WEBVTT - Encore: Sharemarket investing for beginners parts 1, 2 & 3 0:00:00.440 --> 0:00:03.139 Hello and welcome to It All Adds Up the podcast 0:00:03.140 --> 0:00:05.239 where we chat about money, how to get it, how 0:00:05.240 --> 0:00:07.880 to spend it, and how to invest it. I'm senior 0:00:07.880 --> 0:00:11.720 economics writer Jess Irvine, and you're listening to our summer series, 0:00:11.720 --> 0:00:14.630 where we're replaying some of our hottest hits to help 0:00:14.630 --> 0:00:18.680 you get in shipshape financial form for 2023. It all 0:00:18.680 --> 0:00:21.710 adds Up will resume normal programming in February with a 0:00:21.710 --> 0:00:24.890 brand new season full of money saving tips and insights. 0:00:25.100 --> 0:00:38.430 So until then, sit back, relax and enjoy. Hello and 0:00:38.430 --> 0:00:41.040 welcome to It All Adds Up the podcast where we 0:00:41.040 --> 0:00:43.440 chat about money, how to get it, how to spend it, 0:00:43.440 --> 0:00:47.550 and how to invest it. I'm senior economics writer Jess Irvine. 0:00:47.909 --> 0:00:49.830 And I'm money editor, Dumb Pal. And so far in 0:00:49.830 --> 0:00:51.840 the pod, we've covered a few things like how to 0:00:51.840 --> 0:00:54.420 get your pay rise and giving you some savings tips. 0:00:54.420 --> 0:00:57.150 But Jess, I think it's about time we moved on 0:00:57.150 --> 0:00:57.900 to the fun stuff. 0:00:58.230 --> 0:01:02.850 Investing so fun. I'm so excited to talk about investing 0:01:02.850 --> 0:01:06.300 because I think it's a topic that interests but scares 0:01:06.300 --> 0:01:08.789 a lot of people. But there has been a real 0:01:08.790 --> 0:01:11.880 revolution in the world of investing, and people talk about 0:01:11.880 --> 0:01:15.030 a democratization of sort of access to being able to 0:01:15.450 --> 0:01:19.140 directly invest in the share market. And it's really something 0:01:19.140 --> 0:01:23.009 that everyone should get up to speed with, at least. So, Dom, 0:01:23.010 --> 0:01:25.890 over the next few episodes, we've decided to tackle the big, 0:01:25.890 --> 0:01:29.250 scary world of share investing in three parts. And today 0:01:29.250 --> 0:01:32.700 we're going to start with the absolute basics. So what 0:01:32.700 --> 0:01:36.060 are shares? Why would you buy them and how can 0:01:36.060 --> 0:01:37.949 you buy them at all their various forms? 0:01:38.400 --> 0:01:40.440 Yeah. And by the end, we want to turn you 0:01:40.440 --> 0:01:43.410 into a bit of an investing whiz. And we're just 0:01:43.410 --> 0:01:45.480 going to rip through a lot of information this episode, 0:01:45.480 --> 0:01:46.860 just to give you a bit of a taste of 0:01:46.860 --> 0:01:49.380 what's out there. But if you'd like us to do 0:01:49.380 --> 0:01:52.919 a deeper dive into anything that we do, raise then 0:01:52.920 --> 0:01:55.440 as an email add, it all adds up at 9:00 0:01:55.540 --> 0:01:57.660 to you and we'll consider it for a future episode. 0:01:57.660 --> 0:02:00.930 And you can also still submit listener questions. We'll be 0:02:00.930 --> 0:02:02.550 taking those on. We'll be reading one out at the 0:02:02.550 --> 0:02:04.770 end of the episode, so please keep sending those through. 0:02:04.920 --> 0:02:08.460 Yeah, we love hearing from you. And as always, please 0:02:08.460 --> 0:02:11.700 do remember that the information we're about to discuss is 0:02:11.700 --> 0:02:14.520 general in nature and does not take into account your 0:02:14.520 --> 0:02:18.510 personal goals, objectives or circumstances. And you should always seek 0:02:18.510 --> 0:02:23.400 some professional advice before making any major financial decisions. So 0:02:23.400 --> 0:02:26.160 Dom Yeah, let's have a quick chat about where we're 0:02:26.160 --> 0:02:29.760 at personally in terms of share market investing. I've written 0:02:30.090 --> 0:02:32.549 copious amounts of columns about the fact that I became 0:02:32.550 --> 0:02:36.480 a direct share market investor just over a year ago. Now, 0:02:36.780 --> 0:02:38.790 where are you at? Have you ever bought any shares? 0:02:39.360 --> 0:02:44.790 I dabbled very briefly, I would say pre-COVID with some 0:02:44.790 --> 0:02:49.590 some ETFs, but in sort of a meaningful way. I've 0:02:49.590 --> 0:02:52.530 never really invested in the share market. I've never really, 0:02:52.530 --> 0:02:55.800 like thought about it, which is bad for for me 0:02:55.800 --> 0:02:57.900 being the money at it. I feel like there's a 0:02:57.900 --> 0:03:00.960 really sort of terrible thing to admit, but at the 0:03:00.960 --> 0:03:03.209 same time, it's also an opportunity for me to learn 0:03:03.630 --> 0:03:05.930 as we go. So I'm going to sort of be 0:03:06.190 --> 0:03:09.239 a bit of a learner as well through this whole process. 0:03:09.389 --> 0:03:11.520 Exactly. And I'm excited. We've had the idea that we 0:03:11.520 --> 0:03:15.270 could actually buy shares during a podcast episode so people 0:03:15.270 --> 0:03:17.340 could hear, you know, what that process is actually like. 0:03:17.340 --> 0:03:20.940 Because I remember just I actually just started by like 0:03:20.940 --> 0:03:23.430 going to the ASX website and going like, how do 0:03:23.430 --> 0:03:25.680 you buy shares? And I thought maybe I could buy 0:03:25.680 --> 0:03:27.299 them through the ASX website. 0:03:27.950 --> 0:03:30.330 I'm stuff that you can't. I mean, I thought exactly 0:03:30.330 --> 0:03:31.650 the same thing. I was like, surely we can just 0:03:31.650 --> 0:03:34.470 go onto this, this website, you know, and buy them there. 0:03:34.470 --> 0:03:35.840 But no, alas, yeah. 0:03:35.850 --> 0:03:38.070 No, you have to, you must have a broker and 0:03:38.070 --> 0:03:40.260 there's all sorts of different brokers, so we'll get into 0:03:40.260 --> 0:03:43.620 that in a later episode. But first, you know, just 0:03:43.790 --> 0:03:46.410 to let people know that there has been this massive, 0:03:46.410 --> 0:03:49.080 you know, explosion in the number of Aussies. It's something 0:03:49.080 --> 0:03:51.930 like the ASX did an investor study and it's something 0:03:51.930 --> 0:03:55.770 like more than a million Australians bought shares for the 0:03:55.770 --> 0:03:59.490 first time during the sort of COVID pandemic era, which 0:03:59.490 --> 0:04:01.320 is just kind of incredible, isn't it? 0:04:01.350 --> 0:04:04.050 Yeah, it's really shocking. And it's not just like shares. 0:04:04.050 --> 0:04:05.820 People just got into investing in a huge way. Like, 0:04:05.880 --> 0:04:09.450 you know, we saw something last week or last month 0:04:09.450 --> 0:04:11.220 from ASIC's talking about the number of people who bought 0:04:11.220 --> 0:04:15.460 things like crypto during COVID. Like people just went bananas for, 0:04:15.540 --> 0:04:18.930 for investing. And there's a lot of like reasons behind that. 0:04:18.930 --> 0:04:22.049 Like I suppose like the broad reason why people did 0:04:22.050 --> 0:04:23.430 it during COVID is that people had a lot more 0:04:23.430 --> 0:04:26.040 time on their hands. It was a lot of stimulus 0:04:26.040 --> 0:04:29.850 in the economy. People weren't spending money on many other things. 0:04:29.850 --> 0:04:32.400 So all those sort of things combined meant people were 0:04:32.400 --> 0:04:35.839 more sort of keen, I guess, to get involved with 0:04:35.880 --> 0:04:38.640 shares of, especially if they had never done it before. But, 0:04:38.640 --> 0:04:40.349 you know, we do have a lot of new tech 0:04:40.350 --> 0:04:42.330 and other things in the market as well. That helps. 0:04:42.779 --> 0:04:45.659 Yeah. So you can do sort of micro investing apps 0:04:45.660 --> 0:04:47.910 where you can invest for as little as a dollar 0:04:47.910 --> 0:04:50.940 or $10. You know, there's sites like just to name 0:04:50.940 --> 0:04:55.380 a few shares is Pearler, CommSec Pocket Raiz Invest Spaceship Voyager. 0:04:55.380 --> 0:04:58.049 So there's all these sort of micro investing apps where 0:04:58.050 --> 0:05:00.479 you can get a foot in the door without sort 0:05:00.480 --> 0:05:02.789 of necessarily needing the big lump of cash that you 0:05:02.790 --> 0:05:05.669 would take to a broker as you did in the 0:05:05.670 --> 0:05:08.550 olden days. And it's so easy. It's it's in your pocket. 0:05:08.670 --> 0:05:10.530 I'm going to make a confession, which is to say 0:05:10.529 --> 0:05:13.590 that I have bought shares while literally sitting on the toilet. 0:05:15.450 --> 0:05:16.050 Which is. 0:05:16.050 --> 0:05:17.970 Unhygienic. But, you know, we all do it. 0:05:18.390 --> 0:05:20.640 Yeah, exactly. And I decided to do it for the 0:05:20.640 --> 0:05:23.760 sake of it to just be like I bought shares. 0:05:23.760 --> 0:05:26.279 I'll Citigo Yeah, I mean, that's and. 0:05:26.279 --> 0:05:30.390 That's that is, I think, the perfect example of how 0:05:30.390 --> 0:05:32.969 far we've come in terms of buying shares. Because if 0:05:32.970 --> 0:05:35.690 you look back, you know, 20 years ago. Right. Yeah, 0:05:35.810 --> 0:05:37.839 you literally would have had to go into your broker 0:05:37.839 --> 0:05:40.360 or like, go walk into the CBD and talk to 0:05:40.360 --> 0:05:43.089 your broker and hand the big bag of cash, I assume. 0:05:43.600 --> 0:05:45.849 I assume all transactions were done with big bags of cash. 0:05:45.940 --> 0:05:48.900 20 years ago. So yeah, things are modernized a lot. 0:05:48.910 --> 0:05:51.430 And also during COVID, you know, we didn't have any 0:05:51.850 --> 0:05:54.279 like a lot of great investment options and interest rates 0:05:54.279 --> 0:05:56.680 were at record lows. Like if you had money in cash, 0:05:56.680 --> 0:05:59.349 it was almost you almost losing money. It was such 0:05:59.350 --> 0:06:02.049 a bad investment. So people were people were out there 0:06:02.050 --> 0:06:05.320 looking for other ways to get a better return on 0:06:05.320 --> 0:06:08.240 on their cash. So all these sort of things, a 0:06:08.260 --> 0:06:12.130 big confluence of reasons sort of produced this, this massive 0:06:12.130 --> 0:06:14.560 investing boom. So people are more interested in it than 0:06:14.560 --> 0:06:15.490 they ever have been before. 0:06:15.700 --> 0:06:17.979 Yeah, and it has turned out to be a bit 0:06:17.980 --> 0:06:20.390 of a rocky ride over the last year if, you know, 0:06:20.390 --> 0:06:22.720 the share market has been all over the shop and 0:06:22.720 --> 0:06:27.070 mostly down since I've been buying it. And so it 0:06:27.070 --> 0:06:28.900 is a bumpy ride and I think we want to 0:06:28.900 --> 0:06:31.420 sort of talk people through that and let people know 0:06:31.420 --> 0:06:34.690 it's not there's no guaranteed returns. You know, historical performance 0:06:34.690 --> 0:06:37.270 is not is no guarantee. And, you know, if you're 0:06:37.270 --> 0:06:39.669 someone who's saving up for a home and you're parking 0:06:39.670 --> 0:06:40.900 your money in shares and I want to have a 0:06:40.900 --> 0:06:44.110 really good talk to you. So I thought we could 0:06:44.110 --> 0:06:47.350 just start with some super basics, which is like so 0:06:47.589 --> 0:06:49.450 I mean, basically the first thing you need to do 0:06:49.450 --> 0:06:50.950 if you want invested shares is you need to have 0:06:50.950 --> 0:06:53.650 some cash to invest. So you need to spend less 0:06:53.650 --> 0:06:56.589 than you earn. Pretty essential and you got some savings. 0:06:56.589 --> 0:06:59.260 And then I want to remind people of the there 0:06:59.260 --> 0:07:01.779 are lots of different ways that you can save and 0:07:01.779 --> 0:07:05.409 buy assets and invest of which shares is one. But 0:07:05.410 --> 0:07:06.850 we thought we would just talk through the sort of 0:07:06.850 --> 0:07:09.910 the risk spectrum, starting with like what is the lowest 0:07:09.910 --> 0:07:11.140 risk thing to do with your money? 0:07:11.770 --> 0:07:14.410 Well, it's cash. You know, as I mentioned before, you know, 0:07:14.770 --> 0:07:17.890 we've seen historically over the past few years very, very 0:07:17.890 --> 0:07:21.070 low returns for cash because your interest rate is not 0:07:21.070 --> 0:07:24.489 only what you pay on your mortgage and affects your 0:07:24.490 --> 0:07:27.250 mortgage repayments, but it also affects the money you get 0:07:27.250 --> 0:07:29.350 back from the bank if you have cash in your 0:07:29.350 --> 0:07:32.560 bank account. So when that was 8.1%, you were getting 0:07:32.920 --> 0:07:35.890 virtually nothing back. We've you had money sitting in your 0:07:35.890 --> 0:07:38.590 bank account or sitting in a term deposit. So cash 0:07:38.590 --> 0:07:42.250 is super safe, but very low returns, though they are 0:07:42.250 --> 0:07:45.310 slowly increasing as interest rates are increasing. 0:07:45.670 --> 0:07:48.670 Yeah. And the next thing sort of moving slightly up, 0:07:48.670 --> 0:07:52.540 but not too far is sort of fixed interest type products. 0:07:52.540 --> 0:07:55.660 And we're talking here about bonds. And bonds can be 0:07:55.660 --> 0:08:00.160 issued by the governments or corporates. And so government bonds, 0:08:00.160 --> 0:08:03.490 you know, you give the government your cash and they say, Alright, 0:08:03.490 --> 0:08:05.800 we'll pay you this fixed amount of interest every year 0:08:05.950 --> 0:08:07.900 and at the end we'll give you your money back 0:08:07.900 --> 0:08:10.810 too and they can be traded in secondary markets etc. 0:08:10.960 --> 0:08:12.640 and the price can go up and down. But if 0:08:12.640 --> 0:08:14.540 you just want to give your money to the to 0:08:14.650 --> 0:08:17.200 the government, you know, you get that fixed return and 0:08:17.200 --> 0:08:20.440 the same corporates, you know, companies can also issue bonds 0:08:21.160 --> 0:08:23.560 and same sort of arrangement, although you've got a little 0:08:23.560 --> 0:08:26.170 bit more risk of course that the company, you know, 0:08:26.170 --> 0:08:28.630 things go pear shaped and well is your money is safe, 0:08:28.630 --> 0:08:30.400 will it come back in the same way that you 0:08:30.400 --> 0:08:33.699 could be guaranteed with the government? So bonds are an option? 0:08:34.360 --> 0:08:36.850 Yep, you can again. Bonds. The first time I ever 0:08:36.850 --> 0:08:39.699 heard about bonds was in the Alvin and the Chipmunks movie. 0:08:39.700 --> 0:08:41.679 For any Alvin and the Chipmunks fans out there, that's 0:08:41.679 --> 0:08:43.360 the first time I ever heard the phrase bonds and 0:08:43.360 --> 0:08:45.370 wonder what they were. So anyway, moving on. 0:08:45.460 --> 0:08:46.840 I just I need. 0:08:47.020 --> 0:08:48.010 To know, did they invest. 