Hey team
Happy Monday.
A lot went on this week in the world of cryptocurrency and its evolution to more mainstream adoption., Commonwealth Bank will allow customers to buy and sell crypto through its app, in the first move of its kind by a major Australian bank. Customers will be able to buy up to 10 crypto assets including bitcoin, Ethereum and Litecoin. The bank will conduct a pilot in the next few weeks, ahead of a wider launch in 2022. Further to this, BetaShares Crypto Innovators ETF (ASX: CRYP) attracted $8 million worth of trades within 15 minutes of its ASX debut at 10.30 am on Thursday. As mentioned a few weeks ago, with these ETF’s you aren’t directly buying crypto. It exposes investors to the growth potential of the crypto economy, by providing investment exposure to a portfolio of companies within the crypto world. It’s important to know the difference between these.
Giving update of the week
Last week we started working with an amazing business owner kicking a heap of goals and doing some great things in the community at the same time. Our conversations have reminded me of the power of business to change the lives of not only the people that work with any given business but also the broader community and the world at large. So to celebrate, we’ve provided one year of business training and an attached microloan for 20 women in Malawi. This is 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.
Upcoming events:
We still have three more events to come this year. I will be covering money mistakes and dream home property purchasing. Check out the full list of events below and click through to register:
Event schedule and links to book here:
How to buy your $3m Bondi dream home: Thursday 18th November 12pm
What next after making your first million dollars?: Thursday 2nd December 12pm
Why you need a financial adviser if you make more than $250k p.a: Thursday 13th January 12pm
How to use property equity to invest when your LVR is below 50%: Tuesday 25th January 12pm
How to invest if you’re saving more than $5k monthly: Thursday 24th Feb 12pm
Employer share plan tax hacks and mistakes to avoid: Thursday 10th Feb 12pm
Money Hack of the week: How to avoid being paralysed by financial decisions.
We have conversations with people every day and the number one risk I see is the risk of doing nothing. Seeing your savings pot grow can be satisfying, but at what cost. When faced with financial decisions, people tend to fall into avoidant behaviours and will become fearful of making a decision either way. So, how do you stop this? In this chat with Emma, she tells me about how she felt before joining Pivot Wealth and how she used to be fearful of her finances. Check out our full chat here.
Share market wrap
Australian shares rose late last week after Wall Street closed at new record highs as the US Federal Reserve confirmed it would start winding back some of its COVID-era stimulus this month. In crypto news, ASX debuted the first listed investment fund linked to cryptocurrency markets; ASX: CRYP. The BetaShares Crypto Innovators ETF (ASX: CRYP) began trading on the ASX at 10.30 am on Thursday at a debut price of $11.23 per unit.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.8% higher than last Friday, on 7,777.20 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 2.36% higher than last week, at 4,680.06 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 4.03% higher than last week, at 15,940.31 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.53% higher than last week (Friday AEDT), at 7,279.91%
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 6,725.25 for the month, down -0.90% for the month to date
Investment story of the week: NIB Holdings Limited (ASX: NIB)
nib Group is an Australian health care fund, established in the NSW Hunter Region initially to provide health insurance for workers at the BHP Steelworks. It has since grown into a national and international operation. On Thursday, nib’s shares jumped 4.6 per cent to lead among blue chips after the insurer announced its September-quarter revenue rose 8.5 per cent from the previous year. July-September revenue climbed to $669.5 million. This was driven by modest increases in policyholder numbers in Australia and New Zealand and premium increases. Also potentially giving the NIB share price a boost was its claims update. The release shows that estimated ARHI claims fell 2.4% over the prior corresponding period to $442.5 million.
Money mistake of the week: Not overriding your fears to be more courageous.
Watch out for that hot stovetop! Fear can be good for immediate threats, but too much fear, without proper consideration, can set us back in the long term. “I’ll fail”, “People will laugh at me”, and “They won’t like me” are too often used as excuses not to take action. Dr Amy Silver and I talked about how we go wrong with fear and how we can change our relationship with fear and get closer to our long-term goals. Check out our full chat here.
