1
00:00:00,360 --> 00:00:04,920
Speaker 1: Micro investing a brilliant first step, but why you mustn't

2
00:00:05,040 --> 00:00:23,840
Speaker 1: and cannot stay there forever. Welcome back to Sugar Mamma's Fireplay,

3
00:00:23,960 --> 00:00:28,040
Speaker 1: the podcast where we ignite your financial independence, fuel your

4
00:00:28,120 --> 00:00:31,120
Speaker 1: early retirement goals and dreams, and help you build lasting

5
00:00:31,200 --> 00:00:35,800
Speaker 1: wealth with confidence, with clarity, and with purpose. I am

6
00:00:35,840 --> 00:00:38,560
Speaker 1: your host, Canna Campbell. I'm a financial planner with over

7
00:00:38,680 --> 00:00:42,280
Speaker 1: twenty two years experience. I'm a mother of three, an author,

8
00:00:42,400 --> 00:00:46,919
Speaker 1: keynote speaker, and someone who genuinely believes and cares about

9
00:00:46,960 --> 00:00:50,080
Speaker 1: helping you not just start your wealth creation journey, but

10
00:00:50,320 --> 00:00:53,120
Speaker 1: also to grow it and grow into the investor that

11
00:00:53,120 --> 00:00:58,000
Speaker 1: you're capable of becoming. Today's episode is all about micro investing.

12
00:00:58,000 --> 00:01:00,400
Speaker 1: If you hadn't guessed that already, and before we go

13
00:01:00,520 --> 00:01:04,080
Speaker 1: any further, let me say this very clearly. I know

14
00:01:04,120 --> 00:01:06,960
Speaker 1: I've been a little bit negative and cynical of micro investing,

15
00:01:07,040 --> 00:01:10,440
Speaker 1: but if you are micro investing right now, I am

16
00:01:10,680 --> 00:01:13,039
Speaker 1: really proud of you. You are not behind and you

17
00:01:13,080 --> 00:01:17,680
Speaker 1: were definitely not doing anything wrong. Micro investing has helped

18
00:01:17,840 --> 00:01:21,680
Speaker 1: millions of Australians take their first step into investing into shares,

19
00:01:22,280 --> 00:01:25,200
Speaker 1: and in fact, there are so many micro investing platforms

20
00:01:25,240 --> 00:01:28,039
Speaker 1: that have actually shared that the majority of their users

21
00:01:28,080 --> 00:01:31,480
Speaker 1: are obviously first time users, but also people who believed

22
00:01:31,920 --> 00:01:34,840
Speaker 1: previously that investing was actually not just for them. They

23
00:01:34,840 --> 00:01:38,480
Speaker 1: were intimidated by it, and that really does matter. But

24
00:01:38,840 --> 00:01:41,800
Speaker 1: here's my role as your I guess you could call

25
00:01:41,800 --> 00:01:46,080
Speaker 1: it as your financial mentor comes in. Whilst micro investing

26
00:01:46,200 --> 00:01:51,000
Speaker 1: is most definitely a fantastic starting point, it shouldn't become

27
00:01:51,280 --> 00:01:54,120
Speaker 1: your forever home. And today I want to help you

28
00:01:54,200 --> 00:01:58,280
Speaker 1: understand why, without judgment, of course, without fear, and without

29
00:01:58,360 --> 00:02:02,600
Speaker 1: any pressure whatsoever. This is the episode is about really

30
00:02:02,720 --> 00:02:06,680
Speaker 1: about expansion for you, about stretching beyond what feels comfortable

31
00:02:06,720 --> 00:02:10,360
Speaker 1: and secure and nice even, but also about believing you

32
00:02:10,400 --> 00:02:15,880
Speaker 1: are capable of stretching and growing more financially, intellectually, and

33
00:02:16,080 --> 00:02:20,480
Speaker 1: perhaps even emotionally. All right, let's start with what micro

34
00:02:20,520 --> 00:02:25,800
Speaker 1: investing is and why it actually took off. So micro

35
00:02:25,919 --> 00:02:28,520
Speaker 1: investing allows you to invest very small amounts of money

36
00:02:28,520 --> 00:02:32,360
Speaker 1: by often rounding up everyday purchases you know, such as

37
00:02:32,520 --> 00:02:34,800
Speaker 1: you know, buying a coffee for say four dollars fifty

38
00:02:34,840 --> 00:02:36,400
Speaker 1: and it rounds it up to five dollars and puts

39
00:02:36,560 --> 00:02:39,840
Speaker 1: fifty cents into your investment portfolio, and of course you know,

