1 00:00:00,200 --> 00:00:19,440 Speaker 1: She's on the Money. She's on the Money. 2 00:00:23,160 --> 00:00:26,239 Speaker 2: Hello, and welcome to She's on the Money, the podcast 3 00:00:26,280 --> 00:00:30,560 Speaker 2: for millennials who want financial freedom. Retirement is something that 4 00:00:30,600 --> 00:00:33,080 Speaker 2: seems a long way off for most of us, but 5 00:00:33,320 --> 00:00:36,680 Speaker 2: according to Victoria Divine herself, putting in a little extra 6 00:00:36,760 --> 00:00:39,400 Speaker 2: work now can place us in a much better spot 7 00:00:39,520 --> 00:00:41,960 Speaker 2: when we do finally arrive at the end of our careers. 8 00:00:42,320 --> 00:00:44,280 Speaker 2: That's so dramatic and sad. 9 00:00:44,720 --> 00:00:47,239 Speaker 3: Can't we be excited to be putting ourselves in a 10 00:00:47,280 --> 00:00:48,320 Speaker 3: position to retire? 11 00:00:48,760 --> 00:00:51,240 Speaker 2: Of course, and that is what we will learn throughout 12 00:00:51,240 --> 00:00:51,600 Speaker 2: the show. 13 00:00:51,720 --> 00:00:54,440 Speaker 3: My girl. Okay, all right, you were like, oh, so 14 00:00:54,840 --> 00:00:56,680 Speaker 3: like you can put yourself in a bit of a 15 00:00:56,680 --> 00:01:00,920 Speaker 3: better position at the end of your career, so sad? 16 00:01:01,440 --> 00:01:02,920 Speaker 2: Well, no, it's exciting. It's excited. 17 00:01:02,920 --> 00:01:04,800 Speaker 3: I don't want to stop working get there. 18 00:01:05,160 --> 00:01:07,319 Speaker 2: Well, hey, I don't think. I can't imagine you will 19 00:01:07,319 --> 00:01:07,880 Speaker 2: stop working. 20 00:01:07,920 --> 00:01:08,360 Speaker 3: But I. 21 00:01:09,880 --> 00:01:14,720 Speaker 2: Am Georgia King. I'm a copywriter and journalism student. I 22 00:01:14,760 --> 00:01:18,520 Speaker 2: don't say that enough these days. Anyway. Here to help 23 00:01:18,560 --> 00:01:21,840 Speaker 2: explain exactly how much money we need to retire and 24 00:01:21,880 --> 00:01:23,760 Speaker 2: the steps we can take to help us get there, is, 25 00:01:23,800 --> 00:01:29,960 Speaker 2: of course, financial advisor Victoria Divine for anyone listening today 26 00:01:30,040 --> 00:01:33,960 Speaker 2: who is around our age and is thinking retirement, that's 27 00:01:34,000 --> 00:01:37,440 Speaker 2: a boring topic. I don't want to listen now. 28 00:01:37,640 --> 00:01:39,680 Speaker 3: Don't bother if you think that this is going to 29 00:01:39,720 --> 00:01:44,280 Speaker 3: be super boring, just zone out, like honestly, why bother? 30 00:01:44,840 --> 00:01:48,080 Speaker 3: But being more serious, and I know it is not sexy, 31 00:01:48,200 --> 00:01:51,480 Speaker 3: but it is so important to set ourselves up properly 32 00:01:51,560 --> 00:01:54,200 Speaker 3: now so that when we get to retirement it's not 33 00:01:54,280 --> 00:01:56,640 Speaker 3: a surprise. And as much as it feels like a 34 00:01:56,680 --> 00:01:59,480 Speaker 3: million years away, Georgia, I think the easiest thing that 35 00:01:59,520 --> 00:02:01,840 Speaker 3: you can do to get a little bit of perspective 36 00:02:02,200 --> 00:02:05,000 Speaker 3: is ask a person who's in their sixties, whether that 37 00:02:05,160 --> 00:02:07,920 Speaker 3: is a parent, a guardian, maybe somebody that you're friends with. 38 00:02:08,120 --> 00:02:08,560 Speaker 2: I don't know. 39 00:02:08,840 --> 00:02:13,240 Speaker 3: Ask someone in their sixties, Hey, did retirement creep up 40 00:02:13,240 --> 00:02:15,840 Speaker 3: on you? They'll be like, yes, I was thirty yesterday. 41 00:02:16,000 --> 00:02:19,320 Speaker 3: I was actually nineteen yesterday. How many times do we 42 00:02:19,360 --> 00:02:22,440 Speaker 3: hear our parents, Georgia, this is just relevant for you, 43 00:02:22,480 --> 00:02:24,920 Speaker 3: and I don't know if it's relevant for everybody else, 44 00:02:25,120 --> 00:02:26,880 Speaker 3: but how many times do we hear our parents talking 45 00:02:26,919 --> 00:02:29,040 Speaker 3: about like, oh, well, when I bought a house or 46 00:02:29,080 --> 00:02:32,640 Speaker 3: when I was your age, like it feels like yesterday, 47 00:02:32,760 --> 00:02:36,760 Speaker 3: time literally flies, and as much as retirement seems off 48 00:02:36,800 --> 00:02:39,160 Speaker 3: in the distance and it's not something that we should 49 00:02:39,240 --> 00:02:42,720 Speaker 3: be prioritizing, I promise you it is. And by putting 50 00:02:42,720 --> 00:02:45,560 Speaker 3: in a tiny bit of effort right now, you're putting 51 00:02:45,600 --> 00:02:48,880 Speaker 3: yourself in a position that is probably going to put 52 00:02:48,960 --> 00:02:52,720 Speaker 3: you hundreds of thousands of dollars ahead in retirement without 53 00:02:52,800 --> 00:02:55,480 Speaker 3: much more effort. But if you leave it too late, 54 00:02:55,600 --> 00:02:57,320 Speaker 3: that's not going to be an option for you. So 55 00:02:57,360 --> 00:02:58,600 Speaker 3: that's why it's important. 56 00:02:58,600 --> 00:03:01,480 Speaker 2: Georgia King. Yeah, okay, well said, well said, thank you, 57 00:03:01,520 --> 00:03:05,160 Speaker 2: so you here all day. So you just mentioned hundreds 58 00:03:05,200 --> 00:03:07,520 Speaker 2: of thousands of dollars ahead if we do start now, 59 00:03:07,960 --> 00:03:10,920 Speaker 2: how much money do we actually need to retire in Australia? 60 00:03:11,200 --> 00:03:15,320 Speaker 3: Hundreds of millions of dollars? But actually that's not true. 61 00:03:15,360 --> 00:03:18,400 Speaker 3: So it completely depends on what kind of lifestyle you 62 00:03:18,440 --> 00:03:20,480 Speaker 3: want to lead and the big costs that you'll probably 63 00:03:20,520 --> 00:03:22,720 Speaker 3: want to cover at that point in your life, like 64 00:03:22,960 --> 00:03:24,840 Speaker 3: are you still going to be paying off a mortgage 65 00:03:24,840 --> 00:03:27,760 Speaker 3: where you have medical costs? Are you planning on retiring 66 00:03:27,800 --> 00:03:30,560 Speaker 3: and going to the Amalfi Coast for six months of 67 00:03:30,600 --> 00:03:33,320 Speaker 3: every year, or maybe you're planning something a little more 68 00:03:33,360 --> 00:03:36,440 Speaker 3: low key, like buying a caravan and going around Australia, 69 00:03:36,880 --> 00:03:39,160 Speaker 3: or maybe you don't want either of those things and 70 00:03:39,240 --> 00:03:41,000 Speaker 3: you're like me and just want to stay at home 71 00:03:41,000 --> 00:03:41,640 Speaker 3: with your cats. 72 00:03:41,720 --> 00:03:43,560 Speaker 2: It is completely up to you. 73 00:03:43,840 --> 00:03:47,720 Speaker 3: But all of those different lifestyle choices have different costs 74 00:03:47,800 --> 00:03:51,120 Speaker 3: associated with them. So the most important thing that you 75 00:03:51,160 --> 00:03:54,720 Speaker 3: can do is actually work backwards and go, all right, 76 00:03:54,920 --> 00:03:57,600 Speaker 3: how much money am I likely going to need in 77 00:03:57,640 --> 00:04:01,560 Speaker 3: retirement and work out what kind of investment figure is 78 00:04:01,600 --> 00:04:04,000 Speaker 3: going to produce that income for you? And we'll get 79 00:04:04,000 --> 00:04:05,440 Speaker 3: into it and I'll tell you how to do it 80 00:04:05,480 --> 00:04:08,280 Speaker 3: in a minute. But according to money Smart, a good 81 00:04:08,400 --> 00:04:11,200 Speaker 3: rule of thumb is that you'll need two thirds or 82 00:04:11,640 --> 00:04:15,280 Speaker 3: sixty seven percent, or let's be more technical, sixty six 83 00:04:15,320 --> 00:04:18,919 Speaker 3: point sixty six percent of your pre retirement income to 84 00:04:19,000 --> 00:04:23,080 Speaker 3: maintain the same standard of living in retirement. So that 85 00:04:23,240 --> 00:04:25,840 Speaker 3: feels like a good amount because some people listening to 86 00:04:25,880 --> 00:04:28,760 Speaker 3: this podcast earn fifty thousand dollars. Some people don't earn 87 00:04:28,800 --> 00:04:31,159 Speaker 3: anything and they are on benefits at the moment, which 88 00:04:31,200 --> 00:04:34,120 Speaker 3: is totally fine, and some people earn four hundred thousand dollars, 89 00:04:34,200 --> 00:04:36,280 Speaker 3: So it is going to be different for everybody, and 90 00:04:36,320 --> 00:04:40,360 Speaker 3: that's actually okay. But the Association of Super Funds of 91 00:04:40,400 --> 00:04:45,000 Speaker 3: Australia has an industry retirement standard which actually estimates how 92 00:04:45,040 --> 00:04:48,320 Speaker 3: much money you'll need according to the type of lifestyle. 93 00:04:47,800 --> 00:04:49,080 Speaker 2: That you currently need. 94 00:04:49,520 --> 00:04:52,080 Speaker 3: And they say, for individuals who want what they are 95 00:04:52,080 --> 00:04:56,440 Speaker 3: calling a quote comfortable lifestyle, they're going to need forty 96 00:04:56,480 --> 00:05:00,920 Speaker 3: four thousand, four hundred and twelve dollars of income annually. 97 00:05:01,440 --> 00:05:03,120 Speaker 2: And for a modest. 98 00:05:02,720 --> 00:05:05,919 Speaker 3: Lifestyle, which is just covering the basics and just covering 99 00:05:05,960 --> 00:05:09,400 Speaker 3: the necessities, not the luxuries like your oatmeal clat every day, 100 00:05:09,400 --> 00:05:11,839 Speaker 3: which I'm going to be more towards that forty four 101 00:05:11,920 --> 00:05:15,640 Speaker 3: g king. So covering the basics, you'll need twenty eight thousand, 102 00:05:15,720 --> 00:05:18,600 Speaker 3: two hundred and fifty four dollars a year. 103 00:05:19,120 --> 00:05:20,640 Speaker 2: So those are some. 104 00:05:20,480 --> 00:05:23,360 Speaker 3: Stats, but gee, do you know what that actually means? 