Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order KERNI Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money, the podcat
Speaker 4: pass for millennials who want financial freedom. My name is
Speaker 4: Beckside and with us is the one and only Victoria Divine.
Speaker 1: You did not sound excited today. You sound like bear.
Speaker 1: I don't want to be here. I don't want to
Speaker 1: talk about this. Victoria's use the word portfolio over now,
Speaker 1: I know.
Speaker 4: So you can tell that I've checked out of this one.
Speaker 1: Yeah, you're already.
Speaker 4: We can make it fun.
Speaker 1: Investing is literally my favorite topic in the entire world.
Speaker 1: I don't know how to reiterate that more. I have
Speaker 1: literally written a book on it. And then I'm also
Speaker 1: releasing the spoiler an investing course story soon, which I'm
Speaker 1: really excited about. Oh my goodness, gracious, I'm just going
Speaker 1: to teach you all the things.
Speaker 4: Watch out. You do have a way of making it very,
Speaker 4: very exciting. But it is the first Wednesday of the month,
Speaker 4: so we are looking at an investment topic, and today
Speaker 4: we're talking about constructing your perfect investment portfolio.
Speaker 1: I don't know do we have structure that means that
Speaker 1: on the first, I guess Wednesday of every month we
Speaker 1: talk about investing, Like, has that exist said for this
Speaker 1: whole time? And I haven't noticed? And our producers just
Speaker 1: a wizard, I think it has.
Speaker 4: I think so I didn't notice either. That's very impressive.
Speaker 4: That is very impressive.
Speaker 1: We just have these big brainstorming sessions and I'm like,
Speaker 1: what about this topic? In this topic and this topic?
Speaker 1: And then she's smile and nod, smiling, and then she
Speaker 1: like organizes them. What the heck like it's a job.
Speaker 1: I bet nobody else noticed, but I don't think so
Speaker 1: we finally noticed and elsa thank you. I won't be
Speaker 1: able to unsee it now, how annoying are we now? Predictable?
Speaker 2: Oh?
Speaker 1: That sucks, but also good one out.
Speaker 4: Some people love the comfortability of it. Nava, you mentioned
Speaker 4: to me that you were at a speaking event recently
Speaker 4: and you talked about the idea that risk and investment
Speaker 4: has two facets. Could you tell us a little bit more?
Speaker 1: Yes, Actually I love a speaking event, and recently this
Speaker 1: has come up a few times because I just think
Speaker 1: it's really important. So when it comes to the investing world,
Speaker 1: I feel like we all get analysis paralysis, right, that
Speaker 1: we feel so overwhelmed with this concept of where we
Speaker 1: start and what we should be doing and what our
Speaker 1: perfect portfolio looks like, that we forget that things can
Speaker 1: actually be quite simple. And I mean, I'll get more
Speaker 1: into it later on, but I talk a lot, especially
Speaker 1: in person when I do like a speaking event, which,
Speaker 1: for those of you who don't know, a lot of
Speaker 1: my time now I'm a retired financial advisor. A lot
Speaker 1: of my time is actually spent in corporate and seeing
Speaker 1: corporate talking to I guess employees about their financial wellbeing
Speaker 1: and their financial wellness, and it's one of my favorite
Speaker 1: things in the entire world. But I often will say
Speaker 1: the phrase I'm a conservative aggressive investor, and that sounds
Speaker 1: very juxtapositione right, Like it sounds like, wait, you can't
Speaker 1: be both, Victoria. If you've listened to all of our podcasts,
Speaker 1: you've probably listened to the episode that we've done on
Speaker 1: risk profiles where I talk about how there are usually
Speaker 1: like six or seven different risk profiles and they go
Speaker 1: all the way from capital stable, conservative, all the way
Speaker 1: up to high growth or aggressive, which is language I
Speaker 1: don't particularly like in the investing world because it makes
Speaker 1: us feel a little bit overwhelmed, a little bit scared.
Speaker 1: Like the second the word aggressive comes out, you're like,
Speaker 1: hold up, that might not be for me. Yeah, Like,
Speaker 1: I'm not so sure. However, I would say that I'm
Speaker 1: a conservative aggressive investor, and a little bit later in
Speaker 1: the show, I'll explain to you exactly why that does
Speaker 1: actually make sense.
Speaker 4: Few Okay, So, v you did ask me to gather
Speaker 4: some relevant data for this, and you know I am
Speaker 4: not a money wiz, but I'm gonna I wrote that.
Speaker 1: You are get this really good at Google.
Speaker 4: I'm very good at Google, and I wrote some stuff down.
Speaker 4: So let's see.
Speaker 1: I'm ready. What have you brought to the table today.
Speaker 1: Some of these are tongue twister. Here are Beck's top
Speaker 1: tips on creating your perfect portfolio.
Speaker 4: All right, so I've got some information from Australian Investor
Speaker 4: study for twenty twenty three, which focus on nexs.
Speaker 1: That's true, that's big dog.
Speaker 4: That is And basically I'm going to focus today on
Speaker 4: female identifying people investors. I should say, also what they
Speaker 4: call next gen investors, which babies, the little tiny babies.
Speaker 1: Little tiny babies who have so much opportunity to do well.
Speaker 4: They do, and that I'm very happy that they're starting young.
Speaker 4: So I'm going to give you the data on the
Speaker 4: female identifying investors first. Yep. So the average age of
Speaker 4: female identifying investors is forty seven.
Speaker 1: Is that surprising?
Speaker 4: I don't know. I have no idea. Is that surprise?
Speaker 1: I feel like we're dragging it down slowly. I feel
Speaker 1: like forty seven is a good number because obviously it's
Speaker 1: before retirement.
Speaker 4: Sure, but I like want.
Speaker 1: The average age of an investor to be younger because
Speaker 1: that means they've got more opportunity to create wealth. Ideally, ideally,
Speaker 1: but they could be.
Speaker 4: A bunch of twenty four year olds and a bunch
Speaker 4: of one hundred year olds and then that makes the
Speaker 4: average age.
Speaker 1: Actually, that makes me want to find the difference between
Speaker 1: the me and the median and the morge or do
Speaker 1: you want to do it for me or do you
Speaker 1: want me to do it?
Speaker 4: I think it. Yeah, I don't have no idea, but yes,
Speaker 4: let's argue that.
Speaker 1: Yeah. So it's important to understand when we talk about
Speaker 1: data that there are actually three ways that people might
Speaker 1: report on it. Right, So there's the mean, there's the median,
Speaker 1: and then there's what's called the mode. And we're just
Speaker 1: going to take a quick dive into a statistics lesson
Speaker 1: for a hot second, because I do think it's really
Speaker 1: important to understand these things because so many times we
Speaker 1: see data and I know from your notes you're about
Speaker 1: to talk about the median, so let's start there. So
Speaker 1: the median is actually the number that is smack bang
Speaker 1: in the middle. So if you got every single data point,
Speaker 1: like if there were ten people in this data set,
Speaker 1: we would order them from smallest to largest number and
Speaker 1: then smack bang in the middle, that is what the
Speaker 1: median is. So the median is if we got every
Speaker 1: single data point, put them in a row, and then
Speaker 1: hit the smack bang middle one R. That's just the
Speaker 1: middle number that occurs.
