Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud Order
Speaker 1: Order KERNI Whoalbury and a waddery woman. And before we
Speaker 1: get started on She's on the Money podcast, I would
Speaker 1: like to acknowledge the traditional custodians of the land of
Speaker 1: which this podcast is recorded on a wondery country, acknowledging
Speaker 1: the elders, the ancestors and the next generation coming through
Speaker 1: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 1: the storytelling of you to make a difference for today
Speaker 1: and lasting impact for tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 2: Hello, and welcome to She's on the Money, the podcas
Speaker 2: for millennials who want financial freedom. I'm back with another
Speaker 2: episode that has been far too long between recordings. Mister
Speaker 2: Glenn James from Money, Money, Money or M three joins us. Glenn, Hi,
Speaker 2: welcome to the show.
Speaker 4: Thank you so much. It's been a long time.
Speaker 2: You're one of the only guys I let on the
Speaker 2: show like you are.
Speaker 4: Welcome, Thank you, and hello to everyone who's listening. I
Speaker 4: know that we've got a lot of crossover listeners.
Speaker 2: We do. I'm so excited for this episode because one
Speaker 2: you're visiting me down in Melbourne, which is really kind
Speaker 2: of you. But two you've released another book.
Speaker 4: I have, what is it called. It's called The Quick
Speaker 4: Start Guide to Investing.
Speaker 2: And you're doing that with my friend. Nick Bradley is
Speaker 2: now my friend who was your friend. We went to
Speaker 2: America together last year, and he's funny, Like he's like,
Speaker 2: really funny.
Speaker 4: Moving to Spain.
Speaker 2: I know, it's actually insane. He's just picked up his
Speaker 2: entire family and moved them to Spain. He's not only
Speaker 2: funny as in not funny because he's moving to Spain,
Speaker 2: but funny in isolation. So cool life.
Speaker 4: Story, but it's weird. Like I introduced you to my
Speaker 4: friend Nick, and then you guys all went out for
Speaker 4: the football or something one night.
Speaker 2: Social being more social, you were invited and you're like, no,
Speaker 2: I don't want to go out. I want to get
Speaker 2: ice cream and we're like, yeah, no, worries have fun
Speaker 2: on your own were he had hot dogs, Nick showed
Speaker 2: us American football. I had so much fun. And I
Speaker 2: also learned how to transfer money internationally because Nick bought
Speaker 2: my footy ticket. Do they call it footy over there?
Speaker 2: I don't know. Nick bought my football ticket and I
Speaker 2: had to give him cash back, and it was a conundrum.
Speaker 2: I see the value in just being able to transfer
Speaker 2: money between our bank accounts. Glen totally like the American
Speaker 2: banking system cooked, but that's not what we hear today
Speaker 2: talk about. I'm also not here to really talk about
Speaker 2: your book either, but you annoyed it. I did anoint it.
Speaker 2: We're in the book. Could I see my quote?
Speaker 4: And for the first page at the top, I.
Speaker 2: Like that, I'm first page at the top, But like
Speaker 2: on the back, I didn't get the cover because.
Speaker 4: I want to be a median. On the back, I
Speaker 4: wanted a comedian.
Speaker 2: But like, why is a comedian got to endorse an
Speaker 2: investing book?
Speaker 4: Well, why does everything have to be so serious all
Speaker 4: the time.
Speaker 2: You are so lucky that you're good at investing content,
Speaker 2: because otherwise I don't know if i'd endorse this. But
Speaker 2: I'm excited for this because this goes a little bit
Speaker 2: deeper than my investing book. And what was saying before
Speaker 2: off air that this probably is a really good Like
Speaker 2: if you've read Investing with Sheees on the Money and
Speaker 2: you want to kind of like take it a level
Speaker 2: up Nick. He's a right nerd that like speaks in
Speaker 2: really general terms, so like his content is really easy
Speaker 2: to follow, and it's really highlighted, so you could just
Speaker 2: skip all the parts in this book that Glenn wrote
Speaker 2: and just focus on a niche part. Yeah, and I
Speaker 2: think that that's a really good way to approach it.
Speaker 2: But we asked our community Glenn a heap of investing questions,
Speaker 2: and I was hoping that you would be open to
Speaker 2: answering a few of them on the show and having
Speaker 2: a general chat about investing, because even though we're in
Speaker 2: the middle of the cost of living crisis, I feel
Speaker 2: like so many people are still really interested in self
Speaker 2: education and really interested in starting the process, even if
Speaker 2: it means they're just starting with twenty bucks.
Speaker 4: Yeah, and that's really good because there's a spectrum of
Speaker 4: life that we're all on, and someone could be starting
Speaker 4: out with their career, starting out with their first job,
Speaker 4: still at school or in university and not having much
Speaker 4: money and want to invest or. It could be the
Speaker 4: other end of the spectrum where like you've got more
Speaker 4: money than God, but a lot of people fit right
Speaker 4: in this middle part where things are tight, rent might
Speaker 4: be expensive, the mortgage repayments might be and have been increasing,
Speaker 4: or we might be trying to get out of consumer debt,
Speaker 4: but we still want to invest. And one thing I'm
Speaker 4: a big fan of is yes, putting your toe in
Speaker 4: the water. And I did a little table in the
Speaker 4: book where if you earn, say seventy thousand dollars a year,
Speaker 4: well let's try and make it so we're not going
Speaker 4: to not invest, but maybe allocate one percent of our investing,
Speaker 4: so seven hundred dollars a year. Or if you earn
Speaker 4: a thousand dollars, let's start with one percent. So it
Speaker 4: just keeps us Even if it's thirty or forty dollars
Speaker 4: a month, you're still getting out of debt or you're
Speaker 4: still trying to you know, keep things going along. But
Speaker 4: it keeps us interested and it keeps.
Speaker 2: Us engaged, which I think is really important. Like for me,
Speaker 2: engagement with the process is more important than saving up
Speaker 2: a really big lump sum to start. I literally just
Speaker 2: finished recording in episode Glenn about getting back on track
Speaker 2: with your investing plan this year, because so many of
Speaker 2: us set out to like invest in January, and then
Speaker 2: it was February, and then all of a sudden it
Speaker 2: was July and we're like, oh, we've fallen off the horse,
Speaker 2: Like maybe next year. But like, investing doesn't have to
Speaker 2: have a start point that's like so defined. We can
Speaker 2: actually just start investing today and putting ourselves in the
Speaker 2: best possible position. And I mean right now, coming into
Speaker 2: the second half of the year. Like a book called
Speaker 2: The Quick Start Guide to Investing feels like the book
Speaker 2: I actually need, Like if I'm not at the start
Speaker 2: of year and I need some motivation, that's maybe not
Speaker 2: New Year, New Me vibes, but like, let's just get started. Glenn,
Speaker 2: you already have a book. Why did you want to
Speaker 2: write another one?
Speaker 4: Because I wanted to just get to the point.
Speaker 2: And why didn't you get to the point in your
Speaker 2: first book?
Speaker 4: Because with my first book, Soort Your Money Out, people
Speaker 4: would always ask me, oh, what do you think about money?
Speaker 4: Or how should I get out of debt? Or how
Speaker 4: should I build a budget? Or how should I set
Speaker 4: up superannuation? Here's my book, He's all my thoughts. But
Speaker 4: this book it is smaller. So like I had a
Speaker 4: message from my cousin the other day and she said, Glenn,
Speaker 4: everyone at works talking about this trade a three thousand platform.