105 00:05:23,400 --> 00:05:26,240 Speaker 3: Though not really, it just sounds like a lot of 106 00:05:26,279 --> 00:05:29,560 Speaker 3: money and a lot of planning and working it out. 107 00:05:29,640 --> 00:05:32,039 Speaker 3: But when we start talking about how much income we 108 00:05:32,120 --> 00:05:34,960 Speaker 3: need in retirement, and I talk about this literally every 109 00:05:35,040 --> 00:05:37,760 Speaker 3: day because, as you guys know, I'm a financial advisor 110 00:05:37,800 --> 00:05:40,520 Speaker 3: and I do have real clients, so I talk to 111 00:05:40,560 --> 00:05:42,600 Speaker 3: people about Okay, well, how are we retiring? 112 00:05:42,680 --> 00:05:43,400 Speaker 2: What does that mean? 113 00:05:43,680 --> 00:05:45,920 Speaker 3: What kind of lifestyle do you want? And I can 114 00:05:45,960 --> 00:05:48,120 Speaker 3: tell you a few things from that. The first thing 115 00:05:48,160 --> 00:05:50,760 Speaker 3: I can tell you is most of my clients do 116 00:05:50,960 --> 00:05:53,000 Speaker 3: not say that they are happy to live off forty 117 00:05:53,040 --> 00:05:56,919 Speaker 3: four thousand dollars a year. Most people go oh, v like, 118 00:05:57,200 --> 00:05:59,800 Speaker 3: if my mortgage was paid off, or if I didn't 119 00:05:59,800 --> 00:06:02,919 Speaker 3: have any debt orn't I was in a completely different situation. 120 00:06:03,040 --> 00:06:05,880 Speaker 3: In a perfect world, I would have maybe eighty thousand 121 00:06:05,920 --> 00:06:09,039 Speaker 3: dollars a year coming in. Because at the moment, eighty 122 00:06:09,080 --> 00:06:12,200 Speaker 3: thousand dollars is actually becoming the average of what people 123 00:06:12,360 --> 00:06:15,320 Speaker 3: earn in metropolitan areas. So I'm not saying that that's 124 00:06:15,360 --> 00:06:17,440 Speaker 3: the standard, and I never base it off that because 125 00:06:17,440 --> 00:06:19,560 Speaker 3: I know that that's actually not accurate. But it's a 126 00:06:19,560 --> 00:06:23,880 Speaker 3: good conversation starter. But it's actually going to depend on 127 00:06:23,920 --> 00:06:27,680 Speaker 3: what your current situation is and how we extrapolate that out. 128 00:06:27,960 --> 00:06:31,279 Speaker 3: So to talk about what forty four thousand dollars means, 129 00:06:31,640 --> 00:06:33,799 Speaker 3: let's go back to the example that if you've listened 130 00:06:33,839 --> 00:06:37,039 Speaker 3: to every single podcast you have heard before, because it's 131 00:06:37,080 --> 00:06:40,320 Speaker 3: really relevant here. But you know how I say, g oh, 132 00:06:40,400 --> 00:06:43,360 Speaker 3: if you invest five hundred dollars each and every single 133 00:06:43,440 --> 00:06:46,800 Speaker 3: month at the age of twenty. By the time you retire, 134 00:06:46,880 --> 00:06:50,320 Speaker 3: you'll have an investment portfolio worth one point two million dollars. 135 00:06:51,000 --> 00:06:53,560 Speaker 3: You've heard that, right, Yeah, yeah, I remember you saying that. 136 00:06:53,600 --> 00:06:55,880 Speaker 3: You said it multiple times on the pod. It's my 137 00:06:56,000 --> 00:06:58,279 Speaker 3: only example that I have memorized, so I'm going to 138 00:06:58,320 --> 00:07:02,920 Speaker 3: keep using it. But one point two million dollars invested. Now, 139 00:07:03,000 --> 00:07:06,719 Speaker 3: we're not accounting for any type of CPI or indexation 140 00:07:06,920 --> 00:07:09,920 Speaker 3: or anything like that. We're just using base numbers because 141 00:07:10,080 --> 00:07:13,640 Speaker 3: if we're only starting the conversation around investment and super, 142 00:07:13,720 --> 00:07:16,560 Speaker 3: we don't actually need to get too complex because we're 143 00:07:16,560 --> 00:07:18,960 Speaker 3: going to work it out along the journey. But a 144 00:07:19,080 --> 00:07:23,720 Speaker 3: one point two million dollar investment portfolio provides us with 145 00:07:23,800 --> 00:07:26,040 Speaker 3: income every year. So you know how we talk about 146 00:07:26,040 --> 00:07:29,560 Speaker 3: compound interest and the interest that is payable. If you 147 00:07:29,760 --> 00:07:33,520 Speaker 3: had an average return of five percent on your superannuation 148 00:07:33,640 --> 00:07:37,120 Speaker 3: in retirement, which was actually quite reasonable, because between five 149 00:07:37,160 --> 00:07:39,360 Speaker 3: percent and maybe like seven and a half percent is 150 00:07:39,400 --> 00:07:42,240 Speaker 3: what I would use as an estimation because you never 151 00:07:42,280 --> 00:07:45,000 Speaker 3: want to overestimate those things because can you imagine if 152 00:07:45,040 --> 00:07:47,120 Speaker 3: you sat down with a financial advisor like me and 153 00:07:47,160 --> 00:07:49,320 Speaker 3: I was like, oh my gosh, we could achieve these 154 00:07:49,360 --> 00:07:52,000 Speaker 3: epic returns for you, Georgia, and you're like, great, well, 155 00:07:52,040 --> 00:07:54,320 Speaker 3: I'm going to need those to retire. And then we 156 00:07:54,360 --> 00:07:57,520 Speaker 3: didn't achieve those epic returns, we'd both be in a 157 00:07:57,560 --> 00:08:00,440 Speaker 3: little bit of a pickle because one, I wouldn't have 158 00:08:00,480 --> 00:08:02,640 Speaker 3: put you in a situation where you could actually afford 159 00:08:02,720 --> 00:08:04,480 Speaker 3: your life. And too, you're probably a little bit mad 160 00:08:04,520 --> 00:08:06,480 Speaker 3: because the income that you thought you were going to 161 00:08:06,520 --> 00:08:10,320 Speaker 3: get you're not actually getting. But essentially, the interest payable 162 00:08:10,440 --> 00:08:13,280 Speaker 3: at five percent on a one point two million dollar 163 00:08:13,320 --> 00:08:18,520 Speaker 3: investment PORTFOLIOG is sixty thousand dollars, So you could reasonably 164 00:08:18,640 --> 00:08:22,240 Speaker 3: assume that a one point two million dollar investment or 165 00:08:22,280 --> 00:08:26,320 Speaker 3: a one point two million dollar superanuation fund is going 166 00:08:26,360 --> 00:08:30,000 Speaker 3: to provide you with approximately sixty thousand dollars worth of 167 00:08:30,160 --> 00:08:34,439 Speaker 3: income in today's dollars in retirement. So that's how we 168 00:08:34,520 --> 00:08:37,920 Speaker 3: work out how much money we need in super at 169 00:08:38,000 --> 00:08:42,000 Speaker 3: a particular age. And that's what frustrates me because so 170 00:08:42,200 --> 00:08:45,040 Speaker 3: many super funds they put out all of these statistics 171 00:08:45,080 --> 00:08:48,120 Speaker 3: and they say, hey, gee, like to have a comfortable lifestyle, 172 00:08:48,160 --> 00:08:50,520 Speaker 3: it's forty four grand a year for a single or 173 00:08:50,679 --> 00:08:53,839 Speaker 3: sixty two thousand dollars for a couple, and you go, great, 174 00:08:54,280 --> 00:08:57,480 Speaker 3: what does that mean. I'm in my early twenties and 175 00:08:57,720 --> 00:09:00,640 Speaker 3: I'm trying to work out what that means in the future. So, 176 00:09:00,800 --> 00:09:03,439 Speaker 3: using the example that the Association of Super Funds of 177 00:09:03,480 --> 00:09:07,720 Speaker 3: Australia used for a couple having an income of sixty 178 00:09:07,720 --> 00:09:10,319 Speaker 3: two thousand dollars a year, you're going to need an 179 00:09:10,520 --> 00:09:14,520 Speaker 3: investment portfolio or a superanuation fund with about one point 180 00:09:14,520 --> 00:09:15,880 Speaker 3: two million dollars in it. 181 00:09:15,920 --> 00:09:19,160 Speaker 2: Does that make sense? It does make sense. But just 182 00:09:19,360 --> 00:09:22,040 Speaker 2: mass I'm so about at maus. So this one point 183 00:09:22,040 --> 00:09:26,320 Speaker 2: two gives us sixty two K a year? Is about 184 00:09:26,360 --> 00:09:31,600 Speaker 2: sixty a year? Yeah? For how long soever? Is that 185 00:09:31,679 --> 00:09:32,800 Speaker 2: right though? But that's right. 186 00:09:32,880 --> 00:09:36,319 Speaker 3: So the money that is actually in your investment portfolio 187 00:09:36,520 --> 00:09:39,440 Speaker 3: is invested, and you don't actually get to retirement and 188 00:09:39,520 --> 00:09:41,800 Speaker 3: have one point two million dollars and start spending it. 189 00:09:42,160 --> 00:09:45,600 Speaker 3: You actually keep that one point two million dollars invested 190 00:09:46,040 --> 00:09:49,600 Speaker 3: and the interest that is payable each and every single 191 00:09:49,679 --> 00:09:53,720 Speaker 3: year essentially becomes your income. So by setting yourself up 192 00:09:53,760 --> 00:09:58,120 Speaker 3: properly in retirement with an investment portfolio, you don't actually 193 00:09:58,120 --> 00:10:00,559 Speaker 3: start drawing down on it, or you don't s pulling 194 00:10:00,559 --> 00:10:02,720 Speaker 3: that money out and go great, I've got one point 195 00:10:02,720 --> 00:10:04,920 Speaker 3: two million dollars to spend, and if I spend it 196 00:10:04,960 --> 00:10:08,200 Speaker 3: all the once, that's going to be awkward. It's actually 197 00:10:08,440 --> 00:10:12,080 Speaker 3: that one point two million dollars each and every single year, 198 00:10:12,120 --> 00:10:15,880 Speaker 3: because of compounding interest, is going to provide you with 199 00:10:16,040 --> 00:10:19,839 Speaker 3: sixty thousand dollars and during the course of your lifetime. 