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Speaker 1: Hello.

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

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Speaker 2: Order Kerney Whalbury and a waddery woman. And before we

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

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

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

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

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

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

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it.

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Speaker 3: She's on the Money. She's on the Money. Hello, and

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Speaker 3: welcome to She's on the Money cast for millennials who

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Speaker 3: want financial freedom. My name is beck Syed and with

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Speaker 3: me today is Victoria Device. Hello, Hi, Victoria.

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Speaker 1: Are you excited for today's episode?

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Speaker 3: Pretty?

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Speaker 1: You are not telling the truth that all I am.

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Speaker 3: I feel like by the end of this, hopefully I'll

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Speaker 3: know what any of this means.

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Speaker 1: You'll be like, why are we even talking about this?

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Speaker 1: It's important? I promise, is it?

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Speaker 2: Yeah?

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Speaker 1: It's so import Okay, I trust you. At the end

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Speaker 1: of the day, I'm not going to spoil what the

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Speaker 1: topic is, because it's your job to do us. But like,

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Speaker 1: picking the right one means you'll make more money. Oh

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Speaker 1: and you like money spicy.

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Speaker 3: Okay, well let me get straight into it. So basically

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Speaker 3: be today we are more investment focused, sexy. You will

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Speaker 3: be telling us about ownership structures of investments.

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Speaker 1: Hot.

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Speaker 3: Now, this is not an episode that you already need

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Speaker 3: to be an investor to listen to, right.

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Speaker 1: No, absolutely not. In fact, you are in the perfect

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Speaker 1: spot to listen to this, Okay, an investor already because

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Speaker 1: it can help you when you go to like kick

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Speaker 1: how am I going to invest for the first time?

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Speaker 1: Because one of the issues that you run into and like,

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Speaker 1: it's not to scare anybody who's already invested, Like you're fine,

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Speaker 1: I promise you are absolutely fine, and you're probably investing

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Speaker 1: in the right structure to begin with. This really comes

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Speaker 1: in if you have big investment amounts like inheritances or

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Speaker 1: you're talking about estate planning and stuff like that along

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Speaker 1: the long term and you just want to make the

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Speaker 1: right decision so that it benefits family members and the

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Speaker 1: future and potentially your tax rates. So it's good to

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Speaker 1: know beforehand. It's also good to know once you are

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Speaker 1: an investor, because you can always change your structure. And yeah,

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Speaker 1: it's just a very exciting topic to talk about. I

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Speaker 1: know you don't.

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Speaker 3: Care at all, but my.

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Speaker 1: Energy is enough for both of us one hundred percent.

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Speaker 3: And also, I will one day care about this stuff.

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Speaker 3: So I'm glad that we're learning about it.

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Speaker 1: But I really don't, and I'm happy to admit that

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Speaker 1: on the podcast that I co host.

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Speaker 3: Well, exactly right, just in case someone else is listening

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Speaker 3: needs the information, probably won't do anything with it. Right

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Speaker 3: now here with you. Also, I'm here with you, I

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Speaker 3: see you, I see you. So it's actually well timed

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Speaker 3: for those who are thinking of starting their investment journey.

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Speaker 1: Exactary, which is why I think it's important to know

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Speaker 1: all of this stuff before you purchase an asset, because

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Speaker 1: it's really important to consider, I guess, the most appropriate

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Speaker 1: investment structure to use. Obviously, getting it right at the

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Speaker 1: very beginning means that there's long term benefits. You don't

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Speaker 1: have the fuss of changing things. And as we all know,

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Speaker 1: if you own an investment today, and let's say it

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Speaker 1: does well, because that's the point of owning an investment,

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Speaker 1: right like you want it to do well over the

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Speaker 1: long term. If you get like ten fifteen years down

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Speaker 1: the track and then go, oh damn, I'm back, can

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Speaker 1: I wish I had a different investment structure. To change

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Speaker 1: things into a different structure is not as easy as

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Speaker 1: picking them up and just dropping them into another investment

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Speaker 1: vehicle or into a trust. You often have to sell

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Speaker 1: down all of those assets, which is going to trigger

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Speaker 1: what we call a CGT event, which is where capital

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Speaker 1: gains tax has to be paid. And that's not that sexy,

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Speaker 1: especially if you're like, well, actually, I was just trying

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Speaker 1: to protect my assets. So something that I have run

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Speaker 1: into historically when I was a financial advisor is I

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Speaker 1: would meet people who had significant wealth and a different

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Speaker 1: structure would work better for them. So they came to

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Speaker 1: me and said, hey, VE like, you know, my other

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Speaker 1: really rich friend at our really fancy dinner that we

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Speaker 1: went to was talking about a trust structure, and I

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Speaker 1: would really like one of those, because they told me

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Speaker 1: all of these sexy tax benefits and I just can't

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Speaker 1: believe I haven't thought of it yet. And I'd be like, ah, great,

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Speaker 1: step this way, let's have a chat, and then I

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Speaker 1: do all of the maths and work out what capital

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Speaker 1: gains tax might cost them and what it looks like

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Speaker 1: to change those structures, and it's just not financially feasible

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Speaker 1: for them because they've owned it for so long in

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Speaker 1: their own name and in a particular way that changing

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Speaker 1: it actually doesn't put them in a better or significantly

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Speaker 1: better off position. However, it would have been a better

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Speaker 1: position had they done it from the start. So it's

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Speaker 1: one of those things where it's better to just learn

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Speaker 1: before we actually get to the point where we're making

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Speaker 1: these decisions. And to be Really Morbid Morbid is my

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Speaker 1: favorite podcast, by the way, but to be Really Morbid

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Speaker 1: for a hot second, Over the next fifteen to twenty years,

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Speaker 1: we are going to see the biggest intergenerational wealth transfer

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Speaker 1: from boomers.

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Speaker 3: Down to millennials.

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Speaker 1: And I don't think it's very nice to think about

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Speaker 1: because at the end of the day, we're talking about inheritances,

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Speaker 1: and you know what has to happen for inheritances to

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Speaker 1: be triggered, which is really sad. Yes, However, it means

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Speaker 1: that honestly, a lot of our community are going to

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Speaker 1: have to be making big decisions about lump sums of

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Speaker 1: money whether that is ten thousand dollars, whether it is

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Speaker 1: one hundred thousand dollars or a couple of million dollars.

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Speaker 1: This conversation is something where if you've already had it today,

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Speaker 1: you're like, all right, well shit, something bad has happened.

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Speaker 1: I'm going to have to go through this process. Didn't

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Speaker 1: V say something that Beck didn't care about? And actually

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Speaker 1: now it's really important. Yeah, So I think it's important

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Speaker 1: to have the conversation. And it's kind of interesting because

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Speaker 1: I'll try and drop in as many tip bits about

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Speaker 1: my ex wealthy clients to make it like a little

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Speaker 1: bit spicy.

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Speaker 3: Does that make it better? It actually kind of? Does

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Speaker 3: you know? I love a bit of juice? We do?

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Speaker 1: We do? So, I guess when it comes back to

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Speaker 1: investment structures in general, and investment structure refers to how

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Speaker 1: your investment is legally owned. And today we're going to

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Speaker 1: break down the different kinds of ownership models of investments.

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Speaker 1: So we're going to talk about individual ownership, partnerships, We're

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Speaker 1: going to talk about companies, trusts, what custodial ownership looks like,

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Speaker 1: how you own things through superannuation, and what that difference

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Speaker 1: is when you own something through superversus when you own

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Speaker 1: it individually. And what a hymn is, because I've had

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Speaker 1: a lot of questions about what a hinn is, but

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Speaker 1: we'll get they're.

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Speaker 3: Okay, Oh, I'm excited. So first, V what kind of

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Speaker 3: things should we consider to help us choose which investment

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Speaker 3: structure is right for us? First things?

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Speaker 1: First to the first question you should be asking yourself

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Speaker 1: is Beck, if your investment is making money, who should

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Speaker 1: get that money? So? Is it going to be income

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Speaker 1: that is going to be for now or is it

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Speaker 1: income that is going to be for the future. Is

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Speaker 1: it income that in the future you want your children

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Speaker 1: to have access to whether you have them now or

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Speaker 1: you're planning on having them in the future, or you

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Speaker 1: don't know, but you want.

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Speaker 3: That option to exist.

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Speaker 1: Should you receive the capital, so should you be able

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Speaker 1: to access the cash both now and near the future?

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Speaker 1: Is there a need for investment assets to be protected

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Speaker 1: from either future creditors or our partners.

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Speaker 3: So I was privileged.

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Speaker 1: Enough to work in the ultra high net wealth space,

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Speaker 1: so I often worked with people who were inheriting significant

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Speaker 1: sums of money. And we're quite young. So you might

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Speaker 1: come in Beck and be like Hey, this is literally

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Speaker 1: the worst thing in the entire world. Someone very close

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Speaker 1: to me has passed away yesterday. I'm inheriting you know,

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Speaker 1: a million dollars, And the conversations I need to have

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Speaker 1: with you aren't just oh great, Beck, have you thought

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Speaker 1: about a trust? It's more, Beck, do you have a partner?

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Speaker 1: What does your partner do? How is your partner contributing financially?

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Speaker 1: What does this money mean to you? Is this money

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Speaker 1: really really special to you? Usually it is because I

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Speaker 1: think a lot of people go, oh my gosh, they're

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Speaker 1: so lucky they got an inheritance. I guarantee you if

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Speaker 1: you sat down with any person that got an inheritance,

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Speaker 1: they would prefer to give that money back and have

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Speaker 1: the person back in their lives.

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Speaker 3: It's not luck.

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Speaker 1: It's an unfortunate outcome. Like, yes, it is a responsibility.

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Speaker 1: It is the best next thing. So like, if I

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Speaker 1: can't be there for my husband, Beck, yeah, I want

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Speaker 1: to make sure that he's final actually okay, And that's

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Speaker 1: me looking after him when I can't be around anymore.