0:08:48.010 --> 0:08:48.970 In both of them? 0:08:48.970 --> 0:08:50.920 So there's like a scene, I think in like the 0:08:50.920 --> 0:08:54.100 early in the movie where like the dad of the Chipmunks, like, 0:08:54.100 --> 0:08:56.050 gives them a gift for Christmas and he buys them 0:08:56.050 --> 0:08:58.750 bonds and they really disappoint because obviously they'd like kids 0:08:58.750 --> 0:09:00.760 and they want to toys. Anyway, this is we're going 0:09:00.760 --> 0:09:03.730 way off the rails here anyway. Next thing up, the 0:09:03.730 --> 0:09:06.270 sort of the risk scale would be things like shares. 0:09:06.280 --> 0:09:09.400 So these are sort of income producing assets they can 0:09:09.400 --> 0:09:12.280 appreciate in value. They can also drop in value. Property 0:09:12.280 --> 0:09:15.280 is also included in this. In this bracket, though, we'll 0:09:15.280 --> 0:09:18.790 probably leave talking about investing in property for another podcast's 0:09:18.790 --> 0:09:19.540 another day. 0:09:19.900 --> 0:09:22.089 I mean, the thing with shares is that people always 0:09:22.090 --> 0:09:24.699 focus on the share market going up, but actually a 0:09:24.700 --> 0:09:27.910 lot of the return that you get from shares is dividends. 0:09:27.910 --> 0:09:30.760 So that's another component and that's sort of like, you know, 0:09:30.760 --> 0:09:33.760 you have an investment property, you get paid rent, you 0:09:33.940 --> 0:09:37.179 have shares, you get paid dividends, and then also, you know, 0:09:37.179 --> 0:09:39.819 the asset valuation can fluctuate as well in a way 0:09:39.820 --> 0:09:41.949 that gets you return. So we'll get into a bit 0:09:41.950 --> 0:09:44.170 more of that. And then so I mean, finally up 0:09:44.170 --> 0:09:46.360 the chain of things like assets that you can hold 0:09:46.360 --> 0:09:49.570 which don't necessarily pay you the income like dividends or rent, 0:09:50.140 --> 0:09:53.680 you know, could be commodities and could be crypto. And 0:09:53.679 --> 0:09:55.600 then within that, there's a risk spectrum of, you know, 0:09:55.600 --> 0:09:58.150 like maybe gold is perhaps something that's going to be 0:09:58.150 --> 0:10:01.059 a bit more stable in value or that to fluctuate too. 0:10:01.059 --> 0:10:04.090 But you're sort of taking a punt on supply and demand, 0:10:04.090 --> 0:10:05.950 sort of driving demand for that and whether you would 0:10:05.950 --> 0:10:10.300 get a capital appreciation. So crypto probably being on the 0:10:10.300 --> 0:10:12.130 out there and scale. 0:10:12.190 --> 0:10:16.390 Absolutely, especially at the moment. One other thing to note 0:10:16.390 --> 0:10:21.850 is that through superannuation, we are all shareholders in, you know, many, 0:10:21.850 --> 0:10:25.569 many and broad companies and that has has various tax 0:10:25.570 --> 0:10:28.120 benefits in terms of being another way to invest in 0:10:28.120 --> 0:10:31.120 shares indirectly. But we'll discuss that in a sort of 0:10:32.140 --> 0:10:33.880 another episode when we talk about what you should think 0:10:33.880 --> 0:10:37.300 about before you invest in shares. But for now, I mean, 0:10:37.990 --> 0:10:39.819 what is it? What do you do when you own 0:10:39.820 --> 0:10:42.610 a share? What does that mean? What happens when I 0:10:42.610 --> 0:10:44.950 when I buy, buy my share? What does that represent 0:10:44.950 --> 0:10:45.910 for me as a person? 0:10:46.000 --> 0:10:50.380 You become a capitalist. You become an owner of capital. 0:10:50.830 --> 0:10:52.990 And this is something that I tell myself and I've 0:10:52.990 --> 0:10:55.630 told myself several times, the share market prices go up 0:10:55.630 --> 0:10:58.329 and down, Bring it back to. What does it mean 0:10:58.330 --> 0:11:00.550 when you have purchased a share? What does it mean 0:11:00.550 --> 0:11:02.890 to own a share? It means that you are the 0:11:02.890 --> 0:11:06.429 part owner of the company in which you've bought the share. 0:11:07.179 --> 0:11:10.840 So you're in there. Congratulations. And so if that company 0:11:10.840 --> 0:11:13.780 makes some money and it decides not to reinvest the 0:11:13.780 --> 0:11:16.570 money in the business and it decides instead to distribute 0:11:16.570 --> 0:11:19.720 some of the profit to its shareholders, of which you 0:11:19.720 --> 0:11:23.710 are now, one, you'll get something called a dividend. And 0:11:23.710 --> 0:11:25.750 then if the you know, the value of the shares 0:11:25.750 --> 0:11:28.870 go up over time, because the company is performing very well, 0:11:29.440 --> 0:11:32.620 you can sort of sell out your shares perhaps for 0:11:32.620 --> 0:11:35.590 a capital gain versus what you bought them for. So 0:11:35.590 --> 0:11:38.679 there's two elements to returns on shares is the dividends 0:11:38.890 --> 0:11:43.390 and then there's any capital appreciation. And what we economists 0:11:43.390 --> 0:11:47.110 have observed historically, at least, is that there is this 0:11:47.110 --> 0:11:50.469 something called an equity premium puzzle, which is to say 0:11:50.470 --> 0:11:53.320 that over the last century or so, it is true 0:11:53.320 --> 0:11:56.260 that the value of shares have gone up by more 0:11:56.260 --> 0:11:59.980 than what returns would be on those safe, secure assets 0:11:59.980 --> 0:12:03.880 like government bonds have. So, you know, does it always 0:12:03.880 --> 0:12:07.360 happen that shares go up in value by the 8% 0:12:07.660 --> 0:12:12.250 every year? Absolutely not. But over the last century, if 0:12:12.250 --> 0:12:15.670 you averaged it out, you know, we're talking about a 0:12:15.670 --> 0:12:19.180 return that is higher because of that element of risk 0:12:19.179 --> 0:12:21.610 as well. But gosh, there's a lot of volatility. 0:12:21.730 --> 0:12:24.040 Yes. And as we're speaking today, I think the market 0:12:24.040 --> 0:12:28.570 has fallen 2.5% this morning. So that is an indication 0:12:28.570 --> 0:12:31.240 of the sort of volatility that you kind of experience. 0:12:31.240 --> 0:12:34.120 And like putting my my former retail reporter hat on 0:12:34.120 --> 0:12:35.410 like a bit of an example of this. If we 0:12:35.410 --> 0:12:38.050 look at something like Woolies, which is a household name, 0:12:38.380 --> 0:12:40.870 if we look over the past year, Woolworths, the price 0:12:40.870 --> 0:12:43.300 of its shares have fallen 8%, but it's been very 0:12:43.300 --> 0:12:46.360 volatile during that time. And then if you look over 0:12:46.360 --> 0:12:49.810 the past five years, it's actually up 68% and then 0:12:49.809 --> 0:12:51.850 if you look over the past 20 years it's grown 0:12:51.940 --> 0:12:55.390 600 over 600%, so that gives you a bit of 0:12:55.390 --> 0:12:57.190 an idea of like the short term. It's been volatile, 0:12:57.190 --> 0:12:58.600 it's been down, but then if you stretch it out 0:12:58.600 --> 0:13:00.699 over a longer term, it's actually gone up quite a lot. 0:13:01.030 --> 0:13:03.250 But then obviously there's companies that like the opposite of that, 0:13:03.250 --> 0:13:06.670 which like again, putting my retail hat on Myer. Much 0:13:06.670 --> 0:13:09.850 loved department store had some struggles it's seen some short 0:13:09.850 --> 0:13:12.940 term gains in its shed share price but if you 0:13:12.940 --> 0:13:16.630 look since it's listed, it's actually down very significantly. So 0:13:16.630 --> 0:13:19.270 these are the sort of trials and tribulations you've got 0:13:19.270 --> 0:13:22.030 to deal with if you do buy a share and 0:13:22.030 --> 0:13:24.520 if you do become an owner, a part owner of 0:13:24.580 --> 0:13:25.270 of a company. 0:13:25.809 --> 0:13:28.750 Yeah. And we could talk to perhaps the importance of 0:13:28.750 --> 0:13:33.189 diversification there because, you know, owning one single stock, that's 0:13:33.190 --> 0:13:35.710 a risky business. But there are ways that you can 0:13:35.890 --> 0:13:39.130 buy into shares where you're sort of purchasing a big 0:13:39.130 --> 0:13:42.310 bundle of lots of different shares, which just spreads some 0:13:42.309 --> 0:13:44.530 of the risk. So let's run through some of the 0:13:44.530 --> 0:13:47.320 ways that you can buy shares, because I think people go, Oh, 0:13:47.320 --> 0:13:49.569 buy shares are better, just go buy some, you know, 0:13:49.570 --> 0:13:53.780 BHP or some CBA shares. And that's what I'll do. 0:13:53.780 --> 0:13:56.439 But I mean, that is legitimately something you can do. 0:13:56.470 --> 0:13:59.230 You could get a brokerage account and just buy one 0:13:59.380 --> 0:14:03.640 individual share and watch it in a very scared fashion. 0:14:03.850 --> 0:14:06.160 You're not going to make much money, but you could 0:14:06.160 --> 0:14:07.810 do it. You could just own the single. 0:14:07.809 --> 0:14:08.470 Share, if. 0:14:08.470 --> 0:14:10.569 You like, want to troll through a lot of company 0:14:10.570 --> 0:14:13.000 reports and if you have a lot of inside information. 0:14:13.630 --> 0:14:13.870 About. 0:14:13.870 --> 0:14:16.550 That particular company, it would be illegal to trade on that. 0:14:16.570 --> 0:14:21.490 But I guess the advantage of individual shares is this 0:14:21.640 --> 0:14:24.280 You don't pay management fees. You're not paying somebody else 0:14:24.280 --> 0:14:26.740 to make decisions about what to buy. So you don't pay, 0:14:27.160 --> 0:14:30.040 you know, an annual management fee. But gosh, it's a 0:14:30.040 --> 0:14:33.640 lot of risk. So individual shares are one option. Another 0:14:33.640 --> 0:14:36.670 way is sort of pooled investment vehicles and there's a 0:14:36.670 --> 0:14:40.510 lots of different types of them. But basically you go 0:14:40.510 --> 0:14:43.720 in with other people and you put your money altogether 0:14:44.050 --> 0:14:46.000 and then instead of just, you know, having a small 0:14:46.000 --> 0:14:48.760 amount of money and only buying one share, the fund 0:14:48.760 --> 0:14:51.790 can buy a little slice of a lot of different 0:14:51.790 --> 0:14:55.960 shares and or other asset classes. So if you're looking 0:14:55.960 --> 0:14:58.570 at the Australian share market, the sort of things you're 0:14:58.570 --> 0:15:03.280 looking at, things like listed investment companies or even exchange 0:15:03.280 --> 0:15:07.630 traded management funds, and those funds will own a little 0:15:07.630 --> 0:15:10.330 slice of a lot of different assets and you can 0:15:10.330 --> 0:15:13.840 purchase a unit in that fund and you get instant. 0:15:13.860 --> 0:15:18.660 Diversification and access to all the underlying assets in that fund. Now, 0:15:18.660 --> 0:15:20.880 one of the ones that has become really popular in 0:15:20.880 --> 0:15:26.250 recent years are things called exchange traded funds or ETFs, 0:15:26.250 --> 0:15:28.320 and not to be confused with EFT. 0:15:29.100 --> 0:15:31.619 I see a lot of novice nifty. I've got to 0:15:31.620 --> 0:15:33.150 get into the different fees. 0:15:33.540 --> 0:15:37.470 Yeah. ETF so exchange traded funds. Dom Do you want 0:15:37.470 --> 0:15:40.590 to have a go at explaining what an exchange traded 0:15:40.590 --> 0:15:41.310 fund is? 0:15:42.090 --> 0:15:44.700 Yeah. So it's very, it's sort of quite similar. 0:15:44.700 --> 0:15:50.310 Like basically you are buying rather than an individual share. 0:15:50.820 --> 0:15:54.960 They are Woolies or BHP. You're buying effectively a basket 0:15:55.380 --> 0:15:59.100 of shares like a shopping basket full of different things. 0:15:59.730 --> 0:16:03.870 And these various ETFs exist that will intentionally invest in 0:16:03.870 --> 0:16:07.280 different shares and different sort of things on the market. 0:16:07.290 --> 0:16:12.540 So very popular. There's ETFs for Australian shares, there's ETFs 0:16:12.540 --> 0:16:17.180 for international shares. There's specifically ETFs for like American tech stocks. 0:16:17.190 --> 0:16:20.250 They've been very popular. There's a lot of ethical ETFs 0:16:20.250 --> 0:16:23.040 which only invest in companies that fit into certain parameters 0:16:23.070 --> 0:16:30.000 or environment, social and governance sort of aspects. And these 0:16:30.390 --> 0:16:33.540 like shares, like like individual shares, these can be bought 0:16:33.540 --> 0:16:37.320 and sold on the share market. So hence why they 0:16:37.320 --> 0:16:42.570 are called Exchange-traded. And they're great because you get immediate diversification. 0:16:42.570 --> 0:16:45.120 So like and you can also then tailor them to 0:16:45.120 --> 0:16:49.650 exactly what you want. Again, if you're super into sustainability 0:16:49.650 --> 0:16:51.479 and all that sort of stuff, you can buy some ethical, 0:16:51.480 --> 0:16:54.780 ethical ETFs or if you really want exposure to, you know, 0:16:55.890 --> 0:16:59.190 water rights in Texas, I'm sure there's an ETF there 0:16:59.190 --> 0:17:02.040 for that. So, you know, there's there's hundreds of thousands 0:17:02.160 --> 0:17:04.620 of different of ETFs. You can you can buy and 0:17:04.859 --> 0:17:08.400 they're very popular and they've got very low fees, I believe. 0:17:08.730 --> 0:17:10.919 Yeah. I mean, back in the old days when you 0:17:10.920 --> 0:17:13.020 were doing sort of managed funds, you could be paying 0:17:13.050 --> 0:17:17.590 2 to 3% a year of your, you know, view 0:17:17.730 --> 0:17:22.800 of money to the investment manager. And. Whereas some ETFs, 0:17:22.800 --> 0:17:27.630 you can pay as low a management fee of 0.07%, 0:17:27.630 --> 0:17:30.960 so you're still paying a management fee to the ETF creator, the, 0:17:31.350 --> 0:17:34.170 the company that sort of bundles all the assets together 0:17:34.170 --> 0:17:36.600 and manages them and make sure they don't deviate too 0:17:36.600 --> 0:17:40.080 much in value from from the underlying assets. So there's 0:17:40.080 --> 0:17:43.830 still a fee payable, but it can be super, super small, 0:17:44.760 --> 0:17:45.750 which is great. 0:17:45.780 --> 0:17:47.700 Yeah, because they're not they're not doing they're not making 0:17:47.700 --> 0:17:50.760 any hard decisions about their investments. They're just buying these 0:17:50.760 --> 0:17:52.470 exact stocks that they've told you that they're going to 0:17:52.470 --> 0:17:55.770 buy and that's it. Yeah. So it's very simple. But 0:17:56.280 --> 0:17:59.159 some like there's not the ETFs aren't the sort of 0:17:59.160 --> 0:18:03.840 the be all end all for for diversified investment opportunities. 