Smart money weekly; Electric vehicle mixed messages, $314k super mistake, crypto wobbles, & Get Money Smart online event this week

Ben Nash

Hey team,

Happy Monday.

I know that many of you own or aspire to drive an electric vehicle one day. And the recent ranging prices at the fuel bowser have only increased this appetite for many. A drop in the fuel excise coinciding with the increasing price of a key ingredient in batteries could mean the price of electric vehicles (EVs) will not drop as quickly as renewable energy proponents hope.

What is more interesting is the subsidies that some governments are providing. Last month Queensland introduced a $3,000 rebate for new EVs that cost up to $58,000. The cap on the rebate is lower than in other states, but it’s clear that the government doesn’t want to subsidise people “who can easily afford well-off vehicles”. We’ve seen rebates across Europe of up to $10,000, which would really move the dial for many more as far as getting into an EV. But the question still looms about whether EVs are really that good for the environment?

In the news

Inflation in Australia, Federal budget cash splash, and first home buyer relief via The Morning Show
This week I got chatting to Kylie and Larry about where the economy is at today, and what rising supply chain costs mean for inflation and interest rates in Australia. We also discuss the US strategic oil release and what it means for petrol costs at the bowser. And of course, there’s the federal budget cash splash and measures to help first home buyers get into the market faster. Check out the full clip here.

The $314k super mistake you could easily be making
There’s an easy mistake people make when choosing a super fund and it could cost the average Aussie $314,000 – or even more. Click here to get the full scoop in

Upcoming events:
We’ve got a stack of events coming up across the next few months. From saving, to building a second income, it’s all here for you. Click through to register and join live:

Event schedule and links to book here:

Share market wrap
After a soft week, Australian shares opened higher on Friday, with Wall Street ending modestly higher on Thursday’s close after a volatile session amid heightened concerns about the prospect of rising interest rates.

Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -0.1% lower than last Friday, on 7,780.00 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week -0.88% lower than last week, at 4,500.21 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -2.39 % lower than last week, at 14,531.81 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.37% higher than last week (Friday AEDT), at 7,551.81
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking the market value of Bitcoin and Ethereum) is currently at 4,783.44 for the month, down -3.94% for the month to date

Investment story of the week: Openn Negotiation (ASX:OPN)
Openn Negotiation is a property technology company. Its cloud-based Openn platform allows for real estate auctions to take place in real time and for private treaty offers to be submitted in a transparent manner. So far, the platform has overseen more than $2 billion in property sales and is used by more than 3,300 real estate agents throughout Australia and New Zealand (only trained agents can list properties on Openn). In the past year, the company share price has been modestly growing, returning 15%. However, if we look at the share price since the beginning of 2022, its price has rocketed up by approximately 75%. With everyone having more flexible working arrangements and no indication of this slowing down, Openn can continue to use this to its advantage and can continue to grow throughout 2022 and beyond.

Smart Money upside #63

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 50’s, combined income ~$140k, total assets ~$2.4m, saving~ $11k annually

A clear path to retirement, ideally to finish work in the next 5 years. Confidence that they have the funds to do this and live a comfortable life outside of a major city. Had embarked on downsizing family home, but unclear on how to manage surplus funds.

What they wanted from us / the advice process

  • Would like to plan out retirement in the next 12 months
  • Ability to provide assistance to children
  • Understanding of the options to cut tax bill
  • Understanding of the options available to them in terms of strategy and a plan to execute

What success looks like for them

  • Investments growing faster than the cost of living
  • Comfortable retirement
  • Being smart around government benefits
  • Feeling financially secure

What money strategy they were following before we went through the planning process
No clear strategy, holding large amounts of cash and some term deposit investments.

What money strategy do they choose to pursue from our planning work
Putting in place a strategy to retire in 1 year, maximising super contributions, setting up a new investment account and investing excess cash above emergency fund into shares.

Key benefits of going through the process
Clear strategy around managing super and utilising the tax benefits of concessional contributions with a plan to retire early. Setting up a plan for building wealth outside super by opening an investment account with a clear path on when and where to invest.

Value of advice after all advice fees year one: $24k
Year 20 upside after advice fees: $1.3m

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
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.

Money Hack of the week: How to ensure a fund has an ethical portfolio.
Not long ago, I sat down with James Tayler of Ellerston Capital, who ran me through the basics of ESG screening. We discussed how an ethical fund determines what is included in its portfolio and what gets the cut. Check out our full chat here.

Money mistake of the week: Not taking full advantage of an employee investment plan.
Does your workplace offer employee investment plans or other benefits? Nicola sought PIvot Wealth’s help to understand the investment options offered by her employer and was surprised to learn the tricks of strategic, long-term investing through her employer. Check out our full chat here.

Jargon Buster of the Week: Fixed income (via Morgan Stanley)
Bonds, bills, and interest‐bearing notes pay a specific interest rate over the life of a loan.

Podcast from last week: #163 Smart Money Challenge 4 – Segregate & Automate saving
This is the fourth session for the Pivot Smart Money Challenge, where I’m talking all about automating your banking. So through the last few sessions, we’ve been working on creating the last budget that you need to prioritize your spending so that you can spend as much as you want on the day to day while still hitting your savings targets. If you haven’t already checked those out, I would strongly encourage you to go back and catch up before pushing on with this one because this session is all about translating that great savings plan into savings results.

So we’ll talk about how to automate your banking and some behavioural psychology stuff that can sometimes stand in the way between us and the things that we really want. I’ll give you some of the hacks that I found working from helping a bunch of people and give you the practical steps to implement it and make it happen.

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.