Speaker 1: Hello, my name is Santasha Nabananga Bamblet. I'm a proud
Speaker 1: Order Order Kerni Whoalbury 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 through.
Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
Speaker 1: the storytelling of you to make a difference for today
Speaker 1: and lasting impact for tomorrow.
Speaker 2: Let's get into it.
Speaker 3: She's on the Money, She's on the Money.
Speaker 4: Hello, and welcome to She's on the Money. The podcast
Speaker 4: a millennials who want financial freedom. Now, my friends, you
Speaker 4: guys know, I am very wildly passionate about supranuation. So
Speaker 4: I thought that today I would invite someone who shares
Speaker 4: my passion for supranuation on the show. Today we have
Speaker 4: and Fooks joining us, who is the EGM for Advice,
Speaker 4: Guidance and Education at the Australian Retirement Trust. And welcome
Speaker 4: to She's on the Money.
Speaker 5: Oh goodness, gracious, that is a mouthful. And folks, for
Speaker 5: those listeners who want to learn a bit of German.
Speaker 5: Fooks means fox, So Victoria, I want you to call
Speaker 5: me foxy lady anytime.
Speaker 4: Or off air. The only other German word I know
Speaker 4: is squirrel, oh, which is like a hechim. Today we
Speaker 4: are going to be chatting about, arguably one of my
Speaker 4: favorite topics. Supranuation is one of the biggest investments you
Speaker 4: will have in your life, and so many of us
Speaker 4: just don't pay attention to it. How many of us
Speaker 4: are actually able to say, oh, I save or invest
Speaker 4: twelve percent of my income. You can't because you don't,
Speaker 4: but you do inside superannuation. And I get really worked
Speaker 4: up about this because it is your money and your
Speaker 4: choice and you should care about it. And I guess
Speaker 4: that's why you're here today.
Speaker 5: Can you imagine, like, you know, the average forty year
Speaker 5: old's got ninety thousand in their super back. Now, if
Speaker 5: that was ninety thousand dollars sitting in their bank account
Speaker 5: or like a share account, they'd be bragging about it,
Speaker 5: checking it all the time, they'd be bragging. And yet
Speaker 5: here we are twenty five percent of Australians haven't even
Speaker 5: checked how much money's in there in the last twelve months.
Speaker 4: And that's just not in my mind. And the amount
Speaker 4: of people that are in the same situation that I
Speaker 4: used to be in, which I share openly because I
Speaker 4: think it's really your reformed. Yeah, I'm reformed. Before I
Speaker 4: was a financial advisor now retired financial advisor, I had
Speaker 4: like six super accounts and I just kept collecting them
Speaker 4: like they were pokemon or something. And every new job,
Speaker 4: I was like, Oh, superforms, don't worry, just put me in.
Speaker 4: What about I don't care balanced yet whatever you say,
Speaker 4: that's all good.
Speaker 5: But then here we are shopping around for deals online
Speaker 5: to buy this and that, you know, a good deal
Speaker 5: for our favorite mascara, And yet we're just collecting all
Speaker 5: these super accounts and paying all these fees mindlessly.
Speaker 4: And at the same time that I was not caring
Speaker 4: about my superannuation, I was like on the phone to
Speaker 4: my phone provider being like, oh, can you give me
Speaker 4: like a five dollar a month discount?
Speaker 1: Right?
Speaker 4: Oh, it's really important. Then superanuation, which was literally my future,
Speaker 4: I wasn't caring about.
Speaker 5: Yeah, the concept of compounding interests, and I think that's
Speaker 5: the thing, right, it's a monster of an investment. It's
Speaker 5: a huge opportunity and putting like you were all these
Speaker 5: like little gremlins that you can pile together have one big,
Speaker 5: happy gremlin that's going to fund holidays and restaurants.
Speaker 4: And I like the idea of that though.
Speaker 5: A happy gremlin, a happy little gremlin that you can
Speaker 5: feed and top up and who can look after you
Speaker 5: and love you when you're hopefully not loved and decrepit
Speaker 5: and you're old and fabulous.
Speaker 4: I love it. I've got a question for you, but
Speaker 4: before we get there, I'm just gonna let you guys
Speaker 4: know that after the break, we're going to be talking
Speaker 4: about the six simple steps that you're able to take
Speaker 4: to get on top of your super I feel like
Speaker 4: this episode is all about taking action. Like we're not
Speaker 4: just here to talk about what superranuation is, because I've
Speaker 4: done episodes on that. We'll put a few in the
Speaker 4: show notes to make sure that you've got all the
Speaker 4: education at your fingertips that you deserve. But we're just
Speaker 4: talking about how you can get on top of it today,
Speaker 4: what that looks like before that, and what do we
Speaker 4: know about how Australians feel about superannuation overall?
Speaker 2: Victoria, we have a monster problem.
Speaker 5: With seventy percent of Australians believe they're not confident they're
Speaker 5: gonna have enough money to retire. And you think about
Speaker 5: I don't know about your grandpa, but people they finished work.
Speaker 4: They might list the five years and they't have thought
Speaker 4: about superannuation.
Speaker 2: You didn't have to rely on the pension that long.
Speaker 2: You just died.
Speaker 4: In addition to that, superanuation wasn't something that was enforced
Speaker 4: properly until nineteen ninety.
Speaker 2: Ninety ninety two.
Speaker 4: And because of that, it means if I talk to
Speaker 4: my parents about supranuation, whilst it is incredibly important to them,
Speaker 4: it's not been a part of their entire working career
Speaker 4: in the same way it has been for us.
Speaker 5: This is profoundly impactful. Like most Australians died poor. Unless
Speaker 5: you came for money, you didn't have any money, where
Speaker 5: superannuation actually is this huge wealth vehicle that's kind of
Speaker 5: democratized having comfort and money in retirement.
Speaker 2: It's three decades.
