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Speaker 1: Welcome back every one to Sugar Mamma's Fireplane, where we

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Speaker 1: ignite your path to financial independence, early retirement and generational wealth.

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Speaker 1: I am your host financial planner, Canna Campbell, and today

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Speaker 1: we're talking with my own financial mentor, mister Peter Thornhill.

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Speaker 1: He's an author, an educator and a longtime advocate of

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Speaker 1: Australian industrial shares as the foundation for growing passive income

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Speaker 1: streams through dividends. Peter built and go and check out

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Speaker 1: all my other episodes. But Peter built a multimillion dollar

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Speaker 1: investment portfolio using a very simple dividend focused portfolio of

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Speaker 1: high quality listed investment companies and industrial shares. And he's

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Speaker 1: with us this morning to unpack why this sector still

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Speaker 1: continues to deserve a cornerstone position in any fire strategy

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Speaker 1: and plan. And he's going to weigh in on how

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Speaker 1: this proposed ridiculous thirty percent tax on unrealized capital gain

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Speaker 1: sax in super really change things or perhaps nothing at all.

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Speaker 1: In fact, this may even make this strategy even stronger. So,

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Speaker 1: whether you're investing in your self measures of refund or

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Speaker 1: you are like me, regularly investing in shares and licks,

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Speaker 1: this is the perfect episode for you and A must

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Speaker 1: listen for your own wealth strategy as you head towards

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Speaker 1: a long and luxurious retirement. So let's dive in. Good morning, Peter,

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Speaker 1: how are you this morning?

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Speaker 2: I'm absolutely fine, in good shape.

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Speaker 1: Good That's what I like to hear. Now, your signature

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Speaker 1: investing style revolves around high quality industrial Australian shares, predominantly

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Speaker 1: through listed investment companies in your own words, and I

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Speaker 1: A should say this is you know I share the

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Speaker 1: same investing philosophy, but in your own words. What makes

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Speaker 1: this particular approach so powerful for people who are part

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Speaker 1: of the fire lifestyle movement that is financial independence retire Really?

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Speaker 2: I guess certainly for Freda and I, neither of us

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Speaker 2: had much money at all when we were young. We

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Speaker 2: both worked hard and Freda raised three beautiful sons for me,

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Speaker 2: I continued working and the end result is that in

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Speaker 2: quote retirement, we're working harder.

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Speaker 1: Playing in, enjoying all that money.

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Speaker 2: Enjoying life like we could never have imagined in our

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Speaker 2: wildest dreams.

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Speaker 1: Can you just quickly name the countries that you have

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Speaker 1: visited in the last twelve months quickly for my listeners

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Speaker 1: to get an idea of how much fun you're really having.

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Speaker 2: Well, a couple of weeks ago, we were in France

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Speaker 2: and spent a couple of days in Paris, then cruised

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Speaker 2: from Paris to Normandy, then from norman and then back

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Speaker 2: to Paris, and then from there we went to Bruges,

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Speaker 2: Ghent and then to Rotterdam, and then from Rotterdam we

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Speaker 2: went to London or to England and had a week

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Speaker 2: there hooking up with family and friends, and then flew home.

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Speaker 1: And before that trip Morocco.

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Speaker 2: We went to Portugal. To Portugal, we're looking now where

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Speaker 2: else we can spread our wings, although it is becoming

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Speaker 2: very crowded out.

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Speaker 1: There, so life's pretty boring and dull well.

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Speaker 2: Now on the contrary, but for us now, we're so

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Speaker 2: fortunate to have achieved what we have over the years,

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Speaker 2: and at this point I can honestly say we are

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Speaker 2: doing what we love the most often while we are

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Speaker 2: still on the planet.

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Speaker 1: Now. In your book, My Motivated Money, same Mindful Money.

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Speaker 1: Motivated Money, which is my favorite financial book. I've stopped

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Speaker 1: lending it to people because I never get it back.

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Speaker 1: But you have some really powerful charts in there showing

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Speaker 1: the return of one thousand dollars or ten thousand dollars

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Speaker 1: or a hundred thousand dollars, and you show the difference

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Speaker 1: between resources and industrials and the all odds, and there

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Speaker 1: is a profound difference between the industrial index and the

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Speaker 1: resources index, and even in the all odds. Can you,

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Speaker 1: over a long period of time, can you explain how

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Speaker 1: these returns are so profoundly different.

