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Glen and Jess unpack with Money & Life how to attract the millennial generation whilst building a modern business.

“Millennials don’t struggle to imagine the future. Where they get lost is connecting the dots.” – Jess Brady & Glen Hare, Financial Advisers, Fox & Hare

The Millennial Generation (currently aged 26 – 40) arguably have some of the biggest financial decisions to plan for in the near to immediate future—buying their first home, starting a family, or transitioning that side hustle into a business. Yet, most individuals are not seeking advice until they are close to retirement. We caught up with Glen Hare & Jess Brady, founders of Fox & Hare, an advice practice specialised in servicing the needs of millennials. Glen & Jess are early adopters of new technology and users of Morningstar’s financial planning software, AdviserLogic. Here are 5 tips to help you attract and retain this untapped clientele.

1. Demystifying Financial Advice

First things first, you need to get millennials in the door, and this starts with breaking down the preconceived notion that one needs to be old and rich in order to get financial advice. No one wants to be nearing retirement and thinking ‘imagine if I did this 30 years ago.’ Savvy and educated millennials will have questions around fees and conflicts of interest post-Royal Commission. To highlight the value of advice, you need to be able to answer those questions and be transparent about what you can and cannot deliver. It is imperative that you show clients the sooner they can make smarter financial decisions, the far better off they are going to be in the long run.

2. Lead with Education in all Parts of the Journey

While millennials might be coming in with some financial knowledge and have DIYed in the past, many will have reached a cap in terms of their financial understanding or their ability to execute. Or this might be the first time they are talking about their finances and can be intimidated. By educating your client in all parts of the advice journey, you help them feel comfortable with the investment decisions and how those decisions will get them closer to achieving their goals, all while building their financial literacy.

3. Goals & Value Session, the “Lightbulb Moment”

By exploring goals early on, you help clients understand that it is a balancing act between living now and planning for the future. From the start, Fox & Hare engage their members in a goals and value session, asking them to imagine what their next 12 months, 5 years, and beyond looks like. This is an opportunity to highlight that your role as an adviser is to focus on the financial levers such as cashflows, tax optimisation, budgets, etc. Clients will have a “light bulb” moment when you connect the dots and use modern technology to demonstrate how your expertise in balancing these levers will enable them to achieve their goals.

4. Millennials Expect Technology-Enabled Advisers

Younger clients want to engage with an adviser on their terms. Advice businesses need to focus on how they connect with clients in an efficient and scalable way whilst also immersing themselves in the client experience. When choosing a technology provider for their business, Fox & Hare appreciated that AdviserLogic understood the needs of IFAs and shared their passion for improving Australians’ access to quality financial advice. AdviserLogic’s intuitive layout and ease-of-use helps advisers increase their clients’ confidence in the advice they are being given. This extends to even screen sharing for a more engaging and personal walk-through with clients, illustrating how the advice links to their goals. Extending your CRM by connecting it with other apps is also a great approach. AdviserLogic integrates with Zapier, opening access to productivity tools like Calendly (a simple scheduling tool for booking meetings that eliminate back and forth emails at any time of the day or night), Google Forms (which enables you to build and survey clients in minutes), and DocuSign (eliminating the need for physical wet signatures). These apps help advisers better connect and deliver a more engaging experience for younger clients.

5. Client Feedback Should be More Than Just a Survey

Ultimately clients are seeking your advice to grow their wealth and meet goals, but it is equally important to ensure they are happy along the way. Millennial-focused businesses like Fox & Hare believe in ongoing engagement through focus groups and continually interviewing their clients. This is done both before they launched the business to make sure they were reaching their millennial audience and to monitor and improve their onboarding process over the first 90 days for new members. This quick feedback helps them meet and even exceed client expectations.

Losing a job when you’re in a partnership can trigger strong emotions and cause you both to rethink your financial future. Glen shares with Mark Raberger, the Head of Health at Metlife Australia, his top tips on how to cope.

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It’s understandable that when one person in a relationship loses some or all of their income, the other can feel vulnerable. How can partners help?

Mark Raberger: Focus on some positive things you can both do. It’s about the surety of being in it together. Each person’s wellbeing can be affected in four main areas: mental, physical, social and financial. So, while you might be affected financially, there are plenty of things you can do about the other three:

• Keep up your social life. Sometimes when people lose a job, they might become a recluse and curl up under the doona. So, without forcing the issue, you can help them address both the mental and social health areas by keeping engaged with friends. Social interaction is incredibly important.
• Keep physically active. The temptation to have a lot of downtime because there isn’t a job to go to can quickly impact physical health. Encourage each other to get out and be physically active, such as making time – yes, that means regular dates – to go for walks or bike rides together. Getting out into the fresh air for even mild exercise is good for your mind as much as your body.
• Keep on learning. There are also good benefits to be had from learning new skills. Encourage your partner to engage with an art or craft they enjoy. We often wish we had more time on our hands to learn new things.
• Keep a good sleep routine. The other big area to focus on is sleep. When people are anxious or distressed they might find their sleep is heavily affected. Knowing this, encourage each other to have good sleep hygiene. By this I mean, have a before-bed routine: switching off your device  at least an hour before sleep; finding calmer, more relaxing things to do instead of thinking about finding the next job at 11 o’clock at night.
• Wake at a similar time each day. You can encourage your partner to get up and get ready for their day, just as they would if they were still going to work. If you can do some exercise together before you go work, that will be useful too.

So, it’s about staying active: physically, socially and mentally.

What areas of health support are available?

Mark: When a household has income, some people might think they can’t afford to get the right support, though there are some good free or subsidised options:

• Mental health support. We’re fortunate in Australia to have great organisations like Beyond Blue, Lifeline and the Black Dog Institute, as well as subsidised therapy services available through GPs. The Government also increased subsidised additional mental health therapy sessions from 10 sessions up to 20.
• GP visits and telehealth. We recently launched a campaign at MetLife about why it’s OK to see your GP, because we know people were hesitant about visiting local health providers during the pandemic. Most GPs now have people safely visiting their clinics, though if you can’t visit in person, the Government also supports telehealth consultations. We want everyone to continue having regular check-ups with their GPs, which is why GP visits, home visits and telehealth consultations are Medicare-subsidised and many doctors bulk bill, which means you won’t have to pay for anything.

On the financial side, what are some positive steps people can take to cope when there’s less income available for the household?