Speaker 4: Right.
Speaker 1: Then you've got the mean, and the mean is from
Speaker 1: my perspective, it's interesting to see what's smack bang in
Speaker 1: the middle, but it's also interesting to see kind of
Speaker 1: what the average is. And I would say the mean
Speaker 1: is more of an average. So what you do with
Speaker 1: the mean is you take all data points, add them
Speaker 1: together and so plus plus plus plus plus, and then
Speaker 1: you divide it by how many data points there are
Speaker 1: in that set to get the average number. So if
Speaker 1: you added them all together, you'd end up with a
Speaker 1: really high number maybe and a really low number, and
Speaker 1: then there would be an average that comes out of that.
Speaker 1: And so from my perspective, to get a really good
Speaker 1: idea of what data is looking like, I kind of
Speaker 1: want both of those numbers because in a perfect world,
Speaker 1: both of those numbers are really similar. But you might
Speaker 1: have smack bang in the middle. The medium might be five, right,
Speaker 1: because you've got ten data points and they go from
Speaker 1: one all the way through to ten. Smack bang in
Speaker 1: the middle happens to be five. What a dream, right. However,
Speaker 1: if you had a more diverse data set where the
Speaker 1: lowest numbers one and then five was still in the middle,
Speaker 1: but then the last number was one hundred. If you
Speaker 1: had divided all of those, your mean is going to
Speaker 1: be higher, and that's going to give you a good
Speaker 1: indicator of whether they're on par or not. So it's
Speaker 1: just nice to know those things. And then the third
Speaker 1: one I mentioned is the mode. And essentially the mode
Speaker 1: is just the number that occurs the most. So you
Speaker 1: might have ten data sets and five of them happen
Speaker 1: to be the same number. That's the mode. It's just
Speaker 1: the most common number to occur in a data set.
Speaker 4: Gotcha, I actually cannot believe this is the first time
Speaker 4: really understanding what that means. Median kind of seems a
Speaker 4: bit useless, but it is a reason helpful.
Speaker 1: But like we find that most surveys and most reports
Speaker 1: will use the median because it seemed to be the average.
Speaker 1: That's why when we talk about things like salary, I
Speaker 1: don't particularly like the mean. I much prefer the median
Speaker 1: because when we're talking about the mean and we've added
Speaker 1: everything together, if I said, what's the average salary of
Speaker 1: a female identifying person in Australia, right, you've got all
Speaker 1: your CEOs, then you've got all of your stay at
Speaker 1: home mums who don't particularly have a high income. But
Speaker 1: we're not saying they don't have any value. We're just
Speaker 1: talking about finances here. We add them all together and
Speaker 1: then Beckett comes out as an average of about eighty
Speaker 1: five thousand dollars. Right, that's not normal, Like, that's not
Speaker 1: the normal income. Whereas if we lined everything up and
Speaker 1: took you know, what is actually the middle of what
Speaker 1: these people are earning, and what do female identifying people
Speaker 1: in Australia actually earn, what does that look like? It's
Speaker 1: more like sixty five thousand dollars sure, And that's a
Speaker 1: really big difference. Like if we're making decisions based on data.
Speaker 1: And this is why I think it's so important for
Speaker 1: us to understand it, just so we know what's going on.
Speaker 1: But it's so important that you know, like our government
Speaker 1: takes this into consideration because if they're using the mean
Speaker 1: or the median to make decisions about our healthcare or
Speaker 1: what we can afford or what we can actually do
Speaker 1: with our finances, there's a big difference when we're talking
Speaker 1: about a cost of living crisis. When it comes to
Speaker 1: someone who earns eighty five thousand versus someone who earns
Speaker 1: sixty five thousand. Right, right, So if we aren't using
Speaker 1: the right data point, or we're not looking at both
Speaker 1: of them, we're actually doing people a disservice. That makes
Speaker 1: so much sense, I hope so because I tried to
Speaker 1: make it make sense. Yeah, I really that's a great explanation.
Speaker 4: Be thank you so much.
Speaker 1: Tell me more about female identifying investors.
Speaker 4: Speaking of median, the median trade size for female identifying
Speaker 4: investors is four thousand and five dollars. That's big dog. Yeah,
Speaker 4: that's pretty good. And the median portfolio size is ninety five,
Speaker 4: nine hundred and ninety dollars. Now, VI, I want to know,
Speaker 4: and maybe I should not as already, what's the difference
Speaker 4: between trade and portfolio? Yeah?
Speaker 1: Okay, so trade is how much they might so trade
Speaker 1: each month. So you might go, hey, beck, I really
Speaker 1: want to start investing. So trade is important when we
Speaker 1: talk about So let's get a little bit deep for
Speaker 1: a second. If you're an investor and you download any platform,
Speaker 1: there's going to be usually some type of brokerage fee.
Speaker 1: And brokerage fee is a fee that you pay for
Speaker 1: your trade to be carried out. So Let's say on
Speaker 1: average it's twenty bucks, So you sit down and go,
Speaker 1: V I really want to invest. However, if I'm investing
Speaker 1: twenty dollars today, is paying twenty dollars for that privilege
Speaker 1: making the total trade worth forty dollars? Is that worth it?
Speaker 1: Absolutely not from my perspective. So what a lot of
Speaker 1: people do is they kind of bundle their money up.
Speaker 1: So you might have a savings account to the side
Speaker 1: where you put money into it each and every single month,
Speaker 1: and then when it hits one thousand dollars, it hits
Speaker 1: two thousand dollars, you invest that all in one go.
Speaker 1: That's what a trade is. It's like a transaction essentially.
Speaker 1: So it's genuinely smarter to have higher amounts per trade,
Speaker 1: which obviously there's a lot of privilege in that because
Speaker 1: you need more money to have a higher trade amount.
Speaker 1: But what that means is it brings down the percentage
Speaker 1: of your brokerage fee. So if you said I have
Speaker 1: twenty bucks to trade and I go great, no worries.
Speaker 1: Your brokerage is twenty dollars, that's one hundred percent of
Speaker 1: the fee, which means if your money is then invested,
Speaker 1: beck it has to make another twenty dollars, so it's
Speaker 1: got a double in order to break even for what
Speaker 1: it cost you to invest. So that's not that sexy.
Speaker 1: But if I said to you, all right, it's twenty dollars,
Speaker 1: but you've invested four grand, you'd be like, that's fine.
Speaker 1: It's not going to take that long for my four
Speaker 1: thousand dollar portfolio to return twenty dollars and then some.
