  Speaker 3: is low maintenance but still gives you a bit of flexibility.
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  Speaker 3: So your core or the moon is where your steady,
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  Speaker 3: reliable growth without consistently checking in on the market happens.
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  Speaker 3: And then your satellites that's where we have the fun. Right,
• 10:34
  Speaker 3: you invest in maybe something specific or your back a
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  Speaker 3: theme that you care about, like your thematic ETFs, or
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  Speaker 3: you lean into a little bit more risk paradigm without
• 10:44
  Speaker 3: it letting.
• 10:44
  Speaker 2: That is not paying off.
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  Speaker 3: That's okay, but that's the point, but it's not hijacking
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  Speaker 3: my whole portfolio because it's a huge light my retirement goals.
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  Speaker 3: So your portfolio is basically like and I'm trying to
• 10:55
  Speaker 3: give you so many examples, so it just makes sense,
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  Speaker 3: like not just for you, but like for everybody. And
• 11:00
  Speaker 3: it's like kind of like a capsule wardrobe. So like
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  Speaker 3: your core is your staple pieces. They're like your jeans,
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  Speaker 3: they're the really nice blazer that's well cut. It's a
• 11:09
  Speaker 3: few really nice like white t shirts. Like they're not flashy,
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  Speaker 3: but they're the reason that your outfit works consistently.
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  Speaker 2: And then you're starting it with trend pieces.
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  Speaker 3: All these core things they literally go with everything, they
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  Speaker 3: hold it all together, and they make getting ready in
• 11:25
  Speaker 3: the morning really easy, right, and then your satellite that's
• 11:28
  Speaker 3: kind of like your accessory. That's like the fun trendy card.
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  Speaker 3: Again it is the line spy top is far out.
• 11:34
  Speaker 3: Don't even get me started on that piece of content.
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  Speaker 3: The fun bag, the statement earrings, like you know, a
• 11:41
  Speaker 3: lipstick that you wear not going to be.
• 11:42
  Speaker 2: In season forever exactly, it might work for you now.
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  Speaker 3: They add personality, they add interest, but only because your
• 11:49
  Speaker 3: basics are doing their job, because otherwise, can you imagine
• 11:52
  Speaker 3: if you would just trendy every single season.
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  Speaker 2: You would lose so much money.
• 11:55
  Speaker 3: You would not only lose so much money, but like
• 11:57
  Speaker 3: you're sick of that stuff, like it's just not fun.
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  Speaker 3: So the goal here, we're not ditching the fun stuff,
• 12:03
  Speaker 3: like we still want to have our little satellite investments,
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  Speaker 3: but the primary purpose would be to build a strong
• 12:11
  Speaker 3: foundation first and then layer the extras with some intention. Yes, Brook, what,
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  Speaker 3: in your opinion makes a good core portfolio?
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  Speaker 4: I think a portfolio that you don't have to worry about.
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  Speaker 4: You should not have to wake up every day and think,
• 12:23
  Speaker 4: oh my god, the market's down. But then I like,
• 12:26
  Speaker 4: I feel really confident with my core portfolio. Like if
• 12:29
  Speaker 4: someone said to me tomorrow and what should I invest in?
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  Speaker 4: Not that I would ever give anyone personal advice, but
• 12:33
  Speaker 4: I would be like, oh, well, god, high growth, this
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  Speaker 4: is what I invest in, and I've invested in that
• 12:38
  Speaker 4: since I first started investing.
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  Speaker 2: I feel so confident in the mission.
• 12:40
  Speaker 4: I feel so confident in what they invest in and
• 12:43
  Speaker 4: what's in that portfolio that I don't have to worry.
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  Speaker 4: Whereas my satellite options, some of them, I'm worried about.
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  Speaker 5: Some of them.
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  Speaker 4: I think, oh, I probably should sell that stone because
• 12:50
  Speaker 4: I'm losing money. But that's the whole point.
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  Speaker 3: The core is you're reliable to be a little bit fun,
• 12:55
  Speaker 3: and it's not meant to impact goal.
• 12:57
  Speaker 4: No, it's like really not going to change it. That's
• 12:58
  Speaker 4: not going to make me a millionaire tomorrow, I know.
