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Investing 101: The stock market? Please share · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money.
• 0:17
  Speaker 2: Hello, and welcome to She's on the Money, the podcast
• 0:20
  Speaker 2: for Millennials who want Financial Freedom, Part three of our
• 0:24
  Speaker 2: investment series is here, and today we're chatting all things shares,
• 0:27
  Speaker 2: including how they work, what you need to be mindful of,
• 0:30
  Speaker 2: and of course how to get started. My name is
• 0:34
  Speaker 2: Georgia King, and joining me as always is a very
• 0:37
  Speaker 2: excited Melbourne based financial advisor Victoria to find. Hello Victoria,
• 0:42
  Speaker 2: I like that.
• 0:42
  Speaker 3: You know I'm excited already.
• 0:44
  Speaker 2: I can see it.
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  Speaker 3: Yeah, it's just being me. I'm so excited about this episode.
• 0:48
  Speaker 2: Now, it's pretty safe to save that you're probably not
• 0:51
  Speaker 2: the only one that's excited for this episode. It is
• 0:54
  Speaker 2: a highly anticipated one. Shares are pretty much the most
• 0:57
  Speaker 2: discussed topic in our Facebook communit and it's still a
• 1:01
  Speaker 2: space that many of us do find confusing. Cough George.
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  Speaker 2: So with this in mind, can you give our listeners
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  Speaker 2: a little taste of what they'll take away from today's episode.
• 1:11
  Speaker 4: Look, gee, there's absolutely no surprises here. This is an
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  Speaker 4: episode that I am I could say wildly passionate about.
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  Speaker 3: I feel like that is like one of my taglines.
• 1:19
  Speaker 3: I didn't make a realize.
• 1:21
  Speaker 4: Yeah, I didn't realize I had them, but we do.
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  Speaker 4: You're going to walk away from this episode with an
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  Speaker 4: overarching understanding of one, how share works obvious, two how
• 1:29
  Speaker 4: to get started, and we'll also cover all the things
• 1:31
  Speaker 4: that you need to be wary of. If you're freaking
• 1:34
  Speaker 4: out because investing in shares is still a pretty foreign
• 1:37
  Speaker 4: concept to you, then we've absolutely got you. This is
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  Speaker 4: they're very stripped back, very easy to understand chat. But
• 1:43
  Speaker 4: there is a lot to get to g So lay
• 1:45
  Speaker 4: your questions on me.
• 1:46
  Speaker 2: Let's go fra straight into it first. Up HEREV I
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  Speaker 2: want you to take it back to basics, strip it back.
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  Speaker 2: How do shares and the share market work? And can
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  Speaker 2: you confirm that it is not, in fact like gambling.
• 1:58
  Speaker 4: I can indeed confirm that it is nothing like gambling.
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  Speaker 4: So the share market is just that it's a market,
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  Speaker 4: and that is a place where you are able to
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  Speaker 4: buy and sell shares.
• 2:07
  Speaker 3: For share is a small stake.
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  Speaker 4: In a company, so you are buying into that company
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  Speaker 4: as a shareholder. The prices in the market are determined
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  Speaker 4: by supplying band and you would have seen that recently
• 2:17
  Speaker 4: with things like bitcoin absolutely surging. It's not increasing in
• 2:20
  Speaker 4: value because it's more valuable. It's increasing because more people
• 2:24
  Speaker 4: are purchasing it, So it's kind of like a stack
• 2:26
  Speaker 4: on mentality sometimes. But the reason supplying band fluctuates so
• 2:31
  Speaker 4: much is sometimes companies do better and you want in
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  Speaker 4: or sometimes you want to sell a company because they
• 2:36
  Speaker 4: might have had a really good year and you just
• 2:38
  Speaker 4: think that that's the right time. So in the last
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  Speaker 4: twelve months, with seeing companies like Zoom and hand Sanitizer,
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  Speaker 4: companies absolutely, yeah, exactly, absolutely fly up the share market
• 2:50
  Speaker 4: and that's because their stock has gained value because its
• 2:52
  Speaker 4: price is increased because it is in more demand and
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  Speaker 4: they are selling more product and they are therefore a
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  Speaker 4: more attractive company to purchase. So the question here is
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  Speaker 4: why do companies sell shares. The reason companies sell shares
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  Speaker 4: is growth essentially requires financial investment and to do that
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  Speaker 4: it needs to come from somewhere. So they need to
• 3:10
  Speaker 4: find money to grow, to invest in other things, and
• 3:13
  Speaker 4: they'll need a significant amount of capital, which then is
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  Speaker 4: going to allow them to grow as a team, you know, higher,
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  Speaker 4: build factories, whatever they require. So at the end of
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  Speaker 4: the day, the more money they have invested into their company,
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  Speaker 4: i e. You purchasing it, the further they can go.
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  Speaker 4: It's kind of cool when you start to think that
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  Speaker 4: by purchasing a company like you're helping them create a
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  Speaker 4: better company. And that's why you're purchasing, right, Like you
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  Speaker 4: go and purchase Zoom shares because you decide that they're
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  Speaker 4: a good company that will have good growth and really
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  Speaker 4: good outcomes for you as a shareholder, So you want
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  Speaker 4: to get on board, give them some money at the
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  Speaker 4: start to put towards that growth so that you can
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  Speaker 4: be a part of the better outcome when you bought
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  Speaker 4: for a cheaper price.
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  Speaker 2: Yeah, and then you get a little bit of that
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  Speaker 2: cash back because you're a part of that company.
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  Speaker 3: Exactly. You're a mini business owner.
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  Speaker 4: Yeah, I don't have any mini Yeah, very mini. But
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  Speaker 4: you don't have any rights. I'm sorry, you don't get
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  Speaker 4: to vote on the board or anything like that because
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  Speaker 4: you definitely don't have enough of it.
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  Speaker 3: But at the end of the day, that that's pretty
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  Speaker 3: much what you are.
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  Speaker 4: You've bought into this company. Therefore you're a tiny owner
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  Speaker 4: of that asset.
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  Speaker 2: I like that.
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  Speaker 4: Yeah, I own so many businesses, guys, so wild I'm
• 4:20
  Speaker 4: an entrepreneur. Investing is a long term game, and hikes
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  Speaker 4: and dips are all a part of that journey, so
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  Speaker 4: keep that in mind. Most of the super rich, let's
• 4:30
  Speaker 4: be honest, generally have a majority of their wealth invested
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  Speaker 4: in stocks, and I think that that is also worthy
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  Speaker 4: of consideration because wealth creates wealth is something that always
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  Speaker 4: is said.
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  Speaker 3: But like, where did that start? How does that work?
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  Speaker 4: And that is where our magic friend, compound interest comes
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  Speaker 4: to play. We talk about them a little bit later.
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  Speaker 4: It's definitely not like gambling, going back to your question,
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  Speaker 4: but investing comes with risks, and we are going to
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  Speaker 4: cover these later on in the pod. Generally speaking, though,
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  Speaker 4: the higher the risk of the asset that you're purchasing
• 5:00
  Speaker 4: I Bitcoin, the higher the reward obvious given the current markets,
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  Speaker 4: but also that risk can absolutely be flipped. We could
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  Speaker 4: wake up tomorrow and bitcoin could be through the floor instead.
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  Speaker 4: I woke up the other day and I was looking
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  Speaker 4: at shares and I don't invest in this, just fay.
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  Speaker 4: I do keep a keen eye on it though, because
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  Speaker 4: I am very interested in it. I just don't want
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  Speaker 4: to put my money there because I just don't feel
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  Speaker 4: comfortable doing it. So let's be honest, And I was
• 5:26
  Speaker 4: looking at the share price and it went crazy the
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  Speaker 4: other day. I think I had like a thirty percent
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  Speaker 4: increase in one day. Insane, Like, obviously we're talking about
• 5:34
  Speaker 4: it now retrospectively, and going and purchasing it now would
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  Speaker 4: not help you in the slightest have any level of
• 5:43
  Speaker 4: your face.
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  Speaker 2: It's gone up to sixty thousand dollars per bitcoin. Yes, yeah,
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  Speaker 2: but when we did our bitcoin episode, which which.
• 5:50
  Speaker 4: Was like twe weeks ago, was forty three yeah, yeah,
• 5:53
  Speaker 4: forty two, forty three, yeah, exactly. It's one of those
• 5:58
  Speaker 4: things where this the exact job that could have happened,
• 6:01
  Speaker 4: and the reason that has actually happened. Georgia, I like
• 6:04
  Speaker 4: to just touch on bitcoin for a little bit because
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  Speaker 4: I think you guys are really interested in it is
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  Speaker 4: because Tesla purchased bitcoin. Tesla bought one point five billion
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  Speaker 4: dollars worth of bitcoin Chee's Luis, So everybody in the
• 6:16
  Speaker 4: market saw that and they were.
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  Speaker 3: Like, oh my gosh, well, if Tesla's buying it, it
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  Speaker 3: must be really good.
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  Speaker 4: But also because Tesla put one point five billion dollars
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  Speaker 4: into that, that's obviously a very significant amount of money.
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  Speaker 4: So that shot the share price up in itself. But
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  Speaker 4: now everybody else is seeing it because Tesla have also
• 6:31
  Speaker 4: come out and said in the near future, we'll be
• 6:34
  Speaker 4: accepting bitcoin as a as a payment for our cars.
