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Speaker 1: Just before we get started, we'd like to acknowledge and

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Speaker 1: pay respect to Australia's Aboriginal and torrest Rate islander people's.

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Speaker 1: They're the traditional custodians of the lands, the waterways and

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Speaker 1: the skies all across Australia. We thank you for sharing

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Speaker 1: and for caring for the land on which we are

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Speaker 1: able to learn. We pay respects to elders past and present,

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Speaker 1: and we share our friendship and our kindness.

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Speaker 2: She's on the Money, She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: Millennials Who Want Financial Freedom. My name is Jessica Ricky,

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Speaker 3: filling in for George Key this week today, with of course,

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Speaker 3: as always, Victoria Devine.

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Speaker 1: Hello, Hey, going, you're just sneaking on in here to

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Speaker 1: do you were pod about investing.

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Speaker 3: Oh, you know, I love investing, so I'm very excited

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Speaker 3: for it.

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Speaker 1: Did you just knock George out of the ring because

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Speaker 1: You're like, this is going to be a really good topic.

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Speaker 1: I've been talking to Victoria about it a lot in

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Speaker 1: the office, obviously, because we're planning this.

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Speaker 4: I'm just going to do it myself.

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Speaker 3: Yeah, I st what I gave her the flu so

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Speaker 3: I could, Oh, my, you are so kind. I know

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Speaker 3: I'm really evil, but the like me, we're always just

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Speaker 3: so excited to see people start their investing journey. We

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Speaker 3: know that numbers of people starting that journey are increasing

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Speaker 3: right across the Australia, having risen significantly over the course

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Speaker 3: of the pandemic, which is just great to see.

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Speaker 1: Yes, Jesse, it makes my heart absolutely seeing and I

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Speaker 1: want to take some credit for that because I feel

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Speaker 1: like that She's on the money community make up a

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Speaker 1: really big portion of that. So let's say that it's

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Speaker 1: she's on the money. They're the investors in this community.

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Speaker 1: But what we really want to do with this show

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Speaker 1: is talk more about investing conversations and open up this

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Speaker 1: platform even more to talk more specifically, because I feel

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Speaker 1: like we've graduated a bit, Like a lot of people

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Speaker 1: are still in their budget and cash flow journeys, but

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Speaker 1: a lot of graduated to the point where they're picking

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Speaker 1: between different investment platforms, and there's lots of conversation and

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Speaker 1: questions in our community at the moment, Jess about what

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Speaker 1: platforms should I consider, how do I review them? What's

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Speaker 1: the difference between micro investing and like a share trading

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Speaker 1: platform and robo advice, and for me, I obviously know

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Speaker 1: what the difference is.

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Speaker 4: I'm like, what do you mean?

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Speaker 1: But you've had these questions before, We've gone through them,

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Speaker 1: and it's just something we haven't covered in detail on

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Speaker 1: the pod. So today we are going to be breaking

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Speaker 1: down the differences and who they might best serve.

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Speaker 3: And we really recommend you head back and listen to

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Speaker 3: our mini series on micro investing, which we did back

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Speaker 3: in twenty twenty.

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Speaker 4: I think I don't want to enjoy about it. It was

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Speaker 4: so long ago, can you imagine?

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Speaker 3: But we've done quite a few investing episodes since then.

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Speaker 3: So if you are at the point we are studying

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Speaker 3: your journey, definitely go back through the feed because we've

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Speaker 3: got the Investing one oh one series where we cover

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Speaker 3: the asset classes and then also that micro investing deep

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Speaker 3: dive as well.

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Speaker 1: But V where do we start, Jess, Let's talk about

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Speaker 1: the importance of understanding the different capabilities of the platforms,

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Speaker 1: because I feel like so many of us have only

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Speaker 1: recently started our investing journeys, which is why we're asking

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Speaker 1: questions like do I go with a micro investing platform

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Speaker 1: or do I go direct? And buy some shares, or

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Speaker 1: do I need to see a financial advisor? Like, one

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Speaker 1: of the most common questions in our community is do

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Speaker 1: I need to see a financial advisor? If so, how

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Speaker 1: do I find one? What does that mean? And a

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Speaker 1: lot of people are shocked when they come to find

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Speaker 1: out how expensive financial advisors are, but then they think

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Speaker 1: that maybe that's the only way you can access investing,

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Speaker 1: and that's just not the case. There are so many

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Speaker 1: options that put you in the driver's seat and in

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Speaker 1: the best possible position to actually invest and have a

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Speaker 1: positive impact on your future and feel empowered and get

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Speaker 1: education without actually having to see a financial advisor. Obviously,

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Speaker 1: there are some circumstances like if you've inherited a lot

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Speaker 1: of money or you're going through, you know, a significant

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Speaker 1: change in your life where you're like, you know, what,

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Speaker 1: I do need to see an advisor. I would always

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Speaker 1: recommend that, But given the fact that to see a

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Speaker 1: financial advisor it's probably going to cost you a minimum

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Speaker 1: of three and a half thousand dollars in a statement

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Speaker 1: of advice fee, that's quite prohubitive.

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Speaker 4: For so many people.

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Speaker 1: So I think breaking down the different options that are

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Speaker 1: out there for us is going to put us in

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Speaker 1: the driver's seat, and I want to break them down

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Speaker 1: in I guess levels of complexity. So like, let's frame

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Speaker 1: today in the context of primary school, high school, and university,

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Speaker 1: except we'll call it entry level, mid level, and advanced

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Speaker 1: kind of investing. Now, when I say advanced investing, I

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Speaker 1: don't mean, oh my gosh, you have to be an

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Speaker 1: absolute wizard like Warren Buffett and have millions of dollars.

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Speaker 1: It's just the level of complexity. It's kind of like

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Speaker 1: three steps. And I would love to maybe we'll make

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Speaker 1: a YouTube video on this. I would love to get

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Speaker 1: in front of a whiteboard and show you guys the differences.

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Speaker 1: But this is my way of framing that in an

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Speaker 1: audio context.

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Speaker 3: I love that. So let's say I'm right at the

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Speaker 3: startup my journey. I've got, you know, maybe a couple

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Speaker 3: of hundred dollars to invest. I've never invested before, and

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Speaker 3: I am feeling overwhelmed and intimate.

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Speaker 4: Yeah, and it can be.

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Speaker 1: So disempowering when you're like, oh, I finally save. Like

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Speaker 1: maybe it's like your first three thousand dollars, or maybe

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Speaker 1: it's you know, your first one hundred dollars. Like we

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Speaker 1: don't know your situation, but when you get to that

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Speaker 1: point and you've made that decision to invest, it can

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Speaker 1: be really overwhelming. As you said to go, well, I

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Speaker 1: can't afford advice like do I just sit here with

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Speaker 1: my savings? I'd like what I want to do is

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Speaker 1: invest and that's what this episode is for. So let's

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Speaker 1: start Jess with the primary school. Let's start with the

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Speaker 1: entry level. Let's talk about micro investing. So obviously there

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Speaker 1: are a couple of big ones in Australia that I

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Speaker 1: talked about in our community, and I will shout them

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Speaker 1: out by name. We're not going to break down the

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Speaker 1: actual product. We will do another investing episode at some

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Speaker 1: point breaking down the differences in specific product. But right now,

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Speaker 1: this is your foundational level of understanding of the different

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Speaker 1: types of platforms that exist. The choice of what you

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Speaker 1: use and what is going to work for you is

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Speaker 1: actually on you, it's not on listening to a podcast.

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Speaker 4: So let's talk about micro investing.

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Speaker 1: Spaceship and Race the two names that come to mind

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Speaker 1: when we think of micro investing here in Australia. If

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Speaker 1: you're in the Shees on the Money community already, you've

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Speaker 1: probably seen people in our community talking about the two

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Speaker 1: and the differences and what they do and how they work,

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Speaker 1: because they are two very different products, but they both

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Speaker 1: fall into the category of being micro investing platforms. So

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Speaker 1: micro investing is when you deposit really small amounts of

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Speaker 1: money into an investment portfolio over time. Some people this

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Speaker 1: is an absolute dream because it breaks down the barrier

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Speaker 1: that used to exist, which was like, jess, if you'd

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Speaker 1: like to start investing, you need fifteen thousand dollars or

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Speaker 1: you need five thousand dollars or something that seems or

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Speaker 1: feels really prohibitive, like it's just is such a high hurdle,

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Speaker 1: Like not many of us can actually say, look, I've

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Speaker 1: got five grand in savings, like life is expensive and

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Speaker 1: do we get that, But it's from little things that

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Speaker 1: big things do grow. It's been a while since I've

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Speaker 1: been allowed to say that on the podcast. So basically,

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Speaker 1: to start micro investing, it is relatively easy.

