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Speaker 1: She's on the Money. She's on the Money.

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Speaker 2: Hello, and welcome to She's on the Money, the podcast

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Speaker 2: for Millennials who want Financial Freedom, Part three of our

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Speaker 2: investment series is here, and today we're chatting all things shares,

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Speaker 2: including how they work, what you need to be mindful of,

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Speaker 2: and of course how to get started. My name is

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Speaker 2: Georgia King, and joining me as always is a very

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Speaker 2: excited Melbourne based financial advisor Victoria to find. Hello Victoria,

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Speaker 2: I like that.

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Speaker 3: You know I'm excited already.

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Speaker 2: I can see it.

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Speaker 3: Yeah, it's just being me. I'm so excited about this episode.

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Speaker 2: Now, it's pretty safe to save that you're probably not

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Speaker 2: the only one that's excited for this episode. It is

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Speaker 2: a highly anticipated one. Shares are pretty much the most

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Speaker 2: discussed topic in our Facebook communit and it's still a

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Speaker 2: space that many of us do find confusing. Cough George.

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Speaker 2: So with this in mind, can you give our listeners

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Speaker 2: a little taste of what they'll take away from today's episode.

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Speaker 4: Look, gee, there's absolutely no surprises here. This is an

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Speaker 4: episode that I am I could say wildly passionate about.

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Speaker 3: I feel like that is like one of my taglines.

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Speaker 3: I didn't make a realize.

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Speaker 4: Yeah, I didn't realize I had them, but we do.

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Speaker 4: You're going to walk away from this episode with an

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Speaker 4: overarching understanding of one, how share works obvious, two how

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Speaker 4: to get started, and we'll also cover all the things

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Speaker 4: that you need to be wary of. If you're freaking

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Speaker 4: out because investing in shares is still a pretty foreign

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Speaker 4: concept to you, then we've absolutely got you. This is

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Speaker 4: they're very stripped back, very easy to understand chat. But

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Speaker 4: there is a lot to get to g So lay

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Speaker 4: your questions on me.

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Speaker 2: Let's go fra straight into it first. Up HEREV I

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Speaker 2: want you to take it back to basics, strip it back.

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Speaker 2: How do shares and the share market work? And can

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Speaker 2: you confirm that it is not, in fact like gambling.

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Speaker 4: I can indeed confirm that it is nothing like gambling.

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Speaker 4: So the share market is just that it's a market,

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Speaker 4: and that is a place where you are able to

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Speaker 4: buy and sell shares.

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Speaker 3: For share is a small stake.

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Speaker 4: In a company, so you are buying into that company

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Speaker 4: as a shareholder. The prices in the market are determined

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Speaker 4: by supplying band and you would have seen that recently

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Speaker 4: with things like bitcoin absolutely surging. It's not increasing in

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Speaker 4: value because it's more valuable. It's increasing because more people

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Speaker 4: are purchasing it, So it's kind of like a stack

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Speaker 4: on mentality sometimes. But the reason supplying band fluctuates so

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Speaker 4: much is sometimes companies do better and you want in

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Speaker 4: or sometimes you want to sell a company because they

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Speaker 4: might have had a really good year and you just

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Speaker 4: think that that's the right time. So in the last

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Speaker 4: twelve months, with seeing companies like Zoom and hand Sanitizer,

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Speaker 4: companies absolutely, yeah, exactly, absolutely fly up the share market

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Speaker 4: and that's because their stock has gained value because its

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Speaker 4: price is increased because it is in more demand and

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Speaker 4: they are selling more product and they are therefore a

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Speaker 4: more attractive company to purchase. So the question here is

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Speaker 4: why do companies sell shares. The reason companies sell shares

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Speaker 4: is growth essentially requires financial investment and to do that

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Speaker 4: it needs to come from somewhere. So they need to

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Speaker 4: find money to grow, to invest in other things, and

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Speaker 4: they'll need a significant amount of capital, which then is

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Speaker 4: going to allow them to grow as a team, you know, higher,

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Speaker 4: build factories, whatever they require. So at the end of

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Speaker 4: the day, the more money they have invested into their company,

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Speaker 4: i e. You purchasing it, the further they can go.

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Speaker 4: It's kind of cool when you start to think that

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Speaker 4: by purchasing a company like you're helping them create a

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Speaker 4: better company. And that's why you're purchasing, right, Like you

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Speaker 4: go and purchase Zoom shares because you decide that they're

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Speaker 4: a good company that will have good growth and really

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Speaker 4: good outcomes for you as a shareholder, So you want

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Speaker 4: to get on board, give them some money at the

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Speaker 4: start to put towards that growth so that you can

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Speaker 4: be a part of the better outcome when you bought

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Speaker 4: for a cheaper price.

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Speaker 2: Yeah, and then you get a little bit of that

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Speaker 2: cash back because you're a part of that company.

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Speaker 3: Exactly. You're a mini business owner.

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Speaker 4: Yeah, I don't have any mini Yeah, very mini. But

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Speaker 4: you don't have any rights. I'm sorry, you don't get

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Speaker 4: to vote on the board or anything like that because

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Speaker 4: you definitely don't have enough of it.

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Speaker 3: But at the end of the day, that that's pretty

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Speaker 3: much what you are.

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Speaker 4: You've bought into this company. Therefore you're a tiny owner

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Speaker 4: of that asset.

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Speaker 2: I like that.

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Speaker 4: Yeah, I own so many businesses, guys, so wild I'm

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Speaker 4: an entrepreneur. Investing is a long term game, and hikes

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Speaker 4: and dips are all a part of that journey, so

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Speaker 4: keep that in mind. Most of the super rich, let's

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Speaker 4: be honest, generally have a majority of their wealth invested

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Speaker 4: in stocks, and I think that that is also worthy

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Speaker 4: of consideration because wealth creates wealth is something that always

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Speaker 4: is said.

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Speaker 3: But like, where did that start? How does that work?

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Speaker 4: And that is where our magic friend, compound interest comes

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Speaker 4: to play. We talk about them a little bit later.

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Speaker 4: It's definitely not like gambling, going back to your question,

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Speaker 4: but investing comes with risks, and we are going to

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Speaker 4: cover these later on in the pod. Generally speaking, though,

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Speaker 4: the higher the risk of the asset that you're purchasing

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Speaker 4: I Bitcoin, the higher the reward obvious given the current markets,

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Speaker 4: but also that risk can absolutely be flipped. We could

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Speaker 4: wake up tomorrow and bitcoin could be through the floor instead.

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Speaker 4: I woke up the other day and I was looking

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Speaker 4: at shares and I don't invest in this, just fay.

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Speaker 4: I do keep a keen eye on it though, because

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Speaker 4: I am very interested in it. I just don't want

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Speaker 4: to put my money there because I just don't feel

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Speaker 4: comfortable doing it. So let's be honest, And I was

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Speaker 4: looking at the share price and it went crazy the

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Speaker 4: other day. I think I had like a thirty percent

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Speaker 4: increase in one day. Insane, Like, obviously we're talking about

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Speaker 4: it now retrospectively, and going and purchasing it now would

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Speaker 4: not help you in the slightest have any level of

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Speaker 4: your face.

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Speaker 2: It's gone up to sixty thousand dollars per bitcoin. Yes, yeah,

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Speaker 2: but when we did our bitcoin episode, which which.

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Speaker 4: Was like twe weeks ago, was forty three yeah, yeah,

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Speaker 4: forty two, forty three, yeah, exactly. It's one of those

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Speaker 4: things where this the exact job that could have happened,

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Speaker 4: and the reason that has actually happened. Georgia, I like

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Speaker 4: to just touch on bitcoin for a little bit because

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Speaker 4: I think you guys are really interested in it is

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Speaker 4: because Tesla purchased bitcoin. Tesla bought one point five billion

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Speaker 4: dollars worth of bitcoin Chee's Luis, So everybody in the

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Speaker 4: market saw that and they were.

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Speaker 3: Like, oh my gosh, well, if Tesla's buying it, it

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Speaker 3: must be really good.

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Speaker 4: But also because Tesla put one point five billion dollars

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Speaker 4: into that, that's obviously a very significant amount of money.

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Speaker 4: So that shot the share price up in itself. But

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Speaker 4: now everybody else is seeing it because Tesla have also

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Speaker 4: come out and said in the near future, we'll be

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Speaker 4: accepting bitcoin as a as a payment for our cars.

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Speaker 2: Wow. Cool, right, that is cool.

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Speaker 4: Like as in just interesting to follow, Like I'm so

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Speaker 4: pervy on this stuff because i want to know what's happening.

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Speaker 4: I'm not saying it's a good asset to buy, but

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Speaker 4: let's open these conversations up and start having more conversations

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Speaker 4: about the intricacies of investing and well, why did that

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Speaker 4: happen and.

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Speaker 3: How did that happen?

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Speaker 4: And that goes back to what we were talking about

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Speaker 4: before on supply and demand, George, we have I've seen

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Speaker 4: demand increase because Tesla has purchased it, and they've clearly

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Speaker 4: decreased the supply because they've taken out one point five

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Speaker 4: billion dollars worth of that asset. And therefore other people

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Speaker 4: are saying it and going, wow, I want to be

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Speaker 4: on this train. But the important thing to understand there

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Speaker 4: is this is the emotional journey of investment. Like, what's

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Speaker 4: changed about bitcoin, not one thing except for the fact

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Speaker 4: other people are showing an interest in it. It's like

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Speaker 4: back in high school when the cool girl cut out

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Speaker 4: holes in her t shirt like or mean girl and

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Speaker 4: everybody else started doing it.

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Speaker 3: Yeah, there was no reason for that. That stacks on.

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Speaker 4: We've just got to be really careful because it's an

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Speaker 4: emotional journey, and when you get to invest it in

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Speaker 4: an emotional journey, you kind of have blinkers on and

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Speaker 4: you don't see the bigger picture of what else is

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Speaker 4: going on too involved with it, Yeah, exactly, and that's

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Speaker 4: where you know, people actually get into trouble with the

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Speaker 4: share market, and that's where things do start to feel

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Speaker 4: a little.

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Speaker 2: Bit like sure, okay, so bitcoin aside, regular shares, pointy currency.

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Speaker 4: Yeah, no crazy returns here, we are about consistency at

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Speaker 4: cheese on the money.

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Speaker 2: What does the usual return on investing in the share

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Speaker 2: market look like?

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Speaker 4: Then it's pretty sexy to Georgia, not gonna lie, but

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Speaker 4: really important to note here as a qualified and registered

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Speaker 4: financial advisor past performance. It's not an accurate indication of

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Speaker 4: future performance. But historically over the laste hundred years, we've

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Speaker 4: seen an average return of about ten percent. George, that's crazy,

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Speaker 4: and it's also worthy of just nutting out exactly what

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Speaker 4: this looks like over the last thirty years. So the

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Speaker 4: most recent index chart by Vanguard, which I really like

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Speaker 4: and I'm actually going to link into the Facebook group

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Speaker 4: when this episode drops because it's actually such a great

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Speaker 4: resource that really breaks down the returns and shows you

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Speaker 4: not only the returns but what happened in politics, and

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Speaker 4: like it's really it's really detailed, and if you sit

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Speaker 4: down and stare at it for long enough, it actually

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Speaker 4: starts to make sense.