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  Speaker 2: Wow. Cool, right, that is cool.
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  Speaker 4: Like as in just interesting to follow, Like I'm so
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  Speaker 4: pervy on this stuff because i want to know what's happening.
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  Speaker 4: I'm not saying it's a good asset to buy, but
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  Speaker 4: let's open these conversations up and start having more conversations
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  Speaker 4: about the intricacies of investing and well, why did that
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  Speaker 4: happen and.
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  Speaker 3: How did that happen?
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  Speaker 4: And that goes back to what we were talking about
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  Speaker 4: before on supply and demand, George, we have I've seen
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  Speaker 4: demand increase because Tesla has purchased it, and they've clearly
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  Speaker 4: decreased the supply because they've taken out one point five
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  Speaker 4: billion dollars worth of that asset. And therefore other people
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  Speaker 4: are saying it and going, wow, I want to be
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  Speaker 4: on this train. But the important thing to understand there
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  Speaker 4: is this is the emotional journey of investment. Like, what's
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  Speaker 4: changed about bitcoin, not one thing except for the fact
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  Speaker 4: other people are showing an interest in it. It's like
• 7:25
  Speaker 4: back in high school when the cool girl cut out
• 7:27
  Speaker 4: holes in her t shirt like or mean girl and
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  Speaker 4: everybody else started doing it.
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  Speaker 3: Yeah, there was no reason for that. That stacks on.
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  Speaker 4: We've just got to be really careful because it's an
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  Speaker 4: emotional journey, and when you get to invest it in
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  Speaker 4: an emotional journey, you kind of have blinkers on and
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  Speaker 4: you don't see the bigger picture of what else is
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  Speaker 4: going on too involved with it, Yeah, exactly, and that's
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  Speaker 4: where you know, people actually get into trouble with the
• 7:50
  Speaker 4: share market, and that's where things do start to feel
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  Speaker 4: a little.
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  Speaker 2: Bit like sure, okay, so bitcoin aside, regular shares, pointy currency.
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  Speaker 4: Yeah, no crazy returns here, we are about consistency at
• 8:03
  Speaker 4: cheese on the money.
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  Speaker 2: What does the usual return on investing in the share
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  Speaker 2: market look like?
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  Speaker 4: Then it's pretty sexy to Georgia, not gonna lie, but
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  Speaker 4: really important to note here as a qualified and registered
• 8:16
  Speaker 4: financial advisor past performance. It's not an accurate indication of
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  Speaker 4: future performance. But historically over the laste hundred years, we've
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  Speaker 4: seen an average return of about ten percent. George, that's crazy,
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  Speaker 4: and it's also worthy of just nutting out exactly what
• 8:29
  Speaker 4: this looks like over the last thirty years. So the
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  Speaker 4: most recent index chart by Vanguard, which I really like
• 8:37
  Speaker 4: and I'm actually going to link into the Facebook group
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  Speaker 4: when this episode drops because it's actually such a great
• 8:44
  Speaker 4: resource that really breaks down the returns and shows you
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  Speaker 4: not only the returns but what happened in politics, and
• 8:50
  Speaker 4: like it's really it's really detailed, and if you sit
• 8:52
  Speaker 4: down and stare at it for long enough, it actually
• 8:54
  Speaker 4: starts to make sense.
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  Speaker 3: But it's a really good overview.
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  Speaker 4: But over the last thirty years, Georgia US shares have
• 9:03
  Speaker 4: performed at ten point three percent perannum, Australian shares have
• 9:07
  Speaker 4: returned at eight point nine percent perannum. Listed property so
• 9:13
  Speaker 4: that is where you buy property or real estate on
• 9:15
  Speaker 4: the ASX like as a share, not we're not talking
• 9:19
  Speaker 4: going and buying your investment property seven point eight percent,
• 9:22
  Speaker 4: so still pretty good, not bad. Australian bonds seven point
• 9:27
  Speaker 4: seven percent. I think that's pretty interesting given we always
• 9:30
  Speaker 4: talk about how that's a more conservative asset.
• 9:33
  Speaker 2: Definitely pretty good return.
• 9:34
  Speaker 4: My friends like, and this is absolutely no promises. It's
• 9:38
  Speaker 4: just about you understanding what that is. And obviously, when
• 9:41
  Speaker 4: I talk about assets, I would never base my assumptions
• 9:44
  Speaker 4: on these numbers. The reason is because I'd never want
• 9:47
  Speaker 4: you to have an expectation that ultimately doesn't get met.
• 9:51
  Speaker 4: I'd always prefer to like under assume and overperform, yes,
• 9:55
  Speaker 4: and put ourselves in a position where we were trying
• 9:58
  Speaker 4: to meet this expectation that might not happen just based
• 10:01
  Speaker 4: on timing or the share market or what's going on politically.
• 10:05
  Speaker 4: So for me, I actually always use the number five
• 10:08
  Speaker 4: percent as a share market return. And now you can see, well, actually,
• 10:13
  Speaker 4: Victoria like it performs better than that. I'm like, yeah,
• 10:16
  Speaker 4: that's the sexy pash. But back to my chart, international
• 10:20
  Speaker 4: shares performed at seven point three percent and our friend
• 10:24
  Speaker 4: cash performed at five point one percent.
• 10:27
  Speaker 3: Good on you.
• 10:28
  Speaker 4: Kind of cool, right, And average CPI, which is like inflation,
• 10:32
  Speaker 4: is two point four percent per annum over the last
• 10:34
  Speaker 4: thirty years. Pretty cool, right, Really interesting numbers. So I'm
• 10:38
  Speaker 4: not gonna keep going on about that because like stat
• 10:40
  Speaker 4: scale over whom I get a little bit mad at
• 10:42
  Speaker 4: me because I'm.
• 10:43
  Speaker 3: Taking her job.
• 10:44
  Speaker 4: But at the end of the day, if I do
• 10:46
  Speaker 4: my whiz bang maths, then we have a bit of
• 10:48
  Speaker 4: a think about this. Because one of my favorite things
• 10:50
  Speaker 4: about being able to talk to you guys about money
• 10:52
  Speaker 4: is to give you tangible examples of what that could
• 10:55
  Speaker 4: actually look like. And I'll use an example from a
• 10:57
  Speaker 4: DM I got the other day of someone saying, I
• 11:01
  Speaker 4: am using micro investing platforms looking to make the next step,
• 11:04
  Speaker 4: but not really sure what's going on. Got five grand
• 11:07
  Speaker 4: in my micro investing platform, and I've got myself to
• 11:09
  Speaker 4: a point where I'm investing one thousand dollars a month.
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  Speaker 4: Obviously that's not achievable for everyone, because we're just talking
• 11:15
  Speaker 4: about an example, and I want to just show you
• 11:17
  Speaker 4: how compound interest works. So if we chuck that into
• 11:21
  Speaker 4: a compound interest calculator, which we will link in the
• 11:23
  Speaker 4: show notes as well. Because the moneysmart dot gov website,
• 11:27
  Speaker 4: I've said this before, I adore is a government run.
• 11:31
  Speaker 3: It is all legit.
• 11:32
  Speaker 4: It is not a financial advisor, you know, overlaying their
• 11:35
  Speaker 4: opinions on new It's just a compound interest calculator.
• 11:38
  Speaker 3: And we like that.
• 11:39
  Speaker 4: But if you initially had your five grand and you're like, Okay,
• 11:42
  Speaker 4: I want to go in the to the next steps.
• 11:44
  Speaker 4: I want to go from investing in a micro investing
• 11:46
  Speaker 4: platform to having my own share portfolio, which my friends,
• 11:49
  Speaker 4: is not as hard as you might think it is,
• 11:52
  Speaker 4: and you're doing that thousand dollars a month till retirement,
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  Speaker 4: you'll end up with a very sexy one point five
• 11:58
  Speaker 4: million dollars. Oh so your initial deposited the five grand,
• 12:03
  Speaker 4: you're a depositing one thousand dollars a month. Obviously, that's
• 12:05
  Speaker 4: pretty big over that entire period of time. So till retirement,
• 12:09
  Speaker 4: which I've assumed is forty years away, given current market,
• 12:14
  Speaker 4: you would have saved four hundred and eighty thousand dollars,
• 12:16
  Speaker 4: like if you just put.
• 12:17
  Speaker 3: That into a salesce account.
• 12:19
  Speaker 4: Obviously we need to take into accounts CPI or indexation
• 12:22
  Speaker 4: because the cost of goods and services increases over time.
• 12:26
  Speaker 4: So therefore that's going backwards at two point four percent
• 12:29
  Speaker 4: on average over the last thirty years based on the
• 12:31
  Speaker 4: conversation we're just having, So it's not actually going to
• 12:34
  Speaker 4: be worth that, So we need to understand that as
• 12:36
  Speaker 4: well and overlay that assumption. But we're just talking basic numbers.
• 12:40
  Speaker 4: We're not taking into consideration tax here either, which you
• 12:43
  Speaker 4: will have to pay if you get.
• 12:45
  Speaker 3: To that point.
