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Speaker 1: Welcome to Start Here, a very special mini series within

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Speaker 1: Sugar Mama's Fireplay that is designed just for you. This

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Speaker 1: is your safe space where you can ask me your questions,

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Speaker 1: you can share your financial challenges, and hopefully, together we

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Speaker 1: can break through any fears or mental blocks holding you

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Speaker 1: back from getting started. So, whether you're feeling overwhelmed, stuck,

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Speaker 1: or simply unsure of where to begin and start working

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Speaker 1: on your goals and dreams, this is the perfect series

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Speaker 1: for you where I'm going to provide you with honest,

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Speaker 1: practical and empowering guidance to help you take the first

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Speaker 1: steps towards achieving financial clarity and confidence in your life.

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Speaker 1: Here's how it works. Simply send me a DM on

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Speaker 1: Instagram at Sugar Mamma TV or my own personal lifestyle account,

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Speaker 1: Canna Campbell Official, Introduce yourself and let me know what

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Speaker 1: you need general advice on now. In each episode of

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Speaker 1: Start Here, I'm going to inspire you. I'm going to

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Speaker 1: educate you around money and what you need to be thinking

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Speaker 1: about and considering, and I'm going to empower you to

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Speaker 1: start thinking critically, take the right start moving in the

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Speaker 1: correct direction today in positive alignment to those exciting financial

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Speaker 1: goals and dreams. So let's get started with today's episode.

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Speaker 1: So today's question comes in, and I'm going to call

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Speaker 1: this lady Amanda just to protect her privacy, and this

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Speaker 1: is what she's written. Hi, Canna, I appreciate all that

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Speaker 1: you do. I have a question for your new series

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Speaker 1: start here. I'm trying to choose between adding extra money

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Speaker 1: to my superannuation account or paying down more off my

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Speaker 1: interest free two hundred thousand dollars home loan that I

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Speaker 1: have with my dad. I have this interest free loan

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Speaker 1: for another five years. I'm fifty this year and I

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Speaker 1: have another two hundred and sixty thousand dollars in SUPER.

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Speaker 1: I'm currently contributing around fifteen percent in Super, including employer contributions.

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Speaker 1: In five years time, I have to get a mortgage

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Speaker 1: to pay back my dad. I'd like to transition to

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Speaker 1: a time at any age sixty, then maybe find a

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Speaker 1: part time job working for as long as required. Can

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Speaker 1: you please outline the benefits of adding extra money to

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Speaker 1: superannuation as opposed to paying off the interest free loan,

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Speaker 1: Love Amanda, Okay, all right, there's a lot of things

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Speaker 1: going on here, and of course I need to remind

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Speaker 1: everyone that whilst I'm going to give you lots of

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Speaker 1: ideas and things to think about, none of this is

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Speaker 1: actually personal advice, so please bear that in mind, even

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Speaker 1: though I am a licensed financial planner. So all right,

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Speaker 1: what we're going to start off with is going through

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Speaker 1: some important assumptions for some of my answers today. I'm

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Speaker 1: going to assume that this two hundred and fifty thousand

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Speaker 1: dollars loan is the only loan that you have. You

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Speaker 1: don't have any credit card debt, buy now, pay later,

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Speaker 1: payment's going on car loans and stuff like that. I'm

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Speaker 1: also going to assume that that in five years time,

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Speaker 1: the whole entire loan must be repaid to your dad.

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Speaker 1: I'm also going to assume that you have plenty of

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Speaker 1: emergency money. I'm going to assume that you have adequate

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Speaker 1: personal insurance in place like income protection and TPD and

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Speaker 1: trauma for example. And I'm also going to assume that

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Speaker 1: you don't have any investments that really other than you know,

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Speaker 1: your superannuation really is your only investment. You don't have

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Speaker 1: any shares or investment properties outside of your asset base.