Speaker 5: The average person if you're retiring with let's call it
Speaker 5: half a million dollars, which is the comfortable amount, and
Speaker 5: a lot of us are that's extraordinary and why wouldn't
Speaker 5: we engage with that a quarter haven't even logged in,
Speaker 5: which is just crazy. And thirty percent of women, which
Speaker 5: is ten percent less than men, are just feeling completely
Speaker 5: sad and of despondent about their financials.
Speaker 4: And I feel like that is really upsetting for someone
Speaker 4: like me who knows the power of wealth creation and
Speaker 4: how it's actually not about the big bucks. The idea
Speaker 4: of a million dollars seems astronomical. If we just sit
Speaker 4: here and go, how would we get a million dollars?
Speaker 4: We go, well, that's actually really unreasonable, Victoria. However, I
Speaker 4: know that if we were able to get people when
Speaker 4: they were younger, the younger you are, the more time
Speaker 4: you have for compounding, because we know, based on the
Speaker 4: rule of two, that money on average is going to
Speaker 4: double every seven to ten years. So the ten dollars
Speaker 4: that you have today could be worth twenty dollars. And
Speaker 4: while that is not that exciting, because what can you
Speaker 4: buy in this economy with twenty dollars. I can't pay
Speaker 4: for my groceries with that. I could probably take you
Speaker 4: out for a coffee, but we are not getting cake.
Speaker 4: Don't order a cake because we can't afford that. But
Speaker 4: when it comes to suberinuation, all the small things over
Speaker 4: our career really build up.
Speaker 5: And you know, this is where I think we have
Speaker 5: to recognize that the reality of super is it is
Speaker 5: linked to what you get paid, right, Yes, And so
Speaker 5: we know that women are retiring with half in some
Speaker 5: instances half the balance of men. There is this risk
Speaker 5: of women really like homelessness at the end of working
Speaker 5: life really scary right now. The reality is, if you
Speaker 5: don't advocate for yourself around your take home pay, guess
Speaker 5: what when you retire that combite you on the bum.
Speaker 5: Because men are much better at advocating for themselves around
Speaker 5: what they're worth in terms of their pay, just in general,
Speaker 5: just in general. And they don't actually go look at
Speaker 5: the position description. They go, I can do five percent
Speaker 5: of that. Yeah, I'll put in for the promotion. That's
Speaker 5: why they're re direct with.
Speaker 4: More mute feel like they've got a really good sense
Speaker 4: of what we call in our team de lulu because
Speaker 4: they think they can do it even if they don't
Speaker 4: have the credentials to have the confidence.
Speaker 2: Now, sisters like, let's owe to have the confidence.
Speaker 4: You're just going to borrow the confidence of a media
Speaker 4: white man. And then we're just going to.
Speaker 5: Do that exactly, because the thing is when we don't
Speaker 5: do that, that means we retire less. Because super annuation
Speaker 5: is linked to your take home pay. I mean, there
Speaker 5: are bigger things around job professions that are not recognized.
Speaker 5: The fitter and turner has the same level of tape
Speaker 5: qualification as a as an early educator. There's a societal
Speaker 5: structural thing around remuneration that we're not going to solve
Speaker 5: in this podcast, unfortunately, unfortunately. But just remember that is
Speaker 5: that every time you kind of settle for a bit
Speaker 5: less in terms of what you're getting paid or an
Speaker 5: opportunity at work, it actually does matter. I'm going to
Speaker 5: finish work at the end of your life and you
Speaker 5: probably going to live another twenty thirty years.
Speaker 4: To add to that, we are in the middle of
Speaker 4: a cost of living crisis. Money is overwhelming. I know
Speaker 4: that budgeting to pay for groceries, to pay for energy
Speaker 4: heating is insane. At the moment, I feel like we're
Speaker 4: all really stressed about cash. Superinuation is something that you
Speaker 4: can address here and now. It's not going to cost
Speaker 4: you a dollar to address it. You're not going to
Speaker 4: have to shell out anything to get that sorted, and
Speaker 4: getting that sorted is going to play into your mental
Speaker 4: and financial well being. You're going to feel so much
Speaker 4: more financially secure going You know what, I know that
Speaker 4: my budget is really strict right now. I know that
Speaker 4: we're living paycheck to paycheck. I know everything's really challenging,
Speaker 4: but I also know I'm doing the best.
Speaker 2: Thing for future.
Speaker 4: Yeah, and I think that once we give ourselves a
Speaker 4: little bit of a light at the end of the tunnel,
Speaker 4: you go, it's really tough right now, but I've addressed
Speaker 4: the super side of things, so retirement's not going to
Speaker 4: look like today. And I think that that is really empowering,
Speaker 4: especially when so many of us are trying to get
Speaker 4: on top of our financial health and we're like, I
Speaker 4: don't want to ask my work for a pay rise
Speaker 4: because maybe we got one recently and it wasn't enough.
Speaker 4: We've asked and they have said no, or we just
Speaker 4: don't have the confidence. This is not something thating you can do.
Speaker 4: It's really no confrontation. It's totally to your point around action.
Speaker 4: I was whenever I hear the word action, I can
Speaker 4: hear the war cry from Grade six action action. And
Speaker 4: so it is actually something you can do that has
Speaker 4: no barriers attached to it, and we are going to
Speaker 4: cover the steps you need to do that on your
Speaker 4: head because I'm not excited about it.
Speaker 5: But I do think there is something around the time
Speaker 5: of year that it is at the moment, there's some
Speaker 5: really profound, big picture things happening in the world of
Speaker 5: personal finances that I think your listeners should use as
Speaker 5: a chance to reset. If you think about the Stage
Speaker 5: three tax cuts coming out, superannuation guarantee, your supers going
Speaker 5: up to eleven and a half percent, there are some
Speaker 5: energy rebates that I know state governments and federal governments
Speaker 5: are paying. So I think it's a really good time
Speaker 5: to go, all right, what are all these big picture
Speaker 5: things around Stage three tax cuts, the superannuation going up?
