Smart money weekly; climate change targets, employer share event, where the money comes from in a solid financial plan

Ben Nash

Hey team,

Happy Monday.

There’s been a lot of news on climate change across last week ahead of major global talks in Glasgow starting in a few weeks, where countries will be asked how they are planning to keep to the Paris climate change agreement. In summary, Australia will need to act faster to cut emissions, or our financial system and many companies (and, therefore, consumers and investors), are at risk. Reasons behind this include; foreign investors and lenders see more risk in companies and countries with higher greenhouse gas emissions. The EU is also putting on a carbon border tariff, where goods produced by countries that don’t have a carbon price will be hit with an extra charge once they are imported. I’ll keep you updated on any major changes here as well as investment impacts.

Giving update of the week
This week a couple of our amazing clients settled on their first investment property, and we’ve celebrated by providing 365 days of shelter to underprivileged people in India, as 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 know many of you reading along are able to take advantage of employer shares. If you’re struggling with your ESOP, ESPP, RSU’s, or various other option schemes, then click the link below to register. Check out the full list of events below:

Event schedule and links to book here:
How to maximise your employer share plan: Wednesday 27th October 12pm
Avoid key money mistakes: Thursday 4th November 11:30 am – 12:30 pm AEST
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 trade money management stress for peace of mind.
To many, the idea of a low-maintenance financial plan and even a sporadic holiday sounds like a fantasy. But, during my chat with Pivot Wealth client Emma, she told me how her finances are now managed like clockwork with help from our team. Check out our full chat here.

Share market wrap
Wall Street banks announced blockbuster quarterly profits this week from a record wave of transactions that shows no signs of ebbing. Australian shares closed at a three-week high on Friday, with strong performances from the materials and tech sectors buoying the market through the back half of the week. Bitcoin traders are back with a vengeance as the cryptocurrency approaches its all-time high and demand jumps for bullish contracts across crypto exchanges.
Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.78% higher than last Friday, on 7,674.20 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 0.72% higher than last week, at 4,438.26 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.86% higher than last week, on 14,823.43 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.91% higher than last week (Friday AEDT), at 7,207.71%
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 6,145.14 for the month, up 31.10% for the month to date

Investment story of the week: HUB24 Ltd (ASX: HUB)
HUB24 Ltd (ASX: HUB) is an investment and superannuation platform that offers a comprehensive range of investment options for all types of investors. The HUB24  share price was in exceptionally strong form on Thursday after revealing it had added $3 billion in investor funds over the three months, doubling its share of the $900 billion wealth platform market from 2.1 percent to 4.3 percent. The investment platform provider’s shares were up as much as 11% and reached a record high of $31.83 at one stage. According to the release, the company achieved record first-quarter funds under administration (FUA) net inflows of $3 billion. This brought its total FUA to $63.2 billion, which is an increase of 229.1% over the prior corresponding period (pcp).

Money mistake of the week: Not understanding the tangible outcomes of financial planning.
When people start exploring financial advice, they tend to make assumptions around what they’ll see or expect will be delivered. I sat down with Pivot Wealth clients Kevin and Jenny to understand what tangible outcomes they have seen since starting their financial planning journey. We discuss everything that’s changed, from doing a full review of their spending to automating their finances and saving on their super. Check out our full chat here.

Jargon Buster of the Week: Term Deposit (Via Canstar)
Term deposits are cash investments held at financial institutions – your money is invested for an agreed interest rate over a fixed amount of time (or term). Term deposits are considered very low risk and are offered by banks, building societies, credit unions, and more.

Podcast from last week:  #138 w. Sarah Davidson – How to create a global empire

In this episode, I chat to Sarah Davidson, who’s the Founder & Host, Seize the Yay Podcast, Matcha Maidens, and Matcha & milk bar.

She talks about how an unexpected stomach bug from a trip that she took overseas, turned into a sprawling global empire.

Some of the tips that she learned along the way, and her tips and hacks for being on top of your finances as a business owner. Also, for your individual personal financial management, some of the lessons that she learned along the way, and her top tips to do better.

Sarah is a lawyer turned funtrepreneur, author, and host of the Seize the Yay podcast


Smart Money upside #39
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.

Expat couple, late 30’s and early 40’s; household income ~ 285k; total assets ~ 520k; savings ~ $8k annually

Lack of knowledge, and lack of a long-term financial plan. Lack of effective savings discipline and ex-pat complexities

What they wanted from us / the advice process
Accountability to take action on financial plans. Have a long-term financial plan in place, to be able to purchase a home, look after the kids financially and retire comfortably.

What success looks like for them
Long-term security, having their own home, being able to support their children

What money strategy they were following before we went through the planning process
Accumulating money in cash, utilising 100% of the client’s salary packaging to assist with paying rent

What money strategy they choose to pursue from our planning work
Purchase an investment property in the next 2-3 years, with the view of using this asset to buy a family home down the line

Key benefits of going through the process
A clear long-term game plan, accountability to take action

Value of advice after all advice fees year one: $45,408
Year 20 upside after advice fees: $471,625

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,


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.

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.