1 00:00:00,680 --> 00:00:04,880 Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yor 2 00:00:04,960 --> 00:00:08,639 Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before 3 00:00:08,680 --> 00:00:11,160 Speaker 1: we get started on She's on the Money podcast, I 4 00:00:11,160 --> 00:00:14,319 Speaker 1: would like to acknowledge the traditional custodians of the land 5 00:00:14,400 --> 00:00:17,680 Speaker 1: of which this podcast is recorded on a wondery country, 6 00:00:18,120 --> 00:00:22,240 Speaker 1: acknowledging the elders, the ancestors and the next generation coming 7 00:00:22,320 --> 00:00:26,960 Speaker 1: through as this podcast is about connecting, empowering, knowledge sharing 8 00:00:27,080 --> 00:00:30,120 Speaker 1: and the storytelling of you to make a difference for 9 00:00:30,240 --> 00:00:33,080 Speaker 1: today and lasting impact for tomorrow. 10 00:00:33,320 --> 00:00:34,200 Speaker 2: Let's get into it. 11 00:00:34,360 --> 00:00:47,440 Speaker 3: She's on the Money, She's on the Money. 12 00:00:57,320 --> 00:00:59,800 Speaker 4: Hello and welcome to She's on the Money. The podcast 13 00:01:00,160 --> 00:01:02,520 Speaker 4: is about the bank balance of future you as much 14 00:01:02,560 --> 00:01:06,120 Speaker 4: as today you do. You ever see the letters SMSF 15 00:01:06,319 --> 00:01:08,720 Speaker 4: and wonder what does that stand for? But you kind 16 00:01:08,760 --> 00:01:11,200 Speaker 4: of hear people talking about it and setting up their 17 00:01:11,240 --> 00:01:13,800 Speaker 4: own self managed super fun and have you ever thought like, 18 00:01:14,160 --> 00:01:15,440 Speaker 4: am I supposed to be doing that? 19 00:01:15,800 --> 00:01:15,959 Speaker 1: Well? 20 00:01:15,959 --> 00:01:19,399 Speaker 4: Honestly kind of same. I am excited and joining me 21 00:01:19,440 --> 00:01:22,440 Speaker 4: today our expert in all things finance and the woman 22 00:01:22,720 --> 00:01:25,120 Speaker 4: asking themselves turned to when they needed the lowdown on 23 00:01:25,240 --> 00:01:28,000 Speaker 4: millennials and their superannuation. Victoria Devine. 24 00:01:28,080 --> 00:01:30,040 Speaker 2: That's such a flex, isn't it. I know that's actually 25 00:01:30,680 --> 00:01:33,560 Speaker 2: it was like probably my biggest career flex that is 26 00:01:33,760 --> 00:01:36,319 Speaker 2: really really cood. Oh well, as wanted my advice. 27 00:01:36,560 --> 00:01:39,720 Speaker 4: So it's like Jesus coming to you and be like, hey, 28 00:01:39,720 --> 00:01:40,759 Speaker 4: what should I write in the Bible? 29 00:01:41,560 --> 00:01:44,000 Speaker 2: No it's not, but I'm not gonna correct you. I 30 00:01:44,080 --> 00:01:47,280 Speaker 2: love that for us. I get asked about SMSF or 31 00:01:47,360 --> 00:01:49,720 Speaker 2: self managed super all the time. You know, when you 32 00:01:49,720 --> 00:01:51,920 Speaker 2: get super motivated and you're gonna do a really big 33 00:01:52,080 --> 00:01:55,520 Speaker 2: DIY project, but then halfway through, you're like me deep 34 00:01:55,520 --> 00:01:57,400 Speaker 2: in paint. You're standing there and you're. 35 00:01:57,280 --> 00:01:59,800 Speaker 4: Like, why did I decide. 36 00:01:59,400 --> 00:02:01,480 Speaker 2: To do this? I don't know what I'm doing. I've 37 00:02:01,520 --> 00:02:04,000 Speaker 2: messed so much up. I need to hire a pro, 38 00:02:04,840 --> 00:02:06,840 Speaker 2: and it might now cost me a bit more because 39 00:02:06,960 --> 00:02:10,080 Speaker 2: I've made all these mistakes that need unwinding. Well that's 40 00:02:10,440 --> 00:02:14,160 Speaker 2: kind of what an SMSF can feel like. Yeah, sure 41 00:02:14,320 --> 00:02:16,720 Speaker 2: you get to do it all yourself, beck absolutely, but 42 00:02:16,840 --> 00:02:20,960 Speaker 2: sometimes it's a lot more work than it's worth. So 43 00:02:21,320 --> 00:02:24,160 Speaker 2: today I decided it was time we're going to break 44 00:02:24,200 --> 00:02:27,360 Speaker 2: down why managing your own super fund It sounds great 45 00:02:27,400 --> 00:02:30,920 Speaker 2: in theory, but it can often turn more into a 46 00:02:31,000 --> 00:02:34,320 Speaker 2: DIY nightmare than a dream. And I think that that 47 00:02:34,639 --> 00:02:37,679 Speaker 2: is very poignant at the moment, because I've seen a 48 00:02:37,720 --> 00:02:40,240 Speaker 2: lot of people in our community asking should I have 49 00:02:40,280 --> 00:02:43,400 Speaker 2: an SMSF my friends set up one, or my parents 50 00:02:43,480 --> 00:02:46,880 Speaker 2: set up one, or most alarming to me, someone approached 51 00:02:46,880 --> 00:02:50,200 Speaker 2: me and said I could use the entire and mounting 52 00:02:50,320 --> 00:02:53,760 Speaker 2: my superannuation and buy a property with it. There are 53 00:02:53,760 --> 00:02:57,040 Speaker 2: red flags flying, Beck, they are flying, They're flying high. 54 00:02:57,160 --> 00:02:59,079 Speaker 4: Yes, I used to think the same thing as well. 55 00:02:59,120 --> 00:03:00,880 Speaker 4: I wanted to start my own I'm like, if I 56 00:03:00,919 --> 00:03:03,280 Speaker 4: have full access to my super and no one's gonna 57 00:03:03,280 --> 00:03:05,400 Speaker 4: ask me questions, it's not the case. I realize it's very, 58 00:03:05,480 --> 00:03:06,040 Speaker 4: very illegal. 59 00:03:06,360 --> 00:03:08,520 Speaker 2: It's very scary. I mean, it's not illegal to have 60 00:03:08,560 --> 00:03:11,280 Speaker 2: access and invest on your own terms, absolutely. 61 00:03:10,800 --> 00:03:14,480 Speaker 4: Not right, but to use it for your groceriason. 62 00:03:13,960 --> 00:03:16,240 Speaker 2: Oh, no, we're not doing that, babe, Yes, absolutely not. 63 00:03:16,639 --> 00:03:18,160 Speaker 4: I thought it sounded really good, but then yes, I 64 00:03:18,200 --> 00:03:20,400 Speaker 4: realized I'm not allowed to do that. But I've always 65 00:03:20,400 --> 00:03:22,560 Speaker 4: wanted to know about it because it kind of sounds fancy, 66 00:03:22,600 --> 00:03:24,800 Speaker 4: and like, who doesn't want more control? Should we start 67 00:03:24,800 --> 00:03:26,680 Speaker 4: with what a self managed super fund actually is. 68 00:03:26,800 --> 00:03:29,120 Speaker 2: I think it sounds really glamorous. Like when I used 69 00:03:29,160 --> 00:03:31,280 Speaker 2: to be a financial advisor, I'd have people come in 70 00:03:31,280 --> 00:03:33,160 Speaker 2: and they would say, I really want to have a 71 00:03:33,160 --> 00:03:36,120 Speaker 2: self managed super fund, and I feel like people thought 72 00:03:36,160 --> 00:03:39,640 Speaker 2: that was a flex. So I used to have people 73 00:03:39,680 --> 00:03:41,560 Speaker 2: come in and they would be like, well, I want 74 00:03:41,560 --> 00:03:43,360 Speaker 2: to have complete control. And I'd be thinking in the 75 00:03:43,400 --> 00:03:46,400 Speaker 2: back of my mind, like you do have complete control, 76 00:03:46,600 --> 00:03:48,320 Speaker 2: and they'd be like, I need this, this, this, and this. 77 00:03:48,400 --> 00:03:50,120 Speaker 2: And I used to have this friend they had a 78 00:03:50,160 --> 00:03:52,760 Speaker 2: self managed super fund and they would always tell me 79 00:03:52,880 --> 00:03:56,119 Speaker 2: how silly I was for having managed funds, and I'd 80 00:03:56,160 --> 00:03:58,880 Speaker 2: be like, oh, okay, like you're talking to a legitimate 81 00:03:58,960 --> 00:04:01,720 Speaker 2: financial advice. So do you think I haven't thought about 82 00:04:01,720 --> 00:04:04,440 Speaker 2: this as an option and of all people to do 83 00:04:04,520 --> 00:04:06,880 Speaker 2: it as cheap as possible, it's me because I owned 84 00:04:06,920 --> 00:04:09,320 Speaker 2: the practice. I could have had my own team set 85 00:04:09,320 --> 00:04:12,880 Speaker 2: that up for me for not that much, and I 86 00:04:12,920 --> 00:04:15,160 Speaker 2: still didn't do it. So I feel like that tells 87 00:04:15,160 --> 00:04:18,280 Speaker 2: you a fair bit about like how much work much 88 00:04:18,400 --> 00:04:21,120 Speaker 2: goes into it. Work goes into it. But let's go 89 00:04:21,200 --> 00:04:24,000 Speaker 2: back to basics. I suppose, so a self managed superfund. 90 00:04:24,240 --> 00:04:29,480 Speaker 2: It allows people to manage their own superinvestments, which is 91 00:04:29,520 --> 00:04:32,480 Speaker 2: a lot deeper than having like a management company or 92 00:04:32,520 --> 00:04:35,120 Speaker 2: a superannuation company doing that for you. You do have 93 00:04:35,160 --> 00:04:37,320 Speaker 2: a lot more control today, So we'll get into that 94 00:04:37,360 --> 00:04:40,720 Speaker 2: a little bit later, but essentially members are then responsible 95 00:04:40,720 --> 00:04:44,640 Speaker 2: for managing their own funds, their own investment strategy, their 96 00:04:44,640 --> 00:04:48,440 Speaker 2: own compliance with regulations. That's on your shoulders and any 97 00:04:48,480 --> 00:04:53,280 Speaker 2: admin associated with it and SMSF it's very different from 98 00:04:53,640 --> 00:04:57,920 Speaker 2: having a retail or a industry fund which are managed 99 00:04:57,960 --> 00:05:01,680 Speaker 2: by proper professional trustee s, which I like that. So 100 00:05:01,720 --> 00:05:05,120 Speaker 2: approximately four percent of Australians have smsfs, so they're not 101 00:05:05,240 --> 00:05:09,960 Speaker 2: that common, and they account actually for twenty eight percent 102 00:05:10,080 --> 00:05:12,120 Speaker 2: of Australia's total super assets. 103 00:05:12,440 --> 00:05:15,560 Speaker 4: Wait a minute, that's like out of one hundred percent 104 00:05:15,640 --> 00:05:18,599 Speaker 4: of the funds that are available that are super. 