40
00:02:39,880 --> 00:02:42,440
Speaker 1: if you've linked up your accounts correctly to your DAVY

41
00:02:42,520 --> 00:02:45,639
Speaker 1: day spending, that can add up over time. And its

42
00:02:45,800 --> 00:02:50,320
Speaker 1: popularity has exploded because obviously it's removed that intimidation, it's

43
00:02:50,400 --> 00:02:52,720
Speaker 1: lowered the barrier to entry, and it's you know, because

44
00:02:52,760 --> 00:02:54,919
Speaker 1: previously you could only have a vest, say five hundred

45
00:02:54,960 --> 00:02:57,120
Speaker 1: dollars as an absolute minimum. Now a couple of dollars

46
00:02:57,160 --> 00:02:59,360
Speaker 1: you can even do it. And it's made investing feel

47
00:02:59,400 --> 00:03:03,640
Speaker 1: accessible and safe, and it's helped people form a really

48
00:03:03,680 --> 00:03:08,040
Speaker 1: powerful investing habit which is brilliant. That's powerful, and for

49
00:03:08,120 --> 00:03:12,639
Speaker 1: someone who has never invested before, felt completely overwhelmed by

50
00:03:12,760 --> 00:03:15,760
Speaker 1: finance and understanding what shares are and perhaps maybe even

51
00:03:15,800 --> 00:03:19,160
Speaker 1: being burnt in the past or struggled with creating a

52
00:03:19,240 --> 00:03:23,000
Speaker 1: consistent financial habit in the life, micro investing has felt

53
00:03:23,040 --> 00:03:26,040
Speaker 1: like a lifeline. And this is the important part. Just

54
00:03:26,080 --> 00:03:30,040
Speaker 1: because it's accessible, it is not the same as optimization,

55
00:03:30,120 --> 00:03:32,160
Speaker 1: which is what I really want to focus and talk

56
00:03:32,200 --> 00:03:36,040
Speaker 1: with you about today. So let's move on to this

57
00:03:36,200 --> 00:03:39,920
Speaker 1: micro investing boom and what you really need to watch

58
00:03:39,960 --> 00:03:44,800
Speaker 1: out for. So, as micro investing has exploded, I've noticed

59
00:03:44,800 --> 00:03:50,400
Speaker 1: some concerning patterns among new investors. Now these are not criticisms,

60
00:03:50,400 --> 00:03:53,880
Speaker 1: but they're very much I guess awareness points, and I'm

61
00:03:53,880 --> 00:03:58,080
Speaker 1: coming from a place of love and care one hundred percent.

62
00:03:58,680 --> 00:04:01,560
Speaker 1: But here are some common t apps that I see.

63
00:04:02,080 --> 00:04:07,080
Speaker 1: Number One, too many micro investing accounts or apps. So

64
00:04:07,120 --> 00:04:10,320
Speaker 1: people sign up to multiple platforms just to try them out,

65
00:04:10,640 --> 00:04:13,640
Speaker 1: and then suddenly they've fragmented their money, they've lost clarity,

66
00:04:13,680 --> 00:04:17,680
Speaker 1: and they've stopped tracking their progress. Often people will have

67
00:04:17,760 --> 00:04:21,200
Speaker 1: like a micro investing app for each of their goals.

68
00:04:21,720 --> 00:04:25,800
Speaker 1: Now what happens is there's not much progress, and their

69
00:04:25,880 --> 00:04:28,880
Speaker 1: results and their savings are really spread, and sometimes that

70
00:04:28,920 --> 00:04:31,240
Speaker 1: money actually has never ended up being invested at all

71
00:04:31,240 --> 00:04:34,400
Speaker 1: because it hasn't hit the minimum levels to be invested.

72
00:04:34,800 --> 00:04:38,080
Speaker 1: The second era or I guess concerning pattern that I

73
00:04:38,120 --> 00:04:42,200
Speaker 1: see is not actually understanding what they are invested in.

74
00:04:43,240 --> 00:04:47,480
Speaker 1: So many users of these micro investing apps can't explain

75
00:04:47,680 --> 00:04:50,680
Speaker 1: which fund manager is actually behind their fund and what

76
00:04:50,720 --> 00:04:53,839
Speaker 1: sort of investment assets they're holding. Yes, they might be shares,

77
00:04:53,839 --> 00:04:56,520
Speaker 1: but are the Australian shairs, are they international shares or

78
00:04:56,680 --> 00:04:59,839
Speaker 1: perhaps if they're using ETFs their bonds, they don't actually

79
00:05:00,160 --> 00:05:03,479
Speaker 1: know where their money is being invested, and they don't

80
00:05:03,520 --> 00:05:05,719
Speaker 1: even know whether it's a growth fund or an income

81
00:05:05,760 --> 00:05:09,320
Speaker 1: fund or a balanced fund. So if you don't understand

82
00:05:09,360 --> 00:05:13,480
Speaker 1: your investments, how can you possibly expect to confidently grow them.