Speaker 5: Because I will say to your subscribers that if you're
Speaker 5: getting paid as a package rather than your base salary
Speaker 5: plus super, you might be in a position where your
Speaker 5: take home pay is going backwards.
Speaker 4: Yeah, we've talked about this on the podcast. I am
Speaker 4: wildly passionate about making sure that people know that might
Speaker 4: be a thing, and maybe having a little bit of
Speaker 4: a chat today here and now with your employer and going.
Speaker 5: Through Well, we just do base salary plus super rather
Speaker 5: than a package.
Speaker 2: You're short changing yourself.
Speaker 4: And I think it's such a small change that it
Speaker 4: makes sense for your employer to accept it as well,
Speaker 4: because it's very reasonable. It's not hey, can I have
Speaker 4: a massive pay rise? It's hey, this is going to
Speaker 4: be implemented legally, you have to pay it. Can we
Speaker 4: just do it in a way that benefits me long
Speaker 4: term so that I'm not put behind because right now
Speaker 4: you're putting me behind during a cost of living crisis.
Speaker 5: Yeah, I think that's right. I think taking action looking
Speaker 5: at what the stage three text cuts can mean for you.
Speaker 5: We do talk about cost of living crisis, but thinking
Speaker 5: about well, the subscription services that we're all kind of.
Speaker 5: You know, some times you don't even you lose track
Speaker 5: of what you've been where's the unnecessary spending in all
Speaker 5: of this? Looking at stage three text cards overlaying SG
Speaker 5: and then try to work out a plan around how
Speaker 5: you're going to maximize today and also be fabulous and comfortable.
Speaker 4: Tomorrow exactly now in this team, I don't know how
Speaker 4: much you know about she's on the money, but I
Speaker 4: like to refer to myself as stats girl. I want
Speaker 4: to know, are there some clear stats on how women
Speaker 4: in particular are putting themselves behind? Because I think sometimes
Speaker 4: when we talk about super we go more of us
Speaker 4: are retiring and facing homelessness, more of us are putting
Speaker 4: ourselves behind. Are there some stats that go, no, actually, X,
Speaker 4: Y and Z we have to make.
Speaker 5: We know the stat around the gender pay gap, it's
Speaker 5: just stuck in that thirteen to nineteen percent gap. We
Speaker 5: know that only twenty eight percent of us feel financially
Speaker 5: confident compared to I think it's the high thirties.
Speaker 2: With the route shocking. This is the whole point.
Speaker 1: I know.
Speaker 4: Well, I still find it shocking because I'm in the
Speaker 4: very privileged position of going this information exists, and it's free.
Speaker 4: This information is being put out there. How do I
Speaker 4: basically force it down people's throats so they go.
Speaker 2: Well, putting the hand up and saying I need some help.
Speaker 4: And I feel like that's why She's on the money exists.
Speaker 4: Way back in a past life when I was a
Speaker 4: financial advisor and she's on the money didn't exist. I
Speaker 4: used to do these lunch and learns called She's on
Speaker 4: the money because I used to do lunch and learns
Speaker 4: to big corporates where I'd sit down with people and go,
Speaker 4: all right, this is what super is.
Speaker 1: You know.
Speaker 4: HR would get me involved, have a chat to them
Speaker 4: about their super. This is for employee engagement. And the
Speaker 4: thing that I noticed in those sessions was women would
Speaker 4: not ask questions. They would not put their.
Speaker 2: Hands in it's scared of looking silly.
Speaker 4: Exactly how are we supposed to know if we have
Speaker 4: never been taught?
Speaker 2: And this is why it's so amazing what you're doing.
Speaker 4: Seriously, I know Korean exists. I've never been there. I
Speaker 4: don't know how to speak Korean. I don't think it's
Speaker 4: embarrassing if I put my hand up and be like,
Speaker 4: h I know that you know Korean, but I don't.
Speaker 4: I don't think that's embarrassing. But why do we then
Speaker 4: think it's embarrassing when we start to talk about finance.
Speaker 5: Yeah, and again I've like, we're just talking before about
Speaker 5: kids and whatever. And I've got eighteen, fourteen and sixteen boy,
Speaker 5: girl girl. The girls don't talk enough about the money
Speaker 5: and the super Where I listen to the boys when
Speaker 5: they sit around eighteen having their hard solos, like tough guys,
Speaker 5: talking about their bitcoin investments and their shares, and I'm like,
Speaker 5: why you don't.
Speaker 4: Even know what you're talking about. But there is.
Speaker 5: Something culturally in that, which is why the people who
Speaker 5: are listening to this are one step ahead, and they
Speaker 5: you as listeners, need to be then evangelical and tell
Speaker 5: people in your world seventy percent of you are doing nothing,
Speaker 5: and doing nothing will be a self fulfilling prophecy of
Speaker 5: poverty and retirement.
Speaker 4: To me, doing nothing is a choice. So you've got
Speaker 4: a choice to make action or you've got a choice
Speaker 4: to make no action. And by making no action, that
Speaker 4: is a choice in itself, and I don't think that
Speaker 4: that's one you want to be making.
Speaker 5: You know, when members call us, when the ones that
Speaker 5: finally go, they'll have a life event, whether it's a divorce,
Speaker 5: something will happen, and then they go, oh.
Speaker 2: My god, I have to call the super fun Now.
Speaker 5: It's either embarrassment, shame, fear, and actually when they get
Speaker 5: told things aren't as bad or there's ways to sort
Speaker 5: the relief, and you think, why were you walking around
Speaker 5: with this?
Speaker 2: Because we're scared?
Speaker 4: I know, because it's overwhelming, because it doesn't feel nice
Speaker 4: and honestly like we're trying really hard to make superannuations
Speaker 4: seem really sexy. But if you're not in the industry,
Speaker 4: not that sexy. It's not a priority.
