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

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Speaker 1: the Order Kerni Whoalbury 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 through.

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Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and

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

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Speaker 1: 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: for millennials who want financial freedom, My friends, Today is Friday,

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Speaker 4: which means it is time to sit back with the

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Speaker 4: girls with a bev in hand, to unpack our favorite

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Speaker 4: moments of the week and of course, to celebrate our

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Speaker 4: incredible She's on the Money community. As always, we'll be

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Speaker 4: sharing our favorite money wins. We're going to discuss what's

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Speaker 4: making news in the finance world, and today we are

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Speaker 4: going to be answering a juicy money question, which this

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Speaker 4: week is all about investment diversification.

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Speaker 5: But first it is.

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Speaker 4: Time to recap the week that was. Miss jesse Garichi,

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Speaker 4: could you talk us through what happened on our Monday

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Speaker 4: Money Diary.

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Speaker 6: Absolutely, Monday's diarist was ever so lovely. She watched her

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Speaker 6: family go through bankruptcy when they were little and they

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Speaker 6: lost pretty much everything, which, as we've spoken about on

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Speaker 6: the podcast before, is definitely considered a form of financial

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Speaker 6: trauma and something that really shapes your money story. And

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Speaker 6: she spoke to us a little bit about what the

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Speaker 6: impacts of that were on her as an adult, how

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Speaker 6: it has kind of changed her perspective and you know

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Speaker 6: what she's thinking about because now she's in the position

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Speaker 6: her and her fiance are building their first home together,

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Speaker 6: which is so exciting. And she spoke a little bit

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Speaker 6: about the impacts of that mindset really had on her

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Speaker 6: and the goals that she has and how it can

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Speaker 6: sometimes be a little bit of a barrier, which I

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Speaker 6: think is super relatable for a lot of people and

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Speaker 6: a really good example of how even those things that

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Speaker 6: we experience in childhood. She personally didn't go bankrupt, her

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Speaker 6: parents did, but that it really impacted her a thousand percent.

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Speaker 6: It really carried into her adulthood and she was just

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Speaker 6: very self aware, and I thought that was super admirable

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Speaker 6: and showed that she had been working really hard on

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Speaker 6: her financial literacy and her self awareness.

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Speaker 2: Agreed.

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Speaker 4: I felt like it was a really powerful story as well,

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Speaker 4: because trauma isn't only just for the person who quote

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Speaker 4: experienced it. It can be really peripheral as well. Yeah,

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Speaker 4: and sometimes we don't even notice that it's impacting us

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Speaker 4: until we get a little bit older and you start

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Speaker 4: making decisions and you're like, why am I so much

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Speaker 4: like my mom? And you're like, oh, oh, okay, that

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Speaker 4: makes a lot of sense. That's how they grew up,

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Speaker 4: that's their values, that's their beliefs, And I think it's

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Speaker 4: just really interesting.

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Speaker 5: We're also discussing fun trauma in a couple of weeks

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Speaker 5: time on The Deep Dive Ladies, so stay tuned for

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Speaker 5: that one as well. I'm really excited.

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Speaker 2: Fut so very fun.

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Speaker 4: Georgia King, I hear your voice on their show Talk

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Speaker 4: to Us What happened on Wednesday?

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Speaker 5: On Wednesday, I sat on the bench. I was not

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Speaker 5: a part of Wednesday's show. The Gorgeous Kate I got

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Speaker 5: you toed.

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Speaker 2: Out, got you to.

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Speaker 5: Kate Brandsgrove joined us on the show to talk all

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Speaker 5: about interest rates and what they mean from a home

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Speaker 5: buying perspective and are interesting topic. But how did she

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Speaker 5: get to kick you off your podcast? George? Well, she's

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Speaker 5: a special woman and I a little it happened. I

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Speaker 5: allowed it.

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Speaker 2: Do they answer the degredation? Yeah?

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Speaker 4: Good, good, no problems at all. I am glad well

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Speaker 4: with that recap to my friends? Do you know what

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Speaker 4: time it is? You guys know what time it is?

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Speaker 4: Is time for our budget direct money Wins of the

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Speaker 4: week Georgia King, what are you bringing to the table?

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Speaker 5: Alrighty, let's hop into it. The first win of the

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Speaker 5: week comes from Amy Money Win. My sister and I

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Speaker 5: work at a golf club along the Peninsula and we

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Speaker 5: both work out at the front reception desk and accommodation together.

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Speaker 5: We had some guests stay with us for a couple

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Speaker 5: of days and they loved us so much that we

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Speaker 5: received a five hundred dollar tip between the two of

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Speaker 5: us wo plus we also got fifty dollars on top

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Speaker 5: of that each from another one of their friends. Both

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Speaker 5: paid pretty averagely, so it really made our weeks. How

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Speaker 5: good's that? Bucks money job.

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Speaker 4: When it starts to go into three figures, you're like,

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Speaker 4: that's a real money The.

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Speaker 5: Next week it comes from Jessica money Whin. I got

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Speaker 5: a secondhand couch on Marketplace in my rental and I

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Speaker 5: had my sister's boyfriend and my cousin carry it up

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Speaker 5: the stairs for me. So I saved on the couch

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Speaker 5: and the removalists.

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Speaker 2: I like that money and logistics win.

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Speaker 5: Removalists are expensive ladies. Psay. I learned that yesterday.

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Speaker 6: Oh really feel the moving process was very stressful. Moving

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Speaker 6: on the next week, it comes from Brittany money Win.

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Speaker 6: I got an almost brand new Mercedes kids driveable car

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Speaker 6: from my estates by swap sell Facebook.

