Speaker 1: Hello, and welcome to The Australian's Money Puzzle podcast. I'm
Speaker 1: James Kirby, Wealth editor at the Australia. Welcome aboard everybody.
Speaker 1: It's one of my favorite shows of the year. It's
Speaker 1: the release of the top financial Advisor's List, which we've
Speaker 1: been doing every year a modest total of fifty advisors.
Speaker 1: It is now expanded this year this morning out this
Speaker 1: morning to one hundred and fifty advisors, the top one
Speaker 1: hundred and fifty advisors in the market, and it's quite
Speaker 1: the enterprise. It's produced in conjunction with the Baron's Investment
Speaker 1: magazine of New York and actually they do all the calculations,
Speaker 1: so all I have to do in tandem with the
Speaker 1: Deal editor of the Deal magazine, which is where you'll
Speaker 1: find the list, or you can find it online. Helen
Speaker 1: Trinker puts it all together. And I know a lot
Speaker 1: of people on the list at this stage, and some
Speaker 1: of them of course have been on the Money Puzzle.
Speaker 1: So I want to actually today give you a really
Speaker 1: good guide about financial advice, about how it works, how
Speaker 1: to find it, and the landscaper within it. Just before
Speaker 1: I do one thing I want to mention lots of
Speaker 1: response to the episode about big super funds behaving badly,
Speaker 1: and part of that was triggered by your own correspondence
Speaker 1: with me where you had issues about being having trouble
Speaker 1: with big super funds and how they dealt with you.
Speaker 1: If you have let us know the money puzzle at
Speaker 1: the Australian dot com dot au. Send in those emails.
Speaker 1: I'd like to see them and we can actually we
Speaker 1: can get a response much faster than you can get
Speaker 1: a response. Let's put it that way. Okay, Now to
Speaker 1: join me today, I have an advisor who's actually been
Speaker 1: one of the handful of advisors who's been on this
Speaker 1: Top Advice's list since the day we launched in two seventeen.
Speaker 1: His name is Will Hamilton. He is at Hamilton Wealth Partners,
Speaker 1: regular on the show How are You Will?
Speaker 2: Very well, thank you, James, and thanks for having me.
Speaker 1: Good to have you, Good to have you. So every
Speaker 1: year since two seventeen, feeling the pressure are you?
Speaker 2: It's an honor to be honest, to be honest, and
Speaker 2: that these things are a team effort. You We've got
Speaker 2: a great team here.
Speaker 1: So yeah, well, I tell you what. Putting out a
Speaker 1: list of one hundred and fifty advisors. Is the team effort,
Speaker 1: especially these days when you have print and digital and
Speaker 1: podcasts and the joint venture within New York Publication. I
Speaker 1: can tell you it's no easy task, and I'm happy
Speaker 1: to say it seems to be out there all bells
Speaker 1: ringing today, So that was really good. There's a couple
Speaker 1: of things I wanted to talk about, and the listeners
Speaker 1: will be coming in at various angles. Some of them
Speaker 1: will no advice all to well. Some of them might
Speaker 1: have started. If I go on if I know nothing,
Speaker 1: and I go on to Google, which is what most
Speaker 1: people do to start anything, and they say, how do
Speaker 1: I find a financial advisor? The first thing I'm going
Speaker 1: to get is five or six people selling services. That's
Speaker 1: the first thing I'm going to see, okay, because they're sponsored.
Speaker 1: And then I'm going to see various sites. But I
Speaker 1: think generally at the very start, people should, perhaps if
Speaker 1: you know nothing at all, start with money Smart, which
Speaker 1: is often where people should start. The the ASSEIC website.
Speaker 1: That is just to check. That's just to check whether
Speaker 1: the advisor that your friend at the barbecue said was great,
Speaker 1: whether they're actually registered, and whether there are any whether
Speaker 1: they basically tick the elementary boxes and then I would
Speaker 1: hope the people on the show would be a bit
Speaker 1: more advanced than that, and perhaps for a start they
Speaker 1: could look at this list. There's one hundred and fifty
Speaker 1: names there, and that is quite a list I from
Speaker 1: all around the nation now. But one thing that struck
Speaker 1: me will like almost straight away was the whole game
Speaker 1: is moving up market. That financial advice. I mean, in
Speaker 1: a way, it would always be an up market activity,
Speaker 1: but in Australia because it costs so much to do it.
