WEBVTT - A step-by-step guide to getting started in shares

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<v Speaker 1>Welcome to How Do They Afford That? The podcast that

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<v Speaker 1>peaks into the financial lives of everyday Australians. I'm Uncle Thompson.

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<v Speaker 1>I'm an author and the co host of the podcast

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<v Speaker 1>Fear and Greed business news As always, I'm with Canna Campbell,

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<v Speaker 1>financial planner and founder of Sugar Mummer TV, the financial

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<v Speaker 1>literacy platform covering YouTube, podcast, books, Instagram threads, TikTok and more.

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<v Speaker 1>Did you hear me pause between financial and planner? Then

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<v Speaker 1>I just suddenly suddenly just hit me financial planner and

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<v Speaker 1>financial advisor. Is there a difference?

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<v Speaker 2>Yes, a financial planner tends to be more experienced. Okay,

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<v Speaker 2>I may have had more qualifications and training behind them.

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<v Speaker 2>Normally a financial advisor is reserved for maybe a junior,

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<v Speaker 2>like someone who is new to the industry. Maybe not

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<v Speaker 2>necessary to have as much experience as many qualifications.

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<v Speaker 1>Okay, Well, I will no longer hesitate when I get

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<v Speaker 1>to that, and I'll just jump straight in with financial

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<v Speaker 1>plan How are you going?

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<v Speaker 2>I'm well.

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<v Speaker 1>How are you I'm good? I'm good, Thank you, we

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<v Speaker 1>are we're going back to basics today. Yeah, this is good,

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<v Speaker 1>it's good. It is one of the most common questions

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<v Speaker 1>that we get here at how today afford that? How

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<v Speaker 1>do I get started investing in shares? So today we

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<v Speaker 1>are you going to put together a step by step

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<v Speaker 1>guide to investing in shares? If you're open to.

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<v Speaker 2>That sounds good to me?

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<v Speaker 1>Okay, all right, Before we do that, obviously, everything that

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<v Speaker 1>we talk about is general in nature. It is never

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<v Speaker 1>personal investment, strategic or product advice. It is purely financial

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<v Speaker 1>education purposes only. I'm actually going to rewind slightly and

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<v Speaker 1>say why shares? Why should an investor think about investing

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<v Speaker 1>in equities?

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<v Speaker 2>All right? There are lots of reasons why you should

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<v Speaker 2>be investing, okay, So obviously before on shares today. So

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<v Speaker 2>having ownership of a business that is going to hopefully

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<v Speaker 2>grow over time and obviously means your money is growing

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<v Speaker 2>over time. It's also a source of passive income to you.

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<v Speaker 2>To give you that financial freedom. It is an opportunity

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<v Speaker 2>to grow wealth over the long run and try and

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<v Speaker 2>exceed or beat inflation. And shares are a lot more

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<v Speaker 2>liquid than say property. You know, if you have a

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<v Speaker 2>property worth say five hundred thousand dollars, and you need

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<v Speaker 2>suddenly fifty thousand dollars, you can't go and sell one bedroom,

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<v Speaker 2>whereas with a share portfolio you can fill fifty thousand

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<v Speaker 2>dollars shares and then the money will be in your

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<v Speaker 2>account within a couple of days.

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<v Speaker 1>Okay, we will get to some more of the benefits

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<v Speaker 1>as we go through, as we go through our step

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<v Speaker 1>by step guide. But when you buy a share, what

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<v Speaker 1>are you actually buying?

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<v Speaker 2>Buying a slice of the company.

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<v Speaker 1>It is as simple as straightforward as.

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<v Speaker 2>That you're own a percentage of that business, and it

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<v Speaker 2>doesn't matter how small, you still own a percentage, and

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<v Speaker 2>obviously you can build that over time with various different strategies,

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<v Speaker 2>but you also have right to some of the gains

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<v Speaker 2>through a dividend, and obviously the long term growth of

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<v Speaker 2>that share price, which is your represents your share of

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<v Speaker 2>the business. But obviously, at the same time you carry

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<v Speaker 2>the risks that that company may go through a tough time,

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<v Speaker 2>or the value may drop, or they may stop dividends

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<v Speaker 2>for a period of time. So it's like owning an

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<v Speaker 2>investment property when you buy shares, but instead of receiving rent,

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<v Speaker 2>you receive dividends, and of course you are hopeful that

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<v Speaker 2>the value of that property goes up. You're hopeful that

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<v Speaker 2>the value of that share your ownership and that business

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<v Speaker 2>goes up as well.

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<v Speaker 1>Okay, so you're buying a share, a slice of the company,

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<v Speaker 1>and you are sharing in the fortunes of that company

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<v Speaker 1>moving forward, whether it goes up or down, whether they

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<v Speaker 1>make money, whether they lose money. That you are also.

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<v Speaker 2>Bearing that you're like a business owner.

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<v Speaker 1>Okay, shall we get to the steps. Why are you

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<v Speaker 1>laughing at that? Is it just because I like to

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<v Speaker 1>put everything into a list.

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<v Speaker 2>I'm going to ask you a question in a second,

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<v Speaker 2>because I feel like there is an ulterior motive behind

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<v Speaker 2>the topic today. And yes, you're looking very.

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<v Speaker 1>Scared right now. No, I just I don't I like

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<v Speaker 1>to ask the questions on this show. I don't like

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<v Speaker 1>it when you turn it back on me because I

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<v Speaker 1>never know where you're going to go with things, and

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<v Speaker 1>I don't like to get caught out. Step number one,

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<v Speaker 1>do you start with research? Yes, that was an assumption,

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<v Speaker 1>and I made a correct assumption for once. This is

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<v Speaker 1>a good day. Look.

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<v Speaker 2>The golden rule but that it comes to investing is that

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<v Speaker 2>you never invest in something you don't understand. And that

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<v Speaker 2>doesn't mean that you go, oh, I don't understand this,

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<v Speaker 2>Therefore I won't invest in it means no, you need

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<v Speaker 2>to keep going with your research until you understand what

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<v Speaker 2>that is and then you can work out whether it

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<v Speaker 2>is the right investment for you. So a great place

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<v Speaker 2>to start is look at things that you were generally interested,

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<v Speaker 2>generally and genuinely interested in. And there is so much

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<v Speaker 2>free research online that is an amazing quality, you know,

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<v Speaker 2>such as like more Star and the AX has so

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<v Speaker 2>much brilliant online tutorials as well to help you get

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<v Speaker 2>started with investing. But look at brands that you use daily,

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<v Speaker 2>the supermarkets that you visit, or where you do your banking,

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<v Speaker 2>or you know where you buy your appliances from, so things,

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<v Speaker 2>you know, places that feel really relevant and real. That's

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<v Speaker 2>a great place to get started. And then of course

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<v Speaker 2>you need to think about well how am I going

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<v Speaker 2>to buy these shares and that's when you need most

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<v Speaker 2>of us need an online share training account unless you're

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<v Speaker 2>going to go through a user stockbroker.

