1
00:00:10,760 --> 00:00:13,840
Speaker 1: Hello, and welcome to the Australians Money Puzzle podcast. I'm

2
00:00:13,920 --> 00:00:17,119
Speaker 1: James Kirby. Welcome aboard everybody, and welcome aboard to a

3
00:00:17,200 --> 00:00:20,880
Speaker 1: special edition of this podcast because it's a pretty special

4
00:00:20,960 --> 00:00:24,520
Speaker 1: day here at The Australian. We are launching a Wealth

5
00:00:24,920 --> 00:00:28,360
Speaker 1: Vertical now. A Wealth Vertical is a digital unit within

6
00:00:28,400 --> 00:00:31,600
Speaker 1: The Australian and it's going to be all about wealth

7
00:00:31,720 --> 00:00:34,400
Speaker 1: in all its dimensions. And many of the people that

8
00:00:34,479 --> 00:00:39,080
Speaker 1: you know and are familiar with from the podcasting myself

9
00:00:39,159 --> 00:00:42,040
Speaker 1: and James Gerard, of course Stuart Williams. You here on

10
00:00:42,120 --> 00:00:46,000
Speaker 1: Tuesday's Property podcast. You're going to see and read a

11
00:00:46,000 --> 00:00:49,720
Speaker 1: lot more from them in The Australian, and you're going

12
00:00:49,760 --> 00:00:52,360
Speaker 1: to hear a lot more from them in the podcast

13
00:00:52,440 --> 00:00:58,840
Speaker 1: because we are widening the offering basically substantially, so seizing

14
00:00:58,960 --> 00:01:02,520
Speaker 1: the opportunity to I've asked the Wealth editor of The Australian,

15
00:01:02,760 --> 00:01:05,240
Speaker 1: Julianne Spragged, to come on the show. She's going to

16
00:01:05,280 --> 00:01:09,840
Speaker 1: tell us about what's happening. And then when she's done that,

17
00:01:09,880 --> 00:01:12,039
Speaker 1: we're going to do something we haven't tried before. We're

18
00:01:12,040 --> 00:01:15,039
Speaker 1: actually going to talk about our own investing because both

19
00:01:15,040 --> 00:01:18,399
Speaker 1: of us have been in financial journalism most of our

20
00:01:18,440 --> 00:01:22,240
Speaker 1: lives and we have I hope, learned some very interesting

21
00:01:22,319 --> 00:01:24,240
Speaker 1: things that we do want to tell you about.

22
00:01:24,440 --> 00:01:27,720
Speaker 2: Hi Julianne, Hi James, thanks for having me on.

23
00:01:27,800 --> 00:01:30,520
Speaker 3: Greater Have You on Marshafield has going to be Confession's

24
00:01:30,560 --> 00:01:32,480
Speaker 3: going to be a confession session.

25
00:01:34,760 --> 00:01:39,000
Speaker 1: Well partially confession and hopefully occasionally a part of celebration.

26
00:01:39,400 --> 00:01:43,080
Speaker 1: Tell us first, what's happening with Wealth on the Australian

27
00:01:43,160 --> 00:01:48,720
Speaker 1: and how our offering in all its multi media wonderfulness

28
00:01:48,880 --> 00:01:49,640
Speaker 1: is going to change.

29
00:01:50,920 --> 00:01:52,000
Speaker 2: It is exciting.

30
00:01:52,240 --> 00:01:55,280
Speaker 3: We had some research that came through said lots of

31
00:01:55,280 --> 00:01:58,120
Speaker 3: people want to be financially independent. People want to be

32
00:01:58,200 --> 00:02:02,160
Speaker 3: able to have this job because they want to have

33
00:02:02,200 --> 00:02:04,040
Speaker 3: a job for it to be a joy and not

34
00:02:04,080 --> 00:02:07,520
Speaker 3: a chore. And the concern though, is that a lot

35
00:02:07,560 --> 00:02:10,760
Speaker 3: of people aren't as financially literally as they want to be.

36
00:02:10,880 --> 00:02:13,240
Speaker 3: They don't know where to go to get a lot

37
00:02:13,240 --> 00:02:15,840
Speaker 3: of this information. They might see their mates or their

38
00:02:15,840 --> 00:02:18,400
Speaker 3: friends and they're getting ahead, or they've got investment portfolios

39
00:02:18,440 --> 00:02:20,240
Speaker 3: and things. I don't know the how, the why, the what,

40
00:02:20,880 --> 00:02:22,840
Speaker 3: and so what we want to do is create this

41
00:02:22,919 --> 00:02:26,840
Speaker 3: one stop hub, a place where you can get trusted information.

42
00:02:27,480 --> 00:02:29,959
Speaker 3: So that's no matter what stage of the financial journey

43
00:02:30,080 --> 00:02:35,000
Speaker 3: you are on. So there'll be information about investing, property, investing, superannuation,

44
00:02:35,480 --> 00:02:39,680
Speaker 3: retirement planning, all those bits about that are very important

45
00:02:39,720 --> 00:02:41,919
Speaker 3: for your life. But I don't know about you, James,

46
00:02:41,919 --> 00:02:43,280
Speaker 3: but you just get caught up, don't you.

47
00:02:43,919 --> 00:02:48,600
Speaker 1: Yeah, you do. And we've always had a lot of

48
00:02:48,720 --> 00:02:51,639
Speaker 1: material and there's always like there's always been a good

49
00:02:51,680 --> 00:02:54,200
Speaker 1: materia coming in different ways in different parts is such

50
00:02:54,200 --> 00:02:56,440
Speaker 1: a big operation. And then we have podcasts, and then

51
00:02:56,480 --> 00:03:00,680
Speaker 1: we have like Baron's Top Advisors, we have videos and

52
00:03:01,760 --> 00:03:03,800
Speaker 1: we haven't put them all in the one place before,

53
00:03:04,000 --> 00:03:06,359
Speaker 1: so I think that's part of it. So I do

54
00:03:06,400 --> 00:03:08,800
Speaker 1: I recommend all the listeners have a look at this.

55
00:03:08,880 --> 00:03:12,000
Speaker 1: It's launching today and I don't think there's ever been

56
00:03:12,040 --> 00:03:14,720
Speaker 1: anything quite like it in media.

57
00:03:15,240 --> 00:03:18,040
Speaker 3: Can I just say true for your listeners who love

58
00:03:18,120 --> 00:03:20,320
Speaker 3: to listen to you. Twice Withightly on the Money Puzzle,

59
00:03:20,760 --> 00:03:23,280
Speaker 3: we have put together a video series so that one

60
00:03:23,600 --> 00:03:26,360
Speaker 3: to see James Kirby in real life.

61
00:03:26,560 --> 00:03:29,680
Speaker 1: We did it on before we started the show. We

62
00:03:29,680 --> 00:03:32,080
Speaker 1: were just laughing. The day we did it was the

63
00:03:32,120 --> 00:03:36,480
Speaker 1: worst day I can ever remember. Weather wise, I should say,

64
00:03:36,600 --> 00:03:38,760
Speaker 1: but we all flew in to do this video, folks,

65
00:03:38,800 --> 00:03:42,480
Speaker 1: and it was just so bad. It was unreal, and

66
00:03:42,760 --> 00:03:44,960
Speaker 1: we were all late, and all the flights, the two

67
00:03:44,960 --> 00:03:47,320
Speaker 1: flights before me were canceled on the two after. I mean,

68
00:03:47,320 --> 00:03:49,840
Speaker 1: it was a miracle that I got actually to that

69
00:03:49,880 --> 00:03:53,480
Speaker 1: session at all. But the videos will be on this site,

70
00:03:53,560 --> 00:03:57,240
Speaker 1: and we've done a whole series of masterclass videos which

71
00:03:57,280 --> 00:03:59,720
Speaker 1: capture some of the sort of core areas of in

72
00:04:00,800 --> 00:04:03,840
Speaker 1: and I recommend them to you. They will be distributed,

73
00:04:03,880 --> 00:04:05,880
Speaker 1: or at least they'll be published. To see the sequential

74
00:04:05,920 --> 00:04:07,640
Speaker 1: fashion in the days of head So look out for

75
00:04:07,680 --> 00:04:10,480
Speaker 1: that now, Juliane, since I've got you in the hot seat,

76
00:04:10,760 --> 00:04:14,040
Speaker 1: let's do this. I've been awfully careful on this show over.

77
00:04:14,240 --> 00:04:16,040
Speaker 1: I mean, we launched a show in twenty twenty three,

78
00:04:16,360 --> 00:04:20,120
Speaker 1: and I only kind of respond when we have listener questions.

79
00:04:20,160 --> 00:04:22,800
Speaker 1: I respond, So if someone says, do you have shares

80
00:04:22,920 --> 00:04:26,160
Speaker 1: in something? I'll answer. But I've never really expounded upon

81
00:04:26,279 --> 00:04:29,760
Speaker 1: my portfolio on air before. I'm happy to do it

82
00:04:29,800 --> 00:04:32,240
Speaker 1: on this show. We split it into shares here in

83
00:04:32,240 --> 00:04:34,920
Speaker 1: the first segment, and then we might talk about property,

84
00:04:35,440 --> 00:04:39,880
Speaker 1: and then we might talk about super which shares. It's

85
00:04:39,920 --> 00:04:43,240
Speaker 1: interesting Eric Johnson and I were just talking in the

86
00:04:43,279 --> 00:04:46,840
Speaker 1: office today. Eric's course associated her business. He was talking

87
00:04:46,960 --> 00:04:51,200
Speaker 1: about it's the Compseck was launched thirty years ago this

88
00:04:51,279 --> 00:04:53,599
Speaker 1: week and he'd been talking to the guy who launched

89
00:04:53,640 --> 00:04:57,680
Speaker 1: at Michael Katz and it was extraordinary about Compsack and

90
00:04:57,960 --> 00:05:01,120
Speaker 1: nap Trade and the other online brokers. When they came in,

91
00:05:01,160 --> 00:05:03,520
Speaker 1: they changed everything. Because I don't know when you bought

92
00:05:03,520 --> 00:05:06,520
Speaker 1: your first shares, but the day I bought shares the

93
00:05:06,560 --> 00:05:11,080
Speaker 1: first time, I bought two shares five hundred dollars to

94
00:05:11,200 --> 00:05:15,880
Speaker 1: each one Pacific Dunlop and National Australia Bank, and I

95
00:05:15,920 --> 00:05:18,200
Speaker 1: had to go in. I was twenty five. I had

96
00:05:18,200 --> 00:05:20,880
Speaker 1: to go in and sit in the reception of Potter

97
00:05:21,000 --> 00:05:26,360
Speaker 1: Warburg in Collin Street, and some unfortunate stockbroker came out

98
00:05:26,400 --> 00:05:29,080
Speaker 1: and talked to me about what I was doing. And

99
00:05:29,120 --> 00:05:31,640
Speaker 1: the diversification of my portfolio was that I bought two

100
00:05:31,640 --> 00:05:35,880
Speaker 1: shares rather than one, and one was terrific National Australia Bank.

101
00:05:35,880 --> 00:05:39,760
Speaker 1: It doubled in price and the other one went almost

102
00:05:39,760 --> 00:05:43,280
Speaker 1: to nothing. So it was a very good early adventure

103
00:05:43,400 --> 00:05:47,600
Speaker 1: in shared trading. Can you remember your first shares.

104
00:05:48,400 --> 00:05:52,719
Speaker 3: I can remember the first discussion about shares. It was

105
00:05:52,800 --> 00:05:57,560
Speaker 3: my dad and I think I was eighteen or nineteen

106
00:05:57,640 --> 00:06:02,120
Speaker 3: at the time, so of an age where shares had

107
00:06:02,400 --> 00:06:08,000
Speaker 3: little value to me. You know, it was it was

108
00:06:08,640 --> 00:06:11,320
Speaker 3: you know, it was a time where you're studying university

109
00:06:11,400 --> 00:06:15,120
Speaker 3: and out at the pub and it was I'm trying

110
00:06:15,160 --> 00:06:18,880
Speaker 3: to remember which iteration it was, but it was Telstra. Oh, yes,

111
00:06:19,040 --> 00:06:20,480
Speaker 3: Now I don't know if yeah, I don't know if

112
00:06:20,480 --> 00:06:21,479
Speaker 3: it's T two or T three.

113
00:06:21,760 --> 00:06:22,960
Speaker 1: Yeah, one of the floats.

114
00:06:24,120 --> 00:06:25,160
Speaker 2: It was one of the floats.

115
00:06:25,400 --> 00:06:27,880
Speaker 3: And Dad was saying to me, you've got to get in,

116
00:06:27,920 --> 00:06:29,800
Speaker 3: You've got to get these shares. And I said, well,

117
00:06:29,800 --> 00:06:32,000
Speaker 3: how much do I have to spend? And he said

118
00:06:32,480 --> 00:06:35,560
Speaker 3: two thousand dollars and I just I can still remember

119
00:06:35,880 --> 00:06:36,600
Speaker 3: just saying.

120
00:06:36,360 --> 00:06:38,120
Speaker 2: To him, you are crazy.

121
00:06:38,279 --> 00:06:40,800
Speaker 3: That is a lot of money and I'm not going

122
00:06:40,839 --> 00:06:42,960
Speaker 3: to be doing that. I look back and think, well,

123
00:06:43,000 --> 00:06:44,760
Speaker 3: just as well, that was Telstra. Imagine if he was

124
00:06:44,760 --> 00:06:47,120
Speaker 3: recommending CBA or something to me. I wish that I

125
00:06:47,120 --> 00:06:49,600
Speaker 3: had spent the two thousand dollars on CBA back then.

