Hey Team,
Happy Monday.
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).
You can check out more information about our giving here.
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.
Numbers/Background
Couple early 30’s, household income ~$310k, saving $60k annually, investment property ~$550k with $300k mortgage and $200k super, no shares.
Frustrations
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.
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.