WEBVTT - Summer Starter Series: Get Your Superannuation Sorted 0:00:00.120 --> 0:00:03.160 My name's Tatasha Bamblet. I'm a proud First Nations woman 0:00:03.520 --> 0:00:08.360 and I'm here to acknowledge country t Glennan Ganya, nian 0:00:08.440 --> 0:00:11.319 Ar Kaka Yahi and beIN a Waka nian our gay 0:00:11.360 --> 0:00:15.920 in in Bina, yak rum Jar, Domenyama, Domagahawakaman, dam I, Milan, 0:00:16.600 --> 0:00:19.919 Mumma bang gadaboma in and now in Waka Ghana yakrum 0:00:20.040 --> 0:00:24.439 Jar water Nadaa. Hello, beautiful friends, we gather on the 0:00:24.560 --> 0:00:27.840 lands of the Aboriginal people. We thank acknowledge and respect 0:00:27.880 --> 0:00:30.800 the Aboriginal people's land that we're gathering on today. Take 0:00:30.840 --> 0:00:33.720 pleasure in all the land and respect all that you see. 0:00:34.520 --> 0:00:40.120 She's on the Money podcast acknowledges culture, country, community and connections, 0:00:40.880 --> 0:00:44.480 bringing you the tools, knowledge and resources for you to thrive. 0:00:45.000 --> 0:01:21.920 She's on the Money. She's on the Money. 0:01:29.720 --> 0:01:32.240 Hello, and welcome to She's on the Money, the podcast 0:01:32.280 --> 0:01:34.319 that's here to help you get your finances on track 0:01:34.400 --> 0:01:37.039 this year. Welcome back to another episode in our summer 0:01:37.080 --> 0:01:40.839 STARTI series. I wanted to include this specific episode because 0:01:40.920 --> 0:01:42.720 when people tell me that they want to get their 0:01:42.760 --> 0:01:45.840 finances on track, the first thing that they say is 0:01:45.959 --> 0:01:48.800 usually girl friend I don't have any extra money right now, 0:01:48.840 --> 0:01:51.279 and honestly, in this economy that. 0:01:51.240 --> 0:01:52.000 Is really fair. 0:01:52.640 --> 0:01:57.040 Life is so damn expensive. Groceries are wild, rent is wild. 0:01:57.160 --> 0:02:01.320 Everything honestly feels very wild. But you know, superanuation is 0:02:01.320 --> 0:02:04.120 one of those rare parts of your finances where you 0:02:04.160 --> 0:02:06.640 can still put yourself in a better financial position even 0:02:06.680 --> 0:02:09.040 if you don't have any spare cash sitting around. You're 0:02:09.040 --> 0:02:12.760 already contributing through your employer. The opportunity here is making 0:02:12.760 --> 0:02:15.280 sure that that money is actually working as hard as 0:02:15.280 --> 0:02:18.360 it can for future you. And this episode is all 0:02:18.400 --> 0:02:21.080 about those zero dollar tweaks, the stuff that you can 0:02:21.120 --> 0:02:23.760 do by logging in, checking a few settings, and making 0:02:23.760 --> 0:02:26.560 sure that your super reflects you, your goals. 0:02:26.200 --> 0:02:27.280 And your timeline. 0:02:27.520 --> 0:02:30.079 And this is actually part one of a little part 0:02:30.120 --> 0:02:32.440 two series. So once you've listened to this, I'm actually 0:02:32.440 --> 0:02:34.920 going to link part two in the show notes so 0:02:34.960 --> 0:02:36.520 that you can keep going if you want to dive 0:02:36.560 --> 0:02:39.960 a little bit deeper into superanuation, my friend, If you 0:02:39.960 --> 0:02:43.520 are feeling behind, overwhelmed, or like retirement is a future 0:02:43.560 --> 0:02:47.680 you problem, this episode was literally made for you. Super 0:02:47.720 --> 0:02:51.280 can feel boring, I know, confusing, or even really easy 0:02:51.280 --> 0:02:54.640 to ignore, but it makes a massive difference over time. 0:02:54.840 --> 0:02:57.280 I promise, listen to the episode and you'll see two 0:02:57.800 --> 0:02:59.880 and few to you, my friend, They're going to be 0:03:00.120 --> 0:03:02.160 very glad that you cared about this today. So let's 0:03:02.160 --> 0:03:05.359 get into it now. You guys absolutely loved seeing how 0:03:05.400 --> 0:03:08.160 you're super compared to other Australians, which I think is 0:03:08.200 --> 0:03:10.280 really fun because I think so many of us we 0:03:10.440 --> 0:03:13.120 just google it once six years ago and feel a 0:03:13.160 --> 0:03:15.400 little bit behind and then never think about it again. Yeah, 0:03:15.480 --> 0:03:18.880 we actually collected the data from our own community over 0:03:18.919 --> 0:03:20.200 the last twelve months. 