• 13:00
  Speaker 4: But I can have a little bit of fun. I
• 13:02
  Speaker 4: could dabble, and I get to experience the highs and
• 13:04
  Speaker 4: the lows in the share market.
• 13:06
  Speaker 3: I've got a few notes that I've written down, so
• 13:08
  Speaker 3: like for my core, I want it to be broadly diversified,
• 13:12
  Speaker 3: so we're not just going into one topic. All our
• 13:15
  Speaker 3: eggs are not in one basket. I want the fees
• 13:17
  Speaker 3: to be relatively low, so like for me that leans
• 13:20
  Speaker 3: more into an ETF or like index funds, so like
• 13:24
  Speaker 3: low management costs that then don't eat up a low returns.
• 13:27
  Speaker 3: I want them to be simple and consistent, so like
• 13:29
  Speaker 3: something that I can just regularly invest into, not think
• 13:32
  Speaker 3: about too much, Like I'm not stressed about it, no overthinking.
• 13:35
  Speaker 3: Don't need to consistently rebalance. Obviously, it needs to be
• 13:38
  Speaker 3: aligned to my long term goals and my risk tolerance.
• 13:42
  Speaker 3: So like you know, we joked just before about Vanguard
• 13:45
  Speaker 3: High Growth and which we both own, and that is
• 13:48
  Speaker 3: good for us, but like it might not be good
• 13:50
  Speaker 3: for others if you're not a high growth girallye God,
• 13:52
  Speaker 3: why would.
• 13:53
  Speaker 2: You even consider be stressful for people?
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  Speaker 4: Because high growth fluctuates as well, even though it's still
• 13:57
  Speaker 4: lower risk than a satellite option, it fluctuates, whereas those
• 14:01
  Speaker 4: people might prefer something that is less risk less reward.
• 14:04
  Speaker 3: Yeah. And then for me at this point in my career,
• 14:07
  Speaker 3: at this point in my life, I have realized that
• 14:09
  Speaker 3: a set and forget strategy is just better for me. Yeah,
• 14:11
  Speaker 3: and it's better for most people because we don't want
• 14:14
  Speaker 3: to over evaluate. We don't want to have to, you know,
• 14:16
  Speaker 3: be uncomfortable and think that we have to be in
• 14:18
  Speaker 3: it every single day. Like I'm sorry, I'm not a
• 14:21
  Speaker 3: financial adviser anymore. I do not have forty five hours
• 14:24
  Speaker 3: a week to look at investments consistently. Someone else can
• 14:27
  Speaker 3: do that for me. So I think I just love
• 14:29
  Speaker 3: knowing that it's doing its job over time consistently and
• 14:33
  Speaker 3: I can rely on it. Now we've covered the core,
• 14:37
  Speaker 3: and we're not done yet because the fun part is
• 14:38
  Speaker 3: coming up. Like I'm going to talk about the satellites.
• 14:40
  Speaker 3: The space station is coming and that's coming up next.
• 14:43
  Speaker 3: So after the break, we're going to get into satellite investments.
• 14:46
  Speaker 3: How to use them. How to personalize your portfolio without
• 14:49
  Speaker 3: accidentally blowing up your entire strategy, and we'll talk about
• 14:51
  Speaker 3: I guess what to include, what mistakes to avoid, and
• 14:54
  Speaker 3: how to decide if something really like deserves a spot
• 14:57
  Speaker 3: on the satellite space station because like we've talked before, Brook,
• 15:02
  Speaker 3: we have watch lists, Like we creep on things all
• 15:04
  Speaker 3: the time. Doesn't mean it makes it to the space station.
• 15:07
  Speaker 3: Things never make it off the world, absolutely, So guys
• 15:09
  Speaker 3: don't go anywhere. All right, we are back and it's
• 15:15
  Speaker 3: time to talk about the space station. It is time
• 15:18
  Speaker 3: to talk about she's on the space station, she's on
• 15:21
  Speaker 3: the satellite. So we're going to talk about satellites because
• 15:24
  Speaker 3: that is where your portfolio gets to be a little
• 15:27
  Speaker 3: bit interesting.
• 15:28
  Speaker 5: You know what.