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Speaker 3: But it's a really good overview.

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Speaker 4: But over the last thirty years, Georgia US shares have

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Speaker 4: performed at ten point three percent perannum, Australian shares have

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Speaker 4: returned at eight point nine percent perannum. Listed property so

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Speaker 4: that is where you buy property or real estate on

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Speaker 4: the ASX like as a share, not we're not talking

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Speaker 4: going and buying your investment property seven point eight percent,

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Speaker 4: so still pretty good, not bad. Australian bonds seven point

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Speaker 4: seven percent. I think that's pretty interesting given we always

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Speaker 4: talk about how that's a more conservative asset.

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Speaker 2: Definitely pretty good return.

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Speaker 4: My friends like, and this is absolutely no promises. It's

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Speaker 4: just about you understanding what that is. And obviously, when

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Speaker 4: I talk about assets, I would never base my assumptions

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Speaker 4: on these numbers. The reason is because I'd never want

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Speaker 4: you to have an expectation that ultimately doesn't get met.

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Speaker 4: I'd always prefer to like under assume and overperform, yes,

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Speaker 4: and put ourselves in a position where we were trying

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Speaker 4: to meet this expectation that might not happen just based

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Speaker 4: on timing or the share market or what's going on politically.

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Speaker 4: So for me, I actually always use the number five

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Speaker 4: percent as a share market return. And now you can see, well, actually,

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Speaker 4: Victoria like it performs better than that. I'm like, yeah,

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Speaker 4: that's the sexy pash. But back to my chart, international

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Speaker 4: shares performed at seven point three percent and our friend

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Speaker 4: cash performed at five point one percent.

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Speaker 3: Good on you.

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Speaker 4: Kind of cool, right, And average CPI, which is like inflation,

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Speaker 4: is two point four percent per annum over the last

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Speaker 4: thirty years. Pretty cool, right, Really interesting numbers. So I'm

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Speaker 4: not gonna keep going on about that because like stat

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Speaker 4: scale over whom I get a little bit mad at

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Speaker 4: me because I'm.

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Speaker 3: Taking her job.

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Speaker 4: But at the end of the day, if I do

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Speaker 4: my whiz bang maths, then we have a bit of

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Speaker 4: a think about this. Because one of my favorite things

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Speaker 4: about being able to talk to you guys about money

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Speaker 4: is to give you tangible examples of what that could

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Speaker 4: actually look like. And I'll use an example from a

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Speaker 4: DM I got the other day of someone saying, I

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Speaker 4: am using micro investing platforms looking to make the next step,

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Speaker 4: but not really sure what's going on. Got five grand

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Speaker 4: in my micro investing platform, and I've got myself to

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Speaker 4: a point where I'm investing one thousand dollars a month.

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Speaker 4: Obviously that's not achievable for everyone, because we're just talking

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Speaker 4: about an example, and I want to just show you

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Speaker 4: how compound interest works. So if we chuck that into

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Speaker 4: a compound interest calculator, which we will link in the

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Speaker 4: show notes as well. Because the moneysmart dot gov website,

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Speaker 4: I've said this before, I adore is a government run.

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Speaker 3: It is all legit.

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Speaker 4: It is not a financial advisor, you know, overlaying their

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Speaker 4: opinions on new It's just a compound interest calculator.

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Speaker 3: And we like that.

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Speaker 4: But if you initially had your five grand and you're like, Okay,

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Speaker 4: I want to go in the to the next steps.

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Speaker 4: I want to go from investing in a micro investing

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Speaker 4: platform to having my own share portfolio, which my friends,

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Speaker 4: is not as hard as you might think it is,

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Speaker 4: and you're doing that thousand dollars a month till retirement,

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Speaker 4: you'll end up with a very sexy one point five

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Speaker 4: million dollars. Oh so your initial deposited the five grand,

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Speaker 4: you're a depositing one thousand dollars a month. Obviously, that's

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Speaker 4: pretty big over that entire period of time. So till retirement,

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Speaker 4: which I've assumed is forty years away, given current market,

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Speaker 4: you would have saved four hundred and eighty thousand dollars,

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Speaker 4: like if you just put.

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Speaker 3: That into a salesce account.

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Speaker 4: Obviously we need to take into accounts CPI or indexation

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Speaker 4: because the cost of goods and services increases over time.

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Speaker 4: So therefore that's going backwards at two point four percent

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Speaker 4: on average over the last thirty years based on the

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Speaker 4: conversation we're just having, So it's not actually going to

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Speaker 4: be worth that, So we need to understand that as

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Speaker 4: well and overlay that assumption. But we're just talking basic numbers.

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Speaker 4: We're not taking into consideration tax here either, which you

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Speaker 4: will have to pay if you get.

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Speaker 3: To that point.

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Speaker 4: But you'll make a million dollars essentially from investing over

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Speaker 4: the long term. That's a million dollars of I want

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Speaker 4: to call it free money, but it's like free money

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Speaker 4: that you're getting because you have put in the longyards

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Speaker 4: and actually invested and stuck with it. A million dollars

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Speaker 4: you didn't have forty years prior.

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Speaker 3: How cool is that?

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Speaker 2: Well, you've doubled what you would have if you just

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Speaker 2: saved it, and then and then some exactly.

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Speaker 4: And there's sexy part about this, and I keep saying

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Speaker 4: sexy on this episode.

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Speaker 3: Is sorry because we're talking about investing.

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Speaker 2: Exhorited about it.

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Speaker 3: It is my jam.

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Speaker 4: But five percent of one point five million dollars invested,

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Speaker 4: because that's the cool part.

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Speaker 1: Right.

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Speaker 4: You don't get to the end game of investing and say,

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Speaker 4: oh my gosh, well now I have one point five

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Speaker 4: million dollars I can start spending it like friends. We

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Speaker 4: don't start spending that money at all. It will stay invested.

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Speaker 4: And those dividends that you are paid and the returns

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Speaker 4: that you get each and every single year that was

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Speaker 4: compound interest building your portfolio. You're now taking as your salary.

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Speaker 4: So you now take that money as your income. And

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Speaker 4: five percent of one point five million dollars obviously we're

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Speaker 4: being super conservative with those numbers Georgia.

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Speaker 3: That's seventy five thousand dollars a year. Bolin' Bolin Bowling, absolutely, Bolin.

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Speaker 4: Obviously you're gonna have to pay tax on that, yah,

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Speaker 4: marginal tax rate, all of that fun stuff. And it's

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Speaker 4: definitely not something that I would say, Okay, no problems,

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Speaker 4: don't worry about tax or anything like that. It's also

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Speaker 4: probably really worthy of pointing out the superannuation needs to

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Speaker 4: be taken into consideration. Love super, you're already investing. Check

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Speaker 4: out what's in your super already, because it has the

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Speaker 4: same power that this investing has.

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Speaker 2: God. Every time we talk about investing, I'm just like, ah,

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Speaker 2: sounds like it's the best. Why aren't you doing it? Is?

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Speaker 3: I'm so excited about it? Can you tell?

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Speaker 4: But that's it, And I just wanted to put that

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Speaker 4: into your your mind. You're going to retire at what's

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Speaker 4: sixty five, going to live for hopefully twenty thirty years.

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Speaker 3: That's not enough money.

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Speaker 4: I think people get really hung up on and this

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Speaker 4: is going to be a really long episode. I do

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Speaker 4: apologize friends, because I'm just like so on top of

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Speaker 4: this stuff.

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Speaker 3: But a thousand dollars a month not achievable.

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Speaker 4: For you, But what does that look like holistically, including

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Speaker 4: your superannuation, your savings, your future family home. Like, you

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Speaker 4: might not be in a position where you actually need

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Speaker 4: seventy five thousand dollar income, Like, let's work out what

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Speaker 4: you actually need to survive. Because a lot of people

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Speaker 4: the Australian dream to buy property, so at some point

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Speaker 4: most of us will go all right, well, I really

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Speaker 4: want to buy property. Definitely not something that we have

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Speaker 4: to do. I feel like I'm seeing a change of

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Speaker 4: people saying, well, actually I don't want to own property.

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Speaker 4: I just want to invest in chairs and have the freedom. Yes, queens,

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Speaker 4: I love that for us, but I wouldn't you to

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Speaker 4: have the option. But if you have put together a

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Speaker 4: little financial strategy for yourself, you've purchased a home and

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Speaker 4: by the time that you retire, that's completely paid off.

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Speaker 4: You don't need to factory mortgage repayments or rent like,

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Speaker 4: so your income could be less and you could be

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Speaker 4: really comfortable on that.

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Speaker 3: So that's the end of my rank. Can you ask

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Speaker 3: me another that was good and keep on a movie?

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Speaker 2: Absolutely? So this is a little bit of a side step.

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Speaker 2: But I was looking at a couple of studies in

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Speaker 2: prep for today's episode. We know I love a stat

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Speaker 2: you are stats a stat scale here unsurprisingly, it was

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Speaker 2: found that Australian women on the whole are investing less

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Speaker 2: than men. What is your take on why this is

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Speaker 2: and do you see that changing? Yeah?

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Speaker 3: Look, I know this that that you're referring to, George.

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Speaker 4: That was an article from a company called First Links

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Speaker 4: that we were talking about earlier this week, and their

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Speaker 4: research found and I'm gonna outline this because I'm not

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Speaker 4: sure how accurate this is, just because I like to

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Speaker 4: think about the stats and yeah, it doesn't make sense

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Speaker 4: to me. So they found that women only make up

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Speaker 4: eighteen percent of the seven hundred and fifty thousand people

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Speaker 4: who are active online investors in Australia. So I'm not

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Speaker 4: sure what that looks like because Australia has a population

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Speaker 4: of around twenty five million people, and from what I understand,

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Speaker 4: that doesn't sound like nearly enough people investing, given we

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Speaker 4: all technically are investors in our suberannuation. So I don't

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Speaker 4: know what that means. Maybe active online investors actually means

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Speaker 4: people trading on the ASEX or something that are maybe

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Speaker 4: buying direct shares, whereas it might not be taking into

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Speaker 4: consideration people using micro investing platforms or ETFs or whatever

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Speaker 4: that is.

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Speaker 3: Okay, does that make sense? Like just disclaimer.

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Speaker 4: But at the same time, if and this is me

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Speaker 4: being a little bit optimistic, guys, if eighteen percent of

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Speaker 4: seven hundred and fifty thousand people are women, that is

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Speaker 4: a total of one thirty five people, Georgia, that's the

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Speaker 4: entire number of our Facebook group.

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Speaker 3: Can you imagine if.

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Speaker 4: We then got everybody on our Facebook group investing, we

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Speaker 4: could double the amount of female investors in Australia. Okay,

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Speaker 4: that's me being health That's why I wanted this start

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Speaker 4: to kind of be true.

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Speaker 3: But at the same time, I don't.

