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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the

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Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it. She's on the Money.

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Speaker 3: She's on the Money.

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

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Speaker 4: millennials who want financial freedom.

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Speaker 1: Hello v Hello, are you ready to talk about investment?

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Speaker 3: Yeah, I'm very ready. I'm very um. Would you say interested?

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Speaker 1: Is your interest inflated? Its inflated?

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Speaker 3: Believe it or not.

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Speaker 1: People didn't come here for good jokes, Beck, No, which

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Speaker 1: is good because we don't have any that turns out Yeah, no, terrible.

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Speaker 1: We actually might get onto the finance content. Yes see,

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Speaker 1: if that works out better, let's try it.

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Speaker 3: Let's try it.

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Speaker 4: Yeah, we're talking about investing? Am I getting this right?

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Speaker 4: How to invest in a high inflation environment?

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Speaker 1: Strap yourself in? Today's Gonna Get Wild. We are back

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Speaker 1: with another investing episode. As you can tell, I'm trying

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Speaker 1: my hardest to come up with as many topics related

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Speaker 1: to investment as possible. Let me ask you a question.

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Speaker 1: Do you think it is possible to invest in a

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Speaker 1: high inflation environment? Beck?

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Speaker 4: Okay, So I'm going to have to break this one

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Speaker 4: down real quick because I did not know what high

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Speaker 4: inflation actually meant? But it is it true that high

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Speaker 4: inflation is the rising cost.

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Speaker 1: Of living in jer Yeah? Amazing, that's right, Okay, amazing. Yeah.

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Speaker 1: So I mean if you're not really affected by it,

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Speaker 1: if you're making enough money to not really see a

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Speaker 1: change or that much of a shift in your like

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Speaker 1: how much you have to spend or how much you

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Speaker 1: have left over at the end of the pay cycle.

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Speaker 4: Then I don't think that there would be a big problem.

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Speaker 1: Yeah. I'm getting on this topic. I hope early enough

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Speaker 1: so that you guys continue to invest during this period,

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Speaker 1: because I've seen some stuff online that says it's not

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Speaker 1: worth it, and I couldn't tell you harder, harder? Can

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Speaker 1: I tell? You harder. I don't know if that's the

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Speaker 1: right terminology, but you can. You can do it back, right, Okay,

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Speaker 1: stress highly enough that it is fine to invest during

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Speaker 1: a high inflation environment. So obviously there's a lot of

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Speaker 1: privilege in that because during the time of peak inflation,

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Speaker 1: other people are struggling. And if this episode for some

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Speaker 1: reason is triggering you into feeling like other people have

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Speaker 1: things that you currently don't, maybe it's not the episode

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Speaker 1: for you. Honestly, I think that mindset is going to

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Speaker 1: derail your confidence and make you feel worse off. And

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Speaker 1: I think that the best thing we can, I guess

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Speaker 1: see for our community is that quote that I use

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Speaker 1: all the time, arising hidlifts soulships. Even if you're not

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Speaker 1: in the best position of your life right now, that

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Speaker 1: doesn't mean that somebody else needs to downplay their circumstances.

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Speaker 1: You know, obviously we don't exactly want it rubbed in

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Speaker 1: our faces, but someone else should thrive because by some

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Speaker 1: other female or some other human being in our community thriving,

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Speaker 1: that opens up even more opportunity for you and I

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Speaker 1: to be successful, Beck, And I think that is so beautiful.

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Speaker 1: Yeahhaslutely so for anyone who has been listening to Chese

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Speaker 1: on the Money, I think you guys knew I was

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Speaker 1: gonna say it was always a good time to invest,

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Speaker 1: And today we're going to be giving you some tips

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Speaker 1: and tricks on how to invest in a high inflation environment.

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Speaker 1: We're going to start off with a little bit of

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Speaker 1: a recap of why inflation currently sits where it is.

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Speaker 1: We'll look at the sorts of investments that are a

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Speaker 1: little bit more sexy in this landscape, and we're going

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Speaker 1: to be doing a little bit of an investment mindset

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Speaker 1: check in too, So strap yourselves in.

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Speaker 4: Oh my god, I'm kind of excited. But also if

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Speaker 4: you do think that you are not in the place

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Speaker 4: to be listening to episode, just know that I'm on

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Speaker 4: this journey with you because I also have zero dollars

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Speaker 4: all the time, So.

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Speaker 1: We're getting better at it and getting better at it.

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Speaker 3: I am, I am, I am.

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Speaker 1: Can I get to sit down very soon and do

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Speaker 1: her budget in cashlow And I cannot wait.

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Speaker 3: I'm so excited.

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Speaker 1: We're going to bring them budget cashlow masterclass to life

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Speaker 1: like you're going to get it in real life.

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Speaker 3: I am.

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Speaker 1: She doesn't even know, I don't know what I guess

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Speaker 1: I'm explained. Do you want to talk about in place

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Speaker 1: I want to do? I want to you do? I do?

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Speaker 1: All right? So first things first, I want to start

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Speaker 1: off by saying that we are in a super stressful

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Speaker 1: economic situation right now, but where possible, I kind of

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Speaker 1: want you to try and zoom out and remember that

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Speaker 1: the economy is like an ecosystem, or even like the

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Speaker 1: seasons during a year. It is never stagnant and things

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Speaker 1: are always che What we're in right now is the

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Speaker 1: balancing out period of what was uncharacteristically low interest rates.

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Speaker 1: They were actually never going to be low forever. And

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Speaker 1: I feel like we heard that a lot. People would

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Speaker 1: say things like, oh, Beck, that money's never going to

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Speaker 1: be as cheap as it is today. Maybe I heard

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Speaker 1: that a lot more because I worked in money, but

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Speaker 1: people would always say, oh, money is cheap right now,

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Speaker 1: it's great time to invest or. Money's cheap right now.

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Speaker 1: It's a great time to buy property, because you know

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Speaker 1: that makes sense. But in the same way, this season

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Speaker 1: is also going to pass, and we are going to

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Speaker 1: find a new status and a new update and a

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Speaker 1: new I guess normal you could say, so it's compening

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Speaker 1: it's comforting to know, but it's also just one of

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Speaker 1: those things where I think, in every circumstance, and you know,

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Speaker 1: my business partner Kate in Zella Money, because we run

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Speaker 1: a mortgage broken company together. Kate and I talk about

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Speaker 1: this all the time, and it's just this idea that

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Speaker 1: there was this concept of money so cheap, and we

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Speaker 1: would talk to people who'd be like, oh, but it's

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Speaker 1: only two percent to borrow, you know, half of the

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Speaker 1: million dollars, Maybe I should just got up to seven

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Speaker 1: hundred thousand. And a good mortgage broker would have talked

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Speaker 1: to you about your personal circumstances and whether you can

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Speaker 1: go up to that or whether you shouldn't, or what

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Speaker 1: that looks like, and takes your entire picture into consideration,

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Speaker 1: Whereas I think a lot of people had a few

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Speaker 1: cheeky mortgage brokers who were like, oh, yeah, Beck, if

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Speaker 1: you want to take more, take more, money's cheap. Whereas

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Speaker 1: you're broker, if they are a good broker, or even

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Speaker 1: anyone dealing with you in a money situation, really shouldn't

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Speaker 1: be pushing you to take more when it's unnecessary, or

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Speaker 1: more when it maybe isn't the best financial decision because

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Speaker 1: anyone who works in the money space knew we and

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Speaker 1: equivocally knew that two percent wouldn't last. And I mean,

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Speaker 1: I'm in that position where I have a mortgage it

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Speaker 1: has now gone up. I think my mortgage interest rate

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Speaker 1: made me nearly be sick the other day. Grateful that

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Speaker 1: I'm in a position where we can still afford. That

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Speaker 1: things have shifted, that is fine, But we're like five

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Speaker 1: and a half percent now.

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Speaker 3: I don't know.

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Speaker 1: When we first got our mortgage back, it was at

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Speaker 1: two percent. Okay, side mortgage repayments have more than doubled.

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Speaker 1: Oh I see, I say that is absolutely not a complaint.

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Speaker 1: I'm not complaining about that at all. It's just that's

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Speaker 1: the way of the world, right, And I'm grateful to

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Speaker 1: have been in a position where when my husband Steve

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Speaker 1: and I took on that mortgage, we went, all right,

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Speaker 1: how much can we afford? And Kate, who obviously you know,

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Speaker 1: helped us out loss. Yeah, I'm going to abuse that

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Speaker 1: relationship to it till the day I died. But Kate said, oh,

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Speaker 1: you can borrow up to X. No, No, no, no,

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Speaker 1: I don't want X. How about I've done my budget

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Speaker 1: and cash flow. I think this is going to be

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Speaker 1: more obtainable because if things go awry, then I can

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Speaker 1: afford it. But then on the flip side, I'm just

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Speaker 1: gonna have more free cash flow, more free cash flow sexy.

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Speaker 1: I can go on holidays, i can still enjoy my life.

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Speaker 1: I can still do heaps of things that I want

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Speaker 1: to do. But I'm not in a situation where I

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Speaker 1: am kind of like a slave to my mortgage. Yes,

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Speaker 1: a lot of people got in the position where they're like,

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Speaker 1: oh my god, two percent. I could afford that two percent,

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Speaker 1: but hadn't conceptualized what if it doubles, What if it

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Speaker 1: goes up to four percent, what if it gets up

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Speaker 1: to nearly six percent? What if we actually are in

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Speaker 1: a situation where our mortgage interest of payments double, Can

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Speaker 1: we actually afford that or with that significantly compromise our lives?

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Speaker 1: And a lot of people are in that circumstance right now.

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Speaker 1: So it's important to zoom out when we're making any decision,

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Speaker 1: but especially when we're talking about investment, because when in doubt,

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Speaker 1: zoom out. That's a good phrase. But also, if you

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Speaker 1: look at the Australian share market over any thirty year

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Speaker 1: period of time. No one has ever lost if they

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Speaker 1: stayed invested right thirty years though it is a long time. Yeah,

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Speaker 1: I can find you heaps of examples of people that

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Speaker 1: put their money in four years later they're like, oh,

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Speaker 1: I've been investing for ages and have made no money

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Speaker 1: and took it out and made a loss. That would

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Speaker 1: absolutely happen. Stay in there, if you stay in the market,

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Speaker 1: that is what The most important thing is, getting exposure

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Speaker 1: to the peaks and troughs. They might feel really painful

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Speaker 1: when the market's off and you're like, I'm not getting

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Speaker 1: as much banged from my buck right now, And when

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Speaker 1: the market's really on, you're like, oh, making hay while

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Speaker 1: the sun is shining. It all averages out to be

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Speaker 1: a good return, okay, But if you're exiting the market

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Speaker 1: because that trough is really scaring you, that could actually

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Speaker 1: mean a lot of financial harm to you. So it's

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Speaker 1: actually all about and we'll talk about it later mindset,

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Speaker 1: but it's actually all about really conceptualizing and understanding these things.

