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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud or

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Speaker 1: the Order Kerni Whalbury and a waddery woman. And before

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Speaker 1: we get started on She's on the Money podcast, I

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Speaker 1: would like to acknowledge the traditional custodians of the land

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Speaker 1: of which this podcast is recorded on a wondery country,

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Speaker 1: acknowledging the elders, the ancestors and the next generation coming

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Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing

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Speaker 1: and the storytelling of you to make a difference for

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Speaker 1: today and lasting impact for tomorrow.

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Speaker 2: Let's get into it.

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Speaker 3: She's on the Money, She's on the Money.

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Speaker 4: Hello, and welcome to She's on the Money, the podcast

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Speaker 4: annials who want financial freedom. If you listen to us

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Speaker 4: a lot, you know that one of the best ways

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Speaker 4: to achieve financial freedom is through investing. But we do

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Speaker 4: know that world can sometimes be confusing, So we asked you,

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Speaker 4: our incredible community, to send in your burning questions about investing,

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Speaker 4: and boy, oh boy, there were some goodies and a

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Speaker 4: lot of them, a lot of them. I feel so

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Speaker 4: seen by this.

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Speaker 2: I feel so overwhelmed. So I'm glad that we're on

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Speaker 2: both ends of the spectrum. I'm like, holy moly, I

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Speaker 2: thought I'd done a heap for financial literacy, yet there

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Speaker 2: are still six billion questions to answer.

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Speaker 4: Yeah, I mean I get it, like there are so

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Speaker 4: many things that maybe we don't even think about because

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Speaker 4: we're in this world.

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Speaker 2: If you guys hadn't replied, I wouldn't have a job anymore.

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Speaker 2: So thank you for keeping me influenced, Thank.

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Speaker 4: You for keeping us afloat. As always, we of course

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Speaker 4: have Victoria Divine herself the expert, to share who we see.

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Speaker 2: And thanks for introducing me. I just jumped into your

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Speaker 2: intro before. Hey, you know that's okay, it's elicited introduction, just.

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Speaker 4: In case this is anyone's first time. Victoria Divine is

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Speaker 4: the expert, and the one and only and the host

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Speaker 4: of this podcast.

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Speaker 2: Way, all right, well, let's dive even further in. I

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Speaker 2: feel like today is going to be a good.

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Speaker 4: E bec if you've been wondering how to get started

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Speaker 4: on a tight budget, how to work out how much

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Speaker 4: you need to invest for your retirement, or just trying

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Speaker 4: to figure out what the heck a franking credit is?

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Speaker 4: Stick around the Are you ready to dive in?

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Speaker 2: You want to talk about franking credits.

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Speaker 4: Do you Yeah, I've always been curious about what the

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Speaker 4: who's frank? Why are we giving him credit?

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Speaker 2: Exactly?

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Speaker 4: What did he even do?

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Speaker 2: All right, well let's go. I'm really excited.

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Speaker 4: Okay, So this is a really good one to start with.

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Speaker 4: How do you work out how much to invest for

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Speaker 4: your retirement goal?

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Speaker 2: I feel like retirement is a bit of an icky word.

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Speaker 2: I don't know about you, Beck, but I feel like

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Speaker 2: if someone says, oh, like, have you been planning for retirement?

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Speaker 2: You immediately just think gray hair, old age, You're not

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Speaker 2: enjoying life anymore. Maybe you're thinking caravans, like the gray

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Speaker 2: nomad vibes, but like you're not really thinking financial freedom.

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Speaker 2: You're not really thinking rich, You're not really thinking like

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Speaker 2: I can set myself up financially. You're kind of just

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Speaker 2: thinking about the wind down. I feel like there's such

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Speaker 2: a stereotype associated with the word retirement that our generation

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Speaker 2: just doesn't resonate with. Do you resonate with that?

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Speaker 4: I see we say. Actually, when you said the wind down,

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Speaker 4: I was like, that sounds so cozy, I'm so ready to.

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Speaker 2: Wa It does, but like that's what we associate with retirement,

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Speaker 2: and I mean it should like, when you have financial freedom,

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Speaker 2: you've got choice, and if you've got choice, you get

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Speaker 2: the choice to not do anything anymore. And I mean

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Speaker 2: the entire premise of creating a retirement fund, the entire

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Speaker 2: prements of superanuation is to create a fund that pays

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Speaker 2: for future use lifestyles so that you don't have to

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Speaker 2: go to work anymore. And I think that's really sexy.

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Speaker 2: I'm actually sitting on a round table, or did sit

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Speaker 2: on a round table with Acik recently to talk about

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Speaker 2: how to get more millennials engaged with their superannuation. Honestly,

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Speaker 2: an honor like me being asked by ask to come

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Speaker 2: and sit on a round table to help guide them

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Speaker 2: in how to get people our age more engaged with

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Speaker 2: their super one topic of my dreams. I am here

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Speaker 2: for it. Like it didn't matter. They were like, what

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Speaker 2: day are you free? And I'm like, I'll make myself free.

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Speaker 2: I'm here for this. I'm so excited to be involved.

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Speaker 4: Good for you.

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Speaker 2: Also, we discussed a lot about language and the need

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Speaker 2: for language around retirement to change to get us more engaged.

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Speaker 2: So like, yeah, obviously that's not answering your question, but

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Speaker 2: I think with answering your question, we need to remember

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Speaker 2: that what we do today does impact future us. And

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Speaker 2: as much as living in the moment and the journey

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Speaker 2: is so important, we also need to think about future us.

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Speaker 2: And if we are going to plan for retirement, it

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Speaker 2: can start now, and it means smallest steps need to

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Speaker 2: be taken. And I think that's really really attractive, not

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Speaker 2: just because it's like an attractive thing to do, but like,

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Speaker 2: I'm creating less work for future me by focusing on

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Speaker 2: this right now. So if you want to be saving

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Speaker 2: for your retirement, you don't actually have to actively be

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Speaker 2: doing anything, but like do some of the hygiene factors

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Speaker 2: along the way of checking in on your super making

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Speaker 2: sure that you don't have a heap of multiple useless accounts,

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Speaker 2: make sure that you are invested in the right risk profile.

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Speaker 2: We've done entire podcasts on risk profiling so that you

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Speaker 2: know how to do that. But I think it's really

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Speaker 2: important that if we're going to talk about retirement, we

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Speaker 2: have clear goals. And in that session, in that roundtable,

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Speaker 2: we spoke about getting a clearer number on what we

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Speaker 2: need to actually retire. So let's start with the numbers

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Speaker 2: that are accessible to me. And to you that we can.

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Speaker 2: I guess us as a start point, because Beck, if

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Speaker 2: I think I flipped the table and said, well, how

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Speaker 2: much do you need for retirement, You'd be like, I

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Speaker 2: don't know, Maybe I should do a budget, Like maybe

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Speaker 2: I should sit down and work out how much food

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Speaker 2: is and then you end up overwhelmed because of the

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Speaker 2: time value of money and how much inflation might impact

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Speaker 2: what you need to save. Right So, at the moment,

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Speaker 2: according to the ASFA, Beck, to have a comfortable retirement

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Speaker 2: by the age of sixty seven, you need to have

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Speaker 2: approximately six hundred and ninety thousand dollars saved or as

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Speaker 2: a single, five hundred and ninety five thousand dollars in

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Speaker 2: your super How does that feel as a number?

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Speaker 4: I guess I'm just like trying to calculate you're alive

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Speaker 4: for maybe, let's say, like thirty years after retirement. Yeah,

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Speaker 4: if you retire the retirement age, I think that's making

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Speaker 4: sense because you're keeping it somewhere and it's still getting interested.

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Speaker 4: Is that correct?

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Speaker 2: Yep? Ideally Ideally, I like that you're doing some serious

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Speaker 2: maths here. H's I feel like that's.

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Speaker 4: A I feel like, you know, definitely just looking for

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Speaker 4: like a quick yess or.

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Speaker 2: No, no, no no. I think it's really important, But

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Speaker 2: we also want to talk about how at the same

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Speaker 2: time we don't have that amount. Let's just use the

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Speaker 2: couple as an example, because I feel like that's the

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Speaker 2: most common and you can come to your own conclusions

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Speaker 2: about what that means for single people. But if you

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Speaker 2: have that income of six ninety thousand each year, and

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Speaker 2: you've done your maths, like right now, Beck, I'm assuming

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Speaker 2: you earn above minimum wage, right. I know you do

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Speaker 2: because you know your tax bracket and she's rolling in it.

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Speaker 2: She's fine, she's just spending out the kazoo. But if

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Speaker 2: we did some maths around this, so six hundred and

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Speaker 2: ninety thousand dollars fantastic at a draw down rate of

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Speaker 2: five percent. Now I use five percent because it's a

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Speaker 2: really conservative number. We know that the Australian share market

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Speaker 2: over the last thirty years has returned more than nine

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Speaker 2: percent each year, but we don't want to use that.

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Speaker 2: I'm very much a believer of like underpromising and over delivering,

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Speaker 2: Like I'd never want you to go through, you know,

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Speaker 2: economic hardship and you're not being able to draw down

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Speaker 2: what you need to from your super and therefore your

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Speaker 2: lifestyle is completely whacked. Right, So we always budget when

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Speaker 2: it comes to retirement predictions on a really low draw

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Speaker 2: down rate. And I don't say really low, like it's

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Speaker 2: quite conservative. In the financial advice world, most financial advisors

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Speaker 2: use five percent. So we're going to use five percent here.

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Speaker 2: So if you got to having six hundred and ninety

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Speaker 2: thousand dollars across two people, and you drew down five

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Speaker 2: percent each year, which means you're taking five percent of

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Speaker 2: that amount Beck to live your life, because that's what

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Speaker 2: the ASFA has said is a comfortable retirement that is

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Speaker 2: an income of thirty four thousand, five hundred a year.

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Speaker 2: Oh is that enough? Well, no, exactly, no, no, no, it depends.

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Speaker 2: And don't get me wrong, that's thirty four thousand, five

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Speaker 2: hundred dollars that you didn't have before that. But that

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Speaker 2: is less than minimum wage. And we are seeing people

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Speaker 2: now retiring with mortgages. We're seeing them retiring not owning

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Speaker 2: property and having to pay rent. That comfortable retirement figure

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Speaker 2: that the ASFA is using assumes Beck that you own

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Speaker 2: your own home and you don't have housing costs. What

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Speaker 2: we need to do is actually find our own figure.

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Speaker 2: And so the best way that I can say to

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Speaker 2: do that is work off the five percent rule that

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Speaker 2: I've just invented right now. Right, So, if I said,

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Speaker 2: all right, well, what do you want to earn? Like

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Speaker 2: right now, let's pretend you have an income of seventy

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Speaker 2: thousand dollars per year, and I go, Beck, is that comfortable?

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Speaker 2: All right? Like I could probably live on that. Yep,

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Speaker 2: no worries. That makes sense for me. Between a couple.

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Speaker 2: Do I want more than that? Like there's two of

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Speaker 2: us now I'm currently in a dual income situation. Do

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Speaker 2: I want seventy thousand dollars for me and my husband?

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Speaker 2: You might go, yeah, that's fine. So if we go

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Speaker 2: you want to have seventy thousand dollars as in income

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Speaker 2: in retirement, we need to go to our calculator app

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Speaker 2: and we take seventy thousand and we times it by

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Speaker 2: twenty times in it by twenty beck will effectively mean

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Speaker 2: that you're using that income as five percent. So five

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Speaker 2: percent of one point four million dollars is seventy thousand dollars,

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Speaker 2: So that becomes your retirement goal. So that's the maths

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Speaker 2: that I'm going to tell you to use so beck

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Speaker 2: to work out what you want to retire with. You

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Speaker 2: need to work out what your retirement goal is, Like

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Speaker 2: what's your lifestyle? Is it that comfortable lifestyle that everyone

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Speaker 2: is talking about in media or is it something different?

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Speaker 2: It's so okay to have something different, But if it's

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Speaker 2: one point four million dollars across you and your partner,

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Speaker 2: what does that actually mean for you? How much do

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Speaker 2: you have to save each and every single month to

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Speaker 2: achieve that? Have you gone and looked at your current

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Speaker 2: SUPER contributions with your partner and worked out okay, well,

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Speaker 2: you know, my partner's employer contributes eight hundred dollars a

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Speaker 2: month to his SUPER and my employer contributes nine hundred, Like,

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Speaker 2: is that amount going to be enough to sustain you

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Speaker 2: in retirement? If it is, slay, you're well on the way.

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Speaker 2: Anything you do is above and beyond and that's really attractive.

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Speaker 2: If not, what are we going to do about it?

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Speaker 2: Are we going to be planning to contribute more to super?

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Speaker 2: Are we planning on investing outside of superannuation? Are we

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Speaker 2: just in the middle of a chapter of our lives

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Speaker 2: that is not possible and we need to put that

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Speaker 2: idea on the shelf. Do our hygiene, make sure we've

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Speaker 2: got a good super fund, make sure that it is

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Speaker 2: performing well. But no, I do not have the funds

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Speaker 2: right now to contribute extra. But I know that one

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Speaker 2: day when that comes, I'm going to change it. Like,

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Speaker 2: we need to have a plan irrespective of what our

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Speaker 2: current budget is. Does that make sense? I feel like

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Speaker 2: a maths figure is going to be the best way

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Speaker 2: to calculate it. I feel like I could tell you

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Speaker 2: to budget until the cows come home. And don't get

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Speaker 2: me wrong, a lot of people are going to listen

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Speaker 2: to this who are a lot more technical than I

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Speaker 2: am right now and say, Victoria, you haven't calculated for inflation, Victoria,

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Speaker 2: you haven't calculated for the changing rate of compound interest Victoria.

