Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud your
Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
Speaker 1: we get started on She's on the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming through.
Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
Speaker 1: the storytelling of you to make a difference for today
Speaker 1: and lasting impact for tomorrow.
Speaker 2: 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 podcast
Speaker 4: for millennials who want financial freedom, My friends, Today is Friday,
Speaker 4: which means it is time to sit back with the
Speaker 4: girls with a bev in hand, to unpack our favorite
Speaker 4: moments of the week and of course, to celebrate our
Speaker 4: incredible She's on the Money community. As always, we'll be
Speaker 4: sharing our favorite money wins. We're going to discuss what's
Speaker 4: making news in the finance world, and today we are
Speaker 4: going to be answering a juicy money question, which this
Speaker 4: week is all about investment diversification.
Speaker 2: But first it is.
Speaker 4: Time to recap the week that was. Miss jesse Garci,
Speaker 4: could you talk us through what happened on our Monday
Speaker 4: Money Diary.
Speaker 5: Absolutely, Monday's diarist was ever so lovely. She watched her
Speaker 5: family go through bankruptcy when they were little and they
Speaker 5: lost pretty much everything, which, as we've spoken about on
Speaker 5: the podcast before, is definitely considered a form of financial
Speaker 5: trauma and something that really shapes your money story. And
Speaker 5: she spoke to us a little bit about what the
Speaker 5: impacts of that were on her as an adult, how
Speaker 5: it has kind of changed her perspective and you know
Speaker 5: what she's thinking about because now she's in the position
Speaker 5: her and her fiance are building their first home together,
Speaker 5: which is so exciting. And she spoke a little bit
Speaker 5: about the impacts of that mindset really had on her
Speaker 5: and the goals that she has and how it can
Speaker 5: sometimes be a little bit of a barrier, which I
Speaker 5: think is super relatable for a lot of people and
Speaker 5: a really good example of how even those things that
Speaker 5: we experience in childhood. She personally didn't go bankrupt, her
Speaker 5: parents did, but that it really impacted her a thousand percent.
Speaker 5: It really carried into her adulthood and she was just
Speaker 5: very self aware, and I thought that was super admirable
Speaker 5: and showed that she had been working really hard on
Speaker 5: her financial literacy and her self awareness.
Speaker 2: Agreed.
Speaker 4: I felt like it was a really powerful story as well,
Speaker 4: because trauma isn't only just for the person who quote
Speaker 4: experienced it. It can be really peripheral as well. Yeah,
Speaker 4: and sometimes we don't even notice that it's impacting us
Speaker 4: until we get a little bit older and you start
Speaker 4: making decisions and you're like, why am I so much
Speaker 4: like my mom? And you're like, oh, oh, okay, that
Speaker 4: makes a lot of sense. That's how they grew up,
Speaker 4: that's their values, that's their beliefs, And I think it's
Speaker 4: just really interesting.
Speaker 6: We're also discussing fun trauma in a couple of weeks
Speaker 6: time on The Deep Dive Ladies, so stay tuned for
Speaker 6: that one as well.
Speaker 2: I'm really excited.
Speaker 4: Fu us very fun, Georgia King, I hear your voice
Speaker 4: on their show Talk to Us What Happened on Wednesday?
Speaker 6: On Wednesday, I sat on the bench. I was not
Speaker 6: a part of Wednesday's show.
Speaker 2: The Gorgeous Kate I got you toed.
Speaker 6: Out, got you to Kate Brandsgrove joined us on the
Speaker 6: show to talk all about interest rates and what they
Speaker 6: mean from a home buying perspective and are interesting topic.
Speaker 2: But how did she get to kick you off your podcast? George? Well,
Speaker 2: she's a special woman and I a little it happened.
Speaker 6: I allowed it.
Speaker 2: Do they answer the degredation?
Speaker 4: Yeah? Good, good, no problems at all. I am glad
Speaker 4: well with that recap. To my friends, do you know
Speaker 4: what time it is? You guys know what time it is?
Speaker 4: Is time for our budget direct money Wins of the
Speaker 4: week Georgia King, what are you bringing to the table?
Speaker 2: Alrighty, let's hop into it.
Speaker 6: The first win of the week comes from Amy Money Win.
