Whether you are aiming for financial stability, growth, or independence, understanding the intricacies of investing is crucial. This empowers individuals to take control of their financial futures, make informed decisions, and capitalise on opportunities.
In this episode, I’m going to debrief and share my key takeaways from my conversation with Terry Tran in Building Wealth Safely: The Power of Diversification in Shares and Investments.
Although we tackled different investing topics, we both agreed on the importance of learning how to invest and diversifying investments as a business owner. You should aim to get as much exposure to differing forms of investments (market shares, property portfolios, ETFs) and learn how you can leverage each one for your business.
Ultimately, learning the skill of investing provides individuals the ability to grow their wealth, protect their assets, and build a secure financial future.
Through this episode, you will discover how you can take advantage of different and diverse investment strategies that take you on long-term potential financial growth and how you can maximise investment returns and profit for your business.
IN THIS EPISODE, YOU’LL FIND OUT…
- The advantages of shares and property portfolios (01:17)
- Different levels of returns and what each stage represents (03:28)
- The benefits of investing 30-minutes daily to assess trading opportunities (05:38)
- Why you need to start diversifying your investments (08:02)
QUOTES
“One of the biggest things that shares gives you that property doesn’t, is liquidity.” -Carl Taylor
“The best person to manage your money is you.” – Carl Taylor
“Having a system is one thing. Following a system is another.” -Carl Taylor
WHERE YOU CAN FIND CARL TAYLOR
Automation Agency
CarlTaylor.com.au
LinkedIn
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Twitter
TRANSCRIPTION
Carl Taylor Snippet (00:00):
Let’s have a quick debrief about this week’s episode with Terry Tran.
Carl Taylor (00:18):
This was a good episode. I know I say that every time after a guest, but I just really enjoy chatting to Terry and the insights. And we knew we go a little bit all over the place if you haven’t listened to this week’s episode, this is the short little summary that gives you some key takeaways to take away.
But I encourage you to take longer listen to the whole episode. But I know time is precious, which is why I do these short little snippets that you can use, rather than having to listen to the whole interview if you don’t have the time, or just to make sure you get the value.
So we talked like the first time they interviewed Terry, about shares. The funny thing is, there were a couple of things that came up, he talks about how he’s not anti property. In fact, many of his clients have large property portfolios.
Why because a lot of them are trades people and have you know, they understand property. So they’ve built a big property portfolio. And now they’re looking at shares as a way of diversifying the liquidity. And that’s a key thing.
If you’re having that debate yourself around shares versus property, one of the biggest things that shares gives you that property doesn’t is that liquidity, that ability that if you need some cash, you can’t as they say you can’t sell a bedroom or a bathroom on your house.
But you can go and shell sell a parcel of shares, and realize that cash right away, and that’s probably one of the strongest arguments of where shares is stronger in the Australian market.
And I pointed this out and the Australian market, one of the things that property does have over shares is the ability to lend against it in Australia is is far more challenging to lend against anything that basically is not real estate.
So that’s one of the biggest benefits that property has that the shares do not have. There were so much we talked about, but some key things that I want to point out one, he said, think about this as learning a skill.
And he talked about the idea of when you start, it’s not about investing what you can afford to lose, his view is that you want to invest, let far less than that, learn and earn, like get your stripes prove to yourself that you can follow the system.
So you know, if you’re if you do something by studying with Terry, for example, if you do Terry’s program, and I do encourage you to look at it, I’m not going to say you should do it, that’s your decision. But I do encourage you to take a look at it, if it is of interest to you.
And if your share investments is something that you really want to learn more about. So if you follow it, he gives you the system, you don’t have to develop your own system, he gives you the system to run, you’ll still personalize it to you, but he ultimately gives you the system. So what you’re proving yourself is that you can follow the system.
And because having a system is one thing following a system is another. So that’s really one of the big things is you want to invest a smaller portion, not what you can afford to lose less. So you can prove to yourself that you can follow the system and that the system truly works.
Once you’ve learned that similarly, we use the analogy similar to like if you’re invest in advertising and Facebook ads, YouTube ads, those kinds of things. Usually you invest a small amount per day. And then once you kind of tweak things around the marketing campaign, you start to scale it up.
And it’s the same thing with the share investments, you prove to yourself the systems working, make sure or good, tighten up what needs to be tightened up. And then you start to scale up as you see the returns.
So we talked about well, then what are these different levels of returns. And here this great figures of he wants to aim you to get to a 500,000 or so Half A Million Dollar Portfolio timeframes really vary.
He has students who was young as nine years old, they’re clearly not got the whole huge cash flows that they can invest, versus someone who might be you know, you’ve got pilots and business owners farmers, these people potentially have large injection of cash that they could throw into the share market.
So whatever the timeframe is, like you want to get to around that half a million mark, because if you can even just get a 10% return on the half a million mark, that’s about 50 grand a year coming in, which really, you know, equates he believes for most people around that financial security benchmark that I talked about is where your your bare necessities are kind of taken care of.
Obviously, that’s going to depend on your lifestyle costs, whether you’re a double income family, or whether you’re the you’re looking for this to be a complete income for your whole family. So whether 50,000 is going to cover your necessities or not, I can’t say for sure.