Speaker 4: What do you think. I'm like, it sounds like rubbish,
Speaker 4: that sounds like a scam. Yeah right, I said, I'm
Speaker 4: literally getting the book and I'm giving you a copy
Speaker 4: because that book is everything I think about investing.
Speaker 2: That's why I wrote my Investing one, because I think
Speaker 2: you were the same as me. I was so excited
Speaker 2: to write a book, and I thought, I'm just going
Speaker 2: to put everything I know about money in this one
Speaker 2: and I'll be one and done.
Speaker 4: That's right.
Speaker 2: I will never write another book again. The writing process
Speaker 2: is so challenging, and I know you and I struggle
Speaker 2: with the same stuff. So we were both like, writing
Speaker 2: a book challenging as hell. But then obviously the questions
Speaker 2: come and people want more, and it's exciting to write
Speaker 2: another book because you can really niche down into a
Speaker 2: particular topic. So like I was being rude before, but
Speaker 2: that's maybe because I know you, But also I'm really
Speaker 2: excited to dive into this. But our community is also
Speaker 2: really excited to dive into this. I'm going to use
Speaker 2: this as a little bit of a Q and A session.
Speaker 2: I'm asking the questions, you're answering them, Glenn, I've got
Speaker 2: you captive Christa has asked, at what point should you
Speaker 2: move from micro investing to a big league investing platform.
Speaker 4: It's a very interesting and common question, and I actually
Speaker 4: think if the platform or the setup that you've got
Speaker 4: at the moment is working and the shoe fits, I
Speaker 4: don't know if you need to graduate. I mean maybe
Speaker 4: if you were starting to build significant amounts of wealth.
Speaker 4: I think the question always and it's exactly what I
Speaker 4: covered in the strategy chapter of the book. The question
Speaker 4: needs to be more about what's your long term strategy
Speaker 4: goals and why and what ownership structure do we need
Speaker 4: to house that investment in. Then we can work on, Okay,
Speaker 4: what's the best platform, app, brokerage account, Because what you
Speaker 4: invest in and how you own the investment, whether it's
Speaker 4: in your own name, whether it's in your superannuation, whether
Speaker 4: it's in trust if you're a complex investor, whether it's
Speaker 4: an investment bond, whether it's a joint name account, whether
Speaker 4: it's in a company, all that stuff, how you own it,
Speaker 4: what you buy is more important than the actual underlying
Speaker 4: brokerage account or platform. But I think when the student
Speaker 4: is ready, the teacher will appear.
Speaker 2: That's fun.
Speaker 4: I think it was from like an old movie karate Kid.
Speaker 2: Maybe karate Kid. Yeah, don't quote me, but I thought
Speaker 2: you were going to like quote like someone really not
Speaker 2: eligible candy. Yeah, you're gonna be like that's a Gandhi quote.
Speaker 2: You're like wow, deep and you're like karate Kids. So
Speaker 2: I was like, oh, okay.
Speaker 4: As an example, I think one of my hobbies is
Speaker 4: technology and.
Speaker 2: And purchasing useless technology. Is that what you mean?
Speaker 4: Yes, So I wanted to when I set up my
Speaker 4: first podcast studio.
Speaker 2: This man is not lying.
Speaker 4: I wanted to get all these camera gear, and you know,
Speaker 4: you buy the first camera and you get to the
Speaker 4: point where you know it so well. The limitations appear
Speaker 4: the more that you know and I know nothing, and
Speaker 4: then it's like, okay, so I'm now upgrading from a
Speaker 4: maybe a little Sony handheld digital SLR.
Speaker 2: We're still there yet.
Speaker 4: I went to black Magic, which is remember that like really.
Speaker 2: High using those no good about investment.
Speaker 4: It was good at the time, but too complex for
Speaker 4: what I needed. So now I'm back to Sony cameras
Speaker 4: from JB High Fire. And I say that to say,
Speaker 4: with you're investing, the more that you learn about the platform,
Speaker 4: what you're investing in. You know, in the book we
Speaker 4: talk about building your portfolio. Do you want a single
Speaker 4: share portfolio of ten individual shares? Do you want a
Speaker 4: DIY three ETF simple portfolio, or do you want to
Speaker 4: one and done investment in a box ETF portfolio.
Speaker 2: I feel like I'm on the same page as you
Speaker 2: about that. But that shouldn't be surprising to anyone who's
Speaker 2: ever heard us create content together. Yeah, because we're always like, yeah,
Speaker 2: that sounds about right.
Speaker 4: Well, my answer to the question is continue to learn
Speaker 4: about why you're investing, what you're investing in, what your
Speaker 4: investment strategy is, and then you'll start to see if
Speaker 4: there are any limitations to your current platform or brokerage account.
Speaker 4: There is a big discussion out there in personal finance
Speaker 4: land around chess sponsorship, brokers and custodium what is And
Speaker 4: I went to town on it in the book, gave
Speaker 4: my two cents.
Speaker 2: I know what that two cents is and can you
Speaker 2: just spoil it for us? How do you feel about
Speaker 2: chess sponsorship? So I think actually that track for those
Speaker 2: listening who are like, hold up, hold up, this has
Speaker 2: gone real deep, real quick. What is chess sponsorship? Glenn.
Speaker 4: So. Chess is the system at the ASX Australian Securities Exchange,
Speaker 4: and Chess is the system that electronically tracks purchases and
Speaker 4: assigns that to a dedicated number quarter HIN identification number. Now,
Speaker 4: if I opened a brokerage account that was quote unquote
Speaker 4: CHESS sponsored, it would be under the name of Glenn James.
Speaker 4: I could then log in purchase shares in I don't know,
Speaker 4: Woolworth's or whatever, and then on the AX register it
Speaker 4: would say, you know, one hundred shairs in Woolworth's HIN
Speaker 4: number Glenn James yep, and then that's track yeah, directly
Speaker 4: on my personal name. With a whole bit of different
Speaker 4: investment apps and platforms, they have what we call an
Speaker 4: omnibus hin, which means, you know, if I created my
Speaker 4: own investing platform called the Glen James Investing.
Speaker 2: Platform, moneybus sounds like something I get on in Bali
Speaker 2: to go to.
Speaker 4: A club sounds pretty fun.
Speaker 2: It's not that fun. But sorry, like Bali, I do digress, Yes,
Speaker 2: I do, like Bali. I've been a few times.
Speaker 4: Yeah, I'm going in November.
Speaker 2: Okay, well we'll talk about that later.
Speaker 4: So if I created a platform and this is where
Speaker 4: the advantages are with micro investing. I could have all
Speaker 4: these shareholders use my platform and we have one HIN
Speaker 4: or one listing with the ASX, and then that HIN
Speaker 4: is spread all through the different owners. Now that money
Speaker 4: that we invest on the platform is held in custody
Speaker 4: or on trust, So if the Glenn James investment platform
Speaker 4: goes under quote unquote, people's money isn't lost. Now there
Speaker 4: is this thing in personal finance land and stockbroking land
Speaker 4: where there is a purest play that you must hold
Speaker 4: investments on your own hint for absolute security. I push
Speaker 4: back on that to say, if you're going to have
Speaker 4: that logic, you need to be careful because everyone or
Speaker 4: most people's superannuation is effectively in a custodian model. If
Speaker 4: you buy ETFs, you are not buying the underlying shares,
Speaker 4: You're buying units in the ETF. The wealth is on
Speaker 4: custody on the ETF provider's balance.
