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Speaker 1: Welcome to Start Here, a very special mini series within

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Speaker 1: Sugar Mamma's Fireplay that is designed just for you. This

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Speaker 1: is your safe space where you can ask me questions,

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Speaker 1: you can share your financial challenges, and together hopefully we

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Speaker 1: can break through any fears or mental blocks holding you

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Speaker 1: back from getting started. So, whether you're feeling completely overwhelmed,

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Speaker 1: simply stuck, or unsure of where to begin, this is

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Speaker 1: the perfect series for you where I can provide you

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Speaker 1: with honest, practical and empowering guidance to help you take

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Speaker 1: the first steps towards building financial clarity and confidence in

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Speaker 1: your life. Here's how it works. Simply send me a

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Speaker 1: DM on Instagram, at Sugar Mama TV or if you like,

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Speaker 1: at Canna Campbell Official, introduce yourself and let me know

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Speaker 1: what you needed general advice. On and in each episode

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Speaker 1: of Start Here, I personally promise to inspire you most importantly,

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Speaker 1: to educate you and inform you, but best of all,

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Speaker 1: empower you to start thinking critically, take the right action,

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Speaker 1: and start moving in the best direction today. So let's

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Speaker 1: get started. Okay, So today's episode is actually a really

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Speaker 1: exciting one. It's all about investing, which is one of

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Speaker 1: my favorite I guesse strategies when it comes to building wealth. Now,

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Speaker 1: this listener has written into me saying and explaining that

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Speaker 1: she was given ten thousand dollars wow by her grandmother

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Speaker 1: and her grandmother has asked her to go and invest it.

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Speaker 1: She explained that she has read my book Mindful Money

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Speaker 1: and Motivated Money by my financial mentor Peter Thornhill. It's

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Speaker 1: one of the best financial books I can recommend, and

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Speaker 1: that she loved both of them, and she wants to

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Speaker 1: be able to invest like Peter Thornhill recommends, which is

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Speaker 1: purely in Australian industrial shares. Now, she's gone on to

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Speaker 1: explain in her message to me that she doesn't actually

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Speaker 1: want to touch this money, but in the meantime she's

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Speaker 1: actually saving up for an investment property, so she doesn't

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Speaker 1: have any sort of surplus cashload to be able to

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Speaker 1: add to this ten thousand dollars that she's just been given.

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Speaker 1: She wants to invest for the long run, but she

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Speaker 1: doesn't know how to physically get started and how to

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Speaker 1: start investing that ten thousand dollars as Peter Thornhill and

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Speaker 1: as my own investment philosophy recommends. An Australian shares. So

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Speaker 1: these other steps that I recommend to get started and

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Speaker 1: start investing in shares not only my favorite strategy to

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Speaker 1: building wealth, but also my favorite investment asset. Now, first

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Speaker 1: of all, can I just take a quick moment to

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Speaker 1: number one say how lucky are you? I mean, gosh,

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Speaker 1: that's amazing being given ten thousand dollars given in such

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Speaker 1: a kind way, obviously unconditionally, but knowing that you are

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Speaker 1: interested investing and you're taking your financial freedom and independence seriously,

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Speaker 1: I think it's just such a beautiful gift. I also

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Speaker 1: want to obviously remind you that this is general advice only.

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Speaker 1: I'm never going to recommend you must invest or you

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Speaker 1: should invest or, I recommend you invest in this stock,

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Speaker 1: or this share or this listed investment company. Everything here

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Speaker 1: is obviously under general advice only and for educational purposes.

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Speaker 1: Please bear that in mind. And you know, on this

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Speaker 1: topic of investing in shares, I want to remind you

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Speaker 1: and everyone else listening shares are a long term investment. Yes,

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Speaker 1: people do make quick, hot money in a short period

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Speaker 1: of time, but it is a long term investment vehicle.

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Speaker 1: When I say long term, i'm talking ten years, if

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Speaker 1: not indefinitely. And my investment strategy is buy and hold

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Speaker 1: long term. I never intend to sell. Also, there are

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Speaker 1: very high levels of market volatility when it comes to shares.