Glen Hare: Whenever we’re working with a couple, we always talk about ‘household income’, because we want to encourage that shared sense of purpose in maintaining a household together. So, while one person might be earning less at the moment, they could have more time to look after things like groceries, cleaning and organising social events – all things that contribute good benefits to the household – and then of course, make adjustments when they’re working again. We want both people in a couple to be on the same page and making decisions together.

Mark: I agree. While one person might contribute more money to covering expenses such as groceries and bills, rent or mortgage, it’s important to make shared decisions about how money is spent for the household. Both partners can also look at which areas they can make savings, especially discretionary spending, where you can easily adopt more affordable alternatives.

What are some good areas where household expenses can be reduced?

Mark: If there’s one positive about the lockdowns during COVID-19, it’s that many households rediscovered ways to enjoy time at home instead of going out. So rather than paying restaurant or pub prices every time you want to catch up with friends or family, we’re socialising at each other’s houses.

Glen: We’ve seen a lot of our members review all their subscriptions during COVID-19, so they can save monthly expenses such as subscriptions to magazines, streaming services, gym memberships, which all add up. If you can save $100 a month by cancelling some subscriptions that gives you more money to put into savings or investments that will grow. I think COVID-19 made a lot of people reprioritise some of their big lifestyle aspirations, like international travel or new cars or renovations. Every time household income changes you have an opportunity to review what’s important to you – you can learn a lot about what’s really important to you.

Thinking about what’s really important in life, what are some other opportunities for resetting personal ambitions?

Mark: If you’re not currently in a job or have reduced hours, you have more time to focus on your career goals, which is a positive. Especially if you were working in an industry that was hard hit by COVID-19, you’ll find a lot of businesses are rethinking what work-life balance means.

So, it could be an opportunity to think about what kind of work will give you a better work-life balance. A simple example is that people who live a fair way from their employment or their previous employment could see it as an opportunity to look for work closer to home.

It might also be a catalyst to upskill or even retraining so you can pursue other career options – see it as an opportunity, rather than a loss. We’ve seen more education providers offer discounted or free courses, and there are some government supports available for retraining.

From a mental perspective, while you’re looking for a new job doing some training and research about new career options is a good way to keep your mind busy – it’ll keep you active and give you something to look forward to – and building new knowledge is rewarding in itself.

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Want to hear more tips on how to encourage a positive experience when managing financials? ??

Check out our blog: “Fall in love with your financials” ?

In the fifth episode of our Ask The Experts series, Glen sits down with Adam Verwey, Co-Founder and Managing Director of Future Super (Australia’s first 100% fossil fuel-free super fund) to discuss all things ethical investing.

Are you passionate about creating a livable world? Do you care about what brands and organisations you support? If so, this next Ask The Experts conversation is just for you.

Adam has a long history in ethical investments, currenting working as the Managing Director of the Future Super Group (the investment manager for Future Super, Cruelty Free Super and Verve Super), responsible for investment management, impact and advocacy for over $1 billion in super funds.

Adam is also Director at the Australasian Centre for Corporate Responsibility, an organisation helping to engage and advocate for ethical decision-making with companies and stakeholders. Plus, he is the portfolio manager for the Thomas Reuters Australian Fossil Fuel Free Index and a member of the Responsible Investment Committee for the Betashares sustainability ETFs.

In this conversation, Glen and Adam cover off on a range of topics including how Adam got started in ethical investing, how he chooses which companies to invest in, the current conversation around ethical investing and the impact of ethical investing on performance.

Adam’s insights on ethical investing

We kicked off our conversation with Adam by finding out a bit about why he got started in ethical investing. “I went to high school in Broken Hill, and there is a mine founded and operated by BHP in the middle of town, right in the main street. It’s a lead and zinc mine, and this lead was poising children in my town and it has serious consequences (such as learning difficulties etc.),” Adam explains.

“During my time at university I helped to change where the student union’s money was invested and switched them to an ethical fund. And that got me thinking: I wonder where my super is invested? I checked my super fund and realised it was predominately invested in BHP.”

That decision to make a personal change to his investments was what sparked Adam’s interest and passion for ethical investing. “Over the last decade, I’ve seen the power we can all have when we take collective action around something like our investments. We have the power to create a world we are proud of. So that is what motivates me, seeing the impact of when we all work together to use our values to shift where our money is invested,” tells Adam.

And it is a logical place for all of us to start, as Adam explains, “we’re all mandated to invest, so we might as well be invested in companies and assets that align with our values.”

As the Managing Director at the Future Super Group, Adam helps to shape the companies included in the group’s super fund portfolios. When vetting companies, he considers the shared values of the group and screens out companies that don’t align with these values.

“One of the areas where Future Super is a bit different is around screening out the Big Four banks. Banking in itself is not evil, it’s just how they operate as a bank that is good or bad. We screen those banks out because they are heavy funders of fossil fuels and other things like nuclear weapons,” Adam tells.

And there’s other less obvious companies that don’t make the cut. “We’ve screened out Woolworths, in part because they are the largest owner of poker machines in Australia (through their hotels and pub holdings).”

“Another interesting company is Tesla, a company that creates a lot of electric vehicles as well as solar and battery technology. They’re also disruptive and can potentially help provide the technology the world needs to create a livable planet. But at the same time, Tesla treat their staff terribly. For example, during COVID Tesla demanded their staff attend workplaces which were unsafe and there were elevated levels of COVID spreading throughout their warehouses,” reveals Adam.

“A lot of the ethical screening work we do is pretty straightforward, but there is an element of grey area for certain companies (like Tesla) that aren’t as clear,” tells Adam.

Our top takeaway points

We discussed a bunch of Adam’s insights into ethical investing. So here are the top takeaway points we learned during this session:

1. Collective action can spark meaningful change: If 7.7% of Australia’s superannuation money was invested in renewable energy or related industries than we could power a 100% clean energy grid in Australia by the end of 2030. Your choices can have tangible, real-world impacts.
2. Investing ethically doesn’t mean sacrificing performance: Ethical funds in each asset class have slightly outperformed funds in the same asset class (but not by much). So usually, you can expect the return from an ethical fund to be similar to a non-ethical fund.
3. Ethical investments are well-placed to whether turbulent market conditions: The funds that are doing the best now are those that completely exclude fossil fuels. So, the biggest factor in determining whether your super fund got a positive or negative return over the last financial year was whether your funds invested in fossil fuels.