Speaker 2: Sheet, and both you and I, Glenn, I think this
Speaker 2: probably tells people a lot because we obviously can't give
Speaker 2: advice on well what should I do there? But let
Speaker 2: you and I both own ETFs and both of us
Speaker 2: have superanuation funds that operate under a custo to your model,
Speaker 2: and we are both comfortable with that.
Speaker 4: I don't have any of my wealth with a Chess
Speaker 4: sponsored broker, And the main thing is when you strip
Speaker 4: back and look at your strategy and how you're going
Speaker 4: to invest. The main thing for me is paperwork and
Speaker 4: ease of administration. So I have my investments on a
Speaker 4: platform and that platform has its own hint with the
Speaker 4: registrar and every year I get consolidated tax report. I
Speaker 4: don't have to keep records myself. And for me, you know,
Speaker 4: every time there's a dividends paid, they get paid into
Speaker 4: the cash account and then they get sucked back up
Speaker 4: and I have to repurchase ETFs. I don't have to
Speaker 4: keep any records.
Speaker 2: And that's worthy of consideration because so many people get
Speaker 2: caught up in this purest model of going. But that's
Speaker 2: the right thing to do. But the risk that is
Speaker 2: being carried in that decision, a whole heap has to
Speaker 2: happen to the Australian economy before you would be impacted.
Speaker 2: Like we're talking banks falling down before that's a thing.
Speaker 2: And I promise you there are bigger fish to fry
Speaker 2: when it comes to setting up your.
Speaker 4: Platform and I think my thing and we will move
Speaker 4: on to the other questions. But you know we've both
Speaker 4: had paid work with Chasi's they're a platform or on
Speaker 4: app in Australia and New Zealand. I don't want you
Speaker 4: to be scared by people online saying you've got to
Speaker 4: have a chest sponsored broker and you've got to do
Speaker 4: it this way. Let's celerate people investing on that.
Speaker 2: I also think it's really important to understand that when
Speaker 2: it's not chess sponsored, it's more accessible. So accessibility is
Speaker 2: something that to me is incredibly important in this investing world.
Speaker 2: And a platform like shares Is enables you to purchase
Speaker 2: fractions of shares and that is never going to be
Speaker 2: possible if you want to be completely chess sponsored individually,
Speaker 2: that's right, Like it's just not going to be an option.
Speaker 4: And so for example, when we talked about before, if
Speaker 4: you are cleaning up your mess, if you are building
Speaker 4: your career, if things are tired and you still want
Speaker 4: skin in the game, and you've got an income of
Speaker 4: fifty thousand dollars a year, one percent of year is
Speaker 4: five hundred dollars, that's forty one dollars a month.
Speaker 2: That's pretty achieve You can't do that.
Speaker 4: With a brokerage account. You've got to use an appal platform.
Speaker 2: Yeah, exactly.
Speaker 4: Now I will say as well, if you have a
Speaker 4: brokerage account, and because you're a chess purist and you
Speaker 4: only buy shares that are direct in your name with
Speaker 4: the ASEX, must be nice. The moment you go onto
Speaker 4: your brokerage account and buy direct shares in Tesla, Microsoft
Speaker 4: Apple in the US, you're exiting the chest system. Yeah,
Speaker 4: so you're going back into custody. Most of the world
Speaker 4: operates in the custodian model.
Speaker 2: It's not that common.
Speaker 4: Yeah, So let's just have a shower and a chill
Speaker 4: pill cold shower, that is. And don't get scared by
Speaker 4: other people saying you have to do this. Because one
Speaker 4: thing I was really proud of, which we'll put a
Speaker 4: link in the show notes in the back of the book,
Speaker 4: I've got what we call an investing constitution, and what
Speaker 4: I challenge people to do is go through your investing constitution.
Speaker 4: So an example, here, you write down your goal, your why,
Speaker 4: your time horizon, your asset allocation, the ownership structure, the
Speaker 4: investing strategy, how you're rebalancing, what you're doing. So when
Speaker 4: things get tough or when you hear people say, oh,
Speaker 4: do it this way, we'll do it that way.
Speaker 2: You Oh no, No, I've got my formula, I've got
Speaker 2: my strategy. I have my own plan, thank you.
Speaker 4: Yes. So a lot of it is turning down the
Speaker 4: noise and being so clear on your own investing strategy.
Speaker 2: I think that's really important. All right, let's move on
Speaker 2: to the next question, because I feel like it does flow.
Speaker 2: Bell has asked Glenn, how do I pick a platform?
Speaker 2: There are so many I would say to Bell, how
Speaker 2: do you pick a car?
Speaker 4: There are so many I want to know.
Speaker 2: So, like if I wasn't in an investment land and
Speaker 2: I didn't have any level of understanding this, how do
Speaker 2: we understand what's a sham? Like before you were telling
Speaker 2: me off air that someone had asked you about an
Speaker 2: investing platform that both you and I immediately we heard
Speaker 2: the name, well like scam, absolutely steer clear. But how
Speaker 2: do we get to being able to identify that and
Speaker 2: then picking a platform that works for us?
Speaker 4: Yeah? So I think again, I do sound like a
Speaker 4: broken record, And this is why, Okay, you.
Speaker 2: Haven't sounded like a broken record in a long time
Speaker 2: on my podcast, So just bring.
Speaker 4: It back, all right, we're bringing it back the old classics.
Speaker 4: The whole thing about this philosophy this book is to
Speaker 4: work out why you're investing, So the why, how long
Speaker 4: you need to be invested for what you're going to
Speaker 4: be investing in. Do you want to do direct equities?
Speaker 4: Do you want to do ETFs? Do you want to
Speaker 4: do one soop shop? You nail that stuff and then
Speaker 4: you go, okay, what do I want to invest in?
Speaker 4: So it could be well, I actually want some American equities,
Speaker 4: I want some Australian or I just want to invest
Speaker 4: in Australia. So we work out exactly what we want
Speaker 4: to invest in. Then once we're clear on what we're
Speaker 4: investing in. And so if someone's thinking, like you've got
Speaker 4: older listeners who might be ten years out from age sixty.
Speaker 4: If someone's like, I just want to build wealth for retirement,
Speaker 4: well the question is we're probably looking at superannuation for that,
Speaker 4: So we're not really looking at an app or a platform.
Speaker 4: So once you get on your strategy and the why
Speaker 4: and the what, then we can look at the how.
Speaker 4: A lot of the discussion online and everything you see
Speaker 4: it always speaks to the how and the execution is
Speaker 4: always the easiest part. Well, if you're, for example, like
Speaker 4: I'm really comfortable investing in the top two hundred shares
Speaker 4: in Australia via an index, you've worked that out, you
Speaker 4: can go, okay, well what do we look at? You
Speaker 4: could ask your friends and family, Hey, what investment platform
Speaker 4: do you use and what do you like about it?
Speaker 4: Or you could ask people online. But the thing is
Speaker 4: you've just got to be so careful that when you
Speaker 4: ask these questions, people's response isn't going to impact your
Speaker 4: strategy or deter you from what you want to do.