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Speaker 4: You don't need to go see.

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Speaker 1: A financial advisor, you don't need so, you know, sign

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Speaker 1: up for some complex platform. It can be as easy

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Speaker 1: as downloading an app from one of your app stores,

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Speaker 1: creating an account, and starting Most of them have the

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Speaker 1: ability to connect your bank account straight there. There's obviously

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Speaker 1: going to be some level of identification that is required,

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Speaker 1: so don't be terrified of that when they say, hey, Jess,

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Speaker 1: can you upload a photo of your ID? And you go,

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Speaker 1: oh my gosh, what for? In Australia, they actually need

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Speaker 1: to collect that information about you because we need to

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Speaker 1: know who our client is, right, So this applies to

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Speaker 1: financial advisors as well. And I actually think it's quite funny, Jess.

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Speaker 1: If you came to me as a client, which surprise

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Speaker 1: you have before. If you came to me as a

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Speaker 1: client and we sat down, I actually need to verify

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Speaker 1: your identity because it's in the counter Terrorism Act, right, Yeah, I.

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Speaker 4: Need to make sure that you're not laundering money.

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Speaker 1: Yeah, so we need to make sure that you are

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Speaker 1: who you say you are, regardless of how much money

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Speaker 1: you're investing, whether that is one cent or it is

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Speaker 1: a million dollars, Like, I still need to make sure

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Speaker 1: as the person who's a advising you that you're doing

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Speaker 1: the right thing. And a platform would have those same

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Speaker 1: responsibilities as well. So they'm asking for your ID, isn't

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Speaker 1: them asking too much? It's actually a legal requirement. The

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Speaker 1: other feature that people really seem to love about micro

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Speaker 1: investing platforms is their ability to round up. So a

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Speaker 1: lot of micro investing platforms offer the ability to round up.

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Speaker 1: And if you haven't heard of this before, it's a

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Speaker 1: fun concept where Jess, if you say when and bought

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Speaker 1: a note latte for three dollars fifty, what that would

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Speaker 1: mean if you had roundups enabled on your account and

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Speaker 1: you were connected to a micro investing platform is that

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Speaker 1: they would round that purchase up to the nearest dollar.

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Speaker 1: So instead of that transaction costing three dollars fifty, it

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Speaker 1: would cost four dollars and your micro investing platform would

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Speaker 1: take fifty cents and put it into your investing platform.

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Speaker 1: For a lot of people, this is such a more

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Speaker 1: accessible way to start investing, especially if you're a gen

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Speaker 1: Z or a millennial, or you're really young and you're

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Speaker 1: at UNI, or you know, you might just be strapped

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Speaker 1: for cash, but you still want to feel like you're

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Speaker 1: doing something for your future. This is a really good

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Speaker 1: way of just rounding up those purchases. And the reason

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Speaker 1: I kind of lean into it and go, do you

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Speaker 1: know what, that's actually a really smart way of finding

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Speaker 1: some extra cash. There are a lot of savings accounts

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Speaker 1: that have that capability too. The reason I like that

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Speaker 1: is sometimes, jes you just don't have the wiggle room

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Speaker 1: in your budget to allocate extra twenty or thirty bucks

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Speaker 1: a month towards investing, but you can always connect your

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Speaker 1: bank account that your discretionary spending is on, So if

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Speaker 1: you're buying a coffee or something that is not your

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Speaker 1: rent and not your bills, you actually have that capacity

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Speaker 1: to invest or save or do whatever you want. I

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Speaker 1: think it's a cool feature across the board, regardless of platform.

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Speaker 1: So for me that makes a lot of sense, and

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Speaker 1: for you, if you're an investor using a micro investing platform,

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Speaker 1: you might really like the fact that you're dollar cost

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Speaker 1: averaging into the market. So dolar cost averaging, if we

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Speaker 1: haven't discussed it before, is where instead of dropping lump

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Speaker 1: sums into the market over a longer period of time,

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Speaker 1: you're consistently transacting in the market, so you're dropping money

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Speaker 1: in on a regular basis, which means that you're always

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Speaker 1: making use of the highs and the lows of the market.

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Speaker 1: So on average, over time we end up paying the

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Speaker 1: average right, And that is good because Jess, if we

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Speaker 1: could time the market, we would be so rich, like

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Speaker 1: beyond rich.

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Speaker 4: Look at Warren Buffett. He's able to time the market.

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Speaker 4: I don't know how.

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Speaker 1: I think he's a wizard, or maybe he has something

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Speaker 1: magic fairy duest in that house.

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Speaker 3: He won't give up sold has sold to somebody to

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Speaker 3: figure that out.

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Speaker 1: I think, yeah, look, let me know, Warren, if you

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Speaker 1: want to catch up a coffee, I will buy you

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Speaker 1: an oat latte, and I will round up my purchase

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Speaker 1: and I will invest fifty cents.

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Speaker 3: So these platforms v I know that there's kind of

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Speaker 3: two primary ways that they break down the investing. It's

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Speaker 3: managed funds and ETF fuss. Yes, what's the difference between

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Speaker 3: the two?

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Speaker 1: Oh my gosh, she's done her research, kind of obsessed

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Speaker 1: with you. All right, So micro investing platforms are not

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Speaker 1: all created the same. So you don't just go all right, well,

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Speaker 1: i've seen this brand or i've seen that brand. I'm

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Speaker 1: just going to go with one or the other. I

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Speaker 1: like the marketing, or I like you know, the branding,

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Speaker 1: or i've seen an influencer to use it like that

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Speaker 1: is not how we make decisions. The way we should

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Speaker 1: be making decisions is by actually looking at the different products,

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Speaker 1: their features, and benefits and going this one suits me

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Speaker 1: better or this one suits me better. Right, So the

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Speaker 1: difference between a managed fund and an ETF is is

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Speaker 1: quite big in the grand scheme of things, but to

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Speaker 1: you as a consumer, it's probably not.

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Speaker 4: There are a couple of different products on.

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Speaker 1: The market when it comes to micro investing, and some

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Speaker 1: of them have different portfolios that you can choose from.

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Speaker 1: So they will have like a conservative portfolio or an

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Speaker 1: aggressive portfolio. They might have like a sustainable portfolio for

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Speaker 1: you to choose from, and then those portfolios are made

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Speaker 1: up of different ETFs that that micro investing platform has

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Speaker 1: chosen that might work for you. So that is one

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Speaker 1: way of investing. And an ETF is an exchange traded fund,

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Speaker 1: which is basically where instead of buying individual shares, there

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Speaker 1: is a portfolio that is put together. It's like a

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Speaker 1: big bucket, right, That's how I see ETFs. Like every

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Speaker 1: time someone says ETF, I think bucket very sexy. But

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Speaker 1: it's essentially a bucket that is run by an ETF

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Speaker 1: manager and they put all of their different shares into

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Speaker 1: a portfolio and they manage it and then you purchase

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Speaker 1: into that bucket instead of purchasing individual shares on your own,

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Speaker 1: and one of the benefits of that is that you

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Speaker 1: get instant diversification. So diversification is making sure that your

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Speaker 1: assets are spread out instead of having all your eggs

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Speaker 1: in one basket. And an ETF is quite a popular

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Speaker 1: way of making sure that you have access to diversification,

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Speaker 1: which is really important when it comes to investing. You

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Speaker 1: need to make sure that you do have good diversification

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Speaker 1: because when we are investing law or amounts, we don't

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Speaker 1: have the ability to be instantly diversified, right, especially when

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Speaker 1: like if you look at like a bank's share, right

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Speaker 1: that could be like anywhere between sixty and one hundred

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Speaker 1: dollars per share to own. And then if you're creating

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Speaker 1: your big portfolio, like how do you get diversification across

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Speaker 1: all the different sectors? Like you want to own some banks,

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Speaker 1: maybe you want to own some commodities, you want some

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Speaker 1: sustainable things in there, you might want some retail. There's

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Speaker 1: not a lot of ways that you can make sure

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Speaker 1: that happens with a limited budget when you're buying directly.

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Speaker 1: So a lot of people like ets right. The alternative

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Speaker 1: in the micro investing space is what's called a direct

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Speaker 1: managed fund, and a managed fund is where, instead of

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Speaker 1: having different portfolios that you choose from that might be

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Speaker 1: like conservative or aggressive or as we said, sustainable, they

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Speaker 1: actually just have a set list of stocks that that

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Speaker 1: company has chosen and you buy into that managed fund.

