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A rookie's guide to investing: part one · She's On The Money

• 0:00
  Speaker 1: She's on the Money.
• 0:02
  Speaker 2: She's on the Money.
• 0:22
  Speaker 1: Hello, and welcome to She's on the Money, the podcast
• 0:24
  Speaker 1: for millennials who want to financial freedom. I'm one of
• 0:27
  Speaker 1: your co hosts, Anna Burley. I'm a law student and
• 0:29
  Speaker 1: a millennial on a desperate quest for better financial literacy.
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  Speaker 1: So in order to get that tiny bit smarter with money,
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  Speaker 1: each week, I enlist the help of my friend and
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  Speaker 1: the very best money expert I know, Victoria Divine. Welcome Victoria,
• 0:41
  Speaker 1: Hi Yah, Victoria. Let's do our favorite new thing to do,
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  Speaker 1: which is giving a few Facebook group members shout outs
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  Speaker 1: because they've been sharing their money wins. Do you want
• 0:50
  Speaker 1: to share yours first?
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  Speaker 3: I do?
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  Speaker 2: All right?
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  Speaker 4: So my first one is from Lizzie, and she said
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  Speaker 4: in the Facebook group this week that she paid off
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  Speaker 4: her credit card and put a plan in place to
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  Speaker 4: develop her any day fun to two thousand dollars before
• 1:02
  Speaker 4: November and start saving for a trip that she wants
• 1:04
  Speaker 4: to go on next year. And she's feeling super empowered.
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  Speaker 4: And that made me feel so good when I read it.
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  Speaker 1: Yay, Lizzie. Mine is from Steph, who said this one's
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  Speaker 1: very up my alley.
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  Speaker 3: It definitely is.
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  Speaker 1: She said, I usually fill up with petrol at the
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  Speaker 1: server on my street because it's convenient check a fuel
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  Speaker 1: price out for the first time today, drove ten minutes
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  Speaker 1: away and filled up for ten cents A leader less. Yes,
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  Speaker 1: dread to think how much I've wasted over the years,
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  Speaker 1: but feeling encouraged to do the work to find ways
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  Speaker 1: to save. I want to know what app she's using.
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  Speaker 3: I don't know what app it is, Steph.
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  Speaker 4: If you could post in the Facebook group what app
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  Speaker 4: you were using, that would I guess help everybody?
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  Speaker 1: Thank you so much, step Now on the agenda today, yep,
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  Speaker 1: we're talking investing finally. It seems to be the one
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  Speaker 1: money topic so many of us don't know how to
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  Speaker 1: get a handle on. We don't know where to start,
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  Speaker 1: we don't know how it works, and we don't know
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  Speaker 1: how to use it to our advantage. So welcome to
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  Speaker 1: Investing one oh one Part one. Yes, ladies, this will
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  Speaker 1: be a two part episode, so we all get smarter.
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  Speaker 1: I need to get smarter. But before we do any
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  Speaker 1: of that, Victoria, you know what we have to do.
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  Speaker 1: Give me a money win or a money confession from
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  Speaker 1: the week.
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  Speaker 4: Please, all right, so I have another money win for
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  Speaker 4: this week. And this week is something that I'm actually
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  Speaker 4: a little bit proud of myself for because it's not
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  Speaker 4: something I've done before. So this week I ordered a
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  Speaker 4: dress on The Iconic, and when I got it home
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  Speaker 4: and tried it on, I realized that I didn't love it.
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  Speaker 4: And previously I probably would have just popped it in
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  Speaker 4: my wardrobe for a rainy day and said I'll make
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  Speaker 4: it work at some point and it no, it never works,
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  Speaker 4: and you leave it there and then it's got tags
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  Speaker 4: on it still, and then it gets twelve months down
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  Speaker 4: the track and your friend's going through your wardrobe is like, oh,
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  Speaker 4: look at this dress, and you're like, oh, that's awkward.
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  Speaker 4: I completely forgot about that. But I actually packaged it
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  Speaker 4: up and sent it back to The.
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  Speaker 1: Iconic because on new I wouldn't wear it, and you
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  Speaker 1: got a refund.
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  Speaker 3: I did.
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  Speaker 4: I did, And now I am one hundred dollars richer
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  Speaker 4: and I don't have a dress that I'm not gonna wear.
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  Speaker 1: That's what I love about The Iconic. Though it's free returns.
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  Speaker 3: Right, Yes, it was amazing.
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  Speaker 4: It was really easy, and it used the package that
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  Speaker 4: the dress came in originally, so I feel like I
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  Speaker 4: did good say environment, good for the environment, good for
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  Speaker 4: my bank account.
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  Speaker 3: Everybody wins.
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  Speaker 1: I have had not a great week with money.
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  Speaker 3: Is it related to fuel?
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  Speaker 1: Probably? Like knowing me, I have a lot of fuel
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  Speaker 1: issues of working on it. But I've been spending a
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  Speaker 1: lot on food and like going out for drinks and whatever.
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  Speaker 1: But I've actually, I'm actually gonna tell you a money win,
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  Speaker 1: which you know about because you just gifted me a
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  Speaker 1: shameless merch jumper. I did, and it came with a
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  Speaker 1: free cookie.
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  Speaker 3: Okay, the cookie is probably the best part.
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  Speaker 1: I was gonna buy one for myself. Actually, I actually
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  Speaker 1: already have a shameless T shirt, so you know that
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  Speaker 1: I love shameless merch. I want to be part of
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  Speaker 1: the gang. So I was gonna buy one. Victoria bought
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  Speaker 1: one for me instead. Money win, Ultimate money win. Now
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  Speaker 1: let's jump straight into investment talk. Six point four to
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  Speaker 1: eight million Australians currently own investments listed on the share market.
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  Speaker 1: Only thirty one percent of Australian women currently invest in shares,
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  Speaker 1: compared to a sizeable forty four percent of Australian men. Victoria,
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  Speaker 1: why is it that men are beating women in the
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  Speaker 1: investing game?
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  Speaker 4: So I don't love this conversation around women being beaten
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  Speaker 4: by men in the investing game.
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  Speaker 3: I think it is what it is.
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  Speaker 4: I think one of the most important things I want
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  Speaker 4: to draw your attention to here, though, is whilst more
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  Speaker 4: men invest than women, women are actually outperforming men when
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  Speaker 4: it comes to investment returns. So we are technically better
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  Speaker 4: investors than now. Yeah, which means more of us should
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  Speaker 4: get involved.
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  Speaker 1: Exactly, that's true. But why do you think women aren't
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  Speaker 1: investing in the first place?
