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Speaker 1: My name is Tatasha Bamblet. I'm a proud First Nations

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Speaker 1: woman and I'm here to acknowledge country t Glenn Young

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Speaker 1: Ganya Niana Kaka yah Ya bin ahaka nian Arka in

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Speaker 1: Mbina yak um jar Dominyama Umagahawakawaman damon imlan Bumba bang

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Speaker 1: Gadabomba in and now in wakah ghana on yakraum jar Watnadaa. Hello,

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Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.

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Speaker 1: We thank I acknowledge and respect the Abiginal people's land

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Speaker 1: that we're gathering on today. Take pleasure in all the

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Speaker 1: land and respect all that you see. She's on the

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Speaker 1: Money podcast acknowledges culture, country, community and connections, bringing you

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Speaker 1: the tools, knowledge and resources for you to thrive.

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Speaker 2: She's on the Money.

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Speaker 3: She's on the Money. Hello and welcome to Shes on

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Speaker 3: the Money, the podcast that's here to show you that

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Speaker 3: investing is not just for the rich, it's for you too,

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Speaker 3: And just because it's for you doesn't mean you're expected

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Speaker 3: to know everything already. Wanting to build wealth through investing

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Speaker 3: and still having questions is totally normal, and that's exactly

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Speaker 3: why we're here today. I'm Jess Ricky, and with me

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Speaker 3: is a woman who has helped thousands of our community

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Speaker 3: change their financial futures by investing in the share market.

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Speaker 3: Queen Victoria Divine.

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Speaker 4: I am so excited because I get another investing episode,

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Speaker 4: but this time it's with you. You've replaced Beck, and like,

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Speaker 4: that's fun. Not replaced Beck Scott of soul Foot couldn't

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Speaker 4: come in and I was like, would you like to

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Speaker 4: do an investing episode? And you said say less?

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Speaker 3: Sending thoughts and press to Beck, but honestly thrilled to.

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Speaker 4: Be sorry, sorry about your foot anyway, let me out. Well,

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Speaker 4: you obviously already know that investing is one of my

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Speaker 4: favorite topics to yap about so much so I've dedicated hundreds,

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Speaker 4: actually thousands of hours to this podcast. But understandably, you

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Speaker 4: guys still have questions, and guys, I get it, I

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Speaker 4: still have answers. I'm not done.

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Speaker 3: You know.

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Speaker 4: When people are like answered that before, I'm like, I

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Speaker 4: am like a goldfish, can't remember if I did anyway,

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Speaker 4: So we'll just do it again. So every now and

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Speaker 4: then I like to hand the podcast over to you,

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Speaker 4: our incredible community, and let you ask the biggest questions

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Speaker 4: that are on your mind, and this time it's all

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Speaker 4: about investing, because if you're wondering about something, and I

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Speaker 4: hate how, especially as women, we often preface it with like,

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Speaker 4: oh my god, this might be a silly question, but

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Speaker 4: like girl, it's not because there are probably hundreds of

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Speaker 4: other people thinking exactly the same thing.

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Speaker 2: You were.

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Speaker 3: Absolutely and we got so many really fantastic questions. And

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Speaker 3: the one that I pulled out to start with is

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Speaker 3: one that I feel like a lot of the community

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Speaker 3: have mentioned to us before or might be thinking themselves,

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Speaker 3: and that is victoria. If I only have ten dollars

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Speaker 3: a week to invest, is it even still worth it?

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Speaker 4: Yes? And that's the end of the podcast. Thanks listen,

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Speaker 4: everybody having a day? Yes, like a thousand times Yes.

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Speaker 4: I can't begin to tell you how much. It's not

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Speaker 4: about the ten dollars. Like, if you've got ten dollars money,

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Speaker 4: when you've got some free cash flow in this economy,

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Speaker 4: that is a flex. But then on top of that,

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Speaker 4: it's about setting up your habits and your intention and

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Speaker 4: getting the ball rolling. Because if ten dollars doesn't feel

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Speaker 4: scary and you're investing that and you're like, well, girl,

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Speaker 4: that's because that's all I can afford. Fantastic, But what

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Speaker 4: if you then have twenty dollars and you've been experiencing

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Speaker 4: the sheer market for the last year or two, and

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Speaker 4: you're like, well, I love it. I've been watching it

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Speaker 4: come up, I've been watching it go down. I've been

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Speaker 4: on the journey, and I feel really confident that twenty

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Speaker 4: dollars isn't going to feel scary, the next fifty dollars

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Speaker 4: isn't going to feel scary. Everything is going to start,

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Speaker 4: you know, not being overwhelming. And it's like, you know

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Speaker 4: how people say, oh, you learn the most on the job,

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Speaker 4: same thing happens in the investing world. You can study

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Speaker 4: till your heart's content, go do a finance degree. You

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Speaker 4: could go and watch every single investing video on YouTube

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Speaker 4: and still not feel prepared because you've probably given yourself

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Speaker 4: analysis paralysis. What we should have done is play with

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Speaker 4: ten bucks.

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Speaker 3: Yeah, And it's having those habits set up is like

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Speaker 3: the hardest thing for a lot of people, right, Like

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Speaker 3: getting the habit going and sticking to it.

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Speaker 4: Yeah, and then once you stick to it, like I'm

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Speaker 4: not gonna lie, it's like a gateway. You will become

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Speaker 4: addicted to it and then we'll all be filthy rich.

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Speaker 4: And I am hoping that when we're like in our sixties, Jess,

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Speaker 4: I still get to do this as a job. That

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Speaker 4: would be very cool. But all of you listening today

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Speaker 4: owe me a coffee. So I do not want to

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Speaker 4: go to a cafe when I'm sixty five and be like, oh,

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Speaker 4: I'm paying for my own coffee. You'll be like, oh,

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Speaker 4: I owe you a coffee. I'm filthy rich now to

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Speaker 4: be like sligh.

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Speaker 3: Yeah, it's like compact interest coming in hot.

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Speaker 4: Yeah, Like I'm getting paid in coffee for this the dream.

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Speaker 3: Now that we've cleared that one up, I wanted to

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Speaker 3: move on to the next question because when we pulled

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Speaker 3: the community last year about what was stopping people from investing,

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Speaker 3: this one came up a lot, which is people are

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Speaker 3: feeling confused and even scared of the tax implications and

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Speaker 3: the records that they have to keep. So can you

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Speaker 3: take us through the situations where you would have to

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Speaker 3: pay tax on an investment and how much extra work

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Speaker 3: that might look like for us at tax time?

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Speaker 4: Yeah, okay, So I'm going to simplify it and say

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Speaker 4: tax is very easy. And I don't mean that in

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Speaker 4: a condescending way because you're like, oh, I asked, because

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Speaker 4: it's not easy. But we only pay tax on money

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Speaker 4: that we have earned. Yeah, right, So every single dollar

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Speaker 4: that you earn in Australia you are going to pay

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Speaker 4: tax on. That is just how it works. We can't

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Speaker 4: get out of it. That tax is going to be

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Speaker 4: at your marginal tax rate. So it will depend how

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Speaker 4: much money you are earning. But jess, if you've already

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Speaker 4: earned the money and it's in your account, and say

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Speaker 4: you've got I'm going to use a round number here,

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Speaker 4: so you've got like a thousand dollars, I really want

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Speaker 4: to invest that amount And you go, oh, but I'm

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Speaker 4: so worried about the tax implications of that, Like what's

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Speaker 4: that going to look like a year from now? Is

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Speaker 4: my tax return going to look like? Well, just that

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Speaker 4: thousand dollars already came into your account. You already paid

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Speaker 4: tax on it, right, Yes, So if you invested it

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Speaker 4: and it didn't make a dollar, you owe nothing. Love

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Speaker 4: that you own not one thing. If you invested and

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Speaker 4: your asset grows in value, you do not owe much

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Speaker 4: because at the end of the day, did you receive

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Speaker 4: any income Jess, No, But if your thousand dollars gets

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Speaker 4: invested and you've got a ten percent return, money win,

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Speaker 4: you've made one hundred dollars. The taxman is then going

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Speaker 4: to go how much did you earn from your share

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Speaker 4: portfolio this year? And you go, well, now it's worth

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Speaker 4: eleven hundred dollars And that might feel overwhelming, But the

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Speaker 4: taxable component is the one hundred dollars that you made

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Speaker 4: and you probably are on. And I'm going to take

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Speaker 4: a stab in the dark and say you're probably on

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Speaker 4: a marginal tax rate of thirty percent. And the reason

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Speaker 4: I say that is because most of our community are.

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Speaker 4: We survey you guys all the time. It's the average

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Speaker 4: marginal tax rate in Australia. Thirty percent of the one

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Speaker 4: hundred dollars you made is thirty dollars on your eleven

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Speaker 4: hundred dollar portfolio made seventy bucks money when you pay

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Speaker 4: thirty to the taxman and you're still ahead. We only

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Speaker 4: pay tax when we make money. You're never going to

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Speaker 4: pay tax just because you invested. You're only ever going

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Speaker 4: to pay tax on the money that you made.

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Speaker 3: And for clarity for the listeners, when you're saying when

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Speaker 3: you made that hundred dollars, you're talking about that being

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Speaker 3: paid out to you as a dividend, right, not your

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Speaker 3: share just going up into value.

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Speaker 4: Yeah, because like you only have to pay tax on

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Speaker 4: money that hits your account. So like if it increased

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Speaker 4: in value tomorrow, So say you have a thousand dollars

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Speaker 4: worth of shares and the share market skyrockets, sexy love

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Speaker 4: that it's worth fifteen hundred dollars tomorrow you wake up

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Speaker 4: and you're like, Okay, thank you. That's only what it's worth.

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Speaker 4: You don't have that money in your hot little hands. Yeah,

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Speaker 4: you could cash it out, and at that point the

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Speaker 4: taxman will be like, I see you've got some cash

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Speaker 4: in your hot little hands. We need to pay tax

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Speaker 4: because that's income. But just because it's worth more doesn't

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Speaker 4: mean we pay more.

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Speaker 2: Yeah.

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Speaker 4: So that's where and I'll go down a rabbit hole

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Speaker 4: another time, but that's where there's a very big difference.

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Speaker 4: And we actually recorded an episode recently talking about like

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Speaker 4: different investment strategies and how some people are growth investors

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Speaker 4: because that minimizes tax, and some people are dividend investors

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Speaker 4: because they want the money to then reinvest and get

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Speaker 4: more shares. But other people are like, no, I would

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Speaker 4: really like to own this particular share because I see

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Speaker 4: a lot of trajectory in it. I'm not going to

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Speaker 4: have to pay any tax if it just increases in value. Yeah,

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Speaker 4: so it really depends. And I feel like you think

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Speaker 4: it's so much extra work and you don't have to

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Speaker 4: do the calculations. So like if you're on shares is,

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Speaker 4: for example, come tax time, they're going to send you

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Speaker 4: your tax statement. And yes, it's not going to come

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Speaker 4: on the thirtieth of June because they get all of

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Speaker 4: their numbers on the thirtieth of June two and then

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Speaker 4: all of their accountants go back and do all of

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Speaker 4: the maths for you and then send out a tax

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Speaker 4: payment to say, hey, Jess, here's a summary of your

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Speaker 4: investment portfolio over the last twelve months. And you say thanks.

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Speaker 4: You don't even have to read it, Like I would

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Speaker 4: love for you to read it, but you don't even

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Speaker 4: have to read it. But that's the document you give

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Speaker 4: to your accountant, or that's the document you upload to

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Speaker 4: the eight. It's very simple, it's really easy.

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Speaker 3: There's a section if you're doing your own tax there

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Speaker 3: is literally a section for investment income. So yeah, you

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Speaker 3: has shares and you go yes, yeah, So it's really

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Speaker 3: really straightforward. I feel like that shouldn't be something that

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Speaker 3: really stops people from getting invested. And that leads to

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Speaker 3: the next question, which is what actually happens when you

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Speaker 3: sell a share.

