April 6, 2025 • 40 mins
While sweeping tariffs rock the global economy, it's hardly discussed how it will impact the everyday person.
So, where is the safest place to put your money?
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks abnight.
Speaker 2 (00:36):
And welcome back to the show. This is the Weekend Collective.
I'm Tim Beverage. And by the way, if you've missed
any of the previous hours, you can go and check
out a podcast at News Talk, sib dot, Curla and
ZI just lot for the week and Collective, or go
to iHeartRadio. And just before you get into smart Money, look,
I will acknowledge there were a lot of people who
wanted to have a chat with or about the pandemic
(00:57):
and all that sort of thing, but really the purpose
of having actually Bloomfield on was to talk about the
future of our health system and the problems that we
are facing, which is why I wasn't dwelling on and
going to be digging into the various theories people have
about the last you know, the years of the COVID virus.
It wasn't that we were avoiding it because we didn't
(01:18):
want to talk about it in terms of the controversy.
It's just that that was not the purpose of the hour.
We've got a guy who's got a massive amount of
experience in public health, and it was interesting, I think
to have a chat about the things that are most
the biggest challenges currently for the health system. So I
thought he had some really interesting comments and if you're
interested in going back and having a listen to it,
the bit to me was that he talked about the
(01:40):
biggest problems we have is just basically, if I'm paraphrasing,
managing an aging population, how what we can do best
to live longer? And I think at top of the list,
what I took from it, apart from good nutrition and
all that was exercise. Just keep moving, keep moving and age. Well. Anyway,
that's what I got from it. So I do acknowledge
some of the slightly more colorful texts I've got, but
(02:01):
that wasn't really what the purpose was. So there we go.
Just put that one bed there. But now we're going
to shift on too, smart money and of course the
global economy. You know, we've seen the headlines shifting at
the moment to say the least warning warning. This is
a trigger warning for you, and I'm not talking about
the health how this is a trigger warning. Do not
(02:21):
look at your key we saver because you might not
like what you see. Because with the recent I'm going
to put some context in before I introduce my guest
with the recent Trump tarif announcements affecting the local markets.
So we got ten percent on New Zealand export, it's
just I think basically that's the default. We got off
lightly compared to some countries. But here's some context for you.
Over a two day period last week, the market erased
(02:45):
approximately six point six trillion in value USD Now, to
make it really fun, let's convert that to New Zealand dollars.
That is, ten point eight nine trillion dollars of value
were wiped off stocks in the US. The S and
P A loan accounted for a five trillion dollar loss
during the time frame. The Dow Jones and Dusty plummeted
(03:06):
over two point sorry two hundred points on April four,
contributing to a two day decline, as I say, which
was unprecedent of nearly four thousand points. So stock market's
been all over the place. Foreign trade is a waiting
game for US. Where are you putting your money? Where
should you put your money? Or should you just leave
(03:27):
it where it is, sit tight and wait for it
all to blow over and fingers cross all all will
be well anyway, could gold? Could that be the place
to be? I would suggest that if you're thinking about
gold now, you're probably too late. The time to do
it was a few days ago. But anyway, we're going
to dig into that. We want your calls. Oh, eight
hundred and eighty, ten and eighty. You might love the tariffs.
(03:47):
I'd probably have a point of difference with you on that.
But you know, where are you going to put your
money or where should you put your money? So personal
wealth educator at Acumen, Lisa Dudson is with me. Good afternoon,
How are you, Lisa? Good? Thank you? Actually have you
been keep you know, on your own portfolio?
Speaker 3 (04:08):
Usually I do, but I have to say the last
couple of days I haven't looked. But I do remember
looking when COVID hit and got something like a thirty
percent client in my portfolio over about teen days, and
I did watch it like every day and saw it
go down on this time round. I think I've just
been a busion. Hadn't really thought about it the last
couple of days, but yeah, probably not going to be
a happy camp and when I look at it. So
(04:28):
I'll just put my head in the sand for all.
Speaker 2 (04:30):
And for me, I haven't given it a second that's
a lie. I have given it a second thought because
of the job I do. But for me, I like
in it too. When I'm producing a concert and I'm
wondering that the ticket sales a bit sluggish, and I
suspect they might be depending what happens in the future,
and I avoid checking them. But actually works quite well
for me to put my head in the sand for
two or three weeks and then just because I know this,
(04:52):
I work out there's nothing I can Well, the psychology
is similar, so I work out that for the first
two or three weeks or a particular period, there's not
much I can do because I've got my strategy on
selling tickets, and you know what, there's nothing I can
change right now, So just ignore it for the time
being and update yourself in a couple of weeks.
Speaker 3 (05:06):
Well, that's right. And we have had a few curly
things happen in the last couple of years with COVID
and walls and a few other bits and pieces, so
it's not like we haven't been here before, unfortunately, but
we chentuly you know, generally always recover, So I think
it's just, you know, you've just got to wait the
game out, really.
Speaker 2 (05:23):
Because there was the wisdom that I've sort of listened to. No,
I haven't listened to I've heard it. If I listened
to it, I don't know. But if you're thinking of
changing your key we saber, it's too late. Absolutely So
if you had a bit of foresight a few weeks ago,
then maybe sure you could have switched into a conservative fund.
(05:44):
But now we've seen the train wreck happen. The only
thing you do is lock in your losses, do you.
Speaker 3 (05:49):
Well, that's right, and it will recover. And the thing
is is if you do change out of you let's
say you're going to growth key saber and you change
you into conservative one, you don't know when it's going
to turn around and rebound. And it could have a
really strong rebound quite quickly. I think at the moment
there's just so much uncertainty and it will settle down.
And so if you do, absolutely, if you change now,
(06:10):
you lock on your losses and then you potentially miss
the upside. And timing of the market is really, for
the vast majority of people a bit of a fool's Errand.
Speaker 2 (06:20):
I mean we look at lessons of the past when
we've seen falls in the stock market. But of course,
back back in the day of the Great Depression and
the Wall Street Crash, of course information didn't happen that quickly.
It was I'm not saying it was carrier pigeon, but
I don't know what I'm just the purpose of this
question is to get the question I'm getting too. I'm
(06:43):
just trying to set the context. Is you know, how
much can we actually learn from how markets react? Because
back then markets reacted according to word of mouth, and
however quickly you could get information from buyers to sellers
to the stock exchange. You know, they all in the
same district for one reason, I guess. But these days
that instant, that reaction of a market is bom bomb.
(07:03):
It's done even that I can say bombomb Well, absolutely, But.
Speaker 3 (07:07):
Then our houses. We're four New Zealanders, let's face it,
that's where most of our wealth is tied up. We
don't go and get valuations on our houses every day.
Obviously it's a little bit different because you don't needsari
get daily pricing on your houses. But you know, and
I've took to lots of investors in the last couple
of years who have bought in twenty twenty one, they've
bought at a really peak time. And are they selling
(07:29):
their houses straight away when the markets started to decline
at the end of twenty twenty one. Well, no they haven't.
They've just kind of ridden it through unless there's been
a specific reason for it, you know, because a few
people will be in a situation where they have to sell,
but most people just write it out.
Speaker 2 (07:45):
I guess. I guess. The point I was making is
that with the share market, it's even more futile to
try and write it out because it's too late because
people who are thinking of, oh maybe I should have
you know, got into the futures and protected this or
do that. People the machines and everyone's working that out
thousands of times before you had that thought in your head.
You can't. You can only really predict what's going to
(08:07):
happen and be a bit lucky, I guess, can you.
Speaker 3 (08:09):
Well absolutely, And even if you were shares, you know
they are very liquid, but they still may take a
day or two for the transaction to process, so you know,
it's very much after the fate because information is so quick,
so there's really very little you can do about it.
Unless you were, let's say, fortunate enough to have a
bit of a foresight a couple of weeks ago and
thought times you know tariffs are coming. It's not like
(08:30):
it's been a surprise.
Speaker 2 (08:32):
It does feel like there was. Look, I've had plenty
of conversations with people around property and money, and some
of the people who are actually sort of involved with
the property market who were confessed that they weren't as
interested and they were putting their money into shares and stocks,
and there seemed to be a what there seemed to
be up into the last few days, a sense that
you know, if you really had a good investment strategy
(08:53):
and stuck money into shares over the past ten, twenty
thirty years, you'd be doing bloody well. But I guess
times like this make the shares look a little bit unsexy,
doesn't it.
Speaker 3 (09:03):
Well, again, it's only because their pride, you know instantaneously,
and you see those prices instantaneously. Because if we got
that same information on the property market, it would be
very interesting to see how people would behave around that.
Speaker 2 (09:15):
So where do you think, what do you think that
what's happening means for where people should or will put
their money, because we can all remember the times when
everyone was in the New Zealand ethos seemed to be
sticken and property property, property, property, property property. Now we
seem to be a little more reticent on that. What
do you reckon?
Speaker 3 (09:33):
Well, I think it's all about context, isn't it. So
how much money are we talking about? Are we talking
about a lump sum? When do you need it? What's
your risk profile? You know, there's a whole range of questions.
I think you need to just go, you know, go
and discover before you answer that. But great time to
maybe paying off your mortgage. So if you've got some
extra cash at the moment, maybe what you do is
you just have a strategy of paying down your mortgage
(09:54):
faster and wait for things to settle down a wee bit.
That's not a silly idea, well that is.
Speaker 2 (09:59):
That's one of the questions that we've asked a few
times is that if you have that spare casher, you
better to invest it or you're better just to pay
off for the mortgage. Because if you're paying off a mortgage,
it's say you're on six sish percent on average, I
don't know, then that's six percent that you would have
to earn after tax on an investment if you're going
to split that money elsewhere, correct, yeap.
Speaker 3 (10:18):
So I mean it's an interesting discussion, and I've had
this with lots of people over many years. Is that
it's technically it's quite hard to beat the return that
you get paying off your mortgage because of exactly what
you're saying, you need to get an after tax return
on your investments. But there's a psychological component of the
fact that sometimes people feel better knowing that they have
(10:41):
something other than just their mortgage. So they've got a
savings plan as well as paying off that, so they've
got it, they've got like a double or multifaceted strategy.
The other thing is, you know, I've often stood up
at SEM nine and said, okay, if you've done a
budget and you've worked out that you've got to spare
thousand dollars a month, where would you put it? Would
you put it into a mortgage or what would you
do with it? And nine times out of team people
(11:02):
spend it, go on holiday, upgrade the car. They don't
you say, i'd pay off my mortgage faster. So when
you're thinking about it from that point of view, sometimes
I think it's almost better to take that thousand dollars
and put it into some sort of savings plan because
it's more likely to happen than what it would be
to pay off your mortgage.