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Speaker 1: And there's been a lot of conversation in our Facebook

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Speaker 1: group on Instagram in my dms of victoria or inflation

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Speaker 1: is so high, should I still be investing. I see

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Speaker 1: if it works for you, my friend. Yes, if it

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Speaker 1: works for you, if you can afford it, and everyone can.

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Speaker 1: I suppose if you have like a couple bucks, Yes, spare.

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Speaker 1: I could talk about this forever, Beck, but let's get

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Speaker 1: into the nuts and bolts of it. You asked me

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Speaker 1: about inflation.

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Speaker 3: Yes.

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Speaker 1: Inflation is the general rising prices in an economy over

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Speaker 1: a specified period of time. The RBA, or the Reserve

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Speaker 1: Bank of Australia, typically targets a low and stable rate

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Speaker 1: of inflation of between two and three percent each year,

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Speaker 1: which can signify a growing economy. So slow and steady

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Speaker 1: wins the race. According to the RBA, inflation, though it

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Speaker 1: can creep into the double digits and come as an

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Speaker 1: economic shock. Really, Australians annual interest rate, Beck, you're not

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Speaker 1: going to be surprised seven point eight percent, okay at

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Speaker 1: this point in time, right right right, And it's still

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Speaker 1: fluctuating and it's going up and down. So the RBA

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Speaker 1: is the bank to the other banks. Sure, so Combank, NAB,

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Speaker 1: the big four. They don't just automatically have money. The

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Speaker 1: RBA is like the big dog government.

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Speaker 3: Bank, Mama.

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Speaker 1: They set the rules. They're the big dogs. The RBA

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Speaker 1: says our interest rates two percent. But if one of

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Speaker 1: the big four banks then says, all right, well I'm

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Speaker 1: still going to be providing mortgages to our clients. Well,

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Speaker 1: then they're borrowing money from the RBA two percent and

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Speaker 1: they actually have to pass along that interest rate, and

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Speaker 1: that's what dictates our interest rates here in Australia. The

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Speaker 1: big banks, Yeah, they might have heaps and heaps and

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Speaker 1: heaps of money, but they actually do borrow from the RBA.

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Speaker 1: So if the RBA's cash rate, when that gets said,

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Speaker 1: I think sometimes people like, oh, that's a bit confusing.

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Speaker 1: That's the amount of money it costs our big banks

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Speaker 1: to borrow from the RBA.

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Speaker 3: Right.

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Speaker 1: So by the RBA increasing their cash rate and saying, look,

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Speaker 1: we're going to make borrowing money more expensive, do you

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Speaker 1: know what they're doing in that circumstance.

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Speaker 3: I don't.

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Speaker 1: You're like, nah, you've lost me already. So when the

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Speaker 1: RBA increases their rates, what that means is things are

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Speaker 1: going to be more expensive for people, like the trickle

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Speaker 1: down effect means that me, as a customer of one

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Speaker 1: of the banks, because I have a mortgage, my life's

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Speaker 1: going to get more expensive. My mortgage rates are going

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Speaker 1: to increase. I'm going to have less disposable income, which

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Speaker 1: means there's less disposable income going around in the economy,

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Speaker 1: which means inflation can't creep up as fast. So the

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Speaker 1: RBA are increasing their cash rates and saying, look, we're

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Speaker 1: going to borrow money out at a higher rate because

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Speaker 1: we don't want inflation to go wild. And after COVID,

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Speaker 1: I feel like COVID put a little bit of a

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Speaker 1: hold on inflation for a while there, and then everything

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Speaker 1: went back to let's call it business as usual or

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Speaker 1: our new normal or whatever everyone's calling it. Everyone was like, okay, cool,

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Speaker 1: we are going to have to start pushing some of

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Speaker 1: these you know, increases in price onto our consumers. And

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Speaker 1: everything went like this, like travel has gone wild. Travel

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Speaker 1: can't happen in my family as easily if I'm paying

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Speaker 1: more on my mortgage. They're trying to keep our economy

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Speaker 1: a little bit slower. We're trying to slow the growth

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Speaker 1: of our economy. Does that make sense that I have

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Speaker 1: or if you had less money to spend on things

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Speaker 1: that were important to you and you really had to prioritize,

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Speaker 1: maybe just the basics for a little while. Yep, the

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Speaker 1: rest of the economy and the businesses around that they

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Speaker 1: aren't growing as much because you're not funding them. Right,

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Speaker 1: So if those businesses aren't being funded, the economy growth

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Speaker 1: starts to slow. And if economy growth starts to slow,

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Speaker 1: it gets back to that two and three percent that

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Speaker 1: the RBA is trying to target to mean that we

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Speaker 1: have slow and steady growth instead of such rapid growth

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Speaker 1: that we can't afford things. Rental crisises happen, things that

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Speaker 1: were previously affordable and not affordable anymore, and it gets

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Speaker 1: out of control. So the RBA, as much as a

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Speaker 1: lot of people online are like a, a'd awful, They've

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Speaker 1: increased the cash rate again, it's the worst. That's them

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Speaker 1: trying to do their best. Okay, it's them trying to

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Speaker 1: do their best to make sure that our economy gets

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Speaker 1: back to a more stable environment.

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Speaker 4: Okay, that's good to know. I was going to ask

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Speaker 4: why does inflation matter? But I guess you did kind

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Speaker 4: of answer it in that it's inflation matters.

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Speaker 1: It's an invocator of a growing environment and a growing economy,

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Speaker 1: Like it can be a really sexy thing, right, Like

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Speaker 1: looking at She's on the money. The rate of inflation

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Speaker 1: in She's on the Money has been really beautiful four

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Speaker 1: years ago the podcast started and it's kind of gone

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Speaker 1: up and up and up from there. But what if

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Speaker 1: absolutely every business in the entire economy did that. Where's

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Speaker 1: the money coming from to fund that type of growth

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Speaker 1: in every single business in Australia? Ah okay, I see,

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Speaker 1: we just don't have the cash to support that. And

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Speaker 1: when you do, it comes from other places. And when

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Speaker 1: you have an environment where inflation keeps increasing, people kind

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Speaker 1: of get greedy in a way, right, I see, And

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Speaker 1: it's just it's not a nice environment to be in.

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Speaker 1: So inflation matters because essentially it takes your dollar and

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Speaker 1: makes it worthless. Let's talk about I recently gave someone

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Speaker 1: in our team pay rise, right, and the way that

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Speaker 1: I calculate pay rise is you know, I'm really proud

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Speaker 1: of it because the way that I calculate it, I

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Speaker 1: think is the way everyone should calculate it. And I said,

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Speaker 1: all right, what's the rate of inflation? Seven point eight percent? Great,

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Speaker 1: we'll start there. You get a seven point eight percent

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Speaker 1: increase in your pay this year.

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Speaker 3: That's very nice.

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Speaker 1: It's not nice from my perspective, that for me is

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Speaker 1: the bare minimum sure, because if inflation has increased by

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Speaker 1: seven point eight percent, my team member is having her

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Speaker 1: expenses increased by that. So today, if I had not

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Speaker 1: given her a pay rise, she wouldn't be able to

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Speaker 1: afford the same groceries that she was able to afford

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Speaker 1: last year. Is that fair?

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Speaker 3: Doesn't feel like it.

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Speaker 1: No, I don't think it's fair either. So above and

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Speaker 1: beyond that, we can then talk about what pay rice

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Speaker 1: she deserved. But I thought, as an employer, I needed

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Speaker 1: to go, Okay, well, if this individual can not afford

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Speaker 1: to buy the same groceries and put the same roof

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Speaker 1: over her head this year as she could last year, Like,

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Speaker 1: let's pretend bread went up. It absolutely has. But let's

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Speaker 1: pretend last year a loaf of bread was four dollars.

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Speaker 1: This year it might be six dollars. That's two dollars

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Speaker 1: less you have in your account for something else. Right,

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Speaker 1: life is just more expensive today than it was last year.

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Speaker 1: And that's essentially what inflation does. Inflation kind of erodes

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Speaker 1: your purchasing power over time, and as it kind of

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Speaker 1: takes hold, a dollar is going to buy fewer things

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Speaker 1: then you could purchase previously.

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Speaker 3: I see.

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Speaker 4: Okay, well, I have so many questions right now, and

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Speaker 4: I don't even know where to start. But if I'm

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Speaker 4: just curious, this is silly. But if the inflation rate

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Speaker 4: goes back down and the cost of living kind of

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Speaker 4: like steadies out again, we take that money back from

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Speaker 4: your employee?

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Speaker 1: Yeah, of course, no, I will not, absolutely not, because

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Speaker 1: it doesn't go backwards. That's scary. It might go backwards, right, okay,

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Speaker 1: But like if you look at a graph over time

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Speaker 1: and we started tracking it, it might go back down,

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Speaker 1: but that's not going back down as in hey beck,

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Speaker 1: stuff's actually just whole heap cheaper. Now the rate of

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Speaker 1: growth of things increasing has just slowed. So that loaf

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Speaker 1: of bread it's now six dollars. That's the base rate,

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Speaker 1: but it's not going to creep up to seven dollars

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Speaker 1: as quickly as it was the year before. Right, does

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Speaker 1: that make sense?

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Speaker 3: That doesn't make sense.

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Speaker 1: It's not that. Okay, Well, now it's back down to

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Speaker 1: two percent. No, no, no, that's seven point eight percent.

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Speaker 1: Was a line in the sand. Now we're moving along

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Speaker 1: and it's just going to take less time, and it's

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Speaker 1: just going to mean that growth happens a little bit

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Speaker 1: more slowly, so the RBA going back to them setting

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Speaker 1: the cash rate. They want between two and three percent

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Speaker 1: every year. Right now, things are growing way more than that.

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Speaker 1: They're trying to drag us back down so that growth

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Speaker 1: doesn't happen. I see so hearing this, Yes, I'm thinking

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Speaker 1: this is awful, terrible, very scary. But are there any God, Yeah,

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Speaker 1: I'm kind of like Okay. As I said before, inflation

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Speaker 1: is actually a good thing. There's a reason the RBA

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Speaker 1: actually has a target of inflation, not keeping things the same,

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Speaker 1: because that is a good predictor of a strong and

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Speaker 1: good and stable and reliable economy. We want to grow.