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<v Speaker 1>Okay. Can I also make one recommendation that in terms

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<v Speaker 1>of research, and that is go back and listen to

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<v Speaker 1>an episode that we have done previously where we spoke

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<v Speaker 1>to Roger Montgomery who took us through in detail what

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<v Speaker 1>he looks for in buying a quality company, and he

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<v Speaker 1>goes through in really plain English kind of how to

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<v Speaker 1>look at what the company is planning to do in

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<v Speaker 1>the future, whether it's making money, and what its future

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<v Speaker 1>prospects are, and whether that might make a good choice

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<v Speaker 1>to put some money into.

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<v Speaker 2>So he's got his book as well.

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<v Speaker 1>Yeah, absolutely, he spoke to us about twelve months ago,

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<v Speaker 1>so you will find that in the how to they

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<v Speaker 1>afford that playlist. Step one start with research. How do

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<v Speaker 1>you decide then what you are going to buy? And

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<v Speaker 1>this is quite broad because it's not just specifically which

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<v Speaker 1>company you are going to buy, because there's actually a

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<v Speaker 1>number of ways that you can be investing in shares.

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<v Speaker 1>You might not be just going for a particular company.

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<v Speaker 1>You might be buying an ETF, an exchange traded fund.

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<v Speaker 2>Or even a listed investment company. So all right, you've

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<v Speaker 2>got lots of different choices out there, so you can

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<v Speaker 2>go with your individual shares. Obviously that involves a lot

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<v Speaker 2>more research, a lot more risk. You've got to make

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<v Speaker 2>sure that you quickly diversify because initially your first investment

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<v Speaker 2>might be solely in just one company, so you need

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<v Speaker 2>to make sure that as new money comes in, you know,

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<v Speaker 2>you diversify, so there is there is risk with that,

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<v Speaker 2>and if you're a beginner investor, that's where I would

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<v Speaker 2>strongly suggest starting to with your research around things like

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<v Speaker 2>ETFs and listed investment companies, even you know, maybe managed funds,

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<v Speaker 2>because it means you're buying a investment into an investment

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<v Speaker 2>portfolio that's already diversified for you. It's like grabbing a

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<v Speaker 2>shopping basket that's already been pre packed for you.

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<v Speaker 1>In diversification. You ask anybody and they will talk about

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<v Speaker 1>the fact that that is a really important part of

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<v Speaker 1>your strategy. It is about spreading the risk.

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<v Speaker 2>Exactly, and it saves you a lot of time as well,

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<v Speaker 2>because if you're new to investing, it is very overwhelming

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<v Speaker 2>and you want to get started. Do you want to

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<v Speaker 2>get hit a bit of a block and go, Okay,

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<v Speaker 2>I haven't invested yetuse I haven't worked at what stopped

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<v Speaker 2>be buying at. But if you look at something like

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<v Speaker 2>a listed investment company or an ETF, which are very

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<v Speaker 2>similar just different tax structures, this can mean that you

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<v Speaker 2>can actually get your foot in the door start building

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<v Speaker 2>that investment portfolio. You know, set up a regular investment plan.

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<v Speaker 2>But then you can in the meantime know that your

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<v Speaker 2>money is invested in working for you. But you continue

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<v Speaker 2>on your financial education journey and start maybe thinking, Okay,

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<v Speaker 2>I've got ten thousand into this listed investment company, I

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<v Speaker 2>want to go and cherry peak my next five stocks

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<v Speaker 2>I'm going to buy individually. So you aren't backed into

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<v Speaker 2>a corner where you can only go into ETFs or

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<v Speaker 2>listed investment companies. You can have a blend of everything.

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<v Speaker 2>And that's actually what I have.

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<v Speaker 1>Yeah, And so in terms of listed investment companies, typically

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<v Speaker 1>there will be you are essentially buying a piece of

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<v Speaker 1>that company, which in turn owns a whole bunch of

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<v Speaker 1>other companies that are chosen by professionals working behind the.

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<v Speaker 2>Scenes exactly up just eighty different companies, not.

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<v Speaker 1>More, and they may have different themes to them as well.

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<v Speaker 1>And then ETFs the exchange traded funds. They might be

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<v Speaker 1>a fund that tracks a particular part of the market

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<v Speaker 1>to buyte track kind of the ASX two hundred of

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<v Speaker 1>might track the tech companies, or it might track companies

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<v Speaker 1>and stocks that are exposed to gold, for instance, And

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<v Speaker 1>you can really kind of pick where you want to

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<v Speaker 1>be putting your money by going with it, say ETFs

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<v Speaker 1>or listed investment.

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<v Speaker 2>Companies, and you can look at their historical returns. Now,

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<v Speaker 2>obviously that does not indicate future performance, but also when

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<v Speaker 2>you look at these companies and read the research reports,

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<v Speaker 2>you can see the fees that they're charging as well

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<v Speaker 2>and in what dividends they're paying, and you know how

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<v Speaker 2>they've attracted in comparison to the benchmark. And they're very

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<v Speaker 2>easy to read. Just going to sit down and just

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<v Speaker 2>have a look, and there are lots of cheat sheets

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<v Speaker 2>available online as well.

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<v Speaker 1>Yeah, you are right, it's a good place to start

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<v Speaker 1>for someone getting into it looking at these listed investment

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<v Speaker 1>companies or ETFs because they are they can be quite broad,

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<v Speaker 1>but you'll often find some good kind of research material

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<v Speaker 1>around it and explain the material as to kind of

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<v Speaker 1>what they are investing in and benefiting from the expertise

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<v Speaker 1>and the experience of the people that are actually running them.

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<v Speaker 1>What do you need then, So say you've kind of

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<v Speaker 1>made all of these decisions, you've done a whole lot

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<v Speaker 1>of research, what do you need in terms of an

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<v Speaker 1>app or a platform for physically buying these shares? Should

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<v Speaker 1>you be looking for something that is attached to your

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<v Speaker 1>bank or should you be going there's a whole lot

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<v Speaker 1>of different apps and platforms now to buy shares. What

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<v Speaker 1>do you look for?

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<v Speaker 2>There are so many out there, and there are so

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<v Speaker 2>many great ones. Obviously making sure it's you're low or

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<v Speaker 2>I'm not going to say low, because they can sometimes

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<v Speaker 2>be a bit of a cash So you want to

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<v Speaker 2>look at cost effective brokerage fees. Don't necessarily go with

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<v Speaker 2>the cheapest because they may be making a profit in

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<v Speaker 2>an indirect way, which I think we've explained in a

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<v Speaker 2>previous episode. But also making sure that it's very user friendly,

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<v Speaker 2>like there's nothing worse than getting stuck and not understanding

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<v Speaker 2>about how to put a trade through or how to

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<v Speaker 2>pounce or something, or know how to access certain components.