126
00:06:50,160 --> 00:06:52,200
Speaker 3: So I didn't buy shares. I came to it later.

127
00:06:52,279 --> 00:06:53,920
Speaker 3: I remember one of the first shares.

128
00:06:53,839 --> 00:06:56,440
Speaker 2: We ever bought. My husband and I it was.

129
00:06:57,920 --> 00:07:00,200
Speaker 3: And we'll get to property soon, but we were Actually

130
00:07:00,240 --> 00:07:02,520
Speaker 3: it was sort of boom times in Perth. It was

131
00:07:02,520 --> 00:07:05,240
Speaker 3: to two thousand and six, two thousand and seven around.

132
00:07:04,920 --> 00:07:06,000
Speaker 1: Them, the mining boom.

133
00:07:06,240 --> 00:07:09,240
Speaker 3: Mining boom was in peak property prices. It felt like

134
00:07:09,279 --> 00:07:11,440
Speaker 3: they were doubling every few weeks. They weren't, but that's

135
00:07:11,480 --> 00:07:13,000
Speaker 3: what it felt like when you were here. We were

136
00:07:13,000 --> 00:07:15,640
Speaker 3: trying to get our first place, and so we were

137
00:07:15,880 --> 00:07:18,760
Speaker 3: at a housing estate. It was roughly about thirty kilometers

138
00:07:18,840 --> 00:07:21,960
Speaker 3: north of Perth, and you had to camp out to

139
00:07:22,000 --> 00:07:26,480
Speaker 3: get the land. Wow, it was seven nights in the back.

140
00:07:26,280 --> 00:07:27,000
Speaker 2: Of a ute.

141
00:07:27,120 --> 00:07:31,880
Speaker 1: Wow like plots, I know, Yeah, that's like a story

142
00:07:31,880 --> 00:07:32,640
Speaker 1: from the gold Rush.

143
00:07:34,120 --> 00:07:36,040
Speaker 2: One hundred percent. It was one hundred percent. And I

144
00:07:36,080 --> 00:07:36,720
Speaker 2: just remember seeing that.

145
00:07:36,880 --> 00:07:39,880
Speaker 3: The property developer of the estate that we were buying

146
00:07:39,920 --> 00:07:42,120
Speaker 3: in was Pete and I was seeing this and I

147
00:07:42,160 --> 00:07:44,800
Speaker 3: could just I was like, day, I'm making so much

148
00:07:44,840 --> 00:07:46,680
Speaker 3: money and I can't believe I have to be sleeping

149
00:07:46,680 --> 00:07:48,960
Speaker 3: in the back of a You ticket land, we should

150
00:07:49,000 --> 00:07:52,120
Speaker 3: buy shares, and so we did buy shares in the developer.

151
00:07:52,200 --> 00:07:54,360
Speaker 3: I look back on that now and think that's probably not.

152
00:07:54,320 --> 00:07:56,360
Speaker 2: The smartest thing to do. I was probably doubling down.

153
00:07:56,240 --> 00:07:56,840
Speaker 3: On the investment.

154
00:07:56,840 --> 00:07:58,840
Speaker 2: We bought the land and he bought the developer.

155
00:07:58,840 --> 00:08:01,360
Speaker 1: I probably should have for people to do that, though.

156
00:08:01,400 --> 00:08:04,640
Speaker 1: They gravitate towards what they understand. If the factory at

157
00:08:04,640 --> 00:08:06,680
Speaker 1: the corner over your street seems to be going great,

158
00:08:06,760 --> 00:08:09,480
Speaker 1: and you realize it's on the stock exchange, then if

159
00:08:09,520 --> 00:08:12,440
Speaker 1: I don't you, it's like bottom up investing. I actually

160
00:08:12,520 --> 00:08:16,960
Speaker 1: had a marvelous example of bottom up investing. I was

161
00:08:17,000 --> 00:08:19,520
Speaker 1: involved in a startup which was called well Mid Clothes,

162
00:08:19,560 --> 00:08:22,200
Speaker 1: and it was an online clothing retailer. They had been

163
00:08:22,240 --> 00:08:26,120
Speaker 1: going for a while and they got in a widget

164
00:08:26,200 --> 00:08:30,200
Speaker 1: basically a piece of software called after pay, and they

165
00:08:30,240 --> 00:08:33,960
Speaker 1: put it on, they installed it or whatever one evening,

166
00:08:34,480 --> 00:08:37,920
Speaker 1: and the next morning they got all these orders that

167
00:08:37,960 --> 00:08:43,600
Speaker 1: they'd never got before. And I remember thinking, that's very interesting.

168
00:08:43,640 --> 00:08:45,880
Speaker 1: There's like hard evidence from the ground bottom up, if

169
00:08:45,880 --> 00:08:47,360
Speaker 1: you know what I mean. I knew the top down,

170
00:08:47,400 --> 00:08:49,400
Speaker 1: and I knew the story from top down, and we

171
00:08:49,440 --> 00:08:52,480
Speaker 1: all know that the view of the market or whatever,

172
00:08:52,640 --> 00:08:55,520
Speaker 1: you know, the big picture. But when I heard that,

173
00:08:55,640 --> 00:08:58,280
Speaker 1: I remember thinking, this is no joke. This after fably

174
00:08:58,360 --> 00:09:01,440
Speaker 1: is something and that was an example. I remember getting

175
00:09:01,480 --> 00:09:03,920
Speaker 1: into after Pay and it went really well and it

176
00:09:03,960 --> 00:09:05,760
Speaker 1: was a really good investment. And that was something that

177
00:09:05,880 --> 00:09:10,839
Speaker 1: came through almost like you know the street. But that

178
00:09:10,880 --> 00:09:12,880
Speaker 1: doesn't happen very often, can I.

179
00:09:12,880 --> 00:09:14,680
Speaker 2: Ask you though? And sorry, we're going to go down.

180
00:09:14,880 --> 00:09:16,160
Speaker 2: We'll go down different rabbit holes.

181
00:09:16,160 --> 00:09:18,800
Speaker 3: But say so, if you got on too after pay early, goodbye,

182
00:09:18,880 --> 00:09:22,319
Speaker 3: good tip by you. What happened then in the pandemic

183
00:09:22,720 --> 00:09:26,400
Speaker 3: after pay dropped, there was a it just dropped like

184
00:09:26,400 --> 00:09:28,959
Speaker 3: a star. I can't remember exactly what it went down to,

185
00:09:29,040 --> 00:09:31,040
Speaker 3: about eight dollars or something like that, that's right. And

186
00:09:31,120 --> 00:09:34,240
Speaker 3: I remember being pretty smug because I didn't buy after pay,

187
00:09:34,600 --> 00:09:37,160
Speaker 3: and I remember thinking, hah, I knew this was all

188
00:09:37,200 --> 00:09:38,920
Speaker 3: sort of smokes and mirrors and this is all going

189
00:09:38,960 --> 00:09:41,640
Speaker 3: to be cactus and toast. And then it just rebounded

190
00:09:41,840 --> 00:09:44,720
Speaker 3: nothing else because ye locked down and everyone started shopping.

191
00:09:44,840 --> 00:09:47,240
Speaker 3: That's right, you know, ended up at one hundred bucks

192
00:09:47,280 --> 00:09:47,680
Speaker 3: or something.

193
00:09:47,520 --> 00:09:51,480
Speaker 1: To it was magnificent, stark. That is a magnificent trade. Really,

194
00:09:51,559 --> 00:09:55,200
Speaker 1: I mean it was always wild and I didn't stay

195
00:09:55,280 --> 00:09:58,480
Speaker 1: till the end, you know, so you always leave something

196
00:09:58,520 --> 00:10:00,319
Speaker 1: out of the table. But was probably what are the

197
00:10:00,320 --> 00:10:02,720
Speaker 1: best stocks they ever bought from me? I probably got out.

198
00:10:02,760 --> 00:10:04,839
Speaker 1: I did get out too soon, but it was a

199
00:10:04,960 --> 00:10:06,880
Speaker 1: terrific stock. I did well, you did well.

200
00:10:06,920 --> 00:10:09,760
Speaker 3: I did well, So to your point, and maybe that's

201
00:10:09,760 --> 00:10:11,760
Speaker 3: the lessons here for people if they want to start

202
00:10:11,800 --> 00:10:14,840
Speaker 3: investing in stocks, is maybe it is smart to invest

203
00:10:14,880 --> 00:10:16,880
Speaker 3: in what you know or have a sense of what

204
00:10:16,920 --> 00:10:18,880
Speaker 3: the market is. So the one I did well on

205
00:10:19,800 --> 00:10:22,400
Speaker 3: was coals. So this was before West Farmers bought Coals,

206
00:10:22,880 --> 00:10:26,040
Speaker 3: and I remember going there Coals. I still have my

207
00:10:26,120 --> 00:10:29,800
Speaker 3: coal's name badge from my university job on the delicatessen.

208
00:10:30,280 --> 00:10:32,800
Speaker 3: No one will slice purtidos thinner than I can slice it.

209
00:10:32,880 --> 00:10:34,439
Speaker 1: Fel oh, very fantastic.

210
00:10:35,160 --> 00:10:37,439
Speaker 3: But it was went gym up so before West Farmers

211
00:10:37,679 --> 00:10:41,040
Speaker 3: had bought Coals. Obviously it's on its own ownership now,

212
00:10:41,080 --> 00:10:43,880
Speaker 3: but it was in the Doldrums. It wasn't a great supermarket,

213
00:10:43,920 --> 00:10:45,720
Speaker 3: and I can just remember thinking this is a duopoli,

214
00:10:45,760 --> 00:10:47,560
Speaker 3: that this there's not enough supermarkets in this country and

215
00:10:47,559 --> 00:10:49,520
Speaker 3: it's not going to be down in the Doldrums forever.

216
00:10:49,640 --> 00:10:52,320
Speaker 3: So I remember getting in early and the West Farmers

217
00:10:52,320 --> 00:10:53,800
Speaker 3: came in and then spruced her.

218
00:10:53,679 --> 00:10:56,760
Speaker 1: Up best farmers come in and paid an enormous amount

219
00:10:56,760 --> 00:11:00,560
Speaker 1: for it, right smack at that two hours before GFC.

220
00:11:01,040 --> 00:11:04,160
Speaker 1: So I think one of the things that's useful folks

221
00:11:04,240 --> 00:11:08,640
Speaker 1: about share investing is ideally if you can if you

222
00:11:08,640 --> 00:11:11,160
Speaker 1: do understand the stock, it helps enormously at least your

223
00:11:11,200 --> 00:11:14,440
Speaker 1: connection to it is better. Anyone can start and play.

224
00:11:14,440 --> 00:11:17,480
Speaker 1: Basically you can buy a stock or two stocks this.

225
00:11:17,880 --> 00:11:20,360
Speaker 1: You can always buy exchange traded funds as well, which

226
00:11:20,400 --> 00:11:22,680
Speaker 1: is what I generally meant. If someone says to me

227
00:11:22,720 --> 00:11:24,760
Speaker 1: what stocks should I buy and they don't know anything,

228
00:11:24,760 --> 00:11:27,800
Speaker 1: they've never done anything, I always say, buy an exchange

229
00:11:27,800 --> 00:11:29,280
Speaker 1: traded fund by the AX.

230
00:11:29,400 --> 00:11:31,640
Speaker 3: I'll ask you about that now, though, because I'm in

231
00:11:31,640 --> 00:11:33,200
Speaker 3: this basket where I think I need to do better

232
00:11:33,240 --> 00:11:34,800
Speaker 3: with my stocks.

233
00:11:35,000 --> 00:11:36,479
Speaker 2: You know, I've just sort of almost.

234
00:11:36,640 --> 00:11:40,280
Speaker 3: Played with them rather than proper investing anythink and ATF

235
00:11:40,400 --> 00:11:44,160
Speaker 3: the way to go. Atfs have exploded so much that

236
00:11:44,240 --> 00:11:48,000
Speaker 3: I now find them incredibly confusing. There's almost too many ETFs.

237
00:11:48,200 --> 00:11:49,160
Speaker 3: Which one are you're back?

238
00:11:49,880 --> 00:11:53,800
Speaker 1: Yeah, they've drifted from the original proposal. Absolutely. The original

239
00:11:53,880 --> 00:11:56,680
Speaker 1: proposal was really good, you know, it was by the market.

240
00:11:56,920 --> 00:11:58,960
Speaker 1: Just buy the ASX two hundred or buy the S

241
00:11:59,000 --> 00:12:02,040
Speaker 1: and P five hundred plus vanilla, and whatever happened to

242
00:12:02,080 --> 00:12:04,560
Speaker 1: that market happened to your ETF. So if you both

243
00:12:04,559 --> 00:12:07,480
Speaker 1: the ASX two hundred ETF a year ago, you'd have

244
00:12:07,559 --> 00:12:10,680
Speaker 1: made fourteen percent, because the ASX two hundred med fourteen

245
00:12:10,679 --> 00:12:14,200
Speaker 1: percent in the twelve months to June thirty, being you know,

246
00:12:14,400 --> 00:12:17,280
Speaker 1: ten percent plus four percent for your dividends. I think

247
00:12:17,320 --> 00:12:19,960
Speaker 1: that's still the dominant model. The problem is with these guys,

248
00:12:19,960 --> 00:12:24,319
Speaker 1: you know, Julianne, they can't sit down and leave good alone.

