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Speaker 1: Good morning everyone, and welcome back to Sugar Mama's Fireplay podcast,

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Speaker 1: the podcast that ignites your financial journey with inspiring stories

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Speaker 1: and innovative strategies. I am your host, financial planner, Anna Campbell,

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Speaker 1: and today we are back chatting with my financial mentor,

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Speaker 1: my only financial mentor, and that is, of course, the

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Speaker 1: one and only Peter Thornhill, the self funded retiree that

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Speaker 1: just simply gets richer and richer as time goes by.

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Speaker 1: And he has written his own book, Motivated Money, which

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Speaker 1: is one of the best books you could possibly read

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Speaker 1: if you are serious about being financially independent and having true, authentic,

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Speaker 1: sustainable freedom in your life. So we're going to be

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Speaker 1: chatting with Peter. I'm going to be asking him a

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Speaker 1: whole pile of questions and I guess you could say

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Speaker 1: maybe reinjecting that serious financial motivation back in your life

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Speaker 1: to think about your financial stress. Now, before we begin,

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Speaker 1: a reminder that all of my content will it be

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Speaker 1: something on Instagram, podcast, YouTube. It's always general in nature

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Speaker 1: and for educational purposes only, so please always bear that

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Speaker 1: in mind. All right, let's get started. Peter, Thank you

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Speaker 1: so much for coming in again. I'm so incredibly grateful

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Speaker 1: for how generous you are with your time and also

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Speaker 1: how you help educate and inspire every day people about

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Speaker 1: the power of Australian Industrial shares and investing for the Lauren,

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Speaker 1: how are you today?

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Speaker 2: I'm absolutely fine, Thank you Kenna, and delighted to be back.

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Speaker 1: Well, thank you coming in now. Can you give me

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Speaker 1: a bit of an elevator pitch that is like a

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Speaker 1: thirty second spiel as to what your personal financial strategy

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Speaker 1: or philosophy.

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Speaker 2: Is basically buying quality businesses that produce a growing income

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Speaker 2: stream and allow my wife and I to float through

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Speaker 2: life in a totally sustainable, enjoyable and amazing manner.

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Speaker 1: Can I ask you who actually inspired you to start

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Speaker 1: this journey and to change the way that you're investing

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Speaker 1: away from the generic you know, do a risk profile,

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Speaker 1: go with a balance manage fund. Who was the person

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Speaker 1: that actually led you to this path and enlightened you

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Speaker 1: with the power of Australian Industrial Shares.

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Speaker 2: I think that there was no one individual Canna. It

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Speaker 2: was more the way things evolved in terms of career.

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Speaker 2: So the eighteen odd years that began as a working

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Speaker 2: holiday in England with my wife and stretched out to

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Speaker 2: eighteen years. The only reason I came back to Australia

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Speaker 2: was because I was headhunted. But it was that apprenticeship

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Speaker 2: in England where I guess the reasons for investing in

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Speaker 2: shares was slowly absorbed by me as I was surrounded

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Speaker 2: by so many successful investors. And it's that legacy that

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Speaker 2: carries us today in the lap of luxury, because.

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Speaker 1: Would you say, like Osmosis, almost you just absorbed their

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Speaker 1: strategies because the proof was in the pudding and could

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Speaker 1: see it was working.

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Speaker 2: Yes, there was no sort of epiphany. But coming back

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Speaker 2: to Australia, the difference between investing attitudes in the UK

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Speaker 2: and in Australia are just chalk and cheese. Can you

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Speaker 2: explain further well, Property in England is largely to live in,

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Speaker 2: just a lifestyle asset, a lifestyle act. Yeah, And in

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Speaker 2: Australia it's the be all and end or of a

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Speaker 2: person's life. And it's that the bulk of the productive

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Speaker 2: capital of this country is locked up in residential property.

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Speaker 2: The bulk of Australian businesses are owned by overseas investors.

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Speaker 2: So we have I think the figures for twenty two

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Speaker 2: over forty billion dollars of dividends from Australian companies disappear

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Speaker 2: overseas because Australians don't like shares because they're risky.

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Speaker 1: Our ego is completely fixated and obsessed with property, even

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Speaker 1: though it is quite often the stupidest and most painfully

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Speaker 1: expensive asset to hold. But we're just fixated on the

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Speaker 1: idea of a tangible asset, even though it can be damaging.

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Speaker 2: I know, and it knocks my socks up. You know,

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Speaker 2: if you own a property, what have you got, whether

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Speaker 2: it's a rental property, your own, You've got rates, You've

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Speaker 2: got repairs, You've on and on and on. I buy shares,

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Speaker 2: what do I pay from that point onwards? Nothing? And

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Speaker 2: they pay me. And if you have an investment property

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Speaker 2: and you get rent, well, negative gearing would have to

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Speaker 2: be about the dumbest thing I've ever heard of. You

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Speaker 2: borrow money to buy something that doesn't cover the interest costs,

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Speaker 2: and apparently that's really good because you avoid paying tax

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Speaker 2: on some of your income. Oh do you? But despite that,

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Speaker 2: when I get a dividend, that's all well and good,

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Speaker 2: But you've got to add the franking tax credits on

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Speaker 2: top and the fact that owning those shares basically holds me,

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Speaker 2: costs me little or nothing.

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Speaker 1: You know what I find it is the retirees who

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Speaker 1: are late in their retirement that only finally then cotton

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Speaker 1: on to how powerful franking credits are because they get

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Speaker 1: their refunds back of those franking credits, and it boosts

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Speaker 1: the retirees income from say forty five thousand dollars to

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Speaker 1: say fifty two fifty three thousand dollars. Only then later

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Speaker 1: life are they realizing how powerful and how valuable and

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Speaker 1: how important those franking credits are. But they've wasted so

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Speaker 1: much time in their life not actually acquiring those assets.

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Speaker 1: Like it's the penny's dropped very late in life, unfortunately.

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Speaker 1: But anyone who's listened to this podcast today actually has

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Speaker 1: the advantage and the opportunity to learn this, to understand it,

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Speaker 1: and then but and apply it and accumulate these types

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Speaker 1: of quality assets.

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Speaker 2: Can It grieves me and I try not to spend

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Speaker 2: too much more time thinking about it, but financial literacy

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Speaker 2: in this country is virtually non existent.

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Speaker 1: It's embarrassing and I'm ashamed that it's so bad. And

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Speaker 1: that's what I'm obviously trying to do something about it.

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Speaker 1: But you know, and at times I say this personally

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Speaker 1: like it feels like I'm banging my head against a

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Speaker 1: brick wall. You know, you'll see something, you know that

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Speaker 1: have finfluence, so someone who's not even qualified talking about

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Speaker 1: like trading a certain stock or you know, purchasing this property.