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<v Speaker 2>So an intuitive you know what, they call it, a

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<v Speaker 2>friendly interface online platform. Then looking at making sure that

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<v Speaker 2>there's actually some really great free resources that are independent,

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<v Speaker 2>such as independent research, and then making sure you've got

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<v Speaker 2>updates so as to what's going on around the world,

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<v Speaker 2>you know news feed as well. But then this one

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<v Speaker 2>is missed by a lot of people, and it's actually

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<v Speaker 2>access to wealth building tools such as margin loans, and

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<v Speaker 2>this is you know, if you're someone who doesn't own

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<v Speaker 2>property and would like to borrow to invest, you're limited

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<v Speaker 2>as to how you can access loans to build your

0:11:04.480 --> 0:11:09.480
<v Speaker 2>share portfolio. Now. If your platform offers a marginal loan facility,

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<v Speaker 2>that's great because you can sometimes if it's the right

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<v Speaker 2>product for you, go through that. If they don't offer

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<v Speaker 2>a gearing facility like a margin loan, you then have

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<v Speaker 2>to find another one, which means moving your share portfolio

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<v Speaker 2>to a new account, which could be It's doable, It's fine,

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<v Speaker 2>but it can be a little bit fiddly, So think

0:11:26.960 --> 0:11:29.959
<v Speaker 2>about what you need immediately, but also what tools you're

0:11:29.960 --> 0:11:31.560
<v Speaker 2>going to be able to want to have access to

0:11:31.679 --> 0:11:33.959
<v Speaker 2>further down the track so you don't have to create

0:11:34.000 --> 0:11:36.120
<v Speaker 2>more paperwork for yourself and moving money around.

0:11:36.800 --> 0:11:39.960
<v Speaker 1>It seems as though as soon as you start talking

0:11:40.000 --> 0:11:42.200
<v Speaker 1>about margin loans and things, it's a good time to

0:11:42.280 --> 0:11:45.240
<v Speaker 1>be going. Okay. Might get some advice on this, yes,

0:11:45.320 --> 0:11:49.079
<v Speaker 1>talk to a financial advisor or a financial planner and

0:11:49.840 --> 0:11:52.440
<v Speaker 1>just see if it is right for you and get

0:11:52.480 --> 0:11:54.600
<v Speaker 1>some information on how all of that works, because it

0:11:54.640 --> 0:11:56.920
<v Speaker 1>can be a val valuable tool as long as that's

0:11:56.960 --> 0:11:57.360
<v Speaker 1>right for you.

0:11:57.559 --> 0:11:59.439
<v Speaker 2>It is I mean borring to invest is definitely a

0:11:59.480 --> 0:12:02.199
<v Speaker 2>high restray. It's not for everybody, it's for long term

0:12:02.200 --> 0:12:04.720
<v Speaker 2>game plan, so always go and get advice. And the

0:12:04.760 --> 0:12:05.959
<v Speaker 2>other thing you want to look for when it comes

0:12:05.960 --> 0:12:08.600
<v Speaker 2>to picking the right platform for yourself is what other

0:12:08.840 --> 0:12:11.920
<v Speaker 2>asset classes can you reach? You know, maybe you just

0:12:11.920 --> 0:12:15.240
<v Speaker 2>want to invest in Australian shares now, but maybe next year,

0:12:15.280 --> 0:12:17.400
<v Speaker 2>once you feel more confident with investing, you might want

0:12:17.440 --> 0:12:20.960
<v Speaker 2>to access international share markers as well. Is that still

0:12:20.960 --> 0:12:22.600
<v Speaker 2>going to be the right platform. Hence why I say

0:12:22.720 --> 0:12:24.600
<v Speaker 2>look at what you need now, but also make sure

0:12:24.600 --> 0:12:26.800
<v Speaker 2>you're taking into consideration your long term needs.

0:12:27.320 --> 0:12:32.559
<v Speaker 1>Okay, are there this is what step number five? I

0:12:32.640 --> 0:12:36.840
<v Speaker 1>forgot to number the steps step four, step five. Are

0:12:36.840 --> 0:12:42.760
<v Speaker 1>there minimum amounts that you need to buy or are

0:12:42.760 --> 0:12:45.959
<v Speaker 1>there minimum amounts that you should be looking to buy

0:12:46.120 --> 0:12:48.920
<v Speaker 1>in order to maximize efficiency? Because I can't. I'd imagine

0:12:48.920 --> 0:12:50.640
<v Speaker 1>that you don't want to see all of your money

0:12:50.679 --> 0:12:51.600
<v Speaker 1>eatn up in brokery.

0:12:51.960 --> 0:12:55.680
<v Speaker 2>Yeah, so obviously there are lots of micro investing platforms around.

0:12:55.880 --> 0:12:58.520
<v Speaker 2>I'm not a huge fan of micro investing at all.

0:12:58.640 --> 0:13:00.520
<v Speaker 1>What do you mean by micro investing?

0:13:00.600 --> 0:13:02.720
<v Speaker 2>So investing with small amounts of money? So you know

0:13:02.760 --> 0:13:06.160
<v Speaker 2>five dollars ten dollars look over time. You know, if

0:13:06.160 --> 0:13:08.640
<v Speaker 2>you've got a consistent strategy in place, it's great. But

0:13:08.960 --> 0:13:11.320
<v Speaker 2>as you know, I call it sort of the Friday

0:13:11.360 --> 0:13:15.280
<v Speaker 2>Flat of is share investing. You're never gonna build. It's

0:13:15.280 --> 0:13:17.600
<v Speaker 2>gonna take a really long time and highly unlikely you're

0:13:17.600 --> 0:13:20.280
<v Speaker 2>going to build a million dollar portfolio. When you're investing

0:13:20.280 --> 0:13:22.959
<v Speaker 2>with small amounts of money, you want to make sure

0:13:23.000 --> 0:13:26.480
<v Speaker 2>that your portfolio is growing along with your own financial literacy.

0:13:26.480 --> 0:13:29.679
<v Speaker 2>And obviously it doesn't mean investing constantly large amounts of money,

0:13:29.679 --> 0:13:33.000
<v Speaker 2>but you need your portfolio needs to grow and you

0:13:33.040 --> 0:13:35.880
<v Speaker 2>need to grow as well. So if you can only

0:13:35.880 --> 0:13:39.199
<v Speaker 2>afford to invest ten dollars a month, that's fine, use

0:13:39.240 --> 0:13:41.679
<v Speaker 2>that to get started. But the moment you find that

0:13:41.720 --> 0:13:44.480
<v Speaker 2>you're actually able to start investing a larger amounts of money,

0:13:44.760 --> 0:13:46.760
<v Speaker 2>you know, closer to sort of between five hundred and

0:13:46.760 --> 0:13:49.560
<v Speaker 2>thousand dollars at a time, great, that's when you've outgrown

0:13:49.600 --> 0:13:51.880
<v Speaker 2>those micro investing platforms, and that's when you are more

0:13:51.960 --> 0:13:54.720
<v Speaker 2>likely to build that million dollar investment portfolio because you're

0:13:55.040 --> 0:13:58.560
<v Speaker 2>investing larger amounts of money on a regular basis and

0:13:58.600 --> 0:14:01.840
<v Speaker 2>taking it a lot more seriously. Investing more time, thinking

0:14:01.880 --> 0:14:04.600
<v Speaker 2>about your goals, thinking about the strategy, thinking about the risk,

0:14:04.640 --> 0:14:07.600
<v Speaker 2>tracking your dividends. It's like it's sort of you know,

0:14:07.640 --> 0:14:09.960
<v Speaker 2>I speak to people about micro investing. They tend to

0:14:09.960 --> 0:14:12.679
<v Speaker 2>have a couple of different micro investing accounts with you know,

0:14:12.679 --> 0:14:15.920
<v Speaker 2>between a one thousand dollars and fifty dollars because there

0:14:15.960 --> 0:14:18.280
<v Speaker 2>isn't enough in there. They're not investing their time and

0:14:18.400 --> 0:14:21.080
<v Speaker 2>energy to make it grow and make it work for them.