Speaker 6: My sister and I work at a golf club along
Speaker 6: the Peninsula and we both work out at the front
Speaker 6: reception desk and accommodation together. We had some guests stay
Speaker 6: with us for a couple of days and they loved
Speaker 6: us so much that we received a five hundred dollar
Speaker 6: tip between the two of us wo plus we also
Speaker 6: got fifty dollars on top of that each from another
Speaker 6: one of their friends. Both paid pretty averagely, so it
Speaker 6: really made our weeks.
Speaker 2: How good's that? Bucks? Money job. When it starts to
Speaker 2: go into three figures, you're like, that's a real money The.
Speaker 6: Next week it comes from Jessica money Whin. I got
Speaker 6: a secondhand couch on Marketplace in my rental and I
Speaker 6: had my sister's boyfriend and my cousin carry it up
Speaker 6: the stairs for me. So I saved on the couch
Speaker 6: and the removalists.
Speaker 2: I like that money and logistics win.
Speaker 6: Removalists are expensive ladies pay. I learned that yesterday.
Speaker 5: Oh really feel the moving process was very stressful. Moving
Speaker 5: on the next week, it comes from Brittany money Win.
Speaker 5: I got an almost brand new Mercedes kids driveable car
Speaker 5: from my estates by swap sell Facebook.
Speaker 2: Group for free money win.
Speaker 6: These usually go for about four hundred dollars. It was
Speaker 6: listed as not working and missing a charger.
Speaker 2: That's a right, I'll get a charger. I'm saving four Hungie.
Speaker 6: My amazing electrician husband fixed it for our daughter, who's
Speaker 6: four years old, and we had a spare twelve volt
Speaker 6: charger laying around.
Speaker 2: Oh yeah, of course, piece of cake.
Speaker 6: Turns out our daughter is absolutely terrified of the car
Speaker 6: and we'll be putting it in storage until our seven
Speaker 6: month old son is able to use it.
Speaker 2: Okay, so yes.
Speaker 4: One of my girlfriends gave her daughter like a mini
Speaker 4: range drover for her birthday. It was the boogiest thing
Speaker 4: I've seen in my life. We go to this first
Speaker 4: birthday and this little kid is being gifted this rain drover.
Speaker 4: I mean, it sounds real boogie, but it's obviously like
Speaker 4: actually a fun present.
Speaker 2: Her daughter was terrified of it as well. She's like,
Speaker 2: that was expensive and I thought she'd.
Speaker 4: Love it, And I was like, okay, so yeah, it'll
Speaker 4: probably come back at her second birthday because kids.
Speaker 2: Don't know, they don't know money win.
Speaker 7: Later though exactly next win is a loss actually, and
Speaker 7: it comes from is a loss, money loss. I traveled
Speaker 7: to Woomba for a work meeting and I paid six
Speaker 7: dollars seventy for a regular lactose free latte at the
Speaker 7: service station.
Speaker 2: By the service station, Oh you can pay that angle
Speaker 2: and I respec that's still good. But she said the
Speaker 2: coffee was good. Oh it was good. Servo, coffee is good?
Speaker 2: Is it can't say the same?
Speaker 6: Actually, is it true on a money related front? Because
Speaker 6: we are on shees on the money. That coffee's at
Speaker 6: seven eleven.
Speaker 2: Yeah, they're going up the first time.
Speaker 4: I actually laughed so hard and heard on the grape
Speaker 4: vine that they pushed that launch off because of the
Speaker 4: circus around my coffee.
Speaker 2: Yeah, coffee gate, so they pushed that off.
Speaker 4: But they are going up, which, to be honest, still
Speaker 4: a total coffee guys, that's still very good value. The
Speaker 4: thing that Jess is going to be real salty about though,
Speaker 4: Jess doesn't drink coffee, so I don't know if you
Speaker 4: read the pr or the media release from them. Can
Speaker 4: I have to break it to her now then live
Speaker 4: on the show, Jess. They're also doubling the price of
Speaker 4: slur piece.
Speaker 5: No, oh my god, I'm I was literally like two
Speaker 5: dollars for coffee still really chat, but two dollars for
Speaker 5: a slow absolutely not?
Speaker 2: Are you real salty? We like the guys at seven eleven.
Speaker 4: They're I mean, they're not actually our friends, but we
Speaker 4: think that they're our friends.
