Smart money weekly; ASX bloodbath + buying opportunities, Crown takeover, smart moves in your 30’s & RSU planning

Ben Nash

Hey team,

Happy Monday.

What a week it has been. The markets saw a steep decline at the start of the week on the back of some declines across the pond. As they say, when the USA sneezes, Australia catches a cold. The states increased their official interest rate by 75 basis points to help combat high inflation and it is expected that the UK will soon raise rates as well.

There has been a lot of talks week about a possible global recession. However, not everything is doom and gloom. When markets fall it can be a great time to invest. It is important to note for those continuing down their investment path or even for those just starting to invest, that volatile times can result in long-term opportunities for savvy and consistent investors.

In the news: Sneaky way to cut your investment tax bill by 17 per cent
Many Aussies pay investment tax on top of their income tax and it’s a whopping amount – but there is a way to make sure it’s a lot less. Click here to read more.

Smart money moves in your 30’s
Over the last week we’ve put out a content series around how to make smart money moves in your 30’s. You can check it out here.
Upcoming events:
Most people now have their house in order when it comes to EOFY tax strategies and it is true what they say; the early bird gets the worm. So, it’s time to start thinking about the year ahead. We have an upcoming session on investing in tax-smart for the new financial year. Be sure to jump on and listen. We also have a load of sessions coming up on everything from crypto to the FIRE principles. Check them out below.

Event schedule and links to book here:

Share market wrap
The share market has taken somewhat of a beating this past week. The ASX is down 6.1 per cent for the week (at time of writing) on worries that rapid interest rises could cause a recession in North America. We saw one of the worst days the markets have seen since the pandemic was announced back in 2020 as markets followed global declines. However, where the market declines, opportunities may lie.

Key sharemarket numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -8% lower than last Friday, at 6,658.40 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week -7.7% lower than last week, at 3,666.77 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -7.75 % lower than last week, at 10,646.10points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week -5.71% lower than last week (Friday AEDT) at 7,044.98 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,082.96 for the month, down -36.65% for the month to date

Investment story of the week: Crown Resorts Ltd (ASX: CWN)
The Federal Court has approved US private equity giant Blackstone’s $8.9 billion takeover of troubled casino operator Crown Resorts Ltd (ASX: CWN). The deal is set to be finalised on June 24 when the money between Blackstone and Crown will change hands. The takeover offer was priced at $13.10 a share via a scheme of arrangement and 99.75% of shareholders voted in favour for the takeover. The deal will mean Crown Resorts will become a private company and no longer be required to report to the ASX. Blackstone Inc. (NYSE: BX) is the world’s second-biggest private equity fund. It owns the MGM Grand, Mandalay Bay and Bellagio hotels and casinos in Las Vegas. The acquisition is also set to deliver billionaire James Packer a $3.36 billion payday in exchange for his 37 per cent stake in the company, which he has been involved with since 1999.

Smart Money upside #74
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 is from one of our clients to help you take your money game to the next level.

Couple; early 30’s with joint income of approximately $250K. Total assets worth $1.3mil with some debt held on properties. Saving about $15K annually

Lack of confidence in execution and felt that the process of purchasing a property was stressful. Never seemed to have complete conviction in their purchases.

What they wanted from us / the advice process
Wanted a plan to purchase another investment property as well as a more stable plan around their existing property, tax, superannuation and RSUs.

What success looks like for them
Having another investment property under their belt and having the confidence knowing that they are maximising every opportunity. They also wanted to be on track for a comfortable retirement.

What money strategy they were following before we went through the planning process
Investing in single equities with no game plan around their RSUs. No clear banking structure or process for buying their next property.

What money strategy they choose to pursue from our planning work
Set up a clear and easy-to-follow banking structure and started investing excess cash into their share portfolio. They also put in place a game plan for selling RSUs to arrange for their new property purchase and we completed a full rundown on their super which resulted in switching to a low-cost superfund with access to a range of quality investment options that we could add to for tax savings.

Key benefits of going through the process
Review of existing share portfolio and a switch to a more appropriate risk-oriented portfolio. Provided a clear plan that will help them purchase their next investment property as well as implement a clear and easy-to-follow banking structure that makes it easy for them to track and save. Their new super fund will also provide access to a low-cost, risk-appropriate fund with quality investment options.

Value of advice after all advice fees year one: $36k
Year 20 upside after advice fees: $3m

If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.

Giving update of the week
This week we’ve been diving into a big internal tech project which highlighted to us the importance of digital skills in a rapidly evolving economy, so we wanted to give back to help others build their digital skills. Through our partnership with B1G1, we’ve supported 365 days of digital skills training to aboriginal communities around Australia. This is all part of our ongoing commitment to make a difference in the lives of our clients and simultaneously make an impact on our world through our partnership with B1G1 (Buy 1 Give 1). You can check out more information about our giving here.

Money hack of the week: How to know when to trust a financial advisor.
The results are in! TRUST is one of the biggest things that prevent people from working with a financial advisor. Christine, Walter and I discussed what keeps people from taking a leap of faith with financial advice and why finding an advisor you trust is the first step in your successful money journey. Check out the chat here

Money mistake of the week: Making money choices without thinking though the lifestyle implications
You’ve got to be as clear about your lifestyle priorities as freshly cleaned glass. In this chat, I talked to Pivot Wealth client Luke about his thoughts on prioritising and getting clear on his financial and lifestyle goals. By fine-tuning his buckets and getting rid of some expensive liabilities, Luke manages to save for his family’s future and put aside some money to travel now that the world is starting to open up again.  Check out the chat here.

Jargon Buster of the Week: Trading Platforms (via Canstar)
A trading platform is software a broker or financial institution uses to make trades online.

Podcast from last week:  #174 w. Siobhan McTiernan – Money mindset hacks and how to plan

In this episode, I chat to Siobhan McTiernan, who is actually our Head Relationship Manager at Pivot although she comes from a non-finance background.

She’s now a year into the role, having spoken to literally hundreds of people about the ins and outs of their money not coming from that space.

I talked about some of the lessons that she learned, the observations, the mistakes that she saw people make, and some of her tips that she thinks are critical if you’re going down this path to get on top of your money, to actually get the results that you want, as well as her experience with the property buyer’s agent and how that came together for an investment property.

Be awesome,


PS: If you want a hand to get on the front foot with your money in 2021, check out our 45-minute one-on-one sessions here. We’re donating 100% of the money raised to charity, so you can up your money game and do something good on the planet at the same time.

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