WEBVTT - Want LONG TERM financial freedom? 0:00:01.240 --> 0:00:05.760 Good morning everyone, and welcome back to Sugar Mama's Fireplay podcast, 0:00:06.240 --> 0:00:10.080 the podcast that ignites your financial journey with inspiring stories 0:00:10.119 --> 0:00:15.440 and innovative strategies. I am your host, financial planner, Anna Campbell, 0:00:15.920 --> 0:00:20.479 and today we are back chatting with my financial mentor, 0:00:20.680 --> 0:00:24.400 my only financial mentor, and that is, of course, the 0:00:24.400 --> 0:00:28.880 one and only Peter Thornhill, the self funded retiree that 0:00:29.440 --> 0:00:32.400 just simply gets richer and richer as time goes by. 0:00:33.159 --> 0:00:36.160 And he has written his own book, Motivated Money, which 0:00:36.200 --> 0:00:38.520 is one of the best books you could possibly read 0:00:38.560 --> 0:00:44.440 if you are serious about being financially independent and having true, authentic, 0:00:44.800 --> 0:00:48.440 sustainable freedom in your life. So we're going to be 0:00:48.520 --> 0:00:50.760 chatting with Peter. I'm going to be asking him a 0:00:50.760 --> 0:00:53.880 whole pile of questions and I guess you could say 0:00:53.920 --> 0:00:58.160 maybe reinjecting that serious financial motivation back in your life 0:00:58.200 --> 0:01:01.640 to think about your financial stress. Now, before we begin, 0:01:01.800 --> 0:01:04.319 a reminder that all of my content will it be 0:01:04.360 --> 0:01:08.919 something on Instagram, podcast, YouTube. It's always general in nature 0:01:08.920 --> 0:01:12.560 and for educational purposes only, so please always bear that 0:01:12.600 --> 0:01:35.560 in mind. All right, let's get started. Peter, Thank you 0:01:35.600 --> 0:01:38.440 so much for coming in again. I'm so incredibly grateful 0:01:38.480 --> 0:01:41.640 for how generous you are with your time and also 0:01:41.720 --> 0:01:45.160 how you help educate and inspire every day people about 0:01:45.160 --> 0:01:49.240 the power of Australian Industrial shares and investing for the Lauren, 0:01:49.280 --> 0:01:50.040 how are you today? 0:01:50.360 --> 0:01:54.000 I'm absolutely fine, Thank you Kenna, and delighted to be back. 0:01:54.640 --> 0:01:58.000 Well, thank you coming in now. Can you give me 0:01:58.160 --> 0:02:00.080 a bit of an elevator pitch that is like a 0:02:00.160 --> 0:02:05.280 thirty second spiel as to what your personal financial strategy 0:02:05.360 --> 0:02:06.640 or philosophy. 0:02:06.280 --> 0:02:12.160 Is basically buying quality businesses that produce a growing income 0:02:12.280 --> 0:02:17.239 stream and allow my wife and I to float through 0:02:17.320 --> 0:02:22.600 life in a totally sustainable, enjoyable and amazing manner. 0:02:22.720 --> 0:02:25.959 Can I ask you who actually inspired you to start 0:02:26.480 --> 0:02:29.480 this journey and to change the way that you're investing 0:02:29.520 --> 0:02:32.280 away from the generic you know, do a risk profile, 0:02:32.320 --> 0:02:35.120 go with a balance manage fund. Who was the person 0:02:35.160 --> 0:02:39.040 that actually led you to this path and enlightened you 0:02:39.080 --> 0:02:41.160 with the power of Australian Industrial Shares. 0:02:41.360 --> 0:02:45.360 I think that there was no one individual Canna. It 0:02:45.520 --> 0:02:49.600 was more the way things evolved in terms of career. 0:02:50.600 --> 0:02:55.440 So the eighteen odd years that began as a working 0:02:55.520 --> 0:02:59.280 holiday in England with my wife and stretched out to 0:02:59.440 --> 0:03:03.120 eighteen years. The only reason I came back to Australia 0:03:03.240 --> 0:03:06.200 was because I was headhunted. But it was that apprenticeship 0:03:06.200 --> 0:03:12.280 in England where I guess the reasons for investing in 0:03:12.360 --> 0:03:17.919 shares was slowly absorbed by me as I was surrounded 0:03:17.960 --> 0:03:23.160 by so many successful investors. And it's that legacy that 0:03:23.440 --> 0:03:27.480 carries us today in the lap of luxury, because. 