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Speaker 1: You will watch your share portfolio bounced around like a

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Speaker 1: yo yo. So please understand what you're investing in, the

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Speaker 1: pros and cons, the risks, the costs, and of course

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Speaker 1: the opportunities and the benefits before you make any major decisions.

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Speaker 1: It's really important. Shares are something that you think, I

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Speaker 1: don't need this money for a very very long time.

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Speaker 1: I'm not going to touch it. I would never recommend,

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Speaker 1: for example, someone uses their deposit money and invest it

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Speaker 1: in shares that is fought with danger. But okay, enough

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Speaker 1: of the warnings and the disclaimers, and now you understand

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Speaker 1: how protective I am and how much I care about

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Speaker 1: you making great decisions. Let's get cracking with start here.

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Speaker 1: How do we get started with investing in shares? All right?

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Speaker 1: I am going to suggest though, and I know I've

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Speaker 1: just completely contradicted myself, and I'm sorry, but do go

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Speaker 1: and place do a risk profile so that you understand

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Speaker 1: and you are educated. And I know you've read both

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Speaker 1: books Mindful Money and Motivated money, but still it pays

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Speaker 1: to do a risk profile just in case. Now, the

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Speaker 1: first thing you're going to need is an online share

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Speaker 1: trading account, assuming that you do not want to use

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Speaker 1: a personal broker, and you know, I'd only say that

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Speaker 1: probably a small percentage of these days of people really

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Speaker 1: do use brokers in they're for the sort of multimillion

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Speaker 1: dollar share portfolios or significant six figure share portfolios where

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Speaker 1: you can justify that the cost and the value of

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Speaker 1: an experienced stock broker. If you're going to go down

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Speaker 1: the path that I have gone down, and that's an

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Speaker 1: online share trading account, that is what you're going to need.

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Speaker 1: A lot of people ask me what is the best

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Speaker 1: online share trading account. Look, a lot of these share

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Speaker 1: trading accounts are pretty similar. You do need to do

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Speaker 1: your research, but the things that I would look for

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Speaker 1: in a quality online share trading account is obviously, you know,

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Speaker 1: access to good quality, independent research that is ideally offered

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Speaker 1: for free if you can avoid having to pay for

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Speaker 1: a research subscription. It also gives you access to other

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Speaker 1: tools that might not necessarily suit you right now, but

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Speaker 1: baby in a couple of years time, such as you know,

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Speaker 1: marginal lending that also this online share trading account to

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Speaker 1: give you tax tools because each financial year you've got

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Speaker 1: to obviously do your taxes, and if you've made any

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Speaker 1: capital gains or you've received dividends, you want to be

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Speaker 1: able to access that information weekly and easily so you

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Speaker 1: can lodge your tax returns on time and obviously make

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Speaker 1: sure that they are accurate. I also recommend that you

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Speaker 1: find an online sharetaring account that has a great community

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Speaker 1: where you can talk with other members, people who are

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Speaker 1: on a similar investment plan as you, and can inspire

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Speaker 1: you and motivate you along the way. And most importantly,

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Speaker 1: making sure that whatever online share trading account you use,

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Speaker 1: it's really easy to use. It's intuitive. You do not

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Speaker 1: want to be confused and hitting the wrong button and

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Speaker 1: then panicking and having to make a one eight hundred

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Speaker 1: phone call to say, can you cancel us order? I

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Speaker 1: hit the wrong button. On that note, you want to

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Speaker 1: make sure that it's mobile phone friendly. You know, I

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Speaker 1: like to check my portfolio when I'm out and about.

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Speaker 1: You know, maybe I'm talked in the car looking at

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Speaker 1: my own just to quickly check it. You know, maybe

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Speaker 1: you're sitting on the bus or combed it. You can

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Speaker 1: quickly check it. You don't have to log onto a

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Speaker 1: desktop all the time. So those are the sort of

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Speaker 1: top things I look for. And for the record one

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Speaker 1: thousand dollars project that originally started with A and Z

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Speaker 1: investing because that was just the right thing for me,

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Speaker 1: and there wasn't a wide selection back then as there

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Speaker 1: is today. It then obviously was brought out by CMC,

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Speaker 1: which is where it currently is, and I'm actually looking

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Speaker 1: at changing it. So you want to make sure that

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Speaker 1: you find the right investment platform to trade on, because

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Speaker 1: changing it is not difficult, but you don't want to

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Speaker 1: be changing it all the time. I'll point that out.