200 00:10:20,080 --> 00:10:23,800 Speaker 3: So you're investing right now in superannuation, and the money 201 00:10:23,800 --> 00:10:27,720 Speaker 3: that you are investing is compounding. So instead of taking 202 00:10:27,760 --> 00:10:31,400 Speaker 3: that income out and spending it because you're not retired yet, 203 00:10:31,600 --> 00:10:35,640 Speaker 3: you're actually reinvesting that income into your superfund so that 204 00:10:35,720 --> 00:10:38,200 Speaker 3: it grows. And you know how much I'd love the 205 00:10:38,240 --> 00:10:42,240 Speaker 3: money Smart website and their compound interest calculator, and that's 206 00:10:42,280 --> 00:10:44,400 Speaker 3: a really good place to start to work out how 207 00:10:44,480 --> 00:10:46,680 Speaker 3: much money you need to invest for the long term 208 00:10:46,720 --> 00:10:50,480 Speaker 3: to achieve the goal that you have. But that money 209 00:10:50,600 --> 00:10:53,000 Speaker 3: is actually just money that your money makes each and 210 00:10:53,040 --> 00:10:56,240 Speaker 3: every single year, and it's not going to disappear. And 211 00:10:56,280 --> 00:10:59,480 Speaker 3: that's why I'm so passionate about it, because whether you 212 00:10:59,559 --> 00:11:02,079 Speaker 3: live to eighty, whether you live to one hundred or 213 00:11:02,120 --> 00:11:05,000 Speaker 3: one hundred and twenty. That income is going to keep 214 00:11:05,080 --> 00:11:09,240 Speaker 3: coming in. And let's be morbid for a hot second. G. 215 00:11:09,960 --> 00:11:12,439 Speaker 3: When you die, that is what you leave to your 216 00:11:12,480 --> 00:11:15,520 Speaker 3: family and your children, and that's how we start into 217 00:11:15,559 --> 00:11:16,640 Speaker 3: generational wealth. 218 00:11:18,679 --> 00:11:21,440 Speaker 2: Okay, my mind is blowing a little bit. 219 00:11:21,559 --> 00:11:24,160 Speaker 3: So let's be really dramatic for a hot second and 220 00:11:24,200 --> 00:11:28,319 Speaker 3: say that G King got to eighty eight and passed away. RIPG, 221 00:11:28,600 --> 00:11:32,160 Speaker 3: I'll come to the funeral. Yeap, great enough. I hope 222 00:11:32,160 --> 00:11:35,040 Speaker 3: you live longer than that. Just step firey no no, no, 223 00:11:35,160 --> 00:11:36,199 Speaker 3: neat no, no no. 224 00:11:36,240 --> 00:11:37,960 Speaker 2: I want you to live to at least one hundred 225 00:11:38,040 --> 00:11:41,800 Speaker 2: because then let the queen. Yeah, that's true, that's a goal. 226 00:11:42,600 --> 00:11:44,559 Speaker 3: But say you get to that age and you've got 227 00:11:44,600 --> 00:11:48,560 Speaker 3: your one point two million dollar investment portfolio, and you've 228 00:11:48,559 --> 00:11:50,680 Speaker 3: passed away, and you know, you've got your will and 229 00:11:50,720 --> 00:11:53,280 Speaker 3: your estate plan in place, so it goes nicely to 230 00:11:53,400 --> 00:11:55,360 Speaker 3: your children that I'm sure you're going to have at 231 00:11:55,440 --> 00:11:58,559 Speaker 3: least ten of That can do one of two things 232 00:11:58,600 --> 00:12:01,720 Speaker 3: for children. So that inheritance, and as you know, I 233 00:12:01,760 --> 00:12:04,640 Speaker 3: deal a lot with inheritance clients. That is actually my 234 00:12:04,720 --> 00:12:08,080 Speaker 3: bread and butter. But that inheritance can do one of 235 00:12:08,120 --> 00:12:10,280 Speaker 3: two things. It can either go to the children and 236 00:12:10,320 --> 00:12:13,400 Speaker 3: they divvied up and become an asset that they spend 237 00:12:13,440 --> 00:12:16,040 Speaker 3: because among your ten kids, it's obviously going to mean 238 00:12:16,080 --> 00:12:18,600 Speaker 3: a lot less because they might get one hundred thousand 239 00:12:18,600 --> 00:12:21,600 Speaker 3: dollars each or whatever it is, and they might put 240 00:12:21,600 --> 00:12:24,880 Speaker 3: that into a home and it might dissipate, or you 241 00:12:24,920 --> 00:12:27,480 Speaker 3: could say in your will, I only want them to 242 00:12:27,520 --> 00:12:29,840 Speaker 3: take the income, and if you have one child, you 243 00:12:29,920 --> 00:12:33,080 Speaker 3: could be providing that child with a sixty thousand dollars 244 00:12:33,160 --> 00:12:36,439 Speaker 3: income ongoing because you don't need it anymore. And they 245 00:12:36,480 --> 00:12:40,959 Speaker 3: have an investment portfolio that sustains their lifestyle. And that's 246 00:12:41,000 --> 00:12:44,559 Speaker 3: what happens when we talk about trust fund babies, because 247 00:12:44,600 --> 00:12:47,760 Speaker 3: they have a big trust that has all these investments 248 00:12:47,800 --> 00:12:50,640 Speaker 3: in it, and each and every single year their trust 249 00:12:50,800 --> 00:12:53,880 Speaker 3: makes a lot of money and then that money gets 250 00:12:53,880 --> 00:12:57,840 Speaker 3: distributed to them and that's how it keeps going in perpetuity. 251 00:12:58,760 --> 00:13:01,560 Speaker 2: Interesting, and I guess you're also saying there that you 252 00:13:01,640 --> 00:13:06,040 Speaker 2: don't have to be rich from the outset to set 253 00:13:06,080 --> 00:13:08,679 Speaker 2: your family up in that way. Like what you're kind 254 00:13:08,720 --> 00:13:11,079 Speaker 2: of saying is that if we make these small changes 255 00:13:12,000 --> 00:13:16,200 Speaker 2: or contributions every week, every month, then we could eventually 256 00:13:16,280 --> 00:13:18,959 Speaker 2: be in the position in retirement where we are able 257 00:13:19,000 --> 00:13:22,880 Speaker 2: to then hand that wealth down to our family, right. Yeah. 258 00:13:22,920 --> 00:13:25,920 Speaker 3: And that's something that in all honesty, really motivates me 259 00:13:26,000 --> 00:13:28,720 Speaker 3: when it comes to wealth, Like I'm not here going, 260 00:13:28,720 --> 00:13:30,560 Speaker 3: oh well, I want to be wealthy because I want 261 00:13:30,559 --> 00:13:33,400 Speaker 3: gooccie bags and designer things. Because as you guys know, 262 00:13:33,520 --> 00:13:36,880 Speaker 3: that's not really me. But the thing that motivates me 263 00:13:37,040 --> 00:13:38,960 Speaker 3: is knowing that one day I'll be able to support 264 00:13:39,000 --> 00:13:42,000 Speaker 3: a family and that my kids will be okay, and 265 00:13:42,000 --> 00:13:45,240 Speaker 3: that if housing prices are astronomical in the future, at 266 00:13:45,320 --> 00:13:47,800 Speaker 3: least they'll be able to pay rent on something to 267 00:13:47,840 --> 00:13:50,440 Speaker 3: make sure that they're always safe and always secure. It's 268 00:13:50,480 --> 00:13:53,200 Speaker 3: not necessarily oh I want them to be super rich 269 00:13:53,240 --> 00:13:55,840 Speaker 3: and be able to buy mansions, Like I just want 270 00:13:55,840 --> 00:13:58,240 Speaker 3: to know that my family are well looked after and 271 00:13:58,320 --> 00:14:00,960 Speaker 3: cared for. And that's one of my values. And I 272 00:14:01,000 --> 00:14:04,280 Speaker 3: think that it's important to understand that. You know, it 273 00:14:04,440 --> 00:14:06,760 Speaker 3: doesn't mean it's a bad thing. You might have different 274 00:14:06,760 --> 00:14:08,960 Speaker 3: goals and different values to me, but at the end 275 00:14:09,000 --> 00:14:11,920 Speaker 3: of the day, if we know more about wealth, we 276 00:14:12,040 --> 00:14:15,319 Speaker 3: are knowing enough to actually put ourselves in the positions 277 00:14:15,320 --> 00:14:16,080 Speaker 3: that we dream of. 278 00:14:16,559 --> 00:14:22,360 Speaker 2: Brilliant. Okay, back to super Thov. Yes, to people, are 279 00:14:22,400 --> 00:14:26,640 Speaker 2: people in retirement generally just living off their super or 280 00:14:27,120 --> 00:14:30,520 Speaker 2: do they have other investments set up? Or is it 281 00:14:30,760 --> 00:14:33,520 Speaker 2: just completely dependent on the individual. 282 00:14:33,240 --> 00:14:36,080 Speaker 3: Look, It could be both, it could be none. Some 283 00:14:36,120 --> 00:14:40,440 Speaker 3: people prioritize superannuation for their entire lives and they don't 284 00:14:40,480 --> 00:14:43,440 Speaker 3: invest any money outside of it. Now, this is probably 285 00:14:43,440 --> 00:14:46,320 Speaker 3: not the episode you expected me talking about my values 286 00:14:46,360 --> 00:14:48,440 Speaker 3: so much, but I think it's really important because it 287 00:14:48,480 --> 00:14:52,160 Speaker 3: really opens the conversation up to well, what does retirement mean? 288 00:14:52,560 --> 00:14:55,760 Speaker 3: So retirement here in Australia is the age of what 289 00:14:55,960 --> 00:14:59,680 Speaker 3: was it sixty six years and six months Georgia is 290 00:14:59,720 --> 00:15:03,240 Speaker 3: the time that you officially, according to the government, can retire. 291 00:15:03,680 --> 00:15:08,320 Speaker 3: But retirement actually isn't an age, it's actually financial freedom. 