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Speaker 1: My name's Tatasha Bamblet. I'm a proud First Nations woman

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Speaker 1: and I'm here to acknowledge country t Glennan Ganya, nian

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Speaker 1: Ar Kaka Yahi and beIN a Waka nian our gay

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Speaker 1: in in Bina, yak rum Jar, Domenyama, Domagahawakaman, dam I, Milan,

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Speaker 1: Mumma bang gadaboma in and now in Waka Ghana yakrum

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Speaker 1: Jar water Nadaa. Hello, beautiful friends, we gather on the

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Speaker 1: lands of the Aboriginal people. We thank acknowledge and respect

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Speaker 1: the Aboriginal people's land that we're gathering on today. Take

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Speaker 1: pleasure in all the land and respect all that you see.

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Speaker 1: She's on the Money podcast acknowledges culture, country, community and connections,

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Speaker 1: bringing you the tools, knowledge and resources for you to thrive.

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Speaker 2: She's on the Money. She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the podcast

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Speaker 3: that's here to help you get your finances on track

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Speaker 3: this year. Welcome back to another episode in our summer

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Speaker 3: STARTI series. I wanted to include this specific episode because

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Speaker 3: when people tell me that they want to get their

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Speaker 3: finances on track, the first thing that they say is

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Speaker 3: usually girl friend I don't have any extra money right now,

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Speaker 3: and honestly, in this economy that.

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Speaker 4: Is really fair.

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Speaker 3: Life is so damn expensive. Groceries are wild, rent is wild.

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Speaker 3: Everything honestly feels very wild. But you know, superanuation is

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Speaker 3: one of those rare parts of your finances where you

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Speaker 3: can still put yourself in a better financial position even

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Speaker 3: if you don't have any spare cash sitting around. You're

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Speaker 3: already contributing through your employer. The opportunity here is making

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Speaker 3: sure that that money is actually working as hard as

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Speaker 3: it can for future you. And this episode is all

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Speaker 3: about those zero dollar tweaks, the stuff that you can

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Speaker 3: do by logging in, checking a few settings, and making

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Speaker 3: sure that your super reflects you, your goals.

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Speaker 4: And your timeline.

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Speaker 3: And this is actually part one of a little part

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Speaker 3: two series. So once you've listened to this, I'm actually

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Speaker 3: going to link part two in the show notes so

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Speaker 3: that you can keep going if you want to dive

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Speaker 3: a little bit deeper into superanuation, my friend, If you

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Speaker 3: are feeling behind, overwhelmed, or like retirement is a future

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Speaker 3: you problem, this episode was literally made for you. Super

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Speaker 3: can feel boring, I know, confusing, or even really easy

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Speaker 3: to ignore, but it makes a massive difference over time.

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Speaker 3: I promise, listen to the episode and you'll see two

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Speaker 3: and few to you, my friend, They're going to be

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Speaker 3: very glad that you cared about this today. So let's

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Speaker 3: get into it now. You guys absolutely loved seeing how

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Speaker 3: you're super compared to other Australians, which I think is

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Speaker 3: really fun because I think so many of us we

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Speaker 3: just google it once six years ago and feel a

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Speaker 3: little bit behind and then never think about it again. Yeah,

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Speaker 3: we actually collected the data from our own community over

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Speaker 3: the last twelve months.

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Speaker 4: So I thought that we could just start by sharing that.

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Speaker 3: And I'm really excited about this because I feel like

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Speaker 3: this data is a little bit more gritty, a little

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Speaker 3: bit more comparable to like where.

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Speaker 4: We are as listeners.

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Speaker 3: Like if you think about our average listener and the

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Speaker 3: average person or they're not actually the average Australian, Like

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Speaker 3: the average Australian maybe doesn't care so much about their

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Speaker 3: super doesn't care about finance, is probably not trying to

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Speaker 3: put themselves in the best possible position. So here's a

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Speaker 3: little bit of a snapshot from our shees on the

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Speaker 3: Money community and I've just done by age bands so

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Speaker 3: I've copied what the superannuation companies do so that you

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Speaker 3: could like compare it to your super company if you

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Speaker 3: wanted to later. And we'll obviously use this information to

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Speaker 3: create like a social time so you can go back

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Speaker 3: to it and like see it visually, because it's like

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Speaker 3: not the same as just having it.

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Speaker 4: Read out to you.

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Speaker 3: Right, So, if you're between twenty and twenty four in

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Speaker 3: the She's on the Money community, the average is twenty

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Speaker 3: six thousand dollars, and then the median is twenty two

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Speaker 3: thousand dollars. Yes, So just to quickly talk about why

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Speaker 3: I as a statz nerd. I don't know if everybody

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Speaker 3: knows this, but way back when I was at university,

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Speaker 3: I studied statistics. It's one of my mind is because

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Speaker 3: I am just a really big nerd. I always talk

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Speaker 3: about the average and then the median. I actually think

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Speaker 3: that the median is a better reflection. But most people

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Speaker 3: talk about the average because you go, oh, Vey, what's

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Speaker 3: the average, It's like, well, that's good, But what happens

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Speaker 3: with the averages? You take every single number, So say

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Speaker 3: there's like one hundred people in our sample, there's actually thousands,

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Speaker 3: But say there's one hundred people, you add all of

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Speaker 3: their numbers together and then you divide it by one hundred,

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Speaker 3: so you're getting like the lowest of the low and

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Speaker 3: then the highest of the high. And what happens with

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Speaker 3: that is if we're all similar, probably not a big issue.

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Speaker 3: But if you've got someone who has you know, they're

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Speaker 3: twenty one and they for some reason have a heap

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Speaker 3: of money in their superannuation and they've got millions. And

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Speaker 3: then you also have people who maybe you know, have

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Speaker 3: never worked a day in their life and they're in

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Speaker 3: the sample, so they've got zero dollars. We're taking those

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Speaker 3: numbers into consideration, and if I ask you, do you

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Speaker 3: feel like that's comparable to your situation, I think you

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Speaker 3: go probably not. So the median is the number that

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Speaker 3: just sit smack bang in the middle. So it's not

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Speaker 3: like adding them all together and dividing them. It's going, okay, cool,

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Speaker 3: if there's one hundred people, we're going to fifty, Like

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Speaker 3: what is that fiftieth number? And that is the person

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Speaker 3: that's sitting in the middle of all of that. So

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Speaker 3: they're not the highest of the high, they're not the

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Speaker 3: lowest of the low. That's where a lot of us

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Speaker 3: probably want to see comparable numbers because we go, what's

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Speaker 3: you know, sitting smack bang in the middle. You know,

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Speaker 3: when you think of a bell curve, it's like the

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Speaker 3: bell curve number, it's like the one at the top

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Speaker 3: of that. So often you will see the average is

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Speaker 3: often higher than what the median is. And that's why

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Speaker 3: I like to work off median instead of an average,

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Speaker 3: because I think an average can not be as accurate anyway.

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Speaker 3: That's a little bit of a statistics side note. If

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Speaker 3: you're between the age of twenty five and twenty eight,

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Speaker 3: the average is forty three thousand, and the median is

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Speaker 3: thirty four thousand. Twenty nine and thirty two average is

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Speaker 3: now ninety four thousand, whereas the median is eighty eight thousand,

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Speaker 3: five hundred. Thirty three to thirty seven average is one

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Speaker 3: hundred and seven thousand, and then the median is one

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Speaker 3: hundred and six thousand, So we're actually getting a bit

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Speaker 3: closer with that one, but then it does dive away.

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Speaker 3: At thirty eight to forty one, the average is one

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Speaker 3: hundred and seventy three thousand, five hundred, and the median

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Speaker 3: is one hundred and fifty five thousand, and then between

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Speaker 3: the ages of forty two and forty six, the average

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Speaker 3: is two hundred and thirty thousand, and then the median

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Speaker 3: is two hundred thousand.

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Speaker 4: But can you see why.

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Speaker 3: Yes, I probably would prefer if like comparison is the

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Speaker 3: thief of joy, right, Oh, so, like we need to

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Speaker 3: also say that because here I am being like, here's

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Speaker 3: some numbers to compare yourself to, but also don't compare yourself,

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Speaker 3: Like we want to be on track and we want

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Speaker 3: to feel like we can compare ourselves.

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Speaker 4: But that's where I go.

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Speaker 3: I'd probably be comparing myself to the media and not

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Speaker 3: necessarily the average usually because it's more accurate, but also

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Speaker 3: it makes me feel better about myself.

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Speaker 5: Absolutely, as I'm looking at this, I'm like, Okay, there's

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Speaker 5: some numbers that I think I need to get on

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Speaker 5: top of some things.

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Speaker 4: If you're listening to this and you're.

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Speaker 5: Kind of like, worry, just know that that's why you're

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Speaker 5: here and we can fix this.

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Speaker 3: But like it wasn't that cool, because like the people

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Speaker 3: that are listening to this show, they actually just want

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Speaker 3: better for themselves. Like even if you're like, oh, I

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Speaker 3: don't stuck up at all. Think about all the people

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Speaker 3: that aren't even considering that, and the fact that you

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Speaker 3: have so much time ahead of you to like fix

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Speaker 3: that or put yourself in a different.

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Speaker 4: Position, like what a position to be in?

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Speaker 5: Exactly, you've already maken the right first step.

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Speaker 3: I mean, the hardest thing is to listen to me,

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Speaker 3: so like you're already past.

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Speaker 5: It can confirm, no, just kidding, So what does this

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Speaker 5: tell us?