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Speaker 5: Group for free money win. These usually go for about

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Speaker 5: four hundred dollars. It was listed as not working and

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Speaker 5: missing a charger.

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Speaker 2: That's a right, I'll get a charger. I'm saving four Hungie.

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Speaker 5: My amazing electrician husband fixed it for our daughter, who's

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Speaker 5: four years old, and we had a spare twelve volt

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Speaker 5: charger laying around. Oh yeah, of course, piece of cake.

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Speaker 5: Turns out our daughter is absolutely terrified of the car

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Speaker 5: and we'll be putting it in storage until our seven

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Speaker 5: month old son is able to use it.

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Speaker 2: Okay, so yes.

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Speaker 4: One of my girlfriends gave her daughter like a mini

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Speaker 4: range drover for her birthday. It was the boogiest thing

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Speaker 4: I've seen in my life. We go to this first

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Speaker 4: birthday and this little kid is being gifted this rain drover.

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Speaker 4: I mean, it sounds real boogie, but it's obviously like

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Speaker 4: actually a fun present.

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Speaker 2: Her daughter was terrified of it as well. She's like,

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Speaker 2: that was expensive and I thought she'd.

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Speaker 4: Love it, and I was like, okay, so yeah, it'll

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Speaker 4: probably come back at her second birthday because kids.

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Speaker 2: Don't know, they don't know money win.

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Speaker 7: Later though exactly next win is a loss actually, and

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Speaker 7: it comes from is a loss, money loss. I traveled

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Speaker 7: to Woomba for a work meeting and I paid six

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Speaker 7: dollars seventy for a regular lactose free latte at the

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Speaker 7: service station.

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Speaker 4: By the service station, Oh you can pay that angle

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Speaker 4: and I respec that's still good.

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Speaker 5: But she said the coffee was good.

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Speaker 2: Oh it was good. Servo, coffee is good?

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Speaker 5: Is it?

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Speaker 2: Can't say the same?

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Speaker 5: Actually, is it true on a money related front? Because

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Speaker 5: we are on shees on the money. That coffee's at

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Speaker 5: seven eleven. Yeah, they're going up the first time.

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Speaker 4: I actually laughed so hard and heard on the grape

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Speaker 4: vine that they pushed that launch off because of the

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Speaker 4: circus around my coffee.

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Speaker 2: Yeah, coffee gate, so they pushed that off.

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Speaker 4: But they are going up, which, to be honest, still

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Speaker 4: a total coffee guys, that's still very good value. The

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Speaker 4: thing that Jess is going to be real salty about though,

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Speaker 4: Jess doesn't drink coffee, so I don't know if you

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Speaker 4: read the pr or the media release from them. Can

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Speaker 4: I have to break it to her now then live

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Speaker 4: on the show, Jess. They're also doubling the price of

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Speaker 4: slur piece.

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Speaker 6: No, oh my god, I'm I was literally like two

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Speaker 6: dollars for coffee still really chat but two dollars for

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Speaker 6: a slow absolutely not?

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Speaker 2: Are you real salty? We like the guys at seven eleven.

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Speaker 4: They're I mean, they're not actually our friends, but we

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Speaker 4: think that they're our friends.

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Speaker 5: The next weein comes from Emma, guys, money win. I've

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Speaker 5: just turned my first apartment into an investment property and

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Speaker 5: a tenant is moving in on Friday.

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Speaker 2: Money when that's exciting? So how exciting would that be?

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Speaker 2: Oh my gosh?

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Speaker 5: So many Yeah.

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Speaker 4: But just like so many of our community work their

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Speaker 4: buds off to get into their first homes and like

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Speaker 4: that's obviously a massive milestone in itself. However, imagine buying

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Speaker 4: house and then getting your first ten and you're like,

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Speaker 4: this is now making money?

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Speaker 5: Like that's sick killing it. Well done, Emma. Last win

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Speaker 5: of the Week, Ladies comes from Callista. Since listening, Okay,

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Speaker 5: it's quite self indulgent. Sorry, I chose it because it's

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Speaker 5: pretty complimentary to us. Since listening to She's on the Money.

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Speaker 5: I've closed all of my buy now, pay later accounts,

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Speaker 5: been contributing extra super and tax through work. I've sorted

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Speaker 5: out automated transfer to savings accounts to stop me spending

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Speaker 5: all of my money. I've been investing regularly in ETFs,

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Speaker 5: and I just got a new job that pays me more. What, Queen,

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Speaker 5: I'm just doing it all as queen behavior. I love

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Speaker 5: being part of this community that teaches me so much

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Speaker 5: and keeps me on track.

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Speaker 4: We love having but also like we're just putting the

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Speaker 4: information out there. Look at all that work she did,

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Speaker 4: We didn't do that.

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Speaker 2: Like we just talked absolute smack on this podcast and

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Speaker 2: then take credit for stuff like that it's great. It

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Speaker 2: is great, Georgia King. It has been obviously fantastic celebrating

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Speaker 2: some of your budget Direct money wins budget Director, winner

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Speaker 2: of can Star's Insurer of the Year Award twenty twenty two.

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Speaker 2: Budget Direct Insurance solved with.

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Speaker 4: That, let's go to a really quick break and after

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Speaker 4: the break, we're going to talk about diversification in your

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Speaker 4: share portfolio. And we have a topic that we want

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Speaker 4: to talk about. The jess is found in the media.

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Speaker 4: Don't go anywhere.

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Speaker 6: Alrighty guys, this week I wanted to talk about something

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Speaker 6: it's not facked yet. Just let me be very clear,

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Speaker 6: because sometimes when we talk about these things, people get confused.