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Speaker 1: And that's how we should see these things. It's not

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Speaker 1: lucky for you to get an inheritance. In fact, that

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Speaker 1: weight is very, very heavy, and there's often a lot

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Speaker 1: of therapy that goes along with the amount of money

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Speaker 1: that somebody inherits, because you know, let's just say you

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Speaker 1: inherit a couple of thousand dollars. You might go, yeah, okay,

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Speaker 1: no worries. But what happens if your estranged father passes away?

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Speaker 1: You have no idea. Someone comes and taps you on

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Speaker 1: the shoulder, Maybe a solicitor says, hey, beck, I don't

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Speaker 1: know if you know this, but this really unfortunate event

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Speaker 1: happened a month ago. You're just learning about this, but

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Speaker 1: you didn't realize he was super wealthy. There's so much

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Speaker 1: guilt associated with that because you're like, but I didn't

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Speaker 1: have anything to do with him. I don't know what

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Speaker 1: this money means. I feel very guilty for having it.

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Speaker 1: I don't know how to give this money the respect

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Speaker 1: it deserves. And I think that that's a bigger conversation.

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Speaker 1: So I'm going off topic and maybe we'll do a

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Speaker 1: whole episode on what it means to inherit money, because

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Speaker 1: I think there's this common misconception that it's luck.

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Speaker 3: Oh, you're so lucky to have had that.

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Speaker 1: Now be able to buy our first home, like, that's

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Speaker 1: not something everybody else gets. Sit down. Nobody wants their

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Speaker 1: inheritance and yes they might be ahead financially, but I

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Speaker 1: promise it's so much better to have that person in

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Speaker 1: your life. Yes, So we need to talk about I

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Speaker 1: guess am I protecting you against a partner. So you know,

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Speaker 1: if you break up with your partner in five or

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Speaker 1: six years, yeah, you might have built a life together.

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Speaker 1: But do they deserve half of your inheritance? Should they

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Speaker 1: walk away with what your you know, family member worked

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Speaker 1: so hard to have and wanted you to have. So

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Speaker 1: we need to make sure that we're either protected against

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Speaker 1: that or future creditors. We need to check if there

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Speaker 1: are any special family considerations. So say you get an inheritance, Beck,

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Speaker 1: but you also have a daughter and in a will

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Speaker 1: it was written Beck, you get the money, but XYZ

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Speaker 1: needs to be used for your daughter's educational whatever that means.

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Speaker 1: How do we allocate for that because if it was

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Speaker 1: in a trust and tied up, there might be issues

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Speaker 1: pulling it out to pay for that education, and we

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Speaker 1: need to make sure that that exists. We need to

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Speaker 1: understand what levels of flexibility is needed as far as

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Speaker 1: debt and leverage is concerned. If that's involved, what are

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Speaker 1: the tax implications of each structure? How does that work?

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Speaker 1: Because tax rates are going to look different if they're

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Speaker 1: your marginal tax rate versus the tax rate inside a trust.

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Speaker 1: But what does that mean when you pull it out?

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Speaker 1: And what other estate planning issues need to be addressed?

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Speaker 1: That heavy is a lot, it's a lot to think about,

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Speaker 1: but I also think it can be distilled down quite clearly,

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Speaker 1: and we should probably get into that because I feel

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Speaker 1: like I'm overwhelming everybody at this point in time.

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Speaker 3: If this is all very confusing, see a financial advisor

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Speaker 3: one hundred percent, pause your podcast and re listen to

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Speaker 3: that all. But if you are up to scratch and

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Speaker 3: you know exactly what we're talking about, then let's jump

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Speaker 3: straight into the different types of investment structures.

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Speaker 1: All right, First things first, individual ownership or direct ownership,

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Speaker 1: so most common and it's actually the simplest investment vehicle.

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Speaker 1: Is basically a person holding an investment in their own name.

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Speaker 1: You went on the shares e's site, you signed up,

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Speaker 1: you put all of your personal information. You now own

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Speaker 1: those shares directly, that is in your personal name, either

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Speaker 1: singly or jointly. You might have signed up with a

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Speaker 1: partner and that is split investments in an individual name.

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Speaker 1: I've written a list of things can be Are you ready?

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Speaker 1: Easy to set up and manage, as income and capital

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Speaker 1: gains are included in your individual tax return. Simple. They're

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Speaker 1: easier to administer as there is much less paperwork in

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Speaker 1: comparison to any other structure. They are more cost effective

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Speaker 1: as there's no additional expenses to set them up and

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Speaker 1: run them. They're more tax effective, especially if the investment

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Speaker 1: that you own is negatively gared or one of the

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Speaker 1: individuals that owns it is a low income earner. So

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Speaker 1: there are cons. So obviously I've done like a pros

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Speaker 1: and cons list because that's very victoriata mine of me.

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Speaker 1: Of course.

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Speaker 3: The cons, Yeah, you're ready, I'm ready.

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Speaker 1: So the assets held by an individual, they offer no

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Speaker 1: flexibility with the distribution of the income. So if you

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Speaker 1: own that asset, the money has to come to you.

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Speaker 1: You can't just send it to somebody else for tax

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Speaker 1: purposes or even distribution purposes. You personally have to pay

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Speaker 1: tax on it.

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Speaker 3: Okay.

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Speaker 1: Individuals in high risk occupations, they could be sued and

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Speaker 1: their assets exposed to risk from creditors. Okay, that's not

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Speaker 1: that sexy means like, hypothetically, if you were to sue

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Speaker 1: me back, Yeah, I'm worth nothing. So weird, it's really

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Speaker 1: can it?

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Speaker 3: I was actually planning on it.

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Speaker 1: Yeah, I thought you might. I'm worth nothing. I have

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Speaker 1: a trust. We'll get to that and why I have

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Speaker 1: a trust, and I'm happy to talk about, you know,

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Speaker 1: the structure that works for me that you know, if

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Speaker 1: something really bad happened with Sheese on the money, I

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Speaker 1: don't want the property that I own or the shares

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Speaker 1: that Steve and I have worked so hard to invest

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Speaker 1: in being on the table for somebody to take from us,

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Speaker 1: which would significantly impact my lifestyle and the life that

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Speaker 1: we've created. I wanted to separate it out and go

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Speaker 1: all right, well, if something happens with the business, I

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Speaker 1: would want the business to be liable, Like, you can

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Speaker 1: take the business's income, you can take all of those

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Speaker 1: things if you came for me personally. Pretty sure.

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Speaker 3: I own a dog, I'll take the dog. I don't

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Speaker 3: even own a car, beck technically, so I'm now following.

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Speaker 1: I don't even own any that's all.

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Speaker 2: Yeah.

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Speaker 1: Do you own a TV?

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Speaker 3: I'll take a TV? Yeah, I think I have a TV,

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Speaker 3: maybe some flower in your pantry. I'll take a pantry, yeah, easily. Okay,

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Speaker 3: Well I'm still going to come for you. Okay.

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Speaker 1: Sorry, sorry, I still love me. And then the other

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Speaker 1: negative is negatively geared assets that are held by an

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Speaker 1: individual will actually eventually become positively gared, resulting in increased

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Speaker 1: tax liability over time. That's a con and I've written

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Speaker 1: it down as a con. But essentially, if you make money,

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Speaker 1: you have to pay tax, is what that one is saying.

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Speaker 1: Oh okay, So like, if you're gonna make money on

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Speaker 1: your investment, you're gonna have to pay tax, and it's

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Speaker 1: gonna have to be at your marginal tax rate. Like

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Speaker 1: you can't get out of it, okay. And I'm not

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Speaker 1: saying that you can get out of it with other things,

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Speaker 1: but you know, obviously, the whole purpose of having a

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Speaker 1: negatively gid asset is for one day. It's you start

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Speaker 1: producing income. Sure you'll have to pay tax on that income.

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Speaker 1: And some people don't think about it into the future.

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Speaker 3: Enough. I got you, I got you, I got you. Okay,

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Speaker 3: So I guess my next question is what is a partnership?

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Speaker 1: All right? So a partnership is also a relatively simple

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Speaker 1: structure when it comes down to it, and the cost

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Speaker 1: of it is fairly low when it comes to just

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Speaker 1: setting up a structure like this. A partnership, as a

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Speaker 1: pose to holding an investment in joint names, is actually

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Speaker 1: a separate entity for tax purposes and requires its own

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Speaker 1: tax file number and complete tax return, So that's another

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Speaker 1: cost a partnership. It does not pay tax, but it

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Speaker 1: has to distribute all of the income it makes to

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Speaker 1: the partners according to the partnership agreement, so offers limited

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Speaker 1: distribution flexibility. So what that means is it's a separate entity.

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Speaker 1: It does its tax, but come tax time, let's say

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Speaker 1: it made one hundred dollars and you're declaring one hundred dollars.

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Speaker 1: That one hundred dollars cannot stay in that partnership for

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Speaker 1: the next financial year. It has to be taken out.

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Speaker 1: And if Beck, you and I established a partnership together

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Speaker 1: and it was a fifty to fifty split, it means

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Speaker 1: that legally fifty dollars has to go to you and

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Speaker 1: fifty dollars has to go to me because the partnership

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Speaker 1: can't hold it. I see, it's not a place you

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Speaker 1: can store money.

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Speaker 3: Oh I see okay, but you said something about not

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Speaker 3: being taxed. Does that mean if you both made fifty

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Speaker 3: dollars each, you would be tax Yeah, so it would

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Speaker 3: become income for you and it would be taxed at

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Speaker 3: your marginal tax rate.

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Speaker 1: However, that entity has to do its own tax return

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Speaker 1: and operates as an individual entity. So a partnership does

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Speaker 1: not pay tax. But as I said, it has to

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Speaker 1: distribute the income to the individual partners according to the

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Speaker 1: partnership agreement, and then you would pay tax on that

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Speaker 1: income that comes in at your marginal.

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Speaker 3: Tax Oh okay, I got to you. I got you righte.

