Innholdsfortegnelse for September 2019 i Money Magazine

There was a time when leaving your house without a wallet would have been disastrous. With no cash or bank cards at hand, you could not do anything nor travel anywhere. These days, between cardless withdrawals, Apple Pay and debit-card-linked travel cards, you can still get around without a gold coin to your name. In the world of investing, cash has also lost some of its currency. The mantra “cash is king” no longer holds true and investors must find new ways to stretch their hard-earned savings. We’re tackling this in our cover story “Income is king” (page 34). Pam Walkley explains the choices when interest rates are dangerously heading for zero. The options listed are by no means exhaustive, but there’s enough there worth evaluating. One of our biggest…

MICHELLE BALTAZAR Michelle is editor-in-chief of Money magazine. Michelle says: “One terrible habit I’m trying to get better at is sticking to my Christmas budget for family and friends. I start with a reasonable sum but the shiny new objects online usually get the better of me. I’m especially vulnerable when it comes to my younger nieces and nephews.” MARCUS PADLEY Marcus is the author of the daily share-market newsletter Marcus Today. Marcus says: “It would have to be solving my children’s problems the easy way – with money. Being a soft touch means they don’t learn anything. If you buy them a new mobile phone when theirs smashes, they don’t care when they break it. They will not become financially independent without feeling their own financial pain.” ANNETTE SAMPSON…

The world watched last month as political tensions in Hong Kong led to mass flight cancellations, causing chaos for passengers and sparking questions as to whether travel insurance covers such events. In short, insurance provides cover for “unforeseen” events, which will usually include strikes, riots and protests, but your ability to claim will depend on when you purchased your insurance. Those with comprehensive policies would have been eligible to claim for out-of-pocket expenses such as cancelled flights and accommodation. However, travellers who tried to panic-buy after the event was broadcast across the world will have learnt the hard way that timing is everything. What is clear to insurers – and travellers are catching on – is that world events and natural disasters can erupt at any time. We cannot stress…

OUTDOOR RENO GUIDE Dale Vine Hardie Grant, $39.99 Dale Vine, a much loved contestant from The Block, says even small changes to your backyard or garden can make it an Instagrammable haven. As a professional landscaper, he provides simple and practical examples to walk you through the entire renovation, from initial visions and planning to final execution. Vine’s message is simple: you need a plan. And regardless of your skill level, whether you’re starting with bare ground or renovating an existing space, he demystifies the process of turning your humble garden into a place you’ll want to relax in. DARREN SNYDER Ten readers can win a copy. In 25 words or less, tell us your best advice for garden care. Enter online at moneymag.com.au/win or send entries to Money, Level…

Australia’s rich are getting richer, and although poorer cohorts are closing the gap they are making slow progress. The latest Roy Morgan Wealth Report shows the wealthiest 10% of Australians have an average net wealth of more than $2 million (up $811,000 since 2007). They also hold 47.9% of the country’s net wealth. The poorest 50% have an average of $31,000 (up $11,000). While this is a welcome gain, the group’s total share of Australia’s net wealth has fallen from 3.9% to 3.7%. Roy Morgan says growing personal net wealth is highly correlated with age. The 65 and over segment has the highest average net wealth of $759,000 (up 95% since 2007), well ahead of the 25 to 34 age group with an average of $111,000 (up 6%). NSW has…

Share prices for 17 of the 23 new listings or initial public offerings (IPOs) jumped, on average, by 21% on the first day of trading over the 2018-19 financial year. In terms of share price growth after listing, there was an average gain of 63% across all new entrants to June 2019. This represents a significant turnaround compared with the previous year’s listings, which lost an average of 18% by year end relative to their listing price. IPO listings had a slow start in 2019 and most occurred in the second quarter. The lack of activity in the first quarter of the year was possibly reflective of equity market conditions at the end of 2018. While the volume of IPOs was lower than in recent years, those companies that did…

NAME: Andreas Nassar. STATUS: Married to Natalie, with a two-year-old son Aiden. QUESTIONS: How do I invest effectively in the sharemarket? Where do I start? What are the right shares for extra income and growth? What is a trusted cryptocurrency exchange with reasonable fees that is Australian based rather than an overseas one? What is a good strategy for investing in cryptocurrencies? ANSWERS: Work out the best structure for your investments as you may be able to reduce your tax and improve your asset protection. A diversified portfolio of low-cost exchange traded funds (not active ones) that you buy on the ASX is probably best for you. It could return on average 9.5% a year. Enrol in a course run by a reputable institution such as a university. It is…