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Speaker 4: Know how sketic, But yeah, you're right, women are less

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Speaker 4: likely to invest in shares because we are more conservative,

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Speaker 4: We don't take the leap, we don't have the education

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Speaker 4: that we require, and more often than not, we feel

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Speaker 4: like we need to know a subject back to front

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Speaker 4: before we even even entertain the idea of doing it,

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Speaker 4: whereas guys are like, yeah, I'll give that a crack,

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Speaker 4: don't really know, but my mate's doing it, so must

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Speaker 4: be good. We don't do that, and I see that

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Speaker 4: in you, Georgia. Because you are still not ready to

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Speaker 4: take that leap, and that is totally okay, And I

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Speaker 4: think that that something that we also need to disclaim.

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Speaker 4: If you're not investing in shares, We're not here to

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Speaker 4: tell you that you're doing ther wrong thing. By not

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Speaker 4: we're just saying, hey, let's keep the conversation going, keep

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Speaker 4: you educated, keep you on the right journey, because the

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Speaker 4: right time for you to invest personally is not right now,

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Speaker 4: it's when you.

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Speaker 3: Are comfortable and ready. Gee.

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Speaker 4: I also do think that the tide is kind of

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Speaker 4: turning because of how many women in our community are

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Speaker 4: talking about shares and investing, and you know, there's so

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Speaker 4: many other communities online as well talking about it. And

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Speaker 4: I feel like it's twenty twenty one. We have access

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Speaker 4: to so much research, We have the ability to do

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Speaker 4: so many things ourselves. At thirty years ago we would

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Speaker 4: not have had access to. So hopefully that stat is

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Speaker 4: going to change dramatically in the next couple of years

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Speaker 4: and we are going to track it.

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Speaker 2: Yeah, for sure.

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Speaker 3: Moving on to the next question, what have you got

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Speaker 3: for me?

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Speaker 2: Okay, so how do we actually get started? You mentioned

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Speaker 2: before micro investing, and we do talk about that a

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Speaker 2: lot as a great place to start if you are

409
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Speaker 2: still a bit hesitant. But also if you just have

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Speaker 2: some money you want to tuck away and do a

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Speaker 2: little bit more with it, and it just being in

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Speaker 2: your savings, what would you recommend beyond that as a

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Speaker 2: good way to start.

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Speaker 4: Yes, And I think that this is such a good

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Speaker 4: question because we can educate ourselves. But where do you start?

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Speaker 4: And when you start researching, you get a bit of

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Speaker 4: analysis provalysis, Like there are so many options, and so

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Speaker 4: many times people message us and say, Okay, well what

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Speaker 4: ETF should I buy? I can't legally give you that advice,

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Speaker 4: and even if I could, I would have to take

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Speaker 4: into consideration your risk profile, your personal situation, your goals,

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Speaker 4: like what you want to achieve over the long term,

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Speaker 4: what the final outcome is, before even considering that. Maybe

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Speaker 4: you've got personal values and want to ethically invest. So

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Speaker 4: I think it's really important for you to understand that

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Speaker 4: it is not necessarily about which ETF you pick or

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Speaker 4: which asset you pick.

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Speaker 3: It's about, well, what are your values?

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Speaker 4: Then start looking for an asset that aligns to your values,

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Speaker 4: not the opposite, Because go out there, there's literally thousands

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Speaker 4: of assets in Australia that you can pick from, but

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Speaker 4: you can make it easier for yourself by going, Okay, cool,

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Speaker 4: what criteria do I want my future assets to meet

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Speaker 4: before I even start looking at them, so that you

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Speaker 4: can knock heaps off before even starting the search. So

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Speaker 4: for me, that's what I would do. Micro Investing, in

437
00:20:15,040 --> 00:20:18,879
Speaker 4: my humble opinion, is actually a really great place to start.

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Speaker 4: And I say this because it gives you the ability

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Speaker 4: to dip your toes in the water. You're not going

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Speaker 4: and buying a share. You're not going and putting all

441
00:20:27,760 --> 00:20:30,000
Speaker 4: your money and all your hard earned savings into a

442
00:20:30,080 --> 00:20:34,320
Speaker 4: well diversified portfolio that can genuinely feel really overwhelming. With

443
00:20:34,400 --> 00:20:37,480
Speaker 4: micro investing, you can literally start with a dollar. We

444
00:20:37,720 --> 00:20:41,200
Speaker 4: did a double episode on micro investing back in Season three, Georgia.

445
00:20:41,359 --> 00:20:43,119
Speaker 4: So if you want to know more about that space

446
00:20:43,359 --> 00:20:45,960
Speaker 4: and you're ready to move onto the share market at

447
00:20:46,000 --> 00:20:48,320
Speaker 4: that scale, definitely go have a look at them.

448
00:20:48,480 --> 00:20:49,840
Speaker 3: But if you want to grow from a.

449
00:20:49,800 --> 00:20:52,960
Speaker 4: Micro investing platform, we get so many messages Georgia, and

450
00:20:53,040 --> 00:20:57,439
Speaker 4: you would absolutely be privy to these Victoria. I've been investing,

451
00:20:57,640 --> 00:21:00,920
Speaker 4: and I've been doing something with a co investing platform

452
00:21:00,920 --> 00:21:03,480
Speaker 4: for a while now, what is the next step?

453
00:21:04,200 --> 00:21:05,840
Speaker 3: That's probably our number one question.

454
00:21:05,920 --> 00:21:08,800
Speaker 4: You would say, yep, the next step is obviously to

455
00:21:08,960 --> 00:21:14,560
Speaker 4: get some advice. But catch twenty two financial advice is

456
00:21:14,760 --> 00:21:19,200
Speaker 4: really expensive and this really upsets me. So the next

457
00:21:19,240 --> 00:21:21,560
Speaker 4: step would obviously be to work out where you're out

458
00:21:21,600 --> 00:21:24,560
Speaker 4: with your finances, Go see a financial advisor, have a

459
00:21:24,680 --> 00:21:28,200
Speaker 4: chat about that. But I'm not meant to be sharing

460
00:21:28,240 --> 00:21:29,639
Speaker 4: this yet, and I can see you looking at me

461
00:21:29,680 --> 00:21:32,879
Speaker 4: being like, b what are you doing. I am actually

462
00:21:32,880 --> 00:21:34,600
Speaker 4: working on a solution that would sit in the middle,

463
00:21:34,640 --> 00:21:36,760
Speaker 4: so you don't have to pay for a financial advisor,

464
00:21:36,840 --> 00:21:40,399
Speaker 4: but you can go and actually get advice that is

465
00:21:40,520 --> 00:21:44,320
Speaker 4: aligned to your risk profile, that has a really good portfolio,

466
00:21:44,359 --> 00:21:47,159
Speaker 4: aligned to your values, aligned to what you want to do,

467
00:21:47,359 --> 00:21:49,360
Speaker 4: that will be automatically rebalanced.

468
00:21:49,840 --> 00:21:50,639
Speaker 3: Do you know what that means.

469
00:21:50,880 --> 00:21:52,760
Speaker 4: It means that there would be a fund manay during

470
00:21:52,840 --> 00:21:56,240
Speaker 4: the background making decisions about your portfolio, so that you know,

471
00:21:56,480 --> 00:21:59,080
Speaker 4: if something's performing really good, they might take some off

472
00:21:59,080 --> 00:22:03,120
Speaker 4: the table making decisions about your portfolio, so that you

473
00:22:03,160 --> 00:22:07,080
Speaker 4: can be empowered and actually always say, well, my portfolio

474
00:22:07,160 --> 00:22:10,000
Speaker 4: is always well diversified because I have somebody working on

475
00:22:10,880 --> 00:22:13,200
Speaker 4: working with me to do that, and it didn't cost

476
00:22:13,240 --> 00:22:14,240
Speaker 4: you five grand to do that.

477
00:22:14,359 --> 00:22:15,080
Speaker 3: Yeah, anyway, I've.

478
00:22:15,000 --> 00:22:16,879
Speaker 2: Teased us though, So when are we talking? When it's

479
00:22:17,040 --> 00:22:18,000
Speaker 2: going to be released.

480
00:22:17,880 --> 00:22:18,960
Speaker 3: Ish March April.

481
00:22:19,119 --> 00:22:23,000
Speaker 2: Oh y, it's coming soon twenty one, good lord. All right.

482
00:22:23,280 --> 00:22:25,320
Speaker 4: It will be a very beautiful platform and from us,

483
00:22:25,359 --> 00:22:27,359
Speaker 4: you'll be able to see all your investments in one place.

484
00:22:27,440 --> 00:22:29,560
Speaker 3: Fabulous the dream, Georgia Keys.

485
00:22:29,560 --> 00:22:32,040
Speaker 2: So in the meantime, what are the other steps we're taking.

486
00:22:32,119 --> 00:22:34,760
Speaker 4: The other steps we are taking is looking at our finances,

487
00:22:34,800 --> 00:22:37,200
Speaker 4: seeing where we're at. I want you to write down

488
00:22:37,240 --> 00:22:39,560
Speaker 4: what you own, what you owe, what you earn, and

489
00:22:39,560 --> 00:22:42,200
Speaker 4: what you spend. I want you to understand all of that.

490
00:22:42,520 --> 00:22:44,919
Speaker 4: You need to understand your income and your expenses so

491
00:22:45,000 --> 00:22:47,479
Speaker 4: you can really clearly see your financial position and how

492
00:22:47,560 --> 00:22:50,280
Speaker 4: much you actually want to invest monthly. The key to

493
00:22:50,480 --> 00:22:54,760
Speaker 4: investing is consistency. We will create wealth if we invest

494
00:22:54,840 --> 00:22:58,359
Speaker 4: consistently and always spend less than we are earning. Like

495
00:22:58,440 --> 00:23:01,040
Speaker 4: that should just be one podcast, thirty seconds of me

496
00:23:01,119 --> 00:23:04,440
Speaker 4: saying spend less than you invest all the time, full stop,

497
00:23:04,560 --> 00:23:05,080
Speaker 4: end of story.

498
00:23:05,160 --> 00:23:07,520
Speaker 3: Wealth creation stunning. Oh I guess that's the end of

499
00:23:07,560 --> 00:23:07,919
Speaker 3: the podcast.

500
00:23:08,000 --> 00:23:08,240
Speaker 4: Guys.

501
00:23:08,400 --> 00:23:11,680
Speaker 3: I know, but also, once we know what we're working with,

502
00:23:12,000 --> 00:23:13,680
Speaker 3: understand your risk profile.

503
00:23:14,119 --> 00:23:17,560
Speaker 4: I cannot tell you this more times than I have,

504
00:23:17,920 --> 00:23:20,920
Speaker 4: but understanding what a risk profile is and being able

505
00:23:20,960 --> 00:23:23,440
Speaker 4: to gauge where to place your money within the market,

506
00:23:23,760 --> 00:23:25,879
Speaker 4: how much risk do you want to take on? Not

507
00:23:25,960 --> 00:23:29,080
Speaker 4: because you're a low income owner or edging close to retirement,

508
00:23:29,160 --> 00:23:32,000
Speaker 4: but it's actually one of those things that your risk

509
00:23:32,040 --> 00:23:34,280
Speaker 4: profile is a reflection of your values and what you're

510
00:23:34,320 --> 00:23:36,520
Speaker 4: going to be comfortable with. And when it comes to investing,

511
00:23:36,600 --> 00:23:38,800
Speaker 4: if you cannot sleep at night because of the assets

512
00:23:38,840 --> 00:23:41,919
Speaker 4: you've chosen, my friend, you've chosen the wrong assets. I

513
00:23:41,920 --> 00:23:44,320
Speaker 4: think it's about really understanding the risk profile, which is

514
00:23:44,400 --> 00:23:46,480
Speaker 4: essentially your ability to take on risk. But I'm doing

515
00:23:46,520 --> 00:23:50,040
Speaker 4: an entire episode on how to understand your risk profile soon,

516
00:23:50,080 --> 00:23:52,439
Speaker 4: what that actually means and how we do it. But

517
00:23:52,480 --> 00:23:56,199
Speaker 4: then it's also goal setting, how long you investing for?