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Speaker 1: But then you know, you put something up about a

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Speaker 1: share portfolio. The other day, I shared your chart of

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Speaker 1: one hundred thousand dollars invested in nineteen seventy nine what

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Speaker 1: would be worth today, and it is worth seventeen point

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Speaker 1: four nine million dollars. I think it got seventeen likes

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Speaker 1: or something ridiculous. And then the comments I got were, well,

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Speaker 1: I don't have this much time to invest, And I'm like,

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Speaker 1: you don't have to necessarily build a seventeen point five

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Speaker 1: million dollar investment portfolio, build a one point seven million

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Speaker 1: dollar investment four follow that's also incredibly amazing. But we

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Speaker 1: are feeding people these solutions and strategies that are based

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Speaker 1: on evidence and facts, and they aren't being absorbed, Like

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Speaker 1: what is this? Why are people being so thick? And

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Speaker 1: I sound like I'm being a bit of a bitch,

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Speaker 1: but I mean, I follow this advice myself, and I

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Speaker 1: see for myself how valuable this industrial share path is.

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Speaker 1: What's going on?

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Speaker 2: Yep, It's a sad fact of life, Kenna. And the

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Speaker 2: reason that I spout a lot and the reason I

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Speaker 2: wrote the book, Yeah, people deserve a hell of a

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Speaker 2: lot better. We're a relatively young country. So the history

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Speaker 2: has been basically property from the moment Captain Cook set

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Speaker 2: foot and it has remained so. And it is a

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Speaker 2: very sad waste of the productive assets of this country.

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Speaker 2: And foreign ownership of our Australian companies. I could weep.

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Speaker 2: You know. We talk about the Big Australian BHP. BHP

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Speaker 2: is over seventy percent foreign owned. Where do the dividends go? Overseas?

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Speaker 2: Rio is the same. And you can look at virtually

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Speaker 2: any Australian company and often the shareholding is majority owned

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Speaker 2: by overseas investors. So tens of billions of dollars flow

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Speaker 2: out of this country every year as the dividends disappear.

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Speaker 1: It's just heartbreaking, isn't it?

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Speaker 2: It is? It just seriously is Look.

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Speaker 1: I can proudly report that the listeners of Sugarama's Fireplate

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Speaker 1: and how they thought that absolutely love what you have

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Speaker 1: to say, and you know, whenever we post something now

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Speaker 1: that you've said, or a clearp or you know, an

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Speaker 1: audio file, it goes mental and people starting to really listen,

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Speaker 1: and people are finding your philosophy and your concept a

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Speaker 1: breath of fresh air. Now, I want to talk to

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Speaker 1: you about the shift are listed investment companies you've a

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Speaker 1: views have explained in the past, predominantly your portfolio was

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Speaker 1: the individual companies, you know, the supermarkets, the banks, the

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Speaker 1: transportation companies, the pharmaceutical companies and so forth. But over

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Speaker 1: the last maybe ten years, you've been shifting those assets

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Speaker 1: slowly and steadily into your listed investment companies. Can you,

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Speaker 1: obviously I understand the benefits of this, but can you

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Speaker 1: explain to our listeners why you chose to do this

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Speaker 1: and the benefits of doing this?

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Speaker 2: Okay, the one thing I don't want to do is

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Speaker 2: spend one minute of the time that I have left

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Speaker 2: on this planet looking at shares. And it concerns me

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Speaker 2: the number of people who will, probably predominantly males, who

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Speaker 2: retire and then spend their time in front of a

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Speaker 2: computer watching shares and trading shares. And if I can

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Speaker 2: give you the definitions invest the use of money productively

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Speaker 2: so that a regular income is obtained, speculate buying and

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Speaker 2: selling in an attempt to benefit from a fluctuation in

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Speaker 2: the price. Now a lot of what you see in

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Speaker 2: the media, and god, bitcoin, I find difficulty using the word.

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Speaker 2: But the media talks about people who invest in bitcoin,

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Speaker 2: they talk about people who invest in diamonds, who invest

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Speaker 2: in and so on. You cannot invest in any of

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Speaker 2: those items. You can speculate, And I wish the media

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Speaker 2: would define what they're doing rather than just classifying anything

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Speaker 2: you buy jewelry, wine is an investment, it's not. It's

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Speaker 2: the use of money productively so that a regular income

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Speaker 2: is obtained. And therein lies the key, very simple definitions.

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Speaker 1: Exactly it's two dimensional assets or forget about it. I'm

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Speaker 1: going home. I'm not listening at all. And if people

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Speaker 1: just don't realize the risk that they're actually taking to

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Speaker 1: go and speculate with those types of assets, they have

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Speaker 1: no idea the potential danger they're inflicting upon themselves. And

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Speaker 1: at the end of the day, whether your portfolio is

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Speaker 1: worth two million dollars, if it's not paying you anything,

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Speaker 1: what's its purpose. I would rather have a one million

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Speaker 1: dollar asset paying me, say, fifty thousand dollars a year

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Speaker 1: and growing consistently, consistently growing passive income than two million

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Speaker 1: dollars in something that I don't even know if I

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Speaker 1: can actually sell at that price because there isn't necessarily liquidity,

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Speaker 1: And then I've got to go and pay a whole

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Speaker 1: pile of capital gains at tax, Like, how does that

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Speaker 1: help me in my financial freedom? Nothing at all? And

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Speaker 1: the risk and stress as well, just it's just absolute stupidity.

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Speaker 2: Well that's the sad part kind of you know, fear

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Speaker 2: is based on ignorance. That's why people don't like shares.

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Speaker 2: They think they know property because they're surrounded by it.

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Speaker 2: And I've had people say to me, oh, yeah, but

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Speaker 2: you know I can go and see the property and

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Speaker 2: you know, tangible. Yeah, apparently they've never walked into a

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Speaker 2: supermarket and acknowledged that as being something. But they've never

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Speaker 2: walked into a bank.

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Speaker 1: Oh dear, Well, you know, we were just chatting obviously

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Speaker 1: before we walked into the studio, and we're talking about

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Speaker 1: you know, we're fixated as a country on property. But

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Speaker 1: what do we do when we go and buy a property.

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Speaker 1: Most of us give it a fresh, fresh lick of paint.

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Speaker 1: Where do we buy a paint from. We might get

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Speaker 1: a tradesman, and we might buy a new washing machine

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Speaker 1: or a new fridge. We might maybe do a bit

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Speaker 1: of a renovation, you know, we might buy a new sofa.

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Speaker 1: Where is all that money is going to the businesses?

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Speaker 1: People just think so one dimensionally with property and they're

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Speaker 1: missing ninety five percent of the other side of the

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Speaker 1: story and how to build wealth. So with you switching

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Speaker 1: from the individual stocks into listed investment companies, you mentioned

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Speaker 1: you want your time back. You don't want to be

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Speaker 1: sitting in front of a computer screen all day. And

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Speaker 1: the simplicity obviously of having a listed investment company is

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Speaker 1: tax reporting. You're not collecting to probably if you had

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Speaker 1: to say, thirty stocks in your portfolio and each of

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Speaker 1: them pay a dividend twice a year, the amount of

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Speaker 1: paperwork involved. You're looking at sixty statements to be able

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Speaker 1: to handovers to your account it or to do yourself to

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Speaker 1: try and do your taxes. It's all done simply within

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Speaker 1: two simple, consolidated, concise statements.