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Speaker 2: What about taxes, Victoria, what about the superannuation tax back?

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Speaker 2: I don't care about that in this moment. If this

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Speaker 2: math's calculation gets you off to a clean start. So

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Speaker 2: we want to do our hygiene. We want to make

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Speaker 2: sure that we're in the best possible pause, But then

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Speaker 2: we also want to do some maths and go, hey,

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Speaker 2: in my head, I've just worked out that a five

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Speaker 2: percent draw down is about seventy thousand dollars, Like, that's

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Speaker 2: what I want to earn, and that means I probably

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Speaker 2: am aiming for about one point four million dollars in

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Speaker 2: super We can work with that, We can go from there.

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Speaker 2: Do not get me wrong. Stuff is definitely going to

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Speaker 2: cost more in the future, because like a basket of

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Speaker 2: goods today, beck costs a lot more than it did

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Speaker 2: last year. But over time, inflation will hopefully be much

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Speaker 2: lower than the compounding interest that you achieve, so it

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Speaker 2: will work out in the end. Sure, But I feel

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Speaker 2: like that's a really good place for you to start.

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Speaker 2: So you've got a lot of clarity on your goal,

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Speaker 2: Like that's a very clean goal.

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Speaker 4: I just have it in my head. I imagine that

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Speaker 4: I'll be single when I'm older, and so I do

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Speaker 4: want to ask you like that doesn't necessarily have to

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Speaker 4: be romantic. You could be like, oh, I'm shacking up

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Speaker 4: with a housemate after I retire, you know what I mean? Like,

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Speaker 4: there could be other ways if you are single, you

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Speaker 4: can find that extra of like helping hands or whether

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Speaker 4: it's share housing or whatever it is.

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Speaker 2: It's an interesting conversation, right because I was having a

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Speaker 2: chat over the weekend with my best friend who is

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Speaker 2: currently single. If there are any hot chicks out there

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Speaker 2: who are interested in my best friend, let me know.

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Speaker 2: I'm happy to hook her sister up. But I was

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Speaker 2: talking to her about it, and she is the same

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Speaker 2: age as me, or she's a year younger than me,

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Speaker 2: and we were just talking about how she's just like

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Speaker 2: sick of this like share house life. I don't want

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Speaker 2: to share my living quarters with someone, Like I want

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Speaker 2: to go home and know that my stuff is left

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Speaker 2: where my stuff is left, and like I totally get it,

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Speaker 2: but I also just think, how can we make this

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Speaker 2: possible and feasible for people who just want to be

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Speaker 2: single by choice? Like what if you just decide you're

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Speaker 2: not interested in a relationship, Like that's not for everybody.

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Speaker 4: No, I don't feel like there's this.

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Speaker 2: Cookie cutter idea that you have to live with other people.

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Speaker 2: But like I don't know, Like if I was single,

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Speaker 2: I feel like I would want my own space at

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Speaker 2: this age, like she was right, Like if I left

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Speaker 2: something on the bench, I want it to be there

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Speaker 2: when I get back. If you know I cleaned the bathroom,

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Speaker 2: I want the bathroom to be clean when I get back.

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Speaker 2: I totally resonate with that because I can also empathize

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Speaker 2: with you, going, oh yeah, like you could have a

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Speaker 2: whole heap of options to support you, but like why

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Speaker 2: should that be the outcome? If that makes sense? Like, yeah,

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Speaker 2: as a choice, I also same best friend if we're

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Speaker 2: both single when we're older, we're moving in together and

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Speaker 2: we're going to live our best life. It's so flat

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Speaker 2: we are convinced that we're going to be the old

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Speaker 2: ladies on the scooters going around the nursing home getting

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Speaker 2: in trouble, Like that is my future, yes, but what

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Speaker 2: if you don't want you have to rely on another

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Speaker 2: human being to sure if your lifestyle. Yeah, and that

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Speaker 2: number of five hundred and ninety five thousand dollars back

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Speaker 2: at a five percent draw down rate is about twenty

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Speaker 2: nine thousand dollars, right, that's less than a couple's amount,

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Speaker 2: But it's still not enough to pay for rent. Even

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Speaker 2: like let's just be really modest outside side of a city.

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Speaker 2: You're still paying like three hundred dollars a week on average,

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Speaker 2: I would say for a one or two bedroom apartment.

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Speaker 2: But we're not talking about having a house with heaps

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Speaker 2: of land. That's still three hundred dollars a week, and

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Speaker 2: three hundred dollars a week over a year is still

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Speaker 2: half of what that income is. So that person is

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Speaker 2: paying fifty percent of their income to rent. And then

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Speaker 2: what groceries. Groceries right now are three hundred dollars a week,

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Speaker 2: whether you're single or a couple. Families are even worse.

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Speaker 4: It's not just scare.

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Speaker 2: You start breaking it down, and that's really grim. And

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Speaker 2: I mean, this is a Q and A. So we'll

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Speaker 2: get off this because I've probably got another podcast in

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Speaker 2: me to rent all about the renuation and retirement savings

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Speaker 2: and whatnot at some point. I mean, we've done it before,

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Speaker 2: but I get so passionate about this because if you're

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Speaker 2: not planning for retirement, you're shooting yourself in the foot. Sure, like,

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Speaker 2: there is small things that you can do today that

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Speaker 2: put you in hundreds of thousands of dollars of a

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Speaker 2: different position in the future that don't cost you a

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Speaker 2: dollar today, Like go do that. Go check your superanuation

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Speaker 2: and consolidate your accounts. Beck, when I checked my supbranuation

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Speaker 2: way back in the day, I had like five different accounts,

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Speaker 2: and I calculated that over that period of time. Had

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Speaker 2: I not consolidated my super, I would have spent an

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Speaker 2: additional seventy thousand dollars on superfees.

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Speaker 4: Oh, don't think about it. Do you think about it?

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Speaker 4: Don't think about it.

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Speaker 2: No, do think about it so much yourself from doing that,

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Speaker 2: because there are people that didn't make that change. There

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Speaker 2: are people right now that are exactly like you and me.

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Speaker 2: Had a heap of hospital jobs, we worked retail, you know,

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Speaker 2: we then got our big girl jobs and we like

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Speaker 2: didn't think about it again because super is icky and

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Speaker 2: it's not very sexy, Like, just go consolidate it. It's

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Speaker 2: the light at the end of the tunnel right now.

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Speaker 2: If you don't have anything in your budget right now

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Speaker 2: to put towards future, you at least make sure her

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Speaker 2: house is clean, be for real, Like, go and set

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Speaker 2: that up so that when future you can contribute more money.

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Speaker 2: She's not starting from scratch. Take care of a Oh anyway,

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Speaker 2: ask me another question, because otherwise this is going to

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Speaker 2: become a massive rant about zuperannuation and retirement and that's

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Speaker 2: not what y'all came for.

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Speaker 4: Okay, let's go to the next one. So what is

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Speaker 4: the rule of seventy two that I hear Victoria talk about.

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Speaker 2: Oh my gosh, I love the rule of seventy two.

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Speaker 2: I heard you talk about that now. I say it

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Speaker 2: all the time, but you just tune out, you don't.

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Speaker 4: Listen, Sugar, I'm sorry.

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Speaker 2: I feel like it makes sense though, because it's really boring.

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Speaker 2: So it's a resence that I first heard growing up

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Speaker 2: from my dad, who's an accountant, and he was always

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Speaker 2: like the rule of seventy two is very important to understand,

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Speaker 2: and like, as kid, I'm like, bor But it is

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Speaker 2: actually a really nifty little tool that's going to help

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Speaker 2: you to figure out how long it will take for

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Speaker 2: your investment to double. That's more attractive than just hearing

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Speaker 2: the rule of seventy two, right, Like, it's a formula

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Speaker 2: that helps you work out when your money is going

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Speaker 2: to be worth double. Attractive. We like it very demure.

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Speaker 2: So it's actually quite simple. It's a maths formula and

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Speaker 2: it's based on a fixed annual return, which I often

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Speaker 2: calculate at either five percent, which we've just discussed on

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Speaker 2: this exact podcast, or I talk about seven and a

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Speaker 2: half percent, because I like to be consistent across the

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Speaker 2: content that we put out, so all you need to

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Speaker 2: do is divide seventy two by your annual interest rate.

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Speaker 2: So for example, Beck, if you're earning an eight percent

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Speaker 2: interest rate, you're going to divide seventy two by eight.

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Speaker 2: I've done the maths for you, and you'll find out

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Speaker 2: that it will take about nine years for your money

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Speaker 2: to double. Ah, very sexy, very mindful.

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Speaker 4: We like, so if your annual return, if it's like

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Speaker 4: five or yeah, and or it would be different than.

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Speaker 2: Yeah, yeah, And we know that the average rate of

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Speaker 2: return for the Australian share market is just over nine percent,

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Speaker 2: so you could use that. But that's why I often

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Speaker 2: say on the podcast, Beck, your money will probably double

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Speaker 2: within seven to ten years, because that's the average timeframe

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Speaker 2: of the average rate of return across the Australian share

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Speaker 2: market but also the international share market and all the

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Speaker 2: assets that we talk about on the podcast. So it

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Speaker 2: works the other way around as well. So you want

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Speaker 2: to double your money in six years, Beck, you divide

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Speaker 2: seventy two by six and then you'll see that you

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Speaker 2: need a rate of return of twelve percent to hit that,

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Speaker 2: and you can work out if that's reasonable or not.

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Speaker 4: Where does the seventy two come from?

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Speaker 2: It's just the magic numbers, and you don't need to

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Speaker 2: understand the number, because if we were to explain exactly

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Speaker 2: how we get the seventy two number, it would be

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Speaker 2: an entire podcast in itself. But what you need to

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Speaker 2: understand is seventy two is the magic number. We love

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Speaker 2: seventy two, and seventy two is going to be the

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Speaker 2: number that tells you how to double your money. But

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Speaker 2: the rule of seventy two is basically a super quick,

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Speaker 2: super handy way to set really really stick investment goals

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Speaker 2: and understand how your money can grow and work over time.

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Speaker 2: And the thing I want you to keep in mind

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Speaker 2: is it's just approximate. It's obviously not set in concrete,

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Speaker 2: but it's an approximate and it works best with interest

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Speaker 2: rates between six and ten percent, which often in our

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Speaker 2: market at the moment, and historically that's what they've returned.

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Speaker 4: At Sure, and I guess we can all find comfort.

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Speaker 4: Just don't worry about where seventy two comes from. Just

402
00:20:10,880 --> 00:20:13,520
Speaker 4: know that experts and scientists and all these people.

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Speaker 2: You can goog You could do a deep dive. There

404
00:20:15,640 --> 00:20:17,960
Speaker 2: are a lot of really nerdy people who have done

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00:20:18,080 --> 00:20:20,640
Speaker 2: a lot of very good YouTube content on the rule

406
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Speaker 2: of seventy two. Go look at that. It's not for today.

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Speaker 2: What I want you to understand is that seventy two

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Speaker 2: is the magic number, and it's gonna teach you how

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Speaker 2: your money can double.

410
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Speaker 4: I love that.

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Speaker 2: I love money. I love it doubling.

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Speaker 4: I don't mind it wouldn't say no. Okay, here's another one.

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Speaker 4: Does chess matter? I'm thinking game of chess. I love

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Speaker 4: a game of chess.

415
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Speaker 2: I love chess as well.

416
00:20:41,680 --> 00:20:42,480
Speaker 4: Is that what you're thinking.

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Speaker 2: No, it's not. It's investing chess. Do you know what

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Speaker 2: investing chess is?

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Speaker 4: I know that you've probably told me, but I've gotta

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Speaker 4: be honest.

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Speaker 2: I don't know if I have. I can't remember. I

422
00:20:51,040 --> 00:20:53,200
Speaker 2: did it on an episode with Glenn James, Like we're

423
00:20:53,240 --> 00:20:57,720
Speaker 2: talking about chess and we broke down absolutely everything you

424
00:20:57,800 --> 00:21:00,680
Speaker 2: need to know about chess with him. So go back

425
00:21:00,680 --> 00:21:04,800
Speaker 2: and listen to that episode. But pop, quiz, what does

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00:21:04,880 --> 00:21:07,360
Speaker 2: chess stand for? If we're talking about it in an

427
00:21:07,359 --> 00:21:09,720
Speaker 2: investing perspective, so it.

428
00:21:09,760 --> 00:21:11,119
Speaker 4: Is actually an investing term?

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Speaker 1: Is that?

430
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Speaker 4: Okay? I'm going to guess it's.

431
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Speaker 2: Not a game currency.

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Speaker 4: Nope, We're going to be here for a few hours

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Speaker 4: you want to tell you yes, please, Yeah.

434
00:21:19,880 --> 00:21:24,639
Speaker 2: So it's clearing house electronics sub register system. That was

435
00:21:24,680 --> 00:21:28,280
Speaker 2: what you were going to guess next, actually your next guest.

436
00:21:28,200 --> 00:21:29,800
Speaker 4: Like, I get it. What does that mean?

437
00:21:30,160 --> 00:21:34,120
Speaker 2: So basically, if you're curious about how chess works, obviously

438
00:21:34,200 --> 00:21:37,000
Speaker 2: listen to that episode. But it's a computer system that

439
00:21:37,119 --> 00:21:39,520
Speaker 2: is used by the ASX to manage the settlement of

440
00:21:39,600 --> 00:21:45,680
Speaker 2: share transactions and to record who owns what and TLDR.