0:14:21.120 --> 0:14:24.120
<v Speaker 2>So it's kind of a little bit inefficient. Okay, that's

0:14:24.160 --> 0:14:26.920
<v Speaker 2>my issue. It's it's still great to help people get started,

0:14:26.920 --> 0:14:28.600
<v Speaker 2>and that's hence why I call it the Friday flat.

0:14:28.680 --> 0:14:31.560
<v Speaker 2>You learn to get started like skiing on Friday flat.

0:14:31.640 --> 0:14:33.800
<v Speaker 1>Okay, you learn the basics, basics.

0:14:33.320 --> 0:14:36.120
<v Speaker 2>You learn how to how to move safely down the slopes.

0:14:36.160 --> 0:14:38.280
<v Speaker 2>But then you've got to get yourself onto the different

0:14:38.400 --> 0:14:40.720
<v Speaker 2>runs of the mountain and learn how to you know,

0:14:40.840 --> 0:14:43.640
<v Speaker 2>go down moguls and steeper runs and scare over ice

0:14:43.800 --> 0:14:48.360
<v Speaker 2>and we'll snowboard over ice. That's my issue with micro investing,

0:14:48.480 --> 0:14:52.200
<v Speaker 2>So keep going, just don't stop playing in the safe

0:14:52.280 --> 0:14:52.880
<v Speaker 2>kiddie pool.

0:14:53.600 --> 0:14:56.280
<v Speaker 1>Hang on a week I sound all, now we could

0:14:56.280 --> 0:15:01.680
<v Speaker 1>be eating a snow melts melted. I'm enjoying this, and

0:15:01.840 --> 0:15:04.360
<v Speaker 1>please continue this crossed analogy here.

0:15:05.200 --> 0:15:08.640
<v Speaker 2>I'll go back to Friday Flats. We're skiing on flat surfaces.

0:15:08.680 --> 0:15:11.280
<v Speaker 2>It's safe, it's can't hurt yourself. You're can't get too

0:15:11.320 --> 0:15:11.800
<v Speaker 2>much trouble.

0:15:11.960 --> 0:15:14.040
<v Speaker 1>Are our clothes wet from being in the pool, because

0:15:14.080 --> 0:15:15.040
<v Speaker 1>that would be mighty cold.

0:15:15.080 --> 0:15:16.840
<v Speaker 2>Well, if it depends how many times you've fallen down

0:15:16.880 --> 0:15:18.680
<v Speaker 2>in the snow, if you keep falling down the snow,

0:15:18.680 --> 0:15:21.040
<v Speaker 2>maybe stay on Friday Flats until you find yourself learning

0:15:21.080 --> 0:15:25.720
<v Speaker 2>how to ski safely, stop and start and make turns

0:15:25.760 --> 0:15:27.440
<v Speaker 2>and not smash into people.

0:15:27.640 --> 0:15:30.440
<v Speaker 1>Okay, and then we get then we get into the pool.

0:15:30.240 --> 0:15:32.200
<v Speaker 2>The tea bar and go, oh my god, Okay, we're

0:15:32.240 --> 0:15:35.240
<v Speaker 2>stopping the there's no more pool analogy. Sorry, I got

0:15:35.280 --> 0:15:39.080
<v Speaker 2>over excited. I diversified my analogy. Bring it back to

0:15:39.120 --> 0:15:40.640
<v Speaker 2>the skiing snowboarding.

0:15:40.960 --> 0:15:43.840
<v Speaker 1>I understand what you are saying. I get it, and

0:15:44.760 --> 0:15:47.160
<v Speaker 1>thank you for indulging me.

0:15:47.760 --> 0:15:50.880
<v Speaker 2>So can I recommend people speaking from experience? Because I

0:15:50.920 --> 0:15:54.640
<v Speaker 2>built a three hundred and something thousand dollars share portfolio

0:15:54.680 --> 0:15:59.320
<v Speaker 2>by doing this is parcels of one thousand dollars thousand

0:15:59.320 --> 0:16:01.960
<v Speaker 2>all the project. I literally hustled one thousand dollars at

0:16:02.000 --> 0:16:03.720
<v Speaker 2>a time. The moment I had a thousand dollars saved up,

0:16:03.760 --> 0:16:06.240
<v Speaker 2>I immediately invested it before I got time to spend it,

0:16:06.680 --> 0:16:09.360
<v Speaker 2>and I reinvested the dividends and it's grown and I

0:16:09.760 --> 0:16:13.240
<v Speaker 2>gamified it by just sticking to that. That's why it's

0:16:13.240 --> 0:16:15.480
<v Speaker 2>a three hundred and something thousand, three hundred and ten

0:16:15.520 --> 0:16:18.440
<v Speaker 2>thousand dollars diversified share port follow It was enough for

0:16:18.480 --> 0:16:21.720
<v Speaker 2>me to fathom and you know, actually see myself coming

0:16:21.760 --> 0:16:25.200
<v Speaker 2>up with that money didn't seem unreasonable. So I just

0:16:25.240 --> 0:16:27.680
<v Speaker 2>got on and did it. And because I've put more in, obviously,

0:16:27.720 --> 0:16:31.120
<v Speaker 2>it's grown significantly with the help of a small, very

0:16:31.240 --> 0:16:32.400
<v Speaker 2>small margin loan attached.

0:16:32.520 --> 0:16:34.120
<v Speaker 1>Yeah, so you're in the lap pool now.

0:16:35.240 --> 0:16:38.000
<v Speaker 2>Yeah, it's actually quite satisfying to think that's never come

0:16:38.040 --> 0:16:41.040
<v Speaker 2>out of my saving. I'm not biting. I'm not biting.

0:16:41.280 --> 0:16:43.560
<v Speaker 1>You just ignored men, didn't you, Because.

0:16:43.320 --> 0:16:44.840
<v Speaker 2>I'm sorry, I just got caught up in the moment

0:16:44.880 --> 0:16:46.320
<v Speaker 2>of prode like think you should.

0:16:46.440 --> 0:16:48.680
<v Speaker 1>You should be proud of that. That is an amazing achievement.

0:16:48.880 --> 0:16:51.120
<v Speaker 2>It is not single dollar has ever come from my

0:16:51.200 --> 0:16:52.600
<v Speaker 2>savings or for my salary.

0:16:53.480 --> 0:16:53.800
<v Speaker 1>Really.