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Speaker 6: A proposal that came out from the Greens and they've

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Speaker 6: proposed four years. I know, this is really interesting. They've

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Speaker 6: proposed a rent freeze that would last for two years

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Speaker 6: to address the cost of the crisis, the rental crisis.

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Speaker 6: Anyone who's renting, George, I mean, you literally just moved

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Speaker 6: because your rent went up, right, yes?

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Speaker 5: Or is that why you moved?

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Speaker 2: You were like salty? Absolutely not yet amongst men. Okay,

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Speaker 2: all right, al right, we'll take this off lineage. We'll

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Speaker 2: take it to a wine.

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Speaker 6: But yeah, a lot of people are experiencing increasing rand,

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Speaker 6: which obviously in many instances is a case of increasing

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Speaker 6: interest rates, which then the landlord's passing along.

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Speaker 2: Yeah.

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Speaker 6: Yeah, it's a whole, big, long thing, but it's just

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Speaker 6: another add on to the already extremely long list of

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Speaker 6: expensive costs that we have to pay just for being

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Speaker 6: a wife, which kind of sucks. So the Greens have

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Speaker 6: proposed a two year rent freeze, which would mean that

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Speaker 6: Australia would be frozen from the weekly amount agreed upon

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Speaker 6: or advertised at the beginning date of the proposed bill,

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Speaker 6: which at this time is the first of August twenty

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Speaker 6: twenty two, which would mean that for two years from

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Speaker 6: the first of August twenty twenty two, which would obviously

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Speaker 6: be backdated, that rent would be frozen where it is.

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Speaker 6: So if right now you pay three hundred dollars a week,

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Speaker 6: for the next two years, your rent would stay at

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Speaker 6: three hundred dollars a week, which sounds really nice, particularly

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Speaker 6: when everything's going up. According to some research that was

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Speaker 6: actually done by SQM, weekly rent has risen by fourteen

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Speaker 6: point one percent in Australia in the past yeah, which

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Speaker 6: is that's a lot like, and I know that we've

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Speaker 6: been talking about how expensive everything feels, but like to

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Speaker 6: hear fourteen point one percent, I mean, correct me if

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Speaker 6: I'm wrong, but that seems like heaps for twelve months.

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Speaker 6: And so that's kind of why they've proposed this. The

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Speaker 6: Greens would need backing from other political parties to make

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Speaker 6: this happen because obviously they are not the party in

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Speaker 6: parliament currently. I don't know if that's the right word

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Speaker 6: or the right phrase, but you know they're not going

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Speaker 6: to pay out, they know any mean baby, They said,

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Speaker 6: we think this is a great idea. It remains to

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Speaker 6: be seen if everybody else jumps on board. But I

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Speaker 6: wanted to chat to the girlies and say, what do

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Speaker 6: we think? It seems like a grade under your own face, Valley,

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Speaker 6: But I always find with politics that there's usually a

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Speaker 6: downside or a surer something like that.

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Speaker 2: Which makes them look real good. Though.

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Speaker 6: Well yeah, and I mean, they have the largest number

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Speaker 6: of seats that they've ever had, which is really cool

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Speaker 6: because I think for a lot of us and please,

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Speaker 6: I'm not getting I mean, I'm talking about it.

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Speaker 2: We're totally getting political. You're talking about the Greens, and

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Speaker 2: that's Okay.

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Speaker 6: I'm not trying to sway people in any way.

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Speaker 4: But no, we have respectful conversations about potential policies and

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Speaker 4: how that might impact our community, Jessica, and you are

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Speaker 4: well within your arts to have an opinion on that

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Speaker 4: because whoever had done it, whether it was the Greens

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Speaker 4: or Liberal or labor, Like, it's just a policy that

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Speaker 4: we're discussing.

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Speaker 2: This isn't a jess votes for the Greens.

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Speaker 6: Yeah, But like, I think it's really cool because the Greens,

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Speaker 6: I think, aligne with a lot of people within our

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Speaker 6: age group. They seem to care about a lot of

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Speaker 6: things that a lot of us do care about, And

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Speaker 6: I just thought it was really interesting to kind of

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Speaker 6: talk about the fact that this kind of left of

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Speaker 6: side party is coming in and proposing changes that seem

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Speaker 6: like they would really resonate for a lot of people.

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Speaker 4: I feel like there are a few people in our

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Speaker 4: community who am like, oh, yeah, that's great. Like, you know, George,

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Speaker 4: if that existed for you, you wouldn't have been mucked

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Speaker 4: over with such a large increase in rent And I

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Speaker 4: feel like it's actually really like one of the draw

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Speaker 4: at the end of the day of renting is reliability.

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Speaker 4: It is knowing that each and every single month you

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Speaker 4: only have to pay that set amount of rent. And

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Speaker 4: if your hot water system breaks, all like meat, your

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Speaker 4: air conditioner system breaks and it's going to cost you.

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Speaker 4: It literally is going to cost me fifteen thousand dollars

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Speaker 4: to put a new reverse cycle into our house. Like,

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Speaker 4: that's not your problem. That ain't your circus said, it

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Speaker 4: is not your monkeys.

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Speaker 2: That is somebody else's house.

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Speaker 4: Gee, you would just pick up the phone, call your

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Speaker 4: agent and say, hey, the aircon doesn't work. Can you

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Speaker 4: just organize someone to come and look at it? Like

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Speaker 4: that is one of the complete benefits of renting, that

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Speaker 4: it's consistent, right, But for them to increase rent, buy

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Speaker 4: a massive amount, and if you're saying it's gone up

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Speaker 4: fourteen percent, let's remember how those statistics are calculated, that

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Speaker 4: would be an average across the board. I know people

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Speaker 4: like you know my sister she signed a new lease

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Speaker 4: at the start of COVID, got a really sweet deal

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Speaker 4: and a really sick house, and I'm like, wow, that's

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Speaker 4: really nice.