Speaker 2: Think of the things that are, but what you're invested with.
Speaker 5: You know, you invest in trains and data centers and
Speaker 5: shares and gas pipes and airports.
Speaker 4: Not helping honestly, like, that's not making it sexier. You
Speaker 4: know what makes it sexier telling me that I'm going
Speaker 4: to have financial freedom in the future. I'm going to
Speaker 4: have a level of financial freedom that I afforded for myself.
Speaker 5: And this is where you'll bang on Victoria, because even
Speaker 5: if you feel really trapped financially today, there is something
Speaker 5: that you can do to make sure you don't feel
Speaker 5: that way tomorrow.
Speaker 2: And it's just like clicking up the phone.
Speaker 5: And talking to you super fun and being one of
Speaker 5: the thirty percent growing to forty percent and so on,
Speaker 5: so there's not this big gap at retirement.
Speaker 4: And I've said it before on the podcast, I am
Speaker 4: the biggest advocate of getting people to call their super
Speaker 4: funds because it actually doesn't cost you anything now, and
Speaker 4: the people at your super fund are so engaged, they
Speaker 4: are so educated, they have been trained to answer every
Speaker 4: single question. And if you need basic advice that exists
Speaker 4: there for you too, you can call them and you
Speaker 4: know what they expect you to not know, Yeah, because
Speaker 4: most people don't. So you can call and me like, hey,
Speaker 4: I have a member number. I can share with you
Speaker 4: my name, but that's about it. Can you actually talk
Speaker 4: me through what I even hold? How much do I have?
Speaker 4: What does this look like? Where am I going? Can
Speaker 4: you help? And they will be like, oh my gosh,
Speaker 4: I'm so glad you called.
Speaker 2: Sit down.
Speaker 4: If you got ten minutes, they will give you all
Speaker 4: the time in the world to put you in the
Speaker 4: best possible position, because that's what they do every day.
Speaker 5: I have to say there is a thing of working
Speaker 5: in superannuation where there's a sense of service and purpose.
Speaker 5: There is a higher order social kind of good. The
Speaker 5: people that work at like Australian Retirement trust you're not
Speaker 5: doing it to become rich and famous, that you come
Speaker 5: because you believe in care.
Speaker 2: Even though it's finances.
Speaker 5: There is a sense of social purpose and care to
Speaker 5: what we all do. So I couldn't endorse enough what
Speaker 5: you just said in terms.
Speaker 4: Of them, and even if it's not a conclusive conversation
Speaker 4: and you're like, oh, really, I feel quite overwhelmed with
Speaker 4: this conversation. Can you let me go away and do
Speaker 4: some research? Great, call them back later. You don't have
Speaker 4: to make big hitting decisions in your first phone call.
Speaker 5: There's some really good calculators online that you can have
Speaker 5: a play around with to work out, well, what age
Speaker 5: am I and what balance should I have? As I said,
Speaker 5: you know, the average forty year old should probably have
Speaker 5: about one hundred and fifty thousand. Most only have about
Speaker 5: ninety thousand, So there's a gap there. But the point is,
Speaker 5: don't put your head in the sand over the gap.
Speaker 5: These small steps like you just spoke about with the
Speaker 5: lots of reblins, everyone consolidating them, bringing them together knowing
Speaker 5: what you're invested in, or they're.
Speaker 4: Going to save you money, but it's also going to
Speaker 4: save you stress and anxiety because you know that there's
Speaker 4: a light at the end of the tunnel. We actually's
Speaker 4: on the money are obsessed with the idea of money stories.
Speaker 4: In fact, my recent book that came out last month
Speaker 4: is called money Stories. Because we all grow up with
Speaker 4: different beliefs, values, thoughts.
Speaker 5: Beliefs around how married to a German, they're much more
Speaker 5: discipline as opposed to my Irish kind of cultural ways.
Speaker 2: Well you have a good time.
Speaker 5: Yeah, So all these things factor into the decision making
Speaker 5: and reluctance to do something one hundred percent.
Speaker 4: Let's go to a really quick break. I promised you
Speaker 4: guys at the start of this episode that we would
Speaker 4: give you six actionable steps to get on top of
Speaker 4: your superannuation. So if you stick around, we'll get through
Speaker 4: those right after this. All right, guys, we are back
Speaker 4: and I want to have a chat with you. What
Speaker 4: are the impacts on your super if you have a
Speaker 4: child as a woman.
Speaker 5: Well, the good news is that my friend to leave
Speaker 5: is now superannuation is going to be paid on that sexy.
Speaker 5: I have to say we did advocate hard to the
Speaker 5: government over that, so we were thrilled.
Speaker 2: Thank you for that, really, I appreciate you were thrilled
Speaker 2: to see that.
Speaker 5: So that's going to put the next generation of sisters
Speaker 5: in a better place. But there might be men listening
Speaker 5: to this. My husband was a stay at home dad
Speaker 5: and I worked.
Speaker 4: And my husband is currently the stay at home Yeah.
Speaker 5: So it's whoever is I guess the care But most
Speaker 5: of the realities, most of it lands on us, and
Speaker 5: so there'll be a period of time where you're actually
Speaker 5: not getting paid, which means then you need to play
Speaker 5: catch up with Super. Because of the compounding interest, that
Speaker 5: gap where contributions are not being paid creates a material problem.
Speaker 4: I think that there's a lot of strategies you can implement.
Speaker 4: We've spoken about it on the podcast before. You could
Speaker 4: plan forward and start contributing a tiny bit amount much
Speaker 4: earlier so that that gap is covered in advance, or
Speaker 4: you could start contributing after to make up that gap,
Speaker 4: or even how do you feel about getting your partner
Speaker 4: to contribute to.
