Smart money weekly; Markets bounce, avoiding setbacks, FHSSS and property vs shares

Ben Nash

Hey team,

Happy Monday.

This week has been a big one in money, with glimmers of hope coming back into the property and share market as people seem to be starting to realise the downturn we’re currently seeing will come to an end.

Property experts and forecasters have started to call the end of the current decline as early as quarter one of 2023, spurring activity in the market. At the same time, global sharemarkets are picking up steam.In the news: Property vs shares: Which offers the best investment return? Should you buy property or sink your money into shares? There’s an obvious choice that could bag you an extra $1.4 million. Check out the full article here.

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Share market wrap
The ASX was fairly stagnant throughout the week but bounced on Friday off some strong markets over in the US. All three major Wall Street indices ended sharply higher Thursday night as investors pulled back their bearish bets. The headline this week in the US was that the consumer price index rose at an annual pace of 8.2 per cent in September, compared with an estimated 8.1 per cent rise, which further emphasised the case for a fourth straight 75 basis point rate hike from the Fed next month. Biden stated “Americans are squeezed by the cost of living, that’s been true for years, and they didn’t need today’s report to tell them that,” This statement shows us that the markets may yet have some volatility present as the cost of living is showing no signs of slowing down.

Key sharemarket numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week – 0.4% lower than last Friday at 6,948.60 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week – 1.0% lower than last week at 3,669.91 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week – 2.12% lower than last week at 10,649.15 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week – 2.10% lower than last week (Friday AEDT) at 6,850.27 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,065.63 for the month, down – 1.51% for the month to date.

Investment story of the week: NIB Holdings Limited (ASX:NHF)
NIB Holdings Limited (ASX:NHF) was down almost 12% on Thursday. The organisation has been raising funds that will help with its entry into Australia’s National Disability Insurance Scheme (NDIS) sector as a Plan Manager. NIB’s managing director, Mark Fitzgibbon stated, “NDIS funding is expected to double from around $29 billion in 2022, to $59 billion by 2030”. They have identified a number of potential acquisitions and signed an agreement for one. It will start with the acquisition of Maple Plan, which is the seventh largest Plan Manager with approximately 7,000 participants and revenue of approximately $10million last financial year. The weakness in the NIB share price on Thursday has been driven by the information release stating that NIB were able to raise the funds at $6.90 per new share. This represents a discount of 8.1% to the NIB share price prior to their trading halt. This was also the floor price for the underwritten placement, which may be an indication that demand wasn’t overly strong for the offering. We’ll be keeping an eye on NIB as they expand into the NDIS space.

Smart Money upside #91
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, early 30’s; household income ~ $240k; total assets ~ $110k; savings ~ $6k annually.

Knowing very little about tax minimisation strategies, a lack of diversification of investments, and wanted to know how they can improve saving, so that they can save for a home.

What they wanted from us / the advice process
Putting a plan in place, helping them save more, diversifying assets and knowing when buying a property is feasible.

What success looks like for them
A diversified portfolio that will set them up for later down the track, getting a property within a reasonable timeframe.

What money strategy they were following before we went through the planning process
Investing in individual shares and no other saving structure.

What money strategy they chose to pursue from our planning work
A new banking structure, super contributions for the First Home Super Saver Scheme, purchasing a new home and superannuation rollovers inclusive of their group insurance

Key benefits of going through the process
Education around their finances, knowing how long it will take to purchase a property and feeling more confident to pull the trigger, working out what their savings are and how they can improve them.

Value of advice after all advice fees year one: – $3k
Year 20 upside after advice fees: $1.2m

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
This week we’ve been diving into a big internal tech project which highlighted to us the importance of digital skills in a rapidly evolving economy, so we wanted to give back to help others build their digital skills. Through our partnership with B1G1 we’ve supported 365 days of digital skills training to aboriginal communities around Australia. 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.

Money hack of the week: How to get started with ethical investing. You don’t learn this stuff in school. Are you feeling overwhelmed with money-related decisions? We know how you feel. Kevin McDonald and I discussed how finding a financial advisor can help you understand investing and make better financial choices. Check out the full chat here.

Money mistake of the week: Changing your attitude towards money. How different is your attitude towards money now than in your early 20s? If you’re anything like Caroline Bowler, you’ve probably come a long way. I chatted to Caroline about getting into debt at an early age and the tipping point to get her where she is now. Check out the full chat here.

Jargon Buster of the Week: Asset (via Macquarie)
An item of a tangible or intangible nature that has value or benefit, such as the capacity to generate revenue or interest. An example of a tangible asset is real estate and an intangible asset is a business brand name.

Podcast from last week:  #258 September 2022 Investment and Market update
Last week, I covered what has been happening in the Investments and property markets in September 2022. I talked about investor trends, the things you need to know to make smarter decisions in the current environment, and a lot of stuff that’s happening in the economy. Also, I talked about the activity in the markets, some of the money hacks & mistakes to look out for, and the things you need to know when you invest.

This episode is perfect for anyone who wants to invest wisely and get better results from their money.

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.

Be awesome,



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