WEBVTT - Building your Wealth Creation Team! 0:00:00.160 --> 0:00:03.440 Good morning everyone, and welcome back to Sugar Mama's Fireplay. 0:00:03.840 --> 0:00:07.680 I am your host financial planner, Anna Campbell, and as always, 0:00:08.119 --> 0:00:11.840 I'm here every Monday morning at five am, Rain, Hail 0:00:11.960 --> 0:00:14.400 or shine to help make sure that you start your 0:00:14.440 --> 0:00:18.960 week off on an informed, inspired and educated note when 0:00:19.000 --> 0:00:21.960 it comes to achieving all of those very important financial 0:00:22.000 --> 0:00:25.240 goals and dreams. Now, this morning, we have a bit 0:00:25.239 --> 0:00:27.760 of a special episode because not only do we have 0:00:27.840 --> 0:00:31.960 adam Our Numero uno favorite mortgage broker who I know 0:00:32.120 --> 0:00:35.400 and trust for over eighteen years, but we actually have 0:00:35.560 --> 0:00:39.400 another colleague of mine, Richard Richard Nichols, who's also in 0:00:39.400 --> 0:00:41.400 fact a financial planner and also someone that I have 0:00:41.520 --> 0:00:43.880 known for pretty much the same amount of time as. 0:00:43.760 --> 0:00:45.120 Well, because we used to work together. 0:00:45.560 --> 0:00:48.680 So you are going to have essentially two financial planners 0:00:48.800 --> 0:00:52.040 on today's episode. I guess challenging each other and picking 0:00:52.040 --> 0:00:55.560 each other's brain and really exploring what options are available 0:00:55.560 --> 0:00:58.240 out there right now with the backing of a financial 0:00:58.240 --> 0:01:01.160 planner to help you get ahead of financial and seeing 0:01:01.240 --> 0:01:04.080 how important it is to have your mortgage broker and 0:01:04.160 --> 0:01:06.480 your financial planner and a certain degree of his course 0:01:06.520 --> 0:01:09.560 to your accountant. All singing off the same page, so 0:01:09.600 --> 0:01:13.240 that you are actually smashing your financial goals and dreams 0:01:13.280 --> 0:01:17.000 and making the most of every single legal opportunity around you. 0:01:17.400 --> 0:01:19.840 As always to keep Asik happy, because that's very important 0:01:19.880 --> 0:01:22.200 to me. I must remind everyone that this is general 0:01:22.240 --> 0:01:26.240 advice only. Anything you may hear is purely factually based 0:01:26.400 --> 0:01:28.440 and for you to go and talk to a financial planner, 0:01:28.440 --> 0:01:31.039 a mortgage broker or an accountant. So please know this 0:01:31.080 --> 0:01:36.400 is never personal advice, investment advice, strategic advice. All right, 0:01:36.640 --> 0:01:51.480 let us begin. Okay, good morning Richard, and good morning Adam. 0:01:51.520 --> 0:01:53.360 Thank you so much for coming in today's. 0:01:54.920 --> 0:01:57.200 Having us all right, so everyone of us is familiar 0:01:57.240 --> 0:02:00.000 with Adam McKay, who's you know, our favorite mortgage broker 0:02:00.000 --> 0:02:02.040 and obviously part of the Ask Adam series. 0:02:02.160 --> 0:02:04.320 Richard, can you tell me a little bit about yourself 0:02:04.360 --> 0:02:05.040 and what you do? 0:02:06.000 --> 0:02:09.360 Financial planner now for the best part of two decades 0:02:09.360 --> 0:02:12.120 here in Australia can probably tell them my accent, I'm 0:02:12.160 --> 0:02:16.160 not Australian by birth. I had a banking background in 0:02:16.200 --> 0:02:23.440 the UK and worked with you previously. Education qualifications, Masters 0:02:23.440 --> 0:02:24.680 and financial planning. 0:02:25.520 --> 0:02:29.960 So I am all right working with a clients as 0:02:29.960 --> 0:02:32.280 a financial planner. For me, that was really important that 0:02:32.320 --> 0:02:35.360 I was in touch with my client's mortgage broker and 0:02:35.400 --> 0:02:37.959 of course their accountant, so that I knew exactly what 0:02:38.040 --> 0:02:39.680 we're doing, and I knew that they were getting great 0:02:39.680 --> 0:02:41.519 advice and they were on the right type of product 0:02:41.560 --> 0:02:43.600 and they were making the right progress with their financial goals. 