83
00:05:13,760 --> 00:05:17,920
Speaker 1: The third concerning pattern I see is not reinvesting these dividends.

84
00:05:18,600 --> 00:05:22,760
Speaker 1: Some platforms not all default all the dividends to cash,

85
00:05:22,839 --> 00:05:26,039
Speaker 1: which if that's the case, I hate to be the

86
00:05:26,040 --> 00:05:28,719
Speaker 1: bearer of bad news, but you're actually quietly stalling the

87
00:05:28,760 --> 00:05:30,960
Speaker 1: benefits of compounding. This is not going to work for you,

88
00:05:31,000 --> 00:05:33,680
Speaker 1: and this is something you need to look in too immediately.

89
00:05:34,120 --> 00:05:36,159
Speaker 1: And then the fourth concerning pattern that I see is

90
00:05:36,600 --> 00:05:42,960
Speaker 1: inconsistent contributions. So rounding up alone rarely builds meaningful wealth.

91
00:05:43,000 --> 00:05:45,640
Speaker 1: If you think about your investing fifty cents, it's better

92
00:05:45,680 --> 00:05:48,039
Speaker 1: than nothing, don't get me wrong, but it's not exactly

93
00:05:48,040 --> 00:05:50,280
Speaker 1: going to turn you into a multimillionaire ive and over

94
00:05:50,400 --> 00:05:52,880
Speaker 1: say a ten to fifteen to twenty year period. Obviously,

95
00:05:52,960 --> 00:05:56,760
Speaker 1: consistency matters more than novelty. But the thing is microinvesting

96
00:05:57,040 --> 00:06:00,000
Speaker 1: should actually be building up your confidence and your capability,

97
00:06:00,560 --> 00:06:04,040
Speaker 1: not your complacency. So what I'm saying is people get

98
00:06:04,200 --> 00:06:09,159
Speaker 1: comfortable and they just stay sitting in these micro investing apps,

99
00:06:09,279 --> 00:06:13,719
Speaker 1: never stretching themselves, never challenging themselves, and never really allowing

100
00:06:13,760 --> 00:06:17,440
Speaker 1: their money to really start working for themselves. Which now

101
00:06:17,560 --> 00:06:21,599
Speaker 1: brings me to the fees. The quiet wealth killer fees

102
00:06:21,680 --> 00:06:25,400
Speaker 1: is something we really need to explore. And going deep

103
00:06:25,640 --> 00:06:28,520
Speaker 1: really doesn't matter here, particularly if you've been on micro

104
00:06:28,640 --> 00:06:32,799
Speaker 1: investing apps for quite some time. So micro investing fees

105
00:06:33,080 --> 00:06:37,520
Speaker 1: vary dramatically from platform to platform, and many people don't

106
00:06:37,520 --> 00:06:41,040
Speaker 1: actually realize what they're paying or how they're actually paying

107
00:06:41,080 --> 00:06:45,080
Speaker 1: these fees. Now, they really do vary in the way

108
00:06:45,080 --> 00:06:48,320
Speaker 1: that they charge, and some platforms are better than others

109
00:06:48,560 --> 00:06:50,640
Speaker 1: in the way that they're running their money and contributing.

110
00:06:51,040 --> 00:06:52,560
Speaker 1: So you really need to know what you're paying for

111
00:06:52,600 --> 00:06:55,200
Speaker 1: a note that it's right for you. But fees typically

112
00:06:55,240 --> 00:06:57,599
Speaker 1: on these micro investing in platforms are like a flat

113
00:06:57,680 --> 00:07:00,960
Speaker 1: monthly account fee, or they may have a percentage based

114
00:07:01,120 --> 00:07:04,919
Speaker 1: management fee, or they may have like an underlying management

115
00:07:05,000 --> 00:07:07,840
Speaker 1: or administration cost, or they may even have like a

116
00:07:07,920 --> 00:07:11,400
Speaker 1: transaction or a rebalancing cost, which is often a percentage.

