Hey Team,
Happy Monday.
This week saw some fears in markets off the back of tension in the Middle East, which thankfully seem to be on the way to getting sorted. We also saw tech players rebound off the back of some US economic data, and some flutters in the property market off the back of a government push towards deregulation.
Money hack of the week: Keeping your motivation on the path to buying your first property
My secret for when you’re feeling like buying a property is unachievable? Just take the first step and keep on going. Treat the process like stepping stones and start by developing saving strategies as soon as you can. Get advice, understand what’s possible and keep your motivation up. The path can be long but stick to it and you can make it happen. I chat to Pivot client Oliver about his almost four year pathway to getting his first property and how this approach helped him and his family make it happen. Check out the full chat here.
Share market wrap
This week the markets were down off the back of reporting season and Australia’s mixed response to the federal budget.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.2% higher than last Friday, on 7,265.30 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 0.33% lower than last Friday, on 4,155.86 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.7979% higher than last Friday, on 13,470.99 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.4% higher than last Friday, at 124.18
Investment story of the week: Lithium Energy Limited (ASX: LEL)
Lithium is again back in the spotlight with the scramble by big business to lock down supplies to drive the next generation of technology. This little known player is riding the wave, up over 23% this week, a space to watch as the world bounces out of COVID with our smartphones squarely attached to our persons.
Money mistake of the week*5: Super mistakes you don’t realise are sabotaging your future
With more than 500 super funds in Australia, choosing the best fund can be overwhelming. And while most people know super is likely to be one of their biggest investment assets, ATO statistics show 43 per cent of Australians aren’t even interested in their superannuation, period. Many Aussies choose their super provider by asking themselves the question: what is a good return on my super fund? But that’s only half the story. Last week I downloaded my easy hacks you can implement today to make the most of what’s likely to be one of your biggest assets in the future. Check out the full story here.
Jargon Buster of the Week: Negative Gearing (via Macquarie)
Negative gearing: The process of using borrowed money to fund an investment where the returns from the investment are less than the repayments on the borrowed funds, allowing a deduction of losses against taxed income.
Podcast from last week: #109 Ethical investing series w. Paul Garner
In this episode, I chat to Paul Garner for the Ethical investing series. Paul is a Financial Advisor based in Adelaide who is super passionate about socially responsible investing. His business is built around helping people figuring out what’s important to them and then how they can introduce those values into their investment portfolio.
I chat to Paul about not only ethical investing but also his take on the market at the moment, how people should go about figuring out what is actually important to them, what some of those categories are and we debunk with a bit of jargon there that can be quite confusing and the top tips for people that are interested in socially responsible investing but don’t know what to do next. Check it out here
Giving update of the week
Last week I was excited to get on a plane for the first time since COVID to head up to Brisbane to catch up with my business coach and a bunch of entrepreneurs we’ve been working with for the last four years. The three days I spent with the group reminded me of the power of business to change the lives of not only the people that work with any given business, but also the broader community and the world at large. So to celebrate, we’ve provided one year of business training and an attached microloan for 20 women in Malawi. This is 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).
Smart Money upside #21 – How to get started investing in shares and squeeze more out of your property equity
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 sales manager, household income $240k, $140k cash, investment property + own home, saving $3k per month
Frustrations
Lack of a broader strategy/Lack of direction around ways to build wealth.
What they wanted from us / the advice process
Clear pathway to build wealth, road map to get there
What money strategy they were following before we went through the planning process
Buying property, saving cash in an offset
What money strategy they chose to pursue from our planning work
Multiple investment properties combine with a passive share portfolio to help build asset position.
Key benefits of going through the process
Clear roadmap, assistance, products and help to achieve the goals mentioned.
Value of advice after all advice fees year one: $11,600
Year 20 upside after advice fees: $2,012,767
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.