Speaker 6: The next win comes from Emma, guys, money win. I've
Speaker 6: just turned my first apartment into an investment property and
Speaker 6: a tenant is moving in on Friday.
Speaker 2: Money when that's exciting? So how exciting would that be?
Speaker 2: Oh my gosh?
Speaker 4: So many yeah, but just like so many of our
Speaker 4: community work their buds off to get into their first
Speaker 4: homes and like, that's obviously a massive milestone in itself. However,
Speaker 4: imagine buying house and then getting your first ten and
Speaker 4: you're like, this is now making money?
Speaker 6: Like that's sick killing it. Well done, Emma. Last win
Speaker 6: of the Week, Ladies comes from Callista. Since listening, Okay,
Speaker 6: it's quite self indulgent. Sorry, I chose it because it's
Speaker 6: pretty complimentary to us. Since listening to She's on the money.
Speaker 6: I've closed all of my buy now, pay later accounts,
Speaker 6: been contributing extra super and tax through work. I've sorted
Speaker 6: out automated transfer to savings accounts to stop me spending
Speaker 6: all of my money. I've been investing regularly in ETFs,
Speaker 6: and I just got a new job that pays me more.
Speaker 2: What, Queen, I'm just doing it all as queen behavior.
Speaker 6: I love being part of this community that teaches me
Speaker 6: so much and keeps me on track.
Speaker 4: We love having but also like we're just putting the
Speaker 4: information out there. Look at all that work she did.
Speaker 4: We didn't do that, Like we just talked absolute smack
Speaker 4: on this podcast and then take credit for.
Speaker 2: Stuff like that. It's great it is great, Georgia King.
Speaker 4: It has been obviously fantastic celebrating some of your budget
Speaker 4: Direct money wins Budget Director, winner of can Star's Insurer
Speaker 4: of the Year Award twenty twenty two.
Speaker 2: Budget Direct Insurance solved with.
Speaker 4: That, let's go to a really quick break and after
Speaker 4: the break, we're going to talk about diversification in your
Speaker 4: share portfolio. And we have a topic that we want
Speaker 4: to talk about. The jess is found in the media.
Speaker 4: Don't go anywhere.
Speaker 5: Alrighty guys, this week I wanted to talk about something
Speaker 5: it's not facked yet. Just let me be very clear
Speaker 5: because sometimes when we talk about these things, people get confused.
Speaker 5: A proposal that came out from the Greens and they've
Speaker 5: proposed four years. I know, this is really interesting. They've
Speaker 5: proposed a rent freeze that would last for two years
Speaker 5: to address the cost of the crisis, the rental crisis.
Speaker 5: Anyone who's renting, George, I mean, you literally just moved
Speaker 5: because your rent went up, right, yes?
Speaker 2: Or is that why you moved?
Speaker 4: You were like salty? Absolutely not yet amongst men.
Speaker 2: Okay, all right, all right, we'll take this off lineage.
Speaker 2: We'll take it to a wine but.
Speaker 5: Yeah, a lot of people are experiencing increasing rand, which
Speaker 5: obviously in many instances is a case of increasing interest rates,
Speaker 5: which then the landlord's passing along.
Speaker 2: Yeah.
Speaker 5: Yeah, it's a whole big, long thing. But it's just
Speaker 5: another add on to the already extremely long list of
Speaker 5: expensive costs that we have to pay just for being
Speaker 5: a wife, which kind of sucks. So the Greens have
Speaker 5: proposed a two year rent freeze, which would mean that
Speaker 5: Australia would be frozen from the weekly amount agreed upon
Speaker 5: or advertised at the beginning date of the proposed bill,
Speaker 5: which at this time is the first of August twenty
Speaker 5: twenty two, which would mean that for two years from
Speaker 5: the first of August twenty twenty two, which would obviously
Speaker 5: be backdated, that rent would be frozen where it is.
Speaker 5: So if right now you pay three hundred dollars a week,
Speaker 5: for the next two years, your rent would stay at
Speaker 5: three hundred dollars a week, which sounds really nice, particularly
Speaker 5: when everything's going up. According to some research that was
Speaker 5: actually done by SQM, weekly rent has risen by fourteen
Speaker 5: point one percent in Australia in the past yeah, which
Speaker 5: is that's a lot like and I know that we've
Speaker 5: been talking about how expensive everything feels. But like to
Speaker 5: hear fourteen point one percent. I mean, correct me if
Speaker 5: I'm wrong, but that seems like heaps for twelve months.