Speaker 1: I saw a survey during the week that said fifty
Speaker 1: percent fifty percent of the fee for your financial advices
Speaker 1: administration costs. So it seems like the whole thing is
Speaker 1: moving up market. But it seems that it's seriously moving
Speaker 1: up market now, like it really is starting to be.
Speaker 1: The companies that are on the list, even the brands
Speaker 1: that are on the list, if they have multiple arms,
Speaker 1: it's the up market arm of their of their advice
Speaker 1: activity that gets the ratings. Basically, so is that what's happening.
Speaker 2: Look that I'm not going to mention names, but some
Speaker 2: of the larger firms have pushed right up to a
Speaker 2: minimum five million dollars and yeah, that's a commercial call
Speaker 2: on their part. It's in many cases that decision has
Speaker 2: been made in Hong Kong or New York or something
Speaker 2: like that. And yeah, they're good firms, but that's yeah,
Speaker 2: so when you talk about it, it's a gone up marker. Yes,
Speaker 2: some of those firms have done that. We are wholesale only,
Speaker 2: so we have to meet these sophisticated and invest the tests.
Speaker 2: With any client, we will take less, but we also
Speaker 2: have a minimum that we think is important that we
Speaker 2: can grow it to that. Now that's a commercial decision
Speaker 2: as well, and you need to look at the overall
Speaker 2: revenue you can bring in and the costs to service
Speaker 2: that client. But you are right, we don't like to
Speaker 2: say no to any client, and if we can't service them,
Speaker 2: we like to introduce and introduce them to a firm
Speaker 2: that can look after them. And we've been working very
Speaker 2: closely with a firm for about a decade, but they've
Speaker 2: even moved up. Yes, so we've sort of had to
Speaker 2: go and source another firm in the retail space where
Speaker 2: they can look after retail clients and some of those
Speaker 2: smaller ones. Because it's important, as you said, go and
Speaker 2: Google and they then send send something through your website,
Speaker 2: but we want to make sure that we can point
Speaker 2: them in the right direction, even if we're not right
Speaker 2: for them.
Speaker 1: And I see that there's variations around this, but in
Speaker 1: terms of what you might expect to pay ongoing annually
Speaker 1: for financial advice, we're looking at something in the order
Speaker 1: of four and a half to five and a half
Speaker 1: thousand a year on average. Now that's a lot. You
Speaker 1: want to be making lots of money basically for that.
Speaker 1: So one thing I wanted to just put to you
Speaker 1: will before we talk about the landscape out there for
Speaker 1: top advisors or for very good advisors for listeners who
Speaker 1: just want to get started. It seems to me there
Speaker 1: was two sort of promises about if we take it
Speaker 1: that the whole financial advice market has moved up upscale
Speaker 1: to the upper end of the mass affluent. And you
Speaker 1: mentioned how your wholesale and a number on the list
Speaker 1: are wholesale, but the majority aren't. By the way, for
Speaker 1: what it's worth, folks, the majority are not wholesale only.
Speaker 1: But by that you must be a sophisticated investor. You
Speaker 1: must have two point five million in net assets. But
Speaker 1: the promise for everyday investors are start investors. Was that
Speaker 1: there was going to be sort of two things that
Speaker 1: might save the day. One was digital advice, Digiti advice,
Speaker 1: and the other was that the big super funds would
Speaker 1: come in and offer advice of a type. Now on
Speaker 1: the digit advice side really never came to pass. It
Speaker 1: certainly didn't come to pass in our market in any way.
Speaker 1: I know the stock spot which has been has a
Speaker 1: course now owned by the big Murray Korean fund and
Speaker 1: they are Digiti advice specialists. But it didn't really get
Speaker 1: It didn't really take off, did it.