0:03:20.000 --> 0:03:22.360 So I thought that we could just start by sharing that. 0:03:23.080 --> 0:03:26.680 And I'm really excited about this because I feel like 0:03:26.720 --> 0:03:28.600 this data is a little bit more gritty, a little 0:03:28.600 --> 0:03:31.000 bit more comparable to like where. 0:03:30.720 --> 0:03:32.160 We are as listeners. 0:03:32.280 --> 0:03:34.360 Like if you think about our average listener and the 0:03:34.400 --> 0:03:37.880 average person or they're not actually the average Australian, Like 0:03:37.920 --> 0:03:41.280 the average Australian maybe doesn't care so much about their 0:03:41.280 --> 0:03:43.760 super doesn't care about finance, is probably not trying to 0:03:43.760 --> 0:03:46.480 put themselves in the best possible position. So here's a 0:03:46.480 --> 0:03:48.240 little bit of a snapshot from our shees on the 0:03:48.240 --> 0:03:51.120 Money community and I've just done by age bands so 0:03:51.120 --> 0:03:53.560 I've copied what the superannuation companies do so that you 0:03:53.560 --> 0:03:55.680 could like compare it to your super company if you 0:03:55.720 --> 0:03:58.640 wanted to later. And we'll obviously use this information to 0:03:58.680 --> 0:04:01.160 create like a social time so you can go back 0:04:01.160 --> 0:04:02.880 to it and like see it visually, because it's like 0:04:03.160 --> 0:04:04.600 not the same as just having it. 0:04:04.600 --> 0:04:05.200 Read out to you. 0:04:05.280 --> 0:04:08.120 Right, So, if you're between twenty and twenty four in 0:04:08.160 --> 0:04:10.560 the She's on the Money community, the average is twenty 0:04:10.600 --> 0:04:13.240 six thousand dollars, and then the median is twenty two 0:04:13.320 --> 0:04:17.080 thousand dollars. Yes, So just to quickly talk about why 0:04:17.200 --> 0:04:19.719 I as a statz nerd. I don't know if everybody 0:04:19.760 --> 0:04:21.880 knows this, but way back when I was at university, 0:04:21.920 --> 0:04:24.640 I studied statistics. It's one of my mind is because 0:04:24.680 --> 0:04:27.120 I am just a really big nerd. I always talk 0:04:27.160 --> 0:04:29.720 about the average and then the median. I actually think 0:04:29.760 --> 0:04:34.120 that the median is a better reflection. But most people 0:04:34.240 --> 0:04:36.279 talk about the average because you go, oh, Vey, what's 0:04:36.279 --> 0:04:39.440 the average, It's like, well, that's good, But what happens 0:04:39.480 --> 0:04:41.880 with the averages? You take every single number, So say 0:04:41.920 --> 0:04:44.960 there's like one hundred people in our sample, there's actually thousands, 0:04:45.000 --> 0:04:47.320 But say there's one hundred people, you add all of 0:04:47.360 --> 0:04:50.720 their numbers together and then you divide it by one hundred, 0:04:51.000 --> 0:04:53.200 so you're getting like the lowest of the low and 0:04:53.240 --> 0:04:55.800 then the highest of the high. And what happens with 0:04:55.880 --> 0:04:58.920 that is if we're all similar, probably not a big issue. 