0:03:27.240 --> 0:03:30.040 Would you say, like Osmosis, almost you just absorbed their 0:03:30.080 --> 0:03:32.359 strategies because the proof was in the pudding and could 0:03:32.400 --> 0:03:33.280 see it was working. 0:03:33.600 --> 0:03:37.080 Yes, there was no sort of epiphany. But coming back 0:03:37.120 --> 0:03:42.800 to Australia, the difference between investing attitudes in the UK 0:03:43.760 --> 0:03:46.960 and in Australia are just chalk and cheese. Can you 0:03:47.000 --> 0:03:52.360 explain further well, Property in England is largely to live in, 0:03:52.560 --> 0:03:57.200 just a lifestyle asset, a lifestyle act. Yeah, And in 0:03:57.240 --> 0:04:00.480 Australia it's the be all and end or of a 0:04:00.520 --> 0:04:05.000 person's life. And it's that the bulk of the productive 0:04:05.040 --> 0:04:09.240 capital of this country is locked up in residential property. 0:04:09.400 --> 0:04:14.800 The bulk of Australian businesses are owned by overseas investors. 0:04:15.840 --> 0:04:19.880 So we have I think the figures for twenty two 0:04:20.000 --> 0:04:25.160 over forty billion dollars of dividends from Australian companies disappear 0:04:25.320 --> 0:04:29.320 overseas because Australians don't like shares because they're risky. 0:04:29.600 --> 0:04:33.560 Our ego is completely fixated and obsessed with property, even 0:04:33.600 --> 0:04:37.760 though it is quite often the stupidest and most painfully 0:04:37.800 --> 0:04:40.520 expensive asset to hold. But we're just fixated on the 0:04:40.560 --> 0:04:43.520 idea of a tangible asset, even though it can be damaging. 0:04:43.760 --> 0:04:46.400 I know, and it knocks my socks up. You know, 0:04:46.760 --> 0:04:49.240 if you own a property, what have you got, whether 0:04:49.279 --> 0:04:51.960 it's a rental property, your own, You've got rates, You've 0:04:51.960 --> 0:04:56.960 got repairs, You've on and on and on. I buy shares, 0:04:57.320 --> 0:05:00.640 what do I pay from that point onwards? Nothing? And 0:05:00.680 --> 0:05:05.760 they pay me. And if you have an investment property 0:05:06.440 --> 0:05:09.680 and you get rent, well, negative gearing would have to 0:05:09.720 --> 0:05:13.800 be about the dumbest thing I've ever heard of. You 0:05:13.880 --> 0:05:18.239 borrow money to buy something that doesn't cover the interest costs, 0:05:18.560 --> 0:05:21.400 and apparently that's really good because you avoid paying tax 0:05:21.480 --> 0:05:24.400 on some of your income. Oh do you? But despite that, 0:05:25.480 --> 0:05:27.880 when I get a dividend, that's all well and good, 0:05:28.400 --> 0:05:30.719 But you've got to add the franking tax credits on 0:05:30.800 --> 0:05:34.520 top and the fact that owning those shares basically holds me, 0:05:34.960 --> 0:05:37.279 costs me little or nothing. 0:05:37.520 --> 0:05:41.400 You know what I find it is the retirees who 0:05:41.440 --> 0:05:45.799 are late in their retirement that only finally then cotton 0:05:45.839 --> 0:05:49.400 on to how powerful franking credits are because they get 0:05:49.440 --> 0:05:53.320 their refunds back of those franking credits, and it boosts 0:05:53.360 --> 0:05:56.560 the retirees income from say forty five thousand dollars to 0:05:56.600 --> 0:05:59.880 say fifty two fifty three thousand dollars. Only then later 0:06:00.040 --> 0:06:03.080 life are they realizing how powerful and how valuable and 0:06:03.120 --> 0:06:06.720 how important those franking credits are. But they've wasted so 0:06:06.800 --> 0:06:09.239 much time in their life not actually acquiring those assets. 0:06:09.360 --> 0:06:12.960 Like it's the penny's dropped very late in life, unfortunately. 0:06:12.960 --> 0:06:15.560 But anyone who's listened to this podcast today actually has 0:06:15.560 --> 0:06:18.919 the advantage and the opportunity to learn this, to understand it, 0:06:19.000 --> 0:06:21.560 and then but and apply it and accumulate these types 0:06:21.560 --> 0:06:22.680 of quality assets. 