Hey team,
Happy Monday.
What a week. The RBA has risen the official cash rate by 50 basis points again this week. This rise now results in an official rate of 2.35%. This is the 5th consecutive rise in just as many months as the RBA seems hell-bent on curbing inflation.
A lot also happening over in the United Kingdom as Liz Truss was elected their new Prime Minister and after a reign of 70 years, Queen Elizabeth II passed away at age 96. For most of us, Queen Elizabeth is the only English monarch we know. She has been the face of our currency since 1953, but from the start of 2023 King Charles III will now appear on newly minted Australian coins.
Upcoming events:
We have a few sessions coming up soon to help you get on the front foot with your money. Event schedule and links to book here:
- 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 S&P/ASX200 is slightly up this week, sitting at approximately 6,879.00 points. The top performing stocks being Mineral Resources Ltd. and Tryo Payments Ltd. Over the last five days, the index has gained 0.74%, but is down 7.60% for the last year to date at time of writing. The Australian dollar is down slightly, yet again against the US dollar coming in at 68 US cents. That comes as the US currency climbs to new highs. Its dollar index is at a 20-year high this week, Bloomberg is reporting. Meanwhile, Bitcoin is hovering just below $US20,000, which is a distinct difference from earlier this year when it was sitting at about $US67,000.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.2% higher than last Friday at 7,139.00 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week 1.76% higher than last week at 4,006.18 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 1.32% higher than last week at 11,862.13 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.6 % higher than last week (Friday AEDT) at 7,262.06 points.
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,235.95 for the month, up 17.56% for the month to date.
Investment story of the week: Tyro Payments Ltd. (ASX: TYR)
Shares in Tyro, which is the largest provider of eftpos services outside the big four banks, surged 28% on Thursday to $1.26, after it said it had received a takeover offer from a consortium led by technology-focused private equity firm Potentia Capital. The company knocked back a $1.27 per share takeover bid. Tyro’s board stated “The indicative proposal is materially below Tyro’s fundamental value and highly opportunistic given [it] is substantially below where Tyro’s share price has traded in the past 12 months.” The takeover offer for Tyro Payments has sparked predictions that other bidders may make a play for the fintech. However, the Tyro share price fell 66% between the start of 2022 and Wednesday’s close. Keep an eye on this one to see what the future holds.
Smart Money upside #86
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
Couple, late 30’s; household income ~ $320k; total assets ~ $850k; savings ~ $2k annually.
Frustrations
Not being effective with money, time poor and analysis paralysis.
What they wanted from us / the advice process
Knowing they’re making progress, confident they’re on the right track and maintaining their lifestyle.
What success looks like for them
Having investments accumulate, purchasing an investment property and having a clear tax minimisation strategy.
What money strategy they were following before we went through the planning process
They had little to no strategy.
What money strategy they chose to pursue from our planning work
Utilising their cash to help purchase an investment property, fund their upcoming expenses and building a diversified portfolio.
Key benefits of going through the process
Better education, confidence and clarity.
Value of advice after all advice fees year one: $30k
Year 20 upside after advice fees: $1.3m
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 wanted to support the businesses that are keeping the economy moving through these challenging times, so we celebrated their amazing work by providing 15 microloans to support the growth of businesses in Zambia. 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: What impacts your finances the most?
It’s often the simple changes that have the biggest impact. I sat down with Pivot Wealth client, Hannah, to hear what impacted her most when sorting out her finances with us. Like so many of our clients, Hannah found that following a budget set her on the right path to curbing unnecessary spending and living within her means. What has had the biggest positive impact on your finances so far? Check out the chat here.
Money mistake of the week: Why you’ll never know if you don’t try.
Opportunity can come from anywhere – you just have to be ready to seize it. Sarah Davidson never meant to go into business until she stumbled on an opportunity that meant she could quit her law career and become a full-time “funtrepreneur”. She talked to me about what made her do it, and the success that followed after. Check out the full chat here.
Jargon Buster of the Week: Dividends (via Macquarie)
An amount paid to shareholders from an organisation’s profits, relative to the number of shares held.
Podcast from last week: #248 Where cryptocurrency fits for smart investors
This episode is a recording of a live session I did on Where cryptocurrency fits for smart investors. I cover crypto basics, market fundamentals, a bunch of interesting Q&A around where the market might be going from here and how to actually build a good crypto portfolio that fits in with other things that are going on with your money.
I cover some of the crypto mistakes people make and what I think they should be doing to make sensible decisions when they invest in crypto and digital assets.
This episode is perfect for anyone who is looking at getting started on crypto investing and wants to do it with confidence.
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,
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.