Smart money weekly; worst super funds, property turning, boosting super & employer share planning
Hey team,?
Happy Sunday.?
And just like that… spring has sprung. Seemingly not soon enough though as the last month was the worst August Wall Street has seen since 2015. CoreLogic's property index also showed homes values in Australia falling 1.6 per cent in August. This is the biggest monthly decline since 1983.?
The Australian Prudential and Regulatory Authority (APRA) tested 69 default MySuper products against investment performance, fees and costs criteria. The financial regulator has revealed five superannuation funds have failed its annual performance test, four of these funds failing for the second time. These four funds will now be closed to new members. The four funds are significant in size, with more than half a million members between them and assets worth almost $25 billion.
In the news: Simple way to boost your superannuation by $252,000. Thousands of Aussies have over $2 million in their super funds – yet many others languish far behind. But there’s a simple way to boost your balance. Check out the article here
Upcoming events:?
This month we’re going to dive into some money and investing hacks so you can learn some simple ways to progress your wealth journey. Usually, the KISS methodology is best - Keep it simple stupid.?
Event schedule and links to book here:
Share market wrap
The S&P/ASX200 is back in the red this week. Over the last five days, the index has lost 2.53% and 8.73% over the last 52 weeks (at time of writing). Wall Street recorded their worst August in 7 years which has had an impact. However, when the markets are down, opportunity is present. The S&P/ASX200 volatility index has risen almost 23% over the previous 5 days (at time of writing) so, invest appropriately and accordingly.??
Key sharemarket numbers:??
?Investment story of the week: American West Metals Ltd. (ASX:AW1)
Thursday saw American West Metals Ltd share price rise by over 81%. The company announced its first assay - testing metal ore to determine the ingredients and quality. The results from its diamond drilling initiative for the company’s Storm Copper Project in Canada reported high grade and thickness of copper. Managing director Davie O’neill stated “These results immediately validate the historical high grade intersection… highlighting the quality of the Storm mineral system. These kinds of grades and thicknesses are exactly what we want to see as we work to define a shallow high-grade copper resource.” Keep an eye on AW1.?
Smart Money upside #85
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.
Numbers/Background
Individual, early 40’s; household income ~ $110k; total assets ~ $660k; savings ~ $30k annually?
Frustrations?
Holding a large cash balance, with no real direction as to what to do. He felt that he was suffering from analysis paralysis.
What they wanted from us / the advice process
Primarily a structured plan and timeline to ensure that proper use of his funds were taken into account, and that he was building wealth in a comprehensive and tax effective way.
What success looks like for them
Primarily a property under his belt. In addition to this, a diversified share portfolio to produce passive income. At some stage down the track and into the future, another property is likely to be on the cards for him and he flagged this as a goal.
What money strategy they were following before we went through the planning process
领英推荐
Build in cash, and all savings continue to go to cash. He really had no strategy when he engaged Pivot Wealth.
What money strategy they chose to pursue from our planning work
A multi pronged investment strategy, including property, share portfolio, cash build, and a review of superannuation.
Key benefits of going through the process
Clarity, certainty, a plan that he could follow and one that was easy to follow, as well as a plan that really achieves his goals.
Value of advice after all advice fees year one: $25k
Year 20 upside after advice fees: $1m
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 the start of the month we set out with what I thought was an ambitious goal of making 700,000 positive impacts in the world through our business-giving partnership with B1G1. I’m stoked to say that with your support we’ve just reached our goal, providing over 716,000 days of access to clean, life-saving water for families in the developing world. Thank you so much to everyone who got behind our 1-1 Money Breakthrough sessions to make this come together. I feel incredibly privileged that we’re able to help people do better with money and have a positive impact on our planet at the same time.?
Money hack of the week: How to decide which expert is right for you.
Are you trying to fit a round peg into a square hole? There is so much advice floating around nowadays that it's hard to know the best approach to improving performance. Join Kate McKenna and I as we talk about the reality of the situation - there is no one-size-fits-all approach to your finances; only what works best for YOU. Check out the chat here. ?
Money mistake of the week: Why your website must cut through the noise.
Online or offline, communication is KEY and of course, a website isn't complete if it doesn't communicate your unique value. Jon Hollenberg joined me on the podcast to share his thoughts on making websites that share the magic. Every client is unique, and everyone has a unique story to tell. Full chat here?
Jargon Buster of the Week: Self-managed super fund (SMSF) (via Macquarie)
An investment vehicle that houses the retirement savings that you can manage yourself, subject to certain legal rules. SMSFs are regulated by the Australian Taxation Office.
Podcast from last week:? #246 How to save more money faster
This episode is a recording of a live event I did on How to save more money faster. I talked about savings, hacks, principles and frameworks that can make it easier for you to save more money and how quickly you can accelerate your savings.
I dive deep into what I've found to be the biggest hacks that make a difference when it comes to your savings success, how I run my bank accounts and how I've helped thousands of other people run it for themselves. Once you get on the front foot with your funds, you can make smarter decisions and get ahead with your money.
This episode is perfect for people who want to do better with their savings and money.
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,?
Ben
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 of 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 .