Keep an eye out on our social channels and upcoming newsletters for more information about our next Ask The Experts live Q&A session. Want to learn more about becoming a Fox & Hare member? Click here to book in for a quick chat.

Discover how to maximise your tax return with our own Jess Brady’s expert tips, as shared with the team from 9Honey.

Wondering what to do with your tax return this year? No matter how much you’ve got back, we’ve got a simple formula that will help you maximise these extra funds. 

Our very own Jess recently sat down with the team from 9Honey to reveal exactly what to do with the money you get back from your tax return, including:

• How much you save from your tax return
• Why it’s so important to have an emergency fund
• Practical ways to upskill and invest in training using your tax return
• How to make purchases that are meaningful and important to you

Ready to learn more? Read the full article on 9Honey here.

Last night the Government announced their 2020 Federal Budget. We break down what you need to know, what these changes mean for you and how to supercharge your goals!

WHAT YOU NEED TO KNOW & WHAT IT MEANS FOR YOU

Tax Cuts
Personal

• Income tax cuts scheduled for 2022 will be brought forward for most income brackets
• The low and middle income tax offset of $1,080 will remain in place for the 2020-21 financial year.

If you’re earning:

• $45-90k your tax cut will be $1,080 p.a.
• $120k+ your tax cut will be $2,500 p.a.

Business

• Depreciating Assets – If your business turns over less than 5 billion per year, you are now able to offset the full value of any assets you purchased after budget night and before June 22. The measure expands the popular instant asset write-off, previously only available to small and medium businesses.
• Carry back tax losses – Business’ that have suffered due to the pandemic this year, will now have the ability to carry back tax losses and offset them against profits made from year 18/19 onwards.

Super

• Reduce multiple fees and accounts – Employers will be able to access your existing superfund details via the ATO rather than setting up default accounts for new employees reducing the amount of Super funds and Super fees paid by employees.
• Fund performance tests – By July 2021 MySuper products will need to do an annual performance test and notify members each year if their fund underperformed. The Government will also release an online comparison tool called YourSuper that will help members compare the fees and returns for super funds.

Health Services

• Additional Funding – To help look after vulnerable Australians, there will be additional funding for the National Disability Insurance Scheme, mental health and suicide prevention, and the Pharmaceutical Benefit Scheme.

Creating Jobs

Grow the economy – Funding $1.5 billion over five years from 2021/2022 to support the building of competitiveness, scale and resilience in the Australian manufacturing sector. It will focus on creating jobs opportunities in sectors such as manufacturing, infrastructure, medicine, recycling, food, defence, farming and tourism.

• Employment initiatives for women – Funding $240 million over four years towards a range of employment initiatives for women. Including a focus on increasing female workforce participation in male-dominated industries such as construction.

Age Pension & Welfare

• Additional payments – People who are currently receiving certain eligible income support payments and concession cards will receive two additional payments of $250, to be paid in December 2020 and March 2021

Childcare support (or lack there of)

• Disappointingly, this years budget failed to deliver significantly on what many economists are saying is vital for women’s economic participation: affordable and accessible childcare.

*The above updates are simply proposals and will need to be passed by parliament to be legislated.

SUPERCHARGING YOUR GOALS

Here are a few case studies demonstrating how the personal tax cuts can be used to supercharge your goals!

Mortgage Debt Reduction
You have a mortgage debt of $600,000 with 3.5% interest for a loan period of 25 years.

• An extra $90 per month ($1,080 per year) = mortgage paid off 14 months sooner.
• An extra $208 per month ($2,500 per year) = mortgage paid off 2.5 years sooner.

Boost Savings

• You’re earning $45-90k per year and receive an annual tax cut of $1,080. You regularly deposit these funds into an account for 10 years earning 7% interest.

• You’re earning $120k+ per year and receive an annual tax cut of $2,500. You regularly deposit these funds into an account for 10 years earning 7% interest

Want to chat with Jess or Glen about your personal financial situation? Book in a 15min chat ?

Our very own Jessica Brady, sat down with Echo Chamber Escape to explain the importance of removing the stigmas around discussing finances and financial problems among women, and what women need to be doing throughout the pandemic to maintain financial stability.

“Women and young people are among those with the lowest financial literacy in society, and during the pandemic it’s these same groups of people who are experiencing the most stress and are most likely to have lost their jobs.

In your experience, what are the contributing factors to how discussions about money have become somewhat taboo among women? 

You know, I’d actually challenge the wording of that question and say that women (ladies?) talking money has always been taboo – it’s most definitely not a recent phenomena! Society has been telling us directly and indirectly for decades just how frivolous and bad at finance we really are and to great effect! A huge number of women crave the kind of financial freedom that gives them security, the ability to do good and help others. But how long has it been since they stopped being told that a good, rich husband was the only avenue for achieving those things? Two generations? One? Has it even stopped? There are so many factors both implicit and explicit that have limited the conversations being had by women. Only now are we starting to see them unravel!

How is this perception of money-related discussions impacting women’s financial stability? 

What happens when you condition generations of young women to believe that the security and freedom they so desire is only available through one avenue – marriage? You end up with a nightmare scenario where women in their 50’s become the fastest growing group of homeless people in Australia and vast numbers of social housing projects are filled with older women who were left destitute after the deaths of their husbands. Even as we depart from the ‘women belong in the kitchen’ status quo – its effects are still real and very tangible. The wage gap, disproportionate burden of unpaid care, low levels of C-suite roles and even expectations around domestic duties are all a part of the hangover. Money is just one of the many conversations that are long and sorely overdue. We need to re-negotiate everything from domestic workloads to the feasibility of a superannuation system that actively disadvantages stay at home parents – of which women make up the vast majority.

During the pandemic what are the biggest financial watch outs for women?

Women have been disproportionately affected by the pandemic as they make up an outsized portion of the part time/casual workforce. It’s almost as if there is an unreasonably large burden of unpaid care and domestic duties preventing many of them from accessing full time employment opportunities! For those who have lost their jobs we recommend a deep dive into the Australian government’s COVID-19 financial support programs. Likewise for those who work for themselves – the government has introduced a whole range of programs to support businesses during this difficult time. For those of us who are still employed we recommend revising your spending and budget. There’s never been a better time to bolster your savings and emergency fund! For a deep dive into the available options and taking care of your finances, check out our Ladies Talk Money COVID-19 special here.

