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Speaker 1: Hello.

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

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Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we

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

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

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

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

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

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

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Speaker 2: and lasting impact for tomorrow.

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Speaker 1: Let's get into it.

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

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Speaker 4: Hello, and welcome to She's on the Money, the podcast

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Speaker 4: for millennials who won financial freedom. My name is Beckside

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Speaker 4: and with me as always is Victoria Divine.

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Speaker 5: Hello Bear, Hello VD.

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Speaker 1: I'm excited for this one, but I feel like there's

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Speaker 1: a little bit of pressure there is.

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Speaker 5: I'm gonna say a little bit of a challenge.

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Speaker 4: Yeah all right, and I don't know if you offer it,

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Speaker 4: but we're gonna try, well, me being the listener and

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Speaker 4: you being the actual person with knowledge, try and explain

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Speaker 4: diversification in thirty minutes.

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Speaker 1: Yeah, because that sounded like a good podcast title, and

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Speaker 1: we picked it before we actually recorded this episode. So

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Speaker 1: now we have to kind of like adhere to that.

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Speaker 4: We literally have to what if we fail? Do we

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Speaker 4: just cut bits out if we fail?

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Speaker 1: Yeah?

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Speaker 5: It actually sucks to be the listener.

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Speaker 1: Also, low key funny if you like clicked on the

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Speaker 1: episode diversification in thirty minutes and then you see it's

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Speaker 1: like a forty two minute episode exactly.

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Speaker 5: It's gonna be very hard time. Let's get into it then,

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Speaker 5: so let's try.

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Speaker 4: Okay, the producers popped as Stopwatch on fantastic.

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Speaker 1: Let's go, no pressure, all right, So just.

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Speaker 4: Really quickly after the break, we will give you guys

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Speaker 4: four tips on how to diversify your portfolio and how

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Speaker 4: to keep it that way. But first VI, what is diversification.

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Speaker 1: I love talking about diversification and you've heard me talk

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Speaker 1: about it before, and it's when I say, you wouldn't

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Speaker 1: want to put all your eggs in one basket, right,

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Speaker 1: And you wouldn't want to do that, y beck, because

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Speaker 1: if you put all your eggs in one basket and trip,

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Speaker 1: you're going to break all of your eggs. Whereas if

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Speaker 1: we put them in multiple baskets, and you're just carrying

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Speaker 1: one of your baskets because we have lots of little

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Speaker 1: loads to do, and you trip in one brakes, well,

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Speaker 1: all of the other ones they're okay for now, unless

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Speaker 1: you're like real clumsy and you tripped every single time,

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Speaker 1: which case I really can't help you. But diversification is

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Speaker 1: an investment strategy that essentially lowers your portfolio's risk and

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Speaker 1: then helps you gain more stable returns because obviously, if

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Speaker 1: you have your eggs in lots of different baskets, that's

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Speaker 1: an analogy. We're not actually buying eggs. Beck If we

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Speaker 1: have lots of different investments, if one of them performs

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Speaker 1: not so well, something else else is going to perform well,

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Speaker 1: and then your average portfolio return becomes a bit more

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Speaker 1: average instead of seeing the return of just one company.

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Speaker 1: And you often see this with things like ETFs. Right, So,

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Speaker 1: an ETF is an exchange traded fund. We have talked

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Speaker 1: about these things before. I like them because they give

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Speaker 1: you instant diversification because they're essentially a really big basket

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Speaker 1: of lots of different types of shares. But if you

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Speaker 1: deep dive into an ETF and have a look at

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Speaker 1: all their holdings. Most ETFs hold fifty plus shares because

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Speaker 1: they like to have a lot. I mean a lot

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Speaker 1: of ETFs might be the top two hundred companies on

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Speaker 1: the Australian share market. But you will look at it

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Speaker 1: and some companies have you know, returned to really good

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Speaker 1: looking forty two percent, some companies have been like negative

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Speaker 1: fourteen percent, and it all comes out to be about

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Speaker 1: an average of the market, which is what we're aiming

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Speaker 1: for because to be honest, when we're investing, I just

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Speaker 1: want you to have consistent, reliable returns over the long

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Speaker 1: term to build wealth because unfortunately, get rich quick schemes

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Speaker 1: don't work and they're kind of irresponsible. Like when we're

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Speaker 1: investing and we're investing properly, we're in it for the

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Speaker 1: long haul and it ultimately should be a little bit boring.

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Speaker 1: But when you dive in, diversification is a really important

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Speaker 1: point because it kind of makes things more stable. Does

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Speaker 1: that make sense?

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Speaker 4: That does make sense, But can you kind of explain

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Speaker 4: more to me, like how that actually lowers risk?