292 00:15:08,760 --> 00:15:12,040 Speaker 3: And financial freedom to me is so much more important 293 00:15:12,080 --> 00:15:15,120 Speaker 3: than just talking about retirement, because when we talk about retirement, 294 00:15:15,120 --> 00:15:18,160 Speaker 3: we're talking about supranuation and when we can access our 295 00:15:18,200 --> 00:15:21,720 Speaker 3: superranuation tax free so that we don't end up getting 296 00:15:21,720 --> 00:15:25,600 Speaker 3: stung with really big tax bills. But to me, retirement 297 00:15:25,880 --> 00:15:30,240 Speaker 3: means financial freedom and for me personally, that will be 298 00:15:30,560 --> 00:15:33,600 Speaker 3: the point in time that I am able to generate 299 00:15:33,800 --> 00:15:37,720 Speaker 3: enough income from my personal investments to not have to 300 00:15:37,760 --> 00:15:40,800 Speaker 3: go to work anymore. So if your goal is to 301 00:15:41,000 --> 00:15:44,520 Speaker 3: retire and have an income of sixty thousand dollars each 302 00:15:44,560 --> 00:15:48,560 Speaker 3: and every single year, then maybe achieving that earlier is 303 00:15:48,600 --> 00:15:51,520 Speaker 3: a value to you. And I love the idea that 304 00:15:51,600 --> 00:15:54,320 Speaker 3: maybe one day I'll be lucky enough to retire before 305 00:15:54,360 --> 00:15:57,200 Speaker 3: that age of sixty six years in six months. And 306 00:15:57,240 --> 00:15:59,200 Speaker 3: I would love to think that maybe at the age 307 00:15:59,200 --> 00:16:02,680 Speaker 3: of fifty, I would be financially free enough to make 308 00:16:02,760 --> 00:16:06,200 Speaker 3: any decision I want when it comes to work, because 309 00:16:06,240 --> 00:16:08,800 Speaker 3: I think that there is this massive misconception when it 310 00:16:08,840 --> 00:16:11,080 Speaker 3: comes to retirement that you have to hang up your 311 00:16:11,080 --> 00:16:13,400 Speaker 3: boots and that you're done, and that your career is 312 00:16:13,480 --> 00:16:16,680 Speaker 3: done and you start gardening and cycling and going to 313 00:16:16,760 --> 00:16:20,000 Speaker 3: lawn bowls and you know, maybe playing bridge with the girls. 314 00:16:20,040 --> 00:16:21,240 Speaker 2: But it's not what. 315 00:16:21,280 --> 00:16:23,240 Speaker 3: It means to me, and it's not what it means 316 00:16:23,240 --> 00:16:26,240 Speaker 3: to most of our community. Retirement is the age that 317 00:16:26,360 --> 00:16:28,720 Speaker 3: I can cut back my hours and not be financially 318 00:16:28,760 --> 00:16:31,760 Speaker 3: crippled by that I can maybe do something that is 319 00:16:31,760 --> 00:16:34,320 Speaker 3: a value to me, Like I could volunteer all of 320 00:16:34,360 --> 00:16:37,280 Speaker 3: my time but still have an income coming in or 321 00:16:37,360 --> 00:16:40,320 Speaker 3: even just focus on the hobbies that I adore while 322 00:16:40,400 --> 00:16:43,520 Speaker 3: technically being paid to do that. So that is actually 323 00:16:43,560 --> 00:16:46,160 Speaker 3: accessible to a lot of people if you're planning on 324 00:16:46,240 --> 00:16:49,400 Speaker 3: prioritizing it. And we did a whole episode Georgia on 325 00:16:49,520 --> 00:16:54,400 Speaker 3: that fire movement, so financial independence retire early about creating that, 326 00:16:54,440 --> 00:16:56,480 Speaker 3: So I won't round on about that too much, but 327 00:16:56,640 --> 00:16:58,200 Speaker 3: if you want to go listen to that, that was 328 00:16:58,240 --> 00:17:00,640 Speaker 3: a good episode. But at the end of the day, 329 00:17:01,120 --> 00:17:04,680 Speaker 3: people do generally live off their super but they also 330 00:17:04,920 --> 00:17:07,480 Speaker 3: live off different investments that they might have set up 331 00:17:07,520 --> 00:17:10,280 Speaker 3: along the way. So hopefully when I retire, I'm not 332 00:17:10,440 --> 00:17:13,760 Speaker 3: retiring and then relying on my superranuation. I have other 333 00:17:13,800 --> 00:17:17,800 Speaker 3: investments outside of that. Because if the retirement age today 334 00:17:17,840 --> 00:17:21,720 Speaker 3: Georgia is sixty six, how old is the retirement age 335 00:17:21,720 --> 00:17:24,639 Speaker 3: going to be in forty years when I retire? Like, 336 00:17:24,760 --> 00:17:27,800 Speaker 3: how am I going to be seventy? Do I actually 337 00:17:27,840 --> 00:17:30,800 Speaker 3: want to wait until seventy to have an income to 338 00:17:31,000 --> 00:17:34,480 Speaker 3: stop working for me? The answer is no, I actually 339 00:17:34,480 --> 00:17:37,760 Speaker 3: want to create that financial freedom before then. So that's 340 00:17:37,800 --> 00:17:41,920 Speaker 3: why I invest in save outside of superanuation while still 341 00:17:41,960 --> 00:17:45,159 Speaker 3: prioritizing making sure that I'm making use of essentially the 342 00:17:45,200 --> 00:17:47,600 Speaker 3: closest thing we have to a tax haven in Australia, 343 00:17:47,760 --> 00:17:51,200 Speaker 3: which is super because tax rates inside superannuation are only 344 00:17:51,280 --> 00:17:54,880 Speaker 3: fifteen percent in comparison to the marginal tax rates, which 345 00:17:54,920 --> 00:17:57,280 Speaker 3: could be anything up to thirty nine cents in every 346 00:17:57,320 --> 00:18:00,919 Speaker 3: single dollar. So there are lots of different options. And 347 00:18:00,960 --> 00:18:04,000 Speaker 3: you've probably heard of downsizing as well, and that's worth 348 00:18:04,080 --> 00:18:07,240 Speaker 3: touching on. And that is essentially where someone has a big, 349 00:18:07,320 --> 00:18:10,240 Speaker 3: fancy family home and they go and sell that fancy 350 00:18:10,280 --> 00:18:12,840 Speaker 3: family home and let's say it was worth a million dollars, 351 00:18:12,920 --> 00:18:16,879 Speaker 3: because in Australia that's actually becoming quite a normal number 352 00:18:16,920 --> 00:18:19,840 Speaker 3: for properties to sell for, which is baffling. But let's 353 00:18:19,840 --> 00:18:22,080 Speaker 3: say it's worth a million dollars and they go, great, 354 00:18:22,240 --> 00:18:24,359 Speaker 3: I've had these big family home, the kids have left, 355 00:18:24,440 --> 00:18:26,600 Speaker 3: we don't actually need this, we don't want to maintain 356 00:18:26,640 --> 00:18:28,440 Speaker 3: the gardens. We're going to go buy a four hundred 357 00:18:28,440 --> 00:18:31,239 Speaker 3: and fifty thousand dollars apartment. We're going to live in that, 358 00:18:31,400 --> 00:18:34,200 Speaker 3: and we're going to invest the difference into our super 359 00:18:34,400 --> 00:18:37,240 Speaker 3: or into another type of investment, and then they live 360 00:18:37,280 --> 00:18:40,320 Speaker 3: off that. So that's essentially what downsizing is. It's not 361 00:18:41,040 --> 00:18:43,680 Speaker 3: just going oh, I'm going to get a smaller property. 362 00:18:44,200 --> 00:18:47,159 Speaker 3: You are getting a smaller property to unlock some cash 363 00:18:47,440 --> 00:18:49,600 Speaker 3: so that you can invest that cash for a more 364 00:18:49,640 --> 00:18:50,760 Speaker 3: comfortable retirement. 365 00:18:52,320 --> 00:18:55,480 Speaker 2: Very interesting, I want to say, I mean, you have 366 00:18:55,560 --> 00:18:56,240 Speaker 2: a house. 367 00:18:56,040 --> 00:18:59,399 Speaker 3: Now, but oh my gosh, yes, but like if I downsized, 368 00:18:59,800 --> 00:19:03,360 Speaker 3: just oh the bank a lot, yeah, a lot of debt. Yeah, 369 00:19:03,680 --> 00:19:07,320 Speaker 3: not in the position to retire, sadly, at least you've 370 00:19:07,320 --> 00:19:09,879 Speaker 3: got one dough Thank you, thank you. I'm very proud 371 00:19:09,920 --> 00:19:12,320 Speaker 3: of that. That is literally one of the coolest things 372 00:19:12,359 --> 00:19:14,720 Speaker 3: that I have done. And I know that that's something 373 00:19:14,760 --> 00:19:16,520 Speaker 3: that a lot of people are going to be like, oh, 374 00:19:16,560 --> 00:19:19,080 Speaker 3: that's so entitled. You bought a house, Rara up. But like, 375 00:19:19,280 --> 00:19:21,840 Speaker 3: I'm just really grateful that my partner and I spent 376 00:19:21,960 --> 00:19:23,760 Speaker 3: so many years saving for a home and then got 377 00:19:23,760 --> 00:19:25,840 Speaker 3: to achieve that goal. And I think that a lot 378 00:19:25,840 --> 00:19:28,320 Speaker 3: of people don't see the flip side of how hard 379 00:19:28,320 --> 00:19:30,520 Speaker 3: it was to save for a home and actually getting 380 00:19:30,520 --> 00:19:33,199 Speaker 3: into the property market. Like for people still saving, I 381 00:19:33,200 --> 00:19:35,840 Speaker 3: promise you, the tough slog is worth. 382 00:19:35,640 --> 00:19:39,280 Speaker 2: It for sure. And we're actually next week on the show, 383 00:19:39,320 --> 00:19:42,600 Speaker 2: we're talking about renting forever, which is probably going to 384 00:19:42,600 --> 00:19:45,720 Speaker 2: be my fate. So if you're with me over there, 385 00:19:45,920 --> 00:19:48,200 Speaker 2: look forward to that. That is not true. 386 00:19:48,240 --> 00:19:50,120 Speaker 3: But in saying that, a lot of people I don't 387 00:19:50,119 --> 00:19:52,320 Speaker 3: want to buy a house and renting forever is actually 388 00:19:52,359 --> 00:19:55,240 Speaker 3: a really viable option. And I'm actually really excited to 389 00:19:55,240 --> 00:19:58,280 Speaker 3: talk about that. But let's get back to this episode, Georgia. 390 00:19:58,480 --> 00:19:59,840 Speaker 3: We keep going off track. 391 00:20:00,080 --> 00:20:02,919 Speaker 2: We do. There's a lot of tangents. Well, I'm interested, 392 00:20:02,960 --> 00:20:06,440 Speaker 2: I'll be relisting, don't you worry. So when it comes 393 00:20:06,440 --> 00:20:09,639 Speaker 2: time to grab our super when we're at retirement, do 394 00:20:09,680 --> 00:20:12,199 Speaker 2: they do we get like a fat check with our 395 00:20:12,280 --> 00:20:15,320 Speaker 2: one point two mill on it? Or do they out 396 00:20:15,560 --> 00:20:17,160 Speaker 2: like little tokens? How does it work? 397 00:20:17,359 --> 00:20:19,359 Speaker 3: Oh, they dish it out in tokens and food voucher. 