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Speaker 1: As we said before, slow and steady wins the race,

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Speaker 1: so we actually want it to be between two and

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Speaker 1: three percent. Sometimes it goes backwards, sometimes like right now,

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Speaker 1: it is higher. Low and stable inflation is a good indicator,

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Speaker 1: or can be a good indicator to be a little

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Speaker 1: bit more economically correct of a growing economy. It benefits

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Speaker 1: holders of fixed rate debts like mortgages. So a lot

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Speaker 1: of people have been messaging me recently, like about to

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Speaker 1: come off my fixed rate, and I don't know what

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Speaker 1: to do. Talk to mortgage broken, my friend asap. It

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Speaker 1: encourages consumption today rather than later, so we're not like

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Speaker 1: saving up for things as we were before. So like

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Speaker 1: the holidays and stuff, they kind of come to a

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Speaker 1: grinding holt because we can't afford them. But then there

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Speaker 1: are obviously a few cons As you said, it does

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Speaker 1: feel a little bit negative. Inflation reduces your purchasing power

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Speaker 1: since essentially every dollar that you have purchases less stuff,

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Speaker 1: higher prices throughout the economy ends up hurting retail consumers.

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Speaker 1: It's very tough on retirees that are living on fixed incomes.

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Speaker 1: If you've predicted that you're going to have X amount

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Speaker 1: every single year, obviously when things absolutely spike, that's unforeseen

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Speaker 1: and you just have a fixed income, and then it

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Speaker 1: does prompt action by the RBA. So the RBA is

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Speaker 1: the Reserve Bank of Australia that we've been talking about.

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Speaker 4: Yes, absolutely, So back to the idea of seasons, every

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Speaker 4: season has its possibility. Then what are the possibilities of

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Speaker 4: this high inflation environment.

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Speaker 1: Well, inflation is a great season I think to kind

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Speaker 1: of re examine your portfolio and what your strategy is doing.

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Speaker 1: I think any economic pressure is good for you as

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Speaker 1: an individual to kind of like re prompt how you

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Speaker 1: feel about things, because when we start our investment journeys,

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Speaker 1: often we're really gung ho and we're so excited about it.

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Speaker 1: And I get it because I am too. Like I

396
00:19:32,840 --> 00:19:35,080
Speaker 1: remember starting investing out, I'm like, I'm going to be rich.

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Speaker 1: I am setting myself up for a very secure financial future,

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Speaker 1: and I cannot wait. But then, like the economy starts

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Speaker 1: to take hold and you kind of see the effects

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Speaker 1: of had in your portfolio, and you feel a little

401
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Speaker 1: bit uncertain, or you feel a little bit unsure, and

402
00:19:48,960 --> 00:19:50,800
Speaker 1: things get rocky and you're not sure if you should

403
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Speaker 1: exit the market or stay, or do I put some

404
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Speaker 1: more in. But we really shouldn't be burying our heads

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Speaker 1: in the sand at this point. We need to re

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Speaker 1: examine our portfolio to make sure it's actually a lot

407
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Speaker 1: to our values and our goals and what we're trying

408
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Speaker 1: to achieve. One of the best strategies in a time

409
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Speaker 1: like this is actually to ensure that you're properly diversified

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Speaker 1: and fully invested. Money invested into shares tends to outpace

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Speaker 1: inflation in the long run, so you might be looking

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Speaker 1: at your portfolio today am the I don't know what

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Speaker 1: you're talking about. My portfolio has returned five percent and

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Speaker 1: you just said inflation is seven point eight percent. I

415
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Speaker 1: think I'm going backwards. But when we look at the

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Speaker 1: numbers and we actually look at the data, yes, for

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Speaker 1: a point in time, that might be absolutely true, and

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Speaker 1: I will not argue with you on that. But again,

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Speaker 1: when in doubt, zoom out and look at the bigger picture,

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Speaker 1: and usually it ends up or most of the time,

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Speaker 1: it ends up outperforming what inflation was because this rate

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Speaker 1: of inflation will not exist for as long as the

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Speaker 1: rate of growth in your investment portfolio. So we know

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Speaker 1: that over the last twenty years, the average rate of

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Speaker 1: return of the Australian share markets about eleven percent, right, Okay,

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Speaker 1: So obviously that's just the Australian shair market. There's lots

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Speaker 1: of different share markets and that's not a promise that

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Speaker 1: your portfolio will return that. It's just that's the fact

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Speaker 1: of the matter when it comes down to the data.

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Speaker 1: So yeah, I think it's very pretty So now's the

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Speaker 1: time to maybe have a think about some additional things

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Speaker 1: that you could add to your portfolio that might make

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Speaker 1: sense if you only have shares, and if you've got

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Speaker 1: some cash, maybe you would consider things like maybe some

435
00:21:23,760 --> 00:21:26,720
Speaker 1: investments in real estate. You can invest in real estate

436
00:21:26,920 --> 00:21:29,320
Speaker 1: via shares if you want to do that. You don't

437
00:21:29,359 --> 00:21:31,080
Speaker 1: have to go out and buy a family home or

438
00:21:31,119 --> 00:21:35,240
Speaker 1: an apartment to do that. Commodities or even Treasury indexed bonds,

439
00:21:35,320 --> 00:21:40,120
Speaker 1: they often serve as a further diversification support for your portfolio.

440
00:21:40,840 --> 00:21:45,480
Speaker 1: Cash on the sidelines is essentially guaranteed to lose money.

441
00:21:46,480 --> 00:21:49,000
Speaker 1: Not that sexy. So right now, if you've got ten

442
00:21:49,160 --> 00:21:52,680
Speaker 1: thousand dollars in a cash account just sitting there, absolutely

443
00:21:52,720 --> 00:21:56,200
Speaker 1: no interest rate on their bank account, it's working at

444
00:21:56,320 --> 00:22:00,119
Speaker 1: negative seven point eight percent, like having a desk. It's

445
00:22:00,240 --> 00:22:03,080
Speaker 1: costing you seven point eight percent per anm right now

446
00:22:03,280 --> 00:22:06,920
Speaker 1: to not have that money working for you. But people

447
00:22:06,920 --> 00:22:10,119
Speaker 1: don't see it that way, no, Because right now I

448
00:22:10,160 --> 00:22:13,320
Speaker 1: can see ten thousand dollars in that account, and let's

449
00:22:13,320 --> 00:22:15,919
Speaker 1: pretend I have absolutely no fees on that account, and

450
00:22:15,960 --> 00:22:18,280
Speaker 1: I just let it sit dormant for the next twelve months.

451
00:22:18,359 --> 00:22:21,280
Speaker 1: I'll go back in twelve months that account will have

452
00:22:21,480 --> 00:22:23,879
Speaker 1: ten thousand dollars exactly in that account. It's not going

453
00:22:23,960 --> 00:22:26,280
Speaker 1: to have seven point eight percent less but that ten

454
00:22:26,320 --> 00:22:29,080
Speaker 1: thousand dollars will buy you seven point eight percent less

455
00:22:29,080 --> 00:22:31,679
Speaker 1: of stuff than it was able to today when you

456
00:22:31,800 --> 00:22:34,160
Speaker 1: had the opportunity to invest it and you didn't.

457
00:22:34,400 --> 00:22:35,280
Speaker 3: That is a.

458
00:22:35,400 --> 00:22:38,320
Speaker 1: Really, really good I'm realated, dramatic. Thanks for coming.

459
00:22:38,320 --> 00:22:40,280
Speaker 4: Oh I love this because I was going to say

460
00:22:40,680 --> 00:22:44,159
Speaker 4: I should not be doing this, but I started putting

461
00:22:44,160 --> 00:22:46,520
Speaker 4: money in a piggybank thinking that that was a.

462
00:22:46,440 --> 00:22:49,440
Speaker 3: Good It's a good start. I'm going to not do that.

463
00:22:49,840 --> 00:22:54,120
Speaker 1: No, but looking at your financial circumstances, that works. Does

464
00:22:54,160 --> 00:22:57,719
Speaker 1: it mean that I'm not sitting on some cash. Absolutely not.

465
00:22:57,800 --> 00:23:00,520
Speaker 1: I absolutely have a savings account. You're not going to

466
00:23:00,520 --> 00:23:02,359
Speaker 1: touch that. I'm not going to invest that. I have

467
00:23:02,400 --> 00:23:05,480
Speaker 1: an emergency fund. I will not be investing that because

468
00:23:05,480 --> 00:23:08,159
Speaker 1: the entire purpose of an emergency fund is to have

469
00:23:08,359 --> 00:23:12,240
Speaker 1: access to quick cash and capital, and that's that money's job.

470
00:23:12,520 --> 00:23:14,800
Speaker 1: I don't want you to take from this that every

471
00:23:14,800 --> 00:23:17,439
Speaker 1: single dollar you have needs to be invested and you

472
00:23:17,520 --> 00:23:19,600
Speaker 1: need to be getting a return otherwise it's not worth it.

473
00:23:19,640 --> 00:23:22,320
Speaker 1: That's not what we're saying. But I think we need

474
00:23:22,359 --> 00:23:25,080
Speaker 1: to drive home this. If you've been thinking about investing,

475
00:23:25,160 --> 00:23:27,480
Speaker 1: then yeah, like it's a good time to have a chat.

476
00:23:27,880 --> 00:23:31,359
Speaker 1: But if you have an emergency fund that's doing its job,

477
00:23:31,760 --> 00:23:33,960
Speaker 1: it's not meant to be there. Yeah, And I know

478
00:23:34,040 --> 00:23:36,479
Speaker 1: you're in the circumstance because we talked about it openly

479
00:23:36,480 --> 00:23:38,439
Speaker 1: before where you're like, I just need to start saving.

480
00:23:38,720 --> 00:23:40,200
Speaker 1: That's a bloody great start.

481
00:23:40,600 --> 00:23:41,240
Speaker 3: Cool, Okay.