441
00:21:46,000 --> 00:21:49,560
Speaker 2: To me, as an individual investor, there is personal opinion,

442
00:21:49,800 --> 00:21:54,320
Speaker 2: not advice. Beck, I could not give a flying bleep

443
00:21:55,520 --> 00:21:59,400
Speaker 2: sound about chess. I don't care if I have chess.

444
00:21:59,600 --> 00:22:04,240
Speaker 2: I care obviously if my investments are registered through the ASX.

445
00:22:04,800 --> 00:22:09,640
Speaker 2: But I own ETFs and an ETF. The chess does

446
00:22:09,680 --> 00:22:13,159
Speaker 2: not sit with me. Chess sits with the underlying owner

447
00:22:13,359 --> 00:22:16,879
Speaker 2: or the founder of the ETF, and I'm quite comfortable

448
00:22:16,880 --> 00:22:20,640
Speaker 2: with them having that. Because we are a very secure country.

449
00:22:21,040 --> 00:22:23,359
Speaker 2: I don't need to worry about chess. I feel like

450
00:22:23,640 --> 00:22:26,119
Speaker 2: it's a very hot topic in our community at the moment.

451
00:22:26,480 --> 00:22:29,480
Speaker 2: If you are a bit more nerdy, which I am,

452
00:22:29,600 --> 00:22:31,679
Speaker 2: and you spend a lot of time on Reddit, and

453
00:22:31,720 --> 00:22:34,720
Speaker 2: you spend a lot of time you know, reading forums

454
00:22:34,880 --> 00:22:38,719
Speaker 2: about investing, lots of people get really heated about like

455
00:22:39,119 --> 00:22:42,520
Speaker 2: having to have it be chess and having to have

456
00:22:42,680 --> 00:22:45,600
Speaker 2: access to it and having your very own name on

457
00:22:45,760 --> 00:22:49,280
Speaker 2: that share. But from my perspective, it's actually about the

458
00:22:49,359 --> 00:22:52,600
Speaker 2: legitimacy of the asset that you own, and an ETF

459
00:22:52,920 --> 00:22:56,680
Speaker 2: is a very legitimate asset to own. I don't need

460
00:22:56,760 --> 00:22:59,280
Speaker 2: my name on every single individual share because when I

461
00:22:59,280 --> 00:23:01,520
Speaker 2: buy into an ETA, if I become an underlying owner

462
00:23:01,600 --> 00:23:04,720
Speaker 2: of that asset, does that make sense? And it's all

463
00:23:05,119 --> 00:23:08,920
Speaker 2: registered very legally, and I'm very comfortable with that. I'm

464
00:23:08,960 --> 00:23:12,960
Speaker 2: not going to lose my investment because I don't have

465
00:23:13,080 --> 00:23:16,399
Speaker 2: it chess sponsored. If that makes sense. Yeah, that's but

466
00:23:16,480 --> 00:23:19,000
Speaker 2: I think that it's one of those questions that people

467
00:23:19,040 --> 00:23:22,000
Speaker 2: start to ask when they're getting analysis paralysis, and we

468
00:23:22,040 --> 00:23:24,760
Speaker 2: did an episode about that recently as well. You are

469
00:23:24,800 --> 00:23:27,280
Speaker 2: diving deep and you are so excited to invest back,

470
00:23:27,359 --> 00:23:29,360
Speaker 2: and you start doing all of these googling and you're

471
00:23:29,400 --> 00:23:31,880
Speaker 2: like typing away and typing away and working out what's

472
00:23:31,920 --> 00:23:33,520
Speaker 2: going on, and then chess comes up and you're like,

473
00:23:33,520 --> 00:23:35,440
Speaker 2: oh my god, I didn't know anything about chess. I

474
00:23:35,520 --> 00:23:37,400
Speaker 2: better google that. And then you read all these people

475
00:23:37,400 --> 00:23:40,080
Speaker 2: who are really passionate about it and go, oh my god,

476
00:23:40,200 --> 00:23:44,920
Speaker 2: all the investments that I shortlisted, they're not Chess. Oh

477
00:23:45,040 --> 00:23:47,040
Speaker 2: now I'm gonna have to start again, Like, what does

478
00:23:47,040 --> 00:23:48,959
Speaker 2: this mean? How does this? I feel like it is

479
00:23:49,000 --> 00:23:53,359
Speaker 2: a semantic that matters to a very small handful of

480
00:23:53,440 --> 00:23:55,960
Speaker 2: people but does not matter to the masses.

481
00:23:56,600 --> 00:23:57,800
Speaker 4: Is there a benefit to chess?

482
00:23:57,920 --> 00:24:00,400
Speaker 2: I mean, yeah, you get your name on the individual.

483
00:23:59,880 --> 00:24:04,080
Speaker 4: Share okay, and that's like maybe more secure in some circumstances.

484
00:24:04,240 --> 00:24:06,439
Speaker 2: I don't believe it is more secure. I believe it

485
00:24:06,520 --> 00:24:09,800
Speaker 2: is more about having direct ownership.

486
00:24:09,359 --> 00:24:09,960
Speaker 4: Of that share.

487
00:24:10,040 --> 00:24:13,320
Speaker 2: I understand right now, the ETF that I own owns

488
00:24:13,359 --> 00:24:16,440
Speaker 2: that share certificate and keeps it very safe. I've trusted

489
00:24:16,480 --> 00:24:19,359
Speaker 2: them to invest with them, and I am as an

490
00:24:19,440 --> 00:24:23,359
Speaker 2: investor of that ETF and underlying owner of that trust

491
00:24:23,400 --> 00:24:27,920
Speaker 2: that owns all of those share certificates. So I don't mind. Okay,

492
00:24:28,920 --> 00:24:30,800
Speaker 2: I think I get that, And I feel like it's

493
00:24:30,840 --> 00:24:33,719
Speaker 2: a personal question, right, So you might still save all

494
00:24:33,800 --> 00:24:35,960
Speaker 2: v it does matter to me, yeah, And I go, well,

495
00:24:35,960 --> 00:24:38,119
Speaker 2: that's absolutely fine. What I want you to be is

496
00:24:38,160 --> 00:24:40,679
Speaker 2: as educated as possible to make the right decision for

497
00:24:40,760 --> 00:24:43,560
Speaker 2: you not the right decision for me, So go and

498
00:24:43,600 --> 00:24:48,360
Speaker 2: do your research. But personally, as an ETF holder, don't mind.

499
00:24:48,200 --> 00:24:48,600
Speaker 4: Don't mind.

500
00:24:48,600 --> 00:24:49,120
Speaker 2: It's all good.

501
00:24:49,320 --> 00:24:50,040
Speaker 4: Do you feel satified?

502
00:24:50,040 --> 00:24:52,000
Speaker 2: You feel I feel satisfied. I love chatting about this.

503
00:24:52,200 --> 00:24:53,200
Speaker 2: So what's the next one?

504
00:24:53,359 --> 00:24:56,359
Speaker 4: Okay, this question is actually something I haven't heard before,

505
00:24:56,400 --> 00:24:58,320
Speaker 4: but I should have asked you this already. What is

506
00:24:58,359 --> 00:25:01,360
Speaker 4: the difference between market buy limit by.

507
00:25:01,480 --> 00:25:04,800
Speaker 2: Ah, you want to talk investing with me? All right,

508
00:25:04,840 --> 00:25:07,240
Speaker 2: let's break down the difference between a market by order

509
00:25:07,280 --> 00:25:10,480
Speaker 2: and a limited by order in the super simple terms.

510
00:25:10,520 --> 00:25:13,520
Speaker 2: So when you place a market by order, you're saying,

511
00:25:13,520 --> 00:25:15,359
Speaker 2: all right, get me those shares right now at the

512
00:25:15,400 --> 00:25:17,600
Speaker 2: current price. Like I want to put an order in

513
00:25:17,640 --> 00:25:20,200
Speaker 2: and I want it delivered today. I want to own

514
00:25:20,200 --> 00:25:22,880
Speaker 2: those shares when the share market opens, Beck, I want

515
00:25:22,920 --> 00:25:25,080
Speaker 2: to own those shares and the share market is open

516
00:25:25,320 --> 00:25:27,600
Speaker 2: in Australia. I bet you won't guess this between ten

517
00:25:27,640 --> 00:25:30,119
Speaker 2: and four ten am for BM. Yeah, it gives you

518
00:25:30,359 --> 00:25:32,639
Speaker 2: time to get into work, get across your admin, and

519
00:25:32,640 --> 00:25:35,080
Speaker 2: then the share market opens and it goes wild, and

520
00:25:35,119 --> 00:25:36,560
Speaker 2: then it closes it four and then you can do

521
00:25:36,600 --> 00:25:39,800
Speaker 2: some admin and go home. Work life balance, I suppose

522
00:25:39,920 --> 00:25:43,400
Speaker 2: I love that, but that's interesting. That means that if

523
00:25:43,560 --> 00:25:45,840
Speaker 2: last night you put a share order in and the

524
00:25:45,880 --> 00:25:48,280
Speaker 2: market wasn't open, it would be fulfilled at ten am

525
00:25:48,320 --> 00:25:51,400
Speaker 2: this morning when the market did open back up, or

526
00:25:51,760 --> 00:25:55,160
Speaker 2: you could just log on right now ten twenty four am. Technically,

527
00:25:55,240 --> 00:25:56,679
Speaker 2: I mean not for the people listening, but for you

528
00:25:56,720 --> 00:26:00,600
Speaker 2: and I it is in the past. But that means

529
00:26:00,600 --> 00:26:02,320
Speaker 2: that you could go and buy a share right now

530
00:26:02,359 --> 00:26:04,560
Speaker 2: for that current price. So it's all about speed.

531
00:26:04,600 --> 00:26:05,360
Speaker 4: It's all about.

532
00:26:05,160 --> 00:26:07,639
Speaker 2: Getting the share as quickly as possible, but the price

533
00:26:07,720 --> 00:26:10,480
Speaker 2: might fluctuate slightly by the time the order goes through.

534
00:26:10,600 --> 00:26:10,760
Speaker 1: Ah.

535
00:26:11,160 --> 00:26:14,400
Speaker 2: The downside is that the market jumps up before your

536
00:26:14,560 --> 00:26:16,960
Speaker 2: order is filled. So you might put in an order

537
00:26:17,040 --> 00:26:20,240
Speaker 2: last night the market opens, it's actually at a higher rate.

538
00:26:20,280 --> 00:26:23,280
Speaker 2: Now you might end up paying more than you'd anticipate it.

539
00:26:23,840 --> 00:26:26,080
Speaker 2: So a market buy order is basically give me that,

540
00:26:26,119 --> 00:26:28,359
Speaker 2: don't care how much it costs, and I mean the

541
00:26:28,400 --> 00:26:30,680
Speaker 2: market doesn't fluctuate too much, so don't want to be

542
00:26:30,720 --> 00:26:33,200
Speaker 2: too dramatic about going give it to me at any

543
00:26:33,240 --> 00:26:35,520
Speaker 2: price like you're buying it and it might fluctuate a

544
00:26:35,560 --> 00:26:37,800
Speaker 2: few cents. You're not going to see a share jump

545
00:26:38,160 --> 00:26:42,359
Speaker 2: astronomically and then it absolutely financially screw you. But the

546
00:26:42,400 --> 00:26:44,240
Speaker 2: other one is kind of like the cool boy way

547
00:26:44,240 --> 00:26:47,679
Speaker 2: of investing. So a limited buy order is basically when

548
00:26:47,720 --> 00:26:49,480
Speaker 2: you're like too call for school, and you're like, I'm

549
00:26:49,600 --> 00:26:52,160
Speaker 2: only paying x amount and if it goes up, I'm

550
00:26:52,160 --> 00:26:55,159
Speaker 2: not interested. So you set the price that you are

551
00:26:55,280 --> 00:26:58,000
Speaker 2: willing to pay and the order will only go through

552
00:26:58,359 --> 00:27:01,480
Speaker 2: if the market hits or drops low that number. So

553
00:27:01,640 --> 00:27:04,359
Speaker 2: it's perfect if you've got a specific price in mind,

554
00:27:04,600 --> 00:27:08,159
Speaker 2: but you don't mind waiting. The catch is kind of

555
00:27:08,200 --> 00:27:10,960
Speaker 2: that if the market doesn't cooperate and the price doesn't

556
00:27:11,000 --> 00:27:13,600
Speaker 2: hit your limit that you've set, like your buy price,

557
00:27:14,000 --> 00:27:16,680
Speaker 2: you might not actually end up purchasing the share at all.

558
00:27:17,000 --> 00:27:18,399
Speaker 4: Yeah, okay, Yeah.