249
00:12:24,840 --> 00:12:27,079
Speaker 1: They got to keep coming up with things, right they

250
00:12:27,559 --> 00:12:29,760
Speaker 1: you know, there's seven hundred people in Vanguard. What did

251
00:12:29,800 --> 00:12:33,160
Speaker 1: they all do? Well? Guess what? They get new ideas

252
00:12:33,320 --> 00:12:36,520
Speaker 1: and they go into the boss and they say, hey, boss,

253
00:12:36,720 --> 00:12:38,839
Speaker 1: guess what, I've got something in mind that would be

254
00:12:38,920 --> 00:12:42,440
Speaker 1: really good. And so that ETF thing is drifting. So

255
00:12:42,480 --> 00:12:44,360
Speaker 1: I think when we talk about ETFs on the show,

256
00:12:44,440 --> 00:12:47,679
Speaker 1: certainly I always make the points plain vanilla ETFs, and

257
00:12:47,720 --> 00:12:50,080
Speaker 1: I would say to most people most of the time,

258
00:12:50,120 --> 00:12:53,360
Speaker 1: if you're starting with shares, ETFs are great. And if

259
00:12:53,360 --> 00:12:55,720
Speaker 1: they had been around when I was starting buying shares,

260
00:12:55,720 --> 00:12:58,400
Speaker 1: it would have been so much better than buying two shares,

261
00:12:58,720 --> 00:13:00,240
Speaker 1: one of which turned out to be great and one

262
00:13:00,280 --> 00:13:02,439
Speaker 1: of which turned out to be useless, and you don't

263
00:13:02,440 --> 00:13:04,000
Speaker 1: that's the sort of risks you don't want to take.

264
00:13:04,240 --> 00:13:05,599
Speaker 3: If you could go back in time, just pretend that

265
00:13:05,640 --> 00:13:07,880
Speaker 3: ETFs where they, you would have bought an index ATF

266
00:13:08,240 --> 00:13:08,600
Speaker 3: I would.

267
00:13:08,640 --> 00:13:11,720
Speaker 1: I would suggest to anyone starting get some ETFs, hold

268
00:13:11,760 --> 00:13:14,200
Speaker 1: them for a year, start to understand how it all works,

269
00:13:14,200 --> 00:13:16,640
Speaker 1: Watch how you get your dividends come through, and how

270
00:13:16,640 --> 00:13:18,680
Speaker 1: it works with tax and everything else, and get a

271
00:13:18,679 --> 00:13:21,280
Speaker 1: handle on it. And you've you know, you're taking very

272
00:13:21,320 --> 00:13:25,240
Speaker 1: little risk because you're just taking you're just buying the market.

273
00:13:25,280 --> 00:13:27,520
Speaker 1: And then after a while, when you're a bit more

274
00:13:27,559 --> 00:13:29,360
Speaker 1: sure of it, it doesn't have to take forever. It could

275
00:13:29,360 --> 00:13:32,080
Speaker 1: take six months, it could take a year. Then you

276
00:13:32,120 --> 00:13:36,320
Speaker 1: can start to strike out and you can say, okay,

277
00:13:36,360 --> 00:13:40,280
Speaker 1: this time, I'm going to buy direct shares because personally,

278
00:13:40,280 --> 00:13:43,680
Speaker 1: I think ten shares is about as much as anyone

279
00:13:43,679 --> 00:13:47,120
Speaker 1: should have. That's as much as you can hold in

280
00:13:47,160 --> 00:13:48,840
Speaker 1: your head. Really, I should be if you've got I

281
00:13:48,840 --> 00:13:50,920
Speaker 1: always say, if you've got chairs, I should be able

282
00:13:50,920 --> 00:13:53,480
Speaker 1: to ask you what are they and how much are

283
00:13:53,520 --> 00:13:56,920
Speaker 1: they today? And unless you're you know, got a photographic

284
00:13:56,960 --> 00:13:59,240
Speaker 1: memory or something. I reckon about ten shares is about

285
00:13:59,280 --> 00:14:02,040
Speaker 1: as much as the one should have, and it is enough.

286
00:14:02,120 --> 00:14:04,360
Speaker 1: It can really you can diversify. You can buy banks

287
00:14:04,360 --> 00:14:06,800
Speaker 1: and miners and tech companies and everything else. That's something

288
00:14:06,800 --> 00:14:08,400
Speaker 1: I would say. The other part I would say is

289
00:14:08,840 --> 00:14:11,720
Speaker 1: that at a certain point you've got to get serious

290
00:14:11,760 --> 00:14:14,240
Speaker 1: about shares if you're a long term investor, especially if

291
00:14:14,280 --> 00:14:16,680
Speaker 1: you're thinking of building your own portfolio or your self

292
00:14:16,720 --> 00:14:20,480
Speaker 1: managed super fund, and at that point then you don't

293
00:14:20,520 --> 00:14:22,240
Speaker 1: have to have a connection with them. It's all about

294
00:14:22,280 --> 00:14:24,760
Speaker 1: the numbers, you know, It's all about is this share

295
00:14:24,800 --> 00:14:27,320
Speaker 1: good value? At the moment it's the old Roger Montgomery

296
00:14:27,440 --> 00:14:30,280
Speaker 1: thing about value and Roger of courses. Another person's off

297
00:14:30,320 --> 00:14:32,040
Speaker 1: and on the show rights for the Australian will be

298
00:14:32,040 --> 00:14:34,680
Speaker 1: involved in our new vertical. He's whole thing that you know,

299
00:14:34,720 --> 00:14:37,840
Speaker 1: you're buying a piece of a company, you're buying a

300
00:14:37,880 --> 00:14:40,720
Speaker 1: little TV bit of the company. So what really matters

301
00:14:40,800 --> 00:14:43,000
Speaker 1: is their company and how is the company going.

302
00:14:44,720 --> 00:14:49,560
Speaker 3: My problem, I reckon is because we're in newsrooms and

303
00:14:49,560 --> 00:14:51,360
Speaker 3: we cover a lot of stories. We cover a lot

304
00:14:51,880 --> 00:14:56,120
Speaker 3: of stories about stocks that go absolutely bananas. They deliver

305
00:14:56,240 --> 00:14:59,800
Speaker 3: incredible returns. But for every one of those stories, we're

306
00:14:59,840 --> 00:15:02,520
Speaker 3: all doing stories or when things go wrong, yes, and

307
00:15:02,560 --> 00:15:05,320
Speaker 3: we should when he's a collapsing and share prices are tanking,

308
00:15:05,360 --> 00:15:07,320
Speaker 3: and so it does leave you sort of kind of

309
00:15:07,360 --> 00:15:09,560
Speaker 3: clinging to the sidelines because you don't know which way

310
00:15:09,600 --> 00:15:09,880
Speaker 3: to go.

311
00:15:10,800 --> 00:15:12,440
Speaker 2: You know too much, You almost know too much.

312
00:15:12,560 --> 00:15:14,520
Speaker 3: I have threatened to do it, and maybe for this

313
00:15:14,560 --> 00:15:19,200
Speaker 3: new vertical I should. I was going to create a

314
00:15:19,280 --> 00:15:23,320
Speaker 3: list of when I had met a billionaire or rich.

315
00:15:23,360 --> 00:15:23,680
Speaker 2: This does.

316
00:15:23,680 --> 00:15:26,800
Speaker 3: My former job was editing rich lists for the Financial Review,

317
00:15:27,680 --> 00:15:29,440
Speaker 3: and I look at some of the share price growth

318
00:15:29,440 --> 00:15:31,400
Speaker 3: and I think, if I had bought shares when I

319
00:15:31,440 --> 00:15:34,640
Speaker 3: met that rich list, yes, would I be in fact

320
00:15:34,720 --> 00:15:37,280
Speaker 3: talking to you on this podcast today at the book, James,

321
00:15:37,320 --> 00:15:39,320
Speaker 3: I'm not sure. I was with Andrew Forrest in the

322
00:15:39,320 --> 00:15:41,480
Speaker 3: Pilborough in two thousand and six having a look at

323
00:15:41,680 --> 00:15:44,320
Speaker 3: what would become four to Skew Metal screwp. He's looking

324
00:15:44,320 --> 00:15:46,040
Speaker 3: at the dusty Pilborough.

325
00:15:45,640 --> 00:15:47,320
Speaker 1: And oh, what a great story, Yeah, and.

326
00:15:47,320 --> 00:15:50,480
Speaker 3: Asking me whether it is the most beautiful thing I've

327
00:15:50,520 --> 00:15:52,640
Speaker 3: ever seen. And I'm looking at a concrete pylon in

328
00:15:52,680 --> 00:15:55,520
Speaker 3: the middle of nowhere, and I'm thinking I've seen prettier things,

329
00:15:55,600 --> 00:15:57,240
Speaker 3: you know, but I could see why he.

330
00:15:57,440 --> 00:15:59,960
Speaker 1: The share is republic a dollar or something at the time,

331
00:16:00,400 --> 00:16:01,680
Speaker 1: I think that could have been less.

332
00:16:01,880 --> 00:16:04,880
Speaker 2: Yeah, pretty sure. I emailed someone just.

333
00:16:04,840 --> 00:16:06,640
Speaker 3: The other week actually, just to get a comment for

334
00:16:06,680 --> 00:16:09,120
Speaker 3: a story, and I said, oh, I just want to

335
00:16:09,120 --> 00:16:11,320
Speaker 3: look back the last time, you know, we'd spoke properly,

336
00:16:11,320 --> 00:16:13,560
Speaker 3: and it was a couple of years ago. And if

337
00:16:13,560 --> 00:16:18,480
Speaker 3: I had bought shares in that particular company, Promedicus, I

338
00:16:18,480 --> 00:16:20,440
Speaker 3: think I worked out if I bought a thousand shares,

339
00:16:20,440 --> 00:16:23,040
Speaker 3: I would have my three hundred thousand dollars. You know

340
00:16:23,520 --> 00:16:25,840
Speaker 3: what I could have should at James.

341
00:16:25,640 --> 00:16:28,880
Speaker 1: Well, as you say, the thing is, it's all about risk.

342
00:16:29,400 --> 00:16:31,920
Speaker 1: So if you buy the ETFs, this is the minimum

343
00:16:32,000 --> 00:16:35,600
Speaker 1: risk approach to shares, and then after that it's a

344
00:16:35,680 --> 00:16:39,480
Speaker 1: question of the more risk you take, then the more

345
00:16:39,680 --> 00:16:43,400
Speaker 1: likely you will have volatility. And volatility, as you know, folks,

346
00:16:43,480 --> 00:16:45,520
Speaker 1: basically means it's going to go way up or way down.

347
00:16:45,840 --> 00:16:49,840
Speaker 1: So for every pro Medicus, there's ninety nine little medical

348
00:16:50,360 --> 00:16:53,400
Speaker 1: device companies that go nowhere. And maybe we'll leave it

349
00:16:53,560 --> 00:16:55,840
Speaker 1: just there, because that's the point we really want to

350
00:16:55,880 --> 00:16:58,400
Speaker 1: make about shares. We'll have a break and we will

351
00:16:58,400 --> 00:17:00,520
Speaker 1: come back and we will talk about what everybody loves

352
00:17:00,560 --> 00:17:09,359
Speaker 1: to talk about. Property. Back in a moment. Hello, Welcome

353
00:17:09,359 --> 00:17:12,719
Speaker 1: back to the Australians Money Puzzle podcast. James Kirby here

354
00:17:12,760 --> 00:17:16,760
Speaker 1: with Julianne Spragg. Julian is the Wealth editor of The Australian,

355
00:17:16,800 --> 00:17:20,439
Speaker 1: and we are talking on the occasion of the launch

356
00:17:20,600 --> 00:17:23,720
Speaker 1: of a new Wealth vertical on The Australian, which is

357
00:17:23,720 --> 00:17:26,040
Speaker 1: going to be really terrific and I'm delighted to see

358
00:17:26,040 --> 00:17:29,479
Speaker 1: it because it's basically putting a lot of effort and

359
00:17:29,640 --> 00:17:33,919
Speaker 1: investment and people into the area that we've been working

360
00:17:33,960 --> 00:17:36,480
Speaker 1: on here for some time on the Money Puzzle, and

361
00:17:36,520 --> 00:17:39,199
Speaker 1: the Money Puzzle too actually, as I say, is effectively

362
00:17:39,240 --> 00:17:43,240
Speaker 1: being relaunched inside this Wealth vertical. This week you'll see

363
00:17:43,240 --> 00:17:47,919
Speaker 1: a lot more episodes, some new voices involved here, and

364
00:17:48,080 --> 00:17:51,520
Speaker 1: we'll do some shows a wider nature than we've been

365
00:17:51,520 --> 00:17:54,920
Speaker 1: doing to this point. Now. As you know, Tuesday's Property

366
00:17:55,119 --> 00:17:59,480
Speaker 1: Show is becoming very popular and I've dealt with property

367
00:17:59,480 --> 00:18:01,639
Speaker 1: for a long time and one of the things I

368
00:18:01,680 --> 00:18:04,960
Speaker 1: want to talk to Juliane about is again something of

369
00:18:05,080 --> 00:18:08,480
Speaker 1: a confessional in the way that we talked about shares there,

370
00:18:08,520 --> 00:18:09,919
Speaker 1: and by the way in the first part we were

371
00:18:09,960 --> 00:18:12,200
Speaker 1: all very smart talking about how the shares we had

372
00:18:12,200 --> 00:18:14,199
Speaker 1: that were great and that there were big winners. I

373
00:18:14,240 --> 00:18:16,800
Speaker 1: do want to mention that I've had some absolute duds.