Speaker 4: But I think any type of you know, if you
Speaker 4: want to get to the technical things, reputable platforms, they've
Speaker 4: got to be licensed in Australia. So on their website
Speaker 4: at the very bottom the front page of every money website,
Speaker 4: your website, she's on the money, my website, go to
Speaker 4: the very bottom of the front page. You'll have details
Speaker 4: of their license. Our websites have details.
Speaker 2: Of our lifeyple check that license.
Speaker 4: Google reviews, heck, send, probably don't, but do it whatever
Speaker 4: ask us and we'll say. Facebook group people will tell
Speaker 4: you like, I think it's getting to a trusted community.
Speaker 4: We can't give personal advice, but for example, as a
Speaker 4: bit of a sales thing for my audience, I tell them.
Speaker 2: I've told people in my community that's a scam, don't
Speaker 2: do it.
Speaker 4: Yeah, So I'll tell people.
Speaker 2: If I'll tell you I think it's trash.
Speaker 4: But if it's not trash, we'll say, you can't tell you.
Speaker 2: No, no, no. If it's trash, I'll be like, do not
Speaker 2: touch that with a ten foot poll. Then if you
Speaker 2: send me something that you know is legitimate, I'll be like, hey, yeah,
Speaker 2: I had a look online. They have a credit license.
Speaker 2: I have no experience with this platform. Good luck. Like,
Speaker 2: I can't give you advice, I can't tell you what
Speaker 2: to do, and I never will because even though it's illegal,
Speaker 2: it's also for me quite unethical, Like I don't know
Speaker 2: your situation, like that could be the perfect platform for you,
Speaker 2: or you might have a whole heap of stuff going
Speaker 2: on that I have no idea about and it doesn't
Speaker 2: make sense for you. So it's irresponsible of us to
Speaker 2: have an opinion. But I will stop you from jumping
Speaker 2: into a scam.
Speaker 4: I won't tell anyone on my podcast or in my
Speaker 4: Facebook group what investment account that I use or what
Speaker 4: I invest in?
Speaker 2: What do you invest in?
Speaker 4: Well, I can't tell you, but in the book, we've
Speaker 4: got lots of practical examples, right, And I said to Nick,
Speaker 4: if we're using practical examples, I need to do a
Speaker 4: disclosure section at.
Speaker 2: The back, so the outline that they never paid.
Speaker 4: So like for example, it's like disclosures Glen Hold's the
Speaker 4: following investments mentioned in this book. There's some of the
Speaker 4: investments that I personally hold.
Speaker 2: I'll see how number one is bitcoin?
Speaker 4: I did it. Well, don't read the other ones. Gosh,
Speaker 4: but I said listed alphabetically. I just did it alphabetically.
Speaker 2: Okay, so Bitcoin's still number one, don't worries.
Speaker 4: Yeah, Glenn has active accounts with don't you read them live? Oh,
Speaker 4: same as me and Glenn's business we host the podcast
Speaker 4: has been paid or I've done corporate speaking with Amazon
Speaker 4: aware super So I think what I'm saying is, if
Speaker 4: you want to know what I use personally, by the book,
Speaker 4: but I like that. I like all that go to
Speaker 4: a reputable community like your Facebook group and ask other
Speaker 4: like market investors.
Speaker 2: Yeah, the conversation. Look at Google reviews, So don't take
Speaker 2: some random person's opinion as gospel, like do your own research,
Speaker 2: get comfortable with it. That leads me into Glenn, I
Speaker 2: just saw a name in your book that we won't
Speaker 2: read on the show, but Kelly has asked, Glenn, how
Speaker 2: do I invest for my child?
Speaker 4: You've got a variety of options. I think it's one
Speaker 4: of the most complex areas. And number one, if you
Speaker 4: want to do it the right way, you have to
Speaker 4: set up a tax file number for your child. And
Speaker 4: then if you set up an investment account. So like
Speaker 4: heaps of investment platforms and companies, they allow you to
Speaker 4: click set up a child account, right and it just
Speaker 4: mirrors the account and it can be on trust for
Speaker 4: the child. Then what you basically have to do is
Speaker 4: you have to declare that income or dividends on the
Speaker 4: child's tax return. The problem is when you're a minor.
Speaker 2: You have there's a lot tax rate.
Speaker 4: Yeah, and then it steps up to sixty and then
Speaker 4: back to forty. Like it's it's a cook to savage.
Speaker 4: So my personal view is so get.
Speaker 2: Rich, getting richer, so like I'm not that mad, but
Speaker 2: at the same time, like make it easier for people
Speaker 2: trying to invest for their kids.
Speaker 4: Yeah, it's a big discussion. I personally, for my niece
Speaker 4: and nephews have an investment bond. I've got the view
Speaker 4: with because I did a holy research on all the
Speaker 4: options that you can do, and if you want, I
Speaker 4: can share a link to the blog. I would love
Speaker 4: the show notes and it will just step through. I
Speaker 4: think there's six different ways you can invest you kids,
Speaker 4: and just quickly I've resolved after doing all that research
Speaker 4: that healthy parents financially or financially healthy parents they'll do
Speaker 4: equals healthy financial kids. And the only other thing as
Speaker 4: well that I think is really cool. If you're a
Speaker 4: little bit older, and if you have kids and you're forty,
Speaker 4: for example, or in your forties, and once you get
Speaker 4: to age sixty, the kids are going to becoming quote
Speaker 4: unquote online as adults, So eighteen, twenty thirty or whatever,
Speaker 4: you could actually set up a separate superannuation account in
Speaker 4: your name and just put money for the kids in
Speaker 4: there and just have that turn off the insurances put
Speaker 4: them as a beneficiary, so the estate planning is protected.
Speaker 4: It's very complex, but that's I like that option, but
Speaker 4: I honestly.
Speaker 2: Think sound's way too complex for me, Like not for me,
Speaker 2: in general, but I think exceptionally yeah as a concept.
Speaker 2: If you are, you know, a little bit overwhelmed with
Speaker 2: the space, I think the first thing I would do
Speaker 2: is go what type of tax do I have as
Speaker 2: an individual, and how is this going to impact my
Speaker 2: child's investment because most investments are going to be kept
Speaker 2: in your personal name until the child becomes eighteen or
Speaker 2: until you decide to give them access to it, and
Speaker 2: that's going to put you in a position where, you know,
Speaker 2: if you are on the highest marginal tax rate, is
Speaker 2: that something that you want to consider. If you are
Speaker 2: on the highest marginal tax rate and you want something
Speaker 2: like an investment bond, have a look into them like
Speaker 2: they are not a bad option. I know you use
Speaker 2: them for your niece and nephew, and we have recently
Speaker 2: established one for Harvey. So for me, it's a really
Speaker 2: good tool. It's quite tax effective, and there's obviously a
Speaker 2: lot of benefits. There's also a little bit of a
Speaker 2: barrier to entry. You need to have a certain amount
Speaker 2: of money to be able to access it. It's not
Speaker 2: like a share'ss where you can go on the platform
Speaker 2: and just start investing with as you know, like a cent,
Speaker 2: but at the end of the day, you need to
Speaker 2: have a look at all of these options. And I
Speaker 2: do talk about it in my book. I know you
Speaker 2: touched on it in your first book. Have you touched
Speaker 2: on it in your second book? What about the options
Speaker 2: about investing for children?