Newly married Scott wants to plan for the future so ... Buy while the market is flat Q My wife (28) and I (30) are recently married and looking at investment options. I own the property we are living in, which I bought it as an investment three years ago and was negatively gearing until we moved in earlier this year. I owe about $220,000 on the mortgage (4.29% interest rate). Repayments are $1200 a month and we are paying $1600. I am studying (high school teaching) full-time and working part-time with plans to graduate at the end of 2020. My wife is working full time, earning $97,000 before tax. She has never bought a house but has $80,000 invested in shares and $75,000 in a term deposit, earning 1.65%.…

My husband, 39, and I, 41, are considering moving our family (children aged 6 and 8) from our outer south-eastern Melbourne home in Cranbourne East to the Sunshine Coast in Queensland. Our house has recently been valued at $630,000 and our mortgage is $368,000. The mortgage has recently been refinanced at a rate of 3.03%. Our only outstanding debt (apart from normal living expenses) is a secure car loan with a balance of $17,000 at 5.64%. We’re unsure of the best approach. We expect our annual household income will drop from $180,000 to $140,000 with the move. Option 1 is to keep our Melbourne property and rent it out at about $430 a week and then rent a house on the Sunshine Coast while we settle into new jobs and…

Superannuation is a bit like cholesterol – and not just because both have long names. By the time you need to know about it, you wish you’d known more, earlier. It’s not hard to put super on the backburner. Most of us are too busy in the present to worry about something that is strictly for the future. But you don’t have to become an expert to make the most of your retirement savings. Here’s what you need to know, as opposed to all the technical stuff you don’t want to know. 1 SUPER IS ALL ABOUT COMPOUND INTEREST And compound interest is wealth-creation magic. Financial planner Laura Menschik, of WLM Financial Services, says saving consistently over many years is a powerful strategy for building wealth, as compounding means…

IS IT WORTH THINKING ABOUT? Don’t rule it out. The tax office has warned it will be a key area it’s focusing on as we lodge this year’s returns. While many people can legitimately claim costs associated with using their car for work purposes, the ATO is concerned that some are claiming things they shouldn’t or over-inflating their claims to get a bigger refund. It says it will be using data analytics to trawl through tax returns and identify questionable claims. One danger sign is someone claiming more than other taxpayers on similar incomes in similar jobs. If your number comes up, it will contact you for more information on how you worked out your claim. If it thinks it is warranted, it says it may also contact your employer…

Millennials have an invaluable tool at their disposal: it’s time. As investors, which they all are thanks to compulsory super, they have long time horizons, can afford to invest in higher-return options, take advantage of market cycles and therefore reap much greater rewards. Nathan Bonarius, senior analyst at actuarial firm Rice Warner, says: “It’s better than doing so when you are older. If you put in $10,000 when you are 25, and assuming you get a real return of 2%, you will have $23,000 at retirement – so more than double. If you wait until your early 60s to get the same increase in balance, you might have to put in $20,000. “At that younger age you have a long time horizon and can afford to put it in more…

Greig King (pictured), 31, is a millennial with a mortgage who bought half a house with friends. But he wants to generate an income higher than the cash rate so he started investing, picking around 10 funds and companies that resonate with his outlook. Take his holding in Metrics Master Income Trust, which pays a monthly income from investing in corporate loans. So far it has outstripped the cash rate with a net return of almost 6% over the year to June 30. Peer-to-peer lending has given him a return of around 12.5%, but the risk is that if the loan falls through he can lose his money. “I’m not hugely into it. I have put in a maximum of $1000,” he says. Greig also likes to invest in companies…

An investor who purchased the S&P500 Total Return index in April of 2012 would have generated a return of 147% from the index with an additional boost of 44% from the 30% decline in the Australian dollar. Few investors were that successful because they are often less confident with international companies than those in their own backyard. That is, of course, why an Australian-managed global fund can help find companies with large addressable markets and long growth runways. Think technology. If you aren’t willing to employ a fund manager, however, then you’ll need to conduct some serious due diligence. Start by separating companies that dominate markets, generate large profits and trade at reasonable prices from those that are profitless. It might surprise you that Apple trades on a one-year forward…