518
00:23:56,560 --> 00:23:58,840
Speaker 4: What are your other goals? Are you saving for a home?

519
00:23:59,040 --> 00:24:02,080
Speaker 4: Are you know? Do you have other personal expenses coming

520
00:24:02,160 --> 00:24:03,879
Speaker 4: up in the next three to five years that we

521
00:24:03,960 --> 00:24:05,400
Speaker 4: need to take into consideration.

522
00:24:05,920 --> 00:24:07,600
Speaker 3: You know, if you're a unie student and you're.

523
00:24:07,480 --> 00:24:09,760
Speaker 4: Listening to this, or you are a low income earner

524
00:24:10,000 --> 00:24:12,879
Speaker 4: that just goes Victoria. This sounds so great, but I

525
00:24:12,920 --> 00:24:16,760
Speaker 4: can't afford it, my friend, I understand fully, I get it,

526
00:24:16,840 --> 00:24:19,840
Speaker 4: I really do. It is not about having to invest.

527
00:24:20,200 --> 00:24:22,240
Speaker 4: If you are a UNI student and you are just

528
00:24:22,320 --> 00:24:25,560
Speaker 4: scraping by, you are living week to week, that's okay.

529
00:24:25,960 --> 00:24:27,200
Speaker 3: Like just knowing that.

530
00:24:27,119 --> 00:24:29,120
Speaker 4: This is something you want to do in the future

531
00:24:29,560 --> 00:24:32,320
Speaker 4: is absolutely putting you at an advantage and putting you

532
00:24:32,359 --> 00:24:35,080
Speaker 4: ahead of the rest. Sometimes you just need to get by.

533
00:24:35,600 --> 00:24:38,439
Speaker 4: Sometimes you have two kids and a forty five thousand

534
00:24:38,480 --> 00:24:41,960
Speaker 4: dollar income and you literally feel like everything is a pinch,

535
00:24:42,080 --> 00:24:44,840
Speaker 4: and things like this put extra pressure on you because

536
00:24:44,840 --> 00:24:46,760
Speaker 4: you go, oh, my gosh. I listened to Sheese on

537
00:24:46,800 --> 00:24:49,439
Speaker 4: the Money and I left feeling not empowered because I

538
00:24:49,480 --> 00:24:52,439
Speaker 4: can't invest in shares. What about my future? Like, my friend,

539
00:24:52,680 --> 00:24:54,960
Speaker 4: you will be okay. There will be a plan that

540
00:24:55,040 --> 00:24:57,680
Speaker 4: works for you. You do not have to be investing

541
00:24:57,720 --> 00:24:59,680
Speaker 4: if it doesn't work for your personal situation.

542
00:25:00,200 --> 00:25:02,800
Speaker 2: But that doesn't mean it's not worth understanding.

543
00:25:02,840 --> 00:25:03,800
Speaker 3: One hundred percent.

544
00:25:04,119 --> 00:25:08,000
Speaker 4: Understanding and education is our key to future success.

545
00:25:07,720 --> 00:25:11,040
Speaker 2: One hundred percent. All right, So moving on, b how

546
00:25:11,040 --> 00:25:13,520
Speaker 2: do we choose where to invest our money? Is it

547
00:25:13,560 --> 00:25:15,800
Speaker 2: a matter of like pulling up the annual report of

548
00:25:15,840 --> 00:25:19,080
Speaker 2: the businesses that we're thinking of investing in, or do

549
00:25:19,200 --> 00:25:22,520
Speaker 2: we go on I told John's recommendation, and just.

550
00:25:22,480 --> 00:25:26,400
Speaker 4: That he told your pristmas after a few too many bbtis. Yeah,

551
00:25:26,960 --> 00:25:30,440
Speaker 4: he sounds like you're really John. Yeah, he's good. Yeah,

552
00:25:30,440 --> 00:25:33,880
Speaker 4: there's a reason that his advice is absolutely flawless. I'm

553
00:25:33,880 --> 00:25:37,479
Speaker 4: actually hiring him next week. If you are me, you

554
00:25:37,560 --> 00:25:40,080
Speaker 4: do read the annual reports of companies in deep dive

555
00:25:40,160 --> 00:25:43,520
Speaker 4: into what people online are saying about them and how

556
00:25:43,560 --> 00:25:45,960
Speaker 4: they are performing in the latest CEO that they I

557
00:25:46,080 --> 00:25:47,320
Speaker 4: get into Rabbit Warrens.

558
00:25:47,560 --> 00:25:47,800
Speaker 2: Yeah.

559
00:25:47,800 --> 00:25:50,360
Speaker 4: But you can go on buy shares and you can

560
00:25:50,440 --> 00:25:53,680
Speaker 4: look at things like well diversified ETFs where somebody else

561
00:25:53,760 --> 00:25:55,840
Speaker 4: is making that decision for you. You can go into

562
00:25:55,880 --> 00:25:58,600
Speaker 4: a managed fund where you literally have a fund manager,

563
00:25:58,760 --> 00:26:00,800
Speaker 4: which is a little bit more expensive than an ETF

564
00:26:00,880 --> 00:26:03,840
Speaker 4: because of how much more activity is than an ETF.

565
00:26:03,920 --> 00:26:06,760
Speaker 4: But there are so many great places to start. But

566
00:26:06,840 --> 00:26:09,240
Speaker 4: a really safe option when you're starting out is to

567
00:26:09,240 --> 00:26:11,880
Speaker 4: look at what we call blue chip companies. So blue

568
00:26:11,960 --> 00:26:16,119
Speaker 4: chip companies are stable, reputable companies who have proven themselves

569
00:26:16,119 --> 00:26:19,920
Speaker 4: to be very consistently historically and therefore carry a lower risk.

570
00:26:20,280 --> 00:26:23,240
Speaker 4: So you can find these just by googling SMP ASX

571
00:26:23,320 --> 00:26:27,000
Speaker 4: fifty or SMP two hundred, which is going to give

572
00:26:27,000 --> 00:26:29,280
Speaker 4: you a list of either the top fifty blue chip

573
00:26:29,320 --> 00:26:32,040
Speaker 4: companies or the top two hundred companies, just so that

574
00:26:32,080 --> 00:26:33,320
Speaker 4: you can understand who they are.

575
00:26:33,400 --> 00:26:35,199
Speaker 2: What can you give me an example?

576
00:26:35,240 --> 00:26:37,520
Speaker 4: Would it be like Woolworth'sless be Willies, It would be

577
00:26:38,119 --> 00:26:41,399
Speaker 4: nab A and Z, it would be Telstra. So just

578
00:26:41,440 --> 00:26:45,280
Speaker 4: those really reliable, really reliable companies that have good track

579
00:26:45,320 --> 00:26:47,399
Speaker 4: records in Australia that you can go and look at

580
00:26:47,400 --> 00:26:50,600
Speaker 4: their past performance. As much as past performance is absolutely

581
00:26:50,640 --> 00:26:52,440
Speaker 4: not a reliable predictor of future performance.

582
00:26:52,440 --> 00:26:55,680
Speaker 3: I sound like a television real I hate that.

583
00:26:55,640 --> 00:26:57,560
Speaker 4: You know, like they speed it up at the end,

584
00:26:57,560 --> 00:26:59,200
Speaker 4: They speed it up at the end. Their past performance

585
00:26:59,240 --> 00:27:04,200
Speaker 4: is not unreliable predictor of future performance. For me, past

586
00:27:04,200 --> 00:27:06,400
Speaker 4: performance isn't. But like I want to see that they've

587
00:27:06,440 --> 00:27:08,439
Speaker 4: proven themselves and I want to see that as a

588
00:27:08,440 --> 00:27:11,120
Speaker 4: business they're growing and they are building year on year.

589
00:27:11,240 --> 00:27:14,000
Speaker 4: The important thing here is to understand your values, because

590
00:27:14,040 --> 00:27:16,199
Speaker 4: you might not want to invest in mining companies and

591
00:27:16,200 --> 00:27:18,359
Speaker 4: an ETF might have that in that so you've got

592
00:27:18,400 --> 00:27:20,960
Speaker 4: to then go find something that doesn't include that asset

593
00:27:21,080 --> 00:27:23,240
Speaker 4: you might not want to invest in. It's also not

594
00:27:23,440 --> 00:27:25,679
Speaker 4: a bad idea to invest in industries that you know

595
00:27:25,840 --> 00:27:28,560
Speaker 4: really well. So for me, that's going to help you

596
00:27:28,600 --> 00:27:31,760
Speaker 4: feel safer at night. It's going to help you sleep

597
00:27:31,920 --> 00:27:34,639
Speaker 4: better because it might be easier to stay on companies

598
00:27:34,680 --> 00:27:37,879
Speaker 4: that are thriving because you're already interested in that industry.

599
00:27:38,480 --> 00:27:41,040
Speaker 4: Have a look at the ASX. That is a really

600
00:27:41,080 --> 00:27:44,000
Speaker 4: good resource. That's Australian Stock Exchange which you can just

601
00:27:44,040 --> 00:27:46,679
Speaker 4: google and they have an outline of all the sectors

602
00:27:46,720 --> 00:27:48,879
Speaker 4: you could invest in and jot down some companies that

603
00:27:49,000 --> 00:27:51,440
Speaker 4: stand out to you and then you could comb through

604
00:27:51,480 --> 00:27:54,040
Speaker 4: them see how they're tracking, etc. But this is all

605
00:27:54,080 --> 00:27:56,120
Speaker 4: if you want to be a little bit more active,

606
00:27:56,280 --> 00:27:59,040
Speaker 4: very hands on, very hands on, and to be honest,

607
00:27:59,520 --> 00:28:02,399
Speaker 4: it is really hard. So at the start I find

608
00:28:02,480 --> 00:28:04,480
Speaker 4: that people who really motivated, they're like, I'm going to

609
00:28:04,520 --> 00:28:06,879
Speaker 4: put together a really well diversified portfolio. I'm going to

610
00:28:06,920 --> 00:28:11,520
Speaker 4: research what percentages I need in my portfolio. Great, that's fantastic.

611
00:28:11,920 --> 00:28:13,000
Speaker 4: How are you maintaining that?

612
00:28:13,520 --> 00:28:16,680
Speaker 3: So like you might put it together today, the stock market.