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Speaker 4: Okay, so two things could happen. You could trigger a

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Speaker 4: capital gains tax event and that sounds terrifying, but it's not,

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Speaker 4: yes scary, or you could sell it at a loss.

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Speaker 4: So say we go and buy like a West Farmers share.

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Speaker 4: I believe a West Farmer share at this point in

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Speaker 4: times probably worth eighty bucks. It's been decreasing recently. I

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Speaker 4: own West Farmers. So I'm a little bit like salty

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Speaker 4: on at that moment because someone, excuse me, you were

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Speaker 4: doing so well and everyone's been raving about you. You've

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Speaker 4: been in my portfolio for years, really really good performer.

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Speaker 4: But if I went to sell some of those shares, yes,

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Speaker 4: they're going to look at it and go, well, how

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Speaker 4: much money are you making by realizing this gain? And

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Speaker 4: so if I sold one of the shares that I

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Speaker 4: perch just maybe five years ago, they're going to tax

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Speaker 4: me so that I pay tax on the income that

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Speaker 4: I derived. However, if I owned that share for less

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Speaker 4: than twelve months, I'm not going to get any type

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Speaker 4: of tax discount. So the Australian government is really trying

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Speaker 4: to encourage long term investing, not burn and churn, not crypto,

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Speaker 4: not any of that stuff. So they go, well, Jess,

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Speaker 4: what will happen is if you own a share for

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Speaker 4: more than twelve months and then you sell it, your

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Speaker 4: capital gains, so the capital gains that you acquired from

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Speaker 4: owning that share will give you a fifty percent tax deduction.

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Speaker 4: So you get fifty percent off if you hold it

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Speaker 4: for more than a year. But if you buy it

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Speaker 4: and then three months later sell it and you're flipping

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Speaker 4: back and forth and you're doing penny stock trading, yeah

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Speaker 4: we're going to charge you a bit more tax because

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Speaker 4: we actually don't want you doing that. So what happens

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Speaker 4: when you sell a share really simple. You would log

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Speaker 4: into whatever app you're on and you would hit the

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Speaker 4: button sell. Nothing would happen immediately. It's not like an

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Speaker 4: OSCO payment where you transfer cash to another account. What

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Speaker 4: happens is that triggers a sale and that sale has

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Speaker 4: to go through because if you're owning a share. We

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Speaker 4: now need the broker to sell the share and get

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Speaker 4: the money back themselves and then give the money to you.

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Speaker 4: And that takes on average about three business days. So

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Speaker 4: the first day, I always say, is the day that

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Speaker 4: you've triggered the sale and your broker's like, Okay, no worries,

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Speaker 4: I'll sell jess Is stuff. The next day that money

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Speaker 4: goes into your broker's account, Jess and they go, oh,

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Speaker 4: look at that, I've got that. I'll transfer that to Jess.

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Speaker 4: Because nothing is instant in the banking and finance. Well,

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Speaker 4: they don't get to play with OSCO. It's probably in

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Speaker 4: your account the next day. So that's what happens when

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Speaker 4: you sell a share.

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Speaker 3: Yeah. And then once you have that money, Am I

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Speaker 3: right in thinking that it is your responsibility to set

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Speaker 3: some money aside for the taxman? It's not done automatically

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Speaker 3: for you the way it would be done with your

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Speaker 3: PAYG salary.

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Speaker 4: Yes, absolutely, And I think that that's where we need

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Speaker 4: we get a little bit complicated, or we get a

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Speaker 4: little bit overwhelmed because we're like, but I want to

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Speaker 4: spend all of the money that comes into my account,

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Speaker 4: and that's where I always recommend not having your dividends

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Speaker 4: paid into your normal banking account. You have your dividends

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Speaker 4: paid into your investment account, which most platforms will have

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Speaker 4: you set up, or you can set up on your

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Speaker 4: own as a separate account, just so you can reserve

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Speaker 4: a little bit of cash.

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Speaker 3: Yeah.

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Speaker 4: Personally, I chuck that additional cash into my emergency fund

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Speaker 4: so that I've got a bit of more wiggle room

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Speaker 4: throughout the year, and then when it comes to tax time,

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Speaker 4: I will pull it back out of that and put

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Speaker 4: it somewhere else. Yeah. And also that fund is a

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Speaker 4: high interest savings account, because money should work for us.

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Speaker 3: Absolutely, it should NAVI. You've mentioned a few times lately

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Speaker 3: your Asia ETF closing.

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Speaker 4: I am my old stars.

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Speaker 3: Yeah, I'm not up with this. Can you explain to

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Speaker 3: me what happened?

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Speaker 4: So the company just decided that they didn't want to

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Speaker 4: have that ETF anymore, which is a very simple thing

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Speaker 4: that can happen. You might not love the idea of

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Speaker 4: getting cash back in your account, but that's basically what happened.

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Speaker 4: They said, Hey, we're closing this ETF. We're going to

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Speaker 4: sell down all of your shares by a particular date.

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Speaker 4: Let us know where you want us to put that money,

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Speaker 4: and then they gave me the money from that share

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Speaker 4: or from that ETF, and I just redistributed it into

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Speaker 4: my portfolio. It's the reality of owning an ETF, right,

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Speaker 4: they can go, we just don't want to do this

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Speaker 4: fund anymore. And the ETF that I owned was a

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Speaker 4: bit more niche so like not it was definitely more Reski.

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Speaker 4: But you're probably not going to see the same with

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Speaker 4: like a Vanguard high yield. Like a Vanguard's probably not

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Speaker 4: going to pull that stunt on you. But if they do,

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Speaker 4: it's actually not the end of the world, because you

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Speaker 4: can pick another ETF and redistribute the income that you've got. Yes,

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Speaker 4: you don't really want to have to do that, but

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Speaker 4: that's the reality of it. They sold it, I got

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Speaker 4: to sell down. I got a heap of cash put

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Speaker 4: into my investment account, and then I picked another ETF

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Speaker 4: to redistribute it to.

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Speaker 3: And in that instance it did that trigger a tax

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Speaker 3: payment for you, did you know? And that's why it

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Speaker 3: was really frustrating. But that's also why it's really important

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Speaker 3: to be well diversified. So for me personally, that was

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Speaker 3: never my main ETF. That was one that I liked

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Speaker 3: and I loved following. But I've talked about it before.

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Speaker 3: Most of my portfolio is made up of not fifty,

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Speaker 3: but like half half and then like some satellite stuff,

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Speaker 3: but half an Australian like a high growth Australian ETF,

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Speaker 3: and then half an international high growth ETF that is

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Speaker 3: mainly based out of America. And so I just sit

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Speaker 3: on those two and they are very big ETFs that

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Speaker 3: most of our community knows talks about investing themselves. And

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Speaker 3: then yeah, that was a smaller portion of it, so

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Speaker 3: it wasn't the end of the world. But again that's

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Speaker 3: why I'm a little bit more conservative, because I just

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Speaker 3: don't want to trigger a whole damn CGT event. No,

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Speaker 3: and that's so fair. Somebody else asked, if a share

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Speaker 3: or an ETF is performing badly, how do you know

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Speaker 3: when it is actually time to sell.

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Speaker 4: Yeah, I'm sitting on this at the moment, and you

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Speaker 4: are too. You're doing better than I am. Jess and

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Speaker 4: I own this share that paradim Yeah, paradigm, And that's

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Speaker 4: not a recommendation. In fact, it's a reverse recommendation because

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Speaker 4: we both bought it when it was much higher Jess.

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Speaker 4: It's actually a really interesting case study because I put

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Speaker 4: some cash into it and then stopped investing into it

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Speaker 4: because I just wanted some exposure to it and then

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Speaker 4: maintained my ETF portfolio and kept pouring cash into that,

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Speaker 4: whereas Jess, you were like, no, I'm just going to

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Speaker 4: be consistent with it, Like you didn't have the funds

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Speaker 4: at the time to drop the cash that I dropped

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Speaker 4: into it, So you just consistently invested and you're in

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Speaker 4: a better position than I am, which is a great

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Speaker 4: case study for time in the market, not timing the market.

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Speaker 4: I'm not saying I like put thousands and thousands and

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Speaker 4: thousands of dollars into this. This is just the example.

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Speaker 4: But both of us are looking at this going do

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Speaker 4: we believe in it?

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Speaker 1: Do we not?

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Speaker 4: But what we have to do is zoom out. So

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Speaker 4: if a share or ETF is performing badly when in doubt,

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Speaker 4: we zoom out and we first look at the market.

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Speaker 4: So what's the market doing, what's the whole economy doing.

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Speaker 4: What does the Australian economy look like? It's an Australian

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Speaker 4: share and then let's look at the like micro or

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Speaker 4: macro sorry economy that exists in, for example, for us,

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Speaker 4: the healthcare space. So Jess and I, we've got Paradigm,

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Speaker 4: it's in the healthcare space. What's happening there? Like, is

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Speaker 4: it on average? Yeah, actually it's pretty similar to what

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Speaker 4: health Like other health companies are overperforming, but like similar

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Speaker 4: ones to Paradigm, they're just tracking along the way ours

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Speaker 4: is and it's a bit annoying. Then we look at

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Speaker 4: the annual report and go, all right, well, what's going

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Speaker 4: on in the company. Is this performance because it's actually

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Speaker 4: a terrible company, or is this performance happening because like

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Speaker 4: something in the business is not getting passed through, or

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Speaker 4: maybe they've had a bad year, or maybe the cash

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Speaker 4: rate has impacted them, Like what's going on? Where do

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Speaker 4: we think that's going? And Jess, you and I we've

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Speaker 4: both read the annual reports, and we've both decided to

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Speaker 4: stay invested and not bullet this out of our portfolio

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Speaker 4: because we go, oh, we still kind of believe in it,

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Speaker 4: Like do I back it in? Yeah, we back it in.

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Speaker 4: But we back it in because we've been able to

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Speaker 4: do some deep dive research and realize, Okay, a lot

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Speaker 4: of the things that were meant to happen earlier because

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Speaker 4: of legislation and law, and you know they work in pharmaceuticals,

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Speaker 4: just hasn't been able to go through yet. But we

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Speaker 4: know in the background they're still working on it. So

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Speaker 4: we're happy with that. But on the flip side, if

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Speaker 4: something's performing badly and it's consistently performing badly and you're

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Speaker 4: seeing the rest of the market and similar companies do

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Speaker 4: really well when yours isn't, sit on it for a

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Speaker 4: little bit, have a think about it. We don't need

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Speaker 4: to be like trigger happy and be like sell sale, sell,

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Speaker 4: but I would consider how much value it's adding to

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Speaker 4: your portfolio and how much stress it's bringing you. Is

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Speaker 4: it better to pull it out and redistribute it into

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Speaker 4: something that you feel like is performing better or is

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Speaker 4: it better to sit on it and wait. It just depends,

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Speaker 4: like because for me on the flip side on paradigm,

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Speaker 4: I've lost a lot of money even if the annual

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Speaker 4: reports weren't amazed, because I don't have so much money

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Speaker 4: that it's going to impact my long term wealth. To

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Speaker 4: be honest, even if the annual reports were looking not

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Speaker 4: that great, I'd probably leave it there and hope that

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Speaker 4: something in the market happened, and then if it's Spike,

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Speaker 4: Dud'd sell it at that point because I'm just like,

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Speaker 4: I'm not willing to take that big of a loss.