105 00:05:18,760 --> 00:05:22,000 Speaker 2: It actually makes a lot of sense. So smsfs are 106 00:05:22,080 --> 00:05:25,840 Speaker 2: often associated with high net wealth individuals because of their 107 00:05:25,839 --> 00:05:29,359 Speaker 2: complexity and the costs that's involved managing them. It's not 108 00:05:29,520 --> 00:05:34,200 Speaker 2: something that is completely preposterous, right, Like I'm not here 109 00:05:34,279 --> 00:05:37,640 Speaker 2: saying smsfs are a terrible idea. When I was a 110 00:05:37,680 --> 00:05:42,719 Speaker 2: financial advisor, I did have clients that had very practical smsfs, 111 00:05:43,040 --> 00:05:45,960 Speaker 2: like they would have oodles and I'm talking like tens 112 00:05:46,040 --> 00:05:50,320 Speaker 2: of millions of dollars back of family money that was 113 00:05:50,400 --> 00:05:53,280 Speaker 2: being managed through an SMSF, like they would have massive 114 00:05:53,320 --> 00:05:57,480 Speaker 2: property portfolios. I had one client who had a vintage 115 00:05:57,520 --> 00:06:01,679 Speaker 2: car collection inside his SMSF. That was wild actually because 116 00:06:01,720 --> 00:06:07,200 Speaker 2: complete side note, when you sell cars, if you sell 117 00:06:07,200 --> 00:06:09,400 Speaker 2: them for a profit, you don't have to pay capital 118 00:06:09,440 --> 00:06:14,159 Speaker 2: gains tax. So there's like a little loophole that basically 119 00:06:14,200 --> 00:06:16,560 Speaker 2: only applies to the wealthy because you can't just go 120 00:06:16,600 --> 00:06:19,240 Speaker 2: buy a nice little credola and hope that this happens. 121 00:06:20,000 --> 00:06:22,839 Speaker 4: Say, for example, like sold my really really ugly old 122 00:06:23,360 --> 00:06:27,280 Speaker 4: no window Toyota Echo downstairs for fifty bucks. 123 00:06:27,400 --> 00:06:29,040 Speaker 2: Toyota Echo is an elite car. 124 00:06:29,279 --> 00:06:31,800 Speaker 4: It actually is an incredible car, and it's fuel. 125 00:06:31,600 --> 00:06:34,039 Speaker 2: Efficient, and because it's a Toyota, she's good. 126 00:06:33,880 --> 00:06:36,039 Speaker 4: For she's good for it. But if I sold it 127 00:06:36,040 --> 00:06:37,599 Speaker 4: for fifty bucks, I would have to pay. 128 00:06:38,320 --> 00:06:41,359 Speaker 2: No, no, no, Whereas if you bought a house, for example, 129 00:06:41,960 --> 00:06:44,200 Speaker 2: and you paid fifty bucks for it and sold it 130 00:06:44,200 --> 00:06:46,640 Speaker 2: for one hundred, you would be up for capital gains tax. 131 00:06:46,680 --> 00:06:50,160 Speaker 2: And that's a whole other conversation. But on cars, you 132 00:06:50,200 --> 00:06:53,520 Speaker 2: don't pay that. So if you like super rich because 133 00:06:53,520 --> 00:06:56,000 Speaker 2: obviously the Corolla, the Echo, it's not going to do 134 00:06:56,040 --> 00:06:59,279 Speaker 2: it for us. But I have had clients who have 135 00:06:59,440 --> 00:07:03,680 Speaker 2: purchased luxury and vintage cars. They might like buy an 136 00:07:03,720 --> 00:07:07,039 Speaker 2: old Porsche nine to eleven and redo it and sell 137 00:07:07,080 --> 00:07:09,680 Speaker 2: it for a profit. That profit is their profit to keep. 138 00:07:09,760 --> 00:07:12,560 Speaker 2: They don't pay CGT on it, right, So like little tipbit, 139 00:07:12,640 --> 00:07:16,320 Speaker 2: but this client used to have vintage cars in his 140 00:07:16,480 --> 00:07:18,840 Speaker 2: SMSF and you know this is not earn investing one 141 00:07:18,880 --> 00:07:22,800 Speaker 2: oh one with Viba, Like it's interesting the amount vintage 142 00:07:22,920 --> 00:07:27,080 Speaker 2: car's return in comparison to the Australian share market is astronomical. 143 00:07:27,200 --> 00:07:28,960 Speaker 2: You have to be good at it. But he used 144 00:07:28,960 --> 00:07:32,239 Speaker 2: to flip cars, and I remember thinking, oh my god, 145 00:07:33,000 --> 00:07:36,080 Speaker 2: Like I thought this was going to be an absolute 146 00:07:36,600 --> 00:07:40,240 Speaker 2: shit show because like I looked over archingly, he's an 147 00:07:40,280 --> 00:07:44,239 Speaker 2: SMSF looking, what's it made up? Off cars? Far out? Okay, 148 00:07:44,280 --> 00:07:45,960 Speaker 2: Like I'm going to work with his part, like what's 149 00:07:46,000 --> 00:07:48,760 Speaker 2: going on? And obviously did all my research and I 150 00:07:48,760 --> 00:07:50,960 Speaker 2: remember looking at it going what the hell? This guy's 151 00:07:51,000 --> 00:07:53,040 Speaker 2: a genius, Like he talked me through it. And he 152 00:07:53,160 --> 00:07:56,080 Speaker 2: was really good at it, like he ultimately, because it 153 00:07:56,120 --> 00:07:59,320 Speaker 2: was so wealthy, he actually funded the setup of a 154 00:07:59,360 --> 00:08:02,080 Speaker 2: whole work shop that he hired staff for that did 155 00:08:02,080 --> 00:08:04,880 Speaker 2: it for everybody else, like it was a legit business. 156 00:08:05,320 --> 00:08:08,160 Speaker 2: But he did that so that it really brought down 157 00:08:08,240 --> 00:08:11,040 Speaker 2: the cost of him fixing up his cars. He had 158 00:08:11,080 --> 00:08:14,120 Speaker 2: somewhere to keep them, like anyway, whole different thing, but 159 00:08:14,240 --> 00:08:17,360 Speaker 2: just really quickly, Yes, if you have cars in an SMSF, 160 00:08:17,400 --> 00:08:19,640 Speaker 2: does that mean you just like the estimated value of 161 00:08:19,680 --> 00:08:21,000 Speaker 2: that is what's. 162 00:08:20,800 --> 00:08:21,840 Speaker 4: In your SMSF or. 163 00:08:22,120 --> 00:08:26,080 Speaker 2: Yeah, don't forget to access an investment, it either has 164 00:08:26,160 --> 00:08:28,640 Speaker 2: to provide you with an income. A car is not 165 00:08:28,640 --> 00:08:30,320 Speaker 2: going to do that. He just had an asset, so 166 00:08:30,400 --> 00:08:32,199 Speaker 2: in order for it to provide him in income, he 167 00:08:32,240 --> 00:08:34,439 Speaker 2: had to sell the asset. So you'd have an average 168 00:08:34,520 --> 00:08:37,720 Speaker 2: value of what those cars were worth. But ultimately, a 169 00:08:37,720 --> 00:08:40,040 Speaker 2: car or a house is actually only worth what the 170 00:08:40,120 --> 00:08:41,880 Speaker 2: market will pay on the day that you sell it. 171 00:08:42,600 --> 00:08:45,000 Speaker 2: So if you go, oh, well it's worth three hundred grand, 172 00:08:45,000 --> 00:08:48,240 Speaker 2: I'm feeling safe, Well, it's only worth three hundred thousand 173 00:08:48,240 --> 00:08:50,480 Speaker 2: dollars if the market is willing to pay for that, 174 00:08:50,520 --> 00:08:52,840 Speaker 2: Like you'd have to find a buyer. Right, so there's 175 00:08:52,840 --> 00:08:54,800 Speaker 2: a lot more strategy and that's a side note. But 176 00:08:54,840 --> 00:09:00,520 Speaker 2: back to this, I feel like smsfs can be very costly. 177 00:09:00,559 --> 00:09:02,880 Speaker 2: They can be very fun. Like, don't get me wrong, 178 00:09:02,920 --> 00:09:06,440 Speaker 2: I don't want this entire episode to be these warning us. 179 00:09:06,520 --> 00:09:09,720 Speaker 2: They can be fun, but in certain circumstances. 180 00:09:09,920 --> 00:09:12,680 Speaker 4: Right, So it sounds like it is a lot of work, 181 00:09:12,720 --> 00:09:15,320 Speaker 4: but there are some benefits this. So what's the actual 182 00:09:15,400 --> 00:09:18,440 Speaker 4: catch with smsfs then why would everyone just jump on board? 183 00:09:18,480 --> 00:09:20,200 Speaker 4: If it's all about like kind of like being controlled. 184 00:09:20,200 --> 00:09:21,840 Speaker 2: You put your echo in your SMSF. 185 00:09:23,000 --> 00:09:26,640 Speaker 4: I would put my echo in my SMSFAL mouthful. 186 00:09:26,360 --> 00:09:26,640 Speaker 3: Isn't it. 187 00:09:26,800 --> 00:09:29,760 Speaker 2: Yeah, it's like she sells seashells by the sea shop. 188 00:09:30,240 --> 00:09:31,640 Speaker 4: That can also go on your SMSF. 189 00:09:31,720 --> 00:09:35,240 Speaker 2: Ye can't haven't seen it, but happy to be corrected. 190 00:09:35,840 --> 00:09:39,600 Speaker 2: Managing an SMSF is a lot of work. It's basically 191 00:09:39,679 --> 00:09:42,800 Speaker 2: like running a tiny small business. So you're responsible for 192 00:09:42,840 --> 00:09:47,200 Speaker 2: meeting all the legal obligations. You're then responsible for making 193 00:09:47,200 --> 00:09:50,680 Speaker 2: sure that it is compliant with tax laws. You're responsible 194 00:09:50,720 --> 00:09:53,880 Speaker 2: for making sure that your fund gets audited every single year. 195 00:09:54,080 --> 00:09:56,360 Speaker 2: So like you need to pay someone an accountant to 196 00:09:56,440 --> 00:09:58,800 Speaker 2: audit your fund, and so many more. I won't say 197 00:09:58,840 --> 00:10:01,280 Speaker 2: hidden costs because they're not hidden, you just probably don't 198 00:10:01,280 --> 00:10:04,480 Speaker 2: know about them when you learn what an SMSF is. 199 00:10:04,600 --> 00:10:08,320 Speaker 2: And this isn't obviously my opinion, but our friends at 200 00:10:08,320 --> 00:10:10,720 Speaker 2: ASIK recommend that you have at least half a million 201 00:10:10,760 --> 00:10:14,560 Speaker 2: dollars in super before even considering setting up an SMSF 202 00:10:14,600 --> 00:10:17,640 Speaker 2: to justify the costs. Right, So, if you don't have 203 00:10:18,040 --> 00:10:21,319 Speaker 2: more than that and you're considering it, I would wonder 204 00:10:21,360 --> 00:10:23,560 Speaker 2: why to be rude for a hot second. Is it 205 00:10:23,600 --> 00:10:26,240 Speaker 2: your ego? Do you want to be in control and 206 00:10:26,320 --> 00:10:29,120 Speaker 2: you're not