Smart money weekly; Record inflation, budget winners and losers, Meta’s woes and financial independence in your 40’s

Ben Nash
Hey team,

Happy Monday.

Labor announced its budget this week with some winners being families, tafe and uni students, new homebuyers, and seniors as well as women’s safety initiatives. Some major losers from the budget are tax evaders, job seekers and the arts industry.

Australian inflation also hit a 32-year high at 7.3%. It is expected that the RBA will continue to raise interest rates to curb this. This will put mortgage holders under even more surmounting pressure. With Labor also forecasting energy prices to rise by 56% in the next 18 months, you’ve got to ask yourself what’s next for the everyday Australian?

In the news: How to use equity in a $500,000 property to make $10 million. Anyone with a $500,000 property can take advantage of this trick to make a fortune of $10 million – without using any of your own cash. Check out the full article here.

Upcoming events:
Three great sessions coming up next month. Learn how to avoid common money mistakes, buy property the right way and take control of your taxes. Check out all our upcoming events below.

Share market wrap
The S&P/ASX200 witnessed some gains this week. By the close on Thursday the index was up 1.70%, but still down 8.05% year to date. On Thursday the index closed up 0.50% at 6,845.10 points which was a 20-day high. However, Australian inflation has hit a 32-year high which is bringing uncertainty and we are still seeing a lot of volatility in the US and international markets. As the ASX is starting to show some signs of recovery, we need to consider what the future may look like for our investments and ensure we are managing risk appropriately.

Key sharemarket numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.4% higher than last Friday at 6,973.50 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 4.16% higher than last week at 3,807.30 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 2.09% higher than last week at 10,792.68 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.87% higher than last week (Friday AEDT) at 7,073.69 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,290.35  for the month, up 9.20% for the month to date.

Investment story of the week: Meta Platforms Inc (NASDAQ: META)
Meta Platforms Inc. have had a shocking year to say the least. The organisation running programs like Facebook, Instagram and WhatsApp have over 3 billion monthly active users across its platforms. Their share price plummeted 24% on Thursday as the company delivered their third-quarter results. Meta’s revenue declined by 4% this quarter as Zuckerberg is continuing to be heavily focused on investing capital in the Metaverse and AI technologies. They started the year at $338.54 USD per share and are now sitting at $97.94 USD (at time of writing). That is a staggering loss of approximately 71% year to date. Similarly, to the rest of the NASDAQ index, they are bleeding. A lot of people are seeing the current share price as a great opportunity. The question remains though; will Zuckerberg’s long term strategy pay off?

Smart Money upside #93
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, mid 30’s; household income ~ $400k; total assets ~ $1.2m; savings ~ $5k annually.

Procrastination, not understanding how to start investing and a big bill at tax time.

What they wanted from us / the advice process
Another perspective on their situation, a good sounding board to bounce ideas off of, education on index funds and tax, and to know options that have and what decisions will positively impact their future.

What success looks like for them
Looking after the family, building up a solid emergency fund, paying for children’s education.

What money strategy they were following before we went through the planning process
Buying individual shares and retaining their vested RSUs.

What money strategy they chose to pursue from our planning work
A new banking structure, super rollover inclusive of a group insurance rollover, index fund investment strategy, and a proper cash management strategy to ensure they can sustain their lifestyle whilst their family grows.

Key benefits of going through the process
Understanding the options they have available, how to appropriately plan for a growing family and starting to invest in a more diversified investment portfolio.

Value of advice after all advice fees year one: – $10k
Year 20 upside after advice fees: $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
At Pivot we know that family is all important, which extends to our fur babies alongside our humanoid relatives. So we celebrated our furry friends by providing education on effective animal care to families in Nepal. 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: Busting myths on book writing and speaking.
Lynne Cazaly is full of surprises. She wrote her most recent book in one of the more unconventional ways I’ve heard. In this conversation, she debunked some of the myths she’s discovered through book writing and her vast experience in public speaking. Check out the full chat here.

Money mistake of the week: How does an increase in interest rates affect you?
Are you scared of interest rate rises? What could be next? Alex Barrat and I talk about the possibility of interest rates rising even further and what that might look like for the average property buyer. Hint: It will most likely come down to an increase in wages. Check out the full chat here.

Jargon Buster of the Week: Blue-Chip Stocks (via Canstar)
The stocks behind large, industry-leading companies such as CSL, or the Australian big four banks.

Podcast from last week:  #261 How to invest smarter when the market is crashing
This episode is a recording of a live event I did on How to invest smarter when the market is crashing. I talked through the investment basics, the key things that you need to know to build a solid investment portfolio given the market conditions that we’re seeing today, some tips & tricks for investors around the importance of tax, and how to plan with it when you invest. As well as some of the investing mistakes that you should learn to avoid.

This episode is perfect for anyone who wants to do better with their investments, how to get started and take their investing game to the next level.

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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