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Speaker 3: Okay, So when looking at this information for our community specifically,

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Speaker 3: it says that the biggest jump is in your lefe

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Speaker 3: twenties to early thirties, and if you look at it,

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Speaker 3: supernuation balances actually almost double, like they more than double.

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Speaker 3: And this is the magic of compound interest. So you

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Speaker 3: know how, I'm like, oh, it takes time back, Like

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Speaker 3: you know, you've started your shares's account and you're like

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Speaker 3: investing consistently, but you wouldn't have seen it just double.

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Speaker 3: But that starts to kick in after ten ish years.

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Speaker 3: So like compound interest, its power is in the long term.

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Speaker 4: So after ten.

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Speaker 3: Plus years, that's where you really start to see stuff doubling.

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Speaker 3: And if you think about late twenties, you've probably had

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Speaker 3: nearly ten years of really solid contributions late thirties. You know,

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Speaker 3: not all of us were, you know, contributing for the

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Speaker 3: start of our twenties.

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Speaker 4: So that kind of makes sense.

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Speaker 3: Like that data makes sense, and by mid thirties, most

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Speaker 3: people are actually hitting six figures like and that's really

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Speaker 3: normal and that's really exciting. Then in your forties, if

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Speaker 3: we kind of go down the data set a little bit,

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Speaker 3: the gap between average and medium, it really does widen.

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Speaker 3: And I pointed that out when I was reading it out,

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Speaker 3: but that's literally life events. In your forties, that's when

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Speaker 3: we start to see the real impact of you taking

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Speaker 3: a career break because you've had uneven contributions. So whether

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Speaker 3: you took time off for yourself, whether you took time

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Speaker 3: off to have kids, that's when we really start to

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Speaker 3: see the difference.

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Speaker 4: And you saw that gap.

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Speaker 5: Gotch you Okay, God, that's scary. It's really good to

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Speaker 5: see that ease.

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Speaker 3: But like data is telling us a story, and you

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Speaker 3: know what we can do with stories.

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Speaker 5: Learn from that absolutely, and this is why soups putting

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Speaker 5: is so important. But that's a story.

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Speaker 3: That's another conversation and a whole other episode where we

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Speaker 3: will do.

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Speaker 5: Okay, so if I want to sort my super which

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Speaker 5: I do. What's the first thing I should be doing.

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Speaker 3: I think I've said it on the show before, and

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Speaker 3: it's not the sexiest way of putting it, but like

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Speaker 3: we're going to do a hygiene check. Ye, like we're

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Speaker 3: just going to clean house, right, So that hygiene check

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Speaker 3: means we log into our superannuation account.

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Speaker 4: I want you to know your balance.

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Speaker 3: I want you to know how many fees you're paying

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Speaker 3: and whether you're comfortable with that.

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Speaker 4: I want you to have a look at whether you

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Speaker 4: have insurance or not.

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Speaker 3: And if you don't think about getting it, I cannot,

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Speaker 3: Like I cannot drive home the importance of insurances. Don't

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Speaker 3: get me wrong, it's going to look different for everybody.

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Speaker 3: If you're in your early twenties and you're still lucky

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Speaker 3: enough to live at home, you don't have any debts,

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Speaker 3: you probably don't need a lot of insurance. But if

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Speaker 3: you're like me, and you know, I'm thirty four, that's terrifying,

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Speaker 3: and I have a kid, and I have a husband

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Speaker 3: and have a mortgage. If I wasn't here anymore, I've

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Speaker 3: just lumped a whole heap of responsibility on someone who

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Speaker 3: can't pay for that right, So we want to make

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Speaker 3: sure that that's okay. And then the last thing I

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Speaker 3: want you to look at in your subernuation account is

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Speaker 3: your portfolio type.

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Speaker 4: So what's your risk appetite?

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Speaker 3: Are you in a balanced fund? Are you in a

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Speaker 3: high growth fund? Are you in a conservative fund? If so,

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Speaker 3: why have you done their questionnaire? Have you looked at

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Speaker 3: how much impact that can have over the long term

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Speaker 3: of not doing it? Because this is going to give

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Speaker 3: you a really good idea of just or are you

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Speaker 3: starting from? Because like how many of us just have

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Speaker 3: our heads in the sand about super Maybe you know

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Speaker 3: the number because you recently did your tax return, but

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Speaker 3: a lot of us also have no idea.

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Speaker 5: Yes, that's so true. So once we familiarize ourselves with

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Speaker 5: the numbers, what do we do next?

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Speaker 4: All right?

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Speaker 3: So what I want you to do and I have

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Speaker 3: mentioned this tool a number of times on our show before,

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Speaker 3: but I want you to use your super Comparison tool,

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Speaker 3: which is a free tool provided by the Australian government.

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Speaker 3: So it's like not bias, it's not built by a

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Speaker 3: super company, like they're not trying to sell you anything.

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Speaker 3: It's just going to do the job right and to

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Speaker 3: get to it. You go to MyGov, you go to

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Speaker 3: the ATO portal, you click super and it will.

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Speaker 4: Take you through to your super comparison tool.

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Speaker 3: You can also just Google it, but personally I like

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Speaker 3: going through the mygove platform because it means you would

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Speaker 3: have had to see what your balance was to begin with.

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Speaker 4: I'd avoid it.

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Speaker 3: And then this tool is going to line up all

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Speaker 3: the my super products in the country and it's going

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Speaker 3: to show you a few things.

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Speaker 4: So it's going to show.

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Speaker 3: You the net returns are over five and then over

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Speaker 3: ten years. It's going to are you what you'd have

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Speaker 3: if you'd been in each fund with a fifty k balance.

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Speaker 3: It just like shows you the differences and which funds

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Speaker 3: have failed.

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Speaker 4: The upper performance test.

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Speaker 3: Okay, to me, that's really important because it's kind of

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Speaker 3: like a hygiene factor. Again, Can we just make sure

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Speaker 3: we're not in a fund that failed, like, because then

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Speaker 3: maybe I would be very very interested in changing.

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Speaker 2: Yeah.

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Speaker 3: I can't give you advice and say get out of

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Speaker 3: that fund, because if for some reason aligns with your values,

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Speaker 3: maybe you do you. But like I know that if

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Speaker 3: my fund failed the performance test, I'd be.

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Speaker 5: Out ah ah ah, But no advice to give it

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Speaker 5: just read between the lines. Okay, let's go on a

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Speaker 5: really quick break because it's a lot to take in

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Speaker 5: it is, and we'll dive back in on the food side.

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Speaker 3: All right, we are back back and we are talking

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Speaker 3: all things supernuation, and I feel like I have just

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Speaker 3: yapped and yapped and yapped. And the thing that I

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Speaker 3: like with your super comparison tool is it compares like

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Speaker 3: for like options. Like I don't want you to look

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Speaker 3: at different things that are being put in front of

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Speaker 3: you for marketing purposes. So we know that there are

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Speaker 3: a lot of other comparison websites where if you google

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Speaker 3: like compare the best supers, it's very likely to show

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Speaker 3: you the ones that the superannuation companies are paying for

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Speaker 3: and then not show you the super companies that are

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Speaker 3: doing well but haven't paid for that type of marketing.

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Speaker 3: So don't compare a conservative option either to like a

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Speaker 3: fund with a growth option. So make sure that if

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Speaker 3: you are comparing, we're just doing apples to apples. So

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Speaker 3: that's why you before went and worked out what your

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Speaker 3: risk profile was, because like, let's pretend beck your growth

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Speaker 3: risk profile. Why are we looking at conservative options?

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Speaker 5: Gotcha?

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Speaker 3: Like just filter it by growth, like be like, I

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Speaker 3: know I'm growth, so I'm only going to look at

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Speaker 3: the funds growth options and then I'm going to look

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Speaker 3: at all of the funds and compare their growth options.

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Speaker 3: So I'm getting apples with apples instead of going, oh, well,

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Speaker 3: you know, I compared the Australian super conservative to the

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Speaker 3: UNI super growth, Like what if those aren't actually comparable.

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Speaker 3: They're not on the same page, Like they're for different

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Speaker 3: people and different things. So if you have done your

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Speaker 3: risk profile and you are conservative, we're only looking at

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Speaker 3: conservative options. If you are high growth, we're only looking

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Speaker 3: at high growth options.

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Speaker 4: And do you know what that does?

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Speaker 3: Makes your life six million times easier because less options,

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Speaker 3: less worry.

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Speaker 5: Absolutely statistically six million times easier.

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Speaker 3: So I always throw these things around, like where we

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Speaker 3: talk about growth and conservative, So I would say the

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Speaker 3: most common term in the industry when it comes to

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Speaker 3: risk profile because it's like the default is balanced option.

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Speaker 3: So you might have heard of that before where people go, oh,

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Speaker 3: that's the superanuation balanced option, and that I feel like

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Speaker 3: people are attracted to the word balanced.

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Speaker 5: Yeah feel safe, right, It does feel safe.

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Speaker 3: Yeah, but it might not be reflective of your goals

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Speaker 3: and your values, right, but that typically only holds or

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Speaker 3: I should say holds not only holds, but that holds

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Speaker 3: sixty to seventy percent growth assets.

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Speaker 4: What does that mean?

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Speaker 3: Yeah, okay, if you're pie chart which is one hundred percent,

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Speaker 3: sixty to seventy percent will be shares. The rest will

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Speaker 3: be capital stable assets, which are things like term deposits

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Speaker 3: and cash and bonds.

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Speaker 4: I see, because if.