0:04:59.360 --> 0:05:02.240 But if you've got someone who has you know, they're 0:05:02.240 --> 0:05:05.080 twenty one and they for some reason have a heap 0:05:05.160 --> 0:05:08.520 of money in their superannuation and they've got millions. And 0:05:08.560 --> 0:05:11.320 then you also have people who maybe you know, have 0:05:11.440 --> 0:05:13.600 never worked a day in their life and they're in 0:05:13.640 --> 0:05:17.120 the sample, so they've got zero dollars. We're taking those 0:05:17.279 --> 0:05:20.159 numbers into consideration, and if I ask you, do you 0:05:20.160 --> 0:05:22.919 feel like that's comparable to your situation, I think you 0:05:23.040 --> 0:05:26.120 go probably not. So the median is the number that 0:05:26.240 --> 0:05:28.440 just sit smack bang in the middle. So it's not 0:05:28.520 --> 0:05:31.680 like adding them all together and dividing them. It's going, okay, cool, 0:05:31.680 --> 0:05:34.680 if there's one hundred people, we're going to fifty, Like 0:05:34.760 --> 0:05:37.440 what is that fiftieth number? And that is the person 0:05:37.480 --> 0:05:39.039 that's sitting in the middle of all of that. So 0:05:39.080 --> 0:05:40.560 they're not the highest of the high, they're not the 0:05:40.600 --> 0:05:43.160 lowest of the low. That's where a lot of us 0:05:43.240 --> 0:05:46.320 probably want to see comparable numbers because we go, what's 0:05:46.400 --> 0:05:48.039 you know, sitting smack bang in the middle. You know, 0:05:48.040 --> 0:05:49.919 when you think of a bell curve, it's like the 0:05:49.920 --> 0:05:51.800 bell curve number, it's like the one at the top 0:05:51.839 --> 0:05:55.080 of that. So often you will see the average is 0:05:55.200 --> 0:05:58.839 often higher than what the median is. And that's why 0:05:58.880 --> 0:06:01.400 I like to work off median instead of an average, 0:06:01.440 --> 0:06:04.200 because I think an average can not be as accurate anyway. 0:06:04.200 --> 0:06:07.200 That's a little bit of a statistics side note. If 0:06:07.240 --> 0:06:09.760 you're between the age of twenty five and twenty eight, 0:06:10.080 --> 0:06:12.359 the average is forty three thousand, and the median is 0:06:12.400 --> 0:06:15.680 thirty four thousand. Twenty nine and thirty two average is 0:06:15.720 --> 0:06:18.599 now ninety four thousand, whereas the median is eighty eight thousand, 0:06:18.680 --> 0:06:22.000 five hundred. Thirty three to thirty seven average is one 0:06:22.080 --> 0:06:24.680 hundred and seven thousand, and then the median is one 0:06:24.760 --> 0:06:27.000 hundred and six thousand, So we're actually getting a bit 0:06:27.000 --> 0:06:29.200 closer with that one, but then it does dive away. 0:06:29.320 --> 0:06:31.839 At thirty eight to forty one, the average is one 0:06:31.920 --> 0:06:34.279 hundred and seventy three thousand, five hundred, and the median 0:06:34.320 --> 0:06:37.320 is one hundred and fifty five thousand, and then between 0:06:37.360 --> 0:06:40.280 the ages of forty two and forty six, the average 0:06:40.360 --> 0:06:43.120 is two hundred and thirty thousand, and then the median 0:06:43.240 --> 0:06:44.479 is two hundred thousand. 0:06:44.720 --> 0:06:46.360 But can you see why. 0:06:46.120 --> 0:06:49.680 Yes, I probably would prefer if like comparison is the 0:06:49.720 --> 0:06:51.640 thief of joy, right, Oh, so, like we need to 0:06:51.680 --> 0:06:54.440 also say that because here I am being like, here's 0:06:54.440 --> 0:06:57.760 some numbers to compare yourself to, but also don't compare yourself, 0:06:58.000 --> 0:06:59.920 Like we want to be on track and we want 0:06:59.920 --> 0:07:01.640 to feel like we can compare ourselves. 0:07:01.640 --> 0:07:02.360 But that's where I go. 0:07:02.680 --> 0:07:05.440 I'd probably be comparing myself to the media and not 0:07:05.480 --> 0:07:09.880 necessarily the average usually because it's more accurate, but also 0:07:09.880 --> 0:07:11.239 it makes me feel better about myself. 0:07:11.520 --> 0:07:13.960 Absolutely, as I'm looking at this, I'm like, Okay, there's 0:07:13.960 --> 0:07:16.120 some numbers that I think I need to get on 0:07:16.120 --> 0:07:17.000 top of some things. 