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  Speaker 4: For exactly the same reason they are getting better returns
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  Speaker 4: than men, And that's because we are typically more conservative
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  Speaker 4: than men are. So men are often willing to go
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  Speaker 4: into a risk your investment or take a chance on
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  Speaker 4: something than women are. We often feel like we need
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  Speaker 4: to be across the entire situation before even dipping our
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  Speaker 4: toes in. So you know that really well known analogy
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  Speaker 4: that says that if a woman doesn't feel like they
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  Speaker 4: fit every single piece of criteria in a job description,
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  Speaker 4: she doesn't apply for the jobs.
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  Speaker 1: Oh, I've definitely been there.
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  Speaker 3: Yeah exactly.
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  Speaker 4: But then men feel like if they meet only I
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  Speaker 4: think it's eighty percent.
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  Speaker 3: Don't quote me.
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  Speaker 4: I'm not sure if I'm right on this, but if
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  Speaker 4: they feel like they meet eighty percent, they will apply
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  Speaker 4: for the role. So I think that women feel as
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  Speaker 4: though they need to be a one hundred percent across
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  Speaker 4: what they're going to jump into, whereas men are willing
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  Speaker 4: to take a bit more of a chance.
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  Speaker 1: Which in this case, is it a better thing to
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  Speaker 1: be more tentative? Do you think?
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  Speaker 4: I think in the beginning, it's always intelligent to make
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  Speaker 4: sure that you know where you're going and what foot
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  Speaker 4: you're going to put in front of the other and
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  Speaker 4: what that looks like. But at the same time, that's
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  Speaker 4: why you're here, right, That's why you're listening to the
• 5:25
  Speaker 4: Sheese on the Money podcast. You want to get better
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  Speaker 4: at these things, and you're going to by the end
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  Speaker 4: of the episode.
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  Speaker 2: Yeah.
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  Speaker 1: So on that note, though, how exactly do you create wealth?
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  Speaker 4: So let's be really really simple here. The mechanics of
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  Speaker 4: wealth creation are incredibly simple. You have to spend less
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  Speaker 4: than you earn and invest consistently over the long term.
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  Speaker 3: That's what creates wealth.
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  Speaker 4: So there are heaps of other little intricacies to this,
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  Speaker 4: but those are the two main things. If you can
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  Speaker 4: create a lifestyle for yourself where you are spending less
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  Speaker 4: than you are earning, and you're able to consistently invest
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  Speaker 4: in something on a monthly or weekly basis, then you
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  Speaker 4: are going to be able to over the long term,
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  Speaker 4: create wealth.
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  Speaker 1: So it's something you have to like incorporate into your lifestyle.
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  Speaker 4: I guess absolutely, And I think the investment industry and
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  Speaker 4: the finance industry as a whole likes to make this
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  Speaker 4: seem a whole heap more complicated than it actually is.
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  Speaker 1: Let's start with the most basic of the basics. Then,
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  Speaker 1: what exactly is an investment?
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  Speaker 3: Fun question?
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  Speaker 4: An investment is something which you purchase with money, which
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  Speaker 4: you expect to produce an income or a profit for you.
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  Speaker 4: So ideally you'll have both income and growth in an investment,
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  Speaker 4: because that's my favorite type of investment.
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  Speaker 3: It's one where it.
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  Speaker 4: Grows in value, but it also gives you cash along
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  Speaker 4: the way.
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  Speaker 1: Okay, gotcha. So what on earth is a share then?
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  Speaker 1: And why might I want to buy some? Because I
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  Speaker 1: feel like I should be buying some right now because
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  Speaker 1: I have savings and I'm not doing anything with those them.
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  Speaker 4: Let's talk so first part of that question. A share
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  Speaker 4: is simply a teeny tiny part of a company. So
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  Speaker 4: a company goes to market puts themselves on the stock exchange,
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  Speaker 4: and as.
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  Speaker 3: A shareholder, you're able to purchase a.
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  Speaker 4: Very small amount of that company. So you know, think
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  Speaker 4: of a pie. It's divided up into a million slices,
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  Speaker 4: and you get a tiny piece of that pie. That
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  Speaker 4: entitles you to the income that that business produces, and
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  Speaker 4: it also entitles you to the growth that business achieves.
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  Speaker 4: So you might buy a share for a dollar right now,
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  Speaker 4: and then the company performs well, so the share increases
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  Speaker 4: in price and it's worth you know.
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  Speaker 3: Maybe a dollar fifty if you're lucky.
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  Speaker 4: And then because in that year that company did really well,
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  Speaker 4: they divide some of the profit to you, so you
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  Speaker 4: might get twenty or thirty cents back for owning that share,
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  Speaker 4: So you get income and grow.
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  Speaker 1: It's like a thirty cent ConA mac. Is it's good
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  Speaker 1: enough for me?
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  Speaker 3: I wish they were still thirty cents. I think that,
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  Speaker 3: oh yeah, what a drain up that bad, bad investment.
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  Speaker 1: So would you how much would you recommend I put
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  Speaker 1: into a share?
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  Speaker 5: Then?
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  Speaker 1: Is it true that the bare minimum to get my
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  Speaker 1: foot in the door is five hundred dollars?
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  Speaker 4: I think a lot of people throw this number around,
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  Speaker 4: but they're not entirely sure of why five hundred dollars
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  Speaker 4: would be the minimum. So it's not because shares cost
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  Speaker 4: five hundred dollars. That is absolutely not the case at all.
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  Speaker 4: It's actually because of the brokerage on the share. So
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  Speaker 4: brokerage is you have to pay a transaction cost to
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  Speaker 4: get your money into purchasing a share, and that is
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  Speaker 4: actually quite pricey, so on larger sums of money it
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  Speaker 4: becomes far less.
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  Speaker 3: So hypothetically you could buy.
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  Speaker 4: One one dollar share if you really wanted to, But
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  Speaker 4: the reason you don't is because there's actually a minimum
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  Speaker 4: brokerage amount which then forms what we call the cost
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  Speaker 4: base for your asset. So that one dollar share you purchased,
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  Speaker 4: you would then pay maybe twelve dollars brokerage on it,
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  Speaker 4: so that share actually cost you thirteen dollars. And the
• 8:32
  Speaker 4: problem is that now you have an asset that's worth
• 8:35
  Speaker 4: one dollar, and to break even, your share actually has
• 8:38
  Speaker 4: to perform to be more than thirteen dollars in terms
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  Speaker 4: of return. So that's to me very unrealistic expectations for
• 8:46
  Speaker 4: share performance and for investment performance.
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  Speaker 3: So that is why I wouldn't.
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  Speaker 4: Recommend buying shares at a lower level or buying shares
• 8:54
  Speaker 4: for small sums of money, I'd be looking at, you know,
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  Speaker 4: bulk buying shares.
• 8:59
  Speaker 1: So for me then it doesn't feel like it's worth
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  Speaker 1: buying a share. Is that true? Do you reckon?
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  Speaker 3: Do you know what?
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  Speaker 4: If you're going to buy one share, it's absolutely not
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  Speaker 4: worth it if you're paying twelve dollars brokerage and then
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  Speaker 4: you're buying a share that.