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Speaker 3: You look at a growth option, that pie chart becomes

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Speaker 3: ninety percent shares, yeah, and then like ten percent more

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Speaker 3: stable assets. And like they're different for every single option,

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Speaker 3: So don't go, oh Victoria said that a growth option

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Speaker 3: would have ninety percent. It's actually different per serrounuation company.

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Speaker 3: So the way that and I'm just using these as

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Speaker 3: examples so that you don't go, what are you talking about?

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Speaker 3: Like if you look at Australian super for example, their

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Speaker 3: percentages in their pie charts are very different to a

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Speaker 3: unisuper or arrest or a host plus. They're like, they're

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Speaker 3: just very different because they all have different methodologies of

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Speaker 3: ascertaining what is like the best breakdown. But on average,

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Speaker 3: I would say growth options like eighty to ninety percent

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Speaker 3: growth assets. Sure, And if that aligns with your values.

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Speaker 3: That's all we looking at.

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Speaker 5: Okay, got you?

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Speaker 3: So, Beck, If you came out as growth and hypothetically

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Speaker 3: your growth, your returns might look higher, but that actually

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Speaker 3: just might be the risk profile, not your fund doing

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Speaker 3: a better job. You might go, oh, well, I came

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Speaker 3: out as conservative, and then all of a sudden, I'm

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Speaker 3: saying better returns in the growth one. Well yeah, you're

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Speaker 3: always always, but like the more risk you take on,

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Speaker 3: the higher the returns.

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Speaker 4: High risk curry war exactly.

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Speaker 3: So usually when you look at it, it might go, oh,

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Speaker 3: like the you know, conservative portfolio is returning six percent

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Speaker 3: on average, you know, the medium growth is returning like

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Speaker 3: seven or eight percent, and then the like high growth

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Speaker 3: is nine or ten percent?

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Speaker 4: You got, but why I want nine or ten?

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Speaker 3: Well, then maybe you need to go back to your

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Speaker 3: risk profile if you don't like the six percent option

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Speaker 3: you came out with, so like.

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Speaker 4: Work out what works for you?

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Speaker 5: Sure, sure, okay, and what next?

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Speaker 3: Okay, so boring, but just understand the fees boring now

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Speaker 3: boring always.

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Speaker 4: Like it was never good.

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Speaker 3: And as a financial advisor I used to have to

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Speaker 3: do this forklient so and I would always be like, look,

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Speaker 3: like I didn't like doing it either, because this isn't

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Speaker 3: the sexy part of like super because I should know

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Speaker 3: about my growth. Oh ees boring, But also on those also,

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Speaker 3: I need you to know what you're paying to make

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Speaker 3: sure that you're not getting stooged. And the reason that

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Speaker 3: we care about these things is because it eats into

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Speaker 3: your growth. So like, if you're paying more for something,

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Speaker 3: you're getting less in return. Or I do say, often

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Speaker 3: pay peanuts, get monkeys. But if you're paying more fees

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Speaker 3: than necessary for the same return as another fund, maybe.

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Speaker 4: You want to switch, right.

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Speaker 3: But also I would say that most of the really

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Speaker 3: big superannuation funds fees are average, Like I don't think

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Speaker 3: I've ever seen one that I'm like, oh my god,

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Speaker 3: Like that's so awful. I would never go with that

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Speaker 3: super company because their fees are astronomical. Right, They're all

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Speaker 3: going to be like semi similar, but I want you

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Speaker 3: to understand them. Right, So every single fund will charge

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Speaker 3: two different types of fees on average, So like, please

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Speaker 3: don't again bucket me, but this is what usually happens

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Speaker 3: in most funds. You've got admin fees and then investment fees,

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Speaker 3: and admin fees cover the administration of your account, and

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Speaker 3: then investment fees are going to be different based during

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Speaker 3: your risk profile, because if you're more risky, we're paying

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Speaker 3: more because we're investing more. If you're more conservative, they're like, well,

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Speaker 3: we're not going to charge you through the no, so

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Speaker 3: something that you're not really using, that's so nice, right,

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Speaker 3: Well yeah, let's pretend it's nice. So an admin fee,

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Speaker 3: I would say, is usually a fixed It's either a

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Speaker 3: weekly or monthly amount is what they will report on.

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Speaker 3: So it might be like your admin fee is a

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Speaker 3: dollar fifty a week, or it might be seventy eight

401
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Speaker 3: dollars a year. And then your investment fees, yes, but

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Speaker 3: also like it just is what it is. An investment

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Speaker 3: fee is usually actually a percentage of your balance. So

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00:18:45,200 --> 00:18:48,080
Speaker 3: you know, if they say, oh, your investment fee, and

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Speaker 3: I would say one of the most common is zero

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Speaker 3: point six percent, you go, well, what's that mean fee?

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Speaker 3: It means if you've got one hundred thousand dollars in

408
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Speaker 3: your cubernuation account, you will pay six hundred dollars each

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Speaker 3: year for an investment fee. Okay, and that would extrapolate

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Speaker 3: out as an ex financial advisor is six percent good bad.

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Speaker 3: I don't really have an opinion, but if it got

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Speaker 3: close to one percent.

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Speaker 4: I would be quite wary. Like the closer to one

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Speaker 4: percent it is, the more I'm like, oh, like, what

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Speaker 4: are you doing to add extra value? Because I'd say six.

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Speaker 3: Percent is pretty normal in the industry, like because people

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Speaker 3: are always like is that good?

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Speaker 4: Is it bad?

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Speaker 3: And I'm like, it's all relative, yeah, based on the

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Speaker 3: value you're getting out of something, right, But people love numbers.

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Speaker 3: So if I said, you know, and you're looking at

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Speaker 3: your investment fees, you might go just as zero point

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Speaker 3: six per cent, what's that even mean? I would say

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Speaker 3: that's pretty average. If it got closer to like a

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Speaker 3: full one percent, I'd be like, oh, what are you

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Speaker 3: paying for? Like that's more of a like very active

427
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Speaker 3: managed fund fee. And these fees you can kind of

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Speaker 3: compare to like an ETF and they would usually be

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Speaker 3: I would say, relatively comparable. And why are they so cheap?

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Speaker 3: Because that's actually cheap for investment. It's because they're doing

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Speaker 3: it on mass, right, Like they're doing it for hundreds

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Speaker 3: of thousands of people in this fund, so they get

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Speaker 3: to charge you a lower price point. If you went

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Speaker 3: to an individual to do that, it would be much

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Speaker 3: much more expensive. Also, in the your super tool, it's

436
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Speaker 3: going to show you a total annual fee, so like

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Speaker 3: that's just the way they report it, but it is

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00:20:20,840 --> 00:20:23,879
Speaker 3: coming from those two fees combined. It will show you

439
00:20:23,880 --> 00:20:26,760
Speaker 3: a total annual fee for that fifty thousand dollars example,

440
00:20:26,880 --> 00:20:28,960
Speaker 3: or that fifty thousand dollars balance, which I think is

441
00:20:28,960 --> 00:20:32,879
Speaker 3: a pretty handy benchmark for each like different fund. And

442
00:20:32,920 --> 00:20:37,680
Speaker 3: then you know, just again for contexts industry funds, I

443
00:20:37,720 --> 00:20:40,160
Speaker 3: would say point six percent is pretty normal, but zero

444
00:20:40,160 --> 00:20:43,320
Speaker 3: point five two point eight I would say is really normal.

445
00:20:43,600 --> 00:20:47,440
Speaker 3: Sure between that, retail funds can be often more than

446
00:20:47,480 --> 00:20:52,600
Speaker 3: one percent, which I would be weary of, and I'm

447
00:20:52,680 --> 00:20:55,560
Speaker 3: consistently wary of because you know, you might go, what's

448
00:20:55,600 --> 00:20:58,440
Speaker 3: the difference between point six percent one percent? Victoria, Well,

449
00:20:58,480 --> 00:21:02,160
Speaker 3: over the long term really comes up thousands of dollars,

450
00:21:02,680 --> 00:21:04,840
Speaker 3: Like it's not. It might be like, you know, we

451
00:21:04,960 --> 00:21:07,800
Speaker 3: just talked about seventy eight dollars a year. You might go, whatever,

452
00:21:07,960 --> 00:21:09,280
Speaker 3: Like it's just coming out of my super I'm not

453
00:21:09,359 --> 00:21:11,399
Speaker 3: even seeing it. But from little things, big things grow,

454
00:21:12,040 --> 00:21:14,080
Speaker 3: I should care about this. If it's over one percent,

455
00:21:14,119 --> 00:21:16,800
Speaker 3: I'm like a bit wary. Yes, I can't give advice,

456
00:21:16,880 --> 00:21:18,480
Speaker 3: but like, if I'm a bit weary.

457
00:21:19,480 --> 00:21:23,720
Speaker 5: Read what are you think? You know exactly exactly shocking question.

458
00:21:24,240 --> 00:21:25,199
Speaker 5: What comes next?

459
00:21:25,359 --> 00:21:27,200
Speaker 3: So the next thing you're going to do is check

460
00:21:27,240 --> 00:21:30,359
Speaker 3: opra's and your performance test. Now you've probably heard of

461
00:21:30,520 --> 00:21:33,480
Speaker 3: UPRA before. I think like that gets thrown around a lot,

462
00:21:33,520 --> 00:21:36,720
Speaker 3: but what the heck is UPRAH. It's the Australian Prudential

463
00:21:36,800 --> 00:21:43,280
Speaker 3: Regulation Authority or does that actually mean though? So they're

464
00:21:43,359 --> 00:21:46,919
Speaker 3: kind of like the big dogs, but they're an independent.

