1 00:00:13,440 --> 00:00:16,640 Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm 2 00:00:16,720 --> 00:00:20,960 Speaker 1: James Kirby, Wealth editor at the Australia. Welcome aboard everybody. 3 00:00:21,040 --> 00:00:22,840 Speaker 1: It's one of my favorite shows of the year. It's 4 00:00:23,000 --> 00:00:27,520 Speaker 1: the release of the top financial Advisor's List, which we've 5 00:00:27,560 --> 00:00:31,120 Speaker 1: been doing every year a modest total of fifty advisors. 6 00:00:31,400 --> 00:00:34,479 Speaker 1: It is now expanded this year this morning out this 7 00:00:34,560 --> 00:00:38,040 Speaker 1: morning to one hundred and fifty advisors, the top one 8 00:00:38,120 --> 00:00:41,199 Speaker 1: hundred and fifty advisors in the market, and it's quite 9 00:00:41,240 --> 00:00:44,760 Speaker 1: the enterprise. It's produced in conjunction with the Baron's Investment 10 00:00:45,040 --> 00:00:49,320 Speaker 1: magazine of New York and actually they do all the calculations, 11 00:00:49,360 --> 00:00:51,960 Speaker 1: so all I have to do in tandem with the 12 00:00:52,040 --> 00:00:56,160 Speaker 1: Deal editor of the Deal magazine, which is where you'll 13 00:00:56,160 --> 00:00:59,320 Speaker 1: find the list, or you can find it online. Helen 14 00:00:59,360 --> 00:01:02,639 Speaker 1: Trinker puts it all together. And I know a lot 15 00:01:02,680 --> 00:01:05,800 Speaker 1: of people on the list at this stage, and some 16 00:01:05,880 --> 00:01:08,520 Speaker 1: of them of course have been on the Money Puzzle. 17 00:01:08,959 --> 00:01:11,360 Speaker 1: So I want to actually today give you a really 18 00:01:11,360 --> 00:01:14,520 Speaker 1: good guide about financial advice, about how it works, how 19 00:01:14,520 --> 00:01:17,559 Speaker 1: to find it, and the landscaper within it. Just before 20 00:01:17,600 --> 00:01:20,039 Speaker 1: I do one thing I want to mention lots of 21 00:01:20,120 --> 00:01:25,440 Speaker 1: response to the episode about big super funds behaving badly, 22 00:01:25,520 --> 00:01:29,400 Speaker 1: and part of that was triggered by your own correspondence 23 00:01:29,800 --> 00:01:34,600 Speaker 1: with me where you had issues about being having trouble 24 00:01:34,640 --> 00:01:36,360 Speaker 1: with big super funds and how they dealt with you. 25 00:01:36,440 --> 00:01:39,800 Speaker 1: If you have let us know the money puzzle at 26 00:01:39,840 --> 00:01:44,839 Speaker 1: the Australian dot com dot au. Send in those emails. 27 00:01:44,880 --> 00:01:46,840 Speaker 1: I'd like to see them and we can actually we 28 00:01:46,920 --> 00:01:49,000 Speaker 1: can get a response much faster than you can get 29 00:01:49,000 --> 00:01:52,200 Speaker 1: a response. Let's put it that way. Okay, Now to 30 00:01:52,400 --> 00:01:56,400 Speaker 1: join me today, I have an advisor who's actually been 31 00:01:56,440 --> 00:01:59,040 Speaker 1: one of the handful of advisors who's been on this 32 00:01:59,320 --> 00:02:03,760 Speaker 1: Top Advice's list since the day we launched in two seventeen. 33 00:02:04,360 --> 00:02:08,080 Speaker 1: His name is Will Hamilton. He is at Hamilton Wealth Partners, 34 00:02:08,120 --> 00:02:09,600 Speaker 1: regular on the show How are You Will? 35 00:02:10,400 --> 00:02:12,520 Speaker 2: Very well, thank you, James, and thanks for having me. 36 00:02:13,240 --> 00:02:16,000 Speaker 1: Good to have you, Good to have you. So every 37 00:02:16,080 --> 00:02:18,200 Speaker 1: year since two seventeen, feeling the pressure are you? 38 00:02:20,919 --> 00:02:23,919 Speaker 2: It's an honor to be honest, to be honest, and 39 00:02:24,560 --> 00:02:26,280 Speaker 2: that these things are a team effort. You We've got 40 00:02:26,280 --> 00:02:27,000 Speaker 2: a great team here. 41 00:02:27,040 --> 00:02:29,320 Speaker 1: So yeah, well, I tell you what. Putting out a 42 00:02:29,320 --> 00:02:31,920 Speaker 1: list of one hundred and fifty advisors. Is the team effort, 43 00:02:32,320 --> 00:02:37,519 Speaker 1: especially these days when you have print and digital and 44 00:02:37,680 --> 00:02:41,520 Speaker 1: podcasts and the joint venture within New York Publication. I 45 00:02:41,560 --> 00:02:44,120 Speaker 1: can tell you it's no easy task, and I'm happy 46 00:02:44,160 --> 00:02:47,919 Speaker 1: to say it seems to be out there all bells 47 00:02:48,000 --> 00:02:51,320 Speaker 1: ringing today, So that was really good. There's a couple 48 00:02:51,400 --> 00:02:54,040 Speaker 1: of things I wanted to talk about, and the listeners 49 00:02:54,080 --> 00:02:56,359 Speaker 1: will be coming in at various angles. Some of them 50 00:02:56,400 --> 00:02:59,839 Speaker 1: will no advice all to well. Some of them might 51 00:03:00,320 --> 00:03:03,280 Speaker 1: have started. If I go on if I know nothing, 52 00:03:03,639 --> 00:03:06,040 Speaker 1: and I go on to Google, which is what most 53 00:03:06,080 --> 00:03:08,520 Speaker 1: people do to start anything, and they say, how do 54 00:03:08,600 --> 00:03:10,840 Speaker 1: I find a financial advisor? The first thing I'm going 55 00:03:10,880 --> 00:03:15,600 Speaker 1: to get is five or six people selling services. That's 56 00:03:15,600 --> 00:03:17,679 Speaker 1: the first thing I'm going to see, okay, because they're sponsored. 57 00:03:17,919 --> 00:03:20,640 Speaker 1: And then I'm going to see various sites. But I 58 00:03:20,680 --> 00:03:24,000 Speaker 1: think generally at the very start, people should, perhaps if 59 00:03:24,040 --> 00:03:26,079 Speaker 1: you know nothing at all, start with money Smart, which 60 00:03:26,120 --> 00:03:29,079 Speaker 1: is often where people should start. The the ASSEIC website. 