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Speaker 2: And ken of what concerns me is people who buy

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Speaker 2: shares at an early stage and then use the dividend

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Speaker 2: reinvestment plans. So two dividends a year over thirty years

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Speaker 2: gives you sixty individual capital gains tax that you're going

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Speaker 2: to have to deal with if you ever come to

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Speaker 2: sell the shares.

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Speaker 1: Well, my goal is never ever to sell. I will

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Speaker 1: pass that tax issue onto my state. They can deal

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Speaker 1: with it. But I mean, I have always been acquired.

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Speaker 1: I mean, and I will put my hand on my heart.

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Speaker 1: I do own property, but I own property to get

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Speaker 1: back into shares because the bank will lend me money

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Speaker 1: at a lot lower interest rate than I will if

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Speaker 1: I didn't have property there. But all I want to

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Speaker 1: do is just continue on acquiring reinvestmor I can purchase

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Speaker 1: more and continue to make sure my portfolio is diversified.

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Speaker 1: And I, like you, am very much aligned to the

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Speaker 1: I guess you could say the simplicity and the peace

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Speaker 1: of mind and the delegation of a listed investment company.

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Speaker 1: And that is definitely something I have started to do

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Speaker 1: with my dividends, coming in using them to require more

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Speaker 1: of my listed investment companies because there's a lot less

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Speaker 1: paperwork involved and there's a lot more time that I

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Speaker 1: get back as an investor, building my passive income through dividends.

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Speaker 2: I couldn't agree more Kenna, and again we're behind the

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Speaker 2: eight ball. A teen years in Europe, I became very

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Speaker 2: familiar with the fact that long term residential leaseholds on

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Speaker 2: most property in Europe gives people security of tenure in

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Speaker 2: this country because a lot of the property is owned

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Speaker 2: by institutions in Europe. In Australia, residential property is owned

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Speaker 2: by idiot owners who then rented out. But you're on

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Speaker 2: what you know, today's notice to quit.

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Speaker 1: There's no stability whatsoever. And until our government looks at

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Speaker 1: changing the regulations about immersent properties and making sure that

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Speaker 1: you have to sign you know, you have to make

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Speaker 1: the property available for five years, ten years, whatever it

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Speaker 1: may be, I don't see any other solution in the meantime.

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Speaker 2: No, it's sadly our politicians are all Australians and.

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Speaker 1: They all own property themselves.

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Speaker 2: Having laid my hands on the Register p Unary Interests

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Speaker 2: for the Australian Federal Parliament and if anyone's interested, it

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Speaker 2: is publicly available. I spent a couple of nights doing

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Speaker 2: a little bit of research. The vast majority of the

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Speaker 2: politicians in this country are up to their eyeballs in

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Speaker 2: negatively geared property, not a lot owned shares, which means

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Speaker 2: the politicians.

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Speaker 1: Are just as stupid as everyone else is.

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Speaker 2: Correct, which means meant for me that when I become

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Speaker 2: Prime Minister, I'm not going to have one Australian in

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Speaker 2: my cabinet. I'm going to hand pick every one of

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Speaker 2: the members of my parliament overseas and hopefully create a

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Speaker 2: mix that will give us Australia as a whole the

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Speaker 2: productive use of its capital rather than the totally unproductive

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Speaker 2: use it has.

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Speaker 1: Now, what are your thoughts for people who are he

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Speaker 1: to start investing and they understand everything you're saying about

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Speaker 1: the property market, it's not for them. They want to

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Speaker 1: build this diversified investment portfolio of growing passive income. What

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Speaker 1: are your thoughts of starting with a listed investment company

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Speaker 1: and then as your experience and confidence changes and evolves

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Speaker 1: over time, then thinking, you know what, I'd like to

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Speaker 1: actually own more of that bank or more of that supermarket.

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Speaker 1: Do you think that that's still something that people can

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Speaker 1: consider as a strategy but at least they've gotten started

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Speaker 1: the meantime, or you think just stick with the list

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Speaker 1: investment companies.

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Speaker 2: The whole way through their life is not should not

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Speaker 2: be involved in something they know nothing about. If you're

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Speaker 2: going to buy a direct share, are you going to

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Speaker 2: go and interview the board of directors? Are you going

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Speaker 2: to go and analyze their financials? Leave it out and

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Speaker 2: leave that to the specialists. You get on.

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Speaker 1: With your life, get your time back. Don't sit in

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Speaker 1: front of a computer screen and the stress and pressure

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Speaker 1: of making you know, some may people were scared of

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Speaker 1: making the wrong decision that they actually end up doing

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Speaker 1: nothing at all.

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Speaker 2: Correct. Focus on the things that are important in your life,

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Speaker 2: your family, your career, and your friends, and your health

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Speaker 2: and your health.

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Speaker 1: How many listed investment companies do you think one needs

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Speaker 1: in their investment portfolio? This is when I really struggle

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Speaker 1: with some interest to hear your thoughts.

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Speaker 2: Well, I've got four, and that's probably because there are

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Speaker 2: I could have five or six. Maybe six would be

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Speaker 2: the ideal because then you're getting twelve dividends a year.

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Speaker 2: But I've stripped it back to just four, and honestly,

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Speaker 2: the only contact I guess I have at large is

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Speaker 2: I get notification the dividends have arrived. If you own six,

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Speaker 2: you get twelve. I own four. I get eight dividends

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Speaker 2: a year, but oh my god, are they large dividends.

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Speaker 1: Oh, it's previously spoken about what your retirement looks like,

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Speaker 1: and you by far have the best retirement of anyone

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Speaker 1: I know, like multiple trips overseas with your beautiful wife.

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Speaker 1: Can you tell everyone again about your experience with your granddaughters.

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Speaker 2: Yes, what a joy to be able to spoil them

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Speaker 2: rotten and have so much fun with them. And yeah,

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Speaker 2: you know it's nerve armor and not one ounce of

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Speaker 2: financial concern at all.

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Speaker 1: That must feel so liberating.

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Speaker 2: It is I sleep at night, I wake up and

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Speaker 2: I'm full of joy for the next day we have

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Speaker 2: to see the granddaughters, what have you? But oh god, yeah, no,

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Speaker 2: I'm incredibly lucky, Canna.

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Speaker 1: Well, they're lucky to have you as well. Now I

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Speaker 1: can ask you how we how does one remove themselves

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Speaker 1: or ignore? And I'll probably just answer the question by

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Speaker 1: asking you, but how do we learn to turn down

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Speaker 1: the noise when it comes to the media and these

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Speaker 1: ridiculous clickbait driven headlines? You know, X billion of dollars

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Speaker 1: wiped off mom and dad investors today? How do we

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Speaker 1: just learn to shut it off? And is where do

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Speaker 1: you go to get your news and stay informed.