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Speaker 4: I don't need that amount of cash right now. I'm

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Speaker 4: not stressed about it. Yeah, but you need to look

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Speaker 4: at like your emotions and the market and what that

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Speaker 4: looks like. I make a decision that's right for you,

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Speaker 4: Because for one person, selling that asset might be the

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Speaker 4: smartest thing because you just can't sleep. Another person like me, well,

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Speaker 4: I'm just gonna wait till it comes up a bit

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Speaker 4: because it would be nice to get some of my

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Speaker 4: money back.

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Speaker 3: You know. Yeah. I've only ever sold a share down once,

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Speaker 3: and when I did it, that was very much my philosophies.

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Speaker 3: I was like, oh, I would just like it to

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Speaker 3: come as close as possible to kind of my original

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Speaker 3: my money back. Yeah, And that's what I did, is

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Speaker 3: I kind of waited. I still sold it a loss,

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Speaker 3: but it was a very very minimal loss, and I

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Speaker 3: was like, well, at least I'm not going to pay

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Speaker 3: CDT on it. Yeah, and I'm me to lose a

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Speaker 3: nominal amount in the interest of them being able to

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Speaker 3: move it into something that I felt black was a

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Speaker 3: much better choice for me.

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Speaker 4: Yeah, and if you have a loss, you can actually

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Speaker 4: track that on your tax return and say, hey, I

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Speaker 4: lost money over here, and they'll counteract it on some

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Speaker 4: profits over there, so that then it all comes out

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Speaker 4: in the wash and you end up in a pretty

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Speaker 4: good tax position as well. So, yes, we don't want

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Speaker 4: to lose money, but if we are losing money, don't

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Speaker 4: lose sight of the forms and all of the admin

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Speaker 4: side of it, because I want to use that loss,

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Speaker 4: like I've already lost money, Lise, let me claim something back.

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Speaker 3: Yeah, make it work in your favor.

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Speaker 4: Abs orways.

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Speaker 3: Let's take a really quick break, because when we come back,

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Speaker 3: I've got some great questions about the strategy behind investing.

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Speaker 3: So don't go in where welcome back everybody. We are

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Speaker 3: just about it into the juicy part of investing and

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Speaker 3: the strategy behind it. And I thought a really good

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Speaker 3: place to start is with this question that someone submitted

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Speaker 3: they wanted to know is investing in one Australian ETF

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Speaker 3: and one international eating Yes enough.

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Speaker 4: It could be or it might not be. The answer

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Speaker 4: is actually not about strategy and the right thing to do,

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Speaker 4: but about you. Are you comfortable with that. Now, I

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Speaker 4: can't give you personal advice because I was a financial advisor.

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Speaker 4: I'm no longer a financial advisor, and I'm definitely not

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Speaker 4: your personal financial advisor, so I cannot give you personal advice. However,

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Speaker 4: I shared before a majority of my portfolio is to ETFs.

433
00:20:26,600 --> 00:20:28,160
Speaker 3: You should say that, and I do believe you said

434
00:20:28,160 --> 00:20:31,080
Speaker 3: that one was international and one was Australian.

435
00:20:31,320 --> 00:20:34,480
Speaker 4: I did, and I've always been really open and honest

436
00:20:34,480 --> 00:20:37,280
Speaker 4: about that. Will it stay that way forever? Like, I

437
00:20:37,359 --> 00:20:40,000
Speaker 4: don't know. Maybe I'll discover another ETF that I'm excited

438
00:20:40,000 --> 00:20:41,480
Speaker 4: about and want to add to the mix, and I'll

439
00:20:41,520 --> 00:20:45,160
Speaker 4: have three. So for me personally, I feel like it's enough.

440
00:20:45,240 --> 00:20:48,119
Speaker 4: I feel like we overcomplicate things I've said on the

441
00:20:48,200 --> 00:20:50,440
Speaker 4: podcast before. If we rewind and we go back to

442
00:20:50,520 --> 00:20:54,200
Speaker 4: like twenty eighteen twenty nineteen, when I was actively working

443
00:20:54,320 --> 00:20:57,840
Speaker 4: as a financial advisor, my portfolio looked very different. So

444
00:20:58,040 --> 00:21:00,720
Speaker 4: I worked in the high net welst base, so it

445
00:21:00,840 --> 00:21:04,080
Speaker 4: was investing millions for people, which feels very very bougie.

446
00:21:04,400 --> 00:21:08,480
Speaker 4: But what that gave me was exposure to talking to brokers.

447
00:21:08,600 --> 00:21:11,240
Speaker 4: Literally every day I would call people and be like, Hey,

448
00:21:11,320 --> 00:21:13,640
Speaker 4: tell me about the stock market, like, hey, what's going

449
00:21:13,680 --> 00:21:15,840
Speaker 4: on here? What are your predictions? I'd call, you know,

450
00:21:15,960 --> 00:21:19,480
Speaker 4: a different share trader and ask their predictions. I would like,

451
00:21:20,000 --> 00:21:22,520
Speaker 4: it was so fun, Jess, I miss it so so

452
00:21:22,760 --> 00:21:24,760
Speaker 4: much because it was just like all these people who

453
00:21:24,800 --> 00:21:28,400
Speaker 4: wanted to talk investing, like the people said literal job.

454
00:21:28,440 --> 00:21:31,200
Speaker 4: I would call like bdms from funds and be like, so,

455
00:21:31,359 --> 00:21:32,639
Speaker 4: what's up with your fund and they'd be like, oh

456
00:21:32,680 --> 00:21:35,359
Speaker 4: my gosh, girl, juice, so this company's moving here and

457
00:21:35,400 --> 00:21:37,639
Speaker 4: they're doing this anyway. It was very fun. But I

458
00:21:37,640 --> 00:21:41,240
Speaker 4: would spend forty hours a week plus, like obviously full

459
00:21:41,320 --> 00:21:45,640
Speaker 4: time just talking about investing and talking about like what's

460
00:21:45,680 --> 00:21:48,560
Speaker 4: going on in the market. And my share portfolio was

461
00:21:48,600 --> 00:21:51,639
Speaker 4: made up of I believe eight to twelve different individual shares,

462
00:21:52,280 --> 00:21:56,080
Speaker 4: so I was owning assets directly, and that was really

463
00:21:56,119 --> 00:21:58,719
Speaker 4: fun because obviously I was working with clients, and then

464
00:21:58,760 --> 00:22:00,399
Speaker 4: I was stealing all the advice I was giving to

465
00:22:00,440 --> 00:22:03,960
Speaker 4: clients and implementing it myself because like, sorry, you would too.

466
00:22:05,119 --> 00:22:07,880
Speaker 4: And then as I started to transition a bit more

467
00:22:07,960 --> 00:22:11,040
Speaker 4: into doing Sheese on the Money and I decided that

468
00:22:11,160 --> 00:22:15,200
Speaker 4: financial advice wasn't for me, Like loved financial advice, but sorry.

469
00:22:15,400 --> 00:22:16,919
Speaker 4: Someone asked me the other day, They're like, why did

470
00:22:16,960 --> 00:22:18,480
Speaker 4: you get out of it if you love it so much?

471
00:22:19,080 --> 00:22:21,080
Speaker 4: Because I could only see one hundred, two hundred and

472
00:22:21,119 --> 00:22:24,520
Speaker 4: twenty clients a year. I get to yap two thousands

473
00:22:24,560 --> 00:22:28,280
Speaker 4: of women and changed thousands of women's financial situations through

474
00:22:28,359 --> 00:22:32,200
Speaker 4: the podcast, and I'm so impact driven. That's what I

475
00:22:32,280 --> 00:22:34,480
Speaker 4: want to do instead. So whilst I missed there like

476
00:22:34,720 --> 00:22:37,000
Speaker 4: one on one because it was really cool and you know,

477
00:22:37,160 --> 00:22:40,920
Speaker 4: being in the needy gritty, I also just go I've

478
00:22:40,960 --> 00:22:43,960
Speaker 4: got a better deal over here. But I lost all

479
00:22:44,040 --> 00:22:46,920
Speaker 4: of that, So I lost the talking to brokers every

480
00:22:46,920 --> 00:22:49,200
Speaker 4: single day and feeling like I had my finger on

481
00:22:49,240 --> 00:22:52,280
Speaker 4: the pulse on a regular basis. That I maintained it

482
00:22:52,400 --> 00:22:55,160
Speaker 4: for a few years and then started selling it down

483
00:22:55,480 --> 00:22:57,720
Speaker 4: because I wanted to be in an ETF where a

484
00:22:57,800 --> 00:23:01,040
Speaker 4: fund manager was making those decisions he was or they

485
00:23:01,160 --> 00:23:04,880
Speaker 4: were looking at my portfolio or the ETF and bulleting

486
00:23:05,000 --> 00:23:08,440
Speaker 4: companies that weren't performing and adding new companies that had opportunity,

487
00:23:08,480 --> 00:23:10,320
Speaker 4: and like, I just didn't have my finger on the

488
00:23:10,359 --> 00:23:13,159
Speaker 4: pulse in the same way that they did. So I

489
00:23:13,359 --> 00:23:16,200
Speaker 4: was like, great, I want an Australian one. The reason

490
00:23:16,280 --> 00:23:20,720
Speaker 4: I don't own multiple Australian ETFs is because if you

491
00:23:20,880 --> 00:23:23,719
Speaker 4: go to all of the big investing houses, So if

492
00:23:23,760 --> 00:23:26,600
Speaker 4: you go to a black Rock, a Vanguard, you go

493
00:23:26,720 --> 00:23:28,800
Speaker 4: to a Beta Shares, most of them are going to

494
00:23:28,840 --> 00:23:34,480
Speaker 4: have a pretty solid, high growth Australian ETF. Right, But

495
00:23:34,680 --> 00:23:36,359
Speaker 4: if you go and buy them, you're like, oh, well,

496
00:23:36,359 --> 00:23:38,639
Speaker 4: I'd love to be with black Rock and Vanguard. If

497
00:23:38,680 --> 00:23:41,160
Speaker 4: you start to compare them, they're actually going to hold

498
00:23:42,200 --> 00:23:45,080
Speaker 4: i'd say ninety percent of the similar stuff. So like,

499
00:23:45,280 --> 00:23:47,960
Speaker 4: why are we paying two different fees for two different

500
00:23:48,040 --> 00:23:51,040
Speaker 4: ETFs to have exposure to the same assets. So I

501
00:23:51,200 --> 00:23:53,600
Speaker 4: just picked one Australian that works really well for me

502
00:23:53,760 --> 00:23:56,560
Speaker 4: and one international that works really well for me. As

503
00:23:56,600 --> 00:23:59,400
Speaker 4: I've spoken about before, I used to have an Asian ETF.

504
00:24:00,000 --> 00:24:03,040
Speaker 4: Haven't replaced her since she got sold down, which is

505
00:24:03,119 --> 00:24:06,320
Speaker 4: absolutely fine, Still looking not sure if I want to

506
00:24:06,359 --> 00:24:09,159
Speaker 4: go into another one very similar or not. And then

507
00:24:09,200 --> 00:24:12,040
Speaker 4: I have minor holdings in different things that genuinely are

508
00:24:12,119 --> 00:24:15,760
Speaker 4: there because I'm interested in them. Yeah, so is true enough?

509
00:24:16,600 --> 00:24:17,240
Speaker 4: I can't tell you.

510
00:24:17,480 --> 00:24:19,960
Speaker 3: Yeah, it depends on you. But I have to do

511
00:24:20,040 --> 00:24:22,560
Speaker 3: with that information. What you will everybody. That does lead

512
00:24:22,600 --> 00:24:25,560
Speaker 3: into the next question, which is, apart from diversification, why

513
00:24:25,680 --> 00:24:29,040
Speaker 3: would somebody invest in Australian shares and ETFs over US

514
00:24:29,160 --> 00:24:32,440
Speaker 3: ones if historically the US has had better returns.

