Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
Speaker 1: we get started on She's on the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
Speaker 1: and the storytelling of you to make a difference for
Speaker 1: today and lasting impactful tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 2: Hello, and welcome to She's on the Money the podcast.
Speaker 2: It's all about giving gifts that are thoughtful, meaningful and
Speaker 2: maybe even finance empowering. Are you overgiving the same old
Speaker 2: gifts every year? Let's be real, how many candles and
Speaker 2: bath bombs can one person actually use?
Speaker 4: Many?
Speaker 2: Like, probably go twelve a day?
Speaker 4: You know what, I have a bath maybe every couple
Speaker 4: of days. There's nothing like it, nothing, but I love
Speaker 4: a bath. I love a bath bomb. I don't love
Speaker 4: the bath bombs that change your skin color though, you
Speaker 4: know how sometimes you get in and then you get
Speaker 4: out with like a shiny pink ting Like that's not
Speaker 4: for me. So if you're going to give bath bombs,
Speaker 4: be really thoughtful about the ones you give. Absolutely, or
Speaker 4: you could just give them money.
Speaker 2: This year, what if you could give something that actually grows?
Speaker 2: And I don't mean like houseplant or like houseplants though,
Speaker 2: this is the thing, just in case people are stening
Speaker 2: they don't know who I am. I'm excited and today
Speaker 2: we're not just talking about holiday presents. We're talking about
Speaker 2: gifts that can actually build a future. Enjoining me as
Speaker 2: always is Victoria Divide, whose love language is a perfect
Speaker 2: mix of financial literacy, which I know is not a
Speaker 2: love language any thoughtful gift giving.
Speaker 4: I feel like financial literacy is a love language. I
Speaker 4: think it should be.
Speaker 2: Let's make it because like the love languages were made
Speaker 2: by some dude.
Speaker 4: Yeah, like we're updating them love language find.
Speaker 2: Financial literacy, yeah, refe.
Speaker 4: I also do definitely have the love language of gift giving,
Speaker 4: Like I love giving, do you do? I have a
Speaker 4: creepy list on my phone of just like ideas for
Speaker 4: presents for people that sometimes I put down and I'm like,
Speaker 4: I would never buy that person a present, but I
Speaker 4: need to put it on the list because that would
Speaker 4: be really thoughtful.
Speaker 2: That's I need too.
Speaker 4: But I guess today is not about house plants, it's
Speaker 4: not about bath bombs. We're actually going to be rethinking
Speaker 4: the idea of the gift that keeps on giving. Okay,
Speaker 4: so what if beck instead of a present that gets
Speaker 4: tossed decided by the time New Year's rolls around, we
Speaker 4: could actually give people something that builds wealth over time.
Speaker 4: And obviously I'm talking about investing.
Speaker 2: Honestly, I know that there are probably people listening, and
Speaker 2: I'm not gonna lie this is me, but investing as
Speaker 2: a gift kind of sounds too serious or complicated. But also,
Speaker 2: you know when someone's like, I've given you a present,
Speaker 2: it's a donation to your favorite charity, Like, oh, that's
Speaker 2: actually really nice, but I wanted a box of chocolates.
Speaker 4: Actually, so when I bought everyone in the team last
Speaker 4: year a goat from Oxfam, you were like, that's cool,
Speaker 4: but I wanted the money I wanted. Sorry, sorry, I
Speaker 4: got the goats from Oxfam were really cool. You're probably
Speaker 4: still going to get a goat this year because it's
Speaker 4: a milind to my love language, totally listen, mentally prepared.
Speaker 4: But I feel like it's not that deep, right, like
Speaker 4: investing men used to do it, So how hard could
Speaker 4: it be?
Speaker 3: Back?
Speaker 4: Sure, exactly right. So I think it's more exciting than
Speaker 4: you think it is. Plus I'm going to show you
Speaker 4: how you could get a little bit creative with it,
Speaker 4: So it feels, I guess, just as personal as any
Speaker 4: other gift you might give it this type of the year.
Speaker 2: I love getting a little bit crafty, a little bit creative.
Speaker 4: I'm very crafty, very into cross stitch at the moment,
Speaker 4: very into needle point, very into embroidery. I feel like
Speaker 4: I've aged probably like thirty years since having a baby.
Speaker 2: We don't look it.
Speaker 4: That's because I stopped breastfeeding and I was able to
Speaker 4: get my botox.