• 12:46
  Speaker 4: But you'll make a million dollars essentially from investing over
• 12:50
  Speaker 4: the long term. That's a million dollars of I want
• 12:53
  Speaker 4: to call it free money, but it's like free money
• 12:55
  Speaker 4: that you're getting because you have put in the longyards
• 12:58
  Speaker 4: and actually invested and stuck with it. A million dollars
• 13:01
  Speaker 4: you didn't have forty years prior.
• 13:03
  Speaker 3: How cool is that?
• 13:04
  Speaker 2: Well, you've doubled what you would have if you just
• 13:06
  Speaker 2: saved it, and then and then some exactly.
• 13:09
  Speaker 4: And there's sexy part about this, and I keep saying
• 13:11
  Speaker 4: sexy on this episode.
• 13:12
  Speaker 3: Is sorry because we're talking about investing.
• 13:15
  Speaker 2: Exhorited about it.
• 13:16
  Speaker 3: It is my jam.
• 13:17
  Speaker 4: But five percent of one point five million dollars invested,
• 13:20
  Speaker 4: because that's the cool part.
• 13:22
  Speaker 1: Right.
• 13:22
  Speaker 4: You don't get to the end game of investing and say,
• 13:25
  Speaker 4: oh my gosh, well now I have one point five
• 13:26
  Speaker 4: million dollars I can start spending it like friends. We
• 13:29
  Speaker 4: don't start spending that money at all. It will stay invested.
• 13:33
  Speaker 4: And those dividends that you are paid and the returns
• 13:36
  Speaker 4: that you get each and every single year that was
• 13:38
  Speaker 4: compound interest building your portfolio. You're now taking as your salary.
• 13:43
  Speaker 4: So you now take that money as your income. And
• 13:46
  Speaker 4: five percent of one point five million dollars obviously we're
• 13:49
  Speaker 4: being super conservative with those numbers Georgia.
• 13:51
  Speaker 3: That's seventy five thousand dollars a year. Bolin' Bolin Bowling, absolutely, Bolin.
• 13:56
  Speaker 4: Obviously you're gonna have to pay tax on that, yah,
• 13:58
  Speaker 4: marginal tax rate, all of that fun stuff. And it's
• 14:01
  Speaker 4: definitely not something that I would say, Okay, no problems,
• 14:04
  Speaker 4: don't worry about tax or anything like that. It's also
• 14:07
  Speaker 4: probably really worthy of pointing out the superannuation needs to
• 14:09
  Speaker 4: be taken into consideration. Love super, you're already investing. Check
• 14:14
  Speaker 4: out what's in your super already, because it has the
• 14:16
  Speaker 4: same power that this investing has.
• 14:18
  Speaker 2: God. Every time we talk about investing, I'm just like, ah,
• 14:22
  Speaker 2: sounds like it's the best. Why aren't you doing it? Is?
• 14:25
  Speaker 3: I'm so excited about it? Can you tell?
• 14:28
  Speaker 4: But that's it, And I just wanted to put that
• 14:30
  Speaker 4: into your your mind. You're going to retire at what's
• 14:34
  Speaker 4: sixty five, going to live for hopefully twenty thirty years.
• 14:38
  Speaker 3: That's not enough money.
• 14:39
  Speaker 4: I think people get really hung up on and this
• 14:42
  Speaker 4: is going to be a really long episode. I do
• 14:43
  Speaker 4: apologize friends, because I'm just like so on top of
• 14:47
  Speaker 4: this stuff.
• 14:48
  Speaker 3: But a thousand dollars a month not achievable.
• 14:50
  Speaker 4: For you, But what does that look like holistically, including
• 14:54
  Speaker 4: your superannuation, your savings, your future family home. Like, you
• 14:57
  Speaker 4: might not be in a position where you actually need
• 15:00
  Speaker 4: seventy five thousand dollar income, Like, let's work out what
• 15:03
  Speaker 4: you actually need to survive. Because a lot of people
• 15:06
  Speaker 4: the Australian dream to buy property, so at some point
• 15:09
  Speaker 4: most of us will go all right, well, I really
• 15:11
  Speaker 4: want to buy property. Definitely not something that we have
• 15:13
  Speaker 4: to do. I feel like I'm seeing a change of
• 15:16
  Speaker 4: people saying, well, actually I don't want to own property.
• 15:18
  Speaker 4: I just want to invest in chairs and have the freedom. Yes, queens,
• 15:21
  Speaker 4: I love that for us, but I wouldn't you to
• 15:23
  Speaker 4: have the option. But if you have put together a
• 15:25
  Speaker 4: little financial strategy for yourself, you've purchased a home and
• 15:29
  Speaker 4: by the time that you retire, that's completely paid off.
• 15:31
  Speaker 4: You don't need to factory mortgage repayments or rent like,
• 15:34
  Speaker 4: so your income could be less and you could be
• 15:37
  Speaker 4: really comfortable on that.
• 15:39
  Speaker 3: So that's the end of my rank. Can you ask
• 15:41
  Speaker 3: me another that was good and keep on a movie?
• 15:43
  Speaker 2: Absolutely? So this is a little bit of a side step.
• 15:45
  Speaker 2: But I was looking at a couple of studies in
• 15:47
  Speaker 2: prep for today's episode. We know I love a stat
• 15:50
  Speaker 2: you are stats a stat scale here unsurprisingly, it was
• 15:54
  Speaker 2: found that Australian women on the whole are investing less
• 15:58
  Speaker 2: than men. What is your take on why this is
• 16:01
  Speaker 2: and do you see that changing? Yeah?
• 16:03
  Speaker 3: Look, I know this that that you're referring to, George.
• 16:05
  Speaker 4: That was an article from a company called First Links
• 16:08
  Speaker 4: that we were talking about earlier this week, and their
• 16:10
  Speaker 4: research found and I'm gonna outline this because I'm not
• 16:13
  Speaker 4: sure how accurate this is, just because I like to
• 16:16
  Speaker 4: think about the stats and yeah, it doesn't make sense
• 16:18
  Speaker 4: to me. So they found that women only make up
• 16:21
  Speaker 4: eighteen percent of the seven hundred and fifty thousand people
• 16:25
  Speaker 4: who are active online investors in Australia. So I'm not
• 16:30
  Speaker 4: sure what that looks like because Australia has a population
• 16:33
  Speaker 4: of around twenty five million people, and from what I understand,
• 16:37
  Speaker 4: that doesn't sound like nearly enough people investing, given we
• 16:40
  Speaker 4: all technically are investors in our suberannuation. So I don't
• 16:44
  Speaker 4: know what that means. Maybe active online investors actually means
• 16:48
  Speaker 4: people trading on the ASEX or something that are maybe
• 16:50
  Speaker 4: buying direct shares, whereas it might not be taking into
• 16:54
  Speaker 4: consideration people using micro investing platforms or ETFs or whatever
• 16:58
  Speaker 4: that is.
• 16:58
  Speaker 3: Okay, does that make sense? Like just disclaimer.
• 17:01
  Speaker 4: But at the same time, if and this is me
• 17:04
  Speaker 4: being a little bit optimistic, guys, if eighteen percent of
• 17:08
  Speaker 4: seven hundred and fifty thousand people are women, that is
• 17:12
  Speaker 4: a total of one thirty five people, Georgia, that's the
• 17:15
  Speaker 4: entire number of our Facebook group.
• 17:17
  Speaker 3: Can you imagine if.
• 17:18
  Speaker 4: We then got everybody on our Facebook group investing, we
• 17:21
  Speaker 4: could double the amount of female investors in Australia. Okay,
• 17:24
  Speaker 4: that's me being health That's why I wanted this start
• 17:27
  Speaker 4: to kind of be true.
• 17:27
  Speaker 3: But at the same time, I don't.
• 17:29
  Speaker 4: Know how sketic, But yeah, you're right, women are less
• 17:33
  Speaker 4: likely to invest in shares because we are more conservative,
• 17:36
  Speaker 4: We don't take the leap, we don't have the education
• 17:39
  Speaker 4: that we require, and more often than not, we feel
• 17:42
  Speaker 4: like we need to know a subject back to front
• 17:44
  Speaker 4: before we even even entertain the idea of doing it,
• 17:48
  Speaker 4: whereas guys are like, yeah, I'll give that a crack,
• 17:50
  Speaker 4: don't really know, but my mate's doing it, so must
• 17:52
  Speaker 4: be good. We don't do that, and I see that
• 17:54
  Speaker 4: in you, Georgia. Because you are still not ready to
• 17:57
  Speaker 4: take that leap, and that is totally okay, And I
• 17:59
  Speaker 4: think that that something that we also need to disclaim.
• 18:01
  Speaker 4: If you're not investing in shares, We're not here to
• 18:03
  Speaker 4: tell you that you're doing ther wrong thing. By not
• 18:05
  Speaker 4: we're just saying, hey, let's keep the conversation going, keep
• 18:08
  Speaker 4: you educated, keep you on the right journey, because the
• 18:11
  Speaker 4: right time for you to invest personally is not right now,
• 18:14
  Speaker 4: it's when you.
• 18:15
  Speaker 3: Are comfortable and ready. Gee.