0:06:23.600 --> 0:06:27.320 Can It grieves me and I try not to spend 0:06:27.320 --> 0:06:30.880 too much more time thinking about it, but financial literacy 0:06:30.920 --> 0:06:33.080 in this country is virtually non existent. 0:06:33.400 --> 0:06:36.839 It's embarrassing and I'm ashamed that it's so bad. And 0:06:36.839 --> 0:06:39.000 that's what I'm obviously trying to do something about it. 0:06:39.600 --> 0:06:42.640 But you know, and at times I say this personally 0:06:42.800 --> 0:06:44.920 like it feels like I'm banging my head against a 0:06:45.000 --> 0:06:47.880 brick wall. You know, you'll see something, you know that 0:06:48.000 --> 0:06:51.359 have finfluence, so someone who's not even qualified talking about 0:06:51.400 --> 0:06:54.719 like trading a certain stock or you know, purchasing this property. 0:06:54.960 --> 0:06:57.960 But then you know, you put something up about a 0:06:57.960 --> 0:07:00.120 share portfolio. The other day, I shared your chart of 0:07:00.160 --> 0:07:03.040 one hundred thousand dollars invested in nineteen seventy nine what 0:07:03.120 --> 0:07:05.359 would be worth today, and it is worth seventeen point 0:07:05.760 --> 0:07:09.160 four nine million dollars. I think it got seventeen likes 0:07:09.200 --> 0:07:11.800 or something ridiculous. And then the comments I got were, well, 0:07:11.800 --> 0:07:13.800 I don't have this much time to invest, And I'm like, 0:07:14.360 --> 0:07:16.760 you don't have to necessarily build a seventeen point five 0:07:16.760 --> 0:07:19.920 million dollar investment portfolio, build a one point seven million 0:07:19.960 --> 0:07:23.600 dollar investment four follow that's also incredibly amazing. But we 0:07:23.920 --> 0:07:28.640 are feeding people these solutions and strategies that are based 0:07:28.840 --> 0:07:33.160 on evidence and facts, and they aren't being absorbed, Like 0:07:33.480 --> 0:07:36.600 what is this? Why are people being so thick? And 0:07:36.800 --> 0:07:39.040 I sound like I'm being a bit of a bitch, 0:07:39.160 --> 0:07:42.000 but I mean, I follow this advice myself, and I 0:07:42.000 --> 0:07:45.320 see for myself how valuable this industrial share path is. 0:07:45.880 --> 0:07:46.640 What's going on? 0:07:46.880 --> 0:07:51.240 Yep, It's a sad fact of life, Kenna. And the 0:07:51.360 --> 0:07:54.640 reason that I spout a lot and the reason I 0:07:54.640 --> 0:07:57.480 wrote the book, Yeah, people deserve a hell of a 0:07:57.520 --> 0:08:03.000 lot better. We're a relatively young country. So the history 0:08:03.120 --> 0:08:07.440 has been basically property from the moment Captain Cook set 0:08:07.520 --> 0:08:12.360 foot and it has remained so. And it is a 0:08:12.480 --> 0:08:17.000 very sad waste of the productive assets of this country. 0:08:17.600 --> 0:08:22.200 And foreign ownership of our Australian companies. I could weep. 0:08:22.560 --> 0:08:26.800 You know. We talk about the Big Australian BHP. BHP 0:08:27.120 --> 0:08:32.240 is over seventy percent foreign owned. Where do the dividends go? Overseas? 0:08:32.440 --> 0:08:35.120 Rio is the same. And you can look at virtually 0:08:35.160 --> 0:08:41.600 any Australian company and often the shareholding is majority owned 0:08:41.679 --> 0:08:46.720 by overseas investors. So tens of billions of dollars flow 0:08:46.760 --> 0:08:50.280 out of this country every year as the dividends disappear. 0:08:50.880 --> 0:08:52.400 It's just heartbreaking, isn't it? 0:08:52.400 --> 0:08:56.080 It is? It just seriously is Look. 0:08:56.160 --> 0:08:59.880 I can proudly report that the listeners of Sugarama's Fireplate 0:09:00.040 --> 0:09:03.000 and how they thought that absolutely love what you have 0:09:03.080 --> 0:09:06.240 to say, and you know, whenever we post something now 0:09:06.440 --> 0:09:08.800 that you've said, or a clearp or you know, an 0:09:08.840 --> 0:09:13.679 audio file, it goes mental and people starting to really listen, 0:09:13.679 --> 0:09:17.400 and people are finding your philosophy and your concept a 0:09:17.520 --> 0:09:20.880 breath of fresh air. Now, I want to talk to 0:09:20.920 --> 0:09:24.199 you about the shift