Speaker 2: Look that's a really good point. I was at the
Speaker 2: future Proof conference in Los Angeles a few months ago
Speaker 2: and they had this panel of female advisors actually and
Speaker 2: talking to them look back five years and what was
Speaker 2: being pushed five years ago versus you know what has
Speaker 2: and what hasn't taken off? And they said there were
Speaker 2: two things. One was ESG yeah, I know this is
Speaker 2: in America. And the second one was exactly that online
Speaker 2: b it Digiti advice, be it online platforms for investing.
Speaker 1: Low cost, low touch financial advice. So it's come through
Speaker 1: a little bit, but it hasn't come through on a
Speaker 1: sort of mass fashion that was expected, and the other
Speaker 1: part was the big superannuation funds. Now the big superannuation funds,
Speaker 1: their efforts to enter financial advice you might say, on
Speaker 1: their terms has stoled in Parliament. And the big issue
Speaker 1: is that they want, as they always want, they want
Speaker 1: to pool everything and so that you'll pay an advice fee,
Speaker 1: but it won't really reflect how much advice you have
Speaker 1: or how much you have in the bank or in
Speaker 1: the fund. This has been blocked if you like, by
Speaker 1: other parties in Parliament because it's not transparent. And the
Speaker 1: issue in big super as we know is the lack
Speaker 1: of transparency is becoming a bigger and bigger issue. And
Speaker 1: their timing is pretty bad to try and push this
Speaker 1: because we've just had a flurry of scandals basically in
Speaker 1: big super often linked with the fact that people couldn't
Speaker 1: see how their funds were going, couldn't get payments in
Speaker 1: the timeframe they expected, or even issues around on listed valuations.
Speaker 1: So we're talking about Sebus here, we're talking about Hester here.
Speaker 1: But but what I want to ask you is do
Speaker 1: you think that will ever come to pass that the
Speaker 1: big super funds will if you like, feel the vacuum
Speaker 1: at the starter market.
Speaker 2: They want to, and that because they're worried about when
Speaker 2: people going through retirement mode and that's where their leakage is,
Speaker 2: so that they gather funds in accumulation and lose funds
Speaker 2: in retirement phase, and so they definitely want to. It's
Speaker 2: down Outlook, this minister's was going to fix the advice mess.
Speaker 2: I think his words, Well, it's still a mess. It's
Speaker 2: fifteen five hundred advisors. There is a shortage of advisors
Speaker 2: in Australia and there is no what I think, resolution
Speaker 2: out there at the moment. Will they be able to
Speaker 2: give impartial advice? No, is the answer. If you talk
Speaker 2: to SeaBus about keeping your money in SeaBus, and that's
Speaker 2: not impartial advice.
Speaker 1: To what you're saying. If you said to the big fund,
Speaker 1: you know, I'd like to get into investment property and
Speaker 1: buy something they are not going to encourage, or you
Speaker 1: would think because the money would live the fund, it's
Speaker 1: very impartially. Yeah. Yeah, So with impartial advice, with independent advice,
Speaker 1: and I'm not asking you to justify it. I'm asking you,
Speaker 1: as a player in the industry to justify it. The
Speaker 1: realistic figure of four to five thousand a year. How
Speaker 1: does a good advisor justify that to the investor.
Speaker 2: The amount of work that's required to run a small
Speaker 2: portfolio probably why we don't do that. It's substantial. It
Speaker 2: doesn't matter if you're looking after a client. Is it's
Speaker 2: the small all the end or the bigger end on
Speaker 2: a relative basis, The amount of work that doesn't justify
Speaker 2: that increase. And so therefore, unfortunately it might sound a
Speaker 2: lot to people four and a half to five thousand dollars.
Speaker 2: I doubt that the firm is making much money out
Speaker 2: of that, given what they've got to do with respect
Speaker 2: to regulation compliance. And then when I say regulation, therese
Speaker 2: are documents that have to be prepared and sent to
Speaker 2: the client to meet the regulations reviews running the portfolio.
Speaker 1: I think the point you made there is really interesting.
Speaker 1: I'd never really thought about that. If someone comes in
Speaker 1: the door with twenty two investments and their whole portfolio
Speaker 1: is worth a million, and someone else comes in with
Speaker 1: twenty two investments and the whole portfolio is worth ten million,
Speaker 1: the amount of work isn't much different.