0:18:03.840 --> 0:18:08.040 They do have some cons like some aren't located in Australia. 0:18:08.040 --> 0:18:10.560 So you have to think about the tax implications of 0:18:10.560 --> 0:18:15.810 those and not all of them are indexed. So some 0:18:15.810 --> 0:18:18.179 of them have sort of riskier underlying assets that you 0:18:18.180 --> 0:18:20.460 also have been directly into investing your money in. 0:18:20.700 --> 0:18:25.649 Yeah, the early days ETFs were by and large index ETFs, 0:18:25.650 --> 0:18:27.750 so that you were sort of buying, you know, a 0:18:27.750 --> 0:18:30.750 bundle of shares that tracked the broad value of like 0:18:30.750 --> 0:18:34.830 the ASX 200 or the S&P 500. But it has 0:18:34.830 --> 0:18:37.050 been the case in more recent years we've seen this 0:18:37.050 --> 0:18:40.619 proliferation of more exotic things. You know, as you say, 0:18:40.619 --> 0:18:44.010 you know, investing and lots of weird things. So an ETF, 0:18:44.190 --> 0:18:46.320 you know, it had that reputation of, oh, it's a 0:18:46.320 --> 0:18:50.159 very solid sort of index strategy, passive investing. They're actually 0:18:50.160 --> 0:18:54.060 actively managed, you know, ETFs now where you where the 0:18:54.060 --> 0:18:57.060 underlying assets are going up and down depending on how 0:18:57.060 --> 0:19:00.240 the active investment manager. So you have to be a 0:19:00.240 --> 0:19:02.820 little bit bit careful. And one thing to look out 0:19:02.820 --> 0:19:06.030 for is, you know, the big reputable sort of names 0:19:06.390 --> 0:19:11.520 in ETFs these days are like Vanguard, iShares Betashares. Not 0:19:11.520 --> 0:19:14.969 to endorse any of those companies, but it can. Before 0:19:14.970 --> 0:19:17.160 you do invest in something like an ETF, you do 0:19:17.160 --> 0:19:19.200 need to have a look at, you know, their funds 0:19:19.200 --> 0:19:22.350 under management. Is there a significant amount of other people 0:19:22.350 --> 0:19:24.720 with their money in the fund because you don't want, 0:19:24.720 --> 0:19:26.970 you know, a small upstart that might, you know, close 0:19:26.970 --> 0:19:28.530 in a few years and you have to sell your 0:19:28.530 --> 0:19:31.140 assets when they decide to close the fund, you know, 0:19:31.140 --> 0:19:35.280 so just checking, checking the qualifications or, you know, who's 0:19:35.280 --> 0:19:38.310 the money manager who you're really entrusting to and making 0:19:38.310 --> 0:19:41.160 sure that they've got enough size and history to be 0:19:41.160 --> 0:19:42.390 able to nail it. 0:19:42.680 --> 0:19:42.900 Hmm. 0:19:43.350 --> 0:19:45.900 So that's just sort of a broad wrap up of 0:19:46.090 --> 0:19:49.290 the world of why you buy, invest in shares and 0:19:49.290 --> 0:19:51.659 some various ways to go about it, which I hope 0:19:51.660 --> 0:19:54.209 sort of just brings down to earth some of the 0:19:54.210 --> 0:19:58.800 language involved, particularly the know the acronyms evolved of ETFs. 0:19:58.830 --> 0:20:01.440 There's a lot to wrap your head around and yet 0:20:01.440 --> 0:20:05.400 can't end a podcast about investing without quoting Warren Buffett. 0:20:06.119 --> 0:20:07.590 Of course you have to so. 0:20:07.590 --> 0:20:08.460 It legally be done. 0:20:09.030 --> 0:20:12.419 It's interesting to note that he was sort of asked, Oh, well, he's. 0:20:13.070 --> 0:20:15.889 Had to instruct the trustee of his own estate. You know, 0:20:15.890 --> 0:20:19.370 Warren Buffett is famous for picking stocks and value stocks 0:20:19.369 --> 0:20:22.610 and getting that alpha return. But even he has said that, 0:20:22.609 --> 0:20:24.740 you know, for when he's leaving his money to his wife, 0:20:25.040 --> 0:20:27.110 he just wants to whack it all in an S&P 0:20:27.109 --> 0:20:31.820 500 index fund. And and that is, you know, a good, 0:20:31.820 --> 0:20:34.790 solid way to protect the value of the money and, 0:20:34.790 --> 0:20:38.869 you know, versus any more active strategy. So that's the 0:20:38.869 --> 0:20:42.590 advice of Warren Buffett. Of course, everyone needs to do 0:20:42.619 --> 0:20:46.820 what's right for them. Dump. But ETFs are definitely something 0:20:46.820 --> 0:20:48.859 to keep in mind if you are really new to 0:20:48.859 --> 0:20:50.780 share market investing and you want to just be able 0:20:50.780 --> 0:20:54.619 to get that instant diversification as you dip your toe in. 0:20:55.070 --> 0:20:57.740 Yeah, ETFs are a good way to sort of get 0:20:57.740 --> 0:20:59.780 a bit of a sense of how sort of easy 0:20:59.780 --> 0:21:03.409 diversification works. And, you know, if you're feeling confused and 0:21:03.410 --> 0:21:05.540 you feel like you still don't know everything, don't worry. 0:21:05.900 --> 0:21:08.180 This is the first episode. We've got more coming up. 0:21:08.359 --> 0:21:10.730 We'll talking about all the things you should ask yourself 0:21:10.730 --> 0:21:12.890 before you take the plunge, all the things you should 0:21:12.890 --> 0:21:15.679 know before you actually put that money into the share market. 0:21:16.040 --> 0:21:18.979 And then the one after that will be how to 0:21:18.990 --> 0:21:21.290 actually do it. And we'll. We'll do it. We'll do 0:21:21.290 --> 0:21:22.760 it on the podcast with you. Well, not with you, 0:21:22.760 --> 0:21:23.510 but you know, I. 0:21:23.510 --> 0:21:24.950 Won't be on the toilet, I promise. 0:21:25.369 --> 0:21:26.060 Yeah. No. 0:21:26.330 --> 0:21:29.390 Absolutely not. And that'll only be about how to find 0:21:29.390 --> 0:21:31.970 a broker to execute a trade, all that sort of stuff. So. 0:21:31.970 --> 0:21:34.000 So we can really fill you in and make you 0:21:34.010 --> 0:21:36.590 that in investing ways. But we've come to the to 0:21:36.619 --> 0:21:40.040 the twilight hours of the podcast. So it's time for 0:21:40.040 --> 0:21:43.369 our listener question, which has come from Arjun this week. 0:21:43.790 --> 0:21:47.570 And he has said that he recently refinanced his home 0:21:47.570 --> 0:21:51.590 onto a 30 year variable rate loan. And from that 0:21:51.590 --> 0:21:55.970 he makes an additional $500 repayment alongside his monthly mortgage repayments. 0:21:56.359 --> 0:21:58.070 And he's been doing that for a couple of years 0:21:58.640 --> 0:22:00.710 and he wants to know if it makes more sense 0:22:00.710 --> 0:22:02.750 to change the terms of his loan so he can 0:22:02.750 --> 0:22:05.750 match what he actually can actually afford to pay each month, 0:22:06.080 --> 0:22:09.560 or if he should just keep making his extra repayments. 0:22:10.310 --> 0:22:13.220 And at first glance, I think that he's probably fine 0:22:13.220 --> 0:22:15.500 just making his actually payments. I think that's that's a 0:22:15.500 --> 0:22:17.810 good move. The wisdom imparted to me when I got 0:22:17.810 --> 0:22:20.000 my home loan is that you set it at 30 0:22:20.000 --> 0:22:21.500 years and you don't fiddle with it too much and 0:22:21.500 --> 0:22:23.410 just sort of just let it let it roll out. 0:22:23.420 --> 0:22:24.379 But what do you think, Jess? 0:22:24.560 --> 0:22:27.140 Yeah, I mean, some people suggest as a savings strategy, 0:22:27.140 --> 0:22:29.870 you know, to pay your home off sooner when you refinance, 0:22:29.869 --> 0:22:32.210 you should, you know, not just reset to the 30 year, 0:22:32.240 --> 0:22:35.060 you should go to the 27 or 26 or whatever 0:22:35.420 --> 0:22:38.150 you're up to. But I don't think it makes too 0:22:38.150 --> 0:22:41.119 much of a difference. If I just wanted to, you know, 0:22:41.300 --> 0:22:44.150 that would involve refinancing to a different loan term, which 0:22:44.150 --> 0:22:47.390 could be quite complicated. You can just as is doing, 0:22:47.690 --> 0:22:49.730 pay it off quicker and then when you pay it back, 0:22:49.730 --> 0:22:52.399 it's done. The the 30 year term just means that 0:22:52.400 --> 0:22:56.600 he'll be have a lower minimum repayment that is required. 0:22:56.869 --> 0:23:00.890 But he's already making excess repayments, in which case congratulations. 0:23:00.890 --> 0:23:03.770 And I would just keep going with that strategy. 0:23:04.430 --> 0:23:06.490 Yeah, absolutely. And then you've got a bit of, you know, 0:23:06.560 --> 0:23:09.109 money for those sort of rainy days. And, you know, 0:23:09.109 --> 0:23:12.439 especially if interest rates increase, that sort of $500 is 0:23:12.440 --> 0:23:15.140 a good little buffer for for any sort of things 0:23:15.140 --> 0:23:18.200 that may happen. And just to bring us home just once, 0:23:18.200 --> 0:23:19.100 the money tip of the week. 0:23:19.250 --> 0:23:23.180 Yes. So power bills. Ouch. Bottom line there. Now, both 0:23:23.810 --> 0:23:28.040 wanted to just remind everyone of my most favorite websites 0:23:28.040 --> 0:23:31.070 in the world. Check my browser history. It's true. W 0:23:31.070 --> 0:23:34.669 w w dot energy made easy dot gov dot aew. 0:23:34.940 --> 0:23:38.270 Being the government making your life easier for everyone except 0:23:38.270 --> 0:23:41.540 for Victoria because it's a separate site. Energy made easy 0:23:41.540 --> 0:23:44.060 dot gov today you go in there, whack a few 0:23:44.060 --> 0:23:46.370 details about your power bill and it spits you out 0:23:46.369 --> 0:23:49.340 a list of the cheapest provider. It changes a bit 0:23:49.340 --> 0:23:51.650 and we're seeing a lot of companies coming in and 0:23:51.650 --> 0:23:53.180 out of the market. So you have to be on 0:23:53.180 --> 0:23:54.530 top of this and you have to be on top 0:23:54.530 --> 0:23:57.920 of your energy provider because we've seen some ridiculously high 0:23:57.920 --> 0:23:59.960 price hikes and you don't want to be caught on 0:23:59.960 --> 0:24:02.960 some of those ridiculously high plans. So check that out today. 0:24:02.990 --> 0:24:05.449 For Victorians, there has never been a better time to 0:24:05.450 --> 0:24:10.750 be a Victorian go to compare dot energy dot Victoria 0:24:10.760 --> 0:24:12.440 because you get all the same benefits. You got a 0:24:12.440 --> 0:24:15.350 government website and the Victorian Government is paying you a 0:24:15.350 --> 0:24:19.670 $250 energy bonus just for going to the site and 0:24:19.670 --> 0:24:22.520 lodging an application for for the bonus. So you just 0:24:22.520 --> 0:24:25.550 get 250 bucks, you know, that's been open since one July, 0:24:25.550 --> 0:24:27.649 you've got until June 30 next year to do it, 0:24:27.650 --> 0:24:29.750 but get onto it today. Dom, have you done it? 0:24:30.340 --> 0:24:31.730 Oh, I've done it. I did it as soon as 0:24:31.730 --> 0:24:34.280 it opened. And I tell you what, there's I don't 0:24:34.280 --> 0:24:36.980 bring up the Sydney-melbourne rivalry too much. I try to 0:24:36.980 --> 0:24:40.190 keep things civil on the podcast, but I don't see 0:24:40.190 --> 0:24:43.070 New South Wales getting any any free 250 bucks from 0:24:43.070 --> 0:24:44.720 the government just for go in and check out our 0:24:44.720 --> 0:24:46.730 energy bills. So I'm just going to I'm going to 0:24:46.760 --> 0:24:48.800 put that there as a look a little sort of 0:24:48.800 --> 0:24:51.280 a marker as to why Melbourne may be the superior city. 0:24:51.290 --> 0:24:52.790 I feel like you're coming off a period in. 0:24:52.790 --> 0:24:55.040 Which there was never a worst time to be a Victorian. 0:24:55.040 --> 0:24:55.300 Given. 0:24:55.460 --> 0:24:57.710 You know, we won't talk about that. We want to mention. 0:24:58.220 --> 0:25:02.240 The relevant for if you can't remember. Okay, so we're 0:25:02.240 --> 0:25:04.490 talking about a veil argument, I think. 0:25:04.550 --> 0:25:07.609 But thanks to everyone for tuning in this week. Again, 0:25:07.609 --> 0:25:09.680 join us next week. We will be continuing this theme 0:25:09.680 --> 0:25:11.600 of share market investing and we'll be talking about everything 0:25:11.600 --> 0:25:13.649 you need to know and think about before. You actually 0:25:13.650 --> 0:25:16.280 do buy a share. So come back, Gina. Next week. 0:25:16.290 --> 0:25:16.980 We'll still be here. 0:25:17.130 --> 0:25:17.940 See you next week. 0:25:30.380 --> 0:25:32.480 Hello and welcome to It All ends up the podcast 0:25:32.480 --> 0:25:34.340 where we chat about money, how to get it, how 0:25:34.340 --> 0:25:36.530 to spend it and how to invest it. I'm money 0:25:36.530 --> 0:25:37.370 editor Dom Powell. 0:25:37.460 --> 0:25:40.580 And I'm senior economics writer Jess Irvine. And today we're 0:25:40.580 --> 0:25:44.120 continuing with the second episode of our special three part 0:25:44.119 --> 0:25:47.629 series on share market Investing for Beginners. So if you 0:25:47.630 --> 0:25:50.090 haven't already, we do suggest going back and listening to 0:25:50.090 --> 0:25:53.330 the episode before this, which will be labeled episode four 0:25:53.330 --> 0:25:56.120 in your podcast player and get up to speed with 0:25:56.119 --> 0:25:59.240 some of the basics of what buying shares really is 0:25:59.450 --> 0:26:01.460 and different ways to go about it to get yourself 0:26:01.460 --> 0:26:03.230 a diversified portfolio. 0:26:03.420 --> 0:26:05.600 Yeah, the Images episode is to give you a checklist 0:26:05.600 --> 0:26:08.030 of things to consider before jumping on the share market 0:26:08.030 --> 0:26:11.500 bandwagon and investing your hard earned money in shares directly. 0:26:11.510 --> 0:26:14.450 It's not an exhaustive list, but there certainly are some 0:26:14.450 --> 0:26:16.639 good questions in there to hopefully get you thinking like 0:26:16.640 --> 0:26:17.750 a long term investor. 0:26:18.050 --> 0:26:20.270 Yeah, and we want to make it really clear that 0:26:20.270 --> 0:26:23.270 the information we're about to discuss is general in nature, 0:26:23.480 --> 0:26:26.420 and it doesn't take into account your personal financial goals 0:26:26.420 --> 0:26:29.090 and objectives. And you should always do your own research 0:26:29.270 --> 0:26:33.320 and seek some professional advice before making any major financial decisions. 0:26:33.710 --> 0:26:36.530 So in our third episode in this series were actually 0:26:36.530 --> 0:26:39.260 both of us going to purchase some shares and you'll 0:26:39.260 --> 0:26:41.390 actually be able to hear on that episode what that 0:26:41.390 --> 0:26:44.630 process involves. But we really wanted to spend some time 0:26:44.630 --> 0:26:47.480 stressing that there are things that you need to ask 0:26:47.480 --> 0:26:50.810 yourself and considerations you need to take into account before 0:26:50.810 --> 0:26:54.680 you even decide that investing directly is the right thing 0:26:54.680 --> 0:26:57.590 for you, because it's definitely not the right thing for everyone. 