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Speaker 2: I get Actually I'm very naughty now because I only

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Speaker 2: get one newspaper. And the only reason I get it

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Speaker 2: is so my wife can do the sudoku and the crossword.

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Speaker 2: And then is she used to wrap up the vegetables

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Speaker 2: before we toss them in the other bin. But yeah,

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Speaker 2: I don't have an easy answer to that. It's just

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Speaker 2: you know, the way life is. I mean, I cannot

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Speaker 2: ignore what's going on in the world. But the important

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Speaker 2: thing to remember is that history repeats itself over and

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Speaker 2: over and over again. So we're going to have a

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Speaker 2: crisis in the seventies. They are oil crisis, back in

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Speaker 2: nineteen seventy three, share markets tank, the global financial crisis,

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Speaker 2: the COVID, it just goes on and on and on.

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Speaker 2: But to suggest that this is a reason for saying,

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Speaker 2: oh God, you know shares blah blah blah blah, do

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Speaker 2: all the businesses in the world shut down?

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Speaker 1: Absolutely not, absolutely not.

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Speaker 2: And I think human endeavor is the driving force. So

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Speaker 2: one just sits back and enjoys the efforts of a

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Speaker 2: lot of very productive people doing very very good jobs

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Speaker 2: who then pay us.

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Speaker 1: And if anything, when there are these clickbait driven times,

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Speaker 1: you know about very normal and natural short term quality

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Speaker 1: in the market. Quite often the best opportunities to be

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Speaker 1: able to acquire bigger and better quality in income streams

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Speaker 1: at a discounted price exactly the same. And it's you know,

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Speaker 1: boxing day sales. Do we run away from the supermarket

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Speaker 1: and the shopping malls. No, we turn up with our

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Speaker 1: hot own money and shop. Why are we doing the

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Speaker 1: same with the stock market?

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Speaker 2: Well, exactly. And one of the things I do like

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Speaker 2: about the listed investment companies certainly that we hold is

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Speaker 2: from time to time they come back to their existing

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Speaker 2: shareholders and say, we are going to raise fresh capital

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Speaker 2: for investment, and we will therefore be offering new shares

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Speaker 2: at a small discount and no brokerage to add to

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Speaker 2: your portfolio. And the tax rules say that if it's

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Speaker 2: not more than thirty thousand dollars, it's there's no fees,

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Speaker 2: no tax, no nothing. You can just tip that money in.

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Speaker 2: It's dream time.

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Speaker 1: It's a no brainer, absolutely, And this is why if

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Speaker 1: you're investing, you've also got a stockpile of your cash

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Speaker 1: for these opportunities as well, so when they present themselves,

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Speaker 1: you can jump on them. Above and beyond obviously, of

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00:23:04,600 --> 00:23:07,560
Speaker 1: course emergency money, but you know you want to just

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Speaker 1: be focused on growing your income and acquiring more of

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Speaker 1: these assets that help you grow your income.

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Speaker 2: And the beauty with the share purchase plans is you

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Speaker 2: can put in anywhere from one thousand dollars up to

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Speaker 2: thirty thousand dollars with absolutely no implications whatsoever.

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Speaker 1: Yeah, I mean, this is the power of listed investment

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Speaker 1: companies and this is not available for ETF holders.

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Speaker 2: Nope.

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Speaker 1: Yeah, what would you say is the number one biggest

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Speaker 1: mistakes young Australians are making these days when it comes

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Speaker 1: to their money, their lifestyle and their financial.

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Speaker 2: Future their lifestyle.

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Speaker 1: But can you elaborate more?

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Speaker 2: Well, my wife and I, oh my god, I'm seventy seven,

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Speaker 2: and you know we're going way back ancient history. But

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Speaker 2: my wife and I didn't have a rosy between us

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Speaker 2: when we met and married. But I was lucky because

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Speaker 2: I happened to marry someone who was a saver like me,

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Speaker 2: and so throughout our lives we've never spent all weird.

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Speaker 2: I've never owned a new car. My current automobile is

401
00:24:20,800 --> 00:24:24,800
Speaker 2: a two thousand and five Toyota Corolla. But I am

402
00:24:24,840 --> 00:24:30,800
Speaker 2: a petrol head. But I enjoy renting high falutin cars

403
00:24:30,920 --> 00:24:33,919
Speaker 2: just so I can have a real fun time and

404
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Speaker 2: then hand the keys back. I don't know. It's simple,

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Speaker 2: but I feel naughty saying it like that.

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Speaker 1: It sounds fare, but you're full of wisdom. There's nothing

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Speaker 1: naughty that you're saying at all.

408
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Speaker 2: Yeah, and no secrets at all. It is just spend

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Speaker 2: lesson you earn, borrow lesson you can afford and be

410
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Speaker 2: sent But I think one thing that strikes me now,

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Speaker 2: having three sons and five granddaughters and people that we other,

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Speaker 2: young people that we know, their lifestyle has to be

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Speaker 2: top of the line from day one.

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Speaker 1: Champagne's be a budget.

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Speaker 2: Yes, and that was one thing that when my wife

416
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Speaker 2: and I married, it was years before we could take

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Speaker 2: a holiday.

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Speaker 1: The entitlement and the expectation these days is concerning.

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Speaker 2: We never ate out, couldn't afford it, Yeah, And we

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Speaker 2: walked a lot. Didn't have a car for quite quite

421
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Speaker 2: a time, and when we did it was was it God?

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Speaker 2: It was a nineteen forty six Comma van that we

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Speaker 2: used for touring.

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Speaker 1: It's interesting you say that because I think some of

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Speaker 1: the best moments I've had personally, the most the deepest moments,

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Speaker 1: the most moving moments are the ones that have actually

427
00:25:56,480 --> 00:26:01,480
Speaker 1: been broke, you know, and thinking. You know, you appreciate

428
00:26:01,760 --> 00:26:05,120
Speaker 1: life so much more in those moments, and it teaches

429
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Speaker 1: you so much about the respect of a dollar, how

430
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Speaker 1: hard it is to earn a dollar, how important it

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00:26:10,640 --> 00:26:13,800
Speaker 1: is to save and invest a dollar. Those actually the

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Speaker 1: really rich moments, filled with wisdom and give you the

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Speaker 1: opportunity to change your life and reshape your life, to

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00:26:21,160 --> 00:26:26,000
Speaker 1: grow something incredibly beautiful and do so mindfully. But we're

435
00:26:26,040 --> 00:26:29,359
Speaker 1: just living in the clouds with this. You know, I

436
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Speaker 1: want it, I'll have it right now, and the best

437
00:26:31,760 --> 00:26:35,159
Speaker 1: of the best, And you know it's we've lost our

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Speaker 1: way a bit. We've just consumers and materialism at its

439
00:26:38,400 --> 00:26:39,800
Speaker 1: finest it is.