willing to do the research into all of 207 00:10:29,120 --> 00:10:31,679 Speaker 2: the industry and super funds that you could work with 208 00:10:31,720 --> 00:10:34,200 Speaker 2: that are actually aligned to your values and allow you 209 00:10:34,280 --> 00:10:36,240 Speaker 2: to have a bit of a play around with the 210 00:10:36,240 --> 00:10:40,120 Speaker 2: amounts of different things. Or do you have somebody in 211 00:10:40,160 --> 00:10:42,000 Speaker 2: the back of your mind who's like, oh, we're a 212 00:10:42,040 --> 00:10:46,439 Speaker 2: company that sets up an SMSF, accesses your superannuation, helps 213 00:10:46,440 --> 00:10:48,640 Speaker 2: you invest it in property and wham maam, thank you, ma'am, 214 00:10:49,280 --> 00:10:51,920 Speaker 2: you're going to get an off the plan apartment. And 215 00:10:51,960 --> 00:10:55,400 Speaker 2: I think that we need to talk about these things 216 00:10:55,400 --> 00:10:58,160 Speaker 2: a little bit more because it could be all sunshine 217 00:10:58,160 --> 00:11:00,600 Speaker 2: and roses like I could sell it to you now, 218 00:11:00,880 --> 00:11:05,120 Speaker 2: And dodgy financial advisors, which, thankfully after the Royal Commission, 219 00:11:05,679 --> 00:11:09,520 Speaker 2: can't exist anymore. Dodgy financial advisors used to set them 220 00:11:09,600 --> 00:11:12,240 Speaker 2: up and then work with a property developer that they'd 221 00:11:12,240 --> 00:11:15,360 Speaker 2: clipped the ticket on. Like if I said to you, Beck, oh, well, 222 00:11:15,400 --> 00:11:18,640 Speaker 2: actually that financial advisor who said set up an SMSF 223 00:11:19,040 --> 00:11:23,600 Speaker 2: actually is making five percent of your property purchase. Oh right, Okay, 224 00:11:23,679 --> 00:11:25,920 Speaker 2: that used to happen. Yeah, So there's a lot of 225 00:11:25,960 --> 00:11:31,520 Speaker 2: hesitancy in the market when it comes to talking about smsfs. 226 00:11:31,840 --> 00:11:33,720 Speaker 2: But there's also a lot of people just like me 227 00:11:33,800 --> 00:11:37,959 Speaker 2: who are or were financial advisors who've just wound up 228 00:11:38,000 --> 00:11:40,559 Speaker 2: more of them than we've ever set up, because we 229 00:11:40,760 --> 00:11:43,880 Speaker 2: just get new clients who maybe weren't happy with their advisor, 230 00:11:44,040 --> 00:11:46,280 Speaker 2: or they'd gotten a few years into their SMSF and 231 00:11:46,320 --> 00:11:49,520 Speaker 2: it was not working for them. And I would then 232 00:11:49,520 --> 00:11:51,080 Speaker 2: look at it and be like, who let you do 233 00:11:51,160 --> 00:11:53,760 Speaker 2: this in the first place? Oh, here's the advice I got, 234 00:11:53,800 --> 00:11:55,400 Speaker 2: And you'd read the advice and you'd just be like, 235 00:11:55,679 --> 00:11:57,360 Speaker 2: I knew in the back of my mind that there 236 00:11:57,400 --> 00:12:00,040 Speaker 2: was probably a referral going on and someone was clipping 237 00:12:00,080 --> 00:12:02,200 Speaker 2: the ticket because otherwise it made no sense to give 238 00:12:02,240 --> 00:12:02,800 Speaker 2: that advice. 239 00:12:03,160 --> 00:12:04,160 Speaker 4: Sneaky, sneaky snake. 240 00:12:04,280 --> 00:12:04,480 Speaker 3: Yeah. 241 00:12:04,520 --> 00:12:07,640 Speaker 2: So there's also the cost factor. Yeah, so back to 242 00:12:07,679 --> 00:12:11,080 Speaker 2: what Acik was saying, smsfs can be really expensive to 243 00:12:11,080 --> 00:12:13,720 Speaker 2: set up and they're maintain and the ATO says that 244 00:12:13,800 --> 00:12:16,560 Speaker 2: the average annual cost of running an SMSF is between 245 00:12:16,600 --> 00:12:20,040 Speaker 2: three and ten thousand dollars, depending on the complexity of it. 246 00:12:20,200 --> 00:12:24,400 Speaker 4: Okay, so that's not small change, that's for sure. Because 247 00:12:24,400 --> 00:12:27,240 Speaker 4: here I am thinking, if you're doing it yourself, no fees, 248 00:12:27,320 --> 00:12:28,400 Speaker 4: no anything. 249 00:12:28,120 --> 00:12:31,400 Speaker 2: No, so there's still fees, right, there's not no fees, 250 00:12:31,559 --> 00:12:33,480 Speaker 2: And they think that that's where we need to talk 251 00:12:33,480 --> 00:12:38,280 Speaker 2: about it, because even though beck Acik has said, oh, well, 252 00:12:38,320 --> 00:12:40,880 Speaker 2: you'd have to have a minimum of five hundred thousand 253 00:12:40,880 --> 00:12:44,040 Speaker 2: dollars to consider setting one up, that's where people, I think, 254 00:12:44,080 --> 00:12:48,199 Speaker 2: start thinking deeply about it. Right. So, like, on average, 255 00:12:48,600 --> 00:12:52,160 Speaker 2: the cost of managing funds in Australia is give or 256 00:12:52,200 --> 00:12:55,360 Speaker 2: take one percent. So like, if you've got a balance 257 00:12:55,720 --> 00:12:59,040 Speaker 2: of five hundred thousand dollars in your superannuation, which must 258 00:12:59,080 --> 00:13:04,120 Speaker 2: be nice, you you're probably paying at least five thousand 259 00:13:04,120 --> 00:13:08,240 Speaker 2: dollars in fees already, right, and when your superstatement comes in, 260 00:13:08,520 --> 00:13:10,040 Speaker 2: you're going to look at that and be like five 261 00:13:10,120 --> 00:13:15,800 Speaker 2: grand in fees for what And the answer is administration management, 262 00:13:15,840 --> 00:13:19,120 Speaker 2: ongoing portfolio management. Probably some insurance is built into that. 263 00:13:19,160 --> 00:13:21,680 Speaker 2: So it's very easy to just see the bottom line 264 00:13:21,720 --> 00:13:23,880 Speaker 2: and go, well, I'm spending five grand on this, why 265 00:13:23,920 --> 00:13:26,520 Speaker 2: wouldn't I go spend three to ten thousand dollars on 266 00:13:26,640 --> 00:13:28,439 Speaker 2: just having my own I could sell it to you 267 00:13:28,440 --> 00:13:29,800 Speaker 2: if I wanted to, but I'm not going to. 268 00:13:31,360 --> 00:13:33,800 Speaker 4: So it's not really something that the average person maybe 269 00:13:33,840 --> 00:13:35,640 Speaker 4: like I was gonna say you or I, but actually 270 00:13:35,720 --> 00:13:38,200 Speaker 4: just I who just wants to kind of invest smarter, Like, 271 00:13:38,200 --> 00:13:41,160 Speaker 4: it's probably not something that they should do. I know 272 00:13:41,200 --> 00:13:43,079 Speaker 4: you can't really give personal as advice, but. 273 00:13:43,240 --> 00:13:46,040 Speaker 2: No, of course not. But you're exactly right, Like, if 274 00:13:46,040 --> 00:13:48,559 Speaker 2: you don't have a huge balance, or you're not investing 275 00:13:48,600 --> 00:13:52,959 Speaker 2: in really complex assets like property, there are much more 276 00:13:53,280 --> 00:13:56,920 Speaker 2: simple ways for you to manage your superannuation very cost 277 00:13:56,920 --> 00:14:03,400 Speaker 2: effectively and also structure effectively. Most now traditional super funds 278 00:14:03,480 --> 00:14:06,120 Speaker 2: actually allow you to pick your investment strategy, which we 279 00:14:06,160 --> 00:14:07,840 Speaker 2: know because I talk about that all the time. And 280 00:14:07,880 --> 00:14:10,680 Speaker 2: then they tailor it to your risk level, so you 281 00:14:10,800 --> 00:14:13,680 Speaker 2: still have a lot more control than you think you 282 00:14:13,760 --> 00:14:16,600 Speaker 2: do without all the admin stress. Like Beck, it is 283 00:14:16,920 --> 00:14:20,400 Speaker 2: twenty twenty four right now, and even if you're listening 284 00:14:20,440 --> 00:14:23,320 Speaker 2: to this in twenty twenty five, you have so much 285 00:14:23,360 --> 00:14:27,400 Speaker 2: power in superannuation. And I'll use Australian Super as an example, 286 00:14:27,640 --> 00:14:31,200 Speaker 2: not as a recommendation, but as an example. Because they're 287 00:14:31,240 --> 00:14:33,600 Speaker 2: a top performing fund. I feel like everyone's heard of them. 288 00:14:34,040 --> 00:14:37,400 Speaker 2: They are very trusted in our industry, and I think 289 00:14:37,440 --> 00:14:40,360 Speaker 2: that because of that, you automatically assume that they must 290 00:14:40,360 --> 00:14:43,000 Speaker 2: be a little bit fuddy duddy. But the reality is 291 00:14:43,200 --> 00:14:46,920 Speaker 2: inside Australian Super, yes, you can pick your investment strategy 292 00:14:47,000 --> 00:14:49,040 Speaker 2: and you can pick it and tailor it to your 293 00:14:49,120 --> 00:14:51,760 Speaker 2: risk profile, which if you haven't is a reminder to 294 00:14:51,800 --> 00:14:53,840 Speaker 2: please log in and make sure you know what those 295 00:14:53,880 --> 00:14:56,600 Speaker 2: things are. But they also allow you to take some 296 00:14:56,720 --> 00:14:59,320 Speaker 2: of the money inside your superannuation and pick an ETF 297 00:14:59,360 --> 00:15:02,240 Speaker 2: that you like, so you can actually have so much 298 00:15:02,320 --> 00:15:06,680 Speaker 2: control and allow that portfolio to reflect your values. And 299 00:15:06,760 --> 00:15:08,600 Speaker 2: if you don't know that, you don't know, and you 300 00:15:08,680 --> 00:15:11,360 Speaker 2: might think that the only way to have ultimate control 301 00:15:11,800 --> 00:15:14,320 Speaker 2: is to take it all out and have it in 302 00:15:14,320 --> 00:15:17,040 Speaker 2: your own fund. But the reality is you can control 303 00:15:17,120 --> 00:15:20,320 Speaker 2: so much. And if Australian super is not for you, 304 00:15:20,320 --> 00:15:22,960 Speaker 2: maybe you want an all women super fund or you 305 00:15:23,000 --> 00:15:25,520 Speaker 2: want to invest in something completely different, like there's a 306 00:15:25,560 --> 00:15:30,040 Speaker 2: super fund for everyone nowadays. Yeah, definitely find a company 307 00:15:30,120 --> 00:15:32,560 Speaker 2: that aligns with your values if that's what you're looking 308 00:15:32,560 --> 00:15:34,400 Speaker 2: for before you jump into well, I have to have 309 00:15:34,480 --> 00:15:36,760 Speaker 2: ultimate control and it must be all on my shoulders. 