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

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

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Speaker 1: Ganya nianar Kaka yah y and Binahaka nian Our gay

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Speaker 1: In Nimbini yakarum Jar Dominyamiga Umagahawaka Woman damon Imlan Bumba

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Speaker 1: ban Gadabomba in and now in wakah Ghana on yak

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Speaker 1: rum Jar water Nadaa. Hello, beautiful friends, we gather on

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Speaker 1: the lands of the Aboriginal people. We thank acknowledge and

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Speaker 1: respect the Aboriginal people's land that we're gathering on today.

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Speaker 1: Take pleasure in all the land and respect all that

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Speaker 1: you see. She's on the Money podcast acknowledges culture, country,

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Speaker 1: community and connections, bringing you the tools, knowledge and resources

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Speaker 1: for you to thrive.

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

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

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Speaker 3: that proves investing isn't just for trust fund babies. It's

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Speaker 3: for your kids too, who might be trust fund babies,

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Speaker 3: they might be trust one babies.

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Speaker 2: Yeah, but that's not the point exact. But they don't

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Speaker 2: have to be. But they don't have to be they

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Speaker 2: could literally have no money and they could start investing exactly.

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Speaker 2: That's the end of the show. Thanks for having us.

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Speaker 3: That's all for today. Every parent wants to give their

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Speaker 3: kids the world and set them up financially, I assume,

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Speaker 3: I imagine, but you don't have a strategy, the ATO

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Speaker 3: might end up with the biggest slice of their future,

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Speaker 3: which is really I.

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Speaker 2: Know it's I mean, it's a swear word in my brain.

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Speaker 3: I'm back scited, and that's why I've brought in the

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Speaker 3: woman who knows financial strategy is the greatest form of

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Speaker 3: self care.

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Speaker 2: Victoria Divine and I do love talking about the ATO.

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Speaker 2: You do do someone's going on between you guys, I do, yeah,

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Speaker 2: we both love tax okay in common. Our community for

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Speaker 2: a very long time has been asking for more investing

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Speaker 2: for kids content, and we already have a playlist, so

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Speaker 2: we'll make sure that's linked in the show notes so

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Speaker 2: that you don't miss out on anything. But as you

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Speaker 2: also know, Beck, we have been working with Chaz's for

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Speaker 2: the longest time. Like I use chare Za's, lots of

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Speaker 2: our community use chare Za's. I believe you use just

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Speaker 2: uses share like we're part of the cults oh yeah,

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Speaker 2: and even if we weren't working with them, I would

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Speaker 2: still be using share Z's And something that I have

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Speaker 2: been waiting for is for them to drop kids accounts

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Speaker 2: because I'm like, come on, guys, I'm so excited for this.

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Speaker 2: And in the background there's been whispers of this kid's

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Speaker 2: account for ages, but because the taxation system here is

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Speaker 2: quite complex, that obviously takes a while. But guess what,

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Speaker 2: They've just dropped no kids investing account. Really, I'm so

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Speaker 2: excited and a lot of you I know have been

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Speaker 2: hanging out for this, Like there have been people in

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Speaker 2: my dms now and I don't mean to be dramatic,

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Speaker 2: but for literal years saying I'm just waiting for Chazy's

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Speaker 2: to drop their kids investing count. Well, I can start

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Speaker 2: investing because I don't want it on a different platform

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Speaker 2: or I don't want to use an investment bond, or

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Speaker 2: I don't want to do this, that or the other.

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Speaker 2: And that's so fine. But because investing for kids who

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Speaker 2: has been one of our most requested topics ever, we

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Speaker 2: thought to celebrate the fact that Sharsis now has kids counts,

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Speaker 2: would do an episode yeah, and we would talk about

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Speaker 2: this in depth how you do it, what it looks like,

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Speaker 2: and whether this is an option for you. So whether

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Speaker 2: you are a parent like me, maybe you're a care

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Speaker 2: or maybe you're like the world's best aunt, or maybe

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Speaker 2: you're just a gal who is nosy and wants to

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Speaker 2: know how this stuff works so that if ever it

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Speaker 2: comes up at brunch, you go, babe, sit down. So

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Speaker 2: do you know how the tax system works? You're my people?

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Speaker 2: Stick around. This one is for you.

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Speaker 3: Oh my god.

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Speaker 2: There are as you've probably gathered and this is why

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Speaker 2: lots of us get analysis paralysis. A lot of different

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Speaker 2: ways that you can invest for kids, but today I

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Speaker 2: have like nuanced sit down. We are specifically talking about

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Speaker 2: how to invest for your children in the share market.

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Speaker 2: So we're not talking about property, we're not talking about

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Speaker 2: alternative assets, definitely not talking about cryptocurrencies, gonna say what

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Speaker 2: a bit coin. We are also going to be talking

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Speaker 2: about how to make sure that the ato yes as

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Speaker 2: much as I love them, because we know that paying

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Speaker 2: tax is a privilege. Thank you, taxation Office. We actually

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Speaker 2: don't want the taxation office to end up with your

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Speaker 2: kids pocket money.

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Speaker 3: Ideally, ideally, ideally, don't get.

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Speaker 2: Me wrong, paying tax is a privilege. But I'm always

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Speaker 2: educating myself on ways that I can lower my tax

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Speaker 2: and make it most effective and all of that. At

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Speaker 2: the same time, the more tax you're paying, the more

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Speaker 2: money you're making. That is a great outcome.

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Speaker 3: Oh that's such a good way to look at it.

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Speaker 2: More tax, more money.

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Speaker 3: Okay, so's all that is really exciting. Thank you, shareses,

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Speaker 3: And also should we start with why we should think

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Speaker 3: about buying shares for our kids?

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Speaker 2: Yeah? Absolutely, absolutely, So the answer is actually time in

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Speaker 2: the market. So like your own new investor, we're calling

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Speaker 2: you new still, Like, at what point are you no

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Speaker 2: longer a new investor?

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Speaker 4: Bet well, I like to think five years, okay, five years,

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Speaker 4: do you know what, I'll give you whatever you want,

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Speaker 4: thank you. Maybe twenty years okay, all right, all right,

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Speaker 4: but you've started investing.

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Speaker 2: Yes, I think it's just been more than twelve months.

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Speaker 3: It is just over twelve months. Yeah, exactly, really scared.

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Speaker 3: You got a good memory.

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Speaker 2: I really like talking about investing. But time in the market, right,

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Speaker 2: and like you've seen some positive returns and that's just

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Speaker 2: over twelve months. And I mean it's nothing that's going

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Speaker 2: to like help you retire. But the number one thing

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Speaker 2: we hear from people who finally take that jump and

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Speaker 2: finally start investing is that they always wish they started sooner.

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Speaker 2: They're always like, oh my goodness, Like, imagine this investment

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Speaker 2: portfolio if i'd like started ten years ago. Yeah, And

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Speaker 2: that's the biggest advantage that our kids have when it

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Speaker 2: comes to investing. It's literally they get more time in

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Speaker 2: the market than us. Like most of us, I would say,

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Speaker 2: don't start. If we look at the shees on the

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Speaker 2: money community, we do not start. And this is not

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Speaker 2: because we are lazy. It's not because we don't get it.

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Speaker 2: It's because we don't have cash. Beck, most of us

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Speaker 2: don't start investing until we're in our thirties. Yeah, because sorry,

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Speaker 2: like even if we micro investing, and like, don't get

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Speaker 2: me wrong that she's on the money community a sleigh.

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Speaker 2: There is lots of young people starting investing young, but

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Speaker 2: most of us don't have the capacity to invest to

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Speaker 2: create financial freedom until we're a bit older. We all

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Speaker 2: wish we started earlier, because I have said it once,

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Speaker 2: I have said in a million times investing isn't about

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Speaker 2: trying to time the market. You can't. I'd be so

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Speaker 2: rich if you could Beck, because I would try my

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Speaker 2: hardest to time the market. You best believe I'd be

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Speaker 2: taking advantage of that system.

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Speaker 3: Me too.

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Speaker 2: But the best thing is how long you are in

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Speaker 2: the market for, because the earlier you start, the less

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Speaker 2: you contribute, but the bigger results. Yeah, okay, crazy. So

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Speaker 2: compounding interest is literally according to Einstein and me because basically, yeah,

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Speaker 2: they just don't even It's really hard. I always can't

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Speaker 2: tell the difference. Yeah, but Einstein said it was the

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Speaker 2: eighth wonder of the world. Yes, yes, I do believe

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Speaker 2: with him. Yeah, you were in that conversation. I believe

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Speaker 2: each year the money that you invested makes money, and

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Speaker 2: then that money that has been invested again makes more money.

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Speaker 2: So it basically is like free money compounding on itself,

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Speaker 2: and each year adds growth basically, not just in your contributions,

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Speaker 2: like you might have only invested one hundred dollars that year,

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Speaker 2: but on all the growth that's happened previously. So you

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Speaker 2: don't have to throw in thousands of dollars as a

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Speaker 2: lump sum. You can start small and be consistent and

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Speaker 2: it will build up.

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Speaker 5: Yeah.

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Speaker 2: And one of my favorite resources, and I will link

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Speaker 2: it in the show notes is the money Smart compound

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Speaker 2: investment calculator. I used that when I was a financial

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Speaker 2: advisor with clients. I would like literally moneysmart dot com.

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Speaker 2: And it was just a really good conversation starter because

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Speaker 2: you can put in how much you're going to invest,

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Speaker 2: you can put in the timeframe that you'll be investing in,

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Speaker 2: and you can see what compounding growth is. You can

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Speaker 2: change the interest rate based on what you're investing in.

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Speaker 2: But over a ten year period. Yeah, the money that

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Speaker 2: your money makes, like the free money component, actually overtakes

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Speaker 2: how much you contribute. That's so crazy, like money wins. Sorry,

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Speaker 2: I like free stuff. You like free stuff. Pay attention,

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Speaker 2: Sit up, we're talking. Yeah, but starting small and staying

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Speaker 2: consistent absolutely beats any day of the week trying to

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Speaker 2: quoite catch up later.

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Speaker 3: Yeah.

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Speaker 2: So even if it's ten dollars a week, that is

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Speaker 2: better than later down the track being like, well, I'll

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Speaker 2: have one hundred bucks next year and I'll try and

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Speaker 2: invest that every month. I can almost guarantee it doesn't

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Speaker 2: work out that way. I'll get into some maths later

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Speaker 2: because I have a lot of stuff written down. The

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Speaker 2: other good reason to starting vesting with your kids and

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Speaker 2: I have a son. He is almost two, which I

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Speaker 2: find insane, like time flies back, this is insane. I

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Speaker 2: hate it here. But he doesn't comprehend it yet. I'm trying,

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Speaker 2: but I feel like too a little bit young. But

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Speaker 2: he t investments. He's got his investment and we will

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Speaker 2: look at it together once he comprehends that it's not carrot.

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Speaker 2: Every time I show him, it's like, wow, yeah, he

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Speaker 2: doesn't get it. But it builds your child's financial literacy

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Speaker 2: when they want to start talking about money, when you

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Speaker 2: want to start talking about money with them, it can

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Speaker 2: be part of your normal family conversations. We're not I

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Speaker 2: don't know. I feel like money is an overwhelming topic

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Speaker 2: and so when it comes to children. This is just

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Speaker 2: my personal opinion. We need to really break it down.

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Speaker 2: We don't need to be like, oh, mummy and daddy

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Speaker 2: earn a combined income of x, this is how we

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Speaker 2: distribute that income, Like that's just a bit much. Sure,

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Speaker 2: especially when you're under the age of ten, Like that's

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Speaker 2: just a lot. But if you treat investing like a

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Speaker 2: family chat, kids are going to grow up seeing that

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Speaker 2: as part of their everyday life, not just something for

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Speaker 2: the rich people. It's just like, okay, cool, I get

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Speaker 2: two dollars pocket money, and fifty cents goes here, and

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Speaker 2: fifty cents goes towards my investment, and it's just it's

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Speaker 2: part and parcel of goes on and well why do

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Speaker 2: you do that? Oh? Well, because I'm putting money aside

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Speaker 2: for the future. Imagine if everybody got that opportunity when

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Speaker 2: they are young to set that kind of habit totally.

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Speaker 2: And most of your habits are formed before the age

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Speaker 2: of seven. Yeah, like the way you approach things really

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Speaker 2: does fall out from the way you were parented during childhood.

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Speaker 2: And that's okay because like, again we could go back

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Speaker 2: to money stories and talk about how that works, but

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Speaker 2: like it really does help for you and your children.

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Speaker 2: Remove this concept that money's really intimidating or money is

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Speaker 2: hard or it's hard to come by, and it changes

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Speaker 2: that mindset that stops people from even starting to invest

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Speaker 2: later in life.