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  Speaker 3: Is worth one dollar.
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  Speaker 4: If you're buying a thousand dollars worth of shares, twelve
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  Speaker 4: dollars on one thousand dollars worth of shares actually seems
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  Speaker 4: quite reasonable. So when I'm talking to clients and when
• 9:18
  Speaker 4: I'm talking to people about getting into the share market,
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  Speaker 4: I think it's really important to bundle money together. So
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  Speaker 4: maybe have a savings account off to the side that
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  Speaker 4: you know that when it gets to one thousand dollars,
• 9:29
  Speaker 4: that's when you purchase a whole Hebrew shares and going
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  Speaker 4: to the share market instead of buying you know, twenty
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  Speaker 4: dollars worth of shares here and there, because that all
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  Speaker 4: adds up and your brokerage actually becomes the reason why
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  Speaker 4: your investment might not perform as well as it could.
• 9:44
  Speaker 1: So this could be a dumb question, sorry in advance,
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  Speaker 1: Where do I go to invest like by do it
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  Speaker 1: on the internet or is there a website that I
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  Speaker 1: go to?
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  Speaker 3: So absolutely not a dumb question at all.
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  Speaker 4: It is probably one of the most common questions that
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  Speaker 4: gets asked about per chasing shares or starting your investment journey.
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  Speaker 4: So there are a whole heap of ways you can
• 10:04
  Speaker 4: buy a share or shares in general, as we just
• 10:08
  Speaker 4: worked out, we need to be buying them bulk lots.
• 10:11
  Speaker 4: The first is self directed, so there are platforms like Comsex,
• 10:14
  Speaker 4: self Wealth and ig markets that you're able to buy
• 10:17
  Speaker 4: your own shares on. But I think if you're going
• 10:19
  Speaker 4: to be purchasing shares on your own and going out
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  Speaker 4: making all those decisions, you really need.
• 10:24
  Speaker 3: To know exactly what you're doing.
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  Speaker 4: So not only do I want you to be understanding
• 10:28
  Speaker 4: exactly what you're buying, but you need to understand one
• 10:31
  Speaker 4: how to create a well diversified portfolio, but also understand
• 10:35
  Speaker 4: the company that you're purchasing financials and their management record,
• 10:39
  Speaker 4: and understand what their board is and how their executive
• 10:42
  Speaker 4: team works, and you know what the culture of that
• 10:44
  Speaker 4: business looks like, and that if you actually distill it
• 10:48
  Speaker 4: down is a lot to take on as an individual,
• 10:50
  Speaker 4: especially if you're saying, well, I've got my first two
• 10:52
  Speaker 4: thousand dollars, what do I do with that? Making a
• 10:55
  Speaker 4: decision on which share you purchase is actually a lot
• 10:58
  Speaker 4: more complex than you might think.
• 10:59
  Speaker 2: It is.
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  Speaker 4: The second place you could go if you're not going
• 11:02
  Speaker 4: to purchase shares on your own is a financial advisor.
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  Speaker 4: I think there's a massive misconception in the market that
• 11:08
  Speaker 4: a financial advisor is for someone who's either really rich
• 11:11
  Speaker 4: or about to retire, and that couldn't be further from
• 11:14
  Speaker 4: the truth. You don't go to the gym once you're
• 11:16
  Speaker 4: already fit, So why would you see a financial advisor
• 11:20
  Speaker 4: once you're already rich. So a financial advisor is going
• 11:23
  Speaker 4: to partner with you to create wealth and hold your
• 11:25
  Speaker 4: hand during that journey and help you put together an
• 11:29
  Speaker 4: investment portfolio and show you where to start on what
• 11:31
  Speaker 4: you can do and how to do it in the
• 11:33
  Speaker 4: most efficient way.
• 11:34
  Speaker 1: So in what part of the process should I get
• 11:37
  Speaker 1: a stockbroker? What even is a stockbroker?
• 11:40
  Speaker 4: So a stockbroker is just someone who buys and sells
• 11:42
  Speaker 4: shares on behalf of a client. So that is like,
• 11:45
  Speaker 4: as I mentioned, before places like com sick. They're a stockbroker.
• 11:49
  Speaker 4: They broke a stocks, but they don't help you select
• 11:51
  Speaker 4: the stocks that are right for you. They just buy
• 11:54
  Speaker 4: the stocks that you instruct them to buy for you.
• 11:56
  Speaker 1: You know, like the movies like Wolf of Wall Street.
• 11:58
  Speaker 1: Is it the guy, Well, typically it's the guy who's
• 12:02
  Speaker 1: in that big room with all the TVs and oh
• 12:05
  Speaker 1: that's me.
• 12:05
  Speaker 3: No, no, no, absolutely not. Yeah. So they're stockbrokers.
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  Speaker 4: They're the kinds of people that are gonna sell shares
• 12:11
  Speaker 4: to anyone who will take them, and anyone they can
• 12:13
  Speaker 4: convince to purchase the shares that they are are offering.
• 12:17
  Speaker 1: Okay, when should I invest them?
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  Speaker 3: Yesterday?
• 12:20
  Speaker 1: Oh no.
• 12:22
  Speaker 4: They always say, if you are going to plant a tree,
• 12:24
  Speaker 4: the best time to plant a tree is fifty years ago,
• 12:26
  Speaker 4: and the second best time is today. So investing over
• 12:30
  Speaker 4: the long term is not going to be gratifying immediately.
• 12:33
  Speaker 4: It's going to take ten, twenty thirty years before you
• 12:36
  Speaker 4: even see that compounding effect take place.
• 12:39
  Speaker 1: I'm so impatient.
• 12:41
  Speaker 4: I am too, and I think that most people listening
• 12:43
  Speaker 4: to this podcast are as well, because that's just the
• 12:46
  Speaker 4: nature of our generation.
• 12:47
  Speaker 3: We are quite impatient.
• 12:48
  Speaker 4: We aren't in a position where we are willing to
• 12:51
  Speaker 4: wait long term for things in a world where we
• 12:53
  Speaker 4: can click and have, you know, an iconic delivery at
• 12:56
  Speaker 4: our doorstep on the same day that I ordered it.
• 12:59
  Speaker 4: It seems a bit ridiculous to be waiting ten, twenty
• 13:02
  Speaker 4: thirty years for something, But it is so incredibly important
• 13:05
  Speaker 4: to work out what your long term goals are and
• 13:07
  Speaker 4: if you're going to start this investment journey, start it
• 13:10
  Speaker 4: for the long term. So money on average doubles every
• 13:14
  Speaker 4: ten years. So if we look at the Australian share
• 13:17
  Speaker 4: market that has an average rate of return of seven
• 13:20
  Speaker 4: point five percent over the last thirty years, and if
• 13:23
  Speaker 4: we look at that, that means that your money will
• 13:25
  Speaker 4: double in seven to ten years. And I think that
• 13:28
  Speaker 4: that's really important to take into consideration because I'm not
• 13:32
  Speaker 4: ever recommending anybody to go into an investment if they
• 13:35
  Speaker 4: are not willing to wait it out for the long term, but.
