Hey team,
Happy holidays.
I hope you’re all getting a chance to spend some well-deserved downtime with loved ones this festive season after another weird and wonderful year. I won’t go into any major updates, knowing full well that most of you are panned out on the couch watching the cricket, taking in Sydney to Hobart…or taking a nap. But I hope you’re taking some meaningful time off where possible and wishing you all the very best for 2022.
Share market wrap
Merry Xmas from the S&P 500, which hit its 68th record close of the year, after a turbulent AF last month. Australian shares advanced to the highest level in more than a month on Christmas Eve in a shortened session that lifted all but one of the 11 share market sectors, reflecting a broad rally in one of the last trading days of the year. Bitcoin was also in a festive spirit crossing the USD$50k mark in time for Santa.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.56% higher than last Friday, on 7,744.70 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.58% higher than last week, at 4,725.79 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 4.10% higher than last week, at 15,653.37 points
Investment story of the week: Novonix Ltd (ASX: NVX)
NOVONIX is a battery materials and technology company, specifically for electric vehicles and grid energy storage. NVX shares have delivered the highest returns out of all the S&P/ASX 200 Index companies in the past year. During this time, the battery materials company has experienced an 8-fold increase in its share price. Now standing at a market capitalisation of over $4 billion, investors on the sidelines are trying to establish whether they will deliver the operations to support its lofty valuation. For context, the company recorded $5.23 million in revenue for the year ending 30 June 2021. Strong demand for electric vehicles is widely anticipated. However, Novonix will still need to prove it can carve out its place in the industry.
Money mistake of the week: Why timing the market is the biggest investing myth.
If you missed out on the last big asset take-off (Afterpay, we’re looking at you), there will ALWAYS be another. I chatted to Alex Barrat from Stake to bust some myths on investing. His advice? Finding a good investment isn’t a once in a lifetime opportunity – there are new ones every year. Just be patient and make strategic decisions to get yourself on the next one. Check out our full chat here.
Jargon Buster of the Week: Encumbered asset (Via Macquarie)
An item of value used as collateral or security for a loan, which has a registered interest against it, for example, a property for which you have a mortgage is an encumbered asset. An unencumbered asset is one without any debt or interest registered against it, such as property for which you have paid off the mortgage.
Smart Money upside #48
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
Individual; late 30’s, income ~$235k, total assets ~176k, savings $2k annually
Frustrations
Unclear on how to financially plan for the future, as an ex-partner managed this on their behalf historically. Lack of financial literacy and generally a poor saver.
What they wanted from us / the advice process
Understand property investing and how it can help achieve long-term financial goals. Have a plan – something clear and easy to follow. Set up a savings plan to fund an ideal lifestyle.
What success looks like for them
Having a financial plan, owning an investment property, owning investments in a portfolio,
a clear trajectory of where the investments are leading to, and enough money to maintain lifestyle.
What money strategy they were following before we went through the planning process
Savings in cash and sporadic investments with no strategy.
What money strategy they chose to pursue from our planning work
Structured banking system, investing over the long term in investment properties and a diversified share portfolio.
Key benefits of going through the process
Support from an adviser who can keep them accountable as well as provide the education and guidance they were after in order to create a plan.
Value of advice after all advice fees year one: $41,876
Year 20 upside after advice fees: $1,517,990
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 one of our clients had their first baby, so we’ve celebrated by providing a safe childbirth for 100 disadvantaged women in Kenya. This is 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:
I’m furiously working on a bunch of new events for the new year. In the meantime, 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 12pm
- How to use property equity to invest when your LVR is below 50%: Tuesday 25th January 12pm
- How to invest if you’re saving more than $5k monthly: Thursday 24th Feb 12pm
- Employer share plan tax hacks and mistakes to avoid: Thursday 10th Feb 12pm
In the News: The average Aussie spends a huge amount on Christmas
I love Christmas. For me, it’s a time of year where everything feels fun. The spirit can be contagious, and it’s easy to get swept up at the moment and go a little overboard. When it comes to your money choices and spending, if you get it really wrong, you can start the new year chasing your tail and paying the price for months to come. So how do you avoid having a financial hangover this Christmas season? Click here to read more.
Money Hack of the week: How does Bitcoin get its value?
Not going to lie… before talking to Joni, I was a bit of a Bitcoin novice. So, having this chat really blew my mind, especially when thinking about where Bitcoin gets its value. Take a listen to Joni and I discuss what underlies Bitcoin and how its value depends on the institutions and individual buyers themselves. Check out our full chat here.
Podcast from last week: #148 – How to make the most money from your employer share plan
This episode is a recording of a live event I did on how to make more money from your employer share plan.
We covered the different types of employee share plans, available some of the key rules and things to look out for how to take advantage of the opportunities that are created by your employee share plan and the things that you should be aware of to avoid some of the common mistakes that people make and how you can get more out of what’s there.
Apple
Spotify
Stitcher
Podbean
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.