0:02:43.840 --> 0:02:46.840 Can you explain how you and Adam worked together for 0:02:46.960 --> 0:02:49.800 your clients to help them get ahead financially and how 0:02:49.800 --> 0:02:50.839 important that is as well. 0:02:51.240 --> 0:02:53.679 I'd certainly agree with all of us needing to work 0:02:53.720 --> 0:02:55.840 together because a lot of the time, when you have 0:02:56.480 --> 0:02:59.840 multiple people advising someone, if those people don't speak without 0:02:59.840 --> 0:03:03.240 them ever being the intention the advice can come sometimes 0:03:03.280 --> 0:03:05.600 conflict because no one knows what the other one's doing or. 0:03:05.600 --> 0:03:07.800 Saying one hundred percent. And what it annoys me the 0:03:07.840 --> 0:03:12.200 most is then balls get dropped and loopholes, like legal 0:03:12.240 --> 0:03:16.040 loopholes get missed, and that is just a huge waste 0:03:16.080 --> 0:03:19.000 of clients time and money because they're paying for this service, 0:03:19.000 --> 0:03:21.280 but they're not getting you know, the right advice and 0:03:21.360 --> 0:03:25.280 proactive advice. And point yeah, Adam, how would you how 0:03:25.280 --> 0:03:28.000 do you work with with Richard then, because obviously you 0:03:28.040 --> 0:03:31.720 do mind moorgage. You do my clients mortgages and investment 0:03:31.760 --> 0:03:34.320 loans and so forth. Like I know how you and 0:03:34.360 --> 0:03:36.560 I work together, but how do you work with Richard? 0:03:36.880 --> 0:03:40.760 Well, it's the bugbear of mine actually, really well, Richard, 0:03:40.880 --> 0:03:44.040 Richard's the Stones, So whenever he wants, wants me or 0:03:44.080 --> 0:03:47.920 needs me, you know, in relation to his clients, it's 0:03:47.960 --> 0:03:51.160 just it's just a yell out and were straight into. 0:03:51.080 --> 0:03:55.960 It, and I actually love it. All jokes aside. It's productive. 0:03:56.000 --> 0:03:58.920 It's you know, we're not wasting any time, We're getting 0:03:59.120 --> 0:04:02.080 getting down to it, getting things done without having to 0:04:03.400 --> 0:04:06.800 you know, with external parties, I find sometimes that. 0:04:07.720 --> 0:04:09.400 Oh it takes forever for someone to reply back to 0:04:09.480 --> 0:04:10.840 your return, your care that. 0:04:11.000 --> 0:04:16.200 Or there's just this you know, unspoken or undercurrent of 0:04:17.480 --> 0:04:20.760 not wanting to work together because you know they would 0:04:20.880 --> 0:04:26.760 rather have that client's business holistically. So yeah, look, I 0:04:26.800 --> 0:04:29.839 love working with Richard and we worked really well together 0:04:29.880 --> 0:04:30.760 for twenty years. 0:04:30.839 --> 0:04:31.039 Now. 0:04:32.279 --> 0:04:34.839 Do you ever have conflicting opinions as to what the 0:04:34.839 --> 0:04:36.720 client should do? And if so, how do you deal 0:04:36.760 --> 0:04:37.239 with it? 0:04:37.520 --> 0:04:42.920 Really? Sometimes not that often generally on the same page, 0:04:44.120 --> 0:04:47.600 but yeah, there's been times I think when we've had 0:04:47.640 --> 0:04:49.680 different views on how to structure something. 0:04:50.200 --> 0:04:56.000 And that can come from licensing and as compliance what 0:04:56.120 --> 0:05:01.520 you can you determined to be a. 0:05:00.040 --> 0:05:02.159 Sometimes what I think might work doesn't always work. 0:05:03.200 --> 0:05:05.800 Yeah, but no, majority of the time we're on the 0:05:05.839 --> 0:05:09.000 same page and work well together and get things done quickly. 