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Speaker 1: A managed fund then has an allocated fund manager, so

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Speaker 1: that could be a person that is in charge of

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Speaker 1: making sure that performs and they make decisions on all

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Speaker 1: of those shares in that portfolio. But instead of you going,

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Speaker 1: I'm a conservative investor, I want to match this to

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Speaker 1: my risk profile, you're picking a type of managed fund,

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Speaker 1: and some of them in the market at the moment

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Speaker 1: have maybe one or two or even three different types

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Speaker 1: of managed funds you can choose from, but instead of

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Speaker 1: aligning to your risk they actually align to maybe your values.

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Speaker 1: So it might be like up and coming companies, or

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Speaker 1: it might be you know, the stock standard top two

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Speaker 1: hundred companies, So it really depends on what you're looking for,

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Speaker 1: and I think understanding those differences and how they work

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Speaker 1: is really really important because you just want to know.

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Speaker 4: What you're getting. Like, it's not just about reading the

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Speaker 4: front of the cereal box.

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Speaker 1: It's about reading the ingredients and how you're meant to

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Speaker 1: mix it up and how it works and who it's

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Speaker 1: going to suit. So for me, it's really important that

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Speaker 1: you understand that not all micro investing platforms are created equally.

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Speaker 1: But one of the things that is really attractive to

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Speaker 1: a lot of people in the community is they're very

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Speaker 1: low entry fees. So a lot of microinvesting platforms won't

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Speaker 1: charge you until you get to a minimum amount, and

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Speaker 1: that amount could be five thousand dollars invested, or they

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Speaker 1: might have a very low monthly fee when compared to

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Speaker 1: bigger investing platforms that would have the platform fee, but

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Speaker 1: then you'd also be paying brokerage and maybe some advice

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Speaker 1: like It completely depends, but accessibility on microinvesting platforms seems

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Speaker 1: to be something that people adore.

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Speaker 3: In terms of those different types of funds, would it

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Speaker 3: be fair to say that something like Spaceship is an

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Speaker 3: example of a managed fund and then something like comsec

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Speaker 3: pocket would be an ETF fund where you're choosing your

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Speaker 3: selection yet.

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Speaker 1: So I'm trying here to just give you an idea

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Speaker 1: of the types of platforms, but yes, we can talk

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Speaker 1: about that. So raise they have different portfolios that you

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Speaker 1: would pick based on your risk tolerance, and then they

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Speaker 1: pick ETFs which build up that portfolio. Something like Spaceship

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Speaker 1: has more of a managed fund approach where you pick

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Speaker 1: the managed fund that works for you, and then comsect

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Speaker 1: Pocket is the platform that you can log into and

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Speaker 1: pick one of their limited options.

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Speaker 4: Of ETFs available.

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Speaker 3: Got it?

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Speaker 1: Now?

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Speaker 3: What can't these platforms do because they're sounding pretty good

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Speaker 3: right now.

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Speaker 1: Honestly, they do sound pretty good, pretty accessible. But a

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Speaker 1: few weeks back, on our chat about growth and dividend investing,

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Speaker 1: we mentioned el Maate Warren Buffett, who clearly I talk

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Speaker 1: about a lot on this podcast. He keeps coming back.

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Speaker 1: People are going to start accusing me of having a crush,

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Speaker 1: which I very much do. But we talked about his

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Speaker 1: quote that said, if you aren't thinking about owning a

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Speaker 1: stock for ten years, don't even think about owning it

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Speaker 1: for ten minutes. And I feel like that should really

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Speaker 1: be taken into consideration when we talk about what your

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Speaker 1: investing journey should look like, because a micro investing platform

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Speaker 1: isn't the type of platform that a financial advisor would

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Speaker 1: recommend to someone who's about to retire, and the reason

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Speaker 1: for that is because you can't take the income that

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Speaker 1: is being made in your investment portfolio as a income

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Speaker 1: for you directly. It just automatically gets reinvested and your

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Speaker 1: portfolio is there and it grows and you would have

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Speaker 1: to cash the entirety out to make money. So from

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Speaker 1: my perspective, accessibility is really good. It's easy to get

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Speaker 1: on these platforms. A lot of people in our community

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Speaker 1: really like it because they feel like they're not, you know,

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Speaker 1: putting their life savings into an investment. They can just

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Speaker 1: start with like five or ten dollars so that they

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Speaker 1: can see how the market starts to perform and how

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Speaker 1: they feel when it's off and what that looks like,

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Speaker 1: and slowly start building from there.

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Speaker 4: But what we do see in our community.

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Speaker 1: Is a lot of people using micro investing platforms to

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Speaker 1: springboard into like a shared trading account or robo advice

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Speaker 1: or then seeing a financial advisor. So what I'm seeing

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Speaker 1: is a lot of people using it. It's kind of

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Speaker 1: like the start point. It's like primary school. As we said,

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Speaker 1: let's talk about that.

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Speaker 3: So say I've been micro investing and I'm understanding the

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Speaker 3: ebbs and the flows, I'm feeling a bit more confident,

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Speaker 3: and I'm a little bit more in control. What would

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Speaker 3: I be looking at for more of that mid level

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Speaker 3: investing point?

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Speaker 1: Okay, so mid level so this is secondary school or

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Speaker 1: like you know, if you were going skiing, it would

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Speaker 1: be a blue run. So just mid level investing is

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Speaker 1: more about DIY platforms where I genuinely believe you need

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Speaker 1: to have a little bit more knowledge before you log

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Speaker 1: in and start trading. So these could be things like

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Speaker 1: Chaz's and Superhero and self wealth, which we've all talked about.

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Speaker 4: In the community.

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Speaker 1: I feel like those are some pretty big as that

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Speaker 1: people in our community are going to be very well

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Speaker 1: aware of. And the thing is they're not harder to

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Speaker 1: access than a micro investing platform.

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Speaker 3: Right.

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Speaker 1: All of these bar self wealth that I've mentioned, have

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Speaker 1: apps that you can download that are super user friendly

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Speaker 1: that you can just download from an app store, upload

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Speaker 1: your information, and start trading, which is so exciting, right,

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Speaker 1: and it means that investing is so much more accessible.

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Speaker 1: Something like self wealth load does have like an access

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Speaker 1: point where you need a minimum of like five hundred

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Speaker 1: dollars to invest, so obviously that's not as accessible, but

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Speaker 1: if you compared that to like a SHARESI is you

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Speaker 1: only need one cent to invest and I just feel

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Speaker 1: like that is such a new idea these days.

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Speaker 4: Like historically, entry level to direct.

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Speaker 1: Share trading was so prohibitive because you'd need so much money,

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Speaker 1: you'd have to pay a ridiculous amount of brokerage, and

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Speaker 1: it would just feel like it was so beyond what

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Speaker 1: you could control. Now it's super easy. But the thing

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Speaker 1: that I would want you to be aware of is

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Speaker 1: that you need to have a knowledge of like, jess,

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Speaker 1: what are you gonna buy once you've downloaded that a

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Speaker 1: how do you know what you want to trade? So

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Speaker 1: it's a bit more DIY and that you don't just

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Speaker 1: go on the app, pick a portfolio and go yep, cool,

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Speaker 1: this is what I'm buying. You go on the platform

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Speaker 1: and depending on what app you've downloaded, you could have

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Speaker 1: access to Australian Shares, US Shares, New Zealand Shares, you

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Speaker 1: could have access to some platforms have crypto and NFTs.

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Speaker 1: Like there's so much diversification and range that you're going

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Speaker 1: to need to have some level of education to make

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Speaker 1: a decision that is right for you. And I don't

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Speaker 1: want that to sound overwhelming, because as we said before,

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Speaker 1: ETFs are really popular. You can buy ETFs on share

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Speaker 1: trading platforms, so it shouldn't be overwhelming. And sometimes just

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Speaker 1: downloading an app and having a look through is a

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Speaker 1: really good start of an education. Like you're not going

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Speaker 1: to be bullied into investing five thousand dollars just by

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Speaker 1: downloading the app and having a bit of a play

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Speaker 1: with a small amount of money.

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Speaker 4: But what I do want you guys to understand.

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Speaker 1: Is is a bit more of a responsibility on you

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Speaker 1: to be making those decisions. And you do need to

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Speaker 1: understand what an ETF is or a managed fund, or

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Speaker 1: what type of direct shares you do want to be

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Speaker 1: purchasing for and why. And I think why is the

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Speaker 1: biggest question we need to answer here is what's your intention?