482
00:23:41,440 --> 00:23:44,720
Speaker 1: I don't want you to think that me having this

483
00:23:44,800 --> 00:23:47,560
Speaker 1: conversation about it now is a good time to invest. Like, yes,

484
00:23:47,680 --> 00:23:51,399
Speaker 1: if you're in the financial position to invest, it's gonna

485
00:23:51,480 --> 00:23:54,199
Speaker 1: cost you a lot more long term if you invest

486
00:23:54,240 --> 00:23:57,480
Speaker 1: at a time that you can't afford, because what happens

487
00:23:57,480 --> 00:23:59,840
Speaker 1: twelve months from now you have to pull that money

488
00:23:59,840 --> 00:24:02,640
Speaker 1: out to afford something else, and you lose money because

489
00:24:02,680 --> 00:24:05,359
Speaker 1: the sheer market might not have recovered yet. That's a

490
00:24:05,400 --> 00:24:08,440
Speaker 1: really bad outcome, right, So I think it's really important

491
00:24:08,480 --> 00:24:10,520
Speaker 1: to make sure that you're making decisions that are based

492
00:24:10,560 --> 00:24:13,520
Speaker 1: on you, not the way that that example came across.

493
00:24:13,520 --> 00:24:15,600
Speaker 1: So that example, I still stand by it. It's a

494
00:24:15,600 --> 00:24:18,960
Speaker 1: great example because the purchasing power of ten thousand dollars

495
00:24:18,960 --> 00:24:21,639
Speaker 1: today is going to be less if you don't do

496
00:24:21,720 --> 00:24:24,480
Speaker 1: anything with it in twelve months. And if that motivated

497
00:24:24,520 --> 00:24:28,360
Speaker 1: you to go and invest, that's sexy. Yes, But if

498
00:24:28,400 --> 00:24:30,520
Speaker 1: you were like, yeah, but the that ten thousand dollars

499
00:24:30,640 --> 00:24:33,320
Speaker 1: is my emergency fund, I'll go get it quin leave

500
00:24:33,359 --> 00:24:36,399
Speaker 1: it there. That makes absolute sense. But what we want

501
00:24:36,440 --> 00:24:40,080
Speaker 1: is the education to know that every dollar in your

502
00:24:40,119 --> 00:24:43,520
Speaker 1: account has been thought about and has been allocated a job.

503
00:24:43,840 --> 00:24:46,200
Speaker 1: If that money's job is to make you money, then

504
00:24:46,320 --> 00:24:48,600
Speaker 1: go get it. But if that money's job is to

505
00:24:48,760 --> 00:24:51,639
Speaker 1: keep you feeling safe, leave it there. Yeah, does that

506
00:24:51,680 --> 00:24:52,040
Speaker 1: make sense?

507
00:24:52,080 --> 00:24:52,920
Speaker 3: That makes so much sense.

508
00:24:52,960 --> 00:24:53,359
Speaker 1: I love that.

509
00:24:53,440 --> 00:24:55,360
Speaker 4: Okay, thank you so much for that. I think it's

510
00:24:55,359 --> 00:24:57,600
Speaker 4: a really good place to leave it for Now. Let's

511
00:24:57,600 --> 00:25:01,160
Speaker 4: stick have a little break and come back and talk.

512
00:25:01,000 --> 00:25:01,560
Speaker 1: More about it.

513
00:25:06,160 --> 00:25:08,600
Speaker 3: Okay, we're back, and welcome back to you.

514
00:25:08,840 --> 00:25:10,880
Speaker 1: I always get so fired up on these episodes.

515
00:25:10,920 --> 00:25:15,080
Speaker 4: I'm like, let's talk about investments, and then I know

516
00:25:15,160 --> 00:25:16,919
Speaker 4: it's time for you to have a little tea, a

517
00:25:16,920 --> 00:25:17,520
Speaker 4: little breather.

518
00:25:17,920 --> 00:25:20,600
Speaker 1: We all know that was a fake break. Again. Back,

519
00:25:21,720 --> 00:25:24,240
Speaker 1: I've got to pay you. No one on this team

520
00:25:24,320 --> 00:25:25,159
Speaker 1: doesn't get paid.

521
00:25:25,680 --> 00:25:27,680
Speaker 3: That's true, that's true. It was a fake break. Okay,

522
00:25:27,720 --> 00:25:28,480
Speaker 3: it was a fake break.

523
00:25:28,480 --> 00:25:30,240
Speaker 1: It was a fake break to get to talk about

524
00:25:30,320 --> 00:25:32,919
Speaker 1: Chairsya's and like I do feel like Chazy's are a

525
00:25:32,960 --> 00:25:36,080
Speaker 1: part of our team, like ten out of ten, very

526
00:25:36,080 --> 00:25:38,600
Speaker 1: good team, very good people. Do you know what they

527
00:25:38,640 --> 00:25:41,040
Speaker 1: love my dog? Oh yeah, well.

528
00:25:40,960 --> 00:25:43,240
Speaker 3: There's a place at our table for them.

529
00:25:43,520 --> 00:25:44,200
Speaker 1: Exactly.

530
00:25:44,640 --> 00:25:45,800
Speaker 3: Let's get back.

531
00:25:45,600 --> 00:25:50,560
Speaker 4: To the investment chat. Exciting, exciting, fun investment chat.

532
00:25:50,560 --> 00:25:56,080
Speaker 1: All right, let's make this conversation a little bit more confusing. Okay,

533
00:25:56,760 --> 00:26:00,440
Speaker 1: have you heard of like hedging an investment hedging? Yes? Yeah,

534
00:26:00,600 --> 00:26:03,320
Speaker 1: like hear it on like the show's like suits. Yes,

535
00:26:03,440 --> 00:26:03,920
Speaker 1: where you.

536
00:26:03,840 --> 00:26:09,160
Speaker 4: Like plot your session in several different areas and some

537
00:26:09,280 --> 00:26:12,639
Speaker 4: that are competing, like say, for example, I can't actually

538
00:26:12,680 --> 00:26:13,760
Speaker 4: I'm really doing probably.

539
00:26:13,480 --> 00:26:13,920
Speaker 3: A bad job.

540
00:26:14,080 --> 00:26:16,600
Speaker 1: No studies study? Is that?

541
00:26:17,080 --> 00:26:18,160
Speaker 3: Just forget everything I see?

542
00:26:18,320 --> 00:26:20,199
Speaker 1: No, I really liked where you were going with that.

543
00:26:20,680 --> 00:26:25,000
Speaker 1: Let's maybe talk about inflation hedges in the case. So,

544
00:26:25,240 --> 00:26:28,359
Speaker 1: a hedge in finance means to take an offsetting position.

545
00:26:28,400 --> 00:26:30,720
Speaker 1: Who are absolutely correct? You kind of like you know

546
00:26:31,119 --> 00:26:33,239
Speaker 1: hedge a bet? You might go, oh, well, what if

547
00:26:33,280 --> 00:26:37,240
Speaker 1: it doesn't work out? So in real estate, single family

548
00:26:37,320 --> 00:26:40,919
Speaker 1: homes financed with low fixed rate mortgages tend to perform

549
00:26:40,960 --> 00:26:43,600
Speaker 1: well during periods of inflation. Do you know why we

550
00:26:43,680 --> 00:26:46,679
Speaker 1: know that because TikTok's going wild about how much they

551
00:26:46,720 --> 00:26:49,600
Speaker 1: are costing to lease out at the moment. A right like,

552
00:26:49,640 --> 00:26:52,520
Speaker 1: I always talk about TikTok because I basically live on TikTok.

553
00:26:52,840 --> 00:26:55,640
Speaker 1: Am I creating enough content on there? Hell? No, am

554
00:26:55,680 --> 00:26:59,640
Speaker 1: I just consuming the content mindlessly scrolling my life away.

555
00:27:00,000 --> 00:27:03,920
Speaker 1: Hell yes, that's what I'm doing. As inflation climbs, your

556
00:27:03,960 --> 00:27:07,160
Speaker 1: property is likely to appreciate in value while the monthly

557
00:27:07,240 --> 00:27:09,800
Speaker 1: service cost of your mortgage either stays the same or

558
00:27:09,840 --> 00:27:13,520
Speaker 1: slightly increases. This is at the core of home equity,

559
00:27:13,600 --> 00:27:17,240
Speaker 1: which can rapidly increase your net worth very very sexy.

560
00:27:17,560 --> 00:27:20,560
Speaker 1: By purchasing real estate, you'll also they call it insulating.

561
00:27:20,560 --> 00:27:23,560
Speaker 1: You're also insulating yourself from rising rents, as they are

562
00:27:23,600 --> 00:27:26,800
Speaker 1: likely to rise during inflation surges. We do need to

563
00:27:26,800 --> 00:27:30,879
Speaker 1: take into consideration. They're obviously the rising costs of mortgage repayments,

564
00:27:30,960 --> 00:27:33,600
Speaker 1: because as I said before, might have more than doubled.

565
00:27:33,840 --> 00:27:36,679
Speaker 1: And that makes me feel quite sick because I know

566
00:27:37,000 --> 00:27:40,439
Speaker 1: that it's not just me that's happening too. Again, super

567
00:27:40,480 --> 00:27:42,879
Speaker 1: grateful to be in a position where that is not

568
00:27:43,080 --> 00:27:46,000
Speaker 1: putting significant stress on our lives. We just had to

569
00:27:46,400 --> 00:27:49,840
Speaker 1: reshuffle a few things maybe push a few goals off

570
00:27:49,920 --> 00:27:52,080
Speaker 1: a little bit, and I feel grateful that we're in

571
00:27:52,119 --> 00:27:55,800
Speaker 1: that position. But for some people, mortgages right now are

572
00:27:55,840 --> 00:27:59,480
Speaker 1: absolutely destroying them. Let's just be honest about that. The

573
00:27:59,640 --> 00:28:01,800
Speaker 1: second thing we want to talk about is what's called

574
00:28:01,800 --> 00:28:04,320
Speaker 1: a value share or a value stock if you're a

575
00:28:04,320 --> 00:28:07,840
Speaker 1: little bit more American. Some research has shown that value

576
00:28:07,840 --> 00:28:11,080
Speaker 1: shares tend to do better than growth stocks during periods

577
00:28:11,080 --> 00:28:14,679
Speaker 1: of inflation, which I think is interesting because we have

578
00:28:14,800 --> 00:28:17,280
Speaker 1: done a whole series on what a value share is,

579
00:28:17,440 --> 00:28:19,960
Speaker 1: what a growth share is, how all of these things work.