Speaker 1: And so many times, and I'm obviously wildly passionate about this,
Speaker 1: but so many times people just forget about their brokerage
Speaker 1: and how much their portfolio cost them. So you might
Speaker 1: look at a portfolio and be like, well, I've got
Speaker 1: one thousand dollars invested. Oh my god, it made me
Speaker 1: my first twenty dollars. I'm making money, And you go,
Speaker 1: hold up, ut, how much was your brokerage? Have we'd
Speaker 1: taken that into consideration, Like have you made back what
Speaker 1: it cost you to get in the door? So right,
Speaker 1: that's what a trade is. And then total portfolio is
Speaker 1: the total amount that you have invested, right, so from
Speaker 1: all the trades that have added up. Okay, it's honestly,
Speaker 1: and obviously this is just stuff we've never talked about
Speaker 1: beck like, you didn't learn this in school, so it
Speaker 1: makes sense you don't get it, sure, but it's pretty
Speaker 1: simple when you go, oh, what's a trade? Oh you
Speaker 1: traded it?
Speaker 4: Yeah, all right?
Speaker 1: In the words what's a portfolio, it's everything you own?
Speaker 1: Oh okay, like nice, we scary exactly. And I feel
Speaker 1: like the more we talk about this stuff, and this
Speaker 1: is why obviously we do do so many investing episodes,
Speaker 1: I just want it to make sense so that you
Speaker 1: feel super comfortable with it. And obviously this topic is
Speaker 1: about constructing your perfect portfolio and to me, spoiler, there's
Speaker 1: no such thing, but we're going to help you feel
Speaker 1: comfortable with that idea. I just think it's so important
Speaker 1: to have these conversations because they make me feel so
Speaker 1: much more confident in my own portfolio. But also I
Speaker 1: can see you go, ah Vy, that actually makes sense,
Speaker 1: Like this makes sense, and I think I could do it,
Speaker 1: and that's my favorite thing.
Speaker 4: Yeah. Absolutely, Well, my last point for that one was
Speaker 4: that fifty five percent of people do prefer stable returns.
Speaker 1: I'm not surprised by that.
Speaker 4: Yeah, I think that's so that's like more of a
Speaker 4: comfy sort of thing, like it's maybe like low, but
Speaker 4: it's stable and it's consistent.
Speaker 1: Women take less risks than men. At the end of
Speaker 1: the day, women are less likely to want risky a portfolio. However,
Speaker 1: I think that that's also about education, because as we're
Speaker 1: going to get into the more educated you are, often
Speaker 1: the more likely you are to take on very comfortable risk. Sure,
Speaker 1: so we're not saying go invest in bitcoin or cryptocurrencies
Speaker 1: or things that are inherently very risky. What risk often
Speaker 1: means is that you're putting more of your money into
Speaker 1: the share market as opposed to just holding it in cash.
Speaker 1: And the second you can understand that, the more likely
Speaker 1: you are to go, actually, maybe I am a growth investor.
Speaker 1: Maybe I am a little bit aggressive.
Speaker 4: And you didn't know it. Okay, I really like that. Actually,
Speaker 4: So the next thing, I'm going to go through the
Speaker 4: top five types of investments for female identifying people that
Speaker 4: are outside of SUPER. So this does not include super.
Speaker 1: No, and also on that super is not an investment.
Speaker 1: Super is a tax structure in which you invest in.
Speaker 1: You can invest the money that is sitting in that
Speaker 1: tax structure, and I could not be more passionate about
Speaker 1: that because it's your money, right, it's eleven percent. Now, Beck,
Speaker 1: do you know how many people listening to this podcast
Speaker 1: have still not pulled their finger out and how to
Speaker 1: look at their own portfolios to be like, Oh, I
Speaker 1: wonder if this is working for me. If you're listening
Speaker 1: to this episode, this is just like a little bit
Speaker 1: of a side note personal attack to you.
Speaker 4: I do love you.
Speaker 1: That is why we are saying this right now. That
Speaker 1: is why I think it's really important. But if you
Speaker 1: are listening to us because you've clicked on an episode
Speaker 1: to learn about how to construct your perfect portfolio, but
Speaker 1: you haven't taken the time to go and look at
Speaker 1: what portfolio your superannuation is sitting in. Turn off this episode,
Speaker 1: go look at your super. Don't do that. Listen to
Speaker 1: the rest of this episode, and then go look at
Speaker 1: your super because that is eleven percent now of your income. Beck,
Speaker 1: are you saving or investing eleven percent of your income
Speaker 1: every single month? I wish you are in super?
Speaker 4: Oh true, you are in Super.
Speaker 1: So like, why aren't we caring more about it? It
Speaker 1: is so much money. It is your money. Go and
Speaker 1: take control of it. Go and look at what it is.
Speaker 1: Do you know what the most And I have said
Speaker 1: this before, a million times. But like, if anything, I
Speaker 1: am a broken record. Beck, do you know what the
Speaker 1: most underutilized resource I believe is our huts? Oh honey, yes, yes,
Speaker 1: but also the call center. Superannuation funds iced to be
Speaker 1: a call center at super I know, but like your
Speaker 1: fun I would call you.
Speaker 4: It's so nice thing, But like you had access.
Speaker 1: To all the information to tell me what my super
Speaker 1: fund was doing, what it was invested in, what my
Speaker 1: risk profile looked like, how that works, and if you
Speaker 1: couldn't answer the question, you'd send me someone who could.
Speaker 1: Sure you're paying the fees on your super fund so
Speaker 1: that you can access that, and so technically it's free
Speaker 1: to call because you can't not pay your super fund fees,
Speaker 1: YOLLO call them. Abuse that system. Make sure you know
Speaker 1: it inside out, because at the end of the day,
Speaker 1: it's your money. And to be really dramatic, but also
Speaker 1: it's not dramatic, it's just true. The difference between you
Speaker 1: not making a decision and not looking at your super
Speaker 1: today and just retiring is hundreds of thousands of dollars.
Speaker 1: You can be hundreds of thousands of dollars better off
Speaker 1: because I told you to be true. Credit for that.
Speaker 4: I love that. I love that. I'm gonna personally give
Speaker 4: you all the credit if that's okay, thank you, thank you.
Speaker 1: So I would like to personally take all the credit. Yeah,
Speaker 1: I have perfose working out so well for us.
Speaker 4: It's great transaction, all right. So v fifty four percent
Speaker 4: of Australian shares held directly.
Speaker 1: Oh okay, you know what, I'm not surprised by that.
Speaker 1: Oh I'm not surprised by that. Like, if that's the
Speaker 1: I guess, let's say the will one investment for female
Speaker 1: identifying people held outside of Super I feel like that
Speaker 1: makes the most sense because, to be honest, that's the like,
Speaker 1: I don't know, what would you say, It's like the
Speaker 1: gateway drug of the investment world because they're the easiest
Speaker 1: to get your hands on.
Speaker 4: Yeah, yeah, what's next?
Speaker 1: Okay?
Speaker 4: So next is we have thirty five percent in residential
Speaker 4: investment property.
Speaker 1: Who's surprised? Zero Peoplian dream? Yeah mummy nice? What's next?
Speaker 4: Okay? Next we have thirty percent in term deposits.