• 13:38
  Speaker 1: It seems like it'd be worth it.
• 13:39
  Speaker 4: Doubling is huge, absolutely, and that's the effect of compounding interest.
• 13:43
  Speaker 1: So if I still have a mortgage then or a
• 13:45
  Speaker 1: debt to my name, should I be paying that off
• 13:47
  Speaker 1: first before I look into investments.
• 13:49
  Speaker 3: So there's no actual black and white answer to this.
• 13:51
  Speaker 3: It could be a yes, it could be a no.
• 13:53
  Speaker 4: It really depends upon your personal situation and the interest
• 13:57
  Speaker 4: rate you have on.
• 13:58
  Speaker 3: The debts that you have.
• 14:00
  Speaker 4: You've got personal debt or credit card debt, and your
• 14:03
  Speaker 4: interest rate on that is fifteen percent.
• 14:05
  Speaker 3: You essentially have an investment.
• 14:07
  Speaker 4: That's making you negative fifteen percent and you need to
• 14:10
  Speaker 4: get rid of that as soon as possible. Where As
• 14:13
  Speaker 4: if you have a mortgage and you're paying three point
• 14:16
  Speaker 4: five percent, but then the Australian share market is returning
• 14:19
  Speaker 4: seven point five percent over the long term and you
• 14:22
  Speaker 4: still have another thirty years left on your three point
• 14:24
  Speaker 4: five percent mortgage, I know where I'd be putting my
• 14:28
  Speaker 4: money right.
• 14:29
  Speaker 1: So how the hell do I know what to invest in?
• 14:31
  Speaker 2: Then?
• 14:32
  Speaker 1: Like, how do I research what my options are?
• 14:35
  Speaker 4: So again, you could have a chat to a financial advisor.
• 14:38
  Speaker 4: They're going to know what works for you. A very
• 14:40
  Speaker 4: big part of investment is understanding the risk profile, and
• 14:44
  Speaker 4: whilst that's not a very exciting thing to talk about,
• 14:47
  Speaker 4: it educates you on what level of risk you're willing
• 14:50
  Speaker 4: to take on. So with any type of investment, there
• 14:53
  Speaker 4: is always risk versus return, and the more risk you
• 14:57
  Speaker 4: take on, the more return you are likely to have.
• 14:59
  Speaker 4: But in this vain you're also taking on more risk
• 15:02
  Speaker 4: so potentially losing more. Yeah, you're essentially putting yourself in
• 15:07
  Speaker 4: a position where you could lose more money, but the
• 15:09
  Speaker 4: return on that money, if it.
• 15:10
  Speaker 3: Is successful, is going to be greater.
• 15:13
  Speaker 4: So you need to understand that before you even talk
• 15:16
  Speaker 4: about the types of shares you're investing in or what.
• 15:18
  Speaker 3: Works for you. And that's such a personal thing.
• 15:20
  Speaker 1: Yeah, so you can't just like dive into it and
• 15:22
  Speaker 1: be like, oh, I'm going.
• 15:23
  Speaker 4: To invest No, And my job would be so much
• 15:25
  Speaker 4: easier if I could just say on this podcast, hey,
• 15:27
  Speaker 4: here's ten stocks everybody should purchase and it's going to
• 15:30
  Speaker 4: make you wealthy and this will work really well. Because
• 15:33
  Speaker 4: unfortunately that's not the case and it's not how it works.
• 15:35
  Speaker 4: And you know, even if I created a portfolio today
• 15:38
  Speaker 4: of what I believe are the ten best stocks for
• 15:41
  Speaker 4: a particular risk profile tomorrow, that could be a different
• 15:44
  Speaker 4: set of companies based on the way the share market performs.
• 15:48
  Speaker 1: There have been a bunch of conversations in our Facebook
• 15:50
  Speaker 1: group from women who don't want to buy a home.
• 15:52
  Speaker 1: Why is investing a great other option to create wealth.
• 15:56
  Speaker 4: So I think there are a lot of people who
• 15:58
  Speaker 4: are going to argue with me on this point, but
• 16:01
  Speaker 4: I don't personally believe that a family home is an investment.
• 16:05
  Speaker 1: It is, oh.
• 16:08
  Speaker 4: So it is the one asset that you will spend
• 16:12
  Speaker 4: the most money on. So if you purchase a home
• 16:14
  Speaker 4: and you live in that home, that home becomes an
• 16:18
  Speaker 4: asset where you're funneling money. So you might want a
• 16:21
  Speaker 4: new kitchen or a new bathroom, or the hot order
• 16:24
  Speaker 4: system might break and you need to replace it. All
• 16:27
  Speaker 4: of those things don't add value to your home in
• 16:29
  Speaker 4: the grand scheme of things. I mean, there are situations
• 16:33
  Speaker 4: where people purchase property and they flip it and they
• 16:35
  Speaker 4: put in a beautiful new kitchen and it increases its
• 16:38
  Speaker 4: value by x amount. So I'm not talking about that.
• 16:41
  Speaker 4: I'm talking about a family home that you move into
• 16:43
  Speaker 4: for the long term. It's also something where if you've
• 16:46
  Speaker 4: got owner occupy a debt on that property, it's not deductible,
• 16:51
  Speaker 4: whereas sometimes if you have debt on an investment or
• 16:55
  Speaker 4: an investment property, that debt could be deductible. A debt,
• 17:01
  Speaker 4: so it means debt on the home that you live in.
• 17:04
  Speaker 4: So it is you purchase a home, you move into
• 17:06
  Speaker 4: that home, and for living in that home, you have
• 17:08
  Speaker 4: an interest.
• 17:09
  Speaker 3: Rate to pay.
• 17:10
  Speaker 4: That is the debt that you're paying the bank to
• 17:13
  Speaker 4: live in that house and paid off.
• 17:15
  Speaker 1: So I currently have all my money in a high
• 17:17
  Speaker 1: interest bank account because I feel like it's safer. Why
• 17:20
  Speaker 1: should I invest though? Should I keep that money in
• 17:22
  Speaker 1: that bank account or should I invest in shares?
• 17:25
  Speaker 3: Again contentious point.