are listed investment companies you've a 0:09:24.320 --> 0:09:27.840 views have explained in the past, predominantly your portfolio was 0:09:27.840 --> 0:09:30.760 the individual companies, you know, the supermarkets, the banks, the 0:09:30.760 --> 0:09:34.600 transportation companies, the pharmaceutical companies and so forth. But over 0:09:34.600 --> 0:09:38.000 the last maybe ten years, you've been shifting those assets 0:09:38.040 --> 0:09:42.480 slowly and steadily into your listed investment companies. Can you, 0:09:42.640 --> 0:09:44.560 obviously I understand the benefits of this, but can you 0:09:44.559 --> 0:09:48.160 explain to our listeners why you chose to do this 0:09:48.280 --> 0:09:49.760 and the benefits of doing this? 0:09:50.520 --> 0:09:55.480 Okay, the one thing I don't want to do is 0:09:55.559 --> 0:09:59.800 spend one minute of the time that I have left 0:10:00.040 --> 0:10:04.120 on this planet looking at shares. And it concerns me 0:10:04.360 --> 0:10:10.040 the number of people who will, probably predominantly males, who 0:10:10.080 --> 0:10:12.480 retire and then spend their time in front of a 0:10:12.520 --> 0:10:17.320 computer watching shares and trading shares. And if I can 0:10:17.360 --> 0:10:21.400 give you the definitions invest the use of money productively 0:10:21.640 --> 0:10:26.320 so that a regular income is obtained, speculate buying and 0:10:26.440 --> 0:10:30.160 selling in an attempt to benefit from a fluctuation in 0:10:30.200 --> 0:10:33.920 the price. Now a lot of what you see in 0:10:33.960 --> 0:10:40.160 the media, and god, bitcoin, I find difficulty using the word. 0:10:41.240 --> 0:10:44.679 But the media talks about people who invest in bitcoin, 0:10:45.240 --> 0:10:48.400 they talk about people who invest in diamonds, who invest 0:10:48.480 --> 0:10:52.440 in and so on. You cannot invest in any of 0:10:52.480 --> 0:10:56.520 those items. You can speculate, And I wish the media 0:10:56.559 --> 0:11:01.319 would define what they're doing rather than just classifying anything 0:11:01.360 --> 0:11:06.400 you buy jewelry, wine is an investment, it's not. It's 0:11:06.440 --> 0:11:10.640 the use of money productively so that a regular income 0:11:10.760 --> 0:11:15.319 is obtained. And therein lies the key, very simple definitions. 0:11:15.960 --> 0:11:18.719 Exactly it's two dimensional assets or forget about it. I'm 0:11:18.720 --> 0:11:21.280 going home. I'm not listening at all. And if people 0:11:21.320 --> 0:11:24.080 just don't realize the risk that they're actually taking to 0:11:24.160 --> 0:11:27.640 go and speculate with those types of assets, they have 0:11:27.720 --> 0:11:32.800 no idea the potential danger they're inflicting upon themselves. And 0:11:32.880 --> 0:11:34.719 at the end of the day, whether your portfolio is 0:11:34.760 --> 0:11:37.560 worth two million dollars, if it's not paying you anything, 0:11:38.880 --> 0:11:41.600 what's its purpose. I would rather have a one million 0:11:41.640 --> 0:11:44.640 dollar asset paying me, say, fifty thousand dollars a year 0:11:44.640 --> 0:11:49.640 and growing consistently, consistently growing passive income than two million 0:11:49.640 --> 0:11:51.719 dollars in something that I don't even know if I 0:11:51.760 --> 0:11:54.760 can actually sell at that price because there isn't necessarily liquidity, 0:11:54.800 --> 0:11:55.880 And then I've got to go and pay a whole 0:11:55.880 --> 0:11:57.880 pile of capital gains at tax, Like, how does that 0:11:57.960 --> 0:12:00.960 help me in my financial freedom? Nothing at all? And 0:12:01.000 --> 0:12:06.599 the risk and stress as well, just it's just absolute stupidity. 0:12:06.760 --> 0:12:09.800 Well that's the sad part kind of you know, fear 0:12:10.040 --> 0:12:14.000 is based on ignorance. That's why people don't like shares. 