• 18:18
  Speaker 4: I also do think that the tide is kind of
• 18:20
  Speaker 4: turning because of how many women in our community are
• 18:22
  Speaker 4: talking about shares and investing, and you know, there's so
• 18:26
  Speaker 4: many other communities online as well talking about it. And
• 18:29
  Speaker 4: I feel like it's twenty twenty one. We have access
• 18:31
  Speaker 4: to so much research, We have the ability to do
• 18:35
  Speaker 4: so many things ourselves. At thirty years ago we would
• 18:38
  Speaker 4: not have had access to. So hopefully that stat is
• 18:41
  Speaker 4: going to change dramatically in the next couple of years
• 18:43
  Speaker 4: and we are going to track it.
• 18:44
  Speaker 2: Yeah, for sure.
• 18:45
  Speaker 3: Moving on to the next question, what have you got
• 18:47
  Speaker 3: for me?
• 18:48
  Speaker 2: Okay, so how do we actually get started? You mentioned
• 18:51
  Speaker 2: before micro investing, and we do talk about that a
• 18:53
  Speaker 2: lot as a great place to start if you are
• 18:55
  Speaker 2: still a bit hesitant. But also if you just have
• 18:57
  Speaker 2: some money you want to tuck away and do a
• 18:59
  Speaker 2: little bit more with it, and it just being in
• 19:01
  Speaker 2: your savings, what would you recommend beyond that as a
• 19:03
  Speaker 2: good way to start.
• 19:04
  Speaker 4: Yes, And I think that this is such a good
• 19:06
  Speaker 4: question because we can educate ourselves. But where do you start?
• 19:10
  Speaker 4: And when you start researching, you get a bit of
• 19:12
  Speaker 4: analysis provalysis, Like there are so many options, and so
• 19:16
  Speaker 4: many times people message us and say, Okay, well what
• 19:19
  Speaker 4: ETF should I buy? I can't legally give you that advice,
• 19:23
  Speaker 4: and even if I could, I would have to take
• 19:25
  Speaker 4: into consideration your risk profile, your personal situation, your goals,
• 19:29
  Speaker 4: like what you want to achieve over the long term,
• 19:31
  Speaker 4: what the final outcome is, before even considering that. Maybe
• 19:35
  Speaker 4: you've got personal values and want to ethically invest. So
• 19:38
  Speaker 4: I think it's really important for you to understand that
• 19:40
  Speaker 4: it is not necessarily about which ETF you pick or
• 19:43
  Speaker 4: which asset you pick.
• 19:45
  Speaker 3: It's about, well, what are your values?
• 19:47
  Speaker 4: Then start looking for an asset that aligns to your values,
• 19:51
  Speaker 4: not the opposite, Because go out there, there's literally thousands
• 19:55
  Speaker 4: of assets in Australia that you can pick from, but
• 19:57
  Speaker 4: you can make it easier for yourself by going, Okay, cool,
• 20:01
  Speaker 4: what criteria do I want my future assets to meet
• 20:05
  Speaker 4: before I even start looking at them, so that you
• 20:07
  Speaker 4: can knock heaps off before even starting the search. So
• 20:12
  Speaker 4: for me, that's what I would do. Micro Investing, in
• 20:15
  Speaker 4: my humble opinion, is actually a really great place to start.
• 20:19
  Speaker 4: And I say this because it gives you the ability
• 20:22
  Speaker 4: to dip your toes in the water. You're not going
• 20:24
  Speaker 4: and buying a share. You're not going and putting all
• 20:27
  Speaker 4: your money and all your hard earned savings into a
• 20:30
  Speaker 4: well diversified portfolio that can genuinely feel really overwhelming. With
• 20:34
  Speaker 4: micro investing, you can literally start with a dollar. We
• 20:37
  Speaker 4: did a double episode on micro investing back in Season three, Georgia.
• 20:41
  Speaker 4: So if you want to know more about that space
• 20:43
  Speaker 4: and you're ready to move onto the share market at
• 20:46
  Speaker 4: that scale, definitely go have a look at them.
• 20:48
  Speaker 3: But if you want to grow from a.
• 20:49
  Speaker 4: Micro investing platform, we get so many messages Georgia, and
• 20:53
  Speaker 4: you would absolutely be privy to these Victoria. I've been investing,
• 20:57
  Speaker 4: and I've been doing something with a co investing platform
• 21:00
  Speaker 4: for a while now, what is the next step?
• 21:04
  Speaker 3: That's probably our number one question.
• 21:05
  Speaker 4: You would say, yep, the next step is obviously to
• 21:08
  Speaker 4: get some advice. But catch twenty two financial advice is
• 21:14
  Speaker 4: really expensive and this really upsets me. So the next
• 21:19
  Speaker 4: step would obviously be to work out where you're out
• 21:21
  Speaker 4: with your finances, Go see a financial advisor, have a
• 21:24
  Speaker 4: chat about that. But I'm not meant to be sharing
• 21:28
  Speaker 4: this yet, and I can see you looking at me
• 21:29
  Speaker 4: being like, b what are you doing. I am actually
• 21:32
  Speaker 4: working on a solution that would sit in the middle,
• 21:34
  Speaker 4: so you don't have to pay for a financial advisor,
• 21:36
  Speaker 4: but you can go and actually get advice that is
• 21:40
  Speaker 4: aligned to your risk profile, that has a really good portfolio,
• 21:44
  Speaker 4: aligned to your values, aligned to what you want to do,
• 21:47
  Speaker 4: that will be automatically rebalanced.
• 21:49
  Speaker 3: Do you know what that means.
• 21:50
  Speaker 4: It means that there would be a fund manay during
• 21:52
  Speaker 4: the background making decisions about your portfolio, so that you know,
• 21:56
  Speaker 4: if something's performing really good, they might take some off
• 21:59
  Speaker 4: the table making decisions about your portfolio, so that you
• 22:03
  Speaker 4: can be empowered and actually always say, well, my portfolio
• 22:07
  Speaker 4: is always well diversified because I have somebody working on
• 22:10
  Speaker 4: working with me to do that, and it didn't cost
• 22:13
  Speaker 4: you five grand to do that.
• 22:14
  Speaker 3: Yeah, anyway, I've.
• 22:15
  Speaker 2: Teased us though, So when are we talking? When it's
• 22:17
  Speaker 2: going to be released.
• 22:17
  Speaker 3: Ish March April.
• 22:19
  Speaker 2: Oh y, it's coming soon twenty one, good lord. All right.
• 22:23
  Speaker 4: It will be a very beautiful platform and from us,
• 22:25
  Speaker 4: you'll be able to see all your investments in one place.
• 22:27
  Speaker 3: Fabulous the dream, Georgia Keys.
• 22:29
  Speaker 2: So in the meantime, what are the other steps we're taking.
• 22:32
  Speaker 4: The other steps we are taking is looking at our finances,
• 22:34
  Speaker 4: seeing where we're at. I want you to write down
• 22:37
  Speaker 4: what you own, what you owe, what you earn, and
• 22:39
  Speaker 4: what you spend. I want you to understand all of that.
• 22:42
  Speaker 4: You need to understand your income and your expenses so
• 22:45
  Speaker 4: you can really clearly see your financial position and how
• 22:47
  Speaker 4: much you actually want to invest monthly. The key to
• 22:50
  Speaker 4: investing is consistency. We will create wealth if we invest
• 22:54
  Speaker 4: consistently and always spend less than we are earning. Like
• 22:58
  Speaker 4: that should just be one podcast, thirty seconds of me
• 23:01
  Speaker 4: saying spend less than you invest all the time, full stop,
• 23:04
  Speaker 4: end of story.
• 23:05
  Speaker 3: Wealth creation stunning. Oh I guess that's the end of
• 23:07
  Speaker 3: the podcast.
• 23:08
  Speaker 4: Guys.
• 23:08
  Speaker 3: I know, but also, once we know what we're working with,
• 23:12
  Speaker 3: understand your risk profile.
• 23:14
  Speaker 4: I cannot tell you this more times than I have,
• 23:17
  Speaker 4: but understanding what a risk profile is and being able
• 23:20
  Speaker 4: to gauge where to place your money within the market,
• 23:23
  Speaker 4: how much risk do you want to take on? Not
• 23:25
  Speaker 4: because you're a low income owner or edging close to retirement,
• 23:29
  Speaker 4: but it's actually one of those things that your risk
• 23:32
  Speaker 4: profile is a reflection of your values and what you're
• 23:34
  Speaker 4: going to be comfortable with. And when it comes to investing,
• 23:36
  Speaker 4: if you cannot sleep at night because of the assets
• 23:38
  Speaker 4: you've chosen, my friend, you've chosen the wrong assets. I
• 23:41
  Speaker 4: think it's about really understanding the risk profile, which is
• 23:44
  Speaker 4: essentially your ability to take on risk. But I'm doing
• 23:46
  Speaker 4: an entire episode on how to understand your risk profile soon,
• 23:50
  Speaker 4: what that actually means and how we do it. But
• 23:52
  Speaker 4: then it's also goal setting, how long you investing for?
• 23:56
  Speaker 4: What are your other goals? Are you saving for a home?
• 23:59
  Speaker 4: Are you know? Do you have other personal expenses coming
• 24:02
  Speaker 4: up in the next three to five years that we
• 24:03
  Speaker 4: need to take into consideration.
• 24:05
  Speaker 3: You know, if you're a unie student and you're.
• 24:07
  Speaker 4: Listening to this, or you are a low income earner
• 24:10
  Speaker 4: that just goes Victoria. This sounds so great, but I
• 24:12
  Speaker 4: can't afford it, my friend, I understand fully, I get it,
• 24:16
  Speaker 4: I really do. It is not about having to invest.
