Hey team,
Happy harmony day 
This week we’ve been continuing the property deep dive, chatting with a bunch of experts around the opportunities in the property market now. I’ve also been talking about property mistakes that create money setbacks, and how you can avoid them.
We’re kicking off the ‘Spill the Proper-tea’ series this week with the first event coming up Wednesday – Buying Property in a Post-Covid Australia – check out the details and book here.
Share market wrap
Tech was down and industrials up this week in a bit of a role reversal, with profit-taking on the agenda for a bunch of the big market players.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.5% higher than last Friday, on 7,063.10 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 1.49% lower than last Friday, on 3,974.54 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 1.06% lower than last Friday, on 13,138.72 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.83% higher than last Friday, at 118.50.
Investment story of the week
Crown Resorts (ASX: CWN): Before you ask, yes it’s that Crown. The broad-chinned spawn of Aussie business mogul’s Kerry Packer has himself spawned some interest. It could have potentially been with the 271.3 metre tall tower built on the Sydney foreshore, or it could have something to do with business. US-based private equity investment firm ‘Blackstone’ has offered a whopping $8b to buy Crown, driving a 19.6% share price uplift this week.
Money mistake of the week: When $80k > $500k
Last week I interviewed Chris Gray on the podcast and we kicked off talking around property buying mistakes. Chris spoke through how he’s seen executives on huge incomes struggle to build the same wealth as admin workers on below the average income. Video here.
Weekly jargon buster – Bear (via Morgan Stanley)
An investor who expects stock prices to fall.
Money hack of the week: Property vs. Shares – getting the balance right
Last week I did some writing for New.com.au about the difference between property vs shares when you invest, and how to get the balance right. Full story here.
Podcast from last week: #93 Property Pro series w. Theo Angelopoulos
Last week I spoke to Theo Angelopoulos, a mortgage broker who’s been helping people buy property for two decades across a bunch of property market cycles. We spoke through his take on the property market, how hot it is in Sydney in particular for investors. A couple of tips on where people go wrong when they come into negotiating on a property. We spend a fair bit of time talking about how to actually secure the property that you want once you know what your strategy is as well as some of the risks with the moves to the more regional area.
Smart Money upside #14 – Buying the dream home, getting on top of RSU’s, family planning
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
Couple late 20’s, household income $200k, wanting to set the right foundations for their money plan, working in tech w. RSU income, wanting to start a family and create time out of the workforce.
Frustrations when first coming to see us
Getting smashed with tax bills that weren’t anticipated, dream home seeming unaffordable, no investment plan.
What they wanted from us / the advice process
Forecasting of RSU tax, achievable plan to buy a family home, investment ideas to build another income stream.
What money strategy they were following when we started working together
Investing via employer share scheme, paying down investment property debt.
What money strategy they chose to pursue our planning work
Building investment income via a diversified share portfolio, Brisveagas relocation to dream home, creating the option to have three rugrats.
Key benefits of going through the process
Realistic family planning and confidence to pull the trigger on property purchase and relocation, building another income to move towards financial security.
Year 1 upside after advice fees: $2,009
Year 20 upside after advice fees: $546,232
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,
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 to this email 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. Financial services guide.