0:26:57.590 --> 0:26:58.040 Is it dumb? 0:26:58.190 --> 0:27:00.800 No. And I'm pretty excited because like as I mentioned 0:27:01.160 --> 0:27:04.070 in the prior episode, I have actually never properly invested 0:27:04.070 --> 0:27:08.720 in shares. I have been a crypto investor for my sins. 0:27:08.730 --> 0:27:11.119 It feels dirty to say, but I used to invest 0:27:11.119 --> 0:27:14.150 in crypto quite seriously. So you know that I'm familiar 0:27:14.150 --> 0:27:16.700 with the markets in that sense, but I've never actually 0:27:16.700 --> 0:27:20.270 sort of sat down and thought about building a portfolio. 0:27:20.280 --> 0:27:22.670 So I think this is like, this is a great 0:27:22.670 --> 0:27:25.040 opportunity because you get to see me and all my 0:27:25.040 --> 0:27:27.770 incompetence and just can lead me through it with the 0:27:27.800 --> 0:27:30.530 like the grizzled investor she is. So I think the 0:27:30.530 --> 0:27:32.840 first thing that I especially thought about when, when I 0:27:32.840 --> 0:27:36.230 was sort of contemplating this whole process is the sort 0:27:36.230 --> 0:27:37.750 of it's a it seems like a very early, like 0:27:37.760 --> 0:27:40.370 basic and sort of almost silly thing to think about, 0:27:40.369 --> 0:27:44.060 but why do you want to invest Like don't just 0:27:44.060 --> 0:27:46.639 do it because you think that you should do it 0:27:46.640 --> 0:27:48.860 with a goal in mind. And we've sort of mentioned 0:27:48.859 --> 0:27:51.740 this a bit about having sort of money goals and 0:27:52.070 --> 0:27:55.609 sort of not not explicitly long term, but at least, 0:27:55.609 --> 0:27:59.479 you know, future of planning or your investments and all 0:27:59.480 --> 0:28:01.610 that sort of stuff. So there is a little bit 0:28:01.609 --> 0:28:03.590 of a broad sort of question you have to ask 0:28:03.590 --> 0:28:07.159 yourself about why the the inherent why of why you 0:28:07.160 --> 0:28:09.369 want to actually put money into the share market. So, 0:28:09.520 --> 0:28:11.449 you know, having a at least a little rough plan 0:28:11.450 --> 0:28:14.300 is is probably a good thing to to get before 0:28:14.300 --> 0:28:15.290 you actually take the plunge. 0:28:16.040 --> 0:28:18.740 Yeah. My why is that I'm hoping that I can 0:28:18.740 --> 0:28:22.460 amass some assets outside of super which I might be 0:28:22.460 --> 0:28:25.189 able to grow such to be big enough before the 0:28:25.190 --> 0:28:27.230 age of 60 that I could retire a little bit 0:28:27.230 --> 0:28:29.780 early and live off not just, you know, the earnings 0:28:29.780 --> 0:28:31.880 from that, but actually sell down some of the capital. 0:28:31.880 --> 0:28:34.760 So I'm 41, so I've I've actually only got a 0:28:34.760 --> 0:28:37.940 sort of 19 years left in the market there in 50. 0:28:37.960 --> 0:28:40.220 And if I want to actually do the early retirement, 0:28:40.220 --> 0:28:44.420 I'd say so that's my sort of a goal at least. 0:28:44.420 --> 0:28:47.150 What's your thoughts with investing in shares? 0:28:48.260 --> 0:28:50.060 It seems like fun and I haven't done it before. 0:28:50.270 --> 0:28:53.000 But I mean. 0:28:53.090 --> 0:28:56.330 I'm 26, so I'm just like, Yeah, cool. That sounds 0:28:56.330 --> 0:28:57.680 like something to do. So. 0:28:58.370 --> 0:28:59.150 You know, Well, that's good. 0:28:59.150 --> 0:29:00.950 I think we've got some more questions. 0:29:01.340 --> 0:29:04.610 But looking through different ends of the spectrum here. So, 0:29:04.610 --> 0:29:06.950 you know, we could we're really covering all bases. 0:29:07.640 --> 0:29:07.940 Well, I'm. 0:29:07.940 --> 0:29:10.130 Glad we're doing this episode to maybe force you to 0:29:10.130 --> 0:29:11.990 think through some more elements of. 0:29:11.990 --> 0:29:12.590 Your strategy. 0:29:12.590 --> 0:29:13.460 And then possibly give. 0:29:13.460 --> 0:29:13.860 Us that. 0:29:14.510 --> 0:29:18.140 Number two question to ask yourself is this is just 0:29:18.140 --> 0:29:20.570 sort of a knock out one before you put money 0:29:20.810 --> 0:29:24.080 buying directly in shares. Do you have any high interest debts, 0:29:24.080 --> 0:29:27.350 like high interest credit cards or personal loans? So do 0:29:27.350 --> 0:29:28.520 you have either of those things? 0:29:29.930 --> 0:29:31.010 I mean, does a mortgage account. 0:29:31.220 --> 0:29:34.520 A mortgage does not count in my mind, but it's 0:29:34.520 --> 0:29:37.580 really like a credit card. You're paying an average interest 0:29:37.580 --> 0:29:40.610 rate of about 20% or something. You're going to be 0:29:40.610 --> 0:29:42.800 hard pressed to find, you know, a share that you 0:29:42.800 --> 0:29:46.250 can buy that's going to guarantee you 20% return, which 0:29:46.250 --> 0:29:48.200 is what you will get if you park your dollar 0:29:48.200 --> 0:29:51.110 instead in paying off that credit card balance. So that's 0:29:51.110 --> 0:29:53.930 really the one that I want people to think about 0:29:53.930 --> 0:29:57.590 is the credit cards and Hick's I mean is another issue. 0:29:57.620 --> 0:30:00.320 People have different opinions on that, but again, that it's 0:30:00.320 --> 0:30:03.140 a relatively low interest rate that you're talking about compared 0:30:03.140 --> 0:30:06.440 to those really punitive 10% plus interest rates that I 0:30:06.440 --> 0:30:09.410 really would want anyone to clear before they thought about 0:30:09.410 --> 0:30:10.280 purchasing shares. 0:30:10.850 --> 0:30:13.280 All right. Well, that's great because I don't have any headaches. 0:30:13.280 --> 0:30:16.700 I've only got a mortgage. So tick. Check this. Second question. 0:30:17.570 --> 0:30:21.140 Number three is thinking about the amount of cash that 0:30:21.140 --> 0:30:24.830 you've got to spend on things that, like might be unexpected. 0:30:24.830 --> 0:30:28.630 So imagine. Sees upcoming bills like all of these things 0:30:28.630 --> 0:30:32.050 have to take priority before investing in things like shares because, 0:30:32.080 --> 0:30:34.600 you know, obviously you need to be able to pay 0:30:34.600 --> 0:30:37.660 rent or pay your water bill or eat or, you know, 0:30:38.680 --> 0:30:40.810 pay for an unexpected hospital visit or something like that. 0:30:40.810 --> 0:30:43.870 So that another sort of almost obvious sort of thing. 0:30:43.870 --> 0:30:46.180 But it really must take precedence over any of this 0:30:46.180 --> 0:30:47.020 sort of stuff. Yeah. 0:30:47.020 --> 0:30:49.810 And I just caution people to think through the myriad 0:30:49.810 --> 0:30:52.990 of things like needing new tires for your car or, 0:30:52.990 --> 0:30:55.240 you know, these sort of little, you know, this sort 0:30:55.240 --> 0:30:57.760 of unexpected but expected things. So you don't want to 0:30:57.760 --> 0:31:00.100 have put your money into your shares and then you 0:31:00.100 --> 0:31:02.200 have to pull it out again because you've got to 0:31:02.200 --> 0:31:04.120 buy a new tyres like you should not be running 0:31:04.120 --> 0:31:07.240 your self that close to the wind. People talk about 0:31:07.240 --> 0:31:09.880 having an emergency fund of maybe 3 to 6 months 0:31:09.880 --> 0:31:12.640 of living expenses so that if you do have, you know, 0:31:12.640 --> 0:31:14.770 one of those larger events like you lose your job, 0:31:14.980 --> 0:31:17.350 can you feed yourself for long enough because you don't 0:31:17.350 --> 0:31:19.360 want to lose your job At the same time the 0:31:19.360 --> 0:31:22.030 share market has crashed and then you're sort of selling 0:31:22.030 --> 0:31:23.830 out your shares at a loss. You know that a 0:31:23.830 --> 0:31:26.740 really bad situation to be in. So do you have 0:31:26.740 --> 0:31:28.120 an emergency fund? 0:31:28.480 --> 0:31:28.930 I do. 0:31:29.170 --> 0:31:29.590 You do? 0:31:30.100 --> 0:31:30.729 There we go. 0:31:30.790 --> 0:31:34.150 Excellent. And I guess, you know, it's important, whatever it 0:31:34.150 --> 0:31:37.780 is that lets you sleep at night. So I have 0:31:37.780 --> 0:31:42.340 about six months of basic living expenses in there, which 0:31:42.340 --> 0:31:45.880 is it's about $36,000 in cash that I have sitting there. Yeah. 0:31:45.950 --> 0:31:47.380 And I don't have anything new. 0:31:47.500 --> 0:31:47.900 Yeah. 0:31:47.920 --> 0:31:50.410 So, I mean, I like to run it pretty conservative, 0:31:50.590 --> 0:31:53.350 you know? And, you know, there's no back up for me. Really. 0:31:53.350 --> 0:31:56.830 I need to have that money in place so I 0:31:56.830 --> 0:31:59.860 don't invest anything that eats into that for me. 0:32:00.640 --> 0:32:04.420 I have a few thousand dollars. So again, different different 0:32:04.420 --> 0:32:04.750 ends of the. 0:32:04.750 --> 0:32:05.450 Spectrum, I guess. 0:32:05.470 --> 0:32:07.660 I mean, you don't have any dependents. I've got a son. 0:32:07.660 --> 0:32:10.540 So maybe there's a few more sort of things that 0:32:10.540 --> 0:32:11.990 I have to to consider. 0:32:12.040 --> 0:32:16.600 Yeah, I think. I think so. Now, number four is 0:32:16.720 --> 0:32:20.800 Jess's favourite topic, which is putting extra money into your super. So, Jess, 0:32:21.010 --> 0:32:23.320 why would someone want to do that instead of possibly 0:32:23.320 --> 0:32:23.800 buying it? 0:32:23.830 --> 0:32:27.520 Because you're going to be old one day. We will 0:32:27.520 --> 0:32:29.950 all be over. We will not all be over 60, 0:32:29.950 --> 0:32:32.680 but we hope to be. And the government has a 0:32:32.680 --> 0:32:36.460 system in place where you pay ultra low tax on 0:32:36.460 --> 0:32:38.320 putting your money into super. You're only going to pay 0:32:38.320 --> 0:32:42.040 $0.15 on the dollar compared to your marginal income tax rate, 0:32:42.040 --> 0:32:44.630 which might be as high as $0.47 in the dollar 0:32:44.630 --> 0:32:47.219 if you're on the higher tax thresholds. And you know, 0:32:47.260 --> 0:32:49.300 so there is a great way the best one of 0:32:49.300 --> 0:32:51.820 the best ways to make money is to avoid paying tax. 0:32:52.120 --> 0:32:55.090 And if you are happy to park your money away 0:32:55.090 --> 0:32:58.180 for that sort of longer term horizon, you're going to 0:32:58.180 --> 0:33:00.070 have a bigger cost base. You know, you're going to 0:33:00.070 --> 0:33:02.140 have more money up front because you pay less tax 0:33:02.140 --> 0:33:04.590 on it to invest, and that will grow over time. 0:33:04.600 --> 0:33:07.810 So people forget that we are all shareholders basically through 0:33:07.810 --> 0:33:12.190 our superannuation accounts. And you can, as an alternative to 0:33:12.190 --> 0:33:15.850 parking money in a brokerage and buying, you know, shares directly, 0:33:15.880 --> 0:33:18.700 you can just be paying money into your super account. 0:33:19.000 --> 0:33:22.240 And for people to know that you can contribute up 0:33:22.240 --> 0:33:27.430 to $27,500 each year into your super and get all 0:33:27.430 --> 0:33:31.330 those great low tax rates that includes your employer's contributions. 0:33:31.720 --> 0:33:34.180 But you know that that is some headroom to play in. 0:33:34.360 --> 0:33:36.070 It can be a good tax dodge if you don't 0:33:36.070 --> 0:33:38.290 want the money back. And also just to flag for 0:33:38.290 --> 0:33:41.950 people that you can also use previous year's unused caps 0:33:41.950 --> 0:33:45.400 so that you might have some extra headway there for 0:33:45.400 --> 0:33:47.620 previous years that can be rolled over. And that's new. 0:33:47.620 --> 0:33:50.860 And not everyone knows that. But yes, super. I mean, 0:33:50.860 --> 0:33:53.170 it is it is a way of buying shares. You 0:33:53.170 --> 0:33:54.940 just can't and you lock the way, the money, you 0:33:54.940 --> 0:33:56.440 can't access it until you're old. 0:33:56.830 --> 0:33:59.080 I feel like we need a podcast episode where justice 0:33:59.080 --> 0:34:00.970 talks about how great it is to just put extra 0:34:00.970 --> 0:34:02.770 money into super. And you just you just told the 0:34:02.770 --> 0:34:04.030 whole time and I'm just like. 0:34:04.450 --> 0:34:06.640 You do it. Do it. But having said that, you know, 0:34:06.640 --> 0:34:09.790 it's your money. And people, particularly at the younger end 0:34:09.790 --> 0:34:11.830 of the spectrum and if you want to retire early, 0:34:12.010 --> 0:34:14.530 you know, you're entitled to hold some money outside of super. 0:34:14.530 --> 0:34:17.140 The tax breaks won't be as great. But yeah, you 0:34:17.140 --> 0:34:19.810 might just prefer to live your life, you know, having 0:34:19.810 --> 0:34:21.760 some of that money before you are 60. So that's, 0:34:22.180 --> 0:34:23.860 you know, something to consider if you if you are 0:34:23.860 --> 0:34:26.200 going down the path of direct share ownership, which, you know, 0:34:26.200 --> 0:34:30.040 we're both doing so. Hmm. Also Poké Nola's DOS, which 0:34:30.040 --> 0:34:33.609 is my favorite financial. Why not both? You can do 0:34:33.610 --> 0:34:36.190 a bit of both, you know, put half in half 0:34:36.190 --> 0:34:37.930 somewhere else. You know, it doesn't have to all go 0:34:37.930 --> 0:34:41.950 in the share market. So speaking of getting old, question 0:34:41.950 --> 0:34:45.970 number five to ask yourself is what is your investment 0:34:45.969 --> 0:34:49.810 time horizon? So, you know, you've got a bit longer 0:34:49.810 --> 0:34:50.410 on the clock. 0:34:50.410 --> 0:34:54.730 Dom That's more than just a little bit. 0:34:55.630 --> 0:34:58.390 But people, you know, you know, how long should you 0:34:58.390 --> 0:35:01.570 be thinking? Do you think a minimum that you'd want 0:35:01.570 --> 0:35:04.180 to be parking your money away in the share market 0:35:04.180 --> 0:35:05.470 before you'd want to get it back to your. 0:35:06.050 --> 0:35:09.490 I would say five years? Like that's probably when I'm 0:35:09.489 --> 0:35:11.560 thinking about investing shares. I'm thinking, Well, I'm just going 0:35:11.560 --> 0:35:13.570 to put it here and like leave it for five 0:35:13.570 --> 0:35:18.250 years and see what happens. Right? Like again, for my sins, 0:35:18.250 --> 0:35:20.200 I was a crypto investor and that is such a 0:35:20.200 --> 0:35:22.839 different mindset. You would buy something one day and then 0:35:22.840 --> 0:35:25.360 the next day you probably sell it because over that. 0:35:25.420 --> 0:35:28.000 Course of time, it would have doubled in value. So 0:35:28.000 --> 0:35:31.350 like me getting into this, into the traditional traditional share 0:35:31.450 --> 0:35:34.509 share market is like a complete change in sort of 0:35:34.510 --> 0:35:36.940 perspective for me because like it's thinking about, well, I'm 0:35:36.940 --> 0:35:40.140 not going to touch this for like five, maybe ten years. 