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Speaker 3: So true, And like this concept that it's an adult thing,

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Speaker 3: but that also means that when you are an adult

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Speaker 3: and you're not good with money, you feel shamed for that.

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Speaker 3: It's like, hey, it's just a thing. You can learn

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Speaker 3: it at a young age. You can learn it in

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Speaker 3: an older age.

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Speaker 2: Whatever investing is for kids, beck, Yeah, like investing can

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Speaker 2: be for kids. Yeah, in the same way that fifty

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Speaker 2: years ago people said investing will for women.

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Speaker 5: Yeah.

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Speaker 3: So true.

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Speaker 2: Sorry, Like, don't get me wrong, We're not going to

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Speaker 2: be setting up retirement funds and talking to our kids

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Speaker 2: about like capital gains tax and you know, superannuation as

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Speaker 2: deeply as we would between you and I sure, like sorry,

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Speaker 2: if we start that habit really young, Yeah, they're just

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Speaker 2: going to fold on and be like, well, that's just

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Speaker 2: part of how you do it, right, that's it, and

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Speaker 2: it gives kids the opportunity. This is just all personal opinion,

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Speaker 2: but this is what I've seen fold out in my

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Speaker 2: friends groups, in my family, and you know, not with

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Speaker 2: my own kids yet, but I'm hoping with my kids

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Speaker 2: in the future. But they start to connect what they

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Speaker 2: see around them, so like they see the brands, they

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Speaker 2: see products, they see tech like kids are so smart. Yeah.

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Speaker 2: My nearly two year old corrected me the other day

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Speaker 2: because I turned on the TV and he's obsessed with Frozen.

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Speaker 2: It's basically the only show that we watch. We watch Frozen,

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Speaker 2: and I clicked on our remote the Netflix button. Yeah,

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Speaker 2: and he goes, no, gimmy, oh that his show is

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Speaker 2: on the Disney button. That's so cute. But also is

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Speaker 2: that not terrifying? Terrifying? They're so cute you because I

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Speaker 2: just like flicked the TV on, hit the Netflix thing

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Speaker 2: and was just like waiting for it to load. No, Dinny,

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Speaker 2: Oh my god, are you kidding? Anyway, was not happy

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Speaker 2: with that. But being able to talk to kids about

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Speaker 2: these products and these services and the brands like hey,

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Speaker 2: owning a piece of the companies they already know, like

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Speaker 2: Disney like Apple, Yeah, really helps them understand what shares

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Speaker 2: actually are, how the world works. When they start earning money,

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Speaker 2: they get to sixteen, or they get to fourteen and

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Speaker 2: nine months, they already have this mindset that saving and

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Speaker 2: investing is good and positive, but they know the difference.

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Speaker 2: Investing is better than saving. It's going to put you

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Speaker 2: in a better position long term. You say, for short

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Speaker 2: term goals. You invest for your future.

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Speaker 5: Yeah.

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Speaker 2: Imagine if everyone who was fourteen years and nine months

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Speaker 2: got that literacy. I know, I'm so sexy, that would

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Speaker 2: be really cool, right, Like, imagine if when you started

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Speaker 2: your first job it was just like the immediate division,

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Speaker 2: not just like, oh, you've got cash coming in back

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Speaker 2: now to deal with it? Yeah, sorry, that that would

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Speaker 2: be life changing for so many people. And they learn

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Speaker 2: that good things take time, like they would have been

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Speaker 2: able to see, like your fourteen years and nine months,

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Speaker 2: let's say that you just go, I'm going to start

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Speaker 2: my investing portfolio. Your kids five, Yeah, sorry, They've had

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Speaker 2: ten years in the market to look back on. They've

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Speaker 2: seen that good things take time. We're teaching them about

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Speaker 2: delayed gratification. And money grows best when it is left alone,

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Speaker 2: when you don't touch it, when you don't pull it

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Speaker 2: out to buy new whatever. Boo boos. I don't know

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Speaker 2: what are the kids buying these days. I don't know

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Speaker 2: who knows.

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Speaker 1: It.

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Speaker 2: Turns out I am definitely falling into that elder millennial

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Speaker 2: buckets and I'm enjoying it. But when you leave it alone,

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Speaker 2: it all balances out. And I just think that teaching

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Speaker 2: kids not just about money, not just about not just

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Speaker 2: about like putting themselves in the best position, but like,

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Speaker 2: how good is the learning that patience pays off more

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Speaker 2: than instant gratification ever, will, Like, if you want something,

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Speaker 2: you work for it. If you want something, it's going

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Speaker 2: to take time if you want it to be really good. Yes,

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Speaker 2: it's not going to be really good the very first time.

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Speaker 5: Yeah.

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Speaker 2: Yeah, that's so good to teach people.

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Speaker 3: That is really really a really good lesson. And I think, like, well,

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Speaker 3: I appreciate everything you're saying. Is it backed by research?

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Speaker 3: You know me Stat's girlhood.

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Speaker 2: Yeah, thank you for like changing the treaty here. But

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Speaker 2: kids who learn about investing early, they obviously grow portfolios,

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Speaker 2: but they don't just grow portfolios, they build habits that

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Speaker 2: help them avoid financial stress later in life. Perfect. That's

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Speaker 2: very sexy. Yeah. And research also tells us that early

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Speaker 2: financial literacy is linked to stronger wealth accumulation and less

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Speaker 2: risky money behavior as an adult.

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Speaker 3: Okay, that checks out.

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Speaker 2: So whilst I'm saying, oh, how beautiful, like in teaches

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Speaker 2: your kid patients, Yeah, ownership and decision making is actually

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Speaker 2: going to become ingrained from a research perspective to set

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Speaker 2: them up for the rest of their lives.

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Speaker 1: Yeah.

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Speaker 2: Yeah, that's pretty exciting, right.

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Speaker 3: Yeah.

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Speaker 2: And I have had the privilege of running this community

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Speaker 2: for like seven years now, that's crazy. Yeah wow. And

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Speaker 2: during that seven years, I have had the absolute privilege

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Speaker 2: of talking to our community members literally every single week,

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Speaker 2: deeply interviewing them every single week about their money stories.

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Speaker 2: But the difference between people who grew up with parents

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Speaker 2: that talked about money and they had financial literacy. We're

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Speaker 2: not saying people who grew up with money that is

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Speaker 2: a different story again, definitely, but those who didn't grow

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Speaker 2: up with financial literacy is like night and day. And

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Speaker 2: one of the regrets that I have over the last

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Speaker 2: seven years is that I haven't been better at tracking

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Speaker 2: that data because like, how powerful would that be? Like

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Speaker 2: we have, you know, all of our surveys and all

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Speaker 2: of our research, but there's a very big difference between

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Speaker 2: getting you to fill in a research and then like

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Speaker 2: anecdotal evidence where I'm documenting it. Anyway, one day I'll

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Speaker 2: do a PhD and it will probably be your money stories.

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Speaker 2: So I'm doing that because I'm interested. Yeah. Also, Beck,

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Speaker 2: doctor devine sounds pretty cool. That's so cool. Imagine being

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Speaker 2: like I'm a doctor and then they're like, oh, can

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Speaker 2: you help on this airplane, I'll be like, no, in

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Speaker 2: money so funny, Oh my god. I've But the difference

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Speaker 2: between kids who or adults that we talked to who

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Speaker 2: had conversations about financial literacy, and we're not talking about like, oh,

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Speaker 2: mom and dad gave me pocket money, Like we're talking

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Speaker 2: like they shared just money stories. Maybe they've gone through

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Speaker 2: bankruptcy and their parents were really constructive about what that

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Speaker 2: meant and how that worked. Like we're not talking yeah,

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Speaker 2: financial literacy, as in you gave your child money and

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Speaker 2: then oh wow, they're so good at money as an adult. No,

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Speaker 2: it was the conversations totally. It's like the way you

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Speaker 2: grow up. It's mindset.

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Speaker 3: Yeah, I completely agree, and I do. You just want

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Speaker 3: to take this opportunity to really quickly shout out to

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Speaker 3: people like myself who were young and not very financially literate,

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Speaker 3: but also couldn't for the ben necessities, the basic noess

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Speaker 3: and that's like such a difference. That is a difference,

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Speaker 3: but it's still it's still beneficial to learn all these

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Speaker 3: things because you can that cycle in the future. So

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Speaker 3: I do just want to quickly shout out to them

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Speaker 3: as well, because this is still very, very helpful no

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Speaker 3: matter what your money story is, one.

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Speaker 2: Hundred percent, and even if you're like Victoria, like and

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Speaker 2: we aren't silly here at Sheese on the money, we

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Speaker 2: know we're in the middle of the cost of living crisis.

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Speaker 2: Oh yeah, we know that so many parents are going

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Speaker 2: to listen to this and be like, oh my god,

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Speaker 2: Like I just learned how to invest for my kids,

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Speaker 2: and I have literally no cash flow because my husband

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Speaker 2: and I fight every Thursday afternoon after I get back

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Speaker 2: from grocery shopping because I always blow the budget and

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Speaker 2: we don't know what we're going to do about that. Yeah,

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Speaker 2: that is okay. Yeah, I think the crux of this

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Speaker 2: story is know what investing is, know how it works,

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Speaker 2: be able to have these conversations with your kids. Honestly,

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Speaker 2: the best thing that you can do is be open

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Speaker 2: and honest around money within reasons age appropriateness, but even

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Speaker 2: just saying, oh, like, let's go back to baby Beck, right, Like,

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Speaker 2: I know that you didn't grow up with a heap

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Speaker 2: of money, and I know that you didn't have a

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Speaker 2: lot of finance and money conversations, Like you probably understood

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Speaker 2: that money was scarce. You probably like you picked up

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Speaker 2: on that because kids are smart, Like you get it,

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Speaker 2: like asking mom for money that would have given you

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Speaker 2: like that pit in the bottom of your stomach because

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Speaker 2: you didn't want to do it, because you knew that

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Speaker 2: stress mum out totally. So imagine if the conversations in

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Speaker 2: your household weren't about how much money we didn't have.

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Speaker 2: But opic we're going to do the budgeting this week

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Speaker 2: for the grocery shop. We only have fifty dollars. How

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Speaker 2: do you reckon?

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Speaker 3: We could spend it totally?

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Speaker 2: Like, oh, this dinner and like back when you were little,

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Speaker 2: dinners being ten dollars was pretty reasonable. Yeah, but like

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Speaker 2: you know, what could we cook for ten dollars? Oh,

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Speaker 2: we could do this? What if we took this out? Yeah,

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Speaker 2: and didn't have that in that pasta dish? That brings

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Speaker 2: it down to eight dollars. We've got another two dollars

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Speaker 2: to play with over here, like kids get it? Yeah,

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Speaker 2: and it actually really helps. And it's not just my

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Speaker 2: instead around to our beck we don't have enough, yea,

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Speaker 2: it's like we have to work with this. Let's raise

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Speaker 2: this as an opportunity.

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Speaker 3: Yeah, that's so true.

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Speaker 2: And I'm not saying that that makes it easier. No,

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Speaker 2: money is still bloody hard, oh god, But we're all

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Speaker 2: raising little humans and we want them to have good

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Speaker 2: mindsets r So what can we do that doesn't cost

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Speaker 2: a scent?

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Speaker 3: So true? I think it's a really good place to

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Speaker 3: go to a really quick break, because I.

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Speaker 2: Do want to talk more about investing an investment strategy,

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Speaker 2: whether it's relatable.

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Speaker 3: Or not perfect. I can't wait to hear it. Don't

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Speaker 3: go anywhere, guys. Welcome back everyone. So if someone is

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Speaker 3: listening and can see the benefits and they want to

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Speaker 3: invest in the share market for their kids, what are

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Speaker 3: their options?

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Speaker 2: There are good options, which is very exciting. Let's backtrack

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Speaker 2: a little bit because I need to give you a

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Speaker 2: little bit of like history. Yes, before we jump into

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Speaker 2: what they can do. Children can't own direct shares, So

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Speaker 2: if they're un the age of eighteen, they actually can't

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Speaker 2: enter into a binding contract. So legally to purchase a share,

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Speaker 2: which is an asset, they would need to sign their name.

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Speaker 2: They can't do that because they can't give informed consent,

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Speaker 2: gotcha right. So that means that as a parent who

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Speaker 2: wants to help their children invest it, like, you can't

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Speaker 2: go down to the AX and just be like, oh,

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Speaker 2: I'm going to open a share trading account in baby

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Speaker 2: Beeck's name and I am going to invest in like.

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Speaker 2: It just doesn't work that way, unfortunately. So you actually

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Speaker 2: have two options to choose from. So you could invest

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Speaker 2: in your name for your children, or you could set

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Speaker 2: up a children's account. It's not in their name, but

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Speaker 2: it is allocated to them, and you are nominated as

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Speaker 2: the trustee on that account. So that sounds a little

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Speaker 2: bit confusing because I'm starting to use words like trustee

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Speaker 2: and like, you know, a miner's account and whatnot. It's

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Speaker 2: not trustee literally just means you're the responsible party for it.