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Speaker 1: I'm also going to assume a couple of things around

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Speaker 1: your goal, So please bear this in mind. I'm going

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Speaker 1: to assume you, ideally, in a perfect world, you love

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Speaker 1: to be mortgage free. And I'm going to assume that

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Speaker 1: you want to have the choice to be able to

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Speaker 1: decide when you retire exactly at what age. I know

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Speaker 1: you've mentioned sixty, but is it you know how close

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Speaker 1: and adamant are you about age sixty? And I also

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Speaker 1: am going to assume that you want to have a

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Speaker 1: comfortable retirement. I should point out though I do not

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Speaker 1: know where your respreffl is. I have no idea how

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Speaker 1: much money you earn. I have no idea what your

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Speaker 1: cash flow looks like. You know whether you're sticking to

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Speaker 1: your budget comfortably or whether things are quite tight. And

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Speaker 1: I have no idea as to how much money you

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Speaker 1: really want to retire on, as well as the caps

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Speaker 1: that you maybe have reached for previous superannuation contributions. So

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Speaker 1: please bear in mind that I'm going to give you

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Speaker 1: some great things to think about and to potentially do

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Speaker 1: or get it vice yes, around doing, But you need

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Speaker 1: to be aware of the limitations of this conversation. But

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Speaker 1: I promised you you're going to have a lot of

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Speaker 1: things to think about. From listening to this so from

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Speaker 1: reading or a message, it sounds like you think it's

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Speaker 1: one or the other. You either put more money towards

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Speaker 1: paying off this loan to your father, which is interest free,

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Speaker 1: or whether you put more money into superinnoation. From your

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Speaker 1: point of view, looks like you just think there's two options,

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Speaker 1: one or the other. This is why I love what

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Speaker 1: I do, because I look at things in such a

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Speaker 1: different way. To me, there's actually four different options. There's

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Speaker 1: the option, as you said, to put more money towards

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Speaker 1: savings and pay back your dad. The other option is

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Speaker 1: to put money into Super. There's actually the option of

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Speaker 1: doing a mix of the both. And then of course

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Speaker 1: there is the option start investing outside of Super. And

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Speaker 1: I'm going to come back to all of these towards

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Speaker 1: the end of this episode. But please know it's not

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Speaker 1: a black and white world. There are lots of different things,

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Speaker 1: and the mix of gray that we may come up

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Speaker 1: with and think about taking can actually sometimes be darker,

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Speaker 1: sometimes be lighter, because we always tweak and change an

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Speaker 1: investment strategy or wealth creation strategy as we naturally go

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Speaker 1: through life and go through all those different stages and

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Speaker 1: the evolution. You need to change your strategy along the way,

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Speaker 1: so it's never sort of this way or that way

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Speaker 1: and that's it, and you've got to stick to it

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Speaker 1: at set in stone never So all right, what I

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Speaker 1: want to do is give you some really clear steps

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Speaker 1: as to how to get started, because this is the

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Speaker 1: big thing here. First of all, I want you to

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Speaker 1: get crystal clear about what you really want. Money loves

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Speaker 1: definition and detail. I want you to spend time doing this.

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Speaker 1: Don't rush it, think about it clearly. Maybe cross reference

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Speaker 1: your budget and your living expenses. Perhaps talk to friends

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Speaker 1: about how much they think they want to retire on

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Speaker 1: or how they've worked it out. And of course I'm

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Speaker 1: going to flag the whole way through this that you

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Speaker 1: go and get personal advice from a licensed financial planner.

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Speaker 1: But these are things you can do in the meantime

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Speaker 1: before you see a financial planner, so that when you

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Speaker 1: do turn up to the financial plans office, you are

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Speaker 1: armed with so much information and you are so knowledgeable,

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Speaker 1: and you know your financial planner will look at you

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Speaker 1: go wow, you already have a lot of homework. You

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Speaker 1: really know what you want. This is going to be great.

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Speaker 1: I can really help you. We can waste no time

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Speaker 1: at all and hit the ground running. So, as I said,

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Speaker 1: I want you to think about these questions. Number one

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Speaker 1: is how much do you want to retire on? Now,

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Speaker 1: this is really important. There's almost two answers to this,

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Speaker 1: because you're going to have to think about, okay, how

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Speaker 1: much do you want to retire on working part time?

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Speaker 1: How much do you want to retire on being in

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Speaker 1: full time retirement? And if you're working part time, how

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Speaker 1: much do you think you can realistically earn? And what

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Speaker 1: type of work would you be looking at working part time?