613
00:28:16,440 --> 00:28:19,760
Speaker 4: Changes every single day. How often are you going to

614
00:28:19,760 --> 00:28:21,560
Speaker 4: be keeping an eye on it? Are you going to

615
00:28:21,600 --> 00:28:24,400
Speaker 4: be Are you going to be like a financial advisor

616
00:28:24,440 --> 00:28:26,680
Speaker 4: and going and looking at each and every single day

617
00:28:27,000 --> 00:28:30,159
Speaker 4: and actually making decisions on your portfolio about when to

618
00:28:30,240 --> 00:28:33,280
Speaker 4: sell some shares to rebalance your portfolio. Are you going

619
00:28:33,320 --> 00:28:35,399
Speaker 4: to be on top of it for the rest of

620
00:28:35,440 --> 00:28:38,240
Speaker 4: your life like you are meant to be? Maybe not,

621
00:28:38,520 --> 00:28:40,920
Speaker 4: then maybe have a look at something that helps you

622
00:28:41,000 --> 00:28:44,640
Speaker 4: diversify a little bit better, or get some advice. At

623
00:28:44,680 --> 00:28:47,720
Speaker 4: the end of the day, I obviously am a financial advisor,

624
00:28:48,080 --> 00:28:50,600
Speaker 4: and if you have a large sum of money, like

625
00:28:50,720 --> 00:28:53,400
Speaker 4: we know that people who do not have financial advisors

626
00:28:53,400 --> 00:28:54,240
Speaker 4: and just do it themselves.

627
00:28:54,400 --> 00:28:56,840
Speaker 2: Yeah, so it's worth that investment, even though it may

628
00:28:56,880 --> 00:28:59,320
Speaker 2: be a little bit of a it is like it's

629
00:28:59,360 --> 00:29:01,760
Speaker 2: an invest So yes, at the end of the day,

630
00:29:01,800 --> 00:29:04,400
Speaker 2: you are putting your money into something and you are

631
00:29:04,480 --> 00:29:07,360
Speaker 2: paying someone to make those decisions because you are anticipating

632
00:29:07,440 --> 00:29:10,240
Speaker 2: better returns than you could get on your own. Like

633
00:29:10,400 --> 00:29:12,880
Speaker 2: we're not just saying, oh, go pay your financial advisor

634
00:29:12,920 --> 00:29:15,400
Speaker 2: because I'm trying to help the industry get more money.

635
00:29:15,600 --> 00:29:20,360
Speaker 4: That is absolutely not it. Financial advisors work really hard

636
00:29:20,640 --> 00:29:24,040
Speaker 4: to make sure that your portfolio is performing really well,

637
00:29:24,160 --> 00:29:27,160
Speaker 4: is aligned to your goals, your values, is well diversified,

638
00:29:27,240 --> 00:29:29,560
Speaker 4: and going to help you get to retirement, which at

639
00:29:29,600 --> 00:29:31,640
Speaker 4: the end of the day is what we're all trying

640
00:29:31,680 --> 00:29:34,120
Speaker 4: to do, if you just steal it down, We're all

641
00:29:34,120 --> 00:29:36,360
Speaker 4: getting older, we all need to make sure that we're

642
00:29:36,360 --> 00:29:39,600
Speaker 4: looking after future you and the whole goal of financial

643
00:29:39,600 --> 00:29:42,320
Speaker 4: advice is to get you to a safe and comfortable retirement,

644
00:29:42,640 --> 00:29:44,320
Speaker 4: as un sexy as that sounds.

645
00:29:44,640 --> 00:29:48,480
Speaker 2: So how regularly should we be topping up our investment

646
00:29:48,520 --> 00:29:51,080
Speaker 2: folio if you like? Is that something? Is that advice

647
00:29:51,120 --> 00:29:53,640
Speaker 2: that would come from our advisor if we did go

648
00:29:53,720 --> 00:29:55,680
Speaker 2: down that line? Yeah, what do we doing?

649
00:29:56,280 --> 00:30:00,800
Speaker 4: Consistency is key here, So to be more specif I

650
00:30:00,840 --> 00:30:03,120
Speaker 4: would say that monthly contributions if you can afford them,

651
00:30:03,200 --> 00:30:06,360
Speaker 4: are great, but lots of people do tend to contribute

652
00:30:06,360 --> 00:30:08,440
Speaker 4: just when they get paid, so it goes straight into

653
00:30:08,440 --> 00:30:11,600
Speaker 4: their share portfolio other than their savings, and it's all automated.

654
00:30:11,840 --> 00:30:13,200
Speaker 4: Often that's a better way to do it as well,

655
00:30:13,240 --> 00:30:16,400
Speaker 4: because you don't feel the hit as much. But the

656
00:30:16,520 --> 00:30:18,680
Speaker 4: term that I want you to understand here is called

657
00:30:18,720 --> 00:30:22,880
Speaker 4: dollar cost averaging. So many sexy terms clients, right, And

658
00:30:23,040 --> 00:30:27,240
Speaker 4: that is a simple strategy of making regular incremental investments

659
00:30:27,320 --> 00:30:29,760
Speaker 4: over a long period of time, as opposed to lump

660
00:30:29,800 --> 00:30:32,360
Speaker 4: some investment. Now, the reason we would want to do

661
00:30:32,440 --> 00:30:35,280
Speaker 4: that is because it turns out we are not psychic

662
00:30:35,360 --> 00:30:38,840
Speaker 4: Georgia and we can't predict the market. If we could,

663
00:30:38,920 --> 00:30:42,000
Speaker 4: I would have invested in bitcoin because I would have

664
00:30:42,120 --> 00:30:44,040
Speaker 4: been able to know when to get in and when

665
00:30:44,080 --> 00:30:46,000
Speaker 4: to get out. But it turns out we don't know

666
00:30:46,360 --> 00:30:49,040
Speaker 4: how to do that. So our next best option is

667
00:30:49,080 --> 00:30:52,240
Speaker 4: dollar cost averaging, and that means putting our money into

668
00:30:52,320 --> 00:30:55,000
Speaker 4: the market regularly so that we get exposure to the

669
00:30:55,120 --> 00:30:58,760
Speaker 4: ups and downs consistently, instead of putting all our money

670
00:30:58,760 --> 00:30:59,880
Speaker 4: in at the start of January and.

671
00:31:00,120 --> 00:31:00,800
Speaker 3: Watching the market.

672
00:31:00,880 --> 00:31:02,920
Speaker 4: Yeah, the rest of you go up and down and

673
00:31:02,960 --> 00:31:06,720
Speaker 4: we don't get exposure to those market fluctuations. So a

674
00:31:06,760 --> 00:31:10,320
Speaker 4: good example is we might have one dollar always bring

675
00:31:10,360 --> 00:31:12,000
Speaker 4: it down to like really low levels.

676
00:31:11,800 --> 00:31:14,080
Speaker 3: Because I feel like it's better, it's easier to to understand.

677
00:31:14,160 --> 00:31:17,360
Speaker 4: Right, So you invest one dollar today and you get

678
00:31:17,400 --> 00:31:21,000
Speaker 4: ten shares and you go great, fantastic, But then tomorrow

679
00:31:21,200 --> 00:31:24,440
Speaker 4: you also invest a dollar, but the markets down, so

680
00:31:24,560 --> 00:31:27,800
Speaker 4: shares are actually worth more, so you might get fifteen chares.

681
00:31:28,280 --> 00:31:31,800
Speaker 4: And I feel like that example helps you understand that

682
00:31:32,120 --> 00:31:34,440
Speaker 4: you might on some days get more for your money,

683
00:31:34,800 --> 00:31:37,440
Speaker 4: and some days it might be up might you know,

684
00:31:37,560 --> 00:31:39,280
Speaker 4: things might be more expensive, so you might.

685
00:31:39,200 --> 00:31:40,040
Speaker 3: Get seven chares.

686
00:31:40,400 --> 00:31:44,880
Speaker 4: But by doing that, you are actually averaging your portfolio

687
00:31:45,040 --> 00:31:47,320
Speaker 4: and what you're putting into the market in line with

688
00:31:47,440 --> 00:31:51,280
Speaker 4: the market, so that you're getting those fluctuations reflected in

689
00:31:51,320 --> 00:31:53,680
Speaker 4: your portfolio. So on average, you'll end up in a

690
00:31:53,720 --> 00:31:56,920
Speaker 4: better position than having just purchased everything on the one day.

691
00:31:57,360 --> 00:32:00,840
Speaker 4: And as a financial advisor, even when clients come to

692
00:32:00,880 --> 00:32:03,560
Speaker 4: me so Georgia, as you would know, I do deal

693
00:32:03,600 --> 00:32:06,960
Speaker 4: with large sum investment in my financial advice business seller,

694
00:32:07,400 --> 00:32:09,800
Speaker 4: A lot of clients have either really large sums of

695
00:32:09,840 --> 00:32:13,240
Speaker 4: money or inheritance, and it's essentially.

696
00:32:13,120 --> 00:32:14,200
Speaker 3: My specialist area.

697
00:32:14,240 --> 00:32:17,480
Speaker 4: I would say, but I've never taken a client's, you know,

698
00:32:17,680 --> 00:32:20,640
Speaker 4: lump some investment of one hundred thousand dollars or three

699
00:32:20,720 --> 00:32:22,600
Speaker 4: hundred thousand dollars and put it into the market on

700
00:32:22,600 --> 00:32:22,960
Speaker 4: one day.

701
00:32:23,160 --> 00:32:24,920
Speaker 3: Okay, that's crazy talk, Like.

702
00:32:24,920 --> 00:32:26,880
Speaker 4: Even if you've got the money, you don't do that.

703
00:32:27,240 --> 00:32:29,520
Speaker 4: You droop it in so that you make sure that

704
00:32:29,600 --> 00:32:31,840
Speaker 4: you're making use of dollar cost averaging.

705
00:32:33,320 --> 00:32:35,240
Speaker 2: See I didn't know that until right now.

706
00:32:35,320 --> 00:32:38,160
Speaker 4: So it's literally the most effective when market's on a

707
00:32:38,160 --> 00:32:41,680
Speaker 4: downward trend. So that kind of makes sense because you're

708
00:32:41,720 --> 00:32:44,480
Speaker 4: always making use of getting more for your money. But

709
00:32:44,640 --> 00:32:47,160
Speaker 4: in a rising market, which by the way, we call

710
00:32:47,240 --> 00:32:51,960
Speaker 4: a bullmarket bull bullmarket like cow cow like bull market

711
00:32:52,160 --> 00:32:54,880
Speaker 4: because it's aggressive showing up and that's why the bullet

712
00:32:55,200 --> 00:32:56,440
Speaker 4: Have you seen that statue?

713
00:32:56,800 --> 00:32:58,440
Speaker 2: Which one you wouldn't have flat hated?

714
00:32:58,800 --> 00:33:01,880
Speaker 3: Am I the only one that googles like Wall Street

715
00:33:01,960 --> 00:33:02,360
Speaker 3: looks like?

716
00:33:02,560 --> 00:33:03,920
Speaker 2: Oh no, I feel like I've seen it on the

717
00:33:03,920 --> 00:33:04,600
Speaker 2: Wolf of Wall Street?

718
00:33:04,920 --> 00:33:07,120
Speaker 3: Yeah right, the ball ye yeah, because the bull market. Right.

719
00:33:07,360 --> 00:33:11,200
Speaker 4: Anyway, a dollar cost averaging in a rising market, so

720
00:33:11,400 --> 00:33:14,160
Speaker 4: or what we're talking about a bull market.