Speaker 5: And so that's kind of why they've proposed this. The
Speaker 5: Greens would need backing from other political parties to make
Speaker 5: this happen because obviously they are not the party in
Speaker 5: parliament currently. I don't know if that's the right word
Speaker 5: or the right phrase.
Speaker 2: But you know they're not going to pay out. They
Speaker 2: any mean, baby, they.
Speaker 5: Said we think this is a great idea. It remains
Speaker 5: to be seen if everybody else jumps on board. But
Speaker 5: I wanted to chat to the girlies and say, what
Speaker 5: do we think. It seems like a grade under your
Speaker 5: own face, Valley, But I always find with politics that
Speaker 5: there's usually a downside or a surer something like that.
Speaker 2: Which makes them look real good. Though.
Speaker 5: Well yeah, and I mean, they have the largest number
Speaker 5: of seats that they've ever had, which is really cool
Speaker 5: because I think for a lot of us, and please,
Speaker 5: I'm not getting I mean, I'm talking about it.
Speaker 4: We're totally getting political. You're talking about the Greens and
Speaker 4: that's okay.
Speaker 5: I'm not trying to sway people in any way.
Speaker 4: But no, we have respectful conversations about potential policies and
Speaker 4: how that might impact our community, Jessica, and you are
Speaker 4: well within your arts to have an opinion on that
Speaker 4: because whoever had done it, whether it was the Greens
Speaker 4: or Liberal or labor, Like, it's just a policy that
Speaker 4: we're discussing.
Speaker 2: This isn't a jess votes for the Greens.
Speaker 5: Yeah, But like, I think it's really cool because the Greens,
Speaker 5: I think, aligne with a lot of people within our
Speaker 5: age group. They seem to care about a lot of
Speaker 5: things that a lot of us do care about. And
Speaker 5: I just thought it was really interesting to kind of
Speaker 5: talk about the fact that this kind of left of
Speaker 5: side party is coming in and proposing changes that seem
Speaker 5: like they would really resonate for a lot of people.
Speaker 4: I feel like there are a few people in our
Speaker 4: community who am like, oh, yeah, that's great. Like, you know, George,
Speaker 4: if that existed for you, you wouldn't have been mucked
Speaker 4: over with such a large increase in rent And I
Speaker 4: feel like it's actually really like one of the draw
Speaker 4: at the end of the day of renting is reliability.
Speaker 4: It is knowing that each and every single month, you
Speaker 4: only have to pay that set amount of rent. And
Speaker 4: if your hot water system breaks, all like meat, your
Speaker 4: air conditioner system breaks, and it's going to cost you.
Speaker 4: It literally is going to cost me fifteen thousand dollars
Speaker 4: to put a new reverse cycle into our house. Like,
Speaker 4: that's not your problem. That ain't your circus said, it
Speaker 4: is not your monkeys.
Speaker 2: That is somebody else's house.
Speaker 4: Gee, you would just pick up the phone, call your
Speaker 4: agent and say, hey, the eircon doesn't work.
Speaker 2: Can you just organize someone to come and look at it?
Speaker 4: Like that is one of the complete benefits of renting,
Speaker 4: that it's consistent, right, But for them to increase rent,
Speaker 4: buy a massive amount, and if you're saying it's gone
Speaker 4: up fourteen percent, let's remember how those statistics are calculated,
Speaker 4: that would be an average across the board. I know
Speaker 4: people like you know my sister, she signed a new
Speaker 4: lease at the start of COVID, got a really sweet
Speaker 4: deal and a really sick house, and I'm like, wow,
Speaker 4: that's really nice.
Speaker 2: When I was all right, I couldn't afford that. Who knows.
Speaker 4: I haven't spoken to her about rent recently. I'm assuming
Speaker 4: that her owners might be going, oh, like, maybe we
Speaker 4: should put it back up to what it used to be.