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Speaker 1: The other question you need to think about is how

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Speaker 1: long do you want this money to last? Now? I

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Speaker 1: know this sounds like a really morbid question, it's quite

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Speaker 1: a sobering one, but you need to look at what

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Speaker 1: the life expectancy is like and think about your own

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Speaker 1: health and you know, think about whether you have children

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Speaker 1: or grandchildren or loved ones or a charity that you

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Speaker 1: want to leave money to and is and of course

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Speaker 1: like are you in good health? You know what your

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Speaker 1: lifestyle going to look like during retirement? Now are you

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Speaker 1: going to need um sums perhaps for maintenance of your

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Speaker 1: home or you're going to need lump sums to help

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Speaker 1: donate money to charity, or you're going to need lump sums,

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Speaker 1: so perhaps make some major lifestyle changes or grow on

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Speaker 1: long sabbaticals and long wonderful time. It's you really need

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Speaker 1: to get crystal clear about what you really want so

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Speaker 1: that when we understand what we want, we can then

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Speaker 1: see how much that's going to cost, and then we

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Speaker 1: can work back from here. And this is what I

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Speaker 1: do with all of my financial planning clients. We would

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Speaker 1: actually look at, okay, well where do we want to land? Okay,

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Speaker 1: that's the ideal situation. If I could waive a magic

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Speaker 1: wand that's what age you want to retire on, and

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Speaker 1: that's how much you want to earn. Therefore, we can

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Speaker 1: now calculate how much we need, and that's exactly what

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Speaker 1: you go to need. Now, obviously I don't know too

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Speaker 1: much about your situations. I'm gonna do some really rough

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Speaker 1: numbers here. But if you want to retire on say

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Speaker 1: sixty thousand dollars per annum in today's dollars, and you

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Speaker 1: want that money to last stay thirty years, and I'm

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Speaker 1: going to assume you know no lump sums and you

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Speaker 1: don't need to leave any money in your estate. You're

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Speaker 1: happy to watch that money, you know, in your superannuation

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Speaker 1: a road away over thirty years down to nothing. You

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Speaker 1: could need approximately a million dollars and obviously that's going

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Speaker 1: to be subject to return. Knowing that figure of say

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Speaker 1: a million dollars is going to help you get really

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Speaker 1: clear as to what is involved from you, what action

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Speaker 1: needs to be taken today, what you need to be

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Speaker 1: doing right now to get started. Because with that million dollars,

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Speaker 1: having that figure, that's your landing destination. You can then

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Speaker 1: look at, okay, well what have I got so far?

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Speaker 1: You can jump on the Sugar Mama website and there's

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Speaker 1: lots of calculators out there as well as the Sugar

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Speaker 1: Mama ones, but you can start to run some projections. So,

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Speaker 1: for example, you mentioned in your message to me that

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Speaker 1: you have about two hundred and sixty thousand dollars in

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Speaker 1: super and that you're salary sacrificing, you know, fifteen percent

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Speaker 1: per annum. You can now plug those numbers in and

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Speaker 1: run those projections to see what that will look like

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Speaker 1: in ten years time. And you might run your numbers

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Speaker 1: and go, oh wow, I'm actually going to have about

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Speaker 1: eight hundred and fifty thousand dollars in super at age sixty,

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Speaker 1: but I actually really need a million or I need

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Speaker 1: one point two million dollars. You can then see the gap,

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Speaker 1: and that sooner you see that gap, the better because

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Speaker 1: it means you've got more time to try and bridge

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Speaker 1: that gap. And yes, bridging a gap is possible when

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Speaker 1: you actually start putting the right strategy in place under

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Speaker 1: the guidance of a financial planner giving you personal advice

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Speaker 1: on an ongoing basis. All right, just to quickly recap,

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Speaker 1: Number one is getting crystal clear about what you want,

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Speaker 1: where do you want to land, how much you want

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Speaker 1: to retire on exactly what age, what's that transition going

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Speaker 1: to look like, how much money you're going to earn

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Speaker 1: part time, what's your lifestyle, what it loves, some expenses

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Speaker 1: are you going to need, and how long is that

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Speaker 1: money going to. Last? Step number two is to then

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Speaker 1: look at projections, look at what you've got so far

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Speaker 1: and use a superannuation calculator to see how much money

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Speaker 1: you will have at age sixty and tierning on with

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Speaker 1: what you're currently doing. That will then allow you to