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Speaker 1: Yeah, So obviously again with the different baskets having different

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Speaker 1: eggs in them, diversification is going to lower your risk

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Speaker 1: because different asset classes perform differently at different times, so

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Speaker 1: you're not just looking at oh, well, maybe if by

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Speaker 1: chance this performs really well, and if by chance something

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Speaker 1: doesn't perform well, will be okay. It's actually more because

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Speaker 1: we know that different asset classes perform differently during different

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Speaker 1: periods of time. So the best example I can think

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Speaker 1: of off the top of my head is during Covidi

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Speaker 1: paper sales did really well. Right, So during times of

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Speaker 1: economic turmoil, we will see staples do really well, so supermarkets,

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Speaker 1: you know, thrive. All of those things that are essentially

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Speaker 1: human essentials tend to do a little bit better than

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Speaker 1: things that are more luxurious.

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Speaker 3: Right.

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Speaker 1: So I think it's important to make sure that when

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Speaker 1: you're picking your portfolio, you're not just picking it because

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Speaker 1: you're like, oh, I need to diversify, because if one

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Speaker 1: doesn't do well, the other well, and that's just luck

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Speaker 1: of the draw. It's not necessarily luck of the draw.

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Speaker 1: It's picking different asset classes. Look, if the market's not

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Speaker 1: so good, beck, we know there's a few tried and

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Speaker 1: true assets in your portfolio that are going to stand

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Speaker 1: the test of time and do well. But also during

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Speaker 1: times of economic growth, you're going to see other asset

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Speaker 1: classes do well like infrastructure or you might see more

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Speaker 1: roads being built, or you might see you know, more

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Speaker 1: buildings being built, or even you know, luxuries. So you know,

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Speaker 1: if you're going to invest in LVMH, which owns a

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Speaker 1: lot of the luxury brands around the world, obviously they're

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Speaker 1: going to do really well during booming times because everyone's

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Speaker 1: buying their wife a handbag, you know, gotcha. So we

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Speaker 1: want to make sure that we're not just diversified by

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Speaker 1: having lots of assets, we're diversified by having them across

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Speaker 1: lots of different classes. Does that make sense?

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Speaker 4: Yeah, I think it's starting to sink in for me

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Speaker 4: and hopefully for listeners. But if you have to backtrack

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Speaker 4: a few times, I don't blame you so ver you

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Speaker 4: mention asset classes before and we have talked about them

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Speaker 4: on the show. But can we get a quick little refresher.

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Speaker 1: Yes, so we have discussed it before, so definitely look

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Speaker 1: for it in the podcast feed if you haven't heard

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Speaker 1: this episode. But here in Australia there are four main

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Speaker 1: types of asset classes. You've got cash, you've got bonds,

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Speaker 1: you've got property, and then you've got shares. Obviously I

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Speaker 1: love shares, and when we're talking about a diversified investment portfolio,

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Speaker 1: we're more talking about shares, bonds, and cash and the

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Speaker 1: mix of those things. So the best example is your supranuation, right.

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Speaker 1: Most of us who have been employed are going to

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Speaker 1: have a subranuation account, right, and you would have your

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Speaker 1: investment portfolio. And your investment portfolio is not just made

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Speaker 1: up of picking a diversified amount of shares. It's also

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Speaker 1: got some cash in it to bring some stability. You'll

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Speaker 1: have access to bonds. So a bond is like a

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Speaker 1: government IOU is my favorite way to explain it. You'll

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Speaker 1: have one of those because during times when interest rates fall,

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Speaker 1: bond prices actually rise because they're seen to be a

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Speaker 1: little bit more of a stable investment. And when shares

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Speaker 1: are doing poorly, bonds usually perform pretty well. So again,

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Speaker 1: it brings a bit more stability to your portfolio.

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Speaker 4: Right.

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Speaker 1: It's kind of like having a seesaw and you're putting,

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Speaker 1: you know, some shares on one end and you're like, oh,

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Speaker 1: I need to put something else on the other end

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Speaker 1: to make sure that this sits evenly, right, Right, So

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Speaker 1: this is what diversification is going to do. It's going

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Speaker 1: to make the seesawce sit evenly. But you're doing this

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Speaker 1: not just for your overall share portfolio, which could have cash,

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Speaker 1: it could have fixed interest assets, it could have property,

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Speaker 1: it could have shares. You're doing this inside your share

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Speaker 1: portfolio as well, because essentially we just want to spread

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Speaker 1: out our money in a way that means it's working

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Speaker 1: as hard as we do for it, but also it's

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Speaker 1: at less risk, and less risk means more assets.

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Speaker 5: Okay, that is a lot of information to digest.

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Speaker 1: Just a little bit. I mean, there were only four

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Speaker 1: asset classes we discussed. What were they? Beck cashons?

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Speaker 4: Oh yeah, bonds, bonds, cash, Yeah, genuinely, I've forgotten property, property,

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Speaker 4: and shares shares.

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Speaker 5: Okay, thank you so much, You've got it.

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Speaker 1: I feel like I talk so quickly that sometimes I

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Speaker 1: forget that other people don't keep up. But also you've

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Speaker 1: got to remember this is like a second language to me.