0:35:40.150 --> 0:35:44.230 So I think a really longer term sort of investment 0:35:44.230 --> 0:35:47.410 time horizon is really needed for this because, you know, 0:35:47.469 --> 0:35:50.080 share markets can underperform for quite a long time. And 0:35:50.080 --> 0:35:53.319 look at the ASX at the moment. We've had 12 months, 0:35:53.320 --> 0:35:56.020 is it nearly 12 months of of decline? So, you know, 0:35:56.020 --> 0:35:57.850 that's and that's just a little taste of it really. 0:35:58.120 --> 0:36:00.640 Yeah. And there can be periods for as long as 0:36:00.640 --> 0:36:03.880 a decade where, you know, you're getting below average returns. 0:36:03.880 --> 0:36:06.700 And I, I'm a worrier. So I listen to a 0:36:06.700 --> 0:36:10.540 lot of negative naysayers and there's any number of people 0:36:10.540 --> 0:36:12.670 who will tell you that we've now come off a 0:36:12.670 --> 0:36:16.330 period where shares have been historically highly valued and we're 0:36:16.330 --> 0:36:19.570 in a super bubble which could unwind for years to come. 0:36:19.900 --> 0:36:23.830 So I like to be conservative and think I'm kissing 0:36:23.830 --> 0:36:25.870 goodbye to my money for at least ten years, because 0:36:25.870 --> 0:36:28.750 I think that's but in my mind, I'm comfortable with 0:36:28.960 --> 0:36:32.169 believing that, you know, over a ten year horizon should 0:36:32.170 --> 0:36:35.190 generate a positive return. But I want to know that 0:36:35.200 --> 0:36:37.180 I've got a lot of leeway to play with. If 0:36:37.180 --> 0:36:39.339 we are sort of in a situation where it's going 0:36:39.340 --> 0:36:41.110 to take longer for the share market to recover. 0:36:42.780 --> 0:36:44.520 Number six on the list of things to think about 0:36:44.520 --> 0:36:49.890 is plans for your home ownership, because securing getting yourself 0:36:49.890 --> 0:36:51.870 a place to live in without having to pay rent 0:36:51.870 --> 0:36:54.300 is one of the best ways you can sort of 0:36:54.300 --> 0:36:57.980 minimize your costs and set yourself up for the future. 0:36:57.989 --> 0:37:01.350 So I think if you're sitting on, you know, let's 0:37:01.350 --> 0:37:05.370 say a home deposit ish size of amount of money, 0:37:05.370 --> 0:37:08.130 it's probably better to think about that rather than putting 0:37:08.130 --> 0:37:11.370 that money into the share market. But, you know, that 0:37:11.460 --> 0:37:14.160 obviously depends on your circumstances. Maybe you really think you're 0:37:14.160 --> 0:37:15.570 not going to buy a home for the next five 0:37:15.570 --> 0:37:17.790 years and maybe putting money into shares isn't such a 0:37:17.790 --> 0:37:20.700 bad option. But of course it varies on where you 0:37:20.700 --> 0:37:21.360 are in your life. 0:37:21.450 --> 0:37:23.190 Yeah, there's a bit of a debate about should you 0:37:23.190 --> 0:37:27.330 invest your your home deposit in shares if you're maybe 0:37:27.330 --> 0:37:29.969 not looking to buy for the 5 to 10 year horizon. 0:37:29.969 --> 0:37:32.790 But if you're looking to buy in the next sort 0:37:32.790 --> 0:37:36.060 of five years, I really question whether that's where you 0:37:36.060 --> 0:37:37.739 should have your money and if you should have your 0:37:37.739 --> 0:37:42.620 money in more conservative cash options that you can, you know, act. 0:37:42.630 --> 0:37:44.700 If you see something, you can act on the property 0:37:44.700 --> 0:37:47.759 market as needs be. And one thing to flag for 0:37:47.760 --> 0:37:49.020 people is, again, super. 0:37:50.580 --> 0:37:52.680 No, just if you want to leave it alone, if 0:37:52.680 --> 0:37:53.190 you want a little. 0:37:53.190 --> 0:37:55.799 Bit of both, you want to own a home, you 0:37:55.800 --> 0:37:58.739 can look at the government's first home super saver scheme 0:37:58.739 --> 0:38:00.810 where you can park, you can make sort of voluntary 0:38:00.810 --> 0:38:04.080 contributions into the super account, get the tax breaks and 0:38:04.080 --> 0:38:07.500 then put out when it comes time to purchase your property. 0:38:07.650 --> 0:38:10.109 And in that way you are getting yourself a little 0:38:10.110 --> 0:38:12.630 bit of access to share market returns because the super 0:38:12.630 --> 0:38:16.620 is ultimately invested in some proportion in shares. So that's 0:38:16.620 --> 0:38:19.500 worth thinking. But yes, I also agree that, you know, 0:38:19.680 --> 0:38:23.610 people get really mean. Younger people are understandably so frustrated 0:38:23.610 --> 0:38:28.140 with the housing market and so worried or, you know, 0:38:28.200 --> 0:38:30.149 just throwing up your hands and saying, I will never 0:38:30.150 --> 0:38:32.400 be able to afford a property, I'll just put my 0:38:32.400 --> 0:38:35.700 money in shares. I can understand that feeling, but really 0:38:35.700 --> 0:38:39.630 have a hard think about saving for for that first 0:38:39.630 --> 0:38:43.469 home deposit, making some sacrifices. Go back and listen to 0:38:43.469 --> 0:38:47.370 our episode, number one, because as a way of securing 0:38:47.370 --> 0:38:51.030 your financial future, it's it's really something. Don't just dismiss it. 0:38:51.030 --> 0:38:53.850 See what compromises you could make to to get yourself 0:38:53.850 --> 0:38:56.219 that debt shelter that you're going to need when you're old. 0:38:56.820 --> 0:38:57.450 Absolutely. 0:38:58.020 --> 0:39:01.320 So question number seven is to think whether you have 0:39:01.320 --> 0:39:04.529 any other short to medium term savings goals. So maybe 0:39:04.530 --> 0:39:07.169 it's not your first home deposit, but you might have 0:39:07.410 --> 0:39:09.390 other things you kind of want to do in the 0:39:09.390 --> 0:39:11.759 next couple of years, which again, would fall short of 0:39:11.760 --> 0:39:15.209 that sort of 5 to 10 year investment horizon. Are 0:39:15.210 --> 0:39:17.790 you going to need to replace your car? Are you 0:39:17.790 --> 0:39:21.420 going to get married soon? Is there a big overseas 0:39:21.420 --> 0:39:24.960 trip you want to do? Is there maybe some home renovations? 0:39:24.960 --> 0:39:28.529 So thinking about your sort of short to medium term consumption, 0:39:28.770 --> 0:39:31.680 things that you might want to do just thinking through 0:39:31.680 --> 0:39:33.660 that so that you don't go, Oh, well, one day 0:39:33.660 --> 0:39:36.180 I will sell out the shares a little bit earlier 0:39:36.290 --> 0:39:38.910 or at a time. You know, it's about planning ahead 0:39:38.910 --> 0:39:41.580 and thinking it's it's okay to spend some money now 0:39:41.820 --> 0:39:44.310 and you don't want to be locking away the money 0:39:44.310 --> 0:39:48.270 for the short term in having bought your shares again 0:39:48.270 --> 0:39:51.359 and selling out if it's a bad time. So just thinking, 0:39:51.360 --> 0:39:53.920 you know, what are some other goals aside from home 0:39:53.969 --> 0:39:56.040 ownership that you might want to just put the cash, 0:39:56.250 --> 0:39:59.100 you know, and savings accounts are coming back up? I 0:39:59.100 --> 0:40:03.750 did notice there's like a Bank of Queensland at Cole, 0:40:03.750 --> 0:40:07.680 you know, online saving. It's now paying 4% if you 0:40:07.680 --> 0:40:11.370 are aged between 15 and 34 years old. So you 0:40:11.370 --> 0:40:14.520 know there is now money to be made from putting 0:40:14.520 --> 0:40:16.710 your money in the bank, which wasn't the case for 0:40:16.710 --> 0:40:19.980 a couple of years. But that is something to consider. 0:40:20.760 --> 0:40:23.760 Well, look, I'm not planning on getting married anytime soon. 0:40:24.060 --> 0:40:24.840 You never know. 0:40:25.530 --> 0:40:28.620 Whenever I'll, I'll look. It'll be it would surprise us both, Jess, 0:40:28.620 --> 0:40:30.270 if I got married in the next 12 months. Right. 0:40:31.440 --> 0:40:34.710 But don't need a new car. I do have a 0:40:34.710 --> 0:40:36.990 couple of overseas trips planned, so I think this is 0:40:36.989 --> 0:40:38.609 a tick as well. I think I'm alright. I don't 0:40:38.610 --> 0:40:42.000 have anything massive to do to save up for the 0:40:42.330 --> 0:40:44.010 the eighth sort of thing is, is another sort of 0:40:44.700 --> 0:40:46.710 quite a broad sort of concept that you do not 0:40:46.710 --> 0:40:48.660 really need to think about when investing in shares, which 0:40:48.660 --> 0:40:51.660 is your appetite for risk, because as we've sort of 0:40:51.870 --> 0:40:54.210 said a couple of times now, the share markets do 0:40:54.210 --> 0:40:59.070 not always go up, and especially individual shares. If you 0:40:59.070 --> 0:41:01.620 go down the path of buying individual shares in individual 0:41:01.620 --> 0:41:05.430 companies don't always go up either. You can see 20 0:41:05.430 --> 0:41:09.419 to 40% drops in value. And if that happens, you've 0:41:09.420 --> 0:41:11.700 got to think about how you're going to react to that, 0:41:11.700 --> 0:41:15.450 because if you're going to go, Oh, no, time to sell, 0:41:15.450 --> 0:41:19.200 you know, it's dropped 40%, it'll never recover sort of thing. 0:41:19.469 --> 0:41:23.489 Maybe investing in shares or maybe investing in specific companies 0:41:23.489 --> 0:41:25.380 is not really for you. Maybe you should think about 0:41:25.380 --> 0:41:28.860 some other sort of investment options. So and also think 0:41:28.860 --> 0:41:32.460 about how compulsively you're going to check the balance of 0:41:32.460 --> 0:41:36.180 your portfolio. It's like it can get very addictive to 0:41:36.180 --> 0:41:38.339 open up your share trading app and go, you know, 0:41:38.340 --> 0:41:41.150 shares are down 3% today. Oh, it's up 5% today. Like, 0:41:41.160 --> 0:41:44.310 you know, that's. Almost useless unless you want to day trade, 0:41:44.610 --> 0:41:45.989 which you probably shouldn't do. 0:41:46.050 --> 0:41:48.930 Yeah, there's. I mean, there's two costs to consider. There's 0:41:48.930 --> 0:41:51.390 the cost of actually, you might make a panicky decision 0:41:51.390 --> 0:41:53.280 and lose some money because you've sold out at at 0:41:53.290 --> 0:41:57.420 inopportune time. But there's also just like a mental cost of, 0:41:57.420 --> 0:42:00.089 you know, I think it's only human to sort of 0:42:00.090 --> 0:42:04.350 look at those balances, see the red ticks, the red numbers, 0:42:04.350 --> 0:42:06.690 you know, with the negative side. I mean, I have 0:42:06.690 --> 0:42:10.230 experienced this having started investing over the last year. You know, 0:42:10.800 --> 0:42:14.089 prices have come off. I am in the red on 0:42:14.100 --> 0:42:16.680 paper and I am a long term investor and I 0:42:16.680 --> 0:42:17.970 want to hold that for the long term. But I 0:42:17.969 --> 0:42:22.380 still have to admit there's a psychic cost there. You know, 0:42:22.410 --> 0:42:25.230 we're humans. We are loss averse. We fear losses more 0:42:25.230 --> 0:42:28.440 than we value gains. You know, Can you stomach that? 0:42:28.590 --> 0:42:31.169 Is it just going to make your life unpleasant to 0:42:31.170 --> 0:42:34.799 see those red numbers? And that will depend, you know, 0:42:34.800 --> 0:42:36.960 on who you are, what other stresses you've got in 0:42:36.960 --> 0:42:40.410 your life. So number nine is about really what are 0:42:40.410 --> 0:42:43.440 you going to actually invest in? Do you have an 0:42:43.440 --> 0:42:48.330 investment strategy and particularly one that will give you diversification. 0:42:48.330 --> 0:42:52.140 So in the next episode, we are both going to 0:42:52.140 --> 0:42:54.210 be purchasing shares that we've decided. 0:42:54.450 --> 0:42:55.680 So I'm so excited to. 0:42:55.680 --> 0:42:58.290 Look at and we can reveal that they're not going 0:42:58.290 --> 0:43:01.380 to be single stock investments. So both of us, you know, 0:43:01.380 --> 0:43:05.759 we see the value in diversification and instant diversification. You know, 0:43:05.760 --> 0:43:07.950 we've talked a lot in the last episode as well 0:43:07.950 --> 0:43:12.000 about exchange traded funds and in particular ETFs, which track 0:43:12.000 --> 0:43:15.450 a broader index. So like the ASX 200 or the 0:43:15.450 --> 0:43:18.750 S&P 500, you can sort of from day dot be 0:43:18.750 --> 0:43:22.860 purchasing something which gives you access to a range of 0:43:22.860 --> 0:43:26.700 different companies, not just one. And you know that this 0:43:26.700 --> 0:43:31.770 is a classic lesson for investors. Be diversified across asset 0:43:31.770 --> 0:43:37.160 classes and also within shares across geographies and across industries 0:43:37.170 --> 0:43:41.640 so that something we can't give financial advice. But I'm 0:43:41.640 --> 0:43:44.399 more than happy to let people know that diversification is 0:43:44.400 --> 0:43:46.680 a good thing and there are ways to buy shares, 0:43:46.680 --> 0:43:49.320 you know, through those index ETFs, which which do give 0:43:49.320 --> 0:43:52.920 you that instant diversification, which, if you're a beginner investor, 0:43:53.400 --> 0:43:56.100 would probably help smooth your way into the market. 0:43:56.820 --> 0:43:59.250 Absolutely. I think it's I don't think it's particularly controversial 0:43:59.250 --> 0:44:02.160 to say that diversification is good. Like it's just you know, 0:44:02.640 --> 0:44:04.890 it is in many aspects of life, you know, not 0:44:04.890 --> 0:44:07.500 just shares. And the last question to ask yourself is 0:44:07.500 --> 0:44:11.670 how much you'll be investing and how regularly this is 0:44:11.670 --> 0:44:13.320 sort of getting down to the real nuts and bolts 0:44:13.320 --> 0:44:16.410 of it. But like, you've got to think about, you know, 0:44:16.530 --> 0:44:18.840 your total pool of money that you wish, willing to invest. 