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Speaker 1: So something to be mindful of there is that there

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Speaker 1: is no risk protection in a partnership, as the assets

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Speaker 1: of either partner may be subject to claim by creditors

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Speaker 1: as all partners are jointly liable, and this means that

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Speaker 1: one partner could become personally liable for all the debts

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Speaker 1: of the entire partnership are then I put together the

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Speaker 1: pros and cons on this one. There wasn't a separate

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Speaker 1: pros and then cons list. It was like a here's

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Speaker 1: all the information you need about it, because I have

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Speaker 1: ADHD and can't stick to a specific for that.

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Speaker 3: Okay, well I told you and you've got the information absolutely.

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Speaker 1: Okay, I'm hearing you. I'm hearing you.

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Speaker 3: Actually, I just want to ask what is the point

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Speaker 3: of a partnership. I mean, I guess you can't give

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Speaker 3: any advice, but what I'm hearing is.

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Speaker 1: I would just go an individual It's so that it's

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Speaker 1: not owned in your individual name, and it can be

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Speaker 1: you know, constructive to distribute income. Obviously, there's a partnership agreement,

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Speaker 1: so you might both jointly own it, but I might

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Speaker 1: have in my agreement. Okay, well, you know, let's pretend

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Speaker 1: I'm a lower income earner than you. Maybe we have

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Speaker 1: an agreement that it's fifty to fifty owned, but we

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Speaker 1: distribute a lot more of the income to me because

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Speaker 1: I'm on a lower tax bracket. We declare it under

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Speaker 1: my tax bracket. But you and I were married, we're

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Speaker 1: in love. That money actually goes into our pooled account.

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Speaker 1: Let's just say I stay at home and I look

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Speaker 1: after all of our pets that we have together. You know,

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Speaker 1: I don't have any other income. That can mean that

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Speaker 1: there are some tax benefits because we've distributed the income

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Speaker 1: that is from that partnership, but one hundred percent of

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Speaker 1: the income had to be distributed. So we might have

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Speaker 1: chosen to distribute it all to me this year, but

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Speaker 1: you're still the owner.

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Speaker 3: Beck Oh, I see okay, So.

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Speaker 1: It doesn't have to be fifty to fifty. Well, it

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Speaker 1: doesn't have to be, but should be based on the

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Speaker 1: partnership agreement and how all of that works. I sat

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Speaker 1: something that you would sit down with your accountant and

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Speaker 1: talk through. And one of the reasons might be because you

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Speaker 1: don't want a complex structure. You don't need a trust

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Speaker 1: to be set up, because trusts can be expensive to

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Speaker 1: maintain and also to do all of the audits on them.

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Speaker 1: We'll get to that. But you might just want to

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Speaker 1: be able to, you know, send some more money to

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Speaker 1: me while I'm staying at home and looking after all

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Speaker 1: the pets. Sure, and then you know, when we're both

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Speaker 1: back in the workforce full time, we.

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Speaker 3: Just split at fifty to fifty. Gotcha, clever and legal?

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Speaker 3: I like that. Now, what about companies?

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Speaker 2: All right?

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Speaker 1: So companies are most often used as a structure for

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Speaker 1: business rather than for investments. But you can choose to

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Speaker 1: hold investments in a com there are a couple of benefits.

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Speaker 1: Let me go through this. We're back to the pros

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Speaker 1: cons list. So the tax rate on profits in a

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Speaker 1: company is twenty eight point five percent or thirty percent,

401
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Speaker 1: depending on the size of your company. So if you're

402
00:20:15,119 --> 00:20:17,439
Speaker 1: on a high taxable income, so let's say you have

403
00:20:17,480 --> 00:20:20,200
Speaker 1: the highest marginal tax rate in Australia because you big dog,

404
00:20:20,320 --> 00:20:23,959
Speaker 1: you baller, so you're paying forty eight point five percent

405
00:20:24,119 --> 00:20:28,480
Speaker 1: personal tax. A company rate might actually be more effective

406
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Speaker 1: because you get twenty eight and a half or thirty

407
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Speaker 1: percent tax instead of the forty eight point five. There

408
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Speaker 1: is also protection for the shareholders if the business fails

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Speaker 1: or is sued for some reason. There are obviously cons

410
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Speaker 1: so the disadvantage of this, particularly when it comes to investments.

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Speaker 1: We're not talking about owning a company structure when it

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00:20:49,040 --> 00:20:52,920
Speaker 1: comes to business here, but losses can only be offset

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Speaker 1: against future income with the company, and a company is

414
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Speaker 1: not able to obtain the benefit of any capital gains

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Speaker 1: discount on the sale of investments.

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Speaker 3: I gotta be honest, I don't know if I got

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Speaker 3: any of that. Are you able to?

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Speaker 1: Yeah? Translate, So losses can only be offset against future income.

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Speaker 1: So if we made a loss on an investment this year,

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Speaker 1: and it was in your personal name back and again

421
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Speaker 1: I'm not an accountant, so talk to your accountant about

422
00:21:18,440 --> 00:21:22,040
Speaker 1: what this means for you personally. However, you could offset

423
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Speaker 1: it against your income from this year. So say you

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Speaker 1: earned fifty thousand dollars from your full time job and

425
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Speaker 1: then you had fifteen thousand dollars worth of shares, but

426
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Speaker 1: they made a loss. If you're doing your personal tax

427
00:21:35,200 --> 00:21:38,000
Speaker 1: return this year, that loss can be declared an offset

428
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Speaker 1: against your fifty thousand dollars worth of income this year

429
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Speaker 1: and lower your tax. So that's kind of sexy. It's

430
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Speaker 1: kind of one of the benefits. However, you cannot do

431
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Speaker 1: that in a company. It means that you can only

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Speaker 1: do what's called carrying forward a loss. So we put

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Speaker 1: the loss down on paper and say, oh, well, Victoria's

434
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Speaker 1: assets lost, you know, let's say ten thousand dollars last year,

435
00:21:58,840 --> 00:22:02,040
Speaker 1: so I can next use that ten thousand dollars. It's

436
00:22:02,119 --> 00:22:05,359
Speaker 1: kind of like an IOU sure, I can use that

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00:22:05,480 --> 00:22:07,800
Speaker 1: loss to offset tax in the next year, but I

438
00:22:07,800 --> 00:22:09,720
Speaker 1: can't use it in the same year that it happened,

439
00:22:10,119 --> 00:22:14,280
Speaker 1: which over the long term shouldn't matter too much. But

440
00:22:14,600 --> 00:22:16,280
Speaker 1: at the end of the day, like a lot of

441
00:22:16,320 --> 00:22:19,359
Speaker 1: people just want to offset it, pay as less taxes

442
00:22:19,440 --> 00:22:22,320
Speaker 1: possible every single year. Right, The cost to set up

443
00:22:22,320 --> 00:22:25,120
Speaker 1: a company is arguably very high, I need to say,

444
00:22:25,160 --> 00:22:27,359
Speaker 1: can be really high, but I've never seen it be cheap.

445
00:22:27,680 --> 00:22:30,560
Speaker 1: And there is a legal requirement for a separate set

446
00:22:30,600 --> 00:22:34,399
Speaker 1: of accounts and a tax return each year, as well

447
00:22:34,480 --> 00:22:37,679
Speaker 1: as ongoing ASSEIC registration fees. So a lot of people

448
00:22:37,680 --> 00:22:39,879
Speaker 1: think that a trust is set and forget it's not.

449
00:22:39,960 --> 00:22:41,760
Speaker 1: You don't just set it up and then wham bam,

450
00:22:41,880 --> 00:22:44,680
Speaker 1: thank you, ma'am. I have a trust. We've spoken about

451
00:22:44,680 --> 00:22:48,520
Speaker 1: this before. I pay accounting fees on that trust every

452
00:22:48,520 --> 00:22:50,560
Speaker 1: single year, and I'm telling you right now they are

453
00:22:50,600 --> 00:22:52,440
Speaker 1: not the two hundred dollars that you pay for your

454
00:22:52,480 --> 00:22:55,680
Speaker 1: individual tax return at the accountant. Oh okay, like I'm

455
00:22:55,680 --> 00:22:58,280
Speaker 1: paying I think around fifteen hundred to two thousand dollars

456
00:22:58,400 --> 00:23:01,000
Speaker 1: a year for that trust to do all of the

457
00:23:01,040 --> 00:23:03,960
Speaker 1: accounting on it, which for me makes sense. And I've

458
00:23:04,000 --> 00:23:06,400
Speaker 1: done all the maths, and as you guys know, I

459
00:23:06,440 --> 00:23:08,400
Speaker 1: happen to know what I'm talking about. When it comes

460
00:23:08,440 --> 00:23:08,800
Speaker 1: to this.

461
00:23:08,760 --> 00:23:09,480
Speaker 3: Type of stuff.

462
00:23:09,600 --> 00:23:12,040
Speaker 1: You look ald and go that's so expensive. But also

463
00:23:12,080 --> 00:23:14,480
Speaker 1: for me, it's like an insurance policy as well. It's

464
00:23:14,520 --> 00:23:16,760
Speaker 1: a layer of protection that you're paying for. It's a

465
00:23:16,840 --> 00:23:19,119
Speaker 1: layer of you know, making sure that all of my

466
00:23:19,160 --> 00:23:21,840
Speaker 1: assets are sitting over in a trust. You can change

467
00:23:21,880 --> 00:23:25,200
Speaker 1: the names on people in companies and trusts in the future,

468
00:23:25,320 --> 00:23:27,520
Speaker 1: so like I could be like, oh, Beck, I'm now

469
00:23:27,520 --> 00:23:29,679
Speaker 1: adopting you as my child. I'm going to add you

470
00:23:29,760 --> 00:23:32,040
Speaker 1: to my trust, so in the future I can distribute

471
00:23:32,040 --> 00:23:34,920
Speaker 1: income to you. So that's kind of sexy. Obviously we're

472
00:23:34,920 --> 00:23:38,359
Speaker 1: still talking about companies. I just get really excited. But also,

473
00:23:38,520 --> 00:23:42,159
Speaker 1: a company can distribute profit by paying a dividend, but

474
00:23:42,280 --> 00:23:45,280
Speaker 1: that has to be in accordance with the shareholder registry.