Speaker 1: Not surprised. Term deposits, especially at this point in time
Speaker 1: because of what our economy is doing, very attractive. Yeah,
Speaker 1: I'm not saying go invest in them, but they have
Speaker 1: become increasingly attractive. The other thing that's increased in attractiveness recently, Beck,
Speaker 1: apart from.
Speaker 4: You, we did not plan that.
Speaker 1: We did so crazy that we haven't been each other
Speaker 1: looking good. Okay, sorry, sorry, is just high interest savings accounts. Ah,
Speaker 1: you're better looking than a high interest savings account.
Speaker 4: Back, thank you.
Speaker 1: That is so the nicest thing anyone's ever said to me.
Speaker 2: I know.
Speaker 4: Okay. Next, we have thirteen percent in ETFs. I'm surprised
Speaker 4: by that, and eleven percent in international shares held directly,
Speaker 4: I'm not surprised by that.
Speaker 5: Hah.
Speaker 1: So I'm surprised by the exchange traded funds being only
Speaker 1: at thirteen percent because if you look at our community,
Speaker 1: a lot of people when you start an investing conversation,
Speaker 1: you'll say, well, you know, Beck, you've got your first
Speaker 1: thousand dollars. One thousand dollars to get straight into the
Speaker 1: share market is very easy. From my perspective. What you
Speaker 1: need to do is have a think about there's like
Speaker 1: a laundry list of things. We've done episodes on this before.
Speaker 1: But what you going to do is think about your values.
Speaker 1: And I know that sounds really fluffy, but you actually
Speaker 1: need to think about your values. You go, well, what
Speaker 1: kind of investment do you want pick? Like you live
Speaker 1: over Brunswick Way. Yeah, yeah, hippy dippy, You're fine. You're
Speaker 1: probably going to be a little bit more ethical than
Speaker 1: the A Bridge bear. So like we're going to start thinking, like,
Speaker 1: do you want to invest in BHP?
Speaker 4: What's that?
Speaker 1: It's the oil company? Oh? I do not know that? No? No,
Speaker 1: I say no because I know you don't know it.
Speaker 1: Do you want to invest in like gambling or tobacco
Speaker 1: or like, you know, all of those things that you
Speaker 1: actually spend a lot of money on.
Speaker 4: Like you know, I should say no, but I wouldn't mind.
Speaker 1: Yeah, you wouldn't mind that. I think it's really important
Speaker 1: to talk about your ethics first and like do you
Speaker 1: want to hold those things or not? Yeah, let's say
Speaker 1: you say no and you want to go down the
Speaker 1: route of a more ethical portfolio, and you go, all right,
Speaker 1: well I want it to be ethical. All right, We've
Speaker 1: got some guidelines here that's really good. Do you want
Speaker 1: to pick your own shares? In that case, if you
Speaker 1: do want to pick your own shares, I'm going to
Speaker 1: be real blunt and say to get diversification on an
Speaker 1: entire portfolio with just one thousand dollars is incredibly hard
Speaker 1: because of the purchase price shares exist at. So to
Speaker 1: buy a NAB or like a bank share of any kind,
Speaker 1: you're looking at more than fifty dollars per trade. Sure,
Speaker 1: So what are you going to do? Buy one share
Speaker 1: and then another share in a different bank, and then
Speaker 1: another share in a few different asset classes to get diversification,
Speaker 1: in which case you only have one share per asset.
Speaker 1: Or are you going to look at an ETF, which
Speaker 1: is an exchange traded fund, which is essentially a big
Speaker 1: basket of shares that a fund manager has picked and
Speaker 1: put in the basket, and you go, I want to
Speaker 1: own that because it gives you instant diversification. So I'm
Speaker 1: not making recommendations here. I'm just very surprised to hear
Speaker 1: that of all Australian female identifying investors, only thirteen percent
Speaker 1: of them are holding ETFs. Yeah, right, because that ETF
Speaker 1: is basically instant diversification. And if you look at our community,
Speaker 1: I would say that's one of the most popular asset
Speaker 1: classes to talk about. Like people aren't saying, oh, should
Speaker 1: I buy this particular share Beck. They're saying, oh, have
Speaker 1: you used this ETF? Are you with Banguard? Are you
Speaker 1: with beta shares? What does this look like? And I
Speaker 1: feel like that's the conversation we're having the most as
Speaker 1: opposed to what shares should we hold? Directly in saying that,
Speaker 1: let's go back to the data that you gave me
Speaker 1: before you said the average age's forty seven. Now, I'm
Speaker 1: not so surprised that an ETF isn't as popular, because
Speaker 1: if you're forty seven, that's not old. Like I'm not
Speaker 1: throwing you under a bus. But the entry point in
Speaker 1: the investment world was very different when you started investing.
Speaker 1: Let's say, if you started investing in your twenties and
Speaker 1: you're now in your forties. Sure, so it wasn't an ETF,
Speaker 1: and ETF was much harder to get into, whereas a
Speaker 1: direct share might be something that your parents taught you
Speaker 1: to buy or they owned and you just replicated their portfolio.
Speaker 1: So I'd be interested to hear what you think. And
Speaker 1: I know what's coming up. I just can't see the data,
Speaker 1: but I reckon when you tell me about these younger investors,
Speaker 1: I think that the stats for ETFs are going to
Speaker 1: be higher. Let's have a little word.
Speaker 4: Well, just really quickly, I want to say, we do
Speaker 4: have an episode Basics of Investing that we did a
Speaker 4: few months ago, many.
Speaker 1: Investing things and so many low key keep an eye out,
Speaker 1: because I am dropping an investing course really soon. Yes, true,
Speaker 1: true money master class. We're going to do an investing
Speaker 1: master class. And you know what's kind of embarrassing because
Speaker 1: I've been being asked for this for years and I
Speaker 1: haven't done it.
Speaker 4: Hey, that's quite all right, exactly right. So just in
Speaker 4: case you're listening and you're like, I don't know what
Speaker 4: any of these things mean, I.
Speaker 1: Actually just want okay, like this is actually one of
Speaker 1: the reasons I retired as a financial advisor beck because
Speaker 1: I legally couldn't have done this master class if I
Speaker 1: was licensed to.
Speaker 4: Give follow advice.
Speaker 1: Yeah, I had to wait so as much as since. Yeah,
Speaker 1: it wasn't because I was being lazy. But no, sounds
Speaker 1: more clickbaity if I say it that way, Hey.
Speaker 4: Little bit, just kidding, No.
Speaker 1: Carry on, carry on, What have you got for me?
Speaker 1: Tell me about next genn invest So.
Speaker 4: Yes, we are going to touch on next gen investors
Speaker 4: now between eighteen and twenty four year olds. Tiny babies,
Speaker 4: So first up, just a baby, just honey, baby. The
Speaker 4: average age is twenty one baby, so sweet. The median
Speaker 4: trade size is five two and fifty nine dollars.
Speaker 1: That's that's higher.
Speaker 4: It's very exciting.
Speaker 1: That's higher than women on average. That is so big
Speaker 1: dog energy. Yeah, that is very very impressive. And the
Speaker 1: median portfolio size is forty five thousand and five hundred
Speaker 1: dollars for a twenty one year old. Yeah, isn't that lit?