580
00:28:20,040 --> 00:28:21,840
Speaker 1: So if you haven't listened to that, please go back

581
00:28:21,880 --> 00:28:23,240
Speaker 1: and have a listen, because I feel like there was

582
00:28:23,280 --> 00:28:26,280
Speaker 1: so much information in that that people said was really

583
00:28:26,320 --> 00:28:29,520
Speaker 1: powerful and really helpful. But value shares are companies that

584
00:28:29,640 --> 00:28:33,360
Speaker 1: have strong earnings relative to their current share price. They're

585
00:28:33,400 --> 00:28:36,200
Speaker 1: also known to have like really good cash flows, which

586
00:28:36,240 --> 00:28:40,240
Speaker 1: investors typically value when prices are rising. When prices a

587
00:28:40,360 --> 00:28:42,440
Speaker 1: rising and things are getting more expensive, you know what's

588
00:28:42,480 --> 00:28:45,800
Speaker 1: really sexy knowing that the company you're investing in has

589
00:28:45,840 --> 00:28:48,400
Speaker 1: lots of money coming in the door. That makes me

590
00:28:48,400 --> 00:28:51,040
Speaker 1: feel really good. Probably not if you're poor. To Davis

591
00:28:51,080 --> 00:28:54,000
Speaker 1: Holmes like, that's not going to work out. I heard

592
00:28:54,000 --> 00:28:55,680
Speaker 1: about that. Yeah, not great. But do you know what

593
00:28:55,720 --> 00:28:58,240
Speaker 1: it is great about that? And I said to you guys,

594
00:28:58,280 --> 00:29:01,840
Speaker 1: this would happen is that all of those Porter Davis

595
00:29:01,840 --> 00:29:04,680
Speaker 1: contracts have been bought or transferred over to another company

596
00:29:04,680 --> 00:29:06,560
Speaker 1: to finish. So people aren't going to be left in

597
00:29:06,600 --> 00:29:10,000
Speaker 1: the loach. What is I treat hold on, hold on,

598
00:29:10,040 --> 00:29:12,080
Speaker 1: It's going to be okay. Someone is going to want

599
00:29:12,080 --> 00:29:14,800
Speaker 1: those contracts to finish your houses. It is okay. But

600
00:29:15,480 --> 00:29:18,280
Speaker 1: a company like Porter Davis as a good example of that,

601
00:29:18,320 --> 00:29:20,080
Speaker 1: because I feel like it's been all over the media

602
00:29:20,120 --> 00:29:22,600
Speaker 1: and we've all heard about it had terrible cash flow

603
00:29:22,640 --> 00:29:26,240
Speaker 1: and could not keep up with the rising cost of prices.

604
00:29:26,600 --> 00:29:31,120
Speaker 1: And that's not a reflection on them having terrible work

605
00:29:31,240 --> 00:29:33,800
Speaker 1: or being a bad company or any of those things.

606
00:29:34,080 --> 00:29:35,920
Speaker 1: But if you don't have money coming in the door,

607
00:29:36,280 --> 00:29:39,280
Speaker 1: you can't pay your contractors, you can't pay your stuff.

608
00:29:39,320 --> 00:29:42,760
Speaker 1: The business has to end. Like that's just a matter

609
00:29:42,800 --> 00:29:45,680
Speaker 1: of fact. I suppose, on the other hand, something like

610
00:29:45,720 --> 00:29:47,600
Speaker 1: a growth share it tends to be a little bit

611
00:29:47,640 --> 00:29:51,160
Speaker 1: more sensitive to change in interest Over the past decade,

612
00:29:51,200 --> 00:29:56,200
Speaker 1: when inflation has been conspicuously absent. Growth stocks have enjoyed

613
00:29:56,200 --> 00:29:59,840
Speaker 1: a pretty good period, but lately value shares have been

614
00:30:00,160 --> 00:30:03,960
Speaker 1: I guess staged for a comeback. The current environment makes

615
00:30:04,000 --> 00:30:08,520
Speaker 1: their continuing success likely, though, So would you say what

616
00:30:08,760 --> 00:30:11,160
Speaker 1: is better? I mean, I think that's a question that

617
00:30:11,360 --> 00:30:14,000
Speaker 1: might pop up. B Is a value share better than

618
00:30:14,000 --> 00:30:16,880
Speaker 1: a growth share? The answer is no, nothing's better. Like

619
00:30:17,160 --> 00:30:21,240
Speaker 1: different things perform well in different economies and different periods

620
00:30:21,280 --> 00:30:25,640
Speaker 1: of economic change, it does not mean one should be

621
00:30:25,640 --> 00:30:28,760
Speaker 1: preferenced over the other. That's why we promote having a

622
00:30:28,800 --> 00:30:32,640
Speaker 1: really well diversified portfolio. It's why we talk about, you know,

623
00:30:32,720 --> 00:30:35,200
Speaker 1: having some here, having some there, making sure that you

624
00:30:35,280 --> 00:30:37,640
Speaker 1: don't have all your eggs in one basket. Because if

625
00:30:37,680 --> 00:30:40,080
Speaker 1: you've got some growth stocks that are good companies, maybe

626
00:30:40,080 --> 00:30:43,120
Speaker 1: they're not performing as well as they could during this period.

627
00:30:43,440 --> 00:30:46,760
Speaker 1: They're just chugging along doing their best. Your value stocks, though,

628
00:30:47,040 --> 00:30:49,720
Speaker 1: they're the ones like pulling away. They're the ones putting

629
00:30:49,760 --> 00:30:52,120
Speaker 1: in the hard yards during this period of time, so

630
00:30:52,160 --> 00:30:55,040
Speaker 1: that you know, if the value stocks or the value

631
00:30:55,080 --> 00:30:57,360
Speaker 1: shares are doing really well up here and there, your

632
00:30:57,400 --> 00:30:59,680
Speaker 1: growth shares they just trying their best. They're just trying

633
00:30:59,680 --> 00:31:03,080
Speaker 1: to get in this economy. Over time, the average of

634
00:31:03,120 --> 00:31:07,040
Speaker 1: your overall return is going to be a good average.

635
00:31:07,120 --> 00:31:09,000
Speaker 1: You're not going to get the highs of the highs,

636
00:31:09,040 --> 00:31:10,480
Speaker 1: You're not going to get the lows of the lows.

637
00:31:10,640 --> 00:31:13,400
Speaker 1: Everything will kind of balance out, and that is what

638
00:31:13,440 --> 00:31:16,160
Speaker 1: we want from investment. We just want to be safe.

639
00:31:16,680 --> 00:31:18,920
Speaker 1: I don't want to just have one thing that does

640
00:31:18,960 --> 00:31:22,000
Speaker 1: really well in only one economy. So like playing board games,

641
00:31:22,040 --> 00:31:24,080
Speaker 1: you just want a little bit of everything. In your

642
00:31:24,080 --> 00:31:25,560
Speaker 1: next role, you don't know what you're going to get,

643
00:31:25,720 --> 00:31:27,520
Speaker 1: but you're probably going to have a good.

644
00:31:27,320 --> 00:31:30,800
Speaker 4: Shot exactly, Exactly, like Monopoly, you've got to buy the

645
00:31:30,920 --> 00:31:34,360
Speaker 4: light blues and the dark blues exactly.

646
00:31:34,440 --> 00:31:37,120
Speaker 1: I've recently got into a board game called this is

647
00:31:37,160 --> 00:31:40,120
Speaker 1: just showing how nerdy I am. It shows how nerdy

648
00:31:40,160 --> 00:31:43,000
Speaker 1: I am. Like, take us to the next level. Okay,

649
00:31:43,160 --> 00:31:46,440
Speaker 1: I've paid for and download an app on my phone

650
00:31:46,480 --> 00:31:48,560
Speaker 1: so that I can play the board game all my

651
00:31:48,600 --> 00:31:49,760
Speaker 1: floes katan.

652
00:31:49,640 --> 00:31:55,600
Speaker 4: Oh my god, same v serious the eight dollars one?

653
00:31:56,040 --> 00:31:56,600
Speaker 3: Can we play?

654
00:31:56,720 --> 00:31:58,320
Speaker 1: Can we play Togain? I did not know you were.

655
00:31:58,280 --> 00:32:01,200
Speaker 4: Into katan okay O Tess, But it's like that.

656
00:32:01,280 --> 00:32:03,400
Speaker 1: Right, like you don't know what's going to happen next,

657
00:32:03,480 --> 00:32:04,760
Speaker 1: Like you don't know if you're going to need to

658
00:32:04,800 --> 00:32:06,520
Speaker 1: build a road or you're going to be able to

659
00:32:06,560 --> 00:32:08,680
Speaker 1: buy a car, Like you don't know if you're going

660
00:32:08,720 --> 00:32:10,520
Speaker 1: to be able to build a city, because like on

661
00:32:10,560 --> 00:32:12,360
Speaker 1: the next roll, you could be given a whole heap

662
00:32:12,400 --> 00:32:14,920
Speaker 1: of different resources. But like it's good to just have

663
00:32:15,000 --> 00:32:17,000
Speaker 1: like one in the bank freach because like or if

664
00:32:17,040 --> 00:32:19,440
Speaker 1: you can't really do much, well I just build a road, you.

665
00:32:19,360 --> 00:32:22,840
Speaker 4: Know, exactly, don't exact all your eggs in the brick bus.

666
00:32:22,600 --> 00:32:25,760
Speaker 1: Exactly, you don't want to. And if you do have

667
00:32:25,840 --> 00:32:27,560
Speaker 1: six bricks, do you know what you do? You go

668
00:32:27,640 --> 00:32:31,080
Speaker 1: into the trade and you trade four bricks for one straw.

669
00:32:31,800 --> 00:32:34,479
Speaker 3: Anyway, we can definitely talk exactly excited.

670
00:32:35,200 --> 00:32:37,600
Speaker 1: Alright, alright, you can come over. We can have a

671
00:32:37,680 --> 00:32:41,040
Speaker 1: wine night where we play Katan real life.

672
00:32:41,120 --> 00:32:41,920
Speaker 3: Ktar real life.

673
00:32:42,120 --> 00:32:44,520
Speaker 1: I have the board game. I bought it online. Okay, cool,

674
00:32:44,560 --> 00:32:46,720
Speaker 1: let's go to the easter. One of our friends brought

675
00:32:46,760 --> 00:32:49,640
Speaker 1: it down and I was like so skeptical, right, No,

676
00:32:49,680 --> 00:32:51,880
Speaker 1: I was skeptical. Oh yeah, I don't know about this game.

677
00:32:52,200 --> 00:32:54,120
Speaker 1: Was one of Steve's mates. So I just thought it

678
00:32:54,200 --> 00:32:54,560
Speaker 1: was like.

679
00:32:55,040 --> 00:32:56,920
Speaker 3: You know, dumb boygo, dumb boygo.