475
00:23:45,880 --> 00:23:48,840
Speaker 1: So a dividend is when I pay out a certain amount,

476
00:23:49,280 --> 00:23:51,480
Speaker 1: but I don't have to go and pay double tax

477
00:23:51,520 --> 00:23:54,359
Speaker 1: on it. But there are rules and regulations about that.

478
00:23:54,480 --> 00:23:57,120
Speaker 3: Okav. I feel like that is so far a lot

479
00:23:57,160 --> 00:23:58,680
Speaker 3: to take in. Let's have a little break. On the

480
00:23:58,680 --> 00:24:00,800
Speaker 3: flip side, we're going to be talking about it. Trusts.

481
00:24:00,960 --> 00:24:02,480
Speaker 3: Oh my gosh, I cannot wait.

482
00:24:07,640 --> 00:24:11,600
Speaker 1: So I feel like trusts are a really popular investment structure,

483
00:24:11,960 --> 00:24:16,520
Speaker 1: but they are often very misunderstood. And there's a fair

484
00:24:16,520 --> 00:24:18,399
Speaker 1: bit to get your head around when it comes to

485
00:24:18,480 --> 00:24:21,840
Speaker 1: a trust. Right. So a trust is formed by executing

486
00:24:21,840 --> 00:24:24,919
Speaker 1: a deed which documents the establishment of a trust. So

487
00:24:25,119 --> 00:24:27,080
Speaker 1: go down to your accountant, you explain that you want

488
00:24:27,080 --> 00:24:29,919
Speaker 1: to trust. You know, your accountant could provide some advice

489
00:24:29,960 --> 00:24:32,320
Speaker 1: on this. A financial advisor could talk you through this

490
00:24:32,440 --> 00:24:34,600
Speaker 1: as well. We did a lot of it. They'll talk

491
00:24:34,600 --> 00:24:36,399
Speaker 1: to you about the pros and cons, what it actually

492
00:24:36,440 --> 00:24:39,119
Speaker 1: means for you, and then you'll say, no worries. I

493
00:24:39,160 --> 00:24:42,119
Speaker 1: cannot tell you how many pages there is to sign

494
00:24:42,480 --> 00:24:45,359
Speaker 1: when you set up a trust. It's insane, by really,

495
00:24:45,480 --> 00:24:49,280
Speaker 1: it's honestly insane. Like I remember when I used to

496
00:24:49,280 --> 00:24:51,280
Speaker 1: do it. So I did it for me. Great, no worries,

497
00:24:51,320 --> 00:24:54,000
Speaker 1: man them, Thank you, ma'am. Sign here six hundred billion times,

498
00:24:54,000 --> 00:24:56,320
Speaker 1: like get a cup of coffee, do it over coffee.

499
00:24:56,640 --> 00:24:59,480
Speaker 1: But I used to have to set them up for clients. Oh,

500
00:24:59,520 --> 00:25:02,720
Speaker 1: and it was a bane of my existence printing all

501
00:25:02,720 --> 00:25:05,280
Speaker 1: of the documentation because it has to be printed because

502
00:25:05,280 --> 00:25:07,400
Speaker 1: it has to be in hard copy, right, And then

503
00:25:07,400 --> 00:25:10,040
Speaker 1: I go through with all of my sign here stickers,

504
00:25:10,080 --> 00:25:12,400
Speaker 1: and I'd use nearly a whole damn box of them,

505
00:25:12,840 --> 00:25:15,280
Speaker 1: and then I'd be like, hey, if you could just

506
00:25:15,359 --> 00:25:17,840
Speaker 1: come in, Like, I know we've been doing this financial

507
00:25:17,920 --> 00:25:21,720
Speaker 1: advice process back and it's been so easy. This is

508
00:25:21,720 --> 00:25:24,480
Speaker 1: gonna be the worst meeting that we do. I'm so sorry.

509
00:25:24,600 --> 00:25:25,000
Speaker 3: Come in.

510
00:25:25,119 --> 00:25:27,520
Speaker 1: We have to sign your trust documents and you go,

511
00:25:27,640 --> 00:25:29,480
Speaker 1: what are you talking about? That can't be that bad?

512
00:25:29,800 --> 00:25:32,399
Speaker 1: And then I like give you this slab it's like

513
00:25:32,680 --> 00:25:35,160
Speaker 1: half a rim of paper, and I turn it around

514
00:25:35,200 --> 00:25:36,600
Speaker 1: and be like, do you want to coffee your tea?

515
00:25:36,680 --> 00:25:39,560
Speaker 1: Like I've put the stickers everywhere. You need to sign here,

516
00:25:39,560 --> 00:25:41,720
Speaker 1: your partner needs to sign here, I need to sign here,

517
00:25:41,760 --> 00:25:45,679
Speaker 1: and witness this like takes ages. Oh my god, Like

518
00:25:46,280 --> 00:25:48,280
Speaker 1: the amount of times I would sit down with clients

519
00:25:48,280 --> 00:25:49,560
Speaker 1: and they would be like you.

520
00:25:49,520 --> 00:25:50,480
Speaker 3: Weren't joking, were you?

521
00:25:50,560 --> 00:25:54,000
Speaker 1: And I'm like, I'm sorry, I'm so sorry. But at

522
00:25:54,000 --> 00:25:56,160
Speaker 1: the end of the day, like it's important to set

523
00:25:56,200 --> 00:25:59,320
Speaker 1: it up sure, and that makes sure that everything is

524
00:25:59,359 --> 00:25:59,920
Speaker 1: well and good.

525
00:26:00,200 --> 00:26:02,120
Speaker 3: Can I just ask, have you ever had a situation

526
00:26:02,200 --> 00:26:04,520
Speaker 3: where someone like signs something in the wrong spot and

527
00:26:04,520 --> 00:26:06,240
Speaker 3: then you've had stuff yeah all over again. Do you

528
00:26:06,320 --> 00:26:07,159
Speaker 3: know how hard it is?

529
00:26:07,520 --> 00:26:09,240
Speaker 1: And then you have to go back to your computer

530
00:26:09,280 --> 00:26:11,200
Speaker 1: and be like, okay, well what page was that? Oh

531
00:26:11,200 --> 00:26:14,600
Speaker 1: it was Marketer's page eighty six, but on the PDF

532
00:26:14,600 --> 00:26:16,719
Speaker 1: it's page eighty seven. Hold on, let me check, all right,

533
00:26:16,800 --> 00:26:18,760
Speaker 1: let me just print page eighty seven and then it

534
00:26:18,800 --> 00:26:20,800
Speaker 1: prints a page eighty six and then you have to

535
00:26:20,800 --> 00:26:23,160
Speaker 1: like reprint the page and slip it back in because

536
00:26:23,200 --> 00:26:26,199
Speaker 1: you can't just wipe it out. Like anyway, that's a

537
00:26:26,400 --> 00:26:29,760
Speaker 1: nice happen all the time, or people being like, oh,

538
00:26:29,880 --> 00:26:32,480
Speaker 1: can't you just sign it for me? And I'd be

539
00:26:32,560 --> 00:26:37,200
Speaker 1: like no, Like I literally cannot forge your signature. I

540
00:26:37,280 --> 00:26:39,639
Speaker 1: know that you trust me, but I'm never going to

541
00:26:39,720 --> 00:26:41,920
Speaker 1: do that. Like, oh, well, could you just like coffee

542
00:26:41,920 --> 00:26:42,560
Speaker 1: and paste it?

543
00:26:42,880 --> 00:26:44,080
Speaker 3: No, I can't.

544
00:26:44,359 --> 00:26:47,760
Speaker 1: I'm so sorry, Like this is the one thing, the

545
00:26:47,760 --> 00:26:49,880
Speaker 1: one thing I have to get you to do pen

546
00:26:49,960 --> 00:26:53,119
Speaker 1: and paper. It was like bribery and corruption sometimes yeah,

547
00:26:53,320 --> 00:26:54,760
Speaker 1: because people will be like, I don't want to do it,

548
00:26:54,760 --> 00:26:57,160
Speaker 1: and I'd be like, I get that, but I'm also

549
00:26:57,320 --> 00:26:58,280
Speaker 1: just trying to help you.

550
00:26:58,400 --> 00:27:00,960
Speaker 3: Yeah, that's what they want exactly how to do it?

551
00:27:01,160 --> 00:27:04,840
Speaker 1: So a trustee of a trust it might be a

552
00:27:04,880 --> 00:27:08,320
Speaker 1: person or a number of people or a company. Okay,

553
00:27:08,359 --> 00:27:10,280
Speaker 1: So what happens is you set up this trust, right

554
00:27:10,320 --> 00:27:14,639
Speaker 1: and it's this little floating entity and it exists on

555
00:27:14,680 --> 00:27:17,480
Speaker 1: its own, it owns itself. But then I might be

556
00:27:17,680 --> 00:27:21,240
Speaker 1: nominated as what's called a beneficiary. Sure, so I've got

557
00:27:21,480 --> 00:27:22,760
Speaker 1: you know, I'm not going to tell you the name

558
00:27:22,760 --> 00:27:25,320
Speaker 1: of my trust because it's top secret's super squirrel. But

559
00:27:25,359 --> 00:27:27,160
Speaker 1: the cool thing about trust is actually you can pick

560
00:27:27,200 --> 00:27:30,560
Speaker 1: any name at cool Like you could be real sassy

561
00:27:30,600 --> 00:27:33,760
Speaker 1: about it. Like I had clients name trusts like some

562
00:27:33,840 --> 00:27:36,480
Speaker 1: of the dumbest things in the entire world. One of

563
00:27:36,480 --> 00:27:39,959
Speaker 1: my clients was like money for the Crypto, and like,

564
00:27:40,080 --> 00:27:43,360
Speaker 1: obviously that was a joke because they were very conservative.