Speaker 4: That is so good.
Speaker 1: That's like literally half of what the average is for women.
Speaker 4: They've got a bright future.
Speaker 1: Give me twenty years. I want to see this data again.
Speaker 1: It's gonna be so good.
Speaker 4: Curious to know what the high if that's the middle, yep,
Speaker 4: that I'm curious. Not the highest is.
Speaker 1: Oh my gosh. I see so many We ask a
Speaker 1: lot of people in our community like what do you earn?
Speaker 1: What do you spend? What do you earn? What do
Speaker 1: you like?
Speaker 4: All of that?
Speaker 1: And I think it's so interesting, Like there are a
Speaker 1: couple of people and it blows my mind. And do
Speaker 1: you know what, Beck, there's a whole heap of privilege
Speaker 1: that plays into it. Sure, but we've had them on
Speaker 1: the show before. If you listen to our money diaries
Speaker 1: where young girls are like, yeah, I'm twenty one and
Speaker 1: they have one hundred and fifty thousand dollars an investment portfolio.
Speaker 4: So what Yeah, how how did we get?
Speaker 1: Is it black magic?
Speaker 4: Yes, it must be. I don't think it could be
Speaker 4: anything else.
Speaker 1: Was it from your trust fund? It's it's not there.
Speaker 1: Actually usually it's not, so to give them credit, it's
Speaker 1: really not, of course.
Speaker 4: So the top five investments outside of super for this bracket.
Speaker 1: I'm excited. I'm excited.
Speaker 4: Tell me some of your predictions might be right.
Speaker 1: So first, I'm actually really excited to hear these, cause
Speaker 1: I love being right.
Speaker 4: So forty three percent is held in Australian shares held directly.
Speaker 1: Okay, that's a little bit lower.
Speaker 4: Thirty three percent in Yes, yes, that was correct.
Speaker 1: Yeah, I told you you were.
Speaker 4: Absolutely spot off.
Speaker 1: I feel like the tiny babies I eat. Most people
Speaker 1: who listen. Do you know what I was about to say,
Speaker 1: I e most people who listen to our show. But
Speaker 1: do you know the average age of our listener? I'm
Speaker 1: going to say forty, no, fifty, No, I don't know.
Speaker 1: There's one point six million of you. So the average
Speaker 1: age is actually and it's a it's not an average
Speaker 1: age because I don't have the media and I actually
Speaker 1: just have like the mean, which is all the numbers
Speaker 1: added together and then divided by the total number of listeners,
Speaker 1: and that is twenty nine. Oh really, yeah, isn't it good? Yeah,
Speaker 1: so if you like took it for a bracket, it's
Speaker 1: between the ages of twenty eight and thirty four.
Speaker 4: So, coy, that is really coollection because I thought it.
Speaker 1: Was just tiny babies listening because so many times we
Speaker 1: talk to these like super young, super passionate like investors
Speaker 1: who am like, how are you better than I ever was? Yeah,
Speaker 1: and yeah, no, it's just people like uspeck Well, welcome to.
Speaker 4: All our twenty nine year olds and everyone else.
Speaker 1: That's hello friends, Love you, udy nine, Love you guys.
Speaker 4: Next up, we have thirty two percent in residential property.
Speaker 1: That's interesting because I'm pretty sure you told me that
Speaker 1: the average of female investors is thirty five, so like,
Speaker 1: that's not that far off the mark. True, Yes, impressive.
Speaker 4: The difference here, I think is that there's thirty five
Speaker 4: percent of residential investment property for maybe the yeah, okay,
Speaker 4: older generation yeah, okay, actually.
Speaker 1: Just maybe their first homes. This is probably first homes.
Speaker 1: I would say, I could go on around here where
Speaker 1: I do not believe that your family home is an investment,
Speaker 1: But we're going to save that one for another day.
Speaker 4: Yes, absolutely. And then we have thirty one percent in crypto,
Speaker 4: which is interesting, Big Dog Energy Alrightyes, I would.
Speaker 1: Like to see your portfolios. I'm always so interested back
Speaker 1: when it comes to people who buy crypto. No shade, absolutely,
Speaker 1: no shade. As you know, I don't care what you
Speaker 1: invest in. I just care that it comes from an
Speaker 1: educated place. I care that it is in line with
Speaker 1: your values and that you are feeling really confident with
Speaker 1: the decision that you've made and you've like did everything.
Speaker 1: But the fact that crypto is one of the riskiest assets,
Speaker 1: knowing that so many women and women are usually more
Speaker 1: conservative to be a little bit stereotypical. To know that
Speaker 1: so many people who are investing in crypto before they're
Speaker 1: investing in shares which are inherently less risky, right, blows
Speaker 1: my mind.
Speaker 4: Yes, very interesting. I find that very interesting. And then lastly,
Speaker 4: V we have twenty five percent in international shares held directly.
Speaker 1: How cool.
Speaker 4: Yeah, wow, I'm really really excited. I actually really like
Speaker 4: this of these people.
Speaker 1: I think it's an interesting, I guess thing to go
Speaker 1: through and just talk about. Do you know what the
Speaker 1: next gen investors? Give them another ten years, they're going
Speaker 1: to be running rings around every other.
Speaker 4: Person, and quite frankly, they can.
Speaker 1: I will let them.
Speaker 4: I will let them. I'm weaving them full control.
Speaker 1: We'll give them the podium. They can have this podcast all.
Speaker 1: They can take it, absolutely anything they want. All right, beer,
Speaker 1: let's go to a really quick break. Let's have a
Speaker 1: quick break, eat a coffee frape, and on the flip side,
Speaker 1: we're going to dive into exactly why I always say
Speaker 1: that I'm a conservative but aggressive investor. Don't go anywhere.
Speaker 4: Okay, V we are back.
Speaker 1: You were saying at the start that risk in investing
Speaker 1: is multifaceted.
Speaker 4: Let's discuss that a little.
Speaker 1: Bit multifaceted risk that feels like it makes it much
Speaker 1: smarter than it actually is. I like it. So we're
Speaker 1: a multifaceted tongue twister. No, it just makes me feel intelligent.
Speaker 1: We should use it more often. Yes, all right, So
Speaker 1: let's talk about risks. So risk essentially like if I
Speaker 1: drew a little risk reward chart. The more risk you
Speaker 1: take on, the more you could potentially lose. So we
Speaker 1: have four different recognized asset classes here in Australia, and
Speaker 1: I'm not going to get into every single nuanced about
Speaker 1: each and every single one of them. However, we have cash,
Speaker 1: essentially the money in your bank. We have fixed interest,
Speaker 1: which is things like term deposits, high interest savings accounts
Speaker 1: where you lock your money away, and bonds. We have property,
Speaker 1: which is the great Australian dream. And then we have shares,
Speaker 1: which arguably is remote perspective, the sexiest of the four
Speaker 1: asset classes. Right. So you've got those four asset classes
Speaker 1: and a good portfolio is made up of a good
Speaker 1: mix of all four of those. So when you're talking
Speaker 1: to the idea of risk, the more risk you take on,
Speaker 1: the more you could potentially return. But as we've said,
Speaker 1: the more you could potentially lose. So we know in
Speaker 1: Australia beck that the lowest risk asset class is technically cash, right,
Speaker 1: so the cash in your bank, like, you're not necessarily
Speaker 1: going to lose it. In fact, we live in Australia
Speaker 1: and we have government guaranteed bank accounts which means, hypothetically,
Speaker 1: if the world flipped upside down and your bank went down, Beck,
Speaker 1: and it became completely bankrupt, the government guarantees that they
Speaker 1: will give you back up to two hundred and fifty
Speaker 1: thousand dollars of what you've got in your savings count.
