Speaker 1: Hello.
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
Speaker 2: get started on She's on the Money podcast, I would
Speaker 2: like to acknowledge the traditional custodians of the land of
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
Speaker 2: the elders, the ancestors and the next generation coming through
Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and
Speaker 2: the storytelling of you to make a difference for today
Speaker 2: and lasting impact for tomorrow.
Speaker 1: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money, the podcast
Speaker 4: for millennials who won financial freedom. My name is Beckside
Speaker 4: and with me as always is Victoria Divine. Hello Bear,
Speaker 4: Hello VD.
Speaker 1: I'm excited for this one, but I feel like there's
Speaker 1: a little bit of pressure there is.
Speaker 4: I'm gonna say a little bit of a challenge. Yeah
Speaker 4: all right, and I don't know if you offer it,
Speaker 4: but we're gonna try, well, me being the listener and
Speaker 4: you being the actual person with knowledge, try and explain
Speaker 4: diversification in thirty minutes.
Speaker 1: Yeah, because that sounded like a good podcast title, and
Speaker 1: we picked it before we actually recorded this episode. So
Speaker 1: now we have to kind of like adhere to that.
Speaker 4: We literally have to what if we fail? Do we
Speaker 4: just cut bits out if we fail? Yeah? It actually
Speaker 4: sucks to be the listener.
Speaker 1: Also, low key funny if you like clicked on the
Speaker 1: episode diversification in thirty minutes and then you see it's
Speaker 1: like a forty two minute episode exactly.
Speaker 4: It's gonna be very hard time. Let's get into it then,
Speaker 4: so let's try. Okay, the producers popped as Stopwatch on fantastic.
Speaker 1: Let's go, no pressure, all right, So just.
Speaker 4: Really quickly after the break, we will give you guys
Speaker 4: four tips on how to diversify your portfolio and how
Speaker 4: to keep it that way. But first VI, what is diversification.
Speaker 1: I love talking about diversification and you've heard me talk
Speaker 1: about it before, and it's when I say, you wouldn't
Speaker 1: want to put all your eggs in one basket, right,
Speaker 1: And you wouldn't want to do that, y beck, because
Speaker 1: if you put all your eggs in one basket and trip,
Speaker 1: you're going to break all of your eggs. Whereas if
Speaker 1: we put them in multiple baskets, and you're just carrying
Speaker 1: one of your baskets because we have lots of little
Speaker 1: loads to do, and you trip in one brakes, well,
Speaker 1: all of the other ones they're okay for now, unless
Speaker 1: you're like real clumsy and you tripped every single time,
Speaker 1: which case I really can't help you. But diversification is
Speaker 1: an investment strategy that essentially lowers your portfolio's risk and
Speaker 1: then helps you gain more stable returns because obviously, if
Speaker 1: you have your eggs in lots of different baskets, that's
Speaker 1: an analogy. We're not actually buying eggs. Beck If we
Speaker 1: have lots of different investments, if one of them performs
Speaker 1: not so well, something else else is going to perform well,
Speaker 1: and then your average portfolio return becomes a bit more
Speaker 1: average instead of seeing the return of just one company.
Speaker 1: And you often see this with things like ETFs. Right, So,
Speaker 1: an ETF is an exchange traded fund. We have talked
Speaker 1: about these things before. I like them because they give
Speaker 1: you instant diversification because they're essentially a really big basket
Speaker 1: of lots of different types of shares. But if you
Speaker 1: deep dive into an ETF and have a look at
Speaker 1: all their holdings. Most ETFs hold fifty plus shares because
Speaker 1: they like to have a lot. I mean a lot
Speaker 1: of ETFs might be the top two hundred companies on
Speaker 1: the Australian share market. But you will look at it
Speaker 1: and some companies have you know, returned to really good
Speaker 1: looking forty two percent, some companies have been like negative
Speaker 1: fourteen percent, and it all comes out to be about
Speaker 1: an average of the market, which is what we're aiming
Speaker 1: for because to be honest, when we're investing, I just
Speaker 1: want you to have consistent, reliable returns over the long
Speaker 1: term to build wealth because unfortunately, get rich quick schemes
Speaker 1: don't work and they're kind of irresponsible. Like when we're
Speaker 1: investing and we're investing properly, we're in it for the
Speaker 1: long haul and it ultimately should be a little bit boring.