515
00:24:32,320 --> 00:24:36,440
Speaker 4: Volatility, So the American share market is wild in a

516
00:24:36,480 --> 00:24:39,680
Speaker 4: good way. Like, yes, historically they have had better returns

517
00:24:40,400 --> 00:24:44,800
Speaker 4: because they're more aggressive, because they have less strict controls,

518
00:24:44,920 --> 00:24:48,840
Speaker 4: because they have a bigger economy and bigger trade agreements.

519
00:24:49,200 --> 00:24:51,399
Speaker 4: They have bigger businesses like you think of all of

520
00:24:51,520 --> 00:24:55,840
Speaker 4: the world's biggest companies. Unfortunately they're not in Australia, like

521
00:24:55,960 --> 00:25:00,159
Speaker 4: we're talking Apple, Microsoft, Alphabet, all of that, right, But

522
00:25:00,320 --> 00:25:04,320
Speaker 4: on the flip side, what Australia has is continuity and consistency.

523
00:25:04,800 --> 00:25:06,840
Speaker 4: So if you look at the two share markets, you

524
00:25:06,920 --> 00:25:10,440
Speaker 4: will see that the US market has the highest highs

525
00:25:10,480 --> 00:25:14,560
Speaker 4: and the lowest lows. She's drama. She can be absolutely

526
00:25:14,720 --> 00:25:18,399
Speaker 4: tanked by one thing. Their president says, ah the cheetah

527
00:25:18,480 --> 00:25:23,560
Speaker 4: at all. Yeah, he is so fantastic. Anyway, they have

528
00:25:23,680 --> 00:25:27,520
Speaker 4: a lot more volatility, and volatility literally just means how

529
00:25:27,640 --> 00:25:29,760
Speaker 4: consistently goes up and down. I feel like so many

530
00:25:29,800 --> 00:25:32,440
Speaker 4: finance bros Are throwing out like, oh, yes, volatility in

531
00:25:32,480 --> 00:25:35,400
Speaker 4: the market has been wild recently, and I'm like, hey,

532
00:25:35,480 --> 00:25:38,159
Speaker 4: so the share market's like a rollercoaster this week. Like

533
00:25:38,840 --> 00:25:41,800
Speaker 4: I just I get so frustrated because these words you

534
00:25:41,920 --> 00:25:44,080
Speaker 4: just don't use in your avery day vocabulary, but when

535
00:25:44,080 --> 00:25:46,160
Speaker 4: you understand them, you're like, oh, it's actually not that deep,

536
00:25:46,440 --> 00:25:50,440
Speaker 4: very simple. So actually very simple but literal volatility. So

537
00:25:51,119 --> 00:25:54,280
Speaker 4: the US market has better returns, but you're going to

538
00:25:54,320 --> 00:25:56,720
Speaker 4: see lower lows and higher highs and it's a little

539
00:25:56,760 --> 00:25:59,960
Speaker 4: bit more inconsistent the Australian market. We are very luck

540
00:26:00,280 --> 00:26:03,120
Speaker 4: because we're on a little island by ourselves. We're away

541
00:26:03,160 --> 00:26:06,720
Speaker 4: from so much stuff, so when really big things and

542
00:26:06,920 --> 00:26:09,680
Speaker 4: bad things happen in the world, we are usually a

543
00:26:09,720 --> 00:26:12,679
Speaker 4: bit more sheltered because we are also very good at

544
00:26:12,720 --> 00:26:13,800
Speaker 4: resourcing ourselves.

545
00:26:13,920 --> 00:26:14,960
Speaker 3: Yeah, we're quite insulated.

546
00:26:15,040 --> 00:26:18,920
Speaker 4: We are quite insulated. So it's very good. And that's

547
00:26:18,920 --> 00:26:21,840
Speaker 4: why I have both because I want exposure to the

548
00:26:21,880 --> 00:26:25,119
Speaker 4: Australian market because I love a consistent baby that just

549
00:26:25,400 --> 00:26:27,360
Speaker 4: does exactly what you think they're going to do. Yeah,

550
00:26:27,440 --> 00:26:30,639
Speaker 4: but I also want exposure to get more gains, but

551
00:26:30,720 --> 00:26:32,639
Speaker 4: I also want to make sure that I'm balancing it

552
00:26:32,680 --> 00:26:36,200
Speaker 4: out so yes, you're not just diversifying, but that's why

553
00:26:36,359 --> 00:26:37,480
Speaker 4: you're diversifying.

554
00:26:37,680 --> 00:26:39,640
Speaker 3: Yeah, I would say diversifying. I feel like it's such

555
00:26:39,680 --> 00:26:42,119
Speaker 3: a fundamental reason too, Like I understand it.

556
00:26:42,200 --> 00:26:43,800
Speaker 4: Don't put all your eggs in one basket because ye

557
00:26:43,880 --> 00:26:45,280
Speaker 4: a trip and for all those eggs are going to

558
00:26:45,320 --> 00:26:46,120
Speaker 4: break all at one time.

559
00:26:46,280 --> 00:26:48,359
Speaker 3: Yeah, it's like a very good reason to be making

560
00:26:48,440 --> 00:26:51,240
Speaker 3: decisions from my perspective. A lot of the community, we're

561
00:26:51,240 --> 00:26:53,440
Speaker 3: asking this next one, which is when it comes to

562
00:26:53,840 --> 00:26:56,639
Speaker 3: their strategy and what they have in their share portfolio,

563
00:26:57,080 --> 00:26:59,200
Speaker 3: how can they be confident that they're doing the right

564
00:26:59,320 --> 00:27:01,280
Speaker 3: thing and that they don't need to swop their strategy.

565
00:27:01,560 --> 00:27:05,960
Speaker 4: So stop looking at your portfolio completely, pretend she doesn't exist. Now,

566
00:27:06,080 --> 00:27:08,719
Speaker 4: write down your goals. What are we trying to achieve here?

567
00:27:09,040 --> 00:27:11,440
Speaker 4: So everybody is going to have a different reason as

568
00:27:11,480 --> 00:27:15,400
Speaker 4: to why they're investing. Personally, I want to retire early

569
00:27:15,640 --> 00:27:17,520
Speaker 4: and I want to have enough of an income that

570
00:27:17,680 --> 00:27:20,400
Speaker 4: means I don't have to work, So that's my goal.

571
00:27:20,800 --> 00:27:23,359
Speaker 4: Somebody else might say, well, I'm investing because I have

572
00:27:23,520 --> 00:27:26,480
Speaker 4: really teeny tiny children right now, and by the time

573
00:27:26,520 --> 00:27:28,000
Speaker 4: they get to grade seven, I want to be able

574
00:27:28,040 --> 00:27:32,399
Speaker 4: to afford private school, great, different timeframe. Someone else might say, well,

575
00:27:32,720 --> 00:27:35,600
Speaker 4: I'm doing the same as UV. I want financial freedom,

576
00:27:36,040 --> 00:27:39,639
Speaker 4: but I'm also fifty and so I have maybe a

577
00:27:39,720 --> 00:27:43,080
Speaker 4: fifteen year timeframe and I just want to retire comfortably.

578
00:27:43,640 --> 00:27:46,840
Speaker 4: So there's so many different reasons why, and what those

579
00:27:46,960 --> 00:27:49,159
Speaker 4: reasons why are going to do is tell us timeframe,

580
00:27:49,640 --> 00:27:52,680
Speaker 4: so then we know why and how we're investing, and

581
00:27:53,119 --> 00:27:55,520
Speaker 4: that is going to dictate what strategy is going to

582
00:27:55,600 --> 00:27:58,720
Speaker 4: work for you. So, if you're retiring soon, a growth

583
00:27:58,760 --> 00:28:01,240
Speaker 4: strategy is pretty dumb, to be honest.

584
00:28:01,359 --> 00:28:03,280
Speaker 3: You didn't have as much time as someone.

585
00:28:03,240 --> 00:28:04,359
Speaker 4: Yeah, and what are you going to do with a

586
00:28:04,359 --> 00:28:08,720
Speaker 4: growth strategy? Like a growth strategy is a strategy that

587
00:28:08,760 --> 00:28:11,840
Speaker 4: we would implement where we're trying to invest in assets

588
00:28:11,880 --> 00:28:14,720
Speaker 4: the increase in value over time, but don't necessarily pay

589
00:28:14,800 --> 00:28:17,560
Speaker 4: us a dividend. So what you get to sixty five

590
00:28:17,760 --> 00:28:20,359
Speaker 4: and you have to sell your portfolio to live? Was

591
00:28:20,440 --> 00:28:23,800
Speaker 4: that part of the strategy or should we be investing

592
00:28:24,920 --> 00:28:28,080
Speaker 4: for dividends and going okay, cool, I'm going to slam

593
00:28:28,160 --> 00:28:30,119
Speaker 4: as much money into the share market as possible or

594
00:28:30,160 --> 00:28:33,960
Speaker 4: into my superannuation as possible in order to create an

595
00:28:34,040 --> 00:28:38,600
Speaker 4: income stream for myself, why are we investing, Because that's

596
00:28:38,760 --> 00:28:40,760
Speaker 4: then going to tell you what your strategy is. And

597
00:28:40,880 --> 00:28:44,320
Speaker 4: my strategy is such that I want an income stream

598
00:28:44,400 --> 00:28:46,920
Speaker 4: by the time I'm fifty that can pay for my

599
00:28:47,080 --> 00:28:50,200
Speaker 4: entire lifestyle. And I've been quite brazen about that. That

600
00:28:50,320 --> 00:28:52,640
Speaker 4: might not be your strategy. And I think it's so

601
00:28:52,880 --> 00:28:55,880
Speaker 4: easy to listen to these podcasts I heard about another strategy.

602
00:28:56,000 --> 00:28:59,000
Speaker 4: Is that strategy better? No, because if we compare all

603
00:28:59,040 --> 00:29:01,760
Speaker 4: of the strategies, it's not about like, well, that strategy

604
00:29:01,880 --> 00:29:05,160
Speaker 4: has better performance. It's like, well, how does that strategy

605
00:29:05,200 --> 00:29:07,920
Speaker 4: support your goals and support what you're working towards and

606
00:29:08,040 --> 00:29:11,040
Speaker 4: how you want to structure your life? Yeah, does that

607
00:29:11,120 --> 00:29:12,120
Speaker 4: make sense? Absolutely?

608
00:29:12,160 --> 00:29:14,480
Speaker 3: It's like we always say personal finance is personal, and

609
00:29:14,560 --> 00:29:18,120
Speaker 3: like the concept of the right strategy I think is

610
00:29:18,160 --> 00:29:20,600
Speaker 3: a bit as an exist Yeah, because it's like the

611
00:29:20,760 --> 00:29:23,880
Speaker 3: right strategy for you, but also exactly is what you

612
00:29:23,960 --> 00:29:26,480
Speaker 3: were saying. There might be multiple strategies that could serve

613
00:29:26,560 --> 00:29:28,320
Speaker 3: your purpose. And it then goes well, which is more

614
00:29:28,360 --> 00:29:30,280
Speaker 3: aligned to your risk profile or which is more aligned

615
00:29:30,320 --> 00:29:33,160
Speaker 3: to all of these other things. And so I feel

616
00:29:33,200 --> 00:29:35,040
Speaker 3: like this is a barrier for a lot of people.

617
00:29:35,160 --> 00:29:36,800
Speaker 3: Is you get so caught up in wanting to make

618
00:29:36,920 --> 00:29:39,640
Speaker 3: the right choice, have the right strategy, pick the right shares,

619
00:29:39,680 --> 00:29:40,880
Speaker 3: pick the right atf.

620
00:29:41,200 --> 00:29:45,240
Speaker 4: And not that deep. Being honest, like, a lot of people.

621
00:29:45,640 --> 00:29:47,840
Speaker 3: Probably invest in the exact same things that I invest in.