What should they be doing or considering now to mitigate long term financial risk?

It sounds silly but actually understanding your financial situation is so important in times like these. It’s imperative that we consider the impact of our long, medium and short term financial goals and fully understand the implications of our actions. Rash decisions can have huge, long lasting financial impacts; it’s important to consider all of the pros and cons before making any big changes! Finally, all of the ladies out there need to think about protecting themselves with the right insurance policies! It only takes one serious event to realise how vulnerable we really are. We insure all of our nice things – cars, homes, holidays etc – but so often fail to adequately insure ourselves. Insurance may sound dull at first – but what’s more exciting than going to sleep at night and knowing you’re completely covered in the event of some unexpected crisis!”

Read the full article on Echo Chambers Escape here

Looking to bring a new life into the world? Here are the key expenses first-time parents should consider before starting a family.

Starting a family is a massive milestone. In fact, there are over 300,000 beautiful bubs born every year in Australia. And for first time parents, bringing a new life into the world is equal parts thrilling and terrifying. From deciding where to live to what school you’ll enrol your child into, there’s plenty of decision-making to be done. But, have you considered the true cost of what it takes to raise a child?

If you’re thinking about starting a family, it’s super important to understand how this new addition will impact your finances both now and into the future. So, what should you be budgeting for? And what steps should you take prior to pregnancy to set you and your family up for financial success? Keep reading to find out.

IVF and the cost of conception

For some, bringing a child into the world can be a simple endeavour. However, for many of us the road to starting a family is much more complicated. Research from IVF Australia reveals one in six Aussie couples of reproductive age experience difficulties conceiving a child. And if you happen to fall into this camp, it’s important to understand what the financial impacts may be for you. 

IVF (or in vitro fertilisation) is one method of medically assisted conception that can be used to overcome a range of fertility issues and can give couples the best chance of falling pregnant. However, this type of fertility treatment can be extremely costly, with current pricing (as of February 2019) indicates one cycle of IVF can cost upwards of $9,828. 

Although some patients who are eligible for Medicare can access no upfront fee options from selected providers, it’s essential for first time parents to have a clear payment plan and budget in place prior to commencing treatment. By speaking with your doctor and an IVF specialist, you’ll be able to map out what costs you’re likely to incur and will be able to take this figure into account when planning to start a family. 

Upfront costs

For first time parents, the cost of having a baby can quickly mount up. From redecorating your spare bedroom to finding the perfect baby car seat, many parents-to-be can be blindsided by how expensive it is to welcome a new life into the world. So, what upfront costs will you need to budget for? Some common costs can include:

• Pregnancy and maternity clothes
• Baby clothes and nappies
• Feeding bottles and baby formula 
• Bedding (including a cot, mattress, sheets, blankets and toys)
• Pram
• Car Seat
• Change table

Aside from these essentials, it can be tempting to splurge on luxe extras to spoil your upcoming arrival. From organic baby clothes to decked-out baby bags and so much more, it’s important to be aware of the extra expenses that can arise when it comes to buying for your little one. 

Our tip? Create a clear budget for all your big ticket baby items and hold yourself accountable every step of the way. A great strategy to keep costs down is to visit garage sales and charity shops or check social media buy-and-sell marketplaces to nab yourself a pre-loved bargain. 

Parental leave costs and entitlements

Aside from the upfront costs, it’s important for first time parents to understand how starting a family will impact their ability to work and earn an income. Taking significant time off work can be a massive financial strain for both parents, so it’s wise to discuss what arrangements could work for your family prior to pregnancy. 

Under the Australian Government Paid Parental Leave Scheme, Government-funded Parental Leave Pay is provided to working parents of children born or adopted from 1 January 2011. Eligible employees will receive this government-funded Parental Leave Pay directly from Centrelink, or passed on via their employer.  A payment plan for up to 18 weeks can be arranged to help you transition into your new role as a working parent. Currently, those on the scheme can receive $740.60 per week before tax (based on the weekly rate of the national minimum wage). 

So, what criteria do you need to meet? To be eligible for payment, you must:

• Be the primary carer of a newborn or newly adopted child
• Have earned less than $150,000 in the last financial year (individually)
• Not be working during your Parental Leave Pay period
• Have met the work test in the last 13 months before the child’s birth or entry into care

Plus, Dad and Partner Pay for up to 2 weeks is also available to eligible families. For parents-to-be, it’s important to do your research and have a conversation with your partner to consider whether these entitlements will be an adequate source of income during the early stages of starting a family. 

Childcare and schooling costs 

For parents who are looking to return to work, childcare can be a big expense. Whether you’re returning to work full or part time, it’s important to do your research to understand the rates of different child care centres. 

Let’s look at a few options. Figures from CareForKids.com.au map out the average rates parents can expect to pay at key types of child care. These range from a private live-in nanny ($17-25 per hour) to long day care centres ($70-$188 per day) and even babysitters ($15-$35 per hour, plus agency fees). Remember, these figures are just a guide and actual prices will vary between providers. Our tip? Speak with a variety of child care centres in your area to understand what style of care best suits your family’s needs and budget. There is also a Childcare subsidy calculator on Toddle.com.au to help parents understand what subsidy they may be eligible for.

As the years roll on, you may decide private schooling is a priority for your family. For first time parents, it’s essential to understand what this expense looks like for your child. The earlier you can factor this cost into your budget and start saving, the better off you’ll be in the long term. 

However, this decision isn’t one to be made lightly. The latest figures from Australian Financial Review indicate private school fees have increased 3.1% this year alone (twice the rate of inflation). Figures provided by EdStart indicate the 2019 Year 12 fees for some of Sydney’s top private schools can range between $16,000 up to a whopping $22,000 per year. For families, it’s crucial you discuss how an expense such as private school fees will impact your cash flow. Remember, go back to what your core values are and check in to see if expenses like these are aligned with your values to ensure long term financial success.

Want to chat more about your personal circumstances? Book in a free virtual chat here. ☎️

Featured in 9Honey, Jess goes back to the basics by stressing the importance of exploring your ‘money story’.

“Your ‘money story’ is your thoughts and beliefs around money. Often it can be what you did or didn’t see growing up. Generally, our money story has a lot to do with our parents or how people around us have behaved about money.”