374
00:18:17,320 --> 00:18:19,439
Speaker 1: I had Great Southern Plantations, which was one of the

375
00:18:19,440 --> 00:18:22,040
Speaker 1: worst shares in the history of the world. And even

376
00:18:22,080 --> 00:18:24,919
Speaker 1: at the moment in my little ten portfolio, I have

377
00:18:25,200 --> 00:18:28,120
Speaker 1: I think a dud, and I just won't sell it

378
00:18:28,160 --> 00:18:30,600
Speaker 1: because it keeps teasing me that it's going to get better,

379
00:18:30,640 --> 00:18:33,960
Speaker 1: which is Ramsey Healthcare hearing me loud and clear, Ramsey Healthcare.

380
00:18:34,160 --> 00:18:38,600
Speaker 1: Now on the property, you can't make mistakes on property

381
00:18:38,720 --> 00:18:40,920
Speaker 1: like you can make mistakes on shares, can you, Julianne,

382
00:18:40,920 --> 00:18:44,560
Speaker 1: It's a different story. It's a big commitment. That's the

383
00:18:44,560 --> 00:18:46,639
Speaker 1: first thing, isn't it to explain to people. It's a

384
00:18:46,720 --> 00:18:50,080
Speaker 1: big commitment. It's illiquid, it takes a lot of effort,

385
00:18:50,880 --> 00:18:52,439
Speaker 1: it takes a lot of commitments. I mean, you needed

386
00:18:52,600 --> 00:18:55,320
Speaker 1: an almost like you almost need like a settled lifestyle

387
00:18:55,720 --> 00:18:58,640
Speaker 1: and a really clear model to do property. You can't

388
00:18:58,720 --> 00:19:00,439
Speaker 1: play with it like you can play with shares.

389
00:19:01,640 --> 00:19:05,840
Speaker 3: I think also it's the sums of what's involved. At

390
00:19:05,880 --> 00:19:08,320
Speaker 3: the beginning our shares, you might be able to sort

391
00:19:08,359 --> 00:19:10,240
Speaker 3: of do five ten thousand or build up to a

392
00:19:10,280 --> 00:19:13,639
Speaker 3: fifty thousand or one hundred thousand portfolio. As I mentioned earlier,

393
00:19:13,680 --> 00:19:16,120
Speaker 3: when we brought out the shares and the property developer,

394
00:19:16,720 --> 00:19:19,320
Speaker 3: we were camping out for this block of land at

395
00:19:19,320 --> 00:19:21,119
Speaker 3: the time. And I know people who are looking into

396
00:19:21,160 --> 00:19:23,200
Speaker 3: property now will be thinking, oh, heavens, I wish I

397
00:19:23,240 --> 00:19:24,320
Speaker 3: could get a block of land for that. But I

398
00:19:24,320 --> 00:19:26,239
Speaker 3: think the block of land was around two hundreds, two

399
00:19:26,320 --> 00:19:29,080
Speaker 3: hundred and twenty thousand, something like that, and that, just

400
00:19:29,320 --> 00:19:32,160
Speaker 3: for me in my twenties was an extraordinary sum of money.

401
00:19:32,200 --> 00:19:33,600
Speaker 3: The loon hadn't built the house on it yet you

402
00:19:33,640 --> 00:19:36,159
Speaker 3: got to build the house, and it's what I just

403
00:19:36,200 --> 00:19:38,520
Speaker 3: remember thinking, this is so much debt and how are

404
00:19:38,520 --> 00:19:40,240
Speaker 3: we going to manage every little penny.

405
00:19:41,000 --> 00:19:43,600
Speaker 1: Yeah, you're taking on a burden. You are taking on

406
00:19:43,640 --> 00:19:45,800
Speaker 1: a burden when you buy a house. It's really hard.

407
00:19:46,240 --> 00:19:48,600
Speaker 1: I mean, in my family, we're at that point where

408
00:19:48,680 --> 00:19:51,719
Speaker 1: my adult kids are starting to look at the property market.

409
00:19:51,760 --> 00:19:54,720
Speaker 1: And you know, the thing is the course, the prices.

410
00:19:55,200 --> 00:19:57,320
Speaker 1: When I say the prices, I'm not saying that in

411
00:19:57,359 --> 00:20:01,159
Speaker 1: a vague, sort of simplistic way. What I mean is

412
00:20:01,200 --> 00:20:04,840
Speaker 1: the price of property as a multiple of the income

413
00:20:05,400 --> 00:20:08,119
Speaker 1: that they are making, or anyone is making, has changed

414
00:20:08,119 --> 00:20:11,439
Speaker 1: so immensely that it really has changed the game. I

415
00:20:11,520 --> 00:20:15,360
Speaker 1: met out that the first house a boat in Melbourne

416
00:20:15,400 --> 00:20:18,760
Speaker 1: as a home was an inner city cottage basically, and

417
00:20:18,840 --> 00:20:21,840
Speaker 1: it was three and a half times my income income.

418
00:20:21,960 --> 00:20:25,600
Speaker 1: My income at the time was fifty grand and I

419
00:20:25,600 --> 00:20:27,960
Speaker 1: could buy a house in inner city in Melbourne for

420
00:20:27,960 --> 00:20:30,520
Speaker 1: three and a half times my income the same house

421
00:20:30,560 --> 00:20:33,680
Speaker 1: to buy that house stay, which is there, if someone

422
00:20:34,000 --> 00:20:36,920
Speaker 1: wanted to buy it at three and a half times

423
00:20:36,960 --> 00:20:39,440
Speaker 1: their income, they'd have to make three hundred thousand dollars

424
00:20:39,480 --> 00:20:42,119
Speaker 1: a year. And the thing is, how many people make

425
00:20:42,160 --> 00:20:45,439
Speaker 1: three hundred thousand dollars a year? Not many. And so

426
00:20:45,480 --> 00:20:50,439
Speaker 1: the point I'm making is it's become so expensive, and

427
00:20:50,480 --> 00:20:53,280
Speaker 1: I mean that in a very thorough way. I mean

428
00:20:53,320 --> 00:20:56,360
Speaker 1: that as a multiple of income, as a measure internationally,

429
00:20:56,400 --> 00:21:00,240
Speaker 1: as a measure historically. And you've did something recently, bar

430
00:21:00,480 --> 00:21:03,320
Speaker 1: was it UBS where they were making the point that

431
00:21:03,400 --> 00:21:05,880
Speaker 1: our wealth is so tied up now in property.

432
00:21:06,240 --> 00:21:09,720
Speaker 3: Yes, so UBS sort of tracked global wealth and in

433
00:21:09,840 --> 00:21:12,720
Speaker 3: one of their most recent reports. It does highlight Australians

434
00:21:12,800 --> 00:21:15,920
Speaker 3: really are some of the wealthiest people on the planet.

435
00:21:16,280 --> 00:21:18,520
Speaker 3: And I find this really interesting when you read it,

436
00:21:18,520 --> 00:21:20,359
Speaker 3: because I think if you talk to most people and said,

437
00:21:21,440 --> 00:21:24,280
Speaker 3: you know, you're really rich in global terms.

438
00:21:24,200 --> 00:21:25,640
Speaker 2: People you don't feel rich.

439
00:21:26,560 --> 00:21:28,800
Speaker 3: It is because it's all tied up in these assets

440
00:21:29,119 --> 00:21:30,600
Speaker 3: and you've got debt attached to it and all those

441
00:21:30,600 --> 00:21:33,320
Speaker 3: sorts of things. But what ubs that They made the

442
00:21:33,359 --> 00:21:36,359
Speaker 3: point that there's a disproportionate amount of wealth tied up

443
00:21:36,359 --> 00:21:39,080
Speaker 3: in property for Australians without property prices are some of

444
00:21:39,119 --> 00:21:41,720
Speaker 3: the highest in the world, and so our wealth is

445
00:21:41,800 --> 00:21:45,959
Speaker 3: tied in to that. And then we have this conundrum.

446
00:21:46,000 --> 00:21:48,280
Speaker 3: So as you mentioned, so you were able to get

447
00:21:48,320 --> 00:21:51,120
Speaker 3: into property three four times your earnings, your kids now

448
00:21:52,000 --> 00:21:54,040
Speaker 3: have to have ten eleven times earnings.

449
00:21:54,320 --> 00:21:55,400
Speaker 1: That's right, And how.

450
00:21:55,320 --> 00:21:57,479
Speaker 3: Do we fix that? How do you fix that problem?

451
00:21:57,560 --> 00:21:59,760
Speaker 3: And so I'm approaching this so my daughter's much younger,

452
00:22:00,119 --> 00:22:02,800
Speaker 3: orders six, and if property prices keep going how they

453
00:22:02,840 --> 00:22:05,720
Speaker 3: have been going, I love her daily, But does that

454
00:22:05,760 --> 00:22:08,119
Speaker 3: mean she's with me for life, for the end or

455
00:22:08,440 --> 00:22:09,080
Speaker 3: what am I doing?

456
00:22:09,080 --> 00:22:09,240
Speaker 2: Now?

457
00:22:09,280 --> 00:22:12,480
Speaker 1: Their deposit will be larger than the value of the

458
00:22:12,560 --> 00:22:16,280
Speaker 1: homes we bought. I mean, that's happening already. It is.

459
00:22:16,920 --> 00:22:18,919
Speaker 1: It's really tough. And I mean, and my guys do

460
00:22:19,000 --> 00:22:20,440
Speaker 1: turn around to me and they say yeah, yeah, and

461
00:22:20,440 --> 00:22:21,919
Speaker 1: they're saying like, I don't know if I want to

462
00:22:21,920 --> 00:22:24,760
Speaker 1: do this, And of course I am saying you must,

463
00:22:25,080 --> 00:22:27,720
Speaker 1: because it's not going to get cheaper. I'm sorry, but

464
00:22:27,880 --> 00:22:30,520
Speaker 1: it's not going to get cheaper. Well.

465
00:22:30,720 --> 00:22:32,120
Speaker 2: I spoke to a property developer.

466
00:22:32,240 --> 00:22:34,600
Speaker 3: This was before I actually had my daughter, and he

467
00:22:34,600 --> 00:22:36,000
Speaker 3: said to me, he said, oh, are you planning to

468
00:22:36,000 --> 00:22:38,480
Speaker 3: have kids? And my face must have had This was

469
00:22:38,480 --> 00:22:40,240
Speaker 3: such a random thing to ask me for you know,

470
00:22:40,240 --> 00:22:41,919
Speaker 3: we're doing this news interview. And said, I don't need

471
00:22:41,920 --> 00:22:44,560
Speaker 3: to pry. I'm just the reason I'm asking is that

472
00:22:44,920 --> 00:22:47,679
Speaker 3: you need to have a plan. So for every child

473
00:22:47,760 --> 00:22:51,080
Speaker 3: you have, you should have an investment property for that child,

474
00:22:51,520 --> 00:22:54,000
Speaker 3: because then you'll need to sell that investment property to

475
00:22:54,040 --> 00:22:56,760
Speaker 3: provide the deposit for your children to get into the

476
00:22:56,760 --> 00:22:57,359
Speaker 3: property market.

477
00:22:57,400 --> 00:22:58,080
Speaker 2: This was his thing.

478
00:22:58,119 --> 00:23:01,840
Speaker 1: Yeah, And I mean, it's a terrible, brutally rational way

479
00:23:01,880 --> 00:23:04,000
Speaker 1: to approach it, but it's true.

480
00:23:04,480 --> 00:23:06,600
Speaker 3: So I just had one child and I haven't bought

481
00:23:06,600 --> 00:23:08,639
Speaker 3: the investment property, but we are looking into it because

482
00:23:08,640 --> 00:23:10,240
Speaker 3: it's sort of thinking about where to go.

483
00:23:10,200 --> 00:23:11,879
Speaker 1: With that, and in a way, we're chasing our tails,

484
00:23:11,880 --> 00:23:14,760
Speaker 1: so we all run off and we stretch ourselves to

485
00:23:14,800 --> 00:23:18,360
Speaker 1: buy investment property so that we can catch up with

486
00:23:18,440 --> 00:23:22,400
Speaker 1: the property prices. We are pushing the prices higher by

487
00:23:22,400 --> 00:23:25,879
Speaker 1: investing in property, but we're doing it because we're worried

488
00:23:25,880 --> 00:23:27,920
Speaker 1: that prices will be so high for our own kids

489
00:23:27,920 --> 00:23:30,159
Speaker 1: when they go to buy home. It's hard work, but

490
00:23:30,320 --> 00:23:33,640
Speaker 1: I'm a pragmatist at heart, and I think that's it, right,

491
00:23:33,680 --> 00:23:36,399
Speaker 1: that's the game. So the game is there, and what

492
00:23:36,400 --> 00:23:38,800
Speaker 1: we're hoping to do on the show always is help

493
00:23:39,160 --> 00:23:43,760
Speaker 1: and inform people what is going on out there, insights

494
00:23:43,880 --> 00:23:46,040
Speaker 1: into what you can really how you can play it.