Jargon Buster of the Week: BULL (Via Morgan Stanley)
An investor who expects prices to rise.
Podcast from last week: #141 w. David Dugan – How to build intergenerational wealth
In this episode of the How to be Successful with Money podcast, I chat with David Dougan. He is the Founder and Head Coach at an amazing business community called Abundance Global, where they help small businesses to create better businesses so that they can build intergenerational wealth.
We unpack some of the key tips and mistakes that people make business owners in particular, but also people with their finances more generally the top three drivers that David talks about that people need to do to create the business outcomes that they wanted, the business financial outcomes that they want. Then, we talk a bit about the good Doctor’s journey, some of the things that he learned along the way and tips.
Dr David Dugan has spent over 20 years mentoring high-performance individuals. He served in the Navy as a Commander and was awarded the Humanitarian Overseas Medal for his work during the 2004 Tsunami. His innate desire to serve led him to be the founder of ‘Abundance Global’ which supports small and medium businesses and entrepreneurs from around the world.
Abundance Global has been a two times Telstra Business Awards finalist and our clients have experienced over 253% net profit increase, 6 years running. David operates from the ‘Business Owner Joy’ model which inspires clients to not only achieve success in their business and personal lives but in turn, ensuring everyone is giving back as much as possible to their community.
Apple
Spotify
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Podbean
Smart Money upside #42
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.
Numbers/Background
Individual, early 40’s; household income ~ 111k; total assets ~ 660k; savings ~ $24k annually
Frustrations
Holding a large cash balance, with no real direction as to what to do. He felt that he was suffering from analysis paralysis.
What they wanted from us / the advice process
Primarily a structured plan and timeline to ensure that proper use of his funds was taken into account and that he was building wealth in a comprehensive and tax-effective way.
What success looks like for them
Primarily a property under his belt. In addition to this, a diversified share portfolio to produce passive income. At some stage down the track and into the future, another property is likely to be on the cards for him and he flagged this as a goal.
What money strategy they were following before we went through the planning process
Build-in cash, and all savings continue to go to cash. He really had no strategy when he engaged Pivot Wealth.
What money strategy they choose to pursue from our planning work
A multi-pronged investment strategy, including property, share portfolio, cash build, and a review of superannuation.
Key benefits of going through the process
Clarity, certainty, a plan that he could follow and one that was easy to follow, as well as a plan that really achieves his goals.
Value of advice after all advice fees year one: $25,079
Year 20 upside after advice fees: $1,005,105
If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.
Be awesome,
Ben
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.
Disclaimer:
I know you’re smarter than someone that would need me to write the words that come next, but our compliance peeps are real hard-asses so here we go… This information is not personal advice, poetry, or a map to where Jimmy Hoffa is buried. It may only be regarded as general advice, and definitely shouldn’t be considered something worthy of inclusion for Donna Hay’s next cookbook or the Archibald prize. This is actually just an email communication that has been sent to a bunch of people and doesn’t even have your name on it. Your personal objectives, needs or financial situation have not been considered when preparing this email, but I want you to know that I have spent a lot of time thinking about the Venn diagram intersection of poetry, landscaping, and essential oils – if you’re fascinated by this same phenomenon please reply so we can compare notes. You should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs, and if necessary, seek advice before acting on it. You should also consider other people when getting on and off public transport, smiling more, eating healthy, and listening to your mum when she tells you that you’ve been working too hard. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Where the information relates to a hilarious joke I’ve made, you should consider belly laughing deeply. Worth noting also that past performance is not a reliable indicator of future performance when it comes to investments, and definitely not when it comes to the Wallabies. Financial services guide. All jokes aside and just to be clear, this information may only be regarded as general advice. That is, your personal objectives, needs or financial situations were not considered when preparing it. You should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs, and if necessary, seek advice before acting on it. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Past performance is not a reliable indicator of future performance.