310 00:15:36,840 --> 00:15:39,240 Speaker 4: Right, Yeah, that's so true. Actually I did jump into 311 00:15:39,240 --> 00:15:41,480 Speaker 4: mind and I kind of like move my investments around 312 00:15:41,600 --> 00:15:45,640 Speaker 4: or like mine, this feels like I'm fully you go 313 00:15:45,720 --> 00:15:47,200 Speaker 4: in and check it, and it's like I feel in 314 00:15:47,240 --> 00:15:49,160 Speaker 4: control of this. So it does sound like a much 315 00:15:49,200 --> 00:15:51,320 Speaker 4: simpler option for most of us. And I love that 316 00:15:51,360 --> 00:15:53,240 Speaker 4: you can still like kind of take charge that needing 317 00:15:53,240 --> 00:15:55,440 Speaker 4: to be a super fun manager yourself. 318 00:15:55,720 --> 00:15:59,280 Speaker 2: And I mean, would you call a super fun manager 319 00:15:59,360 --> 00:16:02,120 Speaker 2: to fix your taps if they were broken? Beck, No, 320 00:16:02,240 --> 00:16:05,240 Speaker 2: I'd call a plumber. Like I want somebody who is 321 00:16:05,280 --> 00:16:10,200 Speaker 2: an expert running the show. And given it's so affordable 322 00:16:10,280 --> 00:16:12,880 Speaker 2: to do, so, why aren't you just getting the expert involved? 323 00:16:13,200 --> 00:16:13,400 Speaker 1: Right? 324 00:16:13,480 --> 00:16:15,200 Speaker 2: They know what they're doing, they know what they're doing 325 00:16:15,320 --> 00:16:18,080 Speaker 2: and like it's the plumber that has a leaky tap. 326 00:16:18,200 --> 00:16:19,800 Speaker 2: So like I knew that if I ever set up 327 00:16:19,800 --> 00:16:22,520 Speaker 2: an SMSF myself, I'd probably let it go by the wayside, 328 00:16:22,600 --> 00:16:24,400 Speaker 2: not do the right thing by it, not check everything 329 00:16:24,600 --> 00:16:28,160 Speaker 2: because I'm so busy getting in everybody else's business. Don't 330 00:16:28,200 --> 00:16:30,160 Speaker 2: they say the plumber always has a leaky tap, like 331 00:16:30,440 --> 00:16:33,680 Speaker 2: I don't know? So true. We are all about actionable 332 00:16:33,720 --> 00:16:35,320 Speaker 2: tips here at Cheese on the Money, and we're going 333 00:16:35,400 --> 00:16:37,480 Speaker 2: to take a really quick break and when we come back, 334 00:16:37,560 --> 00:16:39,320 Speaker 2: we're going to give you the lowdown on how you 335 00:16:39,360 --> 00:16:42,880 Speaker 2: can manage your super within your super fund. So don't 336 00:16:42,880 --> 00:16:43,680 Speaker 2: go anywhere. 337 00:16:47,960 --> 00:16:50,680 Speaker 4: Welcome back everyone. So V, what are the steps our 338 00:16:50,760 --> 00:16:52,680 Speaker 4: listeners can take to stay in control of their super 339 00:16:52,800 --> 00:16:55,240 Speaker 4: without getting sucked into the SMSF hype. 340 00:16:55,320 --> 00:16:57,320 Speaker 2: So first things, Verse Beck, I don't think that you'll 341 00:16:57,320 --> 00:16:59,800 Speaker 2: be surprised. I want to talk about why it's important 342 00:17:00,240 --> 00:17:02,920 Speaker 2: firstly be in control of your super, but secondly the 343 00:17:03,080 --> 00:17:06,080 Speaker 2: importance of being in control of your super, especially as 344 00:17:06,080 --> 00:17:11,200 Speaker 2: a woman. Here's the thing. On average, Australian women retire 345 00:17:11,359 --> 00:17:16,000 Speaker 2: with twenty eight percent less superanuation than their male counterparts. 346 00:17:16,480 --> 00:17:19,119 Speaker 2: And while that is not fair, and a lot of 347 00:17:19,200 --> 00:17:22,640 Speaker 2: people could have some arguments about you know, oh my gosh, 348 00:17:22,680 --> 00:17:25,560 Speaker 2: like the gap doesn't exist. I will cut you, like, 349 00:17:25,720 --> 00:17:29,920 Speaker 2: I'm so done with that conversation because the gap exists 350 00:17:29,960 --> 00:17:33,120 Speaker 2: and I can prove it, and it's usually ignorance and 351 00:17:33,160 --> 00:17:37,320 Speaker 2: people being literally rude. Like if somebody puts their hand 352 00:17:37,400 --> 00:17:41,240 Speaker 2: up back and says I'm experiencing disadvantage, do you go no, 353 00:17:41,280 --> 00:17:43,720 Speaker 2: you not sit down? Yeah, like what why aren't we 354 00:17:43,760 --> 00:17:47,920 Speaker 2: getting behind it? Like I would much prefer to be like, oh, okay, 355 00:17:47,960 --> 00:17:50,240 Speaker 2: maybe this conversation isn't for me. I'm gonna dip out, 356 00:17:50,240 --> 00:17:54,760 Speaker 2: but let everybody else have a platform to share their thoughts, feelings, 357 00:17:54,800 --> 00:17:57,560 Speaker 2: beliefs and values. Absolutely because no one's. 358 00:17:57,440 --> 00:17:59,480 Speaker 4: Experience is exact same as yours. And if it was, 359 00:17:59,520 --> 00:18:00,800 Speaker 4: and everyone will be like you. 360 00:18:00,760 --> 00:18:02,720 Speaker 2: Do you know what kills me the most? Beck complete 361 00:18:02,720 --> 00:18:05,880 Speaker 2: side note again, and like this is me just calling 362 00:18:05,960 --> 00:18:08,919 Speaker 2: people in my DMS out. I cannot stand when a 363 00:18:09,000 --> 00:18:12,120 Speaker 2: woman of all people messages mean says well, I don't 364 00:18:12,160 --> 00:18:15,000 Speaker 2: think this gender gap is real. I've literally not experienced it. 365 00:18:16,040 --> 00:18:19,119 Speaker 2: That's not the same for everyone survivors bias. 366 00:18:19,600 --> 00:18:21,560 Speaker 4: Yeah, and also like it might not be true they 367 00:18:21,640 --> 00:18:23,920 Speaker 4: might not know that they could be being paid more 368 00:18:23,960 --> 00:18:25,360 Speaker 4: even though they're being paid but. 369 00:18:25,359 --> 00:18:28,199 Speaker 2: Like, even if they're like, oh, it's completely transparent, Like 370 00:18:28,320 --> 00:18:31,000 Speaker 2: I am on the same salary as all of my 371 00:18:31,080 --> 00:18:33,800 Speaker 2: male counterparts, and I have been since the day I 372 00:18:33,880 --> 00:18:39,159 Speaker 2: graduated complete TRANSPARENCYV. Your argument is flawed. Why do you 373 00:18:39,200 --> 00:18:43,800 Speaker 2: think that your experience means that everybody's experience is reflective 374 00:18:43,840 --> 00:18:46,679 Speaker 2: of that? It actually drives me insane to think that 375 00:18:46,720 --> 00:18:50,199 Speaker 2: you are so naive that you think because your experience was, 376 00:18:50,240 --> 00:18:53,560 Speaker 2: yours must be the same for everybody else. Totally, It's 377 00:18:53,600 --> 00:18:55,840 Speaker 2: how dull would the world be if that were true? 378 00:18:55,840 --> 00:18:58,640 Speaker 4: If that were true, and also, where did this conversation 379 00:18:58,800 --> 00:18:59,200 Speaker 4: come from? 380 00:18:59,200 --> 00:18:59,280 Speaker 1: Then? 381 00:18:59,320 --> 00:19:00,919 Speaker 4: If it doesn't exists, there. 382 00:19:00,800 --> 00:19:03,440 Speaker 2: Are a lot better things to advocate for, yes than 383 00:19:03,560 --> 00:19:04,639 Speaker 2: closing a gap. 384 00:19:04,960 --> 00:19:06,000 Speaker 4: Yes, Like I. 385 00:19:05,920 --> 00:19:08,959 Speaker 2: Am saying here, I just want the same thing and 386 00:19:09,000 --> 00:19:12,760 Speaker 2: the same opportunities that are extended to my male colleagues. 387 00:19:12,920 --> 00:19:15,600 Speaker 2: I'm not saying I want more or better, like Beck. 388 00:19:15,720 --> 00:19:17,840 Speaker 2: If this didn't exist, there is a whole heap of 389 00:19:17,840 --> 00:19:20,040 Speaker 2: stuff I could be like, oh my gosh, women, we 390 00:19:20,119 --> 00:19:22,840 Speaker 2: need like three days off a week, Like I could 391 00:19:22,880 --> 00:19:24,800 Speaker 2: find some stuff to come up with and a pretty 392 00:19:24,840 --> 00:19:28,000 Speaker 2: convincing argument, but like closing a gap and asking for 393 00:19:28,040 --> 00:19:31,280 Speaker 2: equality bare minimum, the gap isn't because we're bad at 394 00:19:31,280 --> 00:19:34,840 Speaker 2: managing money. It's mostly due to things like career breaks 395 00:19:34,880 --> 00:19:39,159 Speaker 2: and having kids or unsurprisingly being paid less in the 396 00:19:39,160 --> 00:19:43,040 Speaker 2: first place. And basically we see it here at Choose 397 00:19:43,080 --> 00:19:45,640 Speaker 2: on the Money as the hidden tax that we pay 398 00:19:45,880 --> 00:19:48,879 Speaker 2: just for being women. What a privileged But we don't 399 00:19:48,920 --> 00:19:51,080 Speaker 2: have to let it stay that way, right, So I've 400 00:19:51,080 --> 00:19:53,960 Speaker 2: got a few steps of how we can take back 401 00:19:54,040 --> 00:19:56,639 Speaker 2: our power when it comes to our superannuation. And the 402 00:19:56,680 --> 00:20:00,240 Speaker 2: first is I want you to check your superbalance. Do 403 00:20:00,280 --> 00:20:02,880 Speaker 2: you know what is in your superannuation today? I think, 404 00:20:02,920 --> 00:20:05,359 Speaker 2: don't have to tell me the amount, sure, but do 405 00:20:05,400 --> 00:20:07,920 Speaker 2: you know? I think so that is good And most 406 00:20:07,960 --> 00:20:12,240 Speaker 2: people in our community would be like, oh yes, maybe no, 407 00:20:12,960 --> 00:20:15,520 Speaker 2: Like if you're erring on the side of caution, babe, 408 00:20:15,520 --> 00:20:18,000 Speaker 2: it's time to log into your superfund and just check. 