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Speaker 1: see the gap. The next step step three, I recommend

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Speaker 1: that you have an honest conversation with your father, have

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Speaker 1: a conversation with him about the loan, and be rarely

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Speaker 1: open about your goals and let him know that it

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Speaker 1: is your number one priority to make sure that he

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Speaker 1: has that money back in his hand in full. But

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Speaker 1: also want to play devil's advocate here. I want you

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Speaker 1: to ask him about this money because we don't want

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Speaker 1: this loan to you to ever jeopardize his own financial

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Speaker 1: wellbeing and his own financial goals. So making sure that

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Speaker 1: there is complete transparency, honesty, and have that open, safe

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Speaker 1: communication that is always respectful between you two, I think

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Speaker 1: is extremely important because it works both ways. And of

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Speaker 1: course you would never want your father to be suffering

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Speaker 1: financially as he waits for that money to come back.

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Speaker 1: And also you never know what conversations may actually come

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Speaker 1: from having this initial conversation in the first place. Next

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Speaker 1: step is I want you to go and see a

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Speaker 1: financial planner. Yes, I said, I'm going to help you

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Speaker 1: get started, and this information that I've just given you,

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Speaker 1: these instructions are going to really help make a big

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Speaker 1: difference in the quality and efficiency of a financial planner.

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Speaker 1: The financial planner will sit down with you and will

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Speaker 1: actually work out the different options. As I said, I

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Speaker 1: actually see four options here. Saving that is putting the

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Speaker 1: money aside to pay back your father. The second option

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Speaker 1: is to put all that money into superannuation. That option

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Speaker 1: is to do a little bit of a mix of it.

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Speaker 1: Both you have a payment plan in place to a dad,

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Speaker 1: you also do some salary sacrificing it along the way,

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Speaker 1: or maybe some aftertax contributions. And then obviously number four

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Speaker 1: is to start building an investment portfolio outside of super. Now,

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Speaker 1: I'm actually going to park idea number four today because

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Speaker 1: I feel like the first three are probably the most

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Speaker 1: important and relevant ones to you right now. So let's

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Speaker 1: break down all the pros and cons for each one

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Speaker 1: of them. So, the first option you mentioned is saving

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Speaker 1: up this money, So any extra money that you have

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Speaker 1: putting aside, and with the idea of putting it aside

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Speaker 1: in to say, an online savings account where it can

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Speaker 1: earn some interest and help build up that money so

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Speaker 1: that when it comes to that five year term and

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Speaker 1: you need to pay that money back to your dad,

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Speaker 1: you've hopefully got a decent amount saved that you can

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Speaker 1: transfer to him, and hopefully you take out a much

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Speaker 1: smaller mortgage because I know you've mentioned taking out a

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Speaker 1: mortgage of two hundred and fifty thousand five years. Ideally

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Speaker 1: as you're approaching retirement, it's not great. Sometimes it's unavoidable,

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Speaker 1: but ideally, from a financial planning point of view, you

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Speaker 1: don't want to enter retirement or approaching retirement still with

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Speaker 1: a mortgage around your neck. So this idea would be,

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Speaker 1: you know, having ideally like a separate savings account, putting

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Speaker 1: money into it on a regular basis, and even if

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Speaker 1: you can save say ten thousand dollars per year over

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Speaker 1: the next five years, it means that you're not going

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Speaker 1: to be taking out a two hundred and fifty thousand

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Speaker 1: dollars home loan to pay back your dad. You're taking

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Speaker 1: out a two hundred thousand dollars home because you've saved

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Speaker 1: fifty thousand and you'll need to borrow fifty And of

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Speaker 1: course you know this avoids you know, going into retirement

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Speaker 1: with a mortgage is a big difference between a two

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Speaker 1: hundred and fifty thousand dollars mortgage versus a two hundred

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Speaker 1: thousand dollars mortgage. Also means that being a smaller mortgage,

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Speaker 1: it's much easier to pay that mortgage off, and it

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Speaker 1: also means that you're going to have, you know, a

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Speaker 1: smaller gap when it comes to retirement with your mortgage. Now,

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Speaker 1: I should also point out the true cost of a

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Speaker 1: mortgage is expensive. No one really talks about this, but

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Speaker 1: a ransom rough numbers for you and a two hundred