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Speaker 2: Sure like it. Say there's a s'saxation word that basically

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Speaker 2: a legal word that just means, like trustee means that

434
00:21:05,480 --> 00:21:08,800
Speaker 2: you're the like you're responsible. Okay, so you're gonna happily

435
00:21:08,920 --> 00:21:11,080
Speaker 2: do that. You could also get a little bit more

436
00:21:11,119 --> 00:21:14,159
Speaker 2: complex and you could set up a family trust. But

437
00:21:14,680 --> 00:21:17,040
Speaker 2: if you've listened to me before, I would say that

438
00:21:17,119 --> 00:21:19,360
Speaker 2: that's not for everybody. Lots of people like to look

439
00:21:19,400 --> 00:21:22,320
Speaker 2: that up, lots of people like to entertain that as

440
00:21:22,359 --> 00:21:24,119
Speaker 2: an option, and I think more and more of us

441
00:21:24,920 --> 00:21:31,840
Speaker 2: are stumbling across this family trust structure. I'm going that

442
00:21:31,920 --> 00:21:34,880
Speaker 2: might be a good idea because of the rise of AI. Yeah,

443
00:21:35,240 --> 00:21:37,080
Speaker 2: and I say that because you if you go to

444
00:21:37,200 --> 00:21:39,639
Speaker 2: chat GPT and say, how could I invest for my children,

445
00:21:39,680 --> 00:21:41,520
Speaker 2: which is a great place to start, Like we love

446
00:21:41,600 --> 00:21:44,560
Speaker 2: research chat GPT is going to go. Oh well, there's

447
00:21:44,600 --> 00:21:46,520
Speaker 2: three main options. You could invest in your own name,

448
00:21:46,840 --> 00:21:48,920
Speaker 2: you could set up a kid's account with a platform

449
00:21:48,960 --> 00:21:50,960
Speaker 2: that allows it, or you could set up a family trust.

450
00:21:51,000 --> 00:21:53,439
Speaker 2: But what they don't tell you is how expensive family

451
00:21:53,560 --> 00:21:56,000
Speaker 2: trusts are. What they don't tell you is how complex

452
00:21:56,119 --> 00:21:58,680
Speaker 2: they can be. That it's a second layer of like

453
00:21:59,400 --> 00:22:02,440
Speaker 2: literal ta compliance. You need to make sure that you're

454
00:22:03,080 --> 00:22:06,560
Speaker 2: auditing that trust and it also has its own tax return. Yeah,

455
00:22:07,240 --> 00:22:11,840
Speaker 2: so when you go for simple questions like that, maybe

456
00:22:11,880 --> 00:22:15,040
Speaker 2: you don't get the background. We actually have an episode

457
00:22:15,080 --> 00:22:18,040
Speaker 2: talking about family trust. Make sure it's linked below to

458
00:22:18,119 --> 00:22:20,320
Speaker 2: make sure that if you're really interested, you can go there.

459
00:22:20,920 --> 00:22:23,720
Speaker 2: I have disclosed before that I have a family trust, yes,

460
00:22:23,960 --> 00:22:27,200
Speaker 2: but honestly, babe, that's because I have businesses. Yeah, I

461
00:22:27,320 --> 00:22:29,440
Speaker 2: don't invest for my kids in that, and I have

462
00:22:29,560 --> 00:22:33,560
Speaker 2: no intention of using that for my kids. Got you Okay, Like, yeah,

463
00:22:33,720 --> 00:22:36,880
Speaker 2: not advice, but personally I wouldn't do that. Okay, Yeah,

464
00:22:36,920 --> 00:22:42,440
Speaker 2: give your stories because I am a licensed yes individual anyway,

465
00:22:43,680 --> 00:22:46,640
Speaker 2: So option one, let's dive into it a little bit more. Yeah,

466
00:22:47,480 --> 00:22:51,119
Speaker 2: you are a regular adult. You open a regular adult

467
00:22:51,200 --> 00:22:54,520
Speaker 2: investment account and you hold the investments in your name.

468
00:22:55,040 --> 00:22:57,960
Speaker 2: So you've gone exactly the same way Beck you did.

469
00:22:58,160 --> 00:23:01,680
Speaker 2: You got shareses, but the money in there, you've got

470
00:23:01,720 --> 00:23:05,720
Speaker 2: it like earmarked or your kid, so there's not any

471
00:23:05,920 --> 00:23:09,600
Speaker 2: difference in how you would invest individually as to how

472
00:23:09,640 --> 00:23:12,440
Speaker 2: you might invest for your child. Lots of people do

473
00:23:12,520 --> 00:23:16,440
Speaker 2: it this way. This method is I would say, pretty

474
00:23:16,440 --> 00:23:18,879
Speaker 2: bread and butter. Comes with all the usual options, the

475
00:23:19,160 --> 00:23:23,320
Speaker 2: normal fees, the tax rules that apply to your marginal

476
00:23:23,480 --> 00:23:26,160
Speaker 2: tax rate, all the same tax rules, all the same

477
00:23:26,280 --> 00:23:29,840
Speaker 2: laws apply as an adult account. Just because you've got

478
00:23:29,920 --> 00:23:32,960
Speaker 2: it earmarked for your child doesn't mean the ATO knows

479
00:23:33,080 --> 00:23:37,480
Speaker 2: that if your TFN is linked to that account, it

480
00:23:37,680 --> 00:23:40,959
Speaker 2: means that some of that income will contribute to your

481
00:23:41,040 --> 00:23:44,200
Speaker 2: taxable income, which is where people who have higher income

482
00:23:44,320 --> 00:23:46,320
Speaker 2: start to go, Well, you know, if I'm paying forty

483
00:23:46,359 --> 00:23:48,359
Speaker 2: seven percent tax, I don't really want to do that,

484
00:23:48,480 --> 00:23:50,440
Speaker 2: and you might start to look at other options. But

485
00:23:51,400 --> 00:23:56,119
Speaker 2: it's for you is a complex decision. Yeah, okay. So

486
00:23:56,280 --> 00:23:59,040
Speaker 2: let's say you've invested for eighteen years and then you

487
00:23:59,240 --> 00:24:00,880
Speaker 2: have said to your kid, this is yours all along,

488
00:24:00,920 --> 00:24:02,400
Speaker 2: and you want to transfer it to your kid. That's

489
00:24:02,440 --> 00:24:05,240
Speaker 2: fantastic to transfer it to your kid. You can't just

490
00:24:05,520 --> 00:24:09,040
Speaker 2: change names. You have to sell those shares to give

491
00:24:09,119 --> 00:24:12,879
Speaker 2: them the money. You can't just transfer shares into somebody

492
00:24:12,960 --> 00:24:15,720
Speaker 2: else's name, or you have to dispose of them and

493
00:24:15,880 --> 00:24:18,000
Speaker 2: then reinvest them if that's what you want to do.

494
00:24:18,400 --> 00:24:21,679
Speaker 3: But by this point the share price might be higher.

495
00:24:22,080 --> 00:24:24,480
Speaker 2: Yes, I see it, because you've had all this sexy

496
00:24:24,560 --> 00:24:27,639
Speaker 2: compound interest because you've been investing for them for like

497
00:24:28,320 --> 00:24:33,000
Speaker 2: eighteen years. What happens is you get a really big

498
00:24:33,200 --> 00:24:37,480
Speaker 2: CGT event, so a capital gains tax event will happen

499
00:24:37,840 --> 00:24:40,000
Speaker 2: because the at will go, oh fantastic, Beck, you want

500
00:24:40,000 --> 00:24:42,800
Speaker 2: to sell those shares. Yeah, I know you're only investing

501
00:24:43,600 --> 00:24:46,320
Speaker 2: ten dollars a week or whatever, but we looked at

502
00:24:46,359 --> 00:24:48,400
Speaker 2: it and you now have like a couple of hundred grand.

503
00:24:49,480 --> 00:24:51,720
Speaker 2: So you're actually going to be up for tens of

504
00:24:51,800 --> 00:24:54,879
Speaker 2: thousands of dollars of tax on this when you sell it,

505
00:24:55,040 --> 00:24:58,840
Speaker 2: because it's capital gains. Oh my good. So you've paid

506
00:24:58,880 --> 00:25:01,800
Speaker 2: your tax along the way, okay on the money that

507
00:25:01,920 --> 00:25:04,520
Speaker 2: your money is aren't And that's fine, sure, but capital

508
00:25:04,600 --> 00:25:08,040
Speaker 2: gains happens when you dispose of an asset if that

509
00:25:08,200 --> 00:25:11,520
Speaker 2: makes sense. So it does, so you might not find

510
00:25:11,640 --> 00:25:14,960
Speaker 2: that as sexy of an option when you go. But

511
00:25:15,080 --> 00:25:17,160
Speaker 2: I want it to be in Beck's name. I don't

512
00:25:17,160 --> 00:25:19,840
Speaker 2: want it to sit in mum's name forever. You're eighteen.

513
00:25:19,880 --> 00:25:21,520
Speaker 2: The intent was to give it to you to manage

514
00:25:21,560 --> 00:25:24,120
Speaker 2: on your own. But we'll also lose a fair chunk

515
00:25:24,200 --> 00:25:26,480
Speaker 2: of this money if we dispose of it and put

516
00:25:26,480 --> 00:25:28,159
Speaker 2: it in your name because we have to play CGD.

517
00:25:28,760 --> 00:25:32,399
Speaker 3: Is there any way of so you go, You got

518
00:25:32,480 --> 00:25:34,119
Speaker 3: to pay that eventually, I assume if you want to,

519
00:25:34,160 --> 00:25:35,200
Speaker 3: like ever, that's.

520
00:25:35,040 --> 00:25:37,359
Speaker 2: How you want to do it, because legally the shares

521
00:25:37,359 --> 00:25:39,960
Speaker 2: aren't linked to your child like they true, that was

522
00:25:40,040 --> 00:25:43,480
Speaker 2: always in your name and it's just your intention to

523
00:25:43,640 --> 00:25:46,520
Speaker 2: give it to them at some point. Legally they're yours,

524
00:25:46,640 --> 00:25:50,360
Speaker 2: they're not your child's. Yeah, you do get more flexibility

525
00:25:50,440 --> 00:25:54,120
Speaker 2: with that money though, So like I used to talk

526
00:25:54,160 --> 00:25:56,320
Speaker 2: to a lot of people about investing for their children,

527
00:25:57,000 --> 00:25:58,560
Speaker 2: and you just never know how your kid's going to

528
00:25:58,600 --> 00:26:01,680
Speaker 2: grow up, So do the absolute best that we can.

529
00:26:02,960 --> 00:26:07,000
Speaker 2: But that doesn't mean that your child will necessarily make

530
00:26:07,080 --> 00:26:10,119
Speaker 2: the best decisions in the entire world. And if you

531
00:26:10,200 --> 00:26:12,640
Speaker 2: set up a structure that automatically rolled into their name

532
00:26:12,680 --> 00:26:16,480
Speaker 2: at the age of eighteen. I have seen it go

533
00:26:16,640 --> 00:26:19,359
Speaker 2: awry where that eighteen year old is not a responsible

534
00:26:19,400 --> 00:26:22,840
Speaker 2: eighteen year old. They might be struggling with addiction, they

535
00:26:22,960 --> 00:26:27,520
Speaker 2: might be struggling with gambling, they might have issues with

536
00:26:28,000 --> 00:26:31,439
Speaker 2: impulse control. There might just be a really good eighteen

537
00:26:31,520 --> 00:26:33,359
Speaker 2: year old who came into a lot of money and

538
00:26:33,480 --> 00:26:37,000
Speaker 2: got really excited totally, So that might be kind of

539
00:26:37,080 --> 00:26:39,040
Speaker 2: cool that if you're investing under your own name, you'd

540
00:26:39,080 --> 00:26:40,800
Speaker 2: be like, you are not getting that cash hold of

541
00:26:40,880 --> 00:26:44,720
Speaker 2: right now, you cannot be responsible. Yeah, yeah, yeah, I

542
00:26:45,000 --> 00:26:48,080
Speaker 2: like that. Yeah, Okay, so you didn't work that hard

543
00:26:48,160 --> 00:26:51,080
Speaker 2: and invest that many years investing beck Yeah, to then

544
00:26:51,280 --> 00:26:53,600
Speaker 2: hand it over to somebody who might not be the

545
00:26:53,640 --> 00:26:55,720
Speaker 2: most responsible person in the world at that point in

546
00:26:55,800 --> 00:26:56,640
Speaker 2: their life, it'd.

547
00:26:56,480 --> 00:26:57,120
Speaker 3: Be hard to watch.