To get started, Jess suggests asking yourself these key questions:

• What do you think about money?
• Do you love it? Or do you hate it?
• If your reaction is a negative one, try and think of money more as an opportunity so you can start to feel good about it

Many of our members come to Jess with stories of poor choices that led to financial hardship. For these women, Jess encourages them to move on from past mistakes and focus on taking control of their financial futures.

“Accept the situation you are in with responsibility and accountability and make a commitment to educate yourself and dedicate yourself to improving your situation.”

Read the full article here.

The Fox, Jessica Brady sits down with ‘The Elephant In The Room Property Podcast’ to chat about the gap between women and men in the financial literacy levels, why you should never defer your financial to your partner and how to find the most appropriate advice to your situation.

This episode covers:

• Why women have a lack in confidence in their financial literacy

• Why women usually defer their financials to their partner

• Why is it crucial to share details of financials with your partner

• What happens when men take on more risk than women

• How to start talking about money.

• What honest conversations should you start having with your partner

• Why should you be getting financial advice earlier in life

Listen here. ?

Jess and Glen feature in The Australian discussing how next-gen investors have changed what value they expect from their financial adviser.

A few years ago, the average age of Australian advisers was 55 years and eight out of 10 were men. That profile was a legacy of an era when money was a male domain dominated by networks, packages and acronyms of finance, but the new face couldn’t look more different. Most of the high-profile entrants are young and many are women; they use the language of social media, the tools of tech and, while they must be across financial terms, they are more interested in busting the mystique than perpetuating it. They often use only their first names in promotional material.

They are people such as Victoria Devine, founder of She’s On the Money podcasts and co-founder of Zella, who says she’s “wildly passionate about empowering women to change their relationship with money” and is just as happy talking about a manicure budget as an ETF

There’s Lea Schodel, who was awarded as a financial adviser but ditched her licence to set up a wealth advisory called Mindful Wealth, where she talks about financial flow, aligning wealth with wellness and, yes, developing mindful behaviours around money.

My Millennial Money is a podcast from Glen James and John Pidgeon, described as the Hamish and Andy of finance. Equity Mates is headed by a couple of 20-somethings who tackle investing strategies, risk management and money markets, and answer questions such as: WTF is an ETF? Stockspot is a share investment platform that embraces robo-advice and is happy to besmirch ­traditional sources of advice in promotional material.

Somewhat more suit-and-tie is Fox & Hare, which was set up by two ex-Macquarie bankers, Jessica Brady and Glen Hare, who offer a subscription service that promises the untraditional: “There’s a misconception that financial advisers are going to make you have a budget where you don’t get to do anything fun — that’s not our belief at all!”

The new generation of advisers makes full use of digital tools (and exclamation marks). They work with robo-advice models; use apps such as the Australian Securities & Investment Commission’s TrackMySpend and Pocketbook and savings apps such as Raiz that sweep accounts for spare change and put it to use. And, as Fox & Hare point out, they are more about lifestyles than retirement.

Millennials approach financial advice like it’s just another digital tool for life — and they expect it to work like that. And if some advisers such as Schodel blur the boundary between life coach and finance adviser, that’s OK with them.

This shift in focus for advisers has been picked up by the Association of Financial Advisers, whose president, Marc Bineham, ­recently said many advisers were chasing younger and more ­financially literate clients by moving into wealth coaching — a shingle that doesn’t need a financial services licence.

Young people traditionally have been shunned by an advice industry that relied on shaving fees from large investment portfolios and, although one survey found that a third of young people would prefer to ask Siri for advice than a finance professional, they are interested in managing their money.

You can read the full article here.

Interested in having a financial coach? Book in a free coffee with us here.

We all appreciate when our boss acknowledges that we’ve gone above and beyond at the office. Working hard and hitting our KPIs is something that should be rewarded, right? And for many of us, that can mean bonuses when tax time rolls around. Another common alternative to the traditional periodic bonus, is the chance to take part in an employee share scheme.  

This scheme is a common way for companies to motivate high-performers by offering shares as a lucrative reward for good results. But it’s also a way for companies to lock employees into a job.  

Think about it like this: your performance has an impact on the profitability and results of the company, which also impacts the value of its shares (which you are now personally invested in). The idea is offering a financial piece of pie will incentivise you to work harder to increase the value of the business.  

For many who take up the scheme, this is their first serious step into investing. And this isn’t a small amount of money we’re talking about. For those who’ve been with a company for a number of years, these shares can amount to hundreds of thousands of dollars.  

But going into a scheme like this with zero stock market knowledge (and not managing your shares proactively) can tie up your wealth with one company and reduce your chances of meeting your long-term financial goals. And with thousands of your dollars at stake, taking a backseat and doing nothing when in an employee shares scheme can leave you with less than you started with.   

Too often, we see our members unsure how to navigate restricted stock units (RSUs) and how to connect this wealth to their overall financial goals. It’s the part of their portfolio they don’t understand or haven’t taken the time to factor into their big picture plan. So, is doing nothing a feasible option? And if not, what should we be doing instead? Let’s dive into 3 of the most common challenges our members face in employee share schemes and how we can help you take control of this wealth. 

 Challenge 1: Unsure how to align this wealth with your goals  

Being offered a share in your company is a pretty flattering prospect. In most cases, our members opt into a scheme like this and don’t ask many questions. Shares take care of themselves, right?  

But how does this extra pot of wealth impact on your broader financial horizons? This is a stumbling block many of our members face. Suddenly they’re lumped with huge sums of money and unsure how this can help them towards their long-term goals of buying a home or generating a passive income.  

It all comes back to education. When we’re not educated about the stock market or how our shares can help us create wealth, we feel stuck and put the idea into the ‘too hard’ basket. But when managed correctly, these shares can be a powerful player in your investment portfolio and help you unlock the financial freedom and flexibility you’re working towards.  

The key is to get clued up on how this wealth works and start proactively aligning these funds with your long-term goals. Remember: doing nothing prevents you from capitalising on this investment opportunity (which could help you save for your first home or reach early retirement sooner).  

 Challenge 2: Lack of diversification

Let’s call out the obvious before we start: all investment options come with a level of risk. Unless you’re stashing cash under your mattress (not something we’d recommend), investing your money in shares, property or bonds carries a level of risk.   

What makes RSUs particularly risky is the distinct lack of diversification in this investment option. Essentially, your wealth is dictated by the value of one company’s performance. There are no other assets shielding your portfolio from market up and downs, leaving you more vulnerable to losses that can impact your long-term financial goals.   

