Happy Monday.
It’s been another strange week across the country with COVID restrictions easing in some states and lockdowns continuing in others. In spite of all this, the average weekly house rent in Perth has hit a six-year high, the ASX is up as Wall St hits another record and of all the stocks on the ASX to have a huge week, Sydney Airport is up almost 36%. I’ll chat about that more below, so keep reading.
For those of you that have the benefit of working for an employer that offers an employer share scheme, I will be hosting an event to discuss the ins and outs of RSUs, ESPP, ESOP, tax complications and more. Here’s a link to read more and register for this free event.
Upcoming events
Also wanted to include a reminder for our upcoming live online events:
How to cut your tax bill – Thursday 22nd July 111:30 am-12:30 pm AEST
Cryptocurrency Investing 101 – Thursday 12th August 11:30am -12:30pm AEST
Make More Money: Personal Investing 101 – Thursday 2nd September 11:30 am-12:30 pm AEST
Finding the right investment for you – Thursday 23rd September 11:30 am – 12:30 pm AEST
How to be smarter with money – Thursday 14th October 11:30 am – 12:30 pm AEST
Avoid key money mistakes – Thursday 4th November 11:30 am – 12:30 pm AEST
Money Hack of the week: Maintain an epic lifestyle budget without sabotaging your future
As business owners and high-level professionals, it can be hard to schedule time off work to spend with our family or friends. The FOMO of not being there for work opportunities can override other priorities like family time, self-care and living your ideal lifestyle. In this chat, long-time Pivot Wealth client Oliver and I chat all about getting visibility on your finances and thinking about your lifestyle goals over the next 5, 10 and 20 years. Listen to the complete discussion here.
Share market wrap
This week saw another interesting week to kick off the financial year. With most of Australia in lockdown, it left the Australian share market soft. U.S. stock futures were about flat on Thursday as US investors gear up for the second half of the US financial year.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week – 0.96% lower than last Friday, on 7,545.30 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 0.49% higher than last week (Friday AEDT), at 4,320.82 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.4831% higher than last week (Friday AEDT), on 14,559.78 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week -1.33% lower than last week (Friday AEDT), at 7,030.66%
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at – 4.70% for the month, up 3,502.84% from last week
Investment story of the week: Sydney Airport (ASX: SYD)
Sydney Airport had a wild week with the share price leaping 33.9% to $7.78 The airport said the unsolicited proposal of $8.25 per share placing the value at over $22 million was lobbed by a consortium, including the investment manager for industry super funds IFM Investors, QSuper and Global Infrastructure Management. Keep in mind that pre-COVID SYD was trading at close to $9, so there is a lot that the board need to consider factoring in the future of travel and how as a country we manage returning back to some level of ‘normal’. I’m predicting that more offers will be lurking, so keep an eye on how this shifts.
Money mistake of the week: Putting your money priorities on the backburner.
What are your life goals? Have you taken some time to think those through and figured out what you’ll need financially to get there? We know that money falls into the ‘important, but NOT urgent’ bucket and it’s hard to take the time to focus on what you need to do to get a bit of a plan in place. By the time Danny and Nikki sat down to talk about their future, they knew they couldn’t keep their money sitting in the bank. They wanted to earn more back to support their lifestyle 10, 20 and 40 years down the track. Listen to my full chat here and what prompted them to finally take the leap and work with Pivot Wealth.
In the news
If you have a normal job and want to get rich in Australia, investing is the key to making it happen. But if you’re early on in your investment journey, getting started can seem overwhelming (not to mention expensive). It can also be confusing to figure out what platform or tool you should be using to invest your hard-earned money. Thankfully there are more and more apps and technology solutions that can help. Enter micro-investing. Check out the full article via News.com.au here
Jargon Buster of the Week: SECURITISATION (via Morgan Stanley)
The process of distributing risk by aggregating debt instruments in a pool and then issuing new securities backed by the pool.
Podcast from last week: #121 Pivot client story w. Emma – “Learning how to manage my money in a post COVID world”
In this episode, I talked to one of our lovely clients, Emma. It’s definitely one of my, I’m going to say, top portal playing podcasts over the last little bit.
She is a crack-up who works for a tech company based out of Sydney. We helped sort of get on top of her money and get on the front foot.
She talks about how she’s managed to splurge out and buy a mini and the things that come along with that quite a fancy dog as well as build her assets and get on her investments working for her, as opposed to just being linked with the tech company that she works for.
Apple
Spotify
Stitcher
Podbean
Giving update of the week
Doing good business isn’t just about making good money. The entrepreneur revolution also has a big part to play in pushing social change.
Huge shout out to the Pivot Wealth clients and community who have supported our business giving initiatives, I’m so proud of the fact that the support of our clients has allowed us to create over 265,000 positive impacts on the planet. Some of the impacts I’m most proud of:
* Built five homes for disadvantaged families in India
* Offsetting our office carbon footprint
* Saved 1,000 square metres of rainforest in the Daintree
* Provided 80,960 days of access to life-saving water for people in need
* Educated over 15,000 people on proper animal care
* Provided 1,152 days of business training to women in Malawi
If you want to learn more about how you can do good business and do good on the planet at the same time, hit up the B1G1 team for more info
Smart Money upside #25
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
Individual, late 30’s; household income ~ 150k; total assets ~ $780k; with Investment Property; Investment Portfolio; annual savings ~ $6k annually
Frustrations
Not having a plan or strategy in place. Needing to pay additional tax annually and the accountant not helping. IP running a deficit because her parents are living there and can’t afford to pay much rent.
What they wanted from us / the advice process
A clear plan and strategy.
What success looks like for them
Upgraded home, clear plan for her retirement and nest egg.
What money strategy they were following before we went through the planning process
No clear plan-has heaps of bank accounts and a basic structure around this. No plan on the investing front.
What money strategy they chose to pursue from our planning work
Sell the IP and purchase a 2 bedroom apartment – wealth in 20 years circa $1m better off.
Key benefits of going through the process
Plan, and peace of mind that she is going to be okay, albeit her parents will need to live with her.
Value of advice after all advice fees year one: $31,359
Year 20 upside after advice fees: $356,862
General
The way we breathe impacts everything, from how we think, move, work, and relax. Wanted to shout out some of the great work that mates and wellbeing mentors of mine, Shane and Angie Saunders from Breathe Me are doing to help people breathe better to live better.
They’ve just launched a free 7-day breathing challenge to help you boost your energy, improve your sleep, and take your productivity to the next level.
Sounds a bit silly to say, but speaking from personal experience I can honestly say that proper breathing exercises will allow you to level up and find another gear you never thought you had.
Check out the full details and get around the challenge here.
https://www.breatheme.com/7-
Check this out
The way we breathe impacts everything, from how we think, move, work, and relax. Wanted to shout out some of the great work that mates and wellbeing mentors of mine, Shane and Angie Saunders from Breathe Me are doing to help people breathe better to live better.
They’ve just launched a free 7-day breathing challenge to help you boost your energy, improve your sleep, and take your productivity to the next level.
Sounds a bit silly to say, but speaking from personal experience I can honestly say that proper breathing exercises will allow you to level up and find another gear you never thought you had. Check out the full details and get around the challenge here.
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 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.