0:05:10.080 --> 0:05:13.400 There have been a couple of not many, thank goodness, 0:05:13.440 --> 0:05:16.480 but there was one incident in particular. I wouldn't say incident, 0:05:16.520 --> 0:05:18.640 but there was a situation. And you may not be 0:05:18.640 --> 0:05:20.560 able to remember this because it's going back I think 0:05:20.640 --> 0:05:25.679 twelve years ago, but a client of mine and yours 0:05:25.880 --> 0:05:29.120 wanted to borrow an extremely large amount of money to 0:05:29.120 --> 0:05:32.880 buy a property. And I had didn't actually flag this 0:05:32.920 --> 0:05:35.359 with you yet I was and in fact you actually 0:05:35.360 --> 0:05:38.200 called me and said, I've just met with them. I 0:05:38.200 --> 0:05:40.040 can do it, it's fine, but I'm actually really worried. 0:05:40.040 --> 0:05:42.560 I think this is really dangerous what they're doing. And 0:05:42.600 --> 0:05:44.320 I was so relieved that you called me and said that, 0:05:44.320 --> 0:05:45.719 because I was like, I was thinking the same thing 0:05:45.760 --> 0:05:47.360 as well. And then of course I could then go 0:05:47.440 --> 0:05:49.560 to the client and say, look, I think this is 0:05:49.560 --> 0:05:51.040 a bad move what you're about to do, and I 0:05:51.040 --> 0:05:52.760 think you're going to alf under a huge amount of 0:05:52.760 --> 0:05:55.599 pressure and stress and taking on an unnecessary risk out 0:05:55.600 --> 0:05:57.440 of interest. Do you still do that? And do you 0:05:57.520 --> 0:05:59.159 do that together? When you go actually, I think this 0:05:59.240 --> 0:06:00.800 is you know your to close. 0:06:00.560 --> 0:06:03.400 The wind absolutely as recent as two weeks ago. I 0:06:03.400 --> 0:06:06.240 think we won't go into the detail. 0:06:05.960 --> 0:06:07.320 But yeah, of course absolutely. 0:06:07.400 --> 0:06:10.800 And then that's the core part of our roles being 0:06:11.200 --> 0:06:15.400 acting responsibly and in best interest duty for our clients. 0:06:15.839 --> 0:06:19.480 You have to I often think that as a financial planner, 0:06:19.520 --> 0:06:23.159 sometimes my value to my clients came from stopping them 0:06:23.200 --> 0:06:26.479 from doing something disastrous. Then looking at all the money 0:06:26.520 --> 0:06:29.080 I saved them in tax, how much interest I say them, 0:06:29.120 --> 0:06:29.640 how much time? 0:06:29.680 --> 0:06:30.960 I say them, perhaps I grew their. 0:06:30.839 --> 0:06:34.680 Share portfolios or in their porfolios or the superannuation portfolios. 0:06:34.960 --> 0:06:38.360 Was actually stopping them from making a monumental stuff up. 0:06:38.480 --> 0:06:40.680 You know, people, if I think forget about that, there 0:06:40.720 --> 0:06:42.760 to say hang on, stop, this is you're not looking 0:06:42.800 --> 0:06:43.480 at this the right way. 0:06:43.520 --> 0:06:44.360 You need to consider this. 0:06:44.360 --> 0:06:44.680 That and that. 0:06:44.760 --> 0:06:46.880 And you know, would you agree with that you've stopped 0:06:46.880 --> 0:06:49.360 clients from doing things that potentially were fraught with danger. 0:06:49.440 --> 0:06:51.880 Yeah, definitely, because you see that other clients who have 0:06:51.960 --> 0:06:54.520 friends that are in certainly in the property development business, 0:06:55.080 --> 0:07:00.240 and you know there's opportunities that get discussed between friends 0:07:00.320 --> 0:07:01.760 and then they come to you going, oh, look, we 0:07:01.800 --> 0:07:04.280 want to get into this. It's costing this amount of 0:07:04.279 --> 0:07:07.279 money to borrow, and you're like, really do you really 0:07:07.320 --> 0:07:10.960 want to? You know, put yourself under that type of pressure. 0:07:10.640 --> 0:07:13.640 And you can see things as a financial plannert that 0:07:13.680 --> 0:07:15.440 other people can't see. And you know, I think especially 0:07:15.440 --> 0:07:17.480 when you get a hot tip from a friend, you know, 0:07:17.480 --> 0:07:19.720 down at say the local pub or you know, sitting 0:07:19.720 --> 0:07:22.120 at a taxi, sometimes you know, you can kind of 0:07:22.160 --> 0:07:25.280 get caught up in the moment and you know, emotions 0:07:25.280 --> 0:07:27.120 to fiologic as Tom says. You know, you just think, 0:07:27.160 --> 0:07:28.640 oh yeah, I've got to do that, and the kind 0:07:28.640 --> 0:07:30.920 of panic sets in. But then you need that sort 0:07:30.960 --> 0:07:34.640 of educated and formed experience. Financial planet steps and goes 0:07:34.680 --> 0:07:36.840 okay or right, hang on, let's just look at the 0:07:36.880 --> 0:07:38.720 whole picture here and weigh up the risks. Are you 0:07:38.840 --> 0:07:41.440 really willing to take that much risk? Exactly as you said, 0:07:41.480 --> 0:07:43.560 Sometimes I know with myself clients, you've got like a 0:07:43.560 --> 0:07:46.600 hot tip, I'd say, well, all right, let's allocate two 0:07:46.640 --> 0:07:48.880 percent or five percent of the portfolio for that, and 0:07:49.320 --> 0:07:51.000 nine times out of ten, they'd come back to me 0:07:51.040 --> 0:07:53.960 with their tail between their legs, going, yeah, doubled in value, 0:07:53.960 --> 0:07:55.520 but I didn't get the tip to sell, so now 0:07:55.560 --> 0:07:57.320 it's worth close to nothing. 0:07:58.040 --> 0:08:00.360 So would you agree with zone? Like that happens a lot. 0:08:00.480 --> 0:08:02.840 We have the benefit of being, to a certain extent 0:08:03.040 --> 0:08:07.520 unemotional in how we explain things to our clients. We 0:08:07.560 --> 0:08:09.760 can pay a bit of Devil's advocate as well. Go, well, 0:08:09.760 --> 0:08:12.040 that's the plus side of it, and that's what you're 0:08:12.080 --> 0:08:14.680 focusing on. But what about this side? What happens if 0:08:14.720 --> 0:08:17.240 it doesn't work out? What then? What's your solution? How 0:08:17.280 --> 0:08:19.800 are you going to deal with that? And I think 0:08:19.800 --> 0:08:22.680 that's powerful that we can have those both sides of 0:08:22.680 --> 0:08:25.200 the conversation with them. 0:08:24.280 --> 0:08:28.480 Yeah, there's financial literacy as well for clients. You know, 0:08:28.520 --> 0:08:31.720 some clients we might have very high financial literacy. Some 0:08:31.800 --> 0:08:35.040 are very low and they come in you know, Yeah, 0:08:35.040 --> 0:08:36.640 it was at a barbecue last week and our friends 0:08:36.679 --> 0:08:38.559 bought this two million all the house. We want to 0:08:38.600 --> 0:08:41.360 do that. Okay, what's going to cost you X per month? 0:08:41.400 --> 0:08:42.760 Can you afford that? In no way? 0:08:43.440 --> 0:08:45.120 Yeah, they're not they're. 0:08:44.920 --> 0:08:48.640 Not aware of the costs of borrowing or repayments, and 0:08:48.679 --> 0:08:52.320 you know that they're just they're quite quite relaxed with it, 0:08:52.400 --> 0:08:54.920 and they need guidance because otherwise they will get themselves 0:08:54.920 --> 0:08:55.320 in trouble. 0:08:55.720 --> 0:08:58.640 And that financial literacy can be a double edged sword anyway, true, 0:08:58.679 --> 0:09:03.240 because you'll have clients that are consider themselves financially quite literate, 0:09:03.280 --> 0:09:04.640 but then you look at the time of the risks 0:09:04.679 --> 0:09:07.480 they're trying to take. You know, they tend to be 0:09:07.559 --> 0:09:11.120 more comfortable with risk, and that can always sometimes be 0:09:11.240 --> 0:09:11.880 to their detriment. 0:09:12.240 --> 0:09:14.200 I'm so glad you said that, because I would see 0:09:14.200 --> 0:09:17.040 that a lot with crypto, particularly when it's kicked off, 0:09:17.160 --> 0:09:19.719 and you know, they'd do a course on crypto and 0:09:19.760 --> 0:09:22.720 think they were, you know, experts, and they didn't actually 0:09:22.800 --> 0:09:27.080 understand essentially they were gambling with their retirement savings and 0:09:27.120 --> 0:09:29.640 the risks that they were taking on. But you know, 0:09:29.679 --> 0:09:33.199 they you almost get this inflated sense of financial literacy 0:09:33.200 --> 0:09:36.680 which actually isn't isn't there. I mean it's a huge problem. 0:09:36.880 --> 0:09:40.079 What are your thoughts, both of you on financial planners 0:09:40.200 --> 0:09:44.040 that can do you know, your mortgage and mortgage brokers 0:09:44.040 --> 0:09:46.160 that can do your financial planning, Like do you think 0:09:46.200 --> 0:09:48.720 it's you know, Jack of all trades master or nothing. 0:09:48.800 --> 0:09:50.040 Is that what you think? 0:09:50.520 --> 0:09:54.960 Yeah? I could, technically, if I did the courses, etc. 0:09:55.280 --> 0:09:57.880 Become a mortgage broken now. But how would I duplicate 0:09:57.920 --> 0:10:02.840 twenty years of experience? Impossible? You know, I'll stay in 0:10:02.880 --> 0:10:05.040 my lane, and I'm pretty happy in that lane. 0:10:05.120 --> 0:10:07.240 I'm sure there are some good operators that do it, 0:10:07.400 --> 0:10:09.640 but for me, it's very few. 0:10:10.320 --> 0:10:15.760 Yeah, I mean, you're you can only focus on so much. Interestingly, 0:10:16.000 --> 0:10:18.680 I got I was at an event in Japan a 0:10:18.679 --> 0:10:21.120 couple of weeks ago, and I got parked next to 0:10:21.360 --> 0:10:25.400 a billionaire and this billionaire was like, no one was 0:10:25.440 --> 0:10:27.440 talking to him, and I got puck tented. I was like, 0:10:27.960 --> 0:10:30.240 this is an amazing opportunity to speak to someone who's 0:10:30.280 --> 0:10:32.680 got incredible insights and knowledge and experience. And I asked 0:10:32.720 --> 0:10:34.240 him and I was like, what is the number one 0:10:34.440 --> 0:10:37.120 best advice you would give to anyone that wants to 0:10:37.120 --> 0:10:39.200 get ahead in their career or with their business. And 0:10:39.200 --> 0:10:41.160 he said it was the most amazing advice. He said, 0:10:41.240 --> 0:10:45.240 don't do what you love, do what you can specialize in. 0:10:45.840 --> 0:10:47.560 He said, don't try and do all these other different things. 0:10:47.559 --> 0:10:50.360 He goes, just do what you do well and can 0:10:50.400 --> 0:10:52.640 specialize in and that's your niche and just pretty much 0:10:52.640 --> 0:10:54.720 hone in on that and that was all his advice. 0:10:54.760 --> 0:10:57.000 And I walked away thinking, but then I was like, actually, 0:10:57.080 --> 0:10:59.760 know that is brilliant. Don't try and like be it 0:10:59.800 --> 0:11:02.559 all because it can't possibly do. There's only certain amount 0:11:02.559 --> 0:11:04.319 of brain cells, there's only amount of so much more 0:11:04.400 --> 0:11:06.200 time in the day. And also when I think about 0:11:06.200 --> 0:11:08.480 the mortgage market, every time you and I speak, and 0:11:08.520 --> 0:11:10.920 we speak a lot, there's something different going on in 0:11:10.920 --> 0:11:11.559 the industry. 0:11:11.720 --> 0:11:12.880 And that's just your industry. 0:11:13.000 --> 0:11:15.840 My industry and richest industry is hectic as well, Like 0:11:16.160 --> 0:11:19.680 you can't possibly keep your finger on the pulse. All right, Richard, 0:11:19.679 --> 0:11:21.760 I want to ask you some questions really about financial 0:11:21.760 --> 0:11:24.400 planning because I'm now focusing purely on the financial ligacy 0:11:24.400 --> 0:11:26.760 with Sugar Mama and YouTube and my next book and 0:11:26.840 --> 0:11:29.560 obviously the podcast and the social media and keynotes, so 0:11:29.559 --> 0:11:32.880 I don't look after clients individually anymore. I'm more about 0:11:32.880 --> 0:11:35.000 trying to, I guess, build up that financial literacy across 0:11:35.000 --> 0:11:37.960 the country and across the world. You are taking on clients, 0:11:38.040 --> 0:11:40.760 you are seeing clients every day. What are you seeing 0:11:40.800 --> 0:11:45.400 as the most helpful financial strategy. With the rising post 0:11:45.440 --> 0:11:48.160 of living, rising interest rates, you know obviously the financial 0:11:48.200 --> 0:11:49.840 stress and pressure. What are you seeing is the most 0:11:49.880 --> 0:11:53.040 popular strategy that you are using with your clients at 0:11:53.040 --> 0:11:56.000 the moment to reduce costs, reduce costs and just as it, 0:11:56.080 --> 0:11:58.200 keep your head above water, but also still keep on 0:11:58.240 --> 0:11:59.880 working on those financial. 0:11:59.440 --> 0:12:03.240 Goals to reduce costs. We touched on this earlier with 0:12:03.880 --> 0:12:06.480 speaking to your lender seeing if you can sharpen those 0:12:06.480 --> 0:12:10.920 interest rates. That's certainly one way you can review your budget, 0:12:10.960 --> 0:12:14.080 but I think just rining down a budget isn't really 0:12:14.120 --> 0:12:16.520 the best way to get a grasp on you're spending 0:12:16.600 --> 0:12:18.520 because it's nine times out of ten it won't be 0:12:18.559 --> 0:12:19.679 what you're actually spending. 0:12:19.760 --> 0:12:20.439 This is what I say. 0:12:20.480 --> 0:12:22.880 I say a budget is just a flaky piece of paper. 0:12:22.960 --> 0:12:25.080 It's a flaking intention going yes, I'm going to spend 0:12:25.080 --> 0:12:27.640 this much on grocries, this much on my mobile, and 0:12:27.720 --> 0:12:30.840 your membership unless you're sticking to it, is useless. 0:12:30.960 --> 0:12:33.240 I think your best starting point rather than doing that, 0:12:33.320 --> 0:12:36.440 is to track your spending honestly for the next four 0:12:36.480 --> 0:12:39.520 weeks and then going back and reviewing that and seeing 0:12:39.559 --> 0:12:41.480 where your money is going and where you can actually 0:12:41.600 --> 0:12:44.400 reduce because you know, if you're going to the working 0:12:44.400 --> 0:12:46.360 every day, the amount of money you can just spend 0:12:46.400 --> 0:12:48.400 on for a for all things around the office, you know, 0:12:48.520 --> 0:12:52.800 coffee here, lunch here, getting a snack here. You know, 0:12:53.360 --> 0:12:55.080 you add all those up and it can end up 0:12:55.080 --> 0:12:57.200 being quite a fair bit. But without knowing that, without 0:12:57.240 --> 0:12:59.680 actually going to the effort of seeing where your money 0:12:59.720 --> 0:13:02.000 is being spent over say a four week period, it's 0:13:02.040 --> 0:13:05.200 hard to think back and well hard to then adjust 0:13:05.200 --> 0:13:08.319 your spending to reduce that. I think reviewing things like 0:13:08.360 --> 0:13:09.760 your insurances can make sense. 0:13:09.920 --> 0:13:12.880 That's a really interesting one. How you know, I've had 0:13:12.920 --> 0:13:15.800 a couple of dms from people recently on Instagram saying 0:13:16.080 --> 0:13:18.600 I'm paying so much per month in you know, my 0:13:18.640 --> 0:13:21.520 income protection policy and my trauma policy. You know, I'm 0:13:21.559 --> 0:13:24.200 tempted to cut it to save some money. And obviously 0:13:24.200 --> 0:13:25.880 I'm like, don't do that. You need to go get 0:13:25.880 --> 0:13:28.760 advice straight away because you know, potentially putting yourself under 0:13:28.720 --> 0:13:30.679 a huge risk. And they actually maybe other options where 0:13:30.720 --> 0:13:32.680 you can speak to an insurance company. If I was 0:13:32.679 --> 0:13:34.960 that person calling you saying, hey, Richard, I'm paying like 0:13:34.960 --> 0:13:37.400 three hundred dollars a month of my income protection. Things 0:13:37.440 --> 0:13:39.400 are starting to get really tight under the premise of 0:13:39.440 --> 0:13:41.880 general advice, Like, what would you be saying back to me. 0:13:42.880 --> 0:13:44.839 I would be going back and re quoting with your 0:13:44.840 --> 0:13:47.839 existing insurer. You are starting to see more and more 0:13:47.880 --> 0:13:52.040 now where insurers are offering better rates. They've repriced their products, 0:13:52.320 --> 0:13:55.480 and they're offering better rates to new customers. So I 0:13:55.480 --> 0:13:57.960 had it with a recent client where their life and 0:13:58.000 --> 0:14:00.280 TPD had gone up by about thirty percent in year. 0:14:00.600 --> 0:14:03.200 We saw the renewer come through, and just out of interest, 0:14:03.360 --> 0:14:07.199 I re quoted at exactly the same client as a 0:14:07.240 --> 0:14:09.400 new customer. It was thirty percent less. 0:14:09.800 --> 0:14:10.120 Wow. 0:14:10.240 --> 0:14:12.120 The downside is you have to go through the underwriting 0:14:12.120 --> 0:14:12.760 process again. 0:14:12.840 --> 0:14:13.760 Yeah, and of course. 0:14:13.559 --> 0:14:15.360 If you've had a change in health that's also a 0:14:15.360 --> 0:14:16.120 problem as well. 0:14:16.160 --> 0:14:18.600 But I think there is definite savings to be had 0:14:18.640 --> 0:14:21.280 on your personal insurances just by either re quoting with 0:14:21.360 --> 0:14:24.000 your existing insurer or looking at someone else. It's the 0:14:24.000 --> 0:14:25.800 same with your home and contents. My home and contents 0:14:25.840 --> 0:14:28.200 went up massively this year. I won't name who the 0:14:28.280 --> 0:14:30.720 insurer was, but you rang them, they wouldn't do anything 0:14:31.080 --> 0:14:34.240 by switching. I saved twenty five percent just by switching 0:14:34.240 --> 0:14:35.520 to a different insurer like the light. 0:14:35.800 --> 0:14:36.560 That's huge. 0:14:37.160 --> 0:14:39.320 Gosh, I probably should get Tom to give you a 0:14:39.360 --> 0:14:43.560 call because we have his life, TPD, trauma and income 0:14:43.560 --> 0:14:45.960 protection all bundled together in the one policy and it's 0:14:46.080 --> 0:14:51.480 obviously gone up after our mortgage, daycare, groceries. That's our 0:14:51.560 --> 0:14:54.480 fourth gest expense. And I mean, when you're looking at 0:14:54.480 --> 0:14:56.600 cutting things, a lot of people think about cutting out, 0:14:56.640 --> 0:14:56.800 is it? 0:14:56.800 --> 0:14:57.040 I mean? 0:14:57.080 --> 0:14:58.600 And there are so many other options. You can take 0:14:58.600 --> 0:15:00.520 out a few benefits within the pol to help bring 0:15:00.520 --> 0:15:01.840 down the premiums are there are lots of things. 0:15:02.120 --> 0:15:05.280 Strinkly benefit period, you know, depending on how old you are. 0:15:05.760 --> 0:15:08.560 You know, if you're in your late late forties, early fifties, 0:15:08.760 --> 0:15:11.760 a five year benefit period might be sufficient because if 0:15:11.760 --> 0:15:14.160 you if you've been claiming on or receiving a benefit 0:15:14.320 --> 0:15:17.760 five years, the odds are you weren't going back to work, Yeah, 0:15:17.800 --> 0:15:21.360 and that means your TPD policy would possibly pay out 0:15:21.360 --> 0:15:24.360 as well. We shall then bridge that gap between five 0:15:24.400 --> 0:15:25.200 to vibe. 0:15:25.680 --> 0:15:28.440 What are your thoughts about structuring then insurances through your 0:15:28.440 --> 0:15:30.880 superannuation so it's not coming directly out of your back pocket, 0:15:30.920 --> 0:15:33.440 it's being at least paid by super. 0:15:33.680 --> 0:15:36.440 Life in TPD. I don't mind that as a strategy 0:15:36.440 --> 0:15:39.400 because effectively you've got pre tax dollars paying those those premiums. 0:15:39.600 --> 0:15:41.920 There is a bit of a tax issue on the 0:15:41.960 --> 0:15:45.320 TPD payout potentially. Got to be bear in mind. I'm 0:15:45.320 --> 0:15:49.080 not a massive fan of income protection through SUPER unless 0:15:49.120 --> 0:15:52.760 cash flow is tasting that. Because income protection premiums are 0:15:52.760 --> 0:15:54.840 tax deductible. Depending on your marginal rate, you're going to 0:15:54.920 --> 0:15:56.440 get a fair chunk back when you do your tax 0:15:56.480 --> 0:15:59.360 returns and traw me. Well, while you could put that 0:15:59.400 --> 0:16:01.960 through SUPER, the problem with that is you could. You 0:16:01.960 --> 0:16:04.320 could Yeah, indeed it could pay it. You could meet 0:16:04.320 --> 0:16:06.560 the trauma definition and it could pay. Actually, fun don't 0:16:06.560 --> 0:16:08.520 meet the condition of release's stuck in SUPER. 