Hey team,
Happy Monday.
Before we get into the content for this week I wanted to ask for your help. I’m incredibly proud to have been nominated for inclusion in Financial Standard’s list of the 50 most influential financial advisers in Australia but I NEED YOUR HELP. The list is decided by voting which is super competitive. The voting is now open for the Power50 list, and I’d love your help to make the cut by voting for me through this link.
A bit of news this week coming from our neighbours in Southeast Asia. Tensions are rising higher between China and Taiwan. The US has agreed to hold trade talks with the small island nation covering labour, agriculture, technology and the environment. This comes following Beijing’s extensive military drills this month aimed to intimidate the country. Everyone is keeping a close eye on this as further escalation will surely impact markets.
Housing markets seem to be on a downward trend both here and internationally. Home sales fell 6% in July in the US but some data released on Thursday showed the US jobs market was still strong. Domestically, prices and listings have begun to decline with some people feeling the pinch of higher interest rates.
Earnings season is also in full swing now with numerous companies releasing their data to the public.
In the news: Common money mistake too many 20-somethings make
Too many Aussie 20-somethings are ignoring this crucial thing – and it’s costing them thousands of dollars in the long run. Read the full article here to start taking control of your future.
Upcoming events:
How do you take advantage of market crashes? Join us for a session next week on investing smarter when the market is heading on a downwards trajectory. Check out the other events coming up as well below.
Event schedule and links to book here:
- Invest smarter when the market is crashing – August 24, 12.30pm – 1.30pm
- How to Be Smarter With Money Through Your Career – Sept 1, 11am – 12pm
- Money and investing hacks – September 14, 12.30pm – 1.30pm
- How to maximise your employer share plan – September 29, 12.30pm
- How to Adult: Financing 101 – October 11, 12pm – 1pm
- How to FIRE without sacrificing your lifestyle – October 12, 12.30pm – 1.30pm
- How to build a second income investing – October 20, 12.30pm
- How to buy property like a pro – November 10, 12.30pm
Share market wrap
The markets still have some instability present, but it looks like things are starting to ease. The S&P/ASX200 over the last five days, has gained 0.59%, but is down 4.46% for the previous year to date (at time of writing). Wall Street also provided some gains for the end of the week which is expected to continue to flow onto the Australian market.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.9% higher than last Friday at 7,358.60 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.41% higher than last week at 4,283.74 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.77% higher than last week at 12,965.34 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.99% higher than last week (Friday AEDT) at 7,541.85 points.
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,640.69 for the month, up 1.05% for the month to date.
Investment story of the week: Saudi Aramco (Tadawal: 2222)
Saudi Aramco is the largest oil company in the world. They recently released their quarterly report which stated a 90% increase in profit now $48billion for the quarter. The profit from the oil company, which is owned almost entirely by the Saudi Arabian government, shows the immense benefit some have received from the energy crisis. This is thought to be one of the largest quarterly profits listed from any public company in history. Time will tell what impact will this continue to have on the rest of the market.
Smart Money upside #83
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 ~$205k, total assets ~$850k, savings~ $10k annually
Frustrations
Feeling like the system knows so much more than me. Not knowing what to do to grow it/optimise it. I have shares but I’m nervous to take sell them and invest in a property (finding the right one).
What they wanted from us / the advice process
To really understand areas that Pivot Wealth can help and what kind of advice I’m lUnderstand what’s possible beyond saving to optimise and maximise financial position.
What success looks like for them
Confident in my investment strategy, being financially secure and on a good path.
What money strategy they were following before we went through the planning process
Existing equities portfolio, participating in an ESPP employee share plan and offsetting current mortgage.
What money strategy they chose to pursue from our planning work
Diversified investment portfolio, rolling over superannuation, investment property, banking structure, estate planning
Key benefits of going through the process
Education, confidence by looking at models and seeing what is possible, and a clear plan on how to get there
Value of advice after all advice fees year one: $41k
Year 20 upside after advice fees: $2m
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
Again this week a massive thank you to all the peeps that have got behind our Pivot birthday 1-1 Money Breakthrough sessions. Through August alone with the support of you we’ve been able to provide 419,785 days of access to life saving water for families around the world. We’re getting closer to our August giving target of 700k impacts, and we’d love your help. If you’re keen to up your money game and do some good on the planet at the same time you can get around the sessions here.
Money hack of the week: A good spreadsheet is your best friend regarding your tax outcome – and maybe a skilled accountant too. I recently talked to Stuart Reynolds about the biggest areas to save on tax and how to plan for the best tax outcome at the end of the financial year. Check out the chat here.
Money mistake of the week: Why a broker should have your back.
Getting a mortgage is one of the biggest purchases you’ll make. So, you need to find someone who understands you and your needs to help you make good money decisions. Chris Bates joined me to chat about mortgages, property, and the best resources to have onside when you start looking into big-ticket investments. Check out our full chat here.
Jargon Buster of the Week: COUPON(via Morgan Stanley)
The interest that the borrower promises to pay the holder of a bond.
Podcast from last week: #242 How to invest tax smart in the new financial year
This episode is a recording of a live event I did on How to invest tax-smart for the new financial year. I talked about the best time for planning your tax. It should be the 1st of July and not the 30th of June.
I go through my tax hacks and strategies to set yourself up for success in this financial year so that you can be in a better position when submitting next year’s tax return.
This episode is perfect for anyone who wants to understand the key tax strategies when investing in different types of investments, fundamental considerations in choosing the right investments, and understanding the tax entities and how they can benefit you.
Be awesome,
Ben
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 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, regarding your 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. 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, regarding your 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.