0:44:19.530 --> 0:44:21.300 How you going to split that up or if you're 0:44:21.300 --> 0:44:23.250 going to split it up amongst different sort of assets 0:44:24.030 --> 0:44:26.279 and think about, you know, if you're going to be 0:44:26.580 --> 0:44:29.430 buying and selling over a period of time like dollar 0:44:29.430 --> 0:44:31.440 cost averaging, which is quite a common strategy when it 0:44:31.440 --> 0:44:34.110 comes to investing in in shares, or if you're just 0:44:34.110 --> 0:44:36.649 going to go all in one day, get it done, 0:44:36.660 --> 0:44:38.610 leave it sort of thing. So these are all sort 0:44:38.610 --> 0:44:39.960 of things you have to sort of ask yourself before 0:44:39.960 --> 0:44:42.410 you actually press the button and buy the shares. And 0:44:42.420 --> 0:44:46.080 especially when it comes to things like fees, certain assets 0:44:46.080 --> 0:44:49.230 and certain investment offerings will have different fees that are 0:44:49.230 --> 0:44:53.040 higher or lower. And that is something really important to 0:44:53.040 --> 0:44:56.339 think about alongside your brokerage fees, which, you know, can 0:44:56.340 --> 0:44:58.739 range from being as low as $3 I think. 0:44:58.739 --> 0:44:59.819 We get to these days just. 0:44:59.820 --> 0:45:01.560 Yes, as a 3.1. Yep. 0:45:01.920 --> 0:45:06.540 Wow. Cheapest chips. So, you know, these are all these 0:45:06.540 --> 0:45:08.640 sort of like really practical things you need to think 0:45:08.640 --> 0:45:12.110 about before you actually purchase a share or multiple. Yeah. 0:45:12.360 --> 0:45:14.819 And we'll get into this more in the next episode. But, 0:45:14.820 --> 0:45:17.340 you know, there traditionally is a sort of a $500 0:45:17.340 --> 0:45:20.790 minimum investment with a lot of brokers. So if you 0:45:20.790 --> 0:45:23.970 haven't got the $500, you're looking at micro investing sites, 0:45:23.969 --> 0:45:26.880 which we will talk about, and they've got ongoing fees 0:45:26.880 --> 0:45:29.880 rather than, you know, upfront fees. So there's a bit 0:45:29.880 --> 0:45:31.680 to think about, which I think we should flesh out 0:45:31.680 --> 0:45:35.339 further in episode number three when we actually get around 0:45:35.340 --> 0:45:39.180 to to making the decisions about how to actually put 0:45:39.180 --> 0:45:39.960 our money in the market. 0:45:40.739 --> 0:45:43.739 Yep. And look, this is not an exhaustive list. You know, 0:45:43.739 --> 0:45:46.259 there's just sort of some prompts to help you think 0:45:46.260 --> 0:45:50.160 about this once once you decide to go down the 0:45:50.160 --> 0:45:53.160 path of buying shares. But yeah, as as just as mentioned, 0:45:53.160 --> 0:45:55.799 we next week, we will be buying shares on the 0:45:55.800 --> 0:45:58.680 podcast live. Not that I think you can really do 0:45:58.680 --> 0:46:01.350 a live podcast, but it will be live to us, 0:46:01.350 --> 0:46:05.340 which is enough. And we'll do talking about the whole thing. 0:46:05.340 --> 0:46:08.820 Like literally what buttons do you press? What is a 0:46:08.820 --> 0:46:11.850 market order versus like a limit order? What brokers should 0:46:11.850 --> 0:46:16.830 you choose? So many questions and we'll answer most of them, probably. 0:46:16.830 --> 0:46:18.600 Some of them, some of them. 0:46:18.600 --> 0:46:19.920 Pertinent good ones. Yeah. 0:46:20.820 --> 0:46:23.660 And speaking of questions, we'll listen to question. 0:46:23.670 --> 0:46:27.120 Excellent. We love listener questions. Please do keep emailing them 0:46:27.120 --> 0:46:30.600 to us at it all adds up at Nine.com.au today. 0:46:31.170 --> 0:46:34.380 And this week's question is from Belinda. She says that 0:46:34.380 --> 0:46:37.200 she and her husband are new to Australia and looking 0:46:37.200 --> 0:46:39.390 for some tips on how to build up a good 0:46:39.480 --> 0:46:43.390 credit score rating. She wants to know what kind of 0:46:43.390 --> 0:46:46.930 purchases would help build a good credit score. And what 0:46:46.930 --> 0:46:49.509 do banks look at when someone wants to buy a 0:46:49.510 --> 0:46:52.540 home in terms of the credit score? So what what 0:46:52.540 --> 0:46:53.109 do you think? 0:46:53.950 --> 0:46:57.310 It's interesting because I was worried about this when I 0:46:57.310 --> 0:46:59.680 before I bought my home, too. And I thought the 0:46:59.680 --> 0:47:01.900 credit scores of these huge deals, you really have to 0:47:01.900 --> 0:47:03.700 worry about them, like, oh, God, like I got no 0:47:03.700 --> 0:47:06.430 credit score and we've borrowed anything. And the bank did 0:47:06.430 --> 0:47:09.960 not ask me once about it. It was never even mentioned. 0:47:09.969 --> 0:47:12.790 And for all my friends who have also bought property, 0:47:12.790 --> 0:47:14.800 it has never been mentioned for them, ever. Like the 0:47:14.800 --> 0:47:17.259 credit score just never comes up. So I think there 0:47:17.260 --> 0:47:19.540 is this perception that credit scores are really big and 0:47:19.540 --> 0:47:21.550 important things, but I think that might have been a 0:47:21.550 --> 0:47:24.460 bit of an American import where it is actually quite 0:47:24.460 --> 0:47:26.410 a big deal over there. And it does change how 0:47:26.410 --> 0:47:28.450 you what and how you can borrow from a bank 0:47:28.450 --> 0:47:32.590 where here it doesn't really matter that much. So. I 0:47:32.590 --> 0:47:34.480 think whilst building a credit score is a good thing 0:47:34.480 --> 0:47:39.040 to do, it's probably not that much of a big deal, 0:47:39.040 --> 0:47:40.930 especially if you're looking to borrow. But Jess, I'm not 0:47:40.930 --> 0:47:42.069 sure if you have any other thoughts on this. 0:47:42.100 --> 0:47:44.560 Yeah, and I mean people sort of think us in 0:47:44.560 --> 0:47:46.780 an American context. Should I go out and get a 0:47:46.780 --> 0:47:48.970 credit card just so that I can where, you know, 0:47:48.969 --> 0:47:51.190 I've got I can demonstrate that I could pay a 0:47:51.190 --> 0:47:53.230 credit card, but actually that can work against you in 0:47:53.230 --> 0:47:56.560 an Australian context, because if you've got a credit card 0:47:56.560 --> 0:48:00.610 with a $10,000 limit on it, say they assume that 0:48:00.610 --> 0:48:02.680 you have that maxed out and you're paying that off. 0:48:02.680 --> 0:48:05.740 So it actually reduces how much you can borrow. So 0:48:05.770 --> 0:48:07.960 that is another little twist. If you're looking at buying 0:48:08.170 --> 0:48:11.050 property in Australia, you know, the credit score, I think 0:48:11.050 --> 0:48:14.029 they do do a credit check on you, but it's 0:48:14.170 --> 0:48:16.150 it's not sort of as important as it is in 0:48:16.150 --> 0:48:17.740 some other jurisdictions. 0:48:18.900 --> 0:48:21.029 And just take us home with your budget tip of 0:48:21.030 --> 0:48:24.060 the week, which I believe this week involves picking up 0:48:24.060 --> 0:48:25.050 trash from the side of the road. 0:48:25.080 --> 0:48:28.920 It does. It's it's the wonderful world of street bounty. 0:48:29.610 --> 0:48:32.190 And I just want everyone to know that I furnished 0:48:32.190 --> 0:48:35.430 most of my house with stuff off the street. And 0:48:35.430 --> 0:48:38.130 I want a Nobel Prize that for everyone. When I 0:48:38.130 --> 0:48:41.489 first bought my my house I was addicted to. I 0:48:41.489 --> 0:48:44.759 would literally look up the website for the local council 0:48:44.760 --> 0:48:49.020 areas covering some of Sydney's most salubrious suburbs. I would 0:48:49.020 --> 0:48:51.990 figure out which local areas were having their sort of 0:48:51.989 --> 0:48:54.210 regular household clean up day. That's when you could put 0:48:54.210 --> 0:48:56.790 all your rubbish out on the streets, you know, furniture. 0:48:57.000 --> 0:48:58.529 And I would get in my car and I would 0:48:58.530 --> 0:49:00.390 go pick up that good stuff and put it in 0:49:00.390 --> 0:49:02.339 my car and put it in my home because rich 0:49:02.340 --> 0:49:04.170 people throw out some good stuff. 0:49:04.640 --> 0:49:05.100 So this is. 0:49:05.100 --> 0:49:07.739 True. So that's just it. I just and I mean, 0:49:07.739 --> 0:49:10.830 if it if it's not off the street Facebook marketplace, 0:49:10.830 --> 0:49:14.430 you can pick up secondhand furniture for free. So that 0:49:14.430 --> 0:49:16.770 that's just my top tip. Get get rubbish off the 0:49:16.770 --> 0:49:18.299 streets and finish your home with. 0:49:18.310 --> 0:49:18.870 Well, look. 0:49:18.870 --> 0:49:20.669 To be fair. One of my favourite things in my home, 0:49:20.670 --> 0:49:22.920 which I get complimented on every time someone comes over, 0:49:22.920 --> 0:49:27.060 is these very two very large giraffe wooden giraffe statues, 0:49:27.060 --> 0:49:31.020 which I found outside my apartment block one day during lockdown. 0:49:31.290 --> 0:49:32.700 And I bought them because I thought they were funny. 0:49:32.700 --> 0:49:33.810 And I just haven't been able to get rid of 0:49:33.810 --> 0:49:36.390 them because I can't bring myself to to get rid 0:49:36.390 --> 0:49:38.069 of them. So stray batty. 0:49:38.100 --> 0:49:42.360 It's also it's recycling. It's saving stuff from landfill. And 0:49:42.360 --> 0:49:45.510 I'll also confess, my couch is from a neighbour who 0:49:45.510 --> 0:49:47.640 was walking it out to the street on hard rubbish 0:49:47.640 --> 0:49:50.640 collection day. And I said, Just put that in my house, please. 0:49:50.820 --> 0:49:54.700 And then I sold my other couch on Facebook. Marketplace. 0:49:54.719 --> 0:49:57.840 Money, money, money. Alright, well everyone, thanks for listening in 0:49:57.840 --> 0:50:00.270 this week and joining us. Tune in this time next 0:50:00.270 --> 0:50:02.850 week for our final episode in Share Market Investing, where 0:50:02.850 --> 0:50:04.950 we will be buying shares on podcast though. 0:50:05.040 --> 0:50:07.020 What fun it is going to be fun. Is it 0:50:07.020 --> 0:50:08.700 a first? I think it will probably be a first 0:50:08.700 --> 0:50:09.480 for podcasting. 0:50:09.570 --> 0:50:10.030 Let's say. 0:50:10.070 --> 0:50:11.939 It is. See you next. 0:50:11.940 --> 0:50:12.900 Week, then. Next week. 0:50:25.830 --> 0:50:28.770 Hello and welcome to It All Adds Up the podcast 0:50:28.770 --> 0:50:31.080 where we chat about money, how to get it, how 0:50:31.080 --> 0:50:33.750 to spend it and how to invest it. I'm senior 0:50:33.750 --> 0:50:35.490 economics writer Jess Irvine. 0:50:35.760 --> 0:50:37.529 And I'm money an added on PAL. And this is 0:50:37.530 --> 0:50:40.230 the grand finale, not the one that was last weekend. 0:50:40.620 --> 0:50:43.860 But of our three part series on investing in shares 0:50:43.860 --> 0:50:46.320 for beginners. And if you haven't before already listening to 0:50:46.320 --> 0:50:48.990 this episode, I would highly recommend going back and listening 0:50:48.989 --> 0:50:51.960 to episodes four and five in your podcast player, where 0:50:51.960 --> 0:50:54.690 we cover sort of the basics of share investing and 0:50:54.690 --> 0:50:57.060 some really important questions. So ask yourself before you actually 0:50:57.300 --> 0:50:58.920 decide to invest in shares. 0:50:59.280 --> 0:51:00.989 Yes, because I think this has got to be fun. 0:51:00.989 --> 0:51:03.540 We're going to buy shares live on air, although we're 0:51:03.540 --> 0:51:05.549 not sure if you can be live on and. 0:51:05.610 --> 0:51:06.780 It's live in spirit. 0:51:08.940 --> 0:51:11.610 But yes, so which is going to be fun. But 0:51:11.610 --> 0:51:14.490 everybody know that we have done our due diligence on 0:51:14.489 --> 0:51:18.090 that and made some really important questions and answered them on, 0:51:18.090 --> 0:51:20.040 you know, whether we should be investing at all. But 0:51:20.040 --> 0:51:23.070 I think there is value for people in just being 0:51:23.070 --> 0:51:26.489 able to hear what it's like or what steps you 0:51:26.489 --> 0:51:29.730 have to actually go through to execute share trade, you know, 0:51:29.730 --> 0:51:31.770 like which I remember when I did it for the 0:51:31.770 --> 0:51:34.709 first time, I was, you know, in conniptions because I'm black. 0:51:34.710 --> 0:51:37.410 Which button do I press? Do I do a limit 0:51:37.410 --> 0:51:39.960 order or a market order? And the amount of time 0:51:39.960 --> 0:51:42.960 I spent sort of in analysis paralysis and trying to choose, 0:51:42.960 --> 0:51:45.540 you know, which is the best broker, etc.. So I'm 0:51:45.540 --> 0:51:48.060 hoping we can talk you through some of that and 0:51:48.060 --> 0:51:50.160 just sort of hold your hand if you have decided 0:51:50.160 --> 0:51:52.290 that it's right for you that you want to buy 0:51:52.290 --> 0:51:54.330 shares directly, you know, you can hear what it's like 0:51:54.330 --> 0:51:54.960 when someone does it. 0:51:55.320 --> 0:51:57.989 And look, we're not going to tell you which says specifically, 0:51:57.989 --> 0:52:01.230 of course, because you should always do your own research 0:52:01.230 --> 0:52:03.180 and we don't want to get arrested by ask. I 0:52:03.180 --> 0:52:05.340 don't want Joe Longo busting in the door behind me 0:52:05.340 --> 0:52:08.850 with a pair of handcuffs. We are not qualified financial advisors. 0:52:08.850 --> 0:52:12.210 We are just financial journalists, which are very different things. 0:52:12.420 --> 0:52:14.190 But we are sort of happy to share that we're 0:52:14.190 --> 0:52:18.250 both buying into exchange traded funds, which sort of investing 0:52:18.420 --> 0:52:21.060 in a bundle of shares. So we're not going to 0:52:21.060 --> 0:52:23.730 give you any hot stock tips. So don't try and 0:52:23.730 --> 0:52:24.690 copycat us, please. 0:52:25.140 --> 0:52:27.660 Yeah, definitely don't copycat us. And this is a really 0:52:27.660 --> 0:52:30.090 good time to stress that the information we're about to 0:52:30.090 --> 0:52:33.240 discuss is general in nature and doesn't take into account 0:52:33.239 --> 0:52:35.700 your personal financial goals and objectives. And you should always 0:52:35.700 --> 0:52:38.759 do your own research and seek professional advice before making 0:52:38.760 --> 0:52:40.770 any major financial decisions. 0:52:41.460 --> 0:52:44.280 Yeah, I just we are both very well educated and experienced. 0:52:44.280 --> 0:52:45.120 Financial journalist. 0:52:45.120 --> 0:52:47.010 Yes, we are. Congratulations to. 0:52:47.010 --> 0:52:48.180 Us. I didn't realize we. 0:52:48.180 --> 0:52:49.709 Were, but apparently we are. Really. 0:52:49.830 --> 0:52:51.290 I wrote it in the script, so it must be. 0:52:51.630 --> 0:52:56.370 It must be true. But even so, we've both sort 0:52:56.370 --> 0:52:58.439 of found the process of buying shares a bit tricky 0:52:58.440 --> 0:53:00.330 to navigate. There is a lot of things to consider. 