680
00:32:57,800 --> 00:33:00,600
Speaker 1: I am the dumb boy for it.

681
00:33:01,000 --> 00:33:03,120
Speaker 3: Unfortunately we are the dumb boys now, all right.

682
00:33:02,960 --> 00:33:05,600
Speaker 1: Well, you know what dumb boys like to do. They

683
00:33:05,680 --> 00:33:09,520
Speaker 1: also like to use complicated words like commodities. Yeah, that

684
00:33:09,680 --> 00:33:11,520
Speaker 1: is the next thing I want to talk about, So

685
00:33:11,520 --> 00:33:16,440
Speaker 1: to commodities, complicated word for what is essentially things like

686
00:33:16,520 --> 00:33:20,120
Speaker 1: gold and other precious metals, Like can you just say

687
00:33:20,200 --> 00:33:24,000
Speaker 1: you're invested in gold? Yeah, Like it'd be a lot

688
00:33:24,080 --> 00:33:27,239
Speaker 1: easier than gold and other precious metals, as well as

689
00:33:27,240 --> 00:33:30,280
Speaker 1: things like raw materials and various natural resources, which are

690
00:33:30,320 --> 00:33:35,320
Speaker 1: critical to production. As demand increases, prices rising the economy,

691
00:33:35,360 --> 00:33:38,080
Speaker 1: and the cost of production to meet that demand typically

692
00:33:38,160 --> 00:33:41,600
Speaker 1: rises accordingly. So I can tell you this is true

693
00:33:41,640 --> 00:33:45,280
Speaker 1: because the steel in my house is double what it

694
00:33:45,600 --> 00:33:48,440
Speaker 1: was when I got quoted to pay for it last year,

695
00:33:49,040 --> 00:33:50,960
Speaker 1: and now I have no other choice but to pay

696
00:33:51,040 --> 00:33:53,600
Speaker 1: double for the renovation we're doing. And that's okay, again,

697
00:33:54,120 --> 00:33:57,760
Speaker 1: very privileged position to be. But man, I'm feeling it.

698
00:33:58,760 --> 00:34:00,000
Speaker 1: I'm a little bit salty about it.

699
00:34:00,520 --> 00:34:03,400
Speaker 3: Yeah, but can you go no steal or you have?

700
00:34:03,600 --> 00:34:03,680
Speaker 1: You?

701
00:34:03,920 --> 00:34:04,840
Speaker 3: Is it?

702
00:34:05,240 --> 00:34:07,760
Speaker 1: You? You got to you got to get the steal.

703
00:34:07,920 --> 00:34:09,879
Speaker 1: You gotta get the steal, I feel you. Even though

704
00:34:09,880 --> 00:34:14,200
Speaker 1: commodities don't pay dividends or represent any underlying business, they

705
00:34:14,280 --> 00:34:18,480
Speaker 1: are disconnected to the traditional asset classes like shares and bonds,

706
00:34:18,480 --> 00:34:21,440
Speaker 1: and they actually tend to move in an unrelated direction.

707
00:34:21,640 --> 00:34:26,080
Speaker 1: So they're a good way of diversifying. Treasury indexed bonds.

708
00:34:25,760 --> 00:34:26,319
Speaker 3: Yes, good.

709
00:34:26,360 --> 00:34:27,520
Speaker 4: I was going to ask you about this one.

710
00:34:27,600 --> 00:34:31,360
Speaker 1: Bonds are sexy. I think they're really hot. They're really underrated. Actually,

711
00:34:31,440 --> 00:34:34,960
Speaker 1: I feel like a bond is like a happy medium

712
00:34:35,160 --> 00:34:37,920
Speaker 1: between if you're not willing to take on as much

713
00:34:38,040 --> 00:34:41,120
Speaker 1: risk as a share, but you also don't want your

714
00:34:41,160 --> 00:34:44,239
Speaker 1: money just sitting in cash. There's something that if that's

715
00:34:44,280 --> 00:34:49,520
Speaker 1: your circumstance, you might consider. So Treasury indexed bonds, very specific,

716
00:34:50,080 --> 00:34:53,960
Speaker 1: are medium to long term securities where the capital value

717
00:34:53,960 --> 00:34:56,920
Speaker 1: of the security is adjusted for movements in the CPI,

718
00:34:57,320 --> 00:35:01,600
Speaker 1: So in the Consumer Price Index, just paid quarterly hot

719
00:35:01,880 --> 00:35:05,880
Speaker 1: at a fixed rate on the adjusted capital value at maturity.

720
00:35:06,160 --> 00:35:08,439
Speaker 1: So maturity just means at the end of the time

721
00:35:08,440 --> 00:35:10,279
Speaker 1: that you agreed to invest for mm.

722
00:35:10,200 --> 00:35:11,680
Speaker 3: Hmm, Well, what's it?

723
00:35:11,719 --> 00:35:15,000
Speaker 1: All these confusing more ridiculous? Isn't it? Like I get

724
00:35:15,000 --> 00:35:17,080
Speaker 1: it that you get it? Now, but the fact that

725
00:35:17,160 --> 00:35:20,239
Speaker 1: I have to explain something that shouldn't need explaining, Like

726
00:35:20,400 --> 00:35:22,200
Speaker 1: why can't we just be like, yeah, okay, at the

727
00:35:22,320 --> 00:35:25,719
Speaker 1: end of the term that you agreed to invest, so

728
00:35:25,880 --> 00:35:28,640
Speaker 1: at the maturity of the loan or at the maturity

729
00:35:28,960 --> 00:35:33,640
Speaker 1: of the investment. In this circumstance, investors receive the adjusted

730
00:35:33,680 --> 00:35:36,239
Speaker 1: capital value of the security. So do you know what

731
00:35:36,239 --> 00:35:39,520
Speaker 1: that means? Means you get your cash back, oh, initial

732
00:35:39,600 --> 00:35:43,719
Speaker 1: investment back, but it will be adjusted based on CPI.

733
00:35:44,200 --> 00:35:46,720
Speaker 1: So that's okay, We're all right with that. The value

734
00:35:46,760 --> 00:35:49,799
Speaker 1: adjusted for movement in the CPI is done over the

735
00:35:49,840 --> 00:35:53,240
Speaker 1: lifetime of the bond, not just like what it is today.

736
00:35:53,640 --> 00:35:55,879
Speaker 1: So if you were pulling it out today, like let's

737
00:35:55,880 --> 00:35:59,200
Speaker 1: say that your bond matured today, it wouldn't be at

738
00:35:59,239 --> 00:36:01,359
Speaker 1: seven point eight percent. It would be you know, if

739
00:36:01,440 --> 00:36:03,000
Speaker 1: you were in a ten year bond, it would be

740
00:36:03,080 --> 00:36:05,920
Speaker 1: averaged out over those ten years. So it's a little

741
00:36:05,920 --> 00:36:09,120
Speaker 1: bit more palatable than that seven point eight So it's

742
00:36:09,160 --> 00:36:10,799
Speaker 1: not as scary as you think it is.

743
00:36:10,880 --> 00:36:12,680
Speaker 3: But yeah, gotcha, gotcha, gotcha.

744
00:36:12,760 --> 00:36:13,000
Speaker 1: Okay.

745
00:36:13,840 --> 00:36:16,760
Speaker 4: The podcast before, Yeah, you know what we have spoken

746
00:36:16,800 --> 00:36:18,920
Speaker 4: about and you haven't mentioned yet, and I'm.

747
00:36:18,920 --> 00:36:22,600
Speaker 3: Kind of getting concerned. You usually talk about Warren Buffett.

748
00:36:22,680 --> 00:36:23,759
Speaker 1: Yeah, because he's real hot.

749
00:36:24,120 --> 00:36:25,680
Speaker 3: I haven't seen him. Can you show you a picture

750
00:36:25,680 --> 00:36:26,000
Speaker 3: after this?

751
00:36:26,400 --> 00:36:27,960
Speaker 1: I'll show you a picture now so I can get

752
00:36:27,960 --> 00:36:28,480
Speaker 1: your response.

753
00:36:28,680 --> 00:36:29,560
Speaker 3: Okay, let's do it.

754
00:36:29,960 --> 00:36:34,640
Speaker 4: Oh No, honestly, I thought he's kind of cute.

755
00:36:35,640 --> 00:36:36,920
Speaker 3: I mean, I.

756
00:36:36,920 --> 00:36:39,920
Speaker 1: Mean, Beck, he's like the type of guy that he

757
00:36:40,040 --> 00:36:43,000
Speaker 1: just looks like he would line up behind you at

758
00:36:43,000 --> 00:36:45,920
Speaker 1: the supermarket and you'd let him cut in line. I

759
00:36:45,920 --> 00:36:50,120
Speaker 1: wouldn't let a single soul. Yeah, okay cut in line.

760
00:36:51,120 --> 00:36:52,759
Speaker 1: You know what that's because you're not very nice. But

761
00:36:52,800 --> 00:36:54,840
Speaker 1: I reckon, he's pay you bill if he was behind

762
00:36:54,840 --> 00:36:58,360
Speaker 1: your supermarket. He know what he's worth. What do you

763
00:36:58,360 --> 00:37:00,000
Speaker 1: want to guess what that man? Look at it.

764
00:37:00,680 --> 00:37:01,680
Speaker 3: He's sound familiar.

765
00:37:01,760 --> 00:37:03,719
Speaker 1: Yeah, yeah, yeah, he's going to say yeah because he's

766
00:37:04,080 --> 00:37:07,880
Speaker 1: see it. Oh. He's the most famous investor in the

767
00:37:08,040 --> 00:37:08,680
Speaker 1: entire world.

768
00:37:09,200 --> 00:37:11,840
Speaker 3: Eleven billion no oh.

769
00:37:11,719 --> 00:37:15,440
Speaker 1: You read that role That was one hundred and thirteen

770
00:37:15,840 --> 00:37:20,319
Speaker 1: point eight billion dollars is what he's currently valued. He's

771
00:37:20,400 --> 00:37:22,840
Speaker 1: ninety two years old for those of you playing along

772
00:37:22,880 --> 00:37:27,480
Speaker 1: at home, and is basically an American businessman and investor

773
00:37:27,560 --> 00:37:31,080
Speaker 1: who has a very, very big following. And he is

774
00:37:31,640 --> 00:37:35,160
Speaker 1: very rich because of his investment decisions, not because he

775
00:37:35,239 --> 00:37:38,680
Speaker 1: has built super good businesses or came from family wealth.