• 24:20
  Speaker 4: If you are a UNI student and you are just
• 24:22
  Speaker 4: scraping by, you are living week to week, that's okay.
• 24:25
  Speaker 3: Like just knowing that.
• 24:27
  Speaker 4: This is something you want to do in the future
• 24:29
  Speaker 4: is absolutely putting you at an advantage and putting you
• 24:32
  Speaker 4: ahead of the rest. Sometimes you just need to get by.
• 24:35
  Speaker 4: Sometimes you have two kids and a forty five thousand
• 24:38
  Speaker 4: dollar income and you literally feel like everything is a pinch,
• 24:42
  Speaker 4: and things like this put extra pressure on you because
• 24:44
  Speaker 4: you go, oh, my gosh. I listened to Sheese on
• 24:46
  Speaker 4: the Money and I left feeling not empowered because I
• 24:49
  Speaker 4: can't invest in shares. What about my future? Like, my friend,
• 24:52
  Speaker 4: you will be okay. There will be a plan that
• 24:55
  Speaker 4: works for you. You do not have to be investing
• 24:57
  Speaker 4: if it doesn't work for your personal situation.
• 25:00
  Speaker 2: But that doesn't mean it's not worth understanding.
• 25:02
  Speaker 3: One hundred percent.
• 25:04
  Speaker 4: Understanding and education is our key to future success.
• 25:07
  Speaker 2: One hundred percent. All right, So moving on, b how
• 25:11
  Speaker 2: do we choose where to invest our money? Is it
• 25:13
  Speaker 2: a matter of like pulling up the annual report of
• 25:15
  Speaker 2: the businesses that we're thinking of investing in, or do
• 25:19
  Speaker 2: we go on I told John's recommendation, and just.
• 25:22
  Speaker 4: That he told your pristmas after a few too many bbtis. Yeah,
• 25:26
  Speaker 4: he sounds like you're really John. Yeah, he's good. Yeah,
• 25:30
  Speaker 4: there's a reason that his advice is absolutely flawless. I'm
• 25:33
  Speaker 4: actually hiring him next week. If you are me, you
• 25:37
  Speaker 4: do read the annual reports of companies in deep dive
• 25:40
  Speaker 4: into what people online are saying about them and how
• 25:43
  Speaker 4: they are performing in the latest CEO that they I
• 25:46
  Speaker 4: get into Rabbit Warrens.
• 25:47
  Speaker 2: Yeah.
• 25:47
  Speaker 4: But you can go on buy shares and you can
• 25:50
  Speaker 4: look at things like well diversified ETFs where somebody else
• 25:53
  Speaker 4: is making that decision for you. You can go into
• 25:55
  Speaker 4: a managed fund where you literally have a fund manager,
• 25:58
  Speaker 4: which is a little bit more expensive than an ETF
• 26:00
  Speaker 4: because of how much more activity is than an ETF.
• 26:03
  Speaker 4: But there are so many great places to start. But
• 26:06
  Speaker 4: a really safe option when you're starting out is to
• 26:09
  Speaker 4: look at what we call blue chip companies. So blue
• 26:11
  Speaker 4: chip companies are stable, reputable companies who have proven themselves
• 26:16
  Speaker 4: to be very consistently historically and therefore carry a lower risk.
• 26:20
  Speaker 4: So you can find these just by googling SMP ASX
• 26:23
  Speaker 4: fifty or SMP two hundred, which is going to give
• 26:27
  Speaker 4: you a list of either the top fifty blue chip
• 26:29
  Speaker 4: companies or the top two hundred companies, just so that
• 26:32
  Speaker 4: you can understand who they are.
• 26:33
  Speaker 2: What can you give me an example?
• 26:35
  Speaker 4: Would it be like Woolworth'sless be Willies, It would be
• 26:38
  Speaker 4: nab A and Z, it would be Telstra. So just
• 26:41
  Speaker 4: those really reliable, really reliable companies that have good track
• 26:45
  Speaker 4: records in Australia that you can go and look at
• 26:47
  Speaker 4: their past performance. As much as past performance is absolutely
• 26:50
  Speaker 4: not a reliable predictor of future performance.
• 26:52
  Speaker 3: I sound like a television real I hate that.
• 26:55
  Speaker 4: You know, like they speed it up at the end,
• 26:57
  Speaker 4: They speed it up at the end. Their past performance
• 26:59
  Speaker 4: is not unreliable predictor of future performance. For me, past
• 27:04
  Speaker 4: performance isn't. But like I want to see that they've
• 27:06
  Speaker 4: proven themselves and I want to see that as a
• 27:08
  Speaker 4: business they're growing and they are building year on year.
• 27:11
  Speaker 4: The important thing here is to understand your values, because
• 27:14
  Speaker 4: you might not want to invest in mining companies and
• 27:16
  Speaker 4: an ETF might have that in that so you've got
• 27:18
  Speaker 4: to then go find something that doesn't include that asset
• 27:21
  Speaker 4: you might not want to invest in. It's also not
• 27:23
  Speaker 4: a bad idea to invest in industries that you know
• 27:25
  Speaker 4: really well. So for me, that's going to help you
• 27:28
  Speaker 4: feel safer at night. It's going to help you sleep
• 27:31
  Speaker 4: better because it might be easier to stay on companies
• 27:34
  Speaker 4: that are thriving because you're already interested in that industry.
• 27:38
  Speaker 4: Have a look at the ASX. That is a really
• 27:41
  Speaker 4: good resource. That's Australian Stock Exchange which you can just
• 27:44
  Speaker 4: google and they have an outline of all the sectors
• 27:46
  Speaker 4: you could invest in and jot down some companies that
• 27:49
  Speaker 4: stand out to you and then you could comb through
• 27:51
  Speaker 4: them see how they're tracking, etc. But this is all
• 27:54
  Speaker 4: if you want to be a little bit more active,
• 27:56
  Speaker 4: very hands on, very hands on, and to be honest,
• 27:59
  Speaker 4: it is really hard. So at the start I find
• 28:02
  Speaker 4: that people who really motivated, they're like, I'm going to
• 28:04
  Speaker 4: put together a really well diversified portfolio. I'm going to
• 28:06
  Speaker 4: research what percentages I need in my portfolio. Great, that's fantastic.
• 28:11
  Speaker 4: How are you maintaining that?
• 28:13
  Speaker 3: So like you might put it together today, the stock market.
• 28:16
  Speaker 4: Changes every single day. How often are you going to
• 28:19
  Speaker 4: be keeping an eye on it? Are you going to
• 28:21
  Speaker 4: be Are you going to be like a financial advisor
• 28:24
  Speaker 4: and going and looking at each and every single day
• 28:27
  Speaker 4: and actually making decisions on your portfolio about when to
• 28:30
  Speaker 4: sell some shares to rebalance your portfolio. Are you going
• 28:33
  Speaker 4: to be on top of it for the rest of
• 28:35
  Speaker 4: your life like you are meant to be? Maybe not,
• 28:38
  Speaker 4: then maybe have a look at something that helps you
• 28:41
  Speaker 4: diversify a little bit better, or get some advice. At
• 28:44
  Speaker 4: the end of the day, I obviously am a financial advisor,
• 28:48
  Speaker 4: and if you have a large sum of money, like
• 28:50
  Speaker 4: we know that people who do not have financial advisors
• 28:53
  Speaker 4: and just do it themselves.
• 28:54
  Speaker 2: Yeah, so it's worth that investment, even though it may
• 28:56
  Speaker 2: be a little bit of a it is like it's
• 28:59
  Speaker 2: an invest So yes, at the end of the day,
• 29:01
  Speaker 2: you are putting your money into something and you are
• 29:04
  Speaker 2: paying someone to make those decisions because you are anticipating
• 29:07
  Speaker 2: better returns than you could get on your own. Like
• 29:10
  Speaker 2: we're not just saying, oh, go pay your financial advisor
• 29:12
  Speaker 2: because I'm trying to help the industry get more money.
• 29:15
  Speaker 4: That is absolutely not it. Financial advisors work really hard
• 29:20
  Speaker 4: to make sure that your portfolio is performing really well,
• 29:24
  Speaker 4: is aligned to your goals, your values, is well diversified,
• 29:27
  Speaker 4: and going to help you get to retirement, which at
• 29:29
  Speaker 4: the end of the day is what we're all trying
• 29:31
  Speaker 4: to do, if you just steal it down, We're all
• 29:34
  Speaker 4: getting older, we all need to make sure that we're
• 29:36
  Speaker 4: looking after future you and the whole goal of financial
• 29:39
  Speaker 4: advice is to get you to a safe and comfortable retirement,
• 29:42
  Speaker 4: as un sexy as that sounds.
• 29:44
  Speaker 2: So how regularly should we be topping up our investment
• 29:48
  Speaker 2: folio if you like? Is that something? Is that advice
• 29:51
  Speaker 2: that would come from our advisor if we did go
• 29:53
  Speaker 2: down that line? Yeah, what do we doing?
• 29:56
  Speaker 4: Consistency is key here, So to be more specif I
• 30:00
  Speaker 4: would say that monthly contributions if you can afford them,
• 30:03
  Speaker 4: are great, but lots of people do tend to contribute
• 30:06
  Speaker 4: just when they get paid, so it goes straight into
• 30:08
  Speaker 4: their share portfolio other than their savings, and it's all automated.