Speaker 5: Yourself well spouse contributions it's another strategy. With superannuation going
Speaker 5: up to eleven and a half percent, concessional contributions are
Speaker 5: going up. And again this is why I think getting
Speaker 5: advice is really important, because there are tax benefits, whether
Speaker 5: you're putting in it as part of your take home
Speaker 5: pay or then after tax, whether it's your spouse is
Speaker 5: doing it. Again, just recognizing that your take home pay
Speaker 5: is going to probably materially change after one July, I
Speaker 5: think it's a chance to really look at could you
Speaker 5: afford As you've just rightly pointed out to put in
Speaker 5: a bit extra so that you're not left behind. But
Speaker 5: recognizing I just want to call out that pay print
Speaker 5: to leave again with superannuation being paid on that.
Speaker 4: I also think it's important to remember that these things
Speaker 4: are also tax effective. So if you're thinking, oh my gosh,
Speaker 4: I don't know if I can afford to make extra
Speaker 4: contributions to my super, like what if you bumped up
Speaker 4: your super one percent over the next ten years. That's
Speaker 4: going to impact it significantly. But I think we need
Speaker 4: to go and do some maths, use some of those calculators,
Speaker 4: because you are going to get in most circumstances, I
Speaker 4: can't broad brushly say this, but you are going to
Speaker 4: get some tax benefits from making that decision, and so
Speaker 4: it's not going to be the whole dollar take home
Speaker 4: amount that you are contributing towards that it's actually going
Speaker 4: to be quite beneficial. So I think we need to
Speaker 4: look into it. Even if you can't factor it into
Speaker 4: the budget right now, please go and just do the
Speaker 4: maths so that you understand what that might mean.
Speaker 2: This is now about the fifteen percent tax percent.
Speaker 4: Because I am always on top of it. The best
Speaker 4: example I have is if you're on the standard marginal
Speaker 4: tax rate of thirty seven and a half percent, and
Speaker 4: we decide to use the number of ten thousand dollars
Speaker 4: inside your take home pay, if we transferred it to you,
Speaker 4: it's worth six seven hundred and fifty dollars. If you
Speaker 4: put that inside superannuation instead, it's now worth eight and
Speaker 4: a half thousand dollars because of that fifteen percent tax
Speaker 4: rate that's supplied. So I don't mean to be dramatic,
Speaker 4: but that's a twenty two percent difference. And I mean,
Speaker 4: we all care about our returns in super we're like
Speaker 4: always I feel like everybody instead of looking at their
Speaker 4: fees instead of they just go look at, like, what's
Speaker 4: my super return to me? The amount that is on
Speaker 4: your return doesn't include the tax benefits, so you might
Speaker 4: have had, you know, let's say an A or A
Speaker 4: nine return, but you're also making even more money because
Speaker 4: of that tax benefit that you probably swept under the rug.
Speaker 4: So immediately your money is worth twenty two percent more
Speaker 4: inside superannuation. Does that mean we should throw our money
Speaker 4: in there, Absolutely not, but it's really important to take
Speaker 4: that into consideration.
Speaker 5: We're crunching the numbers and coffee a day if you're again,
Speaker 5: I'm using forty a number of things starting to.
Speaker 4: Cont like, that's when people usually start to take control
Speaker 4: of their financeses because they might have and this is
Speaker 4: very dramatic, but they might have gone through a big
Speaker 4: life event. Yes, that's where we're starting to talk about
Speaker 4: inheritances because our parents unfortunately don't live forever. It's when
Speaker 4: we're starting to see a lot more divorce happening. It's
Speaker 4: when we're starting to see the kids go off to
Speaker 4: school and you have an existential crisis because you're like, wait,
Speaker 4: what am I doing with my career? In terms of
Speaker 4: career's just so many questions at that age.
Speaker 5: Your day at forty can work out to sixty thousand
Speaker 5: dollars income in retirement extra.
Speaker 2: So exactly.
Speaker 4: And even if we were just doing like a couple
Speaker 4: of like roundups, like what if you set up a
Speaker 4: direct debit of just five bucks.
Speaker 5: Most people would know about those roundup type services where
Speaker 5: you can choose to put it in.
Speaker 4: You can just do it via a direct debit. You
Speaker 4: don't need a specific service to set up a direct
Speaker 4: debit to your supernuation fund, which I always mind really funny.
Speaker 4: You probably are not in this circumstance at all because
Speaker 4: you fully comprehend the environment. But I think people think
Speaker 4: that getting money into super is really complex, but it's not.
Speaker 4: It's b pay. It's the same as transferring money to
Speaker 4: your friends. People.
Speaker 5: As I said, the fact that a quarter of Australians
Speaker 5: haven't even checked their balance in the last year, we're
Speaker 5: doing ourselves a disservice. It's Houston, We've got a problem.
Speaker 5: So I would just say this's overwhelmingly a problem there.
Speaker 4: I love that let's get into those simple steps that
Speaker 4: we promised people. Though we know that on the first
Speaker 4: of July this year's superinnuation is inc racing to eleven
Speaker 4: and a half percent, very very attractive. We're going up
Speaker 4: again the year after, which means that we are putting
Speaker 4: ourselves in the best possible position. It's automatic, but I
Speaker 4: think that to put ourselves in the best position for
Speaker 4: an entire lifetime, we really need to be taking more
Speaker 4: action than just going great. I'm so glad I'm being
Speaker 4: paid more Super because even though we are heading towards
Speaker 4: a higher superannuation rate, because we started at nine and
Speaker 4: a half percent and the government realized that is just
Speaker 4: not enough. That hadn't changed in years, and we're now
Speaker 4: implementing a step by step process to get us up
Speaker 4: to where they think is fair. But your lifestyle might
Speaker 4: not be in line with that. You might go, but
Speaker 4: be I need more than that. We need to take action.
Speaker 4: What are some really simple steps that we can take
Speaker 4: right now to get familiar with super and put ourselves
Speaker 4: in the best possible position.
Speaker 5: Download your super Fun app and put it on your phone.
Speaker 5: Log in, check your balance.