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Speaker 1: Are you buying it just because it's a bit of

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Speaker 1: fun like your friends, you know a couple of years

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Speaker 1: we're talking about after Patiares, Do you want to have

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00:20:16,280 --> 00:20:18,240
Speaker 1: a bit of a dabble in a few tech stocks

439
00:20:18,800 --> 00:20:23,200
Speaker 1: or are you genuinely starting your journey towards creating financial freedom,

440
00:20:23,560 --> 00:20:26,159
Speaker 1: in which case it is important to pick stocks that

441
00:20:26,200 --> 00:20:28,800
Speaker 1: you buy and hold and go back to Warren Buffett's

442
00:20:28,840 --> 00:20:30,600
Speaker 1: quote about holding it for ten years.

443
00:20:30,840 --> 00:20:32,919
Speaker 3: So say you're someone like me, and you're using the shares'

444
00:20:32,960 --> 00:20:35,600
Speaker 3: platform and you're buying stocks that really align with your

445
00:20:35,680 --> 00:20:38,240
Speaker 3: values or the things that you think could be really

446
00:20:38,280 --> 00:20:41,680
Speaker 3: fantastic in the future or make a difference. Can I

447
00:20:41,800 --> 00:20:44,640
Speaker 3: purchase those and hold them long term in a way

448
00:20:44,640 --> 00:20:47,040
Speaker 3: that I can't really on micro investing Clay.

449
00:20:46,880 --> 00:20:48,320
Speaker 4: Yes, absolutely you can.

450
00:20:48,400 --> 00:20:50,520
Speaker 1: And that is the intention of a lot of platforms,

451
00:20:50,520 --> 00:20:52,480
Speaker 1: Like I know we're talking to Chase's and they've said

452
00:20:52,520 --> 00:20:54,879
Speaker 1: directly to us, no, that's the intention, Like they don't

453
00:20:54,920 --> 00:20:57,679
Speaker 1: actually want people going on there and buying and selling

454
00:20:57,720 --> 00:21:01,680
Speaker 1: and being like day traders, which is a completely different conversation.

455
00:21:01,280 --> 00:21:01,840
Speaker 4: To be had.

456
00:21:02,160 --> 00:21:04,399
Speaker 1: And I think that that's the important thing. It is

457
00:21:04,440 --> 00:21:07,199
Speaker 1: a responsibility on you. You need to make a decision

458
00:21:07,200 --> 00:21:09,480
Speaker 1: that you feel is right for you. But the intention

459
00:21:09,640 --> 00:21:12,719
Speaker 1: when buying shares should be a buy and hold strategy,

460
00:21:13,080 --> 00:21:16,120
Speaker 1: like and that's not financial advice. That is just saying

461
00:21:16,520 --> 00:21:18,760
Speaker 1: that we wouldn't want you to put yourself in a

462
00:21:18,760 --> 00:21:20,919
Speaker 1: position where you had to sell something really quickly, Like

463
00:21:21,040 --> 00:21:23,960
Speaker 1: I want you to be in the financial position where

464
00:21:24,040 --> 00:21:26,879
Speaker 1: you don't have to sell something, because you shouldn't be

465
00:21:26,880 --> 00:21:30,240
Speaker 1: investing your emergency fund right you should only be investing

466
00:21:30,280 --> 00:21:34,280
Speaker 1: money that can be allocated towards investing directly, and that's

467
00:21:34,280 --> 00:21:36,000
Speaker 1: a question. We get a lot like, oh my gosh,

468
00:21:36,040 --> 00:21:38,080
Speaker 1: well my emergency fund is doing nothing, And I'm like,

469
00:21:38,160 --> 00:21:41,040
Speaker 1: that's the point of an emergency fund, Like it's meant

470
00:21:41,080 --> 00:21:43,879
Speaker 1: to be super accessible. You're meant to know that that

471
00:21:43,960 --> 00:21:46,520
Speaker 1: money is there, rain, hail, or shine for you in

472
00:21:46,560 --> 00:21:50,119
Speaker 1: the case of an emergency. It's not there to create wealth, Like,

473
00:21:50,440 --> 00:21:53,200
Speaker 1: its job is to keep you safe. And I think

474
00:21:53,240 --> 00:21:55,920
Speaker 1: we need to differentiate between the role that money has

475
00:21:55,920 --> 00:21:59,200
Speaker 1: in our lives. Some money is there to keep us safe.

476
00:21:59,359 --> 00:22:02,080
Speaker 1: Its job isn't to make money. But then other money,

477
00:22:02,119 --> 00:22:03,760
Speaker 1: like we're going to put that to work, and that's

478
00:22:03,800 --> 00:22:06,120
Speaker 1: really important. And that's the type of money you'd put

479
00:22:06,160 --> 00:22:09,080
Speaker 1: on an investing platform. So if you're in a position

480
00:22:09,080 --> 00:22:11,800
Speaker 1: where you don't have an emergency fund yet, I definitely

481
00:22:11,800 --> 00:22:15,320
Speaker 1: would be considering that before downloading an investing app, because

482
00:22:15,359 --> 00:22:17,600
Speaker 1: in investing app, it should be for the long term.

483
00:22:17,640 --> 00:22:19,520
Speaker 1: Regardless of what app you've picked.

484
00:22:19,720 --> 00:22:22,359
Speaker 3: What types of features do these share trading platforms have

485
00:22:22,480 --> 00:22:25,600
Speaker 3: that maybe we wouldn't be seeing on a micro investing platform.

486
00:22:25,119 --> 00:22:28,080
Speaker 1: So they usually have a whole heap more research, So

487
00:22:28,119 --> 00:22:30,800
Speaker 1: they have the underlying actual asset. You'll be able to

488
00:22:30,880 --> 00:22:33,359
Speaker 1: click into a particular stock and see what they're doing,

489
00:22:33,440 --> 00:22:36,480
Speaker 1: what their performance has been over time. There's not going

490
00:22:36,520 --> 00:22:38,760
Speaker 1: to be any aspect of advice on there, Like you're

491
00:22:38,760 --> 00:22:41,120
Speaker 1: not going to click into a NAB share and it'll

492
00:22:41,119 --> 00:22:43,760
Speaker 1: say this is a good share to purchase, like that's

493
00:22:43,800 --> 00:22:46,600
Speaker 1: not how it works. But it'll explain to you what

494
00:22:46,640 --> 00:22:49,280
Speaker 1: the dividend yield might be and what that share is

495
00:22:49,320 --> 00:22:51,960
Speaker 1: going to cost you to purchase, and it's going to

496
00:22:52,040 --> 00:22:54,960
Speaker 1: explain to you what it's been doing over time, which

497
00:22:55,000 --> 00:22:57,960
Speaker 1: I think is a really powerful thing and really important

498
00:22:57,960 --> 00:23:01,639
Speaker 1: to tak into consideration when making this. As we said before,

499
00:23:01,640 --> 00:23:04,080
Speaker 1: these apps exist to be a bit more DIY like

500
00:23:04,119 --> 00:23:06,399
Speaker 1: you're meant to be doing these things yourself, like that

501
00:23:06,520 --> 00:23:09,600
Speaker 1: is your decision, whereas when compared to a microinvesting app,

502
00:23:09,640 --> 00:23:11,479
Speaker 1: like the decisions are made for you. You don't have

503
00:23:11,560 --> 00:23:14,960
Speaker 1: to pick stocks, whereas on a shared trading platform you've

504
00:23:14,960 --> 00:23:16,640
Speaker 1: got the power to pick your stocks. And I feel

505
00:23:16,680 --> 00:23:19,200
Speaker 1: like I'm making this sound like it's a big responsibility,

506
00:23:19,359 --> 00:23:22,640
Speaker 1: and it absolutely is, but it can be really empowering

507
00:23:22,760 --> 00:23:24,440
Speaker 1: once you start looking into things and go do you

508
00:23:24,480 --> 00:23:26,640
Speaker 1: know what, I'm going to download this app and I'm

509
00:23:26,680 --> 00:23:29,240
Speaker 1: going to buy an ETF, probably going to buy two

510
00:23:29,320 --> 00:23:31,960
Speaker 1: or three eutfs that might align to my values. But

511
00:23:32,040 --> 00:23:34,080
Speaker 1: then it gives you the access to be able to

512
00:23:34,080 --> 00:23:36,960
Speaker 1: buy things that are in line with your values as well, which,

513
00:23:37,119 --> 00:23:39,000
Speaker 1: as shees on the Money, we always want you to

514
00:23:39,000 --> 00:23:41,040
Speaker 1: be buying things that are in line with your values.