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Speaker 1: Lots of people speak second languages and I do not,

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Speaker 1: But finance is a language I speak, so it makes

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Speaker 1: sense to me. And if it doesn't make sense to you,

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Speaker 1: that kind of makes sense because you didn't go to

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Speaker 1: school and study any of this, which is why I

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Speaker 1: exist totally.

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Speaker 4: And that's totally okay because here I am being on

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Speaker 4: the show for like more than a year now and

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Speaker 4: still struggling.

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Speaker 1: So you are, Oh, thank you, You're doing so well. No,

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Speaker 1: I think it's good. Let's go to a really quick break.

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Speaker 4: Let's take some time to digest it and then have

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Speaker 4: a coffee.

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Speaker 1: And on the other side, we have another fifteen minutes

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Speaker 1: to talk more about diversification.

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Speaker 5: Oh okay, we're doing well. Welcome back everyone.

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Speaker 4: Since there is a time limit on this show, let's

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Speaker 4: quickly dive back into it. Today we are learning about diversification.

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Speaker 4: V is diversification just a matter of mixing up the

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Speaker 4: types of things I'm investing in, for example, like it

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Speaker 4: blue chip health, et cetera.

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Speaker 5: How do you diversify? Is what I'm trying to say,

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Speaker 5: you do?

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Speaker 1: And I like to think of having a share portfolio

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Speaker 1: like having a smoothie, right, Like it's maybe a little

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Speaker 1: bit of a niche example, but like you don't just

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Speaker 1: have a smoothie and you just have milk in it, right,

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Speaker 1: Like you could have a beenana smoothie, or you could

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Speaker 1: meet someone who hates bananas and doesn't want banana in

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Speaker 1: their smoothie. And wants a blueberry smoothie, right, or they

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Speaker 1: could be an absolute health freak and they've got like

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Speaker 1: LCA and G seeds and all the stuff that gets

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Speaker 1: stuck in your teeth. It's not for a freebody, right.

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Speaker 1: So you're picking a smoothie with all the ingredients that

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Speaker 1: you want, but you can't have a smoothie with just

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Speaker 1: one ingredient otherwise it's not smoothie, right, And that's the

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Speaker 1: way we should be seeing our investment portfolio. It is

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Speaker 1: not an investment portfolio or a proper one if you

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Speaker 1: only have one asset class in it, because it'd be

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Speaker 1: pretty trash smoothie, right, like no one's gonna want to

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Speaker 1: drink it, not really good. So essentially beg to diversify, well,

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Speaker 1: you're gonna need to invest across lots of different asset classes.

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Speaker 1: We went through them before the break. We had cash,

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Speaker 1: fixed interest, property and shares. And while those four asset

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Speaker 1: classes are the four that are recognized here in Australia,

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Speaker 1: we're just going to talk now about how to diversify

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Speaker 1: inside your share portfolio. Because most of us Rudy have

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Speaker 1: cash and understand that well, bonds they're more of a

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Speaker 1: fixed interest asset class. They're not too complicated, but they're

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Speaker 1: also not as popular property. I think we all understand

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Speaker 1: the Great Australian dream. You know what that means. But

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Speaker 1: did you know you can buy shares that are giving

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Speaker 1: you exposure to the property market. Okay, So there are

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Speaker 1: companies that you can invest in that they invest in

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Speaker 1: purchasing like skyrise buildings and renting them out corporately to

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Speaker 1: like office buildings, or they might have a whole building

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Speaker 1: and lease out the properties to individuals and then you

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Speaker 1: can purchase shares in their company and get exposure to

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Speaker 1: the property market by investing in them. Kind of cool

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Speaker 1: if you're interested in property but also don't want to

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Speaker 1: own your own. Yeah, okay, so there's lots of different ways.

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Speaker 1: So to make sure that you're properly diversifying, I've written

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Speaker 1: down four things that you need to make sure your

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Speaker 1: investments have so that you're well diversified. Are you ready?

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Speaker 5: I'm so ready?

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Speaker 1: Okay, So first things first, we want to review our investments.

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Speaker 3: Ye.

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Speaker 1: That feels really boring because it is, and sometimes the

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Speaker 1: best parts of investing are really bland, and they should

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Speaker 1: be because if they're too aggressive, maybe we shouldn't be

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Speaker 1: there because we don't want that aggression for the long term.