In the pages of Money magazine you can monitor the performance of some of the biggest industry and non-industry super funds. You will see that the median big fund performance in the last financial year was around 7%, with the top ones around 9% and the bottom ones about 4%. Once again the average performance was below the total return from the All Ordinaries of around 11%. That’s the big funds, some of which are so large – there is $145 billion in AustralianSuper, for instance – that their job is not to actively manage an equity portfolio and outperform. Their main function is to provide small investors access to a mixture of asset classes and they do that very well via their expensive websites. But by virtue of the…

What was your first job? My first job included running a health food shop. The woman who owned it let me look after it while she and her husband had a six-week holiday for the first time in their lives. All I remember was making dreadful sandwiches and I couldn’t believe how tiring it was being on your feet for 12 hours a day. I also couldn’t believe she trusted a 15-year-old to run her business for six weeks. What’s the best money advice you’ve received? Having money is far less important than having access to credit. The best money advice I’ve received is ensuring you’re in a position to be able to leverage credit for strategic investing. Leveraging credit is one of the most important factors in building wealth.…

Good people are needed to tackle bad attitudes It was so refreshing to read Paul’s comments and thoughts on the recent election results and how it would affect median Australians and not the average (June edition, In Your Interest, page 10). I read Money magazine casually in our lunch room at work. Another colleague brings it in for me. I did not have a lot of money growing up and now as a middle-aged divorced adult looking at retirement in the next 20 years I am not where I am being told I should be financially. Making the most of my money throughout the last 30 years of my working life was not a priority and never seemed important. Not everyone has an interest in or the ability to look…

Who would have thought? Our official interest rate, now at 1%, is as big a surprise to me as anyone else. A year or two ago, with excellent job creation in our economy, the strength of our exports to big trading partners such as China, our strong education sector seeing large numbers of foreign students, growing exports of agricultural products, including from places with high rainfall in the far north, the US economy powering along and pretty reasonable global economic growth, I thought our interest rates would reflect this strength and remain in the region of 2% to 3%. It was only a short while ago the experts were talking about interest rate rises, yet here we are. The funny thing is that this should feel really familiar to me.…

Late payments cause a world of hurt for small businesses. They create uneven cash flow, which affects the ability to pay regular outgoings such as bills and wages, and can lead to missed business opportunities. In extreme cases, it can force businesses to shut down. Surprisingly, big businesses are the worst offenders. Data from the international research company Illion reveals that for the 2019 March quarter Australian companies with 500-plus employees had an average late payment time of 14 days. Research from accounting software Xero, which analysed more than 10 million invoices from over 150,000 Australian businesses, showed that from July 2017 to July 2018 an estimated 53% of invoices worth $115 billion were not paid on time by big businesses. There are a number of proactive steps that SMEs…

Successful investing hinges on understanding what makes economies tick, recognising how changing markets can drive new opportunities, and being able to tap into the trends of the future. Radio National’s The Money podcasts explain how the economy and everything in it works, and how it’s all connected to the global economy. It turns out, for instance, that bees are worth $14.2 billion to the Australian economy, pollinating about a third of our food; computer games are the fastest growing segment of the global entertainment market; and there’s just over $18 billion in forgotten money waiting to be claimed. There’s no hard sell, no stock tips – and, of course, being the ABC, the podcasts don’t plug particular brands. But if you’re looking for well-researched information on subjects as diverse as…

Starting with the end in mind is critical, so Andreas and Natalie should, as a first step, define their life’s goals. Next they should be aware that the structure in which their investments are held is far more important than what they invest in. Getting the structure right will help reduce tax and provide better asset protection. Examples of structures Andreas and Natalie could consider are to own investments through superannuation or a trust, or in Natalie’s name. After this, they’ll need to choose investments that meet their requirements and fit with the level of risk with which they’re comfortable, remembering that if something sounds too good to be true it usually is. Just as Andreas swapped his consulting role for the security and stability of a job in the…