117
00:07:11,560 --> 00:07:16,400
Speaker 1: Now here's the issue when your balance is small, these

118
00:07:16,440 --> 00:07:20,400
Speaker 1: flat fees, particularly when there's dollar base can actually hurt

119
00:07:20,600 --> 00:07:24,480
Speaker 1: so much more. And when your balance grows, those percentage

120
00:07:24,520 --> 00:07:27,920
Speaker 1: fees can actually compound against you and all of your

121
00:07:27,960 --> 00:07:30,760
Speaker 1: hard work. For example, say you're paying like three to

122
00:07:30,840 --> 00:07:34,520
Speaker 1: five dollars per month on a five hundred dollars investment balance,

123
00:07:34,760 --> 00:07:37,880
Speaker 1: that actually can be really expensive. Or if you're paying

124
00:07:37,960 --> 00:07:40,200
Speaker 1: zero point seven percent to one percent, which is not

125
00:07:40,280 --> 00:07:44,160
Speaker 1: uncommon per year on a growing portfolio, this actually quietly

126
00:07:44,160 --> 00:07:48,400
Speaker 1: erodes all those long term returns. That's expensive. Now, fees

127
00:07:48,480 --> 00:07:51,960
Speaker 1: are not evil, but they must be in proportion to

128
00:07:52,000 --> 00:07:54,600
Speaker 1: what you're investing. Otherwise you're kind of undoing all of

129
00:07:54,640 --> 00:07:58,560
Speaker 1: your hard work. As your balance grows, you deserve to

130
00:07:58,600 --> 00:08:03,280
Speaker 1: access lower marginal costs. You also deserve greater transparency and

131
00:08:04,040 --> 00:08:06,960
Speaker 1: more control, way more control. And this is one of

132
00:08:07,040 --> 00:08:09,920
Speaker 1: the biggest signals that it actually may be time to graduate.

133
00:08:10,120 --> 00:08:13,520
Speaker 1: That is, get off the micro investing platforms and just

134
00:08:13,640 --> 00:08:17,880
Speaker 1: use a traditional online platform like for example, Comsec or

135
00:08:18,000 --> 00:08:21,560
Speaker 1: nab Trade or CMC or Moo Moo. But you might

136
00:08:21,640 --> 00:08:26,760
Speaker 1: be ready to outgrow kindergarten Friday flat micro investing. All right,

137
00:08:26,880 --> 00:08:28,800
Speaker 1: let's keep moving because there are some more things we

138
00:08:28,800 --> 00:08:33,360
Speaker 1: need to talk about, and that is limited choice, limited learning.

139
00:08:33,720 --> 00:08:36,480
Speaker 1: I should say now this is a point that doesn't

140
00:08:36,480 --> 00:08:40,080
Speaker 1: get talked about enough. Most micro investing platforms limit you

141
00:08:40,160 --> 00:08:43,680
Speaker 1: to one or maybe feel like you to farm managers

142
00:08:44,120 --> 00:08:49,440
Speaker 1: and a very small menu of pre built portfolios where

143
00:08:49,440 --> 00:08:53,559
Speaker 1: they have set the asset allocation. And quite often when

144
00:08:53,600 --> 00:08:55,960
Speaker 1: it comes with one fund manager, is you only have

145
00:08:56,040 --> 00:08:59,760
Speaker 1: one single investment philosophy, such as a buy and hold

146
00:08:59,880 --> 00:09:02,360
Speaker 1: or or an active farm manager. Now that means you

147
00:09:02,400 --> 00:09:05,480
Speaker 1: don't actually get to experience, or more importantly, learn how

148
00:09:05,480 --> 00:09:07,760
Speaker 1: different farm managers think and how they operate and how

149
00:09:07,800 --> 00:09:10,040
Speaker 1: they manage your money, and not do you get to

150
00:09:10,080 --> 00:09:13,520
Speaker 1: experience different income styles. And you also don't get to

151
00:09:13,559 --> 00:09:17,720
Speaker 1: really build portfolio literacy that is understanding all the different

152
00:09:17,760 --> 00:09:22,360
Speaker 1: buying techniques, managing tax managing cash flow, managing dividends, these

153
00:09:22,400 --> 00:09:25,120
Speaker 1: important things that you should know as an investor, as

154
00:09:25,720 --> 00:09:30,040
Speaker 1: multiple businesses investing in various countries. This really does matter

155
00:09:30,440 --> 00:09:34,720
Speaker 1: because investing isn't just about the returns. It's also about

156
00:09:34,880 --> 00:09:38,440
Speaker 1: understanding understanding where your money is going, where your money

157
00:09:38,480 --> 00:09:40,720
Speaker 1: is growing, and how to make it work better for you.