565
00:27:43,480 --> 00:27:45,480
Speaker 1: But you know, you can pick any name in the

566
00:27:45,640 --> 00:27:47,479
Speaker 1: entire world, and clients used to have fun with it.

567
00:27:47,480 --> 00:27:49,959
Speaker 1: That's the only fun part about setting a trust up.

568
00:27:50,440 --> 00:27:53,639
Speaker 1: But let's say we've got the Victoria Divine Trust. Sure,

569
00:27:54,040 --> 00:27:57,119
Speaker 1: I don't own that trust, but I'm nominated as a

570
00:27:57,119 --> 00:28:00,439
Speaker 1: beneficiary on that trust. Right now, I'm not needed as

571
00:28:00,440 --> 00:28:03,959
Speaker 1: one hundred percent beneficiary, which means any profit that that

572
00:28:04,000 --> 00:28:08,800
Speaker 1: trust makes can be distributed to me right now, any profit,

573
00:28:09,320 --> 00:28:11,879
Speaker 1: any money that that trust makes, or like, you know,

574
00:28:12,000 --> 00:28:15,640
Speaker 1: I've got this trust, and then I go and invest money.

575
00:28:15,880 --> 00:28:18,400
Speaker 1: The trust owns it, so I've used the trust as

576
00:28:18,440 --> 00:28:22,000
Speaker 1: the person buying the investments. So when I go to

577
00:28:22,000 --> 00:28:24,280
Speaker 1: fill out a new form back to buy an investment,

578
00:28:24,320 --> 00:28:26,320
Speaker 1: say I'm going to go buy a new share in

579
00:28:26,480 --> 00:28:29,600
Speaker 1: A and Z. I don't buy that personally, my trust

580
00:28:29,680 --> 00:28:33,159
Speaker 1: purchases that. But then if that makes any money, I

581
00:28:33,240 --> 00:28:36,119
Speaker 1: can distribute it from my trust to me. However, I

582
00:28:36,160 --> 00:28:38,280
Speaker 1: could also leave the money just sitting in that trust,

583
00:28:38,320 --> 00:28:41,400
Speaker 1: but it could be me as the beneficiary, or the

584
00:28:41,440 --> 00:28:44,920
Speaker 1: trust actually could be owned by a company, so you

585
00:28:45,000 --> 00:28:47,320
Speaker 1: might have a company as well. So let's say I

586
00:28:47,360 --> 00:28:52,000
Speaker 1: set up a investment trust, but actually the beneficiary is

587
00:28:52,080 --> 00:28:54,640
Speaker 1: cheese on the money. It's not me. It could be

588
00:28:54,880 --> 00:28:57,360
Speaker 1: a company, and then I could be the owner of

589
00:28:57,360 --> 00:28:59,640
Speaker 1: the company. So you can set it up and be

590
00:29:00,120 --> 00:29:02,160
Speaker 1: I won't say sneaky, because it's not seeky. It's all

591
00:29:02,160 --> 00:29:04,280
Speaker 1: above board. It's all legal. But there's just lots of

592
00:29:04,360 --> 00:29:08,719
Speaker 1: different structures usually in existence for asset protection to make

593
00:29:08,760 --> 00:29:12,040
Speaker 1: sure that you're okay. But the more money you're dealing with,

594
00:29:12,080 --> 00:29:14,960
Speaker 1: the more risk you're carrying, and the more important it

595
00:29:15,200 --> 00:29:17,280
Speaker 1: is to make sure that you have the right structure

596
00:29:17,360 --> 00:29:19,600
Speaker 1: because at the end of the day. Like a house

597
00:29:19,640 --> 00:29:22,480
Speaker 1: of cards, the bigger the house of cards, the more

598
00:29:22,520 --> 00:29:24,800
Speaker 1: it's going to crumble if one of the bottom cards

599
00:29:24,800 --> 00:29:29,360
Speaker 1: gets knocked out. So the trustee, as allowed by what's

600
00:29:29,400 --> 00:29:32,040
Speaker 1: called the trust deed, which is a very big document

601
00:29:32,080 --> 00:29:34,240
Speaker 1: that you have to sign when you set up a trust,

602
00:29:34,680 --> 00:29:39,360
Speaker 1: determines to which beneficiaries and in what proportion the income

603
00:29:39,600 --> 00:29:43,000
Speaker 1: or assets of the trust are distributed. So I would

604
00:29:43,080 --> 00:29:46,080
Speaker 1: have my trust right, so all set up, when bam,

605
00:29:46,120 --> 00:29:48,000
Speaker 1: thank you man, we know who owns it. Then we've

606
00:29:48,040 --> 00:29:51,000
Speaker 1: got the trust deed. And the trust deed is essentially

607
00:29:51,080 --> 00:29:54,080
Speaker 1: a set of instructions as to how that income and

608
00:29:54,160 --> 00:29:57,680
Speaker 1: how that trust money gets distributed. So if the trust

609
00:29:57,720 --> 00:30:00,200
Speaker 1: has made a net profit, actually a good question right here.

610
00:30:00,240 --> 00:30:02,520
Speaker 1: Do you know the difference between net profit and gross profit?

611
00:30:03,000 --> 00:30:05,320
Speaker 3: I believe and I always get these too confused. But

612
00:30:05,520 --> 00:30:09,520
Speaker 3: gross is before tax. Net is after tax. Yes, that

613
00:30:09,680 --> 00:30:11,400
Speaker 3: is perfect. Do you know how I remember it?

614
00:30:11,840 --> 00:30:14,440
Speaker 1: No, gross is gross because it's disgusting to look at

615
00:30:14,480 --> 00:30:17,200
Speaker 1: what you could have taken home gotcha and you didn't.

616
00:30:17,320 --> 00:30:19,600
Speaker 1: And net is what you actually scooped up and all

617
00:30:19,640 --> 00:30:20,760
Speaker 1: the water fell out and.

618
00:30:20,720 --> 00:30:23,560
Speaker 3: You just got the fish that is really clever.

619
00:30:23,760 --> 00:30:23,960
Speaker 2: Yeah.

620
00:30:24,200 --> 00:30:26,840
Speaker 1: Yeah, so that's the difference between gross and net profit.

621
00:30:26,880 --> 00:30:30,120
Speaker 1: But yeah, gross profit. I believe it's gross because when

622
00:30:30,120 --> 00:30:31,880
Speaker 1: you look at it, it's what you could have taken

623
00:30:31,920 --> 00:30:33,960
Speaker 1: home but you didn't, Yes, and you had to take tax.

624
00:30:34,040 --> 00:30:34,680
Speaker 3: Makes feel sickly.

625
00:30:34,720 --> 00:30:38,360
Speaker 1: Yeah, you're not going to forget now. But franking credits

626
00:30:38,360 --> 00:30:43,400
Speaker 1: can also be distributed to the beneficiaries. That's so sexy, Beck,

627
00:30:43,520 --> 00:30:49,120
Speaker 1: what's that mean? That means? My favorite part is like

628
00:30:49,200 --> 00:30:52,560
Speaker 1: you're like, yes, a franking credit. I love this for us,

629
00:30:52,560 --> 00:30:54,840
Speaker 1: And I'm like, like, what's a franking credit? And You're like,

630
00:30:55,040 --> 00:30:58,400
Speaker 1: I have no idea, but it sounds so sexy.

631
00:30:58,120 --> 00:30:59,320
Speaker 3: Sounds very exciting.

632
00:31:00,000 --> 00:31:00,600
Speaker 1: I trust you.

633
00:31:00,720 --> 00:31:01,800
Speaker 3: I trust that it's exciting.

634
00:31:01,960 --> 00:31:04,560
Speaker 1: You are not wrong. So franking credit. You bought a

635
00:31:04,560 --> 00:31:07,360
Speaker 1: share in Ainz and it made some money, right. Ain

636
00:31:07,480 --> 00:31:10,960
Speaker 1: Z's a massive company, so they paid tax already on

637
00:31:10,960 --> 00:31:13,960
Speaker 1: their profit, usually at thirty percent because they are a

638
00:31:13,960 --> 00:31:17,960
Speaker 1: big organization. So what happens is when that money goes

639
00:31:18,000 --> 00:31:20,960
Speaker 1: to you and you get your profit. There's like a

640
00:31:21,000 --> 00:31:23,440
Speaker 1: little tag. I just like to see it as a tag.

641
00:31:23,480 --> 00:31:25,480
Speaker 1: It's not an actual tag. It's called a franking credit,

642
00:31:25,480 --> 00:31:27,720
Speaker 1: but it's like a little tag that gets added to

643
00:31:27,760 --> 00:31:30,160
Speaker 1: the profit that you took home. And you take that

644
00:31:30,240 --> 00:31:33,480
Speaker 1: tag and you go, hey, here's my receipt from an

645
00:31:33,600 --> 00:31:36,880
Speaker 1: Z tax man. It says that ain Z already paid

646
00:31:36,960 --> 00:31:40,440
Speaker 1: tax to thirty percent, and it means that you only

647
00:31:40,480 --> 00:31:43,680
Speaker 1: get taxed the difference between that thirty percent and your

648
00:31:43,680 --> 00:31:47,120
Speaker 1: marginal tax rate, instead of being taxed an additional thirty percent.

649
00:31:47,520 --> 00:31:51,240
Speaker 1: So this happens in zupranuation. So this is not something

650
00:31:51,280 --> 00:31:55,080
Speaker 1: that you usually get to like take heaps of advantage of.

651
00:31:55,520 --> 00:32:00,440
Speaker 1: They're most powerful inside supranuation. And I say this because

652
00:32:00,480 --> 00:32:04,600
Speaker 1: inside supranuation this usually means that you get a bit

653
00:32:04,600 --> 00:32:08,680
Speaker 1: of a refund because the super environment taxes your money

654
00:32:08,760 --> 00:32:12,800
Speaker 1: back at fifteen percent. Okay, a franking credit is thirty

655
00:32:12,840 --> 00:32:17,840
Speaker 1: percent usually, right, what's the difference there an additional fifteen percent?

