1 00:00:05,600 --> 00:00:08,480 Speaker 1: Welcome to Fear and Greed, summer investing series brought to 2 00:00:08,520 --> 00:00:11,920 Speaker 1: you by VANTA specialists in Compliance lead Growth. I'm Sean Almer. 3 00:00:12,360 --> 00:00:15,160 Speaker 1: It's the new year, the perfect time to make some resolutions, 4 00:00:15,160 --> 00:00:17,520 Speaker 1: and maybe one of those should be to get your 5 00:00:17,560 --> 00:00:21,160 Speaker 1: superannuation working for you. To help with that, today we're 6 00:00:21,160 --> 00:00:23,600 Speaker 1: looking at the five tips to sort out your super 7 00:00:23,680 --> 00:00:26,600 Speaker 1: in twenty twenty five. As always, this is general information 8 00:00:26,640 --> 00:00:30,200 Speaker 1: only and you should seek independent advice before making investment decisions. 9 00:00:30,440 --> 00:00:33,720 Speaker 1: Chris Braich is the founder and CEO of online investment 10 00:00:33,760 --> 00:00:36,760 Speaker 1: advisor stock Spot. Chris, welcome back to Fear and Greed. 11 00:00:37,320 --> 00:00:38,640 Speaker 2: Thanks Sean, great to be back. 12 00:00:39,280 --> 00:00:42,960 Speaker 1: Five things to do to make your super work for you. 13 00:00:43,120 --> 00:00:46,240 Speaker 2: Number one, well, obviously, Sean, super is such an important 14 00:00:46,240 --> 00:00:47,839 Speaker 2: thing to get right in the first thing I think 15 00:00:47,880 --> 00:00:50,000 Speaker 2: everyone needs to look at is their mix of assets 16 00:00:50,040 --> 00:00:52,879 Speaker 2: in their super. So, in a very simple sense, when 17 00:00:52,920 --> 00:00:55,920 Speaker 2: you're in your twenties and thirties and forties, times at 18 00:00:55,920 --> 00:00:58,320 Speaker 2: your advantage, you've got plenty of time, you've got decades 19 00:00:58,360 --> 00:01:01,040 Speaker 2: before retirement, and you need to have a bigger allocation 20 00:01:01,120 --> 00:01:04,520 Speaker 2: to growth assets in your portfolio. So we recommend our 21 00:01:04,560 --> 00:01:08,039 Speaker 2: clients invest in an aggressive growth or growth style portfolio 22 00:01:08,560 --> 00:01:11,360 Speaker 2: which has somewhere between seventy to ninety percent of growth 23 00:01:11,360 --> 00:01:14,200 Speaker 2: assets during those years. Then as you move into your 24 00:01:14,240 --> 00:01:17,160 Speaker 2: fifties and sixties, your strategy needs to evolve and become 25 00:01:17,200 --> 00:01:19,600 Speaker 2: a little bit more conservative. You might not have as 26 00:01:19,680 --> 00:01:22,560 Speaker 2: much time to come back from a big downturn in 27 00:01:22,600 --> 00:01:25,080 Speaker 2: the market, so we generally recommend a more balanced or 28 00:01:25,120 --> 00:01:28,759 Speaker 2: conservative approach somewhere between fifty to eighty percent of growth 29 00:01:28,800 --> 00:01:31,320 Speaker 2: assets we think makes more sense in that time. And 30 00:01:31,360 --> 00:01:34,000 Speaker 2: then once you reach your mid sixties, you know, really 31 00:01:34,040 --> 00:01:37,000 Speaker 2: you need to start to think about having a portfolio 32 00:01:37,080 --> 00:01:39,960 Speaker 2: that's going to be able to be robust in different environments, 33 00:01:40,480 --> 00:01:42,680 Speaker 2: distribute income which you're going to need to live off, 34 00:01:42,880 --> 00:01:45,440 Speaker 2: and therefore a conservative strategy that a lot of people 35 00:01:45,480 --> 00:01:49,080 Speaker 2: make sense. So asset mix is number one. The second 36 00:01:49,080 --> 00:01:52,040 Speaker 2: tip I have is really understanding where you're invested and 37 00:01:52,080 --> 00:01:55,000 Speaker 2: making sure it's aligned with what you believe in your values. 38 00:01:55,040 --> 00:01:57,200 Speaker 2: And that sort of plays out in a few ways. 39 00:01:57,360 --> 00:02:00,760 Speaker 2: So one is, you know, some people believe in act investing, 40 00:02:00,880 --> 00:02:04,800 Speaker 2: so you know, picking stocks, picking investments and assets and 41 00:02:04,880 --> 00:02:07,760 Speaker 2: venture capital, and picking when you're going to buy and sell. 42 00:02:08,040 --> 00:02:10,320 Speaker 2: And then there's other people that believe in passive investing 43 00:02:10,480 --> 00:02:12,720 Speaker 2: just buying and holding the market over the long run, 44 00:02:12,840 --> 00:02:15,200 Speaker 2: and different super funds believe in one or the other. 45 00:02:15,800 --> 00:02:18,760 Speaker 2: For instance, in our stock Spot superproduct, we're very much 46 00:02:18,960 --> 00:02:22,560 Speaker 2: advocating passive investing because we believe it's the better and 47 00:02:22,600 --> 00:02:25,480 Speaker 2: more sensible long term approach for most people. But then 48 00:02:25,520 --> 00:02:27,760 Speaker 2: there's other factors to consider, like do you want a 49 00:02:27,760 --> 00:02:32,040 Speaker 2: portfolio that's more ESG focused and sustainable focused, which has 50 00:02:32,120 --> 00:02:34,640 Speaker 2: certainly been a hot topic over the last five or 51 00:02:34,639 --> 00:02:37,720 Speaker 2: ten years. So understand where the money's invested is number two. 52 00:02:38,520 --> 00:02:40,400 Speaker 2: Third one is one that comes up every year for 53 00:02:40,480 --> 00:02:44,000 Speaker 2: us in our FatCat research, which is understand your fees. 54 00:02:44,639 --> 00:02:48,680 Speaker 2: So most people, I don't believe appreciate that small changes 55 00:02:48,680 --> 00:02:51,239 Speaker 2: in your fees can have an enormous impact on your 56 00:02:51,280 --> 00:02:55,080 Speaker 2: final outcome. And even paying as little as what sounds 57 00:02:55,120 --> 00:02:57,000 Speaker 2: as little as one and a half percent per year 58 00:02:57,360 --> 00:03:00,520 Speaker 2: could eat somewhere between two to three hundred thousand dollars 59 00:03:00,560 --> 00:03:02,760 Speaker 2: out of how much money you have at the end. 60 00:03:03,320 --> 00:03:05,960 Speaker 2: So keeping your fees well below one percent a year 61 00:03:06,080 --> 00:03:08,480 Speaker 2: is our tip to clients. If you're paying any more 62 00:03:08,480 --> 00:03:10,560 Speaker 2: than that, then more of your super is going to 63 00:03:10,600 --> 00:03:13,280 Speaker 2: land in the pockets of your fund managers and your 64 00:03:13,840 --> 00:03:17,480 Speaker 2: super fund. It's going to help them fund sponsoring sports 65 00:03:17,520 --> 00:03:20,400 Speaker 2: teams and buying boxes at the tennis but probably not 66 00:03:20,400 --> 00:03:22,880 Speaker 2: going to help your retirement, so keep those fees low. 67 00:03:23,680 --> 00:03:26,639 Speaker 2: Number four is insurance. So for a lot of people, 68 00:03:26,680 --> 00:03:29,600 Speaker 2: insurance is a good thing to consider within super. You 69 00:03:29,639 --> 00:03:32,720 Speaker 2: certainly get some tax benefits within super, but it's not 70 00:03:32,800 --> 00:03:35,920 Speaker 2: needed for everyone. So consider where you are in your life. 71 00:03:36,080 --> 00:03:41,120 Speaker 2: Is insurance important? Life insurance, disability insurance, and income protection 72 00:03:41,160 --> 00:03:43,920 Speaker 2: are the main ones super funds offer, so really assess 73 00:03:44,000 --> 00:03:46,360 Speaker 2: whether you need that based on where you are with 74 00:03:46,400 --> 00:03:49,080 Speaker 2: your family, with your loved ones, and whether it's the 75 00:03:49,120 --> 00:03:51,640 Speaker 2: right time of life to have insurance. And then the 76 00:03:51,640 --> 00:03:54,160 Speaker 2: final tip I'd have Sean is if this is all 77 00:03:54,160 --> 00:03:56,560 Speaker 2: too confused, and consider whether you need to get advice. 78 00:03:56,720 --> 00:03:58,560 Speaker 2: I think a lot of people can manage their super 79 00:03:58,560 --> 00:04:01,680 Speaker 2: effectively on their own, but a lot of people also 80 00:04:01,760 --> 00:04:05,200 Speaker 2: feel more comfortable speaking to someone, whether it's a traditional 81 00:04:05,240 --> 00:04:09,360 Speaker 2: advisor or a digital robo advisor like we have at Stockspot. 82 00:04:09,640 --> 00:04:11,680 Speaker 2: Sometimes getting some advice can help as well. 83 00:04:12,120 --> 00:04:14,080 Speaker 1: Do many people get advised? I mean, super is something 84 00:04:14,160 --> 00:04:17,520 Speaker 1: we all have, but I'm leading a bit here, but 85 00:04:17,560 --> 00:04:19,720 Speaker 1: it amazes me how many people do not get advice 86 00:04:20,320 --> 00:04:22,240 Speaker 1: on an asset which is so important to them. 87 00:04:22,480 --> 00:04:25,200 Speaker 2: I think it's become less and less a fewer people 88 00:04:25,200 --> 00:04:28,360 Speaker 2: that are getting advice, mainly because fewer advisors are still 89 00:04:28,360 --> 00:04:31,360 Speaker 2: in the industry, Shawn. The advice industry shrunk from close 90 00:04:31,360 --> 00:04:34,800 Speaker 2: to thirty thousand advisors to closer to fifteen thousand over 91 00:04:34,839 --> 00:04:37,520 Speaker 2: the last ten years after the Royal Commission, so there's 92 00:04:37,600 --> 00:04:40,000 Speaker 2: just less advisors out there. Most of them will only 93 00:04:40,000 --> 00:04:42,080 Speaker 2: speak to you if you've got you at least half 94 00:04:42,120 --> 00:04:43,800 Speaker 2: a million, but some of them one or two million, 95 00:04:43,839 --> 00:04:46,800 Speaker 2: and which just really means that not many people have 96 00:04:46,880 --> 00:04:49,880 Speaker 2: access to advisors. You know. That's really where we're trying 97 00:04:49,880 --> 00:04:51,880 Speaker 2: to fit in by giving advice to people that even 98 00:04:51,920 --> 00:04:53,400 Speaker 2: have smaller balance. 99 00:04:53,040 --> 00:04:55,360 Speaker 1: Suber Chris, thanks for your time this morning. 100 00:04:55,640 --> 00:04:56,159 Speaker 2: Thanks Sean. 101 00:04:56,760 --> 00:05:00,000 Speaker 1: That's Chris Briikey, founder and CEO of online investment advisors 102 00:05:00,080 --> 00:05:02,880 Speaker 1: stock Spot. This is Fear and Greed Summer Investing series, 103 00:05:03,040 --> 00:05:06,720 Speaker 1: brought to you by Vanta. Van automates compliance for frameworks 104 00:05:06,800 --> 00:05:10,560 Speaker 1: like ISO twenty seven one, SoC two, CPS two three 105 00:05:10,600 --> 00:05:13,880 Speaker 1: four and Essential eight, saving time and money while building trust. 106 00:05:14,200 --> 00:05:17,640 Speaker 1: Join over eight thousand companies like Atlasian, Dovetail, and Fireant 107 00:05:17,640 --> 00:05:20,440 Speaker 1: managing real time risk. Get one thousand dollars off at 108 00:05:20,520 --> 00:05:23,720 Speaker 1: banter dot com. Slash fear and greed. I'm Sean Aelma. 109 00:05:24,040 --> 00:05:25,800 Speaker 1: Enjoy your day.