Smart money weekly; inflation up, property purchasing noise, building an 8-figure business

Ben Nash

Hey team

Happy Monday.

In the news this week, the official ABS measure of consumer prices rose 0.8 per cent over the September quarter, with prices 3 per cent higher than a year previous. The quarterly rise was driven primarily by a jump in fuel (7.1 per cent) and new dwelling purchase (3.3 per cent) costs. This has raised a crucial question – are price pressures a temporary consequence of COVID-19-induced supply chain bottlenecks that are pushing up the cost of home building and petrol? Or will inflation prove more persistent and force the RBA to raise interest rates before its 2024 forward guidance? If you’re any type of homeowner, now is the time to have a pretty frank discussion with your adviser, bank or broker in preparation for the next couple of years.

Giving update of the week
This week we’ve had the privilege of starting work with a bunch of new clients, and we’ve celebrated by providing 100 underprivileged people in Africa with 365 days of access to clean, life-saving water. This is all 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 still have three more events to come this year. I will be covering money mistakes and dream home property purchasing. Check out the full list of events below and click through to register:

Event schedule and links to book here:
Avoid key money mistakes: Thursday 4th November 11:30 am – 12:30pm AEST
How to buy your $3m Bondi dream home: Thursday 18th November 12pm
What next after making your first million dollars?: Thursday 2nd December 12pm
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

Money Hack of the week: Why you don’t lose returns in ethical investing.
It’s the question on all our lips: Do you need to sacrifice your returns to be able to invest ethically? The answer is NO, and James Tayler from Ellerson Capital debunks this myth. We also talked about the social and environmental impact of the most popular tech companies today. Check out our full chat here.

Share market wrap
US stocks closed lower Wednesday, ending a string of gains for the equity benchmarks that have been mostly rising to all-time highs on the back of strong quarterly results from American companies. The ASX took this lead on Thursday and was also down. At the time of writing this, Bitcoin pulled back from its all-time high.
Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -1.0% lower than last Friday, on 7,639.10 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.10% higher than last week, at 4,596.42 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 1.88% higher than last week, on 15,448.12 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.70% lower than last week (Friday AEDT), at 7,249.47%
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 6,623.73 for the month, down 41.31% for the month to date

Investment story of the week: Boral Limited (ASX: BLD)
Founded in Australia, Boral Limited is a multinational company manufacturing and supplying building and construction materials. On Thursday, shares in the construction supplies company were being exchanged at $6.57, up 3.96%. During the first quarter of FY22 Boral experienced significant impacts from COVID-19 lockdowns. These impacts were reflected in concrete volumes declining 2% compared to the previous corresponding period. Meanwhile, where construction was halted, in NSW, volumes dropped by as much as 14%. However, quarry volumes managed to perform better compared to last year. The segment witnessed a 3% incline thanks to a lift in asphalt. Although, asphalt sales were on a lower margin basis due to the completion of higher-margin project work in the prior year. Despite this, the market is showing optimism for the Boral share price last week. In a nutshell, investors are still feeling overall quite optimistic about the company.

Money mistake of the week: Making property buying a burden.
Don’t you hate the burden of paperwork, applications, negotiations and fine print when investing in property? Kevin and Jenny were stuck, not knowing where to start with investing. Now, with PIvot Wealth’s help, we’ve narrowed down the 6 or 7 options they were considering to a combination that suits them best. Check out our full chat here.

Jargon Buster of the Week: Investment Horizon (Via Canstar)
Investment horizon simply refers to how long you plan to invest your money in a particular security or portfolio.

Podcast from last week:  #140 w. Diem Fuggersberger – How to build an eight-figure business from scratch
In this episode, I talked to Diem Fuggersberger. Diem is the Founder and CEO for Coco and Lucas kitchen, a food wholesaler, pre-packaged meals provider for families, children, and do a bunch of work with plant-based alternatives to cracking business supply to over 900 supermarkets across the country.
We talk about her business journey, how she went from an immigrant with no money to work with her husband and her eight-figure plus business, uh, then losing it all in the GFC and how she bounced back, plant her business, why she thinks it’s important to give back as part of business and some of the money lessons that she’s learned along that journey. It’s really amazing!


Smart Money upside #41
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.

Individual, late 30’s; household income ~ 190k; total assets ~ 230k; savings ~ $4k annually

Not knowing what to do with my money

What they wanted from us / the advice process
Understand how to get the most out of my savings, and how to build wealth for the future

What success looks like for them
Having a solid plan in place, knowing where my money is going and expectations around future outcomes

What money strategy they were following before we went through the planning process
No clear strategy in place – not doing anything with my money, not even in a high-interest account

What money strategy they choose to pursue from our planning work
•  Create a banking structure that makes it easy to save
•  Set aside a “rainy day” fund
•  invest available cash into a diversified equity portfolio
•  Save for an investment property deposit
•  Super invested in a cost-effective product with access to quality investments that align with their investment philosophy
•  Take advantage of employer-provided benefits

Key benefits of going through the process
• Having the confidence to pull the trigger on investment strategies with 100% confidence it’s the right move
• Support in assessing options through long-term financial modelling
• Delivering clarity and visibility of overall financial direction
• Saving time – all the grunt work is completed to make informed decisions

Value of advice after all advice fees year one: $32,820
Year 20 upside after advice fees: $892,406

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.

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.