Speaker 1: But when you dive in, diversification is a really important
Speaker 1: point because it kind of makes things more stable.
Speaker 4: Does that make sense? That does make sense, But can
Speaker 4: you kind of explain more to me, like how that
Speaker 4: actually lowers risk?
Speaker 1: Yeah, So obviously again with the different baskets having different
Speaker 1: eggs in them, diversification is going to lower your risk
Speaker 1: because different asset classes perform differently at different times, so
Speaker 1: you're not just looking at oh, well, maybe if by
Speaker 1: chance this performs really well, and if by chance something
Speaker 1: doesn't perform well, will be okay. It's actually more because
Speaker 1: we know that different asset classes perform differently during different
Speaker 1: periods of time. So the best example I can think
Speaker 1: of off the top of my head is during COVID,
Speaker 1: toilet paper sales did really well. Right, So during times
Speaker 1: of economic turmoil, we will see staples do really well,
Speaker 1: so supermarkets, you know, thrive. All of those things that
Speaker 1: are essentially human essentials tend to do a little bit
Speaker 1: better than things that are more luxurious.
Speaker 5: Right.
Speaker 1: So I think it's important to make sure that when
Speaker 1: you're picking your portfolio, you're not just picking it because
Speaker 1: you're like, oh, I need to diversify, because if one
Speaker 1: doesn't do well, the other well, and that's just luck
Speaker 1: of the draw. It's not necessarily luck of the draw.
Speaker 1: It's picking different asset classes. Look, if the market's not
Speaker 1: so good, beck, we know there's a few tried and
Speaker 1: true assets in your portfolio that are going to stand
Speaker 1: the test of time and do well. But also during
Speaker 1: times of economic growth, you're going to see other asset
Speaker 1: classes do well, like infrastructure, or you might see more
Speaker 1: roads being built, or you might see you know, more
Speaker 1: buildings being built, or even you know, luxuries. So you know,
Speaker 1: if you're going to invest in LVMH, which owns a
Speaker 1: lot of the luxury brands around the world, obviously they're
Speaker 1: going to do really well during booming times because everyone's
Speaker 1: buying their wife a.
Speaker 4: Handbag, you know, gotcha.
Speaker 1: So we want to make sure that we're not just
Speaker 1: diversified by having lots of assets, we're diversified by having
Speaker 1: them across lots of different classes. Does that make sense?
Speaker 4: Yeah, I think it's starting to sink in for me
Speaker 4: and hopefully for listeners. But if you have to backtrack
Speaker 4: a few times, I don't blame you so ver you
Speaker 4: mention asset classes before and we have talked about them
Speaker 4: on the show. But can we get a quick little refresher.
Speaker 1: Yes, so we have discussed it before, so definitely look
Speaker 1: for it in the podcast feed if you haven't heard
Speaker 1: this episode. But here in Australia there are four main
Speaker 1: types of asset classes. You've got cash, you've got bonds,
Speaker 1: you've got property, and then you've got shares. Obviously, I
Speaker 1: love shares, and when we're talking about a diversified investment portfolio,
Speaker 1: we're more talking about shares, bonds, and cash and the
Speaker 1: mix of those things. So the best example is your supranuation.
Speaker 3: Right.