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Speaker 1: So and one of the online shared trading accounts that

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Speaker 1: I'm looking at, amongst many, is obviously the Mumu platform,

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Speaker 1: which I have been really impressed by the level of

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Speaker 1: research that's provided, but more importantly the community, because I

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Speaker 1: think that's really important because you know, a financial journey

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Speaker 1: does take a while, and you want to make sure

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Speaker 1: you're being supported and empowered and educated all the way through.

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Speaker 1: So I do love that component of movemom. Next thing

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Speaker 1: you need to do once you've got your online share

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Speaker 1: trading account open is to transfer some money into that

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Speaker 1: now you can transfer that ten thousand dollars if you like,

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Speaker 1: today into that account or as soon as it's open.

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Speaker 1: That doesn't mean you have to immediately invest it. It can

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Speaker 1: sit there and wait until you're ready, and never invest

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Speaker 1: in something you don't understand, and don't invest until you

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Speaker 1: are one hundred percent ready, because as I said, this

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Speaker 1: is a long term game plan. So you've got the

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Speaker 1: account open, the ten thousand dollars is now sitting there,

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Speaker 1: and what's the next step, Well, you need to do

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Speaker 1: your research. It sounds like you've really educated yourself. I

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Speaker 1: love that you've read Motivated Money. As I said, it's

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Speaker 1: one of my favorite books when it comes to investing

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Speaker 1: and anyone that's on a fire journey. I can't stress

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Speaker 1: the importance of this book and the value of this book.

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Speaker 1: So assuming you know, if I go buy your message

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Speaker 1: to me you want Australian shares, and if you loved

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Speaker 1: Pithonal's strategy, you love Australian industrial shares. Now in Peter's

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Speaker 1: book and in Mindful Money, and actually in my next

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Speaker 1: book that I'm currently writing, Financial Freedom, I really talk

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Speaker 1: about the value of listed investment companies and this is

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Speaker 1: what Peter Thornhill really stresses about is such an easy

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Speaker 1: way to invest. So I'm going to assume that because

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Speaker 1: you like those books, that you want to invest in

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Speaker 1: listed investment companies. And for those of you who aren't

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Speaker 1: sure what a LIT investment company is, also known as licks,

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Speaker 1: they are basically pre diversified investment portfolios that you can

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Speaker 1: buy in literally one transaction. So if you wanted to,

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Speaker 1: you could invest in one listed investment company. I know

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Speaker 1: that that ten thousand dollars is immediately invested across say

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Speaker 1: eighty different companies or one hundred different companies and covers

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Speaker 1: you know, fourteen different sectors, so that you have that

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Speaker 1: immediate diversification in literally one simple transaction. And you know,

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Speaker 1: I will openly admit not advice at all, but I

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Speaker 1: will share with you a lot of the thousand dollars

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Speaker 1: Project portfolio is invested in licks, and so is my

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Speaker 1: personal separate share portfolio, and so is my Superinuation investment portfolio.

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Speaker 1: I really love the value of a LICK and it

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Speaker 1: does meet my long term goals. The also the benefit

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Speaker 1: of a list investment companies. It takes out that stress

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Speaker 1: as to when to invest a lot of people you know,

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Speaker 1: have got the money in their share trading account, but

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Speaker 1: they aren't ready to pull the trigger yet because they

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Speaker 1: worry that the market's too expensive, or they think the

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Speaker 1: market's too cheap, and that there's more corrections and pullbacks

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Speaker 1: you know coming next month or next week, and they

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Speaker 1: just sort of sit on the fence and before they

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Speaker 1: know it, the market's recovered and now the market's back

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Speaker 1: to being expensive again. When you invest in a listed

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Speaker 1: investment company, you know, such as agos such as Whitefield,

