Smart money weekly; US inflation news flows to ASX, relationship saving financial advice, create an investment property strategy

Ben Nash

Hey team,

Happy Monday.

The big news across markets this week was inflation eased ever so slightly over in the US which sent a positive market sentiment that flowed right through to the ASX.
US stocks finished the week on solid footing, with traders assessing whether an inflation slowdown could soon make the Federal Reserve reduce the pace of its most-aggressive tightening campaign in decades and prevent a hard landing.

Defying the crowd of sceptics who dubbed the rebound a bear-market rally, short-covering or unwinding of hedges, the S&P 500 notched its fourth straight week of gains – the longest winning run since November – with big tech leading gains on Friday US time. Good news for those of you with employer shares based across the pond. Earnings season has kicked off locally so I’ll keep you updated with movements as things unfold.

In the news: Costly money mistakes too many 40-somethings make
Your 40s is an exciting time when it comes to wealth building, as this is the time most people reach the tipping point on their journey to financial independence. But you have to get it right. If you don’t, you’ll be playing catch-up in future years and likely will need to make sacrifices. In this piece, I cover the key money areas you should be focused on in your 40s to drive success.

Upcoming events:
Despite interest rates, the property market is really interesting right now, so join me as I unpack how to buy property the smart way this year. Don’t leave it to the last minute, click through to register and join:

Event schedule and links to book here:

Share market wrap
Over in the US, CPI’s print of 8.5% vs the 8.7% expected was a boon for all markets, as the headwind on all parts of the economy seems to be taking a breather from running full steam ahead. Australian shares followed the US market higher on Thursday after the world’s largest economy revealed easing inflationary pressures, helping to pare interest rate expectations.

Key sharemarket numbers:  

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.4% higher than last Friday at 7,288.80 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week 2.98% higher than last week at 4,280.15 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 2.69% higher than last week at 13,047.19 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.84% higher than last week (Friday AEDT) at 7,500.89 points.
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 2,730.78 for the month, down 4.50% for the month to date.

Investment story of the week: Telstra Corporation Ltd (ASX:TLS)
As most of you know, Telstra is Australia’s largest telecommunications provider. The Telstra share price could be of great value after the telco’s full-year results. That’s the view of experts, who have reiterated their bullish view on the company’s shares. In light of this and its positive outlook, experts have retained its add rating and lifted its price target to $4.60. Based on the current Telstra share price of $4.00, this implies a potential upside of 15% for investors over the next 12 months. In addition, experts are forecasting a 17 cents per share fully franked dividend in FY 2023. If we add this into the equation, this will mean a total return of almost 20% for investors.

Smart Money upside #82
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; late 40’s, income ~$600k, total assets ~$3m, savings~ $15k annually

No tax management strategy. Not clear that their superannuation is working hard enough and a desire to explore alternatives but not knowing where to start. A desire to retire early but no clarity if that’s possible.

What they wanted from us / the advice process
Ensure their super is working hard for them, and build education around different tax and investment rules, thus creating confidence that they have a solid plan in place to achieve their long-term goals. Most importantly, clarity on the possibility of retiring early.

What success looks like for them
They would like to pay off their family home and have confidence in their investments, clarity on their superannuation, and a clear tax stategy in place. Additionally, they want knowledge of when they can realistically retire, and how to maximise their potential. Confidence that they are on the right track to provide for their children and grandchildren, along with maintaining a comfortable lifestyle.

What money strategy they were following before we went through the planning process
Paying down the debt of family home with any surplus cash with an aim to be no tax deductible debt free and covering tax bills through savings.

What money strategy they chose to pursue from our planning work
Set a clear plan on how to upgrade the family home in the short-term future, as well as planning for how to treat the holiday home to maintain a cash surplus. A clear investment property strategy to boost income-generating assets, and a plan to effectively manage the debt of the new investments. Realignment of investments to better match their risk profile. A definitive employer share plan strategy and the roll over of superannuation to a more cost-effective investment fund that aligns with their investment mandate.

Key benefits of going through the process
Education, confidence, and a clear plan that can help them achieve their goals. Clear financial modelling showing them how different decisions they make in the short-term future can have a significant impact on their long-term financial position.

Value of advice after all advice fees year one: $42k
Year 20 upside after advice fees: $3.2m

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 I want to say a HUGE THANK YOU to all the legends that have got behind our giving challenge to create 700,000 positive impacts around the world. We’ve been overwhelmed by your support which has helped us provide 209,875 days of life-saving water to families in need around the world. We’ve taken a solid step towards our August giving target and we need your help to get there. Please help us do some good in the world and take your money game to the next level at the same time here.

Money hack of the week: Why financial advice can save a relationship.
MYTH: Your money, your problem. Seeking out a third-party’s perspective on your money discussions with your partner can save for your financial situation and relationship alike. In this chat, Jon Hollenberg dived into why financial planning worked for him and his partner, and how in their case, it saved their marriage, much like marriage counselling. Check out our full chat here.

Money mistake of the week: Not having a clear property investment strategy.
How should you figure out the right property strategy for you? Well, property investments are like a see-saw. The more capital growth you want, the less rent you’re going to get and vice versa. You just need to decide what you can afford and where your priorities lie. Chris Gray and I dived into this concept in this video. Check out our full chat here.

Jargon Buster of the Week: Margin call (via Macquarie)
An amount requested by a lender when the value of a loan is too high compared to the value of the collateral or security the borrower has offered. This is related to the loan-to-value ratio. This generally relates to loans used to purchase shares.

Podcast from last week:  #238 w. Karen Eley – Improving your money mindset
In this episode, I chatted with Karen Eley, a Money coach expert at Women Talking Finance. She used to be a financial advisor. A decade ago, Karen started helping people and coaching with their money, especially on their money mindset. It’s an area that I think our psychology impacts the money decisions we make.   Karen goes through some of the helpful sorts of mistakes and issues people face regarding their money mindset, as well as her favourite strategy that you can use to do better. I think this one is a must for everybody and for anyone that’s stuck in either overspending fears around making a decision or not doing something with their wealth.

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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