Speaker 1: Most of us who have been employed are going to
Speaker 1: have a subranuation account, right, and you would have your
Speaker 1: investment portfolio. And your investment portfolio is not just made
Speaker 1: up of picking a diversified amount of shares. It's also
Speaker 1: got some cash in it to bring some stability. You'll
Speaker 1: have access to bonds. So a bond is like a
Speaker 1: government iou is my favorite way to explain it. You'll
Speaker 1: have one of those because during times when interest rates fall,
Speaker 1: bond prices actually rise because they're seen to be a
Speaker 1: little bit more of a stable investment. And when shares
Speaker 1: are doing poorly, bonds usually perform pretty well. So again,
Speaker 1: it brings a bit more stability to your portfolio.
Speaker 4: Right.
Speaker 1: It's kind of like having a seesaw and you're putting,
Speaker 1: you know, some shares on one end and you're like, oh,
Speaker 1: I need to put something else on the other end
Speaker 1: to make sure that this sits evenly, right, Right, So
Speaker 1: this is what diversification is going to do. It's going
Speaker 1: to make the seesawce sit evenly. But you're doing this
Speaker 1: not just for your overall share portfolio, which could have cash,
Speaker 1: it could have fixed interest assets, it could have property,
Speaker 1: it could have shares. You're doing this inside your share
Speaker 1: portfolio as well, because essentially we just want to spread
Speaker 1: out our money in a way that means it's working
Speaker 1: as hard as we do for it, but also it's
Speaker 1: at less risk, and less risk means more assets.
Speaker 4: Okay, that is a lot of information to digest.
Speaker 1: Just a little bit. I mean, there were only four
Speaker 1: asset classes we discussed. What were they? Beck, cash ons?
Speaker 4: Oh yeah, bonds, bonds, cash, Yeah, genuinely, I've forgotten property, property,
Speaker 4: and shares shares. Okay, thank you so much, You've got it.
Speaker 1: I feel like I talk so quickly that sometimes I
Speaker 1: forget that other people don't keep up. But also you've
Speaker 1: got to remember this is like a second language to me.
Speaker 1: Lots of people speak second languages and I do not,
Speaker 1: But finance is a language I speak, so it makes
Speaker 1: sense to me. And if it doesn't make sense to you,
Speaker 1: that kind of makes sense because you didn't go to
Speaker 1: school and study any of this, which is why I
Speaker 1: exist totally.
Speaker 4: And that's totally okay because here I am being on
Speaker 4: the show for like more than a year now and
Speaker 4: still struggling.
Speaker 1: So you are, Oh, thank you, You're doing so well. No,
Speaker 1: I think it's good. Let's go to a really quick break.
Speaker 4: Let's take some time to digest it and then have
Speaker 4: a coffee.
Speaker 1: And on the other side, we have another fifteen minutes
Speaker 1: to talk more about diversification.
Speaker 4: Oh okay, we're doing well. Welcome back everyone. Since there
Speaker 4: is a time limit on this show, let's quickly dive
Speaker 4: back into it. Today we are learning about diversification. V
Speaker 4: is diversification just a matter of mixing up the types
Speaker 4: of things I'm investing in, for example, like it blue
Speaker 4: chip health, et cetera. How do you diversify? Is what
Speaker 4: I'm trying to say, you do?
Speaker 1: And I like to think of having a share portfolio
Speaker 1: like having a smoothie, right, Like it's maybe a little
Speaker 1: bit of a niche example, but like you don't just
Speaker 1: have a smoothie and you just have milk in it, right, Like,
Speaker 1: you could have a beenana smoothie, or you could meet
Speaker 1: someone who hates bananas and doesn't want banana in their
Speaker 1: smoothie and wants a blueberry smoothie, right, or they could
Speaker 1: be an absolute health freak and they've got like LCA
Speaker 1: and G seeds and all the stuff that gets stuck
Speaker 1: in your teeth. It's not for a freebody, right. So
Speaker 1: you're picking a smoothie with all the ingredients that you want,
Speaker 1: but you can't have a smoothie with just one ingredient
Speaker 1: otherwise it's not smoothie, right, And that's the way we
Speaker 1: should be seeing our investment portfolio. It is not an
Speaker 1: investment portfolio or a proper one if you only have
Speaker 1: one asset class in it, because it'd be pretty trash smoothie, right,
Speaker 1: like no one's gonna want to drink it, not really good.