Confession time. I love a good spring clean. Not just the “dust and tidy” variety, but a good old “pull everything out, scrub everything clean and only put back what you want in an ordered way” type of clean. My wife often takes a deep breath when I say, “I’m thinking of cleaning out the bedroom cupboards.” She knows soon there will be piles of things once stored in the upper reaches of our wardrobe strewn across the bedroom as I fastidiously clean everything before re-ordering it into “keep”, “give away” or “sell” piles and neatly packing it all away again. It’s total chaos for a bit, and it can be exhausting work, but in the end the whole house seems to feel lighter, more peaceful, more ordered and more…

In 2016, the average Australian household was spending $17 every week (or $884 every year) on mobile phone use. According to the Australian Bureau of Statistics’ Household Expenditure Survey 2015-16, that $17 is more than we spend every week on pets ($13) and household appliances ($15) but a little less than childcare ($18). Given this spending pattern, it’s no wonder the mobile phone market is highly competitive. So how can you make sure every last cent of that $17 is giving you value for money or how do you score a better deal on your mobile? For more than a decade it’s been a common view that buying your phone on a monthly plan (usually under contract for 12 or 24 months) is cheaper than buying a phone outright and…

Learning to drive used to be one of the milestones on the path to independence. But some kids have different priorities these days and the number of 17- to 20-year-olds learning to drive is sliding. They have a point when they say driving is expensive, and why should they spend their money on fuel, parking, insurance and other costs? Even when they finish studying and find a job, their wages often don’t support running a car because their housing is expensive too. If they live near public transport, they don’t see the point in learning to drive. And besides, one day there will be driverless cars, so why bother? But parents often see it differently. They want their kids to drive. It saves parents hours spent behind the wheel as…

More than half a million homeowners across the eastern seaboard have enough space on their property to build a granny flat, which could boost home values by 30% and add around 27% to rental income, according to property researcher CoreLogic. Recent analysis by CoreLogic and ArchiStar, a property design platform, identified 583,440 properties in Sydney, Melbourne and Brisbane that meet the criteria for an additional self-contained unit of at least 60sqm. “Building a granny flat is becoming an increasingly compelling proposition for homeowners in a relatively lacklustre market,” says Tim Lawless, head of research at CoreLogic. “Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing.” NSW is the granny flat capital, with more…

The super guarantee (SG) is legislated to go up to 12% by 2025, starting with 0.5% increments in 2021. It will mean 50% of Australians will get to live comfortably in retirement by 2050 – over double the current proportion, according to ASFA. For a 30-year-old on $40,000 a year, with a current balance of $20,000, compulsory super will deliver an estimated $263,500 at retirement. This will increase retirement income from $23,662 a year (the age pension including allowances) to $34,078 a year. Some Liberals argue it shouldn’t be lifted as it will dampen wages. But ASFA CEO Martin Fahy disagrees. “Wages have been stagnant for about seven years. Yet at the same time the ASX sits about 6800. It shows all the gains in productivity, however modest they have…

Erica Robinson (pictured) doesn’t see the point of keeping her money in cash and term deposits. “The lack of return on term deposits makes it a no-brainer,” says Erica. Cash doesn’t keep up with inflation so you are going backwards by keeping your money in it. Erica, 24, developed an appetite for shares from a young age when her grandparents bought her some shares in the packaging company Amcor. After she finished university, she transferred the holding into her own name and began to look around for good market information. “I take a real interest in economics and how it affects the sharemarket.” She listens to money experts such as Alan Kohler and EquityMates’ Julia Lee. She has signed up with online broker CommSec. She holds four shares: NAB, Amcor,…

YES ERIK BERGSENG It is always a good time to consider investing in micro-cap companies. Micro-cap investors are able to isolate specific investment themes that represent high growth potential or select companies that have attractive value characteristics. Consequently, there are always opportunities to identify sectors, themes or companies that can go against a negative trend. It is possible for a micro-cap company to have revenues climb tenfold because its total revenues will start from a smaller base. Such a trajectory would likely result in an uplift in the valuation of that company. On the other hand, it is virtually impossible for a blue-chip company to do the same. By having more market share, it will be more vulnerable to weaker market conditions. Investors in micro-caps should look at the fundamentals…

Lisa is chief executive of CoreLogic International, the global property data and analytics company, and she is accountable for the overall business operations across Australia, New Zealand and the UK. Before joining CoreLogic, Lisa was an executive director for ING’s Australian banking operations, directly responsible for its retail banking revenue, the financial performance of its commercial banking unit and for global data and digital transformation strategies. Earlier in her career she practised as a barrister and served as general counsel for Mercantile Mutual. Lisa has also been active on not-for-profit boards throughout her executive career.…