0:53:00.900 --> 0:53:02.940 Yeah, and we're going to walk through the sort of 0:53:02.940 --> 0:53:07.080 basic steps. We've got about six steps of how you 0:53:07.080 --> 0:53:09.810 actually go move through the process. And I remember when 0:53:09.810 --> 0:53:11.489 I did it for the first time, I actually had 0:53:12.060 --> 0:53:15.630 a morningstar, an analyst who's like way overqualified to be 0:53:15.630 --> 0:53:17.770 doing this, but I was just like texting him or 0:53:17.790 --> 0:53:18.530 on the phone guy. 0:53:18.840 --> 0:53:20.550 I don't know what a market order is. 0:53:20.550 --> 0:53:23.760 And it was very kind to talk me through the step. 0:53:23.760 --> 0:53:27.149 Number one is you have to choose a broker. If 0:53:27.150 --> 0:53:30.510 you want to buy shares, you have to get in 0:53:30.510 --> 0:53:32.790 touch with a broker. And how do you choose one? 0:53:33.330 --> 0:53:34.740 Well, there are so many different ones, and I think 0:53:34.739 --> 0:53:36.029 like a lot of the ones that people will be 0:53:36.030 --> 0:53:39.029 familiar with are things like the ones that provided by 0:53:39.030 --> 0:53:41.280 the big banks. So things like CommSec, which is very 0:53:41.280 --> 0:53:45.150 popular like these, you know, linked to the big four banks, 0:53:45.150 --> 0:53:47.969 they give you a pathway into the share market. Often 0:53:47.969 --> 0:53:50.370 you can use the bank balance, all that sort of stuff. 0:53:50.370 --> 0:53:52.950 But you know, we're in the OR in the 21st century, 0:53:52.980 --> 0:53:54.600 you know, you can do anything on your phone these 0:53:54.600 --> 0:53:57.899 days and there are a myriad of various different online 0:53:57.900 --> 0:54:01.290 share trading apps which allow you to buy and sell shares. 0:54:01.290 --> 0:54:05.250 So they're sort of, I guess, what would you call them, micro. 0:54:05.250 --> 0:54:06.870 Investing sort of sites. 0:54:07.920 --> 0:54:10.590 Well, I consider the micro investing sites are more the 0:54:10.590 --> 0:54:13.020 ones where you're buying in with this sort of $50 0:54:13.020 --> 0:54:16.440 or so. And I think we can namedrop a few, 0:54:16.440 --> 0:54:19.540 but we're not recommending any of them. So like your 0:54:19.550 --> 0:54:23.570 you're micro investing sites of things like Rays, CommSec, Pocket 0:54:23.580 --> 0:54:27.900 Spaceship Voyager shares these acorns. And so they're actually the 0:54:27.900 --> 0:54:30.690 micro investing in my mind is you sort of paying 0:54:30.690 --> 0:54:33.420 that you know the smaller amounts and paying like a 0:54:33.420 --> 0:54:37.650 monthly fee too to be participating on that platform rather 0:54:37.650 --> 0:54:42.300 than paying the brokerage fee all the time. So if 0:54:42.300 --> 0:54:44.820 you've got smaller sums, you may be looking at those 0:54:44.820 --> 0:54:47.130 sorts of sites. If you've got sort of over the 0:54:47.130 --> 0:54:50.730 traditional $500 that you need to purchase, you know, into 0:54:50.730 --> 0:54:53.880 a share for the first time, you're talking about the 0:54:53.880 --> 0:54:57.180 sort of bigger brokers. And if we want to namedrop 0:54:57.180 --> 0:54:59.969 a few of those, You've mentioned CommSec, there's NAB trade, 0:54:59.969 --> 0:55:02.730 you know, the major banks mostly all have a platform 0:55:02.940 --> 0:55:07.950 and you're thinking stake superhero Pearler self Well CMC markets 0:55:07.950 --> 0:55:10.410 think markets eToro. If I say the first off I'm 0:55:10.410 --> 0:55:14.700 not endorsing any of them but definitely you have to 0:55:14.700 --> 0:55:17.520 have a bit of research. And one thing to note 0:55:17.520 --> 0:55:20.100 about those type of brokers is some of them operate 0:55:20.370 --> 0:55:23.430 on a custodial model, which means you're sort of they 0:55:23.430 --> 0:55:27.839 will own the shares for you. You're definitely still the 0:55:27.840 --> 0:55:30.120 beneficial owner of it, but they're sort of pooled. And 0:55:30.120 --> 0:55:32.940 other brokers will be what's called chess sponsored. So you'll 0:55:32.940 --> 0:55:36.180 be issued what's also known as a hidden number from 0:55:36.180 --> 0:55:38.610 the ASX and those shares will be held sort of 0:55:38.610 --> 0:55:42.120 identifiable directly to you. So that's something to have a 0:55:42.120 --> 0:55:44.230 little think about when you're choosing a broker. 0:55:44.250 --> 0:55:46.439 Yeah, and I think it's good to not get too 0:55:46.440 --> 0:55:48.870 bogged down in that sort of stuff. You know, just 0:55:48.870 --> 0:55:51.120 have a Google look at some of the lists of 0:55:51.120 --> 0:55:53.820 the cheapest ones, because obviously that is a factor when 0:55:53.820 --> 0:55:56.370 you're buying shares, you don't want to pay massive amounts 0:55:56.370 --> 0:55:58.830 of money in brokerage fees and other sort of fees. 0:55:58.830 --> 0:56:01.620 So you can get as low as $3 for brokerage 0:56:01.620 --> 0:56:03.690 fees in the market at the moment, which is pretty cheap. 0:56:04.650 --> 0:56:07.799 And some places often do like free brokerage to you 0:56:07.800 --> 0:56:10.460 buying us shares or free brokerage if it's, you know, 0:56:10.680 --> 0:56:12.930 Sunday afternoon or something like that. Like, you know, there's 0:56:12.930 --> 0:56:15.180 different sort of times that they'll give you like deals 0:56:15.180 --> 0:56:16.950 and all that sort of stuff. So these are things 0:56:16.950 --> 0:56:20.190 to keep in mind when you are buying shares. And 0:56:20.190 --> 0:56:24.060 then once you've sort of picked your your broker, your 0:56:24.060 --> 0:56:26.790 second step is to set up an account, which is 0:56:26.790 --> 0:56:28.470 kind of like setting up an account on on any 0:56:28.469 --> 0:56:31.110 sort of online platform, really, except involves a little more paperwork. 0:56:31.320 --> 0:56:31.620 Yeah. 0:56:31.620 --> 0:56:33.420 And in the olden days, you used to have to 0:56:33.420 --> 0:56:35.790 like faxing a copy of your driver's licence and all 0:56:35.790 --> 0:56:38.520 the rest, and that would take days. Now, there are 0:56:38.520 --> 0:56:41.160 some brokers where you can set up pretty much in 0:56:41.160 --> 0:56:43.860 an instant. There are some brokers where it takes maybe 0:56:43.860 --> 0:56:45.930 a day or so because they do want you to 0:56:45.930 --> 0:56:48.410 scan your license and send it in. You know, there 0:56:48.420 --> 0:56:50.370 is a bit of email back and forth to set 0:56:50.370 --> 0:56:52.920 up the account. So yeah, you have to you have 0:56:52.920 --> 0:56:55.049 to set up an account with a broker to be 0:56:55.050 --> 0:56:55.440 able to buy. 0:56:55.440 --> 0:56:56.160 Shares and. 0:56:56.160 --> 0:56:58.170 You'll need a few things on hand, like a tax 0:56:58.170 --> 0:57:00.540 file number and all that sort of stuff like that. 0:57:00.580 --> 0:57:03.100 You will need a little bit of documentation. But you know, 0:57:03.180 --> 0:57:06.090 I think it only took me maybe a day or 0:57:06.120 --> 0:57:08.969 two to set up my account. So really, it's not 0:57:08.969 --> 0:57:10.770 that hard any more. 0:57:10.980 --> 0:57:14.160 Yep. And step number three, once you've got the account 0:57:14.160 --> 0:57:16.050 all set up is you have to put money into 0:57:16.050 --> 0:57:19.560 your account. So you have to transfer money across from 0:57:19.560 --> 0:57:24.090 your savings account to actually be in your share brokerage 0:57:24.090 --> 0:57:27.000 account ready to deploy. I mean, and that's just a 0:57:27.000 --> 0:57:29.280 matter of doing a BPAY. But it can sort of, 0:57:29.280 --> 0:57:31.350 you know, you have to allow time for that money 0:57:31.350 --> 0:57:33.090 to get across. So as you can see, it's not 0:57:33.090 --> 0:57:36.000 as easy as just sort of pressing by, although that 0:57:36.000 --> 0:57:36.750 is the next step. 0:57:36.960 --> 0:57:38.820 That is the next step. But just on that, I 0:57:38.820 --> 0:57:41.760 actually my platform, which I use, allows me to pay 0:57:41.760 --> 0:57:45.900 ID money, which is, you know, sort of very new age. 0:57:45.900 --> 0:57:49.530 But it came across almost instantly like, you know. So 0:57:49.530 --> 0:57:52.470 there are ways that you can get money in very quickly. 0:57:52.470 --> 0:57:54.780 But I don't think I don't think all services offer that. 0:57:54.820 --> 0:57:57.960 Yeah, mine is like an Osco transfer, which is pretty, 0:57:57.960 --> 0:58:01.080 pretty quick. So but I have used other brokerage accounts 0:58:01.080 --> 0:58:03.030 where it did take a little bit longer than that. 0:58:03.420 --> 0:58:06.689 And then step number four is opening up the app 0:58:07.140 --> 0:58:09.780 and placing a buy order. And just I believe we're 0:58:09.780 --> 0:58:11.340 going to do that right now. 0:58:11.910 --> 0:58:14.220 So we've just run through a few of the steps 0:58:14.220 --> 0:58:16.680 that we're about to do to give people sort of 0:58:16.680 --> 0:58:17.910 some lay of the land, do you think? 0:58:17.940 --> 0:58:20.310 Yes, I think that's probably that probably makes the most sense. 0:58:20.770 --> 0:58:22.350 The number one thing to think about is when the 0:58:22.350 --> 0:58:25.320 market opens, the market does not run at all times. 0:58:25.740 --> 0:58:30.180 You cannot buy, you know, shares on the toilet at 0:58:30.180 --> 0:58:33.240 8 p.m. at night. You have to think about when 0:58:33.240 --> 0:58:34.290 the market is actually running. 0:58:34.530 --> 0:58:37.290 You have to wait until 10:00 in the morning and 0:58:37.290 --> 0:58:40.080 then you can buy on the toilet. Although I do 0:58:40.080 --> 0:58:42.810 sort of say to people, sometimes the market pricing can 0:58:42.810 --> 0:58:46.350 be a little bit, you know, more erratic just as 0:58:46.350 --> 0:58:49.730 the market opens or closes. So the hours a 10 a.m. 0:58:49.730 --> 0:58:51.870 to 4 p.m. and I sort of like to leave 0:58:51.870 --> 0:58:53.430 a little bit of leeway. So you're sort of more 0:58:54.090 --> 0:58:58.260 avoiding those open and closed times. When you first go 0:58:58.260 --> 0:59:01.410 in and you check the the app and you press buy, 0:59:01.650 --> 0:59:04.710 it's going to show you something called a buy, sell 0:59:04.710 --> 0:59:07.860 spread or the bid ask spread and that. Is the 0:59:07.860 --> 0:59:12.480 gap between the sort of the highest price that buyers 0:59:12.480 --> 0:59:15.330 are wanting to pay and the lowest price that sellers 0:59:15.330 --> 0:59:17.430 are willing to accept and is usually a bit of 0:59:17.430 --> 0:59:19.530 a gap there. You know, of a couple of cents 0:59:19.530 --> 0:59:22.530 or whatever, and that's called the buy sell spread. And 0:59:22.530 --> 0:59:25.890 it pays to make sure that that spread isn't too 0:59:25.950 --> 0:59:28.770 big like so there isn't something weird. The market isn't 0:59:28.860 --> 0:59:32.700 particularly liquid for that particular asset or something because you 0:59:32.700 --> 0:59:34.530 know that that's just something to check. 0:59:35.100 --> 0:59:37.110 You'll also be presented with a number of different options 0:59:37.110 --> 0:59:39.750 when it comes to how you actually want to buy 0:59:39.750 --> 0:59:43.170 the shares. And commonly you'll see an option for a 0:59:43.470 --> 0:59:47.910 limit order or a market order. And a market order 0:59:47.910 --> 0:59:51.180 is where you just tell the platform to buy the 0:59:51.180 --> 0:59:53.940 shares at the whatever the best market price they can 0:59:53.940 --> 0:59:55.530 get for you at that moment. Then when you press 0:59:55.530 --> 0:59:58.680 buy a limit order lets you set a sort of 0:59:58.680 --> 1:00:01.140 a maximum that you're willing to pay for the shares. So, 1:00:01.140 --> 1:00:03.240 you know, say you, you know, you refuse to buy 1:00:03.450 --> 1:00:05.880 these shares unless they're $8. You can put in an 1:00:05.880 --> 1:00:08.640 order to say once they hit $8, I will buy 1:00:08.640 --> 1:00:09.060 them then. 1:00:09.480 --> 1:00:11.550 Yeah. And I need to confess at this point that 1:00:11.550 --> 1:00:13.440 I did use to put limit orders in and I 1:00:13.440 --> 1:00:18.000 became incredibly obsessed with not paying like $0.01 above the 1:00:18.000 --> 1:00:21.300 buy sell spread. So I was always putting in offers 1:00:21.300 --> 1:00:23.820 which were sort of outside of the spread and sort 1:00:23.820 --> 1:00:26.130 of below and sort of just hoping that the market 1:00:26.130 --> 1:00:27.900 would move that that such that there would be a 1:00:27.900 --> 1:00:30.870 seller that would accept my low offer and sometimes I 1:00:30.870 --> 1:00:34.410 would put in an order and it wouldn't clear because I, 1:00:34.410 --> 1:00:36.570 you know, the market had moved the other way and 1:00:36.570 --> 1:00:40.110 I was just torturing myself for a couple of cents. 1:00:40.110 --> 1:00:42.540 And I have I now tend to I'll just pop 1:00:42.540 --> 1:00:44.460 in and do a market order. As long as I've 1:00:44.460 --> 1:00:46.560 checked that the market is nice and liquid and that buy, 1:00:46.560 --> 1:00:50.310 sell spread isn't isn't to it, something weird isn't happening. 1:00:50.520 --> 1:00:52.500 I just pop in a market order because I was 1:00:52.500 --> 1:00:54.800 absolutely sending myself crazy over a few cents. 1:00:54.810 --> 1:00:59.190 Yeah. And you know, it's no no sense crying over 1:00:59.430 --> 1:01:00.360 a few cents. 1:01:01.080 --> 1:01:02.790 A little bit of comedy for you, but. 1:01:03.900 --> 1:01:05.340 You also need to think about how many shares you're 1:01:05.340 --> 1:01:08.290 going to actually buy. So divide the amount of money 1:01:08.290 --> 1:01:10.740 you going to spend by the current share price and 1:01:10.740 --> 1:01:13.020 also factor in a few things like brokerage cost and 1:01:13.020 --> 1:01:13.770 any other fees. 1:01:14.370 --> 1:01:16.830 Yep. And if you are doing a limit order, it will. 1:01:16.920 --> 1:01:18.570 One of the last steps is it usually asks you 1:01:18.570 --> 1:01:20.430 to set an expiration date for your order so you're 1:01:20.430 --> 1:01:23.250 not waiting around all day for that share to execute. 1:01:23.250 --> 1:01:24.450 Or you can say at the end of the day, 1:01:24.450 --> 1:01:26.880 just don't worry about it if it if it doesn't clear. 1:01:28.300 --> 1:01:30.730 So those are the steps. So I'm now opening my 1:01:30.730 --> 1:01:33.580 phone and I am putting in my password for my 1:01:33.580 --> 1:01:35.800 shared trading app. I'm going to go buy some shares. 