548
00:26:57,720 --> 00:26:59,920
Speaker 2: Let's talk about option two. Yes, I could tell you

549
00:27:00,119 --> 00:27:02,840
Speaker 2: a lot of gossip, but I will leave that on

550
00:27:02,960 --> 00:27:06,200
Speaker 2: the table. The second option was a kid's account with

551
00:27:06,359 --> 00:27:09,119
Speaker 2: you as the trustee. So you're the responsible person. So

552
00:27:10,080 --> 00:27:13,399
Speaker 2: ultimately you open a kid's account in your name as

553
00:27:13,480 --> 00:27:15,400
Speaker 2: a trustee for your child. And there are a few

554
00:27:15,480 --> 00:27:18,520
Speaker 2: platforms that offer this. At this point in time, shares

555
00:27:18,680 --> 00:27:20,800
Speaker 2: is being I would say, newest to the market and

556
00:27:20,880 --> 00:27:24,080
Speaker 2: the one that I've been waiting for. The investment legally

557
00:27:24,160 --> 00:27:27,920
Speaker 2: belongs to the child, but as the trustee, you manage

558
00:27:27,960 --> 00:27:31,640
Speaker 2: it for them until the age of eighteen. And these accounts,

559
00:27:31,680 --> 00:27:34,760
Speaker 2: they still come with rules, right, So the child will

560
00:27:34,840 --> 00:27:37,560
Speaker 2: have to have a tax file number and it needs

561
00:27:37,600 --> 00:27:39,960
Speaker 2: to be linked to the account, not to the parents. Okay,

562
00:27:40,240 --> 00:27:44,280
Speaker 2: So any income is then reported under the child's tax

563
00:27:44,359 --> 00:27:47,760
Speaker 2: file number. So that means that the miners tax rules

564
00:27:48,240 --> 00:27:48,720
Speaker 2: do apply.

565
00:27:49,080 --> 00:27:50,080
Speaker 3: Are you okay?

566
00:27:50,400 --> 00:27:52,680
Speaker 2: And you know how I feel about those miners. Yes,

567
00:27:52,840 --> 00:27:58,320
Speaker 2: tax rules, and the ATO applies special miners tax rates,

568
00:27:59,520 --> 00:28:05,120
Speaker 2: and I don't really like them because they're astronomical sometimes

569
00:28:05,560 --> 00:28:07,960
Speaker 2: and we'll get into that. But the reason they do

570
00:28:08,080 --> 00:28:10,600
Speaker 2: this is not to punish your kid because they're investing early.

571
00:28:11,240 --> 00:28:14,399
Speaker 2: It's because they needed to change the tax rules because

572
00:28:14,480 --> 00:28:17,440
Speaker 2: really rich people were taking advantage of them and using

573
00:28:17,520 --> 00:28:20,920
Speaker 2: their kids to distribute their income at a really low rate,

574
00:28:21,920 --> 00:28:25,520
Speaker 2: and that's not cool. So basically they were designed to

575
00:28:25,680 --> 00:28:28,320
Speaker 2: stop all these tax rules were designed to stop parents

576
00:28:28,600 --> 00:28:31,720
Speaker 2: from putting investments into their kids' names and then avoiding

577
00:28:31,760 --> 00:28:32,600
Speaker 2: paying tax.

578
00:28:32,560 --> 00:28:34,560
Speaker 3: I can ask a really really quick question. Of course,

579
00:28:34,640 --> 00:28:37,399
Speaker 3: you can always confuse by if you can't actually legally

580
00:28:37,440 --> 00:28:39,480
Speaker 3: get a job until fourteen years and nine months, which

581
00:28:39,520 --> 00:28:42,440
Speaker 3: is a very random also a very random time, they.

582
00:28:42,440 --> 00:28:43,640
Speaker 2: Why not make it fifteen years?

583
00:28:44,000 --> 00:28:44,160
Speaker 4: Then?

584
00:28:44,320 --> 00:28:46,840
Speaker 3: How how would a miner be making money?

585
00:28:47,200 --> 00:28:52,600
Speaker 2: Anyways of ways that miners can make money child actors? True,

586
00:28:52,680 --> 00:28:55,600
Speaker 2: of course you might actually come from a relatively wealthy

587
00:28:55,680 --> 00:28:58,200
Speaker 2: family and have an asset distributed to you on pom

588
00:28:58,320 --> 00:29:02,600
Speaker 2: birth you got you, And this is where it used

589
00:29:02,600 --> 00:29:05,000
Speaker 2: to only not only apply you could have done it,

590
00:29:05,160 --> 00:29:08,600
Speaker 2: but it was more complex and like historically, investing was

591
00:29:09,280 --> 00:29:12,040
Speaker 2: much harder to get into, Like we've talked about this before,

592
00:29:12,120 --> 00:29:14,160
Speaker 2: Like there were really high amounts of money that you

593
00:29:14,320 --> 00:29:16,520
Speaker 2: had to invest to even invest in the sher market

594
00:29:16,600 --> 00:29:19,400
Speaker 2: for the first time. And nowadays, with platforms like chares is,

595
00:29:19,440 --> 00:29:21,160
Speaker 2: you can invest for as little as one sense, so

596
00:29:21,200 --> 00:29:24,840
Speaker 2: they're so much more accessible. But historically, really rich families

597
00:29:24,880 --> 00:29:27,160
Speaker 2: would be like, oh, well, we'll give baby Beck ten

598
00:29:27,240 --> 00:29:30,520
Speaker 2: thousand dollars worth of PHP shares when she's born, and

599
00:29:30,840 --> 00:29:34,080
Speaker 2: we bought them in British sterling with rich rich you

600
00:29:34,160 --> 00:29:37,360
Speaker 2: know what I mean, So like you might just be

601
00:29:37,600 --> 00:29:39,760
Speaker 2: basically dress fun baby, and we need a way of

602
00:29:39,840 --> 00:29:44,760
Speaker 2: tracking that. This system was born and then people started

603
00:29:44,800 --> 00:29:46,640
Speaker 2: taking advantage of it and the tax system and the

604
00:29:46,680 --> 00:29:49,520
Speaker 2: ADO man was like, ah ah, no, no, you've got

605
00:29:49,600 --> 00:29:51,560
Speaker 2: to stop this, and so they put rules on it.

606
00:29:51,920 --> 00:29:55,280
Speaker 2: And now those rules do feel restrictive because investing has

607
00:29:55,400 --> 00:29:58,680
Speaker 2: become more accessible. And now investing is more accessible, you

608
00:29:58,760 --> 00:30:01,120
Speaker 2: and I could do it, and we're in doing small amounts.

609
00:30:01,600 --> 00:30:03,720
Speaker 2: We're not trying to take advantage of the system. But

610
00:30:03,840 --> 00:30:09,040
Speaker 2: the system still crucifies you. Basically got you because they

611
00:30:09,320 --> 00:30:12,000
Speaker 2: have assumed that mainly this system will be used by

612
00:30:12,000 --> 00:30:16,520
Speaker 2: the rich rich understood, okay, okay, And these like these

613
00:30:16,600 --> 00:30:20,680
Speaker 2: tax rates apply to unearned income, So if you were

614
00:30:20,720 --> 00:30:25,160
Speaker 2: working as a child, that's different than unearned income because

615
00:30:25,200 --> 00:30:27,360
Speaker 2: like if you're a kid and someone's gifting you money

616
00:30:27,400 --> 00:30:29,880
Speaker 2: into your share portfolio and you're making money from that,

617
00:30:30,040 --> 00:30:33,360
Speaker 2: like you didn't work for it, basically, and that's sexy

618
00:30:33,400 --> 00:30:35,360
Speaker 2: because we love not working for money. But also the

619
00:30:35,440 --> 00:30:38,640
Speaker 2: ATO sees that as unearned income, so things like dividends

620
00:30:38,680 --> 00:30:43,120
Speaker 2: and interest and distributions from an ETF or a managed

621
00:30:43,160 --> 00:30:46,920
Speaker 2: fund fall under that earned income. Like once you're fourteen,

622
00:30:46,960 --> 00:30:49,080
Speaker 2: years and nine months and it's a little bit more vanilla,

623
00:30:49,360 --> 00:30:52,720
Speaker 2: like your wage from a part time job. They go, oh, no, no, no,

624
00:30:52,840 --> 00:30:55,960
Speaker 2: that's legitimate work, and it's just taxed at normal adult rates.

625
00:30:56,040 --> 00:30:58,680
Speaker 2: Like the minus rules don't apply. That's why you might

626
00:30:58,720 --> 00:31:00,800
Speaker 2: be like thee. None of these rules applied when I

627
00:31:00,880 --> 00:31:03,320
Speaker 2: was under eighteen and I had my first job, because

628
00:31:03,320 --> 00:31:06,560
Speaker 2: you were earning the income. This is what we're talking about,

629
00:31:06,720 --> 00:31:11,040
Speaker 2: is the unearned income. So if you've followed me thus

630
00:31:11,120 --> 00:31:13,920
Speaker 2: far and you're still hanging out, letting me talk to you,

631
00:31:14,040 --> 00:31:17,240
Speaker 2: probably in your car at minus tax rates. One, thank

632
00:31:17,320 --> 00:31:21,040
Speaker 2: you for having me. Two, let me tell you what

633
00:31:21,240 --> 00:31:24,200
Speaker 2: those thresholds are and get into the nitty gritty. So

634
00:31:24,640 --> 00:31:26,880
Speaker 2: your kid can earn up to four hundred and sixteen

635
00:31:26,920 --> 00:31:30,239
Speaker 2: dollars each in every single financial year or right now,

636
00:31:30,440 --> 00:31:32,560
Speaker 2: we're just talking about the twenty twenty five twenty twenty

637
00:31:32,600 --> 00:31:36,200
Speaker 2: six financial year rules. First, four hundred and sixteen dollars

638
00:31:36,520 --> 00:31:40,440
Speaker 2: tax free. Great. If you earn between four hundred and

639
00:31:40,560 --> 00:31:45,400
Speaker 2: seventeen and one thy three hundred and seven dollars sixty

640
00:31:45,480 --> 00:31:49,200
Speaker 2: six percent tax, Jeez, isn't that rude?

641
00:31:49,360 --> 00:31:50,440
Speaker 3: That's insane?

642
00:31:51,120 --> 00:31:53,920
Speaker 2: More than that. So if you earn more than thirteen

643
00:31:54,040 --> 00:31:58,520
Speaker 2: hundred and seven dollars, It's forty five percent, which is

644
00:31:59,160 --> 00:32:02,440
Speaker 2: the highest margin tax bracket for an adult on the

645
00:32:02,520 --> 00:32:07,880
Speaker 2: whole amount over thirteen hundred and seven dollars plus the

646
00:32:08,000 --> 00:32:10,640
Speaker 2: five hundred and ninety four dollars from the earlier tier.

647
00:32:11,080 --> 00:32:13,719
Speaker 3: Okay, why don't they just make it slightly more than

648
00:32:13,720 --> 00:32:15,560
Speaker 3: the adult rates? So adults are like, Okay, well, I

649
00:32:15,560 --> 00:32:17,920
Speaker 3: won't do it anymore. It's not it's no longer effective. Like, no,

650
00:32:18,080 --> 00:32:20,240
Speaker 3: we're going to go above and beyond with it.

651
00:32:20,400 --> 00:32:24,240
Speaker 2: We've really said, hahaha, have fun trying to set your

652
00:32:24,320 --> 00:32:25,040
Speaker 2: kid up for life.

653
00:32:25,280 --> 00:32:28,080
Speaker 3: Yeah, like, oh, so we actually don't care about the

654
00:32:28,080 --> 00:32:29,760
Speaker 3: poor people that are actually trying to make money. We're

655
00:32:29,800 --> 00:32:31,440
Speaker 3: thinking only of the rich and we don't want you

656
00:32:31,440 --> 00:32:32,720
Speaker 3: to a benefit anymore, which is yah.

657
00:32:32,760 --> 00:32:35,360
Speaker 2: So this this all stuff that we have to be

658
00:32:35,600 --> 00:32:39,000
Speaker 2: really aware of, crazy because like, let's be honest, it

659
00:32:39,080 --> 00:32:41,000
Speaker 2: might work out for the best. And I do have

660
00:32:41,080 --> 00:32:44,320
Speaker 2: a strategy that can be helpful in minimizing tax later

661
00:32:44,680 --> 00:32:47,120
Speaker 2: in the episode that we will get to. But so

662
00:32:47,640 --> 00:32:52,120
Speaker 2: beck money win. Many kids accounts have low account fees, Okay,

663
00:32:52,160 --> 00:32:55,680
Speaker 2: thlus the money win. The love of money win. Withdrawals

664
00:32:56,080 --> 00:32:58,680
Speaker 2: must benefit the child, ah, so that you can't just

665
00:32:58,720 --> 00:33:00,880
Speaker 2: withdraw the money and be like, huh, that's my now lol.