0:12:14.800 --> 0:12:18.320 They think they know property because they're surrounded by it. 0:12:19.080 --> 0:12:21.040 And I've had people say to me, oh, yeah, but 0:12:21.160 --> 0:12:23.360 you know I can go and see the property and 0:12:23.760 --> 0:12:28.040 you know, tangible. Yeah, apparently they've never walked into a 0:12:28.080 --> 0:12:31.640 supermarket and acknowledged that as being something. But they've never 0:12:31.720 --> 0:12:32.679 walked into a bank. 0:12:33.559 --> 0:12:36.559 Oh dear, Well, you know, we were just chatting obviously 0:12:36.559 --> 0:12:38.120 before we walked into the studio, and we're talking about 0:12:38.120 --> 0:12:41.200 you know, we're fixated as a country on property. But 0:12:41.280 --> 0:12:42.920 what do we do when we go and buy a property. 0:12:43.160 --> 0:12:45.640 Most of us give it a fresh, fresh lick of paint. 0:12:45.720 --> 0:12:47.800 Where do we buy a paint from. We might get 0:12:47.840 --> 0:12:49.839 a tradesman, and we might buy a new washing machine 0:12:49.920 --> 0:12:52.120 or a new fridge. We might maybe do a bit 0:12:52.120 --> 0:12:55.079 of a renovation, you know, we might buy a new sofa. 0:12:55.720 --> 0:12:58.199 Where is all that money is going to the businesses? 0:12:58.800 --> 0:13:03.640 People just think so one dimensionally with property and they're 0:13:03.720 --> 0:13:06.760 missing ninety five percent of the other side of the 0:13:06.800 --> 0:13:10.440 story and how to build wealth. So with you switching 0:13:10.440 --> 0:13:13.319 from the individual stocks into listed investment companies, you mentioned 0:13:13.360 --> 0:13:15.040 you want your time back. You don't want to be 0:13:15.040 --> 0:13:18.199 sitting in front of a computer screen all day. And 0:13:18.640 --> 0:13:22.400 the simplicity obviously of having a listed investment company is 0:13:22.640 --> 0:13:27.120 tax reporting. You're not collecting to probably if you had 0:13:27.080 --> 0:13:29.280 to say, thirty stocks in your portfolio and each of 0:13:29.280 --> 0:13:31.719 them pay a dividend twice a year, the amount of 0:13:31.760 --> 0:13:35.440 paperwork involved. You're looking at sixty statements to be able 0:13:35.480 --> 0:13:37.719 to handovers to your account it or to do yourself to 0:13:37.760 --> 0:13:40.680 try and do your taxes. It's all done simply within 0:13:40.920 --> 0:13:43.559 two simple, consolidated, concise statements. 0:13:43.920 --> 0:13:46.160 And ken of what concerns me is people who buy 0:13:46.240 --> 0:13:49.800 shares at an early stage and then use the dividend 0:13:49.880 --> 0:13:55.760 reinvestment plans. So two dividends a year over thirty years 0:13:56.320 --> 0:14:00.600 gives you sixty individual capital gains tax that you're going 0:14:00.640 --> 0:14:02.120 to have to deal with if you ever come to 0:14:02.160 --> 0:14:02.880 sell the shares. 0:14:03.040 --> 0:14:05.880 Well, my goal is never ever to sell. I will 0:14:05.880 --> 0:14:08.480 pass that tax issue onto my state. They can deal 0:14:08.520 --> 0:14:10.840 with it. But I mean, I have always been acquired. 0:14:10.880 --> 0:14:12.439 I mean, and I will put my hand on my heart. 0:14:12.480 --> 0:14:15.560 I do own property, but I own property to get 0:14:15.600 --> 0:14:18.000 back into shares because the bank will lend me money 0:14:18.000 --> 0:14:20.360 at a lot lower interest rate than I will if 0:14:20.400 --> 0:14:22.960 I didn't have property there. But all I want to 0:14:22.960 --> 0:14:26.200 do is just continue on acquiring reinvestmor I can purchase 0:14:26.240 --> 0:14:28.680 more and continue to make sure my portfolio is diversified. 0:14:28.760 --> 0:14:33.480 And I, like you, am very much aligned to the 0:14:34.480 --> 0:14:37.200 I guess you could say the simplicity and the peace 0:14:37.240 --> 0:14:40.240 of mind and the delegation of a listed investment company. 0:14:40.760 --> 0:14:42.920 And that is definitely something I have started to do 0:14:43.000 --> 0:14:45.680 with my dividends, coming in using them to require more 0:14:45.760 --> 0:14:48.880 of my listed investment companies because there's a lot less 0:14:48.920 --> 0:14:51.800 paperwork involved and there's a lot more time that I 0:14:51.840 --> 0:14:55.000 get back as an investor, building my passive income through dividends. 