158
00:09:41,280 --> 00:09:44,800
Speaker 1: For me, as the founder of Sugar Mama TV, I

159
00:09:44,880 --> 00:09:48,240
Speaker 1: hope that everyone in this community knows the difference between

160
00:09:48,280 --> 00:09:52,920
Speaker 1: income and growth, understands what diversification is beyond the labels

161
00:09:52,920 --> 00:09:56,199
Speaker 1: and even beyond the asset classes, and also learns how

162
00:09:56,280 --> 00:10:00,080
Speaker 1: portfolios actually work together, particularly when it comes to the

163
00:10:00,000 --> 00:10:03,520
Speaker 1: the actual strategy behind an investment plan or even a

164
00:10:03,559 --> 00:10:07,080
Speaker 1: superinnuation plan. So if only ever exposed to, say, one

165
00:10:07,160 --> 00:10:11,319
Speaker 1: structure such as micro investing platforms, or one philosophy or

166
00:10:11,360 --> 00:10:16,440
Speaker 1: one approach, your financial education is really capped and really limited,

167
00:10:16,480 --> 00:10:19,320
Speaker 1: to be honest, So talking of honesty, and now need

168
00:10:19,360 --> 00:10:21,960
Speaker 1: to be really honest with you, and let's talk about

169
00:10:22,280 --> 00:10:27,080
Speaker 1: micro investing holding you back, keeping you small, keeping you micro.

170
00:10:27,800 --> 00:10:29,720
Speaker 1: There you go, I've put it out there. This is

171
00:10:29,720 --> 00:10:33,280
Speaker 1: what I care about the most. Micro Investing can quickly

172
00:10:33,640 --> 00:10:37,480
Speaker 1: keep you thinking small, not because it's bad, but because

173
00:10:37,480 --> 00:10:39,760
Speaker 1: it can send a subtle message like, ah, this is

174
00:10:39,800 --> 00:10:42,040
Speaker 1: all I'm capable of, or this is as far as

175
00:10:42,120 --> 00:10:45,360
Speaker 1: I can go, or big investing is for other people,

176
00:10:45,400 --> 00:10:48,480
Speaker 1: for rich people. I'm just comfortable sitting here. It gives

177
00:10:48,480 --> 00:10:52,200
Speaker 1: you complacent, and I'm sorry, but I refuse to let

178
00:10:52,240 --> 00:10:55,640
Speaker 1: you believe that about yourself. If you think like that,

179
00:10:56,120 --> 00:10:58,600
Speaker 1: I have failed at my job. And we need to

180
00:10:58,600 --> 00:11:01,760
Speaker 1: do something about it quickly. My wish for every Sugar

181
00:11:01,800 --> 00:11:05,400
Speaker 1: Mamma community member is this my mission. My vision is

182
00:11:05,400 --> 00:11:09,400
Speaker 1: that you feel inspired and empowered to stretch, to strengthen

183
00:11:09,440 --> 00:11:15,240
Speaker 1: and to grow financially, but also with confidence and education knowledge.

184
00:11:15,600 --> 00:11:18,319
Speaker 1: I want you to feel comfortable seeing a five to

185
00:11:18,480 --> 00:11:22,600
Speaker 1: six seven figure investment portfolio balance. I want you to

186
00:11:22,640 --> 00:11:27,400
Speaker 1: feel comfortable but receiving dividends every single year, dividends that

187
00:11:27,440 --> 00:11:31,360
Speaker 1: even potentially exceed your gross income through your salary job.

188
00:11:31,880 --> 00:11:35,840
Speaker 1: I want you to understand what six figure investment strategies

189
00:11:35,880 --> 00:11:38,560
Speaker 1: are really about, and how they work, and the risks

190
00:11:38,600 --> 00:11:42,120
Speaker 1: and the benefits and the costs of course in great detail.

191
00:11:42,440 --> 00:11:44,800
Speaker 1: I want you to believe that these goals of yours,

192
00:11:45,200 --> 00:11:49,840
Speaker 1: no matter how big or husmall, are truly possible. Staying

193
00:11:50,000 --> 00:11:54,440
Speaker 1: in micro investing land for too long can really limit

194
00:11:54,640 --> 00:11:58,040
Speaker 1: these outcomes. Ity limit your ambition, they limit your learning,

195
00:11:58,080 --> 00:12:01,600
Speaker 1: and they limit the belief in yourself and your future.