465
00:21:47,200 --> 00:21:51,000
Speaker 3: So they're an independent and they look at banks, credit unions,

466
00:21:51,040 --> 00:21:55,120
Speaker 3: they look at building societies, they look at insurers and

467
00:21:55,560 --> 00:21:59,720
Speaker 3: most members of the superannuation industry and they supervise them.

468
00:22:00,200 --> 00:22:02,560
Speaker 3: So they make sure that they're doing the right things

469
00:22:02,640 --> 00:22:08,080
Speaker 3: and basically ensuring that these institutions they maintain financial soundness

470
00:22:08,359 --> 00:22:10,600
Speaker 3: is what it says on their website. Just making sure

471
00:22:10,680 --> 00:22:13,560
Speaker 3: like if they're making money, it's going to the right places,

472
00:22:14,320 --> 00:22:17,000
Speaker 3: making sure that if they promise their customers something, they

473
00:22:17,040 --> 00:22:20,119
Speaker 3: actually do it. Making sure that you know, they're stable

474
00:22:20,240 --> 00:22:22,520
Speaker 3: and they're actually good for their consumers.

475
00:22:22,880 --> 00:22:25,680
Speaker 4: So APRA is for us. It's not like HR.

476
00:22:25,480 --> 00:22:28,960
Speaker 3: At Work, which is actually right, you know, like a unionization. Yeah,

477
00:22:29,040 --> 00:22:31,520
Speaker 3: UPRA is actually like holding them accountable.

478
00:22:31,640 --> 00:22:31,960
Speaker 5: Cool.

479
00:22:32,000 --> 00:22:36,320
Speaker 3: So every single year OPRA runs like benchmarking tests on

480
00:22:36,480 --> 00:22:40,639
Speaker 3: the mysuperproducts, so they go, all right, comparison time, big job.

481
00:22:40,920 --> 00:22:43,560
Speaker 3: But if your fund fails, they have to write to

482
00:22:43,600 --> 00:22:47,480
Speaker 3: you and say hey, beck, So like they don't apologize,

483
00:22:47,520 --> 00:22:49,960
Speaker 3: which is rude, but they will say, hey, we failed

484
00:22:49,960 --> 00:22:52,520
Speaker 3: the test. So if they fail at one time, it's

485
00:22:52,520 --> 00:22:56,480
Speaker 3: a warning, like an official warning. Two consecutive fails means

486
00:22:56,600 --> 00:22:58,560
Speaker 3: that that fund is not allowed to take on any

487
00:22:58,600 --> 00:22:59,200
Speaker 3: new members.

488
00:22:59,520 --> 00:23:01,280
Speaker 5: Oh how do they? How do you fail?

489
00:23:01,359 --> 00:23:02,320
Speaker 4: Like you just like you.

490
00:23:02,320 --> 00:23:04,920
Speaker 3: Don't meet your requirements, so you don't meet your obligations.

491
00:23:04,920 --> 00:23:06,840
Speaker 3: You don't you're not doing what you said you were

492
00:23:06,840 --> 00:23:12,120
Speaker 3: going to do financially. Sound like I see someone imagine

493
00:23:12,119 --> 00:23:14,480
Speaker 3: if that was on Tinder. Like I just think that

494
00:23:14,600 --> 00:23:17,600
Speaker 3: if people on Bumble could get barred, it would.

495
00:23:17,400 --> 00:23:19,800
Speaker 4: Be a better life. Oh absolutely for everybody.

496
00:23:19,880 --> 00:23:24,159
Speaker 3: Right, And then every single August publishes this full list,

497
00:23:24,400 --> 00:23:26,200
Speaker 3: So like every single August, I'm.

498
00:23:26,040 --> 00:23:27,000
Speaker 5: Really ratten on people.

499
00:23:27,080 --> 00:23:29,200
Speaker 3: Oh yeah, like I'm here for the drama. Like, don't

500
00:23:29,200 --> 00:23:30,920
Speaker 3: get me wrong, I have publicly said.

501
00:23:30,760 --> 00:23:31,720
Speaker 4: Before I'm nosy.

502
00:23:32,240 --> 00:23:34,120
Speaker 3: I want to know, like I need to know did

503
00:23:34,160 --> 00:23:37,520
Speaker 3: you fail if you did judging, and then if your

504
00:23:37,560 --> 00:23:40,600
Speaker 3: fund is underperforming, because that's not very sexy, a short

505
00:23:40,600 --> 00:23:43,800
Speaker 3: list of alternative funds that actually match your risk profile

506
00:23:44,400 --> 00:23:48,480
Speaker 3: and show stronger long term nets is going to be suggested.

507
00:23:48,640 --> 00:23:50,560
Speaker 4: Oh so that's kind of good.

508
00:23:50,600 --> 00:23:51,560
Speaker 5: That's painful.

509
00:23:51,760 --> 00:23:54,960
Speaker 4: Then I want you to do those. Yeah. I cannot

510
00:23:55,040 --> 00:23:57,679
Speaker 4: drive home the importance of insurance. I just can't.

511
00:23:58,119 --> 00:24:00,640
Speaker 3: But before moving, I want you to check your insurance

512
00:24:00,640 --> 00:24:03,639
Speaker 3: cover because sometimes you move and you go, oh, the

513
00:24:03,680 --> 00:24:05,800
Speaker 3: performance is whack. I don't want to be here anymore.

514
00:24:05,920 --> 00:24:08,800
Speaker 3: But you had some really good default insurance. And lots

515
00:24:08,840 --> 00:24:12,480
Speaker 3: of people unknowingly cancel income protection or TPD while they're

516
00:24:12,560 --> 00:24:15,480
Speaker 3: rolling over, and then they lose it because they can't

517
00:24:15,480 --> 00:24:17,120
Speaker 3: get it in their new fund because they don't meet

518
00:24:17,119 --> 00:24:20,800
Speaker 3: the criteria. So that's where sometimes, even when I was

519
00:24:20,800 --> 00:24:24,480
Speaker 3: a financial advisor, I would like recommend this is a hypothetical.

520
00:24:24,480 --> 00:24:26,000
Speaker 4: I'd be like, oh, beck, I.

521
00:24:25,960 --> 00:24:28,280
Speaker 3: Actually want you to have two super funds. Like that

522
00:24:28,320 --> 00:24:30,200
Speaker 3: goes against a lot of the advice that I give

523
00:24:30,280 --> 00:24:34,159
Speaker 3: because double fees, whatever, But you're going to keep like

524
00:24:34,240 --> 00:24:36,960
Speaker 3: a really minimal amount of money in this first super

525
00:24:36,960 --> 00:24:40,000
Speaker 3: fund that basically doesn't perform. But the reason we're keeping

526
00:24:40,000 --> 00:24:41,879
Speaker 3: the money there is to pay for the insurances on

527
00:24:41,920 --> 00:24:43,719
Speaker 3: that account because we can't get rid of them. And

528
00:24:43,760 --> 00:24:45,159
Speaker 3: then we're going to put all of our money in

529
00:24:45,200 --> 00:24:48,040
Speaker 3: this better fund that is actually going to perform, So

530
00:24:48,080 --> 00:24:51,240
Speaker 3: you would keep both In that instance, the best option,

531
00:24:51,520 --> 00:24:53,520
Speaker 3: or I would say the safest way to do this

532
00:24:54,080 --> 00:24:56,600
Speaker 3: is open the new fund first, because just opening the

533
00:24:56,640 --> 00:24:57,240
Speaker 3: new fund.

534
00:24:57,080 --> 00:24:58,560
Speaker 4: Doesn't cancel your old one.

535
00:24:58,640 --> 00:25:02,240
Speaker 3: We would hopefully rep the insurance if you need it,

536
00:25:02,720 --> 00:25:05,520
Speaker 3: and then roll your balance over and update your employer

537
00:25:05,560 --> 00:25:09,560
Speaker 3: payroll details. Then but if you can't replicate your insurance

538
00:25:09,600 --> 00:25:12,240
Speaker 3: because it hasn't been accepted or they say, oh, like sorry,

539
00:25:12,280 --> 00:25:13,640
Speaker 3: we don't offer that, at.

540
00:25:13,640 --> 00:25:15,960
Speaker 4: Least you haven't burnt the bridge to begin with.

541
00:25:16,280 --> 00:25:20,560
Speaker 3: Yeah, we can actually move super funds without deleting the

542
00:25:20,600 --> 00:25:22,040
Speaker 3: other one, do you know what I mean? Like, we're

543
00:25:22,040 --> 00:25:23,960
Speaker 3: not telling the other one that we're already seeing someone

544
00:25:24,040 --> 00:25:25,080
Speaker 3: new And.

545
00:25:25,040 --> 00:25:27,760
Speaker 4: That's okay, cheeky okay.

546
00:25:27,800 --> 00:25:29,800
Speaker 5: So once I've checked performance, what do I do next?

547
00:25:29,840 --> 00:25:30,200
Speaker 4: All Right?

548
00:25:30,280 --> 00:25:33,720
Speaker 3: So I've jumped up and down about this, but so

549
00:25:33,920 --> 00:25:37,639
Speaker 3: many people, and most people in Australia default to balanced

550
00:25:38,040 --> 00:25:40,520
Speaker 3: but that's not always right for them. They default to

551
00:25:40,560 --> 00:25:43,120
Speaker 3: balance because you know, when you're filling out your superforms

552
00:25:43,119 --> 00:25:45,440
Speaker 3: when you get a new job, it often has these

553
00:25:45,480 --> 00:25:49,200
Speaker 3: little like italic words below your superannuation choice that say

554
00:25:49,200 --> 00:25:51,960
Speaker 3: balanced is the most popular option or something to that effect.