• 30:11
  Speaker 4: Often that's a better way to do it as well,
• 30:13
  Speaker 4: because you don't feel the hit as much. But the
• 30:16
  Speaker 4: term that I want you to understand here is called
• 30:18
  Speaker 4: dollar cost averaging. So many sexy terms clients, right, And
• 30:23
  Speaker 4: that is a simple strategy of making regular incremental investments
• 30:27
  Speaker 4: over a long period of time, as opposed to lump
• 30:29
  Speaker 4: some investment. Now, the reason we would want to do
• 30:32
  Speaker 4: that is because it turns out we are not psychic
• 30:35
  Speaker 4: Georgia and we can't predict the market. If we could,
• 30:38
  Speaker 4: I would have invested in bitcoin because I would have
• 30:42
  Speaker 4: been able to know when to get in and when
• 30:44
  Speaker 4: to get out. But it turns out we don't know
• 30:46
  Speaker 4: how to do that. So our next best option is
• 30:49
  Speaker 4: dollar cost averaging, and that means putting our money into
• 30:52
  Speaker 4: the market regularly so that we get exposure to the
• 30:55
  Speaker 4: ups and downs consistently, instead of putting all our money
• 30:58
  Speaker 4: in at the start of January and.
• 31:00
  Speaker 3: Watching the market.
• 31:00
  Speaker 4: Yeah, the rest of you go up and down and
• 31:02
  Speaker 4: we don't get exposure to those market fluctuations. So a
• 31:06
  Speaker 4: good example is we might have one dollar always bring
• 31:10
  Speaker 4: it down to like really low levels.
• 31:11
  Speaker 3: Because I feel like it's better, it's easier to to understand.
• 31:14
  Speaker 4: Right, So you invest one dollar today and you get
• 31:17
  Speaker 4: ten shares and you go great, fantastic, But then tomorrow
• 31:21
  Speaker 4: you also invest a dollar, but the markets down, so
• 31:24
  Speaker 4: shares are actually worth more, so you might get fifteen chares.
• 31:28
  Speaker 4: And I feel like that example helps you understand that
• 31:32
  Speaker 4: you might on some days get more for your money,
• 31:34
  Speaker 4: and some days it might be up might you know,
• 31:37
  Speaker 4: things might be more expensive, so you might.
• 31:39
  Speaker 3: Get seven chares.
• 31:40
  Speaker 4: But by doing that, you are actually averaging your portfolio
• 31:45
  Speaker 4: and what you're putting into the market in line with
• 31:47
  Speaker 4: the market, so that you're getting those fluctuations reflected in
• 31:51
  Speaker 4: your portfolio. So on average, you'll end up in a
• 31:53
  Speaker 4: better position than having just purchased everything on the one day.
• 31:57
  Speaker 4: And as a financial advisor, even when clients come to
• 32:00
  Speaker 4: me so Georgia, as you would know, I do deal
• 32:03
  Speaker 4: with large sum investment in my financial advice business seller,
• 32:07
  Speaker 4: A lot of clients have either really large sums of
• 32:09
  Speaker 4: money or inheritance, and it's essentially.
• 32:13
  Speaker 3: My specialist area.
• 32:14
  Speaker 4: I would say, but I've never taken a client's, you know,
• 32:17
  Speaker 4: lump some investment of one hundred thousand dollars or three
• 32:20
  Speaker 4: hundred thousand dollars and put it into the market on
• 32:22
  Speaker 4: one day.
• 32:23
  Speaker 3: Okay, that's crazy talk, Like.
• 32:24
  Speaker 4: Even if you've got the money, you don't do that.
• 32:27
  Speaker 4: You droop it in so that you make sure that
• 32:29
  Speaker 4: you're making use of dollar cost averaging.
• 32:33
  Speaker 2: See I didn't know that until right now.
• 32:35
  Speaker 4: So it's literally the most effective when market's on a
• 32:38
  Speaker 4: downward trend. So that kind of makes sense because you're
• 32:41
  Speaker 4: always making use of getting more for your money. But
• 32:44
  Speaker 4: in a rising market, which by the way, we call
• 32:47
  Speaker 4: a bullmarket bull bullmarket like cow cow like bull market
• 32:52
  Speaker 4: because it's aggressive showing up and that's why the bullet
• 32:55
  Speaker 4: Have you seen that statue?
• 32:56
  Speaker 2: Which one you wouldn't have flat hated?
• 32:58
  Speaker 3: Am I the only one that googles like Wall Street
• 33:01
  Speaker 3: looks like?
• 33:02
  Speaker 2: Oh no, I feel like I've seen it on the
• 33:03
  Speaker 2: Wolf of Wall Street?
• 33:04
  Speaker 3: Yeah right, the ball ye yeah, because the bull market. Right.
• 33:07
  Speaker 4: Anyway, a dollar cost averaging in a rising market, so
• 33:11
  Speaker 4: or what we're talking about a bull market.
• 33:14
  Speaker 3: A dollar cost averaging strategy is not as effective.
• 33:16
  Speaker 4: But at the same time, if we are investing over
• 33:19
  Speaker 4: the long term, it'll all average out and it won't
• 33:21
  Speaker 4: matter that much. So at the end of the day,
• 33:24
  Speaker 4: dollar cost averaging really important to understand because that's why
• 33:27
  Speaker 4: we want to invest consistently. It's not me going oh yeah,
• 33:30
  Speaker 4: just invest consistently. It's a good idea, Like there's as logic,
• 33:33
  Speaker 4: strategy and logic behind it wonderful.
• 33:36
  Speaker 2: Okay, I feel like we've touched on this next question recently,
• 33:39
  Speaker 2: but I'm gonna ask you a get anyway, how do
• 33:41
  Speaker 2: we stay on top of our shares?
• 33:44
  Speaker 4: There are a number of different ways to a spreadsheet.
• 33:46
  Speaker 4: You could have a spreadsheet that requires a lot of
• 33:49
  Speaker 4: manual implementation of copying and pasting on a daily basis,
• 33:53
  Speaker 4: or you could get a really fancy one that you
• 33:55
  Speaker 4: link up that just does it automatically. Cannot recommend though,
• 33:58
  Speaker 4: because they break often. Oh, there are apps out there
• 34:02
  Speaker 4: that make life much easier, like Investments, doc lit and
• 34:05
  Speaker 4: share site reader, which can help you keep an eye
• 34:07
  Speaker 4: and on everything and track it. If you are with
• 34:10
  Speaker 4: a financial advisor, they will have their own industry platform
• 34:13
  Speaker 4: that is usually wholesale, like as I was saying the
• 34:16
  Speaker 4: other week, I have one, but you can't access it
• 34:18
  Speaker 4: unless you have a financial advisor.
• 34:20
  Speaker 3: I am sorry.
• 34:21
  Speaker 4: You can also track how your investments are going by
• 34:23
  Speaker 4: subscribing to asseic and you'll get regular updates and what
• 34:27
  Speaker 4: companies are doing if you're invested in them or if
• 34:29
  Speaker 4: they lodge new information, which I think is really important.
• 34:33
  Speaker 4: But most platforms will give you a log in so
• 34:36
  Speaker 4: that you can see what you're investing in. You don't
• 34:38
  Speaker 4: just put your money into something and then have no visibility.
• 34:40
  Speaker 4: Like whatever platform you purchase your asset on, you will
• 34:44
  Speaker 4: be able to see your asset on, but you won't
• 34:46
  Speaker 4: be able to see every single asset you have. Like
• 34:49
  Speaker 4: there isn't one place that is going to pull your
• 34:51
  Speaker 4: micro investing platforms together, and then you're you know your
• 34:55
  Speaker 4: ETF if you've purchased it directly, and then you know
• 34:57
  Speaker 4: a couple of shares, Like that's not going to happen
• 35:00
  Speaker 4: unless you have a financial advisor who has a wholesale platform.
• 35:03
  Speaker 3: But in their future, it turns out I'm working on
• 35:06
  Speaker 3: yeah something, come something something from my friends.
• 35:09
  Speaker 2: Okay, now we have gone through so much already. I
• 35:12
  Speaker 2: am learning lots. I feel like it is. It's a
• 35:17
  Speaker 2: mighty longap. Sorry, I'm sorry, but the good news is
• 35:19
  Speaker 2: we're only halfway through.
• 35:21
  Speaker 4: No, no, we'll have to speed it up. Maybe we
• 35:24
  Speaker 4: would break this into another episode because this is wild.
• 35:26
  Speaker 2: Yeah, it is wild. Before we move on to the
• 35:29
  Speaker 2: second part of today's show, though, guys, here's a quick
• 35:31
  Speaker 2: little word from the partners of today's show. Now, if
• 35:48
  Speaker 2: you guys are loving this chat as much as Victoria
• 35:51
  Speaker 2: to Vine is, and it is a lot. And you're
• 35:55
  Speaker 2: feeling like you do need a little more Shoes on
• 35:57
  Speaker 2: the Money in your life, then please don't forget to
• 35:59
  Speaker 2: join our glorious Facebook group. It's an incredibly inclusive and
• 36:04
  Speaker 2: open minded community, pactful with insightful money conversations that we're
• 36:08
  Speaker 2: having literally every day. We're also on Instagram, TikTok, YouTube
• 36:12
  Speaker 2: newsletter just plug Plug Plus.