515
00:23:41,280 --> 00:23:44,400
Speaker 3: So there are so many share trading platforms out there,

516
00:23:44,440 --> 00:23:46,800
Speaker 3: I would say way more than micro investing platforms. How

517
00:23:46,800 --> 00:23:49,240
Speaker 3: do people figure out what is right for them?

518
00:23:49,480 --> 00:23:52,639
Speaker 1: So the important thing is to go onto their different websites,

519
00:23:52,720 --> 00:23:55,240
Speaker 1: have a look at the features and benefits, and maybe

520
00:23:55,240 --> 00:23:57,639
Speaker 1: write your own little bucket list, like what do you

521
00:23:57,840 --> 00:24:00,320
Speaker 1: actually want out of this process? Do you want really

522
00:24:00,359 --> 00:24:02,960
Speaker 1: good tax reporting or do you want to be able

523
00:24:02,960 --> 00:24:05,879
Speaker 1: to access an overseas market or are you just looking

524
00:24:05,920 --> 00:24:08,840
Speaker 1: for an app that will give you access to ETFs?

525
00:24:08,880 --> 00:24:12,000
Speaker 4: Like what do you want? And then also what.

526
00:24:11,880 --> 00:24:14,560
Speaker 1: Type of accessibility do you want? Are you looking for

527
00:24:14,600 --> 00:24:16,800
Speaker 1: the ability to start at one cent or are you

528
00:24:16,880 --> 00:24:19,640
Speaker 1: looking for the ability to invest your first few thousands

529
00:24:19,680 --> 00:24:22,240
Speaker 1: of dollars? And obviously an option that has one cent

530
00:24:22,320 --> 00:24:24,720
Speaker 1: is going to work for a few thousand dollars. But

531
00:24:24,800 --> 00:24:26,679
Speaker 1: if you're in this situation where you're like me, I

532
00:24:26,760 --> 00:24:28,800
Speaker 1: have my first five hundred, like and I want to

533
00:24:29,040 --> 00:24:31,080
Speaker 1: maybe start with one hundred, You're going to want to

534
00:24:31,080 --> 00:24:34,520
Speaker 1: look for options that are aligning to your ability.

535
00:24:34,000 --> 00:24:35,240
Speaker 4: To access a platform.

536
00:24:35,359 --> 00:24:37,439
Speaker 1: Right, So I would go on to their websites and

537
00:24:37,480 --> 00:24:39,199
Speaker 1: just look for how much is it going to cost me?

538
00:24:39,400 --> 00:24:41,760
Speaker 1: Am I able to access the things I want to access?

539
00:24:42,080 --> 00:24:44,439
Speaker 1: Is the reporting that I want there? And am I

540
00:24:44,520 --> 00:24:47,560
Speaker 1: happy with the values and goals of this company as well?

541
00:24:47,840 --> 00:24:51,040
Speaker 1: So from my perspective, it's not just about going, can

542
00:24:51,080 --> 00:24:53,520
Speaker 1: I access something good? It's about looking at the team

543
00:24:53,560 --> 00:24:55,720
Speaker 1: and going, am I comfortable with the way they run

544
00:24:55,760 --> 00:24:58,800
Speaker 1: this business? Do I like this as a thing that

545
00:24:58,840 --> 00:25:02,440
Speaker 1: I'm going to interact? Because when you're picking a shared

546
00:25:02,480 --> 00:25:05,760
Speaker 1: trading platform, like the idea would be to buy and hold,

547
00:25:05,960 --> 00:25:08,919
Speaker 1: but also stick with that platform for that period of

548
00:25:08,960 --> 00:25:10,960
Speaker 1: time because it can get a little bit messy when

549
00:25:11,000 --> 00:25:14,560
Speaker 1: you try and change platforms. So I'm making it sound

550
00:25:14,640 --> 00:25:16,679
Speaker 1: dramatic that it's a really big decision, but it is

551
00:25:16,800 --> 00:25:18,560
Speaker 1: and I need you guys to take it as seriously

552
00:25:18,560 --> 00:25:19,040
Speaker 1: as I do.

553
00:25:19,359 --> 00:25:23,280
Speaker 3: Incredible, So we've talked micro investing we've talked share trading.

554
00:25:23,720 --> 00:25:26,120
Speaker 3: We've still got one more to go, robo investing.

555
00:25:26,280 --> 00:25:26,560
Speaker 2: Jess.

556
00:25:26,640 --> 00:25:29,000
Speaker 1: I am trying so hard to not get too deep

557
00:25:29,000 --> 00:25:31,960
Speaker 1: on these. You keep saying that it is an overarching thing,

558
00:25:32,240 --> 00:25:33,960
Speaker 1: so there are going to be so many more episodes

559
00:25:34,000 --> 00:25:35,320
Speaker 1: where I'm like, all right, we're going to break down

560
00:25:35,320 --> 00:25:37,760
Speaker 1: the different platforms and their features and benefits. Like I

561
00:25:37,840 --> 00:25:40,159
Speaker 1: have an entire spreadsheet that I want to share with

562
00:25:40,200 --> 00:25:43,400
Speaker 1: you guys, So just wait, it's coming. But yes, let's

563
00:25:43,560 --> 00:25:45,440
Speaker 1: go to a quick break, and when we come back,

564
00:25:45,520 --> 00:25:47,880
Speaker 1: I'm going to deep dive straight into robo advice.

565
00:25:53,119 --> 00:25:57,680
Speaker 3: Already we're back, We're chatting investing platforms. It's very exciting, Victoria.

566
00:25:57,760 --> 00:25:59,440
Speaker 3: I'm telling you to ren it in because we only

567
00:25:59,440 --> 00:26:02,600
Speaker 3: have so much today. So let's tackle the last kind

568
00:26:02,600 --> 00:26:04,760
Speaker 3: of option under that big umbrella that you gave us

569
00:26:04,760 --> 00:26:06,840
Speaker 3: at the start, which is robo investing.

570
00:26:06,920 --> 00:26:08,680
Speaker 1: I don't know if I want to call it advanced.

571
00:26:08,720 --> 00:26:10,560
Speaker 1: I'm going back on what I said. I don't know

572
00:26:10,600 --> 00:26:13,280
Speaker 1: if this is advanced because at the same time as

573
00:26:13,320 --> 00:26:15,639
Speaker 1: it being kind of like that third step up, so

574
00:26:15,680 --> 00:26:17,679
Speaker 1: it goes kind of like micro investing. Then you've got

575
00:26:17,680 --> 00:26:21,680
Speaker 1: your DIY investing platforms and then you've got robo advice.

576
00:26:21,760 --> 00:26:25,080
Speaker 1: The reason I'm calling it like that third step up

577
00:26:25,160 --> 00:26:28,280
Speaker 1: or the advanced option, is not because it's more complicated.

578
00:26:28,720 --> 00:26:30,320
Speaker 4: It's because it's a little.

579
00:26:30,040 --> 00:26:34,040
Speaker 1: Bit more expensive and a little bit more complex and comprehensive,

580
00:26:34,119 --> 00:26:36,320
Speaker 1: and I think that that's important to understand. It's not

581
00:26:36,359 --> 00:26:39,320
Speaker 1: because it's harder to access, it's not because it requires

582
00:26:39,359 --> 00:26:42,359
Speaker 1: so much more knowledge on your behalf. It's actually because

583
00:26:42,480 --> 00:26:47,200
Speaker 1: it's the one option that includes personalized investment advice. So

584
00:26:47,240 --> 00:26:50,320
Speaker 1: it's basically just the same as going and seeing a

585
00:26:50,359 --> 00:26:54,200
Speaker 1: financial advisor and just talking to them about investments. So,

586
00:26:54,359 --> 00:26:56,960
Speaker 1: as you guys know are here in Australia, financial advice

587
00:26:57,000 --> 00:26:59,800
Speaker 1: can be really expensive and it's important for you to

588
00:27:00,040 --> 00:27:03,240
Speaker 1: understand why that's the case. So I'm a financial advisor

589
00:27:03,280 --> 00:27:05,560
Speaker 1: and I give this advice and just before we even

590
00:27:05,600 --> 00:27:07,800
Speaker 1: get into robo advice, so I think it's important to

591
00:27:07,800 --> 00:27:09,840
Speaker 1: give you a little bit of insight as to why

592
00:27:09,920 --> 00:27:11,800
Speaker 1: it costs so much, because if you go the like

593
00:27:12,000 --> 00:27:14,600
Speaker 1: why does it cost you so much to go hey,

594
00:27:14,800 --> 00:27:16,919
Speaker 1: invest in X, Y and Z, Like why is it

595
00:27:16,960 --> 00:27:19,080
Speaker 1: between three and a half and seven thousand dollars for

596
00:27:19,119 --> 00:27:22,720
Speaker 1: you to do that, but it's all about the relationship, right, So,

597
00:27:22,880 --> 00:27:25,040
Speaker 1: like you would come in and sit with me as

598
00:27:25,040 --> 00:27:28,560
Speaker 1: a financial advisor, and I take into consideration absolutely every

599
00:27:28,640 --> 00:27:31,760
Speaker 1: part of your personal life, your values, your goals, your

600
00:27:31,800 --> 00:27:35,280
Speaker 1: tolerance to risk, what that means. Then we'd have another meeting.