Speaker 4: I didn't heaps touch on it. I did a little bit,
Speaker 4: so in the strategy chapter, I did a deep analysis
Speaker 4: on the six ways that you can own things, so
Speaker 4: in your own name, joint name, super investment on company,
Speaker 4: and trust and each of those things. I did a concept.
Speaker 4: I did how tax works year on year. I did
Speaker 4: how tax works when you sell the shares, and most importantly,
Speaker 4: estate planning for each option, and then the pros and
Speaker 4: cons of.
Speaker 2: Each, which is all really important to understand before you're
Speaker 2: planning on investing for a child. Anyway, I feel like
Speaker 2: lots of us want to invest for our children and
Speaker 2: want to put them in the best possible position, but
Speaker 2: often it's to our demise. Maybe you're not investing for
Speaker 2: yourself first, you don't have an emergency fund for yourself.
Speaker 2: I think there are a lot of things that we
Speaker 2: need to be planning for, and pouring from an empty
Speaker 2: cup is not possible. So like set your financial house
Speaker 2: up for you and then work out what you're planning
Speaker 2: on doing.
Speaker 4: You know, I'm a pragmatist to a fault, and you
Speaker 4: know when I was practicing as an advisor and you're
Speaker 4: now a retired advisor. Slave, welcome to the retirement club.
Speaker 2: Thank you.
Speaker 4: The amount of people that we set up investments for
Speaker 4: kids when the child was born four years down the track,
Speaker 4: I'll need a new lounge or we need something, and
Speaker 4: they I will just take that money like it doesn't
Speaker 4: I don't know, Like it's just tough, and I just think,
Speaker 4: build wealth in your own name.
Speaker 2: And distribute it to those kids and lay it down
Speaker 2: the show when.
Speaker 4: They need it. You might want to help your child
Speaker 4: out when they turn it in they're switched on with money,
Speaker 4: like hey, let's set up a shared investment account in
Speaker 4: your name. I'll see to it. With five grand I'll
Speaker 4: do that. Or they might be free spirit I want
Speaker 4: to get all right, we're going to pay for your
Speaker 4: flight to Europe. We want you to have this life
Speaker 4: giving experience. Or I don't know. I just think healthy
Speaker 4: financially healthy parents equals options for kids if they're not
Speaker 4: little brats and you want to help them when they
Speaker 4: come online as an adult. True.
Speaker 2: All right, Moving on, Maddie has a question. She wants
Speaker 2: to know, Glenn, what are the downfalls of having multiple
Speaker 2: investing platforms. I have a few at the moment.
Speaker 4: It's just going to record keeping. So number one, if
Speaker 4: you've got, say a traditional brokerage account might be with
Speaker 4: one of the big banks, You're going to keep dividends
Speaker 4: records each year. Some of those brokerage accounts will not
Speaker 4: pay interest on cash that's in the cash account. You
Speaker 4: need to check that with your investment app or platform.
Speaker 4: Another downfall is you may have investment overlap. So if
Speaker 4: I've got I don't know, a Comsec account over here,
Speaker 4: and I'm invested in IoZ, which is the Australian two
Speaker 4: hundred index by black Rock Top two hundred Companies weighted Index,
Speaker 4: and then on my Chase's account, I invest in VAS,
Speaker 4: which is the Vanguard Australian Share Index, which invests in
Speaker 4: the top three hundred Autralian companies, You've literally got overlap,
Speaker 4: I would probably say. And this is cool because when
Speaker 4: you get started, and we've all been guilty this, we
Speaker 4: set up different investing apps and accounts and oh this
Speaker 4: is cool. I would say, probably pick one that you
Speaker 4: like using the most, one that has the features that
Speaker 4: you like, one that might be really easy for reporting,
Speaker 4: the one I use. I just like it and it
Speaker 4: does the job and it's sweet, then you might go okay.
Speaker 4: Any in the money world, we call it new money.
Speaker 4: If you're investing new money, which is I've been paid,
Speaker 4: it's been in my savings account, then I've moved it
Speaker 4: onto the app or the platform. You might decide that
Speaker 4: going forward, any new money will be directed to this
Speaker 4: investment account, and I'm going to just use this going forward.
Speaker 4: You might be able to do an in specie transfer
Speaker 4: from the other investment account and move the ETFs or
Speaker 4: shares across to the new one. But I think it's
Speaker 4: just about having clear and clean housekeeping. The downsides, they're
Speaker 4: not really going to be hugely financially detrimental, because if
Speaker 4: you're just holding ETFs and not doing new investments, well,
Speaker 4: the ETFs have internal fees, so you'll get on either platform.
Speaker 4: The only downside would be if you're paying investing on
Speaker 4: one week and the next the other week into the
Speaker 4: same underlying vibe for what it's worth, you might pay
Speaker 4: higher brokerage on one. But I shared some options in
Speaker 4: the book where if you go through this set your strategy,
Speaker 4: you're like, oh crap, I've been building wealth in my
Speaker 4: super but I should use this option instead, or whatever reason.
Speaker 4: I talk about ways how we can unscramble that egg.
Speaker 2: Unscramble an egg, I would actually that's impossible.
Speaker 4: Done possible as said it is, but there are ways
Speaker 4: to slowly cut over. But in my life I've got
Speaker 4: one main platform per entity, So in my.
Speaker 2: Own I feel like that's the most important part of
Speaker 2: it for me. Right, Like, when I look at that,
Speaker 2: I go, well, if you've got multiple platforms, I'm assuming
Speaker 2: you would across the board have the same risk tolerance,
Speaker 2: which means you've probably picked very similar assets on both platforms,
Speaker 2: and therefore the diversification is probably not having the intended impact.
Speaker 2: I would say that, being really generalist about it, you've
Speaker 2: probably picked an Australian ETF in one and probably something
Speaker 2: similar but maybe something different, and you're just overlapping and
Speaker 2: it's not actually giving you the diversification.
Speaker 4: Though you've reminded me something of which is cool. So
Speaker 4: Nick Bradley, who was my co author, who talks about
Speaker 4: advanced strategies like options trading and swing trading, and you know.
Speaker 2: Trying to time the market is wild.
Speaker 4: He's great. I love him. So what if Maddie, you
Speaker 4: were like, oh, I really love investing and I want
Speaker 4: to do what all these people say. So basically, once
Speaker 4: we work out what our investment strategy is, part of
Speaker 4: that could be I want to allocate ten percent of
Speaker 4: my portfolio to individual companies, so Specky's or oh I
Speaker 4: saw this company, I think they're an up and comer.
Speaker 4: You may set up, Maddie one of your accounts as So,
Speaker 4: if I had a total twenty thousand dollars investment account
Speaker 4: we have, we call it twenty thousand dollars. Because Maddie's
Speaker 4: growing financially successfully, she might say, this account over here,
Speaker 4: I'm going to keep around two thousand dollars in it,
Speaker 4: and I'm going to buy individual shares just because I
Speaker 4: want to be interested in investing. I want to buy
Speaker 4: JB Hi Fi, I want to buy a Cole's Woolworths,
Speaker 4: and the other one she keeps her broad based ETF.