1:01:36.730 --> 1:01:39.640 And I'm just doing a quick search for the ETF, 1:01:39.640 --> 1:01:42.310 which I'm looking to buy, and I've found it, so 1:01:42.310 --> 1:01:45.490 I've opened it up having a look at the the 1:01:45.490 --> 1:01:49.840 current trading price and its volume and its performance over 1:01:49.840 --> 1:01:51.280 the past month. Always a good thing to have a 1:01:51.280 --> 1:01:52.720 quick look at just to make sure that you know, 1:01:52.750 --> 1:01:54.880 you're not buying at a real peak or a real 1:01:54.880 --> 1:01:58.360 trough or anything like that. And there's a big green 1:01:58.360 --> 1:02:01.730 buy button down the bottom. I'm going to hit that 1:02:01.730 --> 1:02:02.710 big green buy button. 1:02:04.040 --> 1:02:05.840 I know. They make it so easy. 1:02:06.710 --> 1:02:07.730 So I'm going to put in the amount I'm going 1:02:07.730 --> 1:02:09.590 to invest. I'm not going wild today. I'm only going 1:02:09.590 --> 1:02:13.880 to invest $100. So put that in it. Asked me 1:02:13.880 --> 1:02:16.910 to review it. I'm doing a market order. So it's 1:02:16.910 --> 1:02:21.410 just whatever the best price is, it's available. And then 1:02:21.740 --> 1:02:25.370 there you go. It's done. And it processes and and easy, easy, done. 1:02:25.400 --> 1:02:25.730 You are. 1:02:25.730 --> 1:02:28.670 So quick. Dave. Okay, I'm going to alter my style, 1:02:28.670 --> 1:02:32.660 which is to get really nervous. I'm worried about all 1:02:32.660 --> 1:02:36.020 the money I'm about to, you know, transform into ownership 1:02:36.020 --> 1:02:38.660 of a a share, which is fantastic, but it's also 1:02:38.660 --> 1:02:41.090 my cash going in. Okay, so what? Okay, I'm going 1:02:41.090 --> 1:02:45.550 to open my share app. Here we go. And it's 1:02:45.550 --> 1:02:48.610 presenting me with information about my full balance. I know 1:02:48.610 --> 1:02:52.060 what I'm going to buy. It's an index ETF that 1:02:52.060 --> 1:02:55.630 I've bought before, so I'm just going to click on that. 1:02:56.230 --> 1:02:57.040 Where we go. 1:02:58.780 --> 1:03:03.490 Okay. And it's saying again it green button by okay. 1:03:04.930 --> 1:03:08.080 So I'm rolling in cash and I've got $1,000 I'm 1:03:08.080 --> 1:03:10.690 going to invest. So I now need to just have 1:03:10.690 --> 1:03:14.170 a look at what's the bid and the ask price. 1:03:14.560 --> 1:03:17.470 And I'll just just I've got my calculator out to 1:03:17.470 --> 1:03:23.950 divide 1000 divided by that price to know how many 1:03:23.950 --> 1:03:28.320 shares I can get. Okay, So it's telling me I 1:03:28.320 --> 1:03:33.770 can buy about ten units. I'm so I'm really close. 1:03:33.780 --> 1:03:36.690 Other amount to maybe it's 11, but it would depend 1:03:36.690 --> 1:03:38.670 what price that goes through. So I'm gonna I'm going 1:03:38.670 --> 1:03:40.770 to go for gold to try and buy 11 units 1:03:40.770 --> 1:03:46.570 in it. So I punch in shares. Number 11. And 1:03:46.570 --> 1:03:49.960 then I'm changing it from a limit order to a 1:03:50.050 --> 1:03:55.080 market order. And I'm saying so 11 shares at market, 1:03:55.110 --> 1:03:57.840 it's giving me an estimate of how much that would cost, 1:03:57.840 --> 1:03:59.220 which is above. So I'm gonna have to knock it 1:03:59.220 --> 1:04:08.280 down to 1010 at market. Max amount would be that amount. Yes. 1:04:08.280 --> 1:04:10.440 It expires saying end of the day it doesn't matter. 1:04:10.440 --> 1:04:12.450 It's a market order. And then I just take some 1:04:12.450 --> 1:04:13.320 deep breaths. Done. 1:04:13.950 --> 1:04:15.480 You can purchase. I believe in you. 1:04:18.060 --> 1:04:22.130 And it says review. Okay, review the buy. And that 1:04:22.130 --> 1:04:26.700 buy sell spreads nice and tight. I there's my brokerage cost. Okay. 1:04:26.720 --> 1:04:29.980 So I go and I've got a submit button. And 1:04:29.980 --> 1:04:35.570 I'm going to press that now. Sending done. Order placed. 1:04:35.810 --> 1:04:36.170 And then you. 1:04:36.190 --> 1:04:36.800 Go to go. 1:04:37.040 --> 1:04:39.260 And that's that's it's is easy Is that. 1:04:39.920 --> 1:04:40.940 Did we make that sound like. 1:04:40.940 --> 1:04:43.010 Fun. Yeah it is fun. 1:04:43.400 --> 1:04:46.480 As I still find it, I get a bit nerve wracking, 1:04:46.500 --> 1:04:48.470 although I'm down with it. I know what I'm doing, 1:04:48.470 --> 1:04:48.730 you know? 1:04:48.740 --> 1:04:49.790 You cool with it? 1:04:50.420 --> 1:04:52.790 Yeah. And then, I mean, now what I love to do, 1:04:52.820 --> 1:04:54.230 I don't know if you would need to do this for, 1:04:54.410 --> 1:04:56.810 but I like to review my contract notes, so I 1:04:56.810 --> 1:05:00.800 actually get the PDF report of, of my contract note, 1:05:00.800 --> 1:05:03.170 which is my purchase order and I printed out and 1:05:03.170 --> 1:05:04.820 I have a binder at home where I have a 1:05:04.820 --> 1:05:07.070 whole bunch and I keep every contract. Note that for 1:05:07.070 --> 1:05:08.240 everything I've ever bought. 1:05:08.810 --> 1:05:10.370 Yeah, I mean, I was not going to do any 1:05:10.370 --> 1:05:12.920 of that. I'm just going to probably just leave it 1:05:12.920 --> 1:05:15.880 and and think about it another time. But, you know, 1:05:15.890 --> 1:05:19.100 if you want to be as as diligent as Jess is, 1:05:19.100 --> 1:05:19.880 you can do that too. 1:05:20.660 --> 1:05:23.270 Another thing I do like those. I use a website 1:05:23.270 --> 1:05:25.880 called Share Site, which offers a free sort of share 1:05:25.880 --> 1:05:27.950 tracking and you can enter your holdings and if you 1:05:27.950 --> 1:05:32.570 have under ten different holdings, you can access that for free. 1:05:32.570 --> 1:05:34.970 So I do immediately I printed out and then I 1:05:34.970 --> 1:05:38.060 go enter it as a trade on my share site account, 1:05:38.690 --> 1:05:40.730 and then it sort of gives me a record. So 1:05:40.730 --> 1:05:44.750 if you do make purchases across multiple brokerage apps, you know, 1:05:44.750 --> 1:05:47.030 you can get a complete picture of your holdings. 1:05:47.300 --> 1:05:49.580 And then the last step is to close your app 1:05:49.580 --> 1:05:52.220 and then never think about it again. Well, not never again, 1:05:52.220 --> 1:05:54.410 but just trying to try to put it out of 1:05:54.410 --> 1:05:56.420 your mind. Ignore the fact that you just you just 1:05:56.420 --> 1:05:59.840 spent $1,000 on some shares and just, you know, go 1:05:59.900 --> 1:06:01.850 and go and make a cup of tea and think 1:06:01.850 --> 1:06:05.420 about anything else because don't need to obsessively check it 1:06:05.420 --> 1:06:07.790 because it's not going to be healthy to do that. 1:06:08.480 --> 1:06:10.970 Yes. Take it for me as someone who has obsessively 1:06:10.970 --> 1:06:13.370 checked it for for way too long. But I'm I'm 1:06:13.370 --> 1:06:15.740 getting better. And I just know up or down, you know, 1:06:15.770 --> 1:06:18.260 what I've done is I've got myself a toehold, a 1:06:18.260 --> 1:06:21.590 foothold in an asset that, you know, may increase in 1:06:21.590 --> 1:06:24.080 value over time. I hope it does. It will probably 1:06:24.080 --> 1:06:26.780 pay me distributions or dividends, you know, and I can 1:06:26.780 --> 1:06:29.360 look forward to that. And I you know, just keeping 1:06:29.360 --> 1:06:31.730 an eye on the bigger picture of what you're doing. 1:06:31.730 --> 1:06:33.560 You know, I think with the apps, it can sort 1:06:33.560 --> 1:06:35.270 of make it feel like a game or a bit 1:06:35.270 --> 1:06:39.260 like not real as real money we've just said goodbye 1:06:39.260 --> 1:06:42.350 to and hopefully we'll leave it there for enough time 1:06:42.350 --> 1:06:45.640 that it will prove to be a good investment for us. Still, 1:06:45.770 --> 1:06:46.550 I wish you well. 1:06:47.180 --> 1:06:48.950 And I wish you well too. Just and you go 1:06:48.950 --> 1:06:50.870 over on that. There it is. There's at the end 1:06:50.870 --> 1:06:53.120 of our sort of three part episode on how to 1:06:53.810 --> 1:06:55.880 buy shares and how to get involved in the share market. 1:06:55.880 --> 1:06:58.280 I hope you found them interesting. You know, it was 1:06:58.280 --> 1:07:00.470 interesting for us to talk about it and interesting to 1:07:00.470 --> 1:07:03.860 buy shares live again. Live Not really live. We think 1:07:03.860 --> 1:07:08.360 it's live. And as always, you know, we're rounding off 1:07:08.360 --> 1:07:11.390 the end of this episode with a listener question, I believe. 1:07:11.990 --> 1:07:14.959 Yes. So our listener question is from Lloyd, who knew 1:07:14.960 --> 1:07:17.990 we were going to be talking about shares and he 1:07:17.990 --> 1:07:21.680 was wondering if we're going to talk about international investments 1:07:22.010 --> 1:07:24.350 in the podcast. So maybe we could just talk quickly 1:07:24.350 --> 1:07:27.980 about international having an international element to your portfolio. 1:07:28.040 --> 1:07:29.660 Yeah, I mean, as we mentioned a couple of times, 1:07:29.660 --> 1:07:32.780 diversification is really important and if you only invest in 1:07:32.780 --> 1:07:34.310 Australian shares, you're going to get a bit of a 1:07:34.310 --> 1:07:38.690 limited exposure to different things. Like Australia is really sort 1:07:38.690 --> 1:07:42.320 of overweight as an economy to things like mining and 1:07:42.320 --> 1:07:44.330 resources and all that sort of stuff, because obviously that's 1:07:44.330 --> 1:07:46.160 what we make a lot of our money out of. 1:07:46.340 --> 1:07:48.830 So I think international shares can be really good to 1:07:48.830 --> 1:07:50.720 give you that little bit of extra edge on sort 1:07:50.720 --> 1:07:52.400 of thing, especially like tech stocks and stuff like that, 1:07:52.400 --> 1:07:53.990 because we don't have a huge number of tech stocks 1:07:53.990 --> 1:07:58.310 on the local market. So yeah, things like that. International 1:07:58.310 --> 1:07:59.330 shares are really important. 1:07:59.630 --> 1:08:02.600 Yeah, and it's really easy these days to get yourself 1:08:02.600 --> 1:08:06.709 access to that. There's any number of sort of international shares, ETFs. 1:08:06.710 --> 1:08:08.630 You know, if you want to pick a particular market, 1:08:08.630 --> 1:08:10.250 you can do that or you can get ones that 1:08:10.250 --> 1:08:12.800 sort of buy you a slice of everything across lots 1:08:12.800 --> 1:08:14.810 of different countries as well. 1:08:15.660 --> 1:08:17.580 And just your budget tip of the week, I believe, 1:08:17.580 --> 1:08:18.720 is style related. 1:08:19.920 --> 1:08:24.360 It is. You look amazing, Don. Thank you. I'm not 1:08:24.360 --> 1:08:27.450 sure about myself. This is one thing I feel like 1:08:27.450 --> 1:08:29.670 I'm kind of talking to my lady friends here, which 1:08:29.670 --> 1:08:31.890 is that we do spend quite a lot of money 1:08:31.890 --> 1:08:35.429 on hair treatments and haircuts and, you know, power to 1:08:35.430 --> 1:08:37.680 you if you value that. But one thing that I 1:08:37.680 --> 1:08:39.930 have really saved and I've got more money to invest 1:08:39.930 --> 1:08:42.400 in shares is because I don't pay a hairdresser anymore. 1:08:42.420 --> 1:08:45.210 I just well, I did once try to cut my 1:08:45.210 --> 1:08:47.700 own hair and I don't actually recommend that. But I 1:08:47.700 --> 1:08:49.530 now have a friend who I've equipped with a pair 1:08:49.530 --> 1:08:52.170 of $10 scissors and she comes over and she gives 1:08:52.170 --> 1:08:57.150 me a hair trim for free every couple of weeks 1:08:57.150 --> 1:08:59.310 and it's totally free. And I just like to have 1:08:59.310 --> 1:09:02.040 a word. Yes. As I say to my lady friends, 1:09:02.490 --> 1:09:07.260 you know, don't get caught up in the beauty gap, 1:09:07.470 --> 1:09:10.770 which or the beauty penalty where you're paying a lot 1:09:10.770 --> 1:09:13.470 of money to sort of shore up your appearances and 1:09:13.470 --> 1:09:16.080 try to boost your self-esteem. You're beautiful as you are. 1:09:16.200 --> 1:09:18.090 You look amazing. Get a friend to cut your hair. 1:09:18.270 --> 1:09:19.920 And if you if you haven't got any friends with 1:09:19.920 --> 1:09:23.960 steady hands, you can look out for tough training days. 1:09:23.970 --> 1:09:26.520 You know, there's always people needing to experiment on you 1:09:26.700 --> 1:09:30.210 or even search Facebook for hair model groups in your 1:09:30.210 --> 1:09:32.520 local area, which where you can connect with sort of 1:09:32.520 --> 1:09:34.890 trainee hairdressers so you can save a lot of cash 1:09:34.890 --> 1:09:35.290 that way. 1:09:35.670 --> 1:09:38.969 Yeah, I I've been told multiple times by barbers, which 1:09:38.970 --> 1:09:40.860 I view as an insult, to be quite honest, that 1:09:40.860 --> 1:09:42.390 I have a very difficult head of hair to cut. 1:09:43.080 --> 1:09:44.790 Something to do with having a double crown makes it 1:09:44.790 --> 1:09:47.729 really like hard to style anyway. So as much as 1:09:47.729 --> 1:09:50.130 I really like that idea, I think I'm probably going 1:09:50.130 --> 1:09:52.080 to stick with my with my local hairdresser. 1:09:52.620 --> 1:09:54.059 Okay. You might have special needs. 1:09:54.060 --> 1:09:55.760 I do have a specialty and a customer ahead. 1:09:55.770 --> 1:09:56.339 Of had a pound. 1:09:57.270 --> 1:09:58.860 But that does bring us to the end of the 1:09:58.860 --> 1:10:01.860 episode for another week. Keep sending in those listener questions. 1:10:01.860 --> 1:10:03.210 We love to read and we love to read them out. 1:10:03.660 --> 1:10:06.300 We love to answer them via email address. Is it 1:10:06.300 --> 1:10:09.990 all adds up At 9:00 today, you and next week 1:10:09.990 --> 1:10:12.660 will be returning to normal programming with our regular run 1:10:12.660 --> 1:10:13.229 of episodes. 1:10:13.830 --> 1:10:15.630 Excellent. See you next week, Dom. That was fun. 1:10:15.990 --> 1:10:21.440 Thanks, Jess. This episode of It All Adds Up was 1:10:21.439 --> 1:10:24.830 produced by Chee Wong. The information discussed is general in 1:10:24.830 --> 1:10:28.010 nature and does not take into account your personal financial situation, 1:10:28.040 --> 1:10:31.160 goals or objectives. You should always do your own research 1:10:31.160 --> 1:10:34.519 or get professional advice before making any major financial decisions. 1:10:35.180 --> 1:10:37.790 If you like today's episode, hit follow a new podcast app. 1:10:37.820 --> 1:10:40.010 Leave a review and recommend it to all your friends. 1:10:40.280 --> 1:10:42.860 You can also submit your listener questions in text or 1:10:42.860 --> 1:10:46.670 audio form at. It all adds up at 9:00 PM today. 1:10:47.479 --> 1:10:48.200 Thanks for listening.