495
00:23:46,160 --> 00:23:49,479
Speaker 3: Yeah, with everything that we've just spoken about, so these

496
00:23:49,480 --> 00:23:53,320
Speaker 3: are conversations that happen around dining room tables across the country,

497
00:23:53,560 --> 00:23:56,000
Speaker 3: and it's not lost on the politicians. And I do

498
00:23:56,080 --> 00:24:02,800
Speaker 3: wonder if you've got labor in control. They obviously a

499
00:24:02,840 --> 00:24:05,800
Speaker 3: few years back, tried to float, you know, run up

500
00:24:05,840 --> 00:24:08,639
Speaker 3: the flagpole different ideas on changing capital gains tax and

501
00:24:08,760 --> 00:24:10,640
Speaker 3: yet a whole bunch of other things, and it didn't

502
00:24:10,640 --> 00:24:13,080
Speaker 3: go down. Very well. I do wonder if we're in

503
00:24:13,119 --> 00:24:15,320
Speaker 3: an environment. You know they're going after now super and

504
00:24:15,320 --> 00:24:17,320
Speaker 3: we'll get to a super discussion soon. But whether you

505
00:24:17,359 --> 00:24:21,600
Speaker 3: think that some of these tax leaders and trying to

506
00:24:22,640 --> 00:24:26,080
Speaker 3: work on a policy sense to get properly markets tamed

507
00:24:26,720 --> 00:24:27,680
Speaker 3: will be on the agenda.

508
00:24:27,800 --> 00:24:30,720
Speaker 1: I mean, they've been re elected with an enhanced majority.

509
00:24:30,760 --> 00:24:32,960
Speaker 1: If they are ever going to tackle this issue, this

510
00:24:33,080 --> 00:24:35,080
Speaker 1: is the time to tackle it. I think there's an

511
00:24:35,080 --> 00:24:38,720
Speaker 1: appetite for it, and I think even people who are

512
00:24:39,040 --> 00:24:43,480
Speaker 1: totally pro investment know that the system is terribly upside

513
00:24:43,520 --> 00:24:46,720
Speaker 1: down and it favors older Australians against younger Australians. The

514
00:24:46,720 --> 00:24:49,159
Speaker 1: super system does, but so does the property system, and

515
00:24:49,200 --> 00:24:53,160
Speaker 1: it favors homeowners over renters beyond a doubt. You can

516
00:24:53,200 --> 00:24:55,439
Speaker 1: have a ten million dollar house on Sydney Harbor. You

517
00:24:55,440 --> 00:24:57,440
Speaker 1: can have a twenty million dollar house on Sydney Harbor

518
00:24:57,880 --> 00:25:01,760
Speaker 1: and you can get the pension that is. So that's

519
00:25:01,760 --> 00:25:05,240
Speaker 1: something that could be reassessed and we know Tanya Plipper

520
00:25:05,280 --> 00:25:08,439
Speaker 1: six Social Services Department is looking at that. We know

521
00:25:09,240 --> 00:25:12,399
Speaker 1: that they're looking at the Labor Party is looking at

522
00:25:12,440 --> 00:25:15,200
Speaker 1: capital gains tax. Again, that's property if you hold a

523
00:25:15,240 --> 00:25:17,280
Speaker 1: property for more than a year, you only have to

524
00:25:17,320 --> 00:25:20,520
Speaker 1: pay twenty five percent CGT. That discount is I think

525
00:25:20,600 --> 00:25:22,520
Speaker 1: that I think these are I think these are sitting

526
00:25:22,600 --> 00:25:25,280
Speaker 1: ducks actually, Juliana. I think that this is where they're

527
00:25:25,280 --> 00:25:29,680
Speaker 1: gonna this is where they're going to peel wealth taxes from.

528
00:25:29,720 --> 00:25:32,880
Speaker 1: And it's all again it's around property. And of course

529
00:25:32,920 --> 00:25:35,200
Speaker 1: it's around property because going back to what you said

530
00:25:35,200 --> 00:25:38,439
Speaker 1: at the start, that's the cornerstone of our wealth. But

531
00:25:38,520 --> 00:25:40,639
Speaker 1: you know, we are getting to a point where it's

532
00:25:41,440 --> 00:25:45,000
Speaker 1: I would say it's backfiring. But if you are an

533
00:25:45,000 --> 00:25:48,119
Speaker 1: investor now and you buy an apartment in Sydney for

534
00:25:48,160 --> 00:25:52,280
Speaker 1: a million dollars and you're getting two percent rental yield

535
00:25:53,080 --> 00:25:57,200
Speaker 1: and you're that's hopeless. It's hopeless. I mean as an investment,

536
00:25:57,280 --> 00:25:59,840
Speaker 1: everyone loses, the rental losers they're paying so much. The

537
00:26:00,000 --> 00:26:02,760
Speaker 1: investor loses, they're paying so much for the property. The

538
00:26:02,840 --> 00:26:04,679
Speaker 1: yield is going to be really low, and then the

539
00:26:04,720 --> 00:26:08,400
Speaker 1: game becomes almost exclusively a game of hoping you get

540
00:26:08,400 --> 00:26:11,640
Speaker 1: the capital gains tax at the end. So I think

541
00:26:11,680 --> 00:26:12,920
Speaker 1: something has to crack here.

542
00:26:14,520 --> 00:26:19,680
Speaker 3: I agree, Yeah, I think it's just going to be what, Yeah,

543
00:26:19,720 --> 00:26:20,040
Speaker 3: what is it?

544
00:26:20,080 --> 00:26:22,840
Speaker 1: Going to be well, we will be covering that very closely. Indeed,

545
00:26:22,920 --> 00:26:25,040
Speaker 1: don't you worry, we will not miss a beat on

546
00:26:25,080 --> 00:26:27,399
Speaker 1: that one on property and property taxes. But you know,

547
00:26:27,440 --> 00:26:29,160
Speaker 1: I've had lots of people on the show. We talk

548
00:26:29,200 --> 00:26:33,000
Speaker 1: about tax and we talk about the restraints if you like,

549
00:26:33,640 --> 00:26:36,800
Speaker 1: that are in place for investors, and you will always

550
00:26:36,840 --> 00:26:38,639
Speaker 1: have restraints. And when you have a labor government in

551
00:26:38,680 --> 00:26:41,399
Speaker 1: particularly for a second term, they have a very clear

552
00:26:41,440 --> 00:26:45,920
Speaker 1: agenda and often that agenda is not pro investor. Occasionally

553
00:26:45,920 --> 00:26:50,040
Speaker 1: it can be. Under certain under the Keating regime, he

554
00:26:50,119 --> 00:26:52,560
Speaker 1: managed to do both. I don't think it's pro investor

555
00:26:52,600 --> 00:26:55,680
Speaker 1: at the moment in any way under say Jim Chalmers.

556
00:26:55,800 --> 00:26:58,240
Speaker 1: But when you have people on the show that I've

557
00:26:58,280 --> 00:26:59,960
Speaker 1: talked to, the one thing that I find with the

558
00:27:00,200 --> 00:27:04,840
Speaker 1: is they kind of whatever the obstacles are, they're determined

559
00:27:04,840 --> 00:27:07,399
Speaker 1: to overcome them. They will say I'm going to do

560
00:27:07,440 --> 00:27:07,960
Speaker 1: it anyway.

561
00:27:08,400 --> 00:27:08,680
Speaker 2: Yeah.

562
00:27:08,720 --> 00:27:10,760
Speaker 3: So with what we know, and there's probably changes of that,

563
00:27:10,840 --> 00:27:13,280
Speaker 3: there's going to be political pressure to do something. And

564
00:27:13,320 --> 00:27:16,640
Speaker 3: you mentioned so you've got your there's adult kids.

565
00:27:16,440 --> 00:27:18,480
Speaker 2: In your house and one of them is looking at property.

566
00:27:18,720 --> 00:27:20,639
Speaker 1: Yes, yes, indeed, what's your.

567
00:27:20,480 --> 00:27:22,520
Speaker 2: Advice and how are you trying to guide them?

568
00:27:22,600 --> 00:27:26,640
Speaker 1: My advice always is that that there's two entirely different

569
00:27:26,800 --> 00:27:29,920
Speaker 1: issues in property. One is buying a home and one's

570
00:27:29,960 --> 00:27:32,720
Speaker 1: buying an investment in property. If you're buying a home,

571
00:27:32,920 --> 00:27:34,280
Speaker 1: a lot of things that we talk about on the

572
00:27:34,320 --> 00:27:38,880
Speaker 1: show are have to be seen through that filter, because

573
00:27:38,880 --> 00:27:41,240
Speaker 1: there's this enormous thing if you buy a home. Number one,

574
00:27:41,240 --> 00:27:44,240
Speaker 1: you're not paying rent anymore. If you buy a home,

575
00:27:44,680 --> 00:27:50,520
Speaker 1: you immediately enter the privileged arena of the property owner.

576
00:27:50,600 --> 00:27:53,920
Speaker 1: In Australia, where there is an where there's exemption from

577
00:27:53,960 --> 00:27:56,800
Speaker 1: capital gains tax, where even when you get when you're older,

578
00:27:56,840 --> 00:28:00,280
Speaker 1: there's an exemption from the pension. The whole system is

579
00:28:00,320 --> 00:28:03,399
Speaker 1: loaded in favor of the homeowner. And that's why I

580
00:28:03,400 --> 00:28:06,399
Speaker 1: support things that some people think are controversial, like, for instance,

581
00:28:06,440 --> 00:28:08,480
Speaker 1: tapping super to buy a home. But the way I

582
00:28:08,520 --> 00:28:10,919
Speaker 1: look at it is the system is so tilted in

583
00:28:10,960 --> 00:28:14,520
Speaker 1: favor of the homeowner. It would be much more important

584
00:28:14,560 --> 00:28:16,520
Speaker 1: to own a home than to have an extra twenty

585
00:28:16,600 --> 00:28:19,040
Speaker 1: or fifty grand or whatever in super. If it's coming

586
00:28:19,080 --> 00:28:21,760
Speaker 1: down to that, then really the home is so important.

587
00:28:21,760 --> 00:28:24,040
Speaker 1: So I kind of separate that very and you can

588
00:28:24,080 --> 00:28:26,960
Speaker 1: buy an apartment. The point I'm making there is that

589
00:28:27,000 --> 00:28:30,200
Speaker 1: we know houses are much much better investments and apartments

590
00:28:30,280 --> 00:28:34,040
Speaker 1: in the main, But when you're buying a property as

591
00:28:34,080 --> 00:28:36,000
Speaker 1: a home, the first thing, and the major thing is

592
00:28:36,040 --> 00:28:41,080
Speaker 1: to just buy it. Do it, do it, don't be

593
00:28:41,520 --> 00:28:43,720
Speaker 1: I was thirty three when we bought our first home.

594
00:28:43,880 --> 00:28:45,200
Speaker 1: Because I'd lived all around.

595
00:28:44,920 --> 00:28:49,320
Speaker 3: The world, I would say that I agree with you,

596
00:28:49,360 --> 00:28:53,160
Speaker 3: But because when I look back, I think, gosh that

597
00:28:53,280 --> 00:28:55,040
Speaker 3: one of the top tips for people would be to

598
00:28:55,120 --> 00:28:56,960
Speaker 3: talk to me about when I'm buying property and then

599
00:28:57,040 --> 00:28:57,680
Speaker 3: run the other way.

600
00:28:57,760 --> 00:28:58,200
Speaker 1: I have this.

601
00:28:58,240 --> 00:29:01,640
Speaker 3: Uncanny ability to buy at the top.

602
00:29:01,880 --> 00:29:02,680
Speaker 1: That's perth for you.

603
00:29:02,920 --> 00:29:04,480
Speaker 2: No, it's very sickly, it's perfectly.

604
00:29:04,640 --> 00:29:05,760
Speaker 1: It is notoriously so.

605
00:29:06,040 --> 00:29:08,920
Speaker 3: But if I look back, it doesn't really matter, because

606
00:29:09,560 --> 00:29:11,000
Speaker 3: it does. I would have made a lot more money

607
00:29:11,000 --> 00:29:13,360
Speaker 3: if I had not bought at the top. But it

608
00:29:13,840 --> 00:29:15,640
Speaker 3: goes down and then it comes back up again, and

609
00:29:15,680 --> 00:29:17,520
Speaker 3: it goes up, and then it goes down and it

610
00:29:17,560 --> 00:29:20,040
Speaker 3: goes up. So if I had never have gotten on

611
00:29:20,320 --> 00:29:25,600
Speaker 3: the property ladder, it would be eyewatering to think about

612
00:29:26,280 --> 00:29:27,120
Speaker 3: trying to do it. Now.

613
00:29:27,600 --> 00:29:30,040
Speaker 1: That's right, I know, it's really that is the thing

614
00:29:30,080 --> 00:29:32,080
Speaker 1: I'm saying to people on the show all the time,

615
00:29:32,320 --> 00:29:35,959
Speaker 1: just start and as you say, if it's a home,

616
00:29:36,520 --> 00:29:39,400
Speaker 1: it's so different. Okay, you know you've got a mortgage. Okay,

617
00:29:39,760 --> 00:29:41,680
Speaker 1: last year was really good. For what's happening this year.

618
00:29:41,720 --> 00:29:44,000
Speaker 1: All prices are down. You don't care about that. It's

619
00:29:44,040 --> 00:29:46,800
Speaker 1: your home. You're living there and years past and you know,

620
00:29:46,920 --> 00:29:49,160
Speaker 1: guess what, every five years it's higher than it was

621
00:29:49,320 --> 00:29:52,480
Speaker 1: at the start of the five year period. So yeah,

622
00:29:52,480 --> 00:29:53,320
Speaker 1: it's a different things.