Switching to a better deal saves thousands I was late to read your April edition, but it was worth it. Your cover story “Switch to a better deal” has saved me several thousands of dollars on my mortgage, car insurance and mobile phone. I’ve also been reviewing bank and credit card charges over the past month. Based on competitive quotes, I requested a better price and all companies adjusted their rates. The biggest saving came from the bank, where the local manager refused to adjust a home loan in line with the competition. However, persistence paid off as I called the bank direct and requested a rate the same as its competitors and two minutes later I was given the same rate with no need to change banks. I would…

The Australian Prudential Regulation Authority (APRA) must escalate its focus on superannuation member outcomes if it’s going to meet the community’s heightened expectations of the regulator’s role. This is a key finding of the recent APRA Capability Review (published mid July), which was commissioned as a recommendation of the financial services royal commission. While the review notes that APRA has a strong track record, it says it will need more power and resources to maintain its protection of Australians’ financial wellbeing. Among the review’s 24 recommendations it is suggested APRA be given the power to veto the appointment or reappointment of directors and senior executives of regulated entities, including super funds. However, the power should be available only “where the risks associated with the entity, including but not limited to…

Aberdeen Standard Investments (ASI) has launched an Emerging Market Local Currency Debt Fund for Australian investors. You can invest with a minimum of $20,000. Brett Diment, ASI’s head of global emerging market debt, says EM debt is providing higher yields than Australian and global developed-market bonds. The vast majority of the portfolio is invested in government bonds. The regulator ASIC has banned high-profile financial adviser Sam Henderson for three years. His inappropriate financial advice was laid bare in last year’s royal commission. The investigation into Henderson’s conduct is continuing, but he has already been fined $50,000 by the Financial Planning Association of Australia, which found him guilty of breaching its professional code of conduct nine times last year. According to ASIC, Australia’s five largest banking and financial services institutions have…

Renovating a rental property can be an expensive and time-consuming business, but the good news is that many of the costs can be claimed as a tax deduction. Broadly speaking, any work you do to renovate your property will be tax deductible straightaway or will qualify as an improvement, which is an item of capital expenditure that will need to be written off over time. Items that potentially can be claimed straightaway against your current year’s rental income include repairs to make good or remedy defects in, damage to or deterioration of the property. Major renovations, such as remodelling a bathroom, are classed as capital improvements and are either depreciated over the life of the asset or claimed as capital works deductions, so you’ll spread the cost over several years…

Cryptocurrency is a high-risk and volatile asset so I never encourage anyone to invest more than they can afford to lose. You have to treat it as play money because we are in a tech space that is very new. Exchanges in Australia are supported by an industry body, Blockchain Australia, previously called ADCA, of which I am a board member. The approved Australian exchanges have never been hacked and they have low fees. There are exchanges such as CoinSpot that give you access to a range of coins in Australia. There are plenty of others out there that are trusted. If you want to be able to pick up the phone when you are buying and selling cryptocurrencies to have a conversation with a broker who can walk you…

Well, Melissa, this is a big one. It’s a personal decision, but I can give you my thoughts from a broader perspective. Your four options are all logical and each has merits. But the real issue is you, your husband and your children. I am sure you are considering this move for a whole range of reasons, from housing affordability to lifestyle and opportunities for the whole family. Over many decades of being asked the “move or stay” question, I reckon there is one rule that overrides everything else, and that is “try before you buy”. We are all humans with strange quirks, beliefs and habits. One thing we all have, though, is great enthusiasm for the honeymoon period of a new relationship, friendship, car, boat or a job. Nothing…

During the banking royal commission’s public hearings, the damage caused by poor financial advice was there for us all to see. It did little to repair the trust gap between financial advisers and existing or prospective clients. Trust is only one problem plaguing financial advisers. We’re increasingly savvy when it comes to managing money and more likely to manage our own affairs, which means advisers need to better demonstrate their value and do so quickly before advice becomes all too stale. Jodie Hampshire, managing director of Russell Investments Australia, is concerned not as many of us will look for financial advice in the future because what an adviser has to offer – on the surface – will appear less appealing. New adviser education standards (think more compliance and training) and…

