Speaker 1: You're listening to the Weekend Collective podcast from News Talks.
Speaker 2: She didn't around, come on, Happylara now.
Speaker 3: Used Talks. There be Welcome Backett's the Weekend Collective, Roman
Speaker 3: Travers and for Tim Beveridge and this is smart Money
Speaker 3: this hour. Amanda Morrell, Happy New Year. I'm not even
Speaker 3: sure do we still say that. Yeah, there's you, Mike
Speaker 3: switch that Happy new Year exactly. Well, I haven't seen
Speaker 3: you for a while.
Speaker 4: I think it's been a year, so it is a
Speaker 4: new year.
Speaker 3: Wow, has it been that long?
Speaker 4: I think so.
Speaker 3: Now, for those that don't know your dulcet tones of
Speaker 3: we go, I know, well, who was she? She's Amanda
Speaker 3: Morrel and she's a personal finance coach, not actual advice.
Speaker 3: So how would you put this in?
Speaker 5: Yeah?
Speaker 4: I just have to. You know, people are alexcited and
Speaker 4: think they can get free financial advice and non aros
Speaker 4: financial advisor. Please sect a paid financial advisor or an
Speaker 4: authrosiman if you need. I'm just here to share information
Speaker 4: and knowledge with people so they can feel a bit
Speaker 4: more confident exactly about their finances.
Speaker 3: It's about this. It's likely we're about to watch a really, really,
Speaker 3: really bad movie. Please children, get your parents' permission first,
Speaker 3: that kind of thing exactly. So we're into a brand
Speaker 3: new year and a lot of people, well, look who
Speaker 3: doesn't want to have no debt? Who wants who doesn't
Speaker 3: want to be more successful financially? And for those of
Speaker 3: us that sit back and go, wow, look at those
Speaker 3: people making millions on TikTok for example, Well they count
Speaker 3: anymore in the US. But for that stuff that looks
Speaker 3: too easy, and then some people make it look incredibly easy.
Speaker 3: Why do some people have that knack for making money?
Speaker 4: I think the illusion that making money is easy is
Speaker 4: just sad. It's an illusion and reality, the vast majority
Speaker 4: of very wealthy people have made there are money, quite
Speaker 4: honestly off the back of some good planning and hard work.
Speaker 4: So I think that's you know, one thing to you know,
Speaker 4: stay upfront. I imagine you know, you mentioned TikTok that
Speaker 4: a lot of younger people might think, you know, I'm
Speaker 4: going to become an influencer and make a million bucks
Speaker 4: next year. And whilst I was we were saying maybe
Speaker 4: point zero zero zero zero one percent of those people
Speaker 4: have the vast majority of people don't, So you know,
Speaker 4: and just like relying on a lottery wind is not
Speaker 4: a good plan for enriching yourself. It's you know, bring
Speaker 4: it back to basis. Look at your own skills and
Speaker 4: talents and what are you passionate about, and plot a
Speaker 4: plot a plan to go forward.
Speaker 3: Yeah, well, I'm just going to refer back to in
Speaker 3: the first hour, we were talking about the Taxpayer Union's cure,
Speaker 3: your poll and the biggest concern for a lot of people.
Speaker 3: In fact, they were given a range of things to
Speaker 3: talk about and you can see I'm flicking through each
Speaker 3: oil there. It's a huge part of pay We've killed
Speaker 3: three trees white printing this. The biggest concern is the
Speaker 3: cost of living. So we don't live in a society
Speaker 3: where a lot of people have endless amounts of money going, oh,
Speaker 3: how should I invest that? But even when you don't
Speaker 3: have much, are you better to do something with a
Speaker 3: little you have? And where should you shove that? What's
Speaker 3: the best thing to do?
Speaker 2: Well?
Speaker 4: First thing I would say is that everybody's circumstances are
Speaker 4: really unique, right, So what you know is discretionary excessive
Speaker 4: for some people might be like not really discretionary at
Speaker 4: all for another person, for example, a student or you know,
Speaker 4: or a fresh grad who's now having to pay off
Speaker 4: student debt, or you know, somebody has just paid off
Speaker 4: the mortgage and then they've got you know, some serious
Speaker 4: if they're still working discretionary and then what do they
Speaker 4: do for it? So it's sort of a stages and
Speaker 4: ages scenario and for that I can't say enough good
Speaker 4: things about sorted dot org dot nz because it does
Speaker 4: go through the stages and ages of where people are at,
Speaker 4: and you know, if you're completely overwhelmed, it does give
Speaker 4: you great step by step guidance about what kind of
Speaker 4: things you should tackle first. On you lest ie, say,
Speaker 4: you know you're a fresh graduate and you've got to
Speaker 4: pay back forty thousand dollars of debt. You know, whilst
Speaker 4: it may be low interested, it still needs to be repaid.
Speaker 4: So you know, these are some of the things you're
Speaker 4: going to have to look up in tandem with also
Speaker 4: trying to plan for your retirement and maybe setting aside
Speaker 4: some money for a house one day, all those kind
Speaker 4: of things. Right, So it really just depend on your
Speaker 4: own unique situation and where you would like to go
Speaker 4: as well, like what are your goals, how are you
Speaker 4: going to get there? And reverse engineer. So again, it's
Speaker 4: hard for me to say there's a magic bullet unless
Speaker 4: I know, you know, kind of where you're at in
Speaker 4: life at this'.
Speaker 3: That's a very good point and that's a good reason
Speaker 3: to call eight hundred and eighty ten eighty if you've
Speaker 3: got a question. Amanda Morele, a personal finance coach here
Speaker 3: right through for the hour. So you did mention sorted
Speaker 3: dot org, right.
Speaker 4: Yeah, yeah, it's wonderful. One thing I've been trying to
Speaker 4: do because I've got kids that kids, I guess they're
Speaker 4: young adults in their twenties, is to get them along,
Speaker 4: you know, on their on way. And so I've been
Speaker 4: doing some mentoring with you know, the one who at
Speaker 4: least was listening and now because he's wanting to go
Speaker 4: flooding and China, he's got one more year of UNI
Speaker 4: and allocating what the student will will buy you and
Speaker 4: how you you know, and there were some really again
Speaker 4: some very instructive tools. He's more of a visual learner
Speaker 4: because he's an artist, and you know, there's this is
Speaker 4: a great income and expense UH spreadsheet you can fill
Speaker 4: out and it's not like a boring Excel sheet. It's
Speaker 4: you can add images and you know it's very very
Speaker 4: accessible and friendly and you know, you just enter the numbers.
Speaker 4: It couldn't be any easier in the different areas the categories,
Speaker 4: and then you ask for the insights and I'll tell
Speaker 4: you what your shortfault or you know your overflow will be.
Speaker 4: So again, that's going to be a good indication for
Speaker 4: you know, are you in a position to invest or? Oops?
Speaker 4: Are you needing to make more money this year? Because
Speaker 4: you're not going to make ends meet very much.
Speaker 3: So the reason I went back to sort it as
Speaker 3: a topic is because I think a lot of us
Speaker 3: know it's there, think oh yeah, why don't really need that?
Speaker 3: How many people actually that, you know, apart from young
Speaker 3: people maybe, how many people who think they know everything
Speaker 3: about money actually go and do the simple stuff on salt?
Speaker 4: Not many, you know, including some people who are very
Speaker 4: close to me who are real financial experts too. And
Speaker 4: I'm like, hop on there, you know it is. It's
Speaker 4: a free resource. You can set up a personalized plan
Speaker 4: if you really want to kind of dive deep into
Speaker 4: the kipsaver space oneday and see what you're projected. You know,
Speaker 4: balance will be at a certain age or stage or
Speaker 4: if you're in the right type of fund, it's got
Speaker 4: resources for that, resources for retirement planning, resources to help
Speaker 4: you set up a budget. So it covers all the
Speaker 4: basics without it being really intimidating. I mean again, some
Speaker 4: people will have more complex financial situations and maybe they
Speaker 4: did get a massive you know, inheritance or a huge
Speaker 4: payout or a divorce thing, and they will want to
Speaker 4: have some more personalized professional advice, in which case may
Speaker 4: be thinking about going to see a financial advisor is
Speaker 4: a good thing, but there'll be a lot of people
Speaker 4: out there, many listeners who can be well served by
Speaker 4: just hopping on and doing these self guided tourism. There's
Speaker 4: even a weight hundred number there for people who are
Speaker 4: startkoho need some budgeting advice, and there's resources out there
Speaker 4: that will you know, pay for that as well.
Speaker 3: It's free, all good stuff, so sorted dot or for
Speaker 3: those that are Yeah, just going back to that, most
Speaker 3: of us don't have a lot of money. We live
Speaker 3: hand to mouth, which is why the cost of living
Speaker 3: is the number one voting issue according to that Courier survey.
Speaker 3: I just told you about if you do inherit huge money,
Speaker 3: like if you've got one hundred grand tomorrow, and is
Speaker 3: there any like I had that trepidation. I don't know
Speaker 3: who you are. I'm not pointing at you. You're a
Speaker 3: financial registered financial advisor. I'm going to put all my
Speaker 3: trust in you. But we've all been bitten in the
Speaker 3: past with stories of financial demise, with stuff disappearing or
Speaker 3: things going wrong. What sort of confidence can you have
Speaker 3: that your money's always going.
Speaker 4: And that's a good question because increasingly you're hearing very
Speaker 4: tragic tales about scoums and people you know, getting advertised
Speaker 4: a product that has very high end's rates and it's
Speaker 4: you know, either completely delusional or a scam. So alongside scorta,
Speaker 4: dot org, dot inz, another good website to a bookmark
Speaker 4: would be the Financial Markets Authority, and it does have
Speaker 4: some great resources there to guide you through how to
Speaker 4: choose a financial advisor, what to look for in even
Speaker 4: like some questions to ask whilst you're interviewing them. In
Speaker 4: many cases you can get you know, a half hour
Speaker 4: or an hour of their time for free while you're
Speaker 4: kind of auditioning that individual, and they should, you know,
Speaker 4: you should expect them to explain how they get paid.
Speaker 4: And I guess back to your point about getting the windfall.
Speaker 4: A lot of if you rock up to, you know,
Speaker 4: a financial advisor who's associated with a particular funds management business,
Speaker 4: you want to understand the payment model because in many
Speaker 4: cases they may be getting what is in the industry
Speaker 4: called a trail. So you invest your money via this
Speaker 4: financial advisor financial advisor, how they'll get paid is through
Speaker 4: a trail, and that's a tiny percentage or not so
Speaker 4: tiny percentage on the money that you've invested, and so
Speaker 4: that's their remuneration system from them. So these are the
Speaker 4: kind of things you really want to understand very clearly,
Speaker 4: and under the new regulations, we used to have almost
Speaker 4: none about fifteen years ago, but they're very very stringent now,
Speaker 4: and the financial advisors will have to tell you how
Speaker 4: they are paid. And what I would say to a
Speaker 4: lot of people because there's a lot of you know,
Speaker 4: fancy language and jargon, and people get confused and then
Speaker 4: they feel embarrassed asked the questions is there's no such thing.
Speaker 4: We used to say this in journalism all the time
Speaker 4: as a stupid question. So you'd be one hundred percent
Speaker 4: sure in your own mind about what you're getting from them.
Speaker 4: In return how they get paid. There are fee based
Speaker 4: advisors at charge you on an hourly basis, and for
Speaker 4: that you would expect there's more sort of neutral advice.
Speaker 4: They're not going to put you into a product via,
Speaker 4: for example, the bank that they are representing that kind
Speaker 4: of thing.
Speaker 3: Yeah, okay, I like what you're saying because gives me
Speaker 3: more confidence when I do win lotto, which will happen
Speaker 3: at some point. It's got to happen, right, Oh, I
Speaker 3: don't know. I am one of those people that thinks
Speaker 3: it's exciting to get a lot of ticket and I
Speaker 3: start planning everything ahead. What I have done since I've
Speaker 3: met you, what I have done with my Kiwi Saver
Speaker 3: is I've stopped kidding myself that I'm going to live
Speaker 3: to one hundred and fifty and that because I started
Speaker 3: it later in life. I've gone as hard as I can.
Speaker 3: And I think you said to me. I'm pretty sure
Speaker 3: it was you that said, go as hard as you can.
Speaker 3: You're not going to notice that percentage of your income
Speaker 3: being locked out. But once you've done it, you're doing
Speaker 3: everything you can to do the best you can for yourself.
Speaker 4: Later on, Yeah, I guess I'm not sure if it
Speaker 4: was mere. But I think you know, when you play
Speaker 4: with some of these tools and there are someone sorted
Speaker 4: where you can look at the difference between you know,
Speaker 4: in k severy you can the minimums three percent and
Speaker 4: you can pay right up to ten, or you can
Speaker 4: make lumps some depositents if you get that fortune. But
Speaker 4: it's good for you to see the difference over a
Speaker 4: time those percentage points can make. But you know, with
Speaker 4: you having said that, with cost of living is so
Speaker 4: high rate, now you know what if some people are
Speaker 4: have got themselves and they forgot about it that they're
Speaker 4: paying ten percent of their salary into kiwisive and they
Speaker 4: can afford to make ends meet and putting more on
Speaker 4: the credit card and not being able to play it
Speaker 4: off in full, well, then you may want to dial
Speaker 4: that back. If you move your contributions to a higher rate,
Speaker 4: you can always put them to a smaller rate. You
Speaker 4: have to notify your you know, your payroll system. I
Speaker 4: think IRD also made it possible to do contribution changes
Speaker 4: through the portal there, And how that works is they'll
Speaker 4: notify your provider and the provider notifies payroll or whatever,
Speaker 4: and it kind of happens that way. But the most
Speaker 4: direct way would be to talk to your employer and
Speaker 4: get those readjusted. But but do those calculations so you
Speaker 4: know that what you're contributing is you know, comfortable for you,
Speaker 4: because you know there's no point in like paying higher
Speaker 4: than you need to if you're maxing out the benefits
Speaker 4: of key we sand wwhich cases getting the five hundred
Speaker 4: and twenty one dollars a year from the government for free,
Speaker 4: are you going to have any other additional benefit by
Speaker 4: you know, over extending yourself if you've got credit card
Speaker 4: debt or something like that that you can't get a
Speaker 4: handle on.
Speaker 3: So I look at Tyra, my producer, her age, and
Speaker 3: I'm not going to tell you her age, because well
Speaker 3: I don't know it, but I know that I'm a
Speaker 3: lot older than Tyra, right, So I wish And I've
Speaker 3: got two girls. My oldest daughter's nearty thirty, my youngest
Speaker 3: daughter's twenty six. So I just wish we'd had KEI
Speaker 3: we saver back then. I wish, you know, I'd be
Speaker 3: a multi millionaire by now if I'd had that financial
Speaker 3: acumen back then to think ahead, because no one really
Speaker 3: does when they're young until someone like you being a
Speaker 3: mum of children who are clearly brainy and intelligent when
Speaker 3: it comes to money, but most of us don't really
Speaker 3: steer our children in that direction. You talk about clearing debt.
Speaker 3: In the old days, it was clear your debt and
Speaker 3: that's the way forward. That's my way of thinking as well.
Speaker 4: It's not all that difficult. But you know there's again
Speaker 4: this is I'm working through these modules with my my
Speaker 4: twenty one year old. There's a big difference between theory
Speaker 4: and practice, and one of my kids has learned the
Speaker 4: hard way and I think has really kind of gotten
Speaker 4: on top of it. The other one is money and
Speaker 4: money out many and I keep emphasizing that this is
Speaker 4: not a sustainable strategy, particularly if you run out and
Speaker 4: then you get a credit add It is so my
Speaker 4: best advice to them, and the only thing that they've
Speaker 4: seemed to have listened to is do not get a
Speaker 4: credit card, because that's going to unless you are responsible
Speaker 4: payer and full of your credit card, this is really
Speaker 4: going to be a new surround your neck. So fortunately
Speaker 4: they both have credit debit cards, which only allows them
Speaker 4: to swim what's in their account. But there's still some
Speaker 4: learnings there and that becomes that speaks to the behavior.
Speaker 4: So there's a big behavioral reset that a lot of
Speaker 4: people need to, you know, kind of force on themselves
Speaker 4: or reflect on to get the outcomes that they would
Speaker 4: like to see in their financial situations, which will kind
Speaker 4: of bear fruit in other areas of your life too, because,
Speaker 4: as you know, when you feel like you're under financial
Speaker 4: threat or there's a lot of stress and pressure there,
Speaker 4: it can affect everything, your personal relationships, your health.
Speaker 3: Absolutely, the whole shebang. Oh heck yes, stress level, constipation.
Speaker 3: I've had it all through odd So I like that.
Speaker 3: I like the two things you've mentioned. They're sorted dot
Speaker 3: org and also the Financial Markets Authority, two good places
Speaker 3: to start, as well as instigating someone like yourself. Amanda
Speaker 3: Morel with us, a personal finance coach eight hundred eighty
Speaker 3: ten eighty nine two ninety two to text Hi their
Speaker 3: Amanda says the text, Up, we're putting extra into the
Speaker 3: super and Keywi Saver, but I worry we should be
Speaker 3: putting that extra off the mortgage first, which is more important?
Speaker 3: Do you think cheers is duly Yeah, that's.
Speaker 4: A good question one that a lot of people ask
Speaker 4: themselves as well. What I would suggest is if you
Speaker 4: go another one to bookmarkers, Interest, dot co, dot NZA.
Speaker 4: They've also got some rear payment calculators, and I think
Speaker 4: sort of has got a similar one. But you can
Speaker 4: do some scenario planning, like I don't know how much
Speaker 4: longer they're have on their mortgage, but if you were
Speaker 4: to increase your payments by X, how much is that
Speaker 4: going to reduce the interest over the lifetime of that mortgage?
Speaker 4: And you know when will venied position to be debt free,
Speaker 4: And so it's kind of it's a personal decision based
Speaker 4: on your overall financial situation, but it's really helpful to
Speaker 4: do those. You don't need to have a calculator in
Speaker 4: hand and figure out the formulas. You just add to
Speaker 4: the numbers, do a little experimentation to see just how
Speaker 4: much you are paying interest on the mortgage and how
Speaker 4: much better off you be to fast track that mortgage.
Speaker 4: A bear in mind that that depending on who your
Speaker 4: mortgage is with, you can't sometimes penalized for repaying it
Speaker 4: earlier and then you need to reset it. But so
Speaker 4: some mortgages, depending on which bank you're with, are more
Speaker 4: flexible than others. So you also need to understand the
Speaker 4: decencies of your mortgage and when the reset period is.
Speaker 4: But mortgages for the vast majority of it, or one
Speaker 4: of the biggest items that we're going to be paying
Speaker 4: off over time, you know that a million dollar pause
Speaker 4: once you tick your factor and the principal interest over time,
Speaker 4: you know it maybe two million dollars that you're paying off.
Speaker 3: Absolutely, So, just to be clear, because I don't know
Speaker 3: that I maybe I wasn't listening properly then, but are
Speaker 3: you better to focus on clearing the mortgage before you
Speaker 3: start flitting around with chas ease and investing in rocket labe?
Speaker 4: It really depends, because you know my personal preferences, I
Speaker 4: don't like owing money, so that's that's how I've chosen
Speaker 4: to do things with my own finances. Is repay all
Speaker 4: the debt once you're mortgage free, then reinvest. Having said that,
Speaker 4: that may seem like a very long way off for
Speaker 4: a lot of people, So there might be scope within
Speaker 4: your budget to do both, depending on right so you
Speaker 4: might be able to you know, fast track the mortgage
Speaker 4: by repaying a little bit more. You know, you can
Speaker 4: repay it on a weekly fortnightly, so that will make
Speaker 4: a difference too. In terms of you know, from monthly
Speaker 4: to fortnightly even you can check those differences on sort it.
Speaker 4: But yeah, you might have scope within your budget to
Speaker 4: also invest on the side. I mean, if you're planning
Speaker 4: to go that route in your DIY investing, I would
Speaker 4: just be dow. I'n sure that you know what you're
Speaker 4: doing so that you're not blowing at right. So that's
Speaker 4: why things like managed funds, there's parallel funds just like
Speaker 4: Kiwi siver, but they're not locked in, are not a
Speaker 4: bad thing for people to look at instead of trying
Speaker 4: to choose shares that they think may or they might
Speaker 4: do well if they're not have any expertise in these areas.
Speaker 6: I just want to jump in.
Speaker 3: I want to jump in there because you said, as
Speaker 3: long as you know what you're doing, which of course
Speaker 3: you know very well. Most of us have no idea.
Speaker 3: Brian down the road, whose sister's Margaret's brother in law's
Speaker 3: friend Albert said it was a good idea. Therefore it's
Speaker 3: a good idea. So you are better off talking to
Speaker 3: someone like yourself for financial advice, because there must be
Speaker 3: some lemons that are clearly geese. You know, and you
Speaker 3: invest in some barking duck and all of a sudden,
Speaker 3: you're going But so and so said it was brilliant,
Speaker 3: It was advertised beautifully. The voiceover was tremend Yeah.
Speaker 4: Well, yes, you have to, you know, buy or beware
Speaker 4: kind of thing. But there is lots of places where
Speaker 4: you can, you know, verify what it is you're investing
Speaker 4: in the companies and do the research. But it is
Speaker 4: quite time consuming. Like if you get a passion for that,
Speaker 4: that's great, but if that's not your expertise. You're a
Speaker 4: busy you know, householder and raising kids and trying to
Speaker 4: manage everything. Ness, don't you know why add extra stress
Speaker 4: onto your life by making yourself become a stock picker
Speaker 4: in your spare time. You know, that's not particularly a
Speaker 4: good strategy to create more stress by something that you're
Speaker 4: wandering in the dark about. But you know, if you're
Speaker 4: somebody with lots of time on their hands, you know
Speaker 4: you're single, you love this stuff, you know you're comfortable
Speaker 4: with everything and how it works and cap safer, then sure,
Speaker 4: maybe you want to weigh in slowly and buy a
Speaker 4: chare disease and you know, give it a bit of
Speaker 4: a flirt, but you do need to understand the risks
Speaker 4: that you're taking your time horizons for investing, and you
Speaker 4: know your your your durations as well.
Speaker 3: Yeah, you go really good points and I've written all
Speaker 3: those points down. Of course, sorted dot org is one,
Speaker 3: Financial Markets Authority was the other, and Interest Stock Code
Speaker 3: Audience good places to go and get some some key
Speaker 3: points and then go and see a financial advisor as well,
Speaker 3: because you know, whether it's huge money or a little
Speaker 3: bit of money, no money can be afford to be lost,
Speaker 3: can it. We all value the money.
Speaker 2: That we have.
Speaker 4: I would say among the people that I know who
Speaker 4: are the wealthiest, they cherish their money and they watch
Speaker 4: it very closely, right, and so it's no surprise that
Speaker 4: they've ended up in the position that they're doing because
Speaker 4: they're watching it really carefully. If you're not paying attention
Speaker 4: to what's in your bank account, how much is going in,
Speaker 4: how many subscriptions you have, your keypserver balances, all that stuff,
Speaker 4: it tells me that you're just not focused on money.
Speaker 4: And you know you get attention goes, I know exactly right,
Speaker 4: energy goes where attention totally does.
Speaker 3: This is great and it's good chat. You want to
Speaker 3: get involved I warmly encourage you to do so nine
Speaker 3: two nine two to text. Best of all, though, to
Speaker 3: call eight hundred and eighty ten eighty. It's a free
Speaker 3: phone call. Amanda morele here a personal finance coach. All
Speaker 3: sorts of yeah, just tips in the right direction, I
Speaker 3: would say, is what we're going to get, and I'd
Speaker 3: love to hear from you. Twenty six past five, twenty
Speaker 3: nine past five.
Speaker 4: I love this.
Speaker 3: I love talking about money because it makes me feel
Speaker 3: like I've got some. I actually don't, but i'd love
Speaker 3: to have some more. Yeah, it's true. I'd love to
Speaker 3: be I'd love some. I'd love to rob a bank electronically,
Speaker 3: for example, and just top my accounts up. I just
Speaker 3: loved the idea of having lots of money. You've got
Speaker 3: to work hard for it, though, don't you.
Speaker 6: So I'm not going to rob a bank.
Speaker 3: I've thought about it when things have been tight. So
Speaker 3: when people are thinking I don't have any money, I
Speaker 3: do have calls to go to, but just very quickly
Speaker 3: I don't have any money. Is it just worth investing
Speaker 3: everything you've got, no matter how little you've got.
Speaker 4: No, No, I think you really do kind in ne
Speaker 4: to take a deep brath and then look at your
Speaker 4: overall position and valuate what it is exactly you have
Speaker 4: where you want to go, what you know, hurdles you
Speaker 4: need to kind of knock off, and then you know,
Speaker 4: proceed forward cautiously. Yes, I think in a moment of
Speaker 4: panic where you're thinking, I want to make a quick buck,
Speaker 4: I'm and I put it all on crypto because Trump's
Speaker 4: all keen on crypto for example, like is that the
Speaker 4: right move or is that too risky for your you know,
Speaker 4: your actual situation. Are you holding onto debt? Should you
Speaker 4: be doing something with that? First? Again, and just proceed
Speaker 4: slowly and cautiously. And again I would guide people disordered
Speaker 4: for that because it does give you sort of steps
Speaker 4: to go through, to work through, instead of thinking that
Speaker 4: the cure all for everything that bothers you and keeps
Speaker 4: you up at night is just putting it all in red.
Speaker 3: Yeah, you know what I mean exactly? Well, can I
Speaker 3: just it's Sam? Can I Sam? How are you? Sam?
Speaker 2: Yeah?
Speaker 3: Good? Say are you a bit like me? Sam? And
Speaker 3: that you hear all the stuff about crypto and all
Speaker 3: these amazing investments and you go, oh that sounds great.
Speaker 3: Then someone else says, oh no, it's not and you
Speaker 3: get confused.
Speaker 7: I'm probably, yeah, looks pretty be careful with my approach
Speaker 7: and pretty kill on some of those getting rich quick
Speaker 7: sort of things. I've got a run entry who is
Speaker 7: a different country who's done very well out of crypto.
Speaker 7: But I know it can go the other way. So yeah,
Speaker 7: I'm probably pretty conservative when it comes to and maybe
Speaker 7: that's a good thing or.
Speaker 4: A bad and I don't know that's a good thing.
Speaker 4: And by the way, you know, one of the world's
Speaker 4: richest men out there, Warren Buffett, not a vague fan
Speaker 4: of crypto. You can listen to his YouTube interviews. And
Speaker 4: I'm not saying there haven't been individuals who've gotten very
Speaker 4: wealthy of a crypto, but understand what you're getting into
Speaker 4: and the risks and sounds like you're doing all that.
Speaker 7: Yeah, I suppose with our situation with our family, we
Speaker 7: are a better stage where we still have productive mortgages,
Speaker 7: you know, and house edits and other things, and you
Speaker 7: still have a reasonably large mortgage that's manageable. But we're
Speaker 7: sort of Yeah, I suppose we were like give one
Speaker 7: that I want to, you know, secure our future, and
Speaker 7: we always question weather putting the money into into principal
Speaker 7: payments because we actually have quite a bit of flexibility
Speaker 7: how much principle we pay off as is, you know,
Speaker 7: a better return on our money put it into that
Speaker 7: versus say, for instance, you know, setting up a shares
Speaker 7: these account we're out for our kids. You know, like
Speaker 7: if your mortgagees are long term average of you know,
Speaker 7: six or seven percent, you know that's guaranteed return pain
Speaker 7: off principle is it versus versus shares lease or something
Speaker 7: that you're not quite known, but yeah, probably probably a
Speaker 7: conservative approach because you could potentially get get ahead quicker
Speaker 7: of a lump from doing that. But that's that's sort
Speaker 7: of a dilemma, you know.
Speaker 4: I I had a former colleague who is quite a
Speaker 4: well known financed person too, and his big mantors there's
Speaker 4: no better return on your investment than paying off the
Speaker 4: mortgage faster. And again it's personalized approach depending on what
Speaker 4: your situation is, but it's one that I would concur
Speaker 4: worst largely. Having said that, you know, I wouldn't say
Speaker 4: it's all or nothing, and setting up accounts for your
Speaker 4: children's future not a bad idea, doesn't mean you have
Speaker 4: to see them with you know, two thousand dollars a month,
Speaker 4: for example, you could start slow. One thing that I
Speaker 4: did some time ago with my boys before they had jobs,
Speaker 4: is started putting twenty dollars a week into their Kiwisaver
Speaker 4: accounts to help give them a leg up. And I
Speaker 4: was again with this young guy that i'd been mentoring,
Speaker 4: showing him how much it's gained in three years, and
Speaker 4: he was, you know, shocked because he's also started working
Speaker 4: and seeing the effect of that. So you know, consider
Speaker 4: whether you could start doing something on a modest note
Speaker 4: with your kid's accounts to get them a bit of
Speaker 4: a leg up, you know, whatever that is if they've
Speaker 4: got Kiwisaver. And I would just mention if somebody asked
Speaker 4: me this today about their son and they wanted to
Speaker 4: make sure he's in his twenties and kind of stop working.
Speaker 4: He's going to get the you know, the five hundred
Speaker 4: and twenty one dollars from the government, so they wanted
Speaker 4: to contribute into his account. So anybody's listening, you know, grandparents, parents,
Speaker 4: other people want to get gift your kids something in
Speaker 4: that area. Can do that via key we Save or
Speaker 4: via some of these other funds. By the way, if
Speaker 4: you set them.
Speaker 3: Up, good idea, Sam, if you did have, if you
Speaker 3: were to invest, sorry, if you were to inherit a
Speaker 3: whole bit of money tomorrow. Is there one particular aspect
Speaker 3: of the of the market that you're looking at that
Speaker 3: there's the future, whether it's whether it's pharmaceuticals or whether
Speaker 3: it's rocket type stuff and futuristic stuff tech. What are
Speaker 3: you interested in?
Speaker 7: Yeah? I probably haven't, don't what am I? I think
Speaker 7: some of that tech and AI and the chips that
Speaker 7: you build that stuff with as probably where things are going.
Speaker 7: But I'm not I'm not an expert, and I think
Speaker 7: the comedy before. You have to spend a lot of
Speaker 7: time researching this and understanding. Yeah, I'd probably try to
Speaker 7: find someone trusted and yeah helps get help, help me
Speaker 7: and invest in it, invest in it?
Speaker 3: Okay. Yeah, it sounds like you're on the right track. Sam.
Speaker 3: You mentioned Warren Buffet and then before that Donald Trump.
Speaker 3: You get all these people, who I mean, Donald Trump's
Speaker 3: got a sketchy record in business anyway, hasn't he there?
Speaker 3: He is at the top of his game.
Speaker 4: He's been bankrupt several times. They could be taking Warren
Speaker 4: Buffett's to financial advice over Trump's any day of the week.
Speaker 3: Yeah. But going back to the bitcoin discussion, I've literally
Speaker 3: listened to every word there's an expert or listen, oh listen,
Speaker 3: oh listen, Oh yes, that sounds brilliant, and then another
Speaker 3: expert completely counts what they say, and you can see
Speaker 3: why there is this confusion with what to invest in.
Speaker 4: You have to be confident within your own mind about
Speaker 4: what you're doing. And so one thing you could do
Speaker 4: if you you know, got this nagging feeling that you
Speaker 4: want to get in there and you've got you know,
Speaker 4: an extra hundred dollars to you know, flutter, just you know,
Speaker 4: open up an account and buy a hundred bucks or
Speaker 4: if you can, you know, it's not if your kids
Speaker 4: aren't going to go without food or whatever as a
Speaker 4: result of doing so. And you can watch and see
Speaker 4: and you'll see how volatile it can be as well,
Speaker 4: and then you can kind of weed in there carefully. Again,
Speaker 4: there's a an age old saying in the investment space
Speaker 4: that diversification is the best form of protection against risks
Speaker 4: and volatility. So again, it's not putting it all on
Speaker 4: red or crypto. It's spreading your assets or spreading your
Speaker 4: money over a wide number of assets in different companies,
Speaker 4: and anybody who's invested in kiwisaver largely will because.
Speaker 3: That's exactly what I've done. So I've gone as hard
Speaker 3: as I can, I've gone as mental as anything. What's
Speaker 3: the most risky portfolio? I've checked everything on red and
Speaker 3: I've left it. The other thing I do with kiwisaver
Speaker 3: is I never look at it right. I don't want
Speaker 3: to see the fluctuations. Yeah, it's not going to change
Speaker 3: anything for me. Is that ignorance?
Speaker 5: Now?
Speaker 4: Well, I kind of I don't think you should be
Speaker 4: checking your balance every day, but I think it is
Speaker 4: good to know like kind of where you're at, because
Speaker 4: then again, you know, you can look back in a
Speaker 4: year's time and see how you're tracking along. And so
Speaker 4: one thing I started to do in the last couple
Speaker 4: of years seemed to be the financial officer for the
Speaker 4: whole family is just sort of like tracking everybody is
Speaker 4: and so there's you know, an overall dashboard about where
Speaker 4: things are at, and so they can also see, you know,
Speaker 4: how things are progressing and growing. And same with your
Speaker 4: children and your daughters. I assume they're in key we
Speaker 4: Saver too, well, hopefully they're logging into their accounts periodically
Speaker 4: because they can see what the production track is and
Speaker 4: when they get those annual reports, they'll see how well
Speaker 4: their funds did as well, and how much they paid
Speaker 4: in fees and taxes and how much they're on track
Speaker 4: to have at the magic age is sixty five.
Speaker 3: Do you know what though, Amanda, they're both in Australia
Speaker 3: and their superannuation schemes is so much better over Yes,
Speaker 3: I know.
Speaker 4: Well that's another topic, isn't it altogether? Yeah? It is.
Speaker 3: I like what you said before though. By the way,
Speaker 3: O eight hundred and eighty ten eighty if you've got
Speaker 3: commentary or questions for Amanda Morell, our personal finance coach
Speaker 3: here on Smart Money the Weekend Collective. I like what
Speaker 3: you said before because with Keiwi save it in general terms,
Speaker 3: you can't touch it. So if you are of an
Speaker 3: age where you're looking to give hundreds of thousands to
Speaker 3: your grandchildren, whack it into their Kiwi saver and watch
Speaker 3: that grow over the next thirty forty years for them, brilliant.
Speaker 4: I think it's a great legacy gift, you know, especially
Speaker 4: if you're worried that you know, if you're going to
Speaker 4: give you your eighten year old grand son some money
Speaker 4: that they the blow at the races or you know,
Speaker 4: on a car. We're not saying the car is a
Speaker 4: bad decision, but it's going to appreciate.
Speaker 3: These Skyline straight away exactly what.
Speaker 4: Boys both love those cars. So but yeah, so you
Speaker 4: lock it away and it's going to be there for
Speaker 4: a first home deposit or for when they retire. And
Speaker 4: I think, you know, every everybody can feel good about that.
Speaker 4: You know, maybe not as exciting as a carpet.
Speaker 3: No, I understand that that's a great idea. I love
Speaker 3: that idea. So any questions at all, do call O
Speaker 3: we eight hundred eighty ten eighty. The text is nine
Speaker 3: two nine two. This is the smart Money Out and
Speaker 3: our guest Amanda, Amanda Morrel, a personal finance coach, would
Speaker 3: love to see you in the right direction. Sounds good
Speaker 3: to me. Oh, eight hundred eighty ten eighty. It is
Speaker 3: twenty one to six.
Speaker 7: See the damn can want sand.
Speaker 1: Wheels, can't be emo.
Speaker 8: There this person the.
Speaker 3: Kids talks av It's the week in collective Roman Travis
Speaker 3: here and our guess this how for smart money is
Speaker 3: Amanda Morele a personal finance coach, and you can feel
Speaker 3: free to call or text. Calling is best though. Eight
Speaker 3: hundred and eighty ten eighty Michael, what's your question for Amanda?
Speaker 5: Hi, Amanda hiro Man. I just I'm currently working with
Speaker 5: enabling me and Squirrel home loans. I'm going through the
Speaker 5: process of doing pre approvals to buy a rental. I've
Speaker 5: got one pre approval back and it's going to be
Speaker 5: going to loan me four hundred and ninety five thousand
Speaker 5: with no interests, with no interest.
Speaker 6: Free periods, no interest only period and I've got one
Speaker 6: hundred and seventy five to put towards the house. I
Speaker 6: currently live in a house that I don't have a mortgageohn.
Speaker 6: But I'm wondering, am I just better off putting the
Speaker 6: money in to my own home and bringing it up
Speaker 6: to scratch, you know, bringing some double blading and stuff in,
Speaker 6: or am I better off actually getting into a rental
Speaker 6: when maybe stretching yourself a little bit?
Speaker 4: Okay, good question. I'm reminded that I can't give you
Speaker 4: personalized advice, so we'll just cover some generalities here. But
Speaker 4: but I guess I would expect that enable maybe showing
Speaker 4: you what the rental. So you own your own property,
Speaker 4: but you're thinking about boring money, but get a rental.
Speaker 4: Is that correct?
Speaker 5: Yeah, yeah, yeah, So I.
Speaker 4: Assume that they've done the mouth for you do show
Speaker 4: you what the rental yield would be on that.
Speaker 5: We haven't gone quite there by the system.
Speaker 4: Okay, Well, that's one hard question you need to ask
Speaker 4: if or if you have if you can use some
Speaker 4: of the tools out there to figure out what your
Speaker 4: rental yield will be, because the yields are not that great,
Speaker 4: particularly compared to the stock market these days. And I'm
Speaker 4: not saying you should get money borrow money to invest
Speaker 4: in the stock market, but and the stock markets are
Speaker 4: quite hot, overheated at the moment. However, again, it all
Speaker 4: comes down to so your personal choice. And you know,
Speaker 4: I've lived in a few cold, drafty homes and the
Speaker 4: zill myself over the years, and you know, I didn't
Speaker 4: sleep all that well at eight there was a mold,
Speaker 4: you know, in the closets and growing on my clothes
Speaker 4: on a kision. So you know, having double glazing in
Speaker 4: a house and proper ventilation and heating, et cetera makes
Speaker 4: a hell of a difference through your overall health. And
Speaker 4: wellbeing and adds value to your house if you do
Speaker 4: decide to sell it down the track. So those are
Speaker 4: kind of the opportunity costs, right, So if you're not
Speaker 4: doing this, you could do this and again, if you
Speaker 4: have extra money in the bank, you know you might
Speaker 4: want to split the difference. That's another option is you know,
Speaker 4: invest some of that money half of that money, and
Speaker 4: you know, find out what your risk profile is and
Speaker 4: then do some other enhancements to your house as well.
Speaker 4: So you're doing you know, you're not just putting it
Speaker 4: all on red again with a rental property, but you're
Speaker 4: splitting the difference in investing the stock market and then
Speaker 4: doing some upgrades to your home potentially.
Speaker 3: Cheers Michael, thank you. I hope that helps.
Speaker 4: Well.
Speaker 3: What about over over capitalizing, over investing in a property
Speaker 3: and then expecting to get that money back.
Speaker 4: You know, Well, people love to talk about property in
Speaker 4: New Zealand. But one thing I would say, and I
Speaker 4: you know, have this conversation frequently because you know a
Speaker 4: lot of people want to talk about property, is like,
Speaker 4: our property value is going to continue to increase at
Speaker 4: the level that they have been over the last twenty years.
Speaker 4: You can see what's happening in property prices now? It
Speaker 4: starts sort of you know, they're they're lifting in some areas,
Speaker 4: and then they're sort of plateauing. But how can you
Speaker 4: expect that property prices would continue to increase at the
Speaker 4: rate they have and then there's people underneath there coming
Speaker 4: into the market to buy them. You know, houses are
Speaker 4: already out of reach for so many younger people these days.
Speaker 4: So something that you have to kind of think about that,
Speaker 4: you know, are you being unrealistic that you think you're whatever,
Speaker 4: you know, million dollar house is going to be worth
Speaker 4: three million dollars in the next whatever X number of years?
Speaker 3: You know, I mean to haven't people always say that
Speaker 3: and they always go well.
Speaker 4: In New Zealand, you've kind of got an exceptional environment,
Speaker 4: and that's to do with, you know, the lack of
Speaker 4: capital gains tax et cetera. So New Zealand's in a
Speaker 4: bit of a difficult in a in a unique position
Speaker 4: from a lot of other economies around the world. Whether
Speaker 4: capital gains might be introduced one day and whether that
Speaker 4: could tip the equation, who knows. So I wouldn't break
Speaker 4: that off, but I don't want to get into about
Speaker 4: I'll get beat up out there.
Speaker 3: No New Zealand is lose it when you start talking
Speaker 3: about capital gains text one of the last countries in
Speaker 3: the OECD.
Speaker 2: To do that.
Speaker 3: Hi Janine, Oh Hi, how's it going? What's your question?
Speaker 8: Okay? My question is I have I worked in Australia
Speaker 8: for ten years and got to your anuation when I
Speaker 8: was there, and it's it's sitting over there sort of
Speaker 8: gradually earning money. But I'm wondering if I should bring
Speaker 8: it over to my QUI saver here, would it be
Speaker 8: better in terms of I guess my going up versus
Speaker 8: keeping it in Australia's which.
Speaker 4: Is yeah, very good question and one that comes up
Speaker 4: quite a lot. So under the trans tasm Portability Agreement
Speaker 4: that got that was brought into place a few years ago,
Speaker 4: it is easy to repatriate your savings and put it
Speaker 4: into kiwisaver. So again there's some people would argue that
Speaker 4: by leaving your money invested over there, it's another form
Speaker 4: of diversification. You can access the money at this stage
Speaker 4: a little bit earlier, and then you've got the foreign
Speaker 4: currency working in your favor. But who knows whether that
Speaker 4: you know, currency strength will be in place when it
Speaker 4: comes time for you to retire. I I my personal
Speaker 4: approaches try to simplify things where possible, and so if
Speaker 4: it makes it easier for you to know where your
Speaker 4: money is and manage it all in one place and
Speaker 4: you don't anticipate you moving back to Australia or retiring there,
Speaker 4: you kind of have to ask yourself those questions. But
Speaker 4: certainly a lot of people are bringing back their savings
Speaker 4: back into their Kivi saver and you know they will
Speaker 4: gain from the currency translation of there as well when
Speaker 4: they do that, because the Aussie dollar is much higher
Speaker 4: than ours currently, so that that's a bonus. You'll see
Speaker 4: ane left in your Kiwi server. So those are just
Speaker 4: kind of considerations for you. So it really depends you
Speaker 4: know how old you are, how long you are away
Speaker 4: from retirement, whether you see yourself here or there when
Speaker 4: you when it comes time to retire.
Speaker 3: Yeah, good on your Jennine. No, No, it's a very
Speaker 3: brief call with you, but you might want to go
Speaker 3: and see a personal finance coach like Amanda Morrel and
Speaker 3: just get that conversation going a bit deeper and a
Speaker 3: bit further.
Speaker 9: Hi there, Greg, Good guys, just an interesting article on
Speaker 9: the Sunday Times today bet the official cash rate. It's well,
Speaker 9: this article basically said that the predicted reductions in the
Speaker 9: right is not going to be what we think it is,
Speaker 9: like fifty signified base points. It's getting it more like
Speaker 9: twenty five bass points. And this is all, you know,
Speaker 9: happened in the last two or three weeks. I'm not
Speaker 9: quite sure whether you've seen that article or not, but
Speaker 9: they're sort of saying, you know, have a second four
Speaker 9: about infrast rates on mortgages for twenty twenty five. Did
Speaker 9: you see that.
Speaker 4: I haven't seen that particular article, but there's the same
Speaker 4: sort of speculation in the US too about you know,
Speaker 4: everybody was thinking they're going to lower the much lower.
Speaker 4: Now it's going to stay flatter for a little bit longer.
Speaker 4: And so you know, I don't have a crystal ball,
Speaker 4: so I can't tell you where it's going to go.
Speaker 4: But I assume you're considering that in the context of
Speaker 4: either a term deposit or a mortgage.
Speaker 9: Fixed or flight on a mortgage.
Speaker 4: Yeah right, yeah, So I mean again, you might just
Speaker 4: kind of want to wait and see where it's going
Speaker 4: to go. But you know, it really comes down to
Speaker 4: your personal preference. And you know what some other advice
Speaker 4: I would have for people at is it, You know,
Speaker 4: discuss some of the alternatives and options with whoever you've
Speaker 4: got your mortgage with and hopefully they can show you
Speaker 4: some different scenarios and help you to arrive at a
Speaker 4: situation is going to be most beneficial for you.
Speaker 3: Good stuff, Good on you, Greg, Thank you. This is
Speaker 3: the Smart Money on the Weekend Collective. Amanda Morel here
Speaker 3: till six o'clock, eight hundred eighty ten eighty. The text
Speaker 3: is nine to nine two. Oh, it's been great. There's
Speaker 3: been a great out, lots and lots of calls coming through.
Speaker 3: Can I encourage you that when Tim's back and you
Speaker 3: hear that Amanda Morel is in the house, get involved
Speaker 3: a whole lot. Earlier on eight hundred eighty ten eighty.
Speaker 3: But Amanda, you did want to follow up with that
Speaker 3: Ossie superannuation question.
Speaker 4: Oh yeah, just quickly wanted to add that if that
Speaker 4: caller was thinking about repatriating her savings and then you know,
Speaker 4: bucking it up so they can she can put it
Speaker 4: down as a first home to posit, be aware that
Speaker 4: because you can't use your Aussie super for a first home.
Speaker 4: That money when you bring it back is quarantine, so
Speaker 4: you can't then bundle it into any first home deposit
Speaker 4: if she was thinking about going down that route, So
Speaker 4: that's also something to be aware of. It would be
Speaker 4: separated out so she couldn't drill on that for a
Speaker 4: first time deposit.
Speaker 3: Ah, well, that's good information. There'll be a lot of
Speaker 3: people with pensions too in the UK and investments here
Speaker 3: and they're wondering whether to leave it or bring it back.
Speaker 4: Or there's increasingly because we've got a lot of immigrants
Speaker 4: like myself. I've been here for twenty years but moving
Speaker 4: and there's going to be more and more complexity around
Speaker 4: people's finances and double tax you know, agreements, et cetera.
Speaker 4: So yeah, watch this space.
Speaker 3: Yeah, well, there's a lot of information to shove into
Speaker 3: one out. I realize that, and it's not all entirely confusing,
Speaker 3: but I think people are busy and having the time
Speaker 3: to sit and talk with someone like yourself a personal
Speaker 3: finance coach would be a good head start, wouldn't it.
Speaker 4: You know, Or if you've got people that you trust
Speaker 4: in your family or your circle of friends who you
Speaker 4: know or proven you know and it is or they've
Speaker 4: demonstrated their ability to do things well with it. When
Speaker 4: it comes to businesses or money, you know, you know,
Speaker 4: always you can talk to, you know, use them as
Speaker 4: a sounding board. Just be very careful because some people
Speaker 4: are full of bravado and not necessarily telling you the truth.
Speaker 4: And one thing might look like you know something from
Speaker 4: one side and the other side betrays a different story.
Speaker 4: So you know, you have to be have that element
Speaker 4: to trust for sure. And again, the FMA is a
Speaker 4: great resource to go if you do feel like you
Speaker 4: need to get some professional advice.
Speaker 3: Yeah.
Speaker 4: Again, this coaching space, it's a little bit more neutral, right,
Speaker 4: I'm only helping people with sort of generalized information and
Speaker 4: pointing them in the direction where they can get things,
Speaker 4: and not giving them personalized advice.
Speaker 3: Yeah. Does it help to just very quickly and that
Speaker 3: we're out of time? Does it help to like what
Speaker 3: you're investing in?
Speaker 4: Well more than liking it? I mean, I think you should,
Speaker 4: you know, especially if you're an ethical investor voting on principle.
Speaker 4: But I think more important than liking it is you
Speaker 4: need to understand it. And I think that should be
Speaker 4: a golden real too. You don't understand what you're invested in,
Speaker 4: don't invest in it. You need to be confident like
Speaker 4: Lulu Lemon. I'm a yogi. I know Lulu Lemma and
Speaker 4: buy over clothes. Where are the pots? I know that
Speaker 4: company what they're doing, so you know if I were
Speaker 4: to buy a single share, confident that I know what
Speaker 4: that company is up to.
Speaker 3: Amanda Morale, personal finance coach, thanks for being here for
Speaker 3: smart Money on the Weekend Collective. Lovely to have your company.
Speaker 3: If you want to hear any of this again, go
Speaker 3: to iHeartRadio wherever you get your podcasts and look up
Speaker 3: the Weekend Collective. Tyra the producer, brilliant. Thank you, it's
Speaker 3: been an amazing show. Have a great evening. Cheers.
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