666
00:33:01,200 --> 00:33:03,920
Speaker 2: It must benefit the child because the account operates like

667
00:33:04,040 --> 00:33:08,239
Speaker 2: a bear trust, So that means that any withdrawals need

668
00:33:08,360 --> 00:33:10,400
Speaker 2: to be used for the child's benefits. So it needs

669
00:33:10,480 --> 00:33:13,800
Speaker 2: to be for things like education or future savings or

670
00:33:13,960 --> 00:33:16,760
Speaker 2: similar to that. Like you might be going, oh, I'm

671
00:33:16,840 --> 00:33:19,520
Speaker 2: actually using it for them. It has to be for them,

672
00:33:19,640 --> 00:33:22,640
Speaker 2: not just because you decided to withdraw it. Parents can't

673
00:33:22,800 --> 00:33:25,680
Speaker 2: legally use the funds for themselves. How do they regulate that.

674
00:33:27,760 --> 00:33:31,800
Speaker 2: It's a very hard honesty system basically, but if you

675
00:33:31,880 --> 00:33:34,800
Speaker 2: get audited by the ATO, they'll be kbeck. So you

676
00:33:34,880 --> 00:33:37,480
Speaker 2: pulled out one thousand dollars from your kid's account, could

677
00:33:37,520 --> 00:33:39,800
Speaker 2: you please show us where that went? And it's twenty

678
00:33:39,840 --> 00:33:42,440
Speaker 2: twenty six, so sorry. They've probably got the tracking on

679
00:33:43,040 --> 00:33:45,000
Speaker 2: what account it came from, what account it went to,

680
00:33:45,200 --> 00:33:47,640
Speaker 2: and they can probably trace it. So as much as

681
00:33:47,680 --> 00:33:50,200
Speaker 2: it's an honesty system, they could probably work it out

682
00:33:50,240 --> 00:33:53,680
Speaker 2: from doing a deep dive into bank statements that includes

683
00:33:53,760 --> 00:33:57,640
Speaker 2: during financial hardship. I see, So if you were investing

684
00:33:57,680 --> 00:34:00,320
Speaker 2: in your own name, yes, it's earmarked for your but

685
00:34:00,400 --> 00:34:02,800
Speaker 2: if you were experiencing financial hardship, you could pull it

686
00:34:02,840 --> 00:34:04,440
Speaker 2: out in no worries. No one's going to question you

687
00:34:04,520 --> 00:34:09,360
Speaker 2: because technically it's legally yours. Okay, amazing. So what I

688
00:34:09,440 --> 00:34:11,560
Speaker 2: would say is you never ever, ever, and I've said

689
00:34:11,560 --> 00:34:13,000
Speaker 2: this a million times one, it will be investing in

690
00:34:13,000 --> 00:34:16,960
Speaker 2: your emergency fund or any money that you might need

691
00:34:17,080 --> 00:34:20,480
Speaker 2: to access for you. It's just the child in there. Yes,

692
00:34:21,840 --> 00:34:25,080
Speaker 2: transfer of ownership happens at eighteen, so when a child

693
00:34:25,200 --> 00:34:28,600
Speaker 2: reaches adulthood, the account can formally be transferred into their

694
00:34:28,680 --> 00:34:32,880
Speaker 2: name without triggering capital gains tax. Oh soon, know how

695
00:34:32,880 --> 00:34:34,840
Speaker 2: I said before, like, that's an issue if it's in

696
00:34:34,920 --> 00:34:37,360
Speaker 2: your name because it was always legally theirs and you

697
00:34:37,440 --> 00:34:40,600
Speaker 2: were just the trustee. We're dropping the trustee. They don't

698
00:34:40,640 --> 00:34:44,480
Speaker 2: need the supervision anymore because they're of age. Some accounts

699
00:34:44,640 --> 00:34:47,719
Speaker 2: actually give you the ability to transfer it up to

700
00:34:47,840 --> 00:34:52,279
Speaker 2: the age of twenty five if you feel like your

701
00:34:52,400 --> 00:34:55,160
Speaker 2: kid maybe not ready for it at eighteen, got you?

702
00:34:55,320 --> 00:34:55,560
Speaker 1: Okay?

703
00:34:55,800 --> 00:34:58,000
Speaker 2: So I'm not just saying, oh my god, Victoria saw

704
00:34:58,080 --> 00:35:00,480
Speaker 2: all of these things happen. No, this is an industry

705
00:35:00,560 --> 00:35:04,319
Speaker 2: wide thing. I think it's not. I'm sorry. I think

706
00:35:04,320 --> 00:35:07,600
Speaker 2: it's just a teenage thing. You turn, you're not immediately

707
00:35:07,800 --> 00:35:10,040
Speaker 2: like your frontal lobe still has so much growing too.

708
00:35:10,480 --> 00:35:12,960
Speaker 2: It's so young. I look back at me at eighteen,

709
00:35:13,000 --> 00:35:15,560
Speaker 2: and I thought I was so smart. Girls, sit down,

710
00:35:15,880 --> 00:35:19,600
Speaker 2: I know. And one thing worthy of thinking about as

711
00:35:19,680 --> 00:35:24,399
Speaker 2: always is minimum investment amount. Some platforms like chare Z's,

712
00:35:24,960 --> 00:35:27,200
Speaker 2: and this is not even me promoting them, but literally

713
00:35:27,360 --> 00:35:30,360
Speaker 2: like Shares is let you buy fractional shares with no

714
00:35:30,520 --> 00:35:33,400
Speaker 2: minimum amount, So it's totally possible to invest, like literally

715
00:35:33,480 --> 00:35:36,160
Speaker 2: back one dollar or that fifty dollars birthday money that

716
00:35:36,200 --> 00:35:39,160
Speaker 2: they got from their aunt in a card, or just

717
00:35:39,239 --> 00:35:42,040
Speaker 2: popping in ten dollars a week. So that's completely feasible.

718
00:35:42,520 --> 00:35:46,440
Speaker 2: And that continuity and consistency really does matter, and it

719
00:35:46,520 --> 00:35:49,279
Speaker 2: makes investing accessible even if you don't have a really

720
00:35:49,280 --> 00:35:50,440
Speaker 2: big lump sum at the start.

721
00:35:50,960 --> 00:35:51,480
Speaker 3: Amazing.

722
00:35:51,600 --> 00:35:56,080
Speaker 2: And historically on other episodes talking about investing, I've talked

723
00:35:56,080 --> 00:35:59,400
Speaker 2: about investment bonds and things like that, and they do

724
00:35:59,560 --> 00:36:02,919
Speaker 2: have a minute investments, usually of hundreds of dollars. It's

725
00:36:02,960 --> 00:36:05,839
Speaker 2: just not feasible for everybody. No, So like, yes, don't

726
00:36:05,880 --> 00:36:08,200
Speaker 2: get me wrong, there's lots of different structures, but like,

727
00:36:09,280 --> 00:36:11,800
Speaker 2: I think it's really important to also be accessible, and like,

728
00:36:11,880 --> 00:36:13,640
Speaker 2: I'm sorry, your kid isn't going to sit down with

729
00:36:13,719 --> 00:36:16,280
Speaker 2: you at like six and be like, oh, I'm investing,

730
00:36:16,360 --> 00:36:20,719
Speaker 2: and you're letting them invest hundreds of dollars each transaction? Yeah? Crazy, Sorry,

731
00:36:20,760 --> 00:36:23,440
Speaker 2: really get them money from exactly? Like how much are

732
00:36:23,520 --> 00:36:25,799
Speaker 2: you paying your kid in pocket money? And if it's

733
00:36:25,920 --> 00:36:30,640
Speaker 2: that much, why are you listening to she's on them? True? Okay,

734
00:36:30,760 --> 00:36:33,160
Speaker 2: I love that you're here. But if you can afford

735
00:36:33,200 --> 00:36:36,000
Speaker 2: to give your kids thousands of dollars to invest on

736
00:36:36,040 --> 00:36:39,280
Speaker 2: a regular and consistent basis, you've made it. You probably

737
00:36:39,320 --> 00:36:39,880
Speaker 2: don't need us.

738
00:36:40,120 --> 00:36:43,759
Speaker 3: Yeah, congratulations, you actually pass the course, so she's in

739
00:36:43,800 --> 00:36:44,319
Speaker 3: the money calls.

740
00:36:44,640 --> 00:36:47,920
Speaker 2: Yeah, you actually graduated ages ago. That's all good. But

741
00:36:48,080 --> 00:36:52,480
Speaker 2: like we're just talking about a relatively relatable here.

742
00:36:52,800 --> 00:36:54,920
Speaker 3: Yeah, but thank you so much for being his stiff.

743
00:36:55,120 --> 00:36:57,960
Speaker 2: Appreciate it. And I mean, having a separate account does

744
00:36:58,080 --> 00:37:00,800
Speaker 2: let you separate their future mone from the money that

745
00:37:00,920 --> 00:37:02,759
Speaker 2: you have. Having it in yours can get a little

746
00:37:02,800 --> 00:37:05,440
Speaker 2: bit murky. That's where you sometimes find parents who are

747
00:37:05,760 --> 00:37:08,840
Speaker 2: choosing that strategy to oh, well, I'm going to have

748
00:37:09,320 --> 00:37:11,560
Speaker 2: my kids account on Chasias and I might just use

749
00:37:11,600 --> 00:37:14,200
Speaker 2: another platform. You don't really like having two platforms, but

750
00:37:14,280 --> 00:37:16,759
Speaker 2: you just like wanted to keep them separate. Yeah, and

751
00:37:16,840 --> 00:37:18,319
Speaker 2: it could get a little bit messy and then you're

752
00:37:18,320 --> 00:37:20,960
Speaker 2: paying double fees and then you're like, anyway, it's just

753
00:37:21,040 --> 00:37:24,040
Speaker 2: not as fun when everything's in your name. I would

754
00:37:24,040 --> 00:37:27,680
Speaker 2: say it's easier for their quote future fund to blur

755
00:37:27,920 --> 00:37:30,279
Speaker 2: with you, like your general savings. You might ife an

756
00:37:30,320 --> 00:37:33,279
Speaker 2: invest it anyway, and a kids account. I would say

757
00:37:34,040 --> 00:37:40,319
Speaker 2: it just creates a like psychological and legal like boundary. Yeah,

758
00:37:40,440 --> 00:37:43,080
Speaker 2: but like for me, it's about the psychological boundary mostly

759
00:37:43,360 --> 00:37:45,480
Speaker 2: like love the legals of it, but like, I just

760
00:37:45,600 --> 00:37:47,800
Speaker 2: love that your kid would have their own little platform.

761
00:37:48,160 --> 00:37:50,200
Speaker 2: So like you log in and you show them their kids.

762
00:37:50,840 --> 00:37:54,200
Speaker 2: They can see their growth and that's theirs and it's

763
00:37:54,320 --> 00:37:57,520
Speaker 2: clear and it's consistent and it helps you stay on track.

764
00:37:57,760 --> 00:37:59,399
Speaker 2: So true, and you can be like, oh, you could

765
00:37:59,440 --> 00:38:01,640
Speaker 2: look at mmiesmummies. There's a little bit more complex, but

766
00:38:02,080 --> 00:38:05,080
Speaker 2: here's this like and we're having fun conversations. For me,

767
00:38:05,640 --> 00:38:08,920
Speaker 2: investing for kids is so exciting because I know that

768
00:38:09,040 --> 00:38:10,680
Speaker 2: you're doing it because you want to put your future

769
00:38:10,719 --> 00:38:12,360
Speaker 2: kid first, Like you're just like, I want you to

770
00:38:12,440 --> 00:38:14,920
Speaker 2: have the best financial future, And like, I don't think

771
00:38:14,960 --> 00:38:18,319
Speaker 2: I've ever met a parent who says I don't want

772
00:38:18,520 --> 00:38:21,160
Speaker 2: better for my kid than I had. Like, we all

773
00:38:21,360 --> 00:38:24,239
Speaker 2: want better for our kids. Whether we can afford that

774
00:38:24,400 --> 00:38:27,600
Speaker 2: or not, we want that. But importantly, even if you're

775
00:38:27,680 --> 00:38:31,879
Speaker 2: investing really small amounts, it's an educational tool. When kids

776
00:38:31,960 --> 00:38:34,120
Speaker 2: can log in and see their own little balance growing,

777
00:38:34,280 --> 00:38:37,239
Speaker 2: it turns investing into something tangible, and you are giving

778
00:38:37,280 --> 00:38:40,680
Speaker 2: them the financial literacy that you never had. Yeah, even

779
00:38:40,719 --> 00:38:43,960
Speaker 2: if it's ten dollars, do you know how excited ten

780
00:38:44,040 --> 00:38:47,719
Speaker 2: dollars to kids? Oh my lord, we can't buy lunch

781
00:38:47,760 --> 00:38:52,239
Speaker 2: for ten dollars anymore, but could basically convince any under

782
00:38:52,320 --> 00:38:55,080
Speaker 2: ten year old to wash your car, vacuum it out,

783
00:38:55,320 --> 00:38:56,960
Speaker 2: all for under ten bucks, you know what I mean.