• 15:28
  Speaker 3: Some people just have the core and they're fine with that,
• 15:30
  Speaker 3: Like they don't have satellite, Like you just go don't.
• 15:33
  Speaker 3: I don't care, Victoria, and you.
• 15:35
  Speaker 2: Don't have to.
• 15:36
  Speaker 5: Like.
• 15:36
  Speaker 2: The thing is I think for us, we have a
• 15:37
  Speaker 2: satellite because we find the topic really interesting. It's really fun.
• 15:40
  Speaker 3: For me.
• 15:40
  Speaker 2: This is like a little hobby that I have.
• 15:43
  Speaker 3: And I guess we mentioned earlier, like our core portfolio
• 15:47
  Speaker 3: is lifting.
• 15:48
  Speaker 4: They exactly care about the satellite. If they never perform,
• 15:51
  Speaker 4: they never turn over. Great, what if I lost this
• 15:53
  Speaker 4: year five hundred dollars, I've lost five hundred dollars. But
• 15:55
  Speaker 4: the rest of my portfolio is doing what it intends
• 15:57
  Speaker 4: to do exactly.
• 15:58
  Speaker 3: And I think it's like how many times have you
• 16:00
  Speaker 3: looked back at old photos and be like, what the
• 16:02
  Speaker 3: hell am I wearing?
• 16:03
  Speaker 2: Why did I do mybrows like that?
• 16:04
  Speaker 3: Don't even I get this point? I added on exactly,
• 16:08
  Speaker 3: like I am committed to the eyebrows, so we won't
• 16:11
  Speaker 3: go there. But like you look back on things and go,
• 16:14
  Speaker 3: why did I pick that? And that's why I don't
• 16:16
  Speaker 3: want satellite to be your entire strategy. Now. Satellite obviously,
• 16:20
  Speaker 3: and I'm just gonna hound this again. It makes up
• 16:23
  Speaker 3: a much smaller part of your portfolio. So like think
• 16:26
  Speaker 3: five to some people have thirty percent. I don't know
• 16:29
  Speaker 3: about you mine, or if I like group in my
• 16:31
  Speaker 3: satellite stuff, I would say that it's maximum ten percent.
• 16:35
  Speaker 3: But like, even of that, there's some pretty conservative like satellites,
• 16:38
  Speaker 3: and I just like group in your individual Oh no,
• 16:41
  Speaker 3: I group in my individual shares into that. So like
• 16:43
  Speaker 3: everything else is an ETF. But it depends on how
• 16:46
  Speaker 3: much risk you want to take on, and they are
• 16:49
  Speaker 3: I guess best used to complement your core, not we're
• 16:53
  Speaker 3: not competing with our core. And that's why we also
• 16:55
  Speaker 3: want to make sure like we fully understand what's in
• 16:58
  Speaker 3: our ETFs because I feel like super passionate about Apple
• 17:00
  Speaker 3: and you're like, I want that as part of my
• 17:02
  Speaker 3: satellite strategy. She's going to the space station. Go what
• 17:05
  Speaker 3: if you already double it into ETFs? Like that just
• 17:08
  Speaker 3: feels like a bit redundant, Like yes, you like following it,
• 17:11
  Speaker 3: but like.
• 17:12
  Speaker 2: It's in your mote.
• 17:13
  Speaker 3: Yeah, sorry, it's in the mote. So what actually counts
• 17:17
  Speaker 3: as a satellite? It could be what you were talking
• 17:19
  Speaker 3: about before Brook so like a thematic ets, like one
• 17:22
  Speaker 3: that focuses on clean energy or tech innovation, or like
• 17:26
  Speaker 3: you are talking about crypto infrastructure. It could be a
• 17:30
  Speaker 3: few individual shares in companies you genuinely believe in. It
• 17:33
  Speaker 3: honestly could be crypto. So I think a lot of
• 17:35
  Speaker 3: people are like, Vita, do you like crypto? And I'm
• 17:37
  Speaker 3: kind of like, well, it's not really my journey, but
• 17:40
  Speaker 3: if you want to own it, I would be having
• 17:42
  Speaker 3: a satellite. It like fits in there as opposed to
• 17:45
  Speaker 3: your core And basically it's the stuff that like reflects
• 17:49
  Speaker 3: your goals and your values and something that you just
• 17:51
  Speaker 3: like want a little bit of individual exposure to, Like
• 17:54
  Speaker 3: it's where the tea lives. So what kind of things
• 17:56
  Speaker 3: in your satellite right now.