Speaker 1: So that feels pretty comfy, right, Yeah, So if like
Speaker 1: your bank for some reason went absolutely down, the gurglar,
Speaker 1: it's all right, the government's got you back.
Speaker 4: That is so cool. I did not know that.
Speaker 1: Very cool. But also, let's be honest, if one of
Speaker 1: the big four banks goes down, Bed, I promise there
Speaker 1: is so much more to worry about, right than your savings.
Speaker 1: And I know that that sounds dramatic, but if one
Speaker 1: of the banks is going down, her economy is absolutely rancid.
Speaker 1: And I know, and this hasn't happened before, but I
Speaker 1: can almost guarantee that if one of the big banks
Speaker 1: was going to go down because of how much it
Speaker 1: props up the economy, the government would basically jump in,
Speaker 1: give them a little bit of a life raft and
Speaker 1: make sure that that didn't happen because of how impactful
Speaker 1: those big four banks are on our economy. Right, But
Speaker 1: in saying that makes us reel really safe. The flip
Speaker 1: side of cash, though, is that a dollar today is
Speaker 1: not worth a dollar tomorrow. And we know this because
Speaker 1: of inflation. As you know inflation, and we knew when
Speaker 1: we got kicked in the absolute guts when our Hex
Speaker 1: and Help debts went up by seven point one percent.
Speaker 1: Inflation's really high at the moment, and that essentially means
Speaker 1: that what we could buy on this day last year, beck,
Speaker 1: is more than what we could buy today. And essentially
Speaker 1: CPI or consumer Pricing Index is essentially where, in the
Speaker 1: most simplest terms, a whole heap of economists they go, Beck,
Speaker 1: let's go shopping, and they have a basket of goods
Speaker 1: just from woolies or coals, and they go and fill
Speaker 1: their basket full of all of these essentials and then
Speaker 1: they go, what does this cost? And last year it
Speaker 1: might have cost thirty five dollars and this year it
Speaker 1: might cost forty five dollars. So that's the increase in
Speaker 1: consumer Pricing Index or CPI or inflation. How much stuff
Speaker 1: is going up, right, So it means that if you're
Speaker 1: going to put all your money in cash and go,
Speaker 1: do you know what the other asset classes real risky.
Speaker 1: I'm not so sure about them. It means that because inflation,
Speaker 1: when you see you went up by seven point one percent,
Speaker 1: you would need to be making on your savings account
Speaker 1: at least seven point one percent to have the same
Speaker 1: amount of money that you had last year. We're not
Speaker 1: saying that if you dumped ten grand in a savings account,
Speaker 1: you won't have it. Next year. You'll have ten grand,
Speaker 1: it will stay identical. But to purchase the same amount
Speaker 1: of stuff that you could have purchased last year with
Speaker 1: ten grand, you're going to need ten thousand and seven
Speaker 1: hundred dollars because it's increased by seven percent. Does that
Speaker 1: make sense? That does make sense, So you're going to
Speaker 1: need more, Yeah, because unfortunately the world is increasing in price,
Speaker 1: and ten grand today is not worth what it is tomorrow.
Speaker 1: And that means that, unfortunately, if you're going to have
Speaker 1: all of your assets or all of your money tied
Speaker 1: up in cash, it's going to cost you more over
Speaker 1: the long term, and you're actually shooting yourself in the foot,
Speaker 1: which is not that sexy.
Speaker 5: Right.
Speaker 1: Then, we've got and we're not going to go too
Speaker 1: much into it, but bonds and fixed interests and stuff
Speaker 1: like that higher return but also relatively stable, and it's
Speaker 1: going to depend on what type of asset class you
Speaker 1: get into. Then we've got property, the Great Australian dream.
Speaker 1: It's not going to go up in the same way
Speaker 1: that it has over the last thirty years. But that's
Speaker 1: absolutely okay because it doesn't mean it's a bad asset class.
Speaker 1: It means we just need to be smart about what
Speaker 1: we're purchasing and where we're purchasing. And as I've said before,
Speaker 1: we are only talking about that in investment terms. I'm
Speaker 1: not talking about your first house or your first apartment.
Speaker 1: To me, that is a hygiene factor, not that you
Speaker 1: need to have one. Beck I don't think that anyone
Speaker 1: needs to purchase property if they don't want to. Renting
Speaker 1: is totally acceptable as an outcome for putting a roof
Speaker 1: over your head. Like, it doesn't matter if you own
Speaker 1: property or not, that's not the point. But if you
Speaker 1: choose to buy a property to live in, that's not
Speaker 1: an investment because if you've chosen it to be an investment,
Speaker 1: you would have to sell it for that money to
Speaker 1: actually have an impact on your life. So don't get
Speaker 1: me wrong, it's an absolute privilege to pay off a
Speaker 1: mortgage completely and not have to be paying rent each
Speaker 1: in every single month. But we also need to look
Speaker 1: at the flip side of that where if you go, yeah,
Speaker 1: but it'll increase in value. That's that old school concept
Speaker 1: of downsizing.
Speaker 4: Right.
Speaker 1: It's like their stereotypical two lawyers. They get married, but
Speaker 1: they have a lot of income. They go by the
Speaker 1: biggest house in a very fancy suburb. Right, They work
Speaker 1: until they retire. They retire at the ripe old age
Speaker 1: of sixty five years early. You can say the lawyers
Speaker 1: a right big dog, right. Yeah, their properties now worth
Speaker 1: like five million dollars, Oh big dog. But all their
Speaker 1: money is tied up in that five million dollar property
Speaker 1: because it was a big mortgage and they've spent their
Speaker 1: entire lives paying that mortgage off. Right for them to
Speaker 1: live comfortably in retirement, because they've used their family home
Speaker 1: as their main asset, you know what they have to do.