Speaker 2: Oh yeah, would actually combine the two cross stitching and investing,
Speaker 2: I'm sure so tells Why is it a good idea
Speaker 2: and not just like a finance person thing.
Speaker 4: You're a finance person. Everyone is a finance person. I
Speaker 4: don't throw one person who doesn't use money. Yeah, you're
Speaker 4: a finance people. He just didn't know it yet. He
Speaker 4: actually uses money, like he goes into the bush. That
Speaker 4: is a next level privilege. Right, you have to be like,
Speaker 4: I'm going off grid. Okay, cool, you have to pay
Speaker 4: to get there. On that anyway, completely different story. But
Speaker 4: let's think about it like this. So when you give
Speaker 4: an investment as a gift, you're actually giving someone a
Speaker 4: really tiny piece of financial freedom, unless you're giving them
Speaker 4: like millions invested, in which case you're giving them entire
Speaker 4: financial freedom. If you would like to give that to me,
Speaker 4: totally open. My address is actually on our website. But
Speaker 4: it's not just money, right, it's potential. It's something that
Speaker 4: could grow over time and contribute to a future goal,
Speaker 4: whether it's I don't know, buying a home or them traveling,
Speaker 4: or just building a safety net or a urgency fund.
Speaker 1: Right.
Speaker 4: And for anyone who's new to investing, it's also like
Speaker 4: a really gentle nudge in the right direction so that
Speaker 4: they start hopefully learning about their finances, but without the pressure,
Speaker 4: because you didn't have to cough up the money to
Speaker 4: begin with. Right. It's a classic example of I don't know,
Speaker 4: teaching a man to fish or a person to fish,
Speaker 4: rather than just giving them a fish. Yeah, I just
Speaker 4: don't think that fish for Christmas is a good idea, though,
Speaker 4: Like I would be really disappointed if, like Christmas morning
Speaker 4: rolls around and there was a fish in my Santa Sac.
Speaker 2: A raw fish, possibly smelly by that point.
Speaker 4: Yet one out of ten. But I do think that
Speaker 4: it is a really great present to think about, especially
Speaker 4: when you're like, oh my gosh, this person has literally everything,
Speaker 4: but they're also a little bit financially irresponsible.
Speaker 2: Maybe yeah, like maybe they have everything because they're financially it's.
Speaker 4: Exactly like me, exactly better. Imagine if I turned around
Speaker 4: and said, beck, I got you an investment, You'd be like,
Speaker 4: what the hell? But then maybe you'd have to work
Speaker 4: out how to redeem that gift card, or like you'd
Speaker 4: have to work out how to invested, or you might
Speaker 4: get a little bit interested in it. And that's like
Speaker 4: the snowballs starting. And I know that you've already started investing, right, so,
Speaker 4: like you already invest Imagine if I said, hey, here's
Speaker 4: a contribution to this because I knew what platform you're
Speaker 4: on and bought like a gift card for your investing platform,
Speaker 4: you'd be like, oh my gosh, because I know you've
Speaker 4: only been starting small. Imagine if I gave you fifty bucks,
Speaker 4: you'd like double your investment. We feel exciting.
Speaker 2: That would be so motivating. I feel how a snowball
Speaker 2: effect might be created from that. But I sound like
Speaker 2: a thowtful way to kickstart someone's financial journey if they're not,
Speaker 2: you know, fully there yet. Plus I love that it's
Speaker 2: a gift that could get bigger and bigger, you.
Speaker 4: Know, absolutely, like over time you feel like I could
Speaker 4: only afford a twenty dollars gift, Great, no worries, Like
Speaker 4: that's a fantastic gift. In the future, it's going to
Speaker 4: be worth way more.
Speaker 2: But like, how do you actually do it?