196
00:12:02,200 --> 00:12:05,040
Speaker 1: Growth at the end of the day requires discomfort, and

197
00:12:05,200 --> 00:12:07,600
Speaker 1: that's actually not a bad thing, particularly when you come

198
00:12:07,640 --> 00:12:09,520
Speaker 1: out the other side and look back and look at

199
00:12:09,520 --> 00:12:12,600
Speaker 1: the changes and the development and the growth and all

200
00:12:12,640 --> 00:12:15,600
Speaker 1: the things that you've gained along the way. So if

201
00:12:15,640 --> 00:12:18,040
Speaker 1: you've got a micro investing app and you've been on

202
00:12:18,080 --> 00:12:20,760
Speaker 1: this for a while, as someone actually messaged me on TikTok,

203
00:12:20,800 --> 00:12:22,760
Speaker 1: the other data said they finally build a fifty thousand

204
00:12:22,760 --> 00:12:27,080
Speaker 1: dollars investment portfolio. I think it is time to graduate,

205
00:12:27,240 --> 00:12:29,840
Speaker 1: but we want to make sure that you graduate calmly, safely,

206
00:12:29,880 --> 00:12:33,520
Speaker 1: and of course you're aware of all the tax implications.

207
00:12:33,520 --> 00:12:37,840
Speaker 1: So let's get you moving and moving quickly, but with

208
00:12:37,920 --> 00:12:40,680
Speaker 1: everything you need to know. So first of all, graduating

209
00:12:40,720 --> 00:12:44,480
Speaker 1: does not mean panicking or panic selling. In fact, in

210
00:12:44,559 --> 00:12:47,839
Speaker 1: many cases you can actually do a transfer through something

211
00:12:47,880 --> 00:12:51,000
Speaker 1: called an n specie transfer. Now what that means is

212
00:12:51,040 --> 00:12:54,720
Speaker 1: you're moving assets that is your investment portfolio without having

213
00:12:54,760 --> 00:12:58,480
Speaker 1: to physically sell them down. Now, when you are able

214
00:12:58,520 --> 00:13:00,880
Speaker 1: to do this, it actually means that you can avoid

215
00:13:01,040 --> 00:13:05,719
Speaker 1: triggering capital gains tax and you maintain that consistent exposure

216
00:13:05,720 --> 00:13:08,280
Speaker 1: to the market. Now this is something to sort of

217
00:13:08,320 --> 00:13:11,480
Speaker 1: think about carefully and to go and get some advice on,

218
00:13:12,040 --> 00:13:14,679
Speaker 1: you know, speak to a financial plan or financial advisor,

219
00:13:14,720 --> 00:13:18,720
Speaker 1: or even call the micro investing platforms and ask them

220
00:13:18,760 --> 00:13:22,040
Speaker 1: what options are available to you. Some of these platforms

221
00:13:22,040 --> 00:13:24,640
Speaker 1: actually are connected to traditional platforms. So you may be

222
00:13:24,720 --> 00:13:27,079
Speaker 1: able to graduate to the next level by still remaining

223
00:13:27,120 --> 00:13:30,360
Speaker 1: with that particular platform provider, but you need to do

224
00:13:30,440 --> 00:13:33,400
Speaker 1: it thoughtfully, and there will be some situations where you

225
00:13:33,720 --> 00:13:37,000
Speaker 1: sadly may actually have to sell down, which means triggering

226
00:13:37,040 --> 00:13:41,120
Speaker 1: a capital gains or potentially triggering a capital loss. Now,

227
00:13:41,160 --> 00:13:43,640
Speaker 1: if you trigger a loss, you can potentially carry that

228
00:13:43,720 --> 00:13:46,000
Speaker 1: forward and use it in the future to offset other

229
00:13:46,080 --> 00:13:49,440
Speaker 1: future capital gains. But if you do trigger capital gains,

230
00:13:49,440 --> 00:13:51,599
Speaker 1: you need to understand how much that is going to

231
00:13:51,640 --> 00:13:54,640
Speaker 1: cost you, whether you need to potentially look at holding

232
00:13:54,679 --> 00:13:56,280
Speaker 1: on for a little bit longer so you qualify for

233
00:13:56,320 --> 00:13:59,920
Speaker 1: the fifty percent capital gains tax discount, or whether you

234
00:14:00,280 --> 00:14:04,240
Speaker 1: just need to suck it up, sell and move on

235
00:14:04,320 --> 00:14:08,199
Speaker 1: to the traditional online platforms. But do it carefully. Make