776
00:37:38,800 --> 00:37:41,200
Speaker 1: He's essentially made all of his money by relying on

777
00:37:41,280 --> 00:37:44,640
Speaker 1: time tested rules of value investing if you are interested.

778
00:37:44,840 --> 00:37:47,640
Speaker 1: And I just think that's really really sexy. Like I mean,

779
00:37:48,040 --> 00:37:50,840
Speaker 1: he's one of the most frugal people in the entire world.

780
00:37:51,280 --> 00:37:54,240
Speaker 1: He still drives his original car, original car.

781
00:37:54,320 --> 00:37:54,960
Speaker 3: That's cute.

782
00:37:55,000 --> 00:37:57,480
Speaker 1: So he Yeah, he still drives his original car. And

783
00:37:57,719 --> 00:37:59,680
Speaker 1: I'm just getting up a picture for Beck which you

784
00:37:59,680 --> 00:38:01,719
Speaker 1: guys can google and I might even put it on

785
00:38:01,760 --> 00:38:05,880
Speaker 1: my Instagram stories today. But that's his house. It's all

786
00:38:05,920 --> 00:38:10,279
Speaker 1: he needs. Cute, little modest I do wonder sometimes, like

787
00:38:10,560 --> 00:38:13,360
Speaker 1: he does have a very modest family home in America,

788
00:38:13,440 --> 00:38:16,840
Speaker 1: and that's very exciting. But what kind of security do

789
00:38:16,880 --> 00:38:19,520
Speaker 1: you reckon he needs on that given who he is

790
00:38:19,560 --> 00:38:20,399
Speaker 1: and what's going on?

791
00:38:20,840 --> 00:38:22,160
Speaker 3: Oh true, I just.

792
00:38:22,120 --> 00:38:24,800
Speaker 1: Go hold up, hold up. If you're worth one hundred

793
00:38:24,840 --> 00:38:27,319
Speaker 1: and thirteen point eight billion dollars, like you don't just

794
00:38:27,320 --> 00:38:30,439
Speaker 1: get to walk home without any type of risk kind

795
00:38:30,440 --> 00:38:33,440
Speaker 1: of overarching that circumstance. Well, he's a dude, so yeah,

796
00:38:33,480 --> 00:38:35,160
Speaker 1: you're right, And I need two year old guy who

797
00:38:35,280 --> 00:38:39,240
Speaker 1: he can defend himself to defend himself. No, he probably

798
00:38:39,320 --> 00:38:41,239
Speaker 1: needs some help. But that's a very good question. Actually, yeah,

799
00:38:41,360 --> 00:38:44,360
Speaker 1: so google it. We both agree that we'ren Buffett. Oh

800
00:38:44,719 --> 00:38:45,840
Speaker 1: sexy smash.

801
00:38:46,400 --> 00:38:48,279
Speaker 3: Yeah, yeah, smash for sure.

802
00:38:49,920 --> 00:38:51,719
Speaker 1: You're right. I'm going to do a TikTok of all

803
00:38:51,719 --> 00:38:54,480
Speaker 1: the famous investors and it'll be just like one of

804
00:38:54,480 --> 00:38:55,720
Speaker 1: those Smash or past serieses.

805
00:38:55,800 --> 00:38:56,520
Speaker 3: Yeah, let's do it.

806
00:38:56,640 --> 00:38:57,160
Speaker 1: Yeah done.

807
00:38:57,280 --> 00:38:57,560
Speaker 3: Okay.

808
00:38:57,560 --> 00:38:59,719
Speaker 1: So, so since we're talking about Warren Buffett, Yeah, it's a

809
00:38:59,760 --> 00:39:02,920
Speaker 1: real yeah, real hottie. What does it usually say in

810
00:39:03,160 --> 00:39:05,600
Speaker 1: trying times like this? So he has so many good

811
00:39:05,640 --> 00:39:10,560
Speaker 1: quotes and if you've ever heard me say, oh my gosh, yeah, look,

812
00:39:10,600 --> 00:39:12,600
Speaker 1: I've just stolen a lot of things that he said.

813
00:39:12,640 --> 00:39:12,960
Speaker 3: Can't you.

814
00:39:13,640 --> 00:39:16,440
Speaker 1: Yeah, he's inspirational. Yeah, he says, all right, So the

815
00:39:16,440 --> 00:39:18,680
Speaker 1: first best thing you can do to protect against inflation

816
00:39:18,800 --> 00:39:21,320
Speaker 1: is to invest in yourself and your skills. He says,

817
00:39:21,680 --> 00:39:24,120
Speaker 1: if you're the best teacher, if you're the best surgeon,

818
00:39:24,160 --> 00:39:26,640
Speaker 1: if you're the best lawyer, you will get your share

819
00:39:26,680 --> 00:39:30,239
Speaker 1: of the national economic pie, regardless of the value of

820
00:39:30,320 --> 00:39:33,760
Speaker 1: whatever the currency may be. Isn't that interesting?

821
00:39:33,920 --> 00:39:34,240
Speaker 2: Hmmm?

822
00:39:34,880 --> 00:39:36,640
Speaker 1: I feel like it's just like you've just been like,

823
00:39:36,680 --> 00:39:37,760
Speaker 1: I don't get what he means.

824
00:39:38,080 --> 00:39:39,319
Speaker 3: It was too fast for me.

825
00:39:39,840 --> 00:39:43,120
Speaker 1: So essentially, he says, if you're the best in your field,

826
00:39:43,600 --> 00:39:46,239
Speaker 1: you're always going to be valued and be able to

827
00:39:46,320 --> 00:39:49,960
Speaker 1: generate a good income, regardless of what the economics at

828
00:39:49,960 --> 00:39:52,759
Speaker 1: the time are doing. Right. So, like, if you prove

829
00:39:52,840 --> 00:39:55,240
Speaker 1: your value and you invest in yourself and you invest

830
00:39:55,280 --> 00:39:57,480
Speaker 1: in your skills to become the best of the best,

831
00:39:58,040 --> 00:40:00,200
Speaker 1: that is not going to betray you because you're in

832
00:40:00,200 --> 00:40:02,759
Speaker 1: trying times. We see, you know, we've got the tech

833
00:40:02,800 --> 00:40:05,640
Speaker 1: redundancies going on right now. They're not going to lose

834
00:40:05,640 --> 00:40:08,719
Speaker 1: the people that are integral to their companies, are they

835
00:40:08,960 --> 00:40:11,000
Speaker 1: very true? They're going to try and cut the people

836
00:40:11,040 --> 00:40:14,560
Speaker 1: that they go Okay, cool, we could get another XYZX

837
00:40:14,680 --> 00:40:17,359
Speaker 1: at some point in the future. Yeah. The second best

838
00:40:17,400 --> 00:40:20,600
Speaker 1: protection is a wonderful business, which means a company in

839
00:40:20,640 --> 00:40:23,680
Speaker 1: which the products are in demand even if the company

840
00:40:23,800 --> 00:40:27,120
Speaker 1: does have to raise their prices. Companies that tend to

841
00:40:27,120 --> 00:40:32,400
Speaker 1: withstand an inflationary environment quote must have two characteristics. The

842
00:40:32,440 --> 00:40:36,399
Speaker 1: first is an ability to increase prices rather easily even

843
00:40:36,440 --> 00:40:39,120
Speaker 1: when the product demand is flat and capacity is not

844
00:40:39,160 --> 00:40:42,920
Speaker 1: fully utilized without fear of significant loss of either market

845
00:40:42,960 --> 00:40:46,880
Speaker 1: share or unit volume. And the second is an ability

846
00:40:46,920 --> 00:40:51,480
Speaker 1: to accommodate large dollar volume increases in business often produced

847
00:40:51,560 --> 00:40:54,640
Speaker 1: more by inflation rather than by real growth, with only

848
00:40:54,840 --> 00:40:58,719
Speaker 1: minor additional investment of capital. So those two things are

849
00:40:58,719 --> 00:41:01,640
Speaker 1: really good. So rather than trying to pick individual stocks,

850
00:41:01,680 --> 00:41:04,520
Speaker 1: whether we're in an inflationary period or not, you should

851
00:41:04,560 --> 00:41:07,680
Speaker 1: go with this tried and true method, the index fund

852
00:41:08,000 --> 00:41:12,400
Speaker 1: to have and to hold. Ah Warren Buffett also talks

853
00:41:12,440 --> 00:41:15,200
Speaker 1: a lot about it's time in the market, not timing

854
00:41:15,480 --> 00:41:20,840
Speaker 1: the market. He has been known for identifying companies that

855
00:41:20,880 --> 00:41:22,919
Speaker 1: are on his watch list, which is public. By the way,

856
00:41:23,400 --> 00:41:26,040
Speaker 1: it becomes a public thing. If he's looking into a company,

857
00:41:26,120 --> 00:41:29,040
Speaker 1: he talks about it and shits that. But he has

858
00:41:29,080 --> 00:41:33,400
Speaker 1: been known to watch a company for ten twenty thirty

859
00:41:33,520 --> 00:41:37,280
Speaker 1: years before investing in them. The patients are patience, ain't

860
00:41:37,480 --> 00:41:39,840
Speaker 1: and people being like you're missing out on these things,

861
00:41:39,840 --> 00:41:41,960
Speaker 1: like you're not getting in and he's like, yep, no worries,

862
00:41:42,000 --> 00:41:43,680
Speaker 1: but I'm going to make sure that I'm making the

863
00:41:43,760 --> 00:41:46,520
Speaker 1: right decision for me. And then he does and it

864
00:41:46,560 --> 00:41:48,880
Speaker 1: always works out. No, don't know how he knows what

865
00:41:48,920 --> 00:41:52,160
Speaker 1: he's doing. Everyone's given to it. He's a billionaire. And

866
00:41:52,280 --> 00:41:54,359
Speaker 1: is this something that you say it or does Warren

867
00:41:54,400 --> 00:41:58,120
Speaker 1: Buffet say this? From Little Things, Big Things Grow? No,

868
00:41:58,280 --> 00:42:02,360
Speaker 1: I believe that was the very regal Paul Kelly, Ah,

869
00:42:02,400 --> 00:42:05,319
Speaker 1: Paul Kelly, Yeah, yep, yep, yeah, yeah. I believe that

870
00:42:05,480 --> 00:42:08,160
Speaker 1: was his very very well versed song.

871
00:42:08,880 --> 00:42:10,400
Speaker 3: Yeah, sounds familiar to me.

