Patagonia founder and long-term environmentalist, Yvon Chouinard is giving away his $3 billion company in a bid to tackle climate change. In a letter about the announcement, published on the Patagonia website on Wednesday, Chouinard says the company’s efforts to address the environmental crisis were good but “not enough”. Chouinard says Patagonia’s non-voting stock will go to a collective that will skim every dollar of profit off the top of the business operations to invest in projects and organisations that protect land and biodiversity.
In the crypto world, the Ethereum ‘merge’ is complete. The Ethereum network is a payments network that is supported by computers around the globe. No single government or company controls these computers hence the term, decentralised. The network has now moved from ‘proof of work’ to ‘proof of stake.’ This will result in 99.5% less power being required to run the network. The price of ETH stayed fairly constant after this merge but is still down 58% year to date.
In the news: How investing $500 a week could make you $1 million a year. Investing is the key to not being forced to work forever. It’s easy to think that investing is something other people do, but a simple equation shows how you could make $1 million a year. Check out the full article here.
Employer share plans can add a substantial benefit to your wealth creation. Learn how to maximise your leverage in our upcoming session. Check out our other events below
- How to maximise your employer share plan – September 29, 12.30 pm
- How to Adult: Financing 101 – October 11, 12pm
- How to FIRE without sacrificing your lifestyle – October 12, 12.30 pm
- How to build a second income investing – October 20, 12.30 pm
- How to buy property like a pro – November 10, 12.30 pm
Share market wrap
The Australian share market has tumbled amid another fall on Wall Street, as investors worry about another supersized interest rate rise in the US. US inflation has gone up by 0.1% which caused a massive reaction as the expectation was for inflation to go down. The Australian dollar dropped below 67 US cents to a low of 66.85 US cents and the World Bank has warned of a global recession this week. Doom and gloom? Or opportunity?
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -2.10% lower than last Friday at 6,986.80 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week -3.03% lower than last week at 3,901.35 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -3.39% lower than last week at 11,552.36 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.40% higher than last week (Friday AEDT) at 7,282.07 points.
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,195.66 for the month, down – 3.10% for the month to date.
Investment story of the week: Star Entertainment Group Ltd. (ASX: SGR)
There are calls for ASIC to investigate Star Entertainment Group. A report released this week found The Star Entertainment Group “unsuitable” to operate its casino in Sydney. The inquiry found the casino put profit before compliance. The NSW Independent Casino Commission’s chief, Philip Crawford stated, “I think all of the directors that were there during the relevant period were hugely embarrassed, feel compromised, feel let down by the senior executives… They were clearly kept in the dark by most of this stuff and I think really it’s appropriate that they all move on.” Some board members and executives have already left, including former CEO Matt Bekier. Surprisingly the share price is up 4% at time of writing for the past 5 days, yet still down 25% year to date.
Smart Money upside #87
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.
Couple, late 30’s; household income ~ $210k; total assets ~ $4.4m; savings ~ $15k annually.
Finances seem confusing and there is an overwhelming information overload. They are busy people with high-performing roles and a family to manage. No clear game plan or clarity on what a good outcome would look like.
What they wanted from us / the advice process
Clarification on a financial strategy and plan for the future. They wanted to grow their wealth and have some goals to work towards.
What success looks like for them
Having confidence with their finances and knowing exactly what to do with their money. They wanted to feel more empowered and be able to meet their children’s education needs. Ultimately they want a financial plan that provides them with structure and security for their family.
What money strategy they were following before we went through the planning process
Barefoot investor banking structure.
What money strategy they chose to pursue from our planning work
Implementing a financial plan with structured bank and cash accounts, purchase of an investment property and investing in assets that are both ethical and meet their long term risk appetite.
Key benefits of going through the process
A clear structure was put in place, and now they have more confidence with how their money is working. They are more educated about strategies and ways to utilise structures, and investments to save money and grow their wealth.
Value of advice after all advice fees year one: $56k
Year 20 upside after advice fees: $2.5m
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
This week we’ve been working with a couple of new clients that are really passionate about sustainable investing, which has led me to think a lot about what’s happening on the planet and how we can have a positive impact. We’ve celebrated by protecting a further 100 square metres of rainforest. If you want to learn more about how you can have a positive impact on our planet by following the next few weeks on the podcast. You can check out more information about our giving here.
Money hack of the week: Why understanding your finances builds security.
Is trusting your financial advisor enough? Dr Amy Silver and I discussed the importance of getting involved in your finances and understanding your money decisions. While it can be a slow learning curve, Amy told me how she’s gained confidence in making choices alongside her financial advisor. Check out our full chat here.
Money mistake of the week: Why would you buy a security token vs. a security?
If you’re a night owl, cryptocurrency might be your new best friend. Joni Pirovich and I chatted about the difference between security tokens and securities. She mentioned the ease of micro-investing with security tokens and the 24/7 nature of the market. Check out our full chat here.
Jargon Buster of the Week: Net income (via Macquarie)
The total amount of money received after relevant deductions, such as taxes and levies.
Podcast from last week: #250 August 2022 Investment and property market update
In this episode, I cover what happened in the Investment and property market over August 2022. The winners and losers, some of the trends that we’re seeing from investors, and some of the hacks & mistakes that people can avoid to make smarter decisions.
This episode is perfect for anyone who wants to understand what’s going on in markets and what it actually means for you.
Helping people with this stuff is our jam, so if you want to chat about how to make your money success easier, you can book an intro call with us here.
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.