Speaker 1: So essentially beg to diversify, well, you're gonna need to
Speaker 1: invest across lots of different asset classes. We went through
Speaker 1: them before the break. We had cash, fixed interest, property
Speaker 1: and shares. And while those four asset classes are the
Speaker 1: four that are recognized here in Australia, we're just going
Speaker 1: to talk now about how to diversify inside your share portfolio.
Speaker 1: Because most of us Rudy have cash and understand that well,
Speaker 1: bonds they're more of a fixed interest asset class. They're
Speaker 1: not too complicated, but they're also not as popular property.
Speaker 1: I think we all understand the Great Australian dream. You
Speaker 1: know what that means. But did you know you can
Speaker 1: buy shares that are giving you exposure to the property market. Okay,
Speaker 1: So there are companies that you can invest in that
Speaker 1: they invest in purchasing like skyrise buildings and renting them
Speaker 1: out corporately to like office buildings, or they might have
Speaker 1: a whole building and lease out the properties to individuals
Speaker 1: and then you can purchase shares in their company and
Speaker 1: get exposure to the property market by investing in them.
Speaker 1: Kind of cool if you're interested in property but also
Speaker 1: don't want to own your own. Yeah, okay, so there's
Speaker 1: lots of different ways. So to make sure that you're
Speaker 1: properly diversifying, I've written down four things that you need
Speaker 1: to make sure your investments have so that you're well diversified.
Speaker 1: Are you ready?
Speaker 4: I'm so ready?
Speaker 1: Okay, So first things first, we want to review our investments.
Speaker 5: Ye.
Speaker 1: That feels really boring because it is, and sometimes the
Speaker 1: best parts of investing are really bland, and they should
Speaker 1: be because if they're too aggressive, Maybe we shouldn't be
Speaker 1: there because we don't want that aggression for the long term.
Speaker 1: So I want you to list down all your investments
Speaker 1: and what they're worth. So, for example, do you have
Speaker 1: cash in a savings account? List that out, Do you
Speaker 1: have some shares? Do you have a managed fund? Do
Speaker 1: you have not in this economy, an investment property? Do
Speaker 1: you have your family home? Your supranuation is an investment
Speaker 1: list that down. This is going to show you which
Speaker 1: asset classes you currently have exposure to, where you're investing,
Speaker 1: and where you could spend a bit more time. So
Speaker 1: for example, if I sat down with somebody and they said, oh,
Speaker 1: v I'm really interested in diversifying my portfolio and great, great,
Speaker 1: what have you got? And they say, well, I own
Speaker 1: my home and I've just bought my first investment proper,
Speaker 1: that is fantastic. If we were doing a graph, we'd
Speaker 1: have a look and be like, how much cash do
Speaker 1: you have? And they go, look, not much because I've
Speaker 1: just bought my first investment property. Or at do you
Speaker 1: have any bonds or fixed interest? No? None, never prioritized it.
Speaker 1: That's cool. Where's property property graph is up here? Because
Speaker 1: they have their home plus their investment property. Do you
Speaker 1: have shares? No, of course not. I've spent all my
Speaker 1: money on property and their shares are down there, So
Speaker 1: you kind of go all right, Well, obviously, if you're
Speaker 1: super passionate about just property, you don't like shares, you
Speaker 1: don't like fixed interest? Who am I to judge?
Speaker 2: Like?
Speaker 1: Who am I to tell you have to have an
Speaker 1: asset class? You don't have to. But what I would
Speaker 1: be looking at is going okay, cool, So do we
Speaker 1: want to kind of increase that bar of cash or
Speaker 1: fixed interest or shares because you have a lot of
Speaker 1: exposure to property. So maybe they say, yeah, V I'd
Speaker 1: really like to look at shares, at which point you go, fantastic,
Speaker 1: that's another great way of diversifying your investment portfolio as
Speaker 1: a whole. And then we would pick up the conversation
Speaker 1: of well what shares At that point, we're probably not
Speaker 1: looking at shares in those property companies we were talking about,
Speaker 1: because they actually already have heaps of exposure to property directly.
