Hey team
Happy Sunday.
Well, we kick the week off with the exciting news that NSW will be set to reopen on October 18. This is great news for our small business owners and just generally to start getting back out and about again. We’ve been busy with so many of you who have used lockdown as a time to get on top of your finances so it’s been great to hear from our followers from all over Australia the last few months.
Our team has been working hard to pull together a new event series that will see you right through to 2022. If you’d like to hear me cover anything specific, get in touch or slide into my DM’s on insta – @pivotwealth.
Giving update of the week
This month we’re getting behind the Steptember challenge supporting people impacted by cerebral palsey, with all money raised from our Money Breakthrough sessions being donated to this amazing cause.
We’ve got an internal competition for team Pivot to see who can do the most steps through the month, and currently our implementation superstar Ems is leading the charge cranking out an average of over 14,000 steps a day, with the team clocking up over 448,000 steps so far this month.
I have to admit my steps have been dragging down the team average, having been in self-isolation as a COVID close contact for the last 12 days – watch this space to see if I can make some ground up when Gladys hopefully releases me back into the wild this Tuesday.
You can get behind our Steptember giving through our breakthrough sessions here and learn more about our business giving here.
Upcoming events:
I am pumped to share a whole new event series that will take you straight through to the new year. We’re covering everything from financial advice 101 right through to helping you buy the $3m dream home. Check out the full list below and click through to register:
Event schedule and links to book here:
Finding the right investment for you: Thursday 16th September 11:30 am – 12:30 pm AEST
WTF is financial advice?: Thursday 30th September 1.30 pm
How a trust can cut your tax bill by $100k+: Thursday 7th October 11:30 am
How to be smarter with money: Thursday 14th October 11:30 am – 12:30 pm AEST
How to maximise your employer share plan: Wednesday 27th October 12 pm
Avoid key money mistakes: Thursday 4th November 11:30 am – 12:30 pm AEST
How to buy your $3m Bondi dream home: Thursday 18th November 12 pm
What next after making your first million dollars?: Thursday 2nd December 12 pm
Why you need a financial adviser if you make more than $250k p.a: Thursday 13th January 12 pm
How to use property equity to invest when your LVR is below 50%: Tuesday 25th January 12 pm
How to invest if you’re saving more than $5k monthly: Thursday 24th Feb 12 pm
Employer share plan tax hacks and mistakes to avoid: Thursday 10th Feb 12 pm
Money Hack of the week: Could you be more productive with your extra cash?
Living a lifestyle of luxury needs to have its boundaries. Like Emma, who found herself giving her dog everything he needed and beyond before realising she could be investing her extra cash or paying off her debt sooner. We live and we learn. In this episode, we hear how Emma got back on track. Check out our full chat here.
Share market wrap
Over on Wall St, the Fed signalled a ‘downshift’ in the economy on Wednesday resulting in the ASX closing 1.9% lower on Thursday after a huge sell-off of equities. Bitcoin finished down after news that El Salvador was formally accepting it as currency, an unexpected result.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -1.7% lower than last Friday, on 7,706.20 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week -0.90% higher than last week (Friday AEDT), at 4,493.28 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -0.72% higher than last week (Friday AEDT), on 15,248.25 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week -1.60% higher than last week (Friday AEDT), at 7,043.93%
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 101.16% for the month, up 5,139.02 from last week
Investment story of the week: Resmed Inc (ASX: RMD)
ResMed benefited from its dual listing on the New York Stock Exchange, where it gained overnight. RMD led the market on Thursday despite a huge equity sell-off and overall the ASX down 1.9%. Based out of San Diego Resmed is a medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. In August, they launched the Airsense11, to help hundreds of millions of people with sleep apnea. Morgan Stanley analysts expect ResMed to achieve at least $US350 million in additional sales as a result of the Airsense11 across 2023 and 2024.
Money mistake of the week: How FOMO can sabotage your money progress
You don’t know what you don’t know. Before Pivot, Olivia and Sean were back to work after having kids, tracking along with their savings and not doing too much else with their finances. That’s when they realised they could be missing out on opportunities to maximise their money. In this episode of How To Be Successful With Money, we chat about the FOMO Olivia and Sean felt and what made them realise they needed expert help. Check out our full chat here.
Jargon Buster of the Week: Construction loan (Via Macquarie)
A loan which funds the construction or renovation of a property. The funds are released to the borrower in stages in line with the development of the property. This allows the borrower access to the funds as they need them so the borrower does not accrue interest on the entire loan until the whole amount of the loan has been released.
Podcast from last week: #132 w. Angie & Shane Saunders – How breathing better can help you invest better
In this episode, I talked to Shane and Angie Saunders, who are the founders of a company called Breathe Me, which is all about coaching people on their breathing so that they can improve their wellbeing, perform better, be less stressed and make better decisions.
We talk about some of the practical things that people can do. I personally found this super helpful over the last few years, since meeting Shane at an event and some of the things that can happen when you’re better with your breathing, some of the exercises you can do to get there as well as how it can impact our decisions around career relationships, and investments.
Also, we talk about Shane and Angie’s money journey. Some of the lessons that they’ve learned along the way, they talk a bit about some commercial property stuff they got involved in and how they’ve actually used their mindset and peak performance to improve them.
Angie & Shane Founders of Breathe Me, Wellness Experts, Award-Winning Authors, Coaches, Speakers, and Hosts of The Breathing Edge Podcast.
Smart Money upside #34
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
Couple, early 30’s; household income ~ 160k; total assets ~ 650k; savings ~ $2k annually
Frustrations
No real plan when it came to a wealth-building strategy. clients knew only that they wanted to buy a family home, and nothing else.
What they wanted from us / the advice process
Goals and a way of using what that had to really amplify their wealth position. Wanting a way to convert home to an investment property, build an equity portfolio and move forward with a robust savings plan
What success looks like for them
Three properties (two investments and family home) as well as assets delivering passive income.
What money strategy they were following before we went through the planning process
Offset account build using all savings capacity, as well as a small regular investment on a regular basis.
What money strategy they chose to pursue from our planning work
Dollar-cost averaging strategy into equities on a weekly basis as well as moving toward having a family home and their current place as an investment
Key benefits of going through the process
Strategy and pathway, with clear guidance and products to help.
Value of advice after all advice fees year one: $21,090
Year 20 upside after advice fees: $2,065,187
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.