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Speaker 1: and fifty thousand dollars mortgage, it's an average interest rate

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Speaker 1: of six percent over twenty years, is actually going to

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Speaker 1: cost you one hundred and eighty three thousand dollars in

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Speaker 1: interest over that period of time. However, a two hundred

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Speaker 1: thousand dollars mortgage using the same numbers is actually going

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Speaker 1: to cost you one hundred and forty seven thousand dollars

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Speaker 1: in interest. So this gives you a really good perspective

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Speaker 1: as to the true cost of a mortgage and really

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Speaker 1: helps motivate you to try and have the smallest mortgage

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Speaker 1: as possible. So yes, you are right. Putting your savings

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Speaker 1: aside into a separate savings account, ideally an online savings

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Speaker 1: accoun where can get some interest or decent interest is

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Speaker 1: going to obviously add an important element to your long

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Speaker 1: term financial security. And I should point out but when

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Speaker 1: you have, you know, a savings account. Obviously you've got

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Speaker 1: that to you know, something goes wrong and you don't

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Speaker 1: have enough emergency money to to rely on. Now, the

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Speaker 1: downside of this is is the opportunity cost. Because you're

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Speaker 1: putting all your money into the savings account in lieu

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Speaker 1: of the upcoming new mortgage, it means that you are

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Speaker 1: not going to have as much money in super, which

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Speaker 1: may mean that you have to delace your retirement or

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Speaker 1: work hard or be you know, even more strict perhaps

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Speaker 1: with your budget. It also means that you know, there's

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Speaker 1: the opportunity cost that the money isn't actually invested. It's

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Speaker 1: sitting in an online savings account, whereas if the money

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Speaker 1: was in super, as you know, it's properly invested. Also,

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Speaker 1: I should point out, from the psychological point of view,

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Speaker 1: it's not as exciting, you know, paying down debt when

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Speaker 1: it comes to investing. And there are also a different

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Speaker 1: tax situation between savings because that savings, the interest you

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Speaker 1: own your savings is taxable, whereas the money that you

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Speaker 1: earn from that money being in your superannuation is still taxable,

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Speaker 1: but it's taxed at a much lower rate. And the

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Speaker 1: tax payable comes out of your super not out of

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Speaker 1: your direct pocket. There's also you know, the downside of

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Speaker 1: having a separate savings account to save up this money

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Speaker 1: is there's temptation still there. Could you know, one day

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Speaker 1: wake up and decide to go and blow it on

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Speaker 1: a fabulous, luxurious holiday. You know that's going to be

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Speaker 1: That is a realistic temptation for some people. And there

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Speaker 1: also is the risk, and this is the biggest one

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Speaker 1: of all, which you can clearly see I can tell

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Speaker 1: from your message to me, is you may not actually

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Speaker 1: have enough to be able to retire on and that

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Speaker 1: could also create a lot of stress knowing that and

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Speaker 1: me leaving new panicking today. However, of course, there are

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Speaker 1: lots of things you can do to try and avoid

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Speaker 1: that by getting good quality advice. So this is obviously

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Speaker 1: very top line. There are a lot more things to consider,

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Speaker 1: and I could probably sit and talk to you for

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Speaker 1: about five hours about this, but we'll try and keep

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Speaker 1: this episode under about twenty two minutes if possible. So

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Speaker 1: that's the pros and cons of building up some savings

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Speaker 1: in lieu of paying your dad back. The second option,

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Speaker 1: as you mentioned, is where you put more money into superannuation. Now,

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Speaker 1: I want to say this, A lot of people assume

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Speaker 1: that the superannuation is taken care of through their employer

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Speaker 1: contributions and they don't need to worry about doing anything

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Speaker 1: else because you know, their employers paying about to be

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Speaker 1: twelve percent per annum in SG contributions. However, the cold

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Speaker 1: hard reality is for most of us, superannuation is not

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Speaker 1: going to be enough for us to be able to

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Speaker 1: retire on the lifestyle that we desire. So I want

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Speaker 1: to take a moment to commend you for actually being

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Speaker 1: so aware of this and actually taking action priority from

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Speaker 1: what it looks like salary sacrificing up to fifteen percent

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Speaker 1: per adom So that is actually amazing. Good on you

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Speaker 1: keep going. That's brilliant. And obviously the more money we