• 17:58
  Speaker 2: At the moment. A lot of my satellite is in America.
• 18:00
  Speaker 4: I can give you some examples, and some of them
• 18:02
  Speaker 4: are random, and I've lost money on them, that's why
• 18:05
  Speaker 4: they're in my satellite. But they are just things that
• 18:07
  Speaker 4: I'm interested in. I like to pretty much just invest
• 18:10
  Speaker 4: in companies that I care about. So some things that
• 18:13
  Speaker 4: are in my satellite include Beyond, which I'm pretty sure
• 18:16
  Speaker 4: is like the Beyond beef, like the vegan foods that's
• 18:20
  Speaker 4: down like ninety seven percent, ok, so not an investing god.
• 18:24
  Speaker 4: A company called GRB Why I can't even remember why
• 18:26
  Speaker 4: I invested in that, but I did.
• 18:28
  Speaker 3: It sounds like gravy.
• 18:29
  Speaker 2: It sounds like gravy, and it's up one hundred and
• 18:30
  Speaker 2: thirty percent.
• 18:31
  Speaker 3: So you're investing in fake meat and then gravy.
• 18:33
  Speaker 4: Yep. I've got notice. I've got Reddit, which is up
• 18:36
  Speaker 4: really well. Like I love Reddit, I you know me,
• 18:39
  Speaker 4: I talk about it all the time, but I really
• 18:41
  Speaker 4: believe in that, so it's in my satellite. I've got Tesla,
• 18:43
  Speaker 4: which I don't necessarily believe in it at the moment.
• 18:45
  Speaker 4: I'm more a B white E girl, but I still
• 18:48
  Speaker 4: have it, so I'm not gonna sell it just yet
• 18:50
  Speaker 4: because it's lost some money. So I'm gonna wait a
• 18:52
  Speaker 4: little bit.
• 18:53
  Speaker 2: I've got Apple, like really, just that's the fund, it's
• 18:56
  Speaker 2: the fun stuff.
• 18:56
  Speaker 4: And then yeah, I add things in all the time,
• 18:58
  Speaker 4: like we did a watch this episode. But some of
• 19:00
  Speaker 4: the things on the wash list, maybe they'll be coming off,
• 19:02
  Speaker 4: you know, maybe they'll be part of my satellite. But
• 19:04
  Speaker 4: these are like risky things that I'm almost it's not
• 19:06
  Speaker 4: a bet, but I'm putting it like I'm putting my
• 19:08
  Speaker 4: money there, going.
• 19:09
  Speaker 3: Hmm, what's going on.
• 19:10
  Speaker 2: I think this might pay off, and I care about it,
• 19:12
  Speaker 2: so I'm going to try.
• 19:13
  Speaker 3: Yeah. I feel like one of the best things about
• 19:16
  Speaker 3: this core satellite strategy is that it actually makes investing
• 19:19
  Speaker 3: feel relatively simple, like it kind of takes the pressure off. Like, girl,
• 19:22
  Speaker 3: you can still have fun, but let's just like build
• 19:25
  Speaker 3: our little financial house first. Make sure she's safe at home,
• 19:28
  Speaker 3: and then we can go out to play because we
• 19:30
  Speaker 3: still have a home to come back to. Ye, and
• 19:32
  Speaker 3: you're not making hundreds of decisions every year about every
• 19:36
  Speaker 3: time you want to invest in. What that looks like
• 19:38
  Speaker 3: and is that worth rebalancing right now? Oh my god,
• 19:40
  Speaker 3: it's gotten ahead of me. I don't know what that
• 19:42
  Speaker 3: looks like. Like you've got a lot more structure. But
• 19:45
  Speaker 3: even with a really solid strategy, there are a few
• 19:48
  Speaker 3: things that I want you to be mindful of. And
• 19:50
  Speaker 3: like Brooks here to talk about the fun stuff, and
• 19:52
  Speaker 3: I'm here to be like, oh, let's get our shit together.