1. Review and standardise procedures for dealing with joint accounts where one person has dementia. 2. Engage with the local police force to understand the top scams and crimes in your area. 3. Record key details that can offer a tailored service to best meet the customer’s needs, helping them select the most suitable products in response to their specific type of dementia. 4. Design an accessible and supportive physical environment for people living with dementia (for example, office layout, fitout and lighting). 5. Train staff to identify signs of dementia or when a customer with dementia is vulnerable to making the wrong financial decisions (for example, unusually large withdrawals and accumulating overdrawn fees). 6. Keep account details updated, including phone number, home address and next of kin. 7. Offer…

• What is included in your superannuation insurance policies? Many policies offer better rates for certain occupational ratings – check that you are getting the best deal possible. Also make sure you’re not paying for policies you don’t want or need. • What rewards and discounts are you entitled to through your financial products or other memberships? Small discounts and benefits can really add up. • Do you have any other insurance policies that you haven’t reviewed for a few years? Make sure your coverage matches your current requirements. • Look at your memberships and subscriptions – are there any you haven’t used for several months? In this online world, it’s easy to lose track of monthly paid apps, software subscriptions and premium access services. Check your bank and credit…

If your caravan spends most of the year sitting idly in the garage, you could be missing out on some big bucks. In fact, by hiring it to fellow travellers via the RV sharing platform Camplify, which launched in 2015, you could add thousands of dollars to your annual income. Today there are more than 3500 caravans, campervans and other recreational vehicles registered with the platform in Australia, and about 600,000 RVs parked across the country, according to various industry sources. How does it work? In the same way Airbnb lets homeowners make some extra cash from a spare bedroom, Camplify gives people the chance to score additional income from their vans or motorhomes. Van owners list their vehicle on the website and accept bookings directly from hirers (or “explorers”…

Can’t afford to buy in the area where you live? There is a way to enjoy the lifestyle of your favourite suburb and still get a foothold in the property market. Rentvesting – owning an investment property while renting where you live – is gaining traction. Research from Property Investment Professionals of Australia shows a third of first-time buyers are shunning the owner-occupied dream and instead investing in a property and continuing to be tenants elsewhere. While it can offer the best of both worlds, rentvesting calls for plenty of research to be sure it stacks up as an alternative to buying a home. On this score, Angus Raine, executive chairman of the Raine & Horne property group, doesn’t mince his words. “Today we have historically low interest rates and…

If you’re a millennial aged 23 to 38, watch out. Investment managers, banks, insurance companies and superannuation funds are monitoring your every financial move. They can see you coming and are rolling out a smorgasbord of millennial-baiting products to snare your dollars. We all know millennials, also called gen Y, are tech savvy, but it goes both ways. Financial institutions are employing their algorithms to watch millennials and develop products to match any trend that arises. Australian millennials are evolving rapidly when it comes to their finances. They may face plenty of headwinds such as student debt, expensive housing, underemployment, stagnant wage growth and, if they have kids, high childcare costs. But they also have plenty going for them. They represent almost half of all workers and spend $1 in…

Excuse me if I sound flustered! There’s so much going on. Companies have just reported their profits and dividends are set to flow. Interest rates are historically low and seem set to fall further. The Australian dollar is lower, exports are booming, the sharemarket hit new highs before crashing in mid August and the slump in house prices appears to be over. What could possibly go wrong? Let me think. Brexit could be very messy for markets and unhelpful for short term activity in the UK. The US has lost some growth momentum and the International Monetary Fund has cut its global growth forecasts. Locally, economic growth remains below par and regulation is on the rise. To navigate the ongoing mix of economic events, we need to ask the right…

In these high-growth, go-go days of the so-called WAAAX tech stocks – and more than 60 ASX companies with a price-earnings ratio over 30 – is there anything less exciting than talking about utilities? These are the companies that provide the roads, pipelines, airports and communications infrastructure that our economic lives depend on. So they’re important. But if they’re not buy-now-pay-later dynamos, software-as-a-service innovators or choose-your-own-hyphenated-description crowd favourites, why bother investing in them? The answer, of course, is that investing is neither about the present or the past. It’s about the future. And where one investor might want to fill their portfolio with growth at any cost, another is looking for steady returns, preferably with some nice, regular dividends. Then there’s just plain diversification. A concentrated portfolio can magnify your…