Smart money weekly; identifying mistakes in buying property and taking responsibility for cutting your own tax bill

Ben Nash

Hey Team,

Happy Monday.

This week there have been some interesting finance updates from CBA. The nation’s biggest home lender is warning that interest rates will rise before the end of next year, joining two other major banks who are tipping the Reserve Bank to be forced to move earlier than it expects. Before any changes take place, make sure you check in with your adviser and broker to work out your financial position and if these changes do take place, what it could mean to you.

Money Hack of the week: Take Responsibility for cutting your own tax bill
It’s the end of the financial year so tax time is well and truly upon us. Who’s really on the hook when it comes to minimising your ATO donation? Pivot Wealth client Clare and I discuss whether your accountant could be holding you back from earning opportunities. Who should be the proactive driver in your business relationship? You or them? Moving your money effectively will help you move forward  so, take a listen to my chat with Clare here:

Share market wrap
This week saw the Australian share market reach another record high, off the back of better than expected employment data and the US continuing to pump money into financial markets through its bond-buying program.

Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week – 0.50% lower than last Friday, on 7,578.60 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.47% higher than last week (Friday AEDT), at 4,266.49 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 1.93% higher than last week (Friday AEDT), on 14,369.71 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.50% higher than last week (Friday AEDT), at 7118.08
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at – 10.98% for the month, down 3,573.77% from last week

Investment story of the week: Redbubble Ltd (ASX: RBL)
Redbubble Ltd operates a global online marketplace connecting independent artists with customers. The marketplace business delivered some huge growth numbers in 2020 with COVID-19 sending global consumers online. It’s back in the spotlight this week with a 7.86% gain across the last week. With customers craving personalisation and a desire to directly support emerging artists, we’ll continue to track this one.

Money mistake of the week: The biggest mistakes in property buying.
How many open homes have you been to while searching for the perfect property to buy? 20? 50?
In this Property Pro Miniseries episode, Theo and I talk about the biggest mistakes people make when purchasing a property. His number tip? Be firm with your offer. Let agents know what you’re willing to spend, but include a buffer before you reach your pre-approved limit. To hear more of Theo’s advice, listen to our chat here.

In the News
If you have a normal job and want to get rich in Australia, investing is the key to making it happen. But if you’re early on in your investment journey, getting started can seem overwhelming (not to mention expensive).
It can also be confusing to figure out what platform or tool you should be using to invest your hard-earned money. Thankfully there are more and more apps and technology solutions that can help. Enter micro-investing. I downloaded my top tips for out the full story here.

Jargon Buster of the Week: PLAIN VANILLA (via Morgan Stanley)
A simple, straightforward financial product without any unusual characteristics.

Podcast from last week: #119 Pivot client story w. Maddie – “I’ve seen financial advisers before, but knew there was a better way”
In this episode, I chat with one of our lovely clients, Maddie who downloads how the experience that she had talking to a more traditional financial advisor, turned her away from financial advice for a bunch of years that she came to later regret some of the financial decision-making, hacks that she learned through the financial advice process.
And also, how she thinks is best to tackle finding the right advisor or the right person or team of people to help you with your money.Apple
PodbeanGiving 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.Smart Money upside #23

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.Numbers/Background

Individual, household income ~140k, total assets- $1.3m, savings- 12k  annually

Not having the right people to speak to. He’s read lots of books and articles, but wants to make sure he is making the most of his money to build long-term wealth through investments, whilst minimising tax. Right now he isn’t sure he’s on the right path.

What they wanted from us / the advice process
He wants to have a plan – something clear and easy to follow to help him get the money outcomes he wants. To learn how to leverage tax and investments to get ahead faster.What money strategy they were following before we went through the planning process

He’s read the Barefoot Investor so has set up the bucket banking system.What money strategy they chose to pursue from our planning work

He still wants to retain the Seer shares – despite our best intentions and attempts to convince him otherwise.

Key benefits of going through the process
Will be to have a clear plan and knowledge that he’s speaking to the “right” people who are unbiased.

Value of advice after all advice fees year one: $6,371
Year 20 upside after advice fees: $276,628


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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