61 00:03:29,120 --> 00:03:32,040 Speaker 1: That is just to check. That's just to check whether 62 00:03:32,080 --> 00:03:34,520 Speaker 1: the advisor that your friend at the barbecue said was great, 63 00:03:34,680 --> 00:03:37,680 Speaker 1: whether they're actually registered, and whether there are any whether 64 00:03:37,680 --> 00:03:41,720 Speaker 1: they basically tick the elementary boxes and then I would 65 00:03:41,720 --> 00:03:43,600 Speaker 1: hope the people on the show would be a bit 66 00:03:43,600 --> 00:03:45,680 Speaker 1: more advanced than that, and perhaps for a start they 67 00:03:45,720 --> 00:03:48,240 Speaker 1: could look at this list. There's one hundred and fifty 68 00:03:48,320 --> 00:03:50,760 Speaker 1: names there, and that is quite a list I from 69 00:03:50,760 --> 00:03:53,840 Speaker 1: all around the nation now. But one thing that struck 70 00:03:53,880 --> 00:03:58,280 Speaker 1: me will like almost straight away was the whole game 71 00:03:58,360 --> 00:04:03,520 Speaker 1: is moving up market. That financial advice. I mean, in 72 00:04:03,560 --> 00:04:05,680 Speaker 1: a way, it would always be an up market activity, 73 00:04:05,720 --> 00:04:08,920 Speaker 1: but in Australia because it costs so much to do it. 74 00:04:08,960 --> 00:04:11,960 Speaker 1: I saw a survey during the week that said fifty 75 00:04:12,000 --> 00:04:15,400 Speaker 1: percent fifty percent of the fee for your financial advices 76 00:04:15,440 --> 00:04:18,919 Speaker 1: administration costs. So it seems like the whole thing is 77 00:04:18,920 --> 00:04:21,440 Speaker 1: moving up market. But it seems that it's seriously moving 78 00:04:21,520 --> 00:04:24,440 Speaker 1: up market now, like it really is starting to be. 79 00:04:25,279 --> 00:04:27,360 Speaker 1: The companies that are on the list, even the brands 80 00:04:27,360 --> 00:04:30,240 Speaker 1: that are on the list, if they have multiple arms, 81 00:04:30,400 --> 00:04:32,800 Speaker 1: it's the up market arm of their of their advice 82 00:04:32,839 --> 00:04:37,799 Speaker 1: activity that gets the ratings. Basically, so is that what's happening. 83 00:04:39,000 --> 00:04:42,080 Speaker 2: Look that I'm not going to mention names, but some 84 00:04:42,120 --> 00:04:44,839 Speaker 2: of the larger firms have pushed right up to a 85 00:04:44,880 --> 00:04:48,640 Speaker 2: minimum five million dollars and yeah, that's a commercial call 86 00:04:48,680 --> 00:04:51,360 Speaker 2: on their part. It's in many cases that decision has 87 00:04:51,400 --> 00:04:53,600 Speaker 2: been made in Hong Kong or New York or something 88 00:04:53,640 --> 00:04:57,800 Speaker 2: like that. And yeah, they're good firms, but that's yeah, 89 00:04:57,839 --> 00:05:01,560 Speaker 2: so when you talk about it, it's a gone up marker. Yes, 90 00:05:01,640 --> 00:05:05,200 Speaker 2: some of those firms have done that. We are wholesale only, 91 00:05:05,320 --> 00:05:08,039 Speaker 2: so we have to meet these sophisticated and invest the tests. 92 00:05:08,080 --> 00:05:10,200 Speaker 2: With any client, we will take less, but we also 93 00:05:10,240 --> 00:05:12,880 Speaker 2: have a minimum that we think is important that we 94 00:05:12,920 --> 00:05:15,359 Speaker 2: can grow it to that. Now that's a commercial decision 95 00:05:15,360 --> 00:05:18,919 Speaker 2: as well, and you need to look at the overall 96 00:05:19,440 --> 00:05:21,960 Speaker 2: revenue you can bring in and the costs to service 97 00:05:22,000 --> 00:05:26,080 Speaker 2: that client. But you are right, we don't like to 98 00:05:26,080 --> 00:05:28,560 Speaker 2: say no to any client, and if we can't service them, 99 00:05:28,560 --> 00:05:32,239 Speaker 2: we like to introduce and introduce them to a firm 100 00:05:32,440 --> 00:05:34,920 Speaker 2: that can look after them. And we've been working very 101 00:05:34,920 --> 00:05:36,920 Speaker 2: closely with a firm for about a decade, but they've 102 00:05:36,960 --> 00:05:41,000 Speaker 2: even moved up. Yes, so we've sort of had to 103 00:05:41,040 --> 00:05:44,640 Speaker 2: go and source another firm in the retail space where 104 00:05:44,680 --> 00:05:47,640 Speaker 2: they can look after retail clients and some of those 105 00:05:47,680 --> 00:05:49,800 Speaker 2: smaller ones. Because it's important, as you said, go and 106 00:05:49,839 --> 00:05:53,640 Speaker 2: Google and they then send send something through your website, 107 00:05:53,720 --> 00:05:55,160 Speaker 2: but we want to make sure that we can point 108 00:05:55,200 --> 00:05:57,040 Speaker 2: them in the right direction, even if we're not right 109 00:05:57,080 --> 00:05:57,400 Speaker 2: for them. 110 00:05:58,320 --> 00:06:01,839 Speaker 1: And I see that there's variations around this, but in 111 00:06:01,920 --> 00:06:05,719 Speaker 1: terms of what you might expect to pay ongoing annually 112 00:06:05,760 --> 00:06:09,359 Speaker 1: for financial advice, we're looking at something in the order 113 00:06:09,839 --> 00:06:12,159 Speaker 1: of four and a half to five and a half 114 00:06:12,240 --> 00:06:15,279 Speaker 1: thousand a year on average. Now that's a lot. You 115 00:06:15,360 --> 00:06:18,440 Speaker 1: want to be making lots of money basically for that. 116 00:06:18,640 --> 00:06:20,400 Speaker 1: So one thing I wanted to just put to you 117 00:06:20,400 --> 00:06:23,800 Speaker 1: will before we talk about the landscape out there for 118 00:06:23,960 --> 00:06:28,880 Speaker 1: top advisors or for very good advisors for listeners who 119 00:06:28,960 --> 00:06:31,640 Speaker 1: just want to get started. It seems to me there 120 00:06:31,680 --> 00:06:34,279 Speaker 1: was two sort of promises about if we take it 121 00:06:34,320 --> 00:06:38,280 Speaker 1: that the whole financial advice market has moved up upscale 122 00:06:39,200 --> 00:06:41,080 Speaker 1: to the upper end of the mass affluent. And you 123 00:06:41,160 --> 00:06:44,360 Speaker 1: mentioned how your wholesale and a number on the list 124 00:06:44,400 --> 00:06:47,000 Speaker 1: are wholesale, but the majority aren't. By the way, for 125 00:06:47,040 --> 00:06:49,800 Speaker 1: what it's worth, folks, the majority are not wholesale only. 126 00:06:49,839 --> 00:06:53,280 Speaker 1: But by that you must be a sophisticated investor. You 127 00:06:53,400 --> 00:06:56,279 Speaker 1: must have two point five million in net assets. But 128 00:06:56,920 --> 00:07:00,839 Speaker 1: the promise for everyday investors are start investors. Was that 129 00:07:00,880 --> 00:07:02,680 Speaker 1: there was going to be sort of two things that 130 00:07:02,760 --> 00:07:06,679 Speaker 1: might save the day. One was digital advice, Digiti advice, 131 00:07:06,720 --> 00:07:09,119 Speaker 1: and the other was that the big super funds would 132 00:07:09,120 --> 00:07:13,040 Speaker 1: come in and offer advice of a type. Now on 133 00:07:13,720 --> 00:07:17,040 Speaker 1: the digit advice side really never came to pass. It 134 00:07:17,120 --> 00:07:20,320 Speaker 1: certainly didn't come to pass in our market in any way. 135 00:07:20,400 --> 00:07:23,240 Speaker 1: I know the stock spot which has been has a 136 00:07:23,320 --> 00:07:27,200 Speaker 1: course now owned by the big Murray Korean fund and 137 00:07:27,240 --> 00:07:30,840 Speaker 1: they are Digiti advice specialists. But it didn't really get 138 00:07:31,000 --> 00:07:33,680 Speaker 1: It didn't really take off, did it. 139 00:07:33,720 --> 00:07:36,360 Speaker 2: Look that's a really good point. I was at the 140 00:07:36,400 --> 00:07:39,960 Speaker 2: future Proof conference in Los Angeles a few months ago 141 00:07:40,240 --> 00:07:43,240 Speaker 2: and they had this panel of female advisors actually and 142 00:07:44,280 --> 00:07:48,800 Speaker 2: talking to them look back five years and what was 143 00:07:48,800 --> 00:07:52,280 Speaker 2: being pushed five years ago versus you know what has 144 00:07:52,400 --> 00:07:55,760 Speaker 2: and what hasn't taken off? And they said there were 145 00:07:55,760 --> 00:07:58,680 Speaker 2: two things. One was ESG yeah, I know this is 146 00:07:58,720 --> 00:08:02,560 Speaker 2: in America. And the second one was exactly that online 147 00:08:02,960 --> 00:08:07,280 Speaker 2: b it Digiti advice, be it online platforms for investing. 