• 19:54
  Speaker 3: I'm also I feel like I have to put my
• 19:56
  Speaker 3: responsible X financial advisor hat on and be like, there's
• 19:59
  Speaker 3: like some things that you should consider really important. And
• 20:02
  Speaker 3: when you're following a core satellite strategy, I want to
• 20:06
  Speaker 3: know from your perspective before I dive in, what do
• 20:08
  Speaker 3: you think more people need to be more mindful of? Like,
• 20:11
  Speaker 3: what are things that you don't want to be doing.
• 20:14
  Speaker 4: I think you shouldn't put all of your eggs in
• 20:16
  Speaker 4: one basket, So for like your satellite, you should be diversified.
• 20:19
  Speaker 4: So I have ten companies in the US that I've
• 20:22
  Speaker 4: invested in on my satellite side and I've got five
• 20:25
  Speaker 4: thematic ETFs, so I still have incredible diversification when it
• 20:29
  Speaker 4: comes to my satellite, and probably fifty percent of them
• 20:32
  Speaker 4: are not going to pay off, but fifty percent of
• 20:33
  Speaker 4: them might, So my overall growth might be like ten percent,
• 20:36
  Speaker 4: and still that's not performing better than my core.
• 20:39
  Speaker 2: So understanding that.
• 20:40
  Speaker 3: There's so much you can't pick the market.
• 20:43
  Speaker 2: No, and we should just be happy with that average.
• 20:45
  Speaker 4: So I think learning that the satellite is probably not
• 20:48
  Speaker 4: going to pay off in the long term for me,
• 20:50
  Speaker 4: and I should make sure that all of my focus
• 20:52
  Speaker 4: really but it's the importance of the core. Yeah, it's
• 20:55
  Speaker 4: like we should be happy with that market average. The
• 20:57
  Speaker 4: average of the market is returning is really good, and
• 21:00
  Speaker 4: we should be like, Okay, let's slay, let's keep out
• 21:03
  Speaker 4: money there, and yeah, we can have fun on the side,
• 21:04
  Speaker 4: but don't rely on that as your future wealth. Like,
• 21:07
  Speaker 4: you are not going to get rich overnight, and if
• 21:09
  Speaker 4: it does happen to you, you should be grateful that
• 21:11
  Speaker 4: happened to you, but that should not be what you're
• 21:13
  Speaker 4: gaining on.
• 21:13
  Speaker 3: Like, yeah, and on the flip side, talking about the core,
• 21:16
  Speaker 3: I think that a lot of people own too many ETFs.
• 21:20
  Speaker 2: Yeah, and there's overlap.
• 21:21
  Speaker 3: Yeah, and they get excited about it. Maybe you heard
• 21:23
  Speaker 3: Brooke mention one, maybe you heard me mention one. Then
• 21:25
  Speaker 3: you go add it to what your portfolio is because
• 21:27
  Speaker 3: you just don't want to miss out.
• 21:28
  Speaker 2: Now they're holding the same things.
• 21:29
  Speaker 3: Yeah, So we need to make sure that there's not
• 21:31
  Speaker 3: too much overlap because a lot of people do end
• 21:33
  Speaker 3: up with a lot of overlap, which means you're holding
• 21:35
  Speaker 3: multiple ETFs the basically own the same feed.
• 21:37
  Speaker 4: Stuff and you're paying double the management fees. So it's like,
• 21:40
  Speaker 4: can you find an ETF yeah, one or two or
• 21:42
  Speaker 4: three that hold different things that can diversify you even
• 21:46
  Speaker 4: more and you're not paying as many fees. Like if
• 21:47
  Speaker 4: you're owning ten ETFs that invest in the same thing,
• 21:50
  Speaker 4: that's great, but then you're paying one percent fee on
• 21:52
  Speaker 4: all of them. I means you're paying ten percent fees annually.
• 21:54
  Speaker 3: So really, what are we doing here?
• 21:56
  Speaker 2: You're losing money.