0:14:55.080 --> 0:14:58.600 I couldn't agree more Kenna, and again we're behind the 0:14:58.640 --> 0:15:02.640 eight ball. A teen years in Europe, I became very 0:15:02.640 --> 0:15:08.400 familiar with the fact that long term residential leaseholds on 0:15:08.640 --> 0:15:14.840 most property in Europe gives people security of tenure in 0:15:14.920 --> 0:15:18.200 this country because a lot of the property is owned 0:15:18.240 --> 0:15:23.280 by institutions in Europe. In Australia, residential property is owned 0:15:23.560 --> 0:15:27.760 by idiot owners who then rented out. But you're on 0:15:27.800 --> 0:15:31.360 what you know, today's notice to quit. 0:15:31.640 --> 0:15:35.200 There's no stability whatsoever. And until our government looks at 0:15:36.000 --> 0:15:39.400 changing the regulations about immersent properties and making sure that 0:15:39.440 --> 0:15:41.480 you have to sign you know, you have to make 0:15:41.480 --> 0:15:43.760 the property available for five years, ten years, whatever it 0:15:43.760 --> 0:15:47.280 may be, I don't see any other solution in the meantime. 0:15:47.640 --> 0:15:53.320 No, it's sadly our politicians are all Australians and. 0:15:53.240 --> 0:15:55.280 They all own property themselves. 0:15:56.120 --> 0:16:01.760 Having laid my hands on the Register p Unary Interests 0:16:01.760 --> 0:16:05.680 for the Australian Federal Parliament and if anyone's interested, it 0:16:05.760 --> 0:16:08.640 is publicly available. I spent a couple of nights doing 0:16:08.640 --> 0:16:13.240 a little bit of research. The vast majority of the 0:16:13.320 --> 0:16:16.640 politicians in this country are up to their eyeballs in 0:16:16.720 --> 0:16:22.040 negatively geared property, not a lot owned shares, which means 0:16:22.440 --> 0:16:23.760 the politicians. 0:16:23.160 --> 0:16:25.120 Are just as stupid as everyone else is. 0:16:25.320 --> 0:16:28.840 Correct, which means meant for me that when I become 0:16:28.920 --> 0:16:32.320 Prime Minister, I'm not going to have one Australian in 0:16:32.400 --> 0:16:36.200 my cabinet. I'm going to hand pick every one of 0:16:36.240 --> 0:16:41.520 the members of my parliament overseas and hopefully create a 0:16:41.600 --> 0:16:45.280 mix that will give us Australia as a whole the 0:16:45.400 --> 0:16:49.880 productive use of its capital rather than the totally unproductive 0:16:50.640 --> 0:16:52.360 use it has. 0:16:52.400 --> 0:16:58.600 Now, what are your thoughts for people who are he 0:16:58.800 --> 0:17:03.720 to start investing and they understand everything you're saying about 0:17:04.440 --> 0:17:06.480 the property market, it's not for them. They want to 0:17:06.480 --> 0:17:11.040 build this diversified investment portfolio of growing passive income. What 0:17:11.119 --> 0:17:14.000 are your thoughts of starting with a listed investment company 0:17:15.000 --> 0:17:19.119 and then as your experience and confidence changes and evolves 0:17:19.160 --> 0:17:21.840 over time, then thinking, you know what, I'd like to 0:17:21.880 --> 0:17:26.160 actually own more of that bank or more of that supermarket. 0:17:26.359 --> 0:17:28.600 Do you think that that's still something that people can 0:17:28.640 --> 0:17:31.240 consider as a strategy but at least they've gotten started 0:17:31.280 --> 0:17:32.760 the meantime, or you think just stick with the list 0:17:32.840 --> 0:17:33.960 investment companies. 0:17:33.640 --> 0:17:37.240 The whole way through their life is not should not 0:17:37.359 --> 0:17:41.440 be involved in something they know nothing about. If you're 0:17:41.440 --> 0:17:43.959 going to buy a direct share, are you going to 0:17:44.000 --> 0:17:47.600 go and interview the board of directors? Are you going 0:17:47.680 --> 0:17:52.399 to go and analyze their financials? Leave it out and 0:17:52.560 --> 0:17:56.000 leave that to the specialists. You get on. 0:17:56.200 --> 0:17:59.159 With your life, get your time back. Don't sit in 0:17:59.160 --> 0:18:01.479 front of a computer screen and the stress and pressure 0:18:01.480 --> 0:18:03.119 of making you know, some may people were scared of 0:18:03.160 --> 0:18:06.359 making the wrong decision that they actually end up doing 0:18:06.400 --> 0:18:06.920 nothing at all. 0:18:07.119 --> 0:18:10.600 Correct. Focus on the things that are important in your life, 0:18:11.280 --> 0:18:16.280 your family, your career, and your friends, and your health 0:18:16.600 --> 0:18:17.280 and your health. 