Smart money weekly; WFH forever? RSU & ESS deep dive, overcoming property fears, and ASX winners

Ben Nash

Hey team,

Happy Monday.

So with the ‘cron in full force and every man and their dog around you right now catching it, it seems that we’re in another strange stage of this ongoing pandemic. Now with a lot of you working from home again, it appears that it could be sticking around for a bit longer, or in the case of come companies…indefinitely. So what does this mean for your money?

I don’t have a crystal ball, but some predictions for the new year are regional house prices will maintain and even rise across the year, supply chains will continue to be disrupted and this will create opportunities for smaller businesses to come in and take market share, and the share market is a bit too early to call but watch this space.

Smart Money upside #51
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.

Individual; mid 20’s, income ~$85k, total assets ~930k, savings~ $19k annually

No clear strategy in place

What they wanted from us / the advice process
Good strategy to go with investing inheritance in a way that makes the most sense to current circumstances. Review a few financial options to see what the best way to go. Understanding of property investing and how it can help achieve their goals

What success looks like for them
Good investment portfolio that is growing

What money strategy they were following before we went through the planning process
No strategy

What money strategy they chose to pursue from our planning work
Clear banking structure and investing into diversified investment portfolio

Key benefits of going through the process
Organisation and structure.

Value of advice after all advice fees year one: $65,320
Year 20 upside after advice fees: $1,294,119

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’re passionate about the benefits of having a solid education in all important areas of life (money included), so we’ve celebrated by providing 100 children with access to life changing e-learning education and training. 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.

Upcoming events:
Our event series has kicked off for the new year and we’re excited to bring you a fortnight of Employer Share Scheme specific content. Now is the best time to get on top of this before the end of the financial year closes in as well as tax time (and those nasty tax bills!). Check out the full list of events that are coming up and click through to register:

Event schedule and links to book here:
How to use property equity to invest when your LVR is below 50%: Tuesday 25th January 12pm
Employer share plans 101: Tuesday, Feb 1, 2022, 11am
How employer share plans work (deep dive): Monday, Feb 7, 2022, 2pm
Employer share plan tax hacks and mistakes to avoid Thursday 10th Feb 12pm
How to make more profit from your employer share plan Tuesday, Feb 15, 2022, 11am
How to invest if you’re saving more than $5k monthly: Thursday 24th Feb 12pm

Money Hack of the week: Why you need to invest in knowledge.
Every single time we buy something, we weigh up the cost vs. the benefit. Of course, this is a difficult question people face when considering financial advice. So, I talked to Annabelle Chauncy about why she’s turned to financial advice and why she’s a firm believer in investing upfront. By investing in knowledge, Annabelle has learned so much and set herself up with skills she’ll value for the rest of her life. Check out our full chat here.

Share market wrap
The Australian sharemarket climbed 0.5 per cent to 7474.4 on Thursday, supported by a strong session for materials and energy stocks. Stocks bounced back in the US on Wednesday after Jerome Powell’s testimony. Goldman is expecting the Fed to hike interest rates 4 times this year and begin running down its balance sheet by July.
Key sharemarket numbers:

  • The ASX ‘All Ords’ (top 500 shares in Australia) finished the week -0.70% lower than last Friday, on 7,717.10 points.
  • The US ‘S&P 500’ (Top 500 shares in America) finished the week -0.80% lower than last week, at 4,659.03 points.
  • The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -1.86% lower than last week, at 14,806.81 points.
  • The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 1.55% higher than last week (Friday AEDT), at 7,563.85
  • The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 4,766.58 for the month, down -7.81% for the month to date

Investment story of the week: Ltd (ASX:RNT) Ltd has several products that make up its revenue model. The first product is designed to help renters apply for, and move into properties; called RentCheck. The second product is called RentConnect, which is a utility connection service in partnership with AGL. stated that approximately 10% of AGL’s new consumer electricity and gas connections nationally had been sourced via this product. The company also has a Renter Resume profile, whereby renters have an online profile and access to an application system, making the rental experience easier. Last year, the company also launched RentPay, a platform to give renters the ability to control rental payments. They can decide the time they pay rent, as well as keep track of how much they have paid over time. This product is also beneficial for the landlord or agent, as they can receive the correct rental amount on time, and keep track of the renters history. The company has had a strong start to 2022, rising by nearly 30% this month already. With all their products and services established and running smoothly, the company may have a brighter future ahead.

Money mistake of the week: How fear could hinder your property roadmap.
Afraid of owning property right now amongst so much uncertainty? We know how you feel. And, we also know how to make you feel better about it. Join me as I talked to Shaun Lordan about keeping a level head in times of fear and setting yourself up for future financial success. Check out our full chat here.

Jargon Buster of the Week: Interest only loan (Via Mozo)
An interest-only loan enables a borrower to pay only interest on the amount they have borrowed, instead of paying down the original loan amount as well. With an interest-only loan, the original loan balance remains unchanged. Because you are not actually paying off your loan, your monthly interest payments are lower than those for principal and interest loans.

Podcast from last week:  #151 Money chat w. Luke – Building investment momentum
In this episode, I chat to Luke who is a client that we’ve been working with for the last 12 months, we talk a bit about his journey and how he set himself up to take action on some financial decisions coming out of the really scary time that was, COVID how we tackled his investment planning and strategy work.

Some of the key things that have really moved the dial for him in the last 12 months and his tips for other people in a similar situation. Luke has got some serious traction,  just like adjusting a very short amount of time. So there’s a lot of gold to learn from this one.


Be awesome,


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.

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.