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Speaker 1: So I want you to list down all your investments

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Speaker 1: and what they're worth. So, for example, do you have

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Speaker 1: cash in a savings account? List that out, Do you

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Speaker 1: have some shares? Do you have a managed fund? Do

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Speaker 1: you have not in this economy, an investment property? Do

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Speaker 1: you have your family home? Your supranuation is an investment

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Speaker 1: list that down. This is going to show you which

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Speaker 1: asset classes you currently have exposure to, where you're investing,

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Speaker 1: and where you could spend a bit more time. So,

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Speaker 1: for example, if I sat down with somebody and they said, oh,

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Speaker 1: v I'm really interested in diversifying my portfolio, and great, great,

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Speaker 1: what have you got? And they say, well, I own

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Speaker 1: my home and I've just bought my first investment proper,

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Speaker 1: that is fantastic. If we were doing a graph, we'd

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Speaker 1: have a look and be like, how much cash do

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Speaker 1: you have? And they go, look, not much because I've

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Speaker 1: just bought my first investment property. Or at do you

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Speaker 1: have any bonds or fixed interest? No? None, never prioritized it.

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Speaker 1: That's cool. Where's property property graph is up here? Because

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Speaker 1: they have their home plus their investment property. Do you

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Speaker 1: have shares? No, of course not. I've spent all my

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Speaker 1: money on property and their shares are down there, so

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Speaker 1: you kind of go all right, Well, obviously, if you're

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Speaker 1: super passionate about just property, you don't like shares, you

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Speaker 1: don't like fixed interest? Who am I to judge?

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Speaker 2: Like?

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Speaker 1: Who am I to tell you have to have an

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Speaker 1: asset class? You don't have to. But what I would

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Speaker 1: be looking at is going okay, cool, So do we

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Speaker 1: want to kind of increase that bar of cash or

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Speaker 1: fixed interest or shares because you have a lot of

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Speaker 1: exposure to property. So maybe they say, yeah, V I'd

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Speaker 1: really like to look at shares, at which point you go, fantastic,

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Speaker 1: that's another great way of diversifying your investment portfolio as

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Speaker 1: a whole. And then we would pick up the conversation

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Speaker 1: of well what shares At that point, we're probably not

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Speaker 1: looking at shares in those property companies we were talking about,

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Speaker 1: because they actually already have heaps of exposure to property directly.

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Speaker 1: So I'm not going to then set up a share

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Speaker 1: portfolio for somebody and then give them more exposure to property.

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Speaker 1: That doesn't create good diversification. We would be looking at

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Speaker 1: the examples you listed. Are we looking at healthcare it?

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Speaker 1: Are we looking at you know, some blue chip banks

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Speaker 1: that are going to kind of balance out that property

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Speaker 1: that they already have. Does that make sense?

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Speaker 5: Yeah?

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Speaker 1: Absolutely, So that leads into the second one because we

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Speaker 1: all know that when I make a list, I just

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Speaker 1: go rogue. Anyway, we're going to identify gaps and research

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Speaker 1: other asset classes. So that's where we're going to look

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Speaker 1: at those bars that we've hypothetically made up, and that's

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Speaker 1: where we go. Yeah, they don't have shares, they don't

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Speaker 1: have fixed interests, they don't have much cash. Where could

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Speaker 1: we increase this to kind of balance it out?

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Speaker 5: Yeah?

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Speaker 1: And if most of your money is in two asset

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Speaker 1: classes or one asset class, like, let's have a look

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Speaker 1: at the other asset classes to make sure that you

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Speaker 1: do have diversification, because, as I said before, you might

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Speaker 1: be absolutely fine right now. Like Beck, let's pretend that

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Speaker 1: the economy isn't cooked and you have two investment properties.

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Speaker 1: Interest rates are going really well, and you look at

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Speaker 1: me like I've got you know, mud on my face

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Speaker 1: because you're like, ve, that makes no sense. Look at

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Speaker 1: my investment properties. My tenants are paying rent I'm fine. Yeah,

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Speaker 1: that was five years ago. Come into now economy. Your

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Speaker 1: interest rates have increased. Property isn't looking as good. That investment,

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Speaker 1: even though your tenants are paying the same amount of rent,

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Speaker 1: isn't returning as much because your interest rates are now

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Speaker 1: costing you more and actually owning those investment properties is

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Speaker 1: costing you more money than it's making for sure, So

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Speaker 1: returns are going to EBB and flow over time. But

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Speaker 1: if we had looked at your investment portfolio and gone

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Speaker 1: all right, you've got property, we're going to look at

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Speaker 1: some diverse to fight options here, they could be boosting

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Speaker 1: your overall portfolio up because even though the property is

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Speaker 1: not making you heaps, it's being balanced out by your

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Speaker 1: share portfolio. And in your share portfolio, perhaps you chose

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Speaker 1: a whole heap of stable things puhich. In this economy,

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Speaker 1: we all know Cosmoli's are doing really well. It's all

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Speaker 1: over the news. So those might be the things that

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Speaker 1: we've put into your portfolio to kind of balance everything out.

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Speaker 1: So ideally, the point of balancing things out is when

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Speaker 1: one's not doing well something else is so that we

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Speaker 1: get an average return of the market, not necessarily blowing

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Speaker 1: it out of the water, but we're making sure that

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Speaker 1: we are safe.