0:18:17.440 --> 0:18:20.399 How many listed investment companies do you think one needs 0:18:20.520 --> 0:18:23.480 in their investment portfolio? This is when I really struggle 0:18:23.520 --> 0:18:25.119 with some interest to hear your thoughts. 0:18:25.320 --> 0:18:32.720 Well, I've got four, and that's probably because there are 0:18:33.359 --> 0:18:36.280 I could have five or six. Maybe six would be 0:18:37.400 --> 0:18:41.879 the ideal because then you're getting twelve dividends a year. 0:18:42.119 --> 0:18:47.640 But I've stripped it back to just four, and honestly, 0:18:47.680 --> 0:18:52.120 the only contact I guess I have at large is 0:18:53.080 --> 0:18:56.400 I get notification the dividends have arrived. If you own six, 0:18:56.520 --> 0:18:59.520 you get twelve. I own four. I get eight dividends 0:18:59.560 --> 0:19:04.840 a year, but oh my god, are they large dividends. 0:19:05.600 --> 0:19:09.400 Oh, it's previously spoken about what your retirement looks like, 0:19:09.480 --> 0:19:14.240 and you by far have the best retirement of anyone 0:19:14.640 --> 0:19:18.920 I know, like multiple trips overseas with your beautiful wife. 0:19:19.960 --> 0:19:23.560 Can you tell everyone again about your experience with your granddaughters. 0:19:23.880 --> 0:19:27.560 Yes, what a joy to be able to spoil them 0:19:27.640 --> 0:19:35.720 rotten and have so much fun with them. And yeah, 0:19:36.119 --> 0:19:39.679 you know it's nerve armor and not one ounce of 0:19:40.119 --> 0:19:42.040 financial concern at all. 0:19:42.240 --> 0:19:44.840 That must feel so liberating. 0:19:44.960 --> 0:19:48.760 It is I sleep at night, I wake up and 0:19:48.840 --> 0:19:51.679 I'm full of joy for the next day we have 0:19:51.840 --> 0:19:57.320 to see the granddaughters, what have you? But oh god, yeah, no, 0:19:58.000 --> 0:19:59.600 I'm incredibly lucky, Canna. 0:20:00.280 --> 0:20:03.119 Well, they're lucky to have you as well. Now I 0:20:03.200 --> 0:20:07.199 can ask you how we how does one remove themselves 0:20:07.280 --> 0:20:09.840 or ignore? And I'll probably just answer the question by 0:20:09.880 --> 0:20:12.280 asking you, but how do we learn to turn down 0:20:12.320 --> 0:20:14.840 the noise when it comes to the media and these 0:20:15.119 --> 0:20:19.320 ridiculous clickbait driven headlines? You know, X billion of dollars 0:20:19.320 --> 0:20:22.840 wiped off mom and dad investors today? How do we 0:20:22.920 --> 0:20:24.480 just learn to shut it off? And is where do 0:20:24.640 --> 0:20:27.520 you go to get your news and stay informed. 0:20:27.760 --> 0:20:32.040 I get Actually I'm very naughty now because I only 0:20:32.040 --> 0:20:34.159 get one newspaper. And the only reason I get it 0:20:34.200 --> 0:20:37.320 is so my wife can do the sudoku and the crossword. 0:20:38.040 --> 0:20:40.000 And then is she used to wrap up the vegetables 0:20:40.000 --> 0:20:42.520 before we toss them in the other bin. But yeah, 0:20:42.560 --> 0:20:45.080 I don't have an easy answer to that. It's just 0:20:45.600 --> 0:20:48.480 you know, the way life is. I mean, I cannot 0:20:48.520 --> 0:20:51.760 ignore what's going on in the world. But the important 0:20:51.760 --> 0:20:55.960 thing to remember is that history repeats itself over and 0:20:56.119 --> 0:21:01.320 over and over again. So we're going to have a 0:21:01.400 --> 0:21:04.320 crisis in the seventies. They are oil crisis, back in 0:21:04.440 --> 0:21:09.360 nineteen seventy three, share markets tank, the global financial crisis, 0:21:09.400 --> 0:21:13.080 the COVID, it just