COVID vaccine highs and lows have been driving markets this week, and while investors (like everyone else) are likely hanging out for the end of what’s been a below average year there have been some interesting movers…
Share market wrap
The ASX was flat again this week, finishing 0.3% higher with vaccine highs were balanced against some profit taking from recent highs on Wall Street.
Key market stats:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.8% higher than last Friday, on 6,886 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 0.84% lower than last Friday, on 3,663 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.68% lower than last Friday, on 12,378 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.5% lower than last Friday, at 110.74
Share story of the week: Walt Disney Co (NYSE:DIS)
Who would have thought Mickey Mouse could print so much cash? Disney shares are up 14.71% this week off the back of them releasing stats showing their streaming service Disney+ is closing in on 100m subscribers. One to watch for 2021 for sure.
Money hacks of the week
Buying property in a pandemic: Off the back of an event I spoke at last week I got a bunch of questions about my top property tips to be smart and make money with property during COVID. Short video chatting through my top property tips here.
Podcast from last week: How to build a second income investing
Online event from last week: How to buy property the smart way in 2021
Last week I presented the third live online event in the ‘How to Money’ series I’m putting on in partnership with Raiz Invest and General Assembly, How to buy property the smart way in 2021. I cover property basics and how to use property to create serious wealth. Check out the recording of the session here.
Money mistake of the week – Mindset: waiting for the tomorrow that never comes
I’ve recently been chatting with someone that reminded me just how much our money mindset can work against us. This person had fallen into a trap I’ve seen a bunch of times, and sadly one that can seriously sabotage your chances at true financial success – but an easy one to fall into.
This person (like many of us) had a bunch of personal stuff going on. From a financial perspective, they were not where they wanted to be, but the problem was that they’d convinced themselves that this personal stuff was a barrier to them getting on top of their money.
The thing is, there is no ‘right’ time to start being strategic and getting on top of your money. We can ALWAYS find a reason to put things off to the tomorrow that never comes.
When people get on the front foot with their money, almost all of them kick themselves for not starting sooner. But you can’t take back the past. The best time to start was always 10 years ago. But the second best time is now. Don’t let your thinking sabotage your chances of success.
Weekly jargon buster: Franked dividends (via Investopedia)
A franked dividend is paid with a tax credit attached and is designed to eliminate the issue of double taxation of dividends for investors. … Dividends are paid by companies to their shareholders out of profits, usually every six months.
Advice upside
Because people don’t often talk about the full ins and outs of their money, it’s hard to learn lessons from hearing what good and bad choices other people make. This story from one of our clients to help you take your money game to the next level.
Numbers/Background
Couple 30’s and 40’s dual engineers (our favourites) working in tech dev, household income $525k, saving $220k annually before ($255k after), Home $1.7m, $500k shares $120k cash
Frustrations when first coming to see us
Strong savings but no tax efficiency, no real investment income given portfolio skewed to tech
What they wanted from us / the advice process
Financial security and being smarter with tax, building investment income.
What an awesome result looked like for them
to eliminate dependency on employment income within 10 years, reduce volatility in their investments.
What money strategy they were following when we started working together
Saving against offset, running highly concentrated investment portfolio with employer shares.
What money strategy they chose to pursue from our planning work
Upgrade home, but investment property, debt recycling.
Key benefits of going through the process
$50k annual tax deduction from debt recycling, building passive income.
Total quantifiable value to be received in year one from plan after all advice fees (i.e. tax savings, increased savings rate, growth on investments): $67,481, reflecting a 294% return on investment
Disclaimer:
This information is of a general nature and has been prepared without taking account of your personal objectives, financial situation or needs. Before acting on the information, you should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. We expressly recommend that you seek advice from a financial advisor.