Speaker 1: So I'm not going to then set up a share
Speaker 1: portfolio for somebody and then give them more exposure to
Speaker 1: property That doesn't create good diversification. We would be looking
Speaker 1: at the examples you listed. Are we looking at healthcare it?
Speaker 1: Are we looking at you know, some blue chip banks
Speaker 1: that are going to kind of balance out that property
Speaker 1: that they already have. Does that make sense?
Speaker 4: Yeah?
Speaker 1: Absolutely, So that leads into the second one because we
Speaker 1: all know that when I make a list, I just
Speaker 1: go rogue. Anyway, we're going to identify gaps and research
Speaker 1: other asset classes. So that's where we're going to look
Speaker 1: at those bars that we've hypothetically made up, and that's
Speaker 1: where we go. Yeah, they don't have shares, they don't
Speaker 1: have fixed interests, they don't have much cash. Where could
Speaker 1: we increase this to kind of balance it out? Yeah,
Speaker 1: And if most of your money is in two asset
Speaker 1: classes or one asset class, like, let's have a look
Speaker 1: at the other asset classes to make sure that you
Speaker 1: do have diversification, because, as I said before, you might
Speaker 1: be absolutely fine right now. Like, Beck, let's pretend that
Speaker 1: the economy isn't cooked and you have two investment properties,
Speaker 1: interest rates are going really well, and you look at
Speaker 1: me like I've got you know, mud on my face
Speaker 1: because you're like, ve, that makes no sense. Look at
Speaker 1: my investment properties, my tenants, are paying rent. I'm fine, Yeah,
Speaker 1: that was five years ago. Come into now economy. Your
Speaker 1: interest rates have increased. Property isn't looking as good. That investment,
Speaker 1: even though your tenants are paying the same amount of rent,
Speaker 1: isn't returning as much because your interest rates are now
Speaker 1: costing you more and actually owning those investment properties is
Speaker 1: costing you more money than it's making for sure, So
Speaker 1: returns are going to EBB and flow over time. But
Speaker 1: if we had looked at your investment portfolio and gone
Speaker 1: all right, you've got property, We're going to look at
Speaker 1: some diverse to fight options here, they could be boosting
Speaker 1: your overall portfolio up because even though the property is
Speaker 1: not making you heaps, it's being balanced out by your
Speaker 1: share portfolio. And in your share portfolio, perhaps you chose
Speaker 1: a whole heap of stable things, which in this economy
Speaker 1: we all know Cosmoli's are doing really well. It's all
Speaker 1: over the news. So those might be the things that
Speaker 1: we've put into your portfolio to kind of balance everything out.
Speaker 1: So ideally, the point of balancing things out is when
Speaker 1: one's not doing well something else is so that we
Speaker 1: get an average return of the market, not necessarily blowing
Speaker 1: it out of the water, but we're making sure that
Speaker 1: we are safe.
Speaker 2: Okay.
Speaker 1: Does that make sense?
Speaker 2: Yeah?
Speaker 4: Absolutely.
Speaker 1: I feel like I keep saying does that make sense?
Speaker 1: And I hate when people do that, So I do apologize.
Speaker 4: No, I don't apologize. I like that you're checking in
Speaker 4: with me. All right, Okay, what next? All right?
Speaker 1: So the third thing I've written down is invest overseas.
Speaker 1: So we love the Australian share market. She's real cute.
Speaker 1: She is very well diversified, but she's small, so like
Speaker 1: she's not very tall, and we need to get a
Speaker 1: tall friend. And Australia essentially has a really small share
Speaker 1: market in comparison to the rest of the world's investment opportunities.