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Speaker 1: you know this is will taken care of by the fund,

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Speaker 1: the management team behind the listed investment company. Also, with

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Speaker 1: most listed investment companies, you have the access of franking credits,

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Speaker 1: particularly when they're invested in Australian industrial shares, so there's

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Speaker 1: some really great tax credits that come your way, and

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Speaker 1: you are outsourcing all of those complicated, overwhelming analysis paralysis

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Speaker 1: decisions to a expert. If you've ever heard my interview

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Speaker 1: with Angus Gloski, who's the CEO of Whitefield, one of

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Speaker 1: Australia's oldest listed investment companies, it's been going for over

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Speaker 1: one hundred years, they will talk to you about the

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Speaker 1: investment strategy and their returns and their consistent returns and

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Speaker 1: they're consistent growing dividends, so there's a lot of I

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Speaker 1: wouldn't say it's perfect, you know, you do pay fees,

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Speaker 1: their expenses involved, but there is a lot of value

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Speaker 1: you get from utilizing a listed investment company. And again

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Speaker 1: I'm going to assume that that's what you want. So

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Speaker 1: once you've made a decision as to which listed investment

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Speaker 1: company you want to invest in, go ahead and buy it.

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Speaker 1: And as I said, you can buy it one transaction. Now,

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Speaker 1: a common question I get asked is how many listed

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Speaker 1: investment companies should you own? This is a brilliant question.

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Speaker 1: When you look at each of the websites for these

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Speaker 1: listed investment companies, they will share their top holdings, and

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Speaker 1: if you sit down and compare against all the different

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Speaker 1: listed investment companies and what they actually hold, you'll see

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Speaker 1: that there is a common theme. A lot of them

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Speaker 1: hold the same stock. So there is an argument to say, well,

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Speaker 1: you only really need one listed investment company because they're

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Speaker 1: all holding the same thing. They're identical, or they're close

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Speaker 1: to identical. So I'm not going to tell you how

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Speaker 1: many listed investment companies to own, but you can have

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Speaker 1: a look for yourself and see what you feel most

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Speaker 1: comfortable with. Then I only have I think two or

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Speaker 1: three listed investment companies across my whole entire asset holdings,

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Speaker 1: because for me, there is a diminishing return of a

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Speaker 1: de worsification, because why would I need to hold three

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Speaker 1: different shopping bars when they all have the same or

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Speaker 1: very similar So you know, I am a fan of

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Speaker 1: listed investment companies and I don't need to diversify across

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Speaker 1: six or seven. I'm happy with my top three. Now,

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Speaker 1: once you've gone ahead and you've invested that ten thousand dollars,

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Speaker 1: or perhaps you've invested it in parcels of say you know,

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Speaker 1: three thousand dollars, three thousand dollars, three thousand dollars and

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Speaker 1: then one thousand dollars or vice versa, or five thousand

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Speaker 1: dollars and then another five thousand dolls or perhaps you

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Speaker 1: did it one big hit. Congratulations, you're now a shareholder

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Speaker 1: and you are now entitled too dividends, growing passive income streams.

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Speaker 1: I'm so excited for you. It's huge, and it's funny

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Speaker 1: when I have helped people buy shares and I've sat

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Speaker 1: with them where they've bought their first parcel of shares,

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Speaker 1: They've like laughed, going, oh my god, that's it. It's

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Speaker 1: so easy. Why was I so stressed? Why did I

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Speaker 1: waste so much time? And they can't wait to get

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Speaker 1: going again and invest more shares. It is it's so exciting,

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Speaker 1: it's empowering, it's liberating, it's it's almost euphoric. Anyway, back

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Speaker 1: to the practical side. So once you've bought your shares

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Speaker 1: and you're officially a shareholder, you're officially an investor, and

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Speaker 1: you have a sharepot follow you can proudly say you're

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Speaker 1: going to get some paperwork in the mail, and that

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Speaker 1: paperwork is going to be they ask for your tax

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Speaker 1: file number. They're also going to ask for your bank details,

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Speaker 1: and they're also going to ask for your dividend instructions. Now,

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Speaker 1: of course you must give them your taxile number, otherwise

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Speaker 1: your dividends could be taxed of the top marginal tax rate.