Speaker 4: Long term, I'm just building wealth over here because in
Speaker 4: this other account she's quarantined the money, which helps with behavior,
Speaker 4: and if she invests two thousand dollars in a single
Speaker 4: stock and that single stock gets flushed, it's not going
Speaker 4: to flush her whole portfolio. So maybe, depending how interested
Speaker 4: you are, Maddie, you could actually say, well, one of
Speaker 4: these accounts will be my long term broad based portfolio.
Speaker 4: The other one has ten percent of my total value, which,
Speaker 4: because I'm interested in individual shares, I'll do it that way.
Speaker 2: All right, let's go to a really quick break, Glenn,
Speaker 2: And on the flip side, I have a few questions
Speaker 2: about mindset and your favorite income streams, and I also
Speaker 2: want to talk about reverse engineering some investment goals. So
Speaker 2: guys don't go anywhere. All right, Glenn, we are back,
Speaker 2: and I have a question from Claudia. Claudia says Glenn James,
Speaker 2: what is your favorite passive income stream?
Speaker 4: Oh, I reckon my book royalties.
Speaker 2: But how much you're making from not much?
Speaker 4: Yeah doesn't mean the most successful?
Speaker 2: Yeah, Okay, that's true. That's true. Why is it your favorite?
Speaker 4: Okay? So we hear about this stuff online all the
Speaker 4: time about passive income, right, and I see people post
Speaker 4: stories like, oh, I've got my passive income.
Speaker 2: I do affiliate marketing.
Speaker 4: Yeah, or I was literally last night in the hotel
Speaker 4: in the bath looking up new propeller for my boat.
Speaker 2: Baths at they w They're nice, really nice, Yeah, really nice,
Speaker 2: like kind of woodlog fire vibes.
Speaker 4: Love it. And so this company that I purchased the
Speaker 4: propellers from, it was kind of their Yeah, well we
Speaker 4: all need a propeller. If you've got a boat, don't
Speaker 4: at me everyone you get a boat. Yeah, it is
Speaker 4: carry on. That's what I value.
Speaker 2: It's your favorite passive income stream. Hey, is that what
Speaker 2: you did with your income stream? You've got a passive
Speaker 2: income stream, You've got a boat. Okay, again relatable.
Speaker 4: So this guy that I purchased the propellers off, that's
Speaker 4: his side hustle, right, that's his side thing. Now I've
Speaker 4: seen people online say I've got this passive income thing.
Speaker 4: I sell propellers on eBay or marketplace. Okay, there's not
Speaker 4: much passive in boxing up a propeller, printing a postage labor.
Speaker 4: It's pretty active. Yeah, So, I honestly think the best
Speaker 4: passive income thing that you'll get on this island or
Speaker 4: anywhere in the world is investing in shares.
Speaker 2: Yeah, that's what I was going to say, was mine.
Speaker 2: I mean, Claudia didn't ask me, she asked.
Speaker 4: You, but what's your favorite investing in shares?
Speaker 2: I would say it's my share portfolio because I don't
Speaker 2: do anything to it. And if tomorrow I stopped investing
Speaker 2: and stopped adding, I guess because every month we add
Speaker 2: a certain amount to it. If I stopped, it would
Speaker 2: still pay me. And I agree, like it's very cool
Speaker 2: to have book royalties, but like that depends on whether
Speaker 2: people are purchasing my book and marketing and branding. And
Speaker 2: I'm assuming at some point people are going to stop
Speaker 2: purchasing my book, whereas my shares are well diversified and
Speaker 2: kind of set and forget in the Australian share market
Speaker 2: and the international share market to be really clear out.
Speaker 4: And I will say so Claudia, I would say as
Speaker 4: well that if you're thinking about this stuff, what are
Speaker 4: you really good at in your life? Because sure, like
Speaker 4: I've written a book, I've done online courses and all
Speaker 4: that stuff. There's a lot of active work to start with,
Speaker 4: but once it's launched, it's pretty low maintenance.
Speaker 2: Everything that is going to create good passive income I
Speaker 2: believe takes really big initial investment, not necessarily financial, but time, energy, effort, planning, research.
Speaker 4: Well you think. So if someone's like, oh, I want
Speaker 4: to invest in shares because it's the only passive income
Speaker 4: game in town, there's got to be a trade of
Speaker 4: human capital. So if you want to put I don't know,
Speaker 4: one hundred dollars in your investing account, if you're on
Speaker 4: thirty three dollars an hour, it's three hours of your time.
Speaker 4: But also it's probably more because thirty three dollars an
Speaker 4: hour it's pre tax. And that's kind of you talked
Speaker 4: about mindset. I did a whole chapter in this book
Speaker 4: about establishing your investing mindset and having the mindset of
Speaker 4: an investor and ask YOUVD, why do you invest.
Speaker 2: Because I want to be rich? AF it's good.
Speaker 4: Answer, richie most wealthy, acting richual making folks. So as
Speaker 4: long as you don't act rich, that's fine.
Speaker 2: I mean, I've fallen into the trap of that, right,
Speaker 2: Like I think that I definitely have fallen into the
Speaker 2: trap historically of like lifestyle creep and enjoying life. And
Speaker 2: I don't regret that, but I feel like I'm making
Speaker 2: wealthier decisions now, which is really nice. But if I'm
Speaker 2: being frank like, I am investing because I want to
Speaker 2: be wealthy, and I don't think that there should be
Speaker 2: any shame around that. I think that we should be
Speaker 2: more open with that. I think, you know, obviously, in
Speaker 2: addition to creating wealth for me and my family, I
Speaker 2: feel like that to me is freedom of time. It
Speaker 2: is choice. It is giving my kids the best possible
Speaker 2: upbringing and experiences and setting them up so that they
Speaker 2: don't have to struggle financially. I mean, you can delve
Speaker 2: into it. But like if you said in a sentence, V,
Speaker 2: why do you like investing, I go, well, I know
Speaker 2: that every single month, I'm creating a asset that is
Speaker 2: going to pay me and pay my family into the future,
Speaker 2: and that to me is very sexy. I think that
Speaker 2: at the moment, there seems to be a lot of
Speaker 2: shame because we are in the middle of a cost
Speaker 2: of living crisis. And like I laugh at you sometimes
Speaker 2: because you have your boat and a lot of people
Speaker 2: come for you for that online. I mean they come
Speaker 2: for me when I fly business class on Points, they
Speaker 2: come for me, when I go to Europe, they come
Speaker 2: for me, you know, when I'm just doing day to
Speaker 2: day thing. But I also think that we need to
Speaker 2: remember that that is also earned, and it's not us
Speaker 2: showing it off in your face to be like na, Nah,
Speaker 2: it's actually us going, hey, we've done this ourselves from scratch.
Speaker 2: You can do it too. Like I don't think I'm
Speaker 2: a genius, and I know that you don't think you're
Speaker 2: a genius. In fact, I think we're both as baffled
Speaker 2: as each other that we've gotten this far, and I
Speaker 2: think that we need to look at it and go, well, actually,
Speaker 2: if Glenn and Victoria can do that for themselves, we
Speaker 2: can probably do something clearly similar.
Speaker 4: Yeah, And I would just say, you know, I'm speaking
Speaker 4: to your audience, but do you want the host of
Speaker 4: a money podcast who isn't financially successful? I mean, I'm
Speaker 4: not out there doing a hair growth.
Speaker 2: Have you read the book? No, No one will be
Speaker 2: paying for that.