555
00:25:52,119 --> 00:25:53,680
Speaker 3: And like, if you don't know what you're talking about,

556
00:25:53,720 --> 00:25:55,439
Speaker 3: which I didn't know what I was talking about when

557
00:25:55,480 --> 00:25:58,080
Speaker 3: I was doing these before I was an advisor.

558
00:25:57,920 --> 00:26:00,480
Speaker 4: I was just like, Okay, well I guess so with that.

559
00:26:01,080 --> 00:26:04,040
Speaker 3: Yeah, it doesn't feel like a big decision in that moment,

560
00:26:04,119 --> 00:26:06,560
Speaker 3: right because like the biggest and hardest thing about that

561
00:26:06,560 --> 00:26:08,960
Speaker 3: whole process for me was like, well, what is my TFN?

562
00:26:09,200 --> 00:26:10,760
Speaker 4: How do I go and find that? Is it in

563
00:26:10,760 --> 00:26:11,360
Speaker 4: my email?

564
00:26:11,440 --> 00:26:13,680
Speaker 3: You know, like I'm not really thinking about it, but

565
00:26:13,720 --> 00:26:17,240
Speaker 3: that makes a massive difference. So let's talk a little

566
00:26:17,280 --> 00:26:21,000
Speaker 3: bit about growth versus balanced versus like a conservative account.

567
00:26:22,160 --> 00:26:24,960
Speaker 3: I want you to imagine the pie chart, because I

568
00:26:24,960 --> 00:26:27,240
Speaker 3: feel like everyone can imagine a pie chart, right, I

569
00:26:27,280 --> 00:26:30,720
Speaker 3: love a pie chart. One hundred percent. In a pie

570
00:26:30,800 --> 00:26:33,879
Speaker 3: chart growth option, it's going to have eighty to ninety

571
00:26:33,960 --> 00:26:35,120
Speaker 3: percent growth options.

572
00:26:35,160 --> 00:26:36,000
Speaker 4: What does that mean?

573
00:26:36,480 --> 00:26:39,240
Speaker 3: Eighty to ninety percent of the money in your superannuation

574
00:26:39,440 --> 00:26:42,760
Speaker 3: is going to be directly invested into shares. Whether that

575
00:26:42,920 --> 00:26:45,719
Speaker 3: is Australian shares or international shares, it will be different

576
00:26:45,800 --> 00:26:49,479
Speaker 3: per fund. But then between twenty or ten and twenty

577
00:26:49,560 --> 00:26:51,840
Speaker 3: percent of that fund is going to be in more

578
00:26:51,840 --> 00:26:55,320
Speaker 3: conservative assets. So it's going to maybe be sitting in cash,

579
00:26:55,440 --> 00:26:57,840
Speaker 3: it might be sitting in a term deposit, it might

580
00:26:57,880 --> 00:27:02,040
Speaker 3: be in a bond. But these are more conservative options.

581
00:27:02,400 --> 00:27:04,879
Speaker 3: And now the thing I want you to remember is

582
00:27:05,000 --> 00:27:08,359
Speaker 3: just the percentages, because I think a lot of people

583
00:27:08,440 --> 00:27:10,960
Speaker 3: just assume when I say growth assets, you think it's

584
00:27:10,960 --> 00:27:12,120
Speaker 3: more risky shares.

585
00:27:12,760 --> 00:27:15,520
Speaker 4: It's not. It's just a higher saturation of shares.

586
00:27:15,920 --> 00:27:18,600
Speaker 3: So if we jump back down and compare it to

587
00:27:18,720 --> 00:27:22,719
Speaker 3: like the balanced option, like which is the default, and

588
00:27:22,760 --> 00:27:25,680
Speaker 3: we look at our high chart again, sixty to seventy

589
00:27:25,720 --> 00:27:28,879
Speaker 3: percent are quote growth assets, So sixty to seventy percent

590
00:27:28,960 --> 00:27:32,040
Speaker 3: of that is made up of shares. They're the same

591
00:27:32,160 --> 00:27:35,040
Speaker 3: shares that are in the growth asset. You just hold

592
00:27:35,160 --> 00:27:38,760
Speaker 3: more when you're growth and less when you're balanced. So

593
00:27:38,840 --> 00:27:41,720
Speaker 3: like you would just carry more cash if you're balanced

594
00:27:41,720 --> 00:27:44,560
Speaker 3: and have more of a percentage of assets that aren't

595
00:27:44,560 --> 00:27:46,560
Speaker 3: performing as well. And I'm not saying that that's a

596
00:27:46,600 --> 00:27:50,000
Speaker 3: bad thing. But I think a lot of people assume, oh,

597
00:27:50,040 --> 00:27:51,840
Speaker 3: if I go growth, the assets.

598
00:27:51,480 --> 00:27:52,840
Speaker 4: Are more risky. It's not.

599
00:27:53,080 --> 00:27:56,400
Speaker 3: It's exactly the same ETFs. It's exactly the same shares.

600
00:27:56,560 --> 00:27:59,000
Speaker 3: Like you know if Australian super has picked all of

601
00:27:59,000 --> 00:28:02,920
Speaker 3: those shares for their portfolios. Well, in the balanced option

602
00:28:03,000 --> 00:28:05,720
Speaker 3: you get seventy percent and in the growth option you

603
00:28:05,760 --> 00:28:08,160
Speaker 3: get ninety. Do you know what I mean? So it's

604
00:28:08,200 --> 00:28:11,320
Speaker 3: more about, well, if you're investing for the future, and

605
00:28:11,359 --> 00:28:12,919
Speaker 3: you're like, well, I'm going to be in it for

606
00:28:13,000 --> 00:28:15,600
Speaker 3: thirty plus years, how.

607
00:28:15,359 --> 00:28:16,280
Speaker 4: Comfortable are you?

608
00:28:16,359 --> 00:28:18,960
Speaker 3: And you need to ask yourself this question, how comfortable

609
00:28:19,000 --> 00:28:21,879
Speaker 3: are you with thirty percent of your portfolio just sitting

610
00:28:21,920 --> 00:28:24,560
Speaker 3: in like cash and bonds that perform less. Like I

611
00:28:24,560 --> 00:28:27,200
Speaker 3: think when you start to contextualize that, people go, oh,

612
00:28:27,280 --> 00:28:31,560
Speaker 3: growth isn't as scary, And like, I hate the terminology

613
00:28:31,720 --> 00:28:37,040
Speaker 3: around investing because often it seems scary, right, aggressive portfolio

614
00:28:37,200 --> 00:28:38,560
Speaker 3: some companies, you know, when.

615
00:28:38,360 --> 00:28:39,680
Speaker 5: They call it that, it's like, that's scary.

616
00:28:39,680 --> 00:28:42,239
Speaker 3: I don't want to exactly, So we probably aren't going

617
00:28:42,280 --> 00:28:44,280
Speaker 3: to pick that just because of the naming. Then yes,

618
00:28:44,960 --> 00:28:50,440
Speaker 3: So when you go back to a growth option higher risk,

619
00:28:51,040 --> 00:28:53,240
Speaker 3: Like we need to really outline that the more risk

620
00:28:53,320 --> 00:28:56,280
Speaker 3: you take, the more returns.

621
00:28:55,880 --> 00:28:56,480
Speaker 4: You might get.

622
00:28:57,120 --> 00:29:00,280
Speaker 3: And more often than not, I would see a growth

623
00:29:00,400 --> 00:29:04,000
Speaker 3: portfolio being more suitable for younger members who don't touch

624
00:29:04,080 --> 00:29:07,840
Speaker 3: their super for years. So if you're sixty, I'm probably

625
00:29:07,880 --> 00:29:09,520
Speaker 3: going to be like, oh, I'd stick clear of that

626
00:29:09,560 --> 00:29:11,360
Speaker 3: because like, the market goes up and down, and do

627
00:29:11,400 --> 00:29:13,080
Speaker 3: we want to be part of that. But when you're young,

628
00:29:13,320 --> 00:29:15,760
Speaker 3: you have time on your site, so I would be

629
00:29:15,880 --> 00:29:19,920
Speaker 3: expecting more ups and downs along the way, but better

630
00:29:20,000 --> 00:29:21,120
Speaker 3: long term compounding.

631
00:29:21,440 --> 00:29:21,640
Speaker 5: Yes.

632
00:29:21,840 --> 00:29:25,080
Speaker 3: So then the balanced option. We've talked about this before.

633
00:29:25,120 --> 00:29:26,840
Speaker 3: This is usually the default. This is just what you

634
00:29:26,880 --> 00:29:28,800
Speaker 3: fell into to begin with. And if you've never looked

635
00:29:28,800 --> 00:29:31,120
Speaker 3: at your super, I can almost guarantee that this is

636
00:29:31,160 --> 00:29:36,440
Speaker 3: what you're in. Moderate volatility, moderate returns. We're not complaining,

637
00:29:36,600 --> 00:29:39,680
Speaker 3: you're still getting a return. Is it what you want

638
00:29:39,720 --> 00:29:41,720
Speaker 3: it to be? It's totally fine.

639
00:29:41,720 --> 00:29:43,560
Speaker 4: If you're risk averse, like you might look at it

640
00:29:43,560 --> 00:29:45,280
Speaker 4: and be like, be I'm comfortable with that. I'm not

641
00:29:45,320 --> 00:29:47,160
Speaker 4: saying it's bad. I'm literally not.