Speaker 4: So many people don't even know that their super funds
Speaker 4: have apps. It's literally at your fingertips.
Speaker 5: And then investigate what that's going to translate to. And
Speaker 5: as a retirement income.
Speaker 4: I do have to admit I don't have my super
Speaker 4: fund app on my fine so I feel like the
Speaker 4: steps might be for meday super Please don't get me wrong,
Speaker 4: like I do occasionally log in online. Got to be
Speaker 4: a bit honest here as well. It's not always front
Speaker 4: of mine, but I know from a hygiene level it's
Speaker 4: doing one. I'm invested in a.
Speaker 5: New financial year, checking your stage three tax scouts what
Speaker 5: they mean, doing all of your budgeting, download your app
Speaker 5: at the same time, check your balance and then actually
Speaker 5: going into your super fun websites to see how much
Speaker 5: money you needed retirement, to see if there's a gap.
Speaker 4: And what does that look clack. So when we say,
Speaker 4: and I feel like this is one of.
Speaker 2: Those things, five hundred and sixty thousands, that five.
Speaker 4: Hundred and sixty and why is it five sixty?
Speaker 2: Five sixties?
Speaker 5: The number where you can have a holiday, you can
Speaker 5: replace a car if it breaks down, you've got emergency money,
Speaker 5: you can buy the family presence.
Speaker 2: That's kind of the number.
Speaker 4: I love having a number, yeah, because I feel like
Speaker 4: so many many of us are like, what does that mean?
Speaker 4: How much do I need in retirement? Five sixty you're saying,
Speaker 4: that's what we're all working towards.
Speaker 2: Ye, that's a.
Speaker 5: Really comfortable retirement where you're not worrying about money. And
Speaker 5: we all know that at some point if you're rich
Speaker 5: or rich, it kind of doesn't make you happier. So
Speaker 5: five sixty is when you don't have to worry about money.
Speaker 4: I love that idea, but if we wanted to work backwards,
Speaker 4: I've spoken a number of times on the podcast. Again,
Speaker 4: we'll put a few in the show notes so that
Speaker 4: you guys have all the tools and resources I always
Speaker 4: like to work backwards and go, well, how much am
Speaker 4: I earning right now? Once I don't have a mortgage
Speaker 4: to pay, once I'm not covering all of these school fees,
Speaker 4: once I'm a little bit leaner, which we hopefully will
Speaker 4: be in retirement, what does that look like? What kind
Speaker 4: of income am I going for? And if that five
Speaker 4: to sixty amount which we all should be working towards,
Speaker 4: isn't enough, we can then go all right, well we
Speaker 4: need to top up a little bit more. We need
Speaker 4: to change a bit because you've got complete control. But
Speaker 4: I think as women we love having.
Speaker 2: A little goal.
Speaker 5: We love clarity, setting yourself a goal and recognizing, again,
Speaker 5: depending on what your salaries has been is likely to
Speaker 5: be it might be.
Speaker 2: Too hard to hit the five P sixty.
Speaker 5: But again all is not lost because if you download
Speaker 5: the app, see how much you've got, actually understand what
Speaker 5: the gap is. If there is a gap, then go right,
Speaker 5: well what can I do to fix the gap. Thirdly,
Speaker 5: I need to look at what I'm invested in now. Obviously,
Speaker 5: the growthier the investment option, the greater the returns, but
Speaker 5: also the greater the volatility, which is why you need
Speaker 5: a greater amount of time. So you need to actually
Speaker 5: understand and consciously make sure you understand what you're invested
Speaker 5: in and is that a lever you can pull to
Speaker 5: bridge the gap. You then need to look at taking cover.
Speaker 5: So what I mean is if you don't have insurance,
Speaker 5: that can make you poor at retirement too, because you
Speaker 5: could have a life event and then you need to
Speaker 5: call on your super to bail you out of it,
Speaker 5: which means you have nothing at.
Speaker 2: The end of your working life.
Speaker 4: Yeah, we don't work this hard to end up with nothing.
Speaker 4: And it's funny you say insurance. I was having this
Speaker 4: conversation on the last episode I recorded, because I was
Speaker 4: saying to Beck, who is a very big part of
Speaker 4: our show, that if you are traveling and you can't
Speaker 4: afford travel insurance, you didn't be going. And I feel
Speaker 4: the same way about life, Like you prioritize your car insurance,
Speaker 4: but you don't prioritize insurance on your literal life, on
Speaker 4: your ability to generate an income. But you'll ensure an
Speaker 4: asset that. Let's be honest. And if my car broke
Speaker 4: down tomorrow and I could not replace it because I
Speaker 4: didn't have insurance, well I've got an income, and I'll
Speaker 4: save up for a new car. But if my income
Speaker 4: breaks down because I can't go to work, I can't
Speaker 4: get a new car. Like it doesn't go both ways.
Speaker 4: So we need to protect the thing that protects us
Speaker 4: because I at the end of the day, if you said,
Speaker 4: ve you have to get rid of every single insurance
Speaker 4: you have, I love a bit of insurance. Like ex
Speaker 4: financial advisor, you best believe I have every personal insurance
Speaker 4: under the sun because I unfortunately have seen the worst
Speaker 4: of the worst of the world when it comes to
Speaker 4: people experiencing trauma, people going through events that could have
Speaker 4: been covered. So I just go to me, having been
Speaker 4: through what I've been through, I'm going to have really
Speaker 4: high levels of all these insurances. But if you said
Speaker 4: you have to get rid of every single one VEE,
Speaker 4: I'd just keep my personal insurance. Yeah, totally, Like my
Speaker 4: current insurance can go the insurance that I was bribed
Speaker 4: into getting for my iPhone in the bin. I can
Speaker 4: definitely keep the personal insurance that makes sure that my
Speaker 4: income is going to be protected in retirement.
Speaker 5: That's right, I mean, and also too, I mean, just
Speaker 5: so many of us get cancer and live.
