1 00:00:03,760 --> 00:00:06,400 Michael Thompson: Welcome to Ask Fear and Greed. Will we answer questions 2 00:00:06,400 --> 00:00:10,520 Michael Thompson: about business, investing, economics, politics and more. I'm Michael Thompson 3 00:00:10,680 --> 00:00:11,920 Michael Thompson: and hello Sean Aylmer. 4 00:00:12,080 --> 00:00:12,760 Sean Aylmer: Hello, Michael. 5 00:00:13,080 --> 00:00:18,200 Michael Thompson: Sean, a very timely question today. How much should we 6 00:00:18,360 --> 00:00:21,159 Michael Thompson: worry about falling super balances? 7 00:00:21,880 --> 00:00:25,160 Sean Aylmer: Ah, because of what's going on in financial markets. Well, 8 00:00:25,239 --> 00:00:29,240 Sean Aylmer: unless you're about to retire, you shouldn't worry about it 9 00:00:29,400 --> 00:00:32,440 Sean Aylmer: much at all. Okay now, And even if you're going 10 00:00:32,479 --> 00:00:34,040 Sean Aylmer: to retire, it's not like you take all the money 11 00:00:34,040 --> 00:00:35,959 Sean Aylmer: now and spend it and don't. I mean, you've kind 12 00:00:35,960 --> 00:00:39,360 Sean Aylmer: of invested it when you retire. The point is superannuation 13 00:00:40,120 --> 00:00:43,680 Sean Aylmer: is a long term investment held on. You're looking at me, 14 00:00:43,720 --> 00:00:44,199 Sean Aylmer: You're pointing you. 15 00:00:44,360 --> 00:00:46,800 Michael Thompson: No, I'm not at all. But I think that is 16 00:00:46,840 --> 00:00:49,720 Michael Thompson: a message that needs to get out quite broadly, particularly 17 00:00:49,720 --> 00:00:52,839 Michael Thompson: to young people, because there has been a space of 18 00:00:52,960 --> 00:00:54,200 Michael Thompson: videos you bought. 19 00:00:53,920 --> 00:00:56,040 Sean Aylmer: This, you show me this video was like a twenty 20 00:00:56,080 --> 00:00:59,000 Sean Aylmer: eight year old or twenty nine year old on Instagram 21 00:00:59,040 --> 00:01:04,040 Sean Aylmer: looking at his super account and being distressed about what 22 00:01:04,120 --> 00:01:07,080 Sean Aylmer: was going on. So that twenty twenty nine year old 23 00:01:07,160 --> 00:01:11,160 Sean Aylmer: isn't going to access his account for thirty years, thirty 24 00:01:11,200 --> 00:01:13,360 Sean Aylmer: five years, so it actually doesn't matter. If you look 25 00:01:13,400 --> 00:01:17,560 Sean Aylmer: at the last thirty years of returns and it's it's 26 00:01:17,560 --> 00:01:19,440 Sean Aylmer: at least it's an indicator of what the next thirty 27 00:01:19,520 --> 00:01:23,319 Sean Aylmer: might be like about seven point nine percent eight percent 28 00:01:23,400 --> 00:01:28,880 Sean Aylmer: on average return each year compound over the last thirty years. Now, 29 00:01:28,920 --> 00:01:32,520 Sean Aylmer: in that last thirty years, we've had the global financial crisis, 30 00:01:33,160 --> 00:01:37,000 Sean Aylmer: we've had COVID, we've had much bigger falls than what's 31 00:01:37,040 --> 00:01:39,160 Sean Aylmer: going on at the moment. And in fact, in the 32 00:01:39,240 --> 00:01:41,920 Sean Aylmer: last thirty two years, I think it is twenty seven 33 00:01:41,959 --> 00:01:45,080 Sean Aylmer: of thirty two years you've had positive returns on super 34 00:01:45,440 --> 00:01:47,720 Sean Aylmer: only if I've been negative, and for the last two years, 35 00:01:47,720 --> 00:01:50,200 Sean Aylmer: one was like ten percent, the other was eleven percent. 36 00:01:50,840 --> 00:01:55,600 Sean Aylmer: So it's a long term investment. Markets go up and down, 37 00:01:55,640 --> 00:01:59,880 Sean Aylmer: but long term they trend higher. So all this me 38 00:02:00,320 --> 00:02:02,760 Sean Aylmer: always known the media and we are the media, and 39 00:02:02,800 --> 00:02:04,760 Sean Aylmer: we have done it right. But at the end of 40 00:02:04,800 --> 00:02:08,200 Sean Aylmer: the day, a twenty eight year old shouldn't give two. 41 00:02:08,080 --> 00:02:11,400 Michael Thompson: Hoots, shouldn't worry too much. And some of the comments 42 00:02:11,480 --> 00:02:15,519 Michael Thompson: that were attached to that video, for people saying I 43 00:02:15,639 --> 00:02:18,200 Michael Thompson: lost five thousand dollars, how was this allowed? And someone 44 00:02:18,240 --> 00:02:21,799 Michael Thompson: said mine is down sixteen thousand, and probably In one 45 00:02:21,840 --> 00:02:25,239 Michael Thompson: comment made by the individual, the young man who had 46 00:02:25,440 --> 00:02:29,920 Michael Thompson: lost the forty thousand dollars, he made the point, he goes, 47 00:02:30,040 --> 00:02:33,800 Michael Thompson: it'll come back eventually, right, And chances are he's actually 48 00:02:33,919 --> 00:02:35,160 Michael Thompson: kind of thinking. 