601
00:27:35,320 --> 00:27:37,919
Speaker 1: It might be another two hours or so on strategy.

602
00:27:38,080 --> 00:27:39,919
Speaker 1: What you think you want to do? Do you want

603
00:27:39,960 --> 00:27:42,240
Speaker 1: to buy property? These are the different options we have.

604
00:27:42,440 --> 00:27:43,919
Speaker 1: Do you want to be investing in shares?

605
00:27:43,960 --> 00:27:45,280
Speaker 4: What does the future look like.

606
00:27:45,359 --> 00:27:47,560
Speaker 1: We've just got a lot of strategy to sort out,

607
00:27:47,800 --> 00:27:50,960
Speaker 1: and then honestly, it takes hours for me to put

608
00:27:51,000 --> 00:27:54,040
Speaker 1: together a statement of advice. So a statement of advice

609
00:27:54,160 --> 00:27:56,960
Speaker 1: is an official document, our one in our office I

610
00:27:57,040 --> 00:27:59,920
Speaker 1: think usually sits between sixty five and eighty five page,

611
00:28:00,280 --> 00:28:03,280
Speaker 1: depending on what type of advice I'm giving. You know,

612
00:28:03,400 --> 00:28:05,680
Speaker 1: the more complex obviously, the more pages. But I don't

613
00:28:05,680 --> 00:28:07,680
Speaker 1: want you guys thinking it's just it's like LTT one

614
00:28:07,720 --> 00:28:11,920
Speaker 1: page that says hees inversting exercise, because that's not how

615
00:28:11,920 --> 00:28:15,480
Speaker 1: it works. Like, it's this really comprehensive document that compares

616
00:28:15,520 --> 00:28:18,199
Speaker 1: and contrasts every option and shows you exactly why the

617
00:28:18,240 --> 00:28:20,560
Speaker 1: option I'm putting on the table is the right option

618
00:28:20,680 --> 00:28:23,359
Speaker 1: for you so that you feel empowered. Honestly, a lot

619
00:28:23,400 --> 00:28:25,120
Speaker 1: of clients are just like V this is too much

620
00:28:25,160 --> 00:28:27,359
Speaker 1: to read. Please tell me what the outcome is. I

621
00:28:27,400 --> 00:28:29,679
Speaker 1: will look at that later and it makes sense. But

622
00:28:29,800 --> 00:28:33,800
Speaker 1: these things honestly take hours. Then there's implementation, so I

623
00:28:33,840 --> 00:28:35,960
Speaker 1: actually then have to go and set it up. And

624
00:28:36,080 --> 00:28:40,760
Speaker 1: accessibility of platforms that are available to financial advisors isn't

625
00:28:40,800 --> 00:28:44,320
Speaker 1: available to you, Jess, so it does require different setups.

626
00:28:44,360 --> 00:28:47,160
Speaker 1: And let's be honest, the financial advice industry is also

627
00:28:47,200 --> 00:28:49,600
Speaker 1: a little bit backwards. That's why I can't use a Mac.

628
00:28:49,960 --> 00:28:52,080
Speaker 1: Do you know that half of the financial advice software

629
00:28:52,080 --> 00:28:53,080
Speaker 1: is don't work on Max?

630
00:28:53,240 --> 00:28:57,520
Speaker 4: Really? So rude? Cool goal, Yess? Yes, cool girl. I'm

631
00:28:57,520 --> 00:28:58,240
Speaker 4: not a cool girl.

632
00:28:58,560 --> 00:29:01,800
Speaker 1: But I have to go and implement all of those things.

633
00:29:02,000 --> 00:29:05,520
Speaker 1: I also have to get paperwork signed and submitted and

634
00:29:05,640 --> 00:29:08,440
Speaker 1: organized because like due diligence. But it's one of those

635
00:29:08,480 --> 00:29:11,160
Speaker 1: things where I don't think people understand how long it takes.

636
00:29:11,600 --> 00:29:12,480
Speaker 4: But do you know what.

637
00:29:12,480 --> 00:29:16,320
Speaker 1: Robo advice has done, Jess, What's automated my job? So

638
00:29:16,800 --> 00:29:20,480
Speaker 1: I'm not mad, I'm just a little envious that when

639
00:29:20,520 --> 00:29:22,920
Speaker 1: it comes to robo advice. Obviously, you're not getting that

640
00:29:23,040 --> 00:29:25,120
Speaker 1: holistic advice. You're not going to go sit down with

641
00:29:25,160 --> 00:29:27,240
Speaker 1: a financial advisor and talk about your goals and values

642
00:29:27,280 --> 00:29:29,080
Speaker 1: and help sort those out, because you're going to have

643
00:29:29,120 --> 00:29:31,120
Speaker 1: to know what your goals and your values are before

644
00:29:31,160 --> 00:29:33,080
Speaker 1: you go. And they're not going to talk to you

645
00:29:33,120 --> 00:29:35,200
Speaker 1: about insurance needs and they're not going to talk about

646
00:29:35,200 --> 00:29:38,000
Speaker 1: superanuation because to be honest, those two things are way

647
00:29:38,000 --> 00:29:41,880
Speaker 1: too complicated at the moment for me to even comprehend

648
00:29:42,000 --> 00:29:44,920
Speaker 1: an algorithm doing it. But if you were seeing a

649
00:29:44,920 --> 00:29:49,000
Speaker 1: financial advisor just for investing, this is what robo advisors do.

650
00:29:49,440 --> 00:29:52,400
Speaker 1: It's automating that entire process, so that fact find meeting

651
00:29:52,400 --> 00:29:55,240
Speaker 1: and that risk profile that you do and the strategy

652
00:29:55,240 --> 00:29:58,720
Speaker 1: it's all done in the background. And most robo advice

653
00:29:58,760 --> 00:30:01,280
Speaker 1: platforms do that for fe free, like the statement of

654
00:30:01,320 --> 00:30:04,600
Speaker 1: advice is free, and you only start paying once you

655
00:30:04,680 --> 00:30:08,640
Speaker 1: start actually implementing that advice, which I think is quite

656
00:30:08,680 --> 00:30:13,960
Speaker 1: accessible in comparison. The thing that frustrates me about these comparisons, though,

657
00:30:14,360 --> 00:30:15,920
Speaker 1: is so many times and you would have seen it

658
00:30:15,960 --> 00:30:19,840
Speaker 1: in the community, Jess, people go, oh my gosh, robo

659
00:30:19,840 --> 00:30:22,760
Speaker 1: advice so much more expensive the micro investing and you

660
00:30:22,800 --> 00:30:24,520
Speaker 1: want to kind of go or I want to kind

661
00:30:24,520 --> 00:30:24,680
Speaker 1: of go.

662
00:30:24,800 --> 00:30:26,600
Speaker 4: No, Like it's completely different.

663
00:30:26,640 --> 00:30:30,479
Speaker 1: It's like comparing apples with oranges because you're just dumping

664
00:30:30,520 --> 00:30:33,720
Speaker 1: your money into something on a micro investing platform, whereas

665
00:30:33,720 --> 00:30:36,719
Speaker 1: with robo advice, you've got that full piece of advice,

666
00:30:36,800 --> 00:30:39,640
Speaker 1: you get a statement of advice, but then on the

667
00:30:39,720 --> 00:30:43,080
Speaker 1: back end, there are actual people doing actual work to

668
00:30:43,120 --> 00:30:45,400
Speaker 1: make sure your portfolio is doing the right thing, to

669
00:30:45,440 --> 00:30:48,040
Speaker 1: make sure it is aligning to the performance that is expected.