559
00:27:18,119 --> 00:27:20,440
Speaker 2: And I think that this is a good one where

560
00:27:21,600 --> 00:27:24,159
Speaker 2: I'm a bit petty, so like I don't want to

561
00:27:24,200 --> 00:27:27,960
Speaker 2: overspend on something, and if I see the market fluctuating

562
00:27:27,960 --> 00:27:29,879
Speaker 2: a little bit, so like, there's been a share that

563
00:27:29,920 --> 00:27:33,640
Speaker 2: I've recently been following, and to be honest, it's probably

564
00:27:33,680 --> 00:27:35,239
Speaker 2: a little bit of a gamble, so I'm not going

565
00:27:35,320 --> 00:27:37,840
Speaker 2: to share it, but I've been following it a little

566
00:27:37,840 --> 00:27:40,080
Speaker 2: bit and it's going up and down by a few

567
00:27:40,160 --> 00:27:42,800
Speaker 2: cents here and there. And this is just me being

568
00:27:43,359 --> 00:27:47,960
Speaker 2: investor Victoria. This is not me being Victoria creating retirement

569
00:27:48,000 --> 00:27:50,159
Speaker 2: fund Victoria. This is me having a little bit of

570
00:27:50,200 --> 00:27:54,080
Speaker 2: fun because I really enjoy investing. I've set a buy

571
00:27:54,240 --> 00:27:56,119
Speaker 2: price for that because I'm like, no, I've seen it

572
00:27:56,160 --> 00:27:58,280
Speaker 2: drop to that a couple of times over the last

573
00:27:58,320 --> 00:28:00,919
Speaker 2: you know, few months, and now I've finally decided that

574
00:28:00,960 --> 00:28:04,120
Speaker 2: I do want to invest in this asset. I don't

575
00:28:04,160 --> 00:28:06,360
Speaker 2: want to pay more than what other people have paid. Yeah,

576
00:28:06,400 --> 00:28:08,200
Speaker 2: I want to see it drop back down to that

577
00:28:08,480 --> 00:28:10,399
Speaker 2: because it's a bit of a risk. It's a bit

578
00:28:10,440 --> 00:28:13,400
Speaker 2: of a punt, so I'm not willing to pay that

579
00:28:13,560 --> 00:28:16,359
Speaker 2: even slightly higher price. But the same is true if

580
00:28:16,400 --> 00:28:18,480
Speaker 2: you're budgeting for a share right, like you might go,

581
00:28:18,520 --> 00:28:20,200
Speaker 2: I really want to, you know, get.

582
00:28:20,119 --> 00:28:20,800
Speaker 3: X for X.

583
00:28:21,160 --> 00:28:23,720
Speaker 2: This is a really good way of doing that. But

584
00:28:23,840 --> 00:28:28,879
Speaker 2: I also think it's important to understand that it's about

585
00:28:28,920 --> 00:28:34,119
Speaker 2: balancing urgency and price control, but then also remembering that

586
00:28:34,160 --> 00:28:36,840
Speaker 2: there's no such thing as timing the market. So when

587
00:28:36,840 --> 00:28:39,080
Speaker 2: we're talking about this, it's so nice to be able

588
00:28:39,160 --> 00:28:41,720
Speaker 2: to set a limited by order and go I only

589
00:28:41,760 --> 00:28:44,840
Speaker 2: want that asset if it comes in at X. But

590
00:28:46,080 --> 00:28:48,480
Speaker 2: there's never going to be a good time to invest, Beck,

591
00:28:48,560 --> 00:28:50,800
Speaker 2: because I can't predict it. Like the best time to

592
00:28:50,840 --> 00:28:53,160
Speaker 2: invest was twenty years ago. The second best time is

593
00:28:53,160 --> 00:28:56,400
Speaker 2: to get your shoe in the door today, because we know,

594
00:28:56,680 --> 00:28:59,479
Speaker 2: based on the rule of seventy two Beck, that your

595
00:28:59,480 --> 00:29:02,840
Speaker 2: money should double after a certain period of time. And like,

596
00:29:02,960 --> 00:29:06,440
Speaker 2: starting now means you're not starting tomorrow, and you cannot

597
00:29:06,480 --> 00:29:08,320
Speaker 2: predict that the share is going to go back down.

598
00:29:09,480 --> 00:29:12,560
Speaker 2: But for me, I don't want that share in my

599
00:29:12,680 --> 00:29:15,720
Speaker 2: portfolio if I have to overpay for it. I only

600
00:29:15,800 --> 00:29:17,760
Speaker 2: want it if I kind of get it for a

601
00:29:17,760 --> 00:29:20,280
Speaker 2: good deal. Yeah, it's like that top that you would

602
00:29:20,280 --> 00:29:21,640
Speaker 2: only purchase if it was on sale.

603
00:29:21,800 --> 00:29:22,320
Speaker 4: Totally.

604
00:29:22,680 --> 00:29:26,240
Speaker 2: You're like, I wouldn't pay full price for that. There

605
00:29:26,240 --> 00:29:28,920
Speaker 2: are some stores that I'm literally convinced I will never

606
00:29:28,960 --> 00:29:31,160
Speaker 2: purchase full price. I just know they go on too

607
00:29:31,160 --> 00:29:32,000
Speaker 2: good a sale.

608
00:29:32,160 --> 00:29:34,360
Speaker 4: I know I'm at the same house back right now,

609
00:29:34,440 --> 00:29:35,640
Speaker 4: I'm always on sale.

610
00:29:35,720 --> 00:29:39,200
Speaker 2: If you're paying full price at that store, what are

611
00:29:39,240 --> 00:29:39,520
Speaker 2: you doing?

612
00:29:39,600 --> 00:29:40,200
Speaker 5: What are you doing?

613
00:29:40,360 --> 00:29:41,520
Speaker 2: What are you doing with your life?

614
00:29:41,600 --> 00:29:45,040
Speaker 4: Wait? Literally three seconds, it'll be on sale again, exactly

615
00:29:45,080 --> 00:29:47,160
Speaker 4: all right, let's go for a quick break. I'm just

616
00:29:47,360 --> 00:29:48,840
Speaker 4: need to check out the house website and see this

617
00:29:49,080 --> 00:29:55,600
Speaker 4: on side. Yeah yeah, fair be everywhere. Okay, guys, we

618
00:29:55,640 --> 00:29:57,560
Speaker 4: are back and we are doing a bit of a

619
00:29:57,640 --> 00:30:00,440
Speaker 4: Q and A today. So V, I don't know how

620
00:30:00,480 --> 00:30:00,960
Speaker 4: you feel.

621
00:30:01,280 --> 00:30:03,880
Speaker 2: I'm ready. I'm sad that we checked the house website

622
00:30:03,920 --> 00:30:06,880
Speaker 2: and they were still on sale. God, I thought they'd

623
00:30:06,880 --> 00:30:10,200
Speaker 2: gone like super sale or something. But I really want

624
00:30:10,240 --> 00:30:13,320
Speaker 2: to answer more investing questions. This is my bread and butter, Babe.

625
00:30:13,360 --> 00:30:14,440
Speaker 4: You're in your element right now.

626
00:30:14,560 --> 00:30:17,080
Speaker 2: Yeah, living, live, love, laugh or something.

627
00:30:16,840 --> 00:30:17,680
Speaker 4: Yeah, something like that.

628
00:30:18,120 --> 00:30:18,520
Speaker 1: All right.

629
00:30:18,920 --> 00:30:22,080
Speaker 4: So the second one is how do you collect revenue

630
00:30:22,120 --> 00:30:24,360
Speaker 4: from investments? Oh?

631
00:30:24,520 --> 00:30:27,280
Speaker 2: Yeah, beg, you're investing now, you're an investor.

632
00:30:27,560 --> 00:30:29,160
Speaker 4: Actually, all these questions of mine.

633
00:30:29,040 --> 00:30:30,760
Speaker 2: Yeah, how is it going to make you rich?

634
00:30:32,640 --> 00:30:33,560
Speaker 4: I'm not ready for that.

635
00:30:34,000 --> 00:30:36,680
Speaker 2: Let me tell you. So. There are a heap of

636
00:30:36,680 --> 00:30:40,240
Speaker 2: different ways that you can make money from shares. Investment

637
00:30:40,360 --> 00:30:43,880
Speaker 2: increases in value over time, and then you potentially sell

638
00:30:43,920 --> 00:30:46,760
Speaker 2: it for a profit. Money win. The other one is

639
00:30:46,800 --> 00:30:49,480
Speaker 2: that it pays you for the privilege of owning it.

640
00:30:50,120 --> 00:30:53,040
Speaker 2: I love that, Like imagine something just being like, hey, Beck,

641
00:30:53,160 --> 00:30:55,960
Speaker 2: thanks for coming here's some cash. Oh, thanks for still

642
00:30:56,000 --> 00:31:00,280
Speaker 2: being here. There's some cash. Literally, your share portfolio is

643
00:31:00,320 --> 00:31:03,640
Speaker 2: your sugar daddy. Now that's so good, Like start referring

644
00:31:03,680 --> 00:31:05,000
Speaker 2: to it as daddy.

645
00:31:05,440 --> 00:31:08,400
Speaker 4: Yeah, ideally they like that you like it more.

646
00:31:08,480 --> 00:31:11,200
Speaker 2: But there are a few things. So increasing in value

647
00:31:11,400 --> 00:31:16,200
Speaker 2: is the most widely understood way of making money in

648
00:31:16,240 --> 00:31:18,080
Speaker 2: the share market, right, Like you bought a share for

649
00:31:18,120 --> 00:31:20,600
Speaker 2: a dollar and then in ten years Beck, you sold

650
00:31:20,600 --> 00:31:21,520
Speaker 2: it for ten money.

651
00:31:21,520 --> 00:31:21,720
Speaker 4: Win.

652
00:31:22,520 --> 00:31:27,680
Speaker 2: But for me, I am greedy. I want my shares

653
00:31:27,720 --> 00:31:29,680
Speaker 2: to increase in value, but I also want them to

654
00:31:29,760 --> 00:31:32,480
Speaker 2: pay me for the privilege. So we have talked about

655
00:31:32,480 --> 00:31:36,880
Speaker 2: it on podcasts before. Dividend yielding shares. So a dividend

656
00:31:37,080 --> 00:31:40,560
Speaker 2: is a payment that a company makes to you because

657
00:31:40,600 --> 00:31:44,080
Speaker 2: you are technically a part owner in the business, and

658
00:31:44,240 --> 00:31:47,200
Speaker 2: as a part owner, you are entitled to part of

659
00:31:47,240 --> 00:31:51,120
Speaker 2: the profit. And the percentage of which you own shares

660
00:31:51,520 --> 00:31:53,880
Speaker 2: is the percentage that you get paid out. And I

661
00:31:53,920 --> 00:31:56,640
Speaker 2: always use NAB shares for some reason on the podcast

662
00:31:56,720 --> 00:31:59,640
Speaker 2: as an example, So let's keep that consistent. So say

663
00:31:59,680 --> 00:32:01,800
Speaker 2: you which is a NAB share, Beck, and a NAB

664
00:32:01,880 --> 00:32:05,680
Speaker 2: share is probably today about thirty seven dollars per share,

665
00:32:06,040 --> 00:32:07,440
Speaker 2: and we're just going to keep it clean. You just

666
00:32:07,480 --> 00:32:11,840
Speaker 2: purchased one. The dividend yield over this year four NAB

667
00:32:11,920 --> 00:32:14,920
Speaker 2: has been a dollar and sixty eight cents for the

668
00:32:15,080 --> 00:32:18,560
Speaker 2: entirety of the year, so it pays out twice a year,

669
00:32:19,040 --> 00:32:22,920
Speaker 2: and it pays out in July and December, and it

670
00:32:22,960 --> 00:32:25,480
Speaker 2: gave in December about eighty four cents and also gave

671
00:32:25,560 --> 00:32:27,760
Speaker 2: eighty four cents in July, so that brings you up

672
00:32:27,800 --> 00:32:30,840
Speaker 2: to a total of one dollar and sixty eight cents.

673
00:32:30,880 --> 00:32:33,240
Speaker 2: Which you go, oh, one dollar and sixty eight cents

674
00:32:33,280 --> 00:32:36,800
Speaker 2: for a NAB share, didn't you say it was thirty

675
00:32:36,840 --> 00:32:39,120
Speaker 2: seven dollars. That doesn't seem like a good deal, but

676
00:32:39,320 --> 00:32:42,560
Speaker 2: is a good deal because you end up with a

677
00:32:42,600 --> 00:32:46,760
Speaker 2: dividend yield of about four point five five percent, which

678
00:32:46,880 --> 00:32:48,880
Speaker 2: in the grand scheme of things. You know how we

679
00:32:48,920 --> 00:32:51,560
Speaker 2: said that the Australian share market returns about nine percent

680
00:32:51,640 --> 00:32:54,760
Speaker 2: each year. It's obviously significantly lower than that. But NAB

681
00:32:54,920 --> 00:32:58,840
Speaker 2: is consistent. It is a blue chip share. It is

682
00:32:58,960 --> 00:33:02,840
Speaker 2: a share that is tried and true and tested. It's

683
00:33:02,920 --> 00:33:07,080
Speaker 2: like that consistent friend that is always there. So I

684
00:33:07,320 --> 00:33:10,880
Speaker 2: love to see that. Also, it increases in price over time.

685
00:33:11,080 --> 00:33:14,480
Speaker 2: So I'm being paid eighty four cents every six months

686
00:33:14,520 --> 00:33:18,520
Speaker 2: for owning an AB share. Again, not a recommendation, just

687
00:33:18,760 --> 00:33:23,280
Speaker 2: an example, but these are companies that are paying percentages

688
00:33:23,320 --> 00:33:26,400
Speaker 2: of their profit to you. Beck that right now don't

689
00:33:26,400 --> 00:33:30,640
Speaker 2: seem really big, but can either contribute to your share portfolio.

690
00:33:30,760 --> 00:33:33,800
Speaker 2: So you can pick what's called a dividend reinvestment plan

691
00:33:33,880 --> 00:33:36,040
Speaker 2: and it's just a box on your SHARE's 's account.