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Speaker 2: When I was all right, I couldn't afford that. Who knows.

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Speaker 4: I haven't spoken to her about rent recently. I'm assuming

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Speaker 4: that her owners might be going, oh, like, maybe we

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Speaker 4: should put it back up to what it used to be.

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Speaker 4: And I'm assuming, George, that's maybe what happened to you

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Speaker 4: where they've gone all right. Well, you know COVID's quote

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Speaker 4: over we want actual rental yield for this, which from

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Speaker 4: an investor perspective makes a lot of sense, right, Like,

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Speaker 4: if you purchase an investment property with the intention of

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Speaker 4: creating a rental yield to put you in a wealthy

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Speaker 4: position when you are older, like, that's your progreative. You

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Speaker 4: can charge whatever rent you want. But I think that

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Speaker 4: puts people in a compromise position. So to say we're

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Speaker 4: going to cap it at two percent annually, you're all right,

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Speaker 4: Like that seems kind of reasonable. I'd be interested to

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Speaker 4: know the semantics of that, Like, am I only allowed

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Speaker 4: to increase Jessica Ricky's rent by two percent each year?

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Speaker 4: Or if I tell her I'm not renewing her lease,

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Speaker 4: can I then increase it by fifteen percent.

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Speaker 2: To a new tenant.

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Speaker 4: Will that increase turnover and therefore decrease availability of rentals?

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Speaker 2: That's a really good point.

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Speaker 6: I hadn't thought about the fact that if the rule became.

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Speaker 6: Let's say you can't increase the rent on your tenant

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Speaker 6: for two years while they're living. There is the workaround,

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Speaker 6: but if you put a new tenant in, you can

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Speaker 6: change the productya is it?

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Speaker 4: Like it hasn't making someone redundant and then you can't

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Speaker 4: hire someone else for like three months after into the

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Speaker 4: same role. Like, I don't know how that works. But

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Speaker 4: I was looking online at this obviously in preparation for

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Speaker 4: this episode, and there's a group called the Property Investment

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Speaker 4: Professionals of Australia and they're saying that the Queensland Greens

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Speaker 4: Party's implementation or proposed implementation of a two year rent

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Speaker 4: freeze is likely to push investors out of the market

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Speaker 4: because if I can only increase your rent by two percent,

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Speaker 4: that's not a good yield if you compare it to

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Speaker 4: the share market, right, But it will increase homelessness. And

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Speaker 4: I think that that's an interesting take because if there

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Speaker 4: are less investors investors equal rental properties available for people

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Speaker 4: to rent, then obviously there's going to be less people

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Speaker 4: able to get into properties, less availability, and I think

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Speaker 4: that creates an even bigger housing crisis above and beyond affordability.

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Speaker 2: So it's an interest conundrum.

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Speaker 4: I can see where the Greens are coming from when

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Speaker 4: they say, oh, we would like to implement this, because

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Speaker 4: obviously an emergency rent freeze is going to give time

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Speaker 4: for wages to increase to CPI, because obviously inflation has

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Speaker 4: been absolutely crazy recently, and with inflation, like just if

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Speaker 4: your costs increased and you owned a rental property, you'd

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Speaker 4: be like, oh, I can soak some of that up

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Speaker 4: by increasing my rent, but your rent's income has an increased.

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Speaker 4: So I can see why they would do it, but

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Speaker 4: I also see the flip side of going, hmm, that's

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Speaker 4: actually maybe not the best idea.

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Speaker 1: Yeah.

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Speaker 6: Well, the opposition was asked if they would support the

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Speaker 6: red freeze, and shadow Mister for Housing and Homelessness Michael

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Speaker 6: Sucker said no, and that I would argue is why

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Speaker 6: as someone like I'll be the first to admit that

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Speaker 6: I am definitely not as aware or as educated or

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Speaker 6: as involved in politics as I guess I would like

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Speaker 6: to be. And so it's really interesting when stuff like

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Speaker 6: this comes out because like I looked at that headline

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Speaker 6: and I was like, oh my god, that sounds amazing,

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Speaker 6: Like rent freeze. Everything's expensive, Like I'm worried that my

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Speaker 6: rent's gonna go up, like when our least renuely you

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Speaker 6: just never know, and everything else is already costing so

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Speaker 6: much money, like it's a real stress. And I was like, oh,

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Speaker 6: I got amazing, what a great policy, and my brain

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Speaker 6: kind of stopped there. And that's why I wanted to

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Speaker 6: talk about this, because I think that.

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Speaker 2: Lots of people would be thinking the exact same thing

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Speaker 2: you did.

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Speaker 6: And it's kind of interesting, how, yeah, like on the surface,

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Speaker 6: that is such a great choice, but the economic fallout

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Speaker 6: or the butterfly effect, I guess that these choices have

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Speaker 6: can go so much broader, And so by talking about it,

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Speaker 6: I hope that maybe we showed another side of the coin.

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Speaker 4: I've been reading online and there are a fair few

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Speaker 4: different property commentators who have actually said, look, this snap

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Speaker 4: rent freeze is doing nothing for long term housing supply issues.