721
00:33:14,080 --> 00:33:16,800
Speaker 3: A dollar cost averaging strategy is not as effective.

722
00:33:16,920 --> 00:33:19,480
Speaker 4: But at the same time, if we are investing over

723
00:33:19,480 --> 00:33:21,640
Speaker 4: the long term, it'll all average out and it won't

724
00:33:21,680 --> 00:33:24,120
Speaker 4: matter that much. So at the end of the day,

725
00:33:24,200 --> 00:33:27,520
Speaker 4: dollar cost averaging really important to understand because that's why

726
00:33:27,560 --> 00:33:30,600
Speaker 4: we want to invest consistently. It's not me going oh yeah,

727
00:33:30,720 --> 00:33:33,720
Speaker 4: just invest consistently. It's a good idea, Like there's as logic,

728
00:33:33,800 --> 00:33:36,000
Speaker 4: strategy and logic behind it wonderful.

729
00:33:36,120 --> 00:33:39,840
Speaker 2: Okay, I feel like we've touched on this next question recently,

730
00:33:39,880 --> 00:33:41,840
Speaker 2: but I'm gonna ask you a get anyway, how do

731
00:33:41,920 --> 00:33:44,160
Speaker 2: we stay on top of our shares?

732
00:33:44,360 --> 00:33:46,360
Speaker 4: There are a number of different ways to a spreadsheet.

733
00:33:46,520 --> 00:33:49,000
Speaker 4: You could have a spreadsheet that requires a lot of

734
00:33:49,160 --> 00:33:53,360
Speaker 4: manual implementation of copying and pasting on a daily basis,

735
00:33:53,680 --> 00:33:55,720
Speaker 4: or you could get a really fancy one that you

736
00:33:55,840 --> 00:33:58,840
Speaker 4: link up that just does it automatically. Cannot recommend though,

737
00:33:58,880 --> 00:34:02,000
Speaker 4: because they break often. Oh, there are apps out there

738
00:34:02,000 --> 00:34:05,200
Speaker 4: that make life much easier, like Investments, doc lit and

739
00:34:05,240 --> 00:34:07,600
Speaker 4: share site reader, which can help you keep an eye

740
00:34:07,640 --> 00:34:10,120
Speaker 4: and on everything and track it. If you are with

741
00:34:10,160 --> 00:34:13,640
Speaker 4: a financial advisor, they will have their own industry platform

742
00:34:13,920 --> 00:34:16,040
Speaker 4: that is usually wholesale, like as I was saying the

743
00:34:16,120 --> 00:34:18,759
Speaker 4: other week, I have one, but you can't access it

744
00:34:18,840 --> 00:34:20,640
Speaker 4: unless you have a financial advisor.

745
00:34:20,719 --> 00:34:21,360
Speaker 3: I am sorry.

746
00:34:21,600 --> 00:34:23,520
Speaker 4: You can also track how your investments are going by

747
00:34:23,560 --> 00:34:27,000
Speaker 4: subscribing to asseic and you'll get regular updates and what

748
00:34:27,040 --> 00:34:29,520
Speaker 4: companies are doing if you're invested in them or if

749
00:34:29,520 --> 00:34:32,640
Speaker 4: they lodge new information, which I think is really important.

750
00:34:33,040 --> 00:34:35,960
Speaker 4: But most platforms will give you a log in so

751
00:34:36,000 --> 00:34:37,960
Speaker 4: that you can see what you're investing in. You don't

752
00:34:38,000 --> 00:34:40,480
Speaker 4: just put your money into something and then have no visibility.

753
00:34:40,520 --> 00:34:44,160
Speaker 4: Like whatever platform you purchase your asset on, you will

754
00:34:44,200 --> 00:34:46,919
Speaker 4: be able to see your asset on, but you won't

755
00:34:46,920 --> 00:34:49,040
Speaker 4: be able to see every single asset you have. Like

756
00:34:49,080 --> 00:34:51,839
Speaker 4: there isn't one place that is going to pull your

757
00:34:51,880 --> 00:34:55,279
Speaker 4: micro investing platforms together, and then you're you know your

758
00:34:55,320 --> 00:34:57,840
Speaker 4: ETF if you've purchased it directly, and then you know

759
00:34:57,840 --> 00:34:59,879
Speaker 4: a couple of shares, Like that's not going to happen

760
00:35:00,040 --> 00:35:03,160
Speaker 4: unless you have a financial advisor who has a wholesale platform.

761
00:35:03,520 --> 00:35:06,000
Speaker 3: But in their future, it turns out I'm working on

762
00:35:06,080 --> 00:35:09,280
Speaker 3: yeah something, come something something from my friends.

763
00:35:09,880 --> 00:35:12,759
Speaker 2: Okay, now we have gone through so much already. I

764
00:35:12,800 --> 00:35:16,920
Speaker 2: am learning lots. I feel like it is. It's a

765
00:35:17,040 --> 00:35:19,840
Speaker 2: mighty longap. Sorry, I'm sorry, but the good news is

766
00:35:19,880 --> 00:35:21,320
Speaker 2: we're only halfway through.

767
00:35:21,719 --> 00:35:24,160
Speaker 4: No, no, we'll have to speed it up. Maybe we

768
00:35:24,160 --> 00:35:26,360
Speaker 4: would break this into another episode because this is wild.

769
00:35:26,560 --> 00:35:29,120
Speaker 2: Yeah, it is wild. Before we move on to the

770
00:35:29,120 --> 00:35:31,560
Speaker 2: second part of today's show, though, guys, here's a quick

771
00:35:31,600 --> 00:35:48,040
Speaker 2: little word from the partners of today's show. Now, if

772
00:35:48,080 --> 00:35:51,080
Speaker 2: you guys are loving this chat as much as Victoria

773
00:35:51,320 --> 00:35:55,560
Speaker 2: to Vine is, and it is a lot. And you're

774
00:35:55,560 --> 00:35:57,400
Speaker 2: feeling like you do need a little more Shoes on

775
00:35:57,440 --> 00:35:59,480
Speaker 2: the Money in your life, then please don't forget to

776
00:35:59,560 --> 00:36:04,160
Speaker 2: join our glorious Facebook group. It's an incredibly inclusive and

777
00:36:04,280 --> 00:36:08,319
Speaker 2: open minded community, pactful with insightful money conversations that we're

778
00:36:08,360 --> 00:36:12,200
Speaker 2: having literally every day. We're also on Instagram, TikTok, YouTube

779
00:36:12,600 --> 00:36:14,720
Speaker 2: newsletter just plug Plug Plus.

780
00:36:14,719 --> 00:36:17,560
Speaker 4: You say the newsletter really flippantly, but like, that's arguably

781
00:36:17,560 --> 00:36:19,800
Speaker 4: one of my favorite pieces of content is Shees on

782
00:36:19,840 --> 00:36:21,960
Speaker 4: the Money puts out each and every single week, like

783
00:36:22,239 --> 00:36:24,640
Speaker 4: it is wild. I never know what to expect with it.

784
00:36:25,080 --> 00:36:28,760
Speaker 4: If you aren't on the newsletter yet, I would absolutely subscribe.

785
00:36:28,800 --> 00:36:31,040
Speaker 4: I'll actually put the link in our show notes this

786
00:36:31,120 --> 00:36:32,879
Speaker 4: week so that you can join it, because I feel

787
00:36:32,880 --> 00:36:35,480
Speaker 4: like we've dropped that off recently. But at the end

788
00:36:35,520 --> 00:36:38,560
Speaker 4: of the day, George writes an epic Friday rap of

789
00:36:38,600 --> 00:36:41,480
Speaker 4: what's happened in our community, what's happened on the pods,

790
00:36:41,520 --> 00:36:44,880
Speaker 4: what is going on with us? And it's always incredibly

791
00:36:44,920 --> 00:36:47,080
Speaker 4: sassy and satirical, So jump on that.

792
00:36:47,400 --> 00:36:50,000
Speaker 2: Yeah, that's pretty loose guys. Now let's get back into

793
00:36:50,040 --> 00:36:52,279
Speaker 2: the show. So be what if we're in debt or

794
00:36:52,360 --> 00:36:55,880
Speaker 2: don't have an emergency fund, should we be investing?

795
00:36:55,960 --> 00:36:58,000
Speaker 3: Yeah, really bad idea to be investing in your favor

796
00:36:58,120 --> 00:36:58,479
Speaker 3: in debt.

797
00:36:58,680 --> 00:37:01,480
Speaker 4: I'm gonna be really blunt about that and say, if

798
00:37:01,520 --> 00:37:04,480
Speaker 4: you're in debt, obviously we're not talking about hex debt

799
00:37:04,560 --> 00:37:05,399
Speaker 4: or your mortgage here.

800
00:37:05,400 --> 00:37:06,880
Speaker 3: If you are in personal.

801
00:37:06,520 --> 00:37:10,000
Speaker 4: Debt, have a credit card, have after pay like, your

802
00:37:10,000 --> 00:37:12,719
Speaker 4: priority is not buying shares, my friend, because you need

803
00:37:12,760 --> 00:37:15,239
Speaker 4: to pay down your debt first. That is the most

804
00:37:15,320 --> 00:37:18,720
Speaker 4: important thing. Because the longer that you leave your debt paid,

805
00:37:19,040 --> 00:37:20,960
Speaker 4: the more interest you're accruing, the more you need to

806
00:37:21,000 --> 00:37:24,120
Speaker 4: pay off, and the more backwards you're going financially. So

807
00:37:24,320 --> 00:37:26,520
Speaker 4: I'm just being blunt. Pay off your debt, my friend.

808
00:37:26,560 --> 00:37:29,800
Speaker 4: If you've got personal debt before you even consider starting

809
00:37:29,840 --> 00:37:32,560
Speaker 4: to invest, which is question I get all the time,

810
00:37:32,920 --> 00:37:35,400
Speaker 4: but I want it to become a no brainer for you. Guys,

811
00:37:35,680 --> 00:37:39,319
Speaker 4: you've got personal debt, you are not investing. Additionally, if

812
00:37:39,360 --> 00:37:42,440
Speaker 4: you do not have an emergency fund set aside for

813
00:37:42,800 --> 00:37:45,320
Speaker 4: any things that pop up, I want that to be

814
00:37:45,440 --> 00:37:48,279
Speaker 4: your priority before you invest as well. Because at the

815
00:37:48,400 --> 00:37:51,120
Speaker 4: end of the day, if something does pop up and

816
00:37:51,200 --> 00:37:53,719
Speaker 4: you are forced into selling an investment, that is a

817
00:37:53,840 --> 00:37:57,040
Speaker 4: terrible thing to happen to you. Obviously, we're really grateful

818
00:37:57,080 --> 00:37:59,439
Speaker 4: that we can sell that investment, but I don't want

819
00:37:59,480 --> 00:38:02,040
Speaker 4: you to be full that So work out what your

820
00:38:02,080 --> 00:38:05,520
Speaker 4: emergency fund needs to be to set aside to make

821
00:38:05,560 --> 00:38:09,560
Speaker 4: you feel safe and comfortable and cover anything. Then go

822
00:38:09,640 --> 00:38:12,319
Speaker 4: from there, then you can start investing. So what I

823
00:38:12,360 --> 00:38:15,000
Speaker 4: want you to do is start building up an emergency fund,

824
00:38:15,120 --> 00:38:18,600
Speaker 4: even if you have some personal debt, put that to

825
00:38:18,680 --> 00:38:22,160
Speaker 4: the side so that you can feel financial freedom even

826
00:38:22,160 --> 00:38:23,120
Speaker 4: though you've got debt.