692
00:33:36,520 --> 00:33:39,720
Speaker 2: Oh like, this is just side note for you. Obviously

693
00:33:39,720 --> 00:33:42,520
Speaker 2: anyone listening, you can hit dividend reinvestment plan and every

694
00:33:42,560 --> 00:33:45,360
Speaker 2: dollar that your share portfolio makes will just be reinvested

695
00:33:45,400 --> 00:33:47,400
Speaker 2: for you, so you don't even have to lift a finger.

696
00:33:47,680 --> 00:33:51,240
Speaker 2: But then when you get to retirement, Beck, that eighty

697
00:33:51,280 --> 00:33:54,480
Speaker 2: four cents will be put into your bank account instead

698
00:33:54,520 --> 00:33:58,040
Speaker 2: of your share portfolio, and that becomes your income instead

699
00:33:58,120 --> 00:34:00,560
Speaker 2: of you going to work. So over time, when you

700
00:34:00,600 --> 00:34:03,360
Speaker 2: have more and more shares and more and more profit,

701
00:34:03,880 --> 00:34:07,680
Speaker 2: that eighty four cents becomes that, you know, forty thousand

702
00:34:07,720 --> 00:34:10,520
Speaker 2: dollars or that seventy thousand dollars of income that we

703
00:34:10,520 --> 00:34:12,799
Speaker 2: were talking about at the start of the episode.

704
00:34:13,160 --> 00:34:18,359
Speaker 4: If you had, for example, one hundred shares, yes, then

705
00:34:18,920 --> 00:34:20,160
Speaker 4: there we go, we've got.

706
00:34:20,120 --> 00:34:23,480
Speaker 2: To start coming. And this is say it can be

707
00:34:23,520 --> 00:34:26,919
Speaker 2: so disheartening at the start of an investment journey because

708
00:34:26,960 --> 00:34:29,319
Speaker 2: you're like, oh, gung ho, and you're so excited, and

709
00:34:29,360 --> 00:34:31,480
Speaker 2: I just don't want you personally to fall in this

710
00:34:31,560 --> 00:34:34,520
Speaker 2: trap of like, I've invested thee and I'm so excited.

711
00:34:34,520 --> 00:34:36,359
Speaker 2: And then it comes to tax time and you get

712
00:34:36,360 --> 00:34:38,520
Speaker 2: your tax statement, which is probably one of the first

713
00:34:38,560 --> 00:34:41,279
Speaker 2: times that you would just see on a statement of

714
00:34:41,320 --> 00:34:44,160
Speaker 2: paper how much you earned the previous year on your investment.

715
00:34:44,200 --> 00:34:46,480
Speaker 2: You'd be like, wait, what it was like four dollars?

716
00:34:46,480 --> 00:34:47,600
Speaker 4: What the hell? Right?

717
00:34:47,719 --> 00:34:50,720
Speaker 2: All of this for that? Like yes, because at the start,

718
00:34:50,880 --> 00:34:54,360
Speaker 2: compounding starts off really slow, and it really starts to

719
00:34:54,480 --> 00:34:57,279
Speaker 2: kick into gear at about seven years. And that goes

720
00:34:57,320 --> 00:35:00,520
Speaker 2: back to our rule of seventy two where you usually

721
00:35:00,880 --> 00:35:03,799
Speaker 2: if you have a rate of return between six and

722
00:35:03,880 --> 00:35:06,360
Speaker 2: ten percent, it will usually be seven to ten years.

723
00:35:06,719 --> 00:35:10,480
Speaker 2: So compounding starts to take effect once your money starts

724
00:35:10,520 --> 00:35:14,560
Speaker 2: to double, and once it starts to double, compounding just turbocharges,

725
00:35:14,640 --> 00:35:18,120
Speaker 2: which is so exciting. But that's why we talk a

726
00:35:18,160 --> 00:35:22,319
Speaker 2: lot about delayed gratification on the podcast, because you need

727
00:35:22,400 --> 00:35:24,160
Speaker 2: to be in it for the long term, you can't

728
00:35:24,200 --> 00:35:26,160
Speaker 2: just go, oh, it was four dollars v it wasn't

729
00:35:26,160 --> 00:35:28,360
Speaker 2: worth it like that. Four dollars. Next year is going

730
00:35:28,400 --> 00:35:30,680
Speaker 2: to be eight, and after that it's sixteen, and after

731
00:35:30,719 --> 00:35:33,359
Speaker 2: that it just gets bigger and bigger, and it's so exciting. Beck.

732
00:35:33,840 --> 00:35:37,000
Speaker 2: So that's cash dividends. You mentioned frank and who's giving

733
00:35:37,080 --> 00:35:39,319
Speaker 2: him credit earlier? And you want to know about that.

734
00:35:39,520 --> 00:35:44,279
Speaker 2: So some dividends come with a franking credit, and I

735
00:35:44,360 --> 00:35:48,960
Speaker 2: think a franking credit is best viewed as a tiny

736
00:35:49,000 --> 00:35:52,040
Speaker 2: flag that they put on their heads. So your dividend

737
00:35:52,080 --> 00:35:56,280
Speaker 2: comes in and it might be a unfranked dividend, no flag,

738
00:35:56,760 --> 00:35:59,720
Speaker 2: franked dividend. He's got a fancy hat with a flag

739
00:35:59,719 --> 00:36:02,400
Speaker 2: on it, right, and it means that the company he

740
00:36:02,400 --> 00:36:05,800
Speaker 2: has come from has already paid the thirty percent tax

741
00:36:05,840 --> 00:36:08,719
Speaker 2: at a corporate rate and you get a credit for it.

742
00:36:09,239 --> 00:36:11,680
Speaker 2: So he's really attractive. So the flag on his hat

743
00:36:11,680 --> 00:36:14,640
Speaker 2: doesn't make him look silly. It makes him look more attractive,

744
00:36:15,080 --> 00:36:17,880
Speaker 2: and it represents the tax that the company's already paid

745
00:36:17,920 --> 00:36:21,239
Speaker 2: on the profits that have been distributed as dividends, and

746
00:36:21,320 --> 00:36:23,680
Speaker 2: those credits they can be collected. So you want lots

747
00:36:23,719 --> 00:36:26,759
Speaker 2: of little men with lots of little hats, because it's

748
00:36:26,880 --> 00:36:29,160
Speaker 2: used to offset your personal tax liability.

749
00:36:29,560 --> 00:36:32,120
Speaker 4: Oh so for example, if you got a dividend, like

750
00:36:32,160 --> 00:36:35,600
Speaker 4: a one dollar dividends from NAB and they had not

751
00:36:35,719 --> 00:36:37,440
Speaker 4: paid tax yet on this difference.

752
00:36:37,320 --> 00:36:39,760
Speaker 2: You'd pay four takes on that dividend if.

753
00:36:39,640 --> 00:36:41,279
Speaker 4: They had the tax has been taken out.

754
00:36:41,320 --> 00:36:44,000
Speaker 2: Yes, but maybe no. So it depends on what your

755
00:36:44,040 --> 00:36:48,279
Speaker 2: marginal tax rate is. So if you pay tax that's

756
00:36:48,360 --> 00:36:52,239
Speaker 2: less than what your franking credit is, it's not as attractive.

757
00:36:52,600 --> 00:36:54,759
Speaker 2: But for most of us, we have a tax rate

758
00:36:54,840 --> 00:36:57,560
Speaker 2: of thirty nine percent or more. And I say most

759
00:36:57,600 --> 00:37:00,120
Speaker 2: of us because that's just how the Bell curve falls.

760
00:37:00,120 --> 00:37:01,680
Speaker 2: Not a good or a bad thing. It just is

761
00:37:02,320 --> 00:37:05,600
Speaker 2: the state of the economy. Most people fall into a

762
00:37:05,640 --> 00:37:09,399
Speaker 2: thirty nine percent tax bracket, and because of that, you're

763
00:37:09,480 --> 00:37:14,640
Speaker 2: nine percent on average better off. Ah, because the corporate

764
00:37:14,719 --> 00:37:17,239
Speaker 2: tax rate is about thirty percent. Yeah, and he's got

765
00:37:17,280 --> 00:37:18,640
Speaker 2: a thirty percent flag on his head.

766
00:37:18,920 --> 00:37:21,040
Speaker 4: So even if you make more or less, or you

767
00:37:21,080 --> 00:37:22,960
Speaker 4: fit into a different tax bracket, you don't have to

768
00:37:23,000 --> 00:37:24,920
Speaker 4: pay any more tax.

769
00:37:25,280 --> 00:37:27,239
Speaker 2: Well, you might have to pay the difference, so you

770
00:37:27,320 --> 00:37:29,320
Speaker 2: might have to pay the nine percent, but that's instead

771
00:37:29,320 --> 00:37:30,359
Speaker 2: of thirty nine yer cent.

772
00:37:31,080 --> 00:37:32,799
Speaker 4: That's very sexy, really good.

773
00:37:33,000 --> 00:37:35,560
Speaker 2: Yeah, so tiny Dividend has a hat and the hat

774
00:37:35,600 --> 00:37:38,040
Speaker 2: is a flag. I don't know if that's how every

775
00:37:38,080 --> 00:37:41,040
Speaker 2: other ex financial advisor used it, but I've always just

776
00:37:41,080 --> 00:37:43,560
Speaker 2: thought as Frank as a dude who has a red

777
00:37:43,560 --> 00:37:45,160
Speaker 2: hat on and it's got a flag on it.

778
00:37:45,280 --> 00:37:48,799
Speaker 4: I'm also curious for anyone listening what their little man

779
00:37:48,840 --> 00:37:51,080
Speaker 4: with a flag looks like. Mine is a white ball

780
00:37:51,120 --> 00:37:53,080
Speaker 4: with a red hat, and I wonder what yours looks like.

781
00:37:53,840 --> 00:37:57,000
Speaker 2: It's a MEDIOCM middle aged white man, ah with a

782
00:37:58,080 --> 00:37:59,840
Speaker 2: bad fall cat like you know, like the cap that

783
00:37:59,840 --> 00:38:02,000
Speaker 2: you that has the like fan on the top of it.

784
00:38:02,120 --> 00:38:04,760
Speaker 4: Yea's like a colorful hat really called propeller.

785
00:38:04,800 --> 00:38:07,160
Speaker 2: I don't know, propeller hat. Yeah, so that is Frank.

786
00:38:07,480 --> 00:38:09,000
Speaker 2: Let's get on to some more questions.

787
00:38:09,160 --> 00:38:11,880
Speaker 4: All right, let's go. So this next one is an

788
00:38:11,880 --> 00:38:15,080
Speaker 4: important one. What type of reporting do I need for

789
00:38:15,120 --> 00:38:15,680
Speaker 4: tax time?

790
00:38:15,960 --> 00:38:18,480
Speaker 2: Oh? You need all of it. Thankfully we live in

791
00:38:18,520 --> 00:38:22,520
Speaker 2: twenty twenty four, so a lot of investing platforms and

792
00:38:22,560 --> 00:38:26,640
Speaker 2: a lot of your employers actually have data feeds that

793
00:38:26,719 --> 00:38:29,200
Speaker 2: go straight to the ATO. So if you don't log

794
00:38:29,239 --> 00:38:32,040
Speaker 2: in on the first of July, which I don't recommend

795
00:38:32,080 --> 00:38:34,000
Speaker 2: anyone does their tax on the first of July. I

796
00:38:34,000 --> 00:38:36,640
Speaker 2: know lots of people are like so gung ho about

797
00:38:36,680 --> 00:38:38,560
Speaker 2: like getting it done. Oh my god, I get my return.

798
00:38:38,640 --> 00:38:40,879
Speaker 2: I know that that's you, Beck. But if you wait

799
00:38:40,920 --> 00:38:44,320
Speaker 2: a little bit longer, it gives time for your employer

800
00:38:44,480 --> 00:38:47,640
Speaker 2: to upload all of your tax information, It gives time

801
00:38:47,680 --> 00:38:49,920
Speaker 2: for all of the investing platforms to upload it, and

802
00:38:49,960 --> 00:38:52,040
Speaker 2: it might already be on the portal. To make your

803
00:38:52,080 --> 00:38:55,920
Speaker 2: life really, really easy. But when it's time to do

804
00:38:55,960 --> 00:38:58,600
Speaker 2: your taxes, you need to make sure that you're as

805
00:38:58,680 --> 00:39:02,880
Speaker 2: prepared as possible. In Australia, this includes understanding and knowing

806
00:39:02,920 --> 00:39:06,200
Speaker 2: the dividends from your shares, the interest from your savings

807
00:39:06,200 --> 00:39:09,480
Speaker 2: account or your bonds that you own, and any rental

808
00:39:09,480 --> 00:39:12,000
Speaker 2: income that you have received. If you are a fancy

809
00:39:12,160 --> 00:39:15,520
Speaker 2: pance and have an investment property, if you've made any

810
00:39:15,600 --> 00:39:18,239
Speaker 2: sales like you've sold some shares or some property, you

811
00:39:18,320 --> 00:39:21,920
Speaker 2: need to report any capital gains or losses and remember

812
00:39:22,400 --> 00:39:25,560
Speaker 2: that there is a potential CGT discount if you've held

813
00:39:25,560 --> 00:39:28,200
Speaker 2: the asset for more than a year. If so, you're

814
00:39:28,239 --> 00:39:30,719
Speaker 2: in a good position because yes well, you'll still have

815
00:39:30,800 --> 00:39:33,640
Speaker 2: to pay capital gains tax on that. The profit will

816
00:39:33,680 --> 00:39:37,200
Speaker 2: be taxed at fifty percent your marginal tax rate. If

817
00:39:37,200 --> 00:39:39,719
Speaker 2: you own an asset for less than twelve months, make

818
00:39:39,760 --> 00:39:42,600
Speaker 2: a profit and then sell, the profit will be taxed

819
00:39:42,600 --> 00:39:45,640
Speaker 2: at your marginal tax rate, and we pay tax on

820
00:39:45,680 --> 00:39:49,600
Speaker 2: money that we earn. That is just a reminder that

821
00:39:49,640 --> 00:39:52,960
Speaker 2: there are potential CGT discounts if you own it for

822
00:39:53,000 --> 00:39:56,280
Speaker 2: more than a year. I have more term holdings. Now

823
00:39:56,520 --> 00:40:01,320
Speaker 2: they're moving back into reporting. You can also deductions related

824
00:40:01,360 --> 00:40:03,919
Speaker 2: to your investments, which is important to track as well.