440
00:26:40,080 --> 00:26:44,560
Speaker 2: And you know, you're quite right. We go back to

441
00:26:45,240 --> 00:26:49,439
Speaker 2: the nineteen seventies when Freed and I were starting our

442
00:26:49,480 --> 00:26:54,520
Speaker 2: life together. Very very simple things were incredibly pleasing, but

443
00:26:54,680 --> 00:26:59,359
Speaker 2: they were infrequent, and there was often a special effort

444
00:26:59,400 --> 00:27:03,360
Speaker 2: to save up for that little item or what have you.

445
00:27:04,119 --> 00:27:07,560
Speaker 2: But oh my god, how happy we were when it

446
00:27:07,560 --> 00:27:10,800
Speaker 2: occurred when we were finally got four wheels and we

447
00:27:10,840 --> 00:27:14,560
Speaker 2: could drive around and visit friends, Heavens to Murgatroyd.

448
00:27:15,080 --> 00:27:20,160
Speaker 1: We're missing that sense of pride and accomplishment. We're robbing

449
00:27:20,160 --> 00:27:21,760
Speaker 1: ourselves of it, and we're robbing our children of it

450
00:27:21,760 --> 00:27:24,960
Speaker 1: as well. Yes, yeah, all right, what is the biggest

451
00:27:24,960 --> 00:27:26,800
Speaker 1: mistake you've ever made with money?

452
00:27:31,240 --> 00:27:34,280
Speaker 2: Golly, isn't it funny? I can't think of any one

453
00:27:35,160 --> 00:27:37,119
Speaker 2: huge one, but there have been a hell of a

454
00:27:37,119 --> 00:27:41,520
Speaker 2: lot of trip ups along the way. And I'm sure,

455
00:27:41,760 --> 00:27:46,040
Speaker 2: actually I've never really thought about it, Canna, this is something.

456
00:27:46,840 --> 00:27:49,560
Speaker 1: It's someone who retired with over ten million dollars and

457
00:27:49,640 --> 00:27:54,240
Speaker 1: only really started investing properly in his late fifties. I

458
00:27:54,280 --> 00:27:56,840
Speaker 1: don't think you've probably made too many mistakes, So no,

459
00:27:56,960 --> 00:27:58,480
Speaker 1: wonder it's a hard question to answer.

460
00:27:59,080 --> 00:28:04,840
Speaker 2: Well, with the finances were the ones that supported us.

461
00:28:05,119 --> 00:28:09,399
Speaker 2: And look if I go back to the very early days,

462
00:28:09,480 --> 00:28:12,600
Speaker 2: when I've still got the original share certificates of my

463
00:28:12,800 --> 00:28:17,160
Speaker 2: first investments in Australia. I worked in Melbourne for a

464
00:28:17,200 --> 00:28:20,679
Speaker 2: broking house for a while and as I say, I

465
00:28:20,720 --> 00:28:25,240
Speaker 2: haven't actually framed them yet, but every one of those

466
00:28:25,240 --> 00:28:28,159
Speaker 2: share certificates everyone, there were three of them. All the

467
00:28:28,200 --> 00:28:32,800
Speaker 2: companies went bust. So yeah, my early steps into the

468
00:28:32,800 --> 00:28:36,560
Speaker 2: share market, every single one of them were total disasters.

469
00:28:36,760 --> 00:28:39,280
Speaker 1: And that's the thing with you know, we're all made mistakes.

470
00:28:39,320 --> 00:28:42,120
Speaker 1: That's part of life. But you've got to be okay

471
00:28:42,120 --> 00:28:44,480
Speaker 1: with that and learn from that and obviously try not

472
00:28:44,560 --> 00:28:47,480
Speaker 1: repeat that mistake every again. So if you have a

473
00:28:47,520 --> 00:28:50,480
Speaker 1: go at this and picked the wrong investment, don't give

474
00:28:50,560 --> 00:28:53,240
Speaker 1: up on investing. Go back to the drawing board. You

475
00:28:53,360 --> 00:28:57,000
Speaker 1: got motivated money. Learn about the power of listed investment

476
00:28:57,000 --> 00:28:59,440
Speaker 1: companies to help you get you back on track again.

477
00:28:59,480 --> 00:29:02,080
Speaker 1: And if you've follow that formula, listed investment companies and

478
00:29:02,160 --> 00:29:06,400
Speaker 1: just delegate it to an expert that can do all

479
00:29:06,520 --> 00:29:10,920
Speaker 1: the investing and the timing and the negotiating of share

480
00:29:10,920 --> 00:29:14,240
Speaker 1: prices and all your tax reporting. Just stick to it.

481
00:29:14,320 --> 00:29:16,800
Speaker 1: Don't try and reinvent the wheel. When it comes to,

482
00:29:17,360 --> 00:29:20,360
Speaker 1: you know, getting ahead financially and investing your money wisely,

483
00:29:20,400 --> 00:29:22,520
Speaker 1: I think we put this and the media you know

484
00:29:22,640 --> 00:29:24,600
Speaker 1: does this, and obviously I think also the financial product

485
00:29:24,600 --> 00:29:30,280
Speaker 1: providers they create these complicated, unnecessarily complicated financial products so

486
00:29:30,320 --> 00:29:32,080
Speaker 1: they can just layer up a whole pile of fees

487
00:29:32,120 --> 00:29:34,640
Speaker 1: for themselves and then sell it to us so that

488
00:29:34,680 --> 00:29:37,000
Speaker 1: we feel like we have to lean on them to

489
00:29:37,480 --> 00:29:39,760
Speaker 1: in order to be able to get ahead financially, which

490
00:29:39,800 --> 00:29:45,680
Speaker 1: is just so wrong. Correct, The simple answer is right

491
00:29:45,720 --> 00:29:46,320
Speaker 1: in front of us.

492
00:29:46,320 --> 00:29:49,920
Speaker 2: Everybody thinks it's becoming more sophisticated. In fact, it's becoming

493
00:29:50,320 --> 00:29:53,200
Speaker 2: messier we as we move along.