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Speaker 2: It's very simple. We dig stuff out of the ground,

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Speaker 2: and unfortunately, we then send it off to other countries

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Speaker 2: who then manufacture valuable goods. And I think the best

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Speaker 2: example I've got is we sell iron ore at about

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Speaker 2: two hundred and sixty dollars a tonne or something like that,

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Speaker 2: and we send that overseas sell it. The people who

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Speaker 2: get it then add value to it and they return

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Speaker 2: it in the form of automobiles at twenty thousand dollars

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Speaker 2: a ton So we export it two hundred and sixty

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Speaker 2: and we re imported twenty thousand. Now, we used to

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Speaker 2: make cars. Once there was a Ford factory in Melbourne,

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Speaker 2: there was Fisherman's Bend, there was a General Motors. We

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Speaker 2: make very little of anything. Now we export the raw materials.

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Speaker 2: They then add value and where we pay monstrous amount

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Speaker 2: of money, but it goes beyond that can and it

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Speaker 2: just we are not particularly happy with shares in this country.

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Speaker 2: And it's very noticeable. The Register of Pecuniary Interests for

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Speaker 2: the Federal Parliament, I think speaks volumes the majority of

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Speaker 2: the Federal Parliament of this country. When I got one

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Speaker 2: got the register a couple of year or two or

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Speaker 2: three years ago, they're all up to their eyeballs in

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Speaker 2: negatively geared property. Not a lot of them own shares.

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Speaker 2: And the consequence of that attitude, which spreads throughout the population.

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Speaker 2: Negative gearing is apparently a hot thing. You've got to

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Speaker 2: lose money to really make a lot. And the consequences

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Speaker 2: are that most of Australian companies are owned by overseas investors.

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Speaker 2: I think with BHP is about seventy two percent owned overseas.

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Speaker 2: Rio is about sixty eight percent or something. So if

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Speaker 2: you run through the register of most of Australia's leading companies,

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Speaker 2: they're all owned by overseas investors. The consequence of that,

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Speaker 2: in my dividend realm, about forty billion dollars in dividends

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Speaker 2: disappear out of this country every year.

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Speaker 1: It almost feels like just completely embarrassingly stupid that we've

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Speaker 1: let it get to this stage.

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Speaker 2: It is, and I you know, it just devastates me

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Speaker 2: to see all this capital disappearing overseas and we're sitting

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Speaker 2: here playing with property and it's just utter madness, utter madness.

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Speaker 2: But Australia is paying the price for it all because

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Speaker 2: if you look at the accounts and blah blah blah

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Speaker 2: associated with that, Australia is not a particularly wealthy country.

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Speaker 1: We're all a slave to this, to our egos. Now,

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Speaker 1: you're a strong advocate of benign neglect. How does that

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Speaker 1: play out from a practical point of view in a

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Speaker 1: portfolio like your portfolio that is like predominantly invested in

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Speaker 1: industrial shares and obviously listed investment companies. Now is your

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Speaker 1: main you know, I guess investment product? Is it? So

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Speaker 1: to say, simple buy and hold and buy and hold,

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Speaker 1: go traveling.

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Speaker 2: And go traveling on the dividends? Yeah, And I have

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Speaker 2: been rationalizing quite a bit now, and with the stupidity

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Speaker 2: associated with possible taxation on capital gain.

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Speaker 1: Yes, I'm dying to hear about your thoughts on this

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Speaker 1: in a second.

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Speaker 2: But it doesn't surprise me because the Australian Federal Parliament

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Speaker 2: is full of Australians, And as I joke with audiences,

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Speaker 2: when I'm Prime Minister, I'm not going to have one

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Speaker 2: Australian in my cabinet. I'm going to go overseas and

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Speaker 2: hand pick my cabinet.

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Speaker 1: So, you know, during times like this, when the you know,

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Speaker 1: this stock market is considered to be volatile and you know,

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Speaker 1: irrational and emotional. And I don't believe this stock market

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Speaker 1: is irrational emotional because it's it's not a person with feelings.

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Speaker 1: But how do you exercise that self control where you

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Speaker 1: don't get tempted to check your portfolio or make an

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Speaker 1: irrational knee jerk reaction, or perhaps you do check it

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Speaker 1: and don't care, or you do check it because you

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Speaker 1: get excited you're going to invest more if you've got

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Speaker 1: some spare cash, like I feel like at the moment,

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Speaker 1: a lot of people are letting their emotions run wild,

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Speaker 1: and for some, you know, they're having these knee jerk

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Speaker 1: reactions where they're for example, selling, you know, because they're

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Speaker 1: seeing these headlines like how do you exercise you know,

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Speaker 1: I guess that almost like burying your head in the

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Speaker 1: sand to a certain degree. As I said, when I say,

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Speaker 1: you know this benign neglect, like, how do you just

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Speaker 1: rise a bubble the noise?

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Speaker 2: Now, after all these years, it's very very easy. I

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Speaker 2: have no interest at all. And the fact that new

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Speaker 2: share prices are quoted every minute of the day, five

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Speaker 2: days a week, and people sit in front of computer whatever,

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Speaker 2: read all the finance magazines, et cetera, et cetera. I've

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Speaker 2: got better things to do. I have no interest in

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Speaker 2: what is going on daily on a daily basis. And

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Speaker 2: the fact that the share market is volatile is a

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Speaker 2: clear indication because the share market itself doesn't go up

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Speaker 2: or down. The share market is pushed and pulled up

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Speaker 2: and down by people who are reacting to any lunatic

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Speaker 2: event that occurs.

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Speaker 1: Which is then only fuelled even further by the media.

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Speaker 1: In my opinion, correct, the media just love it. They

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Speaker 1: love it, and of course that stirs the public.

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Speaker 2: And so when I'm Prime Minister, the share market's going

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Speaker 2: to be valued once a year.

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Speaker 1: I do wonder how many people make an investment decision

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Speaker 1: on a headline rather than actually reading the entire story.

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Speaker 2: That would be you know, a part and pascel. But

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Speaker 2: for most people it's looking at what the shares are

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Speaker 2: doing every day of the week. And for many people,

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Speaker 2: oh you know, the share marker went down today, We'll

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Speaker 2: go and buy some Oh god, the share marker's gone up.

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Speaker 2: Will take some profits. So we are causing the share

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Speaker 2: market to go up and down and get people blame

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Speaker 2: the share market for their poor investment performance. Well, if

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Speaker 2: you stop fiddling with the bloody thing, it would be okay.

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Speaker 1: So on that note, then, how often do you check

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Speaker 1: your investment portfolio?

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Speaker 2: Oh maybe Christmas.

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Speaker 1: Once a year, tax time probably.

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Speaker 2: And I said, freedra and I've got better things to do.

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Speaker 1: And it sounds like you've got a lot of time

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Speaker 1: as well, which is such a luxury.

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Speaker 2: Well for us, it is because all the work and

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Speaker 2: stuff and I'm presenting less and less, so I've got

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Speaker 2: more and more free time. And so we're just spreading

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Speaker 2: our wings and having as much fun as we possibly can.

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Speaker 1: And so you should damn right.

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Speaker 2: While we're here now we are enjoying the benefits of

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Speaker 2: a relationship that was accidentally perfect. I married a saver.

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Speaker 1: And you're an investor, and I'm an investor for the

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Speaker 1: people who are part of the fire lifestyle. You know,

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Speaker 1: regularly investing and obviously saving as well, and obviously paying

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Speaker 1: down debt. They're on that path where they are really

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Speaker 1: trying to do things differently that their parents may have done,

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Speaker 1: or really try and build something for themselves or for

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Speaker 1: their loved ones. What would you say to those people

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Speaker 1: who constantly get fixated on building their financial goals around

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Speaker 1: the capital value of their wealth versus the income value

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Speaker 1: of their wealth.

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Speaker 2: Because the capital value is a big number. The dividends

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Speaker 2: in terms of shares are quite small compared to the

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Speaker 2: individual share price, and so your share portfolio, the price

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Speaker 2: is more attractive.

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Speaker 1: Give you that dopamine hit, yeah, and share.

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Speaker 2: Price is a quota daily dividends, so you get two

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Speaker 2: a year or if you're lucky, four a year. For

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Speaker 2: someone a company that pays quarterly dividends, unfortunately there are

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Speaker 2: not many of them in Australia. And it's very noticeable

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Speaker 2: to me because I left my superfund in England when

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Speaker 2: Freedom and I returned to Australia, and I have four

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Speaker 2: listed investment companies, so we've been in there for twenty

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Speaker 2: thirty years. Every one of those four pays quarterly dividends,

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Speaker 2: we get sixteen dividend checks a year and it's in

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Speaker 2: our super fund in England. So we then get paid

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Speaker 2: a monthly, a lovely monthly.

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Speaker 1: Income stream, income stream, and that's the thing is the

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Speaker 1: end of the day, the value of that portfolio is superfluous.

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Speaker 1: It has no importance. Really, if you're trying to build freedom,

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Speaker 1: the freedom comes from the income, that passive income where

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Speaker 1: your money is working for you, because that is going

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Speaker 1: to replace your full time job where you're allow you

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Speaker 1: to drop down to part time work. That's where the

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Speaker 1: true freedom comes. And you're right, it's that ego. We

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Speaker 1: just get sucked into this sexy number, that's this high number,

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Speaker 1: and forget to pay attention to what's really important, which

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Speaker 1: is that income. What are we earning, What is our

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Speaker 1: money actually making us and creating us every single year.

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Speaker 2: The three things one should focus on absolutely in one's

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Speaker 2: life is family, friends, and career. Forget everything else. That

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Speaker 2: is they are your primary focus foci, and you just

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Speaker 2: do everything you possibly can to make that your arrangements

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Speaker 2: with all of that the best you possibly can.

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Speaker 1: I was listening to a podcast that was actually something

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Speaker 1: Tom sent me the other day, and it was talking

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Speaker 1: about you know, juggling balls and we how we focus

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Speaker 1: on money in our career and if we're juggling too much,

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Speaker 1: we're obviously going to drop a ball. And the thing

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Speaker 1: with you know, the most important balls are our family

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Speaker 1: and our health. Because you drop a career ball, you know,

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Speaker 1: it bounces, it can bounce back, you can catch up.

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Speaker 1: But you drop a family ball or a health ball,

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Speaker 1: you damage it or it shatters and you can't put

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Speaker 1: it back together again. You know, we've got to remind

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Speaker 1: ourselves of that as we you know, works hard, and

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Speaker 1: we sometimes work so hard that we paint back ourselves

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Speaker 1: into a corner and become a slave to our situation

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Speaker 1: and the lifestyle creep. So you know, I completely agree

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Speaker 1: with that, and its sometimes it's not until something bad

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Speaker 1: happens in life that you kind of get that wake

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Speaker 1: up call or that adjustment where you maybe lose someone

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Speaker 1: or have a health scare, or you know, something happens

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Speaker 1: is of significance in your life to get that moment

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Speaker 1: of reflection and insiders to what really matters. But we

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Speaker 1: don't have to let something bad happen to us. We

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Speaker 1: can wake up today and realize what really is important

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Speaker 1: and take a slow and steady pace to build wealth

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Speaker 1: and to build freedom for ourselves, living a life with

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Speaker 1: intention and attention.

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Speaker 2: And certainly at this stage in life, our Freeder and

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Speaker 2: I are enjoying as much as possible connection with friends.

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Speaker 1: And family, and enjoying the health that you have as well.

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Speaker 2: And we are very fortunate that both of us. Actually

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Speaker 2: I'm seventy eight. In a couple of months freedom will

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Speaker 2: be seventy eight as well. But we're having as much

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Speaker 2: fun now. In fact, we're having more fun now because

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Speaker 2: we have so much free time, and we now have

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Speaker 2: grandchildren that we're connecting with. Yeah, and I've got five

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Speaker 2: gorgeous granddaughters. We can have a good party with them.

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Speaker 1: I bet those granddaughters yours are very very lucky. Now

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Speaker 1: I'm actually the middle of not middle. I've written my

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Speaker 1: first third book, financial Freedom, and based around investing in

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Speaker 1: Australian industrial shares. And whenever people ask me like, why

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Speaker 1: are you so passionate about shares, and it's not just shares,

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Speaker 1: it's just industrial shares because as I mentioned that amazing

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Speaker 1: chart in your book, you know, between resources and the

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Speaker 1: all odds and then of course industrials. Can you explain

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Speaker 1: to our listeners right now the importance of growing dividends

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Speaker 1: because a lot of people don't grasp the concept of

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Speaker 1: that over the long run, and maybe can we almost

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Speaker 1: say compare it against how that looks in comparison to say,

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Speaker 1: an investment property.

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Speaker 2: We own listed investment companies and I have trimmed back

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Speaker 2: over the last twenty odd years the individual shareholdings because

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Speaker 2: to be honest, I don't want all of that, and

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Speaker 2: we're focused much more on the listed investment companies where

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Speaker 2: all the hard work and all the examinations and the accounting,

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Speaker 2: et cetera is all handled by someone else on our behalf,

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Speaker 2: which leaves us with the free time that we enjoy.

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Speaker 1: Not that this is ever investment advice or product advice,

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Speaker 1: and again it reminds everyone about my general advice warning,

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Speaker 1: which is obviously always disclosed in the podcast notes. But

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Speaker 1: you know what to say. The top three most popular

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Speaker 1: listed investment companies in Australia the.

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Speaker 2: Ones that have around the longest time, so you've probably

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Speaker 2: got epicgo. Whitefield Brick Works is another one I love

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Speaker 2: to pieces. Yeah, yeah, And again it's the fact that

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Speaker 2: FRIEDA and I buzzed off shortly after we got married

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Speaker 2: on an eighteen month working holiday and didn't come home

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Speaker 2: for eighteen years. Was pure gold. Living in England, I

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Speaker 2: learned so much well.

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Speaker 1: That the great thing is you've written everything you've learned.

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Speaker 1: You've put down in your book Motivated Money, which is

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Speaker 1: absolutely brilliant and it's interesting whenever I recommend it to people,

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Speaker 1: and as I said, I don't lend my copyatity Works

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Speaker 1: and never get it back. You know, people always come

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Speaker 1: back to me and say, oh my goodness, like this

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Speaker 1: is absolutely gold, like why didn't I read this years ago?

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Speaker 1: And they absolutely love it. And it does have a

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Speaker 1: profound impact in the way people rethink property and rethink

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Speaker 1: their wealth strategy and what they're really doing to create

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Speaker 1: a meaningful life where they have, you know, be able

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Speaker 1: to create something you and freedom created with this immense

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Speaker 1: freedom at this time is choice. The flexibility that you

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Speaker 1: have is just you know, it's people dream of what

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Speaker 1: you've created, but it's actually realistic for everybody.

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Speaker 2: It has impressed upon me the sickness in terms of

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Speaker 2: the way the brains here in Australia will focus very

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Speaker 2: heavily on property and on the odd occasion if I

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Speaker 2: push it a little bit I ask people, how much

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Speaker 2: does it cost you to own the property? Oh? This, this,

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Speaker 2: and this? Oh do you have you had to do

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Speaker 2: any repairs? Or oh that that? What? What rates do

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Speaker 2: you pay? What insurance on the proper? Do you pay what?

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Speaker 2: And I said, I asked, do you ever include that

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Speaker 2: in your calculation of what the thing is worth? Oh? No, no,

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Speaker 2: because they negatively give property is simply there on the

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Speaker 2: basis of being sold for a lump sum. At some

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Speaker 2: stage the income stream is not that great.

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Speaker 1: Well, this is the thing when you ask those questions.

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Speaker 1: I love to ask, I do the same thing. You

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Speaker 1: know about, well, hang on, what's the cost or at

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Speaker 1: the true cost? Like if you'll love to just gloss over,

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Speaker 1: well it's gone up in valley by three hundred thousand.

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Speaker 1: You know, they just sort of stop at that. But

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Speaker 1: then when you pick holes and you sort of the

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Speaker 1: smile start or the gloat starts to disintegrate in front

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Speaker 1: of you. But then you ask them about the income.

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Speaker 1: You're like, well, has that rental income increased each year?

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Speaker 1: And you know they might go, well, I've put the

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Speaker 1: rent up, you know, in alignment with the market, for example.

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Speaker 1: But then you think, hang on, you had it empty

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Speaker 1: for six weeks and you had to pay all these

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Speaker 1: expenses in the meantime, what was your actual net rental

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Speaker 1: at the end of each financial year and how does

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Speaker 1: that compare with the year before that and the year

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Speaker 1: before that and year before that. And you'll see that

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Speaker 1: you don't have that consistency in growing rental income streams

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Speaker 1: like you do with Australian industrial shares. There's on the

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Speaker 1: white Field website it actually says, you know, they think

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Speaker 1: their dividend has increased on average five percent each year.

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Speaker 2: Yeah. Frustrates the living daylights out of me. And you know,

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Speaker 2: if I ever get into a conversation, I try to

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Speaker 2: calm down, but my questions are you know, so what

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Speaker 2: are the annual costs of this property? Yeah, well we

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Speaker 2: haven't haven't added them up, I said, Oh okay, And

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Speaker 2: I said, and the rent you receive does it come

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Speaker 2: with a tax credit?

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Speaker 1: Well, all right, this is we've got to move on

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Speaker 1: to this. Obviously, this very heated topic at the moment

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Speaker 1: of the proposed taxing of unrealized couple of games tax

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Speaker 1: within super for account balances over three million dollars. What

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Speaker 1: are your thoughts and feelings about this? If it is

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Speaker 1: passed through, isn't it.

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Speaker 2: I think it's it's a disgrace and a disaster because

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Speaker 2: the more you can encourage people to create their superannuation fund,

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Speaker 2: it makes less demands on the public purse in terms

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Speaker 2: of you know, government funding for retirees. But you know,

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Speaker 2: it's crazy, crazy and the misguided parliament and whatever. It

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Speaker 2: just really it does just knocks my socks off.

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Speaker 1: I mean, it's deplorable. I don't even understand how it's

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Speaker 1: managed to get get this far already, Like I just

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Speaker 1: I'm in shock, and I think the damage is going

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Speaker 1: to do to our economy, to the system that you know,

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Speaker 1: SUPERUA I think was initially established in their seventies. I

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Speaker 1: think actually I think maybe PHP and you know, and

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Speaker 1: then officially kicked off in the early nineties. It has

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Speaker 1: taken so long for people to actually trust superinnuation and

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Speaker 1: realize actually, it is such a powerful tool in allowing

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Speaker 1: people to become investors, allowing people to understand how money works,

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Speaker 1: and give them the opportunity to be able to create

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Speaker 1: a sense of financial freedom themselves. And they're just going

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Speaker 1: to basically stuff it up. It's just in one simple decision,

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Speaker 1: and my one ruin for all.

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Speaker 2: Yeah, and the madness is that the media tends to

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Speaker 2: look upon it as you know, all those really wealthy people.

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Speaker 2: What they fail to remind everyone of is do you

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Speaker 2: know how much those really wealthy people spend in Australia?

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Speaker 2: Do you know how much they plow into the economy

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Speaker 2: of this country? And I seeking from my own spot

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Speaker 2: if you like, you know, adding hundreds of thousands of

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Speaker 2: dollars to the cash flow the income that is spent

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Speaker 2: in this country to satisfy businesses, et cetera, et cetera.

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Speaker 2: But it's all this misguide to die. You know, this

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Speaker 2: is cheating that they're you know, they're too rich and

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Speaker 2: blah blah blah.

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Speaker 1: Well this is the thing they they hide behind it,

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Speaker 1: you know, being a robin hood tax, you know, like

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Speaker 1: protecting but protecting the poor. You know, I guess rebalancing

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Speaker 1: the sheet, I think as the saying, but it's actually

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Speaker 1: not a rich man's problem. It's everybody's problem because that

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Speaker 1: three million dollar figure is not indexed either. And if

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Speaker 1: you think about it, like SG contributions are twelve percent,

401
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Speaker 1: so it is a lot of more and more people

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Speaker 1: every single year will actually quickly approach that threshold of

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Speaker 1: three million dollars. And you know, as people become more

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00:26:01,480 --> 00:26:04,879
Speaker 1: and more financially literate, they're making great decisions of the money.

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Speaker 1: You know, they're seeing their returns, they're seeing dividend reinvestment,

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Speaker 1: they're seeing the growth of those dividends, and they're making

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Speaker 1: smart decisions with that money. More and more people are

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Speaker 1: going to be impacted by this. And there was an

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Speaker 1: economist I think at AMP by the surname Messina who

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Speaker 1: she did some research and even people who are twenty

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Speaker 1: two years old are going to be impacted by this

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Speaker 1: ridiculous tax, unrealized a couple of games tax, you know,

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Speaker 1: as they approach retirement. It's it's the damage is huge.

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Speaker 1: But from you, like you've shared your portfolios. Last time

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Speaker 1: you shared it was a couple of years ago, I

416
00:26:40,920 --> 00:26:43,920
Speaker 1: think it was ten million dollars, and you know, you're

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Speaker 1: drawing this incredible growing passive income stream of four hundred

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Speaker 1: thousand dollars a year. You know, so I'm going to

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Speaker 1: assume that you're going to be one of these people,

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Speaker 1: that is rich people that have been hit by this text.

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Speaker 1: From a strategic point of view, what are you going

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Speaker 1: to do? Are you going to if it gets part,

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Speaker 1: you got to.

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Speaker 2: Just what have I already done?

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Speaker 1: Well, okay, all right, this is the question I needed

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Speaker 1: to ask earlier.

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Speaker 2: Then Okay, I've gutted my superfund really yep. And I

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Speaker 2: now have a company that has received all the proceeds

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Speaker 2: coming out, and that company, FREEDA and I are the

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00:27:23,560 --> 00:27:28,840
Speaker 2: two directors, and it invests in shares, and so as

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00:27:28,920 --> 00:27:33,919
Speaker 2: directors of the company, we draw our income through your dividends,

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Speaker 2: and we now have a trust separately, so all these

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00:27:40,160 --> 00:27:45,560
Speaker 2: are being funded. Super has come way down well below

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00:27:46,119 --> 00:27:50,399
Speaker 2: the limits, but it's now sitting in another environment, and

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00:27:50,640 --> 00:27:54,160
Speaker 2: so the income stream we're still enjoying. We're still getting

436
00:27:54,200 --> 00:27:59,080
Speaker 2: the franking credits and life rolls on. But I, yeah,

437
00:27:59,119 --> 00:28:00,600
Speaker 2: I don't understand you.

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00:28:00,760 --> 00:28:03,520
Speaker 1: I do understand at their own game, you're like ten

439
00:28:03,560 --> 00:28:05,640
Speaker 1: steps ahead of yes of the government.

440
00:28:05,960 --> 00:28:09,159
Speaker 2: But it's crazy. And this is this is where I

441
00:28:09,760 --> 00:28:16,399
Speaker 2: could weep sometimes. Honestly, the sheer stupidity of the politicians

442
00:28:16,440 --> 00:28:18,439
Speaker 2: in this country.

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00:28:19,400 --> 00:28:22,440
Speaker 1: I could cry, well, I could cry with you. It's

444
00:28:23,080 --> 00:28:25,400
Speaker 1: it's so disheartening when you know someone like myself, I'm

445
00:28:25,440 --> 00:28:30,400
Speaker 1: so passionate about making people take their financial wellbeing seriously,

446
00:28:30,880 --> 00:28:35,760
Speaker 1: make smart, intelligent decisions, have no regrets, learning to make

447
00:28:35,800 --> 00:28:38,960
Speaker 1: a few sacrifices along the way, and have that self

448
00:28:39,000 --> 00:28:42,120
Speaker 1: control and discipline to stay the course and to keep

449
00:28:42,120 --> 00:28:45,080
Speaker 1: their eye on their passive income streams through dividends. To

450
00:28:45,160 --> 00:28:47,680
Speaker 1: have this happen is such a slap in the face.

451
00:28:48,560 --> 00:28:52,160
Speaker 1: And you know, you could throw the towel in as

452
00:28:52,480 --> 00:28:55,920
Speaker 1: with super and I wouldn't blame people for giving up

453
00:28:56,240 --> 00:28:58,200
Speaker 1: complete hope. And I mean, obviously you're in a very

454
00:28:58,200 --> 00:29:01,800
Speaker 1: different situation and you're seventy eight. You know you have

455
00:29:01,920 --> 00:29:06,600
Speaker 1: that access, and you've had professional advice, obviously strategic advice

456
00:29:06,960 --> 00:29:09,360
Speaker 1: around this shift, and you've been able to obviously move

457
00:29:09,360 --> 00:29:11,680
Speaker 1: that money, you know, tax free. I'm going to assume,

458
00:29:12,600 --> 00:29:15,720
Speaker 1: so you are incredibly lucky. And that's the value of

459
00:29:16,360 --> 00:29:21,680
Speaker 1: having a great advisor, having being very informed but also

460
00:29:22,160 --> 00:29:25,880
Speaker 1: proactive advice. You know, not this knee jerk reaction to

461
00:29:26,080 --> 00:29:30,080
Speaker 1: help changes and laws and legislation and caps and contributions

462
00:29:30,120 --> 00:29:34,160
Speaker 1: things like that. You know that the combination of proactive

463
00:29:34,160 --> 00:29:38,520
Speaker 1: advice and making great decisions with your money. I'm really

464
00:29:38,520 --> 00:29:40,080
Speaker 1: glad to hear that you are not going to be

465
00:29:40,200 --> 00:29:43,920
Speaker 1: victim to this ridiculous law if it does come actually,

466
00:29:44,320 --> 00:29:45,440
Speaker 1: and you know, I.

467
00:29:45,360 --> 00:29:48,360
Speaker 2: Just hope that other people will be in the position

468
00:29:49,880 --> 00:29:54,280
Speaker 2: of getting appropriate advice to do exactly the same thing.

469
00:29:54,600 --> 00:29:57,080
Speaker 2: Let's beat the government at its own game.

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00:29:57,280 --> 00:30:02,440
Speaker 1: Yeah yeah, And I am sure that people who've already

471
00:30:02,440 --> 00:30:05,480
Speaker 1: built that level of wealth have already done exactly as

472
00:30:05,520 --> 00:30:07,840
Speaker 1: you've done. So, I mean, it's probably going to be

473
00:30:07,880 --> 00:30:10,720
Speaker 1: even a smaller percentage of people that do have to

474
00:30:10,720 --> 00:30:12,680
Speaker 1: face this, but we're still going to be left. The

475
00:30:12,680 --> 00:30:15,200
Speaker 1: people with less than three million dollars who do approach that,

476
00:30:15,640 --> 00:30:19,480
Speaker 1: We're going to obviously be the ones that are the consequences.

477
00:30:19,840 --> 00:30:25,760
Speaker 2: Sadly, financial education is not part of the curriculum in

478
00:30:25,800 --> 00:30:26,960
Speaker 2: this country.

479
00:30:28,160 --> 00:30:29,720
Speaker 1: Well, hopefully I can change that.

480
00:30:30,640 --> 00:30:31,240
Speaker 2: I'm with you.

481
00:30:31,680 --> 00:30:34,200
Speaker 1: Thank you well, Look, Peter, thank you so much for

482
00:30:34,240 --> 00:30:36,880
Speaker 1: your time today. You know, for anyone who's interested in

483
00:30:37,480 --> 00:30:40,400
Speaker 1: learning more about shares and investing in shares and the

484
00:30:40,440 --> 00:30:44,160
Speaker 1: power of Australian industrial shares, can I highly recommend that

485
00:30:44,200 --> 00:30:48,600
Speaker 1: you go and grab a copy of Peter's book, Motivated Money.

486
00:30:48,760 --> 00:30:51,720
Speaker 1: He's sold how many thousands of copies.

487
00:30:51,920 --> 00:30:56,320
Speaker 2: It's about seventy thousand, and it's not in any bookshops.

488
00:30:57,040 --> 00:30:59,600
Speaker 1: It's on Amazon. I will go and link it in

489
00:30:59,640 --> 00:31:01,800
Speaker 1: the cast notes for everyone, and obviously you can buy

490
00:31:01,840 --> 00:31:04,600
Speaker 1: it directly from Peter through his website. But it is

491
00:31:04,640 --> 00:31:08,920
Speaker 1: by far one of the best and most brilliant books.

492
00:31:08,960 --> 00:31:11,960
Speaker 1: If you want financial independence, and you want to retire early,

493
00:31:12,120 --> 00:31:13,959
Speaker 1: and you want to retire rich, and you would have

494
00:31:14,000 --> 00:31:16,600
Speaker 1: gone as many holidays as Peter and his beautiful wife

495
00:31:16,600 --> 00:31:19,920
Speaker 1: Frieda gone. I cannot recommend it myself, and you know

496
00:31:20,000 --> 00:31:23,880
Speaker 1: I'm very open and sharing this. My investment philosophy is

497
00:31:24,640 --> 00:31:27,760
Speaker 1: paying off my mortgage, but also debt recycling and investing

498
00:31:27,760 --> 00:31:30,840
Speaker 1: in listed investment companies and more and more. As I

499
00:31:30,920 --> 00:31:35,600
Speaker 1: realize myself, you know, time poor, juggling children and work

500
00:31:35,640 --> 00:31:37,880
Speaker 1: and all the other chaos of life. I'm time. Oh,

501
00:31:37,880 --> 00:31:40,520
Speaker 1: I don't want to sit there picking individual stocks for me.

502
00:31:40,960 --> 00:31:43,680
Speaker 1: I'm on the same boat as you. Listed investment companies

503
00:31:43,800 --> 00:31:47,720
Speaker 1: are my preferred investment vehicle for creating that passive income

504
00:31:47,760 --> 00:31:49,840
Speaker 1: stream and achieving that financial.

505
00:31:49,320 --> 00:31:54,320
Speaker 2: Goal and the comfort I mentioned earlier was a City

506
00:31:54,360 --> 00:31:57,960
Speaker 2: of London and listed investment company in England. It's only

507
00:31:58,000 --> 00:32:01,040
Speaker 2: been going for one hundred and sixty three years. Oh only,

508
00:32:01,760 --> 00:32:06,560
Speaker 2: and as I said, it's just paid. It's fifty seventh dividend.

509
00:32:06,160 --> 00:32:10,719
Speaker 1: Increase, and that's that keyword, dividend increase. Are your rents,

510
00:32:10,800 --> 00:32:13,720
Speaker 1: your net rents increasing year after year. That's what I

511
00:32:13,720 --> 00:32:17,400
Speaker 1: want to ask people who really question where property sits

512
00:32:17,400 --> 00:32:19,160
Speaker 1: in their portfolio and perhaps do a little bit of

513
00:32:19,160 --> 00:32:22,760
Speaker 1: research and comparison. All right, everyone, thank you so much

514
00:32:22,760 --> 00:32:25,160
Speaker 1: for listening to Sugar Mama's fireplay. I look forward to

515
00:32:25,200 --> 00:32:28,200
Speaker 1: chatting with you next Monday morning at five am. Chaofa

516
00:32:28,240 --> 00:32:28,360
Speaker 1: now