872
00:42:11,040 --> 00:42:14,640
Speaker 1: So little Things Things gross, it's beautiful, that's gonna be

873
00:42:14,640 --> 00:42:16,840
Speaker 1: stuck in my head or study stunning.

874
00:42:16,920 --> 00:42:18,759
Speaker 4: I really recommend people go back to listen to our

875
00:42:18,800 --> 00:42:22,120
Speaker 4: recent Investing Small Amounts episode That works.

876
00:42:23,239 --> 00:42:27,120
Speaker 1: Oh, that was wildly popular, Like I didn't expect it

877
00:42:27,160 --> 00:42:29,400
Speaker 1: to be as popular as it was, but the amount

878
00:42:29,440 --> 00:42:32,839
Speaker 1: of beautiful messages you guys sent me, and let's be honest,

879
00:42:32,880 --> 00:42:35,359
Speaker 1: the spike in download, so that was pretty good. So

880
00:42:35,760 --> 00:42:37,200
Speaker 1: I feel like it was a good EP though, where

881
00:42:37,200 --> 00:42:38,680
Speaker 1: he had good vibes to throughout the.

882
00:42:39,040 --> 00:42:40,719
Speaker 3: Good vibes is a really really nice day.

883
00:42:40,800 --> 00:42:43,080
Speaker 1: That was on the fifth of April, So April go

884
00:42:43,120 --> 00:42:45,280
Speaker 1: and have a listen to that. But there are also

885
00:42:45,360 --> 00:42:47,000
Speaker 1: a few things that I want to leave you guys

886
00:42:47,040 --> 00:42:50,320
Speaker 1: with today. One is from Little Things being skill growth.

887
00:42:51,000 --> 00:42:54,920
Speaker 1: The next year is the average investor will experience. Get this,

888
00:42:55,160 --> 00:43:00,319
Speaker 1: beec approximately seven market corrections during their lifetime, and the

889
00:43:00,400 --> 00:43:02,840
Speaker 1: last was the GFC. Ah, do you know what a

890
00:43:02,840 --> 00:43:06,439
Speaker 1: market correction is? No, it's where it absolutely crashes. You're

891
00:43:06,440 --> 00:43:10,480
Speaker 1: going to experience your portfolio look like trash seven times.

892
00:43:10,560 --> 00:43:11,520
Speaker 1: I'm so sorry.

893
00:43:11,719 --> 00:43:14,680
Speaker 4: Oh man, that's a really pretty name for something that's

894
00:43:14,880 --> 00:43:15,560
Speaker 4: so diffictating.

895
00:43:15,960 --> 00:43:19,520
Speaker 1: Yeah, but it's not devastating if you understand and your

896
00:43:19,560 --> 00:43:23,080
Speaker 1: mindset is good, and you're in a position where you're like, okay, cool,

897
00:43:23,200 --> 00:43:25,759
Speaker 1: the market is off, My portfolio doesn't look the best,

898
00:43:25,760 --> 00:43:28,239
Speaker 1: but if I hold on to this roller coaster, it

899
00:43:28,280 --> 00:43:32,200
Speaker 1: will go back up right. And we know that after

900
00:43:32,239 --> 00:43:35,080
Speaker 1: the GFC, which was a global financial crisis which happened

901
00:43:35,080 --> 00:43:37,200
Speaker 1: in two thousand and eight two thousand and nine, we

902
00:43:37,280 --> 00:43:40,359
Speaker 1: know that some of the best investment returns have come

903
00:43:40,440 --> 00:43:44,399
Speaker 1: after that, Like our market and our economy has more

904
00:43:44,440 --> 00:43:47,759
Speaker 1: than recovered since the GFC, and people talk about that

905
00:43:47,800 --> 00:43:49,920
Speaker 1: as the worst thing in history. And if you go

906
00:43:50,000 --> 00:43:53,560
Speaker 1: on my favorite website is the Vanguard website at the moment,

907
00:43:54,000 --> 00:43:55,759
Speaker 1: I mean, there's a lot of favorite websites I have.

908
00:43:55,880 --> 00:44:01,520
Speaker 1: Isn't there too anyway, TikTok, TikTok's and app's TikTok is

909
00:44:01,560 --> 00:44:05,520
Speaker 1: currently being overtaken by Katan though oh god, yeah, yeah,

910
00:44:05,560 --> 00:44:08,839
Speaker 1: Like I'm I'm gonna lose my pop culture references and

911
00:44:08,880 --> 00:44:10,680
Speaker 1: I'm just going to be starting to talk about how

912
00:44:10,680 --> 00:44:12,719
Speaker 1: many bricks and shape you'll trade me for a piece

913
00:44:12,760 --> 00:44:15,440
Speaker 1: of awe. Honestly, I won't complain, You'll get it all right.

914
00:44:15,719 --> 00:44:18,560
Speaker 1: So I think it's really important to understand that if

915
00:44:18,600 --> 00:44:21,080
Speaker 1: you go onto the Vanguard website and have a look

916
00:44:21,080 --> 00:44:25,320
Speaker 1: at their interactive Investor chart, you can actually slide around

917
00:44:25,360 --> 00:44:27,160
Speaker 1: and have a look at the different asset classes and

918
00:44:27,200 --> 00:44:30,080
Speaker 1: how they've provided. But that graph is my favorite graph

919
00:44:30,080 --> 00:44:34,040
Speaker 1: for showing people how the GFC at the time, if

920
00:44:34,040 --> 00:44:37,759
Speaker 1: you cut back, the chart looks like the scariest drop

921
00:44:37,800 --> 00:44:41,080
Speaker 1: in the entire world. And then if you add all

922
00:44:41,120 --> 00:44:43,279
Speaker 1: the way up to twenty twenty three, it becomes this

923
00:44:43,320 --> 00:44:46,839
Speaker 1: little blip ah in the roller coaster and you go,

924
00:44:47,000 --> 00:44:50,920
Speaker 1: what's that? It's a GFC when in doubt, zoom ow

925
00:44:51,320 --> 00:44:55,040
Speaker 1: exactly fair. You are learning. And the second thing I

926
00:44:55,080 --> 00:44:57,880
Speaker 1: want to leave you with today is my favorite thing

927
00:44:57,920 --> 00:45:02,440
Speaker 1: to harp on about. Have your emergency fund pump it up.

928
00:45:02,640 --> 00:45:05,920
Speaker 1: Make sure financially you are in an okay position right

929
00:45:05,920 --> 00:45:08,879
Speaker 1: now is uncertain for so many people, and so many

930
00:45:08,880 --> 00:45:11,200
Speaker 1: people think, oh, something won't happen to me. It's fine

931
00:45:11,280 --> 00:45:14,000
Speaker 1: if you have some extra cash pumping up your emergency

932
00:45:14,040 --> 00:45:16,800
Speaker 1: fund is never going to go astray. Pay your bills

933
00:45:16,800 --> 00:45:19,480
Speaker 1: on time, hopefully, stay on top of your mortgage. And

934
00:45:19,520 --> 00:45:21,680
Speaker 1: if you don't feel like you're on top of your mortgage,

935
00:45:21,880 --> 00:45:25,360
Speaker 1: please sign into the Xella Money Instagram DMS or email

936
00:45:25,400 --> 00:45:27,919
Speaker 1: them or shoot me a message or you know, get

937
00:45:27,920 --> 00:45:30,080
Speaker 1: in contact because they can review it and make sure

938
00:45:30,080 --> 00:45:32,640
Speaker 1: that you're in the best possible position moving forward, and

939
00:45:32,880 --> 00:45:35,920
Speaker 1: make sure you're getting paid well for your job. I

940
00:45:36,000 --> 00:45:38,120
Speaker 1: know that that can be a very hard one, and

941
00:45:38,160 --> 00:45:41,080
Speaker 1: we are going to be creating, in hopefully the near future,

942
00:45:41,120 --> 00:45:44,160
Speaker 1: a lot more career episodes because I feel like I

943
00:45:44,200 --> 00:45:46,520
Speaker 1: can tell you to invest until the cows come home,

944
00:45:46,880 --> 00:45:49,080
Speaker 1: but you know what, you can't do invest if you

945
00:45:49,120 --> 00:45:51,840
Speaker 1: don't have a good income. So we're going to be

946
00:45:51,840 --> 00:45:53,759
Speaker 1: building up on the career kind of vibe to be like,

947
00:45:53,840 --> 00:45:55,960
Speaker 1: okay cool. I just feel like there are so many

948
00:45:55,960 --> 00:45:58,239
Speaker 1: people in our community who I want to shake and

949
00:45:58,280 --> 00:46:00,359
Speaker 1: be like, babe, do you know your worth. You are

950
00:46:00,400 --> 00:46:03,359
Speaker 1: worth so much more, and his how to achieve that

951
00:46:03,560 --> 00:46:06,040
Speaker 1: or here's how you can create a pathway to that

952
00:46:06,280 --> 00:46:09,520
Speaker 1: without feeling awful about it. So I just I'm really

953
00:46:09,600 --> 00:46:11,880
Speaker 1: excited for that stuff. But we're done here today. I

954
00:46:11,960 --> 00:46:14,360
Speaker 1: love that we're going to talk about Katan. Yes, and

955
00:46:14,400 --> 00:46:15,600
Speaker 1: we'll see you guys on Friday.

956
00:46:15,600 --> 00:46:16,239
Speaker 3: See you guys then.

957
00:46:22,320 --> 00:46:24,840
Speaker 1: The advice shared on She's on the Money is general

958
00:46:24,880 --> 00:46:28,760
Speaker 1: in nature and does not consider your individual circumstances. She's

959
00:46:28,800 --> 00:46:32,200
Speaker 1: on the Money exists purely for educational purposes and should

960
00:46:32,280 --> 00:46:35,440
Speaker 1: not be relied upon to make an investment or financial decision.

961
00:46:35,840 --> 00:46:38,279
Speaker 1: If you do choose to buy a financial product, read

962
00:46:38,320 --> 00:46:42,480
Speaker 1: the PDS TMD and obtain appropriate financial advice tailored towards

963
00:46:42,480 --> 00:46:45,759
Speaker 1: your needs. Victoria Divine and She's on the Money are

964
00:46:45,840 --> 00:46:50,839
Speaker 1: authorized representatives of Money SHERPA pty Ltd ABN three two

965
00:46:50,880 --> 00:46:53,879
Speaker 1: one IS six four nine two seven seven zero eight

966
00:46:54,160 --> 00:47:01,000
Speaker 1: AFSL four five one two eight nine.

967
00:47:01,120 --> 00:47:04,560
Speaker 4: The imputed the diffect of day