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Speaker 2: Okay.

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Speaker 1: Does that make sense?

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Speaker 2: Yeah?

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Speaker 5: Absolutely.

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Speaker 1: I feel like I keep saying does that make sense?

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Speaker 1: And I hate when people do that, So I do apologize.

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Speaker 5: No, I don't apologize. I like that you're checking in

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Speaker 5: with me. All right, Okay, what next? All right?

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Speaker 1: So the third thing I've written down is invest overseas.

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Speaker 1: So we love the Australian share market. She's real cute.

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Speaker 1: She is very well diversified, but she's small, so like

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Speaker 1: she's not very tall, and we need to get a

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Speaker 1: tall friend. And Australia essentially has a really small share

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Speaker 1: market in comparison to the rest of the world's investment opportunities.

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Speaker 1: So investing some of your money overseas is actually going

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Speaker 1: to lower the risk of investing in a single market. So,

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Speaker 1: for example, investments in Asian or European investments might perform

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Speaker 1: well when the Australian market is falling.

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Speaker 4: Okay.

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Speaker 1: So this comes into currency as well. So we know

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Speaker 1: right now, if you wanted to travel to America, not

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Speaker 1: only is America really expensive, it's more expensive for you

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Speaker 1: beck because the exchange rate is going to screw you

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Speaker 1: a little bit. When you go over there, Yeah, right,

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Speaker 1: Like we went over last year for work, and the

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Speaker 1: exchange rate blew my mind. Like I was paying like

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Speaker 1: fifteen dollars for a coffee Australian even though American. That's

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Speaker 1: clearly not what it costs. But my exchange rate just

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Speaker 1: put me a little bit backwards. Sure, but if you're

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Speaker 1: investing overseas, we're making sure that things are a bit

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Speaker 1: more balanced. So, for example, I have spoken about this

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Speaker 1: on the podcast before. I mainly invest in ETFs, and

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Speaker 1: I think a lot of people are really shocked to

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Speaker 1: hear that because they go, but Victoria, you were a

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Speaker 1: financial advisor, like you know how to do big dog investing,

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Speaker 1: and I do. But I'm also lazy. And why would

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Speaker 1: I spend hours upon hours upon hours picking out what

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Speaker 1: I deem to be a perfect investment portfolio. Do you

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Speaker 1: have to rebalance it after twelve months and redo that

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Speaker 1: whole process when and this is just personal opinion, this

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Speaker 1: is not advice. When I could go and buy an

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Speaker 1: ETF or a managed fund that has a professional investment

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Speaker 1: manager who manages those investments and the shares that are

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Speaker 1: inside that bucket for me, true, I'll just give you

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Speaker 1: my money you're way smarter at this than I am. Yes,

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Speaker 1: I'm really good at investing. And when I was a

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Speaker 1: financial advisor, I had the absolute privilege of talking to

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Speaker 1: investment managers basically on a daily basis. I would check

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Speaker 1: in with them, I would make trades on behalf of

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Speaker 1: my clients and do all of that for forty plus

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Speaker 1: hours a week. I don't do that anymore, Gods, So

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Speaker 1: I focus more on content for shees on the money,

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Speaker 1: I focus more on other stuff. I have a baby.

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Speaker 1: I'm focusing on him. So I think it's really important

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Speaker 1: to make sure that we are working out. Is that

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Speaker 1: the best use of my time? Or am I going

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Speaker 1: to invest in something where it's semi managed for me?

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Speaker 1: Like I know that if a share is performing not

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Speaker 1: so well, that's okay, that's how the market does. But

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Speaker 1: if it's performing not so well and it was actually

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Speaker 1: about investment, my investment manager is going to kick it

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Speaker 1: out of the portfolio. Yeah, they can make that decision

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Speaker 1: for me. But as you know, because I've spoken about

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Speaker 1: it on the show before, I don't just have one ETF.

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Speaker 1: I haven't just picked an Australian ETF and been like

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Speaker 1: wam bam, thank you, ma'am. I have an Australian ETF

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Speaker 1: and I have an International ETF to make sure because

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Speaker 1: obviously I've purchased an ETF diversification immediately, because I've got

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Speaker 1: access to so many different assets inside that share portfolio,

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Speaker 1: right yeah. But then I have a second ETF, which

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Speaker 1: is international. Not only is that well diversified because it's

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Speaker 1: got lots of different shares in it and lots of

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Speaker 1: different I guess industries. I have Australian versus International. So

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Speaker 1: then I've kind of like double stacked my diversification. We

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Speaker 1: love a double stack. Like tell me that double coated

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Speaker 1: timtams aren't the best type.

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Speaker 4: I mean they are exactly objectively objectively speaking, double coded

404
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Speaker 4: timtams are the best.