494
00:29:53,440 --> 00:29:56,200
Speaker 1: I have mentioned this to you before, but I'm interviewed

495
00:29:56,320 --> 00:30:02,040
Speaker 1: Angus Gluski, who's the seat Oh yeah, of white Field,

496
00:30:02,160 --> 00:30:05,280
Speaker 1: of Whitefield, lovely guy. And you know, we were talking

497
00:30:05,280 --> 00:30:08,720
Speaker 1: about fee and their fees have been coming down, and

498
00:30:08,800 --> 00:30:10,760
Speaker 1: I think they believe they're around about maybe three point

499
00:30:11,480 --> 00:30:14,760
Speaker 1: three point five percent. It not three zero point three

500
00:30:14,840 --> 00:30:17,640
Speaker 1: point five percent. So if I put one hundred thousand

501
00:30:17,720 --> 00:30:23,000
Speaker 1: dollars into white Field shares for three hundred and fifty

502
00:30:23,000 --> 00:30:26,400
Speaker 1: dollars a year, I'm paying them to do all my

503
00:30:26,520 --> 00:30:31,480
Speaker 1: investment decisions, all my tax reporting, organize all my dividends

504
00:30:31,480 --> 00:30:33,800
Speaker 1: to be paid to me. And I do not need

505
00:30:33,840 --> 00:30:36,160
Speaker 1: to lift a finger in working out what's stock to

506
00:30:36,200 --> 00:30:39,840
Speaker 1: be buying, what's stock to be acquiring more of? You know,

507
00:30:39,960 --> 00:30:42,160
Speaker 1: where's the next best thing, where's the value? I don't

508
00:30:42,160 --> 00:30:44,719
Speaker 1: have to for the measly three hundred feet dollars when

509
00:30:44,720 --> 00:30:47,320
Speaker 1: you sit down and look at the amount of hours

510
00:30:47,360 --> 00:30:50,600
Speaker 1: involved to do all of that work, it literally would

511
00:30:50,600 --> 00:30:52,600
Speaker 1: work out to be about twenty cents an hour. Like

512
00:30:52,800 --> 00:30:55,719
Speaker 1: it is just it is the best value for money.

513
00:30:55,840 --> 00:30:58,040
Speaker 1: But people bitch your own about fees and it's like, well,

514
00:30:58,240 --> 00:31:00,680
Speaker 1: you can go and find a very complicated, you know,

515
00:31:01,320 --> 00:31:03,920
Speaker 1: sexy financial product with the whole parlor of marketing behind

516
00:31:03,920 --> 00:31:06,480
Speaker 1: it that's going to charge you probably three maybe four

517
00:31:06,520 --> 00:31:10,440
Speaker 1: times that fee, and they will fill their pockets before

518
00:31:10,560 --> 00:31:11,520
Speaker 1: they fill your pocket.

519
00:31:11,800 --> 00:31:15,200
Speaker 2: And if you're concerned about the fees of elisted investment companies,

520
00:31:15,200 --> 00:31:17,800
Speaker 2: which as you rightly say, are low, you know we're

521
00:31:17,840 --> 00:31:24,320
Speaker 2: talking about KNOWERO point zero three. Are you really pissed

522
00:31:24,320 --> 00:31:30,280
Speaker 2: off about your doctor, your dentist, your lawyer charging you exactly?

523
00:31:30,600 --> 00:31:33,040
Speaker 2: Or are you going to do all of those things,

524
00:31:33,080 --> 00:31:38,040
Speaker 2: your dental work, your legal work yourself exactly. Yeah. I mean,

525
00:31:38,240 --> 00:31:41,440
Speaker 2: for some strange reason, the financial side of things is

526
00:31:41,600 --> 00:31:45,640
Speaker 2: seen as some sort of circus, and boy, have we

527
00:31:45,720 --> 00:31:46,960
Speaker 2: got some clown.

528
00:31:48,320 --> 00:31:50,560
Speaker 1: I find it interesting, you know, And this is like

529
00:31:50,800 --> 00:31:52,560
Speaker 1: going back to my days when I was financial planning,

530
00:31:52,560 --> 00:31:55,400
Speaker 1: I'd meet with bdms and these mediums would turn up

531
00:31:55,440 --> 00:31:57,480
Speaker 1: with and that we used to call them. This is

532
00:31:57,520 --> 00:31:59,360
Speaker 1: a little bit that we used to call them borrough

533
00:31:59,360 --> 00:32:03,760
Speaker 1: show delivery boys, which is very degrading, and I acknowledge

534
00:32:03,800 --> 00:32:06,320
Speaker 1: that and we've moved on from there. But literally, these

535
00:32:06,320 --> 00:32:08,120
Speaker 1: people would turn up with a whole pile of brochures

536
00:32:08,120 --> 00:32:09,640
Speaker 1: and then you'd ask them about the product and they

537
00:32:09,720 --> 00:32:11,560
Speaker 1: knew everything about it, but you'd ask them, do you

538
00:32:11,640 --> 00:32:15,840
Speaker 1: invest in this? And they never did, and you just like, Okay,

539
00:32:15,920 --> 00:32:20,120
Speaker 1: I'll see you later, goodbye. Like that's the financial products

540
00:32:20,160 --> 00:32:24,040
Speaker 1: that are being created that we're being being sold in

541
00:32:24,040 --> 00:32:25,000
Speaker 1: our face every day.

542
00:32:25,200 --> 00:32:30,040
Speaker 2: Yep. And having worked for fund managers overseas and in Australia,

543
00:32:31,560 --> 00:32:35,520
Speaker 2: the reason I left the industry in two thousand was

544
00:32:35,560 --> 00:32:40,200
Speaker 2: because I could no longer stand in front of people

545
00:32:40,320 --> 00:32:43,840
Speaker 2: and say this is what you should invest in, because

546
00:32:44,000 --> 00:32:46,360
Speaker 2: I was not prepared to invest in it myself. And

547
00:32:46,400 --> 00:32:51,400
Speaker 2: I'm sorry, I will not stand up and lie publicly

548
00:32:51,840 --> 00:32:52,360
Speaker 2: to people.

549
00:32:52,560 --> 00:32:56,280
Speaker 1: Yeah, and that is so important. And for anyone you're

550
00:32:56,280 --> 00:32:58,160
Speaker 1: following on social media, if they're not muching to the

551
00:32:58,200 --> 00:32:59,960
Speaker 1: beat of their own drum, they don't drum and don't

552
00:33:00,040 --> 00:33:02,200
Speaker 1: have skin in the game, I would not give them

553
00:33:02,400 --> 00:33:04,720
Speaker 1: any time of day. And this is why I'm so

554
00:33:04,760 --> 00:33:08,120
Speaker 1: passionate about you know, teaching people about your philosophy and

555
00:33:08,160 --> 00:33:12,479
Speaker 1: your message about power of Australian shares, in particular industrial shares.

556
00:33:13,080 --> 00:33:15,080
Speaker 1: That is what I'm acquiring. If you gave me a

557
00:33:15,120 --> 00:33:19,000
Speaker 1: million dollars today, it would be back into my share portfolio,

558
00:33:19,560 --> 00:33:21,760
Speaker 1: and after obviously doing a debt recycling strategy. But that's

559
00:33:21,760 --> 00:33:25,360
Speaker 1: another story for another time, because I hate my mortgage. Now.