Speaker 4: So there are lots of different ways to go about it,
Speaker 4: depending on who you're giving gifts to, how much you
Speaker 4: want to spend. So before we get there, I think
Speaker 4: it's also important to highlight here we have an episode
Speaker 4: on investing for children, because that's actually a completely different
Speaker 4: ball game then me gifting new money for investing, right beck,
Speaker 4: Because if I give you a gift, there's no tax implications,
Speaker 4: But if you are going to invest on behalf of
Speaker 4: a child because you are probably their guardian, you're going
Speaker 4: to have some tax implications there. And if it's in
Speaker 4: the miner's name, those tax implications are even higher. So
Speaker 4: I'm not going to get into it too deeply because
Speaker 4: there's an entire episode on it, but essentially, small human
Speaker 4: beings get taxed astronomically, like over fifty percent when they invest,
Speaker 4: so a lot of the time it's smart to keep
Speaker 4: it in your name. But that's a decision that you
Speaker 4: can make and work out because a lot of people
Speaker 4: in our community, they also go, oh, instead of you know,
Speaker 4: investing individually for my child, I'm actually going to buy
Speaker 4: what's called an investment bond, right, and that is a
Speaker 4: really tax effective way of investing for a child. So
Speaker 4: maybe an investment bond becomes a kid's Christmas present. It
Speaker 4: sounds less sexy, but we can frame it up and
Speaker 4: you know what we can do. We could jump on
Speaker 4: like cam and make up like a little gift certificate,
Speaker 4: so a little bit more exciting, right, that's pretty cure. Yeah,
Speaker 4: I know anyway, So I just wanted to caveat it
Speaker 4: that way because obviously there's a few different ways we
Speaker 4: could invest, but for kids, it is a little bit different. Sure,
Speaker 4: there's a whole episode on it, but the first thing
Speaker 4: is shares right like shares stocks my favorite thing in
Speaker 4: the entire world. You could use platforms like shares is
Speaker 4: where you can actually gift individual shares or contribute to
Speaker 4: a share portfolio. So that's when you know if someone
Speaker 4: has a specific holding or like I know Beck you
Speaker 4: invest with shares's because you told everybody on the podcast.
Speaker 4: So that makes it really simple. But if it's someone
Speaker 4: that you don't know invests yet, like you could purchase
Speaker 4: shares in any way. To be honest, the best way
Speaker 4: that I would do it is actually to give them
Speaker 4: the money so that they can invest in their own name,
Speaker 4: because it's very hard to transfer a share to somebody
Speaker 4: else's name, whole heap of admin that you don't want
Speaker 4: to do. But you could draw them up a really
Speaker 4: cute like quote share certificate or like Canva or something,
Speaker 4: and then give them the money and be like, this
Speaker 4: money is intended for you to invest.
Speaker 2: I imagine if you gave me cash, you know that's
Speaker 2: going to I.
Speaker 4: Know you're not going to do it, yes, so you
Speaker 4: could get an investment gift card. So platforms like Chaz's
Speaker 4: and other platforms as well, and like this isn't me
Speaker 4: just promoting chair Za's it's just because I know what
Speaker 4: the best At this point in time. They offer investment
Speaker 4: gift cards. So if I give you an investment gift card,
Speaker 4: you can choose your investments, but you can't spend it
Speaker 4: on anything else.
Speaker 2: Beck, that's very helfl Actually that's great.
Speaker 4: It locks and loads you, right, that's all. You could
Speaker 4: talk to the person that you're gifting about an ETF, right,
Speaker 4: so you could do some research for them, and I
Speaker 4: could say, Beck, I know your likes and dislikes, and
Speaker 4: I've picked out this ETF and here's a gift card.
Speaker 4: I'd love you to buy this particular ETF because it
Speaker 4: aligns to your values. It's ethical, it's moral. Oh my gosh, Beck,
Speaker 4: they only have women on their boards. I think you'd
Speaker 4: be like, oh, thanks for the research. That does sound
Speaker 4: aligned to me. And I think it's just a really
Speaker 4: fun way to go about it. Also, an ETF, it's
Speaker 4: a bucket of shares, right, so and ETF Lots of
Speaker 4: people throw that term around because they like to confuse us.
Speaker 4: In the investing world, it's called an exchange traded fund,
Speaker 4: which feels even more complicated, but essentially it's a bucket
Speaker 4: of shares that someone who has the knowledge and the
Speaker 4: power and is an investment manager has picked this list
Speaker 4: of shares. It could be twenty shares, it could be
Speaker 4: two hundred shares, it could be any amount, right, but
Speaker 4: they've picked this specific amount of shares and put it
Speaker 4: all in this bucket and said, if you put your
Speaker 4: money in our bucket, you'll get instant access to all
Speaker 4: of these shares. So you get the average return of
Speaker 4: that list as opposed to just me giving you one
Speaker 4: bank share. Yeah, does that make sense.
Speaker 2: Definitely.