Speaker 4: No, I'm not out there doing a get good abs podcast.
Speaker 2: Oh you could try, I could. Is it comedy?
Speaker 4: It is? It's fiction.
Speaker 2: But have you read and this is probably my favorite
Speaker 2: investing book and it's probably showing my nerdy a side
Speaker 2: the richest man in Babylon. So I probably haven't because
Speaker 2: you're planning.
Speaker 4: Touched on it.
Speaker 2: You would have picked up the book you needed it
Speaker 2: out the window because you don't have the patience for it.
Speaker 2: But right now, right now. But in that book it
Speaker 2: says you would never take advice on buying a diamond
Speaker 2: from a brick layer. And I think that that's a
Speaker 2: really important thing to carry irrespective of whether we're talking
Speaker 2: about money content or content in general. Like if you're
Speaker 2: going to get legal advice, Glenn, are you going to
Speaker 2: ask your mate at the bar or are you going
Speaker 2: to go, oh, this is actually pretty serious message in
Speaker 2: a crisis, And yeah, okay, that's fair, that's fair. But
Speaker 2: I think it's really important to remember that, like I
Speaker 2: would not want to take money advice from somebody who
Speaker 2: wasn't managing their money well, like at the crux.
Speaker 4: Of it, yeah, I just want a bit of a
Speaker 4: mind game for your listeners. And this is what I
Speaker 4: talked about in like knowing your why with investing. Have
Speaker 4: you got a simple money manto or vibe or plan
Speaker 4: for your life? And I share my three point plan
Speaker 4: for managing money.
Speaker 2: What does it get rich and then or die train?
Speaker 4: Yeah, so the first one Glenn James's three point plan
Speaker 4: managing money. I live on less than I own, like,
Speaker 4: straight up, I don't.
Speaker 2: Just honestly surprising, Yeah, I don't see that coming through.
Speaker 4: Really, I don't live on consumer debt. I don't have
Speaker 4: any personal loans. I live on lesson I own. Okay,
Speaker 4: that's the first thing I do. The second thing I
Speaker 4: do is I give generously. So I very You know
Speaker 4: I've outspoken about well, if you're struggling to make ends meet,
Speaker 4: it's not your time to give financially, you need to
Speaker 4: look after your family first. Or if you are in
Speaker 4: a position to help other people financially, do it. I'm
Speaker 4: not talking about those people that go, oh, I volunteer
Speaker 4: instead of giving. No, you volunteered once for half a
Speaker 4: day at work three years ago. You don't volunteer.
Speaker 2: I feel like there's going to be some people who
Speaker 2: feel attacked.
Speaker 4: But okay, Glenn, so I give generously. I'm a generous giver.
Speaker 4: The third thing I do is I invest the rest.
Speaker 2: So how should we be investing, Glenn, Well.
Speaker 4: However you like, that's in line with your values. But
Speaker 4: I really spend a bit of time in this mindset thing.
Speaker 4: I actually don't invest to have my investing account make
Speaker 4: me rich. And that's weird because I do. Yeah, so
Speaker 4: let's walk down this garden path.
Speaker 2: What shall we investing for then?
Speaker 4: Yep. So I'm living on less than I own, which
Speaker 4: means I'm having a good life. I'm buying propellers on eBay,
Speaker 4: going to debt and all that stuff. Yeah, I'm generous giver.
Speaker 4: I invest the rest. So how I invest the rest
Speaker 4: and what I'm investing the rest for is My whole
Speaker 4: thing is I'm parking money long term for the glen
Speaker 4: of tomorrow. And my only metrics I.
Speaker 2: Don't want to park it, Glenn. I want to park
Speaker 2: it and see it get bigger, and then that's for
Speaker 2: future v yea.
Speaker 4: So my guard rails with parking. It is must be
Speaker 4: higher than cash and inflation, and I'm happy to take
Speaker 4: the market risk.
Speaker 2: Okay, So that's basically what I do.
Speaker 4: I know.
Speaker 2: Like on the flip side, like for those of you
Speaker 2: listening along, Glenn and I are friends outside of podcast land,
Speaker 2: and I mean inside of podcast land as well, but
Speaker 2: I know what he holds, and he holds a lot
Speaker 2: of stuff that I hold. So I was shocked when
Speaker 2: he said I'm not investing to create wealth. I was like, sir,
Speaker 2: you are.
Speaker 4: Well, but this is So the mindset thing I want
Speaker 4: to teach people about mindset. I'm not investing to get
Speaker 4: one hundred percent return to make my life better overnight, because.
Speaker 2: Oh no, it's a long term thing.
Speaker 4: Well, like I've shared publicly on my podcast, i struggle
Speaker 4: with depression, anxiety. I'm collecting all the things right, and
Speaker 4: I know categorically that money doesn't fix your life. It
Speaker 4: makes it better. It gives you more options. So what
Speaker 4: I do is I encourage people just to invest the
Speaker 4: rest after they've lived and gived. I like that now.
Speaker 4: Within that, I'm comfortable with market returns from broad based indexes.
Speaker 4: And there's a heap of examples in the book where
Speaker 4: if I need my investing account to make lots of
Speaker 4: money so I can quit my job and my life's better,
Speaker 4: I would need to be hanging out in places in
Speaker 4: the investing world that is way too risky. Yeah, So
Speaker 4: we talked about the question of before who might have
Speaker 4: a hypothetical twenty thousand dollars portfolio. If she had a
Speaker 4: twenty thousand dollar portfolio and invested it in one unicorn
Speaker 4: and it got one hundred percent return in a year,
Speaker 4: amazing return. That's an extra twenty thousand dollars. That twenty
Speaker 4: thousand dollars. While it's great, i'll take it. I'm not
Speaker 4: allergic to money that's not quote unquote life changing. So
Speaker 4: we need to make sure. And this is why I
Speaker 4: wrote the career book. First, I think you had Shell
Speaker 4: on the show I did.
Speaker 2: Yeah, she was way better than you or as shy.
Speaker 4: Yeah she really is. Soort your career out and make
Speaker 4: more money. The first investment you should make is in
Speaker 4: your career because that's the annuity that produces the income.
Speaker 4: So that can change your human capital to money. So
Speaker 4: if I think my life sucks and I hate my life, well,
Speaker 4: to save enough money so I can quit my job,
Speaker 4: I need to be investing six grand a month to
Speaker 4: build out this big portfolio because when you're starting, the
Speaker 4: capital you put in will do more than the returns
Speaker 4: you're getting to start with. And if it takes five
Speaker 4: years to build up that, and if you did have
Speaker 4: five grand a month to invest, you're going through five
Speaker 4: years of hell. So let's go back and build a
Speaker 4: life that we like and we love. If you hate
Speaker 4: your job and you're listening, you might not be able
Speaker 4: to change tomorrow, but you can tomorrow start to think
Speaker 4: about what would my life look like if I was
Speaker 4: doing something I love, Because then the investing part isn't
Speaker 4: the answer to all my life problems.
Speaker 2: That's true, That is very true. I feel like it's
Speaker 2: about enjoying the rest coming to my no no worries,
Speaker 2: do I have to pay? Oh, thank you? That one
Speaker 2: was for free. We were talking about mindset, and we
Speaker 2: actually have a mindset question from Chelsea. She's asked, how
Speaker 2: Glenn do I mentally shift away from saving five hundred
Speaker 2: dollars every month to investing that amount. She's struggling with it.
