This week I’ve shifted gears on the podcast and have been interviewing some Pivot Wealth clients about their money journey, how the planning process changed what they were doing with their money and some of the things that surprised them about financial advice. We also discussed knitting addictions and the most creative investment strategy I’ve seen in the 20 years I’ve been learning about personal finance. Check out the two most recent stories here.
I’m also going to be presenting the next event in our Property series with Raiz Home Ownership and General Assembly this Thursday on How to Buy Your First Property. Check out the details and book your place here.
Share market wrap
Australian and international markets held onto the strong gains from last week and continued to rise, driven by the continued COVID vaccine rollout and the stats showing now over 25% of people in the US have now received the COVID vaccine.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.9% higher than last Friday, on 7,325.80 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 1.48% higher than last Friday, on 4,185.47 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 1.40% higher than last Friday, on 14,052.34 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 1.61% higher than last Friday, at 124.44
Investment story of the week
Coinbase (Nasdaq: COIN): This cryptocurrency platform underwent its initial public offering (IPO) this week in the US at an eye-watering USD$110 billion valuations. Coinbase is the largest crypto exchange covering 11% of all crypto trades and has over 56 million users worldwide. After a valuation creeps from initial estimates around USD$65 billion to the eventual listing value of USD$110 billion, the shares ended the week over 10% down. Many expect the Coinbase listing to drive a heap of other Blue Chip crypto players closer to the listing. With the huge increase in attention on the crypto market in recent times, one to watch.
Jargon Buster of the Week
Index (via Canstar): Index: An index measures a market or section of a market and is calculated from the prices of selected stocks. Eg. The ASX200, the S&P/ASX200 Health Care Index
Money mistake of the week: Guilty spending
It’s easy to fall into the nasty habit of guilty spending. Because your money goals are so big and can seem so daunting, you think you need to push super hard with your saving and sacrifice your lifestyle today to have any chance of getting where you want to be. In this clip from the How to be Successful with Money Podcast, one of the Pivot Wealth clients Karim talks about how he overcame guilty spending and his tips on how you can find balance between enjoying your life today AND achieving your money goals at the rate you want. Check out Karim’s story here.
Money hack of the week: How to buy your first property
Buying your first home is key to getting onto the property ladder and setting up your financial future. But, it’s not easy… There are so many conflicting messages and hidden agendas that it’s hard to know who to listen to, or who to trust. However, you can make it happen if you know the rules of the game. This week I’m running a money education event with the legends at General Assembly and Raiz Home Ownership where I’ll cover the key steps in buying process, how to get into the market, and how to reduce risk when you buy – and the other things you need to know to enter the market with confidence. Register here.
Podcast from last week: #104 Pivot Client Story with Clare – How to confidently build assets outside your business after being burnt
In this episode, I talk to one of our amazing clients, Clare Sheng. She is a cracking business owner with her business, The Fitting Room on Edward which basically dominates the market for custom alterations on clothing and suits in Brisbane.
We talk a bit about Clare’s journey with financial advice, some of the things that surprised her along the way. We chat about how Clare had a big shift around the business, how she could actually leverage it to create investments in assets, outside of the business, how she built the confidence or broke through the fear of taking action when it comes to investing to get started and build a bunch of investments and make it make a bit of cash along the way. As well as some of, I suppose the things that Clare thinks is important for people if you’re looking at getting help with your money, we had a bit of a laugh about Clare’s knitting addiction as well. Check it out on your podcast platform of choice here
Giving update of the week
Last week I got in trouble with Pivot Wealth’s amazing Practice Manager Maryanne for making these newsletters too business heavy, and she suggested I include an update on our business giving that we do in partnership with B1G1 (Buy One, Give One). So I’ve committed to including a small slot in this weekly note going forward.
For anyone that hasn’t been following these updates for a while, before a potential client joins Pivot Wealth we run a money education session “Money Breakthrough Session” that we charge a small fee for and donate the money to charity. We started doing these in the height of COVID to support people struggling through the pandemic, but we were able to have a pretty solid impact so we’ve kept them going.
Some of the results to date:
- Over $33k raised
- Built five houses for disadvantaged families in India
- Provided 29,565 days of access to water to people in Asia and Africa
- Given 20,440 days of access to education to underprivileged people in India
- Given over 400 days of access to business training to women in Malawi
You can check out more information about our giving here.
Smart Money upside #17 – Getting into forever home
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.
Single female early 40’s, Household income ~$160k, saving $25k annually, investment property ~$700k with $500k mortgage and $160k super, no shares.
Not having a plan or strategy in place. Needing to pay in additional tax annually and accountant not helping. IP negatively geared and outlay holding back other asset-building strategies. No clear plan-has heaps of bank accounts and a basic structure around this. No plan on the investing front.
What they wanted from us / the advice process
A clear plan and strategy, getting into forever home, the pathway to a comfortable retirement.
What money strategy they were following before we went through the planning process
Building savings in offset and making some extra super contributions
What money strategy they chose to pursue from our planning work
Sell the IP and purchase an apartment to live in, regular share investments, cranking super to provide for retirement.
Key benefits of going through the process
Clear plan to achieve financial security, peace of mind that it will happen, asset uplift from property and share investments.
Value of advice after all advice fees year one: $31,359
Year 20 upside after advice fees: $356,861
If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.
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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