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Speaker 4: In fact, it's making it worse, because why would you

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Speaker 4: potentially purchase an investment property that you're going to rent

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Speaker 4: out if it's like not got good yield or ability

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Speaker 4: to grow over time, Because that's one of the draw

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Speaker 4: cards for an investor, right and that rent increases are

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Speaker 4: actually below inflation and then I took it one step

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Speaker 4: further and looked at some research that was done by Picker,

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Speaker 4: who is that property group that I mentioned before, and

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Speaker 4: that showed that rents had grown at only half the

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Speaker 4: rate of inflation over a decade nationally. So that's actually

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Speaker 4: not that bad in the grand scheme of things, if

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Speaker 4: you look at the big picture, and we always say

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Speaker 4: on the pod like if in doubt, zoom out and

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Speaker 4: look at the bigger picture, because right now post COVID,

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Speaker 4: you're like, yep, that rend freeze will be you know,

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Speaker 4: so good for so many people. But if we look

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Speaker 4: at the bigger picture, it's actually quite detrimental.

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Speaker 5: It will be interesting to see what happens as well, ladies,

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Speaker 5: because we have seen over recent times that the volume

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Speaker 5: of investors in the market has decreased because of COVID

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Speaker 5: and because of lending restrictions and legislative changes.

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Speaker 2: Yeah, there's so many different reasons.

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Speaker 5: So if this does come into effect, it will be

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Speaker 5: interesting to see if that decreases further.

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Speaker 4: Yeah, and I know that lots of people, yes you included,

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Speaker 4: well like this is sick.

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Speaker 2: And then I put my finance hat on.

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Speaker 4: I'm like, oh, I don't know about these This actually

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Speaker 4: feels like it's probably detrimental. And you know, there are

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Speaker 4: lots of people in our community that have varying and

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Speaker 4: very diverse views on landlords and whether you should own

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Speaker 4: property or not or what that looks like. But at

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Speaker 4: the end of the day, there is a housing crisis,

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Speaker 4: and one of the ways to actually, you know, help

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Speaker 4: improve that is to have more properties available for rented

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Speaker 4: reasonable prices. And I think there's probably a few things

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Speaker 4: that you could do that isn't a rent freeze that

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Speaker 4: puts us in a better position long term. So it'd

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Speaker 4: be interesting. I don't have the answers. I just am

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Speaker 4: a spectator to this with an opinion. I'd like to

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Speaker 4: see what other people have to say.

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Speaker 5: Oh with all of that said, ladies, Money dilemma time.

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Speaker 2: Oh what a dream, Let's go.

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Speaker 5: Hi there. Have you got a money dilemma you just

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00:18:27,080 --> 00:18:29,480
Speaker 5: can't solve that She's on The Money Team is here

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00:18:29,520 --> 00:18:32,520
Speaker 5: to help. Every week we tackle your dilemmas, both big

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00:18:32,520 --> 00:18:35,359
Speaker 5: and small, to answer your most burning money, career and

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00:18:35,480 --> 00:18:38,920
Speaker 5: life questions. To get involved, simply head to our website

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00:18:38,920 --> 00:18:40,840
Speaker 5: and leave us a quick voice recording, and you may

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00:18:40,920 --> 00:18:43,240
Speaker 5: just find yourself on the show. Now, let's take a

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Speaker 5: listen to today's money Dilemma.

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Speaker 8: Hi, lovely ladies, thanks so much for the great podcast.

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Speaker 8: I'm really loving all of the investing related content, and

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Speaker 8: I have an investment related question. I currently invest in

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Speaker 8: a small number of index based ETFs, and I'm looking

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Speaker 8: to branch out and acquire a handful of individual stocks.

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Speaker 8: I've read that you shouldn't buy companies that are holdings

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Speaker 8: within your ETFs so that you're not doubling up in

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Speaker 8: your portfolio. But I was wondering, if you consider that

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Speaker 8: the share price of a company represents great value, you

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Speaker 8: like what the company does, and you want to acquire

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Speaker 8: them as an individual stock, is it a mistake if

440
00:19:22,720 --> 00:19:24,879
Speaker 8: they're a holding in one of your ETFs.

441
00:19:25,200 --> 00:19:31,159
Speaker 5: Thanks ladies, Victoria Devine, Georgia Kie. I don't know how

442
00:19:31,200 --> 00:19:32,760
Speaker 5: to answer this question, but you know what I can

443
00:19:32,960 --> 00:19:33,920
Speaker 5: add to this conversation.

444
00:19:34,040 --> 00:19:35,240
Speaker 2: Oh, I thought you were going to say, you know

445
00:19:35,320 --> 00:19:36,840
Speaker 2: what I can do, handball it to you.

446
00:19:37,080 --> 00:19:38,439
Speaker 5: I can do that, and I will do that. But

447
00:19:38,480 --> 00:19:41,880
Speaker 5: I just loved this Money Dilemmasts question that I loved

448
00:19:41,920 --> 00:19:43,639
Speaker 5: her energy. I loved her aura.

449
00:19:43,800 --> 00:19:44,600
Speaker 2: You loved her aura.

450
00:19:44,720 --> 00:19:46,800
Speaker 5: Yeah, that's all I can really add to this. I

451
00:19:46,920 --> 00:19:50,040
Speaker 5: like to this conversation, but I'm really curious to hear

452
00:19:50,040 --> 00:19:50,720
Speaker 5: what you have to say.

453
00:19:50,840 --> 00:19:52,960
Speaker 4: VICKI d do you have any comments that you would

454
00:19:53,040 --> 00:19:54,320
Speaker 4: like to make Jess, I don't know.