622
00:29:47,920 --> 00:29:51,520
Speaker 3: They probably have different goals and different ideals, But it's

623
00:29:51,720 --> 00:29:55,080
Speaker 3: just the The option is quite simple to me, I

624
00:29:55,160 --> 00:29:57,440
Speaker 3: guess when you look at it. Our next question asks,

625
00:29:57,480 --> 00:29:59,920
Speaker 3: if you are investing for multiple goals, should you invent

626
00:30:00,280 --> 00:30:02,480
Speaker 3: all of your money in one pool or should you

627
00:30:02,600 --> 00:30:06,120
Speaker 3: have different shares or ETFs dedicated to each goal you're

628
00:30:06,160 --> 00:30:06,840
Speaker 3: working towards.

629
00:30:07,040 --> 00:30:09,360
Speaker 4: Well, it depends again on your time frame. Yeah, so

630
00:30:10,120 --> 00:30:12,400
Speaker 4: you've got short, medium, and long term goals. If you've

631
00:30:12,400 --> 00:30:14,640
Speaker 4: got a short term goal, baby cakes, we are not investing.

632
00:30:14,840 --> 00:30:17,040
Speaker 4: So sorry, like and I mean that in the least

633
00:30:17,080 --> 00:30:19,520
Speaker 4: condesce any way possible. Do not invest for your short

634
00:30:19,600 --> 00:30:22,600
Speaker 4: term goals. I don't care how sexy it looks, because

635
00:30:22,640 --> 00:30:25,920
Speaker 4: we don't have enough time in the market to guarantee

636
00:30:25,920 --> 00:30:27,760
Speaker 4: that you'll be able to achieve that goal by pulling

637
00:30:27,800 --> 00:30:30,760
Speaker 4: your money out. No one predicted COVID. No one predicted

638
00:30:30,800 --> 00:30:33,000
Speaker 4: the fact that you know the cash rate last year

639
00:30:33,280 --> 00:30:37,080
Speaker 4: stayed exactly the same, Like, you can't predict the future.

640
00:30:37,320 --> 00:30:39,600
Speaker 4: How many times do I have to say if I could,

641
00:30:39,680 --> 00:30:42,600
Speaker 4: I'd be so rich, Jess, if only, Oh, Like, if

642
00:30:42,640 --> 00:30:44,200
Speaker 4: I could go to a clairvoyant and she could just

643
00:30:44,280 --> 00:30:46,960
Speaker 4: tell me, like the lotto numbers I would pay. I

644
00:30:47,080 --> 00:30:50,640
Speaker 4: pay her half the lotto literally, whatever I win fifty mil, great,

645
00:30:50,680 --> 00:30:52,560
Speaker 4: you can have twenty five if you give me the numbers.

646
00:30:53,560 --> 00:30:55,920
Speaker 3: I fear then they would just be doing that for themselves, right.

647
00:30:56,080 --> 00:31:01,120
Speaker 4: You know, we like something's not mathing here anyway. I

648
00:31:01,440 --> 00:31:05,239
Speaker 4: don't personally believe so. And again not personal advice when

649
00:31:05,320 --> 00:31:07,320
Speaker 4: it comes to me. If I was investing for multiple

650
00:31:07,360 --> 00:31:09,480
Speaker 4: different goals and they were all long term, because that's

651
00:31:09,520 --> 00:31:12,960
Speaker 4: what we invest for, I wouldn't want different shares or

652
00:31:13,000 --> 00:31:16,440
Speaker 4: ETFs for different goals. And the reason for that is

653
00:31:16,640 --> 00:31:18,920
Speaker 4: I don't want to pay multiple fees for no reason.

654
00:31:19,680 --> 00:31:23,200
Speaker 4: I want to pay fees for one thing and then

655
00:31:23,280 --> 00:31:25,120
Speaker 4: have a big pool of money that I can make

656
00:31:25,160 --> 00:31:28,320
Speaker 4: a lot of different decisions about. Yeah, the other thing

657
00:31:28,400 --> 00:31:33,120
Speaker 4: I would say is goals change, people change, circumstances change,

658
00:31:33,640 --> 00:31:37,840
Speaker 4: so breaking it all up too much might feel really limiting.

659
00:31:38,600 --> 00:31:39,800
Speaker 4: And I want you to be able to get to

660
00:31:39,840 --> 00:31:42,120
Speaker 4: a point where be like, oh, I invested because I

661
00:31:42,240 --> 00:31:44,920
Speaker 4: had ten plus years before I knew that I'd be

662
00:31:45,000 --> 00:31:46,800
Speaker 4: in a position to buy a house, and now I've

663
00:31:46,800 --> 00:31:48,400
Speaker 4: gotten to the point where I don't need to buy

664
00:31:48,440 --> 00:31:49,880
Speaker 4: a house, or I don't want to buy a house,

665
00:31:49,960 --> 00:31:52,480
Speaker 4: or my circumstances have changed and are moving to London

666
00:31:52,880 --> 00:31:54,760
Speaker 4: and I want to use that cash for something different,

667
00:31:55,000 --> 00:31:57,680
Speaker 4: Like I just don't like the idea of pigeonholing ourselves.

668
00:31:58,240 --> 00:32:00,920
Speaker 4: So it's all about getting the right streategy. But often

669
00:32:01,000 --> 00:32:04,120
Speaker 4: your strategy is going to be reflective of your age,

670
00:32:05,400 --> 00:32:07,520
Speaker 4: And that's not me saying strategy is always reflective of

671
00:32:07,600 --> 00:32:10,200
Speaker 4: your age. But like as I was saying before, a

672
00:32:10,360 --> 00:32:13,280
Speaker 4: growth strategy is probably not something that someone older is

673
00:32:13,360 --> 00:32:15,920
Speaker 4: going to pick, but it might be something that someone

674
00:32:16,040 --> 00:32:20,080
Speaker 4: younger picks for a plethora of different goals. Right, So

675
00:32:20,240 --> 00:32:23,200
Speaker 4: I think it really just depends on what you want

676
00:32:23,240 --> 00:32:25,360
Speaker 4: to do. I mean, you could break it up. But

677
00:32:25,480 --> 00:32:27,600
Speaker 4: if you're then going and picking lots of different ETFs

678
00:32:27,640 --> 00:32:28,720
Speaker 4: for lots of different.

679
00:32:28,440 --> 00:32:31,160
Speaker 3: Goals, like that feels like a lot of extra life

680
00:32:31,200 --> 00:32:33,760
Speaker 3: admin to me, like a lot of extra stress because

681
00:32:33,760 --> 00:32:36,240
Speaker 3: you can have like if you pull like let's say

682
00:32:36,360 --> 00:32:38,800
Speaker 3: in my head, I'm thinking someone like me. For example,

683
00:32:38,960 --> 00:32:41,960
Speaker 3: I before I started building my house, I had money

684
00:32:42,000 --> 00:32:44,200
Speaker 3: that I was obviously saving for, like my house deposit.

685
00:32:44,600 --> 00:32:47,040
Speaker 3: I had money that I was investing for like hopefully

686
00:32:47,120 --> 00:32:49,560
Speaker 3: one day early retirement. And then I had money that

687
00:32:49,680 --> 00:32:53,240
Speaker 3: I was investing for let's say maybe another bigger goal

688
00:32:53,520 --> 00:32:56,720
Speaker 3: that's like more medium term. I can have all the

689
00:32:56,800 --> 00:32:59,400
Speaker 3: funds for all of those things, not my house deposit

690
00:32:59,440 --> 00:33:01,680
Speaker 3: because that term goal, but I could have the funds

691
00:33:01,760 --> 00:33:04,320
Speaker 3: for my medium term goal and for my future retirement

692
00:33:04,480 --> 00:33:06,760
Speaker 3: all in one thing. Yeah, Like, let's say I have

693
00:33:07,000 --> 00:33:10,960
Speaker 3: ten thousand dollars invested mentally, five thousand of that could

694
00:33:11,000 --> 00:33:13,320
Speaker 3: be allocated to retirement, and five thousand of that could

695
00:33:13,320 --> 00:33:15,680
Speaker 3: be allocated to a medium term goal. Like, just because

696
00:33:15,720 --> 00:33:19,360
Speaker 3: it's all in one share or ETF or fund or

697
00:33:19,400 --> 00:33:21,880
Speaker 3: whatever you've chosen, doesn't mean that you can't sell down

698
00:33:22,040 --> 00:33:23,000
Speaker 3: a portion.

699
00:33:22,880 --> 00:33:25,640
Speaker 4: Of that, Yeah, if you wanted to, absolutely, And I

700
00:33:25,720 --> 00:33:28,320
Speaker 4: think that that just gives you the flexibility as well.

701
00:33:28,720 --> 00:33:31,400
Speaker 4: And then on that, if we think about like tax,

702
00:33:32,000 --> 00:33:34,120
Speaker 4: if you ever sell down, you want to be selling

703
00:33:34,160 --> 00:33:37,080
Speaker 4: down your oldest shares, not your newest shares. So like

704
00:33:37,160 --> 00:33:39,960
Speaker 4: if everything's all in one bucket. As we were talking

705
00:33:39,960 --> 00:33:42,720
Speaker 4: about earlier in the episode, you will get a fifty

706
00:33:42,760 --> 00:33:46,160
Speaker 4: percent CGT discount if you hold your assets for more

707
00:33:46,200 --> 00:33:48,680
Speaker 4: than twelve months. So if you then have been investing

708
00:33:48,880 --> 00:33:51,240
Speaker 4: every week or every month, or you know, whenever you

709
00:33:51,360 --> 00:33:54,000
Speaker 4: are investing, and you go, oh, I really want to

710
00:33:54,040 --> 00:33:56,280
Speaker 4: achieve that goal. But you've got lots of assets that

711
00:33:57,040 --> 00:33:59,840
Speaker 4: were purchased in the last twelve months. Why are we

712
00:33:59,920 --> 00:34:02,320
Speaker 4: selling that down when we don't have to. We'll take

713
00:34:02,360 --> 00:34:05,920
Speaker 4: the oldest ones first, sell those and keep the newest

714
00:34:06,000 --> 00:34:10,080
Speaker 4: ones until they kind of like get the CGT discount fast.

715
00:34:10,080 --> 00:34:13,360
Speaker 3: The silly question. Let's in that exact example, I've been

716
00:34:13,400 --> 00:34:15,919
Speaker 3: investing in Paradigm for the last four years. Let's say

717
00:34:16,160 --> 00:34:19,239
Speaker 3: I decided to sell half of that down tomorrow. Some

718
00:34:19,400 --> 00:34:21,560
Speaker 3: of those shares that I've purchased were purchased within the

719
00:34:21,640 --> 00:34:24,160
Speaker 3: last year. Many of those shares were purchased in the

720
00:34:24,320 --> 00:34:27,680
Speaker 3: previous three years. If I just click sell on my

721
00:34:27,920 --> 00:34:31,040
Speaker 3: Sharesy's app, does sharesse figure out and sell down the

722
00:34:31,080 --> 00:34:32,880
Speaker 3: oldest They do that for you.

723
00:34:33,400 --> 00:34:34,839
Speaker 4: But if you were going to go to a more

724
00:34:34,920 --> 00:34:38,880
Speaker 4: manual platform and you hit sell, it would actually get

725
00:34:38,920 --> 00:34:42,200
Speaker 4: you to select them, and this is where the complexity

726
00:34:42,400 --> 00:34:44,960
Speaker 4: of tax reporting comes in and why people are a

727
00:34:45,040 --> 00:34:47,920
Speaker 4: little bit worried and they get a little bit overwhelmed

728
00:34:47,920 --> 00:34:51,240
Speaker 4: because they're like, what do you mean? Like Paradigm, for example,

729
00:34:51,480 --> 00:34:53,000
Speaker 4: is a share that Jess and I've been buying for

730
00:34:53,360 --> 00:34:56,719
Speaker 4: literal years now, but we've always been purchasing it at

731
00:34:56,800 --> 00:34:59,719
Speaker 4: different prices, So like maybe one day it's a dollar,

732
00:34:59,760 --> 00:35:02,839
Speaker 4: maybe one day's dollar ten, dollar thirty, maybe it's ninety cents.