0:16:54.560 --> 0:16:56.560
<v Speaker 2>Oh wow, Yeah, I've hustled hard.

0:16:56.800 --> 0:16:59.560
<v Speaker 1>You certainly have. Okay, there's a few things as you

0:16:59.600 --> 0:17:01.560
<v Speaker 1>mentioned there that I want to follow up on. You

0:17:01.560 --> 0:17:05.040
<v Speaker 1>talk about dividends and at tracking dividends and reinvesting dividends

0:17:05.040 --> 0:17:07.000
<v Speaker 1>and a bunch of other things there. It will take

0:17:07.040 --> 0:17:08.959
<v Speaker 1>a quick break and come back, because that is our

0:17:09.000 --> 0:17:12.960
<v Speaker 1>first five steps, and we have three more steps to

0:17:13.000 --> 0:17:22.560
<v Speaker 1>go straight after the break. Canad Today we are doing

0:17:22.600 --> 0:17:25.200
<v Speaker 1>a step by step guide to investing in shares. We've

0:17:25.240 --> 0:17:29.040
<v Speaker 1>gone through the process of research and finding a platform

0:17:29.560 --> 0:17:35.160
<v Speaker 1>and the minimum amounts or the amounts the meaningful amounts

0:17:35.240 --> 0:17:37.199
<v Speaker 1>to invest in order to make a difference and to

0:17:37.240 --> 0:17:40.240
<v Speaker 1>help build your portfolio and hopefully get ahead into the future.

0:17:41.080 --> 0:17:46.280
<v Speaker 1>Next step, you've bought your shares. Now, what how often

0:17:46.320 --> 0:17:47.720
<v Speaker 1>do you check them?

0:17:48.119 --> 0:17:52.520
<v Speaker 2>I would recommend people never check their portfolios daily or

0:17:52.560 --> 0:17:57.680
<v Speaker 2>even weekly, Okay, I would suggest either monthly or even quarterly.

0:17:58.640 --> 0:18:02.600
<v Speaker 2>Shares are naturally very volatile in a short to medium term,

0:18:03.000 --> 0:18:04.800
<v Speaker 2>so if you're looking at it on a regular basis,

0:18:04.880 --> 0:18:07.800
<v Speaker 2>you can become a little bit emotional and make knee

0:18:07.880 --> 0:18:12.360
<v Speaker 2>jerk reactions which can come with regret. So just look

0:18:12.359 --> 0:18:15.920
<v Speaker 2>at it every now and again, and what I strongly

0:18:15.920 --> 0:18:19.080
<v Speaker 2>suggest people do is instead of checking the value of

0:18:19.119 --> 0:18:24.040
<v Speaker 2>the portfolio, check the passive income. Is your investment portfolio

0:18:24.040 --> 0:18:27.119
<v Speaker 2>still paying you a passive income? Has that passive income grown?

0:18:27.680 --> 0:18:29.240
<v Speaker 2>You know, where are the sort which sources are they

0:18:29.280 --> 0:18:31.120
<v Speaker 2>coming from? Do we need to add more to help

0:18:31.160 --> 0:18:33.880
<v Speaker 2>diversify that portfolio? So look at the passive income. Otherwise

0:18:34.680 --> 0:18:37.679
<v Speaker 2>you can sometimes make regretful decisions. And then obviously you

0:18:37.720 --> 0:18:39.679
<v Speaker 2>want to stay informed what's going on in the world.

0:18:40.080 --> 0:18:42.159
<v Speaker 2>You know what's going on in particular industries and the

0:18:42.200 --> 0:18:45.680
<v Speaker 2>companies that you're investing in, and understand that there are

0:18:45.680 --> 0:18:49.960
<v Speaker 2>times where you know there are headlines. You know, these

0:18:50.080 --> 0:18:53.600
<v Speaker 2>headlines about billions of dollars being wiped off and calls

0:18:53.680 --> 0:18:56.520
<v Speaker 2>of a market crash. There are always going to be

0:18:56.520 --> 0:19:00.399
<v Speaker 2>those stories around. There's nothing new, but knowing what to

0:19:00.440 --> 0:19:03.280
<v Speaker 2>listen to and what to turn the volume down on

0:19:03.800 --> 0:19:08.160
<v Speaker 2>a brilliant resources. I recommend anyone tune into when they're

0:19:08.160 --> 0:19:10.560
<v Speaker 2>worried about whether they should sell, particularly at times like this.

0:19:11.280 --> 0:19:15.879
<v Speaker 2>Is a economist called Shane Oliver from AMP and he

0:19:16.160 --> 0:19:18.320
<v Speaker 2>is brilliant at explaining what is going on in the

0:19:18.320 --> 0:19:22.000
<v Speaker 2>world and what you need to do, and he helps

0:19:22.080 --> 0:19:25.760
<v Speaker 2>really calm your emotions and explain everything and also to

0:19:25.760 --> 0:19:28.679
<v Speaker 2>see the potential long term opportunity in what's going on.

0:19:29.800 --> 0:19:34.320
<v Speaker 2>So you've really got to think about like shares as

0:19:34.440 --> 0:19:37.359
<v Speaker 2>baking a cake. You know, once you put the cake in,

0:19:40.000 --> 0:19:42.000
<v Speaker 2>you're giving me these looks as then oh my god,

0:19:42.040 --> 0:19:42.720
<v Speaker 2>can it not again?

0:19:42.960 --> 0:19:45.199
<v Speaker 1>It is high risk. We've just wasted a whole lot

0:19:45.240 --> 0:19:49.200
<v Speaker 1>of time with a skiing mix with swimming and baking

0:19:49.240 --> 0:19:51.719
<v Speaker 1>a gate. Where is the baking cake going to end up?

0:19:51.760 --> 0:19:53.800
<v Speaker 1>Is it going to end up in the zoo? Perhaps? Well?

0:19:54.080 --> 0:19:56.600
<v Speaker 2>Building a sharebool follows like making a cake. Once you

0:19:56.600 --> 0:19:59.919
<v Speaker 2>put the cake in the oven, if you're constantly opening

0:20:00.160 --> 0:20:03.840
<v Speaker 2>the door every five minutes, you're probably going to ruin

0:20:04.040 --> 0:20:06.200
<v Speaker 2>the cake, or it's going to take a lot longer

0:20:06.400 --> 0:20:08.679
<v Speaker 2>to actually cook and be eaten.

0:20:10.800 --> 0:20:11.480
<v Speaker 1>Is that it? That?

0:20:11.680 --> 0:20:12.560
<v Speaker 2>Is it? My friend?

0:20:14.000 --> 0:20:16.840
<v Speaker 1>You're not introducing another kind of unusual element.

0:20:17.040 --> 0:20:20.160
<v Speaker 2>I promise there'll be no more analogies this episode.

0:20:20.400 --> 0:20:24.520
<v Speaker 1>I promises you unable to keep What about dividends? How

0:20:24.520 --> 0:20:28.800
<v Speaker 1>do they work? And how do you reinvest them?

0:20:29.280 --> 0:20:30.879
<v Speaker 2>Great questions?