670
00:30:48,320 --> 00:30:51,920
Speaker 1: They will rebalance your portfolio. So rebalancing your portfolio is

671
00:30:51,960 --> 00:30:55,800
Speaker 1: incredibly important because over time, you will have different weights

672
00:30:55,800 --> 00:30:58,480
Speaker 1: of different assets in your portfolio and you need to

673
00:30:58,520 --> 00:31:00,800
Speaker 1: make sure they're even and aligne into your goals and

674
00:31:00,880 --> 00:31:03,240
Speaker 1: values depending on what your risk profile is, and that

675
00:31:03,280 --> 00:31:06,640
Speaker 1: can actually be quite complex. But all of that is

676
00:31:06,720 --> 00:31:09,840
Speaker 1: done for you with a robo investing platform, so you're

677
00:31:09,920 --> 00:31:12,800
Speaker 1: able to access things like ETFs and a portfolio that

678
00:31:12,880 --> 00:31:16,840
Speaker 1: is recommended by that statement of advice while having all

679
00:31:16,840 --> 00:31:19,360
Speaker 1: of the back end support. So it can be kind

680
00:31:19,400 --> 00:31:21,400
Speaker 1: of like the step up for people who are like

681
00:31:21,720 --> 00:31:24,800
Speaker 1: I am not interested in DII share trading.

682
00:31:25,200 --> 00:31:28,320
Speaker 4: Not for me. Some people absolutely adore it. I totally

683
00:31:28,400 --> 00:31:28,719
Speaker 4: get it.

684
00:31:29,080 --> 00:31:31,480
Speaker 1: Robo advice is that step up which is kind of

685
00:31:31,520 --> 00:31:35,120
Speaker 1: giving you advice but not being prohibitive on cost.

686
00:31:35,400 --> 00:31:38,520
Speaker 3: So what does that cost look like for robo investing platforms?

687
00:31:38,760 --> 00:31:42,360
Speaker 1: So it can range, but it's usually anywhere between six

688
00:31:42,440 --> 00:31:45,320
Speaker 1: dollars twenty five and maybe like ten dollars a month,

689
00:31:45,400 --> 00:31:48,240
Speaker 1: depending on what platform you choose and how that works.

690
00:31:48,480 --> 00:31:52,240
Speaker 1: There are a few platforms in circulation. So there's stock Spot,

691
00:31:52,240 --> 00:31:54,080
Speaker 1: which you might have heard of before. There's six park

692
00:31:54,120 --> 00:31:56,080
Speaker 1: which you've probably heard of before because we do have

693
00:31:56,120 --> 00:31:58,600
Speaker 1: an affiliation with them, which means that we have those

694
00:31:58,640 --> 00:32:01,160
Speaker 1: shees on the money six Parker. To go back to

695
00:32:01,200 --> 00:32:04,160
Speaker 1: the question you are actually asking, yess, it is definitely

696
00:32:04,240 --> 00:32:06,920
Speaker 1: higher than a micro investing platform, which you can access

697
00:32:06,960 --> 00:32:09,440
Speaker 1: for about three dollars fifty a month. Please do remember though,

698
00:32:09,440 --> 00:32:11,680
Speaker 1: that if you're paying for advice fees, so like robo

699
00:32:11,760 --> 00:32:15,600
Speaker 1: advice fees or financial advice fees or even your microinvesting

700
00:32:15,920 --> 00:32:18,720
Speaker 1: like fees that you pay, it's all claimable and tax

701
00:32:18,960 --> 00:32:22,080
Speaker 1: So definitely write that one down for JUNI three. But

702
00:32:22,400 --> 00:32:24,840
Speaker 1: I think it is kind of as a financial advisor

703
00:32:24,880 --> 00:32:27,960
Speaker 1: a little bit frustrating when people compare a micro investing

704
00:32:28,000 --> 00:32:31,520
Speaker 1: platform to a platform that you know does so much

705
00:32:31,560 --> 00:32:34,080
Speaker 1: more and is actually a very different offering. And I mean,

706
00:32:34,120 --> 00:32:37,240
Speaker 1: you guys go mass investing Victoria and I'm like, no,

707
00:32:37,320 --> 00:32:37,640
Speaker 1: it's not.

708
00:32:37,760 --> 00:32:38,760
Speaker 4: It's so different.

709
00:32:38,920 --> 00:32:41,320
Speaker 1: And the important thing I would be taking into consideration

710
00:32:41,400 --> 00:32:44,920
Speaker 1: there when it comes to robo advice is the background information.

711
00:32:45,360 --> 00:32:49,400
Speaker 1: So I really believe in automating processes that can be automated, right, Like,

712
00:32:49,640 --> 00:32:52,360
Speaker 1: the less work I am doing day to day on

713
00:32:52,440 --> 00:32:54,560
Speaker 1: the things that can be automated, the more time I

714
00:32:54,640 --> 00:32:56,600
Speaker 1: have to spend all my clients and their goals and

715
00:32:56,640 --> 00:32:59,480
Speaker 1: their values and maintaining those relationships and making sure that

716
00:32:59,520 --> 00:33:01,640
Speaker 1: you are doing exactly what you said you were going

717
00:33:01,680 --> 00:33:05,240
Speaker 1: to do, right. And if the fact find process, which,

718
00:33:05,240 --> 00:33:07,200
Speaker 1: to be honest, is a big survey that we go

719
00:33:07,320 --> 00:33:09,720
Speaker 1: through and I collect all the information about you the

720
00:33:09,880 --> 00:33:13,280
Speaker 1: risk profile, which, again, to be honest, I do do

721
00:33:13,360 --> 00:33:17,240
Speaker 1: this big risk profile. But again I'm manually calculated. If

722
00:33:17,280 --> 00:33:20,200
Speaker 1: all of that can be automated and we can create

723
00:33:20,280 --> 00:33:24,560
Speaker 1: an algorithm that spits out advice, it's probably smarter than me.

724
00:33:24,720 --> 00:33:28,000
Speaker 1: Like like, no room for human error, No room for

725
00:33:28,080 --> 00:33:30,840
Speaker 1: human error there. But when you flip to the back end.

726
00:33:30,960 --> 00:33:33,720
Speaker 1: That's when I think it's really important to consider what

727
00:33:33,760 --> 00:33:35,720
Speaker 1: that type of follow up looks like, like are you

728
00:33:35,760 --> 00:33:37,680
Speaker 1: going to have access to people? Are you going to

729
00:33:37,760 --> 00:33:40,840
Speaker 1: have a supportive community behind you if you're joining something

730
00:33:41,000 --> 00:33:43,920
Speaker 1: like this. And something else that's important to consider is

731
00:33:43,960 --> 00:33:46,960
Speaker 1: do they actually have like some kind of investment committee

732
00:33:47,200 --> 00:33:50,520
Speaker 1: or some kind of human overlay over the top of

733
00:33:50,560 --> 00:33:54,760
Speaker 1: an algorithm, Because an algorithm is really smart, but you

734
00:33:54,920 --> 00:33:57,760
Speaker 1: do need to still have that level of human interaction

735
00:33:57,880 --> 00:34:00,240
Speaker 1: and human nouse that I don't believe in Algornith Rhythm

736
00:34:00,320 --> 00:34:03,080
Speaker 1: has nailed on the head yet. So if you look

737
00:34:03,120 --> 00:34:06,240
Speaker 1: at it, you go, all right, well an algorithm could

738
00:34:06,280 --> 00:34:09,000
Speaker 1: solve it. And some robo advice platforms are one thousand

739
00:34:09,040 --> 00:34:12,919
Speaker 1: percent algorithm. There's no room for human intervention at all.

740
00:34:13,320 --> 00:34:16,840
Speaker 1: And some other platforms actually have that automated process of

741
00:34:16,920 --> 00:34:20,239
Speaker 1: the statement of advice and the implementation process. But once

742
00:34:20,239 --> 00:34:22,600
Speaker 1: you're there and invested, they have an investment committee that

743
00:34:22,640 --> 00:34:25,279
Speaker 1: oversees all of the investment in addition to making sure

744
00:34:25,320 --> 00:34:26,960
Speaker 1: that they're doing the right thing. So for me, it's

745
00:34:27,000 --> 00:34:29,040
Speaker 1: about just working out what aligns to your values and

746
00:34:29,080 --> 00:34:32,359
Speaker 1: really understanding and comparing and contrasting platforms to go, well,

747
00:34:32,400 --> 00:34:34,440
Speaker 1: which one would I be the most comfortable on if

748
00:34:34,520 --> 00:34:35,840
Speaker 1: I'm asking for advice?

749
00:34:36,080 --> 00:34:38,840
Speaker 3: Last question on robo advice, what is the barrier to

750
00:34:38,960 --> 00:34:41,160
Speaker 3: entry on those kinds of platform because if you're getting

751
00:34:41,160 --> 00:34:43,279
Speaker 3: that level of advice, I'm assuming it's going to be

752
00:34:43,360 --> 00:34:44,480
Speaker 3: a little pricier.