398 00:20:19,440 --> 00:20:22,000 Speaker 3: Just no, no, they don't do that at all. So 399 00:20:22,119 --> 00:20:25,440 Speaker 3: what they do is it depends on your superanuation provider, 400 00:20:25,520 --> 00:20:28,440 Speaker 3: and you'll either be able to access your superannuation as 401 00:20:28,440 --> 00:20:31,320 Speaker 3: an income stream. So remember how I was saying before, 402 00:20:31,640 --> 00:20:35,840 Speaker 3: the interest that your money makes becomes your income. That's 403 00:20:35,960 --> 00:20:39,040 Speaker 3: essentially what happens. But if you don't have enough interest 404 00:20:39,119 --> 00:20:43,159 Speaker 3: being made from your superannuation, you will actually have to 405 00:20:43,200 --> 00:20:45,760 Speaker 3: take some of the cash out as well to top 406 00:20:45,840 --> 00:20:49,280 Speaker 3: that up, and there are some rules around how much 407 00:20:49,320 --> 00:20:51,480 Speaker 3: cash you have to take each and every single year, 408 00:20:51,520 --> 00:20:53,399 Speaker 3: so you will have to look into that. But it 409 00:20:53,440 --> 00:20:55,120 Speaker 3: would be silly of me to be like, oh, it's 410 00:20:55,160 --> 00:20:57,560 Speaker 3: like five percent at this point, because who knows when 411 00:20:57,600 --> 00:21:00,560 Speaker 3: we're going to retire. It's actually not important, but that's 412 00:21:00,560 --> 00:21:03,840 Speaker 3: how it works. But I would also caution against taking 413 00:21:03,960 --> 00:21:06,280 Speaker 3: lump sums out and just taking all your money, because 414 00:21:06,320 --> 00:21:08,360 Speaker 3: as tempting as it might be, I think the important 415 00:21:08,359 --> 00:21:11,399 Speaker 3: thing there is that cash needs to actually provide for 416 00:21:11,440 --> 00:21:13,800 Speaker 3: your retirement, and most of us don't know how to 417 00:21:13,880 --> 00:21:18,200 Speaker 3: manage that amount of cash to provide an ongoing income 418 00:21:18,280 --> 00:21:23,040 Speaker 3: stream for retirement. So I'd err against wanting to do that. 419 00:21:23,119 --> 00:21:25,520 Speaker 3: But again, each to your own You are the boss 420 00:21:25,560 --> 00:21:26,400 Speaker 3: of your own life. 421 00:21:26,800 --> 00:21:29,200 Speaker 2: I guess if you took it out in cash, if 422 00:21:29,240 --> 00:21:31,560 Speaker 2: that was a thing, then also you would lose all 423 00:21:31,600 --> 00:21:34,280 Speaker 2: of that future income right like you just have. 424 00:21:34,880 --> 00:21:38,040 Speaker 3: Yeah, it's essentially like taking an investment out and making 425 00:21:38,080 --> 00:21:40,720 Speaker 3: it cash, like it's not going to keep making you money. 426 00:21:40,800 --> 00:21:43,960 Speaker 3: And the most important thing when we get to retirement 427 00:21:44,320 --> 00:21:48,119 Speaker 3: is having a secure income stream, because that's something that 428 00:21:48,280 --> 00:21:50,240 Speaker 3: not that many people actually have access to. 429 00:21:50,600 --> 00:21:53,000 Speaker 2: All right, I think we will leave it there for 430 00:21:53,040 --> 00:21:56,000 Speaker 2: a minute, V, but after the break we'll be chatting 431 00:21:56,080 --> 00:22:00,600 Speaker 2: all things pension and also see I know, and also 432 00:22:00,680 --> 00:22:03,680 Speaker 2: how you can put yourself in the best financial spot 433 00:22:03,800 --> 00:22:06,160 Speaker 2: now so when it comes time to retire, you set 434 00:22:06,200 --> 00:22:13,600 Speaker 2: to go. Don't go anywhere, guys, okay, B. So we've 435 00:22:13,760 --> 00:22:19,480 Speaker 2: discussed super, We've discussed other investment options. We've discussed downsizing 436 00:22:19,560 --> 00:22:23,520 Speaker 2: and property and what that looks like. So let's hut pension. 437 00:22:24,400 --> 00:22:27,600 Speaker 2: Is there a pension in Australia currently? Yes, there is, 438 00:22:27,720 --> 00:22:28,320 Speaker 2: my friend. 439 00:22:28,400 --> 00:22:31,600 Speaker 3: The age pension is essentially the system that is in 440 00:22:31,640 --> 00:22:35,159 Speaker 3: place to provide retired or older Australians with an income 441 00:22:35,240 --> 00:22:37,760 Speaker 3: if they do not have enough money in their superannuation. 442 00:22:38,400 --> 00:22:41,679 Speaker 3: We are so lucky we live in a country that 443 00:22:41,760 --> 00:22:44,600 Speaker 3: if you don't have enough super, they will help you 444 00:22:44,720 --> 00:22:46,879 Speaker 3: and they will support you. And that is not the 445 00:22:46,960 --> 00:22:49,840 Speaker 3: case for so many countries. And they know that. You know, 446 00:22:49,960 --> 00:22:51,720 Speaker 3: I'm one of those people that's always like, you know, 447 00:22:51,880 --> 00:22:54,280 Speaker 3: practice gratitude and all of that other stuff, But like, 448 00:22:54,600 --> 00:22:56,520 Speaker 3: how cool is it that we live in a country 449 00:22:56,560 --> 00:22:58,720 Speaker 3: that they're like, oh, gee, you didn't invest enough or 450 00:22:58,760 --> 00:23:00,879 Speaker 3: save enough. That's all good. We got an income for 451 00:23:00,960 --> 00:23:03,960 Speaker 3: you in saying that there is criteria that you need 452 00:23:04,000 --> 00:23:06,080 Speaker 3: to meet to be eligible for it. You can't be 453 00:23:06,160 --> 00:23:08,520 Speaker 3: earning millions of dollars and still get free money from 454 00:23:08,520 --> 00:23:11,080 Speaker 3: the government. You do have to actually be in need 455 00:23:11,160 --> 00:23:11,359 Speaker 3: of it. 456 00:23:12,000 --> 00:23:13,120 Speaker 2: So to be eligible for. 457 00:23:13,080 --> 00:23:15,280 Speaker 3: The pension here in Australia, you need to be of 458 00:23:15,400 --> 00:23:19,840 Speaker 3: age pension age sexy, which is sixty six years and 459 00:23:20,040 --> 00:23:23,280 Speaker 3: six months old. You need to be under the income 460 00:23:23,320 --> 00:23:26,200 Speaker 3: and assets test, otherwise you're going to end up with 461 00:23:26,240 --> 00:23:28,679 Speaker 3: a reduced pension or perhaps no pension if you have 462 00:23:28,760 --> 00:23:31,840 Speaker 3: too much money, and you need to be an Australian 463 00:23:31,920 --> 00:23:35,320 Speaker 3: resident for at least ten years. So if you tick 464 00:23:35,359 --> 00:23:37,919 Speaker 3: all of those boxes, then you are very likely to 465 00:23:37,920 --> 00:23:40,840 Speaker 3: be eligible for the age pension. Something that I want 466 00:23:40,880 --> 00:23:42,520 Speaker 3: to point out here that Gee, you and I were 467 00:23:42,560 --> 00:23:46,760 Speaker 3: talking about before recording this episode is that your family 468 00:23:46,880 --> 00:23:51,120 Speaker 3: home or what the government calls your primary residence, does 469 00:23:51,240 --> 00:23:55,680 Speaker 3: not get taken into consideration when actually working out what 470 00:23:55,800 --> 00:23:59,120 Speaker 3: assets you have, So your primary residence isn't taken into 471 00:23:59,160 --> 00:24:01,959 Speaker 3: consideration and it comes to working up whether you can 472 00:24:02,000 --> 00:24:04,520 Speaker 3: get a pension or not, which I think is really 473 00:24:04,760 --> 00:24:07,199 Speaker 3: cool because it puts you in a position where you 474 00:24:07,200 --> 00:24:09,720 Speaker 3: can own your family home outright. You know, you can 475 00:24:10,000 --> 00:24:12,240 Speaker 3: save up and have a mortgage and pay it all 476 00:24:12,280 --> 00:24:14,240 Speaker 3: off and then be in a position where you still 477 00:24:14,280 --> 00:24:16,480 Speaker 3: are able to have a roof over your head, but 478 00:24:16,600 --> 00:24:19,680 Speaker 3: still get the pension, which I think is really important. 479 00:24:19,880 --> 00:24:22,960 Speaker 3: But to go back to income for a second, the 480 00:24:23,040 --> 00:24:26,840 Speaker 3: income levels are actually quite low, which I mean, you 481 00:24:26,880 --> 00:24:29,120 Speaker 3: won't be that surprised with, but I think that they're 482 00:24:29,160 --> 00:24:32,480 Speaker 3: super low. But essentially, if you make over one hundred 483 00:24:32,520 --> 00:24:36,920 Speaker 3: and eighty dollars per fortnite, your pension will reduce by 484 00:24:37,000 --> 00:24:40,560 Speaker 3: fifty cents for every dollar over one hundred and eighty dollars, 485 00:24:40,560 --> 00:24:42,359 Speaker 3: which I feel like is a lot, but at the 486 00:24:42,400 --> 00:24:44,679 Speaker 3: same time I get it because we really should be 487 00:24:45,080 --> 00:24:47,760 Speaker 3: holding back the pension for those who actually need it. 488 00:24:47,840 --> 00:24:49,800 Speaker 3: But to give you a little bit of an indicator 489 00:24:49,880 --> 00:24:51,640 Speaker 3: of how much that is, this is for. 490 00:24:51,640 --> 00:24:52,480 Speaker 2: Twenty twenty one. 491 00:24:52,600 --> 00:24:55,119 Speaker 3: It changes all the time, So don't take this as gospel. 492 00:24:55,160 --> 00:24:58,600 Speaker 3: If you're listening to this podcast five years in the future, Lowell, 493 00:24:58,640 --> 00:25:00,800 Speaker 3: imagine if people were still listening to our podcast in 494 00:25:00,840 --> 00:25:01,760 Speaker 3: five past time. Georgia. 