Smart money weekly; crypto wallet safety, windfall woes, and creating passive income

Ben Nash

Hey team

Happy Monday.

A lot has sent the market into a spin this week. With the new Omicron variant on our shores and borders across Australia shutting again, the ASX has taken a hit. To top it off, across the shores the Federal Reserve Chairman, Jerome Powell indicated that inflation is no longer ‘transitory’. This sent US stocks sliding across the week as inflation woes continued. Back in property, markets are broadly speaking still on the up however the interesting news came on Thursday that property investor applications are up and owner/occupier and first home buyer applications are down. This could be a signal that a lot of paper rich individuals are now seeing this as a time to exercise their wealth.

Giving update of the week
This week we’ve had the privilege of starting work with a bunch of new clients, and we’ve celebrated by providing 100 underprivileged people in Africa with 365 days of access to clean, life-saving water. 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).

Upcoming events:
That is it for events in 2021, but don’t forget to sign up to our new list of events in 2022. If there’s anything that you’re keen for me to tackle in the new year, simply respond to this email and I’ll pop it on this list. Check out the full list of events that are coming up and click through to register:

Event schedule and links to book here:
Why you need a financial adviser if you make more than $250k p.a: Thursday 13th January 12 pm
How to use property equity to invest when your LVR is below 50%: Tuesday 25th January 12 pm
How to invest if you’re saving more than $5k monthly: Thursday 24th Feb 12 pm
Employer share plan tax hacks and mistakes to avoid: Thursday 10th Feb 12 pm

In the News: How to make $41,000 a year with a ‘passive income’
Having an income from investments is the key to not being forced to work forever. If you’re smart about how you invest, you can build another income stream that will ultimately replace your salary so you get paid without having to lift a finger. Now that’s not to say that when you get there you’ll actually retire, but it does give you options.  Click here to read more.

Money Hack of the week: What should you do after receiving a large sum of money?
Whether you’ve received a bonus, won the lotto or in unfortunate circumstances obtained an inheritance, coming into money can be daunting if you don’t know how to manage it. I had a chat with Sarah, a client of Pivot Wealth, about how she felt before getting us on her side. After coming into some money, she was uncertain about how to make her money work for itself. Check out our full chat here.

Share market wrap
US stocks closed sharply lower on Tuesday after Jerome Powell told lawmakers it might be appropriate for policymakers to consider winding down monthly asset purchases more quickly than planned. The S&P/ASX 200 ended the day 0.1 per cent lower on Thursday, retracing a morning decline that initially took the benchmark nearly 1 per cent below Wednesday’s closing price in a day marked by steep falls for tech shares. In metaverse news, recent record sales include; Republic Realm, a firm that develops real estate in the metaverse, paid $4.3 million for land in Sandbox. paid around $2.5 million for land in Decentraland’s Fashion District.

Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -0.8% lower than last Friday, on 7543.60 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week -1.86% lower than last week, at 4,577.10 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -1.80% lower than last week, at 15,381.32 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week -2.47% higher than last week (Friday AEDT), at 7,129.21
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 6,435.52 for the month, down -1.26% for the month to date

Investment story of the week: Autosports Group Limited (ASX:ASG)
Autosports Group Limited (ASG) is a retail automotive industry that focuses on the sale of new and used motor vehicles, distribution of finance and insurance products on behalf of retail financiers and automotive insurers, sale of aftermarket products and spare parts, motor vehicle servicing and collision repair services. The Group’s operations consist of 42 franchised dealerships selling new and used prestige and luxury motor vehicles, 3 used motor vehicle outlets, focused primarily on the sale of used prestige and luxury motor vehicles and 5 specialist prestige motor vehicle collision repair facilities. ASG is up over 50% in the last 12 months, despite the ongoing struggles throughout Covid-19 that all companies faced. In the Chairman’s report on 30 November, the key takeaway was around the organic growth of $211m driven by strong demand particularly in new vehicle revenue which grew by 28.8% across the whole business. This led to a sharp increase in the share price throughout the week. With the company executing on their planned acquisitions and continued presence around Australia, there is definitely room for more growth in 2022.

Money mistake of the week: Not protecting your cryptocurrency from hackers?
On a scale of 1 to 10, how sure are you about the safety of your crypto wallet? Caroline Bowler, CEO of BTC Markets, chatted with me about buying cryptocurrency safely in Australia. From finding a trustworthy exchange to self-custody of your wallet, we discussed everything you need to consider. Check out our full chat here.

Jargon Buster of the Week: Construction loan (Via Macquarie)
A loan that funds the construction or renovation of a property. The funds are released to the borrower in stages in line with the development of the property. This allows the borrower access to the funds as they need them so the borrower does not accrue interest on the entire loan until the whole amount of the loan has been released.

Podcast from last week:  #144 w. Chris Bates – Property and mortgage market update
In this episode, I chat with Chris Bates. Chris is a mate of mine. He’s an ex Financial Planner and Mortgage Broker at Wealthful, which is a company that helps people make smarter property decisions and better mortgage decisions.

We talked about Chris’s take on the current property market and mortgage market today. What do you think of the recent price rises? How people can afford their dream home, some of the mortgage frustrations and mistakes that people make as well as what a mortgage broker actually does and how you can choose one that will deliver it.

Chris Bates is the founder of Wealthful, an ex-Financial Adviser of 13 years and Mortgage Broker for the past 8 years. Chris guides higher-income young couples and families to make great property and finance decisions. Chris was ranked 9th in MPA top 100 awards in Australia and settled over $180m of mortgages in 2021FY.


Smart Money upside #46
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, income ~$360K, total assets ~600k and RSU’s, savings $34k annually

Uncertainty on RSUs and tax implications, lack of clarity for overall money path, overwhelm with options resulting in analysis paralysis

What they wanted from us / the advice process
A clear strategy and a structure that can be flexible when needed. Assistance in getting clarity and deciphering goals for both now and the long term

What success looks like for them
Being confident in decisions and not having any sense of dread come tax time. To know they have a strategy in place that is working.

What money strategy they were following before we went through the planning process
Retaining all RSUs, purchasing single equity on an Adhoc basis and storing the bulk of surplus funds in our bank accounts

What money strategy do they choose to pursue from our planning work
Deprioritised purchasing a family home across the short term and using current assets to help purchase a $1.2m investment property. Then invest in a diversified portfolio.

Key benefits of going through the process
An adaptive plan, that doesn’t feel restrictive. Clarity as a couple and also how they will achieve this.

Value of advice after all advice fees year one: $49,417
Year 20 upside after advice fees: $2,079,524

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.