• 21:57
  Speaker 4: So just niching down your portfolio to what works for
• 22:00
  Speaker 4: you and what is still keeping you diversified and in
• 22:03
  Speaker 4: the right risk.
• 22:04
  Speaker 3: Ray and I feel like in twenty twenty five, lots
• 22:06
  Speaker 3: of people have lots of commitment issues. Ye like I'm
• 22:09
  Speaker 3: just saying that as an ongoing theme in the dating world,
• 22:11
  Speaker 3: but mostly in the investment world. And I think that
• 22:14
  Speaker 3: too many people are consistently tweaking their investment strategy because
• 22:17
  Speaker 3: something new pops up or something shiny is there and
• 22:20
  Speaker 3: they don't want to miss out in the game.
• 22:21
  Speaker 4: Might just be have your plan and stick. So if
• 22:23
  Speaker 4: you did the investing maskas you know, we willlieve and
• 22:25
  Speaker 4: stick into that long term.
• 22:27
  Speaker 3: Exactly, and you'll hear a lot of and this takes time,
• 22:31
  Speaker 3: so this is not something that immediately I think that
• 22:33
  Speaker 3: you'll get, Like you know, I think you have at
• 22:35
  Speaker 3: least twelve different investments, and so do I at this point,
• 22:38
  Speaker 3: just across a whole heap of things. And you won't
• 22:41
  Speaker 3: start that You'll start with like one ETF or maybe
• 22:43
  Speaker 3: even you go, look, I'm just going to start with
• 22:45
  Speaker 3: two atfs. I'm going to start with a Australian and
• 22:48
  Speaker 3: an international and like that. So that's where we all start, right, Like,
• 22:51
  Speaker 3: you can't just dive into having you will.
• 22:53
  Speaker 2: Not be a lot on day one.
• 22:54
  Speaker 3: Yeah, but what I want you to know is that
• 22:58
  Speaker 3: you know exactly about that investment, Like you could tell
• 23:02
  Speaker 3: me exactly why that's in your portfolio. Why that was
• 23:04
  Speaker 3: your field? You're confident that might change, You might go, oh,
• 23:08
  Speaker 3: in two years, I actually ditch that and something happens,
• 23:10
  Speaker 3: But like we've got conviction in.
• 23:11
  Speaker 2: Our strategy toes down. Yeah, and so I think that.
• 23:15
  Speaker 3: Not actually knowing what is in your investment or why
• 23:18
  Speaker 3: you actually hold it or I just picked it because
• 23:20
  Speaker 3: it seemed good, Like, yeah, you're not actually helping yourself
• 23:23
  Speaker 3: long term, and the other thing is going back to
• 23:25
  Speaker 3: being a magpie. So like, just you know, I feel
• 23:28
  Speaker 3: like so many of.
• 23:29
  Speaker 2: Us stay in your line, stay with your plan.
• 23:32
  Speaker 3: I love shiny stuff too, I am.
• 23:34
  Speaker 2: We are all guilty of it.
• 23:35
  Speaker 3: We send each other TikTok trends all the time. We
• 23:37
  Speaker 3: even quote them. It's borderline embarrassing. But like, don't get
• 23:42
  Speaker 3: caught up with the hypestocks or any TikTok trends or
• 23:44
  Speaker 3: like random thematics that you think are going to take
• 23:47
  Speaker 3: off but you actually don't know about that.
• 23:50
  Speaker 4: Just because someone else is doing it doesn't mean it
• 23:51
  Speaker 4: would aligned to your portfolio. Like you made a plan,
• 23:54
  Speaker 4: stick with your plan for the long term.
• 23:56
  Speaker 2: Yeah, give it a chance to pay off.
• 23:58
  Speaker 3: So one more question before we go because make this
• 24:00
  Speaker 3: snappy so that hopefully we've got heaps of content into
• 24:03
  Speaker 3: the future. How do you know when it's time to
• 24:06
  Speaker 3: make a change. So now you've been investing, you've obviously
• 24:09
  Speaker 3: made lots of changes. Are there signs to look for
• 24:11
  Speaker 3: that tell you, oh, maybe broke, this isn't working anymore,
• 24:14
  Speaker 3: or maybe you need to make a change.