148 00:08:08,120 --> 00:08:12,040 Speaker 1: Low cost, low touch financial advice. So it's come through 149 00:08:12,080 --> 00:08:14,040 Speaker 1: a little bit, but it hasn't come through on a 150 00:08:14,080 --> 00:08:17,880 Speaker 1: sort of mass fashion that was expected, and the other 151 00:08:17,920 --> 00:08:22,320 Speaker 1: part was the big superannuation funds. Now the big superannuation funds, 152 00:08:22,640 --> 00:08:25,680 Speaker 1: their efforts to enter financial advice you might say, on 153 00:08:25,800 --> 00:08:31,040 Speaker 1: their terms has stoled in Parliament. And the big issue 154 00:08:31,640 --> 00:08:34,280 Speaker 1: is that they want, as they always want, they want 155 00:08:34,320 --> 00:08:37,440 Speaker 1: to pool everything and so that you'll pay an advice fee, 156 00:08:37,480 --> 00:08:39,959 Speaker 1: but it won't really reflect how much advice you have 157 00:08:40,400 --> 00:08:42,240 Speaker 1: or how much you have in the bank or in 158 00:08:42,280 --> 00:08:45,800 Speaker 1: the fund. This has been blocked if you like, by 159 00:08:45,880 --> 00:08:50,960 Speaker 1: other parties in Parliament because it's not transparent. And the 160 00:08:51,080 --> 00:08:54,000 Speaker 1: issue in big super as we know is the lack 161 00:08:54,040 --> 00:08:57,480 Speaker 1: of transparency is becoming a bigger and bigger issue. And 162 00:08:57,520 --> 00:08:59,400 Speaker 1: their timing is pretty bad to try and push this 163 00:08:59,440 --> 00:09:02,800 Speaker 1: because we've just had a flurry of scandals basically in 164 00:09:02,880 --> 00:09:06,280 Speaker 1: big super often linked with the fact that people couldn't 165 00:09:06,559 --> 00:09:10,360 Speaker 1: see how their funds were going, couldn't get payments in 166 00:09:10,440 --> 00:09:15,800 Speaker 1: the timeframe they expected, or even issues around on listed valuations. 167 00:09:16,040 --> 00:09:18,960 Speaker 1: So we're talking about Sebus here, we're talking about Hester here. 168 00:09:19,280 --> 00:09:21,000 Speaker 1: But but what I want to ask you is do 169 00:09:21,040 --> 00:09:23,679 Speaker 1: you think that will ever come to pass that the 170 00:09:23,679 --> 00:09:26,000 Speaker 1: big super funds will if you like, feel the vacuum 171 00:09:26,000 --> 00:09:28,000 Speaker 1: at the starter market. 172 00:09:29,960 --> 00:09:33,000 Speaker 2: They want to, and that because they're worried about when 173 00:09:33,080 --> 00:09:37,360 Speaker 2: people going through retirement mode and that's where their leakage is, 174 00:09:37,440 --> 00:09:41,199 Speaker 2: so that they gather funds in accumulation and lose funds 175 00:09:41,240 --> 00:09:44,280 Speaker 2: in retirement phase, and so they definitely want to. It's 176 00:09:44,320 --> 00:09:49,960 Speaker 2: down Outlook, this minister's was going to fix the advice mess. 177 00:09:50,000 --> 00:09:53,240 Speaker 2: I think his words, Well, it's still a mess. It's 178 00:09:53,240 --> 00:09:56,520 Speaker 2: fifteen five hundred advisors. There is a shortage of advisors 179 00:09:56,520 --> 00:10:01,040 Speaker 2: in Australia and there is no what I think, resolution 180 00:10:01,320 --> 00:10:04,120 Speaker 2: out there at the moment. Will they be able to 181 00:10:04,120 --> 00:10:08,200 Speaker 2: give impartial advice? No, is the answer. If you talk 182 00:10:08,240 --> 00:10:12,719 Speaker 2: to SeaBus about keeping your money in SeaBus, and that's 183 00:10:12,800 --> 00:10:14,280 Speaker 2: not impartial advice. 184 00:10:14,160 --> 00:10:16,320 Speaker 1: To what you're saying. If you said to the big fund, 185 00:10:17,200 --> 00:10:19,520 Speaker 1: you know, I'd like to get into investment property and 186 00:10:19,600 --> 00:10:23,000 Speaker 1: buy something they are not going to encourage, or you 187 00:10:23,040 --> 00:10:26,800 Speaker 1: would think because the money would live the fund, it's 188 00:10:26,880 --> 00:10:32,160 Speaker 1: very impartially. Yeah. Yeah, So with impartial advice, with independent advice, 189 00:10:32,920 --> 00:10:35,160 Speaker 1: and I'm not asking you to justify it. I'm asking you, 190 00:10:35,200 --> 00:10:37,960 Speaker 1: as a player in the industry to justify it. The 191 00:10:38,080 --> 00:10:43,040 Speaker 1: realistic figure of four to five thousand a year. How 192 00:10:43,080 --> 00:10:47,280 Speaker 1: does a good advisor justify that to the investor. 193 00:10:48,040 --> 00:10:50,840 Speaker 2: The amount of work that's required to run a small 194 00:10:50,920 --> 00:10:55,960 Speaker 2: portfolio probably why we don't do that. It's substantial. It 195 00:10:55,960 --> 00:10:59,719 Speaker 2: doesn't matter if you're looking after a client. Is it's 196 00:10:59,720 --> 00:11:01,680 Speaker 2: the small all the end or the bigger end on 197 00:11:01,720 --> 00:11:05,480 Speaker 2: a relative basis, The amount of work that doesn't justify 198 00:11:05,520 --> 00:11:10,959 Speaker 2: that increase. And so therefore, unfortunately it might sound a 199 00:11:10,960 --> 00:11:13,319 Speaker 2: lot to people four and a half to five thousand dollars. 200 00:11:13,600 --> 00:11:15,839 Speaker 2: I doubt that the firm is making much money out 201 00:11:15,840 --> 00:11:18,400 Speaker 2: of that, given what they've got to do with respect 202 00:11:18,440 --> 00:11:23,680 Speaker 2: to regulation compliance. And then when I say regulation, therese 203 00:11:23,679 --> 00:11:26,000 Speaker 2: are documents that have to be prepared and sent to 204 00:11:26,040 --> 00:11:31,800 Speaker 2: the client to meet the regulations reviews running the portfolio. 205 00:11:32,520 --> 00:11:34,400 Speaker 1: I think the point you made there is really interesting. 