Share market wrap
Australian and international markets held onto the strong gains from last week and continued to rise, driven by the continued COVID vaccine rollout and the stats showing now over 25% of people in the US have now received the COVID vaccine.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.1% lower than last Friday, on 7,320.7 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 0.01% higher than last Friday, on 4,180.17 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.2126% higher than last Friday, on 14,016.81 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.11%% lower than last Friday, at 124.22
Investment story of the week
British Petroleum (BP) (NYSE: BP): Potentially not the most popular stock in recent times given BP’s heavy bent to fossil fuels, but BP is on a tear off the back of COVID, up over 55% in the last 6 months. Worth keeping on the radar.
Jargon Buster of the Week
Compound Interest (via Macquarie): Interest calculated on the total amount of funds including the principal and any previously accumulated interest. Compare with simple interest, which is calculated only on the principal amount.
Money mistake of the week: Not pushing through the fear of f*king up
One of the biggest barriers that stop people from taking action is the fear of making a mistake that will cost you a bunch of money. When you finally push through this fear and take action, most people kick themselves for not doing it sooner. In this clip, I chat through a client’s tips for how he built the confidence to take action. Video here.
Money hack of the week: How to avoid guilty spending
Why earn money if it’s not going to bring you happiness? I chatted to one of our Pivot clients about spending strategically and how by allocating money to the highest priority spending, you can maximize the real enjoyment you get from your spending. Full video here.
Podcast from last week: #105 Pivot Client Story with Oliver – How to get onto the property ladder without sacrificing your lifestyle
In this episode, I chat to one of our long-term clients, Oliver who we’ve been working with for a bit over four years. We talk about his pathway to purchase his first property.
When he previously thought it was unattainable and unrealistic, some of the strategies and tactics that allowed him to get there as well as his take on how to make sure that when you think about planning with your money, that you prioritize your lifestyle and enough to give you the holidays and the personal things that you want but find a quality balance between getting the financial outcomes that you want as well.
Giving update of the week
This week a couple of our amazing clients settled on their first investment property, and we’ve celebrated by providing 365 days of shelter to underprivileged people in India, as 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 #18 – Creating a second income for financial security
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.
Couple early 30’s, household income ~$310k, saving $60k annually, investment property ~$550k with $300k mortgage and $200k super, no shares.
No path to financial security, realised they have an opportunity to get more out of what they have. Financial stress about the future.
What they wanted from us / the advice process
Clear path to family home, second income stream to reduce reliance on employment income.
What money strategy they were following before we went through the planning process
Buying family home @$2.5m, paying down investment property debt, small extra super contributions.
What money strategy they chose to pursue from our planning work
Leverage equity to buy two investment properties, clear family planning for time out of the workforce, buy family home.
Key benefits of going through the process
Substantial investment upside, confidence in their financial future, the achievable pathway to a family home.
Value of advice after all advice fees year one: $592,057
Year 20 upside after advice fees: $1,162,545
If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.
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.
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