495 00:25:01,840 --> 00:25:04,840 Speaker 2: I hope it's I hope it's nice. In twenty thirty six, 496 00:25:05,000 --> 00:25:06,399 Speaker 2: hopefully the pandemic's done. 497 00:25:06,520 --> 00:25:08,919 Speaker 3: Oh my gosh. If it is fun, send us a 498 00:25:08,960 --> 00:25:11,600 Speaker 3: message in five years. If you're listening to this, thank you, 499 00:25:11,880 --> 00:25:16,199 Speaker 3: but essentially normal rate pension, you will receive a maximum 500 00:25:16,200 --> 00:25:19,520 Speaker 3: base rate as a single per fortnite eight hundred and 501 00:25:19,560 --> 00:25:22,800 Speaker 3: sixty eight dollars and thirty cents, and then as a 502 00:25:22,840 --> 00:25:26,840 Speaker 3: couple combined you will receive thirteen hundred and nine dollars 503 00:25:26,920 --> 00:25:30,480 Speaker 3: per fortnite, which sounds like a pretty comfy living, but 504 00:25:30,600 --> 00:25:33,320 Speaker 3: at the same time, thirteen hundred dollars a fortnite is 505 00:25:33,359 --> 00:25:36,160 Speaker 3: about six hundred and fifty dollars a week, and that 506 00:25:36,200 --> 00:25:39,440 Speaker 3: has to cover every single one of your expenses if 507 00:25:39,480 --> 00:25:42,280 Speaker 3: you don't have any other form of income, which can 508 00:25:42,440 --> 00:25:44,439 Speaker 3: lead you in a little bit of a sticky spot. 509 00:25:44,680 --> 00:25:47,080 Speaker 3: So basically, Georgia, the pension sets you up with the 510 00:25:47,080 --> 00:25:50,600 Speaker 3: modest lifestyle we mentioned earlier in this episode, so it's 511 00:25:50,600 --> 00:25:53,120 Speaker 3: definitely enough to live off to cover the basics. 512 00:25:53,960 --> 00:25:56,440 Speaker 2: But I guess in retirement, as we were saying earlier, 513 00:25:56,480 --> 00:25:58,359 Speaker 2: like people might want to travel, they might want to 514 00:25:58,680 --> 00:26:01,760 Speaker 2: play bridge with the girl, and memberships expensive to the 515 00:26:01,760 --> 00:26:05,199 Speaker 2: bridge club, like, it might not be enough for the 516 00:26:05,240 --> 00:26:07,400 Speaker 2: life that you want to live to live, but it's 517 00:26:07,400 --> 00:26:09,480 Speaker 2: still something exactly. 518 00:26:09,040 --> 00:26:11,240 Speaker 3: And if we be honest, that amount of money being 519 00:26:11,240 --> 00:26:14,720 Speaker 3: paid into your account each fortnite, it might sound like, okay, cool, 520 00:26:14,760 --> 00:26:17,520 Speaker 3: I could cover the basics, but it's definitely not putting 521 00:26:17,520 --> 00:26:19,840 Speaker 3: you in a position to live maybe a luxury lifestyle 522 00:26:19,880 --> 00:26:21,600 Speaker 3: if that's what you want to do. And if you 523 00:26:21,680 --> 00:26:23,240 Speaker 3: go back to what I was saying at the start 524 00:26:23,240 --> 00:26:26,200 Speaker 3: of this episode, if you're planning on doing international travel 525 00:26:26,280 --> 00:26:30,160 Speaker 3: or traveling around Australia, or you know, even doing different hobbies, 526 00:26:30,200 --> 00:26:33,280 Speaker 3: that might not allow for it. And that's okay, because 527 00:26:33,280 --> 00:26:35,600 Speaker 3: at the end of the day, having the basics is 528 00:26:35,760 --> 00:26:38,159 Speaker 3: literally the bare minimum, and I think that that is 529 00:26:38,200 --> 00:26:42,080 Speaker 3: so fantastic. But if that's not what you're planning, then 530 00:26:42,320 --> 00:26:44,800 Speaker 3: we can start planning now and put ourselves in a 531 00:26:44,800 --> 00:26:46,880 Speaker 3: position where we live the life that we want to live. 532 00:26:47,400 --> 00:26:50,639 Speaker 2: Well, that leads very nicely to my next question, Vickid, 533 00:26:51,600 --> 00:26:54,639 Speaker 2: just now, what can we be doing now if we 534 00:26:55,400 --> 00:26:57,440 Speaker 2: don't want to live on the pension and we do 535 00:26:57,560 --> 00:27:01,119 Speaker 2: see ourselves traveling and doing all of those lucks things 536 00:27:01,280 --> 00:27:05,280 Speaker 2: in g plans. I reckon you'll be a world traveler. 537 00:27:04,880 --> 00:27:09,119 Speaker 3: When you're old you'll be Nana. Yeah, you'll be Nana. 538 00:27:09,240 --> 00:27:13,440 Speaker 2: Backpack on. No, you won't help store your fancy. 539 00:27:13,040 --> 00:27:15,919 Speaker 3: Luggage that somebody else carries, and you'll tell us your 540 00:27:16,000 --> 00:27:17,720 Speaker 3: kids about your summer in France. 541 00:27:17,800 --> 00:27:21,560 Speaker 2: I bet you I'm onto g king. That's me fancy else. 542 00:27:22,800 --> 00:27:24,560 Speaker 2: So far from what Georgia would want to do. 543 00:27:24,680 --> 00:27:26,800 Speaker 3: She'd have a backpack in a bag of goon and 544 00:27:26,840 --> 00:27:28,720 Speaker 3: she'd be off soon. 545 00:27:29,200 --> 00:27:29,840 Speaker 2: Not wrong, doll. 546 00:27:29,880 --> 00:27:32,520 Speaker 3: You know me well, so tell us how we can 547 00:27:32,520 --> 00:27:35,040 Speaker 3: make that happen. So there are a lot of things 548 00:27:35,080 --> 00:27:35,720 Speaker 3: that you can do. 549 00:27:35,880 --> 00:27:36,040 Speaker 2: Gi. 550 00:27:36,320 --> 00:27:38,440 Speaker 3: One of the first ones I want you to consider 551 00:27:38,600 --> 00:27:41,199 Speaker 3: is consolidating your super funds so that you are not 552 00:27:41,359 --> 00:27:44,800 Speaker 3: paying multiple fees on multiple accounts. I've told you before 553 00:27:44,920 --> 00:27:47,560 Speaker 3: to make sure that you are taking into consideration your 554 00:27:47,600 --> 00:27:50,880 Speaker 3: insurances before you do that, though, because we don't want 555 00:27:50,880 --> 00:27:53,560 Speaker 3: to cancel insurances. That might be putting us in a 556 00:27:53,680 --> 00:27:56,520 Speaker 3: very good position that we wouldn't be able to get back. 557 00:27:56,880 --> 00:28:00,639 Speaker 3: So consolidate your super. Get fewer fees because those fees 558 00:28:00,680 --> 00:28:05,120 Speaker 3: do really eat into your superannuation. Consider making additional contributions 559 00:28:05,160 --> 00:28:07,600 Speaker 3: to super so work out how much money you need 560 00:28:07,640 --> 00:28:10,359 Speaker 3: to have in super bier particular age and like this 561 00:28:10,520 --> 00:28:14,040 Speaker 3: is fickle, right, So the average super amounts of how 562 00:28:14,080 --> 00:28:16,600 Speaker 3: much money you should have in super are not how 563 00:28:16,680 --> 00:28:19,159 Speaker 3: much money you have in super for your lifestyle that 564 00:28:19,200 --> 00:28:21,879 Speaker 3: you're choosing. You need to actually work backwards from that. 565 00:28:22,000 --> 00:28:23,879 Speaker 3: So remember how we use the example if you if 566 00:28:23,920 --> 00:28:26,320 Speaker 3: you want an income of sixty thousand dollars, you need 567 00:28:26,359 --> 00:28:29,840 Speaker 3: a one point two million dollar investment portfolio. You're going 568 00:28:29,920 --> 00:28:32,240 Speaker 3: to work that out and then work out how to 569 00:28:32,280 --> 00:28:35,960 Speaker 3: stay on track for that. The money Smart Compound Interest 570 00:28:36,000 --> 00:28:39,120 Speaker 3: Calculator is going to help you here find it just 571 00:28:39,160 --> 00:28:42,320 Speaker 3: by googling it. It is honestly such a fab resource. 572 00:28:42,360 --> 00:28:44,000 Speaker 3: We will again put the link to that in the 573 00:28:44,040 --> 00:28:46,560 Speaker 3: show notes so that you can find it. But essentially 574 00:28:46,720 --> 00:28:49,080 Speaker 3: for someone between the ages and this pieces me off 575 00:28:49,160 --> 00:28:52,160 Speaker 3: Georgia because gender pay gap. But there is a difference 576 00:28:52,160 --> 00:28:54,920 Speaker 3: between men and women and how much money on average 577 00:28:55,160 --> 00:28:58,520 Speaker 3: men and women having their super accounts for their age. 578 00:28:58,840 --> 00:29:01,840 Speaker 3: But between the ages of twenty and twenty four, the 579 00:29:01,920 --> 00:29:05,440 Speaker 3: average male balance is nine thousand, four hundred and the 580 00:29:05,480 --> 00:29:09,520 Speaker 3: average female balance is about eight thousand dollars between twenty 581 00:29:09,560 --> 00:29:12,400 Speaker 3: five and twenty nine. And the thing that pisses me 582 00:29:12,480 --> 00:29:15,240 Speaker 3: off is as you get older, this gap gets bigger, Georgia, 583 00:29:15,360 --> 00:29:19,160 Speaker 3: watch this. For a man between twenty five and twenty nine, 584 00:29:19,440 --> 00:29:22,240 Speaker 3: the average balance is twenty eight thousand, three hundred, and 585 00:29:22,320 --> 00:29:25,800 Speaker 3: for a woman twenty three thousand, seven hundred. Then for 586 00:29:25,880 --> 00:29:28,560 Speaker 3: a man between the ages of thirty and thirty four, 587 00:29:28,600 --> 00:29:32,040 Speaker 3: the average balance is fifty eight thousand dollars, and for 588 00:29:32,080 --> 00:29:37,040 Speaker 3: a woman it is forty five thousand dollars. Then between 589 00:29:37,080 --> 00:29:39,920 Speaker 3: thirty five and thirty nine, for a man it's ninety 590 00:29:40,000 --> 00:29:43,280 Speaker 3: two thousand, four hundred, but for a woman it is 591 00:29:43,320 --> 00:29:47,640 Speaker 3: seventy two thousand. Jeez. And then and I won't keep 592 00:29:47,680 --> 00:29:50,320 Speaker 3: reading them all, but for someone between the ages of 593 00:29:50,400 --> 00:29:53,160 Speaker 3: forty to forty four, for a male, they'll have one 594 00:29:53,240 --> 00:29:55,760 Speaker 3: hundred and thirty four thousand dollars, so they are now 595 00:29:55,800 --> 00:29:59,800 Speaker 3: in happy six figures. For a woman they have ninety 596 00:30:00,080 --> 00:30:03,320 Speaker 3: eight thousand dollars. Did you see how that gap at 597 00:30:03,320 --> 00:30:05,680 Speaker 3: the very start, when you're twenty to twenty four is 598 00:30:05,720 --> 00:30:08,960 Speaker 3: only about one thousand dollars, But then it's literally more 599 00:30:09,000 --> 00:30:11,360 Speaker 3: than thirty thousand dollars by the time you're in your 600 00:30:11,360 --> 00:30:12,120 Speaker 3: early forties. 