642
00:29:47,240 --> 00:29:49,840
Speaker 3: I'm just saying, let's make sure you have the education

643
00:29:49,960 --> 00:29:52,320
Speaker 3: so you can make the right decision for you, because

644
00:29:52,600 --> 00:29:54,960
Speaker 3: in retirement it could mean hundreds of thousands of dollars

645
00:29:55,040 --> 00:29:58,080
Speaker 3: of difference. But if you've got thirty plus years ahead,

646
00:29:58,960 --> 00:30:02,680
Speaker 3: you might be leaving some cash on the table, right Okay, okay,

647
00:30:02,720 --> 00:30:04,080
Speaker 3: And like I don't want you to leave cash on

648
00:30:04,080 --> 00:30:07,160
Speaker 3: the table. No, Then there's the conservative option, and we're

649
00:30:07,160 --> 00:30:11,160
Speaker 3: going back to our pie chart again. But of that

650
00:30:11,320 --> 00:30:14,680
Speaker 3: pie chart, thirty to forty percent of your money that

651
00:30:14,840 --> 00:30:19,320
Speaker 3: is in your superannuation will be invested into the share market.

652
00:30:19,840 --> 00:30:23,960
Speaker 3: The rest is conservative options, so low volatility, low return.

653
00:30:24,160 --> 00:30:27,040
Speaker 3: I would say it's a much safer option when you're

654
00:30:27,040 --> 00:30:30,200
Speaker 3: closer to retirement because your risk and reward profile actually

655
00:30:30,280 --> 00:30:33,240
Speaker 3: changes over your lifetime. So like right now, Beck, I

656
00:30:33,280 --> 00:30:36,520
Speaker 3: would assume that you're probably sitting more growth just knowing you,

657
00:30:37,360 --> 00:30:39,320
Speaker 3: and the closer you get to retirement, you might drop

658
00:30:39,400 --> 00:30:41,240
Speaker 3: back to a balanced and then you know, when you're

659
00:30:41,240 --> 00:30:44,080
Speaker 3: sixty or so, you might grow to conservative because it's

660
00:30:44,120 --> 00:30:46,640
Speaker 3: not so much about growing your wealth whence you're sixty,

661
00:30:46,840 --> 00:30:49,520
Speaker 3: it's more about conserving it and just like locking it in,

662
00:30:49,720 --> 00:30:51,960
Speaker 3: loading it in, making sure that it's there for the

663
00:30:52,040 --> 00:30:54,720
Speaker 3: long term. So it's I would say safer if you're

664
00:30:54,720 --> 00:30:57,320
Speaker 3: closer to retirement and you want to protect what you've built.

665
00:30:57,320 --> 00:31:00,560
Speaker 3: But it probably like and this is stereoti typing again,

666
00:31:00,600 --> 00:31:03,440
Speaker 3: because I could never give you advice. It's probably not

667
00:31:03,560 --> 00:31:06,000
Speaker 3: ideal if you're like twenty five and you're going to

668
00:31:06,040 --> 00:31:09,200
Speaker 3: access your super for thirty five years. Yeah, I see,

669
00:31:09,280 --> 00:31:11,120
Speaker 3: But the superannuation company is not going to call you

670
00:31:11,200 --> 00:31:13,000
Speaker 3: up and be like, hey, beg, we saw you picked this.

671
00:31:13,160 --> 00:31:14,720
Speaker 4: You sure like.

672
00:31:14,640 --> 00:31:16,120
Speaker 3: They're not going to do that, because they're just going

673
00:31:16,200 --> 00:31:18,000
Speaker 3: to go, okay, well that's what she picked and like

674
00:31:18,040 --> 00:31:20,560
Speaker 3: what she wants exactly, but you might not know what

675
00:31:20,600 --> 00:31:25,080
Speaker 3: you don't know. Yes, So sequencing risk kind of matters

676
00:31:25,480 --> 00:31:29,920
Speaker 3: closer to retirement because being too aggressive close to retirement

677
00:31:30,000 --> 00:31:31,880
Speaker 3: could mean you go into a market dip and then

678
00:31:31,920 --> 00:31:33,800
Speaker 3: you have to wait another five or six years before

679
00:31:33,800 --> 00:31:34,720
Speaker 3: you can actually retire.

680
00:31:34,760 --> 00:31:36,040
Speaker 4: And I just I don't want.

681
00:31:35,840 --> 00:31:39,480
Speaker 3: That for you, you know, And like even a one percent

682
00:31:39,560 --> 00:31:42,080
Speaker 3: higher return, so you might go, oh, well, you know,

683
00:31:42,080 --> 00:31:44,840
Speaker 3: I'll just pick one, Like the more conservative one is

684
00:31:44,880 --> 00:31:49,320
Speaker 3: like only one percent difference, Like who cares over thirty years, beck,

685
00:31:49,400 --> 00:31:54,080
Speaker 3: that's thirty five percent of your supernuation balance like that

686
00:31:54,080 --> 00:31:57,160
Speaker 3: that's a lot. Yeah, but that's thirty five percent more

687
00:31:57,200 --> 00:31:59,520
Speaker 3: returns that you would have, So you've kind of got

688
00:31:59,520 --> 00:32:02,440
Speaker 3: a context realize it, because like one percent today, I

689
00:32:02,480 --> 00:32:04,960
Speaker 3: don't care if you don't pay me one percent. Thirty

690
00:32:04,960 --> 00:32:07,640
Speaker 3: five years later, I've lost thirty five percent. And you

691
00:32:07,680 --> 00:32:09,959
Speaker 3: know what, if I see something that's thirty five percent off,

692
00:32:10,000 --> 00:32:10,920
Speaker 3: I'm like, that's a good deal.

693
00:32:11,120 --> 00:32:13,560
Speaker 5: Absolutely, it's a big chunk of money, right.

694
00:32:13,640 --> 00:32:15,960
Speaker 3: And then I also want to talk about the power

695
00:32:15,960 --> 00:32:19,160
Speaker 3: of time, because we've just like touched on retirement and

696
00:32:19,240 --> 00:32:21,760
Speaker 3: like maybe not picking a more aggressive option when you're

697
00:32:21,800 --> 00:32:24,080
Speaker 3: closer to retirement, but if you're younger, like, you've got

698
00:32:24,080 --> 00:32:27,920
Speaker 3: time on your side, and I can't drive that fact

699
00:32:28,120 --> 00:32:31,479
Speaker 3: home any harder than I do. So for example, if

700
00:32:31,520 --> 00:32:34,240
Speaker 3: you're like, let's say you're twenty five, and you've got

701
00:32:34,320 --> 00:32:38,520
Speaker 3: a balanced portfolio right now, so you're earning let's just

702
00:32:38,520 --> 00:32:42,880
Speaker 3: say six percent, but the growth option in the same

703
00:32:42,880 --> 00:32:44,800
Speaker 3: super fund, so you're not changing funds, you're just like

704
00:32:44,880 --> 00:32:48,240
Speaker 3: going in and flicking over to growth that's seven percent,

705
00:32:49,080 --> 00:32:51,360
Speaker 3: So like you would go via, that's not much of

706
00:32:51,400 --> 00:32:54,480
Speaker 3: a difference, Like kind of who cares over thirty five years.

707
00:32:54,520 --> 00:32:57,720
Speaker 3: As I was saying, one percent different compounds to thirty

708
00:32:57,720 --> 00:33:01,320
Speaker 3: five percent more money. So hypothetically, if you had one

709
00:33:01,360 --> 00:33:06,480
Speaker 3: hundred thousand dollars, that's the difference of retiring with seven

710
00:33:06,600 --> 00:33:10,520
Speaker 3: hundred and sixty thousand dollars or one point oh three

711
00:33:10,640 --> 00:33:11,440
Speaker 3: million dollars.

712
00:33:11,680 --> 00:33:11,960
Speaker 5: Wow.

713
00:33:12,280 --> 00:33:15,360
Speaker 3: Okay, So like we're not talking like, oh, it's just

714
00:33:15,400 --> 00:33:19,760
Speaker 3: a couple of dollars, Like these decisions could mean hundreds

715
00:33:19,760 --> 00:33:21,520
Speaker 3: of thousands of dollars for you.

716
00:33:21,720 --> 00:33:24,840
Speaker 4: But you didn't have to contribute anymore for that. Sorry.

717
00:33:24,840 --> 00:33:26,840
Speaker 3: Are we not all going into our super and just

718
00:33:26,920 --> 00:33:29,880
Speaker 3: fixing it or making it reflective of what we want?

719
00:33:29,920 --> 00:33:32,200
Speaker 3: And I'm not saying, oh, go pick the growth option,

720
00:33:32,760 --> 00:33:36,320
Speaker 3: but like I am speaking to a community right now,

721
00:33:36,400 --> 00:33:38,239
Speaker 3: and individuals who you know.

722
00:33:38,560 --> 00:33:40,680
Speaker 4: I know you because I survey you.

723
00:33:40,920 --> 00:33:44,080
Speaker 3: I am in our Facebook group all the time, and

724
00:33:44,400 --> 00:33:46,440
Speaker 3: most people that I talk to go, oh my god.

725
00:33:46,440 --> 00:33:47,480
Speaker 4: I was in the balanced option.

