Finance & Fury Podcast

Welcome to Finance and Fury, the Furious Friday edition Today we will talk about democracy never really existing in The City of London We are continuing on with the series of Brexit – nothing really new to report as the vote has been pushed back until October The first episode was on the neo-cons The second episode was on Brexit Today will be a combination of those 2 episodes – subverting democracy and economies The City of London: Government is The City of London Corporation It is not the greater London region, it is the major financial services district of the UK It is technically not a part of England The city has it’s own police force They have their own power grid   The History of The City of London It dates back to the Romans They have operated in the same manner since Medieval times – enshrined the Magna Carta’s clause 9 – 1215 The companies get votes here – an example of a plutocracy There are 4 layers of elected representatives What are the livery companies? Who is the remembrancer? This has mad

Welcome to Finance and Fury, The Say What Wednesday edition Today is a special episode – we have another resource page excel tool Question from Nick “I’m sure as a Financial Advisor you are quite aware of the Financially Independent Retire Early concept, but I want to ask this question as it may be applicable to a lot of younger listeners. I wonder how achievable is a FIRE lifestyle? And what other investments exist for long term growth with high yields?”   We will go through both parts: Investments to use Working out how much you will need   Start: FIRE: Financial Independence Retire Early I believe that it is achievable – but how committed is the individual? You probably won’t have access to Superannuation so there is a 2 prong strategy You’d need to accumulate funds personally   Types of Investments: The way I would do it ETFS, Managed Funds, and LICS Steer clear of Large Cap active managers What to do with property? What is the problem with property? Low transaction costs Why investing beats savings

Welcome to Finance and Fury Today we are going to talk about relationships and money, and some strategies to start working as a financial powerhouse couple We all spend money and we all have relationships Doesn’t mean romantic relationships How has your relationship with money been developed? Did your parents talk about money around you? A lot of your foundations are through things you picked up as a kid Did you notice your parents ever fight about money? Based on what you observed you might try and avoid conflict about money What I was exposed to made a huge difference in my development It initially was uncomfortable talking to others about money, but with time you get used to it   Relationships & Money 101 Compatibility helps a lot. Some similar goals and visions. As a couple, you are meant to be greater than the sum of its parts That means something bigger/better than you would expect from the individual parts Think about a relationship in terms of an equation 1 + 1 = 3 If you have 2 people leading

Welcome to Finance and Fury, the Furious Friday edition. Today we are discussing what is happening with Brexit? At the time of the release of this episode, we will be approaching the 11th hour of the 2nd deadline to negotiate a deal for the UK to leave the EU. Why would it be grim and awful as they put it? Today: Want to give a timeline of events Look at the massive tax scheme that is going on Check out the series on the EU – What happens if the EU collapses? and Will the EU fall apart? Start at the beginning: The referendum to leave the EU 23rd June 2016 Between then and March of 2017 it was business as usual, and then the UK served their withdrawal notice Invoked article 50 of the Treaty on European Union which sets out a 2 year plan to leave the EU That negotiation period expires on the 12th of April 2019 The leaving agreement must set out arrangements for withdrawal The agreement must then go through a few bureaucratic systems So what is behind all the mess? UK conservative party lead by Terresa Ma

Welcome to Finance and Fury, the Say What Wednesday Edition This week’s question comes from John. Hey Louis, Really enjoying your latest episodes, thanks again for the great content. I saw recently there was a question raised around superannuation reform that TPD insurance within a superfund my now be unnecessary as funding is available under the NDIS for people who are, or become disabled, and therefore might be unethical for super funds to be selling this insurance (assuming it is indeed unnecessary). My question to you is, generally speaking of course, should i be paying for TPD insurance through my superfund, or will I be adequately covered under the NDIS if I suffer an injury that leaves me disabled and unable to work?   First off: What is the NDIS? And How is it different to TPD insurance? What are the issues with relying on the NDIS?   What is the NDIS? In 2016, the National Disability Insurance Scheme (NDIS) started It is a system to provide support to those with disability It is not replacing a di

Welcome to Finance and Fury Today will be a quick update for the upcoming election and policies in response to the budget plans released last week. This election is becoming a battle for votes among salary earners. In the past we have talked about class warfare strategy – it’s a tactic being used by both major parties. Breakdown: Where is each party is hanging their hats with incomes and taxes? Liberals announced tax cuts at the last budget last year Frydenberg’s affirming even more tax cuts for individuals and businesses, spending on education and infrastructure A reward for effort, aspiration, and enterprise, upholding personal responsibility and providing a helping hand where needed Next generation does not have to pick up the tab for the last generation Liberals are promising other things too like a budget surplus of $7.1bn which is a massive turnaround from 6 years ago when they took office Tax original plan under Liberals: Provide immediate relief by increasing tax offset Protect income earners from

Welcome to Finance and Fury, the Furious Friday edition Today we will be talking about conservatives and why they are not conserving anything anymore. In particular, the new form of conservatives the neo-con conservatives and the noble lie or the big lie. Remember the Occupy Wall St movements? And the population protesting the 1%? Some perspective is you were likely in the world’s 1%. The anger should have been directed towards the political systems that facilitated the behaviour that led to the GFC. Wrap up: Neocon Political ideology is framing policy to influence banking GFC initiated by past policies, like the Housing Urban Development Act in 1992 Federal Home Loan Mortgage Corp (Freddie Mac) loans 30% of loans to low income households Glass Steagall episode link Clinton Cash book Why am I talking about all this? Clear up some conceptions, which is the point of Friday episodes When people talk about today’s conservative politicians, there is a good chance they are neoconservatives What is conservatism

Welcome to Finance and Fury the Say What Wednesday edition. Today we are continuing on from last week’s episode about climate change, so if you haven’t heard it, check out last week’s episode here. Today I will run through the Paris Climate Agreement, and their proposed solutions. How is policy made? What are second-order effects? An example is capping electricity prices – what’s the first consequence? The second? The third? It sounds a bit far-fetched, but it happens a lot when prices are capped The outcome was the opposite of the original intended policy This is what is dangerous about government policy – check out the episode on positive rights here Making changes in a complex system: What you get may be the opposite of what you want What are the aims of the UNFCCC Paris Climate change agreement? Reducing the increase in temperature Link to the UNFCCC Paris Climate Change agreement Lots of bazaar language What is a climate fund? What is the financial target? What is the Green Climate Fund? What are t

Welcome to Finance and Fury Today we have Jayden with us, and we will be talking about Interest rates. The first Tuesday of every month, the RBA releases the updates on the cash rate. The markets currently appear to be going down, and the cash rate reflects a negative trend. The markets show that it will gradually reduce from 1.5% to 1.25% in August and in 2020 down to 1%. Fixed Interest Rates are HUGELY popular right now. And they’re only going to become more popular if interest rates continue to go up. The question is: How do you know if fixed rates are for you? Or if now is a good time to fix?    Fixed Rate Basics Fixed interest rates (also known as fixed rate home loans) are interest rates that will not change for a period of time, usually between one to five years. Variable rates can move up, and down depending on a range of factors – fixed interest rates remain static, giving you certainty on the repayment of your loan.   Why you might Need Fixed Interest Rates Fixed interest rates are a way to reduc

  Welcome to Finance and Fury, the Furious Friday edition I have identified a thread through history in the emergence of demand side democratic societies. Where there is a centralized authority, there is a need for ever increasing demand of the mobs and its path towards the downfall. Rome is a good example: Centralized authority and the need for increasing demand of the mobs lead to the downfall of Rome It was a kingdom, then a democratic republic, and then a dictatorship During Sulla’s rule, there was a civil war, which made him strip Julia Caesar’s family of their influences Caesar was the High Priest of Jupiter and went into hiding to save his life Caesar joined the army and rose through the ranks, he also knew how to gain public support back in Rome Caesar was kidnapped and ransomed for 20 talents He then came back and had the pirates crucified By 60BC Caesar was elected consul however used this position to gain further power To build favour, he redistributed a lot of land to the poor and the soldiers of

Welcome to Finance and Fury, the Say What Wednesday edition. Today we are going to cover off on Climate Change. This may be a bit weird. But, the majority of proposed solutions are political/economic. Firstly, the taxation on CO2 emissions. What is this going to do to the economy overall, with additional costs of business? Furthermore, capping of production of emissions. In this episode, we will discuss climate change in terms of the narrative that it is presented as. This is around rising temperatures and the world being doomed in a few years’ time. I won’t be talking about environmental destruction. Is global warming man made? How will the solutions help? The common theme of Fear: Different predictions over the last few decades A similar theme is fear Most people fear catastrophic events Predictions by experts on climate change keeps turning out to be incorrect From predictions, there was supposed to be a lot of misery in the world due to climate change caused events Policy changes due to global hysteria T

Welcome to Finance and Fury Today we have Jayden here, and we will be talking about using your home for as an investment and as a forced savings account. You can start turning the bad debt into good debt. Through paying down the loan quicker, and then redrawing on the equity. You can save interest along the way and the redraw for investment is now deductible. What is home equity? Simply put, it’s the difference between the value of your home and the value of your home loan But you can’t borrow all of the equity in the property If the value of your property increases so does your equity How to create home equity faster? Get another bank valuation, sometimes the valuers themselves put value in different things. Bank valuations and market valuations are different Get a shorter loan term, creating some forced savings There are larger monthly repayments for a shorter mortgage term You end up paying less interest with a shorter mortgage term See table below assuming a loan of 450k with 4% p.a. Fix up yo

Welcome to Finance and Fury the Furious Friday edition Today we are continuing the discussion around supply-side economics We will talk about the best ways to avoid declining into a recession as an economy and some solutions for economic growth. Last Friday we talked about the great depression and some of the factors that caused it. Large escalations of money supply in a short period of time. This leads to excessive debt in a system. Today we will explore the modern economy and alternative solutions to depressions or an underperforming economy. Analogy: “you have a leaky pipe” You can get a repairman to fix your broken pipe You can provide a temporary solution, but the symptoms persist until failure   This relates to the modern economy because: Our problems are very distinctive but they have happened in the same pattern Western economies have started recessions/depressions due to asset price bubbles Roman Empire: A.D. 33 existence of quasi-capitalistic financial markets – a busted real estate and lending

Welcome to Say What Wednesdays, where every week we answer questions from you guys, the listeners. This week the question comes from Mary;   “Hey guys, love the show. Just wondering about what entitlements, I can receive if I go on maternity leave? I’m currently pregnant and me and my husband are looking to purchase our home soon. We were wondering if there was anything we need to watch out for when it comes to getting a loan while on maternity leave? Are there any other things we should be looking out for?” Congratulations Mary! The Ultimate Guide to Maternity Leave   Maternity Leave Letter Need to give your employer written confirmation that you intend to take some personal time off to have your baby. At least 10 weeks before your due date, and in a lot of cases happens much earlier Must confirm your parental leave dates at least 4 weeks before taking your leave. A Maternity Leave Letter in Australia needs to contain Your full name and address The expected date for leaving work, and when you plan to ret

Welcome to Finance and Fury Today we will be going through the workbook itself How to put the goals and risk profiles together How to work out the investment philosophy and strategy How to put together the investment plan and checklist Three downloads - Found on the website Goals and Risk Tolerance Philosophy and Strategy Investment Plan You can also get it by subscribing on the website, We want your feedback, it is not set in stone – we need your help to make this better for everyone. Goals and Risk tolerance: Fact find about yourself What frustrates you? What do you want to improve? What are goals? What are financial goals? How do we separate them into short term, medium term and long term goals? Give an example of what you want to achieve This helps clarify what’s important to you, and gives 4 options Home Family Wealth Lifestyle Ranking these in order of priority to you, to help focus on what is important now A matrix about you: what is currently frustrating for you? What is holding you back? Wha

Welcome to Finance and Fury the Furious Friday edition If you have been paying attention to the news then you would know about the current GDP per capita recession. Today we will look at recessions and different policies to help boost the economy. It is all apart of this miniseries on supply and demand side economics. There are lots of different views to avoid recessions and get out of them. What is a recession? What is a GDP per capita recession? A period of temporary economic decline and negative GDP growth for 2 consecutive quarters. The GDP per person is declining, we haven’t had a recession under this definition since June 1991 If this keeps happening for 2 years, that’s when we get a depression. GDP? The measurement of what we are marked against An aggregate measure of production equal to the sum of the gross values added of all residents and institutions engaged in production The four components to GDP? Consumption, usually the largest component of GDP. The value of consuming by individuals in the

Welcome to Finance and Fury, The Say What Wednesday edition, where we answer your questions. Today we have a question from Nick - Watching the Leonardo Di Caprio documentary about global warming, which touched on how the large oil corporations used bribes to corrupt politicians into slamming down new legislation to move towards a greener earth. My question is: Have Politicians been holding off implementing renewable energy in the fear that it would stagnate the economy by interrupting the multi-billion dollar industry? And if we moved completely from Oil to Renewable Energy, what sort of effects would take place on the economy? Would it be smooth sailing and all good?   We will cover this in a 3 part series, but may not be back to back. Today will focus on oil and why it is unlikely we will move away from it anytime soon Then the climate change debate, and come back to Leo and Al Gore The final episode, look at the solutions at work and how they work   Today: What happens if they do? I think the reluctance

Welcome to Finance and Fury Today we are continuing from last week, and going through strategies to fit your goals. Some bad news… The workbook will be released next week because there are a few pieces missing, as it doesn’t achieve what I wanted it to. So as a DIY template, I didn’t want to put out something that could be misinterpreted. There will be a special episode for the workbook and putting all of these episodes together. So look forward to that. Today we will cover the strategies that form part of a plan Factors that influence each: Goals – long term and short term Risk profiles – target asset allocations We have done a few episodes on these Investment plan – short term: Cashflow – the building block for achieving short term goals and long term wealth Strategies for this? Reduce spending, monthly savings plan, repaying personal debt, home deposit, and reducing tax. These are specific to you. Investment plan – long term: Some hybrid options - building wealth, reducing tax and leverage Some overla

Welcome to Finance and Fury, the Furious Friday edition. We are continuing the series on supply-side economics. Today we will focus on the down-side of supply-side economics. Remember, supply-side economics believes that governments should remove barriers to production. How is this done? Lowering taxation and decreasing regulation The aims of the policies? What are the 4 major downsides? Income Inequality: Those that supply more also accumulate more wealth Results in a disproportionate amount of the tax savings going to those on the highest incomes More wealthy people is a good thing More supply means lower inflation and cheaper goods The billionaires of Australia own companies that supply jobs, they don’t sit on piles of cash Countries with more billionaires have lower rates of poverty We are very well off despite what you might think   Deregulation will Destroy the Environment and Public Safety Experts do agree, lower regulation leads to increases in profits and increased GDP Deregulating coal mining

Welcome to Finance and Fury’s ‘Say What Wednesday’ edition, where every week we answer questions from you guys. This week the question comes from Effy; “I am a Chinese migrant living in Melbourne. I do not recall if your podcast has covered insurance, such as life/accidental insurances. After some online research, I noticed that the variety and content of the insurances vary geographically. I am aware that many main land Chinese purchase insurance policies in Hong Kong as it is much more attractive. What is your understanding of the Australian insurance industry and what are the must-haves for everyday Australians? I am trying to improve my financial intelligence by upgrading my skills to increase my earning capacity and learning to use financial products (property, shares, etc) to sustain and generate more passive income. It is not easy work, I have certainly made several mistakes and I feel I need more guidance. Can you share some of your personal experiences on how you come to where you are today? Looking