Speaker 2: Is that?
Speaker 1: The point you're making.
Speaker 2: It naturally is more, But it's not that it's not
Speaker 2: on it.
Speaker 1: It's not ten times more. Yeah, yeah, I see, I see, yeah, Okay,
Speaker 1: all right, But one other thing I want to explain
Speaker 1: to people that are listening and are keen about getting advice.
Speaker 1: And by the way, folks, I would always say this
Speaker 1: good advice is terrific. Pay for it. I have no
Speaker 1: problem paying for advice. I have no problem paying fees
Speaker 1: for fund managers as on the assumption that they make
Speaker 1: you money. If someone saves you anything more than their fee,
Speaker 1: then you're in the money basically, and often I would
Speaker 1: say to you, as something of a veteran investor this
Speaker 1: stage myself, the earlier you get that advice, the more
Speaker 1: important it is because it's structural, and some of that
Speaker 1: advice could be around, for instance, the structure of an
Speaker 1: investment or the tax specifics long term, which you probably
Speaker 1: won't know unless you are happen to be in that
Speaker 1: area professionally. I think that's the really important thing. And
Speaker 1: they often see things as well that are common knowledge
Speaker 1: among advisors but are not common knowledge to investors. Even
Speaker 1: though we might be very much across investment and investment allocation,
Speaker 1: the action we're put in together of a portfolio and
Speaker 1: how that works with the tax office is actually what
Speaker 1: really matters in terms of your returns. Okay, we're going
Speaker 1: to come back in a moment. We'll take a short
Speaker 1: break and we're going to take a look a little
Speaker 1: deeper on who's who basically in the standscape for you
Speaker 1: as a listener and how to optimize your way through
Speaker 1: the financial advice system. Hello and welcome back to The
Speaker 1: Australian's Money Puzzle podcast. I'm James Kirby, the Wealth editor
Speaker 1: at The Australian and welcome aboard everybody. And one of
Speaker 1: the things will you mentioned there I thought was really
Speaker 1: interesting is so once upon a time, not that long ago,
Speaker 1: say ten years ago or so, there was thirty thousand
Speaker 1: advisors in Australia and now there's fifteen thousand point one
Speaker 1: point two. The fifteen thousand advisors isn't growing, it's stalled
Speaker 1: basically at that number. There have very few recruits. They're
Speaker 1: really worried about this. I mean, professional associations are actually
Speaker 1: recruiting in India trying to get people to come to
Speaker 1: Australia to be financial advisors. At the same time there's
Speaker 1: this huge demand, so more than just finding an advisor,
Speaker 1: how do you get in the door to a good advisor?
Speaker 1: What would you need to I'm going to put it
Speaker 1: this way, what would you need to offer the advisor?
Speaker 1: Because the point you made at the start there when
Speaker 1: you were talking about a minimum, you were saying that
Speaker 1: there's a minimum, but you're happy if the person is
Speaker 1: aspiring to get to that minimum.
Speaker 2: If we're confident that they will get there.
Speaker 1: Yeah, And how would the investor persuade you?
Speaker 2: Well, it's about their savings and earning's capacity, and we
Speaker 2: look at the other asset based the other assets outside
Speaker 2: of what they're potentially giving us that they've got. You know,
Speaker 2: there's when we get into a competitive situation with another
Speaker 2: firm and a client mentions that, and I think this
Speaker 2: is a really important thing. Is I'm not going to
Speaker 2: pitch why we're good or what we do, et cetera.
Speaker 2: It's a personal thing. You know what we've got as
Speaker 2: a skill set. And you know, I think being an
Speaker 2: advisor is about being a very good listener. And therefore
Speaker 2: I say to them, you have to decide and go
Speaker 2: with the firm that you think you can best work with.
Speaker 2: Very person outside of family, your asset basis is the
Speaker 2: most important thing you've got, so that people have to
Speaker 2: decide to work with a firm they think they is
Speaker 2: the best thing they can work with. Now, we hope
Speaker 2: that's us, but in many cases sometimes it's decide that's
Speaker 2: another firm. And I think that's a very important thing.
