Smart money weekly; federal budget sneak peek, panic property buying, and how to invest after being burnt

Ben Nash

Hey Team,

Happy Monday.

This week we’ve been seeing a bunch of leaks from the upcoming May 11 Federal Budget which is always an exciting time for a money nerd like me. This year the budget is rightly focused on initiatives to support women and families, and one big announcement this week that will help many in the Pivot community is the announcement around childcare.

The government is planning to scratch the annual childcare caps, the income limit for families, and increase rebate percentages for all, but most substantially for families with more than one child in daycare. This is going to save most Aussies into the thousands, and for many of the people we work with into the tens of thousands – and will no doubt lead to the re-jigging of many families’ return to work plans.

Share market wrap
Another flat week for markets, with some of the good market data coming through being overshadowed by the rapidly deteriorating COVID situation in India. Closer to home, ongoing drama with the China Australia political situation was another drag on market results.

Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.5% lower than last Friday, on 7,290.70 points.
  • The US ‘S&P500’ (Top 500 shares in America) finished the week 0.08% lower than last Friday, on 4,181.17 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.6176% lower than last Friday, on 13,962.68 points.
  • The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.69% lower than last Friday, at 123.61

Investment story of the week
The Trade Desk (NASDAQ: TDD): The Trade Desk is a media buying platform that’s built for the open internet. Basically they help people buy advertising, and clearly this space is getting some serious attention. Their share price is up over 2,600% in the last five years and over 155% in the last year alone. Seems that having everyone working from their COVID bunkers has more and more companies wanting to get a slice of our screen time.

Jargon Buster of the WeekPrivate Equity (via Morgan Stanley): Equity capital invested in a private company (i.e., non-PLC) that has demonstrated operational excellence, sound long-term strategies and attractive growth potential.

Money mistake of the week: Property panic buying 🤒 💰 💥
I was chatting recently with property expert buyer’s agent Kellie Landrey from Scoutable about the biggest mistake she’s seeing today. Kellie spoke about how our psychology gets the better of us and can lead us to making panic property decisions. Check out the full clip here.

Money hack of the week: How to get started investing after being burnt
An unfortunately too common situation we see is where people get burnt from bad investments or advice. It can be costly, but a consequence that’s just as impactful is how this can stop you from investing more in the future. I spoke through this with a client that had been burnt in the past, and she talks through how she pushed through the fear of getting it wrong again and then immediately got some serious runs on the board. I unpacked the conversation here.

Podcast from last week: #106 Pivot client story w. Danny & Nikki – Building a rock-solid financial foundation with total confidence
In this episode, I chat to Danny and Nikki, the two of our amazing clients that recently just gone through the process over the last few months and we talk about their experience with the advice, how they tackle to get started with some of their money journey and some of the big decision that they’re making, some of the things that surprise them and about the advice process. They talk a bit about, they’re already good savers but how a simple sort of budget savings planner was an absolute game-changer for them. We covered how they planned around their family and that alongside some of the investment side choices that they made as well as some of the things that I supposed tips where they think that having support around your decisions is a driver of better results.

Giving update of the week
This week as I’ve kicked off the sustainable/ethical investing series on the How to be successful with money podcast I’ve been thinking a lot about what’s happening on the planet and how we can have a positive impact. We’ve celebrated the time given by the amazing speakers we’ve had on the show by furthering our contribution to protecting Australia’s rainforests by protecting a further 500 square metres of rainforest to bring our total amount of conserved rainforest to 1,000 square metres. If you want to learn more about how you can have a positive impact on our planet by following the next few weeks on the podcast.  You can check out more information about our giving here.

Smart Money upside #19 – Leveraging investment property to buy family home and taking maternity leave with confidence
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 from one of our clients to help you take your money game to the next level.

Couple early 30’s, household income ~$320k, saving $70k annually, investment property ~$500k with $300k mortgage, $100k cash  and $150k super, no shares.

Had money in multiple locations and in multiple assets. They wanted to have a game plan which would set the course for what to do with their money over the next several years. They felt like they were not maximising opportunities with their mortgage in particular, and are very keen on the idea of buying a home within the next three years.

What they wanted from us / the advice process
Direction, confidence, and strategic plan which would lay out a roadmap for them to achieve their goals which include buying a home, whilst trying to keep their IP or potentially buy another investment property, and whilst maintaining as much money as possible in the share market.

What money strategy they were following before we went through the planning process
Saving in cash in an offset, minimal super contributions.

What money strategy they chose to pursue from our planning work
Owning a home, Mrs taking a year’s worth of maternity leave with one baby while maintaining the ability to maintain a higher level of investments.

Key benefits of going through the process
Clarity; confidence; a robust strategy; and a structure which will allow them to implement the strategy.

Value of advice after all advice fees year one: $1
Year 20 upside after advice fees: $1,442,850

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.


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