825
00:40:03,960 --> 00:40:07,120
Speaker 2: So if you've got interest on loans or property related

826
00:40:07,160 --> 00:40:11,120
Speaker 2: expenses or like management fees, keep all your paperwork, your receipts,

827
00:40:11,160 --> 00:40:14,840
Speaker 2: your bank statements, transaction histories, and keep them in order

828
00:40:15,280 --> 00:40:17,480
Speaker 2: because the ATO might want to check your claims, you

829
00:40:17,560 --> 00:40:20,360
Speaker 2: might get audited, but stay on top of it. Not

830
00:40:20,480 --> 00:40:23,840
Speaker 2: only because obviously we want to comply with the ATO

831
00:40:24,000 --> 00:40:27,120
Speaker 2: and not getting any trouble or strife, but it optimizes

832
00:40:27,160 --> 00:40:29,480
Speaker 2: your return, Like you're going to get the best possible

833
00:40:29,520 --> 00:40:33,520
Speaker 2: return if you track your expenses. Yeah, smart girl, things.

834
00:40:33,440 --> 00:40:35,240
Speaker 4: Smart girl, God, you're smart.

835
00:40:35,400 --> 00:40:38,240
Speaker 2: No, not me, Just people who track their expenses are smart.

836
00:40:38,560 --> 00:40:39,279
Speaker 2: Ten out of ten.

837
00:40:39,640 --> 00:40:43,080
Speaker 4: Okay, so this is going to sound like me, but

838
00:40:43,120 --> 00:40:43,520
Speaker 4: it's not me.

839
00:40:43,840 --> 00:40:45,279
Speaker 2: I feel like all of them sound like you.

840
00:40:45,400 --> 00:40:47,160
Speaker 4: They all do sound like me. Actually, you're right.

841
00:40:47,400 --> 00:40:50,240
Speaker 2: I saw them come in from the community. That's literally

842
00:40:50,239 --> 00:40:53,400
Speaker 2: your only saving grace. Otherwise I do questioning whether you

843
00:40:53,640 --> 00:40:56,920
Speaker 2: just keep this episode in so that you got investing advice.

844
00:40:57,000 --> 00:41:00,400
Speaker 2: Now you started, I've got receipts, so do I.

845
00:41:00,400 --> 00:41:02,799
Speaker 4: I want to try a budget. What's the smallest amount

846
00:41:02,880 --> 00:41:03,640
Speaker 4: I can invest with?

847
00:41:03,800 --> 00:41:04,239
Speaker 2: One cent?

848
00:41:05,120 --> 00:41:06,640
Speaker 4: That is so true, v I was gonna say, I

849
00:41:06,680 --> 00:41:09,239
Speaker 4: was actually about to screen this from the rooftops.

850
00:41:09,400 --> 00:41:10,040
Speaker 2: Yeah, one cent.

851
00:41:10,080 --> 00:41:13,080
Speaker 4: That you say, start with as little or as much

852
00:41:13,080 --> 00:41:13,560
Speaker 4: as you like.

853
00:41:13,640 --> 00:41:16,319
Speaker 2: Yeah, but like you are investing on Charesy's right now,

854
00:41:16,719 --> 00:41:18,520
Speaker 2: you can literally invest for one cent.

855
00:41:18,560 --> 00:41:19,880
Speaker 4: I've got nine dollars in there.

856
00:41:19,880 --> 00:41:23,600
Speaker 2: See exactly. That's a lot more than one cent. So

857
00:41:23,760 --> 00:41:26,640
Speaker 2: let's hold on. Let's flip this Beck. You started your

858
00:41:26,640 --> 00:41:28,440
Speaker 2: investing journey, how much did you start with?

859
00:41:29,239 --> 00:41:31,920
Speaker 4: I started with ten dollars actually, and it has gone down.

860
00:41:31,960 --> 00:41:35,480
Speaker 4: But as you say, it's the long game that we're playing. Yeah,

861
00:41:35,520 --> 00:41:38,239
Speaker 4: I think it just feels good knowing that I have

862
00:41:38,280 --> 00:41:40,560
Speaker 4: some money out of shares. Like it's good to start. Yeah,

863
00:41:40,920 --> 00:41:42,960
Speaker 4: I feel motivated. It's just like chuck a couple bucks

864
00:41:42,960 --> 00:41:45,000
Speaker 4: in there every now and then. It's doing some I

865
00:41:45,040 --> 00:41:47,000
Speaker 4: don't know what it's doing, but it's doing doing its

866
00:41:47,080 --> 00:41:48,600
Speaker 4: thing exactly.

867
00:41:48,200 --> 00:41:51,160
Speaker 2: And to me, that's so exciting and probably even better

868
00:41:51,200 --> 00:41:53,560
Speaker 2: than me explaining it because I feel like a broken record.

869
00:41:53,560 --> 00:41:55,239
Speaker 2: But I'm like, you can invest for as little as

870
00:41:55,239 --> 00:41:58,959
Speaker 2: one cent, like Beck's investing with nine dollars. I feel

871
00:41:58,960 --> 00:42:02,680
Speaker 2: like that's really a proachable and it's really realistic, Like

872
00:42:02,760 --> 00:42:05,720
Speaker 2: it's where lots of us start, and it's where lots

873
00:42:05,719 --> 00:42:08,919
Speaker 2: of us should start. Because Beck, you're dipping your toes

874
00:42:08,920 --> 00:42:11,600
Speaker 2: in the water. Like if you lost that nine bucks,

875
00:42:11,600 --> 00:42:15,600
Speaker 2: you're like, beh, whatever, that's absolutely fine. But if you'd

876
00:42:15,640 --> 00:42:18,600
Speaker 2: started with like five hundred dollars and you'd seen it

877
00:42:18,640 --> 00:42:20,840
Speaker 2: go down a little bit, because that's the nature of

878
00:42:20,880 --> 00:42:23,240
Speaker 2: the market, I think you would have been really stressed.

879
00:42:23,320 --> 00:42:23,959
Speaker 4: Yeah, that's true.

880
00:42:23,960 --> 00:42:25,279
Speaker 2: I think you would have been like, oh my god,

881
00:42:25,320 --> 00:42:28,479
Speaker 2: the I've actually lost so much money, Like I've lost

882
00:42:28,520 --> 00:42:31,600
Speaker 2: ten percent. And that's what you're explaining to me. You

883
00:42:31,640 --> 00:42:34,399
Speaker 2: were like, up, started with ten dollars, it's now down

884
00:42:34,440 --> 00:42:36,880
Speaker 2: to nine. You've lost ten percent, but you're not that

885
00:42:37,000 --> 00:42:39,480
Speaker 2: stressed about it because you started small and you're going

886
00:42:39,520 --> 00:42:42,080
Speaker 2: to build it up over time to put yourself in

887
00:42:42,120 --> 00:42:45,759
Speaker 2: the best possible position. So obviously great news is if

888
00:42:45,800 --> 00:42:47,920
Speaker 2: you're on a tight budget, Beck, you can invest with

889
00:42:48,000 --> 00:42:51,520
Speaker 2: as little as one cent. I just see no barrier

890
00:42:51,600 --> 00:42:55,719
Speaker 2: to entry anymore except people having cash flow and having

891
00:42:55,800 --> 00:42:59,120
Speaker 2: an education, because I feel like the education part is

892
00:42:59,160 --> 00:43:01,360
Speaker 2: the thing that terror fives people. You don't know what

893
00:43:01,400 --> 00:43:03,480
Speaker 2: you don't know, and if you don't know what you

894
00:43:03,520 --> 00:43:05,359
Speaker 2: don't know, you're not going to do anything, are you.

895
00:43:05,920 --> 00:43:07,960
Speaker 2: So I feel like my job is education, and then

896
00:43:08,000 --> 00:43:10,560
Speaker 2: all these other platforms it's their job to make it

897
00:43:10,600 --> 00:43:13,239
Speaker 2: super accessible for you to get your foot in the door.

898
00:43:13,400 --> 00:43:17,440
Speaker 2: Because I can guarantee Beck that nine dollars You'll blink

899
00:43:17,840 --> 00:43:20,440
Speaker 2: and we'll be talking in a couple of years and

900
00:43:20,440 --> 00:43:23,920
Speaker 2: you'll be like, oh, yeah, it's nine grand, yo. But

901
00:43:24,000 --> 00:43:26,040
Speaker 2: it is that's the plan, is it? Not Like the

902
00:43:26,080 --> 00:43:27,880
Speaker 2: plan is not to take the money out, it's to

903
00:43:27,880 --> 00:43:30,920
Speaker 2: build over your lifetime to put you in the best

904
00:43:30,960 --> 00:43:35,160
Speaker 2: possible position so that when retirement, as boring as it sound, comes,

905
00:43:35,520 --> 00:43:37,239
Speaker 2: you can afford to go out for the coffees that

906
00:43:37,280 --> 00:43:40,160
Speaker 2: you love so much, like, we don't want to compromise

907
00:43:40,200 --> 00:43:42,840
Speaker 2: our lifestyle, and by you doing this, you're putting future

908
00:43:42,880 --> 00:43:44,960
Speaker 2: you in the position to not have to do that.

909
00:43:46,080 --> 00:43:47,040
Speaker 2: Isn't that sexy?

910
00:43:47,239 --> 00:43:48,480
Speaker 4: Definitely so sexy.

911
00:43:48,719 --> 00:43:52,279
Speaker 2: So obviously platforms like shares is the way they make

912
00:43:52,320 --> 00:43:55,560
Speaker 2: it accessible is not because, as we said, nabshares thirty

913
00:43:55,640 --> 00:44:00,680
Speaker 2: seven dollars, that's not that accessible. But they allow you

914
00:44:00,719 --> 00:44:03,560
Speaker 2: to buy fractional shares, so you can buy a fraction

915
00:44:03,680 --> 00:44:06,080
Speaker 2: of a share, and the way they do that is

916
00:44:06,120 --> 00:44:10,279
Speaker 2: by not being chess sponsored. So essentially shares is buy

917
00:44:10,320 --> 00:44:12,120
Speaker 2: the share and break it up and give you the

918
00:44:12,160 --> 00:44:15,480
Speaker 2: portion that you want, which makes it much more accessible.

919
00:44:15,560 --> 00:44:18,640
Speaker 2: And I'm quite comfortable with that. But it's a really

920
00:44:18,680 --> 00:44:21,759
Speaker 2: great way to build your portfolio bit by bit, even

921
00:44:21,800 --> 00:44:25,399
Speaker 2: if you're working with literally the smallest budget known to man,

922
00:44:25,440 --> 00:44:29,879
Speaker 2: which is one cent and I mean shameless promo here

923
00:44:30,080 --> 00:44:31,640
Speaker 2: use the code SotM Beck.

924
00:44:31,640 --> 00:44:33,120
Speaker 4: What do you get ten bucks?

925
00:44:33,120 --> 00:44:34,879
Speaker 2: Actually I think that's what we get ten bucks for free.

926
00:44:35,200 --> 00:44:37,839
Speaker 2: So your ten bucks that is invested wasn't even your

927
00:44:37,840 --> 00:44:38,400
Speaker 2: own money.

928
00:44:38,520 --> 00:44:41,680
Speaker 4: Yeah, I actually didn't even remember that. I didn't put any.

929
00:44:41,520 --> 00:44:43,879
Speaker 2: Money, So you've got free money. And then you've been

930
00:44:43,920 --> 00:44:46,680
Speaker 2: investing it. Tell me a better money win.

931
00:44:46,920 --> 00:44:49,439
Speaker 4: Oh wait, so true, that'll be something one day.

932
00:44:49,719 --> 00:44:52,440
Speaker 2: All right, let's move on more questions. What are they?

933
00:44:52,840 --> 00:44:54,879
Speaker 4: Okay, this next one? I feel like I hear about

934
00:44:54,880 --> 00:44:56,799
Speaker 4: it a lot, but I have never had any idea

935
00:44:56,840 --> 00:44:59,959
Speaker 4: what it is. What is negative geary? All right?

936
00:45:00,160 --> 00:45:03,960
Speaker 2: So an investment is considered to be negatively geared when

937
00:45:04,000 --> 00:45:06,560
Speaker 2: you buy it with borrowed money. And then the expenses

938
00:45:06,640 --> 00:45:08,920
Speaker 2: so like the interest that you're paying on the loan

939
00:45:09,360 --> 00:45:12,960
Speaker 2: are higher than the income that the investment brings in.

940
00:45:13,760 --> 00:45:15,520
Speaker 4: Okay, but I thought it was a good thing.