0:07:17.040 --> 0:07:18.200 If you're listening to this and you're. 0:07:18.080 --> 0:07:20.280 Kind of like, worry, just know that that's why you're 0:07:20.280 --> 0:07:22.280 here and we can fix this. 0:07:22.640 --> 0:07:24.520 But like it wasn't that cool, because like the people 0:07:24.520 --> 0:07:26.480 that are listening to this show, they actually just want 0:07:26.520 --> 0:07:29.320 better for themselves. Like even if you're like, oh, I 0:07:29.320 --> 0:07:31.800 don't stuck up at all. Think about all the people 0:07:31.800 --> 0:07:34.400 that aren't even considering that, and the fact that you 0:07:34.480 --> 0:07:37.080 have so much time ahead of you to like fix 0:07:37.160 --> 0:07:38.920 that or put yourself in a different. 0:07:38.600 --> 0:07:40.600 Position, like what a position to be in? 0:07:40.720 --> 0:07:43.400 Exactly, you've already maken the right first step. 0:07:43.560 --> 0:07:45.120 I mean, the hardest thing is to listen to me, 0:07:45.360 --> 0:07:47.560 so like you're already past. 0:07:47.400 --> 0:07:50.960 It can confirm, no, just kidding, So what does this 0:07:51.320 --> 0:07:51.800 tell us? 0:07:51.960 --> 0:07:57.480 Okay, So when looking at this information for our community specifically, 0:07:57.600 --> 0:08:00.000 it says that the biggest jump is in your lefe 0:08:00.200 --> 0:08:03.440 twenties to early thirties, and if you look at it, 0:08:03.480 --> 0:08:07.520 supernuation balances actually almost double, like they more than double. 0:08:07.880 --> 0:08:10.280 And this is the magic of compound interest. So you 0:08:10.320 --> 0:08:12.240 know how, I'm like, oh, it takes time back, Like 0:08:12.280 --> 0:08:14.600 you know, you've started your shares's account and you're like 0:08:14.640 --> 0:08:17.640 investing consistently, but you wouldn't have seen it just double. 0:08:18.120 --> 0:08:21.720 But that starts to kick in after ten ish years. 0:08:22.000 --> 0:08:26.160 So like compound interest, its power is in the long term. 0:08:26.280 --> 0:08:27.400 So after ten. 0:08:27.120 --> 0:08:30.320 Plus years, that's where you really start to see stuff doubling. 0:08:31.280 --> 0:08:34.280 And if you think about late twenties, you've probably had 0:08:34.320 --> 0:08:38.600 nearly ten years of really solid contributions late thirties. You know, 0:08:38.720 --> 0:08:41.000 not all of us were, you know, contributing for the 0:08:41.040 --> 0:08:42.600 start of our twenties. 0:08:42.760 --> 0:08:44.319 So that kind of makes sense. 0:08:44.520 --> 0:08:48.760 Like that data makes sense, and by mid thirties, most 0:08:48.800 --> 0:08:52.160 people are actually hitting six figures like and that's really 0:08:52.200 --> 0:08:56.360 normal and that's really exciting. Then in your forties, if 0:08:56.400 --> 0:08:58.400 we kind of go down the data set a little bit, 0:08:58.480 --> 0:09:02.240 the gap between average and medium, it really does widen. 0:09:02.920 --> 0:09:04.920 And I pointed that out when I was reading it out, 0:09:05.080 --> 0:09:08.439 but that's literally life events. In your forties, that's when 0:09:08.480 --> 0:09:10.840 we start to see the real impact of you taking 0:09:10.880 --> 0:09:14.199 a career break because you've had uneven contributions. So whether 0:09:14.240 --> 0:09:17.000 you took time off for yourself, whether you took time 0:09:17.040 --> 0:09:19.360 off to have kids, that's when we really start to 0:09:19.360 --> 0:09:20.120 see the difference. 0:09:20.160 --> 0:09:21.559 And you saw that gap. 0:09:21.400 --> 0:09:24.240 Gotch you Okay, God, that's scary. It's really good to 0:09:24.240 --> 0:09:24.800 see that ease. 0:09:24.960 --> 0:09:28.000 But like data is telling us a story, and you 0:09:28.000 --> 0:09:29.199 know what we can do with stories. 0:09:29.559 --> 0:09:32.640 Learn from that absolutely, and this is why soups putting 0:09:32.640 --> 0:09:34.120 is so important. But that's a story. 