When we work with our members to create investment strategies, diversification is at the top of our list. Why? Because a diverse portfolio of assets spread across a broad range of industries fosters financial resilience (a.k.a. safeguards your wealth from the ups and downs of the market). The value of individual stocks will fluctuate over time and a diversified portfolio helps lessen the blows of any major downturns or market slumps.  

And for those who haven’t paid attention or actively managed their RSUs over the years, they might be holding onto them long after they should have been sold. Essentially, this heightens the risk of losses. Remember the saying, ‘don’t put all your eggs in one basket?’ That’s exactly what we’re talking about. 

Challenge 3: Tax implications 

Tax isn’t a hot topic of conversation, but we need to tackle it. Because if you take anything from this article, make it this: RSUs require active tax management, meaning you are responsible for paying the tax bill. And no, avoiding the tax man isn’t a smart option.  

RSUs have a vesting period (usually a specified number of years), which means you have to wait out this period before being able to take ownership to sell these shares. Along the way, you might be able to gain access to a certain portion of the full amount. For example, say you receive $100k worth of RSUs, with a vesting period of 3 years. After 1 year, you can access 33% of the total amount, then another 33% the following year and finally the full amount after year 3. And if you leave the company before this period is up, you forego the remainder of your shares.   

It’s important to note that you do have to wait until your RSU’s vest and become shares before you can sell them. But that doesn’t mean you can’t start planning how you’re going to navigate the tax implications of this investment! Because you have the vesting schedule from the beginning, we can help you work out roughly what your tax bill is going to be. This proactive approach means we can plan to potentially sell some of the resulting shares to cover the costs of tax or ensure you have accumulated enough cash to meet the tax bill.  

Plus, when you do sell the resulting shares, you’re also liable for the capital gains tax. But with proactive management you can receive a 50% discount on capital gains as well as offset your capital losses with gains made from your investments.  

Moving forward, if you were to cash in a portion of these vested shares, we would then help you invest in a more tax effective manner.

We are here for you!

When it comes to RSUs, feeling confused and uncertain is all too common. Many of our members come to us with the same problems and questions, unsure how to be using this wealth to their advantage. We understand that the process can seem complicated and overwhelming, but you don’t need to go it alone. We work with members just like you who are struggling to get a handle on this newfound wealth.  

We can help you understand what these shares mean for your wealth and how to make this investment a powerful way to help you reach your long-term goals. Because the last thing we’d want is for inaction to cause you to miss out on what’s most important to you. Get in touch with us and let’s chat about how we can make your RSUs work as hard as you do. 

Glen features in this months issue of Urban Village sharing the 4 reasons your New Years resolutions will fail.

Jess shares with Financial Standard Fox & Hare’s working from home transition and the technology that enables us to work so efficiently.

For Jessica Brady, the co-founder of Fox & Hare Financial Advice, the move to working from home has seen very few hiccups.

“I basically told everyone to grab their monitors and go home, and because we do use quite a lot of tech (with a few little exceptions) we were able to be back online and operational that afternoon,” she said.

“We’ve been Zoom users for a very long time now and use it to conduct all our meetings, while Loom is something we use to record ‘how-to’ videos.

“We also use DocuSign so our clients can sign-off on their Statement of Advice, but one of the coolest pieces of tech we use is called FileInvite.”

This software provides Brady’s clients with a secure portal to upload all their required documentation, while her team can see what the client has filled out, any notes they have made, and they receive a notification once all the documents have been completed. Then – it’s just an easy download to the cloud, she said.

“That has been an amazing piece of tech that we’ve been using for a long period of time, and perhaps could be helpful for people who want something more secure than email or who up until this point had been asking people to bring information in,” Brady said.

Although Brady’s practice is set up to deliver her client’s advice digitally, she has experienced a few roadblocks with some product providers still demanding paper-based documentation.

“It blows my mind that in 2020 there are still some providers who need original copies of documentation, or who still require paper-based applications,” she said.

“Not only is that really bad for the environment, but it just doesn’t make sense in a 2020 context, particularly not at the moment.”

Brady said despite government imposed social isolation, providers were not making any changes to their processes.

“I understand providers are busy trying to get everyone working from home, but I think that there’s only a few outliers that need to digitise their processes so that the advice experience can be done online,” she said.

Unfortunately, she said, there is no perfect tech solution – yet.

“The frustration is there’s no one ‘perfect product’; you just want something that does everything and we haven’t been able to find it,” Brady said.

Read the full article here. 

By Ally Selby – Financial Standard 

The Fox, Jessica Brady, talks to Yahoo Finance on how to invest wisely in a volatile market.

Stock markets have moved wildly in the last few months as geopolitical tensions and viral outbreaks spook investors.

In such an environment, experts are urging investors to hang tight and take advantage of the rises and falls.

“A lot of people are quite scared by market volatility, but if you’ve got a really long time horizon … volatility or downturns can present great opportunities for investors,” Fox & Hare financial adviser Jessica Brady told Yahoo Finance.

The most recent stock market slumps have been driven by anxieties around the coronavirus Covid-19, with the Bank of America predicting that 2020 would be the worst year for the global economy since 2009.

But outbreaks like coronavirus aren’t as out of the ordinary as some might believe, Brady said.

“This isn’t the first time we’ve seen something like this in terms of pandemics, and markets have responded in a volatile way.”

However, investors these days have immediate, digital access to their portfolios and are making rapid decisions on their investments.

During the global financial crisis, investors who didn’t stick it out ended up making major losses. “To be honest, if they had just stayed in the market, a lot of them would have recovered. But instead, they accepted a large loss.”

Brady’s top tips for investing

1. Don’t put your eggs in one basket

2. Invest according to how quickly you want to make money

3. Keep calm and carry on

Read full article here.

February 14th is said to be the most romantic day of the year. Whether you’re in a loved-up relationship or hoping to score a surprise from a secret admirer, love is most certainly in the air on Valentine’s Day. And this year, we’re challenging you to fall head over heels in love with… your finances!

Taking control of your money shouldn’t be a drag. In fact, mastering your finances is one of the most empowering things you can do for yourself (both now and into the future). Ready to learn how to rekindle the spark with your finances? Keep reading to find out more!

Create SMART goals

Do you avoid checking your bank balance at all costs? Are you putting off consolidating your super accounts? Not sure how to tackle that pesky credit card debt you can’t seem to shake? Whatever situation you find yourself in, the first step to falling in love with your financials is to set clear, strategic goals.