206 00:11:34,440 --> 00:11:36,280 Speaker 1: I'd never really thought about that. If someone comes in 207 00:11:36,320 --> 00:11:39,319 Speaker 1: the door with twenty two investments and their whole portfolio 208 00:11:39,800 --> 00:11:42,360 Speaker 1: is worth a million, and someone else comes in with 209 00:11:42,440 --> 00:11:45,480 Speaker 1: twenty two investments and the whole portfolio is worth ten million, 210 00:11:46,000 --> 00:11:47,560 Speaker 1: the amount of work isn't much different. 211 00:11:47,600 --> 00:11:47,800 Speaker 2: Is that? 212 00:11:47,800 --> 00:11:48,839 Speaker 1: The point you're making. 213 00:11:50,160 --> 00:11:52,600 Speaker 2: It naturally is more, But it's not that it's not 214 00:11:52,600 --> 00:11:53,000 Speaker 2: on it. 215 00:11:53,000 --> 00:11:57,439 Speaker 1: It's not ten times more. Yeah, yeah, I see, I see, yeah, Okay, 216 00:11:57,760 --> 00:12:00,600 Speaker 1: all right, But one other thing I want to explain 217 00:12:00,600 --> 00:12:03,320 Speaker 1: to people that are listening and are keen about getting advice. 218 00:12:03,400 --> 00:12:05,760 Speaker 1: And by the way, folks, I would always say this 219 00:12:06,559 --> 00:12:10,880 Speaker 1: good advice is terrific. Pay for it. I have no 220 00:12:10,920 --> 00:12:14,199 Speaker 1: problem paying for advice. I have no problem paying fees 221 00:12:14,240 --> 00:12:18,400 Speaker 1: for fund managers as on the assumption that they make 222 00:12:18,440 --> 00:12:24,760 Speaker 1: you money. If someone saves you anything more than their fee, 223 00:12:25,440 --> 00:12:28,520 Speaker 1: then you're in the money basically, and often I would 224 00:12:28,559 --> 00:12:31,800 Speaker 1: say to you, as something of a veteran investor this 225 00:12:31,840 --> 00:12:35,240 Speaker 1: stage myself, the earlier you get that advice, the more 226 00:12:35,240 --> 00:12:38,880 Speaker 1: important it is because it's structural, and some of that 227 00:12:38,920 --> 00:12:42,000 Speaker 1: advice could be around, for instance, the structure of an 228 00:12:42,040 --> 00:12:46,520 Speaker 1: investment or the tax specifics long term, which you probably 229 00:12:46,760 --> 00:12:50,080 Speaker 1: won't know unless you are happen to be in that 230 00:12:50,200 --> 00:12:53,520 Speaker 1: area professionally. I think that's the really important thing. And 231 00:12:53,559 --> 00:12:56,000 Speaker 1: they often see things as well that are common knowledge 232 00:12:56,000 --> 00:12:59,600 Speaker 1: among advisors but are not common knowledge to investors. Even 233 00:12:59,679 --> 00:13:03,800 Speaker 1: though we might be very much across investment and investment allocation, 234 00:13:04,360 --> 00:13:06,520 Speaker 1: the action we're put in together of a portfolio and 235 00:13:06,559 --> 00:13:09,040 Speaker 1: how that works with the tax office is actually what 236 00:13:09,160 --> 00:13:12,600 Speaker 1: really matters in terms of your returns. Okay, we're going 237 00:13:12,640 --> 00:13:14,480 Speaker 1: to come back in a moment. We'll take a short 238 00:13:14,520 --> 00:13:17,040 Speaker 1: break and we're going to take a look a little 239 00:13:17,080 --> 00:13:21,480 Speaker 1: deeper on who's who basically in the standscape for you 240 00:13:21,840 --> 00:13:25,760 Speaker 1: as a listener and how to optimize your way through 241 00:13:25,800 --> 00:13:38,720 Speaker 1: the financial advice system. Hello and welcome back to The 242 00:13:38,720 --> 00:13:42,480 Speaker 1: Australian's Money Puzzle podcast. I'm James Kirby, the Wealth editor 243 00:13:42,559 --> 00:13:45,280 Speaker 1: at The Australian and welcome aboard everybody. And one of 244 00:13:45,320 --> 00:13:48,080 Speaker 1: the things will you mentioned there I thought was really 245 00:13:48,080 --> 00:13:51,720 Speaker 1: interesting is so once upon a time, not that long ago, 246 00:13:52,000 --> 00:13:55,120 Speaker 1: say ten years ago or so, there was thirty thousand 247 00:13:56,920 --> 00:14:00,800 Speaker 1: advisors in Australia and now there's fifteen thousand point one 248 00:14:00,880 --> 00:14:05,560 Speaker 1: point two. The fifteen thousand advisors isn't growing, it's stalled 249 00:14:05,760 --> 00:14:08,800 Speaker 1: basically at that number. There have very few recruits. They're 250 00:14:08,840 --> 00:14:12,520 Speaker 1: really worried about this. I mean, professional associations are actually 251 00:14:12,520 --> 00:14:14,800 Speaker 1: recruiting in India trying to get people to come to 252 00:14:14,800 --> 00:14:18,520 Speaker 1: Australia to be financial advisors. At the same time there's 253 00:14:18,520 --> 00:14:23,680 Speaker 1: this huge demand, so more than just finding an advisor, 254 00:14:24,040 --> 00:14:26,120 Speaker 1: how do you get in the door to a good advisor? 255 00:14:26,520 --> 00:14:30,400 Speaker 1: What would you need to I'm going to put it 256 00:14:30,400 --> 00:14:32,480 Speaker 1: this way, what would you need to offer the advisor? 257 00:14:32,480 --> 00:14:34,520 Speaker 1: Because the point you made at the start there when 258 00:14:34,560 --> 00:14:36,680 Speaker 1: you were talking about a minimum, you were saying that 259 00:14:36,720 --> 00:14:39,640 Speaker 1: there's a minimum, but you're happy if the person is 260 00:14:39,640 --> 00:14:43,520 Speaker 1: aspiring to get to that minimum. 261 00:14:42,240 --> 00:14:43,960 Speaker 2: If we're confident that they will get there. 262 00:14:44,080 --> 00:14:49,080 Speaker 1: Yeah, And how would the investor persuade you? 263 00:14:50,360 --> 00:14:53,800 Speaker 2: Well, it's about their savings and earning's capacity, and we 264 00:14:53,880 --> 00:14:56,920 Speaker 2: look at the other asset based the other assets outside 265 00:14:56,960 --> 00:15:00,320 Speaker 2: of what they're potentially giving us that they've got. You know, 266 00:15:00,320 --> 00:15:04,080 Speaker 2: there's when we get into a competitive situation with another 267 00:15:04,160 --> 00:15:07,120 Speaker 2: firm and a client mentions that, and I think this 268 00:15:07,160 --> 00:15:10,040 Speaker 2: is a really important thing. Is I'm not going to 269 00:15:10,080 --> 00:15:13,760 Speaker 2: pitch why we're good or what we do, et cetera. 270 00:15:14,520 --> 00:15:17,080 Speaker 2: It's a personal thing. You know what we've got as 271 00:15:17,080 --> 00:15:21,280 Speaker 2: a skill set. And you know, I think being an 272 00:15:21,280 --> 00:15:25,480 Speaker 2: advisor is about being a very good listener. And therefore 273 00:15:25,520 --> 00:15:28,040 Speaker 2: I say to them, you have to decide and go 274 00:15:28,120 --> 00:15:30,560 Speaker 2: with the firm that you think you can best work with. 275 00:15:31,360 --> 00:15:36,960 Speaker 2: Very person outside of family, your asset basis is the 276 00:15:36,960 --> 00:15:39,360 Speaker 2: most important thing you've got, so that people have to 277 00:15:39,440 --> 00:15:42,840 Speaker 2: decide to work with a firm they think they is 278 00:15:42,880 --> 00:15:45,240 Speaker 2: the best thing they can work with. Now, we hope 279 00:15:45,280 --> 00:15:48,640 Speaker 2: that's us, but in many cases sometimes it's decide that's 280 00:15:48,680 --> 00:15:51,360 Speaker 2: another firm. And I think that's a very important thing. 