623
00:29:53,160 --> 00:29:53,760
Speaker 2: And you get in.

624
00:29:53,920 --> 00:29:56,600
Speaker 3: I still remember that very first distill mentions. It was

625
00:29:56,600 --> 00:29:58,880
Speaker 3: twenty five thirty k's out of Perth. You know, it

626
00:29:58,920 --> 00:30:01,880
Speaker 3: was a frontier types. The fences hadn't even been built yet.

627
00:30:01,920 --> 00:30:03,520
Speaker 3: You know, the first week in this house, this is.

628
00:30:04,440 --> 00:30:09,480
Speaker 1: Everyone did everyone have a rifle of a rifle beside them?

629
00:30:10,640 --> 00:30:12,920
Speaker 3: It was Actually, it was so fantastic because you got

630
00:30:12,960 --> 00:30:15,760
Speaker 3: to know your neighbors in this camp at this random situation.

631
00:30:15,840 --> 00:30:17,880
Speaker 3: We've got seven nights out to get the land, and

632
00:30:17,920 --> 00:30:19,560
Speaker 3: then you all built the houses together and there's this

633
00:30:19,640 --> 00:30:24,560
Speaker 3: real camaraderie. But I remember the first summer in that house.

634
00:30:24,840 --> 00:30:27,280
Speaker 3: It's person it's the out of suburbs, and so we

635
00:30:27,320 --> 00:30:28,880
Speaker 3: didn't have money for the air. We had no air

636
00:30:28,880 --> 00:30:32,000
Speaker 3: conditioning for the first couple of years, and for summer

637
00:30:32,080 --> 00:30:34,960
Speaker 3: we so I bought these two dollars water bottles, the

638
00:30:35,040 --> 00:30:37,920
Speaker 3: spray water bottles, and we had a pedestal fan at

639
00:30:37,920 --> 00:30:40,000
Speaker 3: the foot of the bed and you would just lie

640
00:30:40,040 --> 00:30:42,440
Speaker 3: back and you'd wait for the fan to just kind

641
00:30:42,480 --> 00:30:43,880
Speaker 3: of get near you, and then you go sprits.

642
00:30:43,960 --> 00:30:45,280
Speaker 2: It splits the water bottle and.

643
00:30:45,280 --> 00:30:47,960
Speaker 3: Then you just get this spray of water to try

644
00:30:48,000 --> 00:30:50,520
Speaker 3: and help you sleep, you know, in those forty degree days.

645
00:30:51,000 --> 00:30:52,760
Speaker 1: Good for you. So you did it the hard way,

646
00:30:53,160 --> 00:30:55,720
Speaker 1: telling us you did it. You did it the hard way.

647
00:30:55,960 --> 00:30:58,280
Speaker 3: You know sometimes and I know this gets thrown around

648
00:30:58,320 --> 00:30:59,880
Speaker 3: a little bit, but you sort of think it's just

649
00:31:00,160 --> 00:31:02,080
Speaker 3: you do sort of sometimes you've got to kind of

650
00:31:02,120 --> 00:31:03,800
Speaker 3: roll up your slaves, do it tough for a bit

651
00:31:03,840 --> 00:31:05,680
Speaker 3: and get in and then find your way.

652
00:31:05,720 --> 00:31:06,400
Speaker 2: Now we're not still in that.

653
00:31:06,720 --> 00:31:08,920
Speaker 3: We sold that property and you know we've moved to

654
00:31:08,920 --> 00:31:11,320
Speaker 3: Melbourne and Sydney and back again. Many properties down the

655
00:31:11,320 --> 00:31:15,120
Speaker 3: line now. But we do talk to people gens to

656
00:31:15,160 --> 00:31:17,680
Speaker 3: get frustrated that there's a sense that everything has to

657
00:31:17,680 --> 00:31:18,200
Speaker 3: be perfect.

658
00:31:18,720 --> 00:31:21,560
Speaker 1: Yes, and Stewart Williams on the show has said more

659
00:31:21,600 --> 00:31:25,160
Speaker 1: than once. He doesn't say this young he doesn't stand

660
00:31:25,160 --> 00:31:27,080
Speaker 1: back and say this younger generation aren't prepared to do

661
00:31:27,120 --> 00:31:29,800
Speaker 1: it tough. But what he does say is that people

662
00:31:29,960 --> 00:31:37,160
Speaker 1: are much more skeptical and cautious about the renovator opportunity

663
00:31:37,200 --> 00:31:39,920
Speaker 1: than they used to be. That's because, among other things,

664
00:31:39,920 --> 00:31:43,160
Speaker 1: there was a shortage of treaties in COVID and some

665
00:31:43,160 --> 00:31:45,360
Speaker 1: people got terribly caught, and there was a thirty percent

666
00:31:45,400 --> 00:31:48,440
Speaker 1: inflation of course in building materials. But that is over now.

667
00:31:48,520 --> 00:31:52,320
Speaker 1: But is that part is over broadly, But there's still

668
00:31:52,360 --> 00:31:56,400
Speaker 1: that fear in the market about not just about renovating

669
00:31:56,400 --> 00:32:00,440
Speaker 1: a house, but whether your plans can be execut in

670
00:32:00,480 --> 00:32:04,000
Speaker 1: the way that you think because of both shortage still

671
00:32:04,080 --> 00:32:07,520
Speaker 1: some residual shortage of trades and the price going up

672
00:32:07,560 --> 00:32:08,120
Speaker 1: all the time.

673
00:32:09,080 --> 00:32:12,400
Speaker 3: In defense of the younger generation, I will say in

674
00:32:12,440 --> 00:32:14,520
Speaker 3: our coverage coming up in this new Wealth body of

675
00:32:14,520 --> 00:32:16,440
Speaker 3: call that we're launching, keep an eye out.

676
00:32:16,480 --> 00:32:19,320
Speaker 2: We've got a story. We've chattered this. I want to say, kid,

677
00:32:19,320 --> 00:32:23,000
Speaker 2: but it's twenty six. He's not a kid. He's twenty

678
00:32:23,040 --> 00:32:25,080
Speaker 2: six year old, and he has made sacrifices.

679
00:32:25,080 --> 00:32:26,680
Speaker 3: All of his friends have gone out and you know,

680
00:32:26,680 --> 00:32:29,000
Speaker 3: there are music festivals and are off doing things or

681
00:32:29,000 --> 00:32:30,600
Speaker 3: they've got new cars, and he hasn't done any of that.

682
00:32:30,640 --> 00:32:33,760
Speaker 3: He's sort of head down the backside up, and he's

683
00:32:33,880 --> 00:32:36,880
Speaker 3: got quite a few investment properties and counting.

684
00:32:37,200 --> 00:32:40,840
Speaker 2: He's just really rolled up his slaves. So we'll yeah,

685
00:32:41,000 --> 00:32:41,800
Speaker 2: story to life.

686
00:32:41,920 --> 00:32:45,240
Speaker 1: Yeah, okay, look forward to seeing that one. All right, Now,

687
00:32:45,280 --> 00:32:47,720
Speaker 1: what we might do here. We've talked a little bit

688
00:32:47,760 --> 00:32:51,920
Speaker 1: about shares and starting and shares and what you must

689
00:32:51,960 --> 00:32:54,360
Speaker 1: do to get going in the share market. We've talked

690
00:32:54,360 --> 00:32:58,440
Speaker 1: a little about property and how to start in property

691
00:32:58,480 --> 00:33:03,040
Speaker 1: and that, as I say, there enormous division between a

692
00:33:03,160 --> 00:33:06,600
Speaker 1: home and an investment property. And we didn't talk much

693
00:33:06,640 --> 00:33:09,320
Speaker 1: about investment property except to say obviously investment property is

694
00:33:09,360 --> 00:33:11,600
Speaker 1: a different game out together. It's just basically about the price.

695
00:33:11,880 --> 00:33:14,120
Speaker 1: So the price you make your profit when you buy.

696
00:33:14,400 --> 00:33:16,360
Speaker 1: You manage it as best you can for as little

697
00:33:16,480 --> 00:33:18,960
Speaker 1: cost as you can, and that is a different game

698
00:33:19,000 --> 00:33:21,560
Speaker 1: than buying a home. In the last second, if we're

699
00:33:21,560 --> 00:33:25,240
Speaker 1: going to talk about super because this is often where

700
00:33:25,240 --> 00:33:28,360
Speaker 1: it all rose for everybody. The reason you are investing,

701
00:33:28,920 --> 00:33:31,640
Speaker 1: as Julie Anne said at the start, and I do

702
00:33:31,760 --> 00:33:34,920
Speaker 1: sincerely believe this. It's a great way to be. You

703
00:33:34,920 --> 00:33:36,880
Speaker 1: can enjoy your job a lot more if you don't

704
00:33:36,920 --> 00:33:38,480
Speaker 1: have to worry about whether you need to be paid

705
00:33:38,560 --> 00:33:42,200
Speaker 1: or not. That's one thing. The second thing is that

706
00:33:43,280 --> 00:33:47,160
Speaker 1: we're all going to need super. It's become extremely expensive

707
00:33:47,160 --> 00:33:48,720
Speaker 1: for what the country. As Julie Anne said at the

708
00:33:48,720 --> 00:33:50,160
Speaker 1: start of the show, what sort of super are you

709
00:33:50,200 --> 00:33:51,560
Speaker 1: going to have? How are you going to start it,

710
00:33:51,640 --> 00:33:53,640
Speaker 1: how are you going to approach it? Let's talk about

711
00:33:53,680 --> 00:34:03,880
Speaker 1: that in a moment ago. Hello, Welcome back to The

712
00:34:03,880 --> 00:34:08,600
Speaker 1: Australian's Money Puzzle podcast. James Kirby, Associate Editor Wealth on

713
00:34:08,600 --> 00:34:11,760
Speaker 1: The Australian, talking to Julie An Spragg, the Wealth editor

714
00:34:11,960 --> 00:34:15,400
Speaker 1: of The Australian, on the occasion of the launch of

715
00:34:15,480 --> 00:34:18,160
Speaker 1: our Wealth vertical on The Australian, which we, by the way,

716
00:34:18,280 --> 00:34:20,520
Speaker 1: have been working on for a long time. Julianne has

717
00:34:20,560 --> 00:34:24,600
Speaker 1: been working on this since April April, and it's now.

718
00:34:24,520 --> 00:34:28,440
Speaker 3: About that very first I came across worked at the

719
00:34:28,440 --> 00:34:31,440
Speaker 3: Financial Review and then had a since talkback radio believe

720
00:34:31,480 --> 00:34:34,359
Speaker 3: it or not, James, and then took up this opportunity. Yeah,

721
00:34:34,360 --> 00:34:36,279
Speaker 3: it feels nice to be back on the tools to

722
00:34:36,320 --> 00:34:38,560
Speaker 3: be honest with the mar headphines, it's.

723
00:34:38,440 --> 00:34:41,440
Speaker 1: A wonderful thing that journalism has that sort of widened,

724
00:34:41,480 --> 00:34:44,280
Speaker 1: that we can do videos and we can do podcasts

725
00:34:44,360 --> 00:34:46,520
Speaker 1: and we can write as we always did. And this

726
00:34:46,560 --> 00:34:50,040
Speaker 1: is what this vertical is all about, getting you the

727
00:34:50,120 --> 00:34:52,480
Speaker 1: reader or the listener or the viewer, and getting what

728
00:34:52,560 --> 00:34:55,840
Speaker 1: we know through in different ways. Now this segment, I

729
00:34:55,920 --> 00:34:58,279
Speaker 1: just want to talk about super And the first thing

730
00:34:58,320 --> 00:35:00,680
Speaker 1: you need to know, folks, is that I have gone

731
00:35:00,719 --> 00:35:04,680
Speaker 1: separate ways on super She's with big super, a big

732
00:35:04,719 --> 00:35:08,960
Speaker 1: super fund, which just sends her a statement every now

733
00:35:08,960 --> 00:35:11,000
Speaker 1: and again. Or she can go online and she says, oh,

734
00:35:11,040 --> 00:35:13,200
Speaker 1: there you are. It's gone up again. Isn't that nice?

735
00:35:13,400 --> 00:35:17,640
Speaker 1: And I do my own So I have a self

736
00:35:17,680 --> 00:35:21,520
Speaker 1: managed super fund since two o sixty year before the GFC.

737
00:35:21,680 --> 00:35:27,040
Speaker 1: Who I caught it tights, Yes, So.

738
00:35:25,400 --> 00:35:27,239
Speaker 3: So then I mean, you know where you live, so

739
00:35:27,600 --> 00:35:29,919
Speaker 3: you can send your own statements this that's fair enough

740
00:35:29,960 --> 00:35:33,759
Speaker 3: because this is real confessional time. This is such a confession.

741
00:35:35,160 --> 00:35:39,920
Speaker 3: I don't think I've got a statement from my super

742
00:35:39,920 --> 00:35:42,520
Speaker 3: fund in probably three years because we moved.

743
00:35:42,920 --> 00:35:44,640
Speaker 2: Yes, So that gives you.

744
00:35:44,560 --> 00:35:49,560
Speaker 3: An understanding of how little I have paid attention.

745
00:35:49,680 --> 00:35:52,600
Speaker 1: And you would be in a very large group of

746
00:35:52,719 --> 00:35:57,239
Speaker 1: people who are not engaged, as they say, with their

747
00:35:57,320 --> 00:35:57,960
Speaker 1: super fund.