goes on and on and on. 0:21:13.960 --> 0:21:16.200 But to suggest that this is a reason for saying, 0:21:16.200 --> 0:21:18.520 oh God, you know shares blah blah blah blah, do 0:21:18.600 --> 0:21:20.680 all the businesses in the world shut down? 0:21:21.280 --> 0:21:23.159 Absolutely not, absolutely not. 0:21:24.080 --> 0:21:30.200 And I think human endeavor is the driving force. So 0:21:30.480 --> 0:21:34.399 one just sits back and enjoys the efforts of a 0:21:34.440 --> 0:21:38.600 lot of very productive people doing very very good jobs 0:21:39.280 --> 0:21:40.440 who then pay us. 0:21:40.640 --> 0:21:43.520 And if anything, when there are these clickbait driven times, 0:21:43.720 --> 0:21:47.480 you know about very normal and natural short term quality 0:21:47.560 --> 0:21:51.240 in the market. Quite often the best opportunities to be 0:21:51.320 --> 0:21:56.160 able to acquire bigger and better quality in income streams 0:21:56.200 --> 0:21:59.439 at a discounted price exactly the same. And it's you know, 0:21:59.480 --> 0:22:03.200 boxing day sales. Do we run away from the supermarket 0:22:03.240 --> 0:22:06.720 and the shopping malls. No, we turn up with our 0:22:06.720 --> 0:22:09.240 hot own money and shop. Why are we doing the 0:22:09.240 --> 0:22:10.480 same with the stock market? 0:22:10.880 --> 0:22:13.600 Well, exactly. And one of the things I do like 0:22:13.680 --> 0:22:17.760 about the listed investment companies certainly that we hold is 0:22:17.760 --> 0:22:21.320 from time to time they come back to their existing 0:22:21.359 --> 0:22:26.040 shareholders and say, we are going to raise fresh capital 0:22:26.560 --> 0:22:31.560 for investment, and we will therefore be offering new shares 0:22:32.160 --> 0:22:35.760 at a small discount and no brokerage to add to 0:22:35.800 --> 0:22:41.320 your portfolio. And the tax rules say that if it's 0:22:41.359 --> 0:22:47.040 not more than thirty thousand dollars, it's there's no fees, 0:22:47.440 --> 0:22:50.320 no tax, no nothing. You can just tip that money in. 0:22:50.520 --> 0:22:51.920 It's dream time. 0:22:52.040 --> 0:22:55.879 It's a no brainer, absolutely, And this is why if 0:22:55.920 --> 0:22:59.720 you're investing, you've also got a stockpile of your cash 0:22:59.800 --> 0:23:02.199 for these opportunities as well, so when they present themselves, 0:23:02.240 --> 0:23:04.600 you can jump on them. Above and beyond obviously, of 0:23:04.600 --> 0:23:07.560 course emergency money, but you know you want to just 0:23:07.560 --> 0:23:11.240 be focused on growing your income and acquiring more of 0:23:11.280 --> 0:23:13.159 these assets that help you grow your income. 0:23:13.400 --> 0:23:15.919 And the beauty with the share purchase plans is you 0:23:15.960 --> 0:23:19.960 can put in anywhere from one thousand dollars up to 0:23:20.080 --> 0:23:24.040 thirty thousand dollars with absolutely no implications whatsoever. 0:23:24.560 --> 0:23:27.920 Yeah, I mean, this is the power of listed investment 0:23:27.960 --> 0:23:31.160 companies and this is not available for ETF holders. 0:23:31.600 --> 0:23:32.000 Nope. 0:23:32.240 --> 0:23:35.800 Yeah, what would you say is the number one biggest 0:23:35.800 --> 0:23:40.360 mistakes young Australians are making these days when it comes 0:23:40.440 --> 0:23:45.040 to their money, their lifestyle and their financial. 0:23:44.560 --> 0:23:46.800 Future their lifestyle. 0:23:46.920 --> 0:23:48.000 But can you elaborate more? 0:23:48.280 --> 0:23:52.560 Well, my wife and I, oh my god, I'm seventy seven, 0:23:52.840 --> 0:23:56.720 and you know we're going way back ancient history. But 0:23:57.280 --> 0:24:00.000 my wife and I didn't have a rosy between us 0:24:00.119 --> 0:24:05.760 when we met and married. But I was lucky because 0:24:06.359 --> 0:24:10.280 I happened to marry someone who was a saver like me, 0:24:10.680 --> 0:24:15.680 and so throughout our lives we've never spent all weird. 0:24:16.040 --> 0:24:20.760 I've never owned a new car. My current automobile is 0:24:20.800 --> 0:24:24.800