Speaker 2: It's like you don't.
Speaker 5: Cancer is not a death sentence as it used to be,
Speaker 5: But you actually might not work for a year.
Speaker 2: Again, that impacts your Super.
Speaker 4: It impacts your financial and mental well being as well.
Speaker 4: You're already going through a trash time. Why make it
Speaker 4: even higher for yourself?
Speaker 5: But insurances again, so all of these circumstances are so personal.
Speaker 5: So as you're going through these steps, downloading the app,
Speaker 5: looking at what your balance is, understanding what you're invested in,
Speaker 5: and then looking at your insurance, it is a very
Speaker 5: much a Goldilock scenario with insurance because it is it
Speaker 5: could be too hot, too much, not enough, based on
Speaker 5: your circumstances, who needs you, what debt you've got, Because
Speaker 5: sometimes super insurance is best outside of super rather than
Speaker 5: inside of Super. If you've got some pre existing conditions.
Speaker 5: These things all really matter because it can erode your
Speaker 5: superbalance as well. So insurance is really important, but it
Speaker 5: also can detract from the final outcome of what you
Speaker 5: retire with if you're not actually paying attention that.
Speaker 4: As someone who works in super, you're like, not all
Speaker 4: of them should be held by us, Like we should
Speaker 4: actually have this conversation.
Speaker 2: Personal insurance is not inside Super. I can tell you.
Speaker 4: That's not going to mention that if we listen to
Speaker 4: all my other podcasts, half of my insurances are inside super,
Speaker 4: half of them are outside Super because it makes the
Speaker 4: most sense. And that's where you need to call my
Speaker 4: mate Phil at Sky Insurance and set those up. But
Speaker 4: you know what Phil does immediately is like, let me
Speaker 4: look at your Super. Let's see what's in there. Because
Speaker 4: if there is insurance inside there, that's like gold because
Speaker 4: if it's pre existing. And you know, you guys are
Speaker 4: probably not going to want me to say this, but
Speaker 4: we're all about putting our community in the best possible position.
Speaker 4: It actually doesn't have a lot of exclusions on it,
Speaker 4: whereas you might have gone through a life event and
Speaker 4: that's what triggered you to go and look into insurance
Speaker 4: in the first place. And that life event means that
Speaker 4: we can't cover you for that particular area of insurance anymore.
Speaker 4: But if it was already default in Super, you might
Speaker 4: be covered. So don't cancel your insurances without getting advice.
Speaker 2: You definitely need. That is the final step.
Speaker 5: When I was getting advice consolidating my accounts, and even
Speaker 5: though you know I'm heading up advice for one of
Speaker 5: Australia's biggest funds. Insurance is a really niche area. I'm
Speaker 5: not an expert in insurance, so I went to my
Speaker 5: insurance advisor and I've got a dodgy thyroid graves disease
Speaker 5: and I wanted that underwritten, and it was going to
Speaker 5: be too deer inside Super, so I went and got
Speaker 5: a retail policy outside of Super on once a year.
Speaker 5: I just do a lumpsum roll out to fund the
Speaker 5: insurance premium outside of Super. So it's cost effective from
Speaker 5: a cash flow point of view for me. So there
Speaker 5: are all these really good things that you can do,
Speaker 5: but it's so specific to the individual and your health circumstances,
Speaker 5: your cash flow. If you don't pay attention, it's eroding
Speaker 5: your balance. And lastly, is you getting advice which you
Speaker 5: can do through picking up the phone You mentioned it
Speaker 5: before and all the simple stuff. This type of thing
Speaker 5: is super fun. Can help you with forgets a bit
Speaker 5: more complicated. You've maybe got some shares, some managed funds,
Speaker 5: you don't know whether to use your Super to put
Speaker 5: a deposit on a home. That's when your professional advice
Speaker 5: is really important.
Speaker 4: So we can call and have a chat and be
Speaker 4: like Hey, I've heard of the first home super save
Speaker 4: the scheme. What does that look like? How would I
Speaker 4: contribute to that? Is that going to impact my future wealth?
Speaker 4: The answer is no, because you're going to make additional
Speaker 4: contributions so that we're never putting future us in a
Speaker 4: worse of position. However, you can put yourself in the
Speaker 4: best possible position just by calling them. And it's free,
Speaker 4: just taking action. I think lots of us going It's
Speaker 4: going to be really complicated, it's going to be really hard.
Speaker 4: It's not I promise. I've done some maths and this
Speaker 4: wasn't recent. This is old maths. So I'm just going
Speaker 4: to spit it out again for the fiftieth time on
Speaker 4: the podcast. When I had all of those super funds
Speaker 4: I mentioned at the start of the episode, I did
Speaker 4: some retrospective maths to work out how much I would
Speaker 4: have saved over the course of my lifetime if I
Speaker 4: just kept those any grand I want an additional seventy
Speaker 4: grand in my super And you know what, I've got
Speaker 4: an addition in my exactly. But I've got that in
Speaker 4: my super now over the long term, because I actually
Speaker 4: took action and I looked at my super and I
Speaker 4: rolled them together into the right.
Speaker 5: Fund, which are showing our age a little bit I
Speaker 5: have even though I'm much older than you. But another
Speaker 5: good thing the government has done is what's called stapling.
Speaker 5: If you're listening to this and you've only ever had
Speaker 5: one job, this probably isn't going to apply to you,
Speaker 5: because the new law is really that you're super fun
Speaker 5: is kind of staple to you. Yeah, you've got this
Speaker 5: little monster stapled onto your back that's called super that
Speaker 5: follows you around everywhere.
Speaker 4: It's like a little backpack.
Speaker 5: Yeah, a little backpack that you can feed it up
Speaker 5: with contributions before or after tax and make sure it's
Speaker 5: all loved art. So I think that's something to remember.