726
00:33:47,560 --> 00:33:49,120
Speaker 3: And then when I finally read up on it, I

727
00:33:49,120 --> 00:33:51,680
Speaker 3: finally did the questionnaire, I finally, you know, took the

728
00:33:51,760 --> 00:33:55,400
Speaker 3: test on the super fund website that was free found

729
00:33:55,400 --> 00:33:57,440
Speaker 3: out I was growth. Like, the amount of times I

730
00:33:57,440 --> 00:34:00,280
Speaker 3: have that conversation is crazy. Yes, I'm also having that

731
00:34:00,320 --> 00:34:02,560
Speaker 3: conversation where people will say, oh, well, I was in

732
00:34:02,680 --> 00:34:04,320
Speaker 3: balanced and then I did it and I was balanced,

733
00:34:04,360 --> 00:34:04,680
Speaker 3: So like.

734
00:34:04,640 --> 00:34:06,040
Speaker 4: I don't know what you were harping on about.

735
00:34:06,240 --> 00:34:09,200
Speaker 5: Sure, well, at least you know exactly.

736
00:34:08,840 --> 00:34:10,279
Speaker 4: Right you did it.

737
00:34:10,719 --> 00:34:14,360
Speaker 3: So risk settings actually do really really matter because the

738
00:34:14,360 --> 00:34:18,120
Speaker 3: difference between one percent you might go today whatever, But sorry,

739
00:34:18,280 --> 00:34:18,640
Speaker 3: we're in the.

740
00:34:18,600 --> 00:34:19,680
Speaker 4: Middle of cozy lives.

741
00:34:20,200 --> 00:34:23,080
Speaker 3: Like we're all trying to, you know, cut back, we're

742
00:34:23,080 --> 00:34:26,040
Speaker 3: all trying to save money. If you are feeling really

743
00:34:26,040 --> 00:34:29,080
Speaker 3: stressed about finances right now and the groceries are hard,

744
00:34:29,120 --> 00:34:31,239
Speaker 3: rents hard, bills are hard. Do you know what you

745
00:34:31,239 --> 00:34:34,439
Speaker 3: can do something for future you? You can still care

746
00:34:34,480 --> 00:34:38,000
Speaker 3: about your finances. It just doesn't have to be in

747
00:34:38,080 --> 00:34:40,520
Speaker 3: saving what's coming into your bank account because that's sometimes

748
00:34:40,520 --> 00:34:41,080
Speaker 3: too hard.

749
00:34:41,680 --> 00:34:44,000
Speaker 4: But pull your finger out, go and fix your super.

750
00:34:44,280 --> 00:34:47,200
Speaker 5: Go and fix your Super, please and thank you.

751
00:34:47,440 --> 00:34:49,120
Speaker 3: And I'll give you three questions because I know you're

752
00:34:49,120 --> 00:34:51,400
Speaker 3: about to try and wrap me up because I'm a

753
00:34:51,600 --> 00:34:55,240
Speaker 3: super Yappa, But I want you to ask yourself three questions. Beck,

754
00:34:55,440 --> 00:34:57,839
Speaker 3: So I want you to ask, well, how many years

755
00:34:57,880 --> 00:35:00,560
Speaker 3: until I access Super? Because I I want to know

756
00:35:01,320 --> 00:35:03,839
Speaker 3: or I want you to know what your preservation age is.

757
00:35:04,280 --> 00:35:07,399
Speaker 3: So that's not when you're quote planning to retire. That's

758
00:35:07,440 --> 00:35:10,239
Speaker 3: when you can actually get your little dirty fingers on

759
00:35:10,280 --> 00:35:13,680
Speaker 3: that money yeap, without paying tax because, like you know,

760
00:35:14,360 --> 00:35:16,560
Speaker 3: I could have arguments with lots of people who are like,

761
00:35:16,680 --> 00:35:18,239
Speaker 3: well you could access you super early?

762
00:35:18,320 --> 00:35:18,560
Speaker 4: Yeah?

763
00:35:18,560 --> 00:35:21,279
Speaker 3: Cool, but hopefully I'm fit and healthy and don't have

764
00:35:21,400 --> 00:35:24,759
Speaker 3: to right what age, and it's usually the age of

765
00:35:24,800 --> 00:35:29,239
Speaker 3: sixty seven? Can I access that completely tax free? And

766
00:35:29,440 --> 00:35:32,440
Speaker 3: I want you to ask yourself right now, like beck,

767
00:35:32,560 --> 00:35:33,080
Speaker 3: zoom out.

768
00:35:33,200 --> 00:35:34,840
Speaker 4: We're just going to use you as an example.

769
00:35:35,600 --> 00:35:39,080
Speaker 3: What would happen if tomorrow you logged into your superannuation

770
00:35:39,200 --> 00:35:41,480
Speaker 3: account and your balance ha crash twenty percent?

771
00:35:43,200 --> 00:35:45,719
Speaker 5: I would I would sit on it, yep, But.

772
00:35:45,760 --> 00:35:48,279
Speaker 3: Like what would happen? Would you freak out? Would you

773
00:35:48,360 --> 00:35:50,120
Speaker 3: like switch to panic mode?

774
00:35:50,840 --> 00:35:51,520
Speaker 5: All those things?

775
00:35:51,520 --> 00:35:52,400
Speaker 4: But what would happen?

776
00:35:52,760 --> 00:35:52,920
Speaker 1: Oh?

777
00:35:53,920 --> 00:35:54,440
Speaker 5: I don't know?

778
00:35:55,040 --> 00:35:57,480
Speaker 4: But like, how does that impact you financially right now?

779
00:35:57,680 --> 00:35:58,000
Speaker 4: Right now?

780
00:35:58,120 --> 00:35:58,279
Speaker 3: No?

781
00:35:58,880 --> 00:36:00,239
Speaker 4: What does it do to your life?

782
00:36:00,600 --> 00:36:00,799
Speaker 3: Well?

783
00:36:00,920 --> 00:36:03,040
Speaker 4: Can you still afford your bills and your rent and stuff?

784
00:36:03,040 --> 00:36:05,640
Speaker 3: Because as you're super right now, have any sway on

785
00:36:05,680 --> 00:36:06,480
Speaker 3: your finances?

786
00:36:06,640 --> 00:36:06,799
Speaker 1: No?

787
00:36:07,120 --> 00:36:09,440
Speaker 3: Okay, So I need you to talk to yourself about

788
00:36:09,440 --> 00:36:13,000
Speaker 3: that and whether if you dove into your super account

789
00:36:13,000 --> 00:36:14,200
Speaker 3: and found it was down.

790
00:36:14,360 --> 00:36:16,480
Speaker 4: Yep, one, Yeah, okay, you're allowed to panic.

791
00:36:16,840 --> 00:36:19,680
Speaker 3: Like I have said before on the show ex Financial Advisor,

792
00:36:19,760 --> 00:36:21,680
Speaker 3: I talk about money all the time. If I log

793
00:36:21,719 --> 00:36:24,799
Speaker 3: into my share trading platform and I find that my

794
00:36:24,880 --> 00:36:27,440
Speaker 3: money is down, I get that pit in the bottom

795
00:36:27,440 --> 00:36:28,719
Speaker 3: of my stomach because do you know what?

796
00:36:28,760 --> 00:36:32,359
Speaker 4: People hate losing money? Absolutely? I hate it too.

797
00:36:33,280 --> 00:36:35,239
Speaker 3: But then I can zoom out and go, Okay, let's

798
00:36:35,239 --> 00:36:37,200
Speaker 3: look at the big picture. I still have like thirty

799
00:36:37,280 --> 00:36:40,000
Speaker 3: years before I'm even retiring. I'm meant to be looking

800
00:36:40,040 --> 00:36:42,239
Speaker 3: at this like shares or on sale. I'm meant to

801
00:36:42,280 --> 00:36:44,400
Speaker 3: be looking at this in a different way. And you

802
00:36:44,400 --> 00:36:46,439
Speaker 3: know what, I'm not saying it's instantaneous.

803
00:36:46,480 --> 00:36:48,040
Speaker 4: I'm not like, oh I'm so silly and that I

804
00:36:48,080 --> 00:36:48,560
Speaker 4: walk off.

805
00:36:48,640 --> 00:36:51,000
Speaker 3: I'm still like, yeah, I don't really like this, and

806
00:36:51,080 --> 00:36:54,279
Speaker 3: I still feel yuck about it. But maybe I'm doing

807
00:36:54,320 --> 00:36:56,720
Speaker 3: a little bit more research, maybe I'm doing some googling.

808
00:36:56,719 --> 00:37:00,319
Speaker 3: But ultimately I know that my job is to sit

809
00:37:00,400 --> 00:37:04,359
Speaker 3: and wait. But if that's something that you couldn't deal with,

810
00:37:05,320 --> 00:37:07,200
Speaker 3: you need to have a think about that. And then

811
00:37:07,239 --> 00:37:10,640
Speaker 3: the next one is what is my plan to shift

812
00:37:10,719 --> 00:37:12,640
Speaker 3: later in life do I have one? Am I going

813
00:37:12,680 --> 00:37:15,680
Speaker 3: to be growth until I am sixty seven? Or am

814
00:37:15,760 --> 00:37:18,400
Speaker 3: I going to you know, go all right, I'm feeling

815
00:37:18,400 --> 00:37:20,920
Speaker 3: really good about this right now, but if I was

816
00:37:21,000 --> 00:37:24,000
Speaker 3: like fifty, I probably wouldn't want to be here. They're

817
00:37:24,000 --> 00:37:26,600
Speaker 3: the times that we're starting to reflect and go okay, cool,

818
00:37:26,640 --> 00:37:29,799
Speaker 3: Like maybe I would need to revisit my risk profile

819
00:37:31,160 --> 00:37:33,840
Speaker 3: at that time, but I actually kind.