281 00:15:51,400 --> 00:15:54,080 Speaker 2: So it's not about looking up Google and deciding, oh, 282 00:15:54,120 --> 00:15:57,960 Speaker 2: look here's one, go and see them. Yeah, they can 283 00:15:58,000 --> 00:15:59,720 Speaker 2: do the job. I really think this is you want 284 00:15:59,760 --> 00:16:01,560 Speaker 2: to have a long term relationship in the firm that 285 00:16:01,600 --> 00:16:03,080 Speaker 2: you're potentially going to see it wants to have a 286 00:16:03,080 --> 00:16:07,360 Speaker 2: long term a long term relationship as well, and you 287 00:16:07,400 --> 00:16:10,720 Speaker 2: therefore need to find the person or people that you 288 00:16:10,760 --> 00:16:11,840 Speaker 2: can best work with. 289 00:16:12,640 --> 00:16:16,040 Speaker 1: And what about let's say when you were in your 290 00:16:16,160 --> 00:16:19,360 Speaker 1: late twenties or thirties, you found an advisor. They were 291 00:16:19,400 --> 00:16:22,400 Speaker 1: pretty good, It was all pretty good, got to a point, 292 00:16:22,760 --> 00:16:25,920 Speaker 1: and then you're older and you say, I'm in a 293 00:16:25,960 --> 00:16:28,880 Speaker 1: different I'm actually in a different league now and this 294 00:16:28,960 --> 00:16:31,640 Speaker 1: person is very good. But it's the same thing every year. 295 00:16:32,200 --> 00:16:34,960 Speaker 1: I'm clearly missing I'm not getting this. I'm not getting 296 00:16:35,000 --> 00:16:37,040 Speaker 1: that he or she missed something this year that they 297 00:16:37,080 --> 00:16:40,400 Speaker 1: should have picked up, et cetera. What about that issue 298 00:16:40,440 --> 00:16:45,200 Speaker 1: of upscaling or switching to a more appropriate advisor. 299 00:16:46,600 --> 00:16:50,240 Speaker 2: That you know. Sometimes you do grow out of relationships, 300 00:16:50,240 --> 00:16:52,200 Speaker 2: don't you. And that's I think what you're talking about. 301 00:16:52,240 --> 00:16:56,280 Speaker 2: And that doesn't just rate financial advisors. It relates to accountants, lawyers, 302 00:16:56,280 --> 00:16:58,960 Speaker 2: et cetera. A firm that you go to. You were 303 00:16:58,960 --> 00:17:01,760 Speaker 2: talking about fund managers and fees before. Sometimes the big 304 00:17:01,800 --> 00:17:04,600 Speaker 2: firms they come out and say, we get feed discounts. Sorry, guys, 305 00:17:04,640 --> 00:17:07,400 Speaker 2: everyone gets feed discounts. Make sure that the advisor gets 306 00:17:07,400 --> 00:17:11,119 Speaker 2: feed discounts with the fund managers. That's nothing unique there. 307 00:17:11,440 --> 00:17:13,720 Speaker 2: The other thing the really big guys say is we 308 00:17:13,800 --> 00:17:16,959 Speaker 2: get access to product that others don't get. That's actually 309 00:17:16,960 --> 00:17:19,600 Speaker 2: not true. Some of the smaller firms get access to 310 00:17:20,520 --> 00:17:22,680 Speaker 2: things that the larger firms don't get because the larger 311 00:17:22,680 --> 00:17:25,239 Speaker 2: firms are too big. So it goes both ways. So 312 00:17:25,280 --> 00:17:26,920 Speaker 2: you just want to make sure there is a good 313 00:17:27,520 --> 00:17:31,879 Speaker 2: that you are able to access a broad, high quality 314 00:17:32,800 --> 00:17:37,280 Speaker 2: spectrum of solutions, multi asset class across the board and 315 00:17:37,359 --> 00:17:38,520 Speaker 2: at the right price. 316 00:17:39,040 --> 00:17:41,879 Speaker 1: Right and turning it on the other side of the 317 00:17:41,920 --> 00:17:45,840 Speaker 1: table in terms of the relationship. So a couple comes 318 00:17:45,840 --> 00:17:54,520 Speaker 1: in to an advisor and one person is clearly very numerous, conservative, capable, 319 00:17:54,880 --> 00:17:59,000 Speaker 1: and it's going to be a good client. Unfortunately, the 320 00:17:59,080 --> 00:18:03,520 Speaker 1: other part in the copple you can see just wants 321 00:18:03,520 --> 00:18:06,760 Speaker 1: to have, just wants to spend, also wants to just 322 00:18:07,240 --> 00:18:09,880 Speaker 1: knock it out of the park and find a ten bagger. 323 00:18:12,280 --> 00:18:15,119 Speaker 1: Then you have, and let's make it even more interesting. 324 00:18:15,440 --> 00:18:19,160 Speaker 1: Someone told you that that there are the point of divorce. 325 00:18:20,840 --> 00:18:21,080 Speaker 2: Yeah. 326 00:18:21,440 --> 00:18:24,359 Speaker 1: The point I'm making here is the client changes on 327 00:18:24,400 --> 00:18:28,200 Speaker 1: you too, I'm sure absolutely, and how do you deal 328 00:18:28,200 --> 00:18:28,359 Speaker 1: with that? 329 00:18:28,720 --> 00:18:30,679 Speaker 2: So one thing we have is that everyone has to 330 00:18:30,680 --> 00:18:32,920 Speaker 2: do a risk profile. And one thing we do, and 331 00:18:32,960 --> 00:18:35,560 Speaker 2: we disclose this to the client, is we used to 332 00:18:35,560 --> 00:18:38,480 Speaker 2: think we'd invested DNA, which has an embedded psychometric test 333 00:18:38,520 --> 00:18:40,679 Speaker 2: in it, so we can sort of sc see them, 334 00:18:40,760 --> 00:18:44,479 Speaker 2: and that's fully disclosed to the client. So we can 335 00:18:44,520 --> 00:18:47,000 Speaker 2: see their stress points and what they rely on when 336 00:18:47,000 --> 00:18:49,359 Speaker 2: they're under stress. And so it's making sure there's the 337 00:18:49,440 --> 00:18:52,399 Speaker 2: right advisor is aligned to the right client. 338 00:18:53,119 --> 00:18:56,920 Speaker 1: Do the psychometric tests in your experience? Are they reliable? 