601 00:30:12,640 --> 00:30:15,800 Speaker 2: And this is this is because women take time out 602 00:30:15,840 --> 00:30:19,960 Speaker 2: of work to have look at time jobs all of that. 603 00:30:20,160 --> 00:30:21,400 Speaker 2: There's a lot of reasons. 604 00:30:21,480 --> 00:30:24,600 Speaker 3: But at the same time as talking about women taking 605 00:30:24,680 --> 00:30:27,120 Speaker 3: time out of jobs, and you know, we all do 606 00:30:27,240 --> 00:30:28,920 Speaker 3: that and that's why I think we really need to 607 00:30:28,960 --> 00:30:31,280 Speaker 3: take our super seriously. And if you're planning on taking 608 00:30:31,280 --> 00:30:34,000 Speaker 3: time off, talk to your partner, if you're planning on 609 00:30:34,120 --> 00:30:38,360 Speaker 3: having a baby about potentially them contributing to your superfund 610 00:30:38,800 --> 00:30:41,920 Speaker 3: or plan to contribute extra so that you make up 611 00:30:41,960 --> 00:30:44,280 Speaker 3: for the time that you might lose. Like, these things 612 00:30:44,280 --> 00:30:47,480 Speaker 3: are important to consider. But the gender pay gap in 613 00:30:47,520 --> 00:30:50,560 Speaker 3: Australia is still fourteen point nine percent Georgia. Like that 614 00:30:50,800 --> 00:30:53,040 Speaker 3: is for a man and a woman doing exactly the 615 00:30:53,080 --> 00:30:55,479 Speaker 3: same job. So it's not just super, it's not you know, 616 00:30:55,760 --> 00:30:58,960 Speaker 3: taking into consideration the time that's being taken off. We 617 00:30:59,320 --> 00:31:03,920 Speaker 3: as women literally get paid less for the same job. 618 00:31:04,160 --> 00:31:06,520 Speaker 2: And that means then that we get less super because 619 00:31:06,560 --> 00:31:09,680 Speaker 2: it's based on percentages, right exactly. 620 00:31:09,760 --> 00:31:11,800 Speaker 3: And do you know this is me going on a 621 00:31:11,840 --> 00:31:14,920 Speaker 3: completely different ranch. But when it comes to retirement, do 622 00:31:15,000 --> 00:31:20,080 Speaker 3: you know that the biggest age demographic of people who 623 00:31:20,120 --> 00:31:25,000 Speaker 3: are becoming homeless is women at retirement age. Yeah, and Georgia, 624 00:31:25,080 --> 00:31:28,240 Speaker 3: that's disgusting, Like we need to do more and do better, 625 00:31:28,520 --> 00:31:31,040 Speaker 3: not just for ourselves, but for the women that's around 626 00:31:31,120 --> 00:31:33,479 Speaker 3: us and Georgia the pay gap. Obviously, we're on our 627 00:31:33,560 --> 00:31:36,480 Speaker 3: high horses about women because we have really good statistics 628 00:31:36,480 --> 00:31:38,640 Speaker 3: around this, but for our friends who are non binary 629 00:31:38,760 --> 00:31:41,960 Speaker 3: or in other minority groups, they are even worse off. 630 00:31:41,960 --> 00:31:44,239 Speaker 3: We just don't have the statistics for it. And I 631 00:31:44,320 --> 00:31:46,880 Speaker 3: just think that that is so wildly unfair, and we 632 00:31:46,960 --> 00:31:50,160 Speaker 3: need to be having these conversations more often and more 633 00:31:50,200 --> 00:31:53,880 Speaker 3: openly and talk about these things because I don't want 634 00:31:53,920 --> 00:31:57,600 Speaker 3: people in our community getting to retirement and literally be 635 00:31:57,760 --> 00:32:01,480 Speaker 3: on the verge of homelessness. To me, that is so unfair. 636 00:32:01,560 --> 00:32:04,760 Speaker 3: And my job is to literally educate you guys so 637 00:32:04,800 --> 00:32:07,840 Speaker 3: that that doesn't happen, so that we can protect each other, 638 00:32:07,920 --> 00:32:10,360 Speaker 3: so that we can look after ourselves. And you know, 639 00:32:10,440 --> 00:32:13,480 Speaker 3: it's not just a women's issue. It is a whole 640 00:32:13,560 --> 00:32:15,760 Speaker 3: community issue. 641 00:32:16,080 --> 00:32:19,880 Speaker 2: And I guess so it's almost as if like a 642 00:32:19,960 --> 00:32:24,000 Speaker 2: single woman, for example, would be much more independent and 643 00:32:24,160 --> 00:32:27,120 Speaker 2: in control of their finances because they have to be right, 644 00:32:27,160 --> 00:32:30,800 Speaker 2: whereas women in these long term relationships, maybe they've had 645 00:32:31,120 --> 00:32:33,440 Speaker 2: fifteen years out of the workforce, don't have any super 646 00:32:33,480 --> 00:32:36,120 Speaker 2: they've just always relied on on the male in the 647 00:32:36,200 --> 00:32:39,800 Speaker 2: relationship or whoever the person at work is that then 648 00:32:40,720 --> 00:32:45,240 Speaker 2: if that relationship crumbles, then they're ruined. Right, Yeah, how literally? 649 00:32:45,760 --> 00:32:48,560 Speaker 2: So if you are in that partnership, how can you 650 00:32:48,640 --> 00:32:51,160 Speaker 2: safeguard your finances? Do you talk to them? As you 651 00:32:51,160 --> 00:32:54,760 Speaker 2: said before, about making contributions to your super That sounds hard, 652 00:32:56,520 --> 00:32:57,880 Speaker 2: but is it just something we have to do? 653 00:32:58,480 --> 00:33:00,640 Speaker 3: So, Gee, we absolutely have to do that. And we 654 00:33:00,680 --> 00:33:03,400 Speaker 3: know that on average, women retire with half the amount 655 00:33:03,440 --> 00:33:06,880 Speaker 3: of Superman men, which is disgusting, and forty percent of 656 00:33:07,000 --> 00:33:11,400 Speaker 3: older single retired women live in poverty and economic insecurity 657 00:33:11,440 --> 00:33:14,000 Speaker 3: when they reach retirement. I just read that off the 658 00:33:14,040 --> 00:33:16,320 Speaker 3: list of things that we've written down for this episode, 659 00:33:16,400 --> 00:33:19,440 Speaker 3: and honestly makes me sick every single time I read 660 00:33:19,480 --> 00:33:22,320 Speaker 3: this because it is just so wildly unfair, and a 661 00:33:22,320 --> 00:33:24,880 Speaker 3: lot of it, Gee, is about what you're talking about. 662 00:33:24,960 --> 00:33:28,360 Speaker 3: They've lived in happy marriages until or maybe unhappy marriages. 663 00:33:28,400 --> 00:33:31,120 Speaker 3: That was wild speculation on my behalf. But they've been 664 00:33:31,160 --> 00:33:33,640 Speaker 3: married or reliant on somebody else for so much of 665 00:33:33,680 --> 00:33:35,960 Speaker 3: their lives and then they get to this age and 666 00:33:36,000 --> 00:33:39,680 Speaker 3: that relationship potentially disintegrates and they're left with nothing So 667 00:33:39,800 --> 00:33:43,240 Speaker 3: that's why as young people, we really need to be 668 00:33:43,360 --> 00:33:47,280 Speaker 3: considering and trying to put ourselves in the best possible position, 669 00:33:47,600 --> 00:33:50,440 Speaker 3: whether we trust our partners or not. Like you need 670 00:33:50,480 --> 00:33:52,760 Speaker 3: to make your super a priority, you need to make 671 00:33:52,760 --> 00:33:56,360 Speaker 3: your income a priority. You need to understand budget and 672 00:33:56,360 --> 00:34:00,480 Speaker 3: cash flow, not because it's just cool too, because it's 673 00:34:00,480 --> 00:34:03,320 Speaker 3: actually essential. Like I think that a lot of people 674 00:34:03,400 --> 00:34:05,600 Speaker 3: might go, oh, yeah, like money is trendy at the moment, 675 00:34:05,640 --> 00:34:09,120 Speaker 3: it's so cool, Like no, it's not. It's always cool 676 00:34:09,160 --> 00:34:12,279 Speaker 3: to be financially secure. It is always trendy to put 677 00:34:12,320 --> 00:34:16,080 Speaker 3: yourself in the best possible position, because poverty is not sexy, 678 00:34:16,360 --> 00:34:20,239 Speaker 3: and economic insecurity is not something I would wish on anybody, 679 00:34:20,520 --> 00:34:23,120 Speaker 3: but a lot of our community goes through it, and 680 00:34:23,160 --> 00:34:26,239 Speaker 3: we need to understand that and break the stigmas surrounding 681 00:34:26,280 --> 00:34:29,560 Speaker 3: that down because more often than not, it's not the 682 00:34:29,640 --> 00:34:33,160 Speaker 3: person experiencing that's fault. It is the fault of the 683 00:34:33,200 --> 00:34:36,759 Speaker 3: community and our lack of education and the system that 684 00:34:36,800 --> 00:34:39,200 Speaker 3: we have grown up with, and it is not something 685 00:34:39,280 --> 00:34:43,480 Speaker 3: that anybody ever puts themselves in the position of intentionally. 686 00:34:43,600 --> 00:34:45,080 Speaker 3: And I think that we need to just be a 687 00:34:45,120 --> 00:34:47,880 Speaker 3: little bit more supportive a little bit softer and actually 688 00:34:47,880 --> 00:34:51,480 Speaker 3: try and help work out ways to fix this issue. 689 00:34:51,560 --> 00:34:53,959 Speaker 3: And you know, I'm a bit randy on this episode because, 690 00:34:54,000 --> 00:34:56,480 Speaker 3: as you know, money is something I'm really passionate about. 