Speaker 2: So it's not about looking up Google and deciding, oh,
Speaker 2: look here's one, go and see them. Yeah, they can
Speaker 2: do the job. I really think this is you want
Speaker 2: to have a long term relationship in the firm that
Speaker 2: you're potentially going to see it wants to have a
Speaker 2: long term a long term relationship as well, and you
Speaker 2: therefore need to find the person or people that you
Speaker 2: can best work with.
Speaker 1: And what about let's say when you were in your
Speaker 1: late twenties or thirties, you found an advisor. They were
Speaker 1: pretty good, It was all pretty good, got to a point,
Speaker 1: and then you're older and you say, I'm in a
Speaker 1: different I'm actually in a different league now and this
Speaker 1: person is very good. But it's the same thing every year.
Speaker 1: I'm clearly missing I'm not getting this. I'm not getting
Speaker 1: that he or she missed something this year that they
Speaker 1: should have picked up, et cetera. What about that issue
Speaker 1: of upscaling or switching to a more appropriate advisor.
Speaker 2: That you know. Sometimes you do grow out of relationships,
Speaker 2: don't you. And that's I think what you're talking about.
Speaker 2: And that doesn't just rate financial advisors. It relates to accountants, lawyers,
Speaker 2: et cetera. A firm that you go to. You were
Speaker 2: talking about fund managers and fees before. Sometimes the big
Speaker 2: firms they come out and say, we get feed discounts. Sorry, guys,
Speaker 2: everyone gets feed discounts. Make sure that the advisor gets
Speaker 2: feed discounts with the fund managers. That's nothing unique there.
Speaker 2: The other thing the really big guys say is we
Speaker 2: get access to product that others don't get. That's actually
Speaker 2: not true. Some of the smaller firms get access to
Speaker 2: things that the larger firms don't get because the larger
Speaker 2: firms are too big. So it goes both ways. So
Speaker 2: you just want to make sure there is a good
Speaker 2: that you are able to access a broad, high quality
Speaker 2: spectrum of solutions, multi asset class across the board and
Speaker 2: at the right price.
Speaker 1: Right and turning it on the other side of the
Speaker 1: table in terms of the relationship. So a couple comes
Speaker 1: in to an advisor and one person is clearly very numerous, conservative, capable,
Speaker 1: and it's going to be a good client. Unfortunately, the
Speaker 1: other part in the copple you can see just wants
Speaker 1: to have, just wants to spend, also wants to just
Speaker 1: knock it out of the park and find a ten bagger.
Speaker 1: Then you have, and let's make it even more interesting.
Speaker 1: Someone told you that that there are the point of divorce.
Speaker 2: Yeah.
Speaker 1: The point I'm making here is the client changes on
Speaker 1: you too, I'm sure absolutely, and how do you deal
Speaker 1: with that?
Speaker 2: So one thing we have is that everyone has to
Speaker 2: do a risk profile. And one thing we do, and
Speaker 2: we disclose this to the client, is we used to
Speaker 2: think we'd invested DNA, which has an embedded psychometric test
Speaker 2: in it, so we can sort of sc see them,
Speaker 2: and that's fully disclosed to the client. So we can
Speaker 2: see their stress points and what they rely on when
Speaker 2: they're under stress. And so it's making sure there's the
Speaker 2: right advisor is aligned to the right client.
Speaker 1: Do the psychometric tests in your experience? Are they reliable?
Speaker 2: It's amazing they are.
Speaker 1: Yeah, I had this many times, but I wanted to
Speaker 1: ask you they're very reliable. Yeah, okay, And I think in.
Speaker 2: One client in particular I sort of had in my
Speaker 2: mind after I've met him, X is going to look
Speaker 2: after him. And back came the test and I was like, WHOA,
Speaker 2: I was wrong there. I've got to go in a
Speaker 2: totally different direction. And that's really important, really important, And
Speaker 2: you know it's sometimes in a relationship, when you have couples,
Speaker 2: you don't realize that one is definitely stronger personality and
Speaker 2: with respect to financial literacy than the other. And in
Speaker 2: that case sometimes you realize that the other part of
Speaker 2: the couple. You've got a dentist is next to it
Speaker 2: to us, and they probably prefer to go to the
Speaker 2: dentist and come to us.