0:09:34.160 --> 0:09:36.640 That's another conversation and a whole other episode where we 0:09:36.640 --> 0:09:36.839 will do. 0:09:38.800 --> 0:09:40.760 Okay, so if I want to sort my super which 0:09:40.800 --> 0:09:42.600 I do. What's the first thing I should be doing. 0:09:42.720 --> 0:09:44.320 I think I've said it on the show before, and 0:09:44.360 --> 0:09:46.040 it's not the sexiest way of putting it, but like 0:09:46.080 --> 0:09:48.400 we're going to do a hygiene check. Ye, like we're 0:09:48.440 --> 0:09:51.240 just going to clean house, right, So that hygiene check 0:09:51.280 --> 0:09:53.720 means we log into our superannuation account. 0:09:53.920 --> 0:09:55.200 I want you to know your balance. 0:09:55.600 --> 0:09:57.320 I want you to know how many fees you're paying 0:09:57.320 --> 0:09:58.840 and whether you're comfortable with that. 0:09:59.240 --> 0:10:00.600 I want you to have a look at whether you 0:10:00.679 --> 0:10:01.720 have insurance or not. 0:10:01.920 --> 0:10:05.959 And if you don't think about getting it, I cannot, 0:10:06.120 --> 0:10:11.520 Like I cannot drive home the importance of insurances. Don't 0:10:11.559 --> 0:10:13.720 get me wrong, it's going to look different for everybody. 0:10:13.840 --> 0:10:16.120 If you're in your early twenties and you're still lucky 0:10:16.200 --> 0:10:18.480 enough to live at home, you don't have any debts, 0:10:18.480 --> 0:10:21.040 you probably don't need a lot of insurance. But if 0:10:21.120 --> 0:10:24.880 you're like me, and you know, I'm thirty four, that's terrifying, 0:10:25.640 --> 0:10:27.439 and I have a kid, and I have a husband 0:10:27.480 --> 0:10:30.240 and have a mortgage. If I wasn't here anymore, I've 0:10:30.280 --> 0:10:32.560 just lumped a whole heap of responsibility on someone who 0:10:32.600 --> 0:10:34.760 can't pay for that right, So we want to make 0:10:34.800 --> 0:10:37.080 sure that that's okay. And then the last thing I 0:10:37.120 --> 0:10:39.920 want you to look at in your subernuation account is 0:10:40.080 --> 0:10:41.560 your portfolio type. 0:10:41.840 --> 0:10:43.800 So what's your risk appetite? 0:10:44.000 --> 0:10:45.480 Are you in a balanced fund? Are you in a 0:10:45.559 --> 0:10:48.560 high growth fund? Are you in a conservative fund? If so, 0:10:48.679 --> 0:10:51.120 why have you done their questionnaire? Have you looked at 0:10:51.160 --> 0:10:54.079 how much impact that can have over the long term 0:10:54.320 --> 0:10:56.160 of not doing it? Because this is going to give 0:10:56.200 --> 0:10:57.960 you a really good idea of just or are you 0:10:57.960 --> 0:11:00.240 starting from? Because like how many of us just have 0:11:00.320 --> 0:11:02.080 our heads in the sand about super Maybe you know 0:11:02.080 --> 0:11:04.880 the number because you recently did your tax return, but 0:11:05.200 --> 0:11:07.360 a lot of us also have no idea. 0:11:07.800 --> 0:11:11.160 Yes, that's so true. So once we familiarize ourselves with 0:11:11.200 --> 0:11:13.080 the numbers, what do we do next? 0:11:13.280 --> 0:11:13.640 All right? 0:11:13.720 --> 0:11:15.840 So what I want you to do and I have 0:11:16.000 --> 0:11:19.040 mentioned this tool a number of times on our show before, 0:11:19.080 --> 0:11:21.600 but I want you to use your super Comparison tool, 0:11:21.640 --> 0:11:24.760 which is a free tool provided by the Australian government. 0:11:24.800 --> 0:11:27.840 So it's like not bias, it's not built by a 0:11:27.840 --> 0:11:30.120 super company, like they're not trying to sell you anything. 