Speaker 1: They have to sell their family home because you don't
Speaker 1: just have five million dollars. Like your house might be
Speaker 1: worth five million dollars, but if you've worked your entire
Speaker 1: life to build up this beautiful, big home, doesn't matter
Speaker 1: if it's a big or small. This is just the
Speaker 1: example I'm using. You worked your whole life for this, right,
Speaker 1: you've built it up, You've done all of this stuff
Speaker 1: and you're so excited about it. But now it's all
Speaker 1: designed the way that you want it designed, and you've
Speaker 1: brought up your kids in there, and now your grandkids
Speaker 1: come over. For you to have a comfortable retirement, you
Speaker 1: have to sell that house. You have to move potentially
Speaker 1: into a different suburb because you can no longer afford
Speaker 1: the suburb. While still having retirement savings, you might go
Speaker 1: and buy a house for two million dollars in a
Speaker 1: different area, and now you have access to the additional
Speaker 1: cash to retire comfortably. So from my perspective, Beck, why
Speaker 1: did we save all our money and invest it technically
Speaker 1: into this big family home for us to then dispose
Speaker 1: of it if it is our one favorite true asset.
Speaker 4: Like, if you've worked your.
Speaker 1: Entire life for your dream family home but all your
Speaker 1: money is tied up in it, well, do you want
Speaker 1: to have to throw your family home down the drain
Speaker 1: so that you move to a smaller place Like, Don't
Speaker 1: get me wrong, that's a very valid investment strategy if
Speaker 1: that's aligned to your family values and what you want
Speaker 1: to create. Telling you right now, I have only just
Speaker 1: finished renovating. It's not even finished. Don't even start me
Speaker 1: my first home. I'm so excited about it, but I
Speaker 1: also know that it's not my forever home. However, having
Speaker 1: gone through this whole process of picking things and doing
Speaker 1: my own bathrooms and oh my god, I got to
Speaker 1: pick the carpets and the lights in my bedroom. If
Speaker 1: I get to my big family home one day and
Speaker 1: I do that, I don't want to sell that. I
Speaker 1: want to bring my kids up in that house. I
Speaker 1: would want my kids to bring home their kids and
Speaker 1: that's their grandparents' house. Do you know what I mean? Like,
Speaker 1: everybody has different values, and I'm not saying that you
Speaker 1: need the same ones as mine, but I think that
Speaker 1: we need to reframe this idea that your family home
Speaker 1: is an investment, because from my perspective, it's only an
Speaker 1: investment if you're willing to dispose of it. Does that
Speaker 1: make sense?
Speaker 4: It makes so much sense.
Speaker 1: Okay, so other house ran to side. We now move
Speaker 1: on to shares, and they are, from my perspective, one
Speaker 1: of the most attractive investment types. Do you know why?
Speaker 1: I think they're real sex because they do two things. Beck,
Speaker 1: in this day and age, two things I know. We
Speaker 1: love a flexible gal. They can increase in value. Nice. Nice,
Speaker 1: But they can also pay you with dividends. Oh my,
Speaker 1: I've worn something that is worth more tomorrow and also
Speaker 1: paid me for the privilege. Hot girlshit.
Speaker 4: Yeah.
Speaker 1: Anyway, So shares I think are relatively attractive, but we
Speaker 1: know that they're more risky. So because they're more risky,
Speaker 1: people tend to shy away from them. But they usually
Speaker 1: shy away from them because they don't have the education
Speaker 1: around what we're building. So when I say I am
Speaker 1: a very conservative, aggressive investor, I say I'm willing to
Speaker 1: take a lot of risk by exposing most of my
Speaker 1: money to the share market. So I'm happy for my
Speaker 1: money to all be in shares. I do have my
Speaker 1: emergency fund. Please don't get me wrong. Never invest your
Speaker 1: emergency fund. Beck, They're the rules. I made them, so
Speaker 1: you've got to follow them. You have to follow you
Speaker 1: have to follow them. Yeah, absolutely, no investing of your
Speaker 1: emergency fund. However, as a conservative, risky investor, I'm not
Speaker 1: picking crypto. I'm not picking shares that have just joined
Speaker 1: the market. I'm not picking. Do you remember when everyone
Speaker 1: was talking about after pay shares and they were just
Speaker 1: like super excited about buying after pay.
Speaker 4: Yeah, that does ring a bell.
Speaker 2: Yeah.
Speaker 1: I feel like it was maybe like twenty eighteen, twenty nineteen.
Speaker 1: Everyone was like, oh my god, I wont after pain
Speaker 1: and I was like, oh, a big billion energy, you will.
Speaker 1: But after pay weren't paying dividends. So I was like,
Speaker 1: I'm not buying that because I want to be paid
Speaker 1: for the privileged baby. Yes, So to me, that was
Speaker 1: not a share that I purchased. And the only way
Speaker 1: people were making money by buying after pay shares back
Speaker 1: then was to buy them, have them increase in value,
Speaker 1: and sell them.
Speaker 4: Laughing at and joke that I was going to make,
Speaker 4: but I.
Speaker 1: Know I want to hear joke now.
Speaker 4: Okay, Well you were going to say they don't play paid,
Speaker 4: they don't pay dividends. I was going to say, it's
Speaker 4: a selfish not a share. Yeah, okay, anyway, that's so dumb.
Speaker 4: Who are so?
Speaker 1: I love that you tried.
Speaker 4: Thank you and thank you pople laugh here even though
Speaker 4: it was so dumb.
Speaker 1: That's why I laughed. I think everyone's like that, what
Speaker 1: was that really?
Speaker 4: Really bad.
Speaker 1: She's usually really funny for you. Thank you, You're welcome,
Speaker 1: but sorry continue. I want assets that to me are
Speaker 1: really stable. So, as much as to quote every investment
Speaker 1: professional ever, past performance is not a reliable predictor of
Speaker 1: future performance, I do not want to be buying things
Speaker 1: that don't have good past performance, as much as we
Speaker 1: can't use it as a predictor of the future. To me,
Speaker 1: it's what's making me feel comfortable about the future. So
Speaker 1: if a share has been on the Australian share market
Speaker 1: for the last fifty years, has for the last fifty
Speaker 1: years paid out a dividend and has consistently increased in value,
Speaker 1: We're not saying doubled every year, because that's unsustainable, do
Speaker 1: you know, just bopping along, going up, maybe in line
Speaker 1: with inflation, that would be good. Just just keeping We
Speaker 1: love a girl that just keeps up. We're not trying
Speaker 1: to go fast, You're just trying to get to the
Speaker 1: place safely, right. So for me, I would much prefer
Speaker 1: that type of share than a risky one. So when
Speaker 1: I say that I'm conservative but aggressive, I have most
Speaker 1: of my assets tied up in shares, but beck those
Speaker 1: shares are so boring it's not funny, Like those shares
Speaker 1: are the most conservative shares I could buy. They are
Speaker 1: what is called blue chip shares, and I have them
Speaker 1: spread across a few ETFs because again, love some diversification
Speaker 1: as much as I could, and have managed my own
Speaker 1: direct share portfolio before. Just love a good ETF sometimes, Yeah,
Speaker 1: they do good. They be good. They've got good fund
Speaker 1: managers involved with them, They're from good companies. I've got
Speaker 1: a little bit of Australian shares, like we've got some
Speaker 1: Australian stuff. I've got some international stuff as well.
Speaker 4: Wow, discriminate.