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Speaker 1: So please make sure you feel like that paperwork quickly.

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Speaker 1: Of course, submit your bank details, because if some dividends

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Speaker 1: need to be paid to you, they need to know

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Speaker 1: that they're paid to you quickly and into the correct

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Speaker 1: bank account. Now, one other thing I will hack I

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Speaker 1: will add in here is you might want to set

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Speaker 1: up a separate bank account for those dividends only so

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Speaker 1: that you don't accidentally spend those dividends. And it will

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Speaker 1: also help you build up those dividends if they can't

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Speaker 1: be reinvested, which you'll come to in a second, because

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Speaker 1: you can add them, watch them up and then manually

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Speaker 1: go and you know, buy more listed investment companies, or

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Speaker 1: buy more listed shares in that listed investment company. So

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Speaker 1: if you can try and put your bank details as

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Speaker 1: a separate bank account for all of your dividends away

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Speaker 1: from your spending money, trust me, it is quite likely

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Speaker 1: that you will accidentally and innocently go and spend those

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Speaker 1: dividends because you haven't realized that where they've come. Sorry.

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Speaker 1: Next thing is, obviously you need to submit whether you

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Speaker 1: want a dividend reinvestment plan, activate it or not. Now.

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Speaker 1: Not all listed investment companies offer this, and some will

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Speaker 1: offer a bonus share plan which you can also enroll

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Speaker 1: in should you wish. But if they do offer an

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Speaker 1: automatic dividend reinvestment plan, I strongly suggest seriously considering this.

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Speaker 1: The reason why it means instead of say that tenh

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Speaker 1: you know say it's yielding five percent, instead of them

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Speaker 1: paying you five hundred dollars into your separate bank account. Instead,

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Speaker 1: you get to buy more units in that listed investment company,

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Speaker 1: which can obviously allows the power of compounding interest to

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Speaker 1: work its magic for you and allow that portfolio to grow,

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Speaker 1: which is one of your goals. And it is very

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Speaker 1: much you know, adds an element of set and forget

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Speaker 1: because you never really in to do it. And you

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Speaker 1: also you have the additional benefit of not having to

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Speaker 1: pay brokerage every time you want to buy shares. So

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Speaker 1: I really love this idea of automatic dividend reinvestment. It

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Speaker 1: takes out the stress. It's one less bit of life

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Speaker 1: admin for you to have to do, and you know,

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Speaker 1: it does really help the portfolio grow. And I owe

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Speaker 1: a lot of the thousand dollars project portfolio to these

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Speaker 1: automatic dividend reinvestment plans. That's how it's you know, worth

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Speaker 1: over three hundred thousand dollars today and which literally started

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Speaker 1: with literally one thousand dollars. I will say this, you

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Speaker 1: also do need to track your dividends for tax, even

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Speaker 1: though you may choose to tick that box for a

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Speaker 1: full dividend reinvestment you still have to pay tax on that.

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Speaker 1: So that's why I said that online share trading account

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Speaker 1: if it has tax tools, tick tick tick. I love

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Speaker 1: that because that's going to make it easier for when

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Speaker 1: it comes to tax term, because you'll have to declare

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Speaker 1: those dividends. Even though they may have been reinvested, you

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Speaker 1: still have to pay tax on them. But because you've

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Speaker 1: invested in listed investment companies and hopefully they have franking

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Speaker 1: credits and there's one hundred percent franked, you'll have some

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Speaker 1: tax benefits along the way, and hopefully you don't have

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Speaker 1: to pay any tax on that, unlike you have to

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Speaker 1: pay tax on, say, interest that you may have earned

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Speaker 1: with that money in a bank account. So that is

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Speaker 1: essentially the steps you need to do to get started

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Speaker 1: start building your portfolio. But it doesn't just stop there.

