It has truly been a remarkable and shocking week seeing the floods unfold across the east coast. Our thoughts are with the families that are recovering from the devastation. I sat down this week with the team at The Today Show to discuss what this means for insurance premiums so you can understand how this might impact you in the future. Catch the full story here.
We also chatted about fuel prices and you have probably all noticed that the price at the bowser is pretty outrageous this week. This is simply an effect of the ongoing Russia v. Ukraine crisis after the US banned Russian oil imports this week. Ultimately this is going to push the cost of living up, particularly for those of you in regional Australia. I’ll keep you updated on this will be set to unfold across the next few months.
Smart Money upside #59
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.
Individual; late 30’s, income ~$250k, total assets ~$300k, savings~ $10k annually
Not knowing what to do with savings & having a plan or goal in mind. Paying too much tax and fees that could be avoided.
What they wanted from us / the advice process
Have a plan – something clear and easy to follow, a clear tax minimisation strategy, confidence that super is invested effectively, a clear savings plan that maintains my lifestyle.
What success looks like for them
Purchasing a property, having a better understanding of investments and tax strategies, and getting a clear plan to achieve their goals
What money strategy they were following before we went through the planning process
What money strategy do they choose to pursue from our planning work
Reinvest with shares and property, readjust my superannuation and get a solid banking structure in place which will help me achieve my goals
Key benefits of going through the process
Education, understanding of a banking structure, and seeing that there are ethical investment options out there that may be more beneficial for me than what I currently have
Value of advice after all advice fees year one: $21,483
Year 20 upside after advice fees: $1,689,631
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
At Pivot we’re passionate about the benefits of having a solid education in all important areas of life (money included), so we’ve celebrated by providing 100 children with access to life-changing e-learning education and training. 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.
We have a huge new series of events coming up over the next few months. From saving to building a second income, it’s all here for you. Even if you can’t make the times, click through to register and we’ll send over a recording:
Event schedule and links to book here:
- How to invest when the share market is crashing – March 24, 12.30pm – 1.30pm
- GA Event: How to Build Second Income Investing – April 6, 12.30pm – 1.30pm
- Buy Property like a Pro w. Your Empire & Pivot Wealth – April 7, 2022 12.30pm – 1.30pm
- Get money smart – April 14, 12.30pm – 1.30pm
- Money mistakes to avoid – May 5, 12.30pm – 1.30pm
- GA Event: Money Mindset Hacks – May 11, 3:00pm – 4:00pm
- How to build a second income investing – May 26, 12.30pm – 1.30pm
- GA Event: How to Cut Your Tax Bill Before EOFY – June 8, 12:30pm – 1:30pm
- How to buy your dream home without a crippling mortgage – June 16, 12.30pm – 1.30pm
- Cryptocurrency investing 101 – July 7, 12.30pm – 1.30pm
- How to save more money faster – July 28, 12.30pm – 1.30pm
- Buy property the smart way in 2022 – August 18, 12.30pm – 1.30pm
Money Hack of the week: How to classify different types of cryptocurrencies.
How many classifications of cryptocurrencies do you think there are? If you thought of just coins and NFTs, you’d be wrong. Cryptocurrency whiz, Joni Pirovich, took me through EIGHT types of crypto classifications and what they all mean. Check out our full chat here.
Share market wrap
Australian shares were trading flat on Friday with falls in the technology and energy sectors offsetting gains in materials and financial stocks. Over in the US equities found some life on Thursday as oil and other commodities saw a pullback. At the time of writing this, crypto is likely up thanks to Biden’s executive order solidifying the stance that the asset class is the real deal.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -0.8% lower than last Friday, on 7,338.10 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week -1.91% lower than last week, at 4,259.52 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -2.43 % lower than last week, at 13,129.96 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week -2.19% lower than last week (Friday AEDT), at 7,099.09
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 4,217.07 for the month, down -6.12% for the month to date
Investment story of the week: Myer Holdings Ltd (ASX: MYR)
The Myer Holdings Ltd (ASX: MYR) share price was on fire on Thursday morning. The department store operator’s shares are up 21% to 49.5 cents after investors responded positively to its half-year results release. Myer delivered solid sales and profit growth during the half. This allowed the Myer Board to declare its first dividend since FY 2017. With Myer up 75% over the last year, the trajectory is trending in the right direction.
Money mistake of the week: The biggest mistake investors are making.
What’s the BIGGEST mistake you can make when it comes to investing? I wanted to hear Alex Barrat’s take on the worse mistakes made while investing. At the top of the list was thinking too short-term, and Alex has first-hand experience that all investors need to hear. Check out our full chat here.
Jargon Buster of the Week: Managed Accounts (Morgan Canstar)
An account owned by a single investor, managed by a professional Money Manager. Typically, these required larger investments but more recently, new technologies have allowed fewer high-net-worth investors to access Managed Accounts.
In the news: How to use your current property equity to buy another house
Millions of Aussies are sitting on a “gold mine” without realising it – and by accessing it they can make themselves even richer. To find out how click through to read my take on this in news.com.au.
Podcast from last week: #159 How to be smarter with money
This episode is a live recording session on ideas on how to get smarter with your money. It’s all about the key frameworks that you need to understand in setting your financial foundations, how to understand investing and a sort of broad brushstroke of what drives money success. As well as key questions that will help you to get the results that you want with your money.
Also jumped into a bunch of Q & A about a whole heap of random things like financial investment decisions.
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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