Speaker 1: I love some international stuff in an ETF too. Tax oblations,
Speaker 1: they're not as complicated as if I owned them directly. Sure,
Speaker 1: So I just I'm a low maintenance kind of girlie.
Speaker 1: I don't want much except all of the returns. I
Speaker 1: want those exactly.
Speaker 4: We wouldn't hurt.
Speaker 1: So when I say that, I'm the type of person
Speaker 1: I don't really like taking on risk that it's unnecessary
Speaker 1: for me. I just want to be that slow and
Speaker 1: steady horse that wins the race.
Speaker 4: She's not making a.
Speaker 1: Fuss, she's sactly. I want to look at my portfolio
Speaker 1: and as much as like this is hypocritical. I'm so
Speaker 1: happy to share it with all my friends, which are you.
Speaker 1: I still when I log into my platform to have
Speaker 1: a look at my shares, if my portfolio is down,
Speaker 1: I get that like hit in the chest, you know,
Speaker 1: and you're like, oh, you know that feeling that you
Speaker 1: get if you're not an investor. You get that feeling
Speaker 1: when you check your bank account and you thought there
Speaker 1: was one hundred bucks more in there than there actually was.
Speaker 1: It's that feeling when you're But that's just the emotional
Speaker 1: investing journey, and we have to be aware of that.
Speaker 1: And the reason I'm sharing that with you right now
Speaker 1: is because I genuinely get a little bit stressy about it,
Speaker 1: regardless of how much education I have. But that's why
Speaker 1: we need to be educated, because then I go, actually, Victoria,
Speaker 1: put your ex financial advisor hat right back on, and
Speaker 1: tell yourself that it's just your reflection of the market.
Speaker 1: The market's not doing so well at the moment, so
Speaker 1: it kind of makes sense that your portfolio is reflective.
Speaker 4: Makes sense.
Speaker 1: So if your portfolio is reflective of the market, you
Speaker 1: can't be too mad. No, However, if your portfolio is
Speaker 1: tanking and the market is doing really well. We need
Speaker 1: to have a look at what you've done.
Speaker 4: Absolutely, but actually it's not you.
Speaker 1: It's market exactly, especially if you've chosen assets that are
Speaker 1: well diversified, and diversified can be really scary. But Beckett's
Speaker 1: basically just not putting all your eggs in one basket.
Speaker 1: So if you've got a thousand dollars and you're trying
Speaker 1: to invest for the first time, buy a few different
Speaker 1: options or an ETF or a managed fund or something
Speaker 1: that is going to give you that instant diversification. Because
Speaker 1: if you went and just bought one bank, I promise
Speaker 1: that it's not good diversification. Sure, it is really bad diversification.
Speaker 1: I could not recommend it.
Speaker 4: It is a solid advice viee.
Speaker 1: He's an investor.
Speaker 4: I think I'm almost there. Via. I feel like that's
Speaker 4: a really good place to leave it for today.
Speaker 1: Is it a good place to leave it because you're
Speaker 1: run out of time or you've run out of like
Speaker 1: energy capacity? Okay, that makes sense, but I can rant
Speaker 1: on another episode because honestly, when it comes to investing,
Speaker 1: essentially all of this is just trying to make you
Speaker 1: feel as comfortable as possible when it comes to getting started.
Speaker 1: And I feel like the hardest thing is actually just
Speaker 1: taking the first sleep. And I think when it comes
Speaker 1: to getting started on your investing journey. I know we've
Speaker 1: talked about trades and how you know it's not worth
Speaker 1: investing twenty dollars if your trade is twenty dollars, right,
Speaker 1: But if that's what gets your foot in the market,
Speaker 1: and it actually gives you exposure to an ETF so
Speaker 1: you can follow the market go up and down and
Speaker 1: you can get that emotional investing journey in. Maybe it's
Speaker 1: an investment into your financial literacy so that you get
Speaker 1: exposure to the market you feel really comfortable with it.
Speaker 1: Would I recommend that all the time? Absolutely not. Maybe
Speaker 1: find a shared trading platform that makes sense for your
Speaker 1: investment amount, like beck if you were talking about, oh,
Speaker 1: I have my first fifty bucks to invest, Well, I'm
Speaker 1: not going to say go with self Wealth because they've
Speaker 1: got a minimum investment amount of five hundred dollars. That's
Speaker 1: not going to work for you, is it. But you
Speaker 1: might consider something like share Z's where you can invest
Speaker 1: with as little as one cent. And that's not me
Speaker 1: trying to promote a platform at all. I just think
Speaker 1: if you are looking to get invested, there is going
Speaker 1: to be an option for you. In fact, just to
Speaker 1: do a little shameless plug, I wrote a book. It's
Speaker 1: called Investing Wishes on the Money. I did a chart
Speaker 1: in that book, so maybe if you don't even want
Speaker 1: to buy it, just like, head down to kmart, open
Speaker 1: the book, take a photo of this chart, run away,
Speaker 1: pretend it never happened. But it's a comparison of all
Speaker 1: the fees, all the charges, all of the bells and whistles,
Speaker 1: what exposure you get for a whole heap of investing
Speaker 1: platforms that are most popular in our community. So we
Speaker 1: go through spaceship, we go through rays, we go through
Speaker 1: shares is, we go through self wealth, we go through
Speaker 1: peerl like literally everything that is really popular in Australia
Speaker 1: at the time that I wrote that book. I've compared.
Speaker 1: So all you have to do is go through it
Speaker 1: and go all right, Well, do I want a micro
Speaker 1: investing platform? No, okay, Next I want to share trading platform.
Speaker 1: I really want exposure to Australian shares. Okay, well, these
Speaker 1: are the ones that give me access to that. Oh look,
Speaker 1: here are the fees, here are the charges. I don't
Speaker 1: know if I want that particular bell and whistle, or
Speaker 1: I do want some more research, or I don't want
Speaker 1: some more research. So you can make the best decision
Speaker 1: for you, because picking a platform, from my perspective, one
Speaker 1: of the hardest decisions when it comes to starting your
Speaker 1: investing journey. Right, well now is a really good time
Speaker 1: to leave. Yeah, you're done with me? I are done.
Speaker 4: Need to absorb all of this.
Speaker 1: We can talk about it over lunch. Oh, thank you,
Speaker 1: Absolutely not.
Speaker 4: We can talk about a multitude of other things, but
Speaker 4: let's talk about this again. No, that's sorry, Sorry for me.
Speaker 1: Sorry, not sorry. Well, you have a good week. We
Speaker 1: will see you on Friday for Friday drinks, and then
Speaker 1: we'll see you on Monday for another Monday and money
Speaker 1: dough and I can't.
Speaker 4: Wait, can't wait. So you guys say goodbye.
Speaker 1: Boy.
Speaker 5: The advice shared on She's on the Money is general
Speaker 5: in nature and does not consider your individual circumstances. She's
Speaker 5: on the Money exists purely for educational purposes and should
Speaker 5: not be relied upon to make an investment or financial decision.
Speaker 5: If you do choose to buy a financial product, read
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Speaker 1: Advice tailored towards your needs.
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