Speaker 2 (11:20):
Yeah, and it seems like I've actually you actually preaching
to the choir in this one, because I've actually just
been going through this whether there's a bit of a
miscommunication with my bank, which I'm about to take them
up on in quite a strong fashion. But I had
money in my business account where we're you know, over
the years, where we've built up this sort of nestig
But I thought, okay, if I'm gonna I loved having
(11:41):
it sitting there. I just liked having it sit there
because I thought there's some money to play around with
with other ideas. But then I thought, hang on a minute,
that sits there for a year. What's that money worth
if I just shove it on my mortgage and just
take some sort of credit account out that I can
probably dip into it. It took me a long time
to decide to do that because I loved having that
(12:03):
the it's the argument about that thousand dollars a week,
I'll just stick it into an account where I can
go ooh, there it is, rather than the boring thing
of going, well, I've reduced my mortgage by a few thousand,
but I don't have any play money left.
Speaker 3 (12:14):
Well, that's right. And then so it comes back to
the context of again of who are you and what's
going to work best for you? So we've got a
technically a technical conversation around where is where is the
best return? And often it is putting it into your
own personal mortgage. But then there's the what's actually going
to work for you at the end of the day,
And you know, do you need some emergency funding too?
(12:34):
You know, and financial advisors always talk about having three
to six months of your expondit youre put aside somewhere.
Will you ruther than having that in a separate bank
account when you're running no or very little interest. You
could have that in an offset account. But then to
have an offset account, then you've got to be disciplined
with your money, because otherwise it can be a little
bit dangerous because you can get access to it. And
so for some people that's not ideal.
Speaker 2 (12:55):
We want to know what you're doing with your money
and these uncertain times, Okay, whether you are just you
just struggling to keep your head above water, and it's
there's not much of a decision debate as one thing.
But if you've got a bit of it, extra money
to invest, where are you putting it? Where are you
thinking you're putting it? Are you just sitting tight because
you have no idea what the stop market is, or
are you thinking, hell, stop maker caun't fall any further.
(13:15):
I'm going to pump a whole lot of money into it,
or are you going to do the old buy gold
which I've had so often people, My money is, it's
where it's gold, as we're golders, put it where gold is.
But you know what, if you shoved it in Berkshire
Hathway instead stick it in gold, you'd be a hell
of a lot richer, maybe in safe times, but you'd
have to see those safe times coming. We want your calls.
What are you doing with your money? Or are you
(13:37):
just sort of like you know what things are up
and down? Who knows what's going to happen. I don't
know what Trump's going to do with his tariffs. I'm
just going to let sit it out and just leave
it where it is and let let my fund managers
look after everything. What do you reckon? I eight hundred
and eighty ten eighty text nine two just probably go
to the break. Have you ever bought gold, Lisa.
Speaker 3 (13:56):
No, I haven't. I think some of the funds that
I've got have got some exposure to it, but I
don't know when I've looked at it over the long term.
I just think that you know, there are other good
performing investments. I think do just as well when you
look at it from a longer term perspective.
Speaker 2 (14:11):
If you were to buy gold, would you want to
have it in your hot little hands?
Speaker 3 (14:14):
Ah, don't I suppose. I don't really think like that.
Speaker 2 (14:17):
No, No, just for the fun side of it. They
had an item on the news and they had a
gold somebody's perching gold and they show little gold nugget,
and I thought, but I'd be wirried. I'd stick it
to a soft drawer and forget where it was, So
I reckon, that'll be the safest place for it. Don't
have the safe. I'd have a safe with a few
bits of paper in it, and I'd probably stick the
gold in the sock draw By the way, people, I
(14:38):
don't have any gold it's not my soft drawers, so
don't even try and track me down. You might get
some you can go and clean my socks of course. Anyway,
it's twenty one past five. Where are you putting your money?
Where should you put your money? But also you can
offer your predictions as to what's going to happen with
these tarists, because it's extreme what's going on right now.
If he can persists with it, I can't see it
(14:59):
being a great outcome for everyone. My bet is he's
going to find somewhere pulling the pin but saying, ah,
people to the people at table, we negotiated and this
is the arrangement we've got or not. Twenty one and
a half past five, This is news talk said, be
back in the moment, Yes, welcome back to smart Money.
Lisa Dudson, personal wealth educator Acumen is with me, and
where are you putting your money? Given what's going on
(15:21):
with the share markets? And as I say, warning, warning,
do not check your key we saver, although I think
I might do mine in the break next break look
sax some cause Gary.
Speaker 4 (15:31):
Hello, Hey and leisure. I understand I can't change at
the moment, but can I change the amount and want
to be better for me to take because at the
moment I'm at three percent on my queue server of
my wages.
Speaker 3 (15:52):
Yes, so you're you're so you're putting key You're putting
three percent of your wages into your keyp saver. And
your question is should you increase three percent?
Speaker 4 (16:02):
Yeah? Because the stocks, I say, old, I've got up
to like ten percent?
Speaker 2 (16:09):
Are you? And can I ask are you in an
aggressive or a conservative or a balanced fund? What sort
of fund you in?
Speaker 4 (16:15):
Well? I think I'm a conservative?
Speaker 3 (16:18):
Okay, Well in question actually, and have you got spear cash?
Like do you do you have a mortgage? Have you
have you got spear cash?
Speaker 4 (16:27):
Okay, I'm not a single fellow.
Speaker 3 (16:28):
Okay, you're a single fellow. And are you Are you
saving your keep saver to get into a house or
you've got your own house already?
Speaker 4 (16:36):
Now I don't have a boarding house, but yeah, I
don't have rent. Now I'm not looking at house right,
But you.
Speaker 3 (16:44):
Got Okay, So it's a good way, I mean, potentially
it can be a really great way of savings. The
only thing you need to be mindful of because you
can increase it from three to four to six to
eight or ten percent is that you can't get access
to those funds and to you're the age of sixty
five unless you leave the country or have a terminal illness,
(17:05):
or you have hardship meet the hardship requirements. So the
thing with Kibi savers, it's a great long term compulsory
savings plan, but it is locked in most circumstances.
Speaker 2 (17:14):
Because that's an interesting question. Of course, I would say,
if you're in a conservative fund, it's going to be
it's not going to be heavily dabbling in the share
market anyway, conservative fun.
Speaker 3 (17:24):
No, it's small exposure.
Speaker 2 (17:26):
Whereas if you're in a really aggressive fund and say
it's lost a bit of value, would that be if
you decided, well, actually, you know what, this is going
to make up time, then there'll be more of an
argument for possibly not personalized to vanished advice, especially if
not from me. But would there be an argument to
stick a.
Speaker 3 (17:43):
Bit more in Yeah, I mean again, it always comes
back to that context of you know, do you have
some emergency savings, do you have a mortgage, you know
what other sort of access to funds that do you have?
But if you've got spend money floating around that you
don't need for the long term. This represents a good
buying opportunity at the moment. And what it brings into
a question is the whole dollar cost averaging. So what
(18:04):
that essentially means is that you're buying in Let's say
you get paid monthly, you're buying a small amount every
month with your contribution. Let's say you're three percent into
the market, So over a period of time, you're averaging
out the buy price that you buy into those funds with. Anyway,
but absolutely at the moment, if you've got spare money
that you don't need for the long term, this is
(18:26):
potentially a great time to be buying. And albeit if
you are in a conservative fund you won't get quite
the value that you would if you're in a growth fund.
Speaker 2 (18:35):
I've just looked at my key we saven now, but
I'm guessing that it'll be tomorrow then I need to
look because it says balance as at four April twenty
twenty five, which is our fourth of April, which is
only part of the way through the carnage on Wall Street.
So I shouldn't look it on a Monday right because
it's barely had a blip. It's only had a slight light.
Speaker 3 (18:54):
Maybe it just depends on when the pricing is too
you know, yeah.
Speaker 2 (18:57):
Yeah, either that or my key we save a fund
sort of coming and they're very clever. But I just
don't imagine.
Speaker 3 (19:02):
That than that you might be wishful thinking.
Speaker 2 (19:05):
Yes, indeed, right, let's take some more course. Where are
you putting your money in turbulent times? That's the question.
Eight hundred eighty ten eighty Nick, Good afternoon.
Speaker 5 (19:15):
Oh, good afternoon. I'm just happy that I think it's Lisa.
Speaker 3 (19:18):
Is it lethal, Yes, it's Lisa.
Speaker 5 (19:20):
Yeah, I'm glad that you said something. Fine because I
was listening to it, you both in the car, and
I never call up the radio, but I thought I
have to call up and make sure everybody's doing sound device.
Based on data, the market's gone down about thirteen percent
since last week, so that you drop at the moment.
The market goes down ten percent about once every two years,
(19:42):
and it goes down twenty percent about one sevy five
or six years. If you're in the market. This is
as you said, Lisa, are buying opportunity. Gold hasn't returned
anything since nineteen hundred to two and one hundred years.
If he took gold. It doesn't produce anything, So when
you're buying, you want to know what you're buying. You
also talked about paying down interests. I never agree with that. Hi,
(20:05):
It's about allocation of capital and return on capital. So
if your interest rate is five percent of the bank,
but you can get ten percent of the market, you
should be buying the market. Well, if your introwight was
fifteen percent and the market was ten percent, should be
paying down.
Speaker 3 (20:17):
Well that's great, and I don't disagree with that, but
I just think, you know, when you're talking to the
majority of people, they don't potentially have access to investments
at ten and fifteen percent have the you know, have
the knowledge or have the risk appetite to be to
going at that level. So for the average person, there
is a lot of sense in paying down debt.
Speaker 5 (20:41):
Well, the market's outformed. What for the last one hundred years,
there would be five hundred hairs averaged ten percent a
year before inflation. You talked about Berkshire, He's talked about
Birdsure hath the way before. He's averaged twenty percent for
about the last sixty years.
Speaker 3 (20:55):
Yeah, it's done really well.
Speaker 2 (20:56):
Yeah, what you and Nikki you and are you just
an investor? Are you actually in the game?
Speaker 5 (21:03):
What do you mean in the game?
Speaker 2 (21:04):
Is your job providing financial advice.
Speaker 5 (21:07):
By business owners on all sorts of things. So I'm
not a licensed financial provider, but interesting enough, one of
my clients is, and I give him advice. Here's the advice.