560
00:33:25,760 --> 00:33:27,600
Speaker 1: Is there a moment in your life where you, like,

561
00:33:27,640 --> 00:33:30,719
Speaker 1: I guess, an anecdote or a poignant moment in your

562
00:33:30,760 --> 00:33:33,600
Speaker 1: life where you're like, wow, we just got our first dividend,

563
00:33:34,440 --> 00:33:36,600
Speaker 1: or wow, look at our dividends. They're really starting to

564
00:33:36,600 --> 00:33:40,040
Speaker 1: build up now, because you look at the growth of

565
00:33:40,200 --> 00:33:42,040
Speaker 1: investing over the long run, and we all know that

566
00:33:42,080 --> 00:33:45,920
Speaker 1: it's boring, boring, boring probably for the first five, maybe seven,

567
00:33:45,960 --> 00:33:49,080
Speaker 1: eight year, nine, ten years is boring. But then magic

568
00:33:49,160 --> 00:33:52,360
Speaker 1: kicks in because of obviously the compounding interest and dividend reinvestment,

569
00:33:52,440 --> 00:33:55,640
Speaker 1: and you can actually now really see the effect of

570
00:33:55,760 --> 00:33:59,120
Speaker 1: the consistently growing dividends. Was there a moment in your

571
00:33:59,160 --> 00:34:03,600
Speaker 1: love here you're like, holy crap, this is actually unbelievable.

572
00:34:03,720 --> 00:34:06,880
Speaker 2: There was Canna, and it wasn't that long ago. As

573
00:34:06,960 --> 00:34:10,680
Speaker 2: part of my presentation. Probably two or three years ago,

574
00:34:11,480 --> 00:34:15,840
Speaker 2: I created a handful of new slides, and one of

575
00:34:15,880 --> 00:34:19,560
Speaker 2: the slides is I looked at every investment I have

576
00:34:19,719 --> 00:34:23,680
Speaker 2: made is in Microsoft Money, so I can take you

577
00:34:23,800 --> 00:34:27,760
Speaker 2: back and I can show you my entire investment history.

578
00:34:28,280 --> 00:34:31,200
Speaker 2: So I played around with them. So I looked a

579
00:34:31,239 --> 00:34:33,799
Speaker 2: handful of the shares that I had sold, and I'd

580
00:34:33,800 --> 00:34:36,960
Speaker 2: made a loss. Bugger, I thought another, hang on a second.

581
00:34:37,719 --> 00:34:43,480
Speaker 2: Then I went back and got into Microsoft Money and looked, oh,

582
00:34:43,680 --> 00:34:48,359
Speaker 2: hang on a second. The dividends that were paid are

583
00:34:48,400 --> 00:34:50,800
Speaker 2: more than the loss that I made on the sale.

584
00:34:50,880 --> 00:34:56,440
Speaker 2: So I didn't actually lose any money. And that was

585
00:34:56,440 --> 00:35:01,480
Speaker 2: a bit of an epiphany for me. But yeah, it's

586
00:35:01,560 --> 00:35:04,279
Speaker 2: all about the here now. Is the price up? Is

587
00:35:04,320 --> 00:35:07,520
Speaker 2: the price down? Oh? For God's sake, I've got an

588
00:35:07,520 --> 00:35:09,799
Speaker 2: attractive wife. I've got a few years left to run.

589
00:35:09,840 --> 00:35:13,680
Speaker 2: So I'm going to make hay while the sunshine.

590
00:35:14,360 --> 00:35:17,080
Speaker 1: All right, As we wrap up today's episode, I want

591
00:35:17,080 --> 00:35:19,479
Speaker 1: to talk about, just quickly about mine, not Mine for Money.

592
00:35:19,480 --> 00:35:23,080
Speaker 1: That's my book, Mind for Money, Motivated Money. All this

593
00:35:23,120 --> 00:35:26,440
Speaker 1: alliteration going on. What made you want to write Motivated Money?

594
00:35:27,239 --> 00:35:31,440
Speaker 2: I think it was the realization that financial literacy was

595
00:35:31,800 --> 00:35:37,680
Speaker 2: virtually nonexistent in this country. Everyone you talk to, and

596
00:35:37,760 --> 00:35:40,200
Speaker 2: this goes back to eighty eight when FRIEDA and I

597
00:35:40,280 --> 00:35:46,360
Speaker 2: came back from overseas, it was all about property, property, property, property.

598
00:35:46,840 --> 00:35:49,279
Speaker 2: If you mentioned the sheer market, most people would have

599
00:35:49,320 --> 00:35:53,760
Speaker 2: shrugged it off. Oh no, a bit risky. Everybody feels

600
00:35:53,840 --> 00:35:58,040
Speaker 2: they know property. And I think one of the attractions,

601
00:35:58,040 --> 00:36:01,120
Speaker 2: and I mentioned this to you earlier, large number of

602
00:36:01,239 --> 00:36:07,200
Speaker 2: zeros associated with property, whereas with shares it has to

603
00:36:07,239 --> 00:36:12,080
Speaker 2: start small somewhere because you don't have the three hundred

604
00:36:12,160 --> 00:36:16,759
Speaker 2: thousand to toss in the deposit on the property. You

605
00:36:16,800 --> 00:36:20,440
Speaker 2: don't have that to toss into shares. So the number

606
00:36:20,440 --> 00:36:24,160
Speaker 2: of zeros associated with property are very attractive to people.

607
00:36:24,880 --> 00:36:26,799
Speaker 2: So it's really good if you can say at the

608
00:36:26,800 --> 00:36:30,480
Speaker 2: dinner party, oh, you know, the property is worth three

609
00:36:30,560 --> 00:36:34,839
Speaker 2: point five million, and yeah. I tried to avoid those

610
00:36:34,880 --> 00:36:37,280
Speaker 2: conversations at dinner parties, you and.

611
00:36:37,160 --> 00:36:40,759
Speaker 1: Me both, and I can't help myself. I think I'm

612
00:36:40,800 --> 00:36:44,279
Speaker 1: becoming you because I'm like, well, how much of you

613
00:36:44,360 --> 00:36:45,560
Speaker 1: did you pay in stamp duty?

614
00:36:46,160 --> 00:36:46,560
Speaker 2: All right?

615
00:36:46,880 --> 00:36:48,520
Speaker 1: How much have you paid for the wear and tear?