Speaker 1: So investing some of your money overseas is actually going
Speaker 1: to lower the risk of investing in a single market. So,
Speaker 1: for example, investments in Asian or European investments might perform
Speaker 1: well when the Australian market is falling.
Speaker 4: Okay.
Speaker 1: So this comes into currency as well. So we know
Speaker 1: right now if you wanted to travel to America, not
Speaker 1: only is America really expensive, it's more expensive for you
Speaker 1: beck because the exchange rate is going to screw you
Speaker 1: a little bit. When you go over there. Yeah, right,
Speaker 1: Like we went over last year for work, and the
Speaker 1: exchange rate blew my mind. Like I was paying like
Speaker 1: fifteen dollars for a coffee Australian even though American that's
Speaker 1: clearly not what it costs. But my exchange rate just
Speaker 1: put me a little bit backwards. Sure, but if you're
Speaker 1: investing overseas, we're making sure that things are a bit
Speaker 1: more balanced. So, for example, I have spoken about this
Speaker 1: on the podcast before. I mainly invest in ETFs, and
Speaker 1: I think a lot of people are really shocked to
Speaker 1: hear that because they go, but Victoria, you were a
Speaker 1: financial advisor, like you know how to do big dog investing,
Speaker 1: and I do. But I'm also lazy. And why would
Speaker 1: I spend hours upon hours upon hours picking out what
Speaker 1: I deem to be a perfect investment portfolio. Do you
Speaker 1: have to rebalance it after twelve months and redo that
Speaker 1: whole process when and this is just personal opinion, this
Speaker 1: is not advice. When I could go and buy an
Speaker 1: ETF or a managed fund that has a professional investment
Speaker 1: manager who manages those investments and the shares that are
Speaker 1: inside that bucket for me, true, I'll just give you
Speaker 1: my money. You're way smarter at this than I am. Yes,
Speaker 1: I'm really good at investing. And when I was a
Speaker 1: financial advisor, I had the absolute privilege of talking to
Speaker 1: investment managers basically on a daily basis. I would check
Speaker 1: in with them, I would make trades on behalf of
Speaker 1: my clients and do all of that for forty plus
Speaker 1: hours a week. I don't do that anymore, Gods, so
Speaker 1: I focus more on content for shees on the money,
Speaker 1: I focus more on other stuff. I have a baby.
Speaker 1: I'm focusing on him. So I think it's really important
Speaker 1: to make sure that we are working out. Is that
Speaker 1: the best use of my time? Or am I going
Speaker 1: to invest in something where it's semi managed for me?
Speaker 1: Like I know that if a share is performing not
Speaker 1: so well, that's okay, that's how the market does. But
Speaker 1: if it's performing not so well and it was actually
Speaker 1: about investment, my investment manager is going to kick it
Speaker 1: out of the portfolio. Yeah, they can make that decision
Speaker 1: for me. But as you know, because I've spoken about
Speaker 1: it on the show before, I don't just have one ETF.
Speaker 1: I haven't just picked an Australian ETF and been like
Speaker 1: wam bam thank you, ma'am. I have an Australian ETF
Speaker 1: and I have an International ETF to make sure because
Speaker 1: obviously I've purchased an ETF diversification immediately, because I've got
Speaker 1: access to so many different assets inside that share portfolio,
Speaker 1: right yeah. But then I have a second ETF, which
Speaker 1: is international. Not only is that well diversified because it's
Speaker 1: got lots of different shares in it and lots of
Speaker 1: different I guess industries. I have Australian versus International. So
Speaker 1: then I've kind of like double stacked my diversification. We
Speaker 1: love a double stack. Like tell me that double coated
Speaker 1: timtams aren't the best type.
Speaker 4: I mean they are exactly objectively objectively speaking, double coded
Speaker 4: timtams are the best.