• 24:16
  Speaker 2: Genuinely just believing in it. Like I just looked. Then
• 24:19
  Speaker 2: my beyond is down ninety seven percent. Sure, lo great, that's.
• 24:22
  Speaker 4: Not great, But that shouldn't be well I should have
• 24:25
  Speaker 4: got rid of that, but it was my satellite and
• 24:27
  Speaker 4: it was under one hundred.
• 24:28
  Speaker 3: Dollars see at this point, like side note, not only
• 24:31
  Speaker 3: if it's down ninety seven percent, why.
• 24:32
  Speaker 2: Would you not just keep it? Or would you invest
• 24:34
  Speaker 2: a little bit more?
• 24:35
  Speaker 3: Yes, So that's where I'm at, And I just like,
• 24:37
  Speaker 3: if it's down so much, I'm lokey like a hold
• 24:40
  Speaker 3: and just begrudging and away should tell.
• 24:42
  Speaker 4: I'm but I think I think for me, I'm happy
• 24:44
  Speaker 4: to accept the losses and go, wow, great, I've had
• 24:47
  Speaker 4: a loss. This that means I'm going to get a
• 24:49
  Speaker 4: little bit of money off my tax bill.
• 24:50
  Speaker 3: Okay, that's a good way to see.
• 24:52
  Speaker 4: It, and I'm going to realign that money to somewhere
• 24:54
  Speaker 4: that I do believe. So maybe that money I'm going
• 24:56
  Speaker 4: to take and put into Costco because I believe in Costco.
• 24:58
  Speaker 4: Maybe I'm going to go that money in a door
• 25:00
  Speaker 4: beauty or a different company. I what, what are my
• 25:03
  Speaker 4: beliefs changing? Do I still believe in that company? Is
• 25:06
  Speaker 4: still price valued correctly? Like it's overvalued and I'm losing money? Gone,
• 25:10
  Speaker 4: it's gone?
• 25:11
  Speaker 2: Yeah? Do I believe that they have longevity?
• 25:13
  Speaker 1: Like?
• 25:13
  Speaker 4: Am I looking at that company thinking, oh, ten years time,
• 25:15
  Speaker 4: you're still going to exist? No, Like if I blockbustered
• 25:17
  Speaker 4: my portfolio, I would have gotten rid of that. It
• 25:19
  Speaker 4: doesn't exist in ten years.
• 25:21
  Speaker 3: And that's why we have to consistently look at it
• 25:23
  Speaker 3: and think critically about it and like the active manager.
• 25:28
  Speaker 3: But you can also see that I'm quite committed. And
• 25:31
  Speaker 3: I say that about Paradigm, and it's kind of like
• 25:33
  Speaker 3: a running joke because it's like a little bit funny
• 25:35
  Speaker 3: because you would think that someone as financially educated as
• 25:38
  Speaker 3: me would have already got.
• 25:39
  Speaker 2: But you had an emotional yeah, and you're allowed that.
• 25:42
  Speaker 4: So I think they're absolutely talk like that is good,
• 25:45
  Speaker 4: Like I've read it, and I've read it it was
• 25:46
  Speaker 4: to go down and probably would still keep it, but
• 25:47
  Speaker 4: it's up to sixty eight per cents.
• 25:49
  Speaker 3: Absolutely, last question for you, and I feel like this
• 25:52
  Speaker 3: is something I struggle with. I know you've struggled with,
• 25:55
  Speaker 3: and a lot of people in our community have struggled with.
• 25:57
  Speaker 3: What would you say to people who have listened to
• 25:59
  Speaker 3: this whole episode but they still have right now analysis
• 26:03
  Speaker 3: paralysis over what to put in their portfolio.
• 26:05
  Speaker 4: I think jes give yourself room to fail, like you
• 26:09
  Speaker 4: are not going to get it right one hundred percent
• 26:11
  Speaker 4: of the time.
• 26:11
  Speaker 2: I've just read out a bunch of you that have
• 26:13
  Speaker 2: lost money. Do I feel shit about those? No, because
• 26:15
  Speaker 2: I'm learning.