616
00:36:48,920 --> 00:36:51,440
Speaker 1: How much you paid in council rates how much you

617
00:36:51,440 --> 00:36:54,440
Speaker 1: paid in interest, and you sort of watch the color

618
00:36:54,440 --> 00:36:57,680
Speaker 1: and their face drain out, and you know, going to

619
00:36:57,680 --> 00:37:00,319
Speaker 1: that question put at that point in the moment where you, wow,

620
00:37:00,360 --> 00:37:03,840
Speaker 1: this is incredible. I had won myself where I was

621
00:37:03,880 --> 00:37:06,759
Speaker 1: sitting down adding up our passive income of what we're

622
00:37:06,760 --> 00:37:08,960
Speaker 1: building and growing for our own financial freedom, and I

623
00:37:08,960 --> 00:37:11,719
Speaker 1: call this a mindful money number where I'm trying to

624
00:37:11,719 --> 00:37:13,840
Speaker 1: build up two hundred thousand dollars a year in passive

625
00:37:13,840 --> 00:37:16,080
Speaker 1: income because that means Tom and I can stop work,

626
00:37:17,040 --> 00:37:19,640
Speaker 1: travel be there for our kids. That's our goal and

627
00:37:19,640 --> 00:37:22,319
Speaker 1: that's what we're on our way of achieving. But when

628
00:37:22,320 --> 00:37:24,160
Speaker 1: I sat down, I said, okay, where I've got this

629
00:37:24,280 --> 00:37:27,200
Speaker 1: and dividends, and we do own a couple of investment

630
00:37:27,200 --> 00:37:28,960
Speaker 1: properties which we would love to get rid of, but

631
00:37:29,160 --> 00:37:32,200
Speaker 1: for separate reasons which I won't go into today, we can't,

632
00:37:32,440 --> 00:37:35,840
Speaker 1: and they are lemons of investments. But well, for me,

633
00:37:35,960 --> 00:37:38,560
Speaker 1: that moment was I looked at what the share portfolio

634
00:37:39,120 --> 00:37:42,000
Speaker 1: was worth and what the properties are worth, and I

635
00:37:42,000 --> 00:37:44,720
Speaker 1: looked at the income and I'm like, wow, this share

636
00:37:44,719 --> 00:37:47,879
Speaker 1: port follow is much smaller than the value of these

637
00:37:48,800 --> 00:37:55,120
Speaker 1: lemon ridiculous useless properties, but the income was actually way

638
00:37:55,200 --> 00:37:59,719
Speaker 1: more than the rental income from these properties. That is

639
00:37:59,760 --> 00:38:02,800
Speaker 1: a far more efficient use of my cash flow and

640
00:38:03,520 --> 00:38:06,480
Speaker 1: my heart earned money if I want financial freedom, and

641
00:38:06,520 --> 00:38:09,319
Speaker 1: that's what people really miss, that point of comparison.

642
00:38:09,719 --> 00:38:12,880
Speaker 2: And look, if you want to borrow money to invest,

643
00:38:13,560 --> 00:38:18,080
Speaker 2: that's fine. It frustrates me because of the lack of

644
00:38:18,120 --> 00:38:22,520
Speaker 2: long term leaseholes in this country. Frieda and I unfortunately

645
00:38:22,760 --> 00:38:25,359
Speaker 2: have had to own property ever since we got back

646
00:38:25,360 --> 00:38:30,879
Speaker 2: to Australia. Now that leaves me a little and so

647
00:38:31,000 --> 00:38:33,719
Speaker 2: what I do is when we own a property, I

648
00:38:33,719 --> 00:38:38,720
Speaker 2: immediately go to the bank and I asked for another

649
00:38:38,800 --> 00:38:41,880
Speaker 2: mortgage and they say, oh, you know, what do you

650
00:38:41,920 --> 00:38:44,719
Speaker 2: wonder for. I said, I'm going to invest it. Oh, well,

651
00:38:44,960 --> 00:38:47,239
Speaker 2: that that's going to be an investment loan, so we're

652
00:38:47,280 --> 00:38:50,759
Speaker 2: going to charge you X y z more than the

653
00:38:50,800 --> 00:38:54,279
Speaker 2: mortgage rate. I said, no, no, no, it's a home

654
00:38:54,360 --> 00:38:57,000
Speaker 2: loan that you were giving me. I had so much

655
00:38:57,160 --> 00:39:01,520
Speaker 2: fun sitting with a bank manager going through this until

656
00:39:01,560 --> 00:39:06,120
Speaker 2: eventually he had to acknowledge that the title deeds to

657
00:39:06,160 --> 00:39:10,319
Speaker 2: our property they had and they had lent me the

658
00:39:10,320 --> 00:39:12,680
Speaker 2: money holding that title deed to buy it. In the

659
00:39:12,680 --> 00:39:16,799
Speaker 2: first place. All I wanted to do was renew the mortgage.

660
00:39:17,719 --> 00:39:21,640
Speaker 2: Eventually they couldn't argue with me, so I now borrow

661
00:39:22,000 --> 00:39:25,360
Speaker 2: against our apartment. Because it bugs me that I've got

662
00:39:25,400 --> 00:39:29,800
Speaker 2: all this, these millions of dollars sitting in this blasted

663
00:39:29,880 --> 00:39:34,360
Speaker 2: property doing nothing nothing. So I've gone to the bank

664
00:39:34,640 --> 00:39:38,399
Speaker 2: and I've now got two mortgages, one in Frida's name,

665
00:39:38,440 --> 00:39:42,440
Speaker 2: one in my name, and we have withdrawn that valuable

666
00:39:42,520 --> 00:39:48,840
Speaker 2: capital and it's now invested in productive enterprise, producing fully

667
00:39:49,040 --> 00:39:54,200
Speaker 2: franked dividends. The bank has lent me money to buy

668
00:39:54,280 --> 00:39:57,120
Speaker 2: something that's paying me more than I'm paying the bank,

669
00:39:57,239 --> 00:40:00,160
Speaker 2: and I'm very grateful to the bank for doing that.

670
00:40:01,600 --> 00:40:03,640
Speaker 1: I bet you well. Peter, thank you so much for

671
00:40:03,680 --> 00:40:06,759
Speaker 1: coming in today's episode. I really appreciate it. And for

672
00:40:06,800 --> 00:40:10,000
Speaker 1: all of our listeners, please, please, please, can you go

673
00:40:10,200 --> 00:40:14,240
Speaker 1: and grab a copy of Motivated Money by Peter Thornhill.

674
00:40:14,280 --> 00:40:16,680
Speaker 1: I will link it in the podcast notes, And once

675
00:40:16,719 --> 00:40:19,160
Speaker 1: you have read this, go and buy all of your

676
00:40:19,160 --> 00:40:21,480
Speaker 1: family and friends this book. Tell them about it, demand

677
00:40:21,560 --> 00:40:25,279
Speaker 1: that they read it and have a heated discussion at

678
00:40:25,280 --> 00:40:27,800
Speaker 1: the dinner table over coffee as you go for a walk.

679
00:40:28,120 --> 00:40:31,600
Speaker 1: Because this is a strategy, a concept that is so

680
00:40:31,719 --> 00:40:35,000
Speaker 1: incredibly powerful, and you don't want to discover this too

681
00:40:35,080 --> 00:40:38,319
Speaker 1: late in life and be filled with regret. Read it,

682
00:40:38,880 --> 00:40:42,480
Speaker 1: apply it, and don't stop. Be committed, be dedicated, and

683
00:40:42,520 --> 00:40:45,240
Speaker 1: keep your eye on the price. You're growing passive income

684
00:40:45,520 --> 00:40:47,120
Speaker 1: of fully franked dibbits.

685
00:40:48,000 --> 00:40:59,440
Speaker 2: Thank you, Peter coming, Thank you,