Speaker 1: Yes, And that thing that people can be terrific. Someone
Speaker 1: could be a terrific commercial lawyer and a catastrophic investor.
Speaker 1: I'm sure you come across that all the time.
Speaker 2: I always say, if we've and I think this is
Speaker 2: something which is really important as well. And I know
Speaker 2: that a lot of the better advisors, it's especially on
Speaker 2: your list, would do exactly this as well. When you
Speaker 2: know we are right, affirm does things a certain way,
Speaker 2: and if someone comes in and wants as always looking
Speaker 2: for that ten bagger, as you put it, I would
Speaker 2: introduce them to somebody else. You know, we are as
Speaker 2: iways say, we're a service about keeping wealthy people wealthy,
Speaker 2: and I think that's and I think another most of
Speaker 2: the other firms on that list, I think if they
Speaker 2: didn't feel the client was right for them, they would
Speaker 2: introduce them.
Speaker 1: On yes and that and hope and hopefully also making
Speaker 1: them wealthy on their way, which of course would be
Speaker 1: what a lot of listeners would be most keen upon,
Speaker 1: I expect in terms of a mathematical breakdown. Okay, one
Speaker 1: not thing on this. You mentioned you were in LA
Speaker 1: at a financial advisor conference. You mentioned there was a
Speaker 1: female panel. Do you know that my numbers on this
Speaker 1: are as followers in Australia, among the fifteen five hundred advisors,
Speaker 1: twenty three percent only our female And on the list
Speaker 1: that came out today, the top one hundred and fifty
Speaker 1: top financial Advisors list in the Australian only thirteen percent
Speaker 1: are female. And that number hasn't moved much since we started.
Speaker 1: I would have thought it would have, and I would
Speaker 1: have thought that as an area it would have had
Speaker 1: a much more sort of natural gender balanced by now,
Speaker 1: without any need for encouragement I would have thought of
Speaker 1: it had just happened, but it hasn't at all. Any
Speaker 1: theories from you as to why.
Speaker 2: It gets back to things like the Royal Commission. Now,
Speaker 2: I very senior female fand manager Tom in Sydney was
Speaker 2: telling me that she was at her daughter's school. She
Speaker 2: was asked to host, you know, the careers night to
Speaker 2: go into finance. You're right, and so she sort of
Speaker 2: turned up there to host all these young girls and
Speaker 2: that wanted to go on and finance. Not one person
Speaker 2: turned up a leading Sydney private school. And I think
Speaker 2: that at the image of the industry still is it
Speaker 2: front of mind? You know, you want to go and
Speaker 2: do commerce. You've sort of got at the end of mind.
Speaker 2: You want to be a lawyer, you do want it,
Speaker 2: to be an accountant. It's not we're still becoming a profession.
Speaker 2: I think we're well down that road. Have we got
Speaker 2: that to that level yet? It's when society accepts us
Speaker 2: as such that's when you become a profession. But I
Speaker 2: don't think we're front of mind enough for a lot
Speaker 2: of younger people. Oh, I want to become a financial advisor,
Speaker 2: and I think that's one of the problems in the
Speaker 2: second issue is some of that the bad reputation that
Speaker 2: we had from years ago, and that was terrible. Whilst
Speaker 2: I think we've made incredible inroads in cleaning that up,
Speaker 2: you know, and I think that's there're two of the
Speaker 2: things that have been an issue now.
Speaker 1: You know.
Speaker 2: We train young women and bring them up, and it's
Speaker 2: very important that we do that. It's the alternative.
Speaker 1: Obviously, listeners to the show be familiar with many female
Speaker 1: advisors that I have on the show all the time.