Speaker 1: Therefore, double stacking our diversification obviously makes more sense. So
Speaker 1: not only have I diversified inside each ETF, I've also
Speaker 1: diversified so that if the Australian market's doing well, the
Speaker 1: international market might be a little bit more rocky. And
Speaker 1: if the international market's doing really well, maybe Australia isn't.
Speaker 1: So I've kind of balanced it out that if one
Speaker 1: ETF's before well, maybe the other isn't. And vice versa.
Speaker 4: Sure, does that make sense totally much.
Speaker 1: I love the double stack because it makes me feel
Speaker 1: really confident, and that's why maybe you would too. It's
Speaker 1: beautiful portfolio, double stacked, double coded.
Speaker 4: T Oh, that sounds delicious. Okay, is there anything else
Speaker 4: to keep in mind?
Speaker 1: One more? But I've actually jumped ahead and explained it
Speaker 1: to you already, and that is investing through managed funds,
Speaker 1: managed to counsel ETFs. Right, So, as we said before,
Speaker 1: a really simple way to diversify is to invest directly
Speaker 1: in something like in exchange traded fund, where not only
Speaker 1: is somebody else managing it, but they've created a basket
Speaker 1: of shares that gives you diversification immediately. Now the thing
Speaker 1: you have to be careful of here is while an
Speaker 1: ETF gives you diversification, it might be an industry specific ETF,
Speaker 1: and that's totally okay.
Speaker 4: Sure, But if you.
Speaker 1: Go beck and go all right, I really want to
Speaker 1: invest INTF and then you find a tech ETF that
Speaker 1: tickles your fancy and you go, I really want to
Speaker 1: purchase that, you need to remember that even though there
Speaker 1: are a number of companies inside that ETF, you know
Speaker 1: there might be thirty of them. That ETF is only
Speaker 1: giving you exposure to one industry, and that is tech,
Speaker 1: and you might go, okay, well, in that case, I
Speaker 1: might pick a couple of ETFs in different industries to
Speaker 1: make sure I've got diversification, because if Tech's not doing well,
Speaker 1: something else might be. Does that make sense?
Speaker 3: Yeah?
Speaker 4: Where is?
Speaker 1: The ETFs I've picked are not industry specific. And the
Speaker 1: reason I've done that is because I wanted to keep
Speaker 1: it simple, and sometimes the simplest things work, right. Yeah,
Speaker 1: I mean they're not double coated tim tams. But like
Speaker 1: when you're not, well, what do you want? Just buttered toast?
Speaker 4: Absolutely, it's tried. It's true.
Speaker 1: I'm going to want that for the rest of my life.
Speaker 1: And that's how I kind of see my investment portfolio.
Speaker 4: It's a good way to look at it.
Speaker 1: Actually, I really like buttered toast. You put like a
Speaker 1: little bit of salt on your buttered toast.
Speaker 4: I do, oh yes. After talking about eggs and timms
Speaker 4: and buttered toast, I'm I'm ravenous, but.
Speaker 1: I actually could go a double coated tim tam.
Speaker 4: Let's do it straight after this, all right? All right,
Speaker 4: all right, all right? Is there anything else, No, yes,
Speaker 4: maybe how much time have we got left? We've got
Speaker 4: a little bit of time left. I'm very proud of us, actually,
Speaker 4: all right.
Speaker 1: I'm always proud of us, Like we don't even have
Speaker 1: to do anything, and I'm proud of us. It's so good,
Speaker 1: Like did you exist today?
Speaker 2: Wow?
Speaker 1: Wasting time? This is so bad?
Speaker 2: Oh my?
Speaker 4: All right.