Speaker 4: So that's a good way of making it a little
Speaker 4: bit less risky, a little bit more diversified, and I
Speaker 4: don't know, it feels a little bit personal. Yeah, very
Speaker 4: thoughtful for your friends who are maybe a little bit
Speaker 4: more conservative. You could pick a bond. My favorite way
Speaker 4: of explaining a bond is like an IOU note. Okay,
Speaker 4: So if I gave you an IOU note, you have
Speaker 4: this little piece of paper and you go, my cash
Speaker 4: is in one day, and I go, you wait ten years, beck.
Speaker 4: But essentially what happens is the government usually issues what's
Speaker 4: called a bond, and they go out to market and
Speaker 4: they say, hey, Beck, we want to build some new roads,
Speaker 4: or we want to build some public hospitals or some
Speaker 4: infrastructure for our community, but we need some funding, Like,
Speaker 4: we don't have the cash for it today, but we
Speaker 4: know that if we do this, we'll have the cash
Speaker 4: in ten years. Right, So they go, Beck, could we
Speaker 4: borrow your cash and we'll give you an IOU note?
Speaker 4: So we give all your cash back when we're done
Speaker 4: with it ten years and along the way we'll pay
Speaker 4: you five percent. Is that cool? And you go, Okay,
Speaker 4: take my cash. Can I have my IOU note and
Speaker 4: I'll cash it in later? When this term ex bias
Speaker 4: per year? Yeah, often often so it just depends on
Speaker 4: what the bond is and how much it's paying. But
Speaker 4: it is usually a safer option or a less quote
Speaker 4: risks ski option than an ETF or buying shares because
Speaker 4: here in Australia bonds are triple A rated. So what's
Speaker 4: that mean back? It means that in Australia, historically a
Speaker 4: bond that has been issued by our government has never
Speaker 4: not been returned, right, So they always, always, always have
Speaker 4: historically given our money back. Can't say the same for
Speaker 4: the Greek government though, Oh they don't really like giving
Speaker 4: their money back, how do they get away with that
Speaker 4: what their entire economy is in a lot of debt.
Speaker 2: I see, yeah, I see like.
Speaker 4: They're in a bit of a pickle. You could say back, sure,
Speaker 4: but in Australia, bonds do return, so they are seen
Speaker 4: to be a less risky gift that if your friend's
Speaker 4: not ready to invest in shares or in you know, ds,
Speaker 4: they might feel a little bit more comfortable with that.
Speaker 2: Also, that's cute.
Speaker 4: In most investing portfolios, a bond makes up a really
Speaker 4: good portion of like a stable investment. Think about an
Speaker 4: investing portfolio as a pie chart. Usually you would, you know,
Speaker 4: draw some lines through the pie chart and then fill
Speaker 4: in the blanks. Right, So, like for somebody who's a
Speaker 4: bit more of an aggressive investor, like me, I have
Speaker 4: my pie chart, but most of that pie is actually
Speaker 4: made up of shares, and I do have some bonds,
Speaker 4: but most of my assets are in shares. But if
Speaker 4: someone's a bit more conservative, they're like, oh, put the
Speaker 4: rakes on, I'm not ready to invest in shares as
Speaker 4: aggressively as Victoria is. They're seem to be a more
Speaker 4: conservative investor. They still have their pie, right, but their
Speaker 4: pis cut up and most of it is made up
Speaker 4: of bonds and cash and.
Speaker 2: Less risky things.
Speaker 4: Yeah, less risky things. And they might still have shares,
Speaker 4: and they might be identical to mine, they just own
Speaker 4: less of them. The pires cut up in different ways. Yeah,
Speaker 4: but it doesn't mean that the asset is more risky.
Speaker 4: It's just seen to be a more risky portfolio because
Speaker 4: it has more shares instead of the stable things. Yes,
Speaker 4: so don't make sense totally. I think it's really cool.
Speaker 2: Imagine like I gave one hundred bucks in a bond
Speaker 2: right now, and then in ten years time, because right
Speaker 2: now it's like, oh thanks, Like I can't even see
Speaker 2: this money for like a decade.
Speaker 4: Yeah, but it's starting to pay off.
Speaker 2: They're getting the back maybe double exactly.
Speaker 4: Money should double every ten years and in an average
Speaker 4: rate of return based on the Australian share market, your
Speaker 4: money should double if you're investing in the Australian share
Speaker 4: market every seven years.
Speaker 2: That's that's real. That's really a good deal.
Speaker 4: Bet.