Speaker 1: Sally Winn, of course from Shadforth is on the list
Speaker 1: as usual. She's another veteran on the list this year,
Speaker 1: and the Shadforth group really really lifted their presence on
Speaker 1: the list this year. The top, of course is Morgan
Speaker 1: Stanley once again, Garth Hugh a bradmanesque performance, a Lewis
Speaker 1: Hamilton like performance in the list. He's number one are
Speaker 1: for the fifth year in a row. And the number
Speaker 1: one highest ranking woman is also from Morgan Stanley. That's
Speaker 1: Kathy Ding in their at number eighteen. So congratulations to
Speaker 1: all those. Okay, folks, we'll take a short break and
Speaker 1: we'll be back with some really good questions in a month,
Speaker 1: so welcome back to The Australian's Money Puzzle podcast, James
Speaker 1: Kirkby talking to Will Hamilton. Okay, we have a few questions. Okay,
Speaker 1: I why don't you read the first one because the
Speaker 1: second one I'm more across. Yeah, from Emma.
Speaker 2: So, Emma asks heard you mention a request for dollar
Speaker 2: cost averaging in the last episode, and I'd like to
Speaker 2: ask for this topic to be explained. I've recently set
Speaker 2: up a monthly direct debit investment into high growth ETF
Speaker 2: for my niece and nephew and would like them to
Speaker 2: understand how this works over time, so you would do
Speaker 2: much better than I could. So, Emma, the thing is
Speaker 2: saying in the markets that time in the market, not
Speaker 2: timing the market, and if you can get the top
Speaker 2: or the bottom, you're better than anyone else I know.
Speaker 2: So the thing is it's about averaging in and what
Speaker 2: you're doing is exactly what you're doing is a monthly
Speaker 2: direct debit, which I presum is going in every month
Speaker 2: as your averaging a certain amount one hundred dollars, one
Speaker 2: thousand dollars whatever that is into this ETF. And that's
Speaker 2: dollar cost averaging because you might be going in at
Speaker 2: a dollar one month and a dollar ten the next month,
Speaker 2: and at ninety six cents the next month, and you're
Speaker 2: averaging in with those amounts, and that's still a cost everaging.
Speaker 1: In a way. ETFs are almost like that, weren't they
Speaker 1: that it was in that that they just follow the market.
Speaker 1: And if you, Emma, if you just put in the
Speaker 1: same amount of money every month, then a month will
Speaker 1: happen where the market is overpriced and you've paid too much,
Speaker 1: but you will balance that off by the month you
Speaker 1: buy when things are really low and nobody's going in,
Speaker 1: but you're going in, and that habit basically gives you
Speaker 1: the consistency. It's Look, it's a very strong theory, which
Speaker 1: it's very hard to knock. You could. The only thing
Speaker 1: you can do is there are occasions through history where
Speaker 1: the market doesn't return, rebound or revert to the mean,
Speaker 1: and it's tough during those times, that's for sure. But
Speaker 1: it's very strong principle and in a way, at its
Speaker 1: very best, our superinnovation system where you must put in
Speaker 1: so much per month into super by low is it
Speaker 1: actually okay? We will move on to Greg last weekend
Speaker 1: in the Weekend Australian with regard to potentially investing in
Speaker 1: the new Trump American market. You mentioned a couple of
Speaker 1: Vanguard ETFs. I've since discarded the broadsheet, but I mean,
Speaker 1: I'm sure you mean the single issue of the paper. Greg.
Speaker 1: Can you please remind me what they are happy to
Speaker 1: remind everybody that I will not and do not in
Speaker 1: any way emphasis one product over another, or one advisor
Speaker 1: over another, or anything like that. And I'll tell you
Speaker 1: a funny story there. There's ETFs index funds you can
Speaker 1: on American markets. Of course you should be in there.
Speaker 1: I'm in there, and I think any advisor, at least
Speaker 1: any investor who wants access or exposure to the US,
Speaker 1: it's a great way in. But here's the thing, and
Speaker 1: every ETF product maker in Australia will be annoyed on
Speaker 1: what I'm about to say. They're all the same. I
Speaker 1: had lunch with a with an employee of a major
Speaker 1: ETF player and they said, listen, we're like we are
Speaker 1: like the laundry detergent salesmen in the nineteen seventies. They're
Speaker 1: all more or less the same, and we have to
Speaker 1: distinguish ourselves in some fashion. So keep that in mind.