941
00:45:15,600 --> 00:45:19,319
Speaker 2: No, it can be. Oh so. Currently in Australia, those

942
00:45:19,360 --> 00:45:22,799
Speaker 2: excess expenses are often claimed as a deduction on your

943
00:45:22,840 --> 00:45:27,120
Speaker 2: otherwise taxable income, which is why people want that to happen,

944
00:45:27,360 --> 00:45:30,719
Speaker 2: which might help reduce your tax bill, which we obviously

945
00:45:30,760 --> 00:45:34,280
Speaker 2: love as investors. And while negative gearing is most commonly

946
00:45:34,360 --> 00:45:37,560
Speaker 2: associated with investment properties, it's also something that can be

947
00:45:37,560 --> 00:45:38,480
Speaker 2: applied to your chess.

948
00:45:39,400 --> 00:45:40,279
Speaker 4: I'm taking it on.

949
00:45:40,400 --> 00:45:42,759
Speaker 2: But also no, no, so I'm going to go back. You

950
00:45:42,800 --> 00:45:45,160
Speaker 2: know how I do dumb things like Frank who wears

951
00:45:45,160 --> 00:45:47,080
Speaker 2: the red hat. Yes, like I don't think you're going

952
00:45:47,120 --> 00:45:50,000
Speaker 2: to forget Frank. Right, Frank has a red hat?

953
00:45:50,040 --> 00:45:53,680
Speaker 4: Why Beck, because he comes with a credit comes with

954
00:45:54,000 --> 00:45:58,440
Speaker 4: Frank is tax already and non Frank is not taxed.

955
00:45:58,239 --> 00:46:01,880
Speaker 2: Yet, exactly right. It's like I have all these things

956
00:46:02,160 --> 00:46:05,680
Speaker 2: in my life that I still do. Lefty lucy, righty tidy. Yes,

957
00:46:05,800 --> 00:46:08,759
Speaker 2: I know how to set the table because fork has

958
00:46:08,840 --> 00:46:12,000
Speaker 2: four letters in it and so does left. Thank you,

959
00:46:12,040 --> 00:46:14,839
Speaker 2: I'm user, Yeah you welcome. But I just have these

960
00:46:14,840 --> 00:46:17,400
Speaker 2: things in my head that work, right. Negative gearing is

961
00:46:17,440 --> 00:46:20,080
Speaker 2: negative because I have to pay for it. Yes, that's

962
00:46:20,200 --> 00:46:22,160
Speaker 2: how I see it in my head. It's not a

963
00:46:22,160 --> 00:46:26,080
Speaker 2: bad thing technically. But negative gearing is negative because you're

964
00:46:26,080 --> 00:46:27,960
Speaker 2: going to take some money out of my bank account

965
00:46:28,040 --> 00:46:29,800
Speaker 2: to make that investment dream come true.

966
00:46:29,960 --> 00:46:30,200
Speaker 5: Right.

967
00:46:30,520 --> 00:46:33,879
Speaker 2: Positive gearing is where the investment makes more money than

968
00:46:33,960 --> 00:46:37,640
Speaker 2: it costs me. So positive good for me. I'm getting money.

969
00:46:37,800 --> 00:46:41,080
Speaker 2: I love getting money. Neutral gearing is where they just

970
00:46:41,120 --> 00:46:41,640
Speaker 2: break even.

971
00:46:41,840 --> 00:46:46,040
Speaker 4: Yeah, okay. And then if you're negatively geared on occasion.

972
00:46:45,640 --> 00:46:47,600
Speaker 2: You're gonna have to cough up some cash back.

973
00:46:47,600 --> 00:46:49,920
Speaker 4: Yes, so pay for it, and that cash that you

974
00:46:49,960 --> 00:46:50,600
Speaker 4: cough up.

975
00:46:50,880 --> 00:46:55,279
Speaker 2: Maybe claimable bull a tax. Okay, So it's negative because

976
00:46:55,280 --> 00:46:56,719
Speaker 2: you have to put money in and we don't want

977
00:46:56,719 --> 00:46:59,160
Speaker 2: to do that. Like in a perfect world, everybody would

978
00:46:59,239 --> 00:47:01,960
Speaker 2: just be giving me money, but for me to own

979
00:47:02,040 --> 00:47:05,160
Speaker 2: that asset, I have to tip some cash in and

980
00:47:05,200 --> 00:47:06,239
Speaker 2: that's how I remember it.

981
00:47:06,440 --> 00:47:08,839
Speaker 4: Hey, in investments and investment, isn't it? Yeah?

982
00:47:08,880 --> 00:47:10,960
Speaker 2: I guess. I mean that sounds really silly, but like

983
00:47:11,280 --> 00:47:14,000
Speaker 2: if it sticks in your brain, yeah, I don't care

984
00:47:14,040 --> 00:47:14,760
Speaker 2: how it sticks.

985
00:47:14,880 --> 00:47:17,840
Speaker 4: That actually is sticking. So thank you so much, so V.

986
00:47:18,280 --> 00:47:21,480
Speaker 4: Throughout this episode, you've kind of jumped to those two

987
00:47:21,600 --> 00:47:24,160
Speaker 4: figures it's seven point five percent return and five percent

988
00:47:24,239 --> 00:47:27,400
Speaker 4: return as like an example when you're trying to explain something,

989
00:47:27,880 --> 00:47:30,120
Speaker 4: why do you jump to those I feel like.

990
00:47:30,080 --> 00:47:32,480
Speaker 2: That's really interesting and I don't think I have disclaimed

991
00:47:32,560 --> 00:47:35,319
Speaker 2: it before. It's just a good example, right. So, as

992
00:47:35,320 --> 00:47:37,440
Speaker 2: I said before, the average rate of return of the

993
00:47:37,440 --> 00:47:40,359
Speaker 2: Australian share market over the last thirty years has been

994
00:47:40,520 --> 00:47:43,640
Speaker 2: more than nine percent. But I feel like it's really

995
00:47:43,640 --> 00:47:47,719
Speaker 2: irresponsible of me, as a finance professional to then use

996
00:47:47,800 --> 00:47:51,640
Speaker 2: that number as the example, because we always want to

997
00:47:51,719 --> 00:47:55,399
Speaker 2: underpromise over deliver, Like in a perfect world, you would

998
00:47:55,440 --> 00:48:00,120
Speaker 2: get more than what your target is by retirement when

999
00:47:59,840 --> 00:48:02,960
Speaker 2: you are talking about retirement, You've probably noticed that I

1000
00:48:03,000 --> 00:48:05,960
Speaker 2: always tend to use the five percent example. But if

1001
00:48:05,960 --> 00:48:07,960
Speaker 2: we're just talking about the share market and I'm just

1002
00:48:08,040 --> 00:48:10,439
Speaker 2: talking about average rates of return, I might use seven

1003
00:48:10,520 --> 00:48:12,960
Speaker 2: and a half. Because it's day to day. Both of

1004
00:48:13,000 --> 00:48:16,239
Speaker 2: those are obviously significantly below what the average rate of

1005
00:48:16,239 --> 00:48:19,520
Speaker 2: the share market does actually return. Five percent because I

1006
00:48:19,600 --> 00:48:22,439
Speaker 2: want to account for inflation. Five percent because I want

1007
00:48:22,440 --> 00:48:25,000
Speaker 2: to account for the time value of money and how

1008
00:48:25,040 --> 00:48:27,680
Speaker 2: things are going to cost a lot more in the future,

1009
00:48:28,040 --> 00:48:32,279
Speaker 2: and I'm taking care of inflation in my head when

1010
00:48:32,400 --> 00:48:35,359
Speaker 2: using five percent. So if I say, Beck, you've got

1011
00:48:35,360 --> 00:48:38,839
Speaker 2: a five percent draw down rate on your investment when

1012
00:48:38,960 --> 00:48:41,560
Speaker 2: you come to retirement, that means that we've got a

1013
00:48:41,600 --> 00:48:43,920
Speaker 2: lot of wiggle room. Whereas if you looked at the

1014
00:48:44,000 --> 00:48:46,520
Speaker 2: average rate of return and said, well, there it's more

1015
00:48:46,560 --> 00:48:48,560
Speaker 2: than nine percent, So I'm going to use that number

1016
00:48:48,600 --> 00:48:51,000
Speaker 2: to calculate it. What if the market's off, what if

1017
00:48:51,000 --> 00:48:54,719
Speaker 2: we're going through a recession, what if COVID happens, Like what,

1018
00:48:54,880 --> 00:48:57,560
Speaker 2: you just take less than half of what your income

1019
00:48:57,719 --> 00:49:01,920
Speaker 2: is today. Percent a rate of draw down means in

1020
00:49:02,040 --> 00:49:05,520
Speaker 2: economic turmoil, we can still take five percent and not

1021
00:49:05,640 --> 00:49:09,560
Speaker 2: impact the underlying asset. When the market is doing really well,

1022
00:49:09,680 --> 00:49:13,000
Speaker 2: we still take five percent, but that amount that is

1023
00:49:13,040 --> 00:49:16,480
Speaker 2: above and beyond goes into our investment so that we

1024
00:49:16,560 --> 00:49:19,040
Speaker 2: can continue to take five percent even when the market

1025
00:49:19,080 --> 00:49:22,920
Speaker 2: is off, so that we maintain a consistent lifestyle. So

1026
00:49:22,960 --> 00:49:25,960
Speaker 2: that is something that a lot of financial advisors do

1027
00:49:26,440 --> 00:49:28,120
Speaker 2: because we want to make sure that we can just

1028
00:49:28,160 --> 00:49:31,839
Speaker 2: be consistent. We can use a good example that is

1029
00:49:32,120 --> 00:49:35,680
Speaker 2: lower than the market, because there's nothing better than when

1030
00:49:35,719 --> 00:49:38,600
Speaker 2: people go, well, where's that number even come from? And

1031
00:49:38,640 --> 00:49:40,600
Speaker 2: I can be like, well, it's actually higher, so you're

1032
00:49:40,640 --> 00:49:42,840
Speaker 2: going to do better, but if you really want to

1033
00:49:42,880 --> 00:49:46,360
Speaker 2: fight me, So it's nice to have a consistent low number.

1034
00:49:46,640 --> 00:49:50,480
Speaker 2: But then also that seven point five is more around

1035
00:49:50,800 --> 00:49:53,840
Speaker 2: predictions of when money is going to double, because if

1036
00:49:53,880 --> 00:49:58,400
Speaker 2: we only focused on five percent, we're not doing ourselves justice.

1037
00:49:58,440 --> 00:50:02,520
Speaker 2: So they are literally just examples that I use to

1038
00:50:02,640 --> 00:50:06,520
Speaker 2: make sure that one I give our community consistency because

1039
00:50:06,520 --> 00:50:09,799
Speaker 2: you are always going to have me use seven point

1040
00:50:09,800 --> 00:50:13,399
Speaker 2: five or five percent, and those numbers are things that

1041
00:50:13,480 --> 00:50:16,080
Speaker 2: I would be really happy if you were away doing

1042
00:50:16,080 --> 00:50:18,080
Speaker 2: your own calculating and in your head you go, oh,

1043
00:50:18,200 --> 00:50:21,480
Speaker 2: V always says five percent or V always says seven

1044
00:50:21,520 --> 00:50:23,759
Speaker 2: and a half instead of you googling and getting six

1045
00:50:23,800 --> 00:50:24,920
Speaker 2: million different options.

1046
00:50:25,880 --> 00:50:26,320
Speaker 4: Thank you V.

1047
00:50:26,960 --> 00:50:28,200
Speaker 2: Well they're just two numbers.

1048
00:50:28,280 --> 00:50:30,719
Speaker 4: Okay, So next one, this is a good one to

1049
00:50:30,800 --> 00:50:33,400
Speaker 4: end on, I think. So what should we read and

1050
00:50:33,520 --> 00:50:36,520
Speaker 4: understand before purchasing any investment product?

1051
00:50:36,960 --> 00:50:39,480
Speaker 2: Okay, so you hear it on ADS all the time,

1052
00:50:39,680 --> 00:50:42,840
Speaker 2: Read the PDS and TMD before making an investment, or

1053
00:50:43,040 --> 00:50:45,200
Speaker 2: read the PDS and TMD before making.

1054
00:50:44,960 --> 00:50:46,600
Speaker 4: A decision, right, I couldn't.

1055
00:50:46,760 --> 00:50:48,759
Speaker 2: Yeah, I read that on ADS all the time, and

1056
00:50:48,800 --> 00:50:50,960
Speaker 2: I feel very grateful to be able to read ads.