• 17:27
  Speaker 4: There's a lot of conversation going on in our Facebook
• 17:29
  Speaker 4: group around what the best bank account is and what
• 17:32
  Speaker 4: gets you the highest rate of return, And there's a
• 17:34
  Speaker 4: lot of people up in arms because recently interest rates
• 17:37
  Speaker 4: have been cut and places that used to be the
• 17:39
  Speaker 4: favorites of people in the group, like I ANDNG, have
• 17:42
  Speaker 4: dropped their interest rates pretty significantly in comparison to what
• 17:45
  Speaker 4: they used to have. And it all makes sense, and
• 17:49
  Speaker 4: it is great to be seeking out something that has
• 17:52
  Speaker 4: a real interest rate return really important. But if we
• 17:55
  Speaker 4: think about it properly, a real rate of return on
• 17:59
  Speaker 4: a quote un quote high interest bank account is actually
• 18:02
  Speaker 4: zero point seven percent. So do you want your money
• 18:06
  Speaker 4: only making you zero point seven percent?
• 18:09
  Speaker 1: No?
• 18:10
  Speaker 4: No, So regardless of what the interest rate is and
• 18:13
  Speaker 4: it's much better than nothing. So that's the real rate
• 18:16
  Speaker 4: of return. So that's not you know, the two percent
• 18:18
  Speaker 4: or whatever they're advertising at that point in time in
• 18:21
  Speaker 4: terms of return. Because this year inflation is one point
• 18:24
  Speaker 4: eight percent. So if you then look at the real
• 18:26
  Speaker 4: rate zero point seven percent, is that going to create
• 18:30
  Speaker 4: wealth for you long term?
• 18:31
  Speaker 1: Yes?
• 18:32
  Speaker 4: No, maybe. I think it's something you need to have
• 18:34
  Speaker 4: a really good think about.
• 18:35
  Speaker 1: I'm quite risk averse. I think that's why I have
• 18:37
  Speaker 1: an invested in shares. What's the risk involved in investing
• 18:40
  Speaker 1: in shares? What if I lose money?
• 18:42
  Speaker 4: That's a part of investment. So there is always going
• 18:44
  Speaker 4: to be a risk that something will happen. That is
• 18:46
  Speaker 4: the nature of investment. Even just the term investment means
• 18:49
  Speaker 4: putting your money in a place that could potentially win something,
• 18:52
  Speaker 4: but it could also lose something. I think that if
• 18:55
  Speaker 4: you're going to start looking at investments, though, you need
• 18:58
  Speaker 4: to start looking at it over the law long term
• 19:00
  Speaker 4: and not really get caught up in the volatility of
• 19:03
  Speaker 4: the market. So volatility is how much the market moves
• 19:06
  Speaker 4: up and down, and you know, we hear of horror
• 19:08
  Speaker 4: stories like the GFC and how the entire market crashed
• 19:12
  Speaker 4: and lots of people lost a lot of money. But
• 19:15
  Speaker 4: those people who were invested very smartly didn't actually lose
• 19:18
  Speaker 4: a lot of money because they rode that wave. They
• 19:21
  Speaker 4: let their stocks crash down to not be worth a lot,
• 19:24
  Speaker 4: and over the period of time between two thousand and
• 19:27
  Speaker 4: nine when the crash happened to now, they've actually made
• 19:30
  Speaker 4: money if they stayed invested. What happens often is people
• 19:34
  Speaker 4: freak out. So if you look at your investment account
• 19:37
  Speaker 4: and you had one thousand dollars in there, and then
• 19:40
  Speaker 4: you looked at it and it was only worth one
• 19:42
  Speaker 4: hundred dollars, you are very likely to want to pull
• 19:44
  Speaker 4: that one hundred dollars out to quote save what you've
• 19:47
  Speaker 4: got left, when in actual fact, that is the point
• 19:50
  Speaker 4: where you're going to make the biggest loss and you
• 19:52
  Speaker 4: need to ride it out so that your money can
• 19:54
  Speaker 4: recover and.
• 19:55
  Speaker 3: You end up with a game.
• 19:57
  Speaker 4: If we look at the Australian share market since call
• 20:00
  Speaker 4: it nineteen eighty five, the average rate of return including
• 20:04
  Speaker 4: the GFC is about ten percent, So if we invest
• 20:07
  Speaker 4: over the long term, we're not really losing.
• 20:10
  Speaker 1: Okay, Why is it important for young women to understand
• 20:12
  Speaker 1: about investing now.
• 20:14
  Speaker 4: Because the sooner you start, the more time you have
• 20:17
  Speaker 4: for compounding to take effect, and the more time you
• 20:20
  Speaker 4: have to compound wealth. So if you start investing money
• 20:24
  Speaker 4: when you're in your early twenties and you're investing in
• 20:26
  Speaker 4: a figure like five hundred dollars a month, and I
• 20:28
  Speaker 4: know that that could be really unreasonable for some people,
• 20:31
  Speaker 4: but this example is just an example. If you're investing
• 20:34
  Speaker 4: five hundred dollars a month from the age of twenty
• 20:36
  Speaker 4: one until sixty five, you'll have an investment portfolio worth
• 20:40
  Speaker 4: about one point three or one point four million months,
• 20:44
  Speaker 4: which is a lot of money. It's a lot of money,
• 20:47
  Speaker 4: and that compounds over time. And if you're investing from
• 20:49
  Speaker 4: that period of time, you're actually only investing cash of
• 20:53
  Speaker 4: about two hundred and forty thousand dollars and you're making
• 20:56
  Speaker 4: about a million dollars in return. So full well, simple,
• 21:01
  Speaker 4: but not that simple, because a lot of people don't
• 21:03
  Speaker 4: have the ability to invest or, they don't have the knowledge,
• 21:07
  Speaker 4: and a lot of people are in a position where
• 21:09
  Speaker 4: they you know, might not feel comfortable to do that
• 21:12
  Speaker 4: yet or aren't ready to commit to that. So that's
• 21:14
  Speaker 4: just the power of starting early. Whereas if you started
• 21:17
  Speaker 4: in your late thirties, you're going to need to contribute
• 21:19
  Speaker 4: three or four thousand dollars a month to reach the
• 21:22
  Speaker 4: same goal that the person starting in their early twenties
• 21:25
  Speaker 4: only had to invest five hundred dollars for. So one
• 21:27
  Speaker 4: thing I actually wanted to mention before we move on
• 21:30
  Speaker 4: and about to tell, I want to quickly chat about superannuation.
• 21:34
  Speaker 4: So there are a lot of questions in the Facebook
• 21:38
  Speaker 4: group around superannuation and where where your money should go
• 21:41
  Speaker 4: and what that looks like, and you know what fund should.
• 21:44
  Speaker 6: I be with?
• 21:44
  Speaker 4: How does this work? How does it not work? If
• 21:47
  Speaker 4: you think that you're not an investor but you have
• 21:49
  Speaker 4: a superannuation fund, you are wrong.
• 21:52
  Speaker 3: You are an.