Speaker 2: So you can actually make this gift as big or
Speaker 2: as little as you want. You can tailor it to
Speaker 2: how involved with the person wants to get and for
Speaker 2: someone who's totally new, maybe starting with a little bit
Speaker 2: and shares could be exciting without being overwhelming. And as
Speaker 2: you just explain, like investing can be a little bit
Speaker 2: different for kids, So just keep that in mind. We
Speaker 2: do have a whole episode on that.
Speaker 4: Yeah, and I mean it can be really cool. So
Speaker 4: I have had you know, Glenn James, my friend from
Speaker 4: this is Money or money, Money, money, Okay, he has
Speaker 4: lots of different pod names floating around at the moment.
Speaker 4: He talks about how he invests for his niece and
Speaker 4: his nephew and he has an investment bond for them
Speaker 4: that every year, instead of Christmas and Birthday presents, he
Speaker 4: just contributes more to that investment bond. And so that's
Speaker 4: something that Steve and I have set up for Harvey,
Speaker 4: and that's what we will be doing. Because I won't
Speaker 4: say it's the most tax effective for everybody, right, Like,
Speaker 4: this is a very privileged thing for me to be
Speaker 4: able to say and do, right, I'm just being completely transparent.
Speaker 2: Sure, But because.
Speaker 4: Steve and I are high income earnest and our tax
Speaker 4: is at the highest marginal tax bracket, an investment bond
Speaker 4: works best for us, Okay, Right, So we've decided that
Speaker 4: we want to invest for Harvey, and we've done all
Speaker 4: of the maths in the background and gone, well, what
Speaker 4: does this mean? We really want to invest for him,
Speaker 4: But it actually isn't financially a very smart decision for
Speaker 4: us to invest in Harvey's name. Nor is it a
Speaker 4: smart decision for me to go and buy shares that
Speaker 4: I know pretend to Harvey's and I'll transfer to him
Speaker 4: one day, because I'll have a whole heap of transfer
Speaker 4: fees that I need to pay, because you can't just
Speaker 4: transfer easily and be like, oh, here's this gift. Like
Speaker 4: the taxman's going to be like, hey see how you
Speaker 4: had these shares because Harvey has been investing now for
Speaker 4: eighteen years. So what you're going to have to do
Speaker 4: is pay capital gains tax as you transfer that over.
Speaker 4: And I'm just looking into the future and going, I know,
Speaker 4: I don't want to do that because what did I
Speaker 4: say before, beck, money is on average going to double
Speaker 4: every seventy yeares.
Speaker 2: Yeah, yeah, yeah, we're going to.
Speaker 4: Have hopefully a really big capital gains issue because we've
Speaker 4: made heap of money. But I don't want to pay
Speaker 4: their tax man. I do love paying tax don't get
Speaker 4: me wrong. It is an absolute privilege.
Speaker 1: Beck.
Speaker 4: The more money you make, the more tax you pay,
Speaker 4: and the more tax you pay, the more privilege you are.
Speaker 4: That's a good deal. But if I can avoid it
Speaker 4: in the future, that's a good deal too.
Speaker 2: That's good.
Speaker 4: So an investment bond has made the most sense for
Speaker 4: Steve and I in our personal situation, but it doesn't
Speaker 4: mean that all work for everybody. You might go, it
Speaker 4: just makes sense for me to have a few shares
Speaker 4: in my own name, and I will deal with it.
Speaker 4: In fact, the entire reason I have shares in my
Speaker 4: own name is because I really want to teach my
Speaker 4: kid about the concept of investing rather than have them
Speaker 4: you have a house deposit when they are eighteen years old,
Speaker 4: because that's just not financially viable for me. And so
Speaker 4: I think it's important to work out what works for you,
Speaker 4: which is why we have that episode. But I don't know.
Speaker 4: I feel like I owe you guys transparency as well,
Speaker 4: to be like, well, this is what I'm doing, but
Speaker 4: also this is why I'm doing it. Yes, because if
Speaker 4: I just said, oh, Beck, well we've chosen an investment bond,
Speaker 4: you might go, well, that makes the most sense then,
Speaker 4: because if they did. It must be the best decision, right, Like,
Speaker 4: if Victoria is doing something and she's you know, a
Speaker 4: money person, an investment bond must be the best outcome.
Speaker 4: But that doesn't mean it is for you. Does that
Speaker 4: make sense?
Speaker 2: Yeah, definitely, And from memory, I know this is in
Speaker 2: the episode, but it's a higher tax bracket. So people
Speaker 2: don't kind of like take advantage of like putting money
Speaker 2: in their children's names.
