Summary
Today I’m speaking to the former Fullback of the Sydney Swans, AFL premiership player Ted Richards.
Although Ted has had an illustrious career in football, he is also passionate about investing and is currently the director of business development at SixPark, an Australian Robo advisor investment platform. Today’s pod combines two of my favourite things which are investing and footy!
Some of the topics we cover today include:
- Investing as an AFL player
- What Ted learned in footy that can be transferred to investing
- The power of rules-based investing
- Why understanding behavioural economics is so important
- Six Park Robo investing platform
- The Richard Report
- Quickfire AFL related questions
And much more!
Thank you for the very informative interview. Six Park sounds a good way for someone like myself to look at investing in shares outside of Super.
My understanding of Six Park from your interview and looking at their website in below points. I am trying to review options (e.g use SelfWealth trading platform or something like Six Park)
1. Protection if fund went out of business:
If Six Park ever went out of business , as the shares would be owned in my name [1] which from my understanding I would not lose my money, I would just need to find another broker.
2. No LIC option:
My understanding as they only deal with ETFs, I would need to reinvest the dividends myself. As, from my limited understanding of ETFs vs LICs. with LICs you can choose to reinvest to increase your share investment in that company , and also not have to pay any further tax until you sell the shares.
3. Sharesight access at no extra charge:
My understanding the benefit here is Sharesight’s reporting integrated with Six Park’s. Otherwise, using Sharesight directly it is free for 10 shareholdings / ETFs / LICs or less (which would be the case with Six Park as they have 5 portfolios [5] ) .
4. Management fee is 0.5% for amounts under $200k [3] , which is 0.03% more than the highest Vanguard management fee [2]
5. Unable to locate top holdings per ETF, as you can with Vanguard [4]
Happy to be corrected on any of the above
[1] FAQ ‘How are my investments held’ https://www.sixpark.com.au/faqs .
[2] Vanguard https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=etf
[3] Six Park fees https://www.sixpark.com.au/pricing
[4] Vanguard top 10 holdings per ETF https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=etf
[5] Six Park ETF portfolios https://www.sixpark.com.au/how-it-works/our-portfolios
Hey Michael, there’s a bit more to the management fees than you might have realised. While it’s true that a couple of Vanguard funds have fees in the ballpark of 0.5%, those are specialised funds that are intended to make up a small part of your overall portfolio (which dilutes the impact of their fees). A typical Vanguard ETF portfolio has total fees of around 0.2%. This drops even further if the US-domiciled VTS & VEU funds are used (which requires filling out some extra tax forms).
In contrast, SixPark charge 0.5% on the entire portfolio. And this is *in addition* to the management fees of the underlying ETFs. This means if you go with SixPark, your total fees will be in the range of 0.65-0.75%.
James, thanks for the further information to assist me learn more about shares. As in the past I have invested in property, and now starting to diversify by purchasing a share portfolio outside of super.