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Speaker 1: have in superannuation, that more and comfortable and secure and

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Speaker 1: harmonious our retirement is going to be. Of course, we

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Speaker 1: when we pay attention to our super we make sure

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Speaker 1: it's properly invested. You know, we have those wonderful compounding

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Speaker 1: effects working over the long run. As I said, your

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Speaker 1: superannuation is not a savings account. It is an investment

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Speaker 1: where your money is working. Few there's also the wonderful

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Speaker 1: tax benefits which I touched on a second ago with superannuation,

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Speaker 1: where there's a fifteen percent you know, tax rate on

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Speaker 1: the income and between ten to fifteen on capitol gain

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Speaker 1: depending on how long you've held the assets, and if

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Speaker 1: your superannuation is in Australian industrial shares, you might be

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Speaker 1: able to access those really sexy franking credits that can

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Speaker 1: pretty much wipe out that some of the tax for you.

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Speaker 1: And you know, the more money you have in super

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Speaker 1: the earlier the better, because that compounding interest is just

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Speaker 1: absolutely phenomenal and powerful in creating that financial independence for yourself. Now,

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Speaker 1: the downside of having more money into superannuation is that money,

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Speaker 1: as we all know, it's stuck. We cannot access it

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Speaker 1: until we meet a condition of release, which for most

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Speaker 1: of us is going to be around about age sixty.

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Speaker 1: And of course, you know, yes, the laws and the

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Speaker 1: regulations could definitely change. The other downside is you could

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Speaker 1: be facing retirement still with a mortgage, you know, a

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Speaker 1: two hundred and fifty thousand dollars mortgage potentially, or you know,

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Speaker 1: hopefully you've made some inroads before you retire. But as

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Speaker 1: I said, it's not ideal. It's always to be avoided

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Speaker 1: retiring with a mortgage. The other at risk is that

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Speaker 1: the investments, that is, the investments within your ner superannuation

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Speaker 1: perform badly. They don't reach your expectations. You get invested,

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Speaker 1: it's not probably diversified, or it's you know, even it's

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Speaker 1: perhaps invested too conservatively. This is why you need a

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Speaker 1: really good financial puner, because they'll obviously help reduce those

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Speaker 1: risks as much as they possibly can. As I said,

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Speaker 1: the rules may change, you know, the level of contributions

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Speaker 1: may change, they may decrease the caps. You can't actually

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Speaker 1: salar your sacrifice as much as the fifteen percent that

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Speaker 1: you mentioned, and I don't know what your income is,

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Speaker 1: so I can't actually give you any sort of general

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Speaker 1: advice around that. And of course they may reduce the

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Speaker 1: or change the rules when it comes to accessing are super.

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Speaker 1: I don't see this as being a real risk, and

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Speaker 1: I definitely don't see this as being a real risk

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Speaker 1: in the next five ten years, but it definitely is there.

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Speaker 1: We've seen these rules change, so you need to be

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Speaker 1: aware of it. And obviously they hopefully they do ever

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Speaker 1: change these rules. It's for everyone's benefit. And of course

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Speaker 1: you know you may even you may actually have, you know,

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Speaker 1: the raally realistic situation where you put more money into Super,

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Speaker 1: but it's will not necessarily enough to give you the

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Speaker 1: life that you want, so you're not adequately prepared. And

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Speaker 1: again this is where a financial planner is going to

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Speaker 1: help you so much. So there you have the pros

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Speaker 1: and cons for putting more money towards savings and the

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Speaker 1: potential mortgage versus putting more money to Super. Now, what

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Speaker 1: about that idea that I mentioned about doing a mix

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Speaker 1: of the both. Again, this is not personal advice at all,

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Speaker 1: but I'm just giving you food for thought, things to

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Speaker 1: think about and consider, so that when you see that

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Speaker 1: financial planner, you know exactly what they're talking about and

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Speaker 1: you can have a really productive, powerful conversation about what

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Speaker 1: is right for you and you can get started. So

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Speaker 1: having a blend of the two where you'll perhaps have

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Speaker 1: a regular savings plan in lieu of paying back your dad,

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Speaker 1: but you also have maybe some additional salary sacrificing up

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Speaker 1: to the maximum cap which is per financial year, or

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Speaker 1: even an after tax contribution to Super. Doing the best

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Speaker 1: of both worlds, this could potentially be a really nice

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Speaker 1: flexible strategy for you and even you know small contributions

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Speaker 1: into superannuation can be really powerful. Another idea, and this

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Speaker 1: is what happens when you have a meeting with the

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Speaker 1: financial plan as you start sort of turning over all

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Speaker 1: these stones that you may have not even considered before.