409 00:20:18,240 --> 00:20:20,560 Speaker 2: Just check it. It will take five minutes and you 410 00:20:20,600 --> 00:20:23,920 Speaker 2: will be a lot more financially literate. There is research 411 00:20:23,960 --> 00:20:27,199 Speaker 2: out there that says when we know our numbers, we 412 00:20:27,440 --> 00:20:30,159 Speaker 2: are I think it's like eighty two percent more likely 413 00:20:30,480 --> 00:20:34,000 Speaker 2: to achieve financial security than when we don't know our numbers. 414 00:20:34,400 --> 00:20:36,920 Speaker 2: That's very true, and that is just you knowing, not 415 00:20:37,119 --> 00:20:39,520 Speaker 2: actually about doing anything or saving anything. We haven't even 416 00:20:39,560 --> 00:20:41,439 Speaker 2: got to the part where I make you take actual action. 417 00:20:41,960 --> 00:20:44,159 Speaker 2: Most of us don't check regularly, and I want this 418 00:20:44,240 --> 00:20:49,120 Speaker 2: to become part of your financial hygiene checklist. I want 419 00:20:49,160 --> 00:20:51,400 Speaker 2: you to do it at least every quarter. Knowing your 420 00:20:51,400 --> 00:20:53,760 Speaker 2: balance and how it's performing is going to put you 421 00:20:53,800 --> 00:20:56,240 Speaker 2: in the best possible position. Do you need to be 422 00:20:56,320 --> 00:20:58,919 Speaker 2: considering a different fund? The next is I want you 423 00:20:58,960 --> 00:21:02,320 Speaker 2: to review your funds, fees and the performance that your 424 00:21:02,359 --> 00:21:03,080 Speaker 2: fund has. 425 00:21:03,080 --> 00:21:05,320 Speaker 4: Perfect Now, just really quickly on fees. I do want 426 00:21:05,320 --> 00:21:09,080 Speaker 4: to know. I understand why superannuation companies charge fees. 427 00:21:09,280 --> 00:21:11,440 Speaker 2: Yeah, but I'm struggling. 428 00:21:10,880 --> 00:21:13,239 Speaker 4: To find where fees come from. If you're managing your 429 00:21:13,240 --> 00:21:14,160 Speaker 4: superfund yourself. 430 00:21:14,320 --> 00:21:16,760 Speaker 2: It's a good question, to be honest, and that comes 431 00:21:16,800 --> 00:21:19,639 Speaker 2: from all of the external support that you need. Okay, 432 00:21:19,800 --> 00:21:23,159 Speaker 2: So where does the SMSF come from? In the first place, 433 00:21:23,240 --> 00:21:26,280 Speaker 2: it needs to be established by an accountant, So setting 434 00:21:26,480 --> 00:21:30,719 Speaker 2: up the structure, registering it with the ATO and ASSIC 435 00:21:30,880 --> 00:21:34,040 Speaker 2: is going to cost you money. So getting that fund, 436 00:21:34,040 --> 00:21:36,119 Speaker 2: it's kind of like setting up a trust. As we 437 00:21:36,160 --> 00:21:39,160 Speaker 2: said before. I think I referred to an SMSF being 438 00:21:39,200 --> 00:21:41,399 Speaker 2: like a small business. It's like a small business cost. 439 00:21:41,600 --> 00:21:43,760 Speaker 2: So you need to register your small business. You need 440 00:21:43,800 --> 00:21:45,960 Speaker 2: to register your SMSF. You're going to need to have 441 00:21:46,040 --> 00:21:49,439 Speaker 2: an accountant. Legally, if you're a small business back you 442 00:21:49,440 --> 00:21:51,560 Speaker 2: could go, but I'm going to do the accounting myself. 443 00:21:51,920 --> 00:21:55,040 Speaker 2: That makes sense, But in an SMSF you actually can't. 444 00:21:55,119 --> 00:21:58,680 Speaker 2: You need an external auditor to perform an audit each 445 00:21:58,720 --> 00:22:01,280 Speaker 2: and every single year, and that audit beck can be 446 00:22:01,400 --> 00:22:05,240 Speaker 2: anywhere from three to eight thousand dollars. Oh, I see, 447 00:22:05,280 --> 00:22:08,320 Speaker 2: So that's what I'm talking about. When it comes to fees. 448 00:22:08,359 --> 00:22:10,720 Speaker 2: It's not oh, you're going to save so much because 449 00:22:10,760 --> 00:22:13,800 Speaker 2: you don't have the underlying management fee, like there might 450 00:22:13,840 --> 00:22:16,720 Speaker 2: be underlying management fees that then sit inside your super 451 00:22:16,760 --> 00:22:18,560 Speaker 2: as well, because what would happen is, let's just get 452 00:22:18,600 --> 00:22:20,720 Speaker 2: the laundry list going. You've got to register it to 453 00:22:20,720 --> 00:22:23,800 Speaker 2: begin with, so charge there. You've got to pay for 454 00:22:23,840 --> 00:22:28,080 Speaker 2: your annual audit every year. Great, are you an investing wizard? Like, 455 00:22:28,160 --> 00:22:30,960 Speaker 2: let's be honest, let's pretend you're following assex rules. You 456 00:22:31,000 --> 00:22:33,479 Speaker 2: had a minimum of five hundred thousand dollars in your 457 00:22:33,480 --> 00:22:36,919 Speaker 2: super before you decided to go and get an SMSF fantastic. 458 00:22:37,119 --> 00:22:39,199 Speaker 2: You've got five hundred grand to invest? How are you 459 00:22:39,240 --> 00:22:42,240 Speaker 2: investing it? Are you going to go see a financial advisor? 460 00:22:42,320 --> 00:22:46,400 Speaker 2: Maybe you do right. Financial advice fees in Australia sit 461 00:22:46,440 --> 00:22:49,600 Speaker 2: between three and ten thousand dollars each and every single year, 462 00:22:50,200 --> 00:22:52,159 Speaker 2: So you've got to pay for that. You've got to 463 00:22:52,200 --> 00:22:55,520 Speaker 2: pay ongoing management fees for that financial advisor you for 464 00:22:55,520 --> 00:22:58,360 Speaker 2: you're using them if you're smarter than the average financial 465 00:22:58,440 --> 00:23:00,640 Speaker 2: advisor and you're like, well vo and a manage it myself. 466 00:23:00,800 --> 00:23:03,400 Speaker 2: If you buy ETFs, you're going to have the underlying 467 00:23:03,440 --> 00:23:06,959 Speaker 2: fees for owning that ETF. If you're buying direct shares, 468 00:23:07,000 --> 00:23:10,679 Speaker 2: you're going to have underlying fees for brokerage and ongoing 469 00:23:10,720 --> 00:23:11,720 Speaker 2: platform support. 470 00:23:12,359 --> 00:23:14,920 Speaker 4: Truly only up it does. And that's where I. 471 00:23:14,920 --> 00:23:17,840 Speaker 2: Go, like, this isn't as easy as you think it is. 472 00:23:18,200 --> 00:23:20,600 Speaker 2: And all of these fees might slip through the cracks, 473 00:23:20,600 --> 00:23:22,280 Speaker 2: and when I say that, you might not remember they're 474 00:23:22,280 --> 00:23:24,520 Speaker 2: there because like brokerage might happen and you go, well, 475 00:23:24,520 --> 00:23:27,040 Speaker 2: I paid fifty bucks in brokerage to make that transaction. 476 00:23:27,280 --> 00:23:29,639 Speaker 2: You've already forgotten about it. You haven't accounted for it. 477 00:23:29,720 --> 00:23:32,480 Speaker 2: Like these things over time add up. So we want 478 00:23:32,520 --> 00:23:34,399 Speaker 2: to make sure that we're making the right decision. And 479 00:23:34,440 --> 00:23:37,719 Speaker 2: when we say I want you to review your fees 480 00:23:37,760 --> 00:23:41,040 Speaker 2: for your currency branuation, I want you to look at 481 00:23:41,200 --> 00:23:45,320 Speaker 2: retail and industry funds, check the fees, check the investment returns, 482 00:23:45,400 --> 00:23:47,320 Speaker 2: and have a look at what am I getting the 483 00:23:47,440 --> 00:23:49,919 Speaker 2: level of control that I want to make sure that 484 00:23:49,960 --> 00:23:52,359 Speaker 2: you're in the right account because their fees are going 485 00:23:52,359 --> 00:23:54,040 Speaker 2: to be a lot cleaner. And I'm not saying they're 486 00:23:54,040 --> 00:23:56,920 Speaker 2: better or worse, but just a lot cleaner to review, yeah, 487 00:23:56,920 --> 00:24:00,000 Speaker 2: because they're going to go down the bottom of your sheet. Basically, 488 00:24:00,240 --> 00:24:02,720 Speaker 2: you're paying this amount in fees, this amount of insurance, 489 00:24:02,720 --> 00:24:05,520 Speaker 2: and this amount in management because more often than not, 490 00:24:06,200 --> 00:24:11,800 Speaker 2: if that superannuation fund invests in a Vanguard ETF for example, 491 00:24:12,400 --> 00:24:14,919 Speaker 2: they are going to pass that management fee onto you. 492 00:24:15,280 --> 00:24:18,360 Speaker 2: So if Vanguard charges zero point eight percent, you are 493 00:24:18,359 --> 00:24:19,960 Speaker 2: going to pay that point eight percent, But then you're 494 00:24:19,960 --> 00:24:22,080 Speaker 2: also going to pay your super fund fees for them 495 00:24:22,119 --> 00:24:24,320 Speaker 2: to manage that for you. So I don't think it's 496 00:24:24,320 --> 00:24:26,880 Speaker 2: a way of money you're paying someone to make sure 497 00:24:26,920 --> 00:24:29,760 Speaker 2: that you're getting good returns money. In the next thing 498 00:24:29,800 --> 00:24:32,160 Speaker 2: I want you to do, Beck, how many super funds 499 00:24:32,200 --> 00:24:32,520 Speaker 2: do you have? 500 00:24:33,280 --> 00:24:34,720 Speaker 4: You might be shocked by this, but I used to 501 00:24:34,720 --> 00:24:35,840 Speaker 4: have like four. Now I have one. 502 00:24:35,960 --> 00:24:38,320 Speaker 2: So you've console a day they're ready. That is the 503 00:24:38,359 --> 00:24:42,479 Speaker 2: next hot tip. According to the ATO, about a quarter 504 00:24:42,520 --> 00:24:45,679 Speaker 2: of super fund holders actually have multiple accounts, So that 505 00:24:45,760 --> 00:24:48,440 Speaker 2: means basically twenty five percent of people listening right now 506 00:24:48,680 --> 00:24:51,960 Speaker 2: have multiple super funds and they are paying multiple sets 507 00:24:51,960 --> 00:24:54,040 Speaker 2: of fees. So we just talked about fees and how 508 00:24:54,040 --> 00:24:56,000 Speaker 2: they can add up. Imagine if you had to pay 509 00:24:56,080 --> 00:24:59,200 