733
00:35:03,040 --> 00:35:04,959
Speaker 3: I get everywhere from a dollar seventy to like twenty

734
00:35:05,040 --> 00:35:05,439
Speaker 3: one cents.

735
00:35:05,600 --> 00:35:08,000
Speaker 4: Yeah, it's crazy, right, So it's up and down, but

736
00:35:08,160 --> 00:35:10,360
Speaker 4: that means your capital gains are going to be calculated

737
00:35:10,440 --> 00:35:12,640
Speaker 4: differently on each share, and each and every single one

738
00:35:12,640 --> 00:35:16,120
Speaker 4: of those little shares has a different profit associated with it, right,

739
00:35:16,360 --> 00:35:18,200
Speaker 4: So like if you purchase a share at twenty one

740
00:35:18,239 --> 00:35:21,080
Speaker 4: cents and now it's valued at two dollars example, not reality,

741
00:35:21,480 --> 00:35:23,520
Speaker 4: that's obviously a better deal than the deal where you

742
00:35:23,640 --> 00:35:27,160
Speaker 4: were purchasing it at a dollar seventy. And that's where

743
00:35:27,360 --> 00:35:29,239
Speaker 4: your share trading platform does all of that in the

744
00:35:29,280 --> 00:35:31,279
Speaker 4: background for you and then puts it on a silver

745
00:35:31,360 --> 00:35:33,640
Speaker 4: platter that you just upload to the ATO or that

746
00:35:33,680 --> 00:35:35,680
Speaker 4: you just give to your accountant to say, this is

747
00:35:35,760 --> 00:35:37,960
Speaker 4: the profit from this year, this is the profit from

748
00:35:38,000 --> 00:35:41,239
Speaker 4: previous years, and it's dollar cost averaging. That's what we

749
00:35:41,400 --> 00:35:43,359
Speaker 4: want you to do. But I think that's where people

750
00:35:43,440 --> 00:35:46,040
Speaker 4: get really overwhelmed and they go, but if I purchase it,

751
00:35:46,120 --> 00:35:49,680
Speaker 4: this amount the tax on that if we sell is more. Yes,

752
00:35:49,800 --> 00:35:51,680
Speaker 4: but that's why you want automated a reporting.

753
00:35:52,000 --> 00:35:53,640
Speaker 3: The less math I have to do, the better. Yeah,

754
00:35:53,680 --> 00:35:57,080
Speaker 3: as I'm concerned now, a little bit of a gear change.

755
00:35:57,400 --> 00:35:59,040
Speaker 3: This topic came up quite a few times. I know

756
00:35:59,080 --> 00:36:00,839
Speaker 3: it's something that you and I have spoken about a bit.

757
00:36:01,120 --> 00:36:03,680
Speaker 3: People want to know about the ethics of investing and

758
00:36:03,840 --> 00:36:05,920
Speaker 3: how to know if they are investing in something that

759
00:36:06,080 --> 00:36:06,600
Speaker 3: is ethical.

760
00:36:06,880 --> 00:36:07,919
Speaker 4: Well, what's ethical, Jess?

761
00:36:09,480 --> 00:36:12,480
Speaker 3: This is the question. This is the big debate, isn't it.

762
00:36:12,719 --> 00:36:14,239
Speaker 4: I feel like I haven't spoken about it in a

763
00:36:14,320 --> 00:36:17,960
Speaker 4: long time on the podcast. But ethically investing is not

764
00:36:18,160 --> 00:36:21,560
Speaker 4: a regulated term. Yes, and personally I see a lot

765
00:36:21,600 --> 00:36:25,360
Speaker 4: of greenwashing happening in that industry. So they'll convince you

766
00:36:25,520 --> 00:36:27,360
Speaker 4: that it feels a little bit comfit, it feels a

767
00:36:27,360 --> 00:36:30,319
Speaker 4: little bit ethical, it's a little bit aligned to your values. Now,

768
00:36:31,239 --> 00:36:33,640
Speaker 4: ethical investing. I think a lot of us just assume

769
00:36:33,719 --> 00:36:36,960
Speaker 4: might be like organic. And when I say organic, I

770
00:36:37,040 --> 00:36:38,279
Speaker 4: mean you know when you go to Cohal's and you

771
00:36:38,400 --> 00:36:40,600
Speaker 4: walk in, you're in the fruit and veg section, and

772
00:36:40,640 --> 00:36:44,120
Speaker 4: then there's a whole segment that says organic fruit and vege. Yes,

773
00:36:44,280 --> 00:36:49,279
Speaker 4: it's packaged differently, it looks different, it's more expensive, there's

774
00:36:49,320 --> 00:36:53,279
Speaker 4: a premium associated. But if you googled what are the

775
00:36:53,400 --> 00:36:56,560
Speaker 4: rules and regulations on organic fruit and vegetables in Australia,

776
00:36:56,640 --> 00:36:59,160
Speaker 4: you are going to get a laundry list of hard

777
00:36:59,200 --> 00:37:02,520
Speaker 4: and fast rules. It is not organic if they use pesticides.

778
00:37:02,600 --> 00:37:05,440
Speaker 4: It is not organic if they ab CD right, So

779
00:37:05,600 --> 00:37:08,800
Speaker 4: you can guarantee that that section has had a number

780
00:37:08,840 --> 00:37:12,360
Speaker 4: of different specific rules that are regulated applied to it.

781
00:37:12,960 --> 00:37:15,880
Speaker 4: That does not exist in investing, Like there's no banana

782
00:37:15,920 --> 00:37:17,880
Speaker 4: sticker that you put on an ETF and go this

783
00:37:18,040 --> 00:37:21,600
Speaker 4: one good. And that really is quite frustrating because what's

784
00:37:21,640 --> 00:37:24,080
Speaker 4: ethical to one person is not ethical to another. And

785
00:37:24,120 --> 00:37:26,360
Speaker 4: if you've listened to so many of my podcasts that

786
00:37:26,560 --> 00:37:28,880
Speaker 4: like you've been here since twenty nineteen, I love you,

787
00:37:28,960 --> 00:37:31,600
Speaker 4: thanks for being here. I'm sorry. I'm about to reshare

788
00:37:31,640 --> 00:37:34,320
Speaker 4: the same story. But I remember when I was a

789
00:37:34,400 --> 00:37:36,920
Speaker 4: financial advisor sitting down with a client who I was

790
00:37:37,040 --> 00:37:39,160
Speaker 4: arguably finding a little bit of frustrating at the time

791
00:37:39,680 --> 00:37:41,880
Speaker 4: because I was trying to do my fact find process

792
00:37:42,000 --> 00:37:44,440
Speaker 4: with him, and I'm going through, Okay, cool, can we

793
00:37:44,480 --> 00:37:46,960
Speaker 4: talk about your history, your goals or whatever, and he

794
00:37:47,080 --> 00:37:48,759
Speaker 4: kept being like, look, I just really want to talk

795
00:37:48,800 --> 00:37:51,239
Speaker 4: about ethical investing. I'd be like, yes, absolutely, I want

796
00:37:51,280 --> 00:37:53,320
Speaker 4: to get to that, but I actually need to understand

797
00:37:53,360 --> 00:37:55,560
Speaker 4: your goals and you know, everything before we even talk

798
00:37:55,600 --> 00:37:58,399
Speaker 4: about the assets. He kept trying to jump ahead, if

799
00:37:58,440 --> 00:38:01,279
Speaker 4: that makes sense. Ethical inves came up all of the time,

800
00:38:01,680 --> 00:38:04,719
Speaker 4: like throughout this whole two hour meeting I had with him.

801
00:38:05,160 --> 00:38:06,799
Speaker 4: And then we got to the segment in the fact

802
00:38:06,840 --> 00:38:09,640
Speaker 4: fine where I'm like, Okay, let's talk about ethical investing,

803
00:38:09,719 --> 00:38:10,920
Speaker 4: so we know what you're doing, we know what your

804
00:38:11,000 --> 00:38:13,280
Speaker 4: risk profile is, so I can kind of like curate

805
00:38:13,360 --> 00:38:17,520
Speaker 4: the conversation in a way that actually is constructive. He said, yeah,

806
00:38:17,600 --> 00:38:19,919
Speaker 4: ethical investing is really important to me. I said, great,

807
00:38:20,320 --> 00:38:22,479
Speaker 4: tell me what that means. He said, I just don't

808
00:38:22,480 --> 00:38:24,560
Speaker 4: want any nukes haha.

809
00:38:25,080 --> 00:38:27,640
Speaker 3: And I was like, what perfect Not many people.

810
00:38:27,480 --> 00:38:30,320
Speaker 4: Do, And I said you don't. He's like, none of

811
00:38:30,360 --> 00:38:34,440
Speaker 4: that Russia stuff, no nuclear and nothing in Russia. And

812
00:38:34,520 --> 00:38:36,960
Speaker 4: I said, wait, what, like because that's the first time

813
00:38:36,960 --> 00:38:38,919
Speaker 4: I've heard that line of thought when we're talking about

814
00:38:38,920 --> 00:38:43,040
Speaker 4: ethical investing. I said, okay, so let's just start at

815
00:38:43,120 --> 00:38:45,960
Speaker 4: like the base talk to me about gambling. Oh, gamble

816
00:38:45,960 --> 00:38:49,040
Speaker 4: all the time, So would you invest in a gambling company?

817
00:38:49,160 --> 00:38:49,319
Speaker 2: Yeah?

818
00:38:49,320 --> 00:38:52,160
Speaker 4: Absolutely, they got all my money. I'm like, okay, no worries,

819
00:38:52,520 --> 00:38:55,040
Speaker 4: and like that's fine, no literally, no judgment. But like,

820
00:38:55,080 --> 00:38:57,480
Speaker 4: if you're talking about ethical investing, I would say the

821
00:38:57,560 --> 00:39:01,879
Speaker 4: most stereotypical exclusions alcohol, gambling, and tobacco, I would say,

822
00:39:01,960 --> 00:39:05,520
Speaker 4: are the most common ethical exclusions. And I was like, okay,

823
00:39:05,640 --> 00:39:07,719
Speaker 4: what about like tobacco and alcohol. He's like, yep, that's

824
00:39:07,760 --> 00:39:10,320
Speaker 4: why I'm gambling. Like okay, cool, So would you be

825
00:39:10,440 --> 00:39:13,360
Speaker 4: comfortable investing in those companies? They said, yeah, but just

826
00:39:13,560 --> 00:39:16,719
Speaker 4: no nukes. I'm like, no worries. I actually don't even

827
00:39:16,719 --> 00:39:19,600
Speaker 4: know how to invest in a new so I can

828
00:39:19,719 --> 00:39:22,799
Speaker 4: absolutely it's not an issue, not an issue. In fact,

829
00:39:22,840 --> 00:39:24,319
Speaker 4: I'd have to do a lot of research to see

830
00:39:24,360 --> 00:39:28,759
Speaker 4: how I would invest in Russia's nuclear plants. That is

831
00:39:28,920 --> 00:39:31,760
Speaker 4: just an example of how everybody has a different idea.

832
00:39:32,080 --> 00:39:35,200
Speaker 4: Some people might be wildly passionate about the Great Barrier reef.