• 21:52
  Speaker 4: Investor already because all of the money in your superannuation
• 21:56
  Speaker 4: fund has been invested on your behalf. So a key
• 22:00
  Speaker 4: thing about super is that, whilst I'm saying right now
• 22:02
  Speaker 4: that the money in your super is invested, superannuation in
• 22:06
  Speaker 4: itself is not an investment. It is a tax vehicle,
• 22:09
  Speaker 4: which just means that you are investing all of that
• 22:12
  Speaker 4: money with a good tax gain. So your superannuation fund
• 22:16
  Speaker 4: is invested, which means you're actually already in an investor.
• 22:19
  Speaker 4: It just means it's in a safer tax environment. So
• 22:24
  Speaker 4: superannuation is taxed at fifteen percent, whereas most of you
• 22:28
  Speaker 4: will have marginal tax rates on your income at more
• 22:32
  Speaker 4: than fifteen percent.
• 22:33
  Speaker 3: So if you think you're not an.
• 22:34
  Speaker 4: Investor, you actually already are. Superannuation is almost ten percent
• 22:39
  Speaker 4: of your income that comes out of your account every
• 22:41
  Speaker 4: single month. So I think you should be taking that seriously.
• 22:44
  Speaker 4: And you know, if you want to start investing, have
• 22:46
  Speaker 4: a really good think about where your super is. Make
• 22:48
  Speaker 4: sure you're consolidating your accounts so you're not paying double fees,
• 22:51
  Speaker 4: and really start looking at that because one day it
• 22:54
  Speaker 4: could be your biggest asset.
• 22:55
  Speaker 1: Right, I need to do that. Yes, A, Hi, there,
• 23:04
  Speaker 1: you've called the Shoes on the Money Hotline. Do you
• 23:07
  Speaker 1: have a money problem you want help solving. Do you
• 23:09
  Speaker 1: have a money dilemma you just want to chat about.
• 23:11
  Speaker 1: Victoria is here to help. Each week, we'll be playing
• 23:14
  Speaker 1: your hotline questions to help make sense of the money
• 23:16
  Speaker 1: mess you may have found yourself in. Give us a
• 23:18
  Speaker 1: call on four three five, two nine three double eighty
• 23:21
  Speaker 1: six and you might find yourself on the show.
• 23:32
  Speaker 6: Hi, Victorian Annabelle, I have a question for shoes on
• 23:36
  Speaker 6: the money. I am really scared of investing in shares
• 23:41
  Speaker 6: because my dad used to do that a lot and
• 23:44
  Speaker 6: he lost quite a bit of money. So what is
• 23:46
  Speaker 6: to go with them? How do you do them? Are
• 23:48
  Speaker 6: they the best way to be investing? I just need
• 23:51
  Speaker 6: some help in that whole space. I love the show.
• 23:54
  Speaker 6: Thanks bye.
• 23:56
  Speaker 1: As a fearful person myself, Victoria, I would like to
• 23:58
  Speaker 1: know how would she move through that?
• 24:00
  Speaker 4: I think it's really important here to remember that all
• 24:04
  Speaker 4: investments carry some level of risk, and potentially having a
• 24:08
  Speaker 4: discussion with your dad about the types of shares he
• 24:10
  Speaker 4: was invested in, where he got them from, how that worked,
• 24:14
  Speaker 4: is going to educate you into knowing what potentially isn't
• 24:17
  Speaker 4: isn't a good investment. Also, habitchat with a financial advisor,
• 24:21
  Speaker 4: understand why your dad lost money on that to begin with,
• 24:25
  Speaker 4: because if you don't know why he lost money originally,
• 24:28
  Speaker 4: it won't be something you can look for in the future.
• 24:31
  Speaker 4: All investments carry risk. There is the potential of losing money,
• 24:35
  Speaker 4: but at the same time, if you're investing in really
• 24:38
  Speaker 4: solid conservative investments, that risk is far lower.
• 24:41
  Speaker 1: So it's important to do your research and suss out,
• 24:45
  Speaker 1: what's risky, what's not. Make your own informed decisions.
• 24:48
  Speaker 4: Absolutely, And it goes back to what we're saying before
• 24:50
  Speaker 4: about when the GFC hit and share prices plummeted, a
• 24:54
  Speaker 4: lot of people got out at that point. And if
• 24:57
  Speaker 4: you speak to a lot of people who got out
• 24:59
  Speaker 4: at that point, they'll say they lost all of their
• 25:00
  Speaker 4: money in shares and that you know, the GFC was
• 25:03
  Speaker 4: the worst part of their life. Please don't get me wrong,
• 25:05
  Speaker 4: the GFC was awful, but a lot of people got
• 25:07
  Speaker 4: out because of their fear rather than because of being
• 25:11
  Speaker 4: educated and knowing that they should be writing it out.
• 25:14
  Speaker 3: I also have.
• 25:14
  Speaker 4: A lot of clients who will tell you that the
• 25:17
  Speaker 4: GFC is what made them wealthy as well, because share
• 25:20
  Speaker 4: prices plummeted and they purchased shares when they were worth nothing,
• 25:23
  Speaker 4: which meant now as they've recovered, they've made quite.
• 25:26
  Speaker 1: A sum of money.
• 25:27
  Speaker 4: So I think it's really important to understand as much
• 25:30
  Speaker 4: as he lost money on shares, how did he lose
• 25:33
  Speaker 4: money at what point in the market did he get
• 25:35
  Speaker 4: out and how did that work for him?
• 25:41
  Speaker 1: And now it's time for the Purby stuff. It's time
• 25:43
  Speaker 1: for our weekly money dary, where we ask an Australian
• 25:46
  Speaker 1: woman what exactly is in your bank account? Let's do this.
• 25:51
  Speaker 1: Today's money Dari is from a thirty three year old
• 25:53
  Speaker 1: fitness influencer who says she's got a pretty good handle
• 25:55
  Speaker 1: on money.
• 25:56
  Speaker 5: I am at a point, I guess now in my
• 25:58
  Speaker 5: career where I've been building my business for a few
• 26:00
  Speaker 5: years now and I've gone from earning around sixty sixty
• 26:04
  Speaker 5: five thousand in a corporate job now to two or
• 26:07
  Speaker 5: three times that given the year.
• 26:09
  Speaker 1: So I've just gotten to a really.
• 26:10
  Speaker 5: Good place where I have a fairly steady income and
• 26:14
  Speaker 5: enough money to play with as well as safe. There
• 26:16
  Speaker 5: are like pigs and troughs throughout the year, but not
• 26:19
  Speaker 5: too many lowls, which is good. But I will sort
• 26:21
  Speaker 5: of have a large intake of clients all at once
• 26:24
  Speaker 5: where I get a whole bunch of money in within
• 26:27
  Speaker 5: a two week period, and that's kind of got to
• 26:29
  Speaker 5: last me sometimes for two to three months. So I
• 26:31
  Speaker 5: can't just factor that in and put aside as much
• 26:34
  Speaker 5: money as I can in those situations to try and
• 26:36
  Speaker 5: have a little bit of a nest egg to spread out.