784
00:38:57,440 --> 00:39:01,200
Speaker 2: They think that's so much money. You might not, but

785
00:39:01,440 --> 00:39:02,759
Speaker 2: they see that and you go, oh my god, your

786
00:39:02,840 --> 00:39:05,080
Speaker 2: ten dollars is now worth eleven dollars. Isn't that so crazy?

787
00:39:05,239 --> 00:39:07,399
Speaker 2: It's so crazy. That was a dollar of free money

788
00:39:07,400 --> 00:39:10,680
Speaker 2: and you didn't even have to vacuum the car. That's incredible, right,

789
00:39:10,920 --> 00:39:13,959
Speaker 2: And the idea around or like the concept of having

790
00:39:14,000 --> 00:39:16,280
Speaker 2: a kid's account is that it's tax free it transfer,

791
00:39:16,560 --> 00:39:19,120
Speaker 2: which we love to see because obviously we don't want

792
00:39:19,120 --> 00:39:21,160
Speaker 2: to pay more tax than we have to. So when

793
00:39:21,160 --> 00:39:23,680
Speaker 2: they turn eighteen, you can usually transfer the portfolio into

794
00:39:23,719 --> 00:39:27,200
Speaker 2: their name without triggering CGT because it was legally theirs

795
00:39:27,239 --> 00:39:29,400
Speaker 2: and you were just the trustee as opposed to you

796
00:39:29,440 --> 00:39:31,360
Speaker 2: it being in your name back and like having to

797
00:39:31,440 --> 00:39:34,080
Speaker 2: go through the legal rigmarole. You're kind of just removing

798
00:39:34,080 --> 00:39:36,759
Speaker 2: yourself as a trustee. And if the investments were in

799
00:39:36,840 --> 00:39:40,040
Speaker 2: your name, that transfer would have triggered a CGT event

800
00:39:40,360 --> 00:39:43,879
Speaker 2: at your tax rate, Yes, on your tax return, got

801
00:39:43,960 --> 00:39:45,480
Speaker 2: you got you got. So it's not even your kid

802
00:39:45,520 --> 00:39:46,920
Speaker 2: who pays a tax that comes up for you.

803
00:39:47,280 --> 00:39:48,640
Speaker 3: Yeah, that really is shocking.

804
00:39:48,680 --> 00:39:51,040
Speaker 2: So I pay your own tax, you rich, and then

805
00:39:51,120 --> 00:39:53,680
Speaker 2: you make me pay your tax still I know, no illegal.

806
00:39:53,800 --> 00:39:57,040
Speaker 3: That part really shocks me. So the taxing sounds pretty

807
00:39:57,040 --> 00:39:59,800
Speaker 3: complicated and like scary. It almost like and I don't know,

808
00:40:00,640 --> 00:40:02,880
Speaker 3: this is probably not right, but I'm almost like, Okay,

809
00:40:03,120 --> 00:40:04,000
Speaker 3: what's the point.

810
00:40:04,080 --> 00:40:07,640
Speaker 2: Those tax rates I gave you before sound astronomical and overwhelming,

811
00:40:08,120 --> 00:40:10,800
Speaker 2: and that is what usually scares parents off. But I

812
00:40:10,920 --> 00:40:12,880
Speaker 2: do want to and I promised some maths. I do

813
00:40:13,000 --> 00:40:15,359
Speaker 2: want to break it down for you. So the big

814
00:40:15,480 --> 00:40:18,800
Speaker 2: rate only kicks in if the account in total, not

815
00:40:18,920 --> 00:40:21,120
Speaker 2: if you invested four hundred and sixteen, but if the

816
00:40:21,160 --> 00:40:24,440
Speaker 2: account makes more than four hundred and sixteen dollars of

817
00:40:24,560 --> 00:40:25,920
Speaker 2: investment income in one year.

818
00:40:26,160 --> 00:40:28,080
Speaker 3: So let's say you put a dollar in and somehow

819
00:40:28,160 --> 00:40:30,840
Speaker 3: that dollar has turned into four hundred and seventeen.

820
00:40:30,440 --> 00:40:34,279
Speaker 2: Dollars, like you might be talking about tax on that

821
00:40:34,400 --> 00:40:38,520
Speaker 2: one dollar above the four hundred and sixteen dollar threshold threshold.

822
00:40:39,920 --> 00:40:42,320
Speaker 2: So these are things like your dividends. So you know

823
00:40:42,360 --> 00:40:45,520
Speaker 2: when you open your portfolio and you have more than

824
00:40:45,560 --> 00:40:47,960
Speaker 2: a one thousand dollars in there now, but we're not

825
00:40:48,080 --> 00:40:50,279
Speaker 2: talking about your thousand dollars. We're talking about the money

826
00:40:50,360 --> 00:40:52,440
Speaker 2: that has been made by your port golarge. Should we

827
00:40:52,480 --> 00:40:55,560
Speaker 2: be talking about the dividends and the distributions. And this

828
00:40:55,760 --> 00:40:57,920
Speaker 2: is not on capital growth of the shares unless you

829
00:40:58,040 --> 00:41:01,160
Speaker 2: sell them. Okay, if you're investing for your kid for

830
00:41:01,239 --> 00:41:04,719
Speaker 2: the long term, I'm assuming you're not planning on selling them, right, Yeah,

831
00:41:05,120 --> 00:41:09,680
Speaker 2: And there are ways to minimize investment income, So based

832
00:41:09,719 --> 00:41:12,360
Speaker 2: on what you choose to invest in, if you focus

833
00:41:12,480 --> 00:41:16,759
Speaker 2: on like high growth, low yield ETFs, So like ETFs

834
00:41:16,800 --> 00:41:20,880
Speaker 2: that have really strong growth but don't pay lots of dividends,

835
00:41:21,160 --> 00:41:23,160
Speaker 2: which is exactly opposite to what I think I've told

836
00:41:23,200 --> 00:41:25,279
Speaker 2: you before. Like, if you go and listen to my

837
00:41:25,360 --> 00:41:28,560
Speaker 2: adults investing content and you're like, V, what's your favorite

838
00:41:28,600 --> 00:41:30,279
Speaker 2: type of share, I'm like, go, the one that makes

839
00:41:30,360 --> 00:41:32,880
Speaker 2: me money because it increases in income, and the one

840
00:41:32,920 --> 00:41:35,799
Speaker 2: that pays me money for owning it. Yeah, I love

841
00:41:35,840 --> 00:41:39,240
Speaker 2: a little double dip. I want to be making money totally.

842
00:41:39,440 --> 00:41:41,440
Speaker 2: Because I call me greedy, I don't even care. I

843
00:41:41,560 --> 00:41:43,759
Speaker 2: just want to get wealthy, and that's what most of

844
00:41:43,880 --> 00:41:48,960
Speaker 2: us want. But for a children's account, you might consider

845
00:41:49,600 --> 00:41:52,440
Speaker 2: an ETF that just has really strong growth but doesn't

846
00:41:52,440 --> 00:41:55,720
Speaker 2: pay a lot of dividends. So your kids investment worth

847
00:41:56,120 --> 00:41:59,439
Speaker 2: still growth, but their yearly income is going to be lower. Yeah,

848
00:41:59,880 --> 00:42:02,120
Speaker 2: a lot of like dividends being paid into their account.

849
00:42:02,760 --> 00:42:05,640
Speaker 2: And because capital gains tax only applies when you sell

850
00:42:05,680 --> 00:42:09,240
Speaker 2: an asset, essentially you're deferring the tax on that growth

851
00:42:09,600 --> 00:42:13,400
Speaker 2: until later, and ideally when later happens, your kid's an adult,

852
00:42:14,040 --> 00:42:16,560
Speaker 2: and it's not a sixty six percent tax rate, it's

853
00:42:16,800 --> 00:42:19,640
Speaker 2: their marginal tax rate of whatever they earn and like

854
00:42:19,719 --> 00:42:23,040
Speaker 2: they'll never experience that sixty six percent tax rate. Got you?

855
00:42:23,280 --> 00:42:26,759
Speaker 3: Okay, okay, So how do we actually pick something that

856
00:42:26,920 --> 00:42:32,560
Speaker 3: is high growth and low yield? Yield yield yield ye

857
00:42:32,640 --> 00:42:33,600
Speaker 3: old year old.

858
00:42:33,880 --> 00:42:36,600
Speaker 2: It's one of those things. It just comes back to research.

859
00:42:37,120 --> 00:42:39,400
Speaker 2: And I think that's a really good question because like

860
00:42:39,560 --> 00:42:43,520
Speaker 2: high growth low yield sounds complicated and also like something

861
00:42:43,600 --> 00:42:45,919
Speaker 2: that not lots of people might be like, oh, yeah,

862
00:42:45,920 --> 00:42:48,520
Speaker 2: I'd love just growth. Yeah, but that happens. That's a

863
00:42:48,600 --> 00:42:52,200
Speaker 2: valid strategy. It's actually really simple when you know what

864
00:42:52,360 --> 00:42:56,320
Speaker 2: to look for. So if you've decided v this strategy

865
00:42:56,480 --> 00:42:59,360
Speaker 2: is for me, that's exactly what I want to do.

866
00:42:59,640 --> 00:43:02,799
Speaker 2: What you're trying to find are investments that make most

867
00:43:02,840 --> 00:43:05,960
Speaker 2: of their return from the value of the company increasing,

868
00:43:06,719 --> 00:43:10,000
Speaker 2: so not because they pay out big dividends every few months.

869
00:43:10,920 --> 00:43:13,360
Speaker 2: So a really good example of a big company that

870
00:43:13,440 --> 00:43:15,680
Speaker 2: pays out dividends consistently. And I've used it on the

871
00:43:15,719 --> 00:43:20,760
Speaker 2: show before, Nab the Bank. I just use this because

872
00:43:20,760 --> 00:43:22,680
Speaker 2: I feel like I used to have lots of clients

873
00:43:22,719 --> 00:43:24,279
Speaker 2: that used it, and I know it like the back

874
00:43:24,320 --> 00:43:27,440
Speaker 2: of my hand. That is a bank share. And as

875
00:43:27,480 --> 00:43:30,160
Speaker 2: we know, bank shares are pretty stable in the market,

876
00:43:30,320 --> 00:43:33,160
Speaker 2: like they don't increase in value significantly over time. They do,

877
00:43:33,360 --> 00:43:35,720
Speaker 2: but they don't you know, have year on year growth

878
00:43:35,920 --> 00:43:38,680
Speaker 2: of the value of the asset. But they do pay

879
00:43:38,800 --> 00:43:41,879
Speaker 2: consistent dividends. And that's why lots of people when you're

880
00:43:41,880 --> 00:43:44,640
Speaker 2: talking about blue chip shares, they're picking things like the

881
00:43:44,920 --> 00:43:47,359
Speaker 2: HP and one of the big four banks and all

882
00:43:47,440 --> 00:43:50,080
Speaker 2: of that kind of like I would say, old school.

883
00:43:50,120 --> 00:43:53,000
Speaker 2: When you're thinking about investment, you think boring, old school,

884
00:43:53,000 --> 00:43:56,400
Speaker 2: your grandpa probably invested in it kind of shares. The

885
00:43:56,560 --> 00:44:00,319
Speaker 2: reason people like those is they're consistently paying dis ends.

886
00:44:00,320 --> 00:44:04,400
Speaker 2: They're not necessarily increasing in value astronomically, but they're slow

887
00:44:04,520 --> 00:44:08,239
Speaker 2: and steady, they're proven, they pay out dividends. We love

888
00:44:08,360 --> 00:44:11,359
Speaker 2: making money. That's probably not what you're looking at here,

889
00:44:11,760 --> 00:44:16,560
Speaker 2: got you. So, when you're researching ETFs or managed funds,

890
00:44:16,640 --> 00:44:18,160
Speaker 2: you're going to look for two things. You're going to

891
00:44:18,200 --> 00:44:20,600
Speaker 2: look at the distribution yield, and you're also going to

892
00:44:20,680 --> 00:44:23,120
Speaker 2: look at the growth focus that that ETF or that

893
00:44:23,280 --> 00:44:25,759
Speaker 2: managed fund has, and that's going to just be in

894
00:44:25,800 --> 00:44:29,120
Speaker 2: the funds description like it will say this fund is

895
00:44:29,320 --> 00:44:33,680
Speaker 2: focused on growth or this fund is focused on increasing

896
00:44:33,800 --> 00:44:37,880
Speaker 2: sharehold dividend distribution. You go cool, So it's focused on

897
00:44:37,960 --> 00:44:40,759
Speaker 2: paying me, or it's focused on increasing how much that

898
00:44:40,880 --> 00:44:43,640
Speaker 2: company is worth. Now because they are high growth, they

899
00:44:43,840 --> 00:44:46,279
Speaker 2: probably could be more volatile, so we need to be

900
00:44:46,360 --> 00:44:50,560
Speaker 2: careful but more risk, but you've got more time. Kids

901
00:44:50,640 --> 00:44:52,640
Speaker 2: have time on their side to ride out these waves

902
00:44:52,680 --> 00:44:55,319
Speaker 2: in the market. Yeah, so like that's kind of a win.