Speaker 4: So I think what we need to do, Chelsea, is
Speaker 4: we get our house in order. And you know you've
Speaker 4: seen it. I've talked about in my Sound Financial House,
Speaker 4: It's in the book. We want to get to the
Speaker 4: point where we've got our emergency fund, we might have
Speaker 4: a budget and cash flow, we might have our insurance
Speaker 4: a setup, and we've got a good foundation. Then what
Speaker 4: we can do is say, okay, I say five hundred
Speaker 4: dollars a month. I want Chelsea to get really clear
Speaker 4: on her life goals now, whether that is I want
Speaker 4: to save up and buy a new lounge in a
Speaker 4: few months, whether I want to go to Europe or
Speaker 4: I don't want to just build wealth because I'm in
Speaker 4: this fortunate position. So once we've got our emergency fund
Speaker 4: and she's in the great position to have five hundred
Speaker 4: dollars free per month, can we at least start to
Speaker 4: put the toe in the water. Because it's a behavioral thing.
Speaker 4: So my challenge is, can you start by doing one
Speaker 4: hundred dollars a month investing for the long term or
Speaker 4: do some type of thing. It's like, all right, I
Speaker 4: need to do these lifestyle goals. So I think over
Speaker 4: the next twelve months it will cost me x. The
Speaker 4: rest is just going to be invested. But it's not
Speaker 4: all or nothing. You're allowed to start by doing one
Speaker 4: or two hundred dollars a month when I talk about
Speaker 4: in the book about starting with one percent of your income,
Speaker 4: if you are cleaning up your mess and all that
Speaker 4: stuff I talk about. Now, once we start to do
Speaker 4: what I call wholesale investing, now that isn't what ACID
Speaker 4: says that you've got over five hundred thousand dollars in
Speaker 4: someone's life. Five hundred dollars a month investing is real money.
Speaker 4: It's serious amounts. Right, we need to be very strategic
Speaker 4: on how we're buying, who's owning it. So is it
Speaker 4: in our own name, is it in a joint name,
Speaker 4: is it in superannuation? What we're buying, then we can say, okay,
Speaker 4: we're very clear on our strategy. Let's now ratchet up
Speaker 4: within the next three or four months. I want to
Speaker 4: get to the point where I am doing that five
Speaker 4: hundred a month. And I would say, Chelsea, even if
Speaker 4: you want to feel a little bit more comfortable, and
Speaker 4: if your emergency fund says three months of expenses, he's
Speaker 4: ten thousand dollars, maybe fifteen thousand dollars, then start investing
Speaker 4: like you're allowed to have a higher emergency fund just
Speaker 4: because you want to go.
Speaker 2: One hundred percent. And I feel like that mental shift
Speaker 2: away from saving to investing often it's because you feel
Speaker 2: like you're losing something because it's further out of reach.
Speaker 2: So making sure that you have your emergency fund set
Speaker 2: up and you are financially confident and you've got your
Speaker 2: cash flow going, that's going to mean that when you
Speaker 2: move into that investing space and that five hundred dollars
Speaker 2: that you've been saving each and every seath now becomes
Speaker 2: an investment. It doesn't hurt, it doesn't feel like you're
Speaker 2: missing anything. And I think that's then about making sure
Speaker 2: that you have enough clarity over that platform as well,
Speaker 2: so you can log in, you can see it, you
Speaker 2: can feel it. But often when I'm talking to people
Speaker 2: about starting their investing journey, I say save it first,
Speaker 2: because we don't want to find out that we couldn't
Speaker 2: afford to invest it and then we have to pull
Speaker 2: it out and it's not a good experience. Glenn, I'm
Speaker 2: running out of time, but I have another question for you.
Speaker 2: This one comes from Tara, and I feel like this
Speaker 2: is a fun question. Glenn. If you had fifty thousand
Speaker 2: dollars today, what would you do with it?
Speaker 4: Oh? I would?
Speaker 2: I feel like everyone it was in the investing question.
Speaker 2: So I'm assuming she thinks you're going to invest, but
Speaker 2: I know you're not going to.
Speaker 4: Well, I would like before we start a recording, I said, Oh,
Speaker 4: get Josh to bring in a tape measure because I'm
Speaker 4: about to build a new studio.
Speaker 2: You would buy a studio, probably do that or if
Speaker 2: it's with fifty thousand dollars, build a Glenn jay is
Speaker 2: approved studio.
Speaker 4: No, And that's this is the problem I've got. It's
Speaker 4: so annoying. Everything's expensive. But what it does speak to
Speaker 4: is because I'm at the stage in my life and
Speaker 4: a lot of your listeners are.
Speaker 2: Where where it's a retiree.
Speaker 4: Well, we're established, so you are.
Speaker 2: I spent all my money, Yeah, being dumb.
Speaker 4: So did I on that minset. That's how I feel, right,
Speaker 4: I'm terrible at saving money. I'm a terrible saver. I'm
Speaker 4: a great investor, So I've trained myself to be a
Speaker 4: great investor. If fifty thousand dollars came into my lap tomorrow,
Speaker 4: it would only go towards income producing assets. A little
Speaker 4: bit of giving.
Speaker 2: You get to hire your studio out to me if
Speaker 2: you come up to Newcastle, Newcastle asolutely go to your studio.
Speaker 4: But yeah, it would be income producing assets. Look, if
Speaker 4: it was had to go into an ETF, I'd probably
Speaker 4: split it between IVV and IoZ because I like those
Speaker 4: two ETFs YEP. Broad Based Index Australia the US. I
Speaker 4: don't hate to invest in quote unquote global ETFs YEP,
Speaker 4: because I've got the view that, for right or wrong,
Speaker 4: don't do what you want. Everyone don't do what I do.
Speaker 4: Most of the big companies listed on the US Exchange
Speaker 4: operate all around the world, and I just want a
Speaker 4: simple portfolio. But everyone you speak to when it comes
Speaker 4: to investing will have a different view or vibe.
Speaker 2: Of course, and you've got to work out your own
Speaker 2: that's right.
Speaker 4: So income producing assets. The best investment that anyone could
Speaker 4: ever make, I believe would be their own business. Not
Speaker 4: everyone's cut out to do that. That's okay, is hard,
Speaker 4: it is, So it's income generating is my studio or
Speaker 4: into ETFs, Although I do want a new car, all.
Speaker 2: Right, Well that's where we might leave it before this
Speaker 2: goes completely off track, Glenn. Where can we buy your
Speaker 2: book anywhere?
Speaker 4: Literally anywhere books are sold?
Speaker 2: Be nice to write a book, And then it's anywhere, okay.
Speaker 4: Right next to yours VD big WQBD dimicks.
Speaker 2: It's also in the link in our show notes. So
Speaker 2: it's super super easy for you.
Speaker 4: So I just want to thank all your listeners for
Speaker 4: you know, supporting what we do over at Money Money
Speaker 4: Money and our pod Vegas. And yeah, I say to people,
Speaker 4: if you buy the book and you're not satisfied with it,
Speaker 4: take it back to the retailer. Tell them it's faulty
Speaker 4: and see what happens.
Speaker 2: Oh my gosh, plend James, get off my show. Thanks
Speaker 2: for coming.
Speaker 4: See friends by.
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