• 36:14
  Speaker 4: You say the newsletter really flippantly, but like, that's arguably
• 36:17
  Speaker 4: one of my favorite pieces of content is Shees on
• 36:19
  Speaker 4: the Money puts out each and every single week, like
• 36:22
  Speaker 4: it is wild. I never know what to expect with it.
• 36:25
  Speaker 4: If you aren't on the newsletter yet, I would absolutely subscribe.
• 36:28
  Speaker 4: I'll actually put the link in our show notes this
• 36:31
  Speaker 4: week so that you can join it, because I feel
• 36:32
  Speaker 4: like we've dropped that off recently. But at the end
• 36:35
  Speaker 4: of the day, George writes an epic Friday rap of
• 36:38
  Speaker 4: what's happened in our community, what's happened on the pods,
• 36:41
  Speaker 4: what is going on with us? And it's always incredibly
• 36:44
  Speaker 4: sassy and satirical, So jump on that.
• 36:47
  Speaker 2: Yeah, that's pretty loose guys. Now let's get back into
• 36:50
  Speaker 2: the show. So be what if we're in debt or
• 36:52
  Speaker 2: don't have an emergency fund, should we be investing?
• 36:55
  Speaker 3: Yeah, really bad idea to be investing in your favor
• 36:58
  Speaker 3: in debt.
• 36:58
  Speaker 4: I'm gonna be really blunt about that and say, if
• 37:01
  Speaker 4: you're in debt, obviously we're not talking about hex debt
• 37:04
  Speaker 4: or your mortgage here.
• 37:05
  Speaker 3: If you are in personal.
• 37:06
  Speaker 4: Debt, have a credit card, have after pay like, your
• 37:10
  Speaker 4: priority is not buying shares, my friend, because you need
• 37:12
  Speaker 4: to pay down your debt first. That is the most
• 37:15
  Speaker 4: important thing. Because the longer that you leave your debt paid,
• 37:19
  Speaker 4: the more interest you're accruing, the more you need to
• 37:21
  Speaker 4: pay off, and the more backwards you're going financially. So
• 37:24
  Speaker 4: I'm just being blunt. Pay off your debt, my friend.
• 37:26
  Speaker 4: If you've got personal debt before you even consider starting
• 37:29
  Speaker 4: to invest, which is question I get all the time,
• 37:32
  Speaker 4: but I want it to become a no brainer for you. Guys,
• 37:35
  Speaker 4: you've got personal debt, you are not investing. Additionally, if
• 37:39
  Speaker 4: you do not have an emergency fund set aside for
• 37:42
  Speaker 4: any things that pop up, I want that to be
• 37:45
  Speaker 4: your priority before you invest as well. Because at the
• 37:48
  Speaker 4: end of the day, if something does pop up and
• 37:51
  Speaker 4: you are forced into selling an investment, that is a
• 37:53
  Speaker 4: terrible thing to happen to you. Obviously, we're really grateful
• 37:57
  Speaker 4: that we can sell that investment, but I don't want
• 37:59
  Speaker 4: you to be full that So work out what your
• 38:02
  Speaker 4: emergency fund needs to be to set aside to make
• 38:05
  Speaker 4: you feel safe and comfortable and cover anything. Then go
• 38:09
  Speaker 4: from there, then you can start investing. So what I
• 38:12
  Speaker 4: want you to do is start building up an emergency fund,
• 38:15
  Speaker 4: even if you have some personal debt, put that to
• 38:18
  Speaker 4: the side so that you can feel financial freedom even
• 38:22
  Speaker 4: though you've got debt.
• 38:23
  Speaker 2: Yeah, great advice. Yeah, that's good already. The diversification is
• 38:28
  Speaker 2: a big part of what we talk about at Cheese
• 38:30
  Speaker 2: on the Money. How do we actually make sure our
• 38:32
  Speaker 2: share folio is diversified.
• 38:35
  Speaker 4: Diversification is a massive part of what we talk about
• 38:37
  Speaker 4: it She's on the Money because it is a tool
• 38:39
  Speaker 4: that we use. So it is a tool because it
• 38:42
  Speaker 4: helps us lower our risk. And rolling our risk when
• 38:46
  Speaker 4: investing is obviously a very good idea because the less
• 38:49
  Speaker 4: risk that we carry, the more consistent we can be
• 38:52
  Speaker 4: in creating wealth for the long term. So if we
• 38:55
  Speaker 4: have a diverse share portfolio with shares from lots of
• 38:58
  Speaker 4: different industries rather than just one company or in one sector.
• 39:02
  Speaker 4: The risk of essentially losing a lot of money in
• 39:04
  Speaker 4: one day because the value of our portfolio would decrease
• 39:08
  Speaker 4: is greatly reduced. And that happens because we're not putting
• 39:11
  Speaker 4: all our eggs in one basket. And I say that
• 39:13
  Speaker 4: all the time, but it's the best way to visualize.
• 39:16
  Speaker 3: It's the most sense.
• 39:17
  Speaker 4: Like if you had a basket and it was full
• 39:18
  Speaker 4: of eggs and you dropped it, all your eggs would break.
• 39:20
  Speaker 4: But if you had lots of baskets with lots of
• 39:22
  Speaker 4: different eggs in it, maybe you got duck eggs, maybe
• 39:24
  Speaker 4: you got you.
• 39:25
  Speaker 3: Know, some chicken eggs, maybe you have pigeon eggs.
• 39:28
  Speaker 2: I don't know they would have eggs.
• 39:30
  Speaker 3: I'm sure they do that because oh my god, did
• 39:32
  Speaker 3: I just say that?
• 39:33
  Speaker 2: You did? You? Did?
• 39:33
  Speaker 3: You keeping it?
• 39:34
  Speaker 4: But you've got lots of different eggs in lots of
• 39:36
  Speaker 4: different baskets and you drop one, Well, it's all good.
• 39:39
  Speaker 4: You've got a whole heap of baskets. Maybe that egg
• 39:42
  Speaker 4: will be fixed soon and there'll be two eggs in there.
• 39:44
  Speaker 3: When you pick it up again.
• 39:46
  Speaker 2: Stunning from you.
• 39:47
  Speaker 3: It's not a good example, but I hope.
• 39:48
  Speaker 2: Yeah, it's a good analogy.
• 39:50
  Speaker 3: It'll do. It's loose.
• 39:51
  Speaker 4: Yeah, I feel like this episode is really starting to dwindle.
• 39:55
  Speaker 2: It's been going for too long now. Ashlyn in our
• 39:58
  Speaker 2: Facebook group asked question about investing while you have a mortgage, which,
• 40:03
  Speaker 2: funnily enough, Victoria deve, I don't know you're doing it
• 40:05
  Speaker 2: at the.
• 40:05
  Speaker 3: Moment, I am.
• 40:06
  Speaker 2: I'm fresh to this, so well, how do you balance it?
• 40:09
  Speaker 2: Is it mortgage first and then it's both?
• 40:11
  Speaker 4: So for me because interest rates are so low at
• 40:15
  Speaker 4: the moment, and I have a number two in front
• 40:17
  Speaker 4: of my mortgage kind of cool, Like what do you mean?
• 40:20
  Speaker 2: As in, I have like an.
• 40:22
  Speaker 4: Interest rate that starts with two, So like I'm paying
• 40:25
  Speaker 4: oh I got eight percent? Yeah, okay, So like I'm
• 40:28
  Speaker 4: paying less than three percent on my mortgage right now,
• 40:31
  Speaker 4: and because I'm anticipating higher returns in my share market,
• 40:35
  Speaker 4: I'm paying down debt, but I'm also prioritizing investment. And
• 40:40
  Speaker 4: the way I've worked that out is just like, okay,
• 40:42
  Speaker 4: making sure that I'm obviously paying off my mortgage in
• 40:45
  Speaker 4: a reasonable period of time, but I'm also putting additional
• 40:48
  Speaker 4: funds into a share portfolio instead of smashing down my mortgage,
• 40:51
  Speaker 4: which a lot of people are planning to do. And
• 40:53
  Speaker 4: the reason I'm doing that is because I did the
• 40:55
  Speaker 4: numbers and worked out that I'll be in in thirty
• 40:58
  Speaker 4: years when my mortgage ins, which this really long time away.
• 41:02
  Speaker 4: When my mortgage ends, I'll be in a better financial
• 41:04
  Speaker 4: position having spent that entire thirty years to pay off
• 41:08
  Speaker 4: my mortgage and invest in shares than had I broken
• 41:13
  Speaker 4: it down and paid it off earlier, because the interest
• 41:15
  Speaker 4: rates are so good at the moment. Now, if the
• 41:18
  Speaker 4: interest rates change, I need to redo the numbers, because
• 41:22
  Speaker 4: the only reason this is going to work for me
• 41:24
  Speaker 4: right now is because my money that I have borrowed
• 41:27
  Speaker 4: in my mortgage is so cheap in comparison to the
• 41:29
  Speaker 4: returns I'll get in the share market, Whereas if you
• 41:33
  Speaker 4: know they were like for like, I would then be
• 41:35
  Speaker 4: making a more conservative decision.
• 41:37
  Speaker 3: But that is personal.