339 00:18:57,600 --> 00:18:59,399 Speaker 2: It's amazing they are. 340 00:18:59,560 --> 00:19:01,679 Speaker 1: Yeah, I had this many times, but I wanted to 341 00:19:01,680 --> 00:19:04,840 Speaker 1: ask you they're very reliable. Yeah, okay, And I think in. 342 00:19:04,800 --> 00:19:06,639 Speaker 2: One client in particular I sort of had in my 343 00:19:06,640 --> 00:19:08,960 Speaker 2: mind after I've met him, X is going to look 344 00:19:09,000 --> 00:19:11,840 Speaker 2: after him. And back came the test and I was like, WHOA, 345 00:19:12,000 --> 00:19:14,199 Speaker 2: I was wrong there. I've got to go in a 346 00:19:14,240 --> 00:19:18,240 Speaker 2: totally different direction. And that's really important, really important, And 347 00:19:18,840 --> 00:19:21,200 Speaker 2: you know it's sometimes in a relationship, when you have couples, 348 00:19:21,240 --> 00:19:26,600 Speaker 2: you don't realize that one is definitely stronger personality and 349 00:19:27,320 --> 00:19:31,159 Speaker 2: with respect to financial literacy than the other. And in 350 00:19:31,200 --> 00:19:35,199 Speaker 2: that case sometimes you realize that the other part of 351 00:19:35,200 --> 00:19:37,480 Speaker 2: the couple. You've got a dentist is next to it 352 00:19:37,480 --> 00:19:38,920 Speaker 2: to us, and they probably prefer to go to the 353 00:19:39,000 --> 00:19:40,040 Speaker 2: dentist and come to us. 354 00:19:41,040 --> 00:19:43,840 Speaker 1: Yes, And that thing that people can be terrific. Someone 355 00:19:43,840 --> 00:19:48,720 Speaker 1: could be a terrific commercial lawyer and a catastrophic investor. 356 00:19:48,760 --> 00:19:50,560 Speaker 1: I'm sure you come across that all the time. 357 00:19:51,440 --> 00:19:53,919 Speaker 2: I always say, if we've and I think this is 358 00:19:54,240 --> 00:19:56,760 Speaker 2: something which is really important as well. And I know 359 00:19:56,840 --> 00:20:00,359 Speaker 2: that a lot of the better advisors, it's especially on 360 00:20:00,440 --> 00:20:03,720 Speaker 2: your list, would do exactly this as well. When you 361 00:20:03,760 --> 00:20:06,919 Speaker 2: know we are right, affirm does things a certain way, 362 00:20:06,920 --> 00:20:09,480 Speaker 2: and if someone comes in and wants as always looking 363 00:20:09,480 --> 00:20:12,240 Speaker 2: for that ten bagger, as you put it, I would 364 00:20:12,320 --> 00:20:15,000 Speaker 2: introduce them to somebody else. You know, we are as 365 00:20:15,080 --> 00:20:17,919 Speaker 2: iways say, we're a service about keeping wealthy people wealthy, 366 00:20:18,760 --> 00:20:21,520 Speaker 2: and I think that's and I think another most of 367 00:20:21,520 --> 00:20:23,320 Speaker 2: the other firms on that list, I think if they 368 00:20:23,359 --> 00:20:25,160 Speaker 2: didn't feel the client was right for them, they would 369 00:20:25,359 --> 00:20:26,159 Speaker 2: introduce them. 370 00:20:26,000 --> 00:20:29,720 Speaker 1: On yes and that and hope and hopefully also making 371 00:20:29,760 --> 00:20:32,840 Speaker 1: them wealthy on their way, which of course would be 372 00:20:33,000 --> 00:20:35,840 Speaker 1: what a lot of listeners would be most keen upon, 373 00:20:35,960 --> 00:20:39,640 Speaker 1: I expect in terms of a mathematical breakdown. Okay, one 374 00:20:39,680 --> 00:20:43,000 Speaker 1: not thing on this. You mentioned you were in LA 375 00:20:43,160 --> 00:20:45,959 Speaker 1: at a financial advisor conference. You mentioned there was a 376 00:20:45,960 --> 00:20:50,159 Speaker 1: female panel. Do you know that my numbers on this 377 00:20:50,240 --> 00:20:55,640 Speaker 1: are as followers in Australia, among the fifteen five hundred advisors, 378 00:20:56,160 --> 00:21:01,159 Speaker 1: twenty three percent only our female And on the list 379 00:21:02,359 --> 00:21:05,080 Speaker 1: that came out today, the top one hundred and fifty 380 00:21:05,080 --> 00:21:09,639 Speaker 1: top financial Advisors list in the Australian only thirteen percent 381 00:21:10,359 --> 00:21:14,359 Speaker 1: are female. And that number hasn't moved much since we started. 382 00:21:15,280 --> 00:21:17,520 Speaker 1: I would have thought it would have, and I would 383 00:21:17,560 --> 00:21:22,280 Speaker 1: have thought that as an area it would have had 384 00:21:22,320 --> 00:21:27,720 Speaker 1: a much more sort of natural gender balanced by now, 385 00:21:27,840 --> 00:21:30,800 Speaker 1: without any need for encouragement I would have thought of 386 00:21:30,800 --> 00:21:33,399 Speaker 1: it had just happened, but it hasn't at all. Any 387 00:21:34,119 --> 00:21:35,760 Speaker 1: theories from you as to why. 388 00:21:36,160 --> 00:21:38,320 Speaker 2: It gets back to things like the Royal Commission. Now, 389 00:21:38,520 --> 00:21:42,480 Speaker 2: I very senior female fand manager Tom in Sydney was 390 00:21:42,520 --> 00:21:46,399 Speaker 2: telling me that she was at her daughter's school. She 391 00:21:46,560 --> 00:21:49,119 Speaker 2: was asked to host, you know, the careers night to 392 00:21:49,320 --> 00:21:52,919 Speaker 2: go into finance. You're right, and so she sort of 393 00:21:52,960 --> 00:21:55,600 Speaker 2: turned up there to host all these young girls and 394 00:21:55,880 --> 00:21:57,639 Speaker 2: that wanted to go on and finance. Not one person 395 00:21:57,720 --> 00:22:03,640 Speaker 2: turned up a leading Sydney private school. And I think 396 00:22:03,680 --> 00:22:06,840 Speaker 2: that at the image of the industry still is it 397 00:22:06,960 --> 00:22:09,240 Speaker 2: front of mind? You know, you want to go and 398 00:22:09,280 --> 00:22:11,400 Speaker 2: do commerce. You've sort of got at the end of mind. 399 00:22:11,400 --> 00:22:12,560 Speaker 2: You want to be a lawyer, you do want it, 400 00:22:12,560 --> 00:22:20,040 Speaker 2: to be an accountant. It's not we're still becoming a profession. 401 00:22:20,320 --> 00:22:23,080 Speaker 2: I think we're well down that road. Have we got 402 00:22:23,119 --> 00:22:27,520 Speaker 2: that to that level yet? It's when society accepts us 403 00:22:27,600 --> 00:22:30,440 Speaker 2: as such that's when you become a profession. But I 404 00:22:30,480 --> 00:22:32,880 Speaker 2: don't think we're front of mind enough for a lot 405 00:22:32,880 --> 00:22:35,440 Speaker 2: of younger people. Oh, I want to become a financial advisor, 406 00:22:36,640 --> 00:22:38,159 Speaker 2: and I think that's one of the problems in the 407 00:22:38,200 --> 00:22:42,920 Speaker 2: second issue is some of that the bad reputation that 408 00:22:42,960 --> 00:22:45,520 Speaker 2: we had from years ago, and that was terrible. Whilst 409 00:22:45,720 --> 00:22:48,320 Speaker 2: I think we've made incredible inroads in cleaning that up, 410 00:22:48,640 --> 00:22:50,399 Speaker 2: you know, and I think that's there're two of the 411 00:22:50,440 --> 00:22:51,880 Speaker 2: things that have been an issue now. 412 00:22:52,160 --> 00:22:52,359 Speaker 1: You know. 413 00:22:53,920 --> 00:22:56,880 Speaker 2: We train young women and bring them up, and it's 414 00:22:57,000 --> 00:23:02,000 Speaker 2: very important that we do that. It's the alternative. 