• 26:38
  Speaker 1: Okay, so down to the nitty gritty stuff, how much
• 26:40
  Speaker 1: does thirty three and comfortable earn as an influencer.
• 26:43
  Speaker 5: I have to add it up, but I think my
• 26:44
  Speaker 5: last estimate was around one eighty to one eighty five.
• 26:47
  Speaker 5: But this is before tax, before super and like expenses,
• 26:51
  Speaker 5: so I think after all of that, probably around one hundred. Well,
• 26:54
  Speaker 5: I just put twenty thousand into my souper the other day,
• 26:56
  Speaker 5: and I just booked a seven week trip to Europe,
• 26:59
  Speaker 5: so I I've ducked into that. So it wasn't a
• 27:01
  Speaker 5: hundred thousand, and it's now at sixty five thousand or seventy.
• 27:04
  Speaker 2: I'm so proud.
• 27:05
  Speaker 5: When I got to the hundred thousand, I was like,
• 27:07
  Speaker 5: oh my god, this is so I just did not
• 27:09
  Speaker 5: ever think that I would be in this position.
• 27:12
  Speaker 1: So like it makes me really proud.
• 27:13
  Speaker 5: And I didn't come from a super wealthy background like
• 27:16
  Speaker 5: my mom had like centling payments, and I have four
• 27:19
  Speaker 5: sisters and a brother, so big family to look after
• 27:21
  Speaker 5: with a single income family, so we didn't have a lot,
• 27:24
  Speaker 5: but we got by. So I just I didn't think
• 27:26
  Speaker 5: I would even run my own business, like I was
• 27:28
  Speaker 5: never super business minded, and then to be earning as
• 27:31
  Speaker 5: much as I do and be so comfortable and you know,
• 27:35
  Speaker 5: it makes me really happy that I've worked so hard.
• 27:37
  Speaker 1: To get here. So we know how Comfortable gets paid,
• 27:39
  Speaker 1: but what exactly happens to that money after it's deposited
• 27:42
  Speaker 1: into her account.
• 27:43
  Speaker 5: I'm not super structured with it, and that's probably something
• 27:46
  Speaker 5: I'd like to work on. Is actually like working out
• 27:48
  Speaker 5: the percentage every time I get an income or you know,
• 27:51
  Speaker 5: at least once a month and allocating it accordingly. But
• 27:54
  Speaker 5: at this point, I pretty much move as much as
• 27:57
  Speaker 5: I can to my savings every time I get an influx,
• 28:00
  Speaker 5: and I kind of live off the drip feeding. Like
• 28:03
  Speaker 5: I have a few clients that are like week to
• 28:05
  Speaker 5: week payments, so I'll tend to mostly just live off that,
• 28:09
  Speaker 5: which is like, you know, a few hundred dollars a
• 28:11
  Speaker 5: week that'll pay you my rent and all my little
• 28:13
  Speaker 5: bits and pieces and any big chunks that come in
• 28:16
  Speaker 5: will go straight to my savings and I'll either save it,
• 28:19
  Speaker 5: put it towards tax, or put it towards like back
• 28:22
  Speaker 5: into my business.
• 28:23
  Speaker 1: Ah, yes, send time for that question. No one seems
• 28:25
  Speaker 1: to know much about does Comfortable invest and if not, why.
• 28:28
  Speaker 5: I don't only because I don't have the knowledge. So
• 28:32
  Speaker 5: it's definitely something I would like to get into. I
• 28:33
  Speaker 5: think now that I'm in a financial position to look
• 28:36
  Speaker 5: into it, it's probably something that I should educate myself on.
• 28:39
  Speaker 5: But I've just you know, my family didn't really have
• 28:41
  Speaker 5: any investments or anything, so I kind of haven't learned.
• 28:43
  Speaker 5: I haven't been around that, So it would be something
• 28:45
  Speaker 5: I guess to look into, and you know, buy a
• 28:47
  Speaker 5: house as well and have some more assets.
• 28:50
  Speaker 1: And what about debts. I have no debt.
• 28:53
  Speaker 5: I'm really proud to say that actually, And I have
• 28:55
  Speaker 5: a phobia of like credit cards, so that's just me.
• 28:58
  Speaker 5: But I've just like I always had a thing about trying
• 29:01
  Speaker 5: not to spend money that I don't have. I have
• 29:03
  Speaker 5: after pay I don't use it unless I've forgotten my
• 29:05
  Speaker 5: wallet and I need to pay for something. And I
• 29:08
  Speaker 5: mean I didn't go to UNI, so I kind of
• 29:11
  Speaker 5: skipped easily on that one. You know, I've had loans before.
• 29:15
  Speaker 5: I had a car loan and a few personal loans
• 29:17
  Speaker 5: here and there, and you know, I used to borrow
• 29:19
  Speaker 5: money from my mom. Like to do my personal training course,
• 29:22
  Speaker 5: I had to borrow a few thousand dollars. But I've
• 29:24
  Speaker 5: just gotten to the point now where I don't spend
• 29:26
  Speaker 5: money if I don't have it, and I'm so blessed
• 29:29
  Speaker 5: to be able to do that, though obviously like that's
• 29:31
  Speaker 5: not the case for everyone, but I guess, yeah, I've
• 29:34
  Speaker 5: got the money to spend if I really want something.
• 29:37
  Speaker 5: You know, if I'm traveling, I can kind of just
• 29:39
  Speaker 5: plan for that, and I just work for things in advance.
• 29:42
  Speaker 5: I'm more of a forward planner, so I'm like, I
• 29:44
  Speaker 5: know I want to travel, I'm going to just hustle
• 29:45
  Speaker 5: a little bit more to get there.
• 29:47
  Speaker 1: So does Comfortable have any good money habits that she's
• 29:49
  Speaker 1: especially proud of.
• 29:51
  Speaker 5: Don't, probably not having a credit card, although I did
• 29:54
  Speaker 5: recently get one just for the Quanta's frequent flight points.
• 29:57
  Speaker 5: It has like one hundred thousand free frequent my points.
• 30:00
  Speaker 5: I was like, okay, I'll get that, but I literally like,
• 30:03
  Speaker 5: I pay that off before the believing comes in. Besides,
• 30:07
  Speaker 5: have a phobia of like interest.
• 30:08
  Speaker 1: And her worst money habits.
• 30:11
  Speaker 5: I think because I'm so comfortable with my money now,
• 30:14
  Speaker 5: I don't think enough when I spend money. When it's
• 30:16
  Speaker 5: just one hundred dollars here, two hundred dollars there, it
• 30:18
  Speaker 5: doesn't really make a big impact on my weekly income.
• 30:21
  Speaker 2: So I'm a little bit too frivolous.
• 30:23
  Speaker 1: That's something I'd like to rein in, maybe buy less
• 30:25
  Speaker 1: active with it. Looks like thirty three and comfortable, seems
• 30:28
  Speaker 1: to have it sorted. So what's she actually saving for
• 30:31
  Speaker 1: and what's the money sitting there for?
