Ramit Sethi and Morgan Housel: Two titans in finance and money management who don’t believe in property investing?!  

It’s your turn to ask the questions as we dive into a topic that’s never been explored before on our couch!  

From breaking down our verdict on these two financial gurus to revealing how you can mirror Ramit and Morgan’s investing style, tune in now to find out if we are indeed going against the greats!   

Also, stick around for the last question, where we answer: Should this mother take all her daughter’s savings and put them into the family offset to benefit them all?     

It’s an episode that will have you listening to it on repeat; listen now, folks! 😊   

   

Free Stuff Mentioned

Questions We Answer:

Q1) Morgan Housel on NOT investing in Property from Anwar

“Bryce, I know you’re a big fan of Morgan Housel and an advocate for his principles. 

I listened to a recent episode of “The Diary of a CEO” where Morgan was interviewed by Steven Bartlett, which was a great episode. However, Morgan repeatedly emphasised the fact that property was not a good investment and was completely against it. 

I hope you take time to listen to this episode and give your thoughts on Morgan’s comments and advice on property investment. Cheers!”  

 

Q2) Rentvesting Vs. Owning from Jye 

“Hey guys, I’d really like your opinion! 

I like Ramit Sethi, seems like a legit guy and I knew he was a rent-vestor but I didn’t realise he has no property in his investment portfolio. He makes some good points in this video that would almost make one consider selling their properties and putting the proceeds into the stock market… 

So as a EW client with a property portfolio plan, I guess I’m looking for your argument to give someone like me reassurance we’re on the right course.” 

 

Q3) Should I put my daughter’s money into my offset account so that it won’t incur tax or should I leave it on her own account since it’s her money? from Melinda

“Hi there Ben and Bryce, 

I was recommended your podcast a few months ago and my brain has been exploding with everything  I’ve been learning. I really wish I’ve known about you had many years ago.  

I’m 53, single parent, and I have a smallish mortgage of about 130,000. It feels pretty big when it’s just me. I’ve got very little emergency money savings, as I’ve been putting everything I can into my mortgage. The house is worth maybe $600,000 

I started to change the way that I structure my accounts using your Money smart system.nAnd I can already see a difference that I’m feeling better about making an outgoing movie. 

My question is around my offset account, as I’m trying to grow it. I have a bank account for my 10 year old daughter. I contribute to it each fortnight, and I have a brother who’s a paying $50 a month. 

She also occasionally receives money for her birthday or Christmas, and II encourage her to put the majority of this gift money into her account. It has now nearly 14 1/2 thousand dollars, and it’s earning 4.75% interest, which I pay tax on. 

Some a question is, should I put this into my offset account, where it will be tax free and working towards my days and set up an IOU to pay her back once I’m in a better position, financially? Or do I leave it because it’s her money? She does know about it. 

My brother pays into it, and it has other family members gift money in it. Maybe you’ve already answered this along the way. If so, can you please point me to that podcast so I can listen and learn? 

Thank you again for your willingness to share your knowledge and experience. I really do feel that you both have a lot of integrity and that you genuinely want to help people and I thank you so much for that.”  

Timestamps

• 0:00 – Ramit Sethi & Morgan Housel:  Why They Don’t Invest in Property! 
• 1:29 – Free upcoming events!  
• 7:45 – Mindset Minute: The Definition of Entitlement  
• 12:18 – Q1) Morgan Housel on NOT investing in Property  
• 14:14 – What drives higher or lower property prices?  
• 19:14 – “General commentary helps no one!”  
• 20:55 – What is Morgan Housel’s asset allocation?  
• 22:39 – Our verdict!  
• 24:27 – The Australian advantage: Dollar cost averaging & static markets   
• 26:27 – Q2) Rentvesting Vs. Owning  
• 27:16 – Be cautious of American advice in the Australian market  
• 30:02 – The #5 questions to ask before buying  
• 30:58 – The key differences between these markets  
• 32:24 – Are you a price taker or a price maker?  
• 36:12 – Australia’s Greatest Superpower  
• 36:51 – How to copy Ramit & Morgan’s investing style in Australia  
• 40:02 – Why we think the property game WON’T change  
• 43:14 – Q3) Should I put my daughter’s money into my offset account so that it won’t incur tax or should I leave it on her own account since it’s her money?  
• 45:55 –  We’ve created a Kids Savings Tracking Calculator! 
• 49:43 – Why it’s important to have the financial conversation with your kids 

And…

• 55:51 – Lifehack: Travelling with a dietary requirement? Try this hack to overcome language barriers!  
• 59:47 – WMPN: The RBA’s Speech & Findings on financial hardship from ASIC