0:11:30.200 --> 0:11:32.760 It's just going to do the job right and to 0:11:32.800 --> 0:11:34.600 get to it. You go to MyGov, you go to 0:11:34.640 --> 0:11:38.160 the ATO portal, you click super and it will. 0:11:37.920 --> 0:11:40.079 Take you through to your super comparison tool. 0:11:40.160 --> 0:11:42.319 You can also just Google it, but personally I like 0:11:42.400 --> 0:11:44.960 going through the mygove platform because it means you would 0:11:44.960 --> 0:11:47.200 have had to see what your balance was to begin with. 0:11:47.320 --> 0:11:47.920 I'd avoid it. 0:11:48.120 --> 0:11:50.719 And then this tool is going to line up all 0:11:50.760 --> 0:11:53.200 the my super products in the country and it's going 0:11:53.280 --> 0:11:54.200 to show you a few things. 0:11:54.200 --> 0:11:55.160 So it's going to show. 0:11:55.000 --> 0:11:58.360 You the net returns are over five and then over 0:11:58.400 --> 0:12:01.520 ten years. It's going to are you what you'd have 0:12:01.760 --> 0:12:04.840 if you'd been in each fund with a fifty k balance. 0:12:04.880 --> 0:12:08.040 It just like shows you the differences and which funds 0:12:08.400 --> 0:12:10.120 have failed. 0:12:09.920 --> 0:12:11.319 The upper performance test. 0:12:11.600 --> 0:12:14.480 Okay, to me, that's really important because it's kind of 0:12:14.520 --> 0:12:16.920 like a hygiene factor. Again, Can we just make sure 0:12:16.960 --> 0:12:20.120 we're not in a fund that failed, like, because then 0:12:20.320 --> 0:12:24.240 maybe I would be very very interested in changing. 0:12:24.559 --> 0:12:24.800 Yeah. 0:12:24.960 --> 0:12:27.920 I can't give you advice and say get out of 0:12:27.920 --> 0:12:30.640 that fund, because if for some reason aligns with your values, 0:12:30.679 --> 0:12:33.319 maybe you do you. But like I know that if 0:12:33.360 --> 0:12:35.560 my fund failed the performance test, I'd be. 0:12:35.640 --> 0:12:38.839 Out ah ah ah, But no advice to give it 0:12:39.000 --> 0:12:41.200 just read between the lines. Okay, let's go on a 0:12:41.240 --> 0:12:43.040 really quick break because it's a lot to take in 0:12:43.480 --> 0:12:49.200 it is, and we'll dive back in on the food side. 0:12:50.040 --> 0:12:52.640 All right, we are back back and we are talking 0:12:52.640 --> 0:12:55.200 all things supernuation, and I feel like I have just 0:12:55.320 --> 0:12:57.960 yapped and yapped and yapped. And the thing that I 0:12:58.080 --> 0:13:01.320 like with your super comparison tool is it compares like 0:13:01.400 --> 0:13:04.240 for like options. Like I don't want you to look 0:13:04.280 --> 0:13:07.320 at different things that are being put in front of 0:13:07.320 --> 0:13:09.760 you for marketing purposes. So we know that there are 0:13:09.760 --> 0:13:12.600 a lot of other comparison websites where if you google 0:13:12.679 --> 0:13:15.720 like compare the best supers, it's very likely to show 0:13:15.760 --> 0:13:19.079 you the ones that the superannuation companies are paying for 0:13:19.160 --> 0:13:21.160 and then not show you the super companies that are 0:13:21.200 --> 0:13:23.360 doing well but haven't paid for that type of marketing. 0:13:23.480 --> 0:13:27.680 So don't compare a conservative option either to like a 0:13:27.760 --> 0:13:30.520 fund with a growth option. So make sure that if 0:13:30.640 --> 0:13:33.240 you are comparing, we're just doing apples to apples. So 0:13:33.400 --> 0:13:35.480 that's why you before went and worked out what your 0:13:35.559 --> 0:13:39.319 risk profile was, because like, let's pretend beck your growth 0:13:39.440 --> 0:13:42.520 risk profile. Why are we looking at conservative options? 0:13:42.640 --> 0:13:43.000 Gotcha? 0:13:43.200 --> 0:13:45.120 Like just filter it by growth, like be like, I 0:13:45.200 --> 0:13:47.160 know I'm growth, so I'm only going to look at 0:13:47.160 --> 0:13:49.360 the funds growth options and then I'm going to look 0:13:49.360 --> 0:13:51.520 at all of the funds and compare their growth options. 