753
00:34:44,320 --> 00:34:47,680
Speaker 1: Yes, but it's not just price, it's actually accessibility. So

754
00:34:47,920 --> 00:34:51,200
Speaker 1: robo advice platforms, because they do have that level of

755
00:34:51,239 --> 00:34:54,560
Speaker 1: diversification that they would need to achieve and they are

756
00:34:54,680 --> 00:34:58,120
Speaker 1: putting you into a portfolio and providing advice, the entry

757
00:34:58,160 --> 00:34:59,960
Speaker 1: point is a lot higher, so it's not going to

758
00:35:00,080 --> 00:35:01,640
Speaker 1: cost you more, but you would have to have a

759
00:35:01,640 --> 00:35:05,160
Speaker 1: bigger initial investment, and most of them started about two

760
00:35:05,160 --> 00:35:07,799
Speaker 1: thousand dollars for like a more limited profile, and then

761
00:35:07,880 --> 00:35:10,680
Speaker 1: five thousand dollars for a very comprehensive profile. So it

762
00:35:10,760 --> 00:35:14,839
Speaker 1: definitely requires a bigger upfront investment. But it's also about well,

763
00:35:14,840 --> 00:35:17,000
Speaker 1: what's going to suit your situation, Jess, Like what do

764
00:35:17,040 --> 00:35:19,040
Speaker 1: you actually want to do and where are we actually

765
00:35:19,080 --> 00:35:21,160
Speaker 1: going with this? And then I guess to compare and

766
00:35:21,200 --> 00:35:25,640
Speaker 1: contrast that to a financial advisor, similar things happen as well,

767
00:35:25,760 --> 00:35:26,120
Speaker 1: got it?

768
00:35:26,239 --> 00:35:29,880
Speaker 3: So I guess to summarize, micro investing platforms really low

769
00:35:29,960 --> 00:35:32,520
Speaker 3: barrier to entry, probably not going to sit there forever

770
00:35:32,600 --> 00:35:35,520
Speaker 3: because you can't make those dividend payments that set you

771
00:35:35,600 --> 00:35:38,040
Speaker 3: up to kind of make passive income the way we all.

772
00:35:38,000 --> 00:35:39,520
Speaker 1: Dream of is that what you got out of what

773
00:35:39,560 --> 00:35:41,680
Speaker 1: I said, because like that's a better summary. Just like

774
00:35:41,719 --> 00:35:44,399
Speaker 1: cut everything I said earlier and drop that in thank you.

775
00:35:44,400 --> 00:35:47,560
Speaker 3: Welcome to my podcast. So share trading platforms. Barrier to

776
00:35:47,640 --> 00:35:49,480
Speaker 3: entry varies. It can be as little as one cent,

777
00:35:49,520 --> 00:35:51,320
Speaker 3: like our friends at Chairs's, or it can be slightly

778
00:35:51,440 --> 00:35:54,760
Speaker 3: higher for different platforms. Great for the long term because

779
00:35:54,800 --> 00:35:57,800
Speaker 3: you can get that dividend yield and set yourself up. However,

780
00:35:57,920 --> 00:36:01,239
Speaker 3: you're taking on more responsibility personally because you're the one

781
00:36:01,280 --> 00:36:02,200
Speaker 3: selecting your shaft.

782
00:36:02,320 --> 00:36:05,359
Speaker 4: I'm responsible, gal Jess Grici one hundred percent.

783
00:36:05,400 --> 00:36:06,799
Speaker 3: You are, but it means that you have to make

784
00:36:06,840 --> 00:36:08,880
Speaker 3: sure that you're diversified and that it's in line with

785
00:36:08,920 --> 00:36:12,120
Speaker 3: your values and all of those other fun things. Robo

786
00:36:12,200 --> 00:36:15,400
Speaker 3: investing means that that responsibility is off of you. Somebody

787
00:36:15,400 --> 00:36:18,080
Speaker 3: else is making those decisions, or maybe it's you know,

788
00:36:18,120 --> 00:36:19,440
Speaker 3: an algorithm, not a person.

789
00:36:19,560 --> 00:36:22,759
Speaker 4: It's an algorithm. I'm trusting the algorithm.

790
00:36:22,239 --> 00:36:25,279
Speaker 1: Though, Like I feel like everybody is so skeptical, and

791
00:36:25,320 --> 00:36:29,040
Speaker 1: that's cause old fuddy duddy financial advisors are skeptical because

792
00:36:29,080 --> 00:36:30,680
Speaker 1: they don't want their jobs taken from them.

793
00:36:31,000 --> 00:36:31,319
Speaker 4: That's me.

794
00:36:31,480 --> 00:36:33,759
Speaker 1: I will do an entire podcast on the industry at

795
00:36:33,840 --> 00:36:36,440
Speaker 1: some point. I won't be making friends in that episode,

796
00:36:36,440 --> 00:36:38,880
Speaker 1: that's for sure. But I just have this idea that

797
00:36:39,040 --> 00:36:41,359
Speaker 1: like automation is the way of the future, and if

798
00:36:41,360 --> 00:36:43,520
Speaker 1: we can embrace it as advisors, we can lower the

799
00:36:43,560 --> 00:36:46,040
Speaker 1: cost of advice in general. Like imagine if we can

800
00:36:46,080 --> 00:36:48,719
Speaker 1: get to a point where everybody's sitting on some kind

801
00:36:48,760 --> 00:36:51,160
Speaker 1: of robo advice platform and we know that the investing

802
00:36:51,200 --> 00:36:53,960
Speaker 1: stuff is just ticking along really well, so I can

803
00:36:54,000 --> 00:36:55,960
Speaker 1: focus on like goal setting with you, and I can

804
00:36:55,960 --> 00:36:59,160
Speaker 1: focus on actually achieving things and changing your money mindset,

805
00:36:59,160 --> 00:37:00,640
Speaker 1: which I think is so much more important.

806
00:37:00,680 --> 00:37:03,920
Speaker 3: So those robo investing platforms like six Park or stock Spot,

807
00:37:04,280 --> 00:37:06,799
Speaker 3: they've got the algorithm ticking away doing work for you.

808
00:37:06,840 --> 00:37:08,680
Speaker 3: Maybe there's a person on the back end keeping it

809
00:37:08,719 --> 00:37:11,160
Speaker 3: in check. Maybe there's not, but it's a much higher

810
00:37:11,200 --> 00:37:13,760
Speaker 3: barrier to entry because you have a higher minimum investment

811
00:37:13,880 --> 00:37:16,279
Speaker 3: and generally higher fees. Yes, did I get it all?

812
00:37:16,360 --> 00:37:17,959
Speaker 4: I think you've got it all. I think we're done

813
00:37:17,960 --> 00:37:18,400
Speaker 4: for today.

814
00:37:18,440 --> 00:37:20,160
Speaker 1: Do you want to read out the disclaimer to say

815
00:37:20,200 --> 00:37:22,359
Speaker 1: that I am a legit financial advisor and charge lots

816
00:37:22,360 --> 00:37:23,800
Speaker 1: of money if you came to see me personally.

817
00:37:23,920 --> 00:37:25,840
Speaker 3: Oh, if you insist, I try really hard.

818
00:37:25,880 --> 00:37:26,320
Speaker 1: Guys.

819
00:37:26,680 --> 00:37:28,719
Speaker 3: Don't forget guys. The advice shared on She's on the

820
00:37:28,719 --> 00:37:32,200
Speaker 3: Money is generally nature and does not consider your individual circumstances.

821
00:37:32,320 --> 00:37:34,760
Speaker 3: She's on the money if it's purely for educational purposes

822
00:37:34,760 --> 00:37:36,800
Speaker 3: and should not be relied upon to make an investment

823
00:37:36,920 --> 00:37:40,160
Speaker 3: or a financial decision. And victoria divine and she's on

824
00:37:40,200 --> 00:37:40,960
Speaker 3: the money? Is it all?

825
00:37:41,480 --> 00:37:42,200
Speaker 4: That's shiny?

826
00:37:42,360 --> 00:37:46,680
Speaker 3: So fancy is an authorized representative of Infocused Securities Australia

827
00:37:46,680 --> 00:37:50,480
Speaker 3: Proprietary Limited ABN four seven nine seven seven nine seven

828
00:37:50,719 --> 00:37:53,640
Speaker 3: four nine AFSL two three six five two three.

829
00:37:53,680 --> 00:37:54,960
Speaker 4: We'll see you all on Friday.

830
00:37:55,080 --> 00:38:02,600
Speaker 3: See you then, guys. Byeected day