827
00:38:23,400 --> 00:38:28,640
Speaker 2: Yeah, great advice. Yeah, that's good already. The diversification is

828
00:38:28,719 --> 00:38:30,799
Speaker 2: a big part of what we talk about at Cheese

829
00:38:30,800 --> 00:38:32,839
Speaker 2: on the Money. How do we actually make sure our

830
00:38:32,880 --> 00:38:34,480
Speaker 2: share folio is diversified.

831
00:38:35,160 --> 00:38:37,719
Speaker 4: Diversification is a massive part of what we talk about

832
00:38:37,760 --> 00:38:39,600
Speaker 4: it She's on the Money because it is a tool

833
00:38:39,680 --> 00:38:42,279
Speaker 4: that we use. So it is a tool because it

834
00:38:42,360 --> 00:38:46,080
Speaker 4: helps us lower our risk. And rolling our risk when

835
00:38:46,160 --> 00:38:49,279
Speaker 4: investing is obviously a very good idea because the less

836
00:38:49,360 --> 00:38:52,480
Speaker 4: risk that we carry, the more consistent we can be

837
00:38:52,600 --> 00:38:55,080
Speaker 4: in creating wealth for the long term. So if we

838
00:38:55,160 --> 00:38:58,080
Speaker 4: have a diverse share portfolio with shares from lots of

839
00:38:58,080 --> 00:39:01,680
Speaker 4: different industries rather than just one company or in one sector.

840
00:39:02,000 --> 00:39:04,719
Speaker 4: The risk of essentially losing a lot of money in

841
00:39:04,760 --> 00:39:07,440
Speaker 4: one day because the value of our portfolio would decrease

842
00:39:08,400 --> 00:39:11,880
Speaker 4: is greatly reduced. And that happens because we're not putting

843
00:39:11,920 --> 00:39:13,840
Speaker 4: all our eggs in one basket. And I say that

844
00:39:13,880 --> 00:39:16,280
Speaker 4: all the time, but it's the best way to visualize.

845
00:39:16,320 --> 00:39:17,000
Speaker 3: It's the most sense.

846
00:39:17,000 --> 00:39:18,440
Speaker 4: Like if you had a basket and it was full

847
00:39:18,480 --> 00:39:20,480
Speaker 4: of eggs and you dropped it, all your eggs would break.

848
00:39:20,640 --> 00:39:22,600
Speaker 4: But if you had lots of baskets with lots of

849
00:39:22,640 --> 00:39:24,920
Speaker 4: different eggs in it, maybe you got duck eggs, maybe

850
00:39:24,960 --> 00:39:25,839
Speaker 4: you got you.

851
00:39:25,760 --> 00:39:28,320
Speaker 3: Know, some chicken eggs, maybe you have pigeon eggs.

852
00:39:28,360 --> 00:39:30,120
Speaker 2: I don't know they would have eggs.

853
00:39:30,120 --> 00:39:32,359
Speaker 3: I'm sure they do that because oh my god, did

854
00:39:32,400 --> 00:39:32,960
Speaker 3: I just say that?

855
00:39:33,120 --> 00:39:33,799
Speaker 2: You did? You? Did?

856
00:39:33,880 --> 00:39:34,400
Speaker 3: You keeping it?

857
00:39:34,719 --> 00:39:36,680
Speaker 4: But you've got lots of different eggs in lots of

858
00:39:36,680 --> 00:39:39,480
Speaker 4: different baskets and you drop one, Well, it's all good.

859
00:39:39,560 --> 00:39:42,600
Speaker 4: You've got a whole heap of baskets. Maybe that egg

860
00:39:42,600 --> 00:39:44,920
Speaker 4: will be fixed soon and there'll be two eggs in there.

861
00:39:44,920 --> 00:39:45,880
Speaker 3: When you pick it up again.

862
00:39:46,160 --> 00:39:46,920
Speaker 2: Stunning from you.

863
00:39:47,200 --> 00:39:48,719
Speaker 3: It's not a good example, but I hope.

864
00:39:48,840 --> 00:39:50,000
Speaker 2: Yeah, it's a good analogy.

865
00:39:50,400 --> 00:39:51,520
Speaker 3: It'll do. It's loose.

866
00:39:51,719 --> 00:39:54,640
Speaker 4: Yeah, I feel like this episode is really starting to dwindle.

867
00:39:55,840 --> 00:39:58,879
Speaker 2: It's been going for too long now. Ashlyn in our

868
00:39:58,880 --> 00:40:03,160
Speaker 2: Facebook group asked question about investing while you have a mortgage, which,

869
00:40:03,360 --> 00:40:05,600
Speaker 2: funnily enough, Victoria deve, I don't know you're doing it

870
00:40:05,600 --> 00:40:05,839
Speaker 2: at the.

871
00:40:05,760 --> 00:40:06,399
Speaker 3: Moment, I am.

872
00:40:06,480 --> 00:40:09,239
Speaker 2: I'm fresh to this, so well, how do you balance it?

873
00:40:09,280 --> 00:40:11,720
Speaker 2: Is it mortgage first and then it's both?

874
00:40:11,840 --> 00:40:15,000
Speaker 4: So for me because interest rates are so low at

875
00:40:15,040 --> 00:40:17,399
Speaker 4: the moment, and I have a number two in front

876
00:40:17,440 --> 00:40:20,120
Speaker 4: of my mortgage kind of cool, Like what do you mean?

877
00:40:20,719 --> 00:40:22,760
Speaker 2: As in, I have like an.

878
00:40:22,640 --> 00:40:25,800
Speaker 4: Interest rate that starts with two, So like I'm paying

879
00:40:25,920 --> 00:40:28,319
Speaker 4: oh I got eight percent? Yeah, okay, So like I'm

880
00:40:28,320 --> 00:40:31,239
Speaker 4: paying less than three percent on my mortgage right now,

881
00:40:31,840 --> 00:40:35,719
Speaker 4: and because I'm anticipating higher returns in my share market,

882
00:40:35,960 --> 00:40:40,680
Speaker 4: I'm paying down debt, but I'm also prioritizing investment. And

883
00:40:40,719 --> 00:40:42,880
Speaker 4: the way I've worked that out is just like, okay,

884
00:40:42,960 --> 00:40:45,080
Speaker 4: making sure that I'm obviously paying off my mortgage in

885
00:40:45,080 --> 00:40:48,280
Speaker 4: a reasonable period of time, but I'm also putting additional

886
00:40:48,320 --> 00:40:51,720
Speaker 4: funds into a share portfolio instead of smashing down my mortgage,

887
00:40:51,719 --> 00:40:53,800
Speaker 4: which a lot of people are planning to do. And

888
00:40:53,880 --> 00:40:55,880
Speaker 4: the reason I'm doing that is because I did the

889
00:40:55,960 --> 00:40:58,759
Speaker 4: numbers and worked out that I'll be in in thirty

890
00:40:58,800 --> 00:41:01,200
Speaker 4: years when my mortgage ins, which this really long time away.

891
00:41:02,120 --> 00:41:04,839
Speaker 4: When my mortgage ends, I'll be in a better financial

892
00:41:04,920 --> 00:41:08,680
Speaker 4: position having spent that entire thirty years to pay off

893
00:41:08,719 --> 00:41:13,000
Speaker 4: my mortgage and invest in shares than had I broken

894
00:41:13,040 --> 00:41:15,160
Speaker 4: it down and paid it off earlier, because the interest

895
00:41:15,239 --> 00:41:18,080
Speaker 4: rates are so good at the moment. Now, if the

896
00:41:18,120 --> 00:41:21,720
Speaker 4: interest rates change, I need to redo the numbers, because

897
00:41:22,080 --> 00:41:24,239
Speaker 4: the only reason this is going to work for me

898
00:41:24,320 --> 00:41:26,960
Speaker 4: right now is because my money that I have borrowed

899
00:41:27,040 --> 00:41:29,680
Speaker 4: in my mortgage is so cheap in comparison to the

900
00:41:29,719 --> 00:41:33,239
Speaker 4: returns I'll get in the share market, Whereas if you

901
00:41:33,239 --> 00:41:35,120
Speaker 4: know they were like for like, I would then be

902
00:41:35,160 --> 00:41:36,960
Speaker 4: making a more conservative decision.

903
00:41:37,719 --> 00:41:38,759
Speaker 3: But that is personal.

904
00:41:38,920 --> 00:41:40,759
Speaker 4: That is the way I am doing it, and that

905
00:41:40,840 --> 00:41:42,680
Speaker 4: is why I'm answering it that way, because I cannot

906
00:41:42,719 --> 00:41:45,960
Speaker 4: tell you personally what to do, but I would definitely

907
00:41:46,040 --> 00:41:49,600
Speaker 4: check out what your plan is in the future. So

908
00:41:49,680 --> 00:41:53,080
Speaker 4: go back to that money smart calculator, which I obviously adore,

909
00:41:53,480 --> 00:41:56,320
Speaker 4: and put in what you might be putting as additional

910
00:41:56,360 --> 00:42:00,279
Speaker 4: payments towards your mortgage as an investment, and see that

911
00:42:00,320 --> 00:42:02,640
Speaker 4: would look like over the life of your loan, do

912
00:42:02,760 --> 00:42:05,400
Speaker 4: you end up in a better financial position by investing

913
00:42:05,400 --> 00:42:07,120
Speaker 4: it or do you end up in a better financial

914
00:42:07,120 --> 00:42:08,880
Speaker 4: position by paying down your mortgage.

915
00:42:09,200 --> 00:42:10,759
Speaker 3: Only you can make that decision for.

916
00:42:10,719 --> 00:42:15,680
Speaker 2: You, Love well said OKAYV, we're getting to the tail end.

917
00:42:15,840 --> 00:42:19,200
Speaker 2: But before we wrap for today, can you please round

918
00:42:19,239 --> 00:42:21,000
Speaker 2: us out with a word of warning because we've heard

919
00:42:21,040 --> 00:42:24,000
Speaker 2: all of the marvelous seeing me about investing, But what

920
00:42:24,040 --> 00:42:25,920
Speaker 2: are the biggest mistakes you see people making.

921
00:42:26,160 --> 00:42:28,399
Speaker 4: I think one of the biggest mistakes is people being

922
00:42:28,440 --> 00:42:31,600
Speaker 4: really scared of investing and saying that they'll just start later.

923
00:42:32,200 --> 00:42:36,600
Speaker 4: But more seriously, people not diversifying their portfolio, buying shares

924
00:42:36,719 --> 00:42:40,040
Speaker 4: or buying assets that they see as trendy or feel

925
00:42:40,080 --> 00:42:41,160
Speaker 4: are safe because well.

926
00:42:40,960 --> 00:42:42,000
Speaker 3: Everybody's doing it.