820
00:37:33,719 --> 00:37:34,239
Speaker 4: Of would love.

821
00:37:34,400 --> 00:37:37,719
Speaker 3: Like in my perfect world, you're actually revisiting it annually.

822
00:37:37,800 --> 00:37:40,040
Speaker 3: You're like kind of just doing a like finance health check.

823
00:37:40,080 --> 00:37:41,959
Speaker 3: You're like, am I in the right place? It should

824
00:37:42,000 --> 00:37:44,120
Speaker 3: be kind of a tick box exercise. I do it

825
00:37:44,160 --> 00:37:46,920
Speaker 3: for myself. I redo the survey and I'm like, yeap,

826
00:37:47,239 --> 00:37:51,000
Speaker 3: what a surprise. I'm still a high growth person, but

827
00:37:51,040 --> 00:37:53,799
Speaker 3: that might change over my lifetime, and the second it does,

828
00:37:53,840 --> 00:37:55,400
Speaker 3: I want to make sure that my super and all

829
00:37:55,440 --> 00:37:57,080
Speaker 3: of my investments are reflective of that.

830
00:37:57,680 --> 00:38:00,279
Speaker 4: So those are my questions that you're asking yourself because

831
00:38:00,280 --> 00:38:00,600
Speaker 4: I do that.

832
00:38:00,680 --> 00:38:02,600
Speaker 3: Tried to cap myself with just three, but there's lots

833
00:38:02,640 --> 00:38:06,000
Speaker 3: of other questions like why am I even here? You know? Okay?

834
00:38:06,520 --> 00:38:08,720
Speaker 5: So I feel like this is a really good place

835
00:38:08,719 --> 00:38:09,239
Speaker 5: to leave it.

836
00:38:09,400 --> 00:38:11,960
Speaker 3: I don't want to overwhelm people, so I agree, But

837
00:38:12,040 --> 00:38:14,279
Speaker 3: I have so much to tell you.

838
00:38:15,600 --> 00:38:18,200
Speaker 4: But we didn't even talk about contribution caps.

839
00:38:18,239 --> 00:38:21,200
Speaker 3: We didn't even talk about like tax Like there's just

840
00:38:21,239 --> 00:38:24,080
Speaker 3: a lot to it. But I would actually prefer you're right,

841
00:38:24,200 --> 00:38:26,920
Speaker 3: I would prefer to like cut it, you ruminate on that,

842
00:38:27,000 --> 00:38:29,879
Speaker 3: go do all of these things, do your homework, yes,

843
00:38:29,960 --> 00:38:30,800
Speaker 3: and then we'll come back.

844
00:38:30,640 --> 00:38:32,320
Speaker 4: And we'll talk about it, because I'll make another.

845
00:38:32,120 --> 00:38:35,240
Speaker 5: Part for a two patter a tuparta. Yeah that sounds great,

846
00:38:35,400 --> 00:38:37,239
Speaker 5: Thank you Ford. I love it.

847
00:38:37,320 --> 00:38:40,040
Speaker 3: Also, I just want to point out I'm not making

848
00:38:40,040 --> 00:38:42,480
Speaker 3: these stupid episodes. And I think you guys already know this.

849
00:38:42,600 --> 00:38:44,880
Speaker 3: Maybe you know how sometimes just tell people how to

850
00:38:44,880 --> 00:38:48,560
Speaker 3: suck eggs. Apologies, but like I'm not making these episodes

851
00:38:48,600 --> 00:38:51,320
Speaker 3: because I want you to feel overwhelmed. Like I want

852
00:38:51,360 --> 00:38:54,120
Speaker 3: you to have all of the tools in your toolkit

853
00:38:54,560 --> 00:38:58,480
Speaker 3: so that you can create your financial future that you

854
00:38:58,520 --> 00:39:01,359
Speaker 3: deserve on your own. Like these are the things that

855
00:39:01,680 --> 00:39:04,080
Speaker 3: you know you could go see a financial advisor, but

856
00:39:04,120 --> 00:39:06,480
Speaker 3: go you could do it yourself. Like it's not about

857
00:39:06,520 --> 00:39:10,040
Speaker 3: being the smartest, it's not about like having a finance education.

858
00:39:10,120 --> 00:39:11,719
Speaker 4: It's just about logging in.

859
00:39:12,200 --> 00:39:15,960
Speaker 3: All of these things on these superannuation websites are written

860
00:39:16,000 --> 00:39:18,799
Speaker 3: in plain English for us, but we don't know that

861
00:39:18,880 --> 00:39:22,239
Speaker 3: unless we go there, like and I promise, like this

862
00:39:22,320 --> 00:39:24,440
Speaker 3: is probably I don't know. Is this is a mean

863
00:39:24,480 --> 00:39:27,200
Speaker 3: thing to say, But like in Australia, we have to

864
00:39:27,239 --> 00:39:29,600
Speaker 3: operate on the idea that we are talking to the

865
00:39:29,640 --> 00:39:32,879
Speaker 3: silliest person in the room. Yes. So, like when you

866
00:39:32,960 --> 00:39:36,920
Speaker 3: create content, especially finance content, you have to make sure

867
00:39:37,080 --> 00:39:40,600
Speaker 3: that it's applicable to the person who literally has absolutely

868
00:39:40,680 --> 00:39:43,600
Speaker 3: no education on it. And that's the way supranuation companies

869
00:39:43,640 --> 00:39:46,200
Speaker 3: create content. So if you've been feeling overwhelmed because you're like,

870
00:39:46,239 --> 00:39:47,560
Speaker 3: I'm going to go to the super company and it's

871
00:39:47,560 --> 00:39:50,319
Speaker 3: not going to make any sense, promise you it's much

872
00:39:50,360 --> 00:39:52,680
Speaker 3: easier than you think it is. And like even if

873
00:39:52,680 --> 00:39:55,640
Speaker 3: you just pick one thing, whether that's like you're deciding

874
00:39:55,680 --> 00:39:59,359
Speaker 3: to just check your your balance on the MyGov app,

875
00:39:59,440 --> 00:40:01,200
Speaker 3: or you might pick up the phone and I say

876
00:40:01,239 --> 00:40:01,600
Speaker 3: this all.

877
00:40:01,480 --> 00:40:04,520
Speaker 4: The time, call your super fund. Like Beck used to

878
00:40:04,560 --> 00:40:05,799
Speaker 4: work at a super fund, I did.

879
00:40:05,880 --> 00:40:07,719
Speaker 3: When you pick up the phone to call the super fund,

880
00:40:07,760 --> 00:40:10,399
Speaker 3: am I talking to the CEO or someone condescending?

881
00:40:10,680 --> 00:40:11,880
Speaker 4: Oh, you're took to us.

882
00:40:11,920 --> 00:40:13,120
Speaker 5: You're talking to you, and.

883
00:40:13,040 --> 00:40:15,000
Speaker 3: Like you can be like, what's my balance, and you

884
00:40:15,000 --> 00:40:16,440
Speaker 3: can be like, let me have a look for you,

885
00:40:16,520 --> 00:40:19,840
Speaker 3: Victoria girl, Like people who work at super funds have

886
00:40:19,880 --> 00:40:22,600
Speaker 3: your back, and like people don't take jobs at super

887
00:40:22,600 --> 00:40:25,360
Speaker 3: funds if they don't want to be helpful. So anyway

888
00:40:25,480 --> 00:40:27,760
Speaker 3: call them, because you're already paying the fees on that account,

889
00:40:27,800 --> 00:40:30,480
Speaker 3: as we talked about in this episode, and that's paying their.

890
00:40:30,360 --> 00:40:34,719
Speaker 4: Salaries and free advice. Absolutely, I love that for us.

891
00:40:35,280 --> 00:40:37,560
Speaker 3: Or maybe you're like wanting to take it a step

892
00:40:37,600 --> 00:40:39,280
Speaker 3: further and you're like, I'm going to add some extra

893
00:40:39,320 --> 00:40:41,759
Speaker 3: contributions because future You deserves that.

894
00:40:42,760 --> 00:40:44,279
Speaker 4: You're already going to be in a better spot.

895
00:40:44,360 --> 00:40:49,239
Speaker 3: Right And if you haven't already, my friends, please hit follow, tap, subscribe,

896
00:40:49,400 --> 00:40:51,880
Speaker 3: do all the things, because we've got plenty more episodes

897
00:40:51,920 --> 00:40:53,400
Speaker 3: that are coming in the future that are going to

898
00:40:53,440 --> 00:40:55,320
Speaker 3: put future You in the best possible position.

899
00:40:55,480 --> 00:40:57,759
Speaker 4: And like I was born to talk about finance. You

900
00:40:57,880 --> 00:41:00,960
Speaker 4: don't good but also not God's work. This is so

901
00:41:01,080 --> 00:41:02,360
Speaker 4: self indulgent. I love it.

902
00:41:02,480 --> 00:41:06,000
Speaker 3: Imagine just yapping about the things that you love all day.

903
00:41:06,280 --> 00:41:08,239
Speaker 3: It does sound good, and somehow it's my job.

904
00:41:08,520 --> 00:41:09,720
Speaker 4: Yeah, that's so lucky.

905
00:41:09,920 --> 00:41:10,480
Speaker 5: She's blessed.

906
00:41:10,520 --> 00:41:13,759
Speaker 4: Super is so sexy. Anyway, we'll see you next week. Guys.

907
00:41:13,840 --> 00:41:14,080
Speaker 3: Bye,