I'd give it all your listeners.
Speaker 3 (21:19):
I don't disagree with anything that you're saying.
Speaker 5 (21:23):
Yeah, I just make a point. The market, which we're
talking about, the share market, is the only place where
when prices go down, people cry, and when prices go up,
people rejoice. It should be the other way around. If
you think what your favorite car is, your favorite food is.
If you go to a restaurant and they double the price,
you wouldn't buy buy the food. But if they said,
you know what, everything's half price, limited time, you'd have
(21:46):
two stakes or whatever. So you have to understand that
in the short term, the market is a voting machine
and the long term is a wave machine. As for
Benjamin Graham, the intelligent investor.
Speaker 2 (21:56):
What about property? Where do you say, what do you
think of property? Have you been and dabbled in that?
Speaker 5 (22:01):
I think that So to Lisa's point about where if
you the average person and you don't think you can
really get into probably because I've just actually gone and
got some more money from the bank, and with there's
big numbers and it's hard to get money now they've
got there's a lot of sand and the oils of
the economy due to the labor changing their laws around borrowing,
so banks have a lot of restrictions on they have
(22:22):
to look at your income, et cetera. I say, if
you're an average person, to go to Leasa's point, Keev
savers only got at three percent. There's no financial incentive
other than the five hundred dollars in the match you
from your employer to do Keev savor because it's not text.
Speaker 3 (22:34):
Yeah, but I look, I don't just interrupt you there.
Speaker 2 (22:37):
Hang on, we're turning into a bit of a lecture here.
We'd like to let Lisa jump in and you can
add another point in a second.
Speaker 4 (22:44):
Yeah.
Speaker 3 (22:45):
I think, well, I don't think I'm disagreeing with anything
that you're saying, but you're forgetting human nature and you're
forgetting you know, psychology in there, because not everything runs
like a textbook. So if you read a textbook and
you know I don't. I don't disagree technically on what
you're saying, but that's just not necessarily how a lot
of these things play out in life. And I think
(23:05):
those are the things sometimes we have to think about
the context of the average person and how they're listening,
and you know what makes sense for them on a
practical level.
Speaker 2 (23:15):
As your vibe right now, Neck is that, look, markets
have fallen, it's probably not a bad time to stick
a bit more money into it. Would that be a
crude summary of what you're suggesting.
Speaker 5 (23:26):
Yes, well, what I'm saying is a no, Lisa, I
do completely understand. Emotional temperament is the key to investing.
If you don't have emotional temperament, don't buy a house,
don't buy shares, don't buy goal. You have to be
calm and rational. Now, people are irrational, irrational things I
coach people full of and I understand it. I just
want to first my point on key we save it
(23:47):
in America because I used to live in America. They
have a very climate fans called the four on one
K and you can put up to about twenty two
thousand US a year, and that's tax deductible. That comes
off your income. In New Zealand, Hallan Clarke and Michael
Cuhen set up at first not so you pay your tax,
then your money goes in the key we so you
should do you three percent, get the matching from there,
(24:08):
pour and get the five hundred and twelve dollars a
year the government gives you. But other than that you
should use something like a share trading platform what shares
is or hatch and buy the S and P five hundred,
which is saying all the spot fun and just do
what Lisa said, do what cost averaging and don't don't
you're saying time you're going to look at yours on Monday,
don't look at yours.
Speaker 2 (24:26):
No I said that. Don't take me literally. I'm not
going to be looking at mine on Monday. Don't worry
about it.
Speaker 5 (24:32):
I'm just tried to. So going back to where where
you put your money, if you are happy buying the
index which is for ninety nine, So just so you know,
only one percent of fund managers outperform the index. Now
I am personally in my KIV saver and Milford said
a active growth fund, which is one of the always
the top performing them official funds of the two best returns.
The S and P five hundred has outperformed it last
year by.
Speaker 2 (24:52):
Double Hey, just quickly, just quickly.
Speaker 5 (24:54):
Neck, what's perspective?
Speaker 2 (24:55):
Yeah, yeah, okay, okay, I just got one last question.
Speaker 5 (24:58):
Point one more point hang on one more point five
by twenty three percent last year, it's gone down by thirty.
Now it might go there more.
Speaker 2 (25:07):
That was my next question. Actually, I was just going
to ask you, how far do you think it's kind.
Speaker 5 (25:11):
Of for well, the purpose of predictions is to make
fortune tellers look good. There's nobody there.
Speaker 2 (25:18):
Well, just when you get you hang yourself out in
the breeze of their neck. But hey, mate, unfortunately we've
got to go to a break. But thank you for
your core. We'll be back. And just to take lots
of food for thought from Nick there, I.
Speaker 3 (25:30):
Think, I mean, I mean a lot of good points. Again,
it's just that human psychology is quite a key thing.
Speaker 2 (25:35):
It's interesting questions just around human psychology about just how
much your nerves can take a jangling from these things.
I mean, as as Nick says, if you just invest
in this and P over the last thirty forty fifty years,
you'd probably be feeling quite good.
Speaker 3 (25:53):
And I also I think you also underestimate how many
people when they when things are a little bit tough,
they access those savings that they have, whereas they can't
access kiwisaver is easily. And so the compulsory locked and
nature of semi compulsory nature and locked and nature of
kiwisaver I think does work out for a lot of
people on the long term because it's just much harder
(26:14):
to access it when you feel like you just need
a little bit of extra money.
Speaker 2 (26:17):
Just by way of having a look at it, I've
got the market. I've got one of the market sap
on my apps on my phone over the past five
years from the sixth of April twenty twenty two fifth
of April twenty twenty five, which includes that that drop
off one hundred percent growth in five years in the
S and P. It's not bad, is it. I guess
(26:38):
the question is how far is that drop off going
to continue?
Speaker 3 (26:41):
It's interesting now you're looking into a crystal ball, really
and then you know, I could rebound quite quickly, because
I think it's markets rebound with uncertainty. Right, so once
everyone maybe gets used to the tariffs or we don't
even know where the Trump's going to keep these all
these tariffs the way they are, right, because you know,
anything can change.
Speaker 2 (26:58):
I think that's the thing that's soone's settling just who
knows what he is going to do.
Speaker 3 (27:02):
Yeah, but it will settle itself down, and when it
does settle self down, markets will start recovering.
Speaker 2 (27:07):
Hmmm, it's interesting. For what isn't it? The S and
P five hundred Right, We'll take more calls in just
a moment. We've got lots of text to get onto,
so we'll we'll crack on in just a moment. It's
twenty two minutes to sick, so tag the rain.
Speaker 5 (27:23):
Back for.
Speaker 1 (27:27):
Speak of two Miss let's sounds like the rain.
Speaker 2 (27:36):
Welcome back to the show. This is the weekend collective
Smart Money. My guest is Lisa Dudson. She's a per
personal wealth educator at Acumen. Actually was this her choice
of song? I do that was her choice of song. Actually,
we've going to forget you to have a think about
your choice of song so we can give you a
give you a request as part of your part of
the joy of appearing on the show.
Speaker 3 (27:54):
Letter I'll look forward to that.
Speaker 2 (27:56):
Okay, let's get into some of the questions. We've got
lots of texts on this. You can jump the que
if you want to give us a call on eight
hundred eighty ten eighty. It just changed my key WE
safer percentage to ten percent in the last week. Of course,
that's a good, healthy contribution, isn't it. It is? So
what says what happens if I changed my key WE
save a percent to ten percent last week? Well, it
(28:19):
doesn't mean anything. You're just sticking more money from your wages.
Speaker 3 (28:22):
That's right, And I mean you may not have depending
on when you get paid. You may have bought more
shoes in the last few days, or you may not have.
Speaker 2 (28:29):
Okay, can I use existing key WE saber funds to
pay down my mortgage? I can answer that. No, No, hooray.
That's so. Would it be a good time to put
money into shares.
Speaker 3 (28:41):
Yes, providing you've got you know, you've got some risk tolerance.
So because it may come down further and it may
be a bit more rocky for it for a while yet.
But in terms of is the market cheaper now than
what it was a week ago, yes, so it is
reasonably goodbye.
Speaker 2 (28:56):
Instead of paying that money off a mortgage, I should
have just waited till.
Speaker 3 (28:59):
Well, again, it's who knows it's for risk. Well, this
is where you go and see a financial advisor, right,
because you start looking at the context of the of
your own personal situation. Right. These questions are just not
that straightforward. They seem straightforward, but there's a lot of
context around them.
Speaker 2 (29:14):
It's interesting the attitude for risk thing, too, because so
I get nervous. I would get nervous if I stop
I don't know, ten twenty thousand dollars or something and
suddenly decided right, share markets taking a tumble, I'm gon
shove it in for and see where it goes. But
I'd be really nervous about that. And yet when I
produce a concert, the risk profile for that, I don't
know how to quantify that.
Speaker 3 (29:34):
Because risk is often linked to your knowledge and experience
about something, right, So you don't need to understand the
share market as well as what you understand doing the concert.
Speaker 2 (29:43):
I know much. I understand that either, to be honest,
because it's the shifting stands of time. What's that from? Ah?
The days of our lives?
Speaker 3 (29:50):
Oh your closet, days of allies?
Speaker 2 (29:52):
One never but I think we've all heard that heard
that Intro Sun has just signed up to buy first house.
Now his kei we savor is disappearing. Any thoughts cheers,
Steve Case. So they can use their Kiwi saber to
buy their first house, but they haven't taken the money
out yet and it's taken a hit.
Speaker 5 (30:11):
Yeah.
Speaker 3 (30:11):
Well, I think there's a couple of things in there.
As one as you know, when are you buying the house,
because normally you take the funding, your money out of
you kipi saber pretty much at the same time you
buy a house.
Speaker 2 (30:22):
The first piece of advice for anyone else who's doing it.
Speaker 3 (30:25):
Yeah, so they may not. He might be. I don't
know whether he's buying house now or whether it's you know,
sometime and then a short term future. The second thing
is is if you are looking at buying a house,
you probably want to be thinking about being in a
conservative fund. Were certainly in a conservative fund close to
the time that you want to be.
Speaker 2 (30:40):
So this is advice in hindsight. Because he says Son
has signed up to buy a first house, I'm going
to assume that's I'm going to assume just for our
show that that's a contract, in which case ideally you
would have wanted to have withdrawn that fund those funds
or conservative of them.
Speaker 3 (30:57):
That's probably horse has bolted on that one by the
sounds of.
Speaker 2 (31:00):
It, So Steve, it's a son anyway, So Steve, I
think any thoughts. Yeah, you might need a you might
need to see if you can subsidize your son a
bit more if he's lost a bit of money. But
there we go. It's nothing.
Speaker 3 (31:11):
Well, so much you can do about it. Yeah, And
it may also be a couple of weeks to go
before he settles in the funds and needed anyway, so
I may recover a little bit by then. We just
don't know the timing And that question, how smug would.
Speaker 2 (31:22):
You be feeling if you'd pulled your money out of
the market a couple of days ago and then well,
I guess you'd have to make a decision as to
when you're going to put.
Speaker 4 (31:28):
It back in.
Speaker 2 (31:29):
That's right. Have you ever done that?
Speaker 5 (31:31):
No?
Speaker 3 (31:31):
I tend to think, because I all the research that
I've looked at, you have to be pretty lucky to
get your timing right on that. And so I'm a
long term investor, so I just do the long term.
Speaker 2 (31:41):
I think most people who are successful investors. Generally you
chat with them and you find out that they're frustratingly
long term. It's just in the pub you hear people go, oh,
I bought this at such and such and I did this.
It's like, speak them six months later it's all gone.
Speaker 4 (31:52):
Yeah.
Speaker 3 (31:53):
But I remember ring an article this is a few
years ago about like something that ninety percent of day
trade has lost money. And those are people that are
actually trading professionally is their job, and they were still
losing money. So I just think that, you know, if
it's a small percentage of people that do really well
in that trading space, and I tend to be a
bit more of a long term investor.
Speaker 2 (32:12):
Yeah, okay, let's have got a few more texts. I've
got so many questions coming to my own mind on
this part of better. I'll ask you those when you
take the break. We're looking at buying an investment property.
It's going to raise our mortgage by about three hundred
a fortnite, but the rate will cover the mortgage on
the investment property. Do you think this is a good
thing to do or use that three hundred dollars to
pay down the mortgage on our own property.
Speaker 3 (32:33):
Well, if you can afford to buy a second property.
What I've always been a big fan of property investment.
So you just need to understand the rules of the game,
you know, because it's not that straightforward. You know things
about risks of losing tenants, maintenance costs, you know those
sorts of things. But if the way that I look
at is that you're using leverage and then you've got
growth on two houses as opposed to one, So you've
(32:54):
got a growth on your own home and you've got
the growth over the long term on your investment property
as well. So generally speaking, that's going to give you
a better return over the long term than just.
Speaker 2 (33:05):
Having assuming that leverage cacks in and we have some
decent growth in the market and you're not subsidizing the rent.
Speaker 3 (33:10):
For well, even if you do subsidize it, just as
long as it catches that up. Yeah, that's right, and
most of the cases it will. If if again, long.
Speaker 2 (33:18):
Term, what do you enjoy investing the most property or shares?
I do both, So what's what's the one that what's
the one that gives you the fresh.
Speaker 3 (33:27):
Song of like it depends with them having tenant issues
all So it's like sh Yeah. You know, you go
through times where you have a really good run worth,
you know your tenants, and then you have a challenging
tenant who trashes the place, and then you know, I
tend to be more of a favorite of my shaarbootfolio.
You know, obviously probably not liking my sharpootfolio so much.
(33:47):
This week nord I did post COVID that was pretty
pretty hair raising, but you know, so again I just
try to take a deep brief and think about my
long term strategy.
Speaker 2 (33:57):
The other thing is I've got a text here saying
I'm putting more money into my key we save while
the prices are down. That's more relevant if you've got
a portfolio that will have experiences those highs and lowers, yes,
as opposed to if you're just pumping more into conservative
it's not really Yeah.
Speaker 3 (34:13):
But I still think if again, if you've got the
money and it's stopping you spending the money right, well then.
Speaker 2 (34:19):
Because the other I still think that not knowing that
still think anything. What I mean is I think if
I was going to do it because Kiwi sab that's
it intil sixty five. Whereas find a fund, yes see,
that is aggressive where you still have control about it
taking money in and out. That would be well.
Speaker 3 (34:38):
Generally, my default position with most people is to go
do the minimum with kiwisaver, and then if you've got
any extra cash, either pay off your mortgage and or
have the savings into a separate fund, because then you've
got access and liquidity. But if I come across some
of my clients who aren't very disciplined with their money,
then I sometimes liked the higher amounts with kiwisaver, because
again it's that locked in nature.
Speaker 2 (34:59):
Steve says, Tim, put your money into arms manufacturing countries
worldwide up in good defense spending. That's like a very
cynical text, but actually it's probably quite true.
Speaker 3 (35:09):
Why'd you get to find the fine?
Speaker 2 (35:10):
Well, actually, how would you know how to? Yeah, I
mean who are the companies? It's funny. Well, we talked
about this before about ethical investing, and it pops up
all the time that I always say that people say, well,
you can't building investing in arms manufacturers im moral, But
actually it depends what those arms are used for. If
you are investing in a company which provides the military
resources for countries to defend themselves.
Speaker 3 (35:33):
Well, that's if you ask the people in Ukraine what
the ethical policy was around investing in arms, so they
probably be young exactly, you'd probably laugh at you because
they would absolutely want people investing in arms.
Speaker 2 (35:45):
So it's just a difficult area area for people to
get It's so easy to virtue signal this stuff as well,
if you could get a good return. I don't think
I should ask you this. I'm going to If you
could get a good return out of an arms manufacturing
company that was supplying with weapons to you know, Ukraine
and other countries, how would you feel about it?
Speaker 5 (36:02):
I don't know.
Speaker 3 (36:02):
I'd have to pause because I just think this. Sometimes
there's we are can be very judgy and say, well,
that's not right, But then again you look at the
people and as I say Ukraine as an example, and
they're trying to defend their livelihood and defend their country,
and then you sort of pause and thinking, I don't know,
you know, it's not a necessarily an easy decision.
Speaker 2 (36:22):
Actually there is a text here, I think, and I
wonder why more people didn't do this because Trump said
liberation days coming, I'm going to be whacking on tariffs.
I don't even think we need hindsight to have predicted
that the markets were not going to react well to that.
I'm surprised that more people didn't get ahead of it.
(36:43):
But this person's saying, I pulled my money out three
weeks ago writing was on the war with lunatic Trump
probably reinvest when the Democrats will get back in and
change everything back to normal and the market is settled.
I don't even think you need to wait that long,
to be honest. But why do you think more people
didn't because he literally said, you know, liberation days come
and we're going to be whacking these tariffs on. Maybe
(37:03):
we didn't. We weren't sure if he would not, because that's.
Speaker 3 (37:06):
Maybe why the markets have crashed. Awe it too, because
a lot of people have been taking their money out right.
Speaker 2 (37:10):
So ah, or they took it out after the fact.
They didn't they as opposed to you.
Speaker 3 (37:16):
But it becomes a bit of a self fulfilling prophecy, though,
doesn't it, Because people start taking it out, more people
start taking it out, and then the prices start dropping,
and that's what's what's.
Speaker 2 (37:23):
Called a crash out. Yet, do you think there's a
danger that we're really going to see a much more
problematic fall in the problem in the in the stock market.
I mean, they're talking about recession in the States and
all that sixty prediction of recession in the States. Now,
I don't know, but.
Speaker 3 (37:37):
When these things, if you look back in history, when
these things happen, we always think the world was ending,
you know, we all, you know, we always send to
think that. You know, when COVID happened, you know, like gosh,
when some of the things in the early days of that,
everyone was very very pessimve mystic about things, global funancure crisis,
everything was was completely you know, everything was coming to
an end, and some people were thinking that, you know,
(37:59):
they were going to lose all their money in the
share market. So and it does rebound. So I think
we tend to be Yeah, I suppose we just tend
to be a little bit make it a little bit
too much of a mountain out of a mole hill.
Sometimes with some of these things, we just need to
take a breath and ride it through. But again, it
comes down to your own risk profile. But if you're
losing sleep over these moments, then maybe that's telling you
(38:20):
something that you need to be in a more more
concierble Oh, I think investment strategy.
Speaker 2 (38:24):
I think a loose sleeper have money, full stop, regardless
where it is. Anyway, eight minutes to Sex News talks,
it'd be yes, welcome back, Gosh, time flies, Lisa actually
with somebody who's we're talking about gold and because that's
the sort of finite source of currency, I guess. But
the other one is the bitcoin. People often talk about bitcoin.
What's bitcoin doing it? The mask?
Speaker 3 (38:44):
So but yeah, I've just had a quick look at
that bitcorin year today it is down ten point seventy
one percent.
Speaker 2 (38:49):
What's it done in the news of the last sort
of forty eight hours, last.
Speaker 3 (38:52):
Five days, which I thought it might have gone up,
Actually it's gone down two point oh five percent in
the last five days.
Speaker 2 (38:59):
I did get a text from someone. I've been buying
short positions on the US Exchange, biding the markets for fall,
and boy is it make trumpet delivered for me. He's
talking about how much money he's made. That's from that's
from Andy. But I always think that I'm always suspicious
of texts that say they've made a lot of money,
because I'm guessing he will never tell us when he
loses a bunch too.
Speaker 3 (39:16):
Yeah, well that's what my experience is.
Speaker 2 (39:17):
Yeah, you only hear the good stories unless you are
a genius Andy, in which case, well done you. That's
well done. In fact, I think he's such a good
text he sent it twice anyway, So I guess at
the moment the advice is it's too late to pull
it out of key. We save us at tight and
see where.
Speaker 3 (39:33):
It can't pulled it out of key.
Speaker 2 (39:34):
We saver No, no, don't, that's right, you can't pull
it out. I mean sorry, don't just don't switch funds.
That's the one.
Speaker 3 (39:41):
That's the one we've got there at the end.
Speaker 2 (39:42):
Yeah, we've come out with a look, we've found a
little tune for you actually to hit out because if
you are feeling a bit stressed about your money, then
this little chune from mighty Pith and will see us right,
won't it.
Speaker 3 (39:50):
That's perfect?
Speaker 2 (39:51):
Hey, thanks so much for your time, Lisa. All right,
you're welcome shore and we'll be back same time next
weekend Sunday at Sex's next Thanks might producer tire Robits.
We'll catch you soon. The right side of lone m hmm,
always the wrong the r s.
Speaker 1 (40:19):
For more from the Weekend Collective. Listen live to news
talks it Be weekends from three pm, or follow the
podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks abnight.
Speaker 2 (00:36):
And welcome back to the show. This is the Weekend Collective.
I'm Tim Beverage. And by the way, if you've missed
any of the previous hours, you can go and check
out a podcast at News Talk, sib dot, Curla and
ZI just lot for the week and Collective, or go
to iHeartRadio. And just before you get into smart Money, look,
I will acknowledge there were a lot of people who
wanted to have a chat with or about the pandemic
(00:57):
and all that sort of thing, but really the purpose
of having actually Bloomfield on was to talk about the
future of our health system and the problems that we
are facing, which is why I wasn't dwelling on and
going to be digging into the various theories people have
about the last you know, the years of the COVID virus.
It wasn't that we were avoiding it because we didn't
(01:18):
want to talk about it in terms of the controversy.
It's just that that was not the purpose of the hour.
We've got a guy who's got a massive amount of
experience in public health, and it was interesting, I think
to have a chat about the things that are most
the biggest challenges currently for the health system. So I
thought he had some really interesting comments and if you're
interested in going back and having a listen to it,
the bit to me was that he talked about the
(01:40):
biggest problems we have is just basically, if I'm paraphrasing,
managing an aging population, how what we can do best
to live longer? And I think at top of the list,
what I took from it, apart from good nutrition and
all that was exercise. Just keep moving, keep moving and age. Well. Anyway,
that's what I got from it. So I do acknowledge
some of the slightly more colorful texts I've got, but
(02:01):
that wasn't really what the purpose was. So there we go.
Just put that one bed there. But now we're going
to shift on too, smart money and of course the
global economy. You know, we've seen the headlines shifting at
the moment to say the least warning warning. This is
a trigger warning for you, and I'm not talking about
the health how this is a trigger warning. Do not
(02:21):
look at your key we saver because you might not
like what you see. Because with the recent I'm going
to put some context in before I introduce my guest
with the recent Trump tarif announcements affecting the local markets.
So we got ten percent on New Zealand export, it's
just I think basically that's the default. We got off
lightly compared to some countries. But here's some context for you.
Over a two day period last week, the market erased
(02:45):
approximately six point six trillion in value USD Now, to
make it really fun, let's convert that to New Zealand dollars.
That is, ten point eight nine trillion dollars of value
were wiped off stocks in the US. The S and
P A loan accounted for a five trillion dollar loss
during the time frame. The Dow Jones and Dusty plummeted
(03:06):
over two point sorry two hundred points on April four,
contributing to a two day decline, as I say, which
was unprecedent of nearly four thousand points. So stock market's
been all over the place. Foreign trade is a waiting
game for US. Where are you putting your money? Where
should you put your money? Or should you just leave
(03:27):
it where it is, sit tight and wait for it
all to blow over and fingers cross all all will
be well anyway, could gold? Could that be the place
to be? I would suggest that if you're thinking about
gold now, you're probably too late. The time to do
it was a few days ago. But anyway, we're going
to dig into that. We want your calls. Oh, eight
hundred and eighty, ten and eighty. You might love the tariffs.
(03:47):
I'd probably have a point of difference with you on that.
But you know, where are you going to put your
money or where should you put your money? So personal
wealth educator at Acumen, Lisa Dudson is with me. Good afternoon,
How are you, Lisa? Good? Thank you? Actually have you
been keep you know, on your own portfolio?
Speaker 3 (04:08):
Usually I do, but I have to say the last
couple of days I haven't looked. But I do remember
looking when COVID hit and got something like a thirty
percent client in my portfolio over about teen days, and
I did watch it like every day and saw it
go down on this time round. I think I've just
been a busion. Hadn't really thought about it the last
couple of days, but yeah, probably not going to be
a happy camp and when I look at it. So
(04:28):
I'll just put my head in the sand for all.
Speaker 2 (04:30):
And for me, I haven't given it a second that's
a lie. I have given it a second thought because
of the job I do. But for me, I like
in it too. When I'm producing a concert and I'm
wondering that the ticket sales a bit sluggish, and I
suspect they might be depending what happens in the future,
and I avoid checking them. But actually works quite well
for me to put my head in the sand for
two or three weeks and then just because I know this,
(04:52):
I work out there's nothing I can Well, the psychology
is similar, so I work out that for the first
two or three weeks or a particular period, there's not
much I can do because I've got my strategy on
selling tickets, and you know what, there's nothing I can
change right now, So just ignore it for the time
being and update yourself in a couple of weeks.
Speaker 3 (05:06):
Well, that's right. And we have had a few curly
things happen in the last couple of years with COVID
and walls and a few other bits and pieces, so
it's not like we haven't been here before, unfortunately, but
we chentuly you know, generally always recover, So I think
it's just, you know, you've just got to wait the
game out, really.
Speaker 2 (05:23):
Because there was the wisdom that I've sort of listened to. No,
I haven't listened to I've heard it. If I listened
to it, I don't know. But if you're thinking of
changing your key we saber, it's too late. Absolutely So
if you had a bit of foresight a few weeks ago,
then maybe sure you could have switched into a conservative fund.
(05:44):
But now we've seen the train wreck happen. The only
thing you do is lock in your losses, do you.
Speaker 3 (05:49):
Well, that's right, and it will recover. And the thing
is is if you do change out of you let's
say you're going to growth key saber and you change
you into conservative one, you don't know when it's going
to turn around and rebound. And it could have a
really strong rebound quite quickly. I think at the moment
there's just so much uncertainty and it will settle down.
And so if you do, absolutely, if you change now,
(06:10):
you lock on your losses and then you potentially miss
the upside. And timing of the market is really, for
the vast majority of people a bit of a fool's Errand.
Speaker 2 (06:20):
I mean we look at lessons of the past when
we've seen falls in the stock market. But of course,
back back in the day of the Great Depression and
the Wall Street Crash, of course information didn't happen that quickly.
It was I'm not saying it was carrier pigeon, but
I don't know what I'm just the purpose of this
question is to get the question I'm getting too. I'm
(06:43):
just trying to set the context. Is you know, how
much can we actually learn from how markets react? Because
back then markets reacted according to word of mouth, and
however quickly you could get information from buyers to sellers
to the stock exchange. You know, they all in the
same district for one reason, I guess. But these days
that instant, that reaction of a market is bom bomb.
(07:03):
It's done even that I can say bombomb Well, absolutely, But.
Speaker 3 (07:07):
Then our houses. We're four New Zealanders, let's face it,
that's where most of our wealth is tied up. We
don't go and get valuations on our houses every day.
Obviously it's a little bit different because you don't needsari
get daily pricing on your houses. But you know, and
I've took to lots of investors in the last couple
of years who have bought in twenty twenty one, they've
bought at a really peak time. And are they selling
(07:29):
their houses straight away when the markets started to decline
at the end of twenty twenty one. Well, no they haven't.
They've just kind of ridden it through unless there's been
a specific reason for it, you know, because a few
people will be in a situation where they have to sell,
but most people just write it out.
Speaker 2 (07:45):
I guess. I guess. The point I was making is
that with the share market, it's even more futile to
try and write it out because it's too late because
people who are thinking of, oh maybe I should have
you know, got into the futures and protected this or
do that. People the machines and everyone's working that out
thousands of times before you had that thought in your head.
You can't. You can only really predict what's going to
(08:07):
happen and be a bit lucky, I guess, can you.
Speaker 3 (08:09):
Well absolutely, And even if you were shares, you know
they are very liquid, but they still may take a
day or two for the transaction to process, so you know,
it's very much after the fate because information is so quick,
so there's really very little you can do about it.
Unless you were, let's say, fortunate enough to have a
bit of a foresight a couple of weeks ago and
thought times you know tariffs are coming. It's not like
(08:30):
it's been a surprise.
Speaker 2 (08:32):
It does feel like there was. Look, I've had plenty
of conversations with people around property and money, and some
of the people who are actually sort of involved with
the property market who were confessed that they weren't as
interested and they were putting their money into shares and stocks,
and there seemed to be a what there seemed to
be up into the last few days, a sense that
you know, if you really had a good investment strategy
(08:53):
and stuck money into shares over the past ten, twenty
thirty years, you'd be doing bloody well. But I guess
times like this make the shares look a little bit unsexy,
doesn't it.
Speaker 3 (09:03):
Well, again, it's only because their pride, you know instantaneously,
and you see those prices instantaneously. Because if we got
that same information on the property market, it would be
very interesting to see how people would behave around that.
Speaker 2 (09:15):
So where do you think, what do you think that
what's happening means for where people should or will put
their money, because we can all remember the times when
everyone was in the New Zealand ethos seemed to be
sticken and property property, property, property, property property. Now we
seem to be a little more reticent on that. What
do you reckon?
Speaker 3 (09:33):
Well, I think it's all about context, isn't it. So
how much money are we talking about? Are we talking
about a lump sum? When do you need it? What's
your risk profile? You know, there's a whole range of questions.
I think you need to just go, you know, go
and discover before you answer that. But great time to
maybe paying off your mortgage. So if you've got some
extra cash at the moment, maybe what you do is
you just have a strategy of paying down your mortgage
(09:54):
faster and wait for things to settle down a wee bit.
That's not a silly idea, well that is.
Speaker 2 (09:59):
That's one of the questions that we've asked a few
times is that if you have that spare casher, you
better to invest it or you're better just to pay
off for the mortgage. Because if you're paying off a mortgage,
it's say you're on six sish percent on average, I
don't know, then that's six percent that you would have
to earn after tax on an investment if you're going
to split that money elsewhere, correct, yeap.
Speaker 3 (10:18):
So I mean it's an interesting discussion, and I've had
this with lots of people over many years. Is that
it's technically it's quite hard to beat the return that
you get paying off your mortgage because of exactly what
you're saying, you need to get an after tax return
on your investments. But there's a psychological component of the
fact that sometimes people feel better knowing that they have
(10:41):
something other than just their mortgage. So they've got a
savings plan as well as paying off that, so they've
got it, they've got like a double or multifaceted strategy.
The other thing is, you know, I've often stood up
at SEM nine and said, okay, if you've done a
budget and you've worked out that you've got to spare
thousand dollars a month, where would you put it? Would
you put it into a mortgage or what would you
do with it? And nine times out of team people
(11:02):
spend it, go on holiday, upgrade the car. They don't
you say, i'd pay off my mortgage faster. So when
you're thinking about it from that point of view, sometimes
I think it's almost better to take that thousand dollars
and put it into some sort of savings plan because
it's more likely to happen than what it would be
to pay off your mortgage.
Speaker 2 (11:20):
Yeah, and it seems like I've actually you actually preaching
to the choir in this one, because I've actually just
been going through this whether there's a bit of a
miscommunication with my bank, which I'm about to take them
up on in quite a strong fashion. But I had
money in my business account where we're you know, over
the years, where we've built up this sort of nestig
But I thought, okay, if I'm gonna I loved having
(11:41):
it sitting there. I just liked having it sit there
because I thought there's some money to play around with
with other ideas. But then I thought, hang on a minute,
that sits there for a year. What's that money worth
if I just shove it on my mortgage and just
take some sort of credit account out that I can
probably dip into it. It took me a long time
to decide to do that because I loved having that
(12:03):
the it's the argument about that thousand dollars a week,
I'll just stick it into an account where I can
go ooh, there it is, rather than the boring thing
of going, well, I've reduced my mortgage by a few thousand,
but I don't have any play money left.
Speaker 3 (12:14):
Well, that's right. And then so it comes back to
the context of again of who are you and what's
going to work best for you? So we've got a
technically a technical conversation around where is where is the
best return? And often it is putting it into your
own personal mortgage. But then there's the what's actually going
to work for you at the end of the day,
And you know, do you need some emergency funding too?
(12:34):
You know, and financial advisors always talk about having three
to six months of your expondit youre put aside somewhere.
Will you ruther than having that in a separate bank
account when you're running no or very little interest. You
could have that in an offset account. But then to
have an offset account, then you've got to be disciplined
with your money, because otherwise it can be a little
bit dangerous because you can get access to it. And
so for some people that's not ideal.
Speaker 2 (12:55):
We want to know what you're doing with your money
and these uncertain times, Okay, whether you are just you
just struggling to keep your head above water, and it's
there's not much of a decision debate as one thing.
But if you've got a bit of it, extra money
to invest, where are you putting it? Where are you
thinking you're putting it? Are you just sitting tight because
you have no idea what the stop market is, or
are you thinking, hell, stop maker caun't fall any further.
(13:15):
I'm going to pump a whole lot of money into it,
or are you going to do the old buy gold
which I've had so often people, My money is, it's
where it's gold, as we're golders, put it where gold is.
But you know what, if you shoved it in Berkshire
Hathway instead stick it in gold, you'd be a hell
of a lot richer, maybe in safe times, but you'd
have to see those safe times coming. We want your calls.
What are you doing with your money? Or are you
(13:37):
just sort of like you know what things are up
and down? Who knows what's going to happen. I don't
know what Trump's going to do with his tariffs. I'm
just going to let sit it out and just leave
it where it is and let let my fund managers
look after everything. What do you reckon? I eight hundred
and eighty ten eighty text nine two just probably go
to the break. Have you ever bought gold, Lisa.
Speaker 3 (13:56):
No, I haven't. I think some of the funds that
I've got have got some exposure to it, but I
don't know when I've looked at it over the long term.
I just think that you know, there are other good
performing investments. I think do just as well when you
look at it from a longer term perspective.
Speaker 2 (14:11):
If you were to buy gold, would you want to
have it in your hot little hands?
Speaker 3 (14:14):
Ah, don't I suppose. I don't really think like that.
Speaker 2 (14:17):
No, No, just for the fun side of it. They
had an item on the news and they had a
gold somebody's perching gold and they show little gold nugget,
and I thought, but I'd be wirried. I'd stick it
to a soft drawer and forget where it was, So
I reckon, that'll be the safest place for it. Don't
have the safe. I'd have a safe with a few
bits of paper in it, and I'd probably stick the
gold in the sock draw By the way, people, I
(14:38):
don't have any gold it's not my soft drawers, so
don't even try and track me down. You might get
some you can go and clean my socks of course. Anyway,
it's twenty one past five. Where are you putting your money?
Where should you put your money? But also you can
offer your predictions as to what's going to happen with
these tarists, because it's extreme what's going on right now.
If he can persists with it, I can't see it
(14:59):
being a great outcome for everyone. My bet is he's
going to find somewhere pulling the pin but saying, ah,
people to the people at table, we negotiated and this
is the arrangement we've got or not. Twenty one and
a half past five, This is news talk said, be
back in the moment, Yes, welcome back to smart Money.
Lisa Dudson, personal wealth educator Acumen is with me, and
where are you putting your money? Given what's going on
(15:21):
with the share markets? And as I say, warning, warning,
do not check your key we saver, although I think
I might do mine in the break next break look
sax some cause Gary.
Speaker 4 (15:31):
Hello, Hey and leisure. I understand I can't change at
the moment, but can I change the amount and want
to be better for me to take because at the
moment I'm at three percent on my queue server of
my wages.
Speaker 3 (15:52):
Yes, so you're you're so you're putting key You're putting
three percent of your wages into your keyp saver. And
your question is should you increase three percent?
Speaker 4 (16:02):
Yeah? Because the stocks, I say, old, I've got up
to like ten percent?
Speaker 2 (16:09):
Are you? And can I ask are you in an
aggressive or a conservative or a balanced fund? What sort
of fund you in?
Speaker 4 (16:15):
Well? I think I'm a conservative?
Speaker 3 (16:18):
Okay, Well in question actually, and have you got spear cash?
Like do you do you have a mortgage? Have you
have you got spear cash?
Speaker 4 (16:27):
Okay, I'm not a single fellow.
Speaker 3 (16:28):
Okay, you're a single fellow. And are you Are you
saving your keep saver to get into a house or
you've got your own house already?
Speaker 4 (16:36):
Now I don't have a boarding house, but yeah, I
don't have rent. Now I'm not looking at house right,
But you.
Speaker 3 (16:44):
Got Okay, So it's a good way, I mean, potentially
it can be a really great way of savings. The
only thing you need to be mindful of because you
can increase it from three to four to six to
eight or ten percent is that you can't get access
to those funds and to you're the age of sixty
five unless you leave the country or have a terminal illness,
(17:05):
or you have hardship meet the hardship requirements. So the
thing with Kibi savers, it's a great long term compulsory
savings plan, but it is locked in most circumstances.
Speaker 2 (17:14):
Because that's an interesting question. Of course, I would say,
if you're in a conservative fund, it's going to be
it's not going to be heavily dabbling in the share
market anyway, conservative fun.
Speaker 3 (17:24):
No, it's small exposure.
Speaker 2 (17:26):
Whereas if you're in a really aggressive fund and say
it's lost a bit of value, would that be if
you decided, well, actually, you know what, this is going
to make up time, then there'll be more of an
argument for possibly not personalized to vanished advice, especially if
not from me. But would there be an argument to
stick a.
Speaker 3 (17:43):
Bit more in Yeah, I mean again, it always comes
back to that context of you know, do you have
some emergency savings, do you have a mortgage, you know
what other sort of access to funds that do you have?
But if you've got spend money floating around that you
don't need for the long term. This represents a good
buying opportunity at the moment. And what it brings into
a question is the whole dollar cost averaging. So what
(18:04):
that essentially means is that you're buying in Let's say
you get paid monthly, you're buying a small amount every
month with your contribution. Let's say you're three percent into
the market, So over a period of time, you're averaging
out the buy price that you buy into those funds with. Anyway,
but absolutely at the moment, if you've got spare money
that you don't need for the long term, this is
(18:26):
potentially a great time to be buying. And albeit if
you are in a conservative fund you won't get quite
the value that you would if you're in a growth fund.
Speaker 2 (18:35):
I've just looked at my key we saven now, but
I'm guessing that it'll be tomorrow then I need to
look because it says balance as at four April twenty
twenty five, which is our fourth of April, which is
only part of the way through the carnage on Wall Street.
So I shouldn't look it on a Monday right because
it's barely had a blip. It's only had a slight light.
Speaker 3 (18:54):
Maybe it just depends on when the pricing is too
you know, yeah.
Speaker 2 (18:57):
Yeah, either that or my key we save a fund
sort of coming and they're very clever. But I just
don't imagine.
Speaker 3 (19:02):
That than that you might be wishful thinking.
Speaker 2 (19:05):
Yes, indeed, right, let's take some more course. Where are
you putting your money in turbulent times? That's the question.
Eight hundred eighty ten eighty Nick, Good afternoon.
Speaker 5 (19:15):
Oh, good afternoon. I'm just happy that I think it's Lisa.
Speaker 3 (19:18):
Is it lethal, Yes, it's Lisa.
Speaker 5 (19:20):
Yeah, I'm glad that you said something. Fine because I
was listening to it, you both in the car, and
I never call up the radio, but I thought I
have to call up and make sure everybody's doing sound device.
Based on data, the market's gone down about thirteen percent
since last week, so that you drop at the moment.
The market goes down ten percent about once every two years,
(19:42):
and it goes down twenty percent about one sevy five
or six years. If you're in the market. This is
as you said, Lisa, are buying opportunity. Gold hasn't returned
anything since nineteen hundred to two and one hundred years.
If he took gold. It doesn't produce anything, So when
you're buying, you want to know what you're buying. You
also talked about paying down interests. I never agree with that. Hi,
(20:05):
It's about allocation of capital and return on capital. So
if your interest rate is five percent of the bank,
but you can get ten percent of the market, you
should be buying the market. Well, if your introwight was
fifteen percent and the market was ten percent, should be
paying down.
Speaker 3 (20:17):
Well that's great, and I don't disagree with that, but
I just think, you know, when you're talking to the
majority of people, they don't potentially have access to investments
at ten and fifteen percent have the you know, have
the knowledge or have the risk appetite to be to
going at that level. So for the average person, there
is a lot of sense in paying down debt.
Speaker 5 (20:41):
Well, the market's outformed. What for the last one hundred years,
there would be five hundred hairs averaged ten percent a
year before inflation. You talked about Berkshire, He's talked about
Birdsure hath the way before. He's averaged twenty percent for
about the last sixty years.
Speaker 3 (20:55):
Yeah, it's done really well.
Speaker 2 (20:56):
Yeah, what you and Nikki you and are you just
an investor? Are you actually in the game?
Speaker 5 (21:03):
What do you mean in the game?
Speaker 2 (21:04):
Is your job providing financial advice.
Speaker 5 (21:07):
By business owners on all sorts of things. So I'm
not a licensed financial provider, but interesting enough, one of
my clients is, and I give him advice. Here's the advice.
I'd give it all your listeners.
Speaker 3 (21:19):
I don't disagree with anything that you're saying.
Speaker 5 (21:23):
Yeah, I just make a point. The market, which we're
talking about, the share market, is the only place where
when prices go down, people cry, and when prices go up,
people rejoice. It should be the other way around. If
you think what your favorite car is, your favorite food is.
If you go to a restaurant and they double the price,
you wouldn't buy buy the food. But if they said,
you know what, everything's half price, limited time, you'd have
(21:46):
two stakes or whatever. So you have to understand that
in the short term, the market is a voting machine
and the long term is a wave machine. As for
Benjamin Graham, the intelligent investor.
Speaker 2 (21:56):
What about property? Where do you say, what do you
think of property? Have you been and dabbled in that?
Speaker 5 (22:01):
I think that So to Lisa's point about where if
you the average person and you don't think you can
really get into probably because I've just actually gone and
got some more money from the bank, and with there's
big numbers and it's hard to get money now they've
got there's a lot of sand and the oils of
the economy due to the labor changing their laws around borrowing,
so banks have a lot of restrictions on they have
(22:22):
to look at your income, et cetera. I say, if
you're an average person, to go to Leasa's point, Keev
savers only got at three percent. There's no financial incentive
other than the five hundred dollars in the match you
from your employer to do Keev savor because it's not text.
Speaker 3 (22:34):
Yeah, but I look, I don't just interrupt you there.
Speaker 2 (22:37):
Hang on, we're turning into a bit of a lecture here.
We'd like to let Lisa jump in and you can
add another point in a second.
Speaker 4 (22:44):
Yeah.
Speaker 3 (22:45):
I think, well, I don't think I'm disagreeing with anything
that you're saying, but you're forgetting human nature and you're
forgetting you know, psychology in there, because not everything runs
like a textbook. So if you read a textbook and
you know I don't. I don't disagree technically on what
you're saying, but that's just not necessarily how a lot
of these things play out in life. And I think
(23:05):
those are the things sometimes we have to think about
the context of the average person and how they're listening,
and you know what makes sense for them on a
practical level.
Speaker 2 (23:15):
As your vibe right now, Neck is that, look, markets
have fallen, it's probably not a bad time to stick
a bit more money into it. Would that be a
crude summary of what you're suggesting.
Speaker 5 (23:26):
Yes, well, what I'm saying is a no, Lisa, I
do completely understand. Emotional temperament is the key to investing.
If you don't have emotional temperament, don't buy a house,
don't buy shares, don't buy goal. You have to be
calm and rational. Now, people are irrational, irrational things I
coach people full of and I understand it. I just
want to first my point on key we save it
(23:47):
in America because I used to live in America. They
have a very climate fans called the four on one
K and you can put up to about twenty two
thousand US a year, and that's tax deductible. That comes
off your income. In New Zealand, Hallan Clarke and Michael
Cuhen set up at first not so you pay your tax,
then your money goes in the key we so you
should do you three percent, get the matching from there,
(24:08):
pour and get the five hundred and twelve dollars a
year the government gives you. But other than that you
should use something like a share trading platform what shares
is or hatch and buy the S and P five hundred,
which is saying all the spot fun and just do
what Lisa said, do what cost averaging and don't don't
you're saying time you're going to look at yours on Monday,
don't look at yours.
Speaker 2 (24:26):
No I said that. Don't take me literally. I'm not
going to be looking at mine on Monday. Don't worry
about it.
Speaker 5 (24:32):
I'm just tried to. So going back to where where
you put your money, if you are happy buying the
index which is for ninety nine, So just so you know,
only one percent of fund managers outperform the index. Now
I am personally in my KIV saver and Milford said
a active growth fund, which is one of the always
the top performing them official funds of the two best returns.
The S and P five hundred has outperformed it last
year by.
Speaker 2 (24:52):
Double Hey, just quickly, just quickly.
Speaker 5 (24:54):
Neck, what's perspective?
Speaker 2 (24:55):
Yeah, yeah, okay, okay, I just got one last question.
Speaker 5 (24:58):
Point one more point hang on one more point five
by twenty three percent last year, it's gone down by thirty.
Now it might go there more.
Speaker 2 (25:07):
That was my next question. Actually, I was just going
to ask you, how far do you think it's kind.
Speaker 5 (25:11):
Of for well, the purpose of predictions is to make
fortune tellers look good. There's nobody there.
Speaker 2 (25:18):
Well, just when you get you hang yourself out in
the breeze of their neck. But hey, mate, unfortunately we've
got to go to a break. But thank you for
your core. We'll be back. And just to take lots
of food for thought from Nick there, I.
Speaker 3 (25:30):
Think, I mean, I mean a lot of good points. Again,
it's just that human psychology is quite a key thing.
Speaker 2 (25:35):
It's interesting questions just around human psychology about just how
much your nerves can take a jangling from these things.
I mean, as as Nick says, if you just invest
in this and P over the last thirty forty fifty years,
you'd probably be feeling quite good.
Speaker 3 (25:53):
And I also I think you also underestimate how many
people when they when things are a little bit tough,
they access those savings that they have, whereas they can't
access kiwisaver is easily. And so the compulsory locked and
nature of semi compulsory nature and locked and nature of
kiwisaver I think does work out for a lot of
people on the long term because it's just much harder
(26:14):
to access it when you feel like you just need
a little bit of extra money.
Speaker 2 (26:17):
Just by way of having a look at it, I've
got the market. I've got one of the market sap
on my apps on my phone over the past five
years from the sixth of April twenty twenty two fifth
of April twenty twenty five, which includes that that drop
off one hundred percent growth in five years in the
S and P. It's not bad, is it. I guess
(26:38):
the question is how far is that drop off going
to continue?
Speaker 3 (26:41):
It's interesting now you're looking into a crystal ball, really
and then you know, I could rebound quite quickly, because
I think it's markets rebound with uncertainty. Right, so once
everyone maybe gets used to the tariffs or we don't
even know where the Trump's going to keep these all
these tariffs the way they are, right, because you know,
anything can change.
Speaker 2 (26:58):
I think that's the thing that's soone's settling just who
knows what he is going to do.
Speaker 3 (27:02):
Yeah, but it will settle itself down, and when it
does settle self down, markets will start recovering.
Speaker 2 (27:07):
Hmmm, it's interesting. For what isn't it? The S and
P five hundred Right, We'll take more calls in just
a moment. We've got lots of text to get onto,
so we'll we'll crack on in just a moment. It's
twenty two minutes to sick, so tag the rain.
Speaker 5 (27:23):
Back for.
Speaker 1 (27:27):
Speak of two Miss let's sounds like the rain.
Speaker 2 (27:36):
Welcome back to the show. This is the weekend collective
Smart Money. My guest is Lisa Dudson. She's a per
personal wealth educator at Acumen. Actually was this her choice
of song? I do that was her choice of song. Actually,
we've going to forget you to have a think about
your choice of song so we can give you a
give you a request as part of your part of
the joy of appearing on the show.
Speaker 3 (27:54):
Letter I'll look forward to that.
Speaker 2 (27:56):
Okay, let's get into some of the questions. We've got
lots of texts on this. You can jump the que
if you want to give us a call on eight
hundred eighty ten eighty. It just changed my key WE
safer percentage to ten percent in the last week. Of course,
that's a good, healthy contribution, isn't it. It is? So
what says what happens if I changed my key WE
save a percent to ten percent last week? Well, it
(28:19):
doesn't mean anything. You're just sticking more money from your wages.
Speaker 3 (28:22):
That's right, And I mean you may not have depending
on when you get paid. You may have bought more
shoes in the last few days, or you may not have.
Speaker 2 (28:29):
Okay, can I use existing key WE saber funds to
pay down my mortgage? I can answer that. No, No, hooray.
That's so. Would it be a good time to put
money into shares.
Speaker 3 (28:41):
Yes, providing you've got you know, you've got some risk tolerance.
So because it may come down further and it may
be a bit more rocky for it for a while yet.
But in terms of is the market cheaper now than
what it was a week ago, yes, so it is
reasonably goodbye.
Speaker 2 (28:56):
Instead of paying that money off a mortgage, I should
have just waited till.
Speaker 3 (28:59):
Well, again, it's who knows it's for risk. Well, this
is where you go and see a financial advisor, right,
because you start looking at the context of the of
your own personal situation. Right. These questions are just not
that straightforward. They seem straightforward, but there's a lot of
context around them.
Speaker 2 (29:14):
It's interesting the attitude for risk thing, too, because so
I get nervous. I would get nervous if I stop
I don't know, ten twenty thousand dollars or something and
suddenly decided right, share markets taking a tumble, I'm gon
shove it in for and see where it goes. But
I'd be really nervous about that. And yet when I
produce a concert, the risk profile for that, I don't
know how to quantify that.
Speaker 3 (29:34):
Because risk is often linked to your knowledge and experience
about something, right, So you don't need to understand the
share market as well as what you understand doing the concert.
Speaker 2 (29:43):
I know much. I understand that either, to be honest,
because it's the shifting stands of time. What's that from? Ah?
The days of our lives?
Speaker 3 (29:50):
Oh your closet, days of allies?
Speaker 2 (29:52):
One never but I think we've all heard that heard
that Intro Sun has just signed up to buy first house.
Now his kei we savor is disappearing. Any thoughts cheers,
Steve Case. So they can use their Kiwi saber to
buy their first house, but they haven't taken the money
out yet and it's taken a hit.
Speaker 5 (30:11):
Yeah.
Speaker 3 (30:11):
Well, I think there's a couple of things in there.
As one as you know, when are you buying the house,
because normally you take the funding, your money out of
you kipi saber pretty much at the same time you
buy a house.
Speaker 2 (30:22):
The first piece of advice for anyone else who's doing it.
Speaker 3 (30:25):
Yeah, so they may not. He might be. I don't
know whether he's buying house now or whether it's you know,
sometime and then a short term future. The second thing
is is if you are looking at buying a house,
you probably want to be thinking about being in a
conservative fund. Were certainly in a conservative fund close to
the time that you want to be.
Speaker 2 (30:40):
So this is advice in hindsight. Because he says Son
has signed up to buy a first house, I'm going
to assume that's I'm going to assume just for our
show that that's a contract, in which case ideally you
would have wanted to have withdrawn that fund those funds
or conservative of them.
Speaker 3 (30:57):
That's probably horse has bolted on that one by the
sounds of.
Speaker 2 (31:00):
It, So Steve, it's a son anyway, So Steve, I
think any thoughts. Yeah, you might need a you might
need to see if you can subsidize your son a
bit more if he's lost a bit of money. But
there we go. It's nothing.
Speaker 3 (31:11):
Well, so much you can do about it. Yeah, And
it may also be a couple of weeks to go
before he settles in the funds and needed anyway, so
I may recover a little bit by then. We just
don't know the timing And that question, how smug would.
Speaker 2 (31:22):
You be feeling if you'd pulled your money out of
the market a couple of days ago and then well,
I guess you'd have to make a decision as to
when you're going to put.
Speaker 4 (31:28):
It back in.
Speaker 2 (31:29):
That's right. Have you ever done that?
Speaker 5 (31:31):
No?
Speaker 3 (31:31):
I tend to think, because I all the research that
I've looked at, you have to be pretty lucky to
get your timing right on that. And so I'm a
long term investor, so I just do the long term.
Speaker 2 (31:41):
I think most people who are successful investors. Generally you
chat with them and you find out that they're frustratingly
long term. It's just in the pub you hear people go, oh,
I bought this at such and such and I did this.
It's like, speak them six months later it's all gone.
Speaker 4 (31:52):
Yeah.
Speaker 3 (31:53):
But I remember ring an article this is a few
years ago about like something that ninety percent of day
trade has lost money. And those are people that are
actually trading professionally is their job, and they were still
losing money. So I just think that, you know, if
it's a small percentage of people that do really well
in that trading space, and I tend to be a
bit more of a long term investor.
Speaker 2 (32:12):
Yeah, okay, let's have got a few more texts. I've
got so many questions coming to my own mind on
this part of better. I'll ask you those when you
take the break. We're looking at buying an investment property.
It's going to raise our mortgage by about three hundred
a fortnite, but the rate will cover the mortgage on
the investment property. Do you think this is a good
thing to do or use that three hundred dollars to
pay down the mortgage on our own property.
Speaker 3 (32:33):
Well, if you can afford to buy a second property.
What I've always been a big fan of property investment.
So you just need to understand the rules of the game,
you know, because it's not that straightforward. You know things
about risks of losing tenants, maintenance costs, you know those
sorts of things. But if the way that I look
at is that you're using leverage and then you've got
growth on two houses as opposed to one, So you've
(32:54):
got a growth on your own home and you've got
the growth over the long term on your investment property
as well. So generally speaking, that's going to give you
a better return over the long term than just.
Speaker 2 (33:05):
Having assuming that leverage cacks in and we have some
decent growth in the market and you're not subsidizing the rent.
Speaker 3 (33:10):
For well, even if you do subsidize it, just as
long as it catches that up. Yeah, that's right, and
most of the cases it will. If if again, long.
Speaker 2 (33:18):
Term, what do you enjoy investing the most property or shares?
I do both, So what's what's the one that what's
the one that gives you the fresh.
Speaker 3 (33:27):
Song of like it depends with them having tenant issues
all So it's like sh Yeah. You know, you go
through times where you have a really good run worth,
you know your tenants, and then you have a challenging
tenant who trashes the place, and then you know, I
tend to be more of a favorite of my shaarbootfolio.
You know, obviously probably not liking my sharpootfolio so much.
(33:47):
This week nord I did post COVID that was pretty
pretty hair raising, but you know, so again I just
try to take a deep brief and think about my
long term strategy.
Speaker 2 (33:57):
The other thing is I've got a text here saying
I'm putting more money into my key we save while
the prices are down. That's more relevant if you've got
a portfolio that will have experiences those highs and lowers, yes,
as opposed to if you're just pumping more into conservative
it's not really Yeah.
Speaker 3 (34:13):
But I still think if again, if you've got the
money and it's stopping you spending the money right, well then.
Speaker 2 (34:19):
Because the other I still think that not knowing that
still think anything. What I mean is I think if
I was going to do it because Kiwi sab that's
it intil sixty five. Whereas find a fund, yes see,
that is aggressive where you still have control about it
taking money in and out. That would be well.
Speaker 3 (34:38):
Generally, my default position with most people is to go
do the minimum with kiwisaver, and then if you've got
any extra cash, either pay off your mortgage and or
have the savings into a separate fund, because then you've
got access and liquidity. But if I come across some
of my clients who aren't very disciplined with their money,
then I sometimes liked the higher amounts with kiwisaver, because
again it's that locked in nature.
Speaker 2 (34:59):
Steve says, Tim, put your money into arms manufacturing countries
worldwide up in good defense spending. That's like a very
cynical text, but actually it's probably quite true.
Speaker 3 (35:09):
Why'd you get to find the fine?
Speaker 2 (35:10):
Well, actually, how would you know how to? Yeah, I
mean who are the companies? It's funny. Well, we talked
about this before about ethical investing, and it pops up
all the time that I always say that people say, well,
you can't building investing in arms manufacturers im moral, But
actually it depends what those arms are used for. If
you are investing in a company which provides the military
resources for countries to defend themselves.
Speaker 3 (35:33):
Well, that's if you ask the people in Ukraine what
the ethical policy was around investing in arms, so they
probably be young exactly, you'd probably laugh at you because
they would absolutely want people investing in arms.
Speaker 2 (35:45):
So it's just a difficult area area for people to
get It's so easy to virtue signal this stuff as well,
if you could get a good return. I don't think
I should ask you this. I'm going to If you
could get a good return out of an arms manufacturing
company that was supplying with weapons to you know, Ukraine
and other countries, how would you feel about it?
Speaker 5 (36:02):
I don't know.
Speaker 3 (36:02):
I'd have to pause because I just think this. Sometimes
there's we are can be very judgy and say, well,
that's not right, But then again you look at the
people and as I say Ukraine as an example, and
they're trying to defend their livelihood and defend their country,
and then you sort of pause and thinking, I don't know,
you know, it's not a necessarily an easy decision.
Speaker 2 (36:22):
Actually there is a text here, I think, and I
wonder why more people didn't do this because Trump said
liberation days coming, I'm going to be whacking on tariffs.
I don't even think we need hindsight to have predicted
that the markets were not going to react well to that.
I'm surprised that more people didn't get ahead of it.
(36:43):
But this person's saying, I pulled my money out three
weeks ago writing was on the war with lunatic Trump
probably reinvest when the Democrats will get back in and
change everything back to normal and the market is settled.
I don't even think you need to wait that long,
to be honest. But why do you think more people
didn't because he literally said, you know, liberation days come
and we're going to be whacking these tariffs on. Maybe
(37:03):
we didn't. We weren't sure if he would not, because that's.
Speaker 3 (37:06):
Maybe why the markets have crashed. Awe it too, because
a lot of people have been taking their money out right.
Speaker 2 (37:10):
So ah, or they took it out after the fact.
They didn't they as opposed to you.
Speaker 3 (37:16):
But it becomes a bit of a self fulfilling prophecy, though,
doesn't it, Because people start taking it out, more people
start taking it out, and then the prices start dropping,
and that's what's what's.
Speaker 2 (37:23):
Called a crash out. Yet, do you think there's a
danger that we're really going to see a much more
problematic fall in the problem in the in the stock market.
I mean, they're talking about recession in the States and
all that sixty prediction of recession in the States. Now,
I don't know, but.
Speaker 3 (37:37):
When these things, if you look back in history, when
these things happen, we always think the world was ending,
you know, we all, you know, we always send to
think that. You know, when COVID happened, you know, like gosh,
when some of the things in the early days of that,
everyone was very very pessimve mystic about things, global funancure crisis,
everything was was completely you know, everything was coming to
an end, and some people were thinking that, you know,
(37:59):
they were going to lose all their money in the
share market. So and it does rebound. So I think
we tend to be Yeah, I suppose we just tend
to be a little bit make it a little bit
too much of a mountain out of a mole hill.
Sometimes with some of these things, we just need to
take a breath and ride it through. But again, it
comes down to your own risk profile. But if you're
losing sleep over these moments, then maybe that's telling you
(38:20):
something that you need to be in a more more
concierble Oh, I think investment strategy.
Speaker 2 (38:24):
I think a loose sleeper have money, full stop, regardless
where it is. Anyway, eight minutes to Sex News talks,
it'd be yes, welcome back, Gosh, time flies, Lisa actually
with somebody who's we're talking about gold and because that's
the sort of finite source of currency, I guess. But
the other one is the bitcoin. People often talk about bitcoin.
What's bitcoin doing it? The mask?
Speaker 3 (38:44):
So but yeah, I've just had a quick look at
that bitcorin year today it is down ten point seventy
one percent.
Speaker 2 (38:49):
What's it done in the news of the last sort
of forty eight hours, last.
Speaker 3 (38:52):
Five days, which I thought it might have gone up,
Actually it's gone down two point oh five percent in
the last five days.
Speaker 2 (38:59):
I did get a text from someone. I've been buying
short positions on the US Exchange, biding the markets for fall,
and boy is it make trumpet delivered for me. He's
talking about how much money he's made. That's from that's
from Andy. But I always think that I'm always suspicious
of texts that say they've made a lot of money,
because I'm guessing he will never tell us when he
loses a bunch too.
Speaker 3 (39:16):
Yeah, well that's what my experience is.
Speaker 2 (39:17):
Yeah, you only hear the good stories unless you are
a genius Andy, in which case, well done you. That's
well done. In fact, I think he's such a good
text he sent it twice anyway, So I guess at
the moment the advice is it's too late to pull
it out of key. We save us at tight and
see where.
Speaker 3 (39:33):
It can't pulled it out of key.
Speaker 2 (39:34):
We saver No, no, don't, that's right, you can't pull
it out. I mean sorry, don't just don't switch funds.
That's the one.
Speaker 3 (39:41):
That's the one we've got there at the end.
Speaker 2 (39:42):
Yeah, we've come out with a look, we've found a
little tune for you actually to hit out because if
you are feeling a bit stressed about your money, then
this little chune from mighty Pith and will see us right,
won't it.
Speaker 3 (39:50):
That's perfect?
Speaker 2 (39:51):
Hey, thanks so much for your time, Lisa. All right,
you're welcome shore and we'll be back same time next
weekend Sunday at Sex's next Thanks might producer tire Robits.
We'll catch you soon. The right side of lone m hmm,
always the wrong the r s.
Speaker 1 (40:19):
For more from the Weekend Collective. Listen live to news
talks it Be weekends from three pm, or follow the
podcast on iHeartRadio
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!