455
00:19:54,280 --> 00:19:57,000
Speaker 6: The answer, but I suppose maybe to simplify it because

456
00:19:57,000 --> 00:20:00,480
Speaker 6: there was not jargon, but for our newer investors or

457
00:20:00,480 --> 00:20:03,400
Speaker 6: people who are not so confident. Essentially, what she's asking is,

458
00:20:03,560 --> 00:20:05,159
Speaker 6: if she has an ETF, which as we know, it's

459
00:20:05,200 --> 00:20:07,639
Speaker 6: a bundle or a basket of different shares, can you

460
00:20:07,680 --> 00:20:10,280
Speaker 6: make me so proud? Thank you. I'm just I'm literally

461
00:20:10,320 --> 00:20:11,959
Speaker 6: just repeating what you taught me. But if she has

462
00:20:12,000 --> 00:20:14,240
Speaker 6: an ETF, let's say within that ETF, I have invested

463
00:20:14,240 --> 00:20:15,080
Speaker 6: in Cheese on the Money.

464
00:20:15,280 --> 00:20:17,679
Speaker 2: Great, a genius idea. I mean, it's not on the

465
00:20:17,720 --> 00:20:20,080
Speaker 2: stock market, probably never going to be in the stock market,

466
00:20:20,080 --> 00:20:21,560
Speaker 2: but I'd invest in that company.

467
00:20:21,600 --> 00:20:21,800
Speaker 8: Yeah.

468
00:20:21,840 --> 00:20:25,040
Speaker 6: But if my ETF that has all companies owned by women.

469
00:20:25,080 --> 00:20:26,639
Speaker 6: For example, one of the shares that in there is

470
00:20:26,680 --> 00:20:28,679
Speaker 6: Shees on the Money, should I, And I'm like, I

471
00:20:28,720 --> 00:20:30,439
Speaker 6: really like Es on the Money. I want to invest

472
00:20:30,480 --> 00:20:33,840
Speaker 6: in them more. Should I then go directly and invest

473
00:20:33,880 --> 00:20:36,000
Speaker 6: in Cheese on the Money. Shares outside of that ETF

474
00:20:36,240 --> 00:20:39,560
Speaker 6: or not. She's asking is that redundant or is it okay?

475
00:20:39,600 --> 00:20:41,800
Speaker 6: Because I love the company and its values and its ethics,

476
00:20:41,800 --> 00:20:42,240
Speaker 6: et cetera.

477
00:20:42,480 --> 00:20:43,879
Speaker 2: That's a very good way of phrasing it.

478
00:20:43,920 --> 00:20:46,240
Speaker 4: To be honest, I think this is a bigger picture, right,

479
00:20:46,440 --> 00:20:50,080
Speaker 4: So investing in an ETF is often done so. An

480
00:20:50,080 --> 00:20:52,960
Speaker 4: ETF is an exchange traded fund. As you said before, Jess,

481
00:20:52,960 --> 00:20:55,600
Speaker 4: it's basically a basket of shares that is managed by

482
00:20:55,600 --> 00:20:58,960
Speaker 4: a fund manager who's in charge of bringing shares in

483
00:20:59,040 --> 00:21:01,399
Speaker 4: and putting shares out and you know, making all the

484
00:21:01,440 --> 00:21:05,879
Speaker 4: big investment decisions. Most ETFs on the market are what's

485
00:21:05,880 --> 00:21:08,400
Speaker 4: called an index, and that means it it just has

486
00:21:08,720 --> 00:21:10,879
Speaker 4: a whole bundle of different shares in it. It might have

487
00:21:10,960 --> 00:21:13,800
Speaker 4: the top two hundred shares in Australia in it, and

488
00:21:14,080 --> 00:21:17,240
Speaker 4: it then takes the average returns and gives those to you.

489
00:21:17,440 --> 00:21:19,879
Speaker 4: So it's not really looking for, you know, above and

490
00:21:19,960 --> 00:21:22,800
Speaker 4: beyond benchmark performance. It just kind of is the average

491
00:21:22,800 --> 00:21:25,760
Speaker 4: of the average. And most people view an ETF as

492
00:21:25,760 --> 00:21:28,320
Speaker 4: a relatively safe bet. They look at it and go,

493
00:21:28,400 --> 00:21:30,320
Speaker 4: you know what, I don't know heaps about the investment

494
00:21:30,359 --> 00:21:32,800
Speaker 4: markets I am not a financial advisor, but what I

495
00:21:32,840 --> 00:21:35,800
Speaker 4: have done is founder basket that has the values and

496
00:21:35,840 --> 00:21:38,280
Speaker 4: the goals and the ethics that I am happy to

497
00:21:38,359 --> 00:21:40,680
Speaker 4: adhere to, and a pretty good manager that.

498
00:21:40,760 --> 00:21:43,919
Speaker 2: Makes those decisions. What she's talking about is going to

499
00:21:43,960 --> 00:21:44,600
Speaker 2: the next step.

500
00:21:44,640 --> 00:21:46,720
Speaker 4: And if you guys want to know more about that,

501
00:21:46,800 --> 00:21:50,520
Speaker 4: we did a really good bias but really good episode

502
00:21:50,640 --> 00:21:54,000
Speaker 4: on the different ways to invest. We talked about micro

503
00:21:54,160 --> 00:21:57,639
Speaker 4: investing and then share trading platforms and robo advice or

504
00:21:57,640 --> 00:22:00,040
Speaker 4: what it means to get full service financial advice and

505
00:22:00,080 --> 00:22:02,680
Speaker 4: how those different things work. But there's a lot more

506
00:22:02,840 --> 00:22:06,360
Speaker 4: risk when you're picking the shares yourself because there's a lot.

507
00:22:06,200 --> 00:22:07,520
Speaker 2: More responsibility on you.