833
00:39:35,360 --> 00:39:37,720
Speaker 4: Some people might be vegan and don't want to invest

834
00:39:37,800 --> 00:39:41,080
Speaker 4: in supermarkets that sell meat. Some people might be really

835
00:39:41,200 --> 00:39:44,880
Speaker 4: really passionate about skin care, so they refuse to invest

836
00:39:44,920 --> 00:39:47,880
Speaker 4: in companies like Laurel. That is a conversation you have

837
00:39:47,960 --> 00:39:49,600
Speaker 4: to have with yourself, and you have to have with

838
00:39:49,719 --> 00:39:52,600
Speaker 4: your financial advisor if you've got one, because I can't

839
00:39:52,640 --> 00:39:55,759
Speaker 4: tell you what is ethical, yeah, because only you can

840
00:39:55,840 --> 00:39:56,279
Speaker 4: decide that.

841
00:39:56,640 --> 00:39:56,879
Speaker 3: Yeah.

842
00:39:57,000 --> 00:39:59,040
Speaker 4: What you can do if you're like, well, I just

843
00:39:59,120 --> 00:40:03,120
Speaker 4: want what's good for the environment is ESG invest So

844
00:40:03,239 --> 00:40:06,400
Speaker 4: there is a badge in our industry called ESG investing.

845
00:40:06,520 --> 00:40:11,239
Speaker 4: It's ethical sustainability and governance, so very exciting, but it's

846
00:40:11,520 --> 00:40:14,560
Speaker 4: making sure that the companies that you're investing in are ethical,

847
00:40:14,600 --> 00:40:17,040
Speaker 4: they are sustainable, and they have really good governance, so

848
00:40:17,200 --> 00:40:19,120
Speaker 4: like they're doing good, they're being good, they're being good

849
00:40:19,160 --> 00:40:21,640
Speaker 4: to their people. And I usually would start there if

850
00:40:21,640 --> 00:40:25,160
Speaker 4: you're really worried about getting something that is quote the

851
00:40:25,320 --> 00:40:28,920
Speaker 4: right thing, because that's as close to ethical as investing

852
00:40:29,239 --> 00:40:31,800
Speaker 4: as we have. Yeah, and then it's all about nuance

853
00:40:32,000 --> 00:40:34,600
Speaker 4: and it's all about your personal decisions. And you know,

854
00:40:35,040 --> 00:40:37,640
Speaker 4: if you're going to go pick an etf like, maybe

855
00:40:37,640 --> 00:40:40,400
Speaker 4: you pick a green one, but just be really careful

856
00:40:40,440 --> 00:40:42,439
Speaker 4: when you see companies being like, this is our green

857
00:40:42,520 --> 00:40:45,120
Speaker 4: portfolio might just be the color.

858
00:40:45,520 --> 00:40:48,160
Speaker 3: Yeah, And it's really interesting because you can extrapolate it

859
00:40:48,200 --> 00:40:51,120
Speaker 3: out so far wherein exactly as you were saying, the

860
00:40:51,320 --> 00:40:53,959
Speaker 3: company itself might meet your standards for what you would

861
00:40:53,960 --> 00:40:57,040
Speaker 3: deem ethical. But people sometimes will take it a step

862
00:40:57,120 --> 00:40:59,479
Speaker 3: further and say, well, even if the company itself meets

863
00:40:59,520 --> 00:41:04,000
Speaker 3: my standard for being ethical, if they then invest or

864
00:41:04,120 --> 00:41:08,440
Speaker 3: support other companies that don't align with my values in

865
00:41:08,480 --> 00:41:10,879
Speaker 3: that space, you know how deeper we go in. Yeah,

866
00:41:10,920 --> 00:41:13,040
Speaker 3: we've seen a lot of that with you know, the

867
00:41:13,160 --> 00:41:16,160
Speaker 3: war and everything that's happening overseas, people saying, well, I

868
00:41:16,239 --> 00:41:19,040
Speaker 3: have no issues with this company's manufacturing standards, but I

869
00:41:19,120 --> 00:41:21,840
Speaker 3: know that they then fund these political groups that are

870
00:41:21,880 --> 00:41:24,160
Speaker 3: in support of certain things. Yea, Like you can really

871
00:41:24,280 --> 00:41:26,480
Speaker 3: take the umbrella out quite far.

872
00:41:26,960 --> 00:41:29,160
Speaker 4: Yeah, I would say the same thing happens in beauty.

873
00:41:29,320 --> 00:41:31,520
Speaker 4: So yeah, A really good example of this is the

874
00:41:31,560 --> 00:41:34,960
Speaker 4: backlash that I'm seeing lorel Get. They've been getting this

875
00:41:35,120 --> 00:41:38,239
Speaker 4: for years right, So animal testing, yes, and it's not

876
00:41:38,400 --> 00:41:42,040
Speaker 4: because Loreal animal tests. In fact, Lorel all around the

877
00:41:42,080 --> 00:41:45,440
Speaker 4: world except for in China, do not animal test. They

878
00:41:45,480 --> 00:41:49,440
Speaker 4: don't like animal testing. But one of the caveats of

879
00:41:49,560 --> 00:41:52,600
Speaker 4: being able to sell in China is that you have

880
00:41:52,880 --> 00:41:56,160
Speaker 4: to test on animals to get into their market. So

881
00:41:56,280 --> 00:41:59,080
Speaker 4: if you want to sell your product in the Chinese

882
00:41:59,120 --> 00:42:02,839
Speaker 4: market and it is a cosmetic, it needs to be tested. Yeah,

883
00:42:03,280 --> 00:42:05,759
Speaker 4: so they obviously had to go through that hurdle. They're

884
00:42:05,760 --> 00:42:08,160
Speaker 4: a massive company that is a massive market they would

885
00:42:08,200 --> 00:42:11,040
Speaker 4: be missing out on. But the nuance that you see

886
00:42:11,080 --> 00:42:13,279
Speaker 4: on TikTok and on Instagram, and you know when people

887
00:42:13,360 --> 00:42:16,160
Speaker 4: talk about it is like, well Lorel do animal testing.

888
00:42:16,400 --> 00:42:19,160
Speaker 4: It's like, well, if you look into it, I would

889
00:42:19,239 --> 00:42:23,120
Speaker 4: say that Lorel's against animal testing and they don't do

890
00:42:23,239 --> 00:42:25,560
Speaker 4: it anywhere else, but the places that they're forced to

891
00:42:25,600 --> 00:42:28,120
Speaker 4: do it, How does that make you feel? Yeah, And yes,

892
00:42:28,200 --> 00:42:30,600
Speaker 4: you could go on about them, you know, prioritizing profit

893
00:42:30,640 --> 00:42:32,320
Speaker 4: and they should pull out of the Chinese market, but

894
00:42:32,400 --> 00:42:35,160
Speaker 4: again they're a business and they have to make money

895
00:42:35,239 --> 00:42:38,200
Speaker 4: to make it sustainable, to make products accessible. Like there's

896
00:42:38,280 --> 00:42:41,960
Speaker 4: just so much again nuance to the situation where it's like,

897
00:42:42,160 --> 00:42:43,920
Speaker 4: if you dug a little bit deeper, do you actually

898
00:42:44,000 --> 00:42:46,360
Speaker 4: understand why that company is making the decision or if

899
00:42:46,360 --> 00:42:48,319
Speaker 4: you just wiped them off because you heard someone tell

900
00:42:48,400 --> 00:42:50,040
Speaker 4: you will they test on animals?

901
00:42:50,320 --> 00:42:53,160
Speaker 3: Yeah, it's such a complex topic, very interesting. We could

902
00:42:53,160 --> 00:42:53,560
Speaker 3: talk about it.

903
00:42:53,560 --> 00:42:56,000
Speaker 4: Oh kay, absolutely could, and if you let me, I.

904
00:42:56,000 --> 00:42:57,960
Speaker 3: Would, Yes, But I feel like we've got we've been

905
00:42:58,000 --> 00:42:59,279
Speaker 3: talking for a while, so I'm going to around us

906
00:42:59,280 --> 00:43:02,000
Speaker 3: out with one last questions. Okay's all right. A lot

907
00:43:02,080 --> 00:43:05,560
Speaker 3: of people were asking what media are you consuming and

908
00:43:05,760 --> 00:43:08,839
Speaker 3: how are you researching the investments that you're choosing to make?

909
00:43:09,719 --> 00:43:13,799
Speaker 4: So what media I'm consuming? Or for media terrible, the worst,

910
00:43:13,920 --> 00:43:15,960
Speaker 4: Instagram TikTok, I'm all over it. Yeah, but when it

911
00:43:16,040 --> 00:43:18,640
Speaker 4: comes to investing, I don't listen to any of that.

912
00:43:19,280 --> 00:43:22,440
Speaker 4: It's something that concerns me about the industry. Actually, is

913
00:43:22,560 --> 00:43:24,680
Speaker 4: that you know, and maybe this is me being on

914
00:43:24,719 --> 00:43:27,360
Speaker 4: my high horse, and I promise promise it's not me

915
00:43:27,480 --> 00:43:29,120
Speaker 4: being like, oh my god, like I know so much

916
00:43:29,160 --> 00:43:32,160
Speaker 4: more than other people. But when you listen to it,

917
00:43:32,200 --> 00:43:34,160
Speaker 4: and this is just maybe my high horse, so let

918
00:43:34,239 --> 00:43:36,239
Speaker 4: me have my moment. When you listen to shees on

919
00:43:36,280 --> 00:43:39,880
Speaker 4: the money. We have a financial services license. I was

920
00:43:40,160 --> 00:43:43,040
Speaker 4: a financial advisor for a long time. I had a

921
00:43:43,200 --> 00:43:46,920
Speaker 4: very successful business that I sold. I have a mortgage

922
00:43:46,960 --> 00:43:50,360
Speaker 4: broking business. I know the industry. I have a credit license.

923
00:43:50,719 --> 00:43:53,520
Speaker 4: I have been running this company now for ten years,

924
00:43:54,000 --> 00:43:57,840
Speaker 4: which is insane to me. So when we talk about finance,

925
00:43:58,000 --> 00:44:00,360
Speaker 4: we are walking the walk. We are, you know, in

926
00:44:00,480 --> 00:44:03,600
Speaker 4: the industry. I am able to access industry experts. I

927
00:44:03,719 --> 00:44:06,719
Speaker 4: have been trained to read annual reports like they're the

928
00:44:06,760 --> 00:44:08,920
Speaker 4: back of a cereal box. Like I love it, and

929
00:44:09,200 --> 00:44:11,920
Speaker 4: it's one of the things that I get really excited about, like, oh,

930
00:44:11,960 --> 00:44:14,120
Speaker 4: have you got a PDS? Let me add it, Like

931
00:44:14,440 --> 00:44:17,680
Speaker 4: it's not something that I just have an interest in

932
00:44:17,760 --> 00:44:20,279
Speaker 4: and I've decided to start sharing whereas you get on

933
00:44:20,440 --> 00:44:22,560
Speaker 4: social media. And don't get me wrong, I love it.

934
00:44:22,600 --> 00:44:24,840
Speaker 4: We should be doing more budgeting content, we should be

935
00:44:24,880 --> 00:44:27,360
Speaker 4: doing more investing content. But I feel like it's a

936
00:44:27,520 --> 00:44:31,040
Speaker 4: very dangerous space to learn unless you fact checked the

937
00:44:31,080 --> 00:44:35,520
Speaker 4: person you're getting your information from. America is pretty bad

938
00:44:35,600 --> 00:44:39,400
Speaker 4: at this because they don't have any real legislation around caculated.

939
00:44:39,760 --> 00:44:39,920
Speaker 2: Yeah.