49 00:02:35,960 --> 00:02:38,480 Sean Aylmer: Twenty thousand dollars I wonder. I mean, that's a lot 50 00:02:38,520 --> 00:02:40,480 Sean Aylmer: of money for a twenty eight year old to lose 51 00:02:40,560 --> 00:02:41,519 Sean Aylmer: in superinnuation. 52 00:02:42,400 --> 00:02:44,400 Michael Thompson: And it may be the case that he is in 53 00:02:44,440 --> 00:02:50,560 Michael Thompson: a high aggressive Yeah, a high aggressive fun I think 54 00:02:51,120 --> 00:02:51,800 Michael Thompson: it will come back. 55 00:02:51,800 --> 00:02:53,480 Sean Aylmer: I mean for a twenty eight or twenty nine year old, 56 00:02:53,600 --> 00:02:56,600 Sean Aylmer: don't worry about it. If you're my age, don't worry 57 00:02:56,639 --> 00:02:58,760 Sean Aylmer: about it. If you're sixty five, you're going to start 58 00:02:58,760 --> 00:03:02,480 Sean Aylmer: thinking about it, definitely. But even then you reinvest the 59 00:03:02,520 --> 00:03:05,919 Sean Aylmer: money in over twenty or thirty years, you've got to 60 00:03:05,960 --> 00:03:08,640 Sean Aylmer: live as a sixty five year old, you're still the 61 00:03:08,680 --> 00:03:09,440 Sean Aylmer: mark will bounce. 62 00:03:09,680 --> 00:03:13,400 Michael Thompson: And if you're genuinely worried about it, then talk to somebody, 63 00:03:13,560 --> 00:03:16,960 Michael Thompson: because the thing is that there is there are financial 64 00:03:17,000 --> 00:03:20,240 Michael Thompson: advisors and financial planners that you can talk to. You 65 00:03:20,240 --> 00:03:23,240 Michael Thompson: can even contact your superfund in most cases, and there 66 00:03:23,280 --> 00:03:27,760 Michael Thompson: is generic advice available through your superfund in many cases. 67 00:03:28,320 --> 00:03:31,320 Michael Thompson: And if you're really upset and really distressed. There are 68 00:03:31,320 --> 00:03:35,000 Michael Thompson: financial counselors available as well, so there are plenty of 69 00:03:35,040 --> 00:03:38,920 Michael Thompson: options out there, but starting with some good quality financial 70 00:03:38,960 --> 00:03:41,480 Michael Thompson: advice is a fantastic thing to do no matter where 71 00:03:41,480 --> 00:03:42,680 Michael Thompson: you are in the Super journey. 72 00:03:42,800 --> 00:03:45,760 Sean Aylmer: Yeah, and don't stress. No, Super is a long, long 73 00:03:45,880 --> 00:03:49,920 Sean Aylmer: term investment and a week of poor returns isn't going 74 00:03:49,960 --> 00:03:51,600 Sean Aylmer: to make that much difference in the long run. 75 00:03:52,240 --> 00:03:55,960 Michael Thompson: Still distressing to see it. I don't think that part changes. 76 00:03:56,240 --> 00:03:58,760 Michael Thompson: I think we've calmed things down. I think I have 77 00:03:59,120 --> 00:04:02,200 Michael Thompson: I think an admirable job there, Sean, Thank you very much, 78 00:04:02,360 --> 00:04:04,400 Michael Thompson: Thank you, Michael. If you have your own question that 79 00:04:04,440 --> 00:04:07,520 Michael Thompson: you would like us to answer them, please send it 80 00:04:07,600 --> 00:04:11,520 Michael Thompson: on through via LinkedIn or Instagram or Facebook really any 81 00:04:11,680 --> 00:04:14,120 Michael Thompson: of the social media platforms, or at Fearangreed dot com 82 00:04:14,160 --> 00:04:15,720 Michael Thompson: dot au, which is also where you can sign up 83 00:04:15,720 --> 00:04:19,359 Michael Thompson: for our free daily newsletter. I'm Michael Thompson and this 84 00:04:19,600 --> 00:04:20,640 Michael Thompson: is ask Fear and Greed.