Speaker 4: And I'm assuming George, that's maybe what happened to you
Speaker 4: where they've gone all right, Well, you know COVID's quote
Speaker 4: over we want actual rental yield for this, which from
Speaker 4: an investor perspective makes a lot of sense, right, Like,
Speaker 4: if you purchase an investment property with the intention of
Speaker 4: creating a rental yield to put you in a wealthy
Speaker 4: position when you are older, like, that's your progreative, you
Speaker 4: can charge whatever rent you want. But I think that
Speaker 4: puts people in a compromise position. So to say we're
Speaker 4: going to cap it at two percent annually, you're all right,
Speaker 4: Like that seems kind of reasonable. I'd be interested to
Speaker 4: know the semantics of that, Like, am I only allowed
Speaker 4: to increase Jessica Ricky's rent by two percent each year?
Speaker 4: Or if I tell her I'm not renewing her lease,
Speaker 4: can I then increase it by fifteen percent.
Speaker 2: To a new tenant.
Speaker 4: Will that increase turnover and therefore decrease availability of rentals?
Speaker 2: That's a really good point.
Speaker 5: I hadn't thought about the fact that if the rule
Speaker 5: became let's say you can't increase the rent on your
Speaker 5: tenant for two years while they're living. There is the workaround.
Speaker 5: But if you put a new tenant in you can
Speaker 5: change the productya is it?
Speaker 4: Like it hasn't making someone redundant and then you can't
Speaker 4: hire someone else for like three months after into the
Speaker 4: same role. Like, I don't know how that works. But
Speaker 4: I was looking online at this obviously in preparation for
Speaker 4: this episode, and there's a group called the Property Investment
Speaker 4: Professionals of Australia and they're saying that the Queensland Greens
Speaker 4: Party's implementation or proposed implementation of a two year rent
Speaker 4: freeze is likely to push investors out of the market
Speaker 4: because if I can only increase your rent by two percent,
Speaker 4: that's not a good yield if you compare it to
Speaker 4: the share market, right, But it will increase homelessness. And
Speaker 4: I think that that's an interesting take because if there
Speaker 4: are less investors investors equal rental properties available for people
Speaker 4: to rent, then obviously there's going to be less people
Speaker 4: able to get into properties, less availability, and I think
Speaker 4: that creates an even bigger housing crisis above and beyond affordability.
Speaker 4: So it's an interest conundrum I can see where the
Speaker 4: Greens are coming from when they say, oh, we would
Speaker 4: like to implement this, because obviously an emergency rent freeze
Speaker 4: is going to give time for wages to increase to CPI,
Speaker 4: because obviously inflation has been absolutely crazy recently, and with inflation,
Speaker 4: like just if your costs increased and you owned a
Speaker 4: rental property, you'd be like, oh, I can soak some
Speaker 4: of that up by increasing my rent, but your rent's
Speaker 4: income has an increased. So I can see why they
Speaker 4: would do it, but I also see the flip side
Speaker 4: of going, hmm, that's actually maybe not the best idea.
Speaker 1: Yeah.
Speaker 5: Well, the opposition was asked if they would support the
Speaker 5: red freeze, and shadow Mister for Housing and Homelessness Michael
Speaker 5: Sucker said no, and that I would argue is why
Speaker 5: as someone like I'll be the first to admit that
Speaker 5: I am definitely not as aware or as educated or
Speaker 5: as involved in politics as I guess I would like
Speaker 5: to be. And so it's really interesting when stuff like
Speaker 5: this comes out, because like I looked at that headline
Speaker 5: and I was like, oh my god, that sounds amazing,
Speaker 5: Like rent freeze. Everything's expensive, Like I'm worried that my
Speaker 5: rent's gonna go up, like when our at least renuely,
Speaker 5: you just never know, and everything else is already costing
Speaker 5: so much money, like it's a real stress. And I
Speaker 5: was like, oh, I got amazing, what a great policy,
Speaker 5: and my brain kind of stopped there. And that's why
Speaker 5: I wanted to talk about this, because I think that.
Speaker 2: Lots of people would be thinking the exact same thing
Speaker 2: you did.
Speaker 5: And it's kind of interesting, how yeah, Like on the surface,
Speaker 5: that is such a great choice, but the economic fallout
Speaker 5: or the butterfly effect, I guess that these choices have
Speaker 5: can go so much broader, And so by talking about it,
Speaker 5: I hope that maybe we showed another side of the coin.
Speaker 4: I've been reading online and there are a fair few
Speaker 4: different property commentators who have actually said, look, this snap
Speaker 4: rent freeze is doing nothing for long term housing supply issues.