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Speaker 1: What happens if you think, okay, well, I'm going to

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Speaker 1: look at getting a pay rise, so I'm going to

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Speaker 1: get a promotion, or I'm actually going to go and

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Speaker 1: apply for a new job, so I'm probably going to

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Speaker 1: look at maybe getting a bit of a pay rise,

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Speaker 1: change in my salary or a change in my package.

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Speaker 1: This could be your opportunity where you go, you know what,

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Speaker 1: I can now actually afford to do a bit more

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Speaker 1: into super, or I can actually afford to put a

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Speaker 1: bit more into those savings account to pay back my dad.

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Speaker 1: These are the conversations that we need to start thinking

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Speaker 1: about and having under the guidance of a licensed financial planner.

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Speaker 1: But also you may discover that you're entitled to some

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Speaker 1: other sort of special loopholes like the catch up contribution,

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Speaker 1: or you perhaps make qualify for something like the downside

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00:20:44,480 --> 00:20:46,760
Speaker 1: of contribution where you can put more money into superannuation.

436
00:20:46,920 --> 00:20:48,600
Speaker 1: When you approach your time or you're retired and you

437
00:20:48,840 --> 00:20:50,199
Speaker 1: still like, Okay, you know what, I don't need a

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00:20:50,200 --> 00:20:52,400
Speaker 1: big house like this. I'm happy maybe in an apartment

439
00:20:52,480 --> 00:20:54,800
Speaker 1: or a townhouse. I can afford to downsize, which is

440
00:20:54,800 --> 00:20:56,760
Speaker 1: going to free up more money my mortgage out and

441
00:20:56,760 --> 00:20:58,800
Speaker 1: actually leave a one hundred or two hundred thousand dollars

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00:20:58,840 --> 00:21:01,240
Speaker 1: it can go into super Also, maybe actually entitled to

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00:21:01,240 --> 00:21:03,520
Speaker 1: the age pension. These are all things that I don't

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00:21:03,520 --> 00:21:06,080
Speaker 1: have access to because I obviously have limited information by

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00:21:06,119 --> 00:21:08,080
Speaker 1: what you provide. But these are the conversations you need

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00:21:08,119 --> 00:21:09,479
Speaker 1: to be having and things that you need to be

447
00:21:09,600 --> 00:21:13,040
Speaker 1: learning about and understanding and getting guidance from a financial planner.

448
00:21:13,240 --> 00:21:15,720
Speaker 1: But what I would strongly recommend you do is get

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00:21:15,720 --> 00:21:19,160
Speaker 1: a clearer idea as to what you want. Ask yourself

450
00:21:19,200 --> 00:21:22,400
Speaker 1: these questions, what would make you feel secure, what would

451
00:21:22,400 --> 00:21:25,880
Speaker 1: make you feel financially safe? What would add financial harmony

452
00:21:25,880 --> 00:21:29,080
Speaker 1: in your life? Think about what your value system is,

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00:21:29,480 --> 00:21:32,480
Speaker 1: you know, honoring your father, having a sense of stability

454
00:21:32,520 --> 00:21:35,440
Speaker 1: in your life, being financially independent. Make sure that all

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00:21:35,440 --> 00:21:37,680
Speaker 1: the decisions you make and all the actions you take

456
00:21:37,760 --> 00:21:40,440
Speaker 1: are in alignment to your values. Investing time to answer

457
00:21:40,440 --> 00:21:43,440
Speaker 1: to these questions is going to help you immensely. Now,

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00:21:43,680 --> 00:21:46,280
Speaker 1: I will point out I haven't obviously given you exact

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00:21:46,320 --> 00:21:48,960
Speaker 1: instructions as to what to do, because the truth is

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00:21:49,040 --> 00:21:52,560
Speaker 1: this is a really difficult decision. And the answer is

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00:21:52,600 --> 00:21:55,760
Speaker 1: that there is no one size fits all. Everyone is

