We’re getting really close to the end of the year and silly season is in full swing. The Pivot office only has one more working week before taking a break for some downtime after a tricky COVID disrupted year 😅
This time of year a heap of people get thinking about their money, and if you play your cards right it you can leverage your new year’s motivational boost to get more out of your money in the year ahead.
Our best of the week here.
Share market wrap
The Australian sharemarket dipped on Friday as renewed concerns about the economic impact of the omicron strain dented appetite for risk assets ahead of key US inflation data and a busy central bank schedule next week. All three major US equity benchmarks closed higher with investors relieved that November’s consumer prices gains met expectations, easing pressure on the Federal Reserve on any rate hikes.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.7% higher than last Friday, on 7,667.90 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.70% higher than last week, at 4,667.45 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.58% lower than last week, at 15,517.37 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 2.70% higher than last week (Friday AEDT), at 7,321.26
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 5,533.47 for the month, down -15.10% for the month to date
Investment story of the week: Neuren Pharmaceuticals Ltd (ASX:NEU)
Neuren Pharmaceuticals Limited, a biopharmaceutical company, develops drugs for the treatment of neurological disorders. Its lead product is trofinetide, which is in clinical trials for the treatment of Rett syndrome. The company also develops other drugs for the treatment of Phelan-McDermid, Angelman, and Pitt Hopkins syndromes. The NEU share price soared to yearly highs this week on the back of positive clinical trial results. Neuren reported positive results from recent trials into the use of trofinetide to treat young women with Rett syndrome. Trofinetide has been granted fast-track status and orphan drug designation for Rett syndrome. The Neuren Pharmaceuticals share price has skyrocketed 164% this year to date. It has also gained 170% over the past 12 months.
Smart Money upside #47
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.
Numbers/Background
Couple; early 30’s, income combined ~$300k, total assets ~$14m, savings ~ $180k annually, w. family home and w. 2 kids.
Frustrations
Time – busy, parents, 2 kids, mental capacity – will power. Feeling overwhelmed with options given their position. Uncertain how to use our employer shares to maximise family position
What they wanted from us / the advice process
A plan on how to utilise employer shares – liquidate or hold. Understand implications of either choice and ultimately what happens next.
What success looks like for them
Overall feeling of confidence – strong grasp of strategy, know what they are doing, start own business in the next 12 months.
What money strategy they were following before we went through the planning process
Holding majority of wealth in employer shares hoping they continue to grow and opting out of liquidity events. Saving where possible and an overall feeling of asset heavy but cash flow tight.
What money strategy they chose to pursue from our planning work
Clear plan on exiting the company at liquidity points, utilising the proceeds to debt recycle, invest in a diversified portfolio and use a robust banking structure to allow us to not feel stretched while on parental leave and starting a new business.
Key benefits of going through the process
Clarity around the employer shares peace and having a clear exit strategy
Value of advice after all advice fees year one: $175,023
Year 20 upside after advice fees: $952,034
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.
Upcoming events:
We’re working hard on a bunch of events for the new year, so stay tuned for updates. In meantime check out the events that are coming up in 2022 and click through to register:
Event schedule and links to book here:
In the News: A foolproof money plan
Money Hack of the week: Being clear on your ideal future.
If you’re not passionate about your future, you won’t be motivated to invest in it. Chatting to Pivot Wealth client Maddie, we discussed her previous experience with financial advisors and how they had traditional expectations for Maddie’s future, rather than considering Maddie’s personal goals and values. Now that she knows her options, Maddie feels more empowered to choose her own future.
Check out our full chat here.
Money mistake of the week: Not being clear on when to get help with your finances.
What does it take to finally decide “I need some help with managing my finances”? Caroline Bowler told me about her experience as an expat without much of a strong credit history in Australia and when she knew it was time to assess all her financial management options.
Check out our full chat here.
Jargon Buster of the Week: Credit score (Via Macquarie)
A credit score is a numeric expression that indicates how credit worthy someone is. The score is created using an analysis of a person’s credit history as provided by past creditors. The score is held by a credit bureau.
Podcast from last week: #146 August Investment Market Wrap Up
This episode is the August monthly investment market update, where I chat through what’s going on in the world. What’s going on in markets.
Some of the key things we’ve been seeing over the last month and the things you should be thinking about to get the most. Check it out on your channel of preference here:
Be awesome,
Ben
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.
Disclaimer:
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.