1057
00:50:51,120 --> 00:50:54,880
Speaker 2: But what does it even mean? So PDS is the

1058
00:50:54,920 --> 00:51:00,600
Speaker 2: product disclosure statement and TMD is the target market determinate. Yes,

1059
00:51:00,760 --> 00:51:03,640
Speaker 2: so we're just going to focus on the PDS because

1060
00:51:03,640 --> 00:51:06,640
Speaker 2: the PDS basically is all the information about the product,

1061
00:51:06,880 --> 00:51:10,280
Speaker 2: and then the TMD is basically who that company thinks

1062
00:51:10,440 --> 00:51:13,120
Speaker 2: is a really good fit for that product, which I

1063
00:51:13,120 --> 00:51:16,120
Speaker 2: think is important to understand. So when people say read

1064
00:51:16,120 --> 00:51:19,080
Speaker 2: the PDS and TMD, it's basically saying, read about the

1065
00:51:19,080 --> 00:51:21,760
Speaker 2: product and understand whether you're interested in it, and also

1066
00:51:21,960 --> 00:51:24,319
Speaker 2: check if that might actually align to you and your

1067
00:51:24,320 --> 00:51:26,640
Speaker 2: lifestyle and what you're after. Because You might go to

1068
00:51:26,680 --> 00:51:29,880
Speaker 2: a TMD beck after hearing that there's a finance product

1069
00:51:29,880 --> 00:51:32,640
Speaker 2: on the radio or something, and you go, that sounds interesting,

1070
00:51:32,640 --> 00:51:34,440
Speaker 2: and then you look into it and they're like, it

1071
00:51:34,480 --> 00:51:39,440
Speaker 2: is targeted towards people ready for retirement in their fifties

1072
00:51:39,480 --> 00:51:41,880
Speaker 2: and sixties, and you might go, well, maybe this isn't

1073
00:51:41,960 --> 00:51:44,719
Speaker 2: actually for me, maybe this isn't something that I'm too

1074
00:51:44,800 --> 00:51:48,680
Speaker 2: interested in. But before you jump into any investment, I

1075
00:51:48,680 --> 00:51:51,560
Speaker 2: think it is so important to read the pds and

1076
00:51:51,640 --> 00:51:54,319
Speaker 2: do you know why, So, even if it's not to

1077
00:51:54,440 --> 00:51:57,239
Speaker 2: do what you need to do, which is understand all

1078
00:51:57,239 --> 00:52:00,360
Speaker 2: the details what the investment is and what the risks

1079
00:52:00,360 --> 00:52:03,520
Speaker 2: are and what fees are involved. One time a girl

1080
00:52:03,560 --> 00:52:07,279
Speaker 2: read the PDS of some company's product, and in the

1081
00:52:07,320 --> 00:52:10,320
Speaker 2: pds was really fine print that says, if you read

1082
00:52:10,400 --> 00:52:14,759
Speaker 2: this and get this far, message us because you want

1083
00:52:14,800 --> 00:52:16,560
Speaker 2: a cash prize of five thousand dollars.

1084
00:52:17,000 --> 00:52:18,080
Speaker 4: Wow. Yeah.

1085
00:52:18,120 --> 00:52:19,960
Speaker 2: And it was because they just knew that no one

1086
00:52:20,040 --> 00:52:21,640
Speaker 2: was going to read the pds and they wanted to

1087
00:52:21,880 --> 00:52:24,480
Speaker 2: reward the person that actually did read the pds. And

1088
00:52:24,520 --> 00:52:26,480
Speaker 2: she contacted them and was like, hey, I know this

1089
00:52:26,520 --> 00:52:28,920
Speaker 2: is really weird, but like I saw this in your

1090
00:52:28,920 --> 00:52:30,880
Speaker 2: pds and they come this way, here's five grand.

1091
00:52:31,239 --> 00:52:34,080
Speaker 4: Wow. Be for real, right, I'm going to be reading

1092
00:52:34,239 --> 00:52:35,680
Speaker 4: every single PDS.

1093
00:52:35,920 --> 00:52:39,200
Speaker 2: So like, don't get me wrong. Companies know that you

1094
00:52:39,239 --> 00:52:42,719
Speaker 2: don't read them like, but they are a legal obligation

1095
00:52:42,920 --> 00:52:45,120
Speaker 2: and to be honest, if you want to put yourself first,

1096
00:52:45,320 --> 00:52:48,600
Speaker 2: scan them. They are written in plain English. They aren't

1097
00:52:48,600 --> 00:52:53,080
Speaker 2: written technically, they aren't for technical people. They are written

1098
00:52:53,160 --> 00:52:55,799
Speaker 2: in black and white language that basically says, this is

1099
00:52:55,800 --> 00:52:58,960
Speaker 2: what the product is, this is where our fees come from,

1100
00:52:59,000 --> 00:53:01,319
Speaker 2: this is how we've made money, and this is what

1101
00:53:01,360 --> 00:53:03,640
Speaker 2: you'll be invested in. And for me, if you're going

1102
00:53:03,680 --> 00:53:06,320
Speaker 2: to invest in anything, I feel like we all google.

1103
00:53:06,440 --> 00:53:09,520
Speaker 2: Right back to the nab share example. You're going to

1104
00:53:09,680 --> 00:53:12,400
Speaker 2: purchase a nab share beck, You're going to google it.

1105
00:53:12,440 --> 00:53:15,000
Speaker 2: You're going to probably see a few forums discussing it.

1106
00:53:15,040 --> 00:53:17,200
Speaker 2: You're probably going to see you a whole heap of

1107
00:53:17,239 --> 00:53:20,760
Speaker 2: different investor websites that give you insight into different shares

1108
00:53:20,800 --> 00:53:24,720
Speaker 2: and what they mean and how they work. Fluff, absolute fluff.

1109
00:53:25,239 --> 00:53:29,560
Speaker 2: Go to a PDS and read about that asset class,

1110
00:53:30,440 --> 00:53:32,879
Speaker 2: what does it cost, how does it work, what does

1111
00:53:32,920 --> 00:53:35,600
Speaker 2: that mean? Go to any website I'm going to throw

1112
00:53:35,640 --> 00:53:38,480
Speaker 2: Shares's under a bus right here for good reason. Go

1113
00:53:38,560 --> 00:53:40,960
Speaker 2: to their website, scroll to the bottom. The PDS will

1114
00:53:41,000 --> 00:53:44,520
Speaker 2: be right there, and it will explain to you, in plain,

1115
00:53:45,080 --> 00:53:48,239
Speaker 2: very easy English, how they get paid, what it will

1116
00:53:48,280 --> 00:53:51,920
Speaker 2: cost you, how it will work, how their entire business

1117
00:53:51,920 --> 00:53:54,640
Speaker 2: model is structured so that you can be as educated

1118
00:53:54,640 --> 00:53:57,320
Speaker 2: as possible. Okay, and I know you're not going to

1119
00:53:57,360 --> 00:53:59,560
Speaker 2: do it, but like, obviously it's a good idea. And

1120
00:53:59,600 --> 00:54:02,280
Speaker 2: don't get me wrong. I mean, if it's a company

1121
00:54:02,360 --> 00:54:04,879
Speaker 2: that she's on the money is working for, you, best

1122
00:54:04,880 --> 00:54:07,799
Speaker 2: believe I have not only combed through that PDS, but

1123
00:54:07,840 --> 00:54:09,520
Speaker 2: I've also sent it to my lawyer to make sure

1124
00:54:09,520 --> 00:54:10,279
Speaker 2: I didn't miss a thing.

1125
00:54:11,080 --> 00:54:13,240
Speaker 4: What if your lawyer finds that little don't.

1126
00:54:13,080 --> 00:54:16,800
Speaker 2: Work with them? Huh? Like if a lawyer finds something

1127
00:54:16,800 --> 00:54:19,200
Speaker 2: in a PDS no of a different company, I won't

1128
00:54:19,200 --> 00:54:19,920
Speaker 2: work with that company.

1129
00:54:20,000 --> 00:54:23,000
Speaker 4: Lawyer finds the little statement that says you've won five thousand.

1130
00:54:22,760 --> 00:54:25,480
Speaker 2: Dollars, Oh, maybe she get Do you know what if

1131
00:54:25,520 --> 00:54:28,560
Speaker 2: she does that and I'd already read it, she deserves

1132
00:54:28,560 --> 00:54:28,839
Speaker 2: the fight.

1133
00:54:29,520 --> 00:54:32,080
Speaker 4: Yeah, if you missed it somehow, but that's a thing.

1134
00:54:32,160 --> 00:54:35,440
Speaker 2: Google it, Like woman wins money from reading pds. I

1135
00:54:35,480 --> 00:54:37,920
Speaker 2: promise it's a thing. God, I mean, it's probably never

1136
00:54:37,960 --> 00:54:40,200
Speaker 2: going to be a thing again because now everyone's reading pds.

1137
00:54:40,280 --> 00:54:42,359
Speaker 2: Is like Beck would be so that she can win money.

1138
00:54:42,480 --> 00:54:45,400
Speaker 2: She's not interested in her assets, but she is interested

1139
00:54:45,440 --> 00:54:48,560
Speaker 2: in some free cat Oh yeah, which ironically is what

1140
00:54:48,600 --> 00:54:53,000
Speaker 2: I would get if you just invest it. Oh well,

1141
00:54:53,239 --> 00:54:54,160
Speaker 2: game the system.

1142
00:54:54,520 --> 00:54:56,160
Speaker 4: We have covered a lot today. If you guys found

1143
00:54:56,200 --> 00:54:58,320
Speaker 4: that helpful, don't forget to hear that subscribe button so

1144
00:54:58,320 --> 00:55:00,600
Speaker 4: you never miss an episode and also really helps us.

1145
00:55:00,680 --> 00:55:02,320
Speaker 4: It does help us. But also if you do have

1146
00:55:02,360 --> 00:55:04,960
Speaker 4: any questions that we didn't get to today, don't worry.

1147
00:55:05,040 --> 00:55:08,480
Speaker 2: We're always listening is a not creepy way, like in

1148
00:55:08,520 --> 00:55:11,600
Speaker 2: the way that your iPhone is not. Like, we're listening

1149
00:55:11,640 --> 00:55:15,000
Speaker 2: if you actively engage with us, not passively while you're

1150
00:55:15,000 --> 00:55:15,960
Speaker 2: a brunch with your friends.

1151
00:55:16,200 --> 00:55:16,439
Speaker 5: Yes.

1152
00:55:16,560 --> 00:55:19,680
Speaker 2: Yeah, disclaim that we're always listening in twenty twenty four

1153
00:55:19,800 --> 00:55:22,040
Speaker 2: is a dangerous statement that I'm not sure why you used.

1154
00:55:22,080 --> 00:55:25,439
Speaker 2: But anyway, make sure you follow us either, make sure

1155
00:55:25,440 --> 00:55:29,280
Speaker 2: you subscribe. Subscribing to our podcast actually makes a massive difference.

1156
00:55:29,280 --> 00:55:31,600
Speaker 2: I don't think people understand that. So we're going to

1157
00:55:31,600 --> 00:55:33,640
Speaker 2: do some more call outs on that in the future,

1158
00:55:33,680 --> 00:55:36,440
Speaker 2: because we really want you to be as engaged with

1159
00:55:36,480 --> 00:55:41,000
Speaker 2: our content as possible. And also, our Instagram has been slappin' recently.

1160
00:55:42,080 --> 00:55:44,560
Speaker 2: It has been so good. I shouldn't use like gen

1161
00:55:44,680 --> 00:55:47,719
Speaker 2: Z terms like slapin and sleigh and stuff, but my

1162
00:55:47,840 --> 00:55:50,799
Speaker 2: team is gen Z Yes, So they all say these

1163
00:55:50,800 --> 00:55:52,839
Speaker 2: things and then all of a sudden, I'm adopting them,

1164
00:55:52,840 --> 00:55:57,040
Speaker 2: and I feel like that millennial dad on tiktop who

1165
00:55:57,120 --> 00:56:01,040
Speaker 2: like embarrasses his kids by using gen X words.

1166
00:56:01,600 --> 00:56:04,200
Speaker 4: I think the fact that you said slappin', yeah, it's

1167
00:56:04,200 --> 00:56:04,960
Speaker 4: a bit skibbity.

1168
00:56:05,280 --> 00:56:10,040
Speaker 2: You know, I'm out to take you home. We are right,

1169
00:56:10,160 --> 00:56:12,920
Speaker 2: but obviously follow us on Instagram because that's where we

1170
00:56:13,000 --> 00:56:15,800
Speaker 2: drop all our call outs for questions for episodes exactly

1171
00:56:16,040 --> 00:56:17,719
Speaker 2: like this, And I'm going to make sure that I

1172
00:56:17,719 --> 00:56:20,120
Speaker 2: put that Shares's code that Beck used that we were

1173
00:56:20,160 --> 00:56:22,239
Speaker 2: talking about in our show notes for you to make

1174
00:56:22,280 --> 00:56:24,640
Speaker 2: it as easy as possible for you to start your

1175
00:56:24,640 --> 00:56:26,880
Speaker 2: investing journey. So have the best day, guys, and we

1176
00:56:26,960 --> 00:56:29,000
Speaker 2: will see you on Friday. Bye, guys.

1177
00:56:34,480 --> 00:56:36,640
Speaker 5: The ad buy shared on She's on the Money is

1178
00:56:36,680 --> 00:56:38,239
Speaker 5: general in nature and does not.

1179
00:56:38,320 --> 00:56:40,280
Speaker 4: Consider your individual circumstances.

1180
00:56:40,640 --> 00:56:44,080
Speaker 5: She's on the Money exists purely for educational purposes and

1181
00:56:44,080 --> 00:56:46,520
Speaker 5: should not be relied upon to make an investment or

1182
00:56:46,600 --> 00:56:50,160
Speaker 5: financial decision. If you do choose to buy a financial product,

1183
00:56:50,280 --> 00:56:54,120
Speaker 5: read the PDS TMD and obtain appropriate financial advice.

1184
00:56:53,840 --> 00:56:55,200
Speaker 2: Tailored towards your needs.

1185
00:56:55,560 --> 00:56:59,480
Speaker 5: Victoria Devine and She's on the Money are authorized representatives

1186
00:56:59,520 --> 00:57:01,920
Speaker 5: of money sherper P T y L t D A

1187
00:57:02,040 --> 00:57:04,960
Speaker 5: b N three two one six four nine two seven

1188
00:57:05,040 --> 00:57:07,879
Speaker 5: seven zero eight a f s L four five one

1189
00:57:08,080 --> 00:57:10,879
Speaker 5: two eight nine