Speaker 1: So what I want you to do is keep an
Speaker 1: eye on your portfolio. So diversification really important, but it's
Speaker 1: not set and forget. As much as we want it
Speaker 1: to be boring and not that exciting when we're picking
Speaker 1: our investments, we do still want to keep an eye
Speaker 1: on it because as your investments rise or full, you
Speaker 1: could have more money in one asset class than when
Speaker 1: you started investing, and this could become less diversified. So
Speaker 1: an example of this is I I've recently rebalanced my
Speaker 1: investment portfolio. What does that mean? Don't worry. I'll do
Speaker 1: a whole episode on rebalancing. We have spoken about it
Speaker 1: on the podcast before. But essentially I sat down and
Speaker 1: I looked at my investment portfolio. I do have a
Speaker 1: lot of what we call satellite investments, which is investments
Speaker 1: sitting around these two main ETFs that I own. But
Speaker 1: what happened was one of my ETFs had performed significantly
Speaker 1: better than my other ETF, and it meant that instead
Speaker 1: of being fifty to fifty in ownership, which is what
Speaker 1: I started with, I was at like thirty seventy because
Speaker 1: of how well one had performed. Sure, so what are
Speaker 1: you do in that circumstance? What I did was I
Speaker 1: sold down some of the portfolio who had gotten up
Speaker 1: to that seventy percent, because I was like, well, you're
Speaker 1: doing well. What I'm gonna do is take some money
Speaker 1: off the table. We're not gonna take it all off
Speaker 1: the table. I'm not taking it out and putting it
Speaker 1: in my bank account. But I sold down some of
Speaker 1: the shares and put that money into my other ETF
Speaker 1: at fifty to fifty.
Speaker 4: Sure.
Speaker 1: And the reason I did that is not because the
Speaker 1: other one wasn't performing, because you might go v well,
Speaker 1: if the other one wasn't performing, why on earth did
Speaker 1: you put more cash into it. It's because the market
Speaker 1: was off and essentially that ETF was a little bit cheaper.
Speaker 1: So if something has done really well and it's performing
Speaker 1: really well, I'm going to take the profits and I'm
Speaker 1: going to tip them back into the ETF that right
Speaker 1: now I saw as a really good price to pay
Speaker 1: per share. Does that make sense? So that then later
Speaker 1: I'm still at fifty to fifty. Hopefully one of them
Speaker 1: tops up again, and I will rebalance and tip from
Speaker 1: one jug to the other so that we're always a
Speaker 1: bit even. But over time, yes, I'm tipping from one
Speaker 1: to the other. But they're still going up, aren't they.
Speaker 1: They're going up evenly though.
Speaker 4: Oh my god, it's really really smart.
Speaker 1: Actually, So that's my last point, because I think we're
Speaker 1: out of time.
Speaker 4: Okay, Oh my gosh, I think we made it.
Speaker 1: I think we made it, but like we also aren't
Speaker 1: the editors. So our podcast producer and our podcast editor,
Speaker 1: you know what, make half an hour? Thanks guys, thank you.
Speaker 1: Don't cut out any of the stuff about Tim Tams.
Speaker 4: We love you. Do what you gotta do, all right.
Speaker 1: I think it's exciting. So obviously before we go, just
Speaker 1: wanted to reiterate one, double coded Tim Tams are the
Speaker 1: superior Tim Tam. But two, it can actually be quite
Speaker 1: hard to find the right investments. Obviously, it could be
Speaker 1: as simple as picking too ETFs that makes sense for
Speaker 1: you and starting your journey there. But if you are
Speaker 1: really overwhelmed or you don't know what to do, definitely
Speaker 1: have a chat with a financial advisor or someone who
Speaker 1: can set you up. And you can be matched with
Speaker 1: a good financial advisor via my website, because look, I
Speaker 1: don't trust a lot of people, but I do trust
Speaker 1: my own crew. So if you would like to meet
Speaker 1: one of those delightful humans, head to my website and
Speaker 1: I can tee you up. It doesn't cost you anything.
Speaker 4: That's nice.
Speaker 1: I mean the advice will cost you something. It's not
Speaker 1: just free, but you know what I mean. I'm not
Speaker 1: gonna charge you to get advice from me. Let's go
Speaker 1: have a double coded tim tamp.
Speaker 4: Oh my god, let's go. All right, bye everyone Bye.
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