Speaker 4: In fact, it's making it worse, because why would you
Speaker 4: potentially purchase an investment property that you're going to rent
Speaker 4: out if it's like not got good yield or ability
Speaker 4: to grow over time, because that's one of the draw
Speaker 4: cards for an investor, right, and that rent increases are
Speaker 4: actually below inflation. And then I took it one step
Speaker 4: further and looked at some research that was done by Picker,
Speaker 4: who is that property group that I mentioned before, and
Speaker 4: that showed that rents had grown at only half the
Speaker 4: rate of inflation over a decade nationally. So that's actually
Speaker 4: not that bad in the grand scheme of things, if
Speaker 4: you look at the big picture, and we always say
Speaker 4: on the pod like if in doubt, zoom out and
Speaker 4: look at the bigger picture, because right now post COVID,
Speaker 4: you're like, yep, that rend freeze will be you know,
Speaker 4: so good for so many people. But if we look
Speaker 4: at the bigger picture, it's actually quite detrimental.
Speaker 6: It will be interesting to see what happens as well, ladies,
Speaker 6: because we have seen over recent times that the volume
Speaker 6: of investors in the market has decreased because of COVID
Speaker 6: and because of lending restrictions and legislative changes.
Speaker 2: Yeah, there's so many different reasons.
Speaker 6: So if this does come into effect, it will be
Speaker 6: interesting to see if that decreases further.
Speaker 4: Yeah, and I know that lots of people, yes you included,
Speaker 4: well like this is sick.
Speaker 2: And then I put my finance hat on.
Speaker 4: I'm like, oh, I don't know about these This actually
Speaker 4: feels like it's probably detrimental. And you know, there are
Speaker 4: lots of people in our community that have varying and
Speaker 4: very diverse views on landlords and whether you should own
Speaker 4: property or not or what that looks like. But at
Speaker 4: the end of the day, there is a housing crisis,
Speaker 4: and one of the ways to actually, you know, help
Speaker 4: improve that is to have more properties available for rented
Speaker 4: reasonable prices. And I think there's probably a few things
Speaker 4: that you could do that isn't a rent freeze that
Speaker 4: puts us in a better position long term. So it'd
Speaker 4: be interesting. I don't have the answers. I just am
Speaker 4: a spectator to this with an opinion. I'd like to
Speaker 4: see what other people have to say.
Speaker 1: Oh.
Speaker 6: With all of that said, ladies, Money Dilemma time.
Speaker 2: Oh what a dream, Let's go, Hi Bear.
Speaker 6: Have you got a money dilemma you just can't solve?
Speaker 6: The She's on the Money team is here to help.
Speaker 6: Every week, we tackle your dilemmas, both big and small,
Speaker 6: to answer your most burning money, career and life questions.
Speaker 6: To get involved, simply head to our website and leave
Speaker 6: us a quick voice recording and you may just find
Speaker 6: yourself on the show. Now let's take a listen to
Speaker 6: today's Money Dilemma.
Speaker 8: Hi, lovely ladies, thanks so much for the great podcast.
Speaker 8: I'm really loving all of the investing related content, and
Speaker 8: I have an investment related question. I currently invest in
Speaker 8: a small number of index based ETFs, and I'm looking
Speaker 8: to branch out and acquire a handful of individual stocks.
Speaker 8: I've read that you shouldn't buy companies that are holdings
Speaker 8: within your ETFs so that you're not doubling up in
Speaker 8: your portfolio. But I was wondering, if you consider that
Speaker 8: the share price of a company represents great value, you
Speaker 8: like what the company does, and you want to acquire
Speaker 8: them as an individual stock, is it a mistake if
Speaker 8: they're a holding in one of your ETFs.
Speaker 6: Thanks ladies, Victoria Devine, Georgia Kie. I don't know how
Speaker 6: to answer this question, but you know what I can
Speaker 6: add to this conversation.
Speaker 2: Oh, I thought you were going to say, you know
Speaker 2: what I can do, handball it to you.
Speaker 6: I can do that, and I will do that. But
Speaker 6: I just loved this money dilemmasts question. I loved her energy.
Speaker 6: I loved her aura.
Speaker 2: You loved her aura.