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00:21:55,800 --> 00:21:59,240
Speaker 1: in a different situation, with different values, different needs, different goals,

463
00:21:59,280 --> 00:22:04,399
Speaker 1: different risks, different fears. Even However, answering these questions, getting

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00:22:04,400 --> 00:22:06,800
Speaker 1: crystal clear about what you want. When do you want

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00:22:06,800 --> 00:22:09,200
Speaker 1: to retire? How much income do you need? How long

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00:22:09,240 --> 00:22:10,760
Speaker 1: do you need it to last? Do you want to

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00:22:10,800 --> 00:22:12,520
Speaker 1: leave money in your estate? Are there going to be

468
00:22:12,600 --> 00:22:15,000
Speaker 1: lumps on withdrawals along the way? That's going to allow

469
00:22:15,000 --> 00:22:17,680
Speaker 1: you to work out exactly how much money you need.

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00:22:18,400 --> 00:22:21,360
Speaker 1: Then we can work backwards from that. And I can't

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00:22:21,400 --> 00:22:23,960
Speaker 1: stress enough. You have got to go and see a

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00:22:24,000 --> 00:22:27,960
Speaker 1: financial planner. You've got to see them as soon as possible,

473
00:22:28,000 --> 00:22:32,280
Speaker 1: because they are going to run some really detailed projections

474
00:22:32,320 --> 00:22:35,040
Speaker 1: for you. You are going to see the gap if

475
00:22:35,040 --> 00:22:39,640
Speaker 1: there is even a gap, and actually brainstorm so many

476
00:22:39,640 --> 00:22:44,320
Speaker 1: different ideas that will help you reduce that gap if

477
00:22:44,320 --> 00:22:47,480
Speaker 1: it actually exists, or to actually pay back your father

478
00:22:47,640 --> 00:22:51,320
Speaker 1: sooner or to perhaps get more money into Superanoation, perhaps

479
00:22:51,320 --> 00:22:53,600
Speaker 1: even maybe to start investing, because you're actually going to

480
00:22:53,600 --> 00:22:54,960
Speaker 1: be able to pay back your dad and you're going

481
00:22:55,000 --> 00:22:56,399
Speaker 1: to be able to have enough money to super and

482
00:22:56,400 --> 00:22:59,920
Speaker 1: you're grtually have that option should you choose to start investing.

483
00:23:00,119 --> 00:23:03,840
Speaker 1: They are going to give you much more detailed projections, numbers,

484
00:23:04,040 --> 00:23:06,160
Speaker 1: and of course they're going to give you a concrete

485
00:23:06,200 --> 00:23:09,280
Speaker 1: strategy do you can use to get started, and they

486
00:23:09,280 --> 00:23:11,959
Speaker 1: will hold your hand all the way through and make

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00:23:12,000 --> 00:23:16,479
Speaker 1: those necessary tweaks and changes as your situation evolves. But

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00:23:16,600 --> 00:23:20,520
Speaker 1: promise me this, either way, you get started now by

489
00:23:20,600 --> 00:23:24,520
Speaker 1: understanding what is most important to you and what will

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00:23:24,520 --> 00:23:30,040
Speaker 1: make you feel safe, secure and financially independent. Investing in

491
00:23:30,080 --> 00:23:34,160
Speaker 1: a financial plan is what you need to do right now. However,

492
00:23:34,160 --> 00:23:36,320
Speaker 1: this information is going to make sure that you turn

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00:23:36,400 --> 00:23:40,120
Speaker 1: up that financial planner's office ready to launch. All right, everyone,

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00:23:40,200 --> 00:23:42,679
Speaker 1: thank you so much for listening today's episode. It's been

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00:23:42,720 --> 00:23:45,040
Speaker 1: an absolute honor to be able to answer this question

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Speaker 1: for Amanda. Of course, a quick reminder, please leave me

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00:23:48,320 --> 00:23:51,720
Speaker 1: a rating and review. I would greatly appreciate it, and

498
00:23:51,960 --> 00:23:55,199
Speaker 1: please feel free to send me your questions as to

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00:23:55,320 --> 00:23:58,520
Speaker 1: how to get started for start here. This is Sugar

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Speaker 1: Mamma's fire playing sh