748
00:35:59,239 --> 00:36:02,960
Speaker 3: Why what would I be when I have so much

749
00:36:03,000 --> 00:36:04,080
Speaker 3: going on in my life, James?

750
00:36:04,120 --> 00:36:05,319
Speaker 2: But what I love about this job.

751
00:36:05,360 --> 00:36:07,960
Speaker 3: So I've started here, We're building the New World vertical,

752
00:36:08,000 --> 00:36:11,279
Speaker 3: getting across a lot of this information. And what's coming

753
00:36:11,280 --> 00:36:14,719
Speaker 3: across clear to me is people start to really care

754
00:36:14,760 --> 00:36:18,080
Speaker 3: about their super when they hit the mid fifties, because

755
00:36:18,080 --> 00:36:20,640
Speaker 3: in your mid fifties, you're thinking about we want to

756
00:36:20,680 --> 00:36:21,439
Speaker 3: retire and what.

757
00:36:21,440 --> 00:36:22,520
Speaker 1: Is that balance? What to do?

758
00:36:23,480 --> 00:36:25,719
Speaker 3: And I think we have a real I don't know

759
00:36:25,760 --> 00:36:27,680
Speaker 3: if it's an issue because I think there's a compulsory

760
00:36:27,680 --> 00:36:30,960
Speaker 3: superannuation system was set up that there's now a lot

761
00:36:30,960 --> 00:36:34,320
Speaker 3: of people are younger people who will have these balances

762
00:36:34,360 --> 00:36:37,000
Speaker 3: going forward. But I do feel like there's this moment

763
00:36:37,040 --> 00:36:38,520
Speaker 3: where we have to get people a little bit more

764
00:36:38,520 --> 00:36:42,160
Speaker 3: interested and engaged because you can make all these little

765
00:36:42,160 --> 00:36:44,840
Speaker 3: micro decisions along the way that can really reckon.

766
00:36:46,000 --> 00:36:47,960
Speaker 2: And I've on evenly focused on it. I reckon because

767
00:36:47,960 --> 00:36:48,479
Speaker 2: of this job.

768
00:36:48,960 --> 00:36:52,359
Speaker 1: Yes, yes, well, And the other thing is people, Yeah,

769
00:36:52,400 --> 00:36:54,560
Speaker 1: as you say, look, you can try all you like,

770
00:36:54,640 --> 00:36:57,600
Speaker 1: but you know, when I was twenty five or thirty

771
00:36:57,800 --> 00:37:02,479
Speaker 1: or probably thirty five. As for super, I didn't care.

772
00:37:03,000 --> 00:37:04,719
Speaker 1: I did not care. I mean, to me, it was

773
00:37:04,840 --> 00:37:07,200
Speaker 1: unimaginable that it would ever be an issue. As you say,

774
00:37:07,360 --> 00:37:10,479
Speaker 1: I think around maybe when you have kids, well maybe

775
00:37:10,520 --> 00:37:12,959
Speaker 1: when you have kids you sober up in so many ways,

776
00:37:13,000 --> 00:37:14,960
Speaker 1: but you certainly sober up in terms of money, and

777
00:37:15,000 --> 00:37:17,160
Speaker 1: you say, ooh gosh, I'm going to have to have

778
00:37:17,239 --> 00:37:20,440
Speaker 1: money if I want to. You know, it's almost My

779
00:37:20,480 --> 00:37:23,360
Speaker 1: approach had always been I want to have money because

780
00:37:23,680 --> 00:37:25,239
Speaker 1: I want to get that out of the way. I

781
00:37:25,320 --> 00:37:26,680
Speaker 1: just don't want it to be an issue. I don't

782
00:37:26,680 --> 00:37:28,239
Speaker 1: want to be worrying about that. I don't want There

783
00:37:28,320 --> 00:37:30,400
Speaker 1: are plenty of other things I want to do. I

784
00:37:30,440 --> 00:37:32,319
Speaker 1: don't want it to be an obstacle because in my

785
00:37:32,480 --> 00:37:35,520
Speaker 1: experience I often found that people it was people who

786
00:37:35,560 --> 00:37:38,759
Speaker 1: actually didn't manage money very well that talked about it

787
00:37:38,760 --> 00:37:39,800
Speaker 1: the most.

788
00:37:40,680 --> 00:37:42,640
Speaker 3: Yeah, I think I come at it from a point

789
00:37:42,640 --> 00:37:46,600
Speaker 3: of view of I'm a fiercely independent person. Anyone who

790
00:37:46,640 --> 00:37:49,080
Speaker 3: knows me will tell you that. And I also so

791
00:37:49,120 --> 00:37:51,520
Speaker 3: I feel like carry that with money habits in that

792
00:37:51,719 --> 00:37:53,600
Speaker 3: I don't want to have to rely on anybody else.

793
00:37:53,600 --> 00:37:55,120
Speaker 3: I don't want to have to rely on the government

794
00:37:55,280 --> 00:37:58,080
Speaker 3: to provide a pension for me. Right, if they want

795
00:37:58,120 --> 00:38:00,359
Speaker 3: to throw money my way, we can have a whole

796
00:38:00,360 --> 00:38:02,440
Speaker 3: other conversation. I think there needs to be quite a

797
00:38:02,440 --> 00:38:05,080
Speaker 3: big overhaul some of it, particularly that the middle class

798
00:38:05,280 --> 00:38:07,120
Speaker 3: welfare that goes out. There's this sense I feel like

799
00:38:07,120 --> 00:38:11,680
Speaker 3: we've bred entitlement, you know, through GFC and then the pandemic.

800
00:38:11,680 --> 00:38:15,400
Speaker 1: This sent majority of every situation depends on the system.

801
00:38:15,440 --> 00:38:17,000
Speaker 1: Two and a half many people get a pension.

802
00:38:17,080 --> 00:38:19,440
Speaker 3: Yeah, I would like to be able to just be

803
00:38:19,520 --> 00:38:21,560
Speaker 3: confident enough that we've got things sitting there.

804
00:38:21,600 --> 00:38:23,560
Speaker 2: But I will say that I think you're right. I

805
00:38:23,560 --> 00:38:25,160
Speaker 2: think in your twenties.

806
00:38:24,840 --> 00:38:28,120
Speaker 3: Or thirties, it seems like it's this sort of it's

807
00:38:28,120 --> 00:38:29,880
Speaker 3: not fake money, but because you don't get to see it,

808
00:38:29,920 --> 00:38:32,120
Speaker 3: touch it, feel it, it gets quarantined. You can't touch it

809
00:38:32,200 --> 00:38:34,239
Speaker 3: until you're back. When you're in your twenties, you feel

810
00:38:34,239 --> 00:38:36,440
Speaker 3: like you have to be a real old person. And

811
00:38:36,480 --> 00:38:38,320
Speaker 3: then you sort of, as you mentioned, you have kids,

812
00:38:38,400 --> 00:38:41,320
Speaker 3: you get focused on it, but you've got to raise children,

813
00:38:41,560 --> 00:38:43,879
Speaker 3: and you might then now be in a situation where

814
00:38:43,880 --> 00:38:46,520
Speaker 3: your kids are a bit older. You've got aging parents,

815
00:38:46,520 --> 00:38:49,640
Speaker 3: you need to look after them. The superannuation system, James,

816
00:38:49,640 --> 00:38:52,600
Speaker 3: I think it's actually quite complex. It's simple but complex

817
00:38:52,640 --> 00:38:54,080
Speaker 3: at the same time, it's not simple.

818
00:38:54,160 --> 00:38:57,680
Speaker 1: It's it's absolutely battery in its complexities, and it's full

819
00:38:57,680 --> 00:38:58,280
Speaker 1: of interns.

820
00:38:58,400 --> 00:39:01,359
Speaker 3: Yeah, there's some simple there's some simple things you can do,

821
00:39:01,440 --> 00:39:03,880
Speaker 3: but there's there's complexity of the system. And I think

822
00:39:03,920 --> 00:39:05,640
Speaker 3: because it just seems all too hard and we're all

823
00:39:05,640 --> 00:39:07,359
Speaker 3: too busy, then you just sort of push it in the.

824
00:39:07,880 --> 00:39:10,719
Speaker 1: Yes it's too hard basket. But as you say, yeah,

825
00:39:11,080 --> 00:39:13,239
Speaker 1: and certainly I think the irony is, of course, if

826
00:39:13,239 --> 00:39:16,879
Speaker 1: you certainly get interested in fifty five. I don't want

827
00:39:16,880 --> 00:39:19,640
Speaker 1: to say it's too late, but it's there is a

828
00:39:19,719 --> 00:39:22,799
Speaker 1: danger that it's too late, because it's all about compounding

829
00:39:22,880 --> 00:39:25,000
Speaker 1: and it's all about it's all about starting early. And

830
00:39:25,040 --> 00:39:27,120
Speaker 1: that's one thing about the compulsitory system, which I by

831
00:39:27,120 --> 00:39:28,880
Speaker 1: the way, I think twelve percent is too high, but

832
00:39:29,040 --> 00:39:32,200
Speaker 1: because everyone must buy law, I do, yes, Why do

833
00:39:32,200 --> 00:39:34,400
Speaker 1: you think it's too hot? I think at that point

834
00:39:34,480 --> 00:39:40,279
Speaker 1: we are getting to a level where people should have

835
00:39:40,320 --> 00:39:44,360
Speaker 1: more control of their own money. I think a compulsory

836
00:39:44,400 --> 00:39:47,279
Speaker 1: system was good. I thought it was useful. I think

837
00:39:47,280 --> 00:39:49,919
Speaker 1: it's climb too high at this stage. There's no way

838
00:39:49,920 --> 00:39:52,200
Speaker 1: it should go any higher than this. There's still you know,

839
00:39:52,200 --> 00:39:54,280
Speaker 1: there's still talk it was supposed to go to fifteen

840
00:39:54,320 --> 00:39:56,719
Speaker 1: percent in the area and it's not. You know, I

841
00:39:56,719 --> 00:39:59,399
Speaker 1: think in some ways there's all sorts of other things

842
00:39:59,520 --> 00:40:02,920
Speaker 1: around it, that there are other issues that people should

843
00:40:02,920 --> 00:40:04,880
Speaker 1: be able to spend their money on. Well, there's an

844
00:40:04,880 --> 00:40:07,319
Speaker 1: element of sort of patriarchal sort of thing here. You know,

845
00:40:07,560 --> 00:40:10,480
Speaker 1: we know what's good for you, but it is actually

846
00:40:10,520 --> 00:40:12,360
Speaker 1: their money.

847
00:40:12,400 --> 00:40:14,799
Speaker 3: It's more the what you want is these nest eggs

848
00:40:14,840 --> 00:40:16,080
Speaker 3: at the end, right, you want to make sure that

849
00:40:16,080 --> 00:40:17,040
Speaker 3: we have enough money?

850
00:40:17,239 --> 00:40:18,359
Speaker 1: Yes, at the end?

851
00:40:19,480 --> 00:40:20,400
Speaker 2: Gosh, where do we go?

852
00:40:20,440 --> 00:40:22,200
Speaker 3: And all these conversations. I think there needs to also

853
00:40:22,360 --> 00:40:24,400
Speaker 3: just be an overhaul of the oversight of Super. I

854
00:40:24,400 --> 00:40:27,760
Speaker 3: think Super was set up as this retirement saving scheme

855
00:40:27,800 --> 00:40:29,600
Speaker 3: and now it's what is it, four point two trillion

856
00:40:29,640 --> 00:40:30,880
Speaker 3: dollars under management?

857
00:40:30,960 --> 00:40:33,120
Speaker 1: That's right, with no regulator.

858
00:40:32,680 --> 00:40:35,200
Speaker 3: We've seen the collapse of first Guardian and Shield and

859
00:40:35,239 --> 00:40:37,200
Speaker 3: I honestly the pits of my stomach that's not going

860
00:40:37,280 --> 00:40:39,640
Speaker 3: to be the last. And less governments and regulators start

861
00:40:39,680 --> 00:40:41,840
Speaker 3: to really pay closer attention.

862
00:40:41,920 --> 00:40:43,880
Speaker 1: There are the falling over each other. But the problem

863
00:40:43,960 --> 00:40:46,719
Speaker 1: is there isn't actually someone, There is no single regulator

864
00:40:46,880 --> 00:40:49,319
Speaker 1: charge with watching super and it's a four trillion dollar

865
00:40:49,400 --> 00:40:51,040
Speaker 1: system anyway, So we digress.

866
00:40:51,080 --> 00:40:54,520
Speaker 2: But so let's go back to I'm not in my fifties. Yeah,

867
00:40:55,280 --> 00:40:56,160
Speaker 2: thank you for noticing.

868
00:40:58,160 --> 00:40:59,080
Speaker 1: So what's look at you?

869
00:40:59,440 --> 00:41:03,080
Speaker 3: So now now that I think, now that I'm thoroughly engaged,

870
00:41:03,719 --> 00:41:06,240
Speaker 3: what should I be doing then with my super?

871
00:41:07,960 --> 00:41:10,600
Speaker 1: Well, I really do think you should. Well, first of all,

872
00:41:10,600 --> 00:41:14,839
Speaker 1: make off your mind how you want to live when

873
00:41:14,840 --> 00:41:17,320
Speaker 1: you're older. Are you happy? You don't have to do anything?