Speaker 2: double Beck while you're there. Also, can you please check 510 00:24:59,200 --> 00:25:03,080 Speaker 2: if you have any claimed super so sometimes and this 511 00:25:03,160 --> 00:25:06,359 Speaker 2: is more historical because now we are better at data matching, 512 00:25:06,560 --> 00:25:10,800 Speaker 2: but there's about eighteen billion dollars right now sitting Beck, 513 00:25:11,119 --> 00:25:14,440 Speaker 2: Oh my god, in an account that the ATO manages, 514 00:25:14,680 --> 00:25:17,640 Speaker 2: and it's lost in unclaimed superannuation that people haven't gone 515 00:25:17,680 --> 00:25:20,359 Speaker 2: and picked up. How do you find that online? So 516 00:25:20,440 --> 00:25:23,200 Speaker 2: you need to do some data matching. Three DATO website 517 00:25:23,560 --> 00:25:26,639 Speaker 2: super easy though, because the government actually doesn't want this. 518 00:25:26,720 --> 00:25:28,439 Speaker 2: They can't spend it right, they want to give it 519 00:25:28,440 --> 00:25:28,840 Speaker 2: back to you. 520 00:25:28,920 --> 00:25:29,800 Speaker 4: That's very nice. 521 00:25:29,880 --> 00:25:32,600 Speaker 2: Like yes, but it's also all legality, right, Like it's lost. 522 00:25:32,640 --> 00:25:34,600 Speaker 2: It's kind of gone into lost and Found box and 523 00:25:34,640 --> 00:25:36,680 Speaker 2: you can't just go and raid the lost and Found 524 00:25:36,680 --> 00:25:38,800 Speaker 2: box and take whatever you want. That's theft. So they 525 00:25:38,800 --> 00:25:40,440 Speaker 2: actually want to give it back to you, so they're 526 00:25:40,440 --> 00:25:43,159 Speaker 2: making it as easy as possible. But I would have 527 00:25:43,240 --> 00:25:45,760 Speaker 2: a look at it. I would also urge your parents 528 00:25:45,800 --> 00:25:48,640 Speaker 2: to look at it, because it's more likely that they 529 00:25:48,680 --> 00:25:50,840 Speaker 2: are going to have lost super than you do because 530 00:25:50,920 --> 00:25:52,680 Speaker 2: data matching. You know, you and I are a bit 531 00:25:52,720 --> 00:25:55,639 Speaker 2: younger back then, they might have had different names, they 532 00:25:55,720 --> 00:25:57,960 Speaker 2: might have gotten married, they might have not provided enough 533 00:25:58,000 --> 00:26:00,639 Speaker 2: information on a super fund form for it to become lost. 534 00:26:01,920 --> 00:26:04,120 Speaker 2: So just maybe helping made out. 535 00:26:04,400 --> 00:26:06,720 Speaker 4: Yeah, oh my god, I'm going to Google after this, all. 536 00:26:06,600 --> 00:26:10,040 Speaker 2: Right, please do, And then we're going to assess our 537 00:26:10,080 --> 00:26:13,840 Speaker 2: investment options. Right. So we spoke before about what different 538 00:26:13,880 --> 00:26:16,920 Speaker 2: super funds can do, and it's a lot more powerful 539 00:26:16,960 --> 00:26:19,280 Speaker 2: than it used to be. But most super funds of 540 00:26:19,320 --> 00:26:22,719 Speaker 2: our different investment strategies that you can pick from, and 541 00:26:22,840 --> 00:26:25,360 Speaker 2: often I would say they're labeled like high growth, balanced, 542 00:26:25,440 --> 00:26:28,920 Speaker 2: or conservative, and most of you if you log into 543 00:26:28,960 --> 00:26:31,240 Speaker 2: your super fund and you've done nothing until this point. 544 00:26:31,600 --> 00:26:34,159 Speaker 2: No shame, look at you doing it now. Absolutely, But 545 00:26:34,200 --> 00:26:36,840 Speaker 2: I can almost guarantee that when you go in, you'll 546 00:26:36,840 --> 00:26:40,080 Speaker 2: see that you're in a balanced fund. Nice, okay, right 547 00:26:40,200 --> 00:26:42,760 Speaker 2: in the middle. What does that mean though? It means 548 00:26:42,840 --> 00:26:45,840 Speaker 2: that you probably got your super fund forms when you've 549 00:26:45,840 --> 00:26:48,680 Speaker 2: got your first job or a job that you had 550 00:26:48,680 --> 00:26:50,800 Speaker 2: to sign super funds for, and you're like, I don't 551 00:26:50,840 --> 00:26:53,400 Speaker 2: know what to pick, because if I said, Becky, your conservative, 552 00:26:53,480 --> 00:26:56,400 Speaker 2: you'd be like, no, high growth, Oh that sounds scary. 553 00:26:56,520 --> 00:26:59,080 Speaker 2: Then they're a little box and it says balanced beside it. 554 00:26:59,400 --> 00:27:01,879 Speaker 2: What one are you most comfortable ticking if you don't 555 00:27:02,000 --> 00:27:04,440 Speaker 2: have the financial literacy you deserve to make the best 556 00:27:04,480 --> 00:27:05,320 Speaker 2: decisions for you. 557 00:27:05,359 --> 00:27:06,800 Speaker 4: All balanced for sure, one. 558 00:27:06,720 --> 00:27:09,040 Speaker 2: Hundred percent, And we all did it. All of my 559 00:27:09,200 --> 00:27:11,680 Speaker 2: super funds were balanced at one point. I have since 560 00:27:11,760 --> 00:27:14,359 Speaker 2: changed it. Don't worry. I'm a very high growth investor. 561 00:27:15,000 --> 00:27:17,919 Speaker 2: But most of you are imbalanced because it was the 562 00:27:18,000 --> 00:27:21,320 Speaker 2: safest option at the time. But I can almost guarantee 563 00:27:21,640 --> 00:27:24,280 Speaker 2: that if we went and did a risk profile, which 564 00:27:24,320 --> 00:27:27,240 Speaker 2: we have done an entire episode on for the community, 565 00:27:27,359 --> 00:27:29,760 Speaker 2: So go and we'll put the information in the show notes. 566 00:27:29,840 --> 00:27:32,280 Speaker 2: But there is an entire episode on how to work 567 00:27:32,320 --> 00:27:35,399 Speaker 2: out what your risk profile is. I can almost guarantee 568 00:27:35,920 --> 00:27:38,000 Speaker 2: because of age and a few other factors, and the 569 00:27:38,040 --> 00:27:40,080 Speaker 2: fact that people are in the shees on the money community. 570 00:27:40,640 --> 00:27:43,879 Speaker 2: They're not balanced investors. They're probably growth or high growth. 571 00:27:44,119 --> 00:27:46,640 Speaker 2: They want more out of their money than just sitting 572 00:27:46,760 --> 00:27:48,720 Speaker 2: a lot of it in cash. Yeah, okay, so do 573 00:27:48,760 --> 00:27:49,800 Speaker 2: you know how much that costs you? 574 00:27:49,920 --> 00:27:50,080 Speaker 3: Though? 575 00:27:50,119 --> 00:27:51,600 Speaker 4: To check? How much? 576 00:27:51,680 --> 00:27:54,280 Speaker 2: Nothing? It's free? Oh my god. So you can go 577 00:27:54,359 --> 00:27:56,359 Speaker 2: and do this and put future you in the best 578 00:27:56,400 --> 00:28:00,440 Speaker 2: possible financial position. And you could spend some money on 579 00:28:00,480 --> 00:28:03,040 Speaker 2: a coffee and be like, but that coffee and did 580 00:28:03,040 --> 00:28:03,840 Speaker 2: a lot for future me. 581 00:28:04,200 --> 00:28:07,399 Speaker 4: Yes, that's so true, exactly right. Okay. My next question 582 00:28:07,440 --> 00:28:09,520 Speaker 4: B is how do you know how much you'll need 583 00:28:09,560 --> 00:28:10,960 Speaker 4: in your super and how do you get there? 584 00:28:11,040 --> 00:28:11,080 Speaker 1: Like? 585 00:28:11,160 --> 00:28:12,880 Speaker 2: How much cash do you need? How by the time 586 00:28:12,960 --> 00:28:13,520 Speaker 2: you retire? 587 00:28:13,880 --> 00:28:14,560 Speaker 4: Ideally it's a. 588 00:28:14,560 --> 00:28:19,240 Speaker 2: Good question, right. So the AFSA suggests that people will 589 00:28:19,280 --> 00:28:22,359 Speaker 2: need about five hundred and ninety five thousand dollars in 590 00:28:22,440 --> 00:28:26,320 Speaker 2: super savings at the age of sixty seven. Okay, but 591 00:28:26,840 --> 00:28:31,400 Speaker 2: couples need six hundred and ninety thousand dollars combined. It's 592 00:28:31,480 --> 00:28:32,960 Speaker 2: nice to have some clean numbers, right. 593 00:28:33,000 --> 00:28:33,560 Speaker 4: It is nice. 594 00:28:33,560 --> 00:28:35,520 Speaker 2: It's nice to not have somebody turn around and be like, 595 00:28:35,520 --> 00:28:37,119 Speaker 2: oh well, it's up to you and your values and 596 00:28:37,160 --> 00:28:40,520 Speaker 2: your morals. Like at a minimum, the AFSA has recommended 597 00:28:40,600 --> 00:28:43,960 Speaker 2: that single people need about six hundred grand in their account. Sure, 598 00:28:44,120 --> 00:28:46,880 Speaker 2: So working then backwards, we need to work out our 599 00:28:46,920 --> 00:28:49,680 Speaker 2: lifestyle goals. What that looks like. Maybe you want to 600 00:28:49,760 --> 00:28:53,560 Speaker 2: travel around Australia and have some tinnies and you know, 601 00:28:53,680 --> 00:28:56,080 Speaker 2: maybe get an old caravan and have a sick life. 602 00:28:56,520 --> 00:28:58,960 Speaker 2: Or maybe you're like, we'll be Actually, I've been working 603 00:28:58,960 --> 00:29:01,640 Speaker 2: in the background and I want yacht. Those two things 604 00:29:01,680 --> 00:29:04,480 Speaker 2: cost very different amounts of money, and that is okay. 605 00:29:04,760 --> 00:29:07,720 Speaker 2: But that's where we then have to overlay our values 606 00:29:07,760 --> 00:29:09,840 Speaker 2: and what we are trying to achieve. So I know 607 00:29:10,320 --> 00:29:12,200 Speaker 2: that personally that's not going to be enough for me. 608 00:29:12,720 --> 00:29:14,840 Speaker 2: So I need to do a little bit of working backwards. 