903
00:44:55,719 --> 00:44:58,440
Speaker 2: And if the distribution yield, just to give you some numbers,

904
00:44:58,560 --> 00:45:02,040
Speaker 2: is around one to one zero point five percent, I'd

905
00:45:02,080 --> 00:45:06,080
Speaker 2: say that's generally low. Gotcha. Those are often like global

906
00:45:06,320 --> 00:45:09,440
Speaker 2: or US ETFs as they usually like to like those

907
00:45:09,480 --> 00:45:13,080
Speaker 2: companies usually like to reinvest the profit of the company

908
00:45:13,200 --> 00:45:16,080
Speaker 2: back into their growth rather than giving them to shareholders.

909
00:45:16,360 --> 00:45:16,560
Speaker 4: Sure.

910
00:45:17,080 --> 00:45:19,520
Speaker 2: Sure, so you're probably looking at newer companies as well,

911
00:45:19,560 --> 00:45:20,759
Speaker 2: whereas old tried true.

912
00:45:20,800 --> 00:45:21,400
Speaker 3: They're like, well, we.

913
00:45:21,440 --> 00:45:23,960
Speaker 2: Don't really need any more buildings, we don't need to

914
00:45:24,040 --> 00:45:26,120
Speaker 2: increase how many stuff we have, we don't need to

915
00:45:26,160 --> 00:45:29,120
Speaker 2: develop any new products, like we can just give it

916
00:45:29,160 --> 00:45:34,680
Speaker 2: to the shareholders. That's usually not their focus. Australian shares

917
00:45:34,760 --> 00:45:38,279
Speaker 2: and ETFs tend to have higher yields, so you're looking

918
00:45:38,360 --> 00:45:41,240
Speaker 2: at on average, I'd say between three and four percent.

919
00:45:41,680 --> 00:45:44,600
Speaker 2: Because Australian companies they like to pay out to their shareholders.

920
00:45:44,840 --> 00:45:45,960
Speaker 2: I love to give your dividence.

921
00:45:46,360 --> 00:45:49,200
Speaker 3: Why is that the case? Why do they have what

922
00:45:49,320 --> 00:45:50,919
Speaker 3: are Australian chairs of a higher yield?

923
00:45:51,160 --> 00:45:54,359
Speaker 2: Oh we're just so generous as a nation. No, that's

924
00:45:54,440 --> 00:45:56,319
Speaker 2: not necessarily true. It has to do with how our

925
00:45:56,440 --> 00:45:59,560
Speaker 2: tax system is set up in comparison to how international

926
00:45:59,640 --> 00:46:02,800
Speaker 2: tax is stems are set up. And companies are usually

927
00:46:03,000 --> 00:46:07,719
Speaker 2: incentivized to pay out or distribute dividends to investors. And

928
00:46:07,840 --> 00:46:09,960
Speaker 2: we've talked about it before, but here in Australia we

929
00:46:10,040 --> 00:46:13,800
Speaker 2: have something called franking credits and usually their most effective

930
00:46:13,840 --> 00:46:17,840
Speaker 2: inside the uernuation environment. But when an Australian company earns

931
00:46:17,880 --> 00:46:22,080
Speaker 2: a profit, it pays company tax. Any profit my business

932
00:46:22,120 --> 00:46:25,239
Speaker 2: has earned beck and any profit any ASX big big

933
00:46:25,360 --> 00:46:29,799
Speaker 2: dog companies earn, we pay thirty percent. Okay, so pay

934
00:46:29,880 --> 00:46:32,640
Speaker 2: thirty percent tax. And after that it can pay some

935
00:46:32,800 --> 00:46:37,080
Speaker 2: of those profits out to shareholders as dividends to stop

936
00:46:37,120 --> 00:46:39,600
Speaker 2: that money then being taxed twice, because like if I've

937
00:46:39,680 --> 00:46:41,520
Speaker 2: paid the tax as a business owner and then I

938
00:46:41,800 --> 00:46:44,239
Speaker 2: distribute it to a shareholder and it's already had tax

939
00:46:44,280 --> 00:46:47,279
Speaker 2: paid on it. The company attaches and I like to

940
00:46:47,360 --> 00:46:49,600
Speaker 2: call it an IOU. It's like a little flag on

941
00:46:49,719 --> 00:46:51,400
Speaker 2: the money when it comes through to you get your

942
00:46:51,440 --> 00:46:54,800
Speaker 2: IOU thing and it says, hey, this is a franking credit,

943
00:46:55,239 --> 00:46:57,400
Speaker 2: and that's the little post it note that's sitting on

944
00:46:57,440 --> 00:47:00,720
Speaker 2: your money to let the ato no tax has already

945
00:47:00,760 --> 00:47:03,120
Speaker 2: been paid on this. So when you get it and

946
00:47:03,200 --> 00:47:04,960
Speaker 2: you submit it to the ater and go, hey, cool,

947
00:47:05,000 --> 00:47:06,800
Speaker 2: so I got this dividend, but thirty percent of the

948
00:47:06,840 --> 00:47:08,759
Speaker 2: tax has already been paid on it, you actually get

949
00:47:08,800 --> 00:47:11,960
Speaker 2: a tax credit as a shareholder showing that the tax

950
00:47:12,000 --> 00:47:14,640
Speaker 2: has already been paid at a company level. So if

951
00:47:14,719 --> 00:47:17,000
Speaker 2: your tax rate is thirty percent or lower, you don't

952
00:47:17,040 --> 00:47:19,439
Speaker 2: actually have to pay any more tax on the They're

953
00:47:19,520 --> 00:47:21,520
Speaker 2: like that all comes out in the wash, no worries back.

954
00:47:21,520 --> 00:47:24,640
Speaker 2: You earn thirty percent tax and that company that you

955
00:47:24,920 --> 00:47:27,560
Speaker 2: owned also paid thirty percent tax. But if your tax

956
00:47:27,640 --> 00:47:30,400
Speaker 2: rate is higher, you just pay the difference. So for

957
00:47:30,600 --> 00:47:32,839
Speaker 2: most of us, given most of us in the shees

958
00:47:32,840 --> 00:47:35,080
Speaker 2: on the money community are on either a thirty percent

959
00:47:35,200 --> 00:47:37,440
Speaker 2: or a thirty seven percent tax rate, that's a good

960
00:47:37,480 --> 00:47:39,400
Speaker 2: deal because even if you're on thirty percent, you end

961
00:47:39,480 --> 00:47:42,239
Speaker 2: up only paying seven percent tax. That's pretty good, right,

962
00:47:42,360 --> 00:47:44,880
Speaker 2: So those like little franking credits, it sounds dumb, like

963
00:47:44,920 --> 00:47:48,400
Speaker 2: why don't you just call it an IOU tax? Anyway,

964
00:47:49,239 --> 00:47:52,400
Speaker 2: that's what makes sense in my head. Yeah, franking credit complicated,

965
00:47:52,440 --> 00:47:54,880
Speaker 2: it's simple. Yeah, totally mean. Like if I said to

966
00:47:54,960 --> 00:47:56,920
Speaker 2: somebody who'd never heard of it, franking credit, you'd be like,

967
00:47:56,960 --> 00:47:57,560
Speaker 2: who's frank?

968
00:47:57,760 --> 00:47:59,120
Speaker 3: Yeah, I don't even know what to stard.

969
00:47:59,200 --> 00:47:59,799
Speaker 2: I owe him credit.

970
00:48:00,440 --> 00:48:00,520
Speaker 3: Ye.

971
00:48:01,480 --> 00:48:04,239
Speaker 2: But with the higher tax rates for kids, going back

972
00:48:04,280 --> 00:48:06,920
Speaker 2: to this, even if your dividends are franked, if your

973
00:48:07,000 --> 00:48:09,320
Speaker 2: tax rate is sixty six percent, you actually still have

974
00:48:09,400 --> 00:48:12,480
Speaker 2: to pay the difference of thirty six percent. It's still

975
00:48:12,560 --> 00:48:13,880
Speaker 2: not the end of the world. But we need to

976
00:48:13,920 --> 00:48:17,040
Speaker 2: be educated. Yes, And because the system is relatively new

977
00:48:17,239 --> 00:48:22,040
Speaker 2: in Australia, like literally, in comparison to most countries, we

978
00:48:22,120 --> 00:48:25,759
Speaker 2: are basically just over two hundred years old. Remember there's

979
00:48:25,800 --> 00:48:28,440
Speaker 2: a whole conversation in that we're not two hundred years old.

980
00:48:28,440 --> 00:48:31,759
Speaker 2: We are thousands and thousands of years old. But colonization

981
00:48:31,880 --> 00:48:36,480
Speaker 2: happened two hundred years ago, right. Australia encourages investors to

982
00:48:36,520 --> 00:48:40,520
Speaker 2: really focus on homegrown companies and yields often higher here. Yeah,

983
00:48:40,600 --> 00:48:43,360
Speaker 2: because we are our newer economy, got you, got you

984
00:48:44,760 --> 00:48:48,960
Speaker 2: comganization crazy, I mean, let's not even you know how

985
00:48:48,960 --> 00:48:49,600
Speaker 2: I feel about that.

986
00:48:50,000 --> 00:48:50,759
Speaker 4: I know, I know.

987
00:48:51,400 --> 00:48:53,440
Speaker 2: Okay, So a tax.

988
00:48:53,280 --> 00:48:59,280
Speaker 3: System basically rewards assie investors. Yeah, we're rewarded for sticking local.

989
00:48:59,440 --> 00:49:02,040
Speaker 3: I see O God, they love it, they love it.

990
00:49:02,800 --> 00:49:05,640
Speaker 3: What happens when we look at something like a US ETF.

991
00:49:06,040 --> 00:49:08,800
Speaker 2: Okay, so if we look at I guess one of

992
00:49:08,880 --> 00:49:13,200
Speaker 2: the most popular ETFs IVV, that's I shares core s

993
00:49:13,239 --> 00:49:14,960
Speaker 2: and P five hundred ETF, you can buy it on

994
00:49:15,000 --> 00:49:16,960
Speaker 2: the ASX. So you can go and buy it as

995
00:49:17,000 --> 00:49:19,840
Speaker 2: an Australian investor and it gives you international exposure. You

996
00:49:19,880 --> 00:49:21,800
Speaker 2: don't have to do anything complicated. You can literally just

997
00:49:21,840 --> 00:49:23,839
Speaker 2: buy it on your shares thes app. I'm not saying

998
00:49:23,880 --> 00:49:25,879
Speaker 2: you should invest in this, just to be very clear,

999
00:49:26,120 --> 00:49:28,520
Speaker 2: just because I talk about a share, I am sharing it.

1000
00:49:28,800 --> 00:49:31,800
Speaker 2: And I have picked this investment as an example just

1001
00:49:31,840 --> 00:49:35,000
Speaker 2: because it's popular. Yeah, So you do your research, you

1002
00:49:35,120 --> 00:49:37,600
Speaker 2: do everything. But I've picked it because it is literally

1003
00:49:37,640 --> 00:49:41,959
Speaker 2: one of the most popular international ETFs, and I feel

1004
00:49:41,960 --> 00:49:44,040
Speaker 2: like I have to caveat this past performance is not

1005
00:49:44,080 --> 00:49:47,080
Speaker 2: a reliable predictory future performance back. But for the purposes

1006
00:49:47,120 --> 00:49:49,160
Speaker 2: of this I am using the averages of this fund

1007
00:49:49,200 --> 00:49:52,440
Speaker 2: over the last twenty years. Okay, anyway, that was a mouthful.

