Smart money weekly; Cyber attacks, Tesla reports records, money for children’s education and the importance of financial wellbeing.

Ben Nash
Hey team,

Happy Monday.

Over in the UK, Liz Truss announced her resignation this week. She was in the top job for only 44 days which is the shortest period for any UK Prime Minister. Their inflation has also hit a 40-year high. It’s thought that Boris is now back in prime position to reclaim the prime ministership. Will be interesting to see how this plays out.

Domestically, we saw another ransom message this week relating to a cyber attack. Medibank confirmed the legitimacy of this attack just a short time after the Optus fiasco. Maybe it’s time to review your passwords and data security.

Upcoming events:
Buying property can be a big decision to make. We’re running a session soon on how to buy property like a pro. Jump in and learn the tips and tricks around purchasing a home or investment. Check out all our upcoming events below.

Share market wrap
Australian shares have slipped further after the latest employment numbers showed job creation had slowed over September. However, it’s to be noted that the nation’s jobless rate has stayed steady at around a 50-year low. The Australian dollar weakened further after the jobs figures came out. Thursday saw the end of a two-day rally on Wall Street which then set the tone for the end of week trade. Nearly all industry sectors on the benchmark ASX 200 index fell aside from energy stocks, which were boosted by strong quarterly production reports from major players. All three major US stock indices finished in the red and interest rates on US Government bonds resumed their rise, with the benchmark 10-year Treasury yield hitting a 14-year high.

Key share market numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week – 0.9% lower than last Friday at 6,892 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week – 0.7% lower than last week at 3,665.78 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week – 1.19% lower than last week at 10,614.84 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.35% higher than last week (Friday AEDT) at 6,943.91 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,040.78 for the month, down – 2.70% for the month to date.

Investment story of the week: Tesla Inc (NASDAQ: TSLA)
It has been a big reporting week in the US. Electric vehicle company, Tesla released their results for the third quarter with some new records. They realised revenue for the quarter of $US21.45 billion. Deliveries reached 343,000 over the quarter thanks to the recent uptake in the Chinese market. Third quarter profit also doubled from a year ago to $US3.3 billion because of higher vehicle sales. However, price rises concerning raw materials, as well as spending on new factories and battery production tightened Tesla’s profit margins. Similarly to the rest of the NASDAQ, Tesla is still in the red for the year. They are down 48% year to date at the time of writing. Definitely, one to keep an eye on though as Elon always seems to have some tricks up his sleeve.

Smart Money upside #92
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, late 40’s; household income ~ $180k; total assets ~ $800k; savings ~ $15k annually.

Lack of knowledge when it comes to their finances, not knowing what to do with their money and the fear of making a mistake.

What they wanted from us / the advice process
Pay down their mortgage faster, secure an investment property, and a solid plan for their future that helps support their kid’s education as well as their retirement goals.

What success looks like for them
Having their investments aligned with their values, an overall feeling of security and confidence when it comes to their finances, the ability to maintain their current lifestyle but take holidays more regularly and education planning for the kids.

What money strategy they were following before we went through the planning process
No investing, only cash savings and following the barefoot investor approach, separating bank accounts for different reasons.

What money strategy they chose to pursue from our planning work
Clear banking structure with separate bank accounts for each expense type, a clear strategy for what to do with their future cash surplus, access to a diversified investment portfolio that incorporated benefits for their children and maximising their super contributions.

Key benefits of going through the process
Clear and easy-to-follow banking structure that makes it easy to track and save, access to diversified investment recommendations that will generate passive income in the future, a clear plan and investment to support the kids in the future, switching to a low-cost superfund with access to a range of quality passive investment options.

Value of advice after all advice fees year one: $9k
Year 20 upside after advice fees: $5m

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.

Money hack of the week: How to gain courage for the toughest situations.
You cannot wait for courage. It is like a muscle – it doesn’t just get stronger on its own. Courage needs to be practised, so you take on even bigger fears. I talked with Dr Amy Silver about the concept of courage and how we can build it by taking action. Check out the full chat here.

Money mistake of the week: How your finances can affect your well-being.
Checking in on our well-being is critical for our health. But, how does our financial well-being play into the balance of our lives? I sat down for a chat with wellbeing expert Troy Morgan to discuss the trends he’s been seeing in wellbeing, especially in regard to finance. We discussed how your financial health ties in with your physical, emotional, career and social well-being. Check out the full chat here.

Jargon Buster of the Week: Introductory rate (via Mozo)
Introductory rates are discounted interest rates offered by lenders for an introductory period to make their home loan offers look more attractive to borrowers. Also known as a ‘honeymoon rate’, an introductory rate typically lasts for the first six to twelve months of the loan, before reverting to a higher ongoing rate.

Podcast from last week:  #260 How to buy property the smart way in 2022
This episode is a recording of an online event I did on How to buy property the smart way in 2022. I talked through the key things that people should be thinking about making smart decisions today. Some of the tips, hacks, and strategies that can make your life easier when it comes to property and what you should be looking out for.

Also, got a lot of really interactive Q&A from people that were asking about some of the basics around their property decision-making, particularly with what’s going on at the moment with interest rates and the market. It’s really massive one for people with a lot of fear and indecision, but also gives a lot of opportunities.

This episode is perfect for anyone who wants to build wealth through property, for those who want to cut through the noise by figuring out what they need to know and all the questions that they need to ask themselves to make the best property decisions.

Helping people with this stuff is our jam, so if you want to chat about how to make your money success easier, you can book an intro call with us here.

Be awesome,


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