Speaker 5: So when you're changing jobs, if you aren't paying attention,
Speaker 5: you're next employer. It's just going to go with whatever
Speaker 5: you've got. Now, probably the last thing, just side note,
Speaker 5: make sure you're with a super fun that is performing.
Speaker 5: Just a shout out to our investment team number one
Speaker 5: for growth over ten years.
Speaker 4: That's pretty sick, yea yea, yeah, it's very enough.
Speaker 5: Yeah, it's the head of investment strategy who's an actually
Speaker 5: with a personality that's rare.
Speaker 4: I hope you're paying them well, so they stay.
Speaker 5: Well, it's profit for member, so you know, go and
Speaker 5: work in industry so to get rich let's put it.
Speaker 4: No, you definitely don't, and it's well sense of service.
Speaker 4: But I think that's important as well because for so
Speaker 4: many of us, our ethics and our morals start to
Speaker 4: come into play when we're talking about how we invest right,
Speaker 4: and so many of us think that that just means
Speaker 4: the product we invest in, So like what is my
Speaker 4: portfolio made up of? But it's also important to think
Speaker 4: about the people that are managing that portfolio. And I
Speaker 4: think that's a really good point that you bring up.
Speaker 4: If that is really important to you, what does that
Speaker 4: actually look like? How do I pick a team that
Speaker 4: I think on the same page as me and then
Speaker 4: we can pick investments together that make the most sense
Speaker 4: for my future.
Speaker 5: Yeah, trust and integrity with something it's almost like a
Speaker 5: fiduciary because this is money that we're investing for like
Speaker 5: fifty years on your behalf. When you're downloading the app
Speaker 5: and you're doing all of those steps of seeing how
Speaker 5: much you've got in terms of your balance, is it
Speaker 5: going to be enough?
Speaker 2: What are you invested in? How much insurance covery.
Speaker 5: Of your God, could you do a bit more getting
Speaker 5: some financial advice starting with your super fun just making
Speaker 5: a conscious decision about you is my fun? Are they
Speaker 5: providing me the services that I need? And is there
Speaker 5: investment performance competitive and looking over the three, five, ten years.
Speaker 5: That's also again things steps you can take today. Doesn't
Speaker 5: cost anything to do that level of research.
Speaker 4: And my favorite resource is actually a resource that the
Speaker 4: government came out with in September twenty twenty two, and
Speaker 4: that's the my super tool. And I think that that's
Speaker 4: really sexy. And the reason I like it is because
Speaker 4: there are lots of other comparison websites that exist, right
Speaker 4: Like we all know la near Kat and he's really cute.
Speaker 4: But at the end of the day, lots of super
Speaker 4: funds are paying to appear in their searchers on those websites.
Speaker 4: And while that is completely fair, that's how those websites work.
Speaker 4: I think a lot of us didn't understand that for
Speaker 4: a long time. Whereas this super comparison and tool that
Speaker 4: has been brought up by the government, you guys write
Speaker 4: really well, don't worry, Yeah, I don't worry. You know that,
Speaker 4: I know that using that is comparing apples with apples.
Speaker 4: We're not looking at sponsored posts, we're not looking at
Speaker 4: people who are paying to be on there. That tool
Speaker 4: shows us the top performing funds, it shows us the
Speaker 4: low performing funds. Should we be basing our decision on performance, though,
Speaker 4: absolutely not. We should be basing it on what works
Speaker 4: with our values, our morals, what we're working towards. But
Speaker 4: it's a really good base tool that for me is
Speaker 4: non bias, Like we're not going to your company's website only,
Speaker 4: we're going to that going okay, cool, hygiene check, They're
Speaker 4: rating pretty well, and now I want to do a
Speaker 4: deep dive into individual companies that might suit me.
Speaker 5: Going back to that stat only twenty eight percent of
Speaker 5: women feel financially confident. Well, the only way that's going
Speaker 5: to improve is if people start doing those things that
Speaker 5: you've just suggested, then doing a bit of reading about
Speaker 5: that self education. And if you're listening to this, you're
Speaker 5: already kind of signed up to the principle of self betterment.
Speaker 4: Biased, but I think you're pretty smart.
Speaker 5: Yeah, but yeah, I think if the homework you've got
Speaker 5: is to pass on these steps to your family and
Speaker 5: friends and help them download the app. Do it together,
Speaker 5: sit down with a coffee, check your balances, have a
Speaker 5: little date, have a little super date.
Speaker 4: You deserve a wine while doing your super Yeah, I
Speaker 4: think you do.
Speaker 5: Yeah, it'd be good actually to have a little club
Speaker 5: where you can hold yourselves to account and share.
Speaker 2: Go for it.
Speaker 4: And if you don't have any friends that want to
Speaker 4: do that, She's on the Money community, so we'll do that.
Speaker 2: Yes, I love that, and.
Speaker 4: I have adored this chat. I feel like you and
Speaker 4: I are definitely on the same page. But what if
Speaker 4: we want to learn more about you? What if we
Speaker 4: maybe want to check out your fund? Where do we learn?
Speaker 2: We just go, Well, you go onto the art dot
Speaker 2: com dot au website.
Speaker 4: Unfortunately, that is all we have time for today. If
Speaker 4: you want to check out and and you want to
Speaker 4: check out art, I am going to put all of
Speaker 4: the links in the show notes so you don't have
Speaker 4: to do any other work except for checking your own
Speaker 4: super balance.
Speaker 2: Do what do it?
Speaker 4: See you guys next time?
Speaker 2: Thank you bro.
Speaker 4: The advice shared on She's on the Money is general
Speaker 4: in nature and does not consider your individual circumstances. She's
Speaker 4: on the Money exists purely for educational purposes and should
Speaker 4: not be relied upon to make an investment or financial decision.
Speaker 4: If you do choose to buy a financial product, read
Speaker 4: the PDS TMD and obtain appropriate financial advice tailored towards
Speaker 4: your needs. Victoria Divine and She's on the Money are
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