609 00:29:15,280 --> 00:29:19,880 Speaker 2: And if we work backwards cleanly, I work on about 610 00:29:19,920 --> 00:29:22,720 Speaker 2: five percent, and I work on five percent because it's 611 00:29:22,760 --> 00:29:25,920 Speaker 2: really conservative and I love to underpromise over deliver a 612 00:29:26,000 --> 00:29:30,040 Speaker 2: beck of course, if I say, on average, you withdraw 613 00:29:30,840 --> 00:29:33,960 Speaker 2: five percent from your retirement fund each and every single 614 00:29:34,040 --> 00:29:39,120 Speaker 2: year and you want an income of sixty grand in retirement, 615 00:29:39,520 --> 00:29:42,080 Speaker 2: that would mean that you need an investment portfolio of 616 00:29:42,080 --> 00:29:46,480 Speaker 2: one point two million dollars. WHOA, So you need to 617 00:29:46,520 --> 00:29:49,360 Speaker 2: take everything that the AFSA says with a grain of 618 00:29:49,400 --> 00:29:52,120 Speaker 2: salt because that's on average across Australia. And obviously there's 619 00:29:52,120 --> 00:29:54,080 Speaker 2: people with really high incomes and then there's people on 620 00:29:54,120 --> 00:29:58,480 Speaker 2: lower incomes, and that's all fine. But I would work out, 621 00:29:58,680 --> 00:30:01,000 Speaker 2: you know, out a five percent or downrate, like how 622 00:30:01,040 --> 00:30:03,120 Speaker 2: much do you want If it's sixty grand, you need 623 00:30:03,160 --> 00:30:05,720 Speaker 2: one point two million dollars and do some maths yourself. 624 00:30:05,760 --> 00:30:07,760 Speaker 2: You can just google it if you want to as well, 625 00:30:07,800 --> 00:30:10,680 Speaker 2: and work backwards. If you want eighty grand, it's more like, 626 00:30:11,520 --> 00:30:13,440 Speaker 2: have a look at that. So what do you need 627 00:30:13,480 --> 00:30:16,440 Speaker 2: in super is very different, but how you get there 628 00:30:17,080 --> 00:30:19,640 Speaker 2: is to me the most important part, right, So the 629 00:30:19,680 --> 00:30:22,560 Speaker 2: first thing you want to do is set some goals. 630 00:30:22,840 --> 00:30:25,920 Speaker 2: So working backwards, like you're already contributing to SUPER. And 631 00:30:25,960 --> 00:30:27,840 Speaker 2: I'm going to use you as an example because you 632 00:30:27,840 --> 00:30:31,320 Speaker 2: are a payg employee. So every month you get your 633 00:30:31,360 --> 00:30:34,040 Speaker 2: payslip and on that pay slip it says, beck, here's 634 00:30:34,040 --> 00:30:36,720 Speaker 2: how much cash we put in your bank account, and Beck, 635 00:30:36,840 --> 00:30:40,280 Speaker 2: here's how much cash were put in your superannuation? Sure 636 00:30:40,320 --> 00:30:44,040 Speaker 2: is that amount that is being contributed enough for you? 637 00:30:44,120 --> 00:30:46,600 Speaker 2: Like you did some working backwards? How much did you 638 00:30:46,640 --> 00:30:49,000 Speaker 2: need to contribute each and every single month. I've spoken 639 00:30:49,040 --> 00:30:51,960 Speaker 2: about it on the podcast before. My favorite website is 640 00:30:52,000 --> 00:30:55,120 Speaker 2: the money Smart website, and on that website is a 641 00:30:55,120 --> 00:30:58,680 Speaker 2: compound interest calculator where you can put in the percentage amount, 642 00:30:58,760 --> 00:31:01,040 Speaker 2: you can put in how much your plan on contributing, 643 00:31:01,240 --> 00:31:04,040 Speaker 2: and you can play with the timeline and from that 644 00:31:04,480 --> 00:31:07,240 Speaker 2: you can go, well, if I contributed five hundred dollars 645 00:31:07,320 --> 00:31:09,640 Speaker 2: a month, this is how much I'd have at retirement. 646 00:31:09,920 --> 00:31:12,440 Speaker 2: If I contributed ten dollars a month, this is how 647 00:31:12,480 --> 00:31:14,440 Speaker 2: much extra I would have. You can play with that. 648 00:31:14,760 --> 00:31:16,400 Speaker 2: Does that mean that you need to contribute more to 649 00:31:16,440 --> 00:31:19,480 Speaker 2: super right now? Not necessarily, but it means that you 650 00:31:19,720 --> 00:31:22,920 Speaker 2: know that the contributions that are currently being made are 651 00:31:22,960 --> 00:31:25,320 Speaker 2: either going to help you get to retirement or you 652 00:31:25,400 --> 00:31:28,000 Speaker 2: might need to do some more work. And that's really helpful, 653 00:31:28,280 --> 00:31:30,840 Speaker 2: might be disengaging. You might be like, oh my gosh, 654 00:31:31,040 --> 00:31:33,080 Speaker 2: but isn't it good to know now and we can 655 00:31:33,080 --> 00:31:35,360 Speaker 2: make a plan instead of getting to sixty seven and 656 00:31:35,400 --> 00:31:37,200 Speaker 2: going hey, Bex, so you know how you thought that 657 00:31:37,240 --> 00:31:40,600 Speaker 2: you'd just ret higher? Yeah? No, Umm, I. 658 00:31:40,520 --> 00:31:43,040 Speaker 4: Want to ask really quickly. This is mainly for my mummy, 659 00:31:43,080 --> 00:31:45,280 Speaker 4: who is one of those people that unfortunately didn't know 660 00:31:45,320 --> 00:31:48,000 Speaker 4: about X mom Ibex Mom. Now, I don't imagine she'll 661 00:31:48,000 --> 00:31:51,040 Speaker 4: have much or if anything. Yep, and pensions still exists, right. 662 00:31:51,040 --> 00:31:55,280 Speaker 2: Really good question if you're retiring with not enough superinnuation. Sure, 663 00:31:55,360 --> 00:31:58,200 Speaker 2: the government in Australia is brilliant. There is a pension. 664 00:31:58,480 --> 00:32:00,600 Speaker 2: You can apply for it. There's obviously whole heap of 665 00:32:00,600 --> 00:32:02,800 Speaker 2: poops that you need to get through. You can't obviously 666 00:32:02,840 --> 00:32:05,960 Speaker 2: have a massive investment portfolio, but they're no super They're 667 00:32:05,960 --> 00:32:07,960 Speaker 2: going to look at your assets and they're going to 668 00:32:08,040 --> 00:32:10,800 Speaker 2: work out whether you qualify for it. But it's definitely 669 00:32:10,840 --> 00:32:13,360 Speaker 2: something to look into and I think that that is 670 00:32:13,840 --> 00:32:16,240 Speaker 2: privilege of living in Australia, right, Like I am really 671 00:32:16,280 --> 00:32:19,400 Speaker 2: glad that we support our economy and I'm really glad 672 00:32:19,440 --> 00:32:21,600 Speaker 2: that we support people who are aging. The other thing 673 00:32:21,640 --> 00:32:25,120 Speaker 2: I want to say is superanuation only became mandatory in 674 00:32:25,240 --> 00:32:28,600 Speaker 2: nineteen ninety two. Yes, so when I was born in 675 00:32:28,720 --> 00:32:34,760 Speaker 2: nineteen ninety one, my mom didn't have compulsory subranuation, so 676 00:32:34,960 --> 00:32:39,120 Speaker 2: my mom in her thirties only started earning SUPER. You 677 00:32:39,200 --> 00:32:41,680 Speaker 2: and I and a lot of our community have had 678 00:32:41,720 --> 00:32:43,800 Speaker 2: the pleasure of you know, if I was born in 679 00:32:43,840 --> 00:32:46,760 Speaker 2: ninety one and superannuation was mandatory by nineteen ninety two, 680 00:32:46,840 --> 00:32:49,360 Speaker 2: by the time I was fourteen years old, in nine months, 681 00:32:49,560 --> 00:32:52,160 Speaker 2: I was making supranuation. Yes, so I have a one 682 00:32:52,240 --> 00:32:54,600 Speaker 2: up on my mom. Yes, so I got super from 683 00:32:54,680 --> 00:32:57,400 Speaker 2: fourteen years and nine months. My mom did not, So 684 00:32:57,480 --> 00:32:59,880 Speaker 2: I think that there's also this really big gap in this. 685 00:33:00,000 --> 00:33:06,000 Speaker 2: This is why the biggest demographic of people becoming homeless 686 00:33:07,000 --> 00:33:10,680 Speaker 2: is women in their sixties and seventies. And it makes 687 00:33:10,720 --> 00:33:13,160 Speaker 2: sense because they didn't have a lot of contributions going 688 00:33:13,160 --> 00:33:16,760 Speaker 2: into superannuation. A lot of them are, you know, deciding 689 00:33:16,800 --> 00:33:20,240 Speaker 2: to leave their partners. That's the number one driver behind homelessness. 690 00:33:20,600 --> 00:33:23,080 Speaker 2: It's not they're bad with money, it's not that they 691 00:33:23,280 --> 00:33:25,720 Speaker 2: didn't have good careers or good jobs. It's not because 692 00:33:25,800 --> 00:33:29,560 Speaker 2: they've done the wrong thing. It's actually because they are behind. 693 00:33:29,880 --> 00:33:32,040 Speaker 2: And that breaks my heart. But that's where I kind 694 00:33:32,040 --> 00:33:33,800 Speaker 2: of want to talk about this as well and be 695 00:33:33,920 --> 00:33:35,960 Speaker 2: like okay, cool, Like you mentioned your mum, but also like, 696 00:33:36,040 --> 00:33:39,080 Speaker 2: let's give that community a lot of grace as well, 697 00:33:39,120 --> 00:33:41,920 Speaker 2: because they didn't have the things that we had now. Yes, 698 00:33:42,000 --> 00:33:43,520 Speaker 2: of course, and I know that if I looked at 699 00:33:43,560 --> 00:33:46,520 Speaker 2: your super, Beck, you would have contributions from your entire 700 00:33:46,600 --> 00:33:49,520 Speaker 2: working life, Like you may or may not have dipped 701 00:33:49,520 --> 00:33:52,240 Speaker 2: into it during COVID and that's so fine, but you 702 00:33:52,280 --> 00:33:55,000 Speaker 2: would have been making consistent contributions. And I can almost 703 00:33:55,040 --> 00:33:58,000 Speaker 2: guarantee that you're in a better place right now than 704 00:33:58,120 --> 00:34:01,160 Speaker 2: your mum at her age, And that's point privilege, and 705 00:34:01,160 --> 00:34:03,440 Speaker 2: I wanted to call that out, so I do apologize. 