0:20:31.000 --> 0:20:32.720
<v Speaker 1>Two questions. I rolled them into one. I gave you

0:20:32.720 --> 0:20:34.280
<v Speaker 1>a bonus okay.

0:20:34.040 --> 0:20:37.639
<v Speaker 2>Two for the press of one. So dividends. Dividends are

0:20:37.760 --> 0:20:42.399
<v Speaker 2>typically paid two times per year, and they get paid

0:20:42.480 --> 0:20:45.240
<v Speaker 2>as a percentage of the share price. So a five

0:20:45.280 --> 0:20:48.359
<v Speaker 2>percent yield means you earn five dollars and dividends for

0:20:48.440 --> 0:20:50.080
<v Speaker 2>say one hundred dollars invested.

0:20:50.400 --> 0:20:53.200
<v Speaker 1>And so this is typically a share of the profits

0:20:53.240 --> 0:20:57.960
<v Speaker 1>of the company after they've reported their earnings the halfway

0:20:58.080 --> 0:20:59.760
<v Speaker 1>mark through the year, and then again at the full

0:21:00.200 --> 0:21:02.920
<v Speaker 1>and if they've got x amount of money that they've

0:21:02.920 --> 0:21:04.880
<v Speaker 1>made in profit, they may choose to pay a dividend

0:21:04.880 --> 0:21:06.280
<v Speaker 1>to their Yes.

0:21:06.240 --> 0:21:08.080
<v Speaker 2>They look at their profits and they go, all right,

0:21:08.200 --> 0:21:11.399
<v Speaker 2>we need to reinvest into the company, employment more staff,

0:21:11.600 --> 0:21:14.240
<v Speaker 2>spend more money on marketing, product development, and so forth.

0:21:14.800 --> 0:21:16.679
<v Speaker 2>And we've also need to pay out some money to

0:21:16.720 --> 0:21:20.320
<v Speaker 2>our shareholders. So they'll split the profits a balance between

0:21:20.320 --> 0:21:23.040
<v Speaker 2>the two in whichever way they see fit. And that's

0:21:23.040 --> 0:21:24.800
<v Speaker 2>when you receive a dividend, which is the equivalent of

0:21:24.800 --> 0:21:29.440
<v Speaker 2>earning rent from an investment property. To reinvest your dividends,

0:21:30.440 --> 0:21:33.240
<v Speaker 2>which essentially means instead of taking that money for yourself

0:21:33.280 --> 0:21:36.879
<v Speaker 2>and spending it, you actually say no, don't pay me

0:21:36.960 --> 0:21:40.280
<v Speaker 2>that dividend. I want to have the money used to

0:21:40.320 --> 0:21:43.760
<v Speaker 2>buy more shares in that company. Now, there are various

0:21:43.800 --> 0:21:46.840
<v Speaker 2>ways of doing this. Some platforms actually will allow you

0:21:46.920 --> 0:21:49.639
<v Speaker 2>to set it up with an online broker, or you

0:21:49.720 --> 0:21:53.280
<v Speaker 2>have to go through the share registry online and tick

0:21:53.320 --> 0:21:55.280
<v Speaker 2>the box for dividend reinvestment.

0:21:56.080 --> 0:21:58.720
<v Speaker 1>And that's all through that. You say, the share registry,

0:21:58.760 --> 0:22:00.600
<v Speaker 1>that's the that's the.

0:22:00.520 --> 0:22:02.000
<v Speaker 2>Body link market services.

0:22:02.119 --> 0:22:04.080
<v Speaker 1>They will be the ones that send you all the

0:22:04.119 --> 0:22:07.040
<v Speaker 1>correspondents in relation to when you purchase your shares. You'll

0:22:07.080 --> 0:22:08.520
<v Speaker 1>get it in the mail or you'll get a Vira

0:22:08.600 --> 0:22:12.040
<v Speaker 1>email saying you congratulations, you're in our shareholder in X company,

0:22:12.480 --> 0:22:14.240
<v Speaker 1>and we are the registry for it and we'll be

0:22:14.320 --> 0:22:16.280
<v Speaker 1>running this et cetera. And they are the ones that

0:22:16.320 --> 0:22:17.840
<v Speaker 1>you can talk to potentially.

0:22:17.440 --> 0:22:19.480
<v Speaker 2>About It's all done online. And I mean you have

0:22:19.520 --> 0:22:21.239
<v Speaker 2>to do this anyway because you need to upload your

0:22:21.240 --> 0:22:23.919
<v Speaker 2>tax file number and your bank account details. How I

0:22:23.960 --> 0:22:28.480
<v Speaker 2>will say, sometimes companies might not necessarily offer an automatic

0:22:28.480 --> 0:22:31.800
<v Speaker 2>dividend reinvestment opportunity, which means you have to take it

0:22:31.840 --> 0:22:34.800
<v Speaker 2>as cash. That doesn't mean you can't reinvest it just

0:22:34.800 --> 0:22:36.959
<v Speaker 2>means you need to manually reinvest it so you get

0:22:37.000 --> 0:22:39.360
<v Speaker 2>receive a dividend, I say a hundred dollars, hold onto

0:22:39.400 --> 0:22:42.040
<v Speaker 2>that one hundred dollars, and then go and buy physically

0:22:42.040 --> 0:22:46.600
<v Speaker 2>yourself one hundred dollars worth more shares. Okay, Dividend reinvestment

0:22:46.680 --> 0:22:48.520
<v Speaker 2>is very powerful because you don't have to pay brokerage,

0:22:48.520 --> 0:22:50.399
<v Speaker 2>so it actually can help you save money. But you

0:22:50.440 --> 0:22:53.919
<v Speaker 2>need to make sure your portfolio is diversified also on

0:22:53.960 --> 0:22:56.480
<v Speaker 2>that not dibidends. Some companies may go through a period

0:22:56.480 --> 0:22:58.760
<v Speaker 2>of time where they have to pause a dividend reinvestment plan,

0:22:59.160 --> 0:23:01.479
<v Speaker 2>which means you have to take it as cash and

0:23:01.520 --> 0:23:03.720
<v Speaker 2>you still have to pay tax in coome tax that

0:23:03.880 --> 0:23:06.159
<v Speaker 2>is on that dividend, whether it's reinvested or not as well,

0:23:06.200 --> 0:23:07.760
<v Speaker 2>which a lot of people sort of miss.

0:23:08.040 --> 0:23:09.720
<v Speaker 1>Yeah, and I want to talk to you then about

0:23:09.720 --> 0:23:13.399
<v Speaker 1>the tax implications because this is and you've talked about

0:23:13.400 --> 0:23:17.520
<v Speaker 1>that in the past, about people not realizing that they

0:23:17.520 --> 0:23:20.639
<v Speaker 1>still need to pay tax on these dividends, these earnings.

0:23:20.680 --> 0:23:24.399
<v Speaker 1>But there's also like franking, credits and all kinds of

0:23:24.720 --> 0:23:27.399
<v Speaker 1>other elements that come in when we're talking about dividends,

0:23:28.320 --> 0:23:31.960
<v Speaker 1>and it is helpful to have a good accountant when

0:23:32.000 --> 0:23:32.840
<v Speaker 1>it comes to all of this.