0:16:08.600 --> 0:16:11.040 So all right, I am going to grab a copy 0:16:11.040 --> 0:16:13.120 of Thom's policy and send it over to you to 0:16:13.120 --> 0:16:14.520 have a little look at it and see if you 0:16:14.560 --> 0:16:17.560 can help us out, because it's it's obviously it's an 0:16:17.560 --> 0:16:20.360 instant saving if and I know that Tom hasn't a change. 0:16:20.160 --> 0:16:22.840 As far as I know, are going to go one direction. 0:16:22.920 --> 0:16:25.640 Well if you if it makes sense that it will 0:16:25.640 --> 0:16:27.560 not make sense, it's shocking, But if it's cheaper to 0:16:28.280 --> 0:16:30.600 look at taking out a new policy. You know, these 0:16:30.640 --> 0:16:31.880 savings really do add up. 0:16:32.360 --> 0:16:34.720 Indeed, you also might find you have more cover than 0:16:34.720 --> 0:16:37.880 you need. Yeah, you know, because you know, typically take 0:16:37.920 --> 0:16:40.040 out a level of cover based on where we are 0:16:40.080 --> 0:16:42.440 financially at that period of time. As we get older, 0:16:42.640 --> 0:16:45.160 we're getting close from close to retirement, so that need 0:16:45.240 --> 0:16:46.800 for cover should go down, not up. 0:16:47.240 --> 0:16:48.880 And that's why you need to have a financial plant 0:16:48.880 --> 0:16:50.880 that you see on a regular basis, because they should 0:16:50.960 --> 0:16:52.320 be looking at this going. You know what, we can 0:16:52.360 --> 0:16:54.680 save you one hundred dollars a month by reducing your 0:16:55.280 --> 0:16:57.480 life policy from a million dollars out of five hundred, 0:16:57.640 --> 0:17:00.560 you're not pretty much most of your mortgage off. People really, 0:17:00.560 --> 0:17:02.920 I think forget about that ongoing service that comes from 0:17:02.960 --> 0:17:05.359 financial planning and they're constantly working. 0:17:05.000 --> 0:17:06.160 For you and your goals. 0:17:06.440 --> 0:17:09.160 Now, as we were out today's episode, can you share 0:17:09.240 --> 0:17:13.840 with us five great practical steps that our listeners can 0:17:13.840 --> 0:17:16.360 follow today to help improve their financial wellbeing. 0:17:17.520 --> 0:17:20.240 I think number one would be the stay three tax 0:17:20.280 --> 0:17:22.560 cuts that are coming. Yeah, you know, that's going to 0:17:22.600 --> 0:17:26.040 give people an extra chunk of money anywhere from you know, 0:17:26.080 --> 0:17:27.920 if you're on that fifty thousand dollars a year mark, 0:17:27.960 --> 0:17:29.800 nine hundred do dollars. I think it is you're up 0:17:29.840 --> 0:17:31.919 to if you're on the one twenty one hundred and 0:17:31.920 --> 0:17:33.960 twenty grand a year, then it's like a couple of 0:17:34.040 --> 0:17:36.280 two and a half thousand. I think taking advantage of 0:17:36.359 --> 0:17:39.280 those and doing something with that money rather than it's 0:17:39.280 --> 0:17:42.399 sort of disappearing into the lifestyle creat Yeah indeed, you know, 0:17:42.480 --> 0:17:45.200 I either use that money's a pay extra, a few mortgage, 0:17:45.359 --> 0:17:48.000 put it into super fund, your own little sort of 0:17:48.040 --> 0:17:51.840 investment account, do something with that that sort of leg 0:17:51.920 --> 0:17:54.439 up that we're getting, make it count. Yeah, indeed, I 0:17:54.440 --> 0:17:57.760 think that's certainly I'm starting to discuss that more and 0:17:57.760 --> 0:18:00.640 more with clients now because obviously it's lie ones earlier 0:18:00.640 --> 0:18:03.320 stressed around the corner. There's other things you can probably 0:18:03.320 --> 0:18:06.000 look at as well to maybe reduce some costs. Look 0:18:06.000 --> 0:18:08.560 at your credit cards. You know a lot of cards 0:18:08.680 --> 0:18:11.360 have those annual fees because of the add ons you get, 0:18:11.359 --> 0:18:14.680 like travel insurance or lounge passes, that type of thing. 0:18:14.720 --> 0:18:17.760 If you're not going on overseas holidays as much, why 0:18:17.880 --> 0:18:20.120