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Speaker 1: Therefore, double stacking our diversification obviously makes more sense. So

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Speaker 1: not only have I diversified inside each ETF, I've also

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Speaker 1: diversified so that if the Australian market's doing well, the

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Speaker 1: international market might be a little bit more rocky. And

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Speaker 1: if the international market's doing really well, maybe Australia isn't.

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Speaker 1: So I've kind of balanced it out that if one

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Speaker 1: ETF's before well, maybe the other isn't. And vice versa.

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Speaker 5: Sure, does that make sense totally much.

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Speaker 1: I love the double stack because it makes me feel

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Speaker 1: really confident, and that's why maybe you would too.

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Speaker 4: It's beautiful portfolio, double stacked, double coded. T Oh, that

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Speaker 4: sounds delicious. Okay, is there anything else to keep in mind?

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Speaker 1: One more? But I've actually jumped ahead and explained it

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Speaker 1: to you already, and that is investing through managed funds,

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Speaker 1: managed to counsel ETFs. Right, So, as we said before,

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Speaker 1: a really simple way to diversify is to invest directly

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Speaker 1: in something like in exchange traded fund, where not only

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Speaker 1: is somebody else managing it, but they've created a basket

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Speaker 1: of shares that gives you diversification immediately. Now the thing

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Speaker 1: you have to be careful of here is while an

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Speaker 1: ETF gives you diversification, it might be an industry specific ETF,

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Speaker 1: and that's totally okay.

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Speaker 5: Sure, But if you.

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Speaker 1: Go beck and go all right, I really want to

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Speaker 1: invest INTF and then you find a tech ETF that

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Speaker 1: tickles your fancy and you go, I really want to

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Speaker 1: purchase that, you need to remember that even though there

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Speaker 1: are a number of companies inside that ETF, you know

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Speaker 1: there might be thirty of them that ETF is only

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Speaker 1: giving you exposure to one industry, and that is tech,

435
00:22:18,359 --> 00:22:21,679
Speaker 1: and you might go, okay, well, in that case, I

436
00:22:21,800 --> 00:22:25,679
Speaker 1: might pick a couple of ETFs in different industries to

437
00:22:25,720 --> 00:22:29,520
Speaker 1: make sure I've got diversification, because if Tech's not doing well,

438
00:22:30,080 --> 00:22:32,359
Speaker 1: something else might be. Does that make sense?

439
00:22:32,520 --> 00:22:32,720
Speaker 2: Yeah?

440
00:22:32,800 --> 00:22:33,119
Speaker 5: Where is?

441
00:22:33,160 --> 00:22:36,919
Speaker 1: The ETFs I've picked are not industry specific. And the

442
00:22:36,960 --> 00:22:38,840
Speaker 1: reason I've done that is because I wanted to keep

443
00:22:38,880 --> 00:22:43,679
Speaker 1: it simple and sometimes the simplest things work, right. Yeah,

444
00:22:44,200 --> 00:22:46,760
Speaker 1: I mean they're not double coated tim tams. But like

445
00:22:47,040 --> 00:22:49,679
Speaker 1: when you're not, well, what do you want? Just buttered toast?

446
00:22:49,840 --> 00:22:52,240
Speaker 5: Absolutely, it's tried. It's true.

447
00:22:52,520 --> 00:22:54,160
Speaker 1: I'm going to want that for the rest of my life.

448
00:22:54,400 --> 00:22:56,720
Speaker 1: And that's how I kind of see my investment portfolio.

449
00:22:56,800 --> 00:22:57,639
Speaker 5: It's a good way to look at it.

450
00:22:57,640 --> 00:22:59,720
Speaker 1: Actually, I really like buttered toast. You put like a

451
00:22:59,720 --> 00:23:01,520
Speaker 1: little bit of salt on your buttered toast.

452
00:23:01,920 --> 00:23:04,520
Speaker 5: I do, Oh yes.

453
00:23:04,680 --> 00:23:07,479
Speaker 4: After talking about eggs and timms and buttered toast, I'm

454
00:23:08,480 --> 00:23:09,520
Speaker 4: I'm ravenous, But.

455
00:23:09,440 --> 00:23:12,080
Speaker 1: I actually could go a double coated tim tam.

456
00:23:12,160 --> 00:23:13,679
Speaker 5: Let's do it straight after this, all right? All right,

457
00:23:13,720 --> 00:23:15,240
Speaker 5: all right, all right? Is there anything else?

458
00:23:15,359 --> 00:23:15,479
Speaker 4: No?

459
00:23:15,920 --> 00:23:18,320
Speaker 1: Yes, maybe how much time have we got left?

460
00:23:18,359 --> 00:23:20,080
Speaker 5: We've got a little bit of time left. I'm very

461
00:23:20,119 --> 00:23:20,600
Speaker 5: proud of us.

462
00:23:20,600 --> 00:23:22,919
Speaker 1: Actually, all right, I'm always proud of us, Like we

463
00:23:22,960 --> 00:23:24,919
Speaker 1: don't even have to do anything, and I'm proud of us.