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Speaker 1: You know, I am really passionate about you starting this

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Speaker 1: plan of building up an investment portfolio. I know you've

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Speaker 1: mentioned you're saving up for an investment property, which is brilliant,

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Speaker 1: But I want to help inspire you to keep going

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Speaker 1: with a share PORTFOLO, and this part of your overall

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Speaker 1: wealth creation strategy. So can I recommend it in the meantime,

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Speaker 1: you make sure you pay attention to your superannuation as well.

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Speaker 1: You understand the power of salary sacrificing and working out

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Speaker 1: whether that's appropriate for you or not. You know, you

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Speaker 1: understand how much money you potentially need to retire, and

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Speaker 1: you know what the potential gaps are and you're doing

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Speaker 1: the things today to help minimize those gaps or completely

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Speaker 1: eradicate those gaps. And I also suggest that you do

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Speaker 1: pay attention to this share portfolio. I know you want

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Speaker 1: something that's set and forget. You know, you don't want

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Speaker 1: to spend this money, you don't want to touch it.

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Speaker 1: You just want to leave it there for the next

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Speaker 1: ten twenty years or so. But can I gently recommend

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Speaker 1: that you do pay attention to it, and you pay

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Speaker 1: attention to it with a sense of nurturing it so

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Speaker 1: that it can grow. You know, can you look at

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Speaker 1: further down the track, once you've bought your investment property

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Speaker 1: and that's working for you and it's paying itself off,

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Speaker 1: or it's doing what it's in alignment to your financial goals,

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Speaker 1: that you perhaps look at maybe setting up a regular

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Speaker 1: investment plan for this investment portfolio of yours, or perhaps

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Speaker 1: you look at something like a margin loan where you

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Speaker 1: under obviously getting serious advice from a financial planner, you know,

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Speaker 1: look at something where you can incorporate a gearing strategy

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Speaker 1: or even a debt recycling strategy so that you can

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Speaker 1: continue on building this portfolio so that your wealth is

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Speaker 1: really well diversified across property and across share and can.

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Speaker 1: I also strongly recommend that you look at personal insurance

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Speaker 1: protecting your wealth. Go and get some advice around whether

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Speaker 1: you should have an income protection policy and how should

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Speaker 1: you own it. Could it be through your super Is

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Speaker 1: it going to be tax deductible for you? How much

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Speaker 1: is it going to cost. I want to make sure

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Speaker 1: that you can stay on your path of building financial

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Speaker 1: independence and have early retirement. And of course remember to

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Speaker 1: always have emergency money. The right amount of emergency money.

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Speaker 1: Your share portfolio is not your emergency money. This is

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Speaker 1: your financial independence money. This is what's going to allow

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Speaker 1: you to have freedom, going to give you choice, is

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Speaker 1: going to give you flexibility, It's going to give you

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Speaker 1: time to do the things that you love. So I

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Speaker 1: hope you understand now how to get started in building

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Speaker 1: your share portfolio. This is a really exciting time. In

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Speaker 1: your life, and you're incredibly lucky to be given this money.

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Speaker 1: And I think it's so admirable that you respect this

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Speaker 1: as well and you want to nurture it and grow it.

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Speaker 1: But set and forget is powerful. Set and forget is great.

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Speaker 1: But please make sure that you nurture this. You stay focused,

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Speaker 1: you stay inspired, and you keep putting the right action

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Speaker 1: in place to allow your wealth to flourish. And you

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Speaker 1: look back with absolutely zero regrets, and you look back

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Speaker 1: with an immense sensation of pride and joy and gratitude

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Speaker 1: in yourself but also in your beautiful grandmother. All Right,

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Speaker 1: thank you everyone for listening. This is a Start Here

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Speaker 1: miniseries within Sugar Mamma's Fireplay. A quick reminder, of course,

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Speaker 1: this is general advice only. Everything I've shared with you

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Speaker 1: is to inspire you and to use as a guidance

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Speaker 1: and only for educational purposes. If you have any questions

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Speaker 1: at all, please always feel reach out to me on

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Speaker 1: Instagram at Sugar Mama TV or Canna Campbell Official. Thank

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Speaker 1: you everyone for listing. I'll catch you next week for

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Speaker 1: Start Here and Sugar Mamma's Fire Playing, which out