656
00:32:17,920 --> 00:32:18,000
Speaker 2: Ye?

657
00:32:18,280 --> 00:32:22,600
Speaker 1: So usually a sexy franking credit inside supbranuation means a

658
00:32:22,600 --> 00:32:23,800
Speaker 1: fifteen percent refund.

659
00:32:24,240 --> 00:32:26,440
Speaker 3: Oh okay, kind of hot.

660
00:32:26,680 --> 00:32:26,920
Speaker 2: Yeah.

661
00:32:27,160 --> 00:32:29,440
Speaker 1: So like think of a franking credit as a little

662
00:32:29,520 --> 00:32:32,360
Speaker 1: tag that comes along with your profit to say tax

663
00:32:32,440 --> 00:32:34,240
Speaker 1: was already paid on this, and because we're a really

664
00:32:34,240 --> 00:32:36,320
Speaker 1: big company, we're disclosing that and you get this little

665
00:32:36,320 --> 00:32:39,480
Speaker 1: sexy franking credit that hopefully helps you make more money.

666
00:32:39,520 --> 00:32:42,440
Speaker 3: I love that. I've always wondered what a franking credit was,

667
00:32:42,600 --> 00:32:45,040
Speaker 3: to be honest, it always makes me think of like

668
00:32:45,280 --> 00:32:46,880
Speaker 3: casino chips, and I don't really know why.

669
00:32:47,000 --> 00:32:48,560
Speaker 1: Yeah, Like like see it as a little chip that

670
00:32:48,600 --> 00:32:51,200
Speaker 1: you get given to say. It's like an IOU certificate,

671
00:32:51,240 --> 00:32:54,240
Speaker 1: but go on there that says io you like you

672
00:32:54,280 --> 00:32:57,080
Speaker 1: don't have to worry about the tax, but I trust

673
00:32:57,280 --> 00:33:00,800
Speaker 1: it can't distribute its losses. So like if it made

674
00:33:01,400 --> 00:33:04,760
Speaker 1: a negative return, like let's say the markets were off

675
00:33:04,920 --> 00:33:09,760
Speaker 1: and your portfolio actually made like negative ten percent, sucked,

676
00:33:09,880 --> 00:33:13,160
Speaker 1: but like it's off, you can't take that negative ten

677
00:33:13,200 --> 00:33:16,320
Speaker 1: percent give it to a beneficiary and have them claim

678
00:33:16,360 --> 00:33:19,080
Speaker 1: that on their tax to get a tax refund. It's

679
00:33:19,120 --> 00:33:21,720
Speaker 1: not how it works. It's owned by the trust. Sure,

680
00:33:22,000 --> 00:33:26,360
Speaker 1: losses inside trusts can be carried forward though, to offset

681
00:33:26,400 --> 00:33:27,600
Speaker 1: against future income.

682
00:33:27,760 --> 00:33:30,440
Speaker 3: So that's kind of helpful. Like the company, you might

683
00:33:30,480 --> 00:33:31,040
Speaker 3: have lost.

684
00:33:30,800 --> 00:33:33,400
Speaker 1: Money this year, beck, but actually next year, if you

685
00:33:33,520 --> 00:33:36,600
Speaker 1: make money, don't worry, because we've got that little credit

686
00:33:36,680 --> 00:33:38,920
Speaker 1: up our slaves to say, last year we lost ten percent,

687
00:33:39,240 --> 00:33:42,160
Speaker 1: so this year if we make twelve percent, we're going

688
00:33:42,240 --> 00:33:44,520
Speaker 1: to like add that ten percent and then you just

689
00:33:44,680 --> 00:33:47,240
Speaker 1: look after the two percent, So it kind of becomes

690
00:33:47,280 --> 00:33:50,400
Speaker 1: sexy in that way. But again, that's why long term

691
00:33:50,440 --> 00:33:53,120
Speaker 1: investment is so important. You can't just look at things

692
00:33:53,160 --> 00:33:56,000
Speaker 1: over one year, and you shouldn't be too disappointed if

693
00:33:56,080 --> 00:34:00,560
Speaker 1: in one year, Beck your portfolio makes less money. It's

694
00:34:00,640 --> 00:34:03,880
Speaker 1: not the end of the world. Because investments, and I've

695
00:34:03,880 --> 00:34:05,640
Speaker 1: said this a million times on the podcast, like, if

696
00:34:05,640 --> 00:34:08,319
Speaker 1: you're going to invest in shares, please don't look at

697
00:34:08,320 --> 00:34:10,160
Speaker 1: it over one or two or even three or even

698
00:34:10,200 --> 00:34:13,799
Speaker 1: five years. A minimum of seven to ten years is

699
00:34:13,840 --> 00:34:16,160
Speaker 1: what you need to be looking at to see if

700
00:34:16,200 --> 00:34:19,480
Speaker 1: you're making a profit, if it's a good share portfolio.

701
00:34:20,200 --> 00:34:23,359
Speaker 1: In saying that, I've also said before obviously, if you're

702
00:34:23,800 --> 00:34:28,319
Speaker 1: making negative ten percent in a bull market where the

703
00:34:28,360 --> 00:34:31,040
Speaker 1: market is just aggressively going up, all your mates they're

704
00:34:31,040 --> 00:34:34,200
Speaker 1: making like thirteen fourteen percent on their share portfolios. Beck.

705
00:34:34,719 --> 00:34:37,000
Speaker 1: If in that circumstance you're making negative ten percent, we

706
00:34:37,040 --> 00:34:39,600
Speaker 1: really need to talk about it, God, because there's probably

707
00:34:39,640 --> 00:34:43,080
Speaker 1: something going on with what your portfolio is returning. And

708
00:34:43,120 --> 00:34:46,399
Speaker 1: your portfolio as much as it shouldn't be identical, because

709
00:34:46,400 --> 00:34:50,160
Speaker 1: you've probably selected a different array of asset classes. Your

710
00:34:50,200 --> 00:34:53,600
Speaker 1: portfolio should be relatively reflective of the market. So like

711
00:34:53,640 --> 00:34:57,919
Speaker 1: when we went through COVID, everyone was absolutely terrified because

712
00:34:57,960 --> 00:35:00,960
Speaker 1: their portfolios were off, but my friend and the entire

713
00:35:01,200 --> 00:35:04,319
Speaker 1: economy was off, so it made sense that your share

714
00:35:04,360 --> 00:35:07,920
Speaker 1: portfolio was reflective of that. Yeah, and that's okay. You

715
00:35:07,960 --> 00:35:11,600
Speaker 1: can't beat the market. I wish you could. Can't be

716
00:35:11,640 --> 00:35:13,600
Speaker 1: by market at the end of the day. I think

717
00:35:13,640 --> 00:35:15,400
Speaker 1: that's a good you know, a little bit of a

718
00:35:15,400 --> 00:35:17,920
Speaker 1: sense check, Like if you're worried about your own portfolio.

719
00:35:18,280 --> 00:35:20,520
Speaker 1: I was recording my audio book the other day back

720
00:35:20,560 --> 00:35:22,200
Speaker 1: and like I said it, and I just couldn't stop

721
00:35:22,280 --> 00:35:25,280
Speaker 1: laughing at myself. I was like, when in doubt, zoom out,

722
00:35:25,800 --> 00:35:27,560
Speaker 1: but like it's true, Like when in doubt, look at

723
00:35:27,560 --> 00:35:29,680
Speaker 1: the bigger picture. Yes, Like don't just look at your

724
00:35:29,719 --> 00:35:32,319
Speaker 1: portfolio because that could make you feel terrible. Zoom out

725
00:35:32,360 --> 00:35:35,839
Speaker 1: and be like, oh wow, Like actually everybody's portfolios are

726
00:35:35,880 --> 00:35:38,120
Speaker 1: performing like this at the moment. It must be something

727
00:35:38,320 --> 00:35:40,520
Speaker 1: in the economy, it must be something bigger than me.

728
00:35:40,840 --> 00:35:42,840
Speaker 1: But yes, we need to be looking long term.

729
00:35:42,920 --> 00:35:44,240
Speaker 3: It's really solid advice.

730
00:35:44,280 --> 00:35:47,920
Speaker 1: Fee Okay, I'm not done though, okay, because we just

731
00:35:47,960 --> 00:35:49,480
Speaker 1: talked about how sexy trusts are.

732
00:35:49,719 --> 00:35:52,240
Speaker 3: Yes, but there are three types of different trusts.

733
00:35:52,239 --> 00:35:56,160
Speaker 1: Oh good, strap in, sit down, babies, are you ready?

734
00:35:56,239 --> 00:35:59,600
Speaker 1: So the first is a discretionary trust. Sure, So the

735
00:35:59,680 --> 00:36:03,400
Speaker 1: trust of a discretionary trust are able to distribute income

736
00:36:03,719 --> 00:36:07,720
Speaker 1: and capital gains to beneficiaries in whatever way they wish, okay,

737
00:36:08,040 --> 00:36:11,600
Speaker 1: typically the most tax effective way. The assets of the

738
00:36:11,640 --> 00:36:14,680
Speaker 1: trust are also protected in the event of litigation, so

739
00:36:14,800 --> 00:36:18,719
Speaker 1: legal action against beneficiaries because there is no single individual

740
00:36:18,760 --> 00:36:22,080
Speaker 1: that owns any asset oh changed by the trust, baby,

741
00:36:22,120 --> 00:36:24,200
Speaker 1: which is why I was saying before.

742
00:36:24,239 --> 00:36:26,600
Speaker 3: I'm well not Oh my god.