236
00:14:08,240 --> 00:14:10,720
Speaker 1: sure you can see that everything. Get advice before you

237
00:14:10,800 --> 00:14:14,040
Speaker 1: make any financial decisions. Now, when it comes to the

238
00:14:14,080 --> 00:14:16,880
Speaker 1: actual graduation, what does that really look like, Well, it

239
00:14:16,960 --> 00:14:21,160
Speaker 1: involves opening a traditional brokerage account. As I mentioned, there's moumou,

240
00:14:21,280 --> 00:14:26,200
Speaker 1: there's CMC, there's nab Trade, there's comp Sec, there is Perla,

241
00:14:26,760 --> 00:14:30,119
Speaker 1: there are so many out there. I've got various episodes

242
00:14:30,160 --> 00:14:32,160
Speaker 1: on sugarmumas five where I share what I look for,

243
00:14:32,200 --> 00:14:33,400
Speaker 1: and I'll make sure I go and link this so

244
00:14:33,400 --> 00:14:35,520
Speaker 1: you can listen to it, because there's some really important information.

245
00:14:35,520 --> 00:14:37,800
Speaker 1: It's the key things that I look for. But you

246
00:14:37,880 --> 00:14:41,920
Speaker 1: need a traditional online brokerage account. You see the word micro,

247
00:14:42,040 --> 00:14:43,880
Speaker 1: it is not few. The next thing you need to

248
00:14:43,880 --> 00:14:46,000
Speaker 1: be doing is learning about things like ETFs. This is

249
00:14:46,040 --> 00:14:49,200
Speaker 1: investment companies or even direct equities. Now that you're ready

250
00:14:49,200 --> 00:14:52,320
Speaker 1: to graduate, you don't necessarily need to start picking your

251
00:14:52,360 --> 00:14:55,000
Speaker 1: individual shares, of course, unless you want to. What you

252
00:14:55,120 --> 00:14:57,600
Speaker 1: loved about the micro investing platforms was the fact that

253
00:14:57,640 --> 00:15:00,320
Speaker 1: everything was diversified your money. You don't worry about picking

254
00:15:00,400 --> 00:15:04,400
Speaker 1: the individual stocks or companies. You can just stick with

255
00:15:04,480 --> 00:15:08,240
Speaker 1: that idea, that concept, and go to ETFs or go

256
00:15:08,320 --> 00:15:11,560
Speaker 1: with listed investment companies where your money is immediately diversified.

257
00:15:12,080 --> 00:15:15,160
Speaker 1: Or perhaps if you're feeling ready and you're feeling confident

258
00:15:15,200 --> 00:15:17,320
Speaker 1: and you know what you're doing, you might even want

259
00:15:17,360 --> 00:15:18,840
Speaker 1: to maybe do a bit of a blend where say

260
00:15:18,880 --> 00:15:21,440
Speaker 1: eighty percent of your portfolio goes into the listed investment

261
00:15:21,440 --> 00:15:23,920
Speaker 1: companies in ETFs, and then you're remaining twenty percent. You

262
00:15:23,960 --> 00:15:26,440
Speaker 1: actually go and cherry pick the stocks that you really

263
00:15:26,440 --> 00:15:28,800
Speaker 1: want to own more of. You know, have done your

264
00:15:28,840 --> 00:15:31,000
Speaker 1: own research and want to actually go and see have

265
00:15:31,040 --> 00:15:34,120
Speaker 1: a go at maybe trading your own portfolio as well. Obviously,

266
00:15:34,200 --> 00:15:37,280
Speaker 1: keeping in mind shares are a long term investment. The

267
00:15:37,280 --> 00:15:38,880
Speaker 1: next thing you need to be aware of is obviously

268
00:15:39,000 --> 00:15:42,000
Speaker 1: running accounts in parallel for a while. You may think,

269
00:15:42,040 --> 00:15:44,480
Speaker 1: all right, I've got say five thousand dollars in my

270
00:15:44,520 --> 00:15:47,960
Speaker 1: micro investing app, but I am ready to graduate, but

271
00:15:48,000 --> 00:15:51,200
Speaker 1: I'm not ready to let the micro investing platform go yet.

272
00:15:51,320 --> 00:15:54,760
Speaker 1: That is also perfectly fine. That is still graduating. So

273
00:15:54,800 --> 00:15:56,680
Speaker 1: you might say, okay, well going forward, I'm not going

274
00:15:56,680 --> 00:15:59,240
Speaker 1: to put any new money into my micro investing app.