Our tip? Set yourself up for success by following the SMART goal-setting method. In a nutshell, this framework is all about creating goals that are Specific, Measurable, Attainable, Relevant and Time-bound. Rather than creating broad goals like “start saving”, try drilling down into exactly you’re trying to achieve by setting goals such as “save $100 per week into a high-interest savings account to reach $5,000 by December”. This goal-setting method helps to clarify exactly what success looks like and creates a roadmap for the steps you need to take each week to get you there.

Take control of your cashflow

Mastering your day-to-day spending will alleviate financial stress and boost your capacity to build wealth to help out your future self. The best bit? The formula for cashflow management is as simple as 1-2-3. Simply spend less than you earn, set up an achievable savings plan and invest regularly.

Say yes to investing

Speaking of long-term wealth, nothing is more empowering that securing a bright financial future. One of the most effective ways to do so is by diving into the world of investing (and trust us, it’s not as intimidating as you might think).

From purchasing shares to setting up a high interest savings account, there’s a type of investment to suit every level of risk tolerance. Plus, the sooner you start the better off you’ll be in the long term. Why? Check out our video on compounding to discover how interest can supercharge your long-term wealth.

Share your financial story

Every healthy relationship is built on open communication, and the same is true for your finances. But for many of us, talking about money with our friends, family and partner can be oh-so-intimidating.

So, why is it important to talk about money? The more we talk about money, and the financial questions we have, the more likely we are to learn something new and improve our financial literary. Plus, normalising money chats is essential to improving outcomes for everyone when it comes to understanding everything from tax and investing to benchmarking salaries and super contributions.

Want to learn more about why we need to smash the final taboo of money? 

Book in a free coffee with us here.☕️

Neither Jessica Brady nor Glen Hare had ever operated their own business or given financial advice, but they felt compelled to serve people who they saw were missing out.

Their aim was to turn the practice, usually targeted at wealthier and older clients, into something accessible for a younger and more diverse crowd.

The business, Fox & Hare, is now on the cusp of turning two years old. Since starting with no clients or experience, it has recently ticked over to 100 clients.

Prior to starting Fox & Hare, Mr Hare had been with Macquarie for around a decade. He departed three years into being one of the youngest directors in the company. Ms Brady on the hand has worked in financial services for 13 years, and she had been with CBA and Zurich.

“All the while my clients were financial advisers and really what I could see was, there wasn’t a great amount of choice for people who looked like me,” Ms Brady says.

“I thought most financial advisers were really gearing themselves up for wealthy pre-retiree traditional style clients and I felt with Glen, there is such a broad subset of society that really need help getting advice.

“It doesn’t make sense just to wait until you’re five years out from retirement, when you need the wealth that you’ve accumulated to go then and you need it faster. We really want to help clients much earlier in the piece.”

Both in their 30s, Ms Brady and Mr Hare target clients between the ages of 25 to 45. They also have made a point of catering to clients who have not been typical consumers in the space, welcoming young women and LGBT couples.

Ms Brady reasons the industry broadly has not done well enough in diversity, across both those giving and receiving advice.

Currently, women have been reported to make up around 20 per cent of advisers in Australia. Ms Brady describes the gap as a vicious cycle perpetuating itself.

“I think most people want to seek advice from people who look and feel like them, and that may mean that if there aren’t a lot of women giving advice, then that may put some women off actually receiving advice,” she says.

“I think that the main thing for us is, we want people to know that they are welcome irrespective of their gender, irrespective of their sexual identity, irrespective of their religion or race, and socioeconomic status to an extent. Like we want people from a whole diverse range of backgrounds to know that they won’t be judged if they come and seek advice from us.

“We want them to know that Fox & Hare is a safe space to come and get advice that’s, you know, really in their best interest, that is aligned to their goals whatever they may be, and that they’re not going to feel intimidated or overwhelmed by the experience.”

The pair have used their network for referrals, social media and events to grow their base.

“One thing that’s been amazing and probably quite surprising to the community at large is we’ve never really wanted for clients,” Ms Brady says.

“That hasn’t been a challenge. And I think that speaks to the fact that we really are speaking a different language and we really are catering to a younger demographic who didn’t know where to turn to before.”

Ms Brady says she saw a gap between traditional advice and demand from younger people for strategic and non-biased advice.

“It was a very bold move to leave a fantastic corporate role, and it was a fantastic corporate role, but it was just this burning desire to be able to help people at the coalface and really have that engagement one-on-one and know that we’re making a difference,” she says.

“It’s incredibly rewarding to be able to watch clients kind of move from, you know, that scared and anxiety-filled person at the beginning of the experience to someone who feels really on top of their financial world and knows how their strategies kind of move them towards whatever it is that they want to achieve.”

Serving tech-savvy clients

The process of giving advice is filled with friction at different points along the way. Fox & Hare uses a range of technology to combat it, Ms Brady believes more so than other practices.

One of the systems it has implemented is a goal tracking system, with daily monitoring for clients across accounts and investments in one interface. The business also doesn’t use fax lines or handwritten forms, instead asking clients to complete online forms that move directly into its CRM.

Ms Brady says old systems can be “challenging,” referring to a client’s provider, where she has been required to post original copies of paper-based information, with a five to 10 business day turn-around time.

“We’ve really just tried to think about the clients that we work with who are young, tech savvy, digitally native people, you know, they want us to interact with them in a way that they would with any other kind of provider,” Ms Brady comments.

“They expect to be able to do things online, they expect us to be able to sign documents online, they expect information can seamlessly transfer from one kind of system to another and that they could have live information on their accounts and portfolios related to goals.

“We’re just trying to create great client experiences but also remove admin burdens where we can from the back end to kind of minimise cost to serve. If we can create tech solutions that really enhance that journey for the client, just make it easier for them, then we’re definitely keen to do that.”

The technology is a tool, she says, to engage clients, keep them accountable and to motivate them to achieve their goals.

“And when I say a goal, I don’t mean, you know, I saved $10,000 or $100,000 or, you know, the traditional home, pay off your home loan,” she says.

“Whilst they are some of the financial goals, your clients get very disengaged very quickly. But if you’re able to really understand at a deeper level who is your client and what do they really truly want to achieve? And it might be that they want to pay down their mortgage so that the following five years they can spend you know, travelling Europe or you know, sending their children to a school that’s really important to them.