0:23:33.720 --> 0:23:36.400
<v Speaker 2>Yes, definitely because you need to look at the dates,

0:23:36.640 --> 0:23:39.160
<v Speaker 2>so you know how long have you held that particular

0:23:39.200 --> 0:23:42.080
<v Speaker 2>asset forward, do you qualify for any of capital gains,

0:23:42.119 --> 0:23:45.400
<v Speaker 2>tax discounts? Really important? And then there's things like franking credits.

0:23:45.840 --> 0:23:48.200
<v Speaker 2>We almost need to do I think an episode purely

0:23:48.240 --> 0:23:51.080
<v Speaker 2>on franking credits because it's it sounds a lot more

0:23:51.119 --> 0:23:53.480
<v Speaker 2>complicated than what it is, but it's incredibly valuable, particularly

0:23:53.560 --> 0:23:55.920
<v Speaker 2>for people who are approaching retirement or are retired.

0:23:56.080 --> 0:23:58.000
<v Speaker 1>Yeah, it's one of the main kind of benefits to

0:23:58.040 --> 0:24:01.800
<v Speaker 1>investing in Australia as opposed to investing overseas. The franking

0:24:01.800 --> 0:24:03.000
<v Speaker 1>credit system we have here.

0:24:03.040 --> 0:24:05.679
<v Speaker 2>That's why I love Australian industrial shares. But you know,

0:24:06.240 --> 0:24:09.560
<v Speaker 2>having knowing your franking credits, the tax credits that is

0:24:09.600 --> 0:24:11.919
<v Speaker 2>attached to each of them, is really important. And then

0:24:11.920 --> 0:24:15.399
<v Speaker 2>obviously being I wouldn't say meridiculous, but you need to

0:24:15.400 --> 0:24:19.040
<v Speaker 2>be organized with keeping a record of what date you purchased,

0:24:19.160 --> 0:24:22.400
<v Speaker 2>what dates you know, how much was reinvested at what

0:24:22.440 --> 0:24:25.679
<v Speaker 2>share price, you know, what if the costs, how much

0:24:25.680 --> 0:24:27.879
<v Speaker 2>you've spent on brokered all those sorts of little things

0:24:28.640 --> 0:24:30.960
<v Speaker 2>that you need to do and be on top of.

0:24:31.880 --> 0:24:34.360
<v Speaker 1>Did you have a question for me earlier. I remember

0:24:34.480 --> 0:24:35.000
<v Speaker 1>earlier in.

0:24:34.960 --> 0:24:36.920
<v Speaker 2>The episode, had you reminded me? Because I wish you

0:24:36.960 --> 0:24:37.680
<v Speaker 2>would have forgotten.

0:24:37.680 --> 0:24:42.439
<v Speaker 1>Well, I'm just thinking of potentially listeners who are hanging

0:24:42.440 --> 0:24:44.399
<v Speaker 1>out for this question to hear me put on the spot,

0:24:44.440 --> 0:24:47.680
<v Speaker 1>and if we didn't deliver, that would be an unsatisfied customer.

0:24:48.320 --> 0:24:50.600
<v Speaker 2>Have you as you know? Now to go back, We've

0:24:50.640 --> 0:24:52.280
<v Speaker 2>been doing this podcast for how many years?

0:24:52.920 --> 0:24:55.160
<v Speaker 1>What? Three or three and a half four?

0:24:56.080 --> 0:24:58.520
<v Speaker 2>I think it's three. It feels like a it'll be

0:24:58.520 --> 0:25:06.080
<v Speaker 2>approaching three. So have you started an investment portfolio? Well,

0:25:06.080 --> 0:25:07.320
<v Speaker 2>started investing at least?

0:25:10.160 --> 0:25:15.520
<v Speaker 1>Ah, I taught you. You have taught me a lot.

0:25:15.800 --> 0:25:18.040
<v Speaker 1>You know what I have done? Yes, you know what

0:25:18.080 --> 0:25:23.240
<v Speaker 1>I have done. I have started seeing a financial planner, Okay,

0:25:24.280 --> 0:25:26.639
<v Speaker 1>and investing is all going to come as part of that,

0:25:27.040 --> 0:25:27.800
<v Speaker 1>all right, all right?

0:25:27.840 --> 0:25:28.240
<v Speaker 2>All right?

0:25:28.280 --> 0:25:30.600
<v Speaker 1>So if you have taught me nothing else, and you

0:25:30.640 --> 0:25:33.280
<v Speaker 1>have taught me a lot of things, the number one

0:25:33.400 --> 0:25:36.119
<v Speaker 1>lesson I have taken from you is the importance of

0:25:36.280 --> 0:25:41.800
<v Speaker 1>getting professional advice, all right, all right, So therefore I

0:25:41.840 --> 0:25:45.480
<v Speaker 1>think I've managed to evade any kind of trouble from you.

0:25:46.000 --> 0:25:48.719
<v Speaker 1>Can I ask you one more question? Yes? And I've

0:25:48.800 --> 0:25:51.640
<v Speaker 1>left you no time to answer this. There's this whole

0:25:51.680 --> 0:25:56.520
<v Speaker 1>principle of with shares, the idea being that that time

0:25:56.840 --> 0:25:59.680
<v Speaker 1>in the market is so much more important than trying

0:25:59.720 --> 0:26:04.080
<v Speaker 1>to time the market itself. How do shares then work

0:26:04.280 --> 0:26:09.719
<v Speaker 1>as a long term, long, long term, potentially investment strategy,

0:26:09.800 --> 0:26:11.679
<v Speaker 1>that it's not so much about trying to find the

0:26:11.760 --> 0:26:13.399
<v Speaker 1>right time to buy into the market, that it is

0:26:13.400 --> 0:26:14.920
<v Speaker 1>about kind of how this is going to play out

0:26:14.920 --> 0:26:16.600
<v Speaker 1>over ten, fifteen to twenty plus years.

0:26:17.200 --> 0:26:20.359
<v Speaker 2>Well, when you look at the historical performance of all

0:26:20.400 --> 0:26:22.440
<v Speaker 2>the different asset classes, and if anyone wants to get

0:26:22.440 --> 0:26:25.520
<v Speaker 2>a quick, easy free resource, go to the Vanguard website

0:26:25.560 --> 0:26:28.200
<v Speaker 2>and type in Vanguard chart because you can actually see

0:26:28.240 --> 0:26:30.679
<v Speaker 2>all these different color lines. They're really easy to read.