0:13:51.559 --> 0:13:54.400 So I'm getting apples with apples instead of going, oh, well, 0:13:54.440 --> 0:13:57.640 you know, I compared the Australian super conservative to the 0:13:57.840 --> 0:14:01.360 UNI super growth, Like what if those aren't actually comparable. 0:14:01.400 --> 0:14:03.439 They're not on the same page, Like they're for different 0:14:03.480 --> 0:14:06.080 people and different things. So if you have done your 0:14:06.160 --> 0:14:09.240 risk profile and you are conservative, we're only looking at 0:14:09.240 --> 0:14:12.199 conservative options. If you are high growth, we're only looking 0:14:12.200 --> 0:14:13.280 at high growth options. 0:14:13.440 --> 0:14:14.400 And do you know what that does? 0:14:14.679 --> 0:14:18.160 Makes your life six million times easier because less options, 0:14:18.720 --> 0:14:19.760 less worry. 0:14:19.520 --> 0:14:22.280 Absolutely statistically six million times easier. 0:14:22.360 --> 0:14:25.120 So I always throw these things around, like where we 0:14:25.200 --> 0:14:28.200 talk about growth and conservative, So I would say the 0:14:28.240 --> 0:14:30.720 most common term in the industry when it comes to 0:14:30.800 --> 0:14:35.480 risk profile because it's like the default is balanced option. 0:14:35.720 --> 0:14:38.360 So you might have heard of that before where people go, oh, 0:14:38.400 --> 0:14:42.720 that's the superanuation balanced option, and that I feel like 0:14:42.760 --> 0:14:44.480 people are attracted to the word balanced. 0:14:44.920 --> 0:14:47.280 Yeah feel safe, right, It does feel safe. 0:14:47.080 --> 0:14:49.920 Yeah, but it might not be reflective of your goals 0:14:49.920 --> 0:14:53.120 and your values, right, but that typically only holds or 0:14:53.120 --> 0:14:56.160 I should say holds not only holds, but that holds 0:14:56.600 --> 0:14:58.840 sixty to seventy percent growth assets. 0:14:59.240 --> 0:14:59.960 What does that mean? 0:15:00.080 --> 0:15:02.600 Yeah, okay, if you're pie chart which is one hundred percent, 0:15:02.840 --> 0:15:05.680 sixty to seventy percent will be shares. The rest will 0:15:05.720 --> 0:15:09.359 be capital stable assets, which are things like term deposits 0:15:09.400 --> 0:15:10.440 and cash and bonds. 0:15:10.800 --> 0:15:12.480 I see, because if. 0:15:12.360 --> 0:15:16.560 You look at a growth option, that pie chart becomes 0:15:16.680 --> 0:15:20.280 ninety percent shares, yeah, and then like ten percent more 0:15:20.320 --> 0:15:23.720 stable assets. And like they're different for every single option, 0:15:23.800 --> 0:15:26.480 So don't go, oh Victoria said that a growth option 0:15:26.560 --> 0:15:31.000 would have ninety percent. It's actually different per serrounuation company. 0:15:31.200 --> 0:15:33.080 So the way that and I'm just using these as 0:15:33.200 --> 0:15:35.240 examples so that you don't go, what are you talking about? 0:15:35.400 --> 0:15:38.200 Like if you look at Australian super for example, their 0:15:38.560 --> 0:15:42.440 percentages in their pie charts are very different to a 0:15:42.520 --> 0:15:45.440 unisuper or arrest or a host plus. They're like, they're 0:15:45.480 --> 0:15:48.880 just very different because they all have different methodologies of 0:15:49.200 --> 0:15:53.040 ascertaining what is like the best breakdown. But on average, 0:15:53.080 --> 0:15:55.440 I would say growth options like eighty to ninety percent 0:15:55.520 --> 0:15:59.400 growth assets. Sure, And if that aligns with your values. 0:15:59.400 --> 0:16:00.320 That's all we looking at. 0:16:00.400 --> 0:16:01.240 Okay, got you? 0:16:01.600 --> 0:16:04.200 So, Beck, If you came out as growth and hypothetically 0:16:04.240 --> 0:16:07.800 your growth, your returns might look higher, but that actually 0:16:07.840 --> 0:16:10.080 just might be the risk profile, not your fund doing 0:16:10.120 --> 0:16:13.080 a better job. You might go, oh, well, I came 0:16:13.080 --> 0:16:15.080 out as conservative, