Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud or
Speaker 1: the Order Kerni Whalbury and a waddery woman. And before
Speaker 1: we get started on She's on the Money podcast, I
Speaker 1: would like to acknowledge the traditional custodians of the land
Speaker 1: of which this podcast is recorded on a wondery country,
Speaker 1: acknowledging the elders, the ancestors and the next generation coming
Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing
Speaker 1: and the storytelling of you to make a difference for
Speaker 1: today and lasting impactful tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 2: Hello, and welcome to She's on the Money, the pods
Speaker 2: where no money question is too big, too small, or
Speaker 2: too embarrassing to ask. I'm Victoria Devine. And if you've
Speaker 2: ever found yourself stuck on a money decision, whether it's
Speaker 2: picking the right financial advisor, paying off debt or investing,
Speaker 2: or figuring out what to do with a lump sum,
Speaker 2: my friend, you are in exactly the right place, because
Speaker 2: today we're going to be answering your biggest financial questions
Speaker 2: and breaking it down judgment free of course, and to
Speaker 2: help me is someone our community loves and is obsessed
Speaker 2: with and begged me to bring back. And I'm a
Speaker 2: girl that likes delivering. You've quickly become a very integral
Speaker 2: part of the She's on the Money family. Miss Daisy
Speaker 2: Major from Everest Wealth, Welcome back to the show.
Speaker 4: Thank you for having me again. I'm very excited.
Speaker 2: Oh I'm so excited. But I think my favorite thing
Speaker 2: ever is like I get dms all the time and
Speaker 2: they're like, hey, so I just listened to Daisy's episode
Speaker 2: and I'm like, that was ages ago. If you've got
Speaker 2: her email, I'd love to talk to her. This is
Speaker 2: the best thing ever this time round, though, Daisy, we're
Speaker 2: mixing it up. Instead of just talking about financial advisors
Speaker 2: in general and what they do and how they do it,
Speaker 2: I've actually decided to turn the tables and we have
Speaker 2: asked you guys to send in a heap of your
Speaker 2: biggest money questions, and there were some good ones and
Speaker 2: you get to answer them. I feel like we've got
Speaker 2: an ex financial advisor and a financial advisor just answering
Speaker 2: people's dirty dms. Gonna be great now. I wanted to
Speaker 2: start by saying that we had heaps of questions come
Speaker 2: through about what it's actually like to see a financial advisor,
Speaker 2: like how to choose the right one, what happens in
Speaker 2: the first meeting, and how much it costs, and if
Speaker 2: that's something that you are currently wondering. I actually recommend
Speaker 2: going back to our previous episode with Daisy because it's
Speaker 2: basically a step by step guide of exactly what to expect,
Speaker 2: and I've linked it in the show notes so that
Speaker 2: you're able to check it out. But that was a
Speaker 2: good one. That was our first one we tested the
Speaker 2: waters together. Yeah, but let's dive straight into I guess
Speaker 2: the proper questions, Daisy. Our first question is from a
Speaker 2: community member who's going to see a financial advisor and
Speaker 2: thinking about paying for it from their superannuation. A lot
Speaker 2: of people don't know that you can actually do this,
Speaker 2: so can you explain I guess how that works and
Speaker 2: whether it's something that you would actually recommend as a
Speaker 2: financial advisor.
Speaker 4: Yeah, absolutely so. Most super funds in the market will
Speaker 4: allow us to charge your fee. Some definitely don't, but
Speaker 4: most to do in the market. I suppose there's a
Speaker 4: few reasons as to why we would recommend that you
Speaker 4: do charge through super one of them is that you
Speaker 4: do get a fifteen percent tax reduction through the SUPERFI
Speaker 4: very sexy, yep. So it makes it fifteen percent cheaper
Speaker 4: for you.
Speaker 2: It's like a discount code, but you just have to
Speaker 2: use you Super.
Speaker 4: And then Yeah, for a lot of our clients that
Speaker 4: we see, it means that there's more money that they
Speaker 4: have to invest, pay off debt, keep in cash for
Speaker 4: a house deposit. But I suppose one of the big
Speaker 4: caveates is that we can't charge everything through Super. We
Speaker 4: have to meet what's called a sole purpose test. So
Speaker 4: that just means that we have to charge a percentage
Speaker 4: through Super of the percentage of advice that we're providing
Speaker 4: around your super fund.
Speaker 2: Yeah, and I don't know if you do this, but
Speaker 2: all the way back in the day when I used
Speaker 2: to be a financial advisor, sometimes as a part of
Speaker 2: our strategy, we would recommend that clients made an additional
Speaker 2: contribution to their super to pay for their advice because
Speaker 2: at tax time they get a deduction on it. So
Speaker 2: we're not just talking about using I guess your super
Speaker 2: fund savings or your super fund investments to pay We're
Speaker 2: talking about using that as a tool to pay and
Speaker 2: get a refund. But then also if you don't have
Speaker 2: the cash for financial advice but you like really need it,
Speaker 2: that's also an option.
Speaker 4: Yeah, one hundred percent. And there's definitely talks at the
Speaker 4: moment around making our fees tax seductible personally, so that
Speaker 4: will definitely change kind of how we propose it to clients.
Speaker 2: So sexy, it would be life changing, Like go see
Speaker 2: an accountant, tax deductible, go see a financial advisor. We
Speaker 2: literally can't let you claim your statement of advice on
Speaker 2: tax at the moment, and that makes no sense. Like
Speaker 2: at a deeper level, the government is benefiting when people
Speaker 2: are individually taking care of their own retirement. Yeah, why
Speaker 2: wouldn't you make that more attractive for us?
Speaker 4: Yeah, And it's just really strange how there's different tax
Speaker 4: laws with super compared to personally around this, So like
Speaker 4: the super funck can claim the tax deduction, but where
Speaker 4: you can't personally. Doesn't really make a heap of sense.
Speaker 4: But hopefully they.
Speaker 2: We don't make the rules. We're just playing within the
Speaker 2: rules and we're helping you understand them. So next one,
Speaker 2: I've got one of our community members shared how she
Speaker 2: saw two different financial advisors and then got two completely
Speaker 2: different sets of advice from each of them, which is
Speaker 2: obviously relatively confusing. What do you think about that? And
Speaker 2: how can someone tell which advice to follow? And I
Speaker 2: would say, more importantly, how do you know who financial
Speaker 2: advisor is even good?
Speaker 4: We definitely see people that come to us who are
Speaker 4: seen a financial advisor before, and maybe our advice is different.
Speaker 4: A lot of it lands on kind of the advisor's philosophy.
Speaker 4: Some maybe more pro property, some maybe more pro the
Speaker 4: share market. But I suppose what I recommend for people
Speaker 4: is that they try and find a financial advisor that
Speaker 4: deals with people that are in kind of their similar situations.
Speaker 4: So I wouldn't recommend a twenty eight year old single
Speaker 4: female go see a pre retire advisor, Like you want
Speaker 4: to be dealing with somebody that deals in your realm
Speaker 4: and is used to providing advice in your area.
Speaker 2: I think that's why you're so popular with our community, Daisy.
Speaker 4: And then yeah, I suppose, like how you know an
Speaker 4: advice is good? I mean, there's plenty of different websites
Speaker 4: where there's advisor ratings on there.
Speaker 2: Just ask me, are too?
Speaker 4: And that's what I saying, Go the she's on the
Speaker 4: money community, and yeah, Google reviews things like that, and
Speaker 4: I suppose a lot of advisors do provide that free
Speaker 4: of charge initial meeting and it's just really like you
Speaker 4: get a vibe check pretty quickly.
Speaker 1: But for that.
Speaker 4: Community member that's received kind of contradicting advice, it will
Speaker 4: definitely be kind of what feels better in your gut
Speaker 4: as to which one you would go with. I mean,
Speaker 4: we have a best interest duty that we need to
Speaker 4: provide to our clients. I wouldn't say necessarily one's right,
Speaker 4: one's wrong.
Speaker 2: Yeah, I was gonna say this sounds relatively strange because
Speaker 2: financial advice, we know isn't cheap, and to get two
Speaker 2: pieces of a advice that's a relatively expensive task. Like
Speaker 2: I might hold on, what are you doing? But I
Speaker 2: would say, and I love saying on the podcast when
Speaker 2: in doubt, zoom out, but like, let's look at the
Speaker 2: bigger picture. It might be completely different like asset recommendations,
Speaker 2: but like where are you going to land in the future,
Speaker 2: Like what's the big picture here as opposed to what
Speaker 2: is the like short term picture because you might go,
Speaker 2: oh my gosh, I don't have enough information here. But
Speaker 2: like this particular advisor suggested property and direct shares, and
Speaker 2: this other one said, oh more, you know ETF based portfolio.
Speaker 2: There's actually not a right or wrong. There's what that
Speaker 2: advisor is more comfortable with. And like, if I go
Speaker 2: back to when I was a financial advisor, I dealt
Speaker 2: a lot with direct shares, So like I would construct
Speaker 2: portfolios for clients made of eight to twelve, I would
Speaker 2: say basic shares that we had constructed and spoken about.
Speaker 2: But then I would have girlfriends who were also financial
Speaker 2: advisors and they're like, oh my gosh, Victoria, I know,
Speaker 2: absolutely not, I just do ETFs or you know, another
Speaker 2: financial advice is like, oh my god, no, Like I
Speaker 2: work for a financial advice firm that also has buyers agents,
Speaker 2: and like we do a lot of property. Like that
Speaker 2: doesn't mean that you're worse off from any We all
Speaker 2: just have different methodologies and honestly interests. Like I loved
Speaker 2: that share side of it took me longer, but it
Speaker 2: was like something that I was passionate about. So I
Speaker 2: think it's important to remember that it doesn't mean it's
Speaker 2: wrong one hundred percent.
Speaker 4: Yeah, And as long as they've met your goals, explain
Speaker 4: the advice to you then yeah, I think you really
Speaker 4: just go with your guart there.
Speaker 2: All right, we have a lot of questions from our
Speaker 2: community about lump sums and you know, choosing between I
Speaker 2: guess two different financial options like do I pay off
Speaker 2: my HEX or do I start investing? Or do I
Speaker 2: put extra money into my mortgage or my superannuation? Or
Speaker 2: do I start saving for a house Daisy, or should
Speaker 2: I just you know, go and buy an ETF What
Speaker 2: does that look like? These decisions, I would say, are
Speaker 2: not one size fits all. So how do you actually
Speaker 2: work out what the hell is best for you?
Speaker 4: Yeah? So I think a lot of it comes down
Speaker 4: to your goals and your time frames as well as
Speaker 4: kind of where you're at in life. So in terms
Speaker 4: of paying off your help debt compared to investing, I
Speaker 4: mean with the changes with help indexing at CPI or
Speaker 4: wage growth compared to investing in the market, Like investing
Speaker 4: in the market historically is done seven to ten percent,
Speaker 4: whereas putting a lumpsom off your HEX could be two
Speaker 4: to three percent. But then I suppose if you're looking
Speaker 4: at buying your house, like you may need to pay
Speaker 4: off some of your help debt. Hopefully again that changes
Speaker 4: with what the government's proposing. But like that may be
Speaker 4: a consideration that we take into overall goals in terms
Speaker 4: of kind of putting money in SUPER compared to paying
Speaker 4: it off your mortgage. That could depend a lot on
Speaker 4: where you're at with your life stage. So if you're
Speaker 4: getting closer to retirement age, closer to when you can
Speaker 4: access your SUPER, it may make a lot more sense
Speaker 4: to put money into SUPER, and then it's in a
Speaker 4: more tax effective environment. Whereas if you're planning on starting
Speaker 4: a family and need to kind of pay down your
Speaker 4: home mortgage or pay off some of your debt quicker,
Speaker 4: then it might make more sense to put it into debt.
Speaker 4: So there's not really a one size fits old.
Speaker 2: There, and it's all about like strategy as well.
Speaker 4: It all links back to your goals and where you
Speaker 4: want to be, what you want to be doing, and
Speaker 4: also your time frames. Because if you came to me
Speaker 4: and said, hey, Daisy, I want to buy a house
Speaker 4: in eighteen months, I'm going to chuck all my money
Speaker 4: in the share market for my.
Speaker 2: Deposit, terrible idea.
Speaker 4: Bye, Yeah, don't do that. The volatility that comes with
Speaker 4: that just isn't worth it. And maybe SUPER boring, but
Speaker 4: it's just keep it in cash, like you know that
Speaker 4: that's safe.
Speaker 2: Sometimes the most boring answer is the one exactly.
Speaker 1: Yeah.
Speaker 2: Yeah.
Speaker 4: I have clients that come to me and I'm like, look,
Speaker 4: keep it in cash, and I'm like, I know that
Speaker 4: it's boring.
Speaker 2: It's a very unsexy answer.
Speaker 4: It's very unsexy.
Speaker 2: But I mean, we can find a high interest savings count. Yeah,
Speaker 2: that could be fun, but yeah, don't invest it if
Speaker 2: it's a year.
Speaker 4: There's not one size fits old for that answer, but
Speaker 4: it's just working around kind of how much we can
Speaker 4: allocat in each area?
Speaker 2: Really can I ask perfect questions? Is that allowed?
Speaker 4: Absolutely?
Speaker 1: I like this.
Speaker 2: Do you still have a hex step?
Speaker 1: No?
Speaker 2: Oh, I'm very envious.
Speaker 1: I do.
Speaker 2: It's really I want to know, did you have a
Speaker 2: hex stet?
Speaker 4: I was blessed, single child odess?
Speaker 2: Okay, well, in that case, hypothetically, if you had a
Speaker 2: hex step.
Speaker 4: My husband still has a hex stet.
Speaker 2: Okay, all right, let's talk about him. Let's talk about here.
Speaker 2: Are you guys paying that off at more than what
Speaker 2: the base repayments are?
Speaker 1: Oh?
Speaker 2: So you're not adding extra contributions as the financial advisor? Interesting?
Speaker 2: All right, next question someone has asked, as a financial advisor,
Speaker 2: what is the most common mistake you see people making
Speaker 2: with their money?
Speaker 4: I suppose for me, it's not understanding their cash flow,
Speaker 4: so not understanding what's coming in, what's going out, not
Speaker 4: understanding kind of yeah, where they're surplus or where they're
Speaker 4: going to direct their money, and they sit on it.
Speaker 4: And it's that whole analysis paralysis thing where they sit
Speaker 4: on it. They know they need to do something with it,
Speaker 4: but it's like there's so many options that I don't
Speaker 4: know where to start, and it's kind of taking that
Speaker 4: first step and it may be the wrong one, but
Speaker 4: at least taking a step in one direction means that
Speaker 4: you're not just sitting there stagnating doing nothing. Yeah. But
Speaker 4: then also understanding where your money's going each pay cycle
Speaker 4: is something that like people don't really understand, so then
Speaker 4: they don't kind of seek advice or take that first step.
Speaker 2: Yeah. And I feel like that analysis paralysis is a choice.
Speaker 2: Like I'm not saying it's an easy choice, like we're
Speaker 2: just burying our head in the sand, but like not
Speaker 2: making a decision is still a decision one hundred percent, Yeah,
Speaker 2: and we need to just like move past that and
Speaker 2: especially women. We're so won't take bad but we're just
Speaker 2: so good at going oh great, I'm ready, and then
Speaker 2: you hear one word that you're like, I'm gonna have
Speaker 2: to start again. I'm going to have to do some
Speaker 2: more research, or like you've finally made a decision, maybe
Speaker 2: you want to buy a house and you've picked, and
Speaker 2: then a friend is like have you thought about and
Speaker 2: you're like, oh no, I don't know anything. And I
Speaker 2: think we don't back ourselves in our own research and
Speaker 2: making a decision that's right for us because we're so
Speaker 2: good at crowdsource. Like we've got a problem, we take
Speaker 2: it to the community. But also sometimes we just need
Speaker 2: to be a little bit insular and run our own race.
Speaker 2: And that's me really important, Daisy. This has been so
Speaker 2: good so far, but I really want to go to
Speaker 2: a quick break because I feel like I need a breather,
Speaker 2: a little cup of tea. After the break, we're going
Speaker 2: to dive into a topic that a lot of people
Speaker 2: were really curious about, and that is debt recycling. So
Speaker 2: we're going to discuss what it is, how it works,
Speaker 2: why it might actually be a strategy that could work
Speaker 2: for you. So guys, don't go anywhere, all right, Welcome back,
Speaker 2: my friends. We have Daisy from Everest Wealth talking all
Speaker 2: things finance, answering all of your questions and a lot
Speaker 2: of people in our community. Daisy, they were like, what
Speaker 2: is debt recycling? I feel like it started to trend
Speaker 2: a little bit on TikTok and they're like, hold up,
Speaker 2: what is this? How does it work? Can you break
Speaker 2: it down for us? What is debt recycling? What are
Speaker 2: your thoughts on it? Is it a good strategy? Who
Speaker 2: could this work?
Speaker 4: For? One hundred percent? Yeah, I do agree with you
Speaker 4: that it's definitely become a lot more prevalent question, mainly
Speaker 4: due to the tiktoks and stuff that I'm seeing.
Speaker 2: So I love when a client would bring like an
Speaker 2: Instagram video or something. You're like, look, I've seen this,
Speaker 2: and I'm like thinking, yes, same, but mine was at
Speaker 2: eleven PM. I'm not going to mention that.
Speaker 4: No, one hundred percent, So try and explain it as
Speaker 4: simply as possible. But it's effectively that you're taking your
Speaker 4: non deductible debt, so your home mortgage, and kind of
Speaker 4: redrawing on that and turning it into deductible debt. Which
Speaker 4: you then normally invest in the share market. Say that
Speaker 4: you have two hundred grand home mortgage and your house
Speaker 4: is worth eight hundred grand, you could effectively pull out
Speaker 4: one hundred grand of your equity yep, equity and turn
Speaker 4: that into effectively an investment loan, which then means that
Speaker 4: the interest on that one hundred grand investment loan becomes
Speaker 4: tax deductible for you claim it on tax. Yes, and
Speaker 4: then you would invest that normally in the share market,
Speaker 4: which then has Stori has done kind of seven to
Speaker 4: ten percent, and use the returns on that normally to
Speaker 4: then pay off your home loan.
Speaker 3: Quicker.
Speaker 2: That sounds relatively sexy, Yes, and at the moment all positive.
Speaker 4: Yes.
Speaker 2: So it's a strategy that you implement as a financial advisor.
Speaker 4: It's a lot more risky than just taking ten grand
Speaker 4: and putting it in an investment portfolio. So I suppose
Speaker 4: because you're leveraging or taking out debt to then go
Speaker 4: invest in the share market. Obviously, the share market comes
Speaker 4: with volatility, like we don't have a crystal ball, we
Speaker 4: don't know what it's going to do. But you're still
Speaker 4: going to have those debt repayments to pay. So I
Speaker 4: suppose it's really a strategy if people have a large
Speaker 4: surplus each year, so usually like twenty to thirty grand
Speaker 4: surplus already before the investment loan is taken out, and
Speaker 4: they understand the risk that comes with it, Like it
Speaker 4: is one of the more higher risk strategies that we
Speaker 4: implement for some clients, and a lot of people just
Speaker 4: think it's kind of free money that they can take
Speaker 4: out and invest without understanding the implications.
Speaker 2: Of having integration strategy.
Speaker 4: Yeah, yeah, it can definitely work well in a tax
Speaker 4: production strategy, but yeah, there's certainly a lot of risks
Speaker 4: that come with it that maybe a lot of those
Speaker 4: tiktoks don't really exploring.
Speaker 2: Those tiktoks drive me batty. Most finance content on TikTok
Speaker 2: drives me insane because I just look at it and go,
Speaker 2: oh my goodness, Like I know that you have just
Speaker 2: learned this and it's a very sexy thing, but you
Speaker 2: haven't taken this into consideration, or haven't talked about capital
Speaker 2: gains on that and actually brings that down and doesn't
Speaker 2: make it as an attractive opportunity as you're saying it is,
Speaker 2: or you haven't spoken about the fact that you have
Speaker 2: to pay tax on that income.
Speaker 4: Yeah. Yeah, And a lot of people they come to
Speaker 4: us and they really want to implement this strategy, but
Speaker 4: they may not have a cash surplus.
Speaker 1: Yeah.
Speaker 4: And it's like a lot of people believe were drawing
Speaker 4: equity from their house just means free money without actually
Speaker 4: understanding the implications of doing that. But yet it certainly
Speaker 4: has worked in some clients cases, and like they fully
Speaker 4: understand it and they have the surplus and they want
Speaker 4: that tax reduction. But a lot of clients, once we
Speaker 4: actually explain it and run through it with them, they're like, oh,
Speaker 4: that's too risky for me.
Speaker 2: Yeah. I found that when I was a financial advisor,
Speaker 2: I did use it for a few clients. It wasn't
Speaker 2: something that I recommended consistently, again because it was relatively
Speaker 2: high risk, Like you know, you do your client risk
Speaker 2: profile and you know you're only really even talking about
Speaker 2: this that they come back as a high risk client
Speaker 2: to begin with. But I found that younger clients with
Speaker 2: really high incomes and debt it worked really well for yeah,
Speaker 2: because you know, I'm just thinking of this one client.
Speaker 2: I used to have a couple, both lawyers, really really
Speaker 2: like career driven no kids, no plans for kids, and
Speaker 2: you were like, Okay, cool, this is going to work
Speaker 2: really well because you guys are just saving so much
Speaker 2: money anyway, and we also have another thirty years in
Speaker 2: the share market, and like our plan was to do
Speaker 2: that essentially extinguish all of that debt. I think it
Speaker 2: was like more than like fifteen years earlier because of
Speaker 2: that strategy. But it was a privilege, Like it wasn't
Speaker 2: a oh, yeah, you can do this and it's going
Speaker 2: to be better for you financially. It was like, because
Speaker 2: they had a lot of money, we could do that
Speaker 2: because if at the end of the day they were
Speaker 2: stretched for cash, I knew they were sitting on way more.
Speaker 4: Yeah, and one hundred percent like the clients that I
Speaker 4: can think of that have implemented a very similar situation
Speaker 4: where they're both high income earners, no plans for children
Speaker 4: or career breaks. So yeah, it definitely has made sense
Speaker 4: in those scenarios.
Speaker 2: I think we're on the same page about who we
Speaker 2: would recommend that for. Yeah, or right, let's flip the narrative.
Speaker 2: We're no longer talking about houses, We're going to talk
Speaker 2: about cars. Car leasing is one of those things that
Speaker 2: sounds good in theory. You get a new car, no
Speaker 2: upfront payment. Very nice. Maybe I'll get myself a NACA.
Speaker 2: But is it actually a good financial move? What are
Speaker 2: the pros and cons? And who does this make sense for?
Speaker 4: Yeah, definitely, so car leasing is one that pops up
Speaker 4: a lot. I suppose the first discussion, is you even
Speaker 4: need a new car?
Speaker 2: Is we don't humble us.
Speaker 4: That's all we have with people because you buy a car,
Speaker 4: and yeah, it's kind of a spent expense, but you
Speaker 4: do need a car to get around.
Speaker 2: So I agree. I'm going to sidetrack this for a
Speaker 2: hot second. Do you buy brand new cars as a
Speaker 2: financial advisor?
Speaker 1: No?
Speaker 4: No, I know, Like why I don't know. It's that
Speaker 4: whole thing of as soon as you drive out of
Speaker 4: the dealership you lose, Like we just can't do it.
Speaker 2: Yeah, I bought my car secondhand too, don't worry, Like,
Speaker 2: I'm not saying that I bought a cheap car. Like,
Speaker 2: don't get me wrong. I want to be really clear
Speaker 2: that I'm not pretending that's a super budget decision, but
Speaker 2: I'm definitely not spending the extra money like someone else.
Speaker 2: You drive it, you make the loss. I make the game.
Speaker 2: Talk to me about why people think that leasing a
Speaker 2: car is a good idea if they've decided that a
Speaker 2: new car is in line with their goals and their values.
Speaker 4: So people see, as you said, they don't have to
Speaker 4: fork out that big lump some payment to start with,
Speaker 4: and they can just kind of have some money come
Speaker 4: out of their salary each fortnite without understanding kind of
Speaker 4: the balloon payment at the end.
Speaker 2: Of the balloon payment.
Speaker 4: So yeah, a lot of people don't understand that. Yeah,
Speaker 4: you're paying money each fortnite or each pay cycle pre
Speaker 4: tax and post tax, but every lease has a balloon
Speaker 4: payment at the end of it, depending on how long
Speaker 4: the lease is for, depending on how big the balloon
Speaker 4: payment is, but it's usually a fair summer money.
Speaker 2: It's usually like thirty or forty percent yeah, one hundred
Speaker 2: car's value.
Speaker 4: Yeah, so then it's planning for that. So then you're
Speaker 4: receiving lesson your pay each fortnite, but then having to
Speaker 4: save money for this balloon payment at the end of
Speaker 4: the lease unless you roll it into a new lease.
Speaker 4: So balloon payment is number one that we highlight. Two
Speaker 4: clients that are looking at a lease, usually the in
Speaker 4: bill interest rate is a lot higher than other loans
Speaker 4: that you could get for a car, and there's usually
Speaker 4: an admin fee that the leasing companies charge as well.
Speaker 2: So sneaking, aren't they know? They know what they're doing.
Speaker 4: Yeah, so they will present to you how much the
Speaker 4: tax saving is and all of that, And again that
Speaker 4: looks really sexy, but if you actually drill down into it,
Speaker 4: you kind of look at comparing it to a personal loan,
Speaker 4: redrawing on your home mortgage if you can, or using
Speaker 4: cash for it, it usually ends up kind of better
Speaker 4: off doing one of the other options over leasing. I
Speaker 4: suppose there is a caveat to that though, for electric
Speaker 4: vehicles or plug in electric vehicles, so I'm not talking
Speaker 4: about hybrids or anything.
Speaker 2: This wasn't around when I was doing advice.
Speaker 4: Tell me for evs or plug in evs with leasing,
Speaker 4: it just means that you can take one hundred percent
Speaker 4: of the lease payment pre tax. Sorry what yeah, posts
Speaker 4: comes out except I don't like Elon, I don't want
Speaker 4: to buy a Sesler, That's true, there's plenty of other ones.
Speaker 2: I don't know enough about cars to have a proper
Speaker 2: opinion here.
Speaker 4: So yeah, that for high income earners definitely has shown
Speaker 4: a better result. But I suppose, yeah, you need to
Speaker 4: want an or a plug in EV and understand the
Speaker 4: costs that come with that. But in those cases when
Speaker 4: we've done the numbers, it has actually worked out better
Speaker 4: off taking a lease. But yeah, they're kind of far
Speaker 4: and few between.
Speaker 2: That is good to know, and I feel like so
Speaker 2: many people are like, oh, I'll just lease it, as
Speaker 2: though that's a flippant decision, but long term could actually
Speaker 2: cost you so so much more. I want to flip
Speaker 2: the script again. So with cars, we've done homes, now
Speaker 2: we're going to do education. Education bonds aren't talked about
Speaker 2: as much as other investment options, but a few of
Speaker 2: our members have been relatively curious recently. I think potentially
Speaker 2: because I have been talking a lot about investment bonds
Speaker 2: because that's something that I invest in and something that
Speaker 2: I have been using. But a few of our community
Speaker 2: members want to know what are they, how do they work?
Speaker 2: Are they actually a good strategy for saving for kids education?
Speaker 4: Yeah? Absolutely, And I feel like I'm getting a lot
Speaker 4: more education bond questions. So again that might be coming
Speaker 4: from tea top.
Speaker 2: We're all in the same era right now. We're thinking
Speaker 2: about having kids, or we've just got kids, or like
Speaker 2: we're all growing together.
Speaker 4: Yeah, one hundred percent. So an education bond is effectively
Speaker 4: a tax structure similar to an investment bond, where the
Speaker 4: tax is paid within the bond, but then there's an
Speaker 4: additional education bond tax saving on top of this. With
Speaker 4: an education bond, they operate quite similar to an investment
Speaker 4: bond like you that put in a lump sum or
Speaker 4: put in a regular amount each year, but the purpose
Speaker 4: of it is for the beneficiary's education. So whether that's
Speaker 4: schooling tertiary, there's no requirement for it to be one
Speaker 4: over the other. I suppose a lot of people do it.
Speaker 4: If both parents, say are high income earners, grandparents want
Speaker 4: to set up for their grandchildren, they will do it
Speaker 4: because it is taxed internally. So if I set up
Speaker 4: an education bond for one of my children, like nothing
Speaker 4: would be taxable in my own name. It's all taxed
Speaker 4: within the bond, which is sexy. Yeah. So a lot
Speaker 4: of people ask, well, what if my child doesn't go
Speaker 4: and do tertiary education, what if I end up sending
Speaker 4: them to my local public school instead? Can I take
Speaker 4: the money out? The answer is yep, absolutely. The amount
Speaker 4: that you're putting in each year, or if you put
Speaker 4: in a lump sum, you can take that out tax free.
Speaker 4: It just depends on how long you've had it in there.
Speaker 4: For the earnings that has accumulated in that account as
Speaker 4: the wather, you can then pull that out tax free. Yeah,
Speaker 4: it can be a very tax beneficial way of saving
Speaker 4: for your children's education. We mainly implement them for high
Speaker 4: income earners, where if there's two parents, one maybe on
Speaker 4: a lower income, not planning on kind of returning to
Speaker 4: work full time until the kids to finish school, it
Speaker 4: may make more sense to set up an investment account
Speaker 4: in their name for the kids' education, for example. So yeah,
Speaker 4: again they come with additional admin fees and stuff like that,
Speaker 4: but yeah, they can be very beneficial in some cases.
Speaker 2: If you had kids, Daisy, what would your plan be
Speaker 2: when it comes to investing for them?
Speaker 4: I would probably set up in an education bond, just
Speaker 4: purely due to my situation. But yeah, I suppose if
Speaker 4: I wasn't planning on working kind of full time when
Speaker 4: I had kids in school, then I'd probably look at
Speaker 4: s someting something up in my own name.
Speaker 2: Not see that happening, I know, you well enough to
Speaker 2: know she's gonna be a working mum guy.
Speaker 4: Yeah, definitely, But like there are so many other options
Speaker 4: as well, so like.
Speaker 2: Oh, there's six million, and I feel like I'm thinking
Speaker 2: about it now I have a baby, and I'm like, well,
Speaker 2: what do I do? And we ended up going down
Speaker 2: the investment bond route because it just worked best for us,
Speaker 2: and I like the flexibility afforded with it, and like,
Speaker 2: I just didn't want him to in the future feel
Speaker 2: like he was being pressured down the education pathway. And
Speaker 2: don't get me wrong, like love education, but I don't
Speaker 2: know who he is yet or like what he's going
Speaker 2: to be interested in or who he wants to become.
Speaker 2: And I just was like, oh, I like the idea
Speaker 2: that that could benefit him in a number of different ways.
Speaker 2: But do you have clients picking between an education bond
Speaker 2: or an investment bond? Is that a conversation you have often?
Speaker 4: Yeah, definitely, And I suppose a lot of people probably
Speaker 4: feel similar to you, where they don't necessarily want to
Speaker 4: put it into an education bond if they don't know, like, yeah,
Speaker 4: what their child's going to be like longer.
Speaker 2: There's extra benefits for sure.
Speaker 4: Yeah, there's definitely actually benefits. And I suppose like some
Speaker 4: people do come to us and they're like, Nope, I
Speaker 4: want to send my child to the school that I
Speaker 4: went to. I know it's going to cost me thirty
Speaker 4: grand a year, and I want to say for that,
Speaker 4: and that's like a no brainer in that situation if
Speaker 4: both parents are high income earners, whereas some people are like, oh,
Speaker 4: I may move house into a better catchments than they
Speaker 4: may go to a public high school. I don't know
Speaker 4: really if they're going to do any tertiary education.
Speaker 2: I just don't know.
Speaker 4: Yeah, so if the unknowns are there, then yeah, probably
Speaker 4: an investment bond would be more beneficial if you're pretty
Speaker 4: set on what your child's education is going to look
Speaker 4: like than an education bond.
Speaker 2: Maybe. Yes, smart, good chat. I feel like that one
Speaker 2: is a good topic. Let's talk about singles. Do you
Speaker 2: have any advice for our listeners who are currently going
Speaker 2: you know what, money is really hard at the moment
Speaker 2: I am single. What would you say?
Speaker 4: What do you do?
Speaker 2: I know you give advice to single women all the
Speaker 2: time because I keep sending them to you.
Speaker 4: Yeah, so I suppose a lot of people are worried
Speaker 4: about seeking advice as a single person because they feel
Speaker 4: like maybe they don't have the cash flow there or
Speaker 4: something like, they feel like as though they need dual
Speaker 4: income to be able to kind of do anything with
Speaker 4: their finances, which is just absolutely not correct. So, as
Speaker 4: you mentioned, we see a lot of single females mainly
Speaker 4: who just want to kind of take a step in
Speaker 4: the right direction. So like, coming and seeking advice shouldn't
Speaker 4: be scary.
Speaker 2: You actually are quite scary. So I don't know, Well,
Speaker 2: a lot of people do say that, I don't do
Speaker 2: they Actually I don't find Daisy scary. I find Daisy
Speaker 2: lovely and you should definitely talk to her.
Speaker 4: No, maybe you can ask my husband that, but I
Speaker 4: don't ask my.
Speaker 2: Husband about opinions if that's who we're going to.
Speaker 4: But no, seeking advice as a single person shouldn't be scary.
Speaker 4: We do it all the time, and just making a
Speaker 4: few small tweaks can mean that, yeah, like you can
Speaker 4: reach a few of these goals. I mean, so many
Speaker 4: single females that I see they're worried about, like investing
Speaker 4: in the share market, having stability, having like a bit
Speaker 4: of a nest egg there as an emergency fund. So
Speaker 4: we work through all of that, and like we understand
Speaker 4: there's a single income, We understand all of that. But
Speaker 4: even like little things like putting in place some insurance,
Speaker 4: looking at their super, making sure they have a will,
Speaker 4: all of that is all part of what we do
Speaker 4: as financial advisors and assist with. So like, at least
Speaker 4: then you're ticking off a few things.
Speaker 2: That make me miss my job. I am very envious.
Speaker 2: I'm not gonna lie. I do like this a lot.
Speaker 2: But you know when someone's like, oh yeah, also I
Speaker 2: do this, I'm like, ah, what did I do when
Speaker 2: I get out of that? All right, let's talk about
Speaker 2: like obviously, being single, there's a lot of pressure, but
Speaker 2: there's also a lot of pressure as you feel as
Speaker 2: though you're getting older and you might have missed the
Speaker 2: boat or you like haven't done enough. And actually a
Speaker 2: lot of our community members wrote in and said that
Speaker 2: they were feeling like it's a little bit too late
Speaker 2: for us, like I don't know if it's even worth
Speaker 2: trying to start to build wealth, or like is it
Speaker 2: only worth just investing in my super because like I'm,
Speaker 2: you know, getting really old and I think I've missed
Speaker 2: the boat. What's your advice there.
Speaker 4: You're absolutely never too old to start and put in
Speaker 4: place some good money structures. Yeah, And it may be
Speaker 4: let's struck it all into super because you are getting
Speaker 4: closer to retirement age, but at least you know that's
Speaker 4: the right the right decision, yeah, or it might be yeah,
Speaker 4: just having a discussion around all right, let's smash down
Speaker 4: the mortgage so that, Yeah, you can retire early if
Speaker 4: you want to. But you're absolutely never too old to
Speaker 4: get advice. You're never too young to get advice either.
Speaker 4: That's what I see quite a bit is, yeah, they
Speaker 4: feel like we should have done this ten years ago.
Speaker 4: I'm like, yeah, but you're doing it now. So that's
Speaker 4: great because in five years time you would have gone, oh,
Speaker 4: I should have done it fifteen years ago, whereas it's like,
Speaker 4: don't worry about that. We're doing it now and we
Speaker 4: can still make some really good changes and mean that
Speaker 4: kind of long term you are going to be better off.
Speaker 2: Yeah, And like, don't get me wrong, you're not going
Speaker 2: to see the same compounding impact in the over forty
Speaker 2: years has totally but you're still going to see some
Speaker 2: of that. Like, yes, it's not going to be as
Speaker 2: dramatic as the Instagram pictures or you know the examples
Speaker 2: that I sometimes use on this podcast. But like, even
Speaker 2: if you've got three or four years before retirement, you
Speaker 2: are literally going to be tens of thousands of dollars
Speaker 2: better off because you're making changes now, and I can
Speaker 2: promise you few to you, even if it's a five
Speaker 2: thousand dollar difference, a ten thousand dollar difference, like just
Speaker 2: because it's not hundreds of thousands of dollars, I promise
Speaker 2: you're going to be so much more comfortable just having that,
Speaker 2: even if it's like structuring your emergency fund for what
Speaker 2: that looks like, and making sure that we can get
Speaker 2: a pension, and making sure that we can do all
Speaker 2: of the things that give you a comfortable life. Like
Speaker 2: I promise you it's not too late, because the worst
Speaker 2: thing is getting to the very end of your career
Speaker 2: and going I would like to retire tomorrow and being told, oh, actually,
Speaker 2: like if you'd come five years ago, we could have
Speaker 2: structured you so that you're retired today, going to take
Speaker 2: another five years, Like let's just get it together, yeah,
Speaker 2: because no one regrets having a few more dollars in
Speaker 2: their account.
Speaker 4: Yeah, And it's getting people that peace of mind and
Speaker 4: knowing what the future looks like as well, because yeah,
Speaker 4: as you said, if you're three four years off retirement,
Speaker 4: you want to know that that is achievable. You don't
Speaker 4: want to be like that person who comes and says
Speaker 4: I want to retire tomorrow and then it's like, no,
Speaker 4: it's going to be a few more years.
Speaker 2: Yeah, exactly.
Speaker 4: So, yeah, you're definitely never too old to seek advice.
Speaker 4: And yes, I said, you're never too young either.
Speaker 2: I feel like I've learned a lot about that obviously
Speaker 2: when I was an advisor, but now even in the
Speaker 2: She's on the Money community, people ride in and they're like,
Speaker 2: oh my gosh, Victoria, I'm in my seventies and I'm like,
Speaker 2: slay queen. Yeah, like that's so cool. All right, We're
Speaker 2: running out of time very quickly. But finally we had
Speaker 2: a few people ask Daisy, your job sounds really cool.
Speaker 2: How do I also become a financial advisor? And do
Speaker 2: you have any advice for anyone who's like, oh, maybe
Speaker 2: that's a career pathway for me.
Speaker 4: Yeah. So I suppose a little bit of history of
Speaker 4: why I got into financial advice was that I wanted
Speaker 4: to help people, So I really wanted to help care
Speaker 4: for people, but I didn't want to go into the
Speaker 4: medical field.
Speaker 2: So I was like, I thought I wanted to be
Speaker 2: a doctor, and I realized you actually have to do
Speaker 2: like blood and guts and stuff. Yeah.
Speaker 4: Yeah, so very similar to me where I was like,
Speaker 4: I want to help people. I want to make sure
Speaker 4: that yeah, I'm doing something good for people, but I
Speaker 4: didn't want to go into the medical field. So I
Speaker 4: was like, I can help people set themselves up, feel
Speaker 4: good about their goals, know they're going to reach them.
Speaker 4: I suppose becoming a financial advisor, there's definitely some education
Speaker 4: requirements now, which is awesome. So yeah, there's relevant degrees
Speaker 4: that you need to do, as well as potentially some
Speaker 4: post study as well as a financial advisor exam and
Speaker 4: a professional year. Sounds very overwhelming and daunting when we
Speaker 4: say it like that, but I suppose find a financial
Speaker 4: advice practice that has a really good grad program. Yeah, so,
Speaker 4: like we have three graduates at the moment that we're
Speaker 4: working through very structured graduate program, so they feel as
Speaker 4: though they're growing in their role or they feel as
Speaker 4: though they're learning all the different aspects. Cool.
Speaker 2: I remember when it was just the boys, and now
Speaker 2: you've got three graduates. What are you talking about?
Speaker 4: Yeah, So, like when they came and interviewed with us,
Speaker 4: we laid out that graduate structure and we were like, look,
Speaker 4: this is where you're going to be if you stay
Speaker 4: with us, if you want to move as quickly or
Speaker 4: as slowly as you want to finding a good financial
Speaker 4: planning practice that has some structure in place to make
Speaker 4: sure that you are growing and are hitting those milestones.
Speaker 4: Because I interview so many people that have been in
Speaker 4: financial advice for a few years and they're like, I
Speaker 4: just feel like I'm stagnating in my role. I feel
Speaker 4: as though I'm not going to be able to start
Speaker 4: my professional year, or I feel as though even if
Speaker 4: I started that it's going to take me a few
Speaker 4: years and I'm not going to have the support there.
Speaker 4: Whereas like, we're very big on support and making sure
Speaker 4: that kind of you are hitting those milestones. I mean,
Speaker 4: I finished my professional year with Everest Wealth when I
Speaker 4: moved over, and yeah, having a good supportive employer is
Speaker 4: really important. But yet being financial advisors all it's very rewarding.
Speaker 4: Makes me feel nice when I come home at nights
Speaker 4: and helping people in a similar kind of age bracket
Speaker 4: to me is also really nice. I feel as though I.
Speaker 2: Feel like you've lucked out at Everest, And I'm not
Speaker 2: saying it's a bad thing, but like that's why I
Speaker 2: got She's on the money right, Like I was working
Speaker 2: with beautiful clients. They were so nice, but they were
Speaker 2: high income earners who were not in my demographic. I
Speaker 2: didn't have a lot in common with them. They were
Speaker 2: my parents' age, and that's fantastic, but I just didn't
Speaker 2: resonate with them, and I wanted to work with women.
Speaker 2: I wanted to work with young but you've like literally
Speaker 2: got my dream financial advice job.
Speaker 4: They're going through similar life stages to me, Like, yeah,
Speaker 4: they're maybe getting married, wanting to start a family, wanting.
Speaker 2: To tips and tricks too, yeah.
Speaker 4: Like wanting to purchase their first home. Like it's all
Speaker 4: really awesome goals that we're trying to reach and watching
Speaker 4: people tick those off is really nice. Like we've had
Speaker 4: clients recently that have come back and they're like cool,
Speaker 4: So when we first saw you, we wanted to get
Speaker 4: married and buy our first house and have a baby.
Speaker 4: We've ticked all those things off, So cool again, and
Speaker 4: I'm like, oh, that's so nice.
Speaker 2: Like I like being part of like the Pervy journey
Speaker 2: as well, just knowing how they're tracking what they're doing,
Speaker 2: Like I'm a planner at heart. Yeah, like you give
Speaker 2: me a plan, you give me a list. I'm in
Speaker 2: and that you get to do that as a career
Speaker 2: is really cool. Yeah, it's very rewarding, Daisy. I have
Speaker 2: adored this chat as always. Thank you so much for
Speaker 2: agreeing to come back on the show. I feel like
Speaker 2: I might have scared you off the first time, but
Speaker 2: apparently I didn't, which is great because it means that
Speaker 2: I can ask you again and again. I feel like
Speaker 2: you've shared so much wisdom and I know our community
Speaker 2: is going to be like, we love this, Get Daisy
Speaker 2: on again. I feel like I could keep sorry. I
Speaker 2: feel like I could keep asking questions literally all day,
Speaker 2: and I kept having to keep myself on track. But
Speaker 2: if people are like, oh I like the sound of
Speaker 2: Daisy or I like the sound of everest Wealth and
Speaker 2: want to learn more, where can we find you.
Speaker 4: On our website? We have a booking link where Yeah,
Speaker 4: you can have any request Daisy. Yes, So the introductory
Speaker 4: call will be done by one of the teams, so
Speaker 4: it won't be done by me necessarily, but if you
Speaker 4: absolutely do want to work with me, you can. We
Speaker 4: have kind of seven awesome advisors as well in the
Speaker 4: seven Now, yes.
Speaker 2: It is growing, Yes, I know that already. I'm just
Speaker 2: so impressed.
Speaker 4: So, yeah, we have seven awesome advisors. I'm one of them.
Speaker 4: So you can book in through our website for an
Speaker 4: introductory call with the team. We'll kind of take you
Speaker 4: through a little bit more around our process, gather a
Speaker 4: bit of information about you, and then book you in
Speaker 4: for an initial meeting.
Speaker 2: I love it. I love the rest of the team too.
Speaker 2: Like Dais is cool, she's willing to go on the pod,
Speaker 2: but the rest of the team equally is cool. And
Speaker 2: for those of you who have been loving our Q
Speaker 2: and A style episodes, don't worry. I have a lot
Speaker 2: more come in your way. We'll be diving into investing
Speaker 2: and property in some upcoming episodes. And if you've got
Speaker 2: questions that you really really want answered, I want you
Speaker 2: to go and follow us on Instagram because that's where
Speaker 2: we do our listener call out and pop up question
Speaker 2: boxes and like get all of the information. The link
Speaker 2: to that is in our show notes, so make sure
Speaker 2: you're following us. The linked Everest Wealth is in our
Speaker 2: show notes. You can follow Daisy. But Daisy, thank you
Speaker 2: so much for hanging out. I have adored this and
Speaker 2: I know that the community are going to love it
Speaker 2: as much as I have.
Speaker 4: Thank you so much for having me on again.
Speaker 2: Have a good day, guys.
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