Speaker 1: There's Vanguard, There's Eye Shares, there's Betas Shares, there is
Speaker 1: global X and others. And I am happy to say
Speaker 1: that as long as you get started with one of them,
Speaker 1: the difference in performance to you over a long period
Speaker 1: of time would be infinitesimal. I imagine between the ETFs,
Speaker 1: because the promise is that they exactly replicate the market
Speaker 1: that they're buying in. I'm talking about traditional ETFs here strictly,
Speaker 1: I'm not talking about ETF Greg. I hope that's all clear. Okay,
Speaker 1: A question from Dusty who is I'm guessing male in
Speaker 1: the way of Dusty Slim, Dusty or maybe Dusty Springfield.
Speaker 1: Who knows. We'll just have to guess. Anyway, you might
Speaker 1: read the question.
Speaker 2: That's the yes. Since the election and when Trump has
Speaker 2: been nominating a number of people for a second term
Speaker 2: for the secretaries. Most recently, Robert F. Kennedy Junior was
Speaker 2: nominated as as Secretary for Health and Human Services. The
Speaker 2: following day, most of the vaccine makers stocks went down
Speaker 2: because RFK Junior stants on vaccines. If he ends up
Speaker 2: getting the stocks. What are your thoughts on overall healthcare sector,
Speaker 2: especially for our local blue chips yet it's not financial advice,
Speaker 2: but I think you know, with these things, you often
Speaker 2: get a kick down and you get an overreaction. Things
Speaker 2: balance out if they're quality and they've got a product
Speaker 2: that saves lives, whatever, it's going to continue on its
Speaker 2: merry way. But just yeh, expect an overreaction, I think
Speaker 2: is probably what you usually get.
Speaker 1: So when this stever advice is information dusty and all
Speaker 1: the dusties out there having said that, or FK Junior, who,
Speaker 1: by the way, whatever else he is, he's pretty healthy looking,
Speaker 1: he's seventy one. You know, he's openly skeptical about vaccines.
Speaker 1: He is going to get that post. CSL has fallen
Speaker 1: sharply in recent times, and it's supposed to be a
Speaker 1: blue chip that doesn't fall sharply. It's not having a
Speaker 1: pretty good run at the moment anyway, and this would
Speaker 1: not seem to be good for them in the assuming
Speaker 1: it happens in the in the short and medium term.
Speaker 1: I think that is a reasonable observation. But as you're saying, well,
Speaker 1: it is a quality stock, and quality stocks should should
Speaker 1: see it through whatever challenging is put to them or
Speaker 1: put in front of them. And you think, yeah, and
Speaker 1: is there any other Australian stock that would be exposed
Speaker 1: to be like to the idiosyncratic thoughts of Robert F.
Speaker 1: Kennedy Junior.
Speaker 2: That's the big one that stands out, and boy does
Speaker 2: it stand out.
Speaker 1: Yeah right, okay, very good. Well, thank you for listening today, folks,
Speaker 1: Thank you, will, thank you, James. Always great to have
Speaker 1: you on the show. Well done for being on the list,
Speaker 1: for being for one of the stayers on the list.
Speaker 1: There's very few of them. Actually, I looked at the
Speaker 1: two seventeen list, which is only fifty people. I'm looking
Speaker 1: at it all week. I'm dizzy from looking at the
Speaker 1: list because I've been doing it and it's quite different
Speaker 1: now with one hundred and fifty. But well done to
Speaker 1: anyone who was on that list. And if you are
Speaker 1: considering getting an advisor, well I'm certainly happy to say
Speaker 1: to put that list in front of you. Okay. Now,
Speaker 1: today's show was produced by Leah Samuel Gluu. Thank you
Speaker 1: very much, Leah. And as I said at the start,
Speaker 1: any correspondence issues, questions, complaints or if you are having
Speaker 1: problems with big super funds, let me know. The money
Speaker 1: puzzle at the Australian dot com, dot au talk to
Speaker 1: you soon.