• 30:33
  Speaker 5: I really want to buy a house, so I'd like
• 30:34
  Speaker 5: to get my savings back up to one hundred before
• 30:36
  Speaker 5: I buy a house, So hopefully in the next like
• 30:39
  Speaker 5: eighteen months, I can do that, and a lot of
• 30:42
  Speaker 5: travel before I buy a house. I'm doing seven weeks
• 30:44
  Speaker 5: in Europe soon, so that's costing me a lot a
• 30:46
  Speaker 5: lot of money, but it's worth it.
• 30:49
  Speaker 1: So how would today's money diarist rate her own relationship
• 30:51
  Speaker 1: with money if we force her to give herself a grade?
• 30:54
  Speaker 1: Oh that's a tough.
• 30:55
  Speaker 2: One, Maybe like a B.
• 30:59
  Speaker 5: I mean, I know, I your faces. I own good money,
• 31:03
  Speaker 5: but I think I could be smarter with it.
• 31:05
  Speaker 1: I definitely could invest.
• 31:06
  Speaker 5: I definitely could have more assets and probably not spend
• 31:10
  Speaker 5: as if I didn't buy things so flippantly. Imagine the
• 31:14
  Speaker 5: savings I would have.
• 31:15
  Speaker 1: Am I the only one who wishes that I went
• 31:17
  Speaker 1: into influencing as a career.
• 31:19
  Speaker 4: No, I sometimes think I do. I actually have a
• 31:22
  Speaker 4: fair few clients who work as social media influences, and
• 31:25
  Speaker 4: seeing what they do and how they get paid sometimes
• 31:28
  Speaker 4: blows my mind. But at the same time, you should
• 31:30
  Speaker 4: see the amount of effort they have to put in
• 31:32
  Speaker 4: in the background to actually get those things off the ground.
• 31:34
  Speaker 1: Right always being on your phone. Thirty three Comfortable said
• 31:37
  Speaker 1: that she had no debt and that she had a
• 31:39
  Speaker 1: phobia of interest. I think one of the better phobias.
• 31:42
  Speaker 1: Did that make you feel warm and fuzzy inside? When
• 31:44
  Speaker 1: she said she had no debt?
• 31:45
  Speaker 3: It did?
• 31:45
  Speaker 4: And I think if everyone in that she's on the
• 31:48
  Speaker 4: many community can just start having a phobia of debt,
• 31:51
  Speaker 4: that would be absolutely fantastic because we would all be
• 31:54
  Speaker 4: better off for it.
• 31:55
  Speaker 1: What about things she can improve on? What do you think?
• 31:58
  Speaker 4: So again, I think I'm gonna have to go back
• 32:00
  Speaker 4: to financial education. So she just needs to increase her
• 32:03
  Speaker 4: financial literacy, learn about what investing is, learn about what
• 32:06
  Speaker 4: you're doing with super, learn about what you want to
• 32:09
  Speaker 4: do with this house you're planning on purchasing.
• 32:11
  Speaker 3: I think it's really.
• 32:12
  Speaker 4: Inspiring to see that she's putting her super forward and
• 32:15
  Speaker 4: she's saying, look, this is a value to me, And
• 32:17
  Speaker 4: I've put twenty thousand dollars into my super this year,
• 32:20
  Speaker 4: But also why are you putting it in super?
• 32:22
  Speaker 1: Like?
• 32:22
  Speaker 3: Why was that choice made?
• 32:24
  Speaker 4: Superannuation is an investment vehicle, right, so it's exactly the
• 32:28
  Speaker 4: same as you investing outside of superannuation. If you went
• 32:31
  Speaker 4: and set up an investment portfolio, the money in that
• 32:34
  Speaker 4: investment portfolio is invested in exactly the same way it
• 32:37
  Speaker 4: is within superannuation. Superannuation is just a tax structure, which
• 32:41
  Speaker 4: means that you are paying less tax on that money,
• 32:44
  Speaker 4: but it is also locked away until your retirement age.
• 32:48
  Speaker 3: So I think as much as it's a really.
• 32:50
  Speaker 4: Tax effective vehicle to use for investing and saving for
• 32:53
  Speaker 4: the future, it also means you can't touch that money
• 32:56
  Speaker 4: until you retire.
• 32:57
  Speaker 3: And I think that her prioritizing that is really important.
• 33:00
  Speaker 4: But also creating an asset that's going to help her
• 33:03
  Speaker 4: for the next forty or fifty years, not in the
• 33:06
  Speaker 4: short term, but creating an asset that's going to help
• 33:09
  Speaker 4: her get to retirement and give her the freedom of
• 33:12
  Speaker 4: choice is really important. So learning a little bit more
• 33:14
  Speaker 4: about investment would be really important. Learning about what she
• 33:18
  Speaker 4: wants to do with the house she wants to purchase.
• 33:20
  Speaker 4: Where is she going to purchase, what does that look like,
• 33:22
  Speaker 4: and how is she going to facilitate it? I think
• 33:24
  Speaker 4: that would be a really good starting point.
• 33:26
  Speaker 1: So do you think her rating of a bee that
• 33:28
  Speaker 1: she gave herself was accurate?
• 33:29
  Speaker 4: I never want to argue with people's ratings of themselves
• 33:32
  Speaker 4: because a B that's a really good score.
• 33:35
  Speaker 1: She could put a plus on that.
• 33:37
  Speaker 3: She could put a plus on that.
• 33:38
  Speaker 4: But I think she also you know, if she feels
• 33:40
  Speaker 4: like she's got a lot to learn, then I don't
• 33:43
  Speaker 4: want to argue with that. I want to say, all right,
• 33:44
  Speaker 4: how do we help you learn what you need to
• 33:47
  Speaker 4: learn about investing, about saving, about creating the future you
• 33:50
  Speaker 4: want to create, and what does that look like like.
• 33:52
  Speaker 4: As much as she's been financially successful thus far, it's
• 33:55
  Speaker 4: also really important to reflect on the fact that, you know,
• 34:00
  Speaker 4: just because you've been financially successful in the short term,
• 34:03
  Speaker 4: how are you going to make yourself financially successful in
• 34:06
  Speaker 4: the long term. And that's more about investing in yourself
• 34:08
  Speaker 4: and in assets that help you create wealth.
• 34:11
  Speaker 1: Right, just keep listening to she's on the Money podcast.
• 34:13
  Speaker 1: Hopefully we can help her with her education.
• 34:15
  Speaker 3: Coming right at you.
• 34:17
  Speaker 1: That's all we have time for today. Just before we
• 34:19
  Speaker 1: head off, though, as always, let's quickly wrap the boring
• 34:21
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• 34:24
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• 34:26
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• 34:30
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• 34:32
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• 34:36
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• 34:47
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• 34:49
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