464
00:23:24,960 --> 00:23:26,960
Speaker 1: It's so good, Like did you exist today?

465
00:23:27,040 --> 00:23:27,320
Speaker 2: Wow?

466
00:23:28,600 --> 00:23:30,240
Speaker 1: Wasting time? This is so bad?

467
00:23:30,320 --> 00:23:30,520
Speaker 2: Oh my?

468
00:23:30,560 --> 00:23:30,880
Speaker 5: All right.

469
00:23:30,960 --> 00:23:33,200
Speaker 1: So what I want you to do is keep an

470
00:23:33,240 --> 00:23:37,640
Speaker 1: eye on your portfolio. So diversification really important, but it's

471
00:23:37,720 --> 00:23:40,000
Speaker 1: not set and forget. As much as we want it

472
00:23:40,040 --> 00:23:42,639
Speaker 1: to be boring and not that exciting when we're picking

473
00:23:42,680 --> 00:23:45,720
Speaker 1: our investments, we do still want to keep an eye

474
00:23:45,760 --> 00:23:48,560
Speaker 1: on it because as your investments rise or full, you

475
00:23:48,680 --> 00:23:52,080
Speaker 1: could have more money in one asset class than when

476
00:23:52,119 --> 00:23:57,879
Speaker 1: you started investing, and this could become less diversified. So

477
00:23:58,400 --> 00:24:01,520
Speaker 1: an example of this is I I've recently rebalanced my

478
00:24:01,600 --> 00:24:04,960
Speaker 1: investment portfolio. What does that mean? Don't worry. I'll do

479
00:24:05,000 --> 00:24:07,960
Speaker 1: a whole episode on rebalancing. We have spoken about it

480
00:24:08,000 --> 00:24:11,000
Speaker 1: on the podcast before. But essentially I sat down and

481
00:24:11,040 --> 00:24:13,600
Speaker 1: I looked at my investment portfolio. I do have a

482
00:24:13,600 --> 00:24:16,200
Speaker 1: lot of what we call satellite investments, which is investments

483
00:24:16,240 --> 00:24:19,879
Speaker 1: sitting around these two main ETFs that I own. But

484
00:24:20,040 --> 00:24:24,320
Speaker 1: what happened was one of my ETFs had performed significantly

485
00:24:24,480 --> 00:24:27,720
Speaker 1: better than my other ETF, and it meant that instead

486
00:24:27,720 --> 00:24:30,280
Speaker 1: of being fifty to fifty in ownership, which is what

487
00:24:30,320 --> 00:24:33,520
Speaker 1: I started with, I was at like thirty seventy because

488
00:24:33,520 --> 00:24:36,399
Speaker 1: of how well one had performed. Sure, so what are

489
00:24:36,440 --> 00:24:39,920
Speaker 1: you do in that circumstance? What I did was I

490
00:24:39,960 --> 00:24:43,080
Speaker 1: sold down some of the portfolio who had gotten up

491
00:24:43,080 --> 00:24:45,240
Speaker 1: to that seventy percent, because I was like, well, you're

492
00:24:45,280 --> 00:24:48,080
Speaker 1: doing well. What I'm gonna do is take some money

493
00:24:48,119 --> 00:24:50,600
Speaker 1: off the table. We're not gonna take it all off

494
00:24:50,640 --> 00:24:52,520
Speaker 1: the table. I'm not taking it out and putting it

495
00:24:52,560 --> 00:24:55,439
Speaker 1: in my bank account. But I sold down some of

496
00:24:55,480 --> 00:24:59,120
Speaker 1: the shares and put that money into my other ETF

497
00:25:00,160 --> 00:25:01,080
Speaker 1: at fifty to fifty.

498
00:25:01,200 --> 00:25:01,480
Speaker 5: Sure.

499
00:25:01,520 --> 00:25:03,560
Speaker 1: And the reason I did that is not because the

500
00:25:03,560 --> 00:25:05,960
Speaker 1: other one wasn't performing, because you might go v well,

501
00:25:05,960 --> 00:25:07,959
Speaker 1: if the other one wasn't performing, why on earth did

502
00:25:08,000 --> 00:25:10,800
Speaker 1: you put more cash into it. It's because the market

503
00:25:10,920 --> 00:25:14,439
Speaker 1: was off and essentially that ETF was a little bit cheaper.

504
00:25:14,720 --> 00:25:17,960
Speaker 1: So if something has done really well and it's performing

505
00:25:18,000 --> 00:25:20,160
Speaker 1: really well, I'm going to take the profits and I'm

506
00:25:20,200 --> 00:25:23,160
Speaker 1: going to tip them back into the ETF that right

507
00:25:23,200 --> 00:25:26,200
Speaker 1: now I saw as a really good price to pay

508
00:25:26,320 --> 00:25:29,600
Speaker 1: per share. Does that make sense? So that then later

509
00:25:30,080 --> 00:25:32,320
Speaker 1: I'm still at fifty to fifty. Hopefully one of them

510
00:25:32,359 --> 00:25:35,280
Speaker 1: tops up again and I will rebalance and tip from

511
00:25:35,280 --> 00:25:37,760
Speaker 1: one jug to the other so that we're always a

512
00:25:37,800 --> 00:25:41,320
Speaker 1: bit even. But over time, yes, I'm tipping from one

513
00:25:41,359 --> 00:25:43,880
Speaker 1: to the other. But they're still going up, aren't they.