415 00:23:02,160 --> 00:23:04,840 Speaker 1: Obviously, listeners to the show be familiar with many female 416 00:23:04,880 --> 00:23:06,720 Speaker 1: advisors that I have on the show all the time. 417 00:23:07,160 --> 00:23:09,880 Speaker 1: Sally Winn, of course from Shadforth is on the list 418 00:23:10,400 --> 00:23:12,920 Speaker 1: as usual. She's another veteran on the list this year, 419 00:23:13,320 --> 00:23:17,520 Speaker 1: and the Shadforth group really really lifted their presence on 420 00:23:18,200 --> 00:23:21,879 Speaker 1: the list this year. The top, of course is Morgan 421 00:23:21,960 --> 00:23:28,080 Speaker 1: Stanley once again, Garth Hugh a bradmanesque performance, a Lewis 422 00:23:28,119 --> 00:23:31,320 Speaker 1: Hamilton like performance in the list. He's number one are 423 00:23:31,480 --> 00:23:33,760 Speaker 1: for the fifth year in a row. And the number 424 00:23:33,840 --> 00:23:36,680 Speaker 1: one highest ranking woman is also from Morgan Stanley. That's 425 00:23:36,760 --> 00:23:40,720 Speaker 1: Kathy Ding in their at number eighteen. So congratulations to 426 00:23:41,440 --> 00:23:43,760 Speaker 1: all those. Okay, folks, we'll take a short break and 427 00:23:43,800 --> 00:23:46,040 Speaker 1: we'll be back with some really good questions in a month, 428 00:23:53,400 --> 00:23:56,680 Speaker 1: so welcome back to The Australian's Money Puzzle podcast, James 429 00:23:56,760 --> 00:24:00,439 Speaker 1: Kirkby talking to Will Hamilton. Okay, we have a few questions. Okay, 430 00:24:00,480 --> 00:24:02,280 Speaker 1: I why don't you read the first one because the 431 00:24:02,320 --> 00:24:05,520 Speaker 1: second one I'm more across. Yeah, from Emma. 432 00:24:05,640 --> 00:24:09,040 Speaker 2: So, Emma asks heard you mention a request for dollar 433 00:24:09,080 --> 00:24:11,280 Speaker 2: cost averaging in the last episode, and I'd like to 434 00:24:11,320 --> 00:24:14,080 Speaker 2: ask for this topic to be explained. I've recently set 435 00:24:14,160 --> 00:24:17,400 Speaker 2: up a monthly direct debit investment into high growth ETF 436 00:24:17,400 --> 00:24:19,720 Speaker 2: for my niece and nephew and would like them to 437 00:24:19,800 --> 00:24:23,159 Speaker 2: understand how this works over time, so you would do 438 00:24:23,280 --> 00:24:26,359 Speaker 2: much better than I could. So, Emma, the thing is 439 00:24:26,880 --> 00:24:29,480 Speaker 2: saying in the markets that time in the market, not 440 00:24:29,600 --> 00:24:32,800 Speaker 2: timing the market, and if you can get the top 441 00:24:32,920 --> 00:24:36,600 Speaker 2: or the bottom, you're better than anyone else I know. 442 00:24:36,800 --> 00:24:40,000 Speaker 2: So the thing is it's about averaging in and what 443 00:24:40,040 --> 00:24:43,240 Speaker 2: you're doing is exactly what you're doing is a monthly 444 00:24:43,320 --> 00:24:46,160 Speaker 2: direct debit, which I presum is going in every month 445 00:24:46,200 --> 00:24:50,000 Speaker 2: as your averaging a certain amount one hundred dollars, one 446 00:24:50,000 --> 00:24:53,680 Speaker 2: thousand dollars whatever that is into this ETF. And that's 447 00:24:53,720 --> 00:24:56,119 Speaker 2: dollar cost averaging because you might be going in at 448 00:24:56,160 --> 00:24:58,240 Speaker 2: a dollar one month and a dollar ten the next month, 449 00:24:58,280 --> 00:25:00,720 Speaker 2: and at ninety six cents the next month, and you're 450 00:25:00,760 --> 00:25:03,960 Speaker 2: averaging in with those amounts, and that's still a cost everaging. 451 00:25:04,760 --> 00:25:06,960 Speaker 1: In a way. ETFs are almost like that, weren't they 452 00:25:07,040 --> 00:25:10,320 Speaker 1: that it was in that that they just follow the market. 453 00:25:10,560 --> 00:25:13,480 Speaker 1: And if you, Emma, if you just put in the 454 00:25:13,560 --> 00:25:18,160 Speaker 1: same amount of money every month, then a month will 455 00:25:18,480 --> 00:25:21,359 Speaker 1: happen where the market is overpriced and you've paid too much, 456 00:25:21,400 --> 00:25:24,280 Speaker 1: but you will balance that off by the month you 457 00:25:24,400 --> 00:25:27,200 Speaker 1: buy when things are really low and nobody's going in, 458 00:25:27,240 --> 00:25:30,840 Speaker 1: but you're going in, and that habit basically gives you 459 00:25:30,880 --> 00:25:34,560 Speaker 1: the consistency. It's Look, it's a very strong theory, which 460 00:25:34,840 --> 00:25:37,840 Speaker 1: it's very hard to knock. You could. The only thing 461 00:25:37,880 --> 00:25:41,160 Speaker 1: you can do is there are occasions through history where 462 00:25:41,200 --> 00:25:45,320 Speaker 1: the market doesn't return, rebound or revert to the mean, 463 00:25:45,400 --> 00:25:48,639 Speaker 1: and it's tough during those times, that's for sure. But 464 00:25:48,680 --> 00:25:50,840 Speaker 1: it's very strong principle and in a way, at its 465 00:25:50,960 --> 00:25:55,119 Speaker 1: very best, our superinnovation system where you must put in 466 00:25:55,240 --> 00:26:00,520 Speaker 1: so much per month into super by low is it 467 00:26:00,560 --> 00:26:05,920 Speaker 1: actually okay? We will move on to Greg last weekend 468 00:26:06,119 --> 00:26:09,560 Speaker 1: in the Weekend Australian with regard to potentially investing in 469 00:26:09,600 --> 00:26:13,600 Speaker 1: the new Trump American market. You mentioned a couple of 470 00:26:13,760 --> 00:26:18,080 Speaker 1: Vanguard ETFs. I've since discarded the broadsheet, but I mean, 471 00:26:18,440 --> 00:26:20,960 Speaker 1: I'm sure you mean the single issue of the paper. Greg. 472 00:26:21,359 --> 00:26:25,119 Speaker 1: Can you please remind me what they are happy to 473 00:26:25,200 --> 00:26:28,840 Speaker 1: remind everybody that I will not and do not in 474 00:26:28,920 --> 00:26:32,880 Speaker 1: any way emphasis one product over another, or one advisor 475 00:26:32,920 --> 00:26:35,159 Speaker 1: over another, or anything like that. And I'll tell you 476 00:26:35,160 --> 00:26:39,320 Speaker 1: a funny story there. There's ETFs index funds you can 477 00:26:39,560 --> 00:26:41,800 Speaker 1: on American markets. Of course you should be in there. 