0:26:30.720 --> 0:26:35.119
<v Speaker 2>But time in the market wins, so historically the share

0:26:35.119 --> 0:26:39.520
<v Speaker 2>market rises over the long run. So staying the course,

0:26:39.600 --> 0:26:42.480
<v Speaker 2>going the distance reduces your risk of trying to miss

0:26:42.520 --> 0:26:46.480
<v Speaker 2>the best market days. And even experts who've been doing

0:26:46.520 --> 0:26:49.880
<v Speaker 2>this for ten, fifteen, twenty, thirty forty years still get

0:26:49.920 --> 0:26:52.359
<v Speaker 2>this wrong. And you also look at the when you

0:26:52.400 --> 0:26:54.680
<v Speaker 2>do get it right, the capital games attacks that comes

0:26:54.720 --> 0:26:57.520
<v Speaker 2>off your profit and then obviously the cost of getting

0:26:57.520 --> 0:26:59.359
<v Speaker 2>back into the market and then timing to try and

0:26:59.359 --> 0:27:01.840
<v Speaker 2>get back in the right point. So there's a lot

0:27:01.880 --> 0:27:04.520
<v Speaker 2>of danger in this. So if you had invested ten

0:27:04.560 --> 0:27:07.640
<v Speaker 2>thousand dollars into the AX two hundred and twenty twenty

0:27:08.080 --> 0:27:11.800
<v Speaker 2>and left it untouched, it would be worth significantly more

0:27:12.119 --> 0:27:17.200
<v Speaker 2>than it would be worth significantly more today. So investing

0:27:17.280 --> 0:27:21.159
<v Speaker 2>is like growing a tree. You know, you I promised

0:27:21.160 --> 0:27:22.920
<v Speaker 2>there wouldn't best no.

0:27:22.920 --> 0:27:26.040
<v Speaker 1>More analogies, and now we are. We have gone from

0:27:26.160 --> 0:27:30.040
<v Speaker 1>skiing into the kitchen to bake a cake. Now we

0:27:30.080 --> 0:27:32.720
<v Speaker 1>are growing a tree. Go on, plant those seats, all right.

0:27:32.880 --> 0:27:35.879
<v Speaker 2>It's like planting growing a tree. You plant the seat

0:27:35.920 --> 0:27:38.800
<v Speaker 2>and you see nothing for maybe a couple of years,

0:27:38.800 --> 0:27:40.840
<v Speaker 2>and you think, oh my gosh, I planted. It's done nothing.

0:27:41.200 --> 0:27:42.879
<v Speaker 2>And then you might see a little sprout and you think, oh,

0:27:43.040 --> 0:27:45.280
<v Speaker 2>is that all I've got? That's nothing. It looks like

0:27:45.280 --> 0:27:47.920
<v Speaker 2>a weed. You would get tempted to pull it out

0:27:47.960 --> 0:27:51.679
<v Speaker 2>and start all over again. But if you just trust

0:27:51.720 --> 0:27:56.040
<v Speaker 2>the process, make sure it's got some sunlight, some water,

0:27:57.000 --> 0:28:01.440
<v Speaker 2>you know, watch the pests, then the elements, let it

0:28:01.600 --> 0:28:05.520
<v Speaker 2>do its thing, and over time it grows into fruit

0:28:05.560 --> 0:28:12.040
<v Speaker 2>tree and it gives you back fruit berries, apples, peaches, pears,

0:28:12.040 --> 0:28:15.359
<v Speaker 2>whatever you like, as you can enjoy the fruits of

0:28:15.400 --> 0:28:18.520
<v Speaker 2>your patients, your dedication and your commitment because you've just

0:28:19.320 --> 0:28:22.359
<v Speaker 2>not tried to time the right time to plant, but

0:28:22.400 --> 0:28:24.919
<v Speaker 2>you've just let it's time work. It's magic for you.

0:28:25.400 --> 0:28:28.119
<v Speaker 1>Are you using those fruits in the cake that you're making?

0:28:28.640 --> 0:28:32.040
<v Speaker 2>I could make I make a really good brownie and

0:28:32.080 --> 0:28:33.959
<v Speaker 2>I sometimes put raspberries in that. So if I can

0:28:33.960 --> 0:28:37.120
<v Speaker 2>filt me use raspberries, it's hay packup mix, I will.

0:28:37.480 --> 0:28:40.120
<v Speaker 1>Okay, And that's good fuel for skiing.

0:28:40.400 --> 0:28:42.760
<v Speaker 2>It is, But I don't go and open the door

0:28:42.800 --> 0:28:44.280
<v Speaker 2>all the time and I'm checking the brownies.

0:28:46.240 --> 0:28:48.840
<v Speaker 1>God, this is just one of those episodes where you'll

0:28:48.840 --> 0:28:50.520
<v Speaker 1>have to listen to it three times just to make

0:28:50.600 --> 0:28:53.440
<v Speaker 1>sense of all of the various analogies, which I'm sorry

0:28:53.440 --> 0:28:55.920
<v Speaker 1>I have actually just deliberately tried to confuse you there

0:28:55.920 --> 0:28:58.440
<v Speaker 1>At the end. I think, I think that's a great job.

0:28:58.640 --> 0:28:59.080
<v Speaker 1>You know what?

0:28:59.560 --> 0:28:59.800
<v Speaker 2>That was?

0:28:59.840 --> 0:29:05.480
<v Speaker 1>A what eight step program to investing into shares? I

0:29:05.520 --> 0:29:10.160
<v Speaker 1>think gold star to us? Can we do that? Yes?

0:29:10.240 --> 0:29:13.200
<v Speaker 1>We can award ourselves a gold star. If anybody wants

0:29:13.240 --> 0:29:15.520
<v Speaker 1>more information from you, Canna, where do they find you.

0:29:15.800 --> 0:29:18.280
<v Speaker 2>If you're a confused by all my different analogies, please

0:29:18.320 --> 0:29:20.239
<v Speaker 2>feel free to reach out to me on Instagram at

0:29:20.280 --> 0:29:22.520
<v Speaker 2>Sugar Mama TV and I'll happily come back to you

0:29:22.600 --> 0:29:23.760
<v Speaker 2>as soon as possible with.

0:29:23.760 --> 0:29:25.120
<v Speaker 1>A personalized analogy.

0:29:25.360 --> 0:29:27.400
<v Speaker 2>Yes, so I will even jump on a call and

0:29:27.440 --> 0:29:29.240
<v Speaker 2>help I explain something.

0:29:29.520 --> 0:29:32.040
<v Speaker 1>To confuse you even more. You can hear me every

0:29:32.080 --> 0:29:34.600
<v Speaker 1>day with Sean Aylmer on Fear and Greed, daily business

0:29:34.600 --> 0:29:36.560
<v Speaker 1>news for people who make their own decisions. Thank you

0:29:36.600 --> 0:29:38.400
<v Speaker 1>for listening to how Do They Afford That? Remember to

0:29:38.440 --> 0:29:40.520
<v Speaker 1>hit follow on the podcast, and the best thing you

0:29:40.560 --> 0:29:43.680
<v Speaker 1>can do is to tell somebody else. Send them a

0:29:43.720 --> 0:29:46.480
<v Speaker 1>link to this episode if you think they might be interested,

0:29:46.520 --> 0:29:48.560
<v Speaker 1>spread the word about how do they afford that? Thank

0:29:48.560 --> 0:29:50.400
<v Speaker 1>you for your company. Join us again next week