Speaker 1: Good morning everyone, and welcome back to Sugar Mama's Fireplay.
Speaker 1: I am your host financial planner, Anna Campbell, and as always,
Speaker 1: I'm here every Monday morning at five am, Rain, Hail
Speaker 1: or shine to help make sure that you start your
Speaker 1: week off on an informed, inspired and educated note when
Speaker 1: it comes to achieving all of those very important financial
Speaker 1: goals and dreams. Now, this morning, we have a bit
Speaker 1: of a special episode because not only do we have
Speaker 1: adam Our Numero uno favorite mortgage broker who I know
Speaker 1: and trust for over eighteen years, but we actually have
Speaker 1: another colleague of mine, Richard Richard Nichols, who's also in
Speaker 1: fact a financial planner and also someone that I have
Speaker 1: known for pretty much the same amount of time as.
Speaker 2: Well, because we used to work together.
Speaker 1: So you are going to have essentially two financial planners
Speaker 1: on today's episode. I guess challenging each other and picking
Speaker 1: each other's brain and really exploring what options are available
Speaker 1: out there right now with the backing of a financial
Speaker 1: planner to help you get ahead of financial and seeing
Speaker 1: how important it is to have your mortgage broker and
Speaker 1: your financial planner and a certain degree of his course
Speaker 1: to your accountant. All singing off the same page, so
Speaker 1: that you are actually smashing your financial goals and dreams
Speaker 1: and making the most of every single legal opportunity around you.
Speaker 1: As always to keep Asik happy, because that's very important
Speaker 1: to me. I must remind everyone that this is general
Speaker 1: advice only. Anything you may hear is purely factually based
Speaker 1: and for you to go and talk to a financial planner,
Speaker 1: a mortgage broker or an accountant. So please know this
Speaker 1: is never personal advice, investment advice, strategic advice. All right,
Speaker 1: let us begin. Okay, good morning Richard, and good morning Adam.
Speaker 2: Thank you so much for coming in today's.
Speaker 1: Having us all right, so everyone of us is familiar
Speaker 1: with Adam McKay, who's you know, our favorite mortgage broker
Speaker 1: and obviously part of the Ask Adam series.
Speaker 2: Richard, can you tell me a little bit about yourself
Speaker 2: and what you do?
Speaker 3: Financial planner now for the best part of two decades
Speaker 3: here in Australia can probably tell them my accent, I'm
Speaker 3: not Australian by birth. I had a banking background in
Speaker 3: the UK and worked with you previously. Education qualifications, Masters
Speaker 3: and financial planning.
Speaker 1: So I am all right working with a clients as
Speaker 1: a financial planner. For me, that was really important that
Speaker 1: I was in touch with my client's mortgage broker and
Speaker 1: of course their accountant, so that I knew exactly what
Speaker 1: we're doing, and I knew that they were getting great
Speaker 1: advice and they were on the right type of product
Speaker 1: and they were making the right progress with their financial goals.
Speaker 1: Can you explain how you and Adam worked together for
Speaker 1: your clients to help them get ahead financially and how
Speaker 1: important that is as well.
Speaker 3: I'd certainly agree with all of us needing to work
Speaker 3: together because a lot of the time, when you have
Speaker 3: multiple people advising someone, if those people don't speak without
Speaker 3: them ever being the intention the advice can come sometimes
Speaker 3: conflict because no one knows what the other one's doing or.
Speaker 1: Saying one hundred percent. And what it annoys me the
Speaker 1: most is then balls get dropped and loopholes, like legal
Speaker 1: loopholes get missed, and that is just a huge waste
Speaker 1: of clients time and money because they're paying for this service,
Speaker 1: but they're not getting you know, the right advice and
Speaker 1: proactive advice. And point yeah, Adam, how would you how
Speaker 1: do you work with with Richard then, because obviously you
Speaker 1: do mind moorgage. You do my clients mortgages and investment
Speaker 1: loans and so forth. Like I know how you and
Speaker 1: I work together, but how do you work with Richard?
Speaker 4: Well, it's the bugbear of mine actually, really well, Richard,
Speaker 4: Richard's the Stones, So whenever he wants, wants me or
Speaker 4: needs me, you know, in relation to his clients, it's
Speaker 4: just it's just a yell out and were straight into.
Speaker 5: It, and I actually love it. All jokes aside. It's productive.
Speaker 5: It's you know, we're not wasting any time, We're getting
Speaker 5: getting down to it, getting things done without having to
Speaker 5: you know, with external parties, I find sometimes that.
Speaker 1: Oh it takes forever for someone to reply back to
Speaker 1: your return, your care that.
Speaker 5: Or there's just this you know, unspoken or undercurrent of
Speaker 5: not wanting to work together because you know they would
Speaker 5: rather have that client's business holistically. So yeah, look, I
Speaker 5: love working with Richard and we worked really well together
Speaker 5: for twenty years.
Speaker 3: Now.
Speaker 1: Do you ever have conflicting opinions as to what the
Speaker 1: client should do? And if so, how do you deal
Speaker 1: with it?
Speaker 3: Really? Sometimes not that often generally on the same page,
Speaker 3: but yeah, there's been times I think when we've had
Speaker 3: different views on how to structure something.
Speaker 5: And that can come from licensing and as compliance what
Speaker 5: you can you determined to be a.
Speaker 3: Sometimes what I think might work doesn't always work.
Speaker 5: Yeah, but no, majority of the time we're on the
Speaker 5: same page and work well together and get things done quickly.
Speaker 1: There have been a couple of not many, thank goodness,
Speaker 1: but there was one incident in particular. I wouldn't say incident,
Speaker 1: but there was a situation. And you may not be
Speaker 1: able to remember this because it's going back I think
Speaker 1: twelve years ago, but a client of mine and yours
Speaker 1: wanted to borrow an extremely large amount of money to
Speaker 1: buy a property. And I had didn't actually flag this
Speaker 1: with you yet I was and in fact you actually
Speaker 1: called me and said, I've just met with them. I
Speaker 1: can do it, it's fine, but I'm actually really worried.
Speaker 1: I think this is really dangerous what they're doing. And
Speaker 1: I was so relieved that you called me and said that,
Speaker 1: because I was like, I was thinking the same thing
Speaker 1: as well. And then of course I could then go
Speaker 1: to the client and say, look, I think this is
Speaker 1: a bad move what you're about to do, and I
Speaker 1: think you're going to alf under a huge amount of
Speaker 1: pressure and stress and taking on an unnecessary risk out
Speaker 1: of interest. Do you still do that? And do you
Speaker 1: do that together? When you go actually, I think this
Speaker 1: is you know your to close.
Speaker 4: The wind absolutely as recent as two weeks ago. I
Speaker 4: think we won't go into the detail.
Speaker 3: But yeah, of course absolutely.
Speaker 5: And then that's the core part of our roles being
Speaker 5: acting responsibly and in best interest duty for our clients.
Speaker 1: You have to I often think that as a financial planner,
Speaker 1: sometimes my value to my clients came from stopping them
Speaker 1: from doing something disastrous. Then looking at all the money
Speaker 1: I saved them in tax, how much interest I say them,
Speaker 1: how much time?
Speaker 2: I say them, perhaps I grew their.
Speaker 1: Share portfolios or in their porfolios or the superannuation portfolios.
Speaker 1: Was actually stopping them from making a monumental stuff up.
Speaker 1: You know, people, if I think forget about that, there
Speaker 1: to say hang on, stop, this is you're not looking
Speaker 1: at this the right way.
Speaker 2: You need to consider this.
Speaker 4: That and that.
Speaker 1: And you know, would you agree with that you've stopped
Speaker 1: clients from doing things that potentially were fraught with danger.
Speaker 3: Yeah, definitely, because you see that other clients who have
Speaker 3: friends that are in certainly in the property development business,
Speaker 3: and you know there's opportunities that get discussed between friends
Speaker 3: and then they come to you going, oh, look, we
Speaker 3: want to get into this. It's costing this amount of
Speaker 3: money to borrow, and you're like, really do you really
Speaker 3: want to? You know, put yourself under that type of pressure.
Speaker 1: And you can see things as a financial plannert that
Speaker 1: other people can't see. And you know, I think especially
Speaker 1: when you get a hot tip from a friend, you know,
Speaker 1: down at say the local pub or you know, sitting
Speaker 1: at a taxi, sometimes you know, you can kind of
Speaker 1: get caught up in the moment and you know, emotions
Speaker 1: to fiologic as Tom says. You know, you just think,
Speaker 1: oh yeah, I've got to do that, and the kind
Speaker 1: of panic sets in. But then you need that sort
Speaker 1: of educated and formed experience. Financial planet steps and goes
Speaker 1: okay or right, hang on, let's just look at the
Speaker 1: whole picture here and weigh up the risks. Are you
Speaker 1: really willing to take that much risk? Exactly as you said,
Speaker 1: Sometimes I know with myself clients, you've got like a
Speaker 1: hot tip, I'd say, well, all right, let's allocate two
Speaker 1: percent or five percent of the portfolio for that, and
Speaker 1: nine times out of ten, they'd come back to me
Speaker 1: with their tail between their legs, going, yeah, doubled in value,
Speaker 1: but I didn't get the tip to sell, so now
Speaker 1: it's worth close to nothing.
Speaker 2: So would you agree with zone? Like that happens a lot.
Speaker 3: We have the benefit of being, to a certain extent
Speaker 3: unemotional in how we explain things to our clients. We
Speaker 3: can pay a bit of Devil's advocate as well. Go, well,
Speaker 3: that's the plus side of it, and that's what you're
Speaker 3: focusing on. But what about this side? What happens if
Speaker 3: it doesn't work out? What then? What's your solution? How
Speaker 3: are you going to deal with that? And I think
Speaker 3: that's powerful that we can have those both sides of
Speaker 3: the conversation with them.
Speaker 5: Yeah, there's financial literacy as well for clients. You know,
Speaker 5: some clients we might have very high financial literacy. Some
Speaker 5: are very low and they come in you know, Yeah,
Speaker 5: it was at a barbecue last week and our friends
Speaker 5: bought this two million all the house. We want to
Speaker 5: do that. Okay, what's going to cost you X per month?
Speaker 5: Can you afford that? In no way?
Speaker 4: Yeah, they're not they're.
Speaker 5: Not aware of the costs of borrowing or repayments, and
Speaker 5: you know that they're just they're quite quite relaxed with it,
Speaker 5: and they need guidance because otherwise they will get themselves
Speaker 5: in trouble.
Speaker 3: And that financial literacy can be a double edged sword anyway, true,
Speaker 3: because you'll have clients that are consider themselves financially quite literate,
Speaker 3: but then you look at the time of the risks
Speaker 3: they're trying to take. You know, they tend to be
Speaker 3: more comfortable with risk, and that can always sometimes be
Speaker 3: to their detriment.
Speaker 1: I'm so glad you said that, because I would see
Speaker 1: that a lot with crypto, particularly when it's kicked off,
Speaker 1: and you know, they'd do a course on crypto and
Speaker 1: think they were, you know, experts, and they didn't actually
Speaker 1: understand essentially they were gambling with their retirement savings and
Speaker 1: the risks that they were taking on. But you know,
Speaker 1: they you almost get this inflated sense of financial literacy
Speaker 1: which actually isn't isn't there. I mean it's a huge problem.
Speaker 1: What are your thoughts, both of you on financial planners
Speaker 1: that can do you know, your mortgage and mortgage brokers
Speaker 1: that can do your financial planning, Like do you think
Speaker 1: it's you know, Jack of all trades master or nothing.
Speaker 2: Is that what you think?
Speaker 3: Yeah? I could, technically, if I did the courses, etc.
Speaker 3: Become a mortgage broken now. But how would I duplicate
Speaker 3: twenty years of experience? Impossible? You know, I'll stay in
Speaker 3: my lane, and I'm pretty happy in that lane.
Speaker 5: I'm sure there are some good operators that do it,
Speaker 5: but for me, it's very few.
Speaker 1: Yeah, I mean, you're you can only focus on so much. Interestingly,
Speaker 1: I got I was at an event in Japan a
Speaker 1: couple of weeks ago, and I got parked next to
Speaker 1: a billionaire and this billionaire was like, no one was
Speaker 1: talking to him, and I got puck tented. I was like,
Speaker 1: this is an amazing opportunity to speak to someone who's
Speaker 1: got incredible insights and knowledge and experience. And I asked
Speaker 1: him and I was like, what is the number one
Speaker 1: best advice you would give to anyone that wants to
Speaker 1: get ahead in their career or with their business. And
Speaker 1: he said it was the most amazing advice. He said,
Speaker 1: don't do what you love, do what you can specialize in.
Speaker 1: He said, don't try and do all these other different things.
Speaker 1: He goes, just do what you do well and can
Speaker 1: specialize in and that's your niche and just pretty much
Speaker 1: hone in on that and that was all his advice.
Speaker 1: And I walked away thinking, but then I was like, actually,
Speaker 1: know that is brilliant. Don't try and like be it
Speaker 1: all because it can't possibly do. There's only certain amount
Speaker 1: of brain cells, there's only amount of so much more
Speaker 1: time in the day. And also when I think about
Speaker 1: the mortgage market, every time you and I speak, and
Speaker 1: we speak a lot, there's something different going on in
Speaker 1: the industry.
Speaker 2: And that's just your industry.
Speaker 1: My industry and richest industry is hectic as well, Like
Speaker 1: you can't possibly keep your finger on the pulse. All right, Richard,
Speaker 1: I want to ask you some questions really about financial
Speaker 1: planning because I'm now focusing purely on the financial ligacy
Speaker 1: with Sugar Mama and YouTube and my next book and
Speaker 1: obviously the podcast and the social media and keynotes, so
Speaker 1: I don't look after clients individually anymore. I'm more about
Speaker 1: trying to, I guess, build up that financial literacy across
Speaker 1: the country and across the world. You are taking on clients,
Speaker 1: you are seeing clients every day. What are you seeing
Speaker 1: as the most helpful financial strategy. With the rising post
Speaker 1: of living, rising interest rates, you know obviously the financial
Speaker 1: stress and pressure. What are you seeing is the most
Speaker 1: popular strategy that you are using with your clients at
Speaker 1: the moment to reduce costs, reduce costs and just as it,
Speaker 1: keep your head above water, but also still keep on
Speaker 1: working on those financial.
Speaker 3: Goals to reduce costs. We touched on this earlier with
Speaker 3: speaking to your lender seeing if you can sharpen those
Speaker 3: interest rates. That's certainly one way you can review your budget,
Speaker 3: but I think just rining down a budget isn't really
Speaker 3: the best way to get a grasp on you're spending
Speaker 3: because it's nine times out of ten it won't be
Speaker 3: what you're actually spending.
Speaker 2: This is what I say.
Speaker 1: I say a budget is just a flaky piece of paper.
Speaker 1: It's a flaking intention going yes, I'm going to spend
Speaker 1: this much on grocries, this much on my mobile, and
Speaker 1: your membership unless you're sticking to it, is useless.
Speaker 3: I think your best starting point rather than doing that,
Speaker 3: is to track your spending honestly for the next four
Speaker 3: weeks and then going back and reviewing that and seeing
Speaker 3: where your money is going and where you can actually
Speaker 3: reduce because you know, if you're going to the working
Speaker 3: every day, the amount of money you can just spend
Speaker 3: on for a for all things around the office, you know,
Speaker 3: coffee here, lunch here, getting a snack here. You know,
Speaker 3: you add all those up and it can end up
Speaker 3: being quite a fair bit. But without knowing that, without
Speaker 3: actually going to the effort of seeing where your money
Speaker 3: is being spent over say a four week period, it's
Speaker 3: hard to think back and well hard to then adjust
Speaker 3: your spending to reduce that. I think reviewing things like
Speaker 3: your insurances can make sense.
Speaker 1: That's a really interesting one. How you know, I've had
Speaker 1: a couple of dms from people recently on Instagram saying
Speaker 1: I'm paying so much per month in you know, my
Speaker 1: income protection policy and my trauma policy. You know, I'm
Speaker 1: tempted to cut it to save some money. And obviously
Speaker 1: I'm like, don't do that. You need to go get
Speaker 1: advice straight away because you know, potentially putting yourself under
Speaker 1: a huge risk. And they actually maybe other options where
Speaker 1: you can speak to an insurance company. If I was
Speaker 1: that person calling you saying, hey, Richard, I'm paying like
Speaker 1: three hundred dollars a month of my income protection. Things
Speaker 1: are starting to get really tight under the premise of
Speaker 1: general advice, Like, what would you be saying back to me.
Speaker 3: I would be going back and re quoting with your
Speaker 3: existing insurer. You are starting to see more and more
Speaker 3: now where insurers are offering better rates. They've repriced their products,
Speaker 3: and they're offering better rates to new customers. So I
Speaker 3: had it with a recent client where their life and
Speaker 3: TPD had gone up by about thirty percent in year.
Speaker 3: We saw the renewer come through, and just out of interest,
Speaker 3: I re quoted at exactly the same client as a
Speaker 3: new customer. It was thirty percent less.
Speaker 2: Wow.
Speaker 3: The downside is you have to go through the underwriting
Speaker 3: process again.
Speaker 2: Yeah, and of course.
Speaker 1: If you've had a change in health that's also a
Speaker 1: problem as well.
Speaker 3: But I think there is definite savings to be had
Speaker 3: on your personal insurances just by either re quoting with
Speaker 3: your existing insurer or looking at someone else. It's the
Speaker 3: same with your home and contents. My home and contents
Speaker 3: went up massively this year. I won't name who the
Speaker 3: insurer was, but you rang them, they wouldn't do anything
Speaker 3: by switching. I saved twenty five percent just by switching
Speaker 3: to a different insurer like the light.
Speaker 2: That's huge.
Speaker 1: Gosh, I probably should get Tom to give you a
Speaker 1: call because we have his life, TPD, trauma and income
Speaker 1: protection all bundled together in the one policy and it's
Speaker 1: obviously gone up after our mortgage, daycare, groceries. That's our
Speaker 1: fourth gest expense. And I mean, when you're looking at
Speaker 1: cutting things, a lot of people think about cutting out,
Speaker 1: is it?
Speaker 2: I mean?
Speaker 1: And there are so many other options. You can take
Speaker 1: out a few benefits within the pol to help bring
Speaker 1: down the premiums are there are lots of things.
Speaker 3: Strinkly benefit period, you know, depending on how old you are.
Speaker 3: You know, if you're in your late late forties, early fifties,
Speaker 3: a five year benefit period might be sufficient because if
Speaker 3: you if you've been claiming on or receiving a benefit
Speaker 3: five years, the odds are you weren't going back to work, Yeah,
Speaker 3: and that means your TPD policy would possibly pay out
Speaker 3: as well. We shall then bridge that gap between five
Speaker 3: to vibe.
Speaker 1: What are your thoughts about structuring then insurances through your
Speaker 1: superannuation so it's not coming directly out of your back pocket,
Speaker 1: it's being at least paid by super.
Speaker 3: Life in TPD. I don't mind that as a strategy
Speaker 3: because effectively you've got pre tax dollars paying those those premiums.
Speaker 3: There is a bit of a tax issue on the
Speaker 3: TPD payout potentially. Got to be bear in mind. I'm
Speaker 3: not a massive fan of income protection through SUPER unless
Speaker 3: cash flow is tasting that. Because income protection premiums are
Speaker 3: tax deductible. Depending on your marginal rate, you're going to
Speaker 3: get a fair chunk back when you do your tax
Speaker 3: returns and traw me. Well, while you could put that
Speaker 3: through SUPER, the problem with that is you could. You
Speaker 3: could Yeah, indeed it could pay it. You could meet
Speaker 3: the trauma definition and it could pay. Actually, fun don't
Speaker 3: meet the condition of release's stuck in SUPER.
Speaker 1: So all right, I am going to grab a copy
Speaker 1: of Thom's policy and send it over to you to
Speaker 1: have a little look at it and see if you
Speaker 1: can help us out, because it's it's obviously it's an
Speaker 1: instant saving if and I know that Tom hasn't a change.
Speaker 3: As far as I know, are going to go one direction.
Speaker 1: Well if you if it makes sense that it will
Speaker 1: not make sense, it's shocking, But if it's cheaper to
Speaker 1: look at taking out a new policy. You know, these
Speaker 1: savings really do add up.
Speaker 3: Indeed, you also might find you have more cover than
Speaker 3: you need. Yeah, you know, because you know, typically take
Speaker 3: out a level of cover based on where we are
Speaker 3: financially at that period of time. As we get older,
Speaker 3: we're getting close from close to retirement, so that need
Speaker 3: for cover should go down, not up.
Speaker 1: And that's why you need to have a financial plant
Speaker 1: that you see on a regular basis, because they should
Speaker 1: be looking at this going. You know what, we can
Speaker 1: save you one hundred dollars a month by reducing your
Speaker 1: life policy from a million dollars out of five hundred,
Speaker 1: you're not pretty much most of your mortgage off. People really,
Speaker 1: I think forget about that ongoing service that comes from
Speaker 1: financial planning and they're constantly working.
Speaker 2: For you and your goals.
Speaker 1: Now, as we were out today's episode, can you share
Speaker 1: with us five great practical steps that our listeners can
Speaker 1: follow today to help improve their financial wellbeing.
Speaker 3: I think number one would be the stay three tax
Speaker 3: cuts that are coming. Yeah, you know, that's going to
Speaker 3: give people an extra chunk of money anywhere from you know,
Speaker 3: if you're on that fifty thousand dollars a year mark,
Speaker 3: nine hundred do dollars. I think it is you're up
Speaker 3: to if you're on the one twenty one hundred and
Speaker 3: twenty grand a year, then it's like a couple of
Speaker 3: two and a half thousand. I think taking advantage of
Speaker 3: those and doing something with that money rather than it's
Speaker 3: sort of disappearing into the lifestyle creat Yeah indeed, you know,
Speaker 3: I either use that money's a pay extra, a few mortgage,
Speaker 3: put it into super fund, your own little sort of
Speaker 3: investment account, do something with that that sort of leg
Speaker 3: up that we're getting, make it count. Yeah, indeed, I
Speaker 3: think that's certainly I'm starting to discuss that more and
Speaker 3: more with clients now because obviously it's lie ones earlier
Speaker 3: stressed around the corner. There's other things you can probably
Speaker 3: look at as well to maybe reduce some costs. Look
Speaker 3: at your credit cards. You know a lot of cards
Speaker 3: have those annual fees because of the add ons you get,
Speaker 3: like travel insurance or lounge passes, that type of thing.
Speaker 3: If you're not going on overseas holidays as much, why
Speaker 3: be paying four hundred bucks for a year for that card?
Speaker 3: You know, get a card without the annual fee.
Speaker 1: What are your thoughts of Super innuation at a time
Speaker 1: like this. I mean, if I think back, say three
Speaker 1: four years ago, I was you know, I'd always be
Speaker 1: encouraging people to consider if they could afford it, and
Speaker 1: it sat in alignment to their financial goals, you know,
Speaker 1: sacrificing or even after tax contributions for some people.
Speaker 2: What do you like, Where do you sit with that?
Speaker 3: I think salary sacrificing is if you can do it,
Speaker 3: you should. Yeah. You know, again, you're paying fifteen percent
Speaker 3: rather than your marginal rate. You know, if you're if
Speaker 3: you're at the forty percent marginal rate and you put
Speaker 3: money into Super at fifteen you're already making the twenty
Speaker 3: five percent return day one on the contribution. Yeah, and
Speaker 3: it's something that you pat yourself on the back boor
Speaker 3: when you get to retirement.
Speaker 1: It's amazing how many people will get really creative to
Speaker 1: try and save tax and you know, push the envelope
Speaker 1: and really right under our nose is one of the
Speaker 1: most powerful asset bases to build wealth and to save
Speaker 1: a huge amount of tax over the long run.
Speaker 3: Oh indeed, you know, so you're getting a deduction effectively
Speaker 3: to put it into a concessionally taxed environment. You know,
Speaker 3: you paid fifteen percent tax on earnings rather than your
Speaker 3: marginal rate ten to fifteen on capital gains depending on
Speaker 3: how long you've owned it for, and once you turn
Speaker 3: sixty or sixty five you can doal tax free.
Speaker 1: All right, I have one last question for you on
Speaker 1: that note of superinnuation. Then, for anyone that is approaching
Speaker 1: retirement or actually wants to think about some realistic retirement
Speaker 1: plans and goals, what advice could you give those listeners
Speaker 1: right now?
Speaker 3: Depending on your balance, go on to your MIGV website,
Speaker 3: have a look at what your carry forward contributions concessional
Speaker 3: contributions are, because you may find that you've got a
Speaker 3: lot that you can get in pre tax, but that
Speaker 3: sort of window is closing slowly closing on you because
Speaker 3: if you have more than a five hundred thousand dollars balance,
Speaker 3: you can't do that. Yeah, so something like that is
Speaker 3: really important. But generally speaking, you want to try and
Speaker 3: get as much as you can into super in the
Speaker 3: lead up to retirement.
Speaker 2: Yeah.
Speaker 1: People don't realize how I mean, it's the outside of
Speaker 1: our home and for some people actually be worth more
Speaker 1: than their home.
Speaker 3: You know.
Speaker 1: Superinnuation is essentially your investment portfolio is locked away. It's
Speaker 1: going to end up being, for most of us, thanks
Speaker 1: to super Guarantee, the biggest financial asset that we will
Speaker 1: ever own in our lifetime. And what gets monitored gets made.
Speaker 1: You know, that's how you build substantial.
Speaker 3: Well, and that super Guarantee goes up again July one
Speaker 3: as well. Yeah, yeah, twelve percent.
Speaker 1: All right, Richard and Adam, both of you, thank you
Speaker 1: so much for coming in, and you just quickly explain
Speaker 1: to listeners if they want to. You know, they love
Speaker 1: hearing your voice, love hearing the wise advice that you've
Speaker 1: just instilled and imprinted.
Speaker 2: In all of us.
Speaker 1: Right now, How do people get in product? Do you
Speaker 1: offer consultations?
Speaker 2: Do you charge? How does it actually work?
Speaker 4: Does?
Speaker 2: How does someone work with you?
Speaker 1: If they're like, okay, I need to get two brains
Speaker 1: like Adams and Richards onto my finances.
Speaker 3: I'm a little bit different to Adam and how we operate.
Speaker 3: We the best thing would be to an arrange an
Speaker 3: initial consultation. There's no for your cost involved in that.
Speaker 3: But if we do go down the advice route, we
Speaker 3: work on a service basis, so we do charge a
Speaker 3: fee because we don't investment commissions have been outlawed for
Speaker 3: some time now, so we work on a pure fee
Speaker 3: for service basis, which I think is a better way
Speaker 3: to operate.
Speaker 1: Oh absolutely, I've been working off that business model before
Speaker 1: it even came in. I think it's the only way
Speaker 1: to be able to help people. And what's the process involved?
Speaker 1: Do I would I call you and book an appointment?
Speaker 2: Do you charge for that? How long does it take
Speaker 2: to get formal advice back from you? If I want
Speaker 2: to proceed? Can you just quick took me through the process.
Speaker 3: Well? Yeah, the first thing was for us to make
Speaker 3: contact via email or via over the phone. Those details
Speaker 3: on our website here. We would arrange. I'd have a
Speaker 3: normally have a brief chat with someone over the phone first,
Speaker 3: just get a bit of a gauge as to what
Speaker 3: they're looking for. We then send out a fact fine
Speaker 3: information gathering tool also in the name address usets liabilities,
Speaker 3: income expensive. That's that type of thing prior to making
Speaker 3: that initial appointment, because I'm conscious that people do make
Speaker 3: an effort to come and see us, and I don't
Speaker 3: really want that first appointment, you know, half a bit
Speaker 3: to be an information gathering exercise. If I can get
Speaker 3: a snapshot of their situation before they come in. It
Speaker 3: allows me to prepare discussion points for when we meet
Speaker 3: so that they ensure that they get the most out
Speaker 3: of that initial time that we spend together.
Speaker 1: I think it's a brilliant idea, Like you hit the
Speaker 1: ground running and actually you can have a really productive,
Speaker 1: powerful conversation where you talk about in all sorts of
Speaker 1: different concepts and ideas and risks and you know, strategies
Speaker 1: perticentire that could be considered as part of you know,
Speaker 1: some formal advice.
Speaker 3: Indeed, that initial appointments is you know, it's an opportunity
Speaker 3: for us to explain a bit more about who we are,
Speaker 3: what we do, how we do things, and an opportunity
Speaker 3: for the cli't do this aim. But most importantly, I
Speaker 3: think it's an opportunity for us to gauge how we interact. Yeah,
Speaker 3: because you go and see ten advisors, we should all
Speaker 3: roughly say the same thing, you know, reduce your debt,
Speaker 3: reduce your tax. Invest Now they may recommend different vehicles
Speaker 3: to do that, but if you're going to see ten
Speaker 3: people that say the same thing, you want to choose
Speaker 3: the one that you get on with the most field trust,
Speaker 3: because financial planning is very much a personal relationship and
Speaker 3: you only know you track into your sort of circle
Speaker 3: of influence like minded people. Yeah, and I think you know,
Speaker 3: you don't have a you know, you don't have a doctor,
Speaker 3: you don't not you don't have a you know, alloy
Speaker 3: that Like, it's a similar situation that you want to
Speaker 3: make sure that you gel on that personal level as well.
Speaker 1: What's the relationship We last twenty years and you want
Speaker 1: to make sure that person inspires your motivates you to
Speaker 1: keep going. And it's actually you know, acting as that
Speaker 1: beacon of light as you go down that financial journey exactly.
Speaker 2: And then when does when and where does Adam come in?
Speaker 1: Can he also have a look at, you know, someone's
Speaker 1: mortgages and see if you can help them negotiate a
Speaker 1: better deal. Is that where this kind of holistic, comprehensive
Speaker 1: advice comes in.
Speaker 3: Well, indeed, part and past of what I do is
Speaker 3: I German ninety nine times out of one hundred for
Speaker 3: clients work out a debt reduction strategy for them, making
Speaker 3: some using their existing rates and surplus. And you know
Speaker 3: they've setting a goal to get that mortgage paid off.
Speaker 3: And then it will be a case of sitting down
Speaker 3: with Adam and working out, Okay, how do we do that?
Speaker 3: Is you know, is there current lend of the best
Speaker 3: one achieve? That is the room to is there better
Speaker 3: deals out there?
Speaker 1: And then what about accountants? Do you know liaise with
Speaker 1: the clients accountants to make sure they're up to speed
Speaker 1: as to what you're recommending and just also make sure
Speaker 1: they haven't missed anything.
Speaker 3: Yeah, indeed, you know, once we've got the strategy sort
Speaker 3: of worked out, then it's a case of sitting down
Speaker 3: with their again existing accountant. A lot of the time
Speaker 3: that you know, one of the most common questions we
Speaker 3: could ask is do you know a good accountant?
Speaker 1: I believe I asked Adam that recently and I have
Speaker 1: a new accountant.
Speaker 3: That and then yeah, so yeah, when when it's appropriate,
Speaker 3: then definitely we have those conversations as long as that
Speaker 3: client's giving us that permission to have those.
Speaker 1: All right, Well, look, Adam and Richard, thank you so
Speaker 1: much for coming in today's episode. I really appreciate and
Speaker 1: some brilliant advice, wise advice and some greatly appreciated advice
Speaker 1: this morning.
Speaker 2: So thank you so much to all our listeners.
Speaker 1: If you want to reach out to Adam or to Richard,
Speaker 1: do so probably best either through email to Adam, or
Speaker 1: of course you can reach out to them through their
Speaker 1: Instagram account at Blue Lantern Home Loans.
Speaker 2: In the meantime, if you could take a moment to.
Speaker 1: Leave a rating and review, I would greatly appreciate it
Speaker 1: because every single review I get, and obviously hopefully a
Speaker 1: five star rating, allows me to keep going and helping
Speaker 1: create free financial literacy for you to enjoy in your
Speaker 1: free time. All right, everyone, have a fantastic week ahead,
Speaker 1: and I'll check back in with you next Monday morning
Speaker 1: at five am.
Speaker 3: Shout now
Speaker 4: The