874
00:41:17,360 --> 00:41:20,160
Speaker 1: You can just you can have a government pension if

875
00:41:20,160 --> 00:41:24,440
Speaker 1: you want it, I know, but it's there. So I

876
00:41:24,480 --> 00:41:26,200
Speaker 1: think about how much should you have in super? Well,

877
00:41:26,239 --> 00:41:27,640
Speaker 1: actually you don't have to have anything, right as a

878
00:41:27,640 --> 00:41:30,640
Speaker 1: government pension that's not enough for most people. After that,

879
00:41:30,680 --> 00:41:33,480
Speaker 1: then it's a question of how much do you want?

880
00:41:33,760 --> 00:41:36,919
Speaker 1: I mean, I say, the twelve percent is I think

881
00:41:36,960 --> 00:41:40,080
Speaker 1: the limit really on compulsory super. But having said that,

882
00:41:40,160 --> 00:41:44,920
Speaker 1: I would have always contributed over and above the mandatory

883
00:41:45,040 --> 00:41:47,520
Speaker 1: level because personally I wanted to have as much SUPER

884
00:41:47,560 --> 00:41:49,640
Speaker 1: as possible in my.

885
00:41:50,200 --> 00:41:52,560
Speaker 3: So now that makes more sense to me because I

886
00:41:52,560 --> 00:41:54,279
Speaker 3: thought you were sort of advocating that we don't need

887
00:41:54,320 --> 00:41:56,000
Speaker 3: to be saving as much as we did. It's more

888
00:41:56,080 --> 00:41:58,200
Speaker 3: for you about the context. So it's like you should

889
00:41:58,239 --> 00:41:59,880
Speaker 3: be in control of your money and where you're investing.

890
00:42:00,040 --> 00:42:04,799
Speaker 1: Actually that's me. And again that was part of the

891
00:42:04,840 --> 00:42:07,719
Speaker 1: thing with the South managed super fund for me. And

892
00:42:07,800 --> 00:42:09,880
Speaker 1: I started it in two o six and I started

893
00:42:09,880 --> 00:42:13,680
Speaker 1: it with sixty thousand dollars, which is approximately one fifth

894
00:42:13,680 --> 00:42:16,640
Speaker 1: of the amount I would recommend that you start super

895
00:42:16,680 --> 00:42:21,080
Speaker 1: Fun with today. How about that? Yeah, so there you

896
00:42:21,160 --> 00:42:23,799
Speaker 1: are the confidence of it, which is the confidence of

897
00:42:23,840 --> 00:42:26,840
Speaker 1: youth personally. I set it up because we were setting

898
00:42:26,920 --> 00:42:30,560
Speaker 1: up a startup which was called Eureka Report, which you

899
00:42:30,560 --> 00:42:34,359
Speaker 1: sit around and it was all about, well, the core

900
00:42:34,400 --> 00:42:36,719
Speaker 1: of it was about self managed super funds for them,

901
00:42:37,000 --> 00:42:38,919
Speaker 1: and I thought, if you're going to have a job

902
00:42:39,040 --> 00:42:42,719
Speaker 1: like running a publication based on that, you should walk

903
00:42:42,719 --> 00:42:45,359
Speaker 1: the talk. And so I started once so I could

904
00:42:45,440 --> 00:42:48,040
Speaker 1: learn it and really know what it was when I

905
00:42:48,040 --> 00:42:50,319
Speaker 1: wrote about it and that sort of thing, and that's

906
00:42:50,360 --> 00:42:52,880
Speaker 1: why I did it. I had actually been involved in

907
00:42:52,880 --> 00:42:55,960
Speaker 1: Big super I had actually been on the Fairfax super

908
00:42:55,960 --> 00:43:00,239
Speaker 1: Fun board as a employee representative when I was a

909
00:43:00,239 --> 00:43:04,840
Speaker 1: little baby reporter on BRW, I suppose it was. That

910
00:43:04,960 --> 00:43:08,120
Speaker 1: was very interesting. It was really interesting to see how

911
00:43:08,120 --> 00:43:11,200
Speaker 1: big super works. Yeah, and I learned a lot, and

912
00:43:11,280 --> 00:43:12,880
Speaker 1: I learned a lot of its failings.

913
00:43:13,800 --> 00:43:15,760
Speaker 3: Is the only reason I mean a big super fund

914
00:43:15,880 --> 00:43:17,920
Speaker 3: is so I wanted to find a financial planner that

915
00:43:18,160 --> 00:43:19,920
Speaker 3: was going to be fefa service. So I remember at

916
00:43:19,920 --> 00:43:21,680
Speaker 3: the time, it was sort of two thousand dollars paid

917
00:43:21,760 --> 00:43:23,120
Speaker 3: for someone to do that because I didn't want to

918
00:43:23,120 --> 00:43:24,759
Speaker 3: be tipped into all these products because they were getting

919
00:43:24,800 --> 00:43:28,239
Speaker 3: kickbacks and this. And we got this financial plan done up,

920
00:43:28,280 --> 00:43:31,040
Speaker 3: and this advisor said, this fund will be a good

921
00:43:31,040 --> 00:43:32,759
Speaker 3: fund for you with all the growth. You know, I'm

922
00:43:32,760 --> 00:43:35,640
Speaker 3: paying someone for the advice. Great, and we set it

923
00:43:35,680 --> 00:43:38,560
Speaker 3: all up and I have done nothing else.

924
00:43:40,680 --> 00:43:42,480
Speaker 1: I was wondering where you're going to say that. I

925
00:43:42,520 --> 00:43:45,680
Speaker 1: wonder how often that happens. People go into planners, they

926
00:43:45,680 --> 00:43:47,680
Speaker 1: spend thousands, and they get in on the documents, they

927
00:43:47,719 --> 00:43:49,959
Speaker 1: stick them in the drawer and go, yeah, we really

928
00:43:49,960 --> 00:43:50,680
Speaker 1: should do that.

929
00:43:51,960 --> 00:43:53,160
Speaker 2: It's on a USB stick.

930
00:43:53,200 --> 00:43:55,719
Speaker 3: Then the insurances were connected to it. It always you know,

931
00:43:55,760 --> 00:43:58,840
Speaker 3: it was very thorough at the time. Yeah, and then

932
00:43:59,200 --> 00:44:02,200
Speaker 3: you know, we you know, we got on with life,

933
00:44:02,320 --> 00:44:04,960
Speaker 3: we were on this journey. Then you know we're going

934
00:44:05,000 --> 00:44:07,360
Speaker 3: on IVF journey and so that if you want to

935
00:44:07,360 --> 00:44:07,880
Speaker 3: know where to go.

936
00:44:07,920 --> 00:44:09,839
Speaker 2: And so this is what I'm trying to say.

937
00:44:10,080 --> 00:44:12,120
Speaker 3: Why I think it's really exciting that we've set up

938
00:44:12,120 --> 00:44:14,040
Speaker 3: the world vertical is I think there's a lot of

939
00:44:14,080 --> 00:44:17,319
Speaker 3: people who are in a similar situation where life just

940
00:44:17,400 --> 00:44:20,239
Speaker 3: gets hectic and chaotic and busy, and you try your

941
00:44:20,239 --> 00:44:23,080
Speaker 3: best and you set things up, and then there's there's

942
00:44:23,080 --> 00:44:25,759
Speaker 3: timeshe we think, Okay, I probably need to smarten up here,

943
00:44:25,880 --> 00:44:27,680
Speaker 3: probably need to pay more attention to this.

944
00:44:28,000 --> 00:44:29,399
Speaker 2: As you mentioned, James.

945
00:44:29,040 --> 00:44:31,040
Speaker 3: Like, it's about what you want into the future, and

946
00:44:31,080 --> 00:44:34,040
Speaker 3: I would like to have a really lovely retirement or.

947
00:44:34,320 --> 00:44:35,320
Speaker 2: Even if I'm not retiring.

948
00:44:35,360 --> 00:44:36,920
Speaker 3: So I do say to people one of the lessons

949
00:44:36,960 --> 00:44:39,960
Speaker 3: I have from the rich list is I don't really retire.

950
00:44:40,080 --> 00:44:43,280
Speaker 3: There's lots of people who could have retired very early

951
00:44:43,840 --> 00:44:45,919
Speaker 3: and they don't. They found their passion and they work

952
00:44:45,920 --> 00:44:47,719
Speaker 3: and all those sorts of things. So it's not necessarily

953
00:44:47,800 --> 00:44:50,839
Speaker 3: about not working, but it's also working because you want

954
00:44:50,840 --> 00:44:52,600
Speaker 3: to or you've got passions and those sorts of things.

955
00:44:52,600 --> 00:44:55,359
Speaker 3: And being financially independent. I think that's at the core.

956
00:44:55,560 --> 00:44:57,719
Speaker 1: That's terrific and I think that's what it's all about.

957
00:44:57,760 --> 00:45:00,160
Speaker 1: That's what that verticul is all about. And folks, that's

958
00:45:00,200 --> 00:45:02,120
Speaker 1: what the show is all about. The money puzzle. You know,

959
00:45:02,400 --> 00:45:05,840
Speaker 1: Julian was talking about advice and by the way, get advice.

960
00:45:05,960 --> 00:45:09,120
Speaker 1: Of course, get advice. Here's the thing. It costs on

961
00:45:09,239 --> 00:45:11,399
Speaker 1: average three to four thousand dollars a year to get

962
00:45:11,400 --> 00:45:13,960
Speaker 1: financial advice in Australia, and that is, by the way,

963
00:45:14,000 --> 00:45:17,920
Speaker 1: a minimum figure because the number of advisors is shrinking rapidly.

964
00:45:18,239 --> 00:45:21,160
Speaker 1: I mean there's only half the number there was ten

965
00:45:21,239 --> 00:45:23,520
Speaker 1: years ago in the market. The point I'm making is

966
00:45:23,560 --> 00:45:28,040
Speaker 1: that this show exists for you, and the people on

967
00:45:28,080 --> 00:45:32,319
Speaker 1: this show are talking to me and talking to you

968
00:45:32,560 --> 00:45:37,200
Speaker 1: through me on all aspects of investing and the listener

969
00:45:37,320 --> 00:45:40,279
Speaker 1: questions we do every week. I get top advisors in

970
00:45:40,400 --> 00:45:43,319
Speaker 1: to answer those questions. That's what the show is all about.

971
00:45:43,360 --> 00:45:46,560
Speaker 1: It's about you and where you're going. And this article

972
00:45:46,600 --> 00:45:49,399
Speaker 1: will be very much in the same area. And I'm

973
00:45:49,400 --> 00:45:51,440
Speaker 1: hoping that if you do listen to the show, come

974
00:45:51,480 --> 00:45:53,840
Speaker 1: and have a look at the vertical on the Australian.

975
00:45:53,920 --> 00:45:56,759
Speaker 1: It launches today. It's something that has never been tried

976
00:45:56,880 --> 00:45:59,440
Speaker 1: on the Australian or across financial media, and I think

977
00:45:59,440 --> 00:46:02,239
Speaker 1: it's going to be really useful. All right. I think

978
00:46:02,320 --> 00:46:03,840
Speaker 1: we might leave it there, Julia, and great to have

979
00:46:03,880 --> 00:46:04,520
Speaker 1: you on the show.

980
00:46:05,680 --> 00:46:08,000
Speaker 2: Okay, So I've got a laundry list here, so I

981
00:46:08,040 --> 00:46:11,040
Speaker 2: need to go and fix up my super work on

982
00:46:11,080 --> 00:46:15,320
Speaker 2: an investment property, probably build that share portfolio.

983
00:46:15,800 --> 00:46:18,200
Speaker 3: Look, I think maybe in the journey, maybe I'm gonna

984
00:46:18,200 --> 00:46:20,680
Speaker 3: have to do you know, the juliannesparrag diaries or something

985
00:46:20,800 --> 00:46:23,240
Speaker 3: like that, like things that I've just learned from starting

986
00:46:23,280 --> 00:46:26,840
Speaker 3: here and being focused more on the personal side of wealth.

987
00:46:26,880 --> 00:46:27,400
Speaker 2: As you mentioned.

988
00:46:27,400 --> 00:46:29,600
Speaker 3: So we've both been financed journals for the really long

989
00:46:29,640 --> 00:46:30,120
Speaker 3: period time.

990
00:46:30,320 --> 00:46:31,120
Speaker 2: You know this stuff.

991
00:46:31,160 --> 00:46:33,520
Speaker 3: But you know better than the mechanic with the broken

992
00:46:33,560 --> 00:46:34,839
Speaker 3: down car. You know I've got.

993
00:46:35,280 --> 00:46:37,759
Speaker 1: The trick is to get started, isn't it. The trick

994
00:46:37,840 --> 00:46:41,640
Speaker 1: is to get started, all right? Terrific. Now, folks, keep

995
00:46:41,680 --> 00:46:45,200
Speaker 1: those emails rolling, love to see them. And as I said,

996
00:46:45,239 --> 00:46:47,800
Speaker 1: if you're sending in a question, send in two or

997
00:46:47,800 --> 00:46:49,759
Speaker 1: three at the same time. I love to see a

998
00:46:49,840 --> 00:46:52,320
Speaker 1: couple of questions from the same listener. It makes a

999
00:46:52,360 --> 00:46:55,200
Speaker 1: lot of sense. It's very efficient as well. The email

1000
00:46:55,320 --> 00:46:58,400
Speaker 1: is the money puzzle at the Australian dot com dot

1001
00:46:58,440 --> 00:46:59,640
Speaker 1: au talk to you soon.

1002
00:47:01,840 --> 00:47:07,279
Speaker 3: Only the fellnd sap of the wood s