• 26:16
  Speaker 4: I have my core portfolio that I feel really confident in,
• 26:19
  Speaker 4: and I'm allowed to have a little bit of fun
• 26:20
  Speaker 4: on the side. I'm investing dividends. That's free money to me,
• 26:23
  Speaker 4: so that's not my money. Sure, I lost twenty dollars
• 26:26
  Speaker 4: on Beyond Meat, but who cares. If it went up
• 26:29
  Speaker 4: two hundred dollars, I would be like, Wow, that's really cool.
• 26:31
  Speaker 4: But I wouldn't have had that opportunity if I didn't try.
• 26:33
  Speaker 2: So you can try.
• 26:34
  Speaker 4: You can fail, but just do not bet your house
• 26:35
  Speaker 4: deposit on it, don't bet your whole life savings. Just
• 26:38
  Speaker 4: have a little bit of fun and make sure it
• 26:40
  Speaker 4: aligns with your risk proof. Yeah, you can invest with
• 26:43
  Speaker 4: five dollars. You can fractually invest.
• 26:45
  Speaker 3: It's very sexy. Yeah, it'll actually invests on Cheesy's you can.
• 26:50
  Speaker 3: Brook Thank you so much for joining me. I think
• 26:52
  Speaker 3: for a lot of people, this episode is going to
• 26:54
  Speaker 3: be like the thing that finally makes investing feel like
• 26:57
  Speaker 3: maybe a little bit less chaotic and a bit more intentional.
• 27:00
  Speaker 3: So I appreciate it. Even if it was relatively chaotic
• 27:03
  Speaker 3: and short.
• 27:04
  Speaker 2: That's okay. We do our best.
• 27:05
  Speaker 3: If you loved this episode, please make sure that you
• 27:08
  Speaker 3: are subscribed. Leave us a little review like dm as
• 27:12
  Speaker 3: love notes, and I'll read them out on the Friday episode.
• 27:15
  Speaker 3: I'm happy to read love notes about brook out on
• 27:17
  Speaker 3: the Friday episode, even though she doesn't feature in them.
• 27:20
  Speaker 3: And make sure that you're subscribe to our show because
• 27:22
  Speaker 3: you won't miss the next one.
• 27:24
  Speaker 2: And we posted on YouTube now too, we do.
• 27:26
  Speaker 3: We have a whole YouTube channel. We know it's giving
• 27:28
  Speaker 3: two thousand and seven.
• 27:29
  Speaker 2: I know I feel really fine editing those videos. It
• 27:31
  Speaker 2: makes me feel like I'm a YouTuber.
• 27:32
  Speaker 3: I love it.
• 27:33
  Speaker 2: We're back in that era.
• 27:34
  Speaker 3: You just wait until I'm holding up like my makeup
• 27:36
  Speaker 3: compact to the mirror. And if you've got a friend
• 27:39
  Speaker 3: who's portfolio maybe could use a little bit of a
• 27:42
  Speaker 3: glow up, this is your reminder to send it their
• 27:44
  Speaker 3: way or.
• 27:45
  Speaker 2: Running this episode to Victoria to mine.
• 27:46
  Speaker 3: Oh God, paradigm, I'm coming for you. All right, guys,
• 27:49
  Speaker 3: We'll see you on Friday.
• 27:50
  Speaker 1: Bye.
• 27:50
  Speaker 2: Friends, did buy shared on?
• 27:58
  Speaker 5: She's on the Money is general in nature and does
• 28:01
  Speaker 5: not consider your individual circumstances. She's on the Money exists
• 28:05
  Speaker 5: purely for educational purposes and should not be relied upon
• 28:08
  Speaker 5: to make an investment or financial decision. If you do
• 28:11
  Speaker 5: choose to buy a financial product, read the PDS TMD
• 28:14
  Speaker 5: and obtain appropriate financial.
• 28:16
  Speaker 2: Advice tailored towards your needs.
• 28:18
  Speaker 5: Victoria, Divine and She's on the Money are authorized representatives
• 28:22
  Speaker 5: of Money.
• 28:23
  Speaker 2: Sheoper Pty Ltd
• 28:24
  Speaker 5: ABN three two one is six four nine two seven
• 28:28
  Speaker 5: seven zero eight AFSL four five one two eight nine