508
00:22:07,640 --> 00:22:09,720
Speaker 4: It's not about like, oh, v I went and bought

509
00:22:09,760 --> 00:22:12,480
Speaker 4: an A and Z share today and I go, oh congrats.

510
00:22:12,600 --> 00:22:15,400
Speaker 4: You actually hold it in exactly the same way as

511
00:22:15,400 --> 00:22:18,560
Speaker 4: you would in ETF, however, and ETF is going to

512
00:22:18,560 --> 00:22:21,639
Speaker 4: give you automatic diversification because there's a manager that's in

513
00:22:21,760 --> 00:22:24,320
Speaker 4: charge of making sure that if it's the top two

514
00:22:24,359 --> 00:22:26,800
Speaker 4: hundred stocks, it always has those top two hundred in it,

515
00:22:26,840 --> 00:22:28,800
Speaker 4: and they might come and they might go. But if

516
00:22:28,840 --> 00:22:31,240
Speaker 4: you just go and buy an Z and then that goes,

517
00:22:31,400 --> 00:22:34,160
Speaker 4: you know, down, for any reason, you're going to feel

518
00:22:34,160 --> 00:22:37,160
Speaker 4: the full breadth of that drop. So if you are

519
00:22:37,200 --> 00:22:40,679
Speaker 4: an individual share investor, your job is to not just

520
00:22:40,720 --> 00:22:43,600
Speaker 4: pick one A and Z share, but maybe pick a

521
00:22:43,640 --> 00:22:46,679
Speaker 4: basket of eight to ten or even twelve different shares

522
00:22:46,720 --> 00:22:49,840
Speaker 4: to diversify yourself. And to me, that's a really big

523
00:22:49,880 --> 00:22:52,720
Speaker 4: responsibility because how do you know what to buy and

524
00:22:52,760 --> 00:22:56,440
Speaker 4: what to sell and what's actually doing well without significant research.

525
00:22:56,680 --> 00:22:58,320
Speaker 4: It's not to say you shouldn't do it. I just

526
00:22:58,320 --> 00:23:01,480
Speaker 4: think it's a big responsibility. I love because it's literally

527
00:23:01,520 --> 00:23:03,639
Speaker 4: my career and my job, and I adore it and

528
00:23:03,680 --> 00:23:06,040
Speaker 4: I do it for myself. However, I think we need

529
00:23:06,080 --> 00:23:08,840
Speaker 4: to be really careful we're making that decision because the

530
00:23:08,880 --> 00:23:13,199
Speaker 4: diversification isn't automatic click, it isn't an ETF. However, I

531
00:23:13,200 --> 00:23:16,120
Speaker 4: think what she's saying is should we double up, Like, yeah,

532
00:23:16,160 --> 00:23:19,200
Speaker 4: I own A and Z inside my ETF? Should I

533
00:23:19,240 --> 00:23:21,640
Speaker 4: go on buy it direct? And to be honest, I've

534
00:23:21,640 --> 00:23:24,360
Speaker 4: got clients that do do that. They own an ETF

535
00:23:24,440 --> 00:23:26,080
Speaker 4: that you know. I'm using A and Z as an

536
00:23:26,119 --> 00:23:28,040
Speaker 4: example because I was doing some research on them this

537
00:23:28,119 --> 00:23:29,760
Speaker 4: morning and so they're stuck in my head. It has

538
00:23:29,760 --> 00:23:32,359
Speaker 4: nothing to do with the recommendation to Steph Wyer. Sorry

539
00:23:32,359 --> 00:23:36,080
Speaker 4: for that spoiler, but A and Z is in your ETF,

540
00:23:36,320 --> 00:23:38,920
Speaker 4: but it's the top two hundred shares, so it makes

541
00:23:39,040 --> 00:23:42,320
Speaker 4: up one two hundredth of your portfolio. So to me,

542
00:23:42,400 --> 00:23:44,600
Speaker 4: I go, oh, well, I wouldn't really mind about the

543
00:23:44,600 --> 00:23:48,400
Speaker 4: double up because you're not significantly invested in in.

544
00:23:48,240 --> 00:23:49,480
Speaker 2: Your ETF at all.

545
00:23:49,960 --> 00:23:51,320
Speaker 5: However, I would.

546
00:23:51,200 --> 00:23:54,560
Speaker 4: Really lean to, well, why are you then purchasing it

547
00:23:54,600 --> 00:23:57,840
Speaker 4: as an individual share instead of buying more of that ETF?

548
00:23:58,200 --> 00:23:59,359
Speaker 2: Like, what is your goal?

549
00:23:59,640 --> 00:24:02,920
Speaker 4: If you're goal is to diversify more, maybe you've gone

550
00:24:03,119 --> 00:24:06,600
Speaker 4: or I've bought this ETF and it is all Australian shares.

551
00:24:06,680 --> 00:24:08,360
Speaker 4: Let's go back to that example of the top two

552
00:24:08,440 --> 00:24:12,520
Speaker 4: hundred companies in Australia. When it comes to diversification, adding

553
00:24:12,560 --> 00:24:15,679
Speaker 4: an individual share isn't really going to diversify you, but

554
00:24:15,800 --> 00:24:19,520
Speaker 4: adding another ETF that actually holds global companies would. So

555
00:24:19,560 --> 00:24:21,800
Speaker 4: you go, well, what is your goal here? Is it

556
00:24:21,880 --> 00:24:24,080
Speaker 4: just because you love that share? In which case you

557
00:24:24,119 --> 00:24:26,080
Speaker 4: do you boot go buy some more of that If

558
00:24:26,080 --> 00:24:28,359
Speaker 4: that's what sets your soul on fire, I'm not going

559
00:24:28,440 --> 00:24:30,560
Speaker 4: to argue with you but we really need to go

560
00:24:30,680 --> 00:24:32,720
Speaker 4: back to the crux of well, what are your goals

561
00:24:33,080 --> 00:24:36,320
Speaker 4: and importantly, what is your risk profile? If you're a

562
00:24:36,359 --> 00:24:40,359
Speaker 4: conservative investor, maybe an investment that is an index ETF

563
00:24:40,359 --> 00:24:42,480
Speaker 4: that tracks the average of the top two hundred companies

564
00:24:42,480 --> 00:24:44,960
Speaker 4: in Australia is aokay, and you're like, yep, no problems.