• 41:38
  Speaker 4: That is the way I am doing it, and that
• 41:40
  Speaker 4: is why I'm answering it that way, because I cannot
• 41:42
  Speaker 4: tell you personally what to do, but I would definitely
• 41:46
  Speaker 4: check out what your plan is in the future. So
• 41:49
  Speaker 4: go back to that money smart calculator, which I obviously adore,
• 41:53
  Speaker 4: and put in what you might be putting as additional
• 41:56
  Speaker 4: payments towards your mortgage as an investment, and see that
• 42:00
  Speaker 4: would look like over the life of your loan, do
• 42:02
  Speaker 4: you end up in a better financial position by investing
• 42:05
  Speaker 4: it or do you end up in a better financial
• 42:07
  Speaker 4: position by paying down your mortgage.
• 42:09
  Speaker 3: Only you can make that decision for.
• 42:10
  Speaker 2: You, Love well said OKAYV, we're getting to the tail end.
• 42:15
  Speaker 2: But before we wrap for today, can you please round
• 42:19
  Speaker 2: us out with a word of warning because we've heard
• 42:21
  Speaker 2: all of the marvelous seeing me about investing, But what
• 42:24
  Speaker 2: are the biggest mistakes you see people making.
• 42:26
  Speaker 4: I think one of the biggest mistakes is people being
• 42:28
  Speaker 4: really scared of investing and saying that they'll just start later.
• 42:32
  Speaker 4: But more seriously, people not diversifying their portfolio, buying shares
• 42:36
  Speaker 4: or buying assets that they see as trendy or feel
• 42:40
  Speaker 4: are safe because well.
• 42:40
  Speaker 3: Everybody's doing it.
• 42:42
  Speaker 4: Yes, but everybody is buying bitcoin. Everybody is getting into
• 42:45
  Speaker 4: crypto like it must be okay.
• 42:47
  Speaker 3: Right.
• 42:47
  Speaker 4: That does not mean it is okay. That just means
• 42:49
  Speaker 4: that stax on mentality has happened. And that's how bullying happens,
• 42:53
  Speaker 4: and we don't like that. So at the end of
• 42:55
  Speaker 4: the day, I think it's about making a decision that
• 42:57
  Speaker 4: is in line with your risk profile, that is in
• 42:59
  Speaker 4: line with your values and your goals. I feel like
• 43:01
  Speaker 4: a broken record when I say that, but I'm going
• 43:04
  Speaker 4: to keep saying.
• 43:04
  Speaker 3: It, and I'm not sorry about it.
• 43:06
  Speaker 4: But I also think something that people do wrong, and
• 43:11
  Speaker 4: this really grinds my gears because I feel like I
• 43:15
  Speaker 4: try so hard to tell you that investment is a
• 43:18
  Speaker 4: long term game. Is they expect too much too soon,
• 43:21
  Speaker 4: and they pull out their money because they're like, well,
• 43:23
  Speaker 4: I started investing in my micro investing platform in June
• 43:27
  Speaker 4: last year and then it went down, so I pulled
• 43:29
  Speaker 4: it out in September. And I'm like, well, of course
• 43:32
  Speaker 4: it did, because you're just feeling the market fluctuations and
• 43:34
  Speaker 4: you haven't ridden it out for the minimum five years
• 43:37
  Speaker 4: that I'm telling you to invest for, so therefore you've
• 43:40
  Speaker 4: never seen the benefits. Whereas on the opposite, some people
• 43:43
  Speaker 4: can start investing and just by chance, they started investing
• 43:46
  Speaker 4: at a really good time in the share market, and
• 43:49
  Speaker 4: they saw really great returns really quickly, and then they
• 43:52
  Speaker 4: come to expect those returns so over the life of
• 43:54
  Speaker 4: their investment, when that's just not true either. So I
• 43:58
  Speaker 4: think you really need to understand them market before investing,
• 44:01
  Speaker 4: because you'll see it and go, hold on, I put
• 44:04
  Speaker 4: fifty dollars in there, and now it's worth thirty one.
• 44:07
  Speaker 3: Why is it gone? And you go, well, that's because
• 44:09
  Speaker 3: you don't understand what's going on. That's not the end
• 44:11
  Speaker 3: of the day.
• 44:12
  Speaker 4: You are only ever losing money in the share market
• 44:14
  Speaker 4: if you sell your shares at a lesser value. What
• 44:17
  Speaker 4: is written on paper, what is showing up in your
• 44:19
  Speaker 4: app is the valuation.
• 44:21
  Speaker 3: Not what you own. You do not own less.
• 44:24
  Speaker 4: Shares because they're valued it less. You still own the
• 44:27
  Speaker 4: same amount of shares. They're just valued at less today,
• 44:29
  Speaker 4: and hopefully, because you've picked well have really good diversification,
• 44:33
  Speaker 4: over time there will be worth more and they will
• 44:35
  Speaker 4: increase in value.
• 44:37
  Speaker 2: My goodness, Well, there has been so much to take
• 44:40
  Speaker 2: in from today's episode. It might be worth listening to
• 44:42
  Speaker 2: it a couple of times if you can handle listening
• 44:45
  Speaker 2: to V ANDNG.
• 44:46
  Speaker 3: Sorry sorry, but in a nuts jobs don't get funnier,
• 44:51
  Speaker 3: nor do mine.
• 44:52
  Speaker 2: In a nutshell. Investing in shares yields a pretty solid return.
• 44:56
  Speaker 2: About five percent is what we're saying is a safe assumption.
• 44:59
  Speaker 3: But you know, let's base our lives off that, because.
• 45:01
  Speaker 4: Again we won't find ourselves disappointed exactly right.
• 45:05
  Speaker 2: We also need to be establishing our risk profiles before
• 45:08
  Speaker 2: we get started and figuring out those goals, and of
• 45:11
  Speaker 2: course diversification is king. And also the time to start
• 45:14
  Speaker 2: is pretty much today. If you are if you're ready.
• 45:17
  Speaker 4: And if you're ready, and if we look at the statistics,
• 45:20
  Speaker 4: because stats girl across the table from me, she loves this.
• 45:24
  Speaker 4: No one has ever lost in the share market when
• 45:27
  Speaker 4: they have invested for thirty years or more, not one person, nobody.
• 45:31
  Speaker 4: Look at the stats you've like, if you are able
• 45:34
  Speaker 4: to commit to the long term, historically, no one has
• 45:37
  Speaker 4: ever lost. And I think that's really important to take
• 45:40
  Speaker 4: away from us episode.
• 45:41
  Speaker 2: That's a great start to our end today's show. V.
• 45:44
  Speaker 3: Before we head off, we'd like to acknowledge and pay
• 45:46
  Speaker 3: respects to Australia's Aboriginal and torrest Right islander people's the
• 45:50
  Speaker 3: traditional custodians of the lands, the waterways and the skies
• 45:53
  Speaker 3: all across Australia. We thank you for.
• 45:55
  Speaker 4: Sharing and for caring on the land which we are
• 45:57
  Speaker 4: able to learn. We pay our respects to elders past
• 46:00
  Speaker 4: and present, and we share our friendship and our kindness.
• 46:03
  Speaker 2: And please remember everyone that the advice shared on she
• 46:06
  Speaker 2: is on the Money is general in nature and does
• 46:08
  Speaker 2: not consider your individual circumstances. She is on the Money
• 46:12
  Speaker 2: exists purely for educational purposes and should not be relied
• 46:15
  Speaker 2: upon to make an investment or a financial decision.
• 46:19
  Speaker 3: Did you note that we don't say entertainment purposes? Yeah,
• 46:22
  Speaker 3: it was actually going to throw that in there.
• 46:25
  Speaker 2: We need to read this funny funny out you. How
• 46:28
  Speaker 2: have you on with?
• 46:29
  Speaker 3: Just let people know I'm legit.
• 46:30
  Speaker 2: She's legit, and that is what I'm about to tell
• 46:33
  Speaker 2: you now, we promise. Victoria Divine is an authorized representative
• 46:37
  Speaker 2: of Australia Pacific Funds Management pro prior to Limited ABN
• 46:40
  Speaker 2: three four one three two four six three two five
• 46:42
  Speaker 2: seven AFSL three three nine one five one. And a
• 46:45
  Speaker 2: big thank you to Ryan and Beck the producer magicians,
• 46:49
  Speaker 2: for putting it all together, and a big thank you
• 46:52
  Speaker 2: to Jessica Habuci for just keeping our lives together.
• 46:55
  Speaker 4: I guess are you sick of saying the numbers? Do
• 46:58
  Speaker 4: people actually even Lisa this far.
• 47:00
  Speaker 3: Into our pod?
• 47:01
  Speaker 2: Do you? Okay, if you do, let us know.
• 47:02
  Speaker 3: If you do, let us know.
• 47:03
  Speaker 4: But if you do, and you think you could do
• 47:05
  Speaker 4: a better job of wrapping the show than Georgia King,
• 47:09
  Speaker 4: I'm going to drop the exact script in our show
• 47:11
  Speaker 4: bio so our listeners can read the numbers and do
• 47:14
  Speaker 4: a sassier job than we do. And we're just going
• 47:16
  Speaker 4: to add that to the pod each week.
• 47:17
  Speaker 3: See you next week, guys, See you guys,