1 00:00:00,160 --> 00:00:02,680 Speaker 1: Who wants to retire on one hundred and five thousand 2 00:00:02,680 --> 00:00:06,519 Speaker 1: dollars per annum with the peace of mind and luxury, 3 00:00:06,920 --> 00:00:09,760 Speaker 1: knowing that that money is going to last in excess 4 00:00:09,880 --> 00:00:13,880 Speaker 1: of thirty years and also leave a multimillion dollar estate 5 00:00:14,080 --> 00:00:16,919 Speaker 1: to their loved ones. If this sounds of interest to you, 6 00:00:17,079 --> 00:00:20,599 Speaker 1: this is the perfect episode. So let's together right now 7 00:00:21,000 --> 00:00:24,720 Speaker 1: break down all the ideas, the strategies, the hacks, and 8 00:00:24,880 --> 00:00:27,440 Speaker 1: the loopholes so we can help make this happen to 9 00:00:27,520 --> 00:00:35,240 Speaker 1: the best of our ability. Welcome back, everyone to another 10 00:00:35,280 --> 00:00:38,680 Speaker 1: episode of Sugar Mama's Fireplay, and today we are picking 11 00:00:38,800 --> 00:00:42,320 Speaker 1: up from where we left last week, that is talking 12 00:00:42,360 --> 00:00:47,200 Speaker 1: about the importance of your superannuation. So the week before 13 00:00:47,360 --> 00:00:52,320 Speaker 1: last I spoke about the dangers of basing your financial 14 00:00:52,360 --> 00:00:57,000 Speaker 1: goals or basing your financial benchmarks on what the average 15 00:00:57,080 --> 00:01:00,480 Speaker 1: person has. So many times we will look at what 16 00:01:00,520 --> 00:01:04,240 Speaker 1: the average amount of money someone has in superannuation. The 17 00:01:04,280 --> 00:01:06,760 Speaker 1: media are often published and they think, oh, well, I've 18 00:01:06,760 --> 00:01:08,600 Speaker 1: got a bit more than that, so I'm doing okay. 19 00:01:08,680 --> 00:01:11,399 Speaker 1: But the problem is is those numbers are really low. 20 00:01:11,760 --> 00:01:15,480 Speaker 1: We are not putting enough money in our superannuation to 21 00:01:15,600 --> 00:01:19,320 Speaker 1: prepare ourselves for a long and luxurious retirement because we 22 00:01:19,360 --> 00:01:22,640 Speaker 1: are living longer and the cost of living is rising. 23 00:01:22,840 --> 00:01:25,640 Speaker 1: So I feel it's my responsibility to let you know 24 00:01:25,840 --> 00:01:31,640 Speaker 1: of this concern and to also give you as many ideas, strategies, hacks, insights, 25 00:01:31,680 --> 00:01:34,160 Speaker 1: and loopholes so that we can be ahead of the 26 00:01:34,200 --> 00:01:37,640 Speaker 1: game really and bridge this gap to the best of 27 00:01:37,760 --> 00:01:41,360 Speaker 1: our ability. So the week before last I mentioned that 28 00:01:41,920 --> 00:01:45,160 Speaker 1: in reality, we don't need six hundred thousand dollars in SUPER, 29 00:01:45,240 --> 00:01:47,319 Speaker 1: or eight hundred thousand dollars in SUPER, or even a 30 00:01:47,319 --> 00:01:50,000 Speaker 1: million dollars in SUPER if we want to be able 31 00:01:50,080 --> 00:01:53,240 Speaker 1: to retire on one hundred and five thousand dollars per animal, 32 00:01:53,320 --> 00:01:55,600 Speaker 1: or even just call it one hundred thousand dollars perannum. 33 00:01:55,960 --> 00:01:59,280 Speaker 1: We realistically need about one point eight five million dollars 34 00:01:59,320 --> 00:02:02,640 Speaker 1: in SUPER if we look to retire and have a 35 00:02:02,640 --> 00:02:06,240 Speaker 1: retirement the last about thirty years. Thinking about the average 36 00:02:06,240 --> 00:02:09,000 Speaker 1: person retiring at age sixty five and looking at the 37 00:02:09,520 --> 00:02:12,440 Speaker 1: life expectancy currently around the sort of eighty to eighty 38 00:02:12,480 --> 00:02:15,120 Speaker 1: five mark, but that obviously getting longer and longer with 39 00:02:15,280 --> 00:02:18,919 Speaker 1: medical technology and also all the amazing research and development 40 00:02:18,960 --> 00:02:22,000 Speaker 1: around longevity and quality of life, So we really do 41 00:02:22,080 --> 00:02:24,120 Speaker 1: need to be planning for a thirty year retirement in 42 00:02:24,160 --> 00:02:27,519 Speaker 1: my opinion, so I would rather you be over prepared 43 00:02:27,720 --> 00:02:30,880 Speaker 1: and have more money than you need than fall short 44 00:02:31,200 --> 00:02:35,799 Speaker 1: halfway through retirement or even sooner, because that is seriously frightening. 45 00:02:36,000 --> 00:02:38,359 Speaker 1: The week before last episode, I mentioned we need about 46 00:02:38,400 --> 00:02:40,919 Speaker 1: one point eight five up to two point two million 47 00:02:40,960 --> 00:02:44,320 Speaker 1: dollars in superinnuition, that is, And in last week's episode, 48 00:02:44,400 --> 00:02:47,280 Speaker 1: I spoke about the idea of actually how to get 49 00:02:47,280 --> 00:02:50,080 Speaker 1: to one point eight five million dollars, and I shared 50 00:02:50,120 --> 00:02:53,200 Speaker 1: two very simple strategies, that is, salary sacrificing and making 51 00:02:53,280 --> 00:02:56,680 Speaker 1: an after tax contribution, which gets you almost three quarters 52 00:02:56,720 --> 00:02:58,639 Speaker 1: of the way there, and then I gave you ten 53 00:02:58,840 --> 00:03:02,680 Speaker 1: amazing ideas to help bridge that gap even further. And 54 00:03:02,720 --> 00:03:05,720 Speaker 1: of course it's very subjective. Everyone's in a very different situation, 55 00:03:06,520 --> 00:03:09,280 Speaker 1: but one of those ideas, or maybe all of those 56 00:03:09,320 --> 00:03:13,800 Speaker 1: ideas can really help make a difference. And never underestimate 57 00:03:13,919 --> 00:03:16,160 Speaker 1: the power of those small little things like you know, 58 00:03:16,200 --> 00:03:19,040 Speaker 1: the co contribution or spouse contribution, because they really do 59 00:03:19,480 --> 00:03:23,120 Speaker 1: at up, particularly when you start earlier, and you do 60 00:03:23,200 --> 00:03:26,880 Speaker 1: this every single year and you remain committed and dedicated 61 00:03:27,200 --> 00:03:30,280 Speaker 1: to making sure your superannuation is on the top of 62 00:03:30,320 --> 00:03:32,919 Speaker 1: your list when it comes to your financial priorities. So 63 00:03:33,080 --> 00:03:36,640 Speaker 1: today I want to move to the next benchmark, a 64 00:03:36,680 --> 00:03:39,160 Speaker 1: healthier benchmark, and that is to look at how do 65 00:03:39,240 --> 00:03:43,960 Speaker 1: we build a two point two million dollars superannuation investment portfolio. Now, 66 00:03:44,000 --> 00:03:47,840 Speaker 1: before I jump into this strategy, this idea, this concept, 67 00:03:48,400 --> 00:03:50,480 Speaker 1: I want to remind you that that one hundred and 68 00:03:50,560 --> 00:03:55,200 Speaker 1: five thousand dollars per annum is in today's dollars, So 69 00:03:55,360 --> 00:03:58,760 Speaker 1: remember it is not going to buy you the same 70 00:03:58,880 --> 00:04:00,840 Speaker 1: as what it does today is that one hundred and 71 00:04:00,840 --> 00:04:04,720 Speaker 1: five thousand dollars. It's also important that you keep into 72 00:04:04,760 --> 00:04:07,800 Speaker 1: mind current legislation. At the moment when you retire and 73 00:04:07,840 --> 00:04:11,720 Speaker 1: you draw an allocated pension, that money is tax free. 74 00:04:12,120 --> 00:04:14,680 Speaker 1: That may change in the future. So this is why 75 00:04:14,720 --> 00:04:17,520 Speaker 1: it's so valuable and important to have a financial planner 76 00:04:17,720 --> 00:04:20,520 Speaker 1: watching over your strategy. So you need to keep in 77 00:04:20,560 --> 00:04:23,520 Speaker 1: mind inflation and you need to keep in change legislation, 78 00:04:23,640 --> 00:04:28,560 Speaker 1: particularly around tax Also, this strategy does not include my 79 00:04:28,680 --> 00:04:31,800 Speaker 1: two year sleep world strategy, which is where you have 80 00:04:31,920 --> 00:04:35,240 Speaker 1: two years worth of living expenses sitting in cash for 81 00:04:35,279 --> 00:04:39,039 Speaker 1: any market corrections, So please keep that in mind. And 82 00:04:39,120 --> 00:04:41,279 Speaker 1: you might want to maybe set up a regular savings 83 00:04:41,320 --> 00:04:43,000 Speaker 1: plan on top of this shuduition. 84 00:04:43,160 --> 00:04:43,960 Speaker 2: Of course, grab a. 85 00:04:43,880 --> 00:04:45,680 Speaker 1: Copy of Mind for Money if you want to learn 86 00:04:45,720 --> 00:04:48,800 Speaker 1: more about this particular strategy. But as always, you know 87 00:04:48,880 --> 00:04:51,840 Speaker 1: that my content is general in nature, but please use 88 00:04:51,880 --> 00:04:54,719 Speaker 1: this as a guide. And as you know from last 89 00:04:54,760 --> 00:04:57,359 Speaker 1: week's episode in the week episode before that once you 90 00:04:57,400 --> 00:05:00,320 Speaker 1: put money into superannuation, you can't get it out until 91 00:05:00,320 --> 00:05:04,600 Speaker 1: you meet a condition of release. So get professional advice 92 00:05:04,800 --> 00:05:09,000 Speaker 1: before you make any major decisions. And please know that 93 00:05:09,080 --> 00:05:14,360 Speaker 1: superinnuation is a long term game plant, but an incredibly important, 94 00:05:14,640 --> 00:05:18,000 Speaker 1: valuable one. All right, let's get started. So we're going 95 00:05:18,040 --> 00:05:21,320 Speaker 1: to continue on with our hypothetical example, which is based 96 00:05:21,320 --> 00:05:24,960 Speaker 1: around the average superannuation balance of a forty five year old, 97 00:05:25,080 --> 00:05:27,919 Speaker 1: that being one hundred and ninety seven five hundred dollars 98 00:05:27,960 --> 00:05:31,520 Speaker 1: in superannuation earning a net return of seven point five 99 00:05:31,560 --> 00:05:34,359 Speaker 1: percent per annum. And they're earning, as I said, one 100 00:05:34,440 --> 00:05:36,719 Speaker 1: hundred and fifty thousand dollars per anum with the current 101 00:05:36,839 --> 00:05:41,160 Speaker 1: super guarantee contributions presently at eleven and a half percent 102 00:05:41,320 --> 00:05:44,240 Speaker 1: per anum. Now, as mentioned in the last week's episode, 103 00:05:44,320 --> 00:05:46,200 Speaker 1: if you were to do nothing at all, and you 104 00:05:46,240 --> 00:05:49,480 Speaker 1: are sitting in this like average position. I don't mean 105 00:05:49,480 --> 00:05:52,520 Speaker 1: that in a degrading or demeaning or patronizing way at all. 106 00:05:52,720 --> 00:05:55,279 Speaker 1: That would mean that you have an approximately eight hundred 107 00:05:55,320 --> 00:05:58,200 Speaker 1: and ninety seven thousand dollars in super by the time 108 00:05:58,240 --> 00:06:01,080 Speaker 1: you reach a sixty five, assuming that you don't do 109 00:06:01,120 --> 00:06:04,560 Speaker 1: any salary, any satire sacrificing, you don't make any after 110 00:06:04,640 --> 00:06:07,320 Speaker 1: tax contributions. You just kind of like continue on coasting 111 00:06:07,400 --> 00:06:10,120 Speaker 1: through life. And that's also assuming that there are no 112 00:06:10,240 --> 00:06:12,919 Speaker 1: pay rises in your life, which are obviously highly unlikely. 113 00:06:13,880 --> 00:06:17,000 Speaker 1: And of course I should also admit it also assumes 114 00:06:17,040 --> 00:06:18,839 Speaker 1: that you never stop working, so you don't take time 115 00:06:18,839 --> 00:06:22,080 Speaker 1: out of the workforce to raise children or switch to 116 00:06:22,080 --> 00:06:25,280 Speaker 1: part time works. It's these projections as a guide are 117 00:06:25,279 --> 00:06:28,560 Speaker 1: based on you working full time, NonStop. Now, as we 118 00:06:28,800 --> 00:06:31,840 Speaker 1: spoke about last week, Yes, eight hundred and ninety seven 119 00:06:31,839 --> 00:06:34,719 Speaker 1: thousand dollars in superinnoation is a huge amount of money. 120 00:06:34,760 --> 00:06:38,760 Speaker 1: But let's be real and let's break it down. If 121 00:06:38,800 --> 00:06:41,400 Speaker 1: you plan to live off one hundred and five thousand 122 00:06:41,400 --> 00:06:45,720 Speaker 1: dollars for retirement, even with a net return of six 123 00:06:45,760 --> 00:06:49,000 Speaker 1: and a half percent during retirement. That money is going 124 00:06:49,040 --> 00:06:52,560 Speaker 1: to pretty much run out around between ten to eleven 125 00:06:52,640 --> 00:06:56,520 Speaker 1: years into retirement, and that will leave you with no money, 126 00:06:56,640 --> 00:06:59,520 Speaker 1: no more money and superannuation and either having to rely 127 00:06:59,680 --> 00:07:03,400 Speaker 1: on a government pension or having to liquidate other assets 128 00:07:03,400 --> 00:07:07,120 Speaker 1: such as downsizing homes or selling off other investment assets 129 00:07:07,200 --> 00:07:10,600 Speaker 1: or even lifestyle assets that you may have accumulated during 130 00:07:10,600 --> 00:07:14,280 Speaker 1: all lifetime to help fund the remainder of your retirement gap, 131 00:07:14,280 --> 00:07:16,680 Speaker 1: which could be you know, another twenty years in So 132 00:07:16,720 --> 00:07:18,720 Speaker 1: this is why it is so important that you take 133 00:07:18,760 --> 00:07:22,720 Speaker 1: your superannuation seriously, sooner rather than later. So today we're 134 00:07:22,760 --> 00:07:27,720 Speaker 1: aiming for a two point two million dollar superannuation investment portfolio. 135 00:07:27,760 --> 00:07:29,320 Speaker 1: And you'll notice that I don't just call it a 136 00:07:29,320 --> 00:07:31,360 Speaker 1: super portfolio, a supercount. 137 00:07:31,640 --> 00:07:32,360 Speaker 2: No, it's not. 138 00:07:32,600 --> 00:07:36,200 Speaker 1: Your superannuation is actually an investment portfolio. It's just locked 139 00:07:36,280 --> 00:07:40,440 Speaker 1: up away here from our potential destruction and temptation to 140 00:07:40,520 --> 00:07:43,440 Speaker 1: blow it. So it actually, I think is a blessing 141 00:07:43,480 --> 00:07:46,440 Speaker 1: disguise that we can't access it. That the government yes 142 00:07:46,560 --> 00:07:50,280 Speaker 1: does have some control, but that control is for our benefit, 143 00:07:50,400 --> 00:07:53,080 Speaker 1: our long term benefit. As I mentioned that two point 144 00:07:53,080 --> 00:07:55,840 Speaker 1: two million dollars, if we can get there, that should 145 00:07:55,840 --> 00:07:57,680 Speaker 1: be able to provide us with about one hundred and 146 00:07:57,760 --> 00:08:01,520 Speaker 1: five thousand dollars per annum in today dollars, and it 147 00:08:01,560 --> 00:08:03,840 Speaker 1: should be able to grow, that is, keep up with 148 00:08:03,880 --> 00:08:07,559 Speaker 1: inflation at two point five percent per annum, and still 149 00:08:07,640 --> 00:08:12,640 Speaker 1: leave around a million dollars in today's dollars for your estate. 150 00:08:13,120 --> 00:08:15,680 Speaker 1: So that roughly works out to be about just over 151 00:08:15,760 --> 00:08:19,160 Speaker 1: two million dollars in your estate, obviously subject to inflation 152 00:08:19,600 --> 00:08:23,600 Speaker 1: by the time you are age ninety five in this example. 153 00:08:23,720 --> 00:08:27,880 Speaker 1: So that's a pretty comfortable retirement, not a huge income 154 00:08:28,120 --> 00:08:30,400 Speaker 1: because obviously it is in today's dollars or one hundred 155 00:08:30,400 --> 00:08:31,720 Speaker 1: and five. One hundred and five is not going to 156 00:08:31,760 --> 00:08:34,720 Speaker 1: be the same in twenty years time. But still it's 157 00:08:34,800 --> 00:08:37,800 Speaker 1: decent and there is a huge comfort level of comfort 158 00:08:37,840 --> 00:08:42,240 Speaker 1: knowing that throughout retirement you're not watching your superannuation evaporate 159 00:08:42,400 --> 00:08:45,240 Speaker 1: at an alarming rate. It's very, very slow, and you 160 00:08:45,280 --> 00:08:46,960 Speaker 1: can still see that you are going to be able 161 00:08:46,960 --> 00:08:50,000 Speaker 1: to leave something for your loved ones through your estate, 162 00:08:50,080 --> 00:08:54,160 Speaker 1: which is extremely comforting. It gives you more options as well, 163 00:08:54,360 --> 00:08:57,800 Speaker 1: so should you decide to increase your retirement income from 164 00:08:57,800 --> 00:08:59,880 Speaker 1: one hundred and five to something else, That's why you 165 00:09:00,080 --> 00:09:02,480 Speaker 1: have that choice or that option, even if it does 166 00:09:02,600 --> 00:09:05,040 Speaker 1: mean you won't be able to leave as much to 167 00:09:05,120 --> 00:09:07,600 Speaker 1: your estate. But this is the power of being ahead 168 00:09:07,600 --> 00:09:10,520 Speaker 1: of the game and making smart, intelligent decisions with your money. 169 00:09:10,559 --> 00:09:12,120 Speaker 1: So how do we get to that two point two 170 00:09:12,160 --> 00:09:12,800 Speaker 1: million dollars? 171 00:09:13,120 --> 00:09:14,520 Speaker 2: Is it actually realistic? 172 00:09:15,160 --> 00:09:17,200 Speaker 1: Well, it's like how long is a piece of string. 173 00:09:17,480 --> 00:09:19,120 Speaker 1: It really boils down to you at the end of 174 00:09:19,160 --> 00:09:22,200 Speaker 1: the day, because this is your opportunity to step up 175 00:09:22,280 --> 00:09:26,360 Speaker 1: and take responsibility and be accountable for your decisions, both 176 00:09:26,440 --> 00:09:29,240 Speaker 1: one made in the past and also going forward. And 177 00:09:29,320 --> 00:09:31,440 Speaker 1: you really can make up for a lot of lost 178 00:09:31,440 --> 00:09:35,120 Speaker 1: time when you combine smart, intelligent investment decisions with a 179 00:09:35,200 --> 00:09:39,400 Speaker 1: great financial strategy that is sound and fits your goals, 180 00:09:39,760 --> 00:09:43,080 Speaker 1: your dreams, and your desires. So if we go back 181 00:09:43,080 --> 00:09:45,880 Speaker 1: to the two simple strategies that I talked about last week, 182 00:09:46,040 --> 00:09:50,280 Speaker 1: Number one is salary sacrificing, And just to refresh your 183 00:09:50,600 --> 00:09:53,440 Speaker 1: memory in case you may have forgotten, what's salary sacrificing is. 184 00:09:54,080 --> 00:09:58,800 Speaker 1: Involves making extra contributions into your superannuation, but through your 185 00:09:59,000 --> 00:10:03,120 Speaker 1: pre tax dollars. At the moment, it is capped at 186 00:10:03,240 --> 00:10:06,959 Speaker 1: thirty thousand dollars per annum. Now this is typically organized 187 00:10:07,000 --> 00:10:10,079 Speaker 1: through your HR payrollers, so an agreement between yourself when 188 00:10:10,120 --> 00:10:12,600 Speaker 1: your employer and I have to say this. You know, 189 00:10:12,640 --> 00:10:14,520 Speaker 1: I used to do a little bit of salary sacrificing 190 00:10:14,559 --> 00:10:16,240 Speaker 1: when I was employee, and I'm really glad I. 191 00:10:16,200 --> 00:10:18,440 Speaker 2: Did that because I do have a little bit more. 192 00:10:19,040 --> 00:10:21,839 Speaker 1: I'm glad for those times where I wasn't working that 193 00:10:21,960 --> 00:10:24,520 Speaker 1: I was able to know that I had backed myself 194 00:10:24,559 --> 00:10:27,839 Speaker 1: by having those previous small salary sacrificing strategies going in. 195 00:10:28,080 --> 00:10:30,920 Speaker 1: So the benefit of salary sacrificing is it obviously helps 196 00:10:30,960 --> 00:10:33,960 Speaker 1: produce your taxable income, which is great because that you know, 197 00:10:34,320 --> 00:10:36,600 Speaker 1: money that you've salary sacrifice is no longer taxed at 198 00:10:36,600 --> 00:10:40,240 Speaker 1: your module tax rate, but taxed at fifteen percent within superannuation. 199 00:10:40,840 --> 00:10:44,320 Speaker 1: And then, secondly, it obviously helps the compounding effect of 200 00:10:44,360 --> 00:10:48,160 Speaker 1: your superannuation account row. More money is going into that 201 00:10:48,200 --> 00:10:52,680 Speaker 1: superannuation investment portfolio, so there is greater opportunity for it 202 00:10:52,760 --> 00:10:56,120 Speaker 1: to grow further, grow further in value, and of course 203 00:10:56,200 --> 00:10:59,520 Speaker 1: more importantly, grow that passive income within superinneration that's going 204 00:10:59,559 --> 00:11:02,840 Speaker 1: to altimate give you that financial freedom. There's second powerful 205 00:11:02,880 --> 00:11:06,319 Speaker 1: strategy I'm just talking about two simple top line months first, 206 00:11:06,640 --> 00:11:09,239 Speaker 1: and that is of course making those after tax contributions, 207 00:11:09,240 --> 00:11:12,640 Speaker 1: so they're known as non concessional contributions. And again there 208 00:11:12,640 --> 00:11:15,240 Speaker 1: are similar limits. They're much higher around about one hundred 209 00:11:15,240 --> 00:11:17,880 Speaker 1: and twenty thousand dollars per financial year. Now, of course, 210 00:11:17,920 --> 00:11:20,640 Speaker 1: with the rising cost of living and interest rates, not 211 00:11:20,720 --> 00:11:22,720 Speaker 1: many people are putting in one hundred and twenty thousand 212 00:11:22,760 --> 00:11:25,240 Speaker 1: dollars per annum. But I will say this, even if 213 00:11:25,280 --> 00:11:27,480 Speaker 1: you just put fifty dollars per month as an after 214 00:11:27,520 --> 00:11:31,360 Speaker 1: tax contribution to super, obviously knowing the risks and the limitations, 215 00:11:32,559 --> 00:11:35,440 Speaker 1: this is going to make a big difference further down 216 00:11:35,480 --> 00:11:38,000 Speaker 1: the track, particularly when you start early and you consistently 217 00:11:38,040 --> 00:11:40,200 Speaker 1: stick to it. Plus, when you do something like this 218 00:11:40,240 --> 00:11:43,880 Speaker 1: and you set this up, say through a regular direct debit, 219 00:11:44,360 --> 00:11:46,720 Speaker 1: it won't take long before you don't even miss that money. 220 00:11:46,840 --> 00:11:49,600 Speaker 1: And I really encourage people who do this that they 221 00:11:49,720 --> 00:11:52,240 Speaker 1: actually lean into it. And they might start with fifty 222 00:11:52,280 --> 00:11:54,880 Speaker 1: dollars per month, and then three four months later they 223 00:11:54,960 --> 00:11:56,760 Speaker 1: might bump it up to seventy dollars per month, or 224 00:11:57,080 --> 00:11:59,040 Speaker 1: they may get a promotion and they get a pay 225 00:11:59,080 --> 00:12:00,920 Speaker 1: rise for that promotions, they can now bump it up 226 00:12:00,920 --> 00:12:03,840 Speaker 1: to ninety dollars per month, they lean into it, you 227 00:12:03,960 --> 00:12:07,640 Speaker 1: won't notice that, and also really helps curb the dangers 228 00:12:07,679 --> 00:12:10,760 Speaker 1: of that lifestyle creep. Definitely something not to turn your 229 00:12:10,800 --> 00:12:13,080 Speaker 1: nose up by that, particularly when it looks at even 230 00:12:13,120 --> 00:12:15,319 Speaker 1: just small amounts, because they really do help bridge that 231 00:12:15,400 --> 00:12:17,800 Speaker 1: gap and they are great financial habits to have. So 232 00:12:18,080 --> 00:12:20,000 Speaker 1: if we run these numbers, just looking at these two 233 00:12:20,040 --> 00:12:23,240 Speaker 1: simple strategies, if you start at age forty five, assuming 234 00:12:23,240 --> 00:12:25,640 Speaker 1: that again that one hundred and ninety seven thousand, five 235 00:12:25,720 --> 00:12:29,800 Speaker 1: hundred dollars superannuation account balance, and you can add one 236 00:12:29,800 --> 00:12:34,120 Speaker 1: thousand dollars per month as an after tax contribution and 237 00:12:34,320 --> 00:12:38,240 Speaker 1: salary sacrifice twelve thousand dollars per autumn on top of 238 00:12:38,280 --> 00:12:41,480 Speaker 1: your employer contribution, so that the maximum thirty thousand dollars 239 00:12:41,920 --> 00:12:44,400 Speaker 1: is going in as a pre tax contribution, and you've 240 00:12:44,400 --> 00:12:47,079 Speaker 1: got one thousand dollars per month as an after tax contribution. 241 00:12:47,800 --> 00:12:51,520 Speaker 1: That potentially helps your superannuation grow with a net return 242 00:12:51,520 --> 00:12:55,080 Speaker 1: of seven point five percent up to one point five 243 00:12:55,559 --> 00:12:57,160 Speaker 1: four million. 244 00:12:56,840 --> 00:13:00,199 Speaker 2: Dollars at age sixty five. So just those two. 245 00:13:00,120 --> 00:13:03,040 Speaker 1: Simple strategies alone, which I will emit er aggressive but 246 00:13:03,280 --> 00:13:06,880 Speaker 1: not impossible, particularly when you lean in, gives you around 247 00:13:06,920 --> 00:13:10,880 Speaker 1: about an extra six hundred thousand dollars in superannuation in 248 00:13:11,200 --> 00:13:15,800 Speaker 1: comparison to doing Deleyt squat and just coasting through life. Now, 249 00:13:16,040 --> 00:13:18,400 Speaker 1: I'm not here to tell you what to do at all, 250 00:13:18,760 --> 00:13:21,400 Speaker 1: but I'll tell you this. When I've spoken to people 251 00:13:21,400 --> 00:13:24,120 Speaker 1: who are approaching retirement and don't have enough money in superannuation, 252 00:13:24,480 --> 00:13:29,240 Speaker 1: their biggest pain point is regret, regretting that they didn't 253 00:13:29,480 --> 00:13:32,360 Speaker 1: know about this concept or this idea or this strategy 254 00:13:32,440 --> 00:13:34,960 Speaker 1: ten years ago, fifteen years ago, twenty years ago, thirty 255 00:13:35,000 --> 00:13:38,679 Speaker 1: years ago, because they would have definitely done this looking 256 00:13:38,720 --> 00:13:41,800 Speaker 1: at what they have to deal with right now today. 257 00:13:41,960 --> 00:13:45,400 Speaker 1: So you learn from people's lessons. You don't need to 258 00:13:45,400 --> 00:13:47,080 Speaker 1: make the same mistakes that other people have made. You 259 00:13:47,080 --> 00:13:49,280 Speaker 1: can learn from them and again be ahead of the game. 260 00:13:49,440 --> 00:13:52,680 Speaker 1: So consider a salary sacrificing strategy as well as an 261 00:13:52,760 --> 00:13:56,400 Speaker 1: after tax contribution strategy. The two of them can work together. 262 00:13:56,520 --> 00:13:59,440 Speaker 1: Just be very careful of those caps, those limits that 263 00:13:59,480 --> 00:14:03,000 Speaker 1: apply her financial year. And as I said, yes, this 264 00:14:03,240 --> 00:14:07,200 Speaker 1: is an aggressive contribution strategy. But you can lean into 265 00:14:07,240 --> 00:14:11,840 Speaker 1: this by using pay rises, changing lifestyles, reviewing your budget, 266 00:14:12,280 --> 00:14:15,840 Speaker 1: adjusting your living situation, you'd be amazed when you actually 267 00:14:15,880 --> 00:14:18,240 Speaker 1: sit down and look at where your money goes and 268 00:14:18,240 --> 00:14:21,640 Speaker 1: look to make small simple changes, starting with fifty dollars 269 00:14:21,640 --> 00:14:24,400 Speaker 1: per month and raising it and then of course speaking 270 00:14:24,400 --> 00:14:26,600 Speaker 1: to your payroll, looking at the difference of and the 271 00:14:26,680 --> 00:14:28,640 Speaker 1: impact on your net cash flow. If you look at 272 00:14:28,640 --> 00:14:30,640 Speaker 1: something like one hundred dollars per month as a salary 273 00:14:30,760 --> 00:14:34,440 Speaker 1: sacrificing strategy and you review this, as I said, every two, three, 274 00:14:34,560 --> 00:14:37,720 Speaker 1: four months, just lean into it. I promise you you'd 275 00:14:37,760 --> 00:14:39,920 Speaker 1: be amazed as to what you can achieve and how 276 00:14:39,960 --> 00:14:43,880 Speaker 1: this does really help your stuperinnation grow quickly. And of 277 00:14:43,920 --> 00:14:45,640 Speaker 1: course if you're listening to just think, you know what, 278 00:14:45,720 --> 00:14:47,920 Speaker 1: I'm actually owning a really good salary and I've got 279 00:14:47,920 --> 00:14:50,520 Speaker 1: a great budget, and I've found finding that my savings 280 00:14:50,520 --> 00:14:52,720 Speaker 1: are accumulating and my mortgages coming down. I think I 281 00:14:52,720 --> 00:14:55,320 Speaker 1: can actually potentially afford this. Then great, This is the 282 00:14:55,360 --> 00:14:57,040 Speaker 1: time to go speak to a financial planner. 283 00:14:57,160 --> 00:14:58,840 Speaker 2: This is the time to really look at a. 284 00:14:58,840 --> 00:15:02,440 Speaker 1: SARI sacrificing stra in and after tax contribution strategy, particularly 285 00:15:02,520 --> 00:15:04,920 Speaker 1: if you are on a high marginal tax rate, because 286 00:15:04,920 --> 00:15:08,080 Speaker 1: this could be even more powerful for you, not only 287 00:15:08,120 --> 00:15:10,960 Speaker 1: helping you achieve your retirement goals, but also saving some 288 00:15:11,080 --> 00:15:14,360 Speaker 1: valuable tax along the way, So it has multiple benefits 289 00:15:14,400 --> 00:15:17,040 Speaker 1: this particular idea. Now, as you're thinking, okay, all right, 290 00:15:17,160 --> 00:15:19,200 Speaker 1: so Kenn has potentially got us to one point five 291 00:15:19,400 --> 00:15:22,040 Speaker 1: four million dollars in superinnuation, we're still you know, seven 292 00:15:22,080 --> 00:15:24,440 Speaker 1: hundred thousand dollars short, Well, what do we do? So 293 00:15:24,480 --> 00:15:27,240 Speaker 1: we go back to that list that those list of 294 00:15:27,280 --> 00:15:28,920 Speaker 1: things I gave you in last week's episode. 295 00:15:28,960 --> 00:15:30,640 Speaker 2: You go and search to see if. 296 00:15:30,520 --> 00:15:33,440 Speaker 1: You've got any old superannuation accounts. In fact, I don't 297 00:15:33,440 --> 00:15:35,800 Speaker 1: have a search to see you any missing money through 298 00:15:35,840 --> 00:15:38,520 Speaker 1: the as SIC website. This is so easy, it takes 299 00:15:38,560 --> 00:15:40,720 Speaker 1: literally a couple of minutes. You just enter in your name, 300 00:15:41,000 --> 00:15:42,640 Speaker 1: or you can do it through your tax file number 301 00:15:42,680 --> 00:15:45,080 Speaker 1: and see if you've got any old accounts, old shares, 302 00:15:45,640 --> 00:15:48,600 Speaker 1: your old insurance policies that may have money. I remember 303 00:15:48,600 --> 00:15:50,960 Speaker 1: when I first this, I found nine hundred dollars. You 304 00:15:51,040 --> 00:15:53,640 Speaker 1: will be amazed as to what you've discover And in fact, 305 00:15:53,640 --> 00:15:56,160 Speaker 1: I actually did a video on TikTok which I think 306 00:15:56,200 --> 00:15:58,400 Speaker 1: got something like five hundred thousand views, and someone even 307 00:15:58,480 --> 00:16:01,320 Speaker 1: found for their uncle about thirty five thousand dollars. These 308 00:16:01,360 --> 00:16:04,120 Speaker 1: this money that you could potentially find old superannuation accounts 309 00:16:04,160 --> 00:16:06,320 Speaker 1: will help take you one step closer to getting for 310 00:16:06,360 --> 00:16:08,720 Speaker 1: that two point two million dollars. So take a moment. 311 00:16:08,880 --> 00:16:11,120 Speaker 1: It literally takes two minutes to search and see what 312 00:16:11,160 --> 00:16:14,520 Speaker 1: old superannuation accounts you have or any old missing money, 313 00:16:14,840 --> 00:16:17,920 Speaker 1: and that money might be worth putting on your home loan, 314 00:16:17,960 --> 00:16:20,880 Speaker 1: but it also may be worth putting into superannuation. Of course, 315 00:16:20,920 --> 00:16:24,000 Speaker 1: we also mentioned the downsize of contributions, where if you're 316 00:16:24,080 --> 00:16:26,760 Speaker 1: over fifty five, you can contribute up to three hundred 317 00:16:26,800 --> 00:16:29,840 Speaker 1: thousand dollars from the sale of your home into your superannuation, 318 00:16:30,040 --> 00:16:33,240 Speaker 1: which is a huge opportunity for people who are planning 319 00:16:33,240 --> 00:16:36,800 Speaker 1: to downsize anyway in retirement. They don't want the expensive 320 00:16:36,880 --> 00:16:40,560 Speaker 1: maintenance that comes from owning, particularly a large home or 321 00:16:40,640 --> 00:16:42,800 Speaker 1: a home that comes with things like sewing, pools and 322 00:16:42,800 --> 00:16:45,640 Speaker 1: gardens that can be expensive and also require a lot 323 00:16:45,640 --> 00:16:48,200 Speaker 1: of manual labor to take care of. This is a 324 00:16:48,240 --> 00:16:51,400 Speaker 1: great way of actually freeing up some money, putting in 325 00:16:51,400 --> 00:16:54,160 Speaker 1: an attax effective environment and not having to worry too 326 00:16:54,280 --> 00:16:56,320 Speaker 1: much about these caps because these caps are a lot 327 00:16:56,440 --> 00:16:59,400 Speaker 1: more generous and as people use this all the time 328 00:16:59,440 --> 00:17:01,760 Speaker 1: to boost they're super and of course they move into it. 329 00:17:01,800 --> 00:17:03,880 Speaker 1: Maybe a smaller home doesn't necessarily mean you have to 330 00:17:03,880 --> 00:17:04,440 Speaker 1: be homeless. 331 00:17:04,480 --> 00:17:05,040 Speaker 2: You can just be. 332 00:17:05,160 --> 00:17:08,480 Speaker 1: Downsizing from a house, for example, to a townhouse or 333 00:17:08,520 --> 00:17:10,520 Speaker 1: a house to a smaller house or a house to 334 00:17:10,880 --> 00:17:14,520 Speaker 1: an apartment with it easier, more comfortable living. Perhaps you know, 335 00:17:14,760 --> 00:17:17,320 Speaker 1: same level living. People are doing this all the time. 336 00:17:17,400 --> 00:17:21,159 Speaker 1: It is a very very popular strategy that financial planners 337 00:17:21,160 --> 00:17:23,520 Speaker 1: are recommending. Of course, last week we touched on those 338 00:17:23,560 --> 00:17:26,800 Speaker 1: other small ideas such as spouse contributions and the co 339 00:17:26,800 --> 00:17:31,640 Speaker 1: contributions and looking at the COVID nineteen early release recontribution 340 00:17:31,720 --> 00:17:33,520 Speaker 1: where you can put that money back that you may 341 00:17:33,560 --> 00:17:36,240 Speaker 1: have taken out during COVID. If you're able to say 342 00:17:36,240 --> 00:17:38,440 Speaker 1: that you're standing on your own two feet again without 343 00:17:38,440 --> 00:17:41,159 Speaker 1: having to again worry about those caps. But again the 344 00:17:41,240 --> 00:17:43,680 Speaker 1: ideas there's the more you look, the more you will 345 00:17:43,680 --> 00:17:47,879 Speaker 1: find going through your savings, going through your budget, looking 346 00:17:47,880 --> 00:17:50,200 Speaker 1: at what you are doing with your money, and looking 347 00:17:50,240 --> 00:17:52,919 Speaker 1: at how you can add some efficiency in your life. 348 00:17:52,960 --> 00:17:55,120 Speaker 1: For example, can you change your hours and perhaps look 349 00:17:55,160 --> 00:17:57,640 Speaker 1: at working over time? Are there are some ofditial projects 350 00:17:57,640 --> 00:18:00,879 Speaker 1: that you can take on maybe freelancing, or apply for 351 00:18:00,960 --> 00:18:03,400 Speaker 1: a new role at work of promotion, or even look 352 00:18:03,440 --> 00:18:05,680 Speaker 1: at changing gobs where you can start earning some extra 353 00:18:05,720 --> 00:18:09,600 Speaker 1: money that can help you channel more money into your 354 00:18:09,640 --> 00:18:10,800 Speaker 1: superannuation account. 355 00:18:10,800 --> 00:18:12,200 Speaker 2: And of course, as I touched. 356 00:18:12,000 --> 00:18:13,880 Speaker 1: On last week, you're not always going to be living 357 00:18:13,920 --> 00:18:16,240 Speaker 1: in the same situation. If you have kids that live 358 00:18:16,280 --> 00:18:19,520 Speaker 1: at home, eventually they will move out and those cost of. 359 00:18:19,520 --> 00:18:22,359 Speaker 2: Livings will come down. Things will change. 360 00:18:22,400 --> 00:18:24,560 Speaker 1: You may even inherit some money, which I know a 361 00:18:24,600 --> 00:18:28,359 Speaker 1: lot of Australians are hoping, or some even banking on. Again, 362 00:18:28,520 --> 00:18:31,640 Speaker 1: these could be perfect opportunities for you to really beef 363 00:18:31,760 --> 00:18:35,159 Speaker 1: up your superannuation. Again keeping in mind that the liquidity 364 00:18:35,240 --> 00:18:38,959 Speaker 1: issues and those annual caps. But again, this is a 365 00:18:39,119 --> 00:18:42,199 Speaker 1: powerful asset base or a basket you can call for 366 00:18:42,320 --> 00:18:45,320 Speaker 1: holding your wealth because of the tax reduction that is 367 00:18:45,359 --> 00:18:48,960 Speaker 1: the maximum tax rate of fifteen percent or even ultimately 368 00:18:49,040 --> 00:18:53,480 Speaker 1: ten percent depending on the investment strategy within your superannuation account. 369 00:18:53,640 --> 00:18:56,520 Speaker 1: So these understanding of the power of this asset base, 370 00:18:56,880 --> 00:19:00,640 Speaker 1: backed with consistent strong contributions makes a huge h difference. 371 00:19:00,760 --> 00:19:02,880 Speaker 1: And again we touched on this last week, the importance 372 00:19:02,880 --> 00:19:05,639 Speaker 1: of reviewing your investments. Please don't ever just go with 373 00:19:05,720 --> 00:19:11,040 Speaker 1: the default balanced superannuation investment portfolio for your superannuation account. 374 00:19:11,200 --> 00:19:13,840 Speaker 1: Please in best time doing a risk profile. If you 375 00:19:13,880 --> 00:19:16,560 Speaker 1: google a risk profile you will find hundreds of them. 376 00:19:16,640 --> 00:19:18,560 Speaker 1: The best one I love is the Vanguard one where 377 00:19:18,600 --> 00:19:21,040 Speaker 1: it takes you through about thirteen or fourteen different questions 378 00:19:21,119 --> 00:19:23,800 Speaker 1: and it actually gives your risk profile and shows your 379 00:19:23,920 --> 00:19:26,520 Speaker 1: ultimate asset allocation that you can then use as a 380 00:19:26,560 --> 00:19:28,720 Speaker 1: guide to help work out where is the best way 381 00:19:28,760 --> 00:19:32,400 Speaker 1: to invest. But under the very wide better of general advice, 382 00:19:32,720 --> 00:19:36,439 Speaker 1: the typical advice for young people is you've got the 383 00:19:36,480 --> 00:19:39,360 Speaker 1: benefit of time, you can afford to take more risks 384 00:19:39,440 --> 00:19:43,240 Speaker 1: than someone who is perhaps approaching retirement. And people would 385 00:19:43,240 --> 00:19:46,920 Speaker 1: often say, again general advice only that those people may 386 00:19:47,000 --> 00:19:50,080 Speaker 1: be better off obviously after they've done their research, but 387 00:19:50,240 --> 00:19:52,760 Speaker 1: leaning towards more of a growth or a high growth 388 00:19:52,920 --> 00:19:57,399 Speaker 1: investment allocation to help maximize those opportunities for them. But again, 389 00:19:57,800 --> 00:20:01,240 Speaker 1: make sure every decision you make you understand the risks involved, 390 00:20:01,280 --> 00:20:03,960 Speaker 1: and never invest in something that you don't understand. Again, 391 00:20:04,000 --> 00:20:05,879 Speaker 1: this is a great opportunity to reach out to speak 392 00:20:05,920 --> 00:20:08,399 Speaker 1: to a financial planner. And having said that, it falls 393 00:20:08,400 --> 00:20:11,320 Speaker 1: the other way just because you are approaching retirement doesn't 394 00:20:11,400 --> 00:20:13,480 Speaker 1: mean that you need to cash everything in and put 395 00:20:13,480 --> 00:20:16,320 Speaker 1: it into what we would call a safe environment. You 396 00:20:16,359 --> 00:20:20,200 Speaker 1: need to remember retirement is no longer a five year timeline. 397 00:20:20,280 --> 00:20:23,040 Speaker 1: It's much longer than that. It's at least twenty years. 398 00:20:23,240 --> 00:20:25,680 Speaker 1: So again you need to make sure your money keeps 399 00:20:25,800 --> 00:20:28,600 Speaker 1: up with inflation, if not beats it, so be careful 400 00:20:28,680 --> 00:20:32,720 Speaker 1: not to choose too many conservative investment assets. You still 401 00:20:32,800 --> 00:20:36,520 Speaker 1: need an element of capital growth in your investment portfolio, 402 00:20:36,760 --> 00:20:39,680 Speaker 1: so don't just park everything in cash or term deposits 403 00:20:39,720 --> 00:20:43,760 Speaker 1: simply because you're retired. You need that magical longevity. The 404 00:20:43,800 --> 00:20:47,320 Speaker 1: top typically comes from those high growth investment assets such 405 00:20:47,359 --> 00:20:51,760 Speaker 1: as property, international shares and of course Australian shares. Another 406 00:20:51,800 --> 00:20:53,680 Speaker 1: important thing to look at to help bridge this five 407 00:20:53,760 --> 00:20:57,480 Speaker 1: hundred thousand dollars gap is the legislation and loopholes. Last 408 00:20:57,480 --> 00:21:01,400 Speaker 1: week I touched on this incredible loophole legal loophole called 409 00:21:01,400 --> 00:21:05,159 Speaker 1: the small business Superannuation rollover relief. I was able to 410 00:21:05,200 --> 00:21:09,240 Speaker 1: save a substantial amount of money in tax. Yes, it 411 00:21:09,320 --> 00:21:12,439 Speaker 1: did mean putting that money into my superannuation account, but 412 00:21:12,560 --> 00:21:14,600 Speaker 1: I was much happy to put it into my superannuation 413 00:21:14,680 --> 00:21:17,080 Speaker 1: account than to pay it the ATO. For me, it 414 00:21:17,160 --> 00:21:19,960 Speaker 1: was a no brainer, and yes that money is in 415 00:21:20,000 --> 00:21:22,879 Speaker 1: my superannuation, but I tell you with this, seeing my 416 00:21:23,040 --> 00:21:27,520 Speaker 1: Supernation account balance that is the total investment portfolio gives 417 00:21:27,520 --> 00:21:30,040 Speaker 1: me a great night's sleep. It's amazing to see it 418 00:21:30,119 --> 00:21:32,320 Speaker 1: now because it really is starting to grow as making 419 00:21:32,359 --> 00:21:36,159 Speaker 1: a massive difference. And I probably checked my Superannoation investment 420 00:21:36,240 --> 00:21:38,760 Speaker 1: portfolio every six months and seeing the power of that 421 00:21:38,840 --> 00:21:42,119 Speaker 1: lump some and what it's done is really empowering, and 422 00:21:42,160 --> 00:21:44,760 Speaker 1: it just motivates me to spend even more time and 423 00:21:44,880 --> 00:21:49,920 Speaker 1: energy prioritizing that regular, consistent flow of money into Superinneration. 424 00:21:50,520 --> 00:21:52,960 Speaker 1: So for anyone who's wondering what I'm talking about, make 425 00:21:53,000 --> 00:21:55,400 Speaker 1: sure you go and listen to last week's episode where 426 00:21:55,400 --> 00:21:57,480 Speaker 1: we've talked about it in more detail, because it is 427 00:21:57,560 --> 00:21:59,720 Speaker 1: quite complicated. And refer to the link that I provided 428 00:21:59,800 --> 00:22:02,160 Speaker 1: a lot last week's episode because I found an article 429 00:22:02,280 --> 00:22:03,440 Speaker 1: explains it beautifully. 430 00:22:03,440 --> 00:22:04,359 Speaker 2: And I do need to. 431 00:22:04,359 --> 00:22:06,800 Speaker 1: Remind everyone I'm not a chatted accountant, and this is 432 00:22:06,920 --> 00:22:10,200 Speaker 1: very much an accountant's domain that they can talk to 433 00:22:10,200 --> 00:22:12,120 Speaker 1: you about whether it's appropriate for you, and of course 434 00:22:12,160 --> 00:22:15,400 Speaker 1: whether you actually qualify for it. However, in saying that 435 00:22:15,720 --> 00:22:20,080 Speaker 1: there are so many different tax concessions and loopholes that 436 00:22:20,280 --> 00:22:23,879 Speaker 1: are legal that are available for small business owners that 437 00:22:24,000 --> 00:22:26,080 Speaker 1: not only help you save tax, but also help you 438 00:22:26,119 --> 00:22:30,080 Speaker 1: get money back into superannuation, because quite often small business 439 00:22:30,080 --> 00:22:34,280 Speaker 1: owners don't actually put the right amount or any amount 440 00:22:34,320 --> 00:22:36,639 Speaker 1: of money into their superannuation, and this gives them the 441 00:22:36,680 --> 00:22:40,960 Speaker 1: opportunity to help I guess, make good again their superannuation 442 00:22:41,240 --> 00:22:42,320 Speaker 1: investment portfolio. 443 00:22:42,520 --> 00:22:43,000 Speaker 2: And then, of. 444 00:22:42,920 --> 00:22:45,359 Speaker 1: Course, finally, I touched on last week the importance of 445 00:22:45,400 --> 00:22:49,560 Speaker 1: investing whilst I prioritized my superannuation, and I say the 446 00:22:49,600 --> 00:22:51,400 Speaker 1: same thing to Tom about the importance of making sure 447 00:22:51,400 --> 00:22:54,360 Speaker 1: we put the maximum we can. We are also investors. 448 00:22:54,600 --> 00:22:58,639 Speaker 1: I am fully aware and comfortable with the risk that 449 00:22:58,720 --> 00:23:03,040 Speaker 1: the government may change the rules around superannuation. They may 450 00:23:03,200 --> 00:23:05,080 Speaker 1: make us wait a little bit longer before we can 451 00:23:05,119 --> 00:23:08,840 Speaker 1: access this, They may change the tax effectiveness of this. However, 452 00:23:08,920 --> 00:23:11,680 Speaker 1: they can't retrospectively change it, so they can't go back 453 00:23:11,680 --> 00:23:14,280 Speaker 1: and change the current tax rate on super. They can 454 00:23:14,359 --> 00:23:16,840 Speaker 1: change it going forward, which drives me more to make 455 00:23:16,880 --> 00:23:19,800 Speaker 1: the most of the great system we have right now. 456 00:23:19,840 --> 00:23:21,920 Speaker 1: You don't want to look back again with the regret going, gosh, 457 00:23:21,960 --> 00:23:24,000 Speaker 1: I wish I put more money in superannuation when the 458 00:23:24,000 --> 00:23:26,479 Speaker 1: tax rate was you know, ten to fifteen percent, whereas 459 00:23:26,760 --> 00:23:29,640 Speaker 1: now it's increased up to twenty percent or twenty five percent. 460 00:23:29,840 --> 00:23:33,200 Speaker 1: You don't want any regrets, look back and go, they've 461 00:23:33,280 --> 00:23:33,960 Speaker 1: changed the rules. 462 00:23:34,040 --> 00:23:35,920 Speaker 2: That happened. That was always going to be a risk. 463 00:23:36,000 --> 00:23:37,840 Speaker 1: Thank good, as I did the best I could do 464 00:23:37,920 --> 00:23:40,879 Speaker 1: to get money to superannuation whilst it was low. And 465 00:23:40,960 --> 00:23:43,880 Speaker 1: again I'm fully aware that when I do eventually retire, 466 00:23:44,200 --> 00:23:48,720 Speaker 1: it may not necessarily be tax free through the allocated pension. However, again, 467 00:23:48,800 --> 00:23:50,840 Speaker 1: in the meantime, this is a great way of beefing 468 00:23:50,840 --> 00:23:53,840 Speaker 1: it up. But I've also supplemented and helped, I guess 469 00:23:54,000 --> 00:23:57,520 Speaker 1: diversify this risk by hedging it by maintaining an investment 470 00:23:57,560 --> 00:24:01,160 Speaker 1: strategy along the way. At the same time, so as 471 00:24:01,200 --> 00:24:04,280 Speaker 1: you now know, to help get you to one point 472 00:24:04,320 --> 00:24:07,480 Speaker 1: five four million dollars in superannuation, you are going to 473 00:24:07,520 --> 00:24:11,560 Speaker 1: have to look at an aggressive salary sacrificing strategy up 474 00:24:11,560 --> 00:24:14,439 Speaker 1: to thirty thousand dollars per annum, and you're going to 475 00:24:14,480 --> 00:24:17,600 Speaker 1: have to look at potentially putting up one thousand dollars 476 00:24:17,640 --> 00:24:20,600 Speaker 1: per month of your after tax dollars into superannuation to 477 00:24:20,640 --> 00:24:23,200 Speaker 1: help get you to that one point five four million 478 00:24:23,240 --> 00:24:25,120 Speaker 1: dollar mark. But then you're going to have to do more. 479 00:24:25,160 --> 00:24:27,680 Speaker 1: It doesn't stop. As I said, I'm not a magician. 480 00:24:27,680 --> 00:24:29,400 Speaker 2: I can't pull a rabbit out of a hat. 481 00:24:29,440 --> 00:24:32,119 Speaker 1: But if I can get you significantly on your way, 482 00:24:32,560 --> 00:24:35,080 Speaker 1: you will be amazed as you continue down this path, 483 00:24:35,400 --> 00:24:38,439 Speaker 1: learn more and be able to identify those opportunities around 484 00:24:38,440 --> 00:24:41,160 Speaker 1: you to get you there, and in fact, I think 485 00:24:41,200 --> 00:24:45,120 Speaker 1: you could potentially get even more into superannuation. Now, three 486 00:24:45,160 --> 00:24:47,200 Speaker 1: great resources I'm going to give you that you should 487 00:24:47,200 --> 00:24:49,439 Speaker 1: be looking out on a regular basis when you go 488 00:24:49,480 --> 00:24:52,120 Speaker 1: and check your superannuation account, and that is, of course 489 00:24:52,200 --> 00:24:55,080 Speaker 1: number one, the ass Sick Money Smart website. There are 490 00:24:55,119 --> 00:24:58,119 Speaker 1: so many great calculators on there, as well as an 491 00:24:58,200 --> 00:25:01,159 Speaker 1: amazing amount of easy to understand information around how to 492 00:25:01,200 --> 00:25:04,280 Speaker 1: pick a good superannuation account around you know, all the 493 00:25:04,280 --> 00:25:07,000 Speaker 1: different calculators that you can use as guides for projections. 494 00:25:07,400 --> 00:25:10,600 Speaker 1: I also highly recommend looking at the NORL. Whittaker website. 495 00:25:11,160 --> 00:25:15,920 Speaker 1: He has a great superannuation pension draw down calculator which 496 00:25:15,960 --> 00:25:18,600 Speaker 1: allows you to see how long your superannuation money will 497 00:25:18,640 --> 00:25:21,919 Speaker 1: actually last and it is very sobering. And of course 498 00:25:22,080 --> 00:25:24,560 Speaker 1: the calculators on the Sugar Mama website look at the 499 00:25:24,600 --> 00:25:29,160 Speaker 1: Sugar Mama Superannuation sweet Spot calculator as well as the 500 00:25:29,200 --> 00:25:32,960 Speaker 1: dividend Growth calculator. This allows you to see the power 501 00:25:33,040 --> 00:25:35,760 Speaker 1: of passive income and the power of investing on a 502 00:25:35,800 --> 00:25:39,480 Speaker 1: regular basis over a long period of time. And you 503 00:25:39,520 --> 00:25:42,280 Speaker 1: will actually see that two point two million dollars if 504 00:25:42,280 --> 00:25:44,640 Speaker 1: you put your head down and bum up. Its actually 505 00:25:44,720 --> 00:25:48,320 Speaker 1: within your reach, but it will require you to step 506 00:25:48,400 --> 00:26:14,920 Speaker 1: up and get started today.