927
00:42:42,080 --> 00:42:45,399
Speaker 4: Yes, but everybody is buying bitcoin. Everybody is getting into

928
00:42:45,440 --> 00:42:47,160
Speaker 4: crypto like it must be okay.

929
00:42:47,280 --> 00:42:47,520
Speaker 3: Right.

930
00:42:47,840 --> 00:42:49,919
Speaker 4: That does not mean it is okay. That just means

931
00:42:49,920 --> 00:42:53,840
Speaker 4: that stax on mentality has happened. And that's how bullying happens,

932
00:42:53,840 --> 00:42:55,920
Speaker 4: and we don't like that. So at the end of

933
00:42:55,920 --> 00:42:57,880
Speaker 4: the day, I think it's about making a decision that

934
00:42:57,960 --> 00:42:59,719
Speaker 4: is in line with your risk profile, that is in

935
00:42:59,760 --> 00:43:01,880
Speaker 4: line with your values and your goals. I feel like

936
00:43:01,920 --> 00:43:04,200
Speaker 4: a broken record when I say that, but I'm going

937
00:43:04,239 --> 00:43:05,040
Speaker 4: to keep saying.

938
00:43:04,840 --> 00:43:06,440
Speaker 3: It, and I'm not sorry about it.

939
00:43:06,680 --> 00:43:11,200
Speaker 4: But I also think something that people do wrong, and

940
00:43:11,640 --> 00:43:15,640
Speaker 4: this really grinds my gears because I feel like I

941
00:43:15,680 --> 00:43:18,160
Speaker 4: try so hard to tell you that investment is a

942
00:43:18,239 --> 00:43:21,439
Speaker 4: long term game. Is they expect too much too soon,

943
00:43:21,760 --> 00:43:23,799
Speaker 4: and they pull out their money because they're like, well,

944
00:43:23,880 --> 00:43:27,279
Speaker 4: I started investing in my micro investing platform in June

945
00:43:27,360 --> 00:43:29,759
Speaker 4: last year and then it went down, so I pulled

946
00:43:29,800 --> 00:43:32,200
Speaker 4: it out in September. And I'm like, well, of course

947
00:43:32,200 --> 00:43:34,880
Speaker 4: it did, because you're just feeling the market fluctuations and

948
00:43:34,920 --> 00:43:37,879
Speaker 4: you haven't ridden it out for the minimum five years

949
00:43:37,880 --> 00:43:40,560
Speaker 4: that I'm telling you to invest for, so therefore you've

950
00:43:40,560 --> 00:43:43,840
Speaker 4: never seen the benefits. Whereas on the opposite, some people

951
00:43:43,880 --> 00:43:46,600
Speaker 4: can start investing and just by chance, they started investing

952
00:43:46,680 --> 00:43:49,000
Speaker 4: at a really good time in the share market, and

953
00:43:49,040 --> 00:43:52,000
Speaker 4: they saw really great returns really quickly, and then they

954
00:43:52,040 --> 00:43:54,640
Speaker 4: come to expect those returns so over the life of

955
00:43:54,719 --> 00:43:58,160
Speaker 4: their investment, when that's just not true either. So I

956
00:43:58,200 --> 00:44:01,360
Speaker 4: think you really need to understand them market before investing,

957
00:44:01,719 --> 00:44:04,600
Speaker 4: because you'll see it and go, hold on, I put

958
00:44:04,680 --> 00:44:07,040
Speaker 4: fifty dollars in there, and now it's worth thirty one.

959
00:44:07,160 --> 00:44:09,560
Speaker 3: Why is it gone? And you go, well, that's because

960
00:44:09,600 --> 00:44:11,839
Speaker 3: you don't understand what's going on. That's not the end

961
00:44:11,880 --> 00:44:12,319
Speaker 3: of the day.

962
00:44:12,360 --> 00:44:14,680
Speaker 4: You are only ever losing money in the share market

963
00:44:14,719 --> 00:44:17,520
Speaker 4: if you sell your shares at a lesser value. What

964
00:44:17,680 --> 00:44:19,759
Speaker 4: is written on paper, what is showing up in your

965
00:44:19,760 --> 00:44:21,839
Speaker 4: app is the valuation.

966
00:44:21,840 --> 00:44:25,080
Speaker 3: Not what you own. You do not own less.

967
00:44:24,800 --> 00:44:27,200
Speaker 4: Shares because they're valued it less. You still own the

968
00:44:27,200 --> 00:44:29,760
Speaker 4: same amount of shares. They're just valued at less today,

969
00:44:29,920 --> 00:44:33,440
Speaker 4: and hopefully, because you've picked well have really good diversification,

970
00:44:33,640 --> 00:44:35,680
Speaker 4: over time there will be worth more and they will

971
00:44:35,680 --> 00:44:36,719
Speaker 4: increase in value.

972
00:44:37,239 --> 00:44:40,080
Speaker 2: My goodness, Well, there has been so much to take

973
00:44:40,120 --> 00:44:42,680
Speaker 2: in from today's episode. It might be worth listening to

974
00:44:42,719 --> 00:44:45,360
Speaker 2: it a couple of times if you can handle listening

975
00:44:45,440 --> 00:44:46,120
Speaker 2: to V ANDNG.

976
00:44:46,560 --> 00:44:50,719
Speaker 3: Sorry sorry, but in a nuts jobs don't get funnier,

977
00:44:51,320 --> 00:44:52,080
Speaker 3: nor do mine.

978
00:44:52,520 --> 00:44:55,960
Speaker 2: In a nutshell. Investing in shares yields a pretty solid return.

979
00:44:56,360 --> 00:44:59,200
Speaker 2: About five percent is what we're saying is a safe assumption.

980
00:44:59,560 --> 00:45:02,239
Speaker 3: But you know, let's base our lives off that, because.

981
00:45:01,920 --> 00:45:05,000
Speaker 4: Again we won't find ourselves disappointed exactly right.

982
00:45:05,400 --> 00:45:08,520
Speaker 2: We also need to be establishing our risk profiles before

983
00:45:08,520 --> 00:45:11,120
Speaker 2: we get started and figuring out those goals, and of

984
00:45:11,160 --> 00:45:14,680
Speaker 2: course diversification is king. And also the time to start

985
00:45:14,719 --> 00:45:17,920
Speaker 2: is pretty much today. If you are if you're ready.

986
00:45:17,680 --> 00:45:20,520
Speaker 4: And if you're ready, and if we look at the statistics,

987
00:45:20,560 --> 00:45:23,400
Speaker 4: because stats girl across the table from me, she loves this.

988
00:45:24,040 --> 00:45:27,040
Speaker 4: No one has ever lost in the share market when

989
00:45:27,080 --> 00:45:31,480
Speaker 4: they have invested for thirty years or more, not one person, nobody.

990
00:45:31,560 --> 00:45:34,480
Speaker 4: Look at the stats you've like, if you are able

991
00:45:34,520 --> 00:45:37,799
Speaker 4: to commit to the long term, historically, no one has

992
00:45:37,800 --> 00:45:39,960
Speaker 4: ever lost. And I think that's really important to take

993
00:45:40,000 --> 00:45:41,040
Speaker 4: away from us episode.

994
00:45:41,080 --> 00:45:43,400
Speaker 2: That's a great start to our end today's show. V.

995
00:45:44,400 --> 00:45:46,440
Speaker 3: Before we head off, we'd like to acknowledge and pay

996
00:45:46,480 --> 00:45:50,000
Speaker 3: respects to Australia's Aboriginal and torrest Right islander people's the

997
00:45:50,080 --> 00:45:53,400
Speaker 3: traditional custodians of the lands, the waterways and the skies

998
00:45:53,440 --> 00:45:55,600
Speaker 3: all across Australia. We thank you for.

999
00:45:55,560 --> 00:45:57,480
Speaker 4: Sharing and for caring on the land which we are

1000
00:45:57,520 --> 00:46:00,279
Speaker 4: able to learn. We pay our respects to elders past

1001
00:46:00,320 --> 00:46:02,840
Speaker 4: and present, and we share our friendship and our kindness.

1002
00:46:03,680 --> 00:46:06,360
Speaker 2: And please remember everyone that the advice shared on she

1003
00:46:06,480 --> 00:46:08,560
Speaker 2: is on the Money is general in nature and does

1004
00:46:08,640 --> 00:46:12,240
Speaker 2: not consider your individual circumstances. She is on the Money

1005
00:46:12,400 --> 00:46:15,880
Speaker 2: exists purely for educational purposes and should not be relied

1006
00:46:15,960 --> 00:46:19,000
Speaker 2: upon to make an investment or a financial decision.

1007
00:46:19,239 --> 00:46:22,160
Speaker 3: Did you note that we don't say entertainment purposes? Yeah,

1008
00:46:22,400 --> 00:46:24,200
Speaker 3: it was actually going to throw that in there.

1009
00:46:25,239 --> 00:46:28,719
Speaker 2: We need to read this funny funny out you. How

1010
00:46:28,760 --> 00:46:29,279
Speaker 2: have you on with?

1011
00:46:29,400 --> 00:46:30,520
Speaker 3: Just let people know I'm legit.

1012
00:46:30,680 --> 00:46:33,040
Speaker 2: She's legit, and that is what I'm about to tell

1013
00:46:33,040 --> 00:46:36,920
Speaker 2: you now, we promise. Victoria Divine is an authorized representative

1014
00:46:37,200 --> 00:46:40,520
Speaker 2: of Australia Pacific Funds Management pro prior to Limited ABN

1015
00:46:40,640 --> 00:46:42,480
Speaker 2: three four one three two four six three two five

1016
00:46:42,560 --> 00:46:45,520
Speaker 2: seven AFSL three three nine one five one. And a

1017
00:46:45,560 --> 00:46:49,680
Speaker 2: big thank you to Ryan and Beck the producer magicians,

1018
00:46:49,680 --> 00:46:52,080
Speaker 2: for putting it all together, and a big thank you

1019
00:46:52,120 --> 00:46:55,640
Speaker 2: to Jessica Habuci for just keeping our lives together.

1020
00:46:55,719 --> 00:46:58,680
Speaker 4: I guess are you sick of saying the numbers? Do

1021
00:46:58,760 --> 00:47:00,760
Speaker 4: people actually even Lisa this far.

1022
00:47:00,640 --> 00:47:01,200
Speaker 3: Into our pod?

1023
00:47:01,239 --> 00:47:02,640
Speaker 2: Do you? Okay, if you do, let us know.

1024
00:47:02,760 --> 00:47:03,640
Speaker 3: If you do, let us know.

1025
00:47:03,880 --> 00:47:05,799
Speaker 4: But if you do, and you think you could do

1026
00:47:05,840 --> 00:47:08,640
Speaker 4: a better job of wrapping the show than Georgia King,

1027
00:47:09,239 --> 00:47:11,600
Speaker 4: I'm going to drop the exact script in our show

1028
00:47:11,680 --> 00:47:14,440
Speaker 4: bio so our listeners can read the numbers and do

1029
00:47:14,480 --> 00:47:16,279
Speaker 4: a sassier job than we do. And we're just going

1030
00:47:16,320 --> 00:47:17,600
Speaker 4: to add that to the pod each week.

1031
00:47:17,840 --> 00:47:19,800
Speaker 3: See you next week, guys, See you guys,