743
00:36:26,840 --> 00:36:30,319
Speaker 1: Creditors of an individual can't access any assets held by

744
00:36:30,320 --> 00:36:35,600
Speaker 1: a trust. Creditors also your ex boyfriend oh my god,

745
00:36:35,680 --> 00:36:38,279
Speaker 1: girlfriend yeah, or ex human that you used to have

746
00:36:38,320 --> 00:36:41,880
Speaker 1: a relationship with that is now salty that wants your staff. Well,

747
00:36:41,920 --> 00:36:44,280
Speaker 1: it's a trust, babe, and it was pre existing before

748
00:36:44,320 --> 00:36:47,280
Speaker 1: our relationship. Important to note that it was pre existing

749
00:36:47,320 --> 00:36:50,239
Speaker 1: before your relationship, because if an asset was established while

750
00:36:50,280 --> 00:36:53,719
Speaker 1: you were in a relationship, it's up for debate. So

751
00:36:53,719 --> 00:36:55,759
Speaker 1: if you're single right now and you've been thinking about

752
00:36:55,760 --> 00:36:57,440
Speaker 1: a trust, how so of the time my friend.

753
00:36:57,560 --> 00:36:59,920
Speaker 3: Yes, very clever. So creditors of.

754
00:36:59,840 --> 00:37:02,800
Speaker 1: An individual can't access any asset held by a trust,

755
00:37:02,840 --> 00:37:06,400
Speaker 1: and beneficiaries who receive capital gains can claim the fifty

756
00:37:06,440 --> 00:37:10,160
Speaker 1: percent capital gains discount where the asset has been held

757
00:37:10,200 --> 00:37:11,320
Speaker 1: for more than twelve months.

758
00:37:11,440 --> 00:37:13,680
Speaker 3: Okay, I think that makes sense.

759
00:37:13,680 --> 00:37:17,600
Speaker 1: Next is a unit trust? Okay, strap in, this one's

760
00:37:17,719 --> 00:37:21,320
Speaker 1: very exciting. A unit trust is one where the assets

761
00:37:21,320 --> 00:37:25,160
Speaker 1: are held and administered by the trustee of the trust

762
00:37:25,520 --> 00:37:28,360
Speaker 1: for the holders of units in the unit trust.

763
00:37:28,800 --> 00:37:30,400
Speaker 3: This means that unit.

764
00:37:30,160 --> 00:37:36,400
Speaker 1: Trusts predetermine the unit holders entitlements, which may be for income, capital,

765
00:37:36,640 --> 00:37:42,000
Speaker 1: or both, so this is less flexible. Unit trusts are

766
00:37:42,000 --> 00:37:45,880
Speaker 1: often used where unrelated parties run a business together and

767
00:37:45,920 --> 00:37:48,960
Speaker 1: for managed funds, where investors hold units in a trust.

768
00:37:49,000 --> 00:37:53,520
Speaker 1: They have limited application for most personal investments. So would

769
00:37:53,520 --> 00:37:56,160
Speaker 1: you like me to tell you where I use a

770
00:37:56,239 --> 00:37:57,600
Speaker 1: unit trust in my life? Yes?

771
00:37:57,640 --> 00:37:57,920
Speaker 3: Please?

772
00:37:58,000 --> 00:38:01,279
Speaker 1: Okay. So I have what's called discretionary trust for my

773
00:38:01,320 --> 00:38:03,680
Speaker 1: personal assets. Okay, because I'd love to be able to

774
00:38:03,760 --> 00:38:06,560
Speaker 1: in the future say, oh my gosh, Beck, I'm having kids.

775
00:38:06,600 --> 00:38:09,120
Speaker 1: This is the most exciting time in my life. I'm

776
00:38:09,120 --> 00:38:11,239
Speaker 1: going to add my kids to my trust. So that

777
00:38:11,280 --> 00:38:13,239
Speaker 1: if something happens to me, it goes to raight to them.

778
00:38:13,360 --> 00:38:15,680
Speaker 1: You know, once they turn eighteen, beck I can start

779
00:38:15,680 --> 00:38:18,640
Speaker 1: distributing income to them and getting some tax.

780
00:38:18,480 --> 00:38:20,960
Speaker 3: Benefits, which is really nice. Have to wait eighteen years

781
00:38:20,960 --> 00:38:21,160
Speaker 3: for that.

782
00:38:21,480 --> 00:38:24,719
Speaker 1: Sure, do you know why you don't distribute income or

783
00:38:24,760 --> 00:38:28,080
Speaker 1: most people in their right minds do not distribute income

784
00:38:28,160 --> 00:38:30,120
Speaker 1: to children under the age of eighteen.

785
00:38:30,760 --> 00:38:32,520
Speaker 3: Because they are irresponsible.

786
00:38:32,840 --> 00:38:36,239
Speaker 1: No, it's actually not that. It's because after kids earn

787
00:38:36,320 --> 00:38:40,319
Speaker 1: four hundred and sixteen dollars or get distributed more than

788
00:38:40,320 --> 00:38:42,960
Speaker 1: four hundred and sixteen dollars, they have to pay sixty

789
00:38:43,120 --> 00:38:47,920
Speaker 1: six percent tax. What sixty six percent that's higher than

790
00:38:47,920 --> 00:38:50,680
Speaker 1: the highest marginal tax rate for adults in Australia, which

791
00:38:50,719 --> 00:38:52,520
Speaker 1: is thirty eight and a half percent. That is so

792
00:38:52,680 --> 00:38:55,799
Speaker 1: ridiculous to stop reach people from using their kids as

793
00:38:55,880 --> 00:38:56,680
Speaker 1: tax vehicles.

794
00:38:56,680 --> 00:38:58,960
Speaker 3: Oh what if there's like a seventeen year old who

795
00:38:59,000 --> 00:39:00,600
Speaker 3: literally has to leave home because they.

796
00:39:01,200 --> 00:39:02,719
Speaker 1: They're going to have to deal with it. And like

797
00:39:02,760 --> 00:39:04,759
Speaker 1: I mean, there's always going to be brutal with the

798
00:39:04,760 --> 00:39:07,280
Speaker 1: government and with regulation, there's always going to be outliers

799
00:39:07,320 --> 00:39:09,680
Speaker 1: and reasons why it might be really good to be

800
00:39:09,719 --> 00:39:11,680
Speaker 1: able to do that. But at the end of the day,

801
00:39:11,719 --> 00:39:16,799
Speaker 1: that was institutionalized because really rich people were being like,

802
00:39:16,880 --> 00:39:19,319
Speaker 1: oh great, I can distribute up to like forty eight

803
00:39:19,320 --> 00:39:22,520
Speaker 1: thousand dollars to my kid on the lowest marginal tax rate,

804
00:39:23,239 --> 00:39:25,520
Speaker 1: and then they were getting money out of their trusts

805
00:39:25,560 --> 00:39:29,160
Speaker 1: at the lowest marginal tax rate and only paying really

806
00:39:29,200 --> 00:39:31,400
Speaker 1: really low amounts instead of the forty eight and a

807
00:39:31,400 --> 00:39:34,319
Speaker 1: half percent that they should have been paying because they

808
00:39:34,320 --> 00:39:37,120
Speaker 1: were using their kids, they were dropping in index account

809
00:39:37,160 --> 00:39:38,920
Speaker 1: and then transferring it back to the parents.

810
00:39:39,080 --> 00:39:41,239
Speaker 3: That's brutal, and I mean, I don't really know the

811
00:39:41,239 --> 00:39:43,000
Speaker 3: ins and outs of it all. But for kids who

812
00:39:43,040 --> 00:39:46,400
Speaker 3: literally need to work because they can't afford it's different

813
00:39:46,440 --> 00:39:50,120
Speaker 3: if they're earning their own income. Okay, if they're earning

814
00:39:50,200 --> 00:39:50,640
Speaker 3: their own.

815
00:39:50,520 --> 00:39:53,360
Speaker 1: Income, so it's not the same if you are, you know,

816
00:39:53,600 --> 00:39:55,719
Speaker 1: fourteen years and nine months and have your first job. Yeah,

817
00:39:55,719 --> 00:39:58,680
Speaker 1: that's a difference, I understood. Okay, very different story because

818
00:39:58,680 --> 00:40:01,920
Speaker 1: you're working for that income, which is very important to clarify. Sure,

819
00:40:02,040 --> 00:40:04,600
Speaker 1: if I was distributing money from a trust, gotcha, the

820
00:40:04,640 --> 00:40:06,759
Speaker 1: tax read is very very high, which I think is

821
00:40:06,920 --> 00:40:10,799
Speaker 1: very important to recognize because that's also why a lot

822
00:40:10,800 --> 00:40:15,479
Speaker 1: of people don't purchase shares in their children's names, right.

823
00:40:15,640 --> 00:40:19,120
Speaker 1: That's why often parents, if they're investing for their children,

824
00:40:19,160 --> 00:40:22,120
Speaker 1: will make the decision to purchase shares and just have

825
00:40:22,239 --> 00:40:24,640
Speaker 1: them in their name and transfer them to their kids'

826
00:40:24,680 --> 00:40:25,920
Speaker 1: names when they turn eighteen.

827
00:40:26,239 --> 00:40:27,480
Speaker 3: Gotcha because of tax?

828
00:40:27,560 --> 00:40:32,640
Speaker 1: Because of tax exactly pesky so discretionary trusts. That's what

829
00:40:32,680 --> 00:40:35,680
Speaker 1: I have personally. Beck. However, you guys know, I own

830
00:40:35,760 --> 00:40:39,239
Speaker 1: Zella Money obviously the world's greatest mortgage broken company, but

831
00:40:39,360 --> 00:40:42,200
Speaker 1: I own that fifty to fifty with Kate brandsgrowth. And

832
00:40:42,239 --> 00:40:45,320
Speaker 1: I adore Kate. She is one of my best friends.

833
00:40:45,520 --> 00:40:48,319
Speaker 1: She is literally the nicest human I have ever met.

834
00:40:48,480 --> 00:40:51,160
Speaker 1: I don't know anyone I like more than Kate. Sorry,

835
00:40:51,200 --> 00:40:53,560
Speaker 1: better at me, you know what, You're great too. But

836
00:40:53,840 --> 00:40:55,799
Speaker 1: at the end of the day, like I like Kate

837
00:40:55,920 --> 00:40:57,839
Speaker 1: so much that I went into business with her K's

838
00:40:58,400 --> 00:41:01,480
Speaker 1: But Kate and I have a U unit trust, and

839
00:41:01,520 --> 00:41:04,480
Speaker 1: we have a unit trust because we wanted to make

840
00:41:04,520 --> 00:41:06,560
Speaker 1: sure that when we were in our right minds and

841
00:41:06,960 --> 00:41:09,720
Speaker 1: so in love and so excited to start this business venture,

842
00:41:10,080 --> 00:41:12,960
Speaker 1: we were like, we definitely get fifty to fifty each.