“You’ve really got to understand deeply what motivates the clients and then those tools become incredibly powerful.”

It is a balance, however, between understanding problems and how to solve them, creating and using the best technology solution that you can, and using it when it’s appropriate. Otherwise constantly updating tech can become disruptive to business efficiency, Ms Brady says.

“I’m always looking at new stuff, which is exciting. And I am really excited about where the industry is moving from a tech perspective,” she says.

“I think there’s a number of really interesting techs that’s coming to play and if it does what they say it’s going to do I feel like it’s going to revolutionise how we give advice and the quality of the conversations that we have.”

Giving back in investing

Social responsibility is also key to the business, both in its investing approach and its own partnerships with not-for-profits.

Fox & Hare offers ethical advice to its clients, tailored to each person’s values and goals.

In addition to offering ethical investing, the business has three charity partners it has programs with: YWCA, a not-for-profit that works to empower women through education, housing, crisis support and other initiatives, and School for Life, an organisation aiming to help Ugandan children get an education.

Mr Hare is a national partnerships manager with the third partner, LGBTIQ organisation Out for Australia. The charity helps people stay out of the closet in the workplace, who avoid being open about their sexuality because of fears around how it will affect their career.

Ms Brady has also conducted finance workshops with YWCA. She says it’s important for the business to do work aligned with its value, particularly when their clients are young and socially aware.

“I don’t know many other advice businesses that are small like us who take such a keen interest in community and charities that really align to who we are and what we believe in as well,” Ms Brady says.

On ethical investing, she notes she has to be careful in the advice she gives.

“I think the whole ethical investing space is challenging in that there is no, I believe there’s not enough robust analysis of you know, what is a green investment, is it really green? Because I see that there’s quite a bit of green washing in that not a lot of the green investments, I believe, are really true to label.

“The trend very clearly is showing that this space is becoming more and more of interest and I think it’s imperative that investment managers actually start looking at this more seriously rather than something that, you know, almost being seen as a bit cute.

“I’d like to think that if I could sit here in 12 months’ time or 24 months’ time, I will have the ability to talk about many more green and ethical investment strategies, but at the moment I am limited to what the market has.”

Jess chats to 9Honey to provide insight on what to consider when renting out your home or investment property.

With the explosion of the sharing economy in recent years, many people have jumped at the chance to rent their home or investment property out in return for strong short-term income. If you are going on holiday, or you’ve purchased a holiday home, you might be considering doing the same.

You certainly wouldn’t be alone. According to analysis by ACIL Allen Consulting, the number of nights of accommodation booked in an Australian short-term rental has increased by 26 per cent in recent years. The same report reveals that holiday homeowners earned $1.9 billion in 2017/18.

But before you join the stack of savvy Australians making cash from their own homes, make sure you’ve factored in the upfront costs and set yourself up for success before handing over the keys to guests.

Short-term gains

Generally, short-term holiday stays attract rental figures that are higher than a long-term private rental. Sydney, for example, has an average nightly rate of $350 per night in peak season, according to property listing platform Stayz.

That means you can rent out your home for short periods when there’s strong demand, such as Christmas and Easter, while enjoying the property for yourself at other times.

It’s important to remember, though, that the money you earn could be taxable. However, according to financial advisor Jessica Brady, making income from your home can still be great, even if you have to pay tax.

“Make sure you know what impact it will have on your tax (including any potential capital gains taxes when you sell),” she says.

It’s hard to predict the final figure as each person’s situation is different, but the ATO provides some examples as a guide. Again, talking to a financial advisor or tax accountant can help you prepare.

Comfort and style

It’s possible to earn great regular income when you list your property on a short stay site, but keep in mind it’s someone’s holiday so you want to make sure your property is welcoming.

That means you’ll need to provide comfortable bedding, household furniture and other creature comforts that help your listing stand out from the rest, attract positive reviews and generate a good nightly fee.

You may be able to claim some of the costs associated with the furniture as well as the cleaning and any meal provisions you supply, so check with your accountant before splashing out to see if you’re able to recover at least some of your costs.

Long-term winning

The great advantage of short-term rentals is you’re able to cut out the real estate agent and administration, plus you get to vet your prospective guests and communicate with them before they arrive so you can ensure they’re reliable and will be respectful of your property. As for all that bonus cash you’ll have coming in? Brady recommends solid planning around what you’re going to do with it.

“While it is fun to have extra play money, is there a goal you are working towards that can be achieved faster if you put it towards that? Is there a big-ticket item that you have been wanting? Make the money work hard for you.”

By Nicole Haddow | 9Honey

We are SO excited to be recognised as one of the 50 most influential advisers in Australia by the Financial Standard!! ????

It’s been such an exciting year for the Fox & Hare Financial Advice family and we can’t wait to work with our incredible clients to continue to smash goals in 2020 ??

#FSPower50 #notyouraveragefinancialadviser #financialadvisers #leadersinfinance #financialindependence

Glen sits down with Urban Village to identify the impact finances can have on a relationship and uncover the 3 steps to re-igniting your financial flame.

So your workplace has embraced the importance of mental wellbeing and physical activity in the office, however are they proactive in managing your financial stress and in turn financial wellness? Through an interactive discussion, Fox & Hare share practical advice to build a strong money mindset, in order to gain financial wellness. The demand for these types of workshops has been driven by an increasing number of organisations viewing ‘wellness’ as a broader conversation.

Here’s what Matt Lippiatt, Head of Retail Sales and Rachel Towell, State Manager NSW/ACT from MetLife had to say after we had a chat with their teams.

Matt Lippiat
Head of Retail Sales at MetLife
“Jess is a legend. I’ve known her for many years and she is as passionate as they come in regards to helping people get on top of their finances and realise their goals. We recently hosted her at MetLife as part of our Wellness Week and the workshop she ran for our people was extremely well received. She’s a great communicator and I have no hesitation recommending her.”

Rachel Towell
State Manager NSW/ACT at MetLife
“Jess and Glen recently spoke at the MetLife staff Wellness Week talking about Financial Wellness. The session was relevant to the audience, interactive and engaging but mostly it was presented in a way that made the topics really easy to relate to and understand. Well done Fox and Hare team you are certainly doing things differently.”

Book in a 15min chat ? if you’d like to learn more about the impact of financial wellness.

The Fox sits down with NestEgg to answer the top FAQ’s when choosing a good adviser ?✅