Speaker 4: You great, me so proud, thank you. Yeah, it's come
Speaker 4: into play because rich people can be really dodgy. But ha,
Speaker 4: And what they do is they set up these family
Speaker 4: trusts because they've got fancy pants accountants and they can
Speaker 4: afford to set these structures up. And they go, all right,
Speaker 4: I'm going to put my kid Beck in this structure
Speaker 4: and every year I'm going to distribute income to Beck,
Speaker 4: because as you know, the first eighteen or so thousand
Speaker 4: dollars you earn, you don't pay tax on. Right, So
Speaker 4: if I paid my kid eighteen grand, tax free money
Speaker 4: coming out, and then they just go into their kids'
Speaker 4: bank account, pull it out tax free, okay, dodgy, dodgy,
Speaker 4: that is not okay. So to get around all of
Speaker 4: this the ater is gone, no, no, no, no, no. What
Speaker 4: we're going to do is miners can only earn up
Speaker 4: to four hundred and sixteen dollars per year from investment income,
Speaker 4: so that's a pretty good deal. They could absolutely earn,
Speaker 4: you know, a couple of hundred bucks before this comes
Speaker 4: into play, before facing tax rates of sixty six percent.
Speaker 2: Whoa, that is astronomical, right, that's higher than the highest
Speaker 2: marginal tax rate in Australia.
Speaker 4: Literally, they're doing it so that you're turned off doing
Speaker 4: that rate.
Speaker 2: See pretty well.
Speaker 4: I think there needs to be like more flexibility in
Speaker 4: this area because like some of us, we're just doing
Speaker 4: the best that we can and we're genuinely investing for
Speaker 4: our kid. Like what if your kid was one of
Speaker 4: those like Target models, like you know the kids in
Speaker 4: the Target catalog. Yeah, but what if they go and
Speaker 4: they're earning their own money and then mum and dad
Speaker 4: are being smart about it and they're investing it, like
Speaker 4: they shouldn't be crucified by the money that they're earning.
Speaker 4: But the richie riches of the world took the mickey
Speaker 4: and now the ATO were like, we're just going to
Speaker 4: ban that. Oh yeah, so anyone under ateen that applies
Speaker 4: to However, Beck, that doesn't apply if they've earned the
Speaker 4: money from paid employment. So like if a kid is
Speaker 4: you know, fourteen years and nine months and got their
Speaker 4: first job, obviously different tax rates apply. This is just
Speaker 4: for passively earned income.
Speaker 2: Oh okay, gotcha, gotcha, got cha?
Speaker 4: Okay, So what about you just stop the sneaky fancy pantss.
Speaker 4: But at the same time, I think it's important that
Speaker 4: we understand why that exists, so then you can pick
Speaker 4: a structure that makes sense. Because if you were just
Speaker 4: investing pocket money, Beck, maybe it's of absolutely no consequence
Speaker 4: to you. And you're like, I don't mind if my
Speaker 4: kid has you know, fifteen dollars worth of shares in
Speaker 4: their name and they're trading and making you know, less
Speaker 4: than a dollar a year on it, like it's their
Speaker 4: financial edge. You just have to be aware when you're
Speaker 4: making more than the four hundred ishmark. Right. But Beck,
Speaker 4: as you said in the intro to this podcast, one
Speaker 4: of my love languages is thoughtful gift giving, and you
Speaker 4: weren't making that up. So let's take a really quick
Speaker 4: break because afterwards, I'm going to give you some ideas
Speaker 4: on how to choose the right investment for your gift
Speaker 4: and make it more thoughtful and more meaningful.
Speaker 2: All right, we are back everybody. But before the break
Speaker 2: V you did promise us some tips on how to
Speaker 2: choose the right investment for your gift. I think again,
Speaker 2: like you, Beck, I wouldn't go, all right, well, I've
Speaker 2: just purchased you some shares on self Wealth, because you'd
Speaker 2: be like, oh my gosh, that is an overwhelming, confusing platform.
Speaker 4: It's a great platform. I have used that platform and
Speaker 4: still hold assets on that platform, and I really like it.
Speaker 4: But I was an ex financial advisor and I really
Speaker 4: like the way things work on there. However, you're a
Speaker 4: Shares's girl, right like, and you just like the fact
Speaker 4: that it's on an app. I can almost guarantee you've
Speaker 4: never logged into your Shares's account on a computer, have you, Yeah, exactly.