691 00:34:56,760 --> 00:34:58,000 Speaker 2: But it's not because I'm here. 692 00:34:57,840 --> 00:34:59,600 Speaker 3: Going, oh I want to get rich. I love money, 693 00:34:59,640 --> 00:35:02,320 Speaker 3: let's do whish she's on the Money podcast. It's because 694 00:35:02,360 --> 00:35:05,440 Speaker 3: we literally retire with less money than men. It's because 695 00:35:05,480 --> 00:35:08,480 Speaker 3: we literally are in the situation where if we don't 696 00:35:08,520 --> 00:35:10,400 Speaker 3: care about this, we are going to live in poverty. 697 00:35:10,600 --> 00:35:13,480 Speaker 3: Because if we don't care about this, economic insecurity is 698 00:35:13,520 --> 00:35:16,800 Speaker 3: going to be our reality. And that's just the truth 699 00:35:16,840 --> 00:35:17,040 Speaker 3: of it. 700 00:35:17,560 --> 00:35:20,600 Speaker 2: Yeah, exactly, And we need to have these conversations and 701 00:35:20,680 --> 00:35:23,120 Speaker 2: raise awareness because how else do we know about them? 702 00:35:23,160 --> 00:35:26,840 Speaker 3: Absolutely, but back to the reasons you mentioned before, g As, 703 00:35:26,960 --> 00:35:30,520 Speaker 3: the system is absolutely set up for males to thrive 704 00:35:31,000 --> 00:35:33,600 Speaker 3: to look after ourselves coming into retirement years. Not that 705 00:35:33,800 --> 00:35:36,359 Speaker 3: many of us are even close to it, but we 706 00:35:36,440 --> 00:35:38,440 Speaker 3: need to make sure that we have a level of 707 00:35:38,480 --> 00:35:43,160 Speaker 3: financial independence, regardless of how codependent our relationships are. So 708 00:35:43,280 --> 00:35:46,560 Speaker 3: whether that means you have your own savings account or 709 00:35:46,600 --> 00:35:50,200 Speaker 3: as I always recommend, having your own emergency fund, like 710 00:35:50,480 --> 00:35:52,920 Speaker 3: I actually am going to be really blunt here, I 711 00:35:52,960 --> 00:35:56,160 Speaker 3: don't care how much you love your partner, your husband, 712 00:35:56,440 --> 00:35:59,120 Speaker 3: the person you live with, whatever we're going to call them. 713 00:35:59,360 --> 00:36:03,359 Speaker 3: I actually I don't care. Still have your own emergency fund, 714 00:36:03,600 --> 00:36:05,759 Speaker 3: because that is going to give you the power to 715 00:36:06,120 --> 00:36:10,160 Speaker 3: one not experience poverty, but two put you in a 716 00:36:10,200 --> 00:36:14,480 Speaker 3: position where you can escape a situation at location, a job, 717 00:36:14,560 --> 00:36:17,640 Speaker 3: a person that you no longer want to be associated with. 718 00:36:17,960 --> 00:36:20,520 Speaker 3: And if we don't have that, we don't have that power. 719 00:36:21,000 --> 00:36:24,480 Speaker 3: And the amount of people in our community g who say, 720 00:36:24,680 --> 00:36:27,200 Speaker 3: oh my gosh, Victoria didn't listen to you for the 721 00:36:27,200 --> 00:36:29,279 Speaker 3: first year of your podcast. But I now have an 722 00:36:29,280 --> 00:36:32,919 Speaker 3: emergency fund, and I sleep so much better at night. 723 00:36:32,960 --> 00:36:35,880 Speaker 3: I feel so much more empowered. I feel like I 724 00:36:36,000 --> 00:36:40,239 Speaker 3: am finally financially secure. I'm not experiencing the stress that 725 00:36:40,320 --> 00:36:43,960 Speaker 3: I used to experience around money. It makes me so proud. 726 00:36:44,040 --> 00:36:47,840 Speaker 3: But more of us need emergency funds. And g to 727 00:36:47,880 --> 00:36:49,920 Speaker 3: get a little bit legal on you if you're not 728 00:36:49,960 --> 00:36:52,440 Speaker 3: married yet and you are planning on getting married or 729 00:36:52,520 --> 00:36:56,600 Speaker 3: even moving in with a partner, finding financial agreements. We 730 00:36:56,640 --> 00:36:59,840 Speaker 3: did an entire podcast on this. Go back and listen 731 00:36:59,840 --> 00:37:02,760 Speaker 3: to that episode about making sure that you are putting 732 00:37:03,360 --> 00:37:06,719 Speaker 3: each other in the best possible financial position should something 733 00:37:06,760 --> 00:37:10,719 Speaker 3: else happen, and it's to me again, here's some unsolicited 734 00:37:10,760 --> 00:37:14,120 Speaker 3: relationship advice, Georgia. If your partner has a problem with that, 735 00:37:14,239 --> 00:37:17,880 Speaker 3: I have a problem with them. But is it not 736 00:37:17,920 --> 00:37:20,960 Speaker 3: a massive rate of flag if somebody says, oh, gee, sorry, 737 00:37:21,400 --> 00:37:23,240 Speaker 3: I know we're moving in together, but I just feel 738 00:37:23,280 --> 00:37:26,200 Speaker 3: so uncomfortable having a binding financial agreement that puts us 739 00:37:26,239 --> 00:37:27,640 Speaker 3: both in the best possible position. 740 00:37:27,680 --> 00:37:31,000 Speaker 2: Should we separate? Yeah, it makes so much sense to 741 00:37:31,040 --> 00:37:33,560 Speaker 2: have one. But also, let me be that friend. 742 00:37:33,880 --> 00:37:36,520 Speaker 3: If you are in a situation where it's so awkward 743 00:37:36,520 --> 00:37:39,320 Speaker 3: to bring it up and you're not sure, blame me literally, 744 00:37:39,400 --> 00:37:41,880 Speaker 3: say that you've had a conversation with me. Or so 745 00:37:42,080 --> 00:37:44,600 Speaker 3: you listen to this dumb podcast and they keep ranting 746 00:37:44,600 --> 00:37:49,239 Speaker 3: on about binding financial agreements and oh, hey, Harper, that's 747 00:37:49,280 --> 00:37:50,080 Speaker 3: Georgia's partner. 748 00:37:50,120 --> 00:37:51,759 Speaker 2: For anybody following along, I. 749 00:37:51,760 --> 00:37:54,360 Speaker 3: Listened to the silly podcast and they said, we should 750 00:37:54,400 --> 00:37:57,440 Speaker 3: have a binding financial agreement. What do you think, Like, 751 00:37:57,680 --> 00:38:01,120 Speaker 3: blame me. You don't have to bring it up and say, hey, Harper, 752 00:38:01,239 --> 00:38:03,080 Speaker 3: I think this is a really good idea. If you're 753 00:38:03,080 --> 00:38:06,480 Speaker 3: not ready to like literally use me as a segue. 754 00:38:06,920 --> 00:38:09,000 Speaker 3: I'll be the bad guy. I would love to be 755 00:38:09,080 --> 00:38:10,880 Speaker 3: the bad guy if it means you're in a better 756 00:38:10,960 --> 00:38:14,920 Speaker 3: financial position because of it. Yeah, and it benefits both partners, 757 00:38:15,320 --> 00:38:17,319 Speaker 3: I would agree. But do you know what I think 758 00:38:17,360 --> 00:38:20,319 Speaker 3: you and I can both agree on, Georgia, is that 759 00:38:20,560 --> 00:38:23,759 Speaker 3: this podcast is pretty long and we probably should. 760 00:38:23,440 --> 00:38:25,919 Speaker 2: Wrap it up. Do you reckon we leave it there? 761 00:38:26,160 --> 00:38:28,840 Speaker 2: I reckon we leave it there. We'll probably open a 762 00:38:28,880 --> 00:38:31,080 Speaker 2: thread in the Facebook group at some point this week 763 00:38:31,120 --> 00:38:33,160 Speaker 2: as well, guys, so if you do have more questions, 764 00:38:33,280 --> 00:38:37,080 Speaker 2: open it up and we'll continue the conversation. But hopefully 765 00:38:37,080 --> 00:38:40,640 Speaker 2: you have learned something today. I know I certainly have. 766 00:38:41,239 --> 00:38:43,239 Speaker 2: But h I think that is all we have time for. 767 00:38:43,600 --> 00:38:46,439 Speaker 3: And as always g just before we head off, we'd 768 00:38:46,480 --> 00:38:49,600 Speaker 3: like to acknowledge and pay respect to Australia's Aboriginal and 769 00:38:49,680 --> 00:38:53,800 Speaker 3: torrest Right Islander people's. They're the traditional custodians that the lands, 770 00:38:53,800 --> 00:38:55,080 Speaker 3: the waterways. 771 00:38:54,560 --> 00:38:56,759 Speaker 2: And the skies all across Australia. 772 00:38:57,120 --> 00:38:59,080 Speaker 3: We thank you for sharing and for caring for the 773 00:38:59,160 --> 00:39:01,759 Speaker 3: land on which we are able to learn. We pay 774 00:39:01,760 --> 00:39:04,399 Speaker 3: our respects to elders past and present, and we share 775 00:39:04,400 --> 00:39:06,920 Speaker 3: our friendship and our kindness and. 776 00:39:06,920 --> 00:39:09,440 Speaker 2: The advice shared on She's on the Money is general 777 00:39:09,440 --> 00:39:13,120 Speaker 2: in nature and does not consider your individual circumstances. She's 778 00:39:13,160 --> 00:39:16,480 Speaker 2: on the Money exists purely for educational purposes and should 779 00:39:16,560 --> 00:39:18,799 Speaker 2: not be relied upon to make an investment or a 780 00:39:18,840 --> 00:39:22,520 Speaker 2: financial decision. And we promise. Victoria to Vine is an 781 00:39:22,560 --> 00:39:27,320 Speaker 2: authorized representative of Australia Pacific Funds Management Proprietary Limited ABN 782 00:39:27,440 --> 00:39:30,000 Speaker 2: three four one three two four six three two five 783 00:39:30,120 --> 00:39:33,600 Speaker 2: seven APHOSL three three nine one five one. Gee. 784 00:39:33,719 --> 00:39:35,960 Speaker 3: Remember that time that we said that the end of 785 00:39:36,000 --> 00:39:37,560 Speaker 3: twenty twenty was a garbage fire? 786 00:39:37,600 --> 00:39:39,040 Speaker 2: Can you imagine what we're going to say? The end 787 00:39:39,040 --> 00:39:41,600 Speaker 2: of twenty twenty one is mate. We thought it was 788 00:39:41,600 --> 00:39:44,320 Speaker 2: all behind us. Now here we are. It is as 789 00:39:44,560 --> 00:39:48,480 Speaker 2: in zoom on zoom. But we're still smiling, aren't we? 790 00:39:48,480 --> 00:39:48,799 Speaker 1: We are? 791 00:39:48,920 --> 00:39:52,360 Speaker 2: We love this. See you know all doing well? Guys? 792 00:39:52,520 --> 00:40:01,800 Speaker 2: We love you. Bye, We love you, bye bye