478 00:26:41,880 --> 00:26:44,160 Speaker 1: I'm in there, and I think any advisor, at least 479 00:26:44,200 --> 00:26:47,200 Speaker 1: any investor who wants access or exposure to the US, 480 00:26:47,240 --> 00:26:50,080 Speaker 1: it's a great way in. But here's the thing, and 481 00:26:50,240 --> 00:26:53,359 Speaker 1: every ETF product maker in Australia will be annoyed on 482 00:26:53,440 --> 00:26:56,679 Speaker 1: what I'm about to say. They're all the same. I 483 00:26:56,800 --> 00:27:01,840 Speaker 1: had lunch with a with an employee of a major 484 00:27:02,600 --> 00:27:05,720 Speaker 1: ETF player and they said, listen, we're like we are 485 00:27:05,880 --> 00:27:11,119 Speaker 1: like the laundry detergent salesmen in the nineteen seventies. They're 486 00:27:11,160 --> 00:27:13,639 Speaker 1: all more or less the same, and we have to 487 00:27:13,680 --> 00:27:17,680 Speaker 1: distinguish ourselves in some fashion. So keep that in mind. 488 00:27:18,119 --> 00:27:22,600 Speaker 1: There's Vanguard, There's Eye Shares, there's Betas Shares, there is 489 00:27:22,800 --> 00:27:26,240 Speaker 1: global X and others. And I am happy to say 490 00:27:26,240 --> 00:27:28,280 Speaker 1: that as long as you get started with one of them, 491 00:27:28,600 --> 00:27:31,840 Speaker 1: the difference in performance to you over a long period 492 00:27:31,880 --> 00:27:35,600 Speaker 1: of time would be infinitesimal. I imagine between the ETFs, 493 00:27:35,680 --> 00:27:38,760 Speaker 1: because the promise is that they exactly replicate the market 494 00:27:38,800 --> 00:27:41,720 Speaker 1: that they're buying in. I'm talking about traditional ETFs here strictly, 495 00:27:42,480 --> 00:27:47,000 Speaker 1: I'm not talking about ETF Greg. I hope that's all clear. Okay, 496 00:27:47,359 --> 00:27:50,800 Speaker 1: A question from Dusty who is I'm guessing male in 497 00:27:50,880 --> 00:27:54,720 Speaker 1: the way of Dusty Slim, Dusty or maybe Dusty Springfield. 498 00:27:54,760 --> 00:27:57,359 Speaker 1: Who knows. We'll just have to guess. Anyway, you might 499 00:27:57,400 --> 00:27:58,160 Speaker 1: read the question. 500 00:27:58,720 --> 00:28:00,640 Speaker 2: That's the yes. Since the election and when Trump has 501 00:28:00,680 --> 00:28:03,639 Speaker 2: been nominating a number of people for a second term 502 00:28:03,920 --> 00:28:07,240 Speaker 2: for the secretaries. Most recently, Robert F. Kennedy Junior was 503 00:28:07,280 --> 00:28:10,080 Speaker 2: nominated as as Secretary for Health and Human Services. The 504 00:28:10,119 --> 00:28:12,640 Speaker 2: following day, most of the vaccine makers stocks went down 505 00:28:12,680 --> 00:28:16,919 Speaker 2: because RFK Junior stants on vaccines. If he ends up 506 00:28:16,920 --> 00:28:19,840 Speaker 2: getting the stocks. What are your thoughts on overall healthcare sector, 507 00:28:20,000 --> 00:28:25,200 Speaker 2: especially for our local blue chips yet it's not financial advice, 508 00:28:25,240 --> 00:28:28,680 Speaker 2: but I think you know, with these things, you often 509 00:28:28,720 --> 00:28:32,600 Speaker 2: get a kick down and you get an overreaction. Things 510 00:28:32,600 --> 00:28:37,200 Speaker 2: balance out if they're quality and they've got a product 511 00:28:37,200 --> 00:28:39,760 Speaker 2: that saves lives, whatever, it's going to continue on its 512 00:28:39,840 --> 00:28:43,440 Speaker 2: merry way. But just yeh, expect an overreaction, I think 513 00:28:43,560 --> 00:28:45,040 Speaker 2: is probably what you usually get. 514 00:28:45,480 --> 00:28:48,320 Speaker 1: So when this stever advice is information dusty and all 515 00:28:48,320 --> 00:28:54,040 Speaker 1: the dusties out there having said that, or FK Junior, who, 516 00:28:54,080 --> 00:28:57,760 Speaker 1: by the way, whatever else he is, he's pretty healthy looking, 517 00:28:57,840 --> 00:29:01,840 Speaker 1: he's seventy one. You know, he's openly skeptical about vaccines. 518 00:29:02,160 --> 00:29:05,640 Speaker 1: He is going to get that post. CSL has fallen 519 00:29:06,240 --> 00:29:08,440 Speaker 1: sharply in recent times, and it's supposed to be a 520 00:29:08,440 --> 00:29:10,680 Speaker 1: blue chip that doesn't fall sharply. It's not having a 521 00:29:10,720 --> 00:29:13,800 Speaker 1: pretty good run at the moment anyway, and this would 522 00:29:13,800 --> 00:29:17,360 Speaker 1: not seem to be good for them in the assuming 523 00:29:17,600 --> 00:29:20,120 Speaker 1: it happens in the in the short and medium term. 524 00:29:20,240 --> 00:29:23,680 Speaker 1: I think that is a reasonable observation. But as you're saying, well, 525 00:29:24,040 --> 00:29:27,520 Speaker 1: it is a quality stock, and quality stocks should should 526 00:29:27,720 --> 00:29:31,280 Speaker 1: see it through whatever challenging is put to them or 527 00:29:31,280 --> 00:29:34,840 Speaker 1: put in front of them. And you think, yeah, and 528 00:29:35,320 --> 00:29:38,200 Speaker 1: is there any other Australian stock that would be exposed 529 00:29:38,200 --> 00:29:43,640 Speaker 1: to be like to the idiosyncratic thoughts of Robert F. 530 00:29:43,760 --> 00:29:45,280 Speaker 1: Kennedy Junior. 531 00:29:46,160 --> 00:29:47,959 Speaker 2: That's the big one that stands out, and boy does 532 00:29:48,000 --> 00:29:48,640 Speaker 2: it stand out. 533 00:29:49,360 --> 00:29:52,800 Speaker 1: Yeah right, okay, very good. Well, thank you for listening today, folks, 534 00:29:52,840 --> 00:29:56,560 Speaker 1: Thank you, will, thank you, James. Always great to have 535 00:29:56,600 --> 00:29:58,840 Speaker 1: you on the show. Well done for being on the list, 536 00:29:58,960 --> 00:30:01,680 Speaker 1: for being for one of the stayers on the list. 537 00:30:02,000 --> 00:30:03,840 Speaker 1: There's very few of them. Actually, I looked at the 538 00:30:03,880 --> 00:30:07,400 Speaker 1: two seventeen list, which is only fifty people. I'm looking 539 00:30:07,400 --> 00:30:09,360 Speaker 1: at it all week. I'm dizzy from looking at the 540 00:30:09,360 --> 00:30:13,720 Speaker 1: list because I've been doing it and it's quite different 541 00:30:14,240 --> 00:30:17,040 Speaker 1: now with one hundred and fifty. But well done to 542 00:30:17,080 --> 00:30:18,800 Speaker 1: anyone who was on that list. And if you are 543 00:30:18,840 --> 00:30:22,040 Speaker 1: considering getting an advisor, well I'm certainly happy to say 544 00:30:22,200 --> 00:30:25,440 Speaker 1: to put that list in front of you. Okay. Now, 545 00:30:25,480 --> 00:30:28,920 Speaker 1: today's show was produced by Leah Samuel Gluu. Thank you 546 00:30:29,040 --> 00:30:31,640 Speaker 1: very much, Leah. And as I said at the start, 547 00:30:32,520 --> 00:30:37,920 Speaker 1: any correspondence issues, questions, complaints or if you are having 548 00:30:37,960 --> 00:30:41,040 Speaker 1: problems with big super funds, let me know. The money 549 00:30:41,040 --> 00:30:44,200 Speaker 1: puzzle at the Australian dot com, dot au talk to 550 00:30:44,240 --> 00:30:44,640 Speaker 1: you soon.