Speaker 6: Yeah, that's all I can really add to this. I
Speaker 6: like to this conversation, but I'm really curious to hear
Speaker 6: what you have to say.
Speaker 2: VICKI d do you have any comments that you would
Speaker 2: like to make.
Speaker 5: Jess, I don't know the answer, but I suppose maybe
Speaker 5: to simplify it because there was not jargon, but for
Speaker 5: our newer investors or people who are not so confident. Essentially,
Speaker 5: what she's asking is, if she has an ETF, which
Speaker 5: as we know, it's a bundle or a basket of
Speaker 5: different shares, can you make me so proud? Thank you.
Speaker 5: I'm just I'm literally just repeating what you taught me.
Speaker 5: But if she has an ETF, let's say within that ETF,
Speaker 5: I have invested in Cheese on the Money.
Speaker 2: Great, a genius idea.
Speaker 4: I mean, it's not on the stock market, probably never
Speaker 4: going to be in the stock market, but I'd invest
Speaker 4: in that company.
Speaker 8: Yeah.
Speaker 5: But if my ETF that has all companies owned by women,
Speaker 5: For example, one of the shares that in there is
Speaker 5: Sheees on the Money, should I? And I'm like, I
Speaker 5: really like Es on the Money. I want to invest
Speaker 5: in them more. Should I then go directly and invest
Speaker 5: in Cheese on the Money shares outside of that ETF
Speaker 5: or not. She's asking is that redundant or is it okay?
Speaker 5: Because I love the company and its values and its ethics,
Speaker 5: et cetera.
Speaker 2: That's a very good way of phrasing it.
Speaker 4: To be honest, I think this is a bigger picture, right,
Speaker 4: So investing in an ETF is often done so. An
Speaker 4: ETF is an exchange trade of fund. As you said before, Jess,
Speaker 4: it's basically a basket of shares that is managed by
Speaker 4: a fund manager who's in charge of bringing shares in
Speaker 4: and putting shares out and you know, making all the
Speaker 4: big investment decisions. Most ETFs on the market are what's
Speaker 4: called an index, and that means it it just has
Speaker 4: a whole bundle of different shares in it. It might have
Speaker 4: the top two hundred shares in Australia in it, and
Speaker 4: it then takes the average returns and gives those to you.
Speaker 4: So it's not really looking for, you know, above and
Speaker 4: beyond benchmark performance. It just kind of is the average
Speaker 4: of the average. And most people view an ETF as
Speaker 4: a relatively safe bet. They look at it and go,
Speaker 4: you know what, I don't know heaps about the investment markets.
Speaker 4: I am not a financial advisor. But what I have
Speaker 4: done is founder basket that has the values and the
Speaker 4: goals and the ethics that I am happy to adhere to,
Speaker 4: and a pretty good manager that makes those decisions. What
Speaker 4: she's talking about is going to the next step. And
Speaker 4: if you guys want to know more about that, we
Speaker 4: did a really good bias but really good episode on
Speaker 4: the different ways to invest. We talked about micro investing
Speaker 4: and then share trading platforms and robo advice or what
Speaker 4: it means to get full service financial advice and how
Speaker 4: those different things work. But there's a lot more risk
Speaker 4: when you're picking the shares yourself because there's a lot
Speaker 4: more responsibility on you. It's not about like, oh, v
Speaker 4: I went and bought an A and Z share today
Speaker 4: and I go, oh congrats. You actually hold it in
Speaker 4: exactly the same way as you would in ETF, however,
Speaker 4: and ETF is going to give you automatic diversification because
Speaker 4: there's a manager that's in charge of making sure that
Speaker 4: if it's the top two hundred stocks, it always has
Speaker 4: those top two hundred in it, and they might come
Speaker 4: and they might go. But if you just go and
Speaker 4: buy an Z and then that goes, you know, down
Speaker 4: for any reason, you're going to feel the full breadth
Speaker 4: of that drop. So if you are an individual share investor,
Speaker 4: your job is to not just pick one A and
Speaker 4: Z share, but maybe pick a basket of eight to
Speaker 4: ten or even twelve different shares to diversify yourself. And
Speaker 4: to me, that's a really big responsibility because how do
Speaker 4: you know what to buy and what to sell and
Speaker 4: what's actually doing well without significant research. It's not to
Speaker 4: say you shouldn't do it. I just think it's a
Speaker 4: big responsibility. I love because it's literally my career and
Speaker 4: my job, and I adore it and I do it
Speaker 4: for myself. However, I think we need to be really
Speaker 4: careful we're making that decision because the diversification isn't automatic click,
Speaker 4: it isn't an ETF. However, I think what she's saying
Speaker 4: is should we double up, Like, yeah, I own A
Speaker 4: and Z inside my ETF? Should I go on buy
Speaker 4: it direct? And to be honest, I've got clients that
Speaker 4: do do that. They own an ETF that you know.