706 00:34:03,640 --> 00:34:07,000 Speaker 2: But then back on track, we were talking about working 707 00:34:07,000 --> 00:34:10,160 Speaker 2: out how much money you need. If you want, you 708 00:34:10,200 --> 00:34:13,279 Speaker 2: can make additional contributions and if it's right for you, 709 00:34:13,320 --> 00:34:15,960 Speaker 2: have a chat to your payroll department about maybe signing 710 00:34:16,000 --> 00:34:19,440 Speaker 2: up some salary sacrificing which means it comes out before tax, 711 00:34:19,760 --> 00:34:22,399 Speaker 2: which is quite sexy. And this allows you to send 712 00:34:22,440 --> 00:34:26,360 Speaker 2: extra money to your superannuation directly from your pay reducing 713 00:34:26,400 --> 00:34:30,560 Speaker 2: your taxable income, which we like to Then also, do 714 00:34:30,600 --> 00:34:33,479 Speaker 2: you know how Beck to make a contribution to your super, 715 00:34:33,680 --> 00:34:35,719 Speaker 2: Like if you say, had an extra fifty bucks and 716 00:34:35,719 --> 00:34:37,080 Speaker 2: you're like, I want to put into my SUPERV Do 717 00:34:37,160 --> 00:34:37,799 Speaker 2: you know how to do that? 718 00:34:38,600 --> 00:34:40,560 Speaker 4: It's pretty easy if you log in. They kind of 719 00:34:40,640 --> 00:34:42,840 Speaker 4: make it very very clear. But I like it that 720 00:34:42,920 --> 00:34:44,480 Speaker 4: if you don't even know where you're super EA is, 721 00:34:44,480 --> 00:34:46,400 Speaker 4: you don't know where to start. I guess like googling 722 00:34:46,640 --> 00:34:48,719 Speaker 4: is the best option. But if you have a better. 723 00:34:48,840 --> 00:34:51,560 Speaker 2: No, you are absolutely correct. So the best place to 724 00:34:51,600 --> 00:34:54,359 Speaker 2: start would be the ATO website because you can log 725 00:34:54,440 --> 00:34:57,160 Speaker 2: in and it will show you where everything is and 726 00:34:57,200 --> 00:34:59,359 Speaker 2: you can go from there. If you've forgotten your member number, 727 00:34:59,440 --> 00:35:02,160 Speaker 2: you can contact the super fund that the ATO says 728 00:35:02,200 --> 00:35:04,520 Speaker 2: you've got money with and go through that process. But 729 00:35:04,560 --> 00:35:07,520 Speaker 2: once you're able to log in and whatnot, transferring post 730 00:35:07,560 --> 00:35:10,000 Speaker 2: taxing gum so whatever is in your bank account, if 731 00:35:10,000 --> 00:35:12,000 Speaker 2: you go, I'd love that to be a super contribution. 732 00:35:12,400 --> 00:35:15,360 Speaker 2: It's a b pay like it is so simple. You 733 00:35:15,360 --> 00:35:18,160 Speaker 2: could even save them as a payee so that if 734 00:35:18,160 --> 00:35:20,400 Speaker 2: you were like, oh, V, I don't really know if 735 00:35:20,880 --> 00:35:25,239 Speaker 2: I'm financially able to contribute more to my super Well, 736 00:35:25,280 --> 00:35:27,160 Speaker 2: why don't you just set yourself up for success? Why 737 00:35:27,160 --> 00:35:29,319 Speaker 2: don't you just add them as a payee on your 738 00:35:29,360 --> 00:35:31,799 Speaker 2: bank account so that if ever you do decide to 739 00:35:31,840 --> 00:35:34,640 Speaker 2: do that. You can then transfer the cash really quickly. 740 00:35:35,160 --> 00:35:36,920 Speaker 2: Keep track of it though, because you'll claim it at 741 00:35:36,960 --> 00:35:38,440 Speaker 2: tax time and you get the tax back on it. 742 00:35:38,480 --> 00:35:40,520 Speaker 4: True, that's a bit of a money with so you 743 00:35:40,560 --> 00:35:42,680 Speaker 4: can claim it it's before tax. You can't claim it. 744 00:35:42,719 --> 00:35:44,400 Speaker 2: Well, you can't claim it because you wouldn't have paid. 745 00:35:44,280 --> 00:35:45,720 Speaker 4: Tax, right, And that makes so much sense. 746 00:35:45,719 --> 00:35:48,479 Speaker 2: We can't claim tax we didn't earn or didn't pay. 747 00:35:49,520 --> 00:35:52,000 Speaker 2: It's a shame. I mean, people have tried, but it's 748 00:35:52,040 --> 00:35:53,800 Speaker 2: not going to work. The last thing I want to 749 00:35:53,800 --> 00:35:55,600 Speaker 2: say here back because I feel like I have yapped 750 00:35:55,640 --> 00:35:57,600 Speaker 2: and the second you let me talk about a topic 751 00:35:57,600 --> 00:36:00,600 Speaker 2: that I'm passionate about, she goes on and on. I 752 00:36:00,600 --> 00:36:04,359 Speaker 2: would consider getting financial advice if you're really worried about this, 753 00:36:04,840 --> 00:36:06,799 Speaker 2: so to make sure that your super aligns with your 754 00:36:06,800 --> 00:36:08,719 Speaker 2: long term goals. If you haven't done all of the 755 00:36:08,760 --> 00:36:10,960 Speaker 2: stuff that I've recommended, like you haven't sat down and 756 00:36:10,960 --> 00:36:12,920 Speaker 2: been like, oh, well, how much should I contribute? Like 757 00:36:13,120 --> 00:36:15,920 Speaker 2: this heaps of free content on superannuation on our podcast. 758 00:36:15,960 --> 00:36:18,799 Speaker 2: There's heaps of free resources floating around the internet. The 759 00:36:18,840 --> 00:36:21,399 Speaker 2: money Smart website is my favorite. But if you're super 760 00:36:21,440 --> 00:36:24,400 Speaker 2: stressed about it, like, get some financial advice and ensure 761 00:36:24,440 --> 00:36:27,000 Speaker 2: that your super aligns with your long term goals. And 762 00:36:27,120 --> 00:36:30,040 Speaker 2: one thing I will say is you can more often 763 00:36:30,080 --> 00:36:33,359 Speaker 2: than not pay for your financial advice out of your superannuation. 764 00:36:33,840 --> 00:36:34,279 Speaker 4: There you go. 765 00:36:34,480 --> 00:36:36,160 Speaker 2: And I'm not saying that you should just pay for 766 00:36:36,200 --> 00:36:38,879 Speaker 2: everything out of your super, but if it's advice that's 767 00:36:38,920 --> 00:36:41,360 Speaker 2: putting you in the best possible position in my head, 768 00:36:41,680 --> 00:36:43,799 Speaker 2: you're investing a portion of that into the advice, so 769 00:36:43,800 --> 00:36:44,920 Speaker 2: you super count go further. 770 00:36:45,280 --> 00:36:47,160 Speaker 4: That's actually a really good idea. I've got a few 771 00:36:47,160 --> 00:36:50,160 Speaker 4: things to share, some got hit your tricks, Okay, but 772 00:36:50,200 --> 00:36:53,479 Speaker 4: I feel like that's probably enough from us, right, Yeah. 773 00:36:53,520 --> 00:36:54,920 Speaker 4: I feel like it's a really good place to leave it. 774 00:36:54,920 --> 00:36:55,800 Speaker 4: Do you feel satisfied? 775 00:36:55,880 --> 00:36:57,600 Speaker 2: Not yet. I really want to yap on and on 776 00:36:57,640 --> 00:36:59,719 Speaker 2: about super but I feel like we should leave it 777 00:36:59,760 --> 00:37:03,440 Speaker 2: there and leave some content for another day. Okay, Yeah, perfect, 778 00:37:03,480 --> 00:37:06,759 Speaker 2: let's do that. Let's go have a little coffee, absolutely, Beck. 779 00:37:06,880 --> 00:37:08,440 Speaker 2: And the last thing I want to leave you with 780 00:37:08,800 --> 00:37:12,120 Speaker 2: is it is not complicated. I promise. Like when you 781 00:37:12,160 --> 00:37:14,480 Speaker 2: log in. Beck said it before, like, oh, my super 782 00:37:14,480 --> 00:37:16,799 Speaker 2: fund's really easy to understand. You just log in. They've 783 00:37:16,800 --> 00:37:20,040 Speaker 2: got everything that you need. Like, it's not hard. It's 784 00:37:20,080 --> 00:37:23,279 Speaker 2: often the mental challenge of just taking a leap and 785 00:37:23,360 --> 00:37:25,799 Speaker 2: actually just getting it done. But I promise future you 786 00:37:25,960 --> 00:37:29,120 Speaker 2: is going to thank you and then stick to the basics. 787 00:37:29,200 --> 00:37:32,279 Speaker 2: So just check your balance, review your fees, maybe consolidate 788 00:37:32,280 --> 00:37:35,560 Speaker 2: your accounts, and choose an investment strategy that aligns with 789 00:37:35,600 --> 00:37:39,400 Speaker 2: your value. So keep it simple, stupid like that kiss methodology. 790 00:37:39,480 --> 00:37:43,279 Speaker 2: I promise will pay dividends. And also while I'm here, 791 00:37:43,360 --> 00:37:45,920 Speaker 2: I'm just going to say, don't forget to hit subscribe 792 00:37:46,000 --> 00:37:47,880 Speaker 2: so that you never miss an episode. And it also 793 00:37:47,920 --> 00:37:51,279 Speaker 2: really helps our show. And it also, I don't know, 794 00:37:51,400 --> 00:37:53,960 Speaker 2: Loki should help with you staying on top of your 795 00:37:53,960 --> 00:37:57,279 Speaker 2: money and making confident financial decisions. So like what a 796 00:37:57,280 --> 00:37:58,040 Speaker 2: better call out? 797 00:37:58,280 --> 00:38:00,839 Speaker 4: Absolutely, that's a great notification. That's why follow me you'd 798 00:38:00,880 --> 00:38:04,200 Speaker 4: be rich. Yes, yes, that's a great motto. I love 799 00:38:04,200 --> 00:38:04,719 Speaker 4: her to follow you. 800 00:38:04,760 --> 00:38:06,440 Speaker 2: All right, thank you, thank you, all right, have a 801 00:38:06,480 --> 00:38:08,320 Speaker 2: good day. We'll catch you on Friday. 802 00:38:08,400 --> 00:38:10,640 Speaker 4: Bye guys. 803 00:38:14,800 --> 00:38:17,320 Speaker 5: The advice shared on She's on the Money is general 804 00:38:17,400 --> 00:38:21,240 Speaker 5: in nature and does not consider your individual circumstances. She's 805 00:38:21,280 --> 00:38:24,760 Speaker 5: on the Money exists purely for educational purposes and should 806 00:38:24,760 --> 00:38:27,960 Speaker 5: not be relied upon to make an investment or financial decision. 807 00:38:28,360 --> 00:38:30,799 Speaker 5: If you do choose to buy a financial product, read 808 00:38:30,800 --> 00:38:34,160 Speaker 5: the PDS TMD and obtain appropriate financial. 809 00:38:33,719 --> 00:38:35,520 Speaker 2: Advice tailored towards your needs. 810 00:38:35,880 --> 00:38:39,840 Speaker 5: Victoria Divine and She's on the Money are authorized representatives 811 00:38:39,880 --> 00:38:43,759 Speaker 5: of money sheirper Pty Ltd ABN three two one IS 812 00:38:43,800 --> 00:38:47,640 Speaker 5: six four nine two seven seven zero eight AFSL four 813 00:38:47,760 --> 00:38:50,400 Speaker 5: five one two eight nine