514
00:25:43,960 --> 00:25:45,640
Speaker 1: They're going up evenly though.

515
00:25:46,000 --> 00:25:47,520
Speaker 5: Oh my god, it's really really smart.

516
00:25:47,560 --> 00:25:49,640
Speaker 1: Actually, So that's my last point, because I think we're

517
00:25:49,680 --> 00:25:50,120
Speaker 1: out of time.

518
00:25:50,240 --> 00:25:51,879
Speaker 5: Okay, oh my gosh, I think we made it.

519
00:25:51,920 --> 00:25:54,800
Speaker 1: I think we made it, but like we also aren't

520
00:25:54,840 --> 00:25:58,720
Speaker 1: the editors. So our podcast producer and our podcast editor,

521
00:25:59,320 --> 00:26:02,320
Speaker 1: you know what, make half an hour? Thanks guys, thank you.

522
00:26:02,359 --> 00:26:04,440
Speaker 1: Don't cut out any of the stuff about Tim Tams.

523
00:26:04,520 --> 00:26:05,240
Speaker 1: We love you.

524
00:26:05,359 --> 00:26:06,600
Speaker 5: Do what you gotta do, all right.

525
00:26:06,920 --> 00:26:09,760
Speaker 1: I think it's exciting. So obviously before we go, just

526
00:26:09,800 --> 00:26:12,919
Speaker 1: wanted to reiterate one, double coded Tim Tams are the

527
00:26:13,000 --> 00:26:16,879
Speaker 1: superior Tim Tam, but two, it can actually be quite

528
00:26:16,960 --> 00:26:20,199
Speaker 1: hard to find the right investments. Obviously, it could be

529
00:26:20,240 --> 00:26:22,679
Speaker 1: as simple as picking too ETFs that makes sense for

530
00:26:22,720 --> 00:26:25,560
Speaker 1: you and starting your journey there. But if you are

531
00:26:25,640 --> 00:26:28,760
Speaker 1: really overwhelmed or you don't know what to do, definitely

532
00:26:28,800 --> 00:26:31,240
Speaker 1: have a chat with a financial advisor or someone who

533
00:26:31,280 --> 00:26:33,439
Speaker 1: can set you up. And you can be matched with

534
00:26:33,480 --> 00:26:36,399
Speaker 1: a good financial advisor via my website because look, I

535
00:26:36,440 --> 00:26:38,520
Speaker 1: don't trust a lot of people, but I do trust

536
00:26:38,560 --> 00:26:40,440
Speaker 1: my own crew. So if you would like to meet

537
00:26:40,480 --> 00:26:42,639
Speaker 1: one of those delightful humans, head to my website and

538
00:26:42,680 --> 00:26:44,560
Speaker 1: I can tee you up. It doesn't cost you anything.

539
00:26:44,680 --> 00:26:45,399
Speaker 5: That's nice.

540
00:26:45,520 --> 00:26:47,240
Speaker 1: I mean the advice will cost you something. It's not

541
00:26:47,359 --> 00:26:48,879
Speaker 1: just free, but you know what I mean. I'm not

542
00:26:48,920 --> 00:26:52,800
Speaker 1: gonna charge you to get advice from me. Let's go

543
00:26:52,920 --> 00:26:54,120
Speaker 1: have a double coded tim tamps.

544
00:26:54,119 --> 00:27:00,159
Speaker 5: Oh my god, let's go. All right, bye everyone Bye.

545
00:27:03,440 --> 00:27:05,960
Speaker 3: The advice shared on She's on the Money is general

546
00:27:06,040 --> 00:27:09,879
Speaker 3: in nature and does not consider your individual circumstances. She's

547
00:27:09,920 --> 00:27:13,399
Speaker 3: on the Money exists purely for educational purposes and should

548
00:27:13,400 --> 00:27:16,600
Speaker 3: not be relied upon to make an investment or financial decision.

549
00:27:16,960 --> 00:27:19,440
Speaker 3: If you do choose to buy a financial product, read

550
00:27:19,440 --> 00:27:23,600
Speaker 3: the PDS TMD and obtain appropriate financial advice tailored towards

551
00:27:23,640 --> 00:27:26,920
Speaker 3: your needs. Victoria Divine and She's on the Money are

552
00:27:26,960 --> 00:27:31,960
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553
00:27:32,000 --> 00:27:35,960
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554
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