843
00:41:13,360 --> 00:41:16,239
Speaker 1: These are the entitlements. This is what's happening. Whereas if

844
00:41:16,239 --> 00:41:19,120
Speaker 1: we had a discretionary trust that could have been flexible,

845
00:41:19,200 --> 00:41:22,120
Speaker 1: like no, no, no, no, this isn't flexible. I own half

846
00:41:22,160 --> 00:41:25,320
Speaker 1: the units, Kate owns half the units. What we get

847
00:41:25,560 --> 00:41:28,640
Speaker 1: in terms of income or capital or both is pre

848
00:41:28,760 --> 00:41:31,520
Speaker 1: determined and set. And that's why we have a unit

849
00:41:31,520 --> 00:41:35,200
Speaker 1: trust instead of a discretionary trust, because we're in business.

850
00:41:35,560 --> 00:41:37,759
Speaker 3: Like business sometimes doesn't.

851
00:41:37,400 --> 00:41:39,400
Speaker 1: Go so well, but I want to make sure that

852
00:41:39,440 --> 00:41:44,839
Speaker 1: we're both protected and we both have assets that are

853
00:41:45,040 --> 00:41:47,759
Speaker 1: definitely allocated so that it's not about, oh, Beck, can

854
00:41:47,800 --> 00:41:49,640
Speaker 1: I have more this month than you had? No? No, no,

855
00:41:49,760 --> 00:41:53,439
Speaker 1: like it's set, it's pre determined. So obviously that's why

856
00:41:53,480 --> 00:41:56,600
Speaker 1: they have limited application for most personal investments because you

857
00:41:56,640 --> 00:42:00,040
Speaker 1: don't get that flexibility. You would have to sell some

858
00:42:00,320 --> 00:42:04,120
Speaker 1: units in that trust for somebody to come in. But

859
00:42:05,200 --> 00:42:07,600
Speaker 1: my units in my trust are actually owned by my

860
00:42:07,640 --> 00:42:08,640
Speaker 1: discretionary trust.

861
00:42:08,680 --> 00:42:13,520
Speaker 3: Back, Okay, I think that's all slowly.

862
00:42:13,040 --> 00:42:17,160
Speaker 1: Sinking, slowly syncing in. So that's more for a company structure.

863
00:42:17,480 --> 00:42:20,040
Speaker 1: I know that some people have used it for personal

864
00:42:20,120 --> 00:42:23,760
Speaker 1: but like seldom ever, yeah, seldom, Ember, Okay. The next

865
00:42:23,800 --> 00:42:26,920
Speaker 1: is a hybrid. So as you can probably guess, the

866
00:42:27,000 --> 00:42:30,759
Speaker 1: hybrid is a mix of both. Hybrid discretionary trusts can

867
00:42:30,800 --> 00:42:35,080
Speaker 1: be hybrid discretionary or hybrid unit trusts. So discretionary are

868
00:42:35,120 --> 00:42:38,200
Speaker 1: obviously the most common, but they take the best features

869
00:42:38,200 --> 00:42:41,400
Speaker 1: of both discretionary and unit trusts and mix them together

870
00:42:41,719 --> 00:42:44,280
Speaker 1: in the one entity to create a powerful and flexible

871
00:42:44,320 --> 00:42:48,759
Speaker 1: tax planning solution. Not as common. Requires a lot more

872
00:42:48,800 --> 00:42:53,080
Speaker 1: documentation because you don't just go to your accountant and

873
00:42:53,280 --> 00:42:58,399
Speaker 1: have them organize a standard unit trust trusteed, so.

874
00:42:58,320 --> 00:42:59,440
Speaker 3: It's much more expensive.

875
00:43:00,320 --> 00:43:02,160
Speaker 1: You might go, oh, V, I really like the idea

876
00:43:02,160 --> 00:43:04,799
Speaker 1: of discretionary trust and the flexibility, but I also really

877
00:43:04,880 --> 00:43:08,120
Speaker 1: like the set nature of unit trusts and how units

878
00:43:08,160 --> 00:43:11,960
Speaker 1: are issued. And these are conversations to have with your accountant.

879
00:43:12,280 --> 00:43:14,600
Speaker 1: And to be honest, most people in cheese on the

880
00:43:14,640 --> 00:43:17,799
Speaker 1: money aren't going to care one way or another about this.

881
00:43:17,960 --> 00:43:20,879
Speaker 1: But you might care about a discretionary trust if you're

882
00:43:20,880 --> 00:43:21,600
Speaker 1: not in business.

883
00:43:22,040 --> 00:43:24,680
Speaker 3: Okay, I don't know about you. V. I am overwhelmed.

884
00:43:24,719 --> 00:43:25,400
Speaker 1: I'm exhausted.

885
00:43:25,760 --> 00:43:29,200
Speaker 3: So, because it's turned into quite a chunky episode, let's

886
00:43:29,239 --> 00:43:30,400
Speaker 3: make part two.

887
00:43:30,640 --> 00:43:33,080
Speaker 1: We are definitely going to make a part two because

888
00:43:33,400 --> 00:43:35,279
Speaker 1: there's honestly, so much to talk about that I was

889
00:43:35,320 --> 00:43:37,320
Speaker 1: meant to talk about in this episode but then didn't.

890
00:43:37,480 --> 00:43:40,359
Speaker 1: So we're meant to talk about this structure of superannuation.

891
00:43:40,880 --> 00:43:43,000
Speaker 1: We're meant to talk about HIN, which is a whoder

892
00:43:43,080 --> 00:43:45,440
Speaker 1: identification number, and I promised up the front, but this

893
00:43:45,560 --> 00:43:47,080
Speaker 1: is just blown out. So I'm going to cut it

894
00:43:47,120 --> 00:43:48,520
Speaker 1: here and we're going to do a part two, which

895
00:43:48,560 --> 00:43:51,640
Speaker 1: is very exciting. We're going to talk about chess sponsorship,

896
00:43:51,640 --> 00:43:53,440
Speaker 1: which is a question that I get a lot all

897
00:43:53,480 --> 00:43:56,640
Speaker 1: the time about when you're purchasing a share does it

898
00:43:56,719 --> 00:43:57,040
Speaker 1: need to have.

899
00:43:57,120 --> 00:43:58,160
Speaker 3: Chess sponsorship or not?

900
00:43:58,440 --> 00:44:00,759
Speaker 1: And spoiler, it's not as important as you think it is.

901
00:44:01,080 --> 00:44:02,759
Speaker 1: And we're going to just talk about I guess the

902
00:44:02,840 --> 00:44:05,959
Speaker 1: ownership structures inside shares so you can be a little

903
00:44:06,000 --> 00:44:09,080
Speaker 1: bit more comfortable with that. So this was more how

904
00:44:09,120 --> 00:44:12,160
Speaker 1: do you individually own the share and then how do

905
00:44:12,239 --> 00:44:15,279
Speaker 1: you purchase the share on the share market and own that?

906
00:44:15,760 --> 00:44:16,560
Speaker 1: Does that make sense?

907
00:44:16,640 --> 00:44:17,919
Speaker 3: That makes sense? I think it makes sense.

908
00:44:17,920 --> 00:44:20,319
Speaker 1: I've been really excited to talk about trusts with you today.

909
00:44:20,360 --> 00:44:22,200
Speaker 1: In fact, I really just wanted to break out.

910
00:44:22,040 --> 00:44:24,040
Speaker 4: A whiteboard and like draw it up and be like,

911
00:44:24,120 --> 00:44:27,399
Speaker 4: so this is the structure. This is how a discretionary

912
00:44:27,480 --> 00:44:29,960
Speaker 4: trust can work with a unit trust and a company

913
00:44:29,960 --> 00:44:31,920
Speaker 4: and these all click together, and this is what it

914
00:44:31,960 --> 00:44:32,319
Speaker 4: looks like.

915
00:44:32,360 --> 00:44:34,120
Speaker 3: And maybe I'll do that one day on like a

916
00:44:34,160 --> 00:44:36,840
Speaker 3: TikTok or something. You're allowed. I'm really excited.

917
00:44:36,840 --> 00:44:38,640
Speaker 1: No one else will care, but that's all right, all right,

918
00:44:38,719 --> 00:44:41,040
Speaker 1: let's go and we'll see you guys on Friday.

919
00:44:41,120 --> 00:44:44,520
Speaker 3: Bye guys.

920
00:44:48,160 --> 00:44:50,760
Speaker 1: The advice shared on She's on the Money is generally

921
00:44:50,920 --> 00:44:54,719
Speaker 1: nature and does not consider your individual circumstances. She's on

922
00:44:54,760 --> 00:44:58,239
Speaker 1: the Money exists purely for educational purposes and should not

923
00:44:58,320 --> 00:45:01,280
Speaker 1: be relied upon to make an investment or financial decision.

924
00:45:01,680 --> 00:45:04,120
Speaker 1: If you do choose to buy a financial product, read

925
00:45:04,160 --> 00:45:08,320
Speaker 1: the PDS TMD and obtain appropriate financial advice tailored towards

926
00:45:08,320 --> 00:45:11,600
Speaker 1: your needs. Victoria Divine and She's on the Money are

927
00:45:11,680 --> 00:45:15,279
Speaker 1: authorized representatives of Money sherper P T y lt D

928
00:45:15,480 --> 00:45:17,879
Speaker 1: A b N three two one is six four nine

929
00:45:18,040 --> 00:45:21,560
Speaker 1: two seven seven zero eight AFS L four five one

930
00:45:21,760 --> 00:45:25,040
Speaker 1: two eight nine