Speaker 4: I'm using A and Z as an example because I
Speaker 4: was doing some research on them this morning and so
Speaker 4: they're stuck in my head. It has nothing to do
Speaker 4: with the recommendation to Steph Wyer. Sorry for that spoiler,
Speaker 4: but A and Z is in your ETF, but it's
Speaker 4: the top two hundred shares, so it makes up one
Speaker 4: two hundredth of your portfolio. So to me, I go, oh, well,
Speaker 4: I wouldn't really mind about the double up because you're
Speaker 4: not significantly invested in in.
Speaker 2: Your ETF at all. However, I would.
Speaker 4: Really lean to, well, why are you then purchasing it
Speaker 4: as an individual share instead of buying more of that ETF?
Speaker 2: Like, what is your goal?
Speaker 4: If you're goal is to diversify more, maybe you've gone
Speaker 4: or I've bought this ETF and it is all Australian shares.
Speaker 4: Let's go back to that example of the top two
Speaker 4: hundred companies in Australia. When it comes to diversification, adding
Speaker 4: an individual share isn't really going to diversify you, but
Speaker 4: adding another ETF that actually holds global companies would. So
Speaker 4: you go, well, what is your goal here? Is it
Speaker 4: just because you love that share? In which case you
Speaker 4: do you boot go buy some more of that if
Speaker 4: that's what sets your soul on fire. I'm not going
Speaker 4: to argue with you, but we really need to go
Speaker 4: back to the crux of well, what are your goals
Speaker 4: and importantly, what is your risk profile. If you're a
Speaker 4: conservative investor, maybe an investment that is an index ETF
Speaker 4: that tracks the average of the top two hundred companies
Speaker 4: in Australia is AOKA and you're like, yep, no problems.
Speaker 4: Maybe direct investing is actually too risky and it's not
Speaker 4: actually aligned to.
Speaker 2: Your risk profile.
Speaker 4: So the first thing I'd do is look at my
Speaker 4: risk profile and understand where my assets could potentially be
Speaker 4: in my investment portfolio. Then I'd look at my values
Speaker 4: and what I actually want to create eight and why
Speaker 4: I might want to hold something directly, not saying don't
Speaker 4: do it, that's not the case, but it's really like
Speaker 4: it's not really a question a financial advisor could even
Speaker 4: answer as a personal question because it's kind of like, well,
Speaker 4: just why do you want to do that is what
Speaker 4: they're going to ask in the first place.
Speaker 6: Yeah, interesting that there's no like negative tax implications for
Speaker 6: investing in something twice and stuff like that, Like it's
Speaker 6: not nothing wrong with doing it, No, like.
Speaker 4: You're gonna have tax implications from making money. And as
Speaker 4: I've said on the podcast before, if you're paying tax,
Speaker 4: you're making money. That is a great outcome. We need
Speaker 4: to be careful of turning over assets too quickly. So
Speaker 4: if you buy some AM's edge shares today, they make
Speaker 4: a massive profit and you sell them in a week,
Speaker 4: you're going to have fifty percent more capital gains to
Speaker 4: pay because you held them for less than twelve months.
Speaker 2: So there are things to think about.
Speaker 4: But like you're already going to be paying tax on
Speaker 4: a profit anyway, it's not really a tax question for me.
Speaker 4: It's a diversification question and whether that's aligned to your
Speaker 4: goals and values and your risk.
Speaker 2: Profile or not.
Speaker 4: Well as it is that a right, that's what you
Speaker 4: were going to say anyway, wasn't it that words.
Speaker 6: Out of my mouth?
Speaker 4: Actually?
Speaker 2: So sorry, Sorry Friday guys.
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Speaker 2: See you next week, guys, ye