565
00:24:45,320 --> 00:24:47,760
Speaker 4: Maybe direct investing is actually too risky and it's not

566
00:24:47,880 --> 00:24:49,080
Speaker 4: actually aligned to.

567
00:24:49,040 --> 00:24:50,040
Speaker 2: Your risk profile.

568
00:24:50,320 --> 00:24:51,680
Speaker 4: So the first thing I'd do is look at my

569
00:24:51,760 --> 00:24:55,919
Speaker 4: risk profile and understand where my assets could potentially be

570
00:24:56,160 --> 00:24:58,760
Speaker 4: in my investment portfolio. Then I'd look at my values

571
00:24:58,800 --> 00:25:01,159
Speaker 4: and what I actually want to create eight and why

572
00:25:01,280 --> 00:25:04,000
Speaker 4: I might want to hold something directly, not saying don't

573
00:25:04,000 --> 00:25:06,639
Speaker 4: do it, that's not the case, but it's really like

574
00:25:06,920 --> 00:25:10,040
Speaker 4: it's not really a question a financial advisor could even

575
00:25:10,240 --> 00:25:12,239
Speaker 4: answer as a personal question because it's kind of like, well,

576
00:25:12,320 --> 00:25:13,560
Speaker 4: just why do you want to do that is what

577
00:25:13,600 --> 00:25:15,080
Speaker 4: they're going to ask in the first place.

578
00:25:15,240 --> 00:25:18,399
Speaker 5: Yeah, interesting that there's no like negative tax implications for

579
00:25:18,440 --> 00:25:20,480
Speaker 5: investing in something twice and stuff like that, Like it's

580
00:25:20,520 --> 00:25:22,760
Speaker 5: not nothing wrong with doing it, No, like.

581
00:25:22,680 --> 00:25:26,239
Speaker 4: You're gonna have tax implications from making money. And as

582
00:25:26,240 --> 00:25:28,280
Speaker 4: I've said on the podcast before. If you're paying tax,

583
00:25:28,280 --> 00:25:31,000
Speaker 4: you're making money. That is a great outcome. We need

584
00:25:31,040 --> 00:25:34,800
Speaker 4: to be careful of turning over assets too quickly. So

585
00:25:34,920 --> 00:25:37,399
Speaker 4: if you buy some AM's edge shares today, they make

586
00:25:37,440 --> 00:25:39,800
Speaker 4: a massive profit and you sell them in a week,

587
00:25:40,000 --> 00:25:42,399
Speaker 4: you're going to have fifty percent more capital gains to

588
00:25:42,440 --> 00:25:44,800
Speaker 4: pay because you held them for less than twelve months.

589
00:25:45,000 --> 00:25:46,720
Speaker 2: So there are things to think about.

590
00:25:47,000 --> 00:25:49,280
Speaker 4: But like you're already going to be paying tax on

591
00:25:49,320 --> 00:25:52,879
Speaker 4: a profit anyway, it's not really a tax question for me.

592
00:25:52,920 --> 00:25:56,080
Speaker 4: It's a diversification question and whether that's aligned to your

593
00:25:56,119 --> 00:25:57,560
Speaker 4: goals and values and your.

594
00:25:57,440 --> 00:25:58,359
Speaker 2: Risk profile or not.

595
00:25:58,440 --> 00:25:59,679
Speaker 5: Well answer is that a right?

596
00:25:59,720 --> 00:26:01,439
Speaker 2: That's what you were going to say anyway, wasn't it

597
00:26:01,440 --> 00:26:02,800
Speaker 2: that words.

598
00:26:02,560 --> 00:26:03,200
Speaker 5: Out of my mouth?

599
00:26:03,240 --> 00:26:06,800
Speaker 2: Actually? So sorry, Sorry Friday guys.

600
00:26:06,480 --> 00:26:09,160
Speaker 5: Thank you for listening. Please remember that the advice sheared

601
00:26:09,160 --> 00:26:11,240
Speaker 5: on She's on the Money is general in nature and

602
00:26:11,280 --> 00:26:14,560
Speaker 5: does not consider your individual circumstances. She's on the Money

603
00:26:14,640 --> 00:26:17,760
Speaker 5: exists purely for educational purposes and should not be relied

604
00:26:17,800 --> 00:26:20,760
Speaker 5: upon to make an investment or a financial decision. And

605
00:26:20,840 --> 00:26:23,479
Speaker 5: we promise Victoria Divine and She's on the Money are

606
00:26:23,520 --> 00:26:28,040
Speaker 5: authorized representatives in focused Securities Australia Are Prietary Limited ABN

607
00:26:28,160 --> 00:26:30,639
Speaker 5: four seven zero nine seven seven nine seven zero four

608
00:26:30,760 --> 00:26:33,760
Speaker 5: nine AFSL two three six five two three See you

609
00:26:33,760 --> 00:26:34,639
Speaker 5: next week, guys.

610
00:26:34,800 --> 00:26:35,119
Speaker 1: Bye,