940
00:44:40,000 --> 00:44:43,560
Speaker 4: So in Australia, the way that it works is as

941
00:44:43,680 --> 00:44:46,160
Speaker 4: the professional it is my job to put you, as

942
00:44:46,200 --> 00:44:48,719
Speaker 4: the consumer, in the best possible position. It is my

943
00:44:49,000 --> 00:44:51,239
Speaker 4: job to you know when I'm in This is like

944
00:44:51,360 --> 00:44:53,600
Speaker 4: a side note, but I think it's interesting. When I

945
00:44:53,800 --> 00:44:56,080
Speaker 4: am working in my mortgage broking business and one of

946
00:44:56,120 --> 00:44:58,880
Speaker 4: my brokers sees a client, they have to present the

947
00:44:58,960 --> 00:45:02,320
Speaker 4: client with three viable options for their home loan to

948
00:45:02,360 --> 00:45:05,240
Speaker 4: make sure that the client is given choice, but choice

949
00:45:05,320 --> 00:45:09,560
Speaker 4: that makes sense to them if you flip it. In America,

950
00:45:10,120 --> 00:45:12,239
Speaker 4: the onus is actually on the consumer to make the

951
00:45:12,320 --> 00:45:15,560
Speaker 4: right decision for themselves, so their government says, no, jess,

952
00:45:15,600 --> 00:45:18,880
Speaker 4: it's up to you personally to work out what is

953
00:45:19,040 --> 00:45:20,680
Speaker 4: right for you and what is wrong for you. The

954
00:45:20,760 --> 00:45:23,640
Speaker 4: professional can sell their stuff. They're a salesperson. They do

955
00:45:23,800 --> 00:45:26,520
Speaker 4: not have any obligation to give you comparisons. They do

956
00:45:26,640 --> 00:45:30,440
Speaker 4: not have any obligation to caveat what they're saying. Say

957
00:45:30,480 --> 00:45:32,279
Speaker 4: whatever they want. They can go out and say I

958
00:45:32,400 --> 00:45:35,080
Speaker 4: think you should invest in this ETF because I really

959
00:45:35,280 --> 00:45:37,960
Speaker 4: like it. In Australia that is illegal.

960
00:45:38,040 --> 00:45:39,520
Speaker 3: So it doesn't stop people from doing it.

961
00:45:39,600 --> 00:45:41,319
Speaker 4: Oh no, they still do it. There's still much cut

962
00:45:41,400 --> 00:45:44,880
Speaker 4: up online right So I think when I'm saying what

963
00:45:45,040 --> 00:45:47,800
Speaker 4: media am I consuming? I'm consuming all that junk because

964
00:45:47,840 --> 00:45:50,480
Speaker 4: I find it really interesting, and like Jess, your dms

965
00:45:50,480 --> 00:45:52,120
Speaker 4: blow up on a weekly basis from me being like,

966
00:45:52,200 --> 00:45:53,719
Speaker 4: what the heck is this? Oh my god, I can't

967
00:45:53,760 --> 00:45:56,279
Speaker 4: believe they say that. But when it comes to making

968
00:45:56,440 --> 00:46:01,560
Speaker 4: actual decisions about my investment portfolio boring, like you've seen it.

969
00:46:02,000 --> 00:46:04,640
Speaker 4: When I am like diving deep into something, I will

970
00:46:05,000 --> 00:46:08,200
Speaker 4: honestly start with Google. I'll look up the investment house

971
00:46:08,280 --> 00:46:11,120
Speaker 4: that I want to invest with, so let's say that's Vanguard,

972
00:46:11,520 --> 00:46:14,319
Speaker 4: and then going through their whole website, like and it's

973
00:46:14,360 --> 00:46:16,279
Speaker 4: not just like going through their website and clicking on

974
00:46:16,560 --> 00:46:18,520
Speaker 4: who are our team, what is our board? What are

975
00:46:18,520 --> 00:46:21,200
Speaker 4: our values? It's not that it's going through the page

976
00:46:21,239 --> 00:46:24,600
Speaker 4: that outlines who's been held in their ETF or why

977
00:46:24,719 --> 00:46:28,320
Speaker 4: this ETF was constructed? How long has that ETF existed

978
00:46:28,800 --> 00:46:30,640
Speaker 4: and going is that what I want to add to

979
00:46:30,680 --> 00:46:34,640
Speaker 4: my portfolio? What other examples exist? I do use chat GPT,

980
00:46:34,880 --> 00:46:37,680
Speaker 4: and I would encourage all of you to use chat GPT,

981
00:46:38,120 --> 00:46:41,239
Speaker 4: not to decision make, but to help you compare and contrast.

982
00:46:41,760 --> 00:46:43,719
Speaker 4: So you can upload the pds and be like, hey,

983
00:46:43,840 --> 00:46:45,960
Speaker 4: could you just tell me what the difference between this

984
00:46:46,120 --> 00:46:50,120
Speaker 4: black rock and this Vanguard portfolio are like two ETFs.

985
00:46:50,160 --> 00:46:53,439
Speaker 4: They both say top two hundred. Yeah, what the heck

986
00:46:53,560 --> 00:46:56,120
Speaker 4: is the difference. It will be able to give you

987
00:46:56,239 --> 00:46:58,879
Speaker 4: information but never make a decision based on what chat

988
00:46:58,960 --> 00:47:03,400
Speaker 4: GPT says. So I think for me, the research that

989
00:47:03,560 --> 00:47:07,479
Speaker 4: goes into my investments is very boring. It's not looking

990
00:47:07,600 --> 00:47:09,719
Speaker 4: up the ATF on TikTok and seeing what other people

991
00:47:09,840 --> 00:47:12,040
Speaker 4: have to say about it. Because I can guarantee the

992
00:47:12,120 --> 00:47:15,640
Speaker 4: most successful investors they can't be bothered making a TikTok.

993
00:47:16,280 --> 00:47:18,680
Speaker 4: They're not out there making tiktoks about their investments. They're

994
00:47:18,680 --> 00:47:22,040
Speaker 4: out there sleeping well because their investments are performing. So

995
00:47:23,000 --> 00:47:25,320
Speaker 4: I'd take everything you see in the media with a

996
00:47:25,360 --> 00:47:27,440
Speaker 4: grain of salt because also, you know what sells in

997
00:47:27,520 --> 00:47:30,640
Speaker 4: media drama. You know what doesn't sell people actually just

998
00:47:30,760 --> 00:47:32,320
Speaker 4: making money in it being boring.

999
00:47:32,400 --> 00:47:34,480
Speaker 3: Yeah, people making solid decision. Yeah.

1000
00:47:34,640 --> 00:47:37,400
Speaker 4: So we're reading the pds, we're doing our research on

1001
00:47:37,560 --> 00:47:41,040
Speaker 4: what's been performing, We're looking at the ASX website. It's

1002
00:47:41,080 --> 00:47:43,000
Speaker 4: not sexy. I do teach you all of this and

1003
00:47:43,080 --> 00:47:45,640
Speaker 4: exactly what to dive into in my investing master class

1004
00:47:45,640 --> 00:47:49,080
Speaker 4: because I'm obsessed. In fact, it was so funny. I

1005
00:47:49,400 --> 00:47:51,040
Speaker 4: was talking to the team the other day and they're like, Oh,

1006
00:47:51,080 --> 00:47:53,640
Speaker 4: what's tax time like for you? And I was like chaos.

1007
00:47:53,760 --> 00:47:55,920
Speaker 4: And they're like, why don't you have a good accountant

1008
00:47:55,920 --> 00:47:58,040
Speaker 4: and I was like yes. But he hates me because

1009
00:47:58,280 --> 00:48:01,440
Speaker 4: I basically have every single share trading platform under the sun,

1010
00:48:01,520 --> 00:48:03,759
Speaker 4: because I recorded once all of these videos of how

1011
00:48:03,800 --> 00:48:05,560
Speaker 4: to buy a share on com sick, how to buy

1012
00:48:05,600 --> 00:48:06,960
Speaker 4: a share on Pearl, that how to buy a share

1013
00:48:07,200 --> 00:48:09,520
Speaker 4: on shares is, how to buy a share on self Wealth. Like,

1014
00:48:10,480 --> 00:48:13,560
Speaker 4: I'm Delulu when it comes to this stuff. But we're

1015
00:48:13,640 --> 00:48:17,239
Speaker 4: not consuming clickbait media. Yeah, end of story. Sorry, that's

1016
00:48:17,280 --> 00:48:17,680
Speaker 4: my rant.

1017
00:48:17,960 --> 00:48:19,040
Speaker 3: I could not agree more.

1018
00:48:19,200 --> 00:48:21,200
Speaker 4: You said, oh, we're nearly done, and I was like, no, no, no, no,

1019
00:48:21,760 --> 00:48:23,480
Speaker 4: I've got some yap Yeah, I go some left in

1020
00:48:23,520 --> 00:48:26,399
Speaker 4: the tank. So I think we're done with questions for today.

1021
00:48:26,400 --> 00:48:27,800
Speaker 4: I'm going to put a pin in it there. You

1022
00:48:27,920 --> 00:48:31,400
Speaker 4: are probably very grateful, But if you have more questions,

1023
00:48:31,480 --> 00:48:35,120
Speaker 4: because I'm so self indulgent about this topic, if you've

1024
00:48:35,120 --> 00:48:37,839
Speaker 4: got more questions about investing, we have literally a whole

1025
00:48:37,920 --> 00:48:40,359
Speaker 4: investing hub on our website and I'll link that below

1026
00:48:40,440 --> 00:48:42,839
Speaker 4: in the show notes, it's got his or free resources.

1027
00:48:43,120 --> 00:48:45,080
Speaker 4: It's got links to the course that I just mentioned,

1028
00:48:45,120 --> 00:48:47,880
Speaker 4: and links to our playlists of all of the investing

1029
00:48:47,920 --> 00:48:50,400
Speaker 4: episodes from the podcast over the last few years in

1030
00:48:50,719 --> 00:48:52,719
Speaker 4: one place to make it really easy for you.

1031
00:48:53,080 --> 00:48:55,520
Speaker 3: And there is so much good content there. Of course,

1032
00:48:55,560 --> 00:48:57,520
Speaker 3: if I made it, thanks you did a great job.

1033
00:48:57,640 --> 00:48:59,719
Speaker 3: If you haven't already, guys, don't get hit subscribed to

1034
00:49:00,120 --> 00:49:02,359
Speaker 3: miss any of the great investing all Money episodes we've

1035
00:49:02,400 --> 00:49:02,960
Speaker 3: got coming up.

1036
00:49:03,080 --> 00:49:05,040
Speaker 4: All right, we'll see you guys on Friday for something

1037
00:49:05,080 --> 00:49:06,759
Speaker 4: a little bit lighter. Bye bye.

1038
00:49:12,600 --> 00:49:15,120
Speaker 2: Bid By shared on She's on the Money is general

1039
00:49:15,200 --> 00:49:19,040
Speaker 2: in nature and does not consider your individual circumstances. She's

1040
00:49:19,080 --> 00:49:22,480
Speaker 2: on the Money exists purely for educational purposes and should

1041
00:49:22,560 --> 00:49:25,720
Speaker 2: not be relied upon to make an investment or financial decision.

1042
00:49:26,120 --> 00:49:28,560
Speaker 2: If you do choose to buy a financial product, read

1043
00:49:28,600 --> 00:49:32,239
Speaker 2: the PDS TMD and obtain appropriate financial advice.

1044
00:49:31,960 --> 00:49:33,280
Speaker 4: Tailored towards your needs.

1045
00:49:33,680 --> 00:49:37,560
Speaker 2: Victoria Divine and She's on the Money are authorized representatives

1046
00:49:37,680 --> 00:49:41,719
Speaker 2: of Money. Sheper Pty Ltd ABN three two one six

1047
00:49:41,880 --> 00:49:45,719
Speaker 2: four nine two seven seven zero eight AFSL four five

1048
00:49:45,840 --> 00:49:47,000
Speaker 2: one two eight nine