1008
00:49:52,760 --> 00:49:57,960
Speaker 2: The average growth of IVV is about nine percent over

1009
00:49:58,000 --> 00:50:01,360
Speaker 2: the last twenty years, and that includes capital growth and

1010
00:50:01,640 --> 00:50:05,080
Speaker 2: some dividends that have been reinvested. If you look at

1011
00:50:05,239 --> 00:50:08,640
Speaker 2: their stats sheet, which if you just google the ETF,

1012
00:50:08,719 --> 00:50:10,400
Speaker 2: it'll be like one of the first links that you

1013
00:50:10,480 --> 00:50:13,120
Speaker 2: can click, the average yield is one point two percent,

1014
00:50:14,000 --> 00:50:17,520
Speaker 2: which includes dividends and any other income it generates. And

1015
00:50:17,600 --> 00:50:19,640
Speaker 2: if we go back to what I said before, I

1016
00:50:19,800 --> 00:50:23,200
Speaker 2: think that's low. So if we started investing for a

1017
00:50:23,320 --> 00:50:25,959
Speaker 2: kid one hundred bucks when they're born and then invest

1018
00:50:26,000 --> 00:50:28,520
Speaker 2: one hundred dollars a month until their eighteenth birthday, I'm

1019
00:50:28,520 --> 00:50:29,840
Speaker 2: not saying you have to do that. That's just the

1020
00:50:29,920 --> 00:50:32,600
Speaker 2: example I've decided to use. If we just use this

1021
00:50:32,680 --> 00:50:34,919
Speaker 2: as a really solid example, and we use that growth

1022
00:50:35,000 --> 00:50:38,040
Speaker 2: and that yield average and pay tax out of the

1023
00:50:38,120 --> 00:50:42,200
Speaker 2: dividends and reinvest the rest, the total that would have

1024
00:50:42,280 --> 00:50:44,960
Speaker 2: been invested over that period of time is twenty one thousand,

1025
00:50:45,080 --> 00:50:49,480
Speaker 2: six hundred dollars. The portfolio though, over that period of

1026
00:50:49,600 --> 00:50:53,000
Speaker 2: time would be worth fifty one thousand, six hundred and

1027
00:50:53,200 --> 00:50:57,360
Speaker 2: fifty four dollars, okay, which is a total growth of

1028
00:50:57,520 --> 00:51:00,600
Speaker 2: thirty thousand and fifty four dollars. And you might but like,

1029
00:51:00,719 --> 00:51:02,839
Speaker 2: we're talking about tax and you you said, it's really

1030
00:51:02,920 --> 00:51:05,400
Speaker 2: high tax rate. So the yield for this example that

1031
00:51:05,440 --> 00:51:09,200
Speaker 2: I've just made up, backed by the money Smart Compound

1032
00:51:09,320 --> 00:51:12,839
Speaker 2: interest calculator and the ATO resources that are available free

1033
00:51:12,880 --> 00:51:15,880
Speaker 2: for you to use, it doesn't actually hit over the

1034
00:51:15,920 --> 00:51:18,839
Speaker 2: four hundred and sixteen dollars tax free threshold until they're

1035
00:51:18,920 --> 00:51:22,840
Speaker 2: fifteen years old. Okay. Sorry, that's fifteen years in the

1036
00:51:22,920 --> 00:51:25,000
Speaker 2: market where you haven't gone over. We're not doing the

1037
00:51:25,040 --> 00:51:29,440
Speaker 2: sixty six percent. And even then, once they hit fifteen,

1038
00:51:29,880 --> 00:51:33,239
Speaker 2: it's only four hundred and thirty four dollars for that

1039
00:51:33,400 --> 00:51:37,000
Speaker 2: first year, yep, which means your child when they turn

1040
00:51:37,120 --> 00:51:40,840
Speaker 2: fifteen is only paying tax on eighteen dollars. Oh tuo okay,

1041
00:51:41,120 --> 00:51:44,000
Speaker 2: And sixty six percent of eighteen dollars is eleven dollars

1042
00:51:44,080 --> 00:51:48,000
Speaker 2: and ninety three cents. Ah ah ah. That sixty six

1043
00:51:48,120 --> 00:51:50,640
Speaker 2: percent tax rate scares away lots of parents. And I've

1044
00:51:50,760 --> 00:51:54,719
Speaker 2: just told you for the first fifteen years, yeah, you

1045
00:51:54,840 --> 00:51:57,880
Speaker 2: don't meet the threshold. Yeah, you know, after that you

1046
00:51:57,960 --> 00:52:01,440
Speaker 2: pay eleven dollars a ninety three cent crazy. So then

1047
00:52:01,520 --> 00:52:04,200
Speaker 2: if we extrapolate that out, because obviously year on year

1048
00:52:04,320 --> 00:52:06,840
Speaker 2: your portfolio is now worth more, you're going to be

1049
00:52:06,880 --> 00:52:09,120
Speaker 2: paying tax every year after the age of fifteen. Ah

1050
00:52:09,200 --> 00:52:12,760
Speaker 2: huh until they turn eighteen, which is where that sixty

1051
00:52:12,800 --> 00:52:14,680
Speaker 2: six percent tax rate will drop off and it will

1052
00:52:14,719 --> 00:52:17,200
Speaker 2: go to their normal tax rate. They pay on that

1053
00:52:17,320 --> 00:52:20,400
Speaker 2: portfolio a total amount of tax of two hundred and

1054
00:52:20,400 --> 00:52:22,880
Speaker 2: seventy seven dollars. Okay, not bad, not bad, not bad. Oh,

1055
00:52:22,960 --> 00:52:25,440
Speaker 2: that's actually a really good deal from my perspective. So

1056
00:52:25,880 --> 00:52:29,279
Speaker 2: a two hundred and seventy seven dollars tax bill on

1057
00:52:29,680 --> 00:52:33,319
Speaker 2: thirty thousand dollars of returns back, what do you think

1058
00:52:33,360 --> 00:52:36,040
Speaker 2: about that? That's pretty good. I've put together this example

1059
00:52:36,120 --> 00:52:38,360
Speaker 2: because so many parents are like, oh my god, I

1060
00:52:38,360 --> 00:52:41,600
Speaker 2: wouldn't never invest for my kids because that sixty six

1061
00:52:41,640 --> 00:52:44,800
Speaker 2: percent tax rate is astronomical and like it's not worth it.

1062
00:52:45,640 --> 00:52:48,399
Speaker 2: But you need to do the maths, Like sixty six

1063
00:52:48,480 --> 00:52:53,160
Speaker 2: percent sounds honestly terrifying. I don't like that at all either. Yeah,

1064
00:52:53,200 --> 00:52:55,520
Speaker 2: but you're paying sixty six percent on the money that

1065
00:52:55,640 --> 00:52:58,640
Speaker 2: your money made. Yeah, and once your money's making more

1066
00:52:58,680 --> 00:53:02,920
Speaker 2: than four hundred and sixteen dollar over that period of time, sorry,

1067
00:53:02,960 --> 00:53:04,600
Speaker 2: most of us aren't even going to be able to

1068
00:53:04,680 --> 00:53:06,520
Speaker 2: invest for our kids one hundred dollars a month. And

1069
00:53:06,640 --> 00:53:08,040
Speaker 2: that's what we used as to the example.

1070
00:53:08,360 --> 00:53:10,719
Speaker 3: Let's be real, so they might not even happen in

1071
00:53:10,800 --> 00:53:13,839
Speaker 3: their first eighteen years of life exactly. So I guess

1072
00:53:13,880 --> 00:53:15,799
Speaker 3: like with the right strategy, you can minimize the tax

1073
00:53:15,840 --> 00:53:17,560
Speaker 3: when you're investing in your child's day.

1074
00:53:17,680 --> 00:53:20,000
Speaker 2: Yeah, exactly, And that's what I'm trying to illustrate with

1075
00:53:20,080 --> 00:53:22,759
Speaker 2: a really good example. And then you can transfer the

1076
00:53:22,840 --> 00:53:25,720
Speaker 2: shares into their name, like you can basically remove yourself

1077
00:53:25,760 --> 00:53:27,920
Speaker 2: as to trustee because they were always the legal guardian

1078
00:53:28,080 --> 00:53:30,440
Speaker 2: or they were always the legal owner of that account

1079
00:53:30,760 --> 00:53:33,560
Speaker 2: without triggering a CGT event, which I would say is

1080
00:53:33,560 --> 00:53:36,080
Speaker 2: a win as well. Yeah, like money win because like

1081
00:53:36,160 --> 00:53:38,640
Speaker 2: we've minimized tax, but then money whin there's no CGT

1082
00:53:38,800 --> 00:53:41,640
Speaker 2: event when it becomes your kids. And I would say

1083
00:53:42,239 --> 00:53:44,160
Speaker 2: the one thing here that we need to remember is

1084
00:53:44,200 --> 00:53:47,359
Speaker 2: that investing for kids is not about making the millionaires. Yeah,

1085
00:53:47,400 --> 00:53:49,919
Speaker 2: that would be very cool and like, if you set

1086
00:53:49,960 --> 00:53:52,600
Speaker 2: them up with the right financial literacy, they can probably

1087
00:53:52,640 --> 00:53:55,399
Speaker 2: make themselves millionaires. Really, and like, I don't know, there's

1088
00:53:55,640 --> 00:53:58,800
Speaker 2: probably a whole conversation in another podcast in this, but like,

1089
00:53:59,120 --> 00:54:01,759
Speaker 2: I also don't want want to serve money to my

1090
00:54:01,920 --> 00:54:04,680
Speaker 2: children on a silver platter and be like, oh, you

1091
00:54:04,880 --> 00:54:07,279
Speaker 2: didn't work for this, nor worries like I want them

1092
00:54:07,320 --> 00:54:08,880
Speaker 2: to work for this. I want them to have that

1093
00:54:09,040 --> 00:54:12,560
Speaker 2: work ethic anyway. For me, it's about giving them a

1094
00:54:12,719 --> 00:54:16,600
Speaker 2: head start that you probably didn't get, or giving them

1095
00:54:16,640 --> 00:54:19,480
Speaker 2: the headstart that you believe they deserve in both money

1096
00:54:19,719 --> 00:54:24,000
Speaker 2: and financial literacy. And that to me is so important

1097
00:54:24,040 --> 00:54:26,560
Speaker 2: because the biggest things kids have on their side is time.

1098
00:54:27,320 --> 00:54:30,160
Speaker 2: So true. So I think it's a really good place

1099
00:54:30,200 --> 00:54:32,400
Speaker 2: to leave it because I'm ready to go on with

1100
00:54:32,480 --> 00:54:33,240
Speaker 2: another example.

1101
00:54:33,640 --> 00:54:36,480
Speaker 3: So okay, well before that happens, if you want to

1102
00:54:36,520 --> 00:54:39,279
Speaker 3: know more about Cheersy's new kids investing account, we'll put

1103
00:54:39,320 --> 00:54:40,000
Speaker 3: it in the show notes.

1104
00:54:40,120 --> 00:54:43,040
Speaker 2: Absolutely honestly, I'm a fan, and as much as I've

1105
00:54:43,040 --> 00:54:45,440
Speaker 2: told you before my investing strategy, I'm kind of like

1106
00:54:45,840 --> 00:54:48,400
Speaker 2: the app is really shiny, and I think Harvey needs it.

1107
00:54:49,239 --> 00:54:52,200
Speaker 2: So you just watch me go, and honestly, if this

1108
00:54:52,360 --> 00:54:54,600
Speaker 2: episode has made you feel a little bit more confident

1109
00:54:54,680 --> 00:54:57,560
Speaker 2: for your kids financial future, please don't forget to hit

1110
00:54:57,600 --> 00:55:00,480
Speaker 2: subscribe because we've got so much more content to help

1111
00:55:00,520 --> 00:55:02,880
Speaker 2: you invest confidently coming your way this year, and we

1112
00:55:02,960 --> 00:55:05,600
Speaker 2: will see you guys on Friday. By go bye.

1113
00:55:12,000 --> 00:55:14,560
Speaker 5: The advice shared on She's on the Money is general

1114
00:55:14,640 --> 00:55:18,439
Speaker 5: in nature and does not consider your individual circumstances. She's

1115
00:55:18,520 --> 00:55:21,920
Speaker 5: on the Money exists purely for educational purposes and should

1116
00:55:22,000 --> 00:55:25,160
Speaker 5: not be relied upon to make an investment or financial decision.

1117
00:55:25,560 --> 00:55:28,000
Speaker 5: If you do choose to buy a financial product, read

1118
00:55:28,040 --> 00:55:31,280
Speaker 5: the PDS TMD and obtain appropriate financial.

1119
00:55:30,960 --> 00:55:32,680
Speaker 2: Advice tailored towards your needs.

1120
00:55:33,120 --> 00:55:37,000
Speaker 5: Victoria Divine and She's on the Money are authorized representatives

1121
00:55:37,120 --> 00:55:37,520
Speaker 5: of Money.

1122
00:55:37,560 --> 00:55:39,480
Speaker 2: Sheirper Pty Ltd.

1123
00:55:39,400 --> 00:55:42,839
Speaker 5: ABN three two one six four nine two seven seven

1124
00:55:43,000 --> 00:55:46,439
Speaker 5: zero eight AFSL four five one two eight nine