275
00:15:59,480 --> 00:16:01,880
Speaker 1: I'm going to so it goes on saving up, for example,

276
00:16:02,200 --> 00:16:04,960
Speaker 1: one thousand dollars, and once I have that thousand dollars,

277
00:16:05,000 --> 00:16:08,040
Speaker 1: I'll go and put it into say listed investment company

278
00:16:08,080 --> 00:16:11,600
Speaker 1: through my new traditional online investing such as Whitefield as

279
00:16:11,640 --> 00:16:15,280
Speaker 1: an example, or a Vanguard ETF as an example. Yes,

280
00:16:15,440 --> 00:16:18,400
Speaker 1: that is definitely upping the ante. You were definitely graduating

281
00:16:18,400 --> 00:16:21,360
Speaker 1: and evolving, and as time goes by you feel more comfortable,

282
00:16:21,440 --> 00:16:24,640
Speaker 1: you might decide to move that money across into your

283
00:16:24,640 --> 00:16:28,600
Speaker 1: main portfolio and close off the micro investing that still works.

284
00:16:29,240 --> 00:16:31,960
Speaker 1: Another idea is to look at consolidating when you feel

285
00:16:32,040 --> 00:16:35,400
Speaker 1: completely confident, so you don't add any new money to

286
00:16:35,400 --> 00:16:37,480
Speaker 1: the portfolio you set up and replace it with a

287
00:16:37,480 --> 00:16:41,040
Speaker 1: regular savings account, and you only look to consolidate when

288
00:16:41,080 --> 00:16:43,520
Speaker 1: you are one hundred percent ready. This is not a

289
00:16:43,560 --> 00:16:46,560
Speaker 1: mad panic. This is definitely not a race. It's actually

290
00:16:46,680 --> 00:16:50,000
Speaker 1: a rite of passage and once taken, will leave you

291
00:16:50,080 --> 00:16:53,680
Speaker 1: feeling really proud when you look at your new five, six,

292
00:16:54,040 --> 00:16:57,600
Speaker 1: seven figure investment portfolio. All right, so, as we wrap

293
00:16:57,720 --> 00:17:00,800
Speaker 1: up today's episode, this is my message to you. If

294
00:17:00,840 --> 00:17:04,160
Speaker 1: you can take nothing else from this episode, please hear this.

295
00:17:04,840 --> 00:17:07,440
Speaker 1: You are not meant to stay where you started. When

296
00:17:07,440 --> 00:17:12,200
Speaker 1: it comes to micro investing. Micro investing is simply a doorway.

297
00:17:12,320 --> 00:17:15,080
Speaker 1: It is not the destination, and you do not have

298
00:17:15,160 --> 00:17:18,320
Speaker 1: to leap necessarily, but you do when you're ready. You

299
00:17:18,359 --> 00:17:22,119
Speaker 1: need to step forward and upwards. Wealth is really built

300
00:17:22,160 --> 00:17:25,760
Speaker 1: by expanding your knowledge, strengthening your habits, and believing that

301
00:17:25,880 --> 00:17:29,520
Speaker 1: you are capable of more. That is human nature, and

302
00:17:29,720 --> 00:17:33,800
Speaker 1: I believe deeply that you are more than capable of more.

303
00:17:33,960 --> 00:17:37,840
Speaker 1: So in conclusion, if you are micro investing today. Keep growing,

304
00:17:38,560 --> 00:17:42,360
Speaker 1: be proud, stay curious, but please don't stay small out

305
00:17:42,400 --> 00:17:45,600
Speaker 1: of fear or even worse comfort. Let this be the

306
00:17:45,680 --> 00:17:48,720
Speaker 1: chapter or the sign where you learn more, stretch further,

307
00:17:49,280 --> 00:17:52,800
Speaker 1: and step into the investor that you are becoming. Don't

308
00:17:52,840 --> 00:17:56,120
Speaker 1: be scared, embrace this because wealth isn't just about money.

309
00:17:56,160 --> 00:18:00,000
Speaker 1: It's about confidence, it's about capability, and it's about choice,

310
00:18:00,440 --> 00:18:03,399
Speaker 1: your choice. So thank you everybody for listening to Sugar

311
00:18:03,440 --> 00:18:07,520
Speaker 1: Mama's fireplan. I am financial planner Canna Campbell and as always,

312
00:18:07,880 --> 00:18:12,800
Speaker 1: keep that financial fire burning right within. This is Sugar

313
00:18:12,880 --> 00:18:13,600
Speaker 1: Mama's fire