Speaker 4: So we need to think about picking the right investment
Speaker 4: for the right person. Because self Wealth it doesn't have
Speaker 4: a very good ap like it's very much a desktop
Speaker 4: user experience, so that doesn't make a lot of sense.
Speaker 4: But the first thing I'd really want to think about
Speaker 4: here is time period. Like, if somebody is investing, how
Speaker 4: long are they going to be investing for So if
Speaker 4: you're like, oh, I really want to get Beck to invest,
Speaker 4: and like, let's pretend that you're a rich boomer, rich boomer, Okay,
Speaker 4: channel your rich boomer energy. You want to invest one
Speaker 4: thousand dollars for Beck? Right, yep, yeah, we really want
Speaker 4: to do that, But Beck is currently saving for a
Speaker 4: first home. Is that the best decision to bank?
Speaker 2: Like you see, if.
Speaker 4: I invested one thousand dollars for you as a rich boomer,
Speaker 4: because that's you know, who can afford to give in
Speaker 4: my head presents that are to the value of a
Speaker 4: thousand dollars in if we were doing that, does that
Speaker 4: then mean that you're going to pull that money out
Speaker 4: pretty quickly to put towards your home deposit?
Speaker 1: Right? Yeah?
Speaker 4: Yeah, because you might go, shit, like that's one thousand
Speaker 4: dollars and I'm really aggressively saving for a house, Like
Speaker 4: that would be much better used here. I think we've
Speaker 4: got to put our thinking caps on and think about
Speaker 4: the timeframe if you are investing for them, or if
Speaker 4: you are purchasing a gift card for them to invest,
Speaker 4: like how long are they going to hold it? And
Speaker 4: then how easy is it going to be for them
Speaker 4: to manage it. I think we need to have a
Speaker 4: good think about that, because I know that if I
Speaker 4: purchased you something like a gift card where you could
Speaker 4: pick your own investments on the platform you're already used,
Speaker 4: that's thoughtful, that's meaningful. Me picking something completely rogue, that
Speaker 4: just feels controlling, you know what I mean?
Speaker 2: Right, And I might never actually be able to use
Speaker 2: it because I don't know what to do with it.
Speaker 2: I don't know where to go exactly. I see, and
Speaker 2: how can we add some personalized touches to make the
Speaker 2: gift even more meaningful?
Speaker 4: So here's a few different ways that you could make
Speaker 4: this gift really resonate supposed so relating to long term goals.
Speaker 4: So say you're again rich boomer. It's a good example,
Speaker 4: and you are saving for your first homeback, but you're
Speaker 4: not very close, Like you know it's going to take
Speaker 4: another seven to ten years to purchase that. You could
Speaker 4: write a really beautiful card and be like, I know
Speaker 4: that this is hopefully going to grow into part of
Speaker 4: your home deposit, so like you know it could be
Speaker 4: for like an eighteen or a nineteen year old and
Speaker 4: you're like, I want you to put this away because
Speaker 4: it doesn't make any sense right now for you to
Speaker 4: purchase property. But I'd like to give you this money
Speaker 4: in the hopes that by the time you purchase it's doubled. Yeah,
Speaker 4: wouldn't that be cool? That's pretty cute exactly. And then
Speaker 4: I think going back to what I was telling you
Speaker 4: before about choosing investments with meanings, so like, if you're
Speaker 4: going to pick a share or an ETF, I would
Speaker 4: relate it to that person's interests. So like, if they
Speaker 4: love tech, maybe you could buy them like a tech company.
Speaker 5: Yeah.
Speaker 4: Like, wouldn't it be so cool to like make up
Speaker 4: a fake Apple gift card that then set on the
Speaker 4: back ha ha these are shares?
Speaker 2: Yeah, yea cool, that's pretty cute.
Speaker 4: You could also always include a personal note. I'm a
Speaker 4: very big fan of like writing proper Christmas cards for people. Yes,
Speaker 4: so you could write a Christmas card for somebody that says,
Speaker 4: here's a little start to your future. I chose this
Speaker 4: book as the lines with something I know you're passionate about,
Speaker 4: like and tell them how much you love them all
Speaker 4: of that. Like, to be honest, all I want for
Speaker 4: Christmas is Christmas cards. Anyway, here's a good idea veck.
Speaker 4: You could include it in an investing book, huh, So
Speaker 4: you couldmpare an investment like a little like investing gift
Speaker 4: card with I don't know, maybe like a beginner friendly
Speaker 4: investing book that's won some awards, Like I don't know,
Speaker 4: investing's on the money. So this like sets some I
Speaker 4: guess realistic expectations. It explains markets ups and downs, and
Speaker 4: it really emphasizes that this gift is all about long
Speaker 4: term wealth creation and growth and helping them be the
Speaker 4: best version of themselves. Yes, but like I don't know
Speaker 4: any investing.
Speaker 2: Books, No, I don't know a single one.
Speaker 4: But hypothetically, if you were to pair it with an
Speaker 4: investing book, yes, I'm in a link one in the
Speaker 4: show notes that you guys.
Speaker 2: Might like pathetically that I might have written maybe no pressure,
Speaker 2: no pressure.
Speaker 4: But it's a gift. And also, like low Key, we
Speaker 4: spent so long beck on the covers of those books,
Speaker 4: So if you wanted to buy multiple, they look really
Speaker 4: great as a little set, they do. They look lovely
Speaker 4: as a coffee table book. Yeah, bedside table books, bedside
Speaker 4: table book. Any stylists purchase this book put it on
Speaker 4: people's bedside tables, when you're selling homes.
Speaker 2: Yes, yes, yes, I mean it's just a care.
Speaker 4: It just makes sense.
Speaker 2: That just makes sense.
Speaker 4: You could use it as I don't know, a month
Speaker 4: older if you're not into.
Speaker 2: Readings, beautiful coast stuff, fantastic at stop.
Speaker 4: Same anyway, I think that that's probably the best Christmas
Speaker 4: present you could get someone is basically you know my books.
Speaker 2: Yeah that's true. Okay, so that's our guy to giving
Speaker 2: a gift that's way more exciting than socks or any
Speaker 2: of the candle.
Speaker 4: I love a candle.
Speaker 2: I do love a.
Speaker 4: Candles Sunday blue candle. If you're looking for candles this
Speaker 4: Christmas data paid sponsorship, they just have this Mediterranean blood
Speaker 4: orange can.
Speaker 2: Oh that's doning.
Speaker 4: I guess okay, we're done.
Speaker 2: Sorry, Well okay, this holiday season, why not give something
Speaker 2: that grows with the person or maybe even inspires them
Speaker 2: to learn about money. That's a really idea.
Speaker 4: And think of it as like a little financial seed
Speaker 4: that you're planning for someone, whether it's shares and ETF,
Speaker 4: an investment bond, a book, an investing course that you
Speaker 4: might want to give to someone for Christmas. I think
Speaker 4: it's a gift that could turn into something much bigger
Speaker 4: over time, and there's literally nothing more festive than the
Speaker 4: idea of a future that's a little brighter. Beck. And
Speaker 4: who knows, you might even spark a lifelong interest in investing.
Speaker 4: Can you imagine? I know you dragged them into my community.
Speaker 2: You could literally.
Speaker 4: Change Merry Christmas. Beck, I'm going to add all your
Speaker 4: friends to my Facebook group.
Speaker 2: Thank you so much. That is a great You could
Speaker 2: change the trajectory of someone's life in a good way.
Speaker 2: That's my plan. That's literally what I've been trying to
Speaker 2: do this whole time. Fantastic be Oh that's what you're
Speaker 2: trying to do. Okay, Okay, I get it out. If
Speaker 2: you're feeling extra generous this season and want to give
Speaker 2: the shees on the Money team a little holiday cheer,
Speaker 2: consider leaving us a love note in the form of
Speaker 2: a review.
Speaker 4: But also probably just put the actual love note in
Speaker 4: the review.
Speaker 2: A love note might actually be nice if you call it,
Speaker 2: but seriously, it gives us a warm and fuzzy feeling.
Speaker 4: Absolutely, and on our Friday episodes, we have started reading
Speaker 4: out our favorite five star reviews so that you might
Speaker 4: find yourself on the show. Reviews actually make a really
Speaker 4: huge difference to the performance of our show as well,
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Speaker 4: few moments, we would love to hear what you think.
Speaker 4: It's the best gift you could actually give us this year.
Speaker 2: That's so true. Okay, happy for giving everyone. Here's to
Speaker 2: thoughtful presents, bright futures and maybe a five star review.
Speaker 4: Wow, just a cheeky one. Anyway, have a good week, guys,
Speaker 4: and we will see you for five star reviews on Friday.
Speaker 2: Who by guys.
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