But it’s a good strong way. And I think for a large proportion of the world and Australia, it’s a good a good number that he’s like once you get to that half a million mark you want to try and aim to then get to the 750 mark, and you get to 750 that’s maybe potentially going to give you a bit more of that freedom, that financial freedom bit more of your lifestyle being covered and then you’re looking to get to that million mark.
And he believes that once you hit the million mark well you kind of now gonna get this momentum that you wouldn’t get. You wouldn’t see in the same way like the momentum of the reinvestment just becomes exponential from Yeah.
So I think that’s a really just a nice number to think about you want to how do you get to your portfolio in the shares will be about half a million, then how do you get the portfolio to be around 750? And then how do you get the portfolio to be that million mark that seven figure? And then from there, obviously, I’m sure there’s other levels.
We didn’t go through that in the podcast. But it’s just a really nice number. So if you’re looking for something to aim for, and you might go half a million, that’s ridiculous. How will I get there, you just start, don’t worry about how long it’s going to take you to get there, you just start. If you’re listening, going like yep, Morty there are easy to get to half a million amazing. It’s not about the time it takes, it’s just about having a goal of where to get to.
We talked a lot about either because of our return on time. And so he mentioned that with his strategy and what he teaches, you really need to be able to invest 30 minutes, up to 30 minutes a day, no need to stress that he was very clear that it’s not 30 minutes every day, but up to 30 minutes per day, to just look at what are the opportunities to buy, what are the opportunities out there, it’s not about trading and actively managing is that it’s just you kind of scanning these tools that you’ve set up to kind of alert you about the various opportunities, and you’re kind of scanning them and looking to what you need to adjust or what what might be on sale.
But you could go yep, that’s a good buy. I struggle personally with the idea of 30 minutes every day. So he was like, well, at bare minimum, you want to be doing maybe an hour a week.
But you definitely want to be able to commit at least weekly. And so we talked about who this strategy is for versus someone who’s just gonna go, You know what, let’s just throw money in ETFs. And just throw that money in passive.
So if you’re really in focus mode on your business, if you’re needing your head to be just not distracted 100% on business, then that’s what you should do. If there’s someone in your household, like maybe your partner and they’re interested, or you want to direct them to go, hey, I want you to be managing this process, well, maybe they can be spending the 30 minutes a day or the hour a week.
And it doesn’t have to be you it doesn’t mean your households not investing or your investment company. One thought in my mind is once I learn more of the system, maybe there’s someone I can employ, whose job is just to do some of that processing and reduce the time that I’m required to. So there’s, there’s a whole bunch of different ways you could go about it.
But it sounds like someone and usually the best person to manage your money is you. So usually, if you can commit you have available and you’re interested in putting 30 minutes a day towards being able to potentially get these 1015 20 25% returns in a year on shares, then you’re in a good place to look at a strategy like his versus just throwing money into long term passive investing. That’s just dollar cost averaging. Like if that’s you, and you’re Australian, I’m not recommending any strategies and stuff, right? This is personal, not personal advice.
But there’s a really cool brokerage tool called purler. It like automates the process of dollar cost averaging into whatever you want to invest into. And that might be a better approach, if you just like I can’t spend the time. I think we’re going to wrap it there. You know, as I said, the conversation was great. We went in so many different ways. But the bottom line is, you want to diversify.
If you’re currently in property, and you got no exposure to shares, you want to start diversifying, if you’re a business owner, one of the other things we touched on if you’re a business owner, and you’re not paying yourself superannuation, because you don’t actually take an official salary, so superannuation in Australia, it’s like a 401 K in America. It’s like a retirement program on tax benefits in it.
But most business owners that I talked to in Australia, you often aren’t paying yourself a salary and you’re not paying yourself super, which means that you’re potentially missing out on that exposure to the share market, because that’s typically what your Superannuation is invested in.
So if you don’t have a superannuation or very large superannuation, building something in shares, as well as property, outside of your business is going to be really crucial to you setting up to be able to survive, if something happens to your business, or even if you sell the business.
So we talked about learning a skill, if you were to sell your business, you know, and you got a big windfall you did. That’s not necessarily the time you then want to be like now let’s try and learn shares if you’ve been learning along the way with the cash flow of your business, and then you sold your business and you had a big windfall of cash, you’re now in a better position to decide how you’re going to use that and potentially, really profit return on that.
I’m going to wrap it here. Thank you for listening. If you’ve enjoyed these little snippet episodes, please let me know I’d love to know or share it with a friend who might not want to sit through an hour long conversation between Terry and I. I love doing these little snippet episodes. I’ll be more prepared on my next one. This one was a little bit straight off the cuff right after Terry and I spoke and I probably missed a few gold nuggets.
So I do encourage you go back listen to the full episode. Or if you prefer to read and listen which if you’re listening or watching this that kind of seems strange to me. But if you do prefer to read because frankly, I can read faster than I can listen to watch.
You can find all the transcripts and everything you need to read at rising dot show for this episode and every other episode we’ve ever had. So you can find those transcripts on the website. Rising dot show. I am your host Carl Taylor. I look forward to seeing your future episode. Keep up the journey.
Outro (10:04):
You’ve been listening to Entrepreneurs Rising. Thank you, dear listener for tuning in. I appreciate your time and look forward to connecting in future episodes if you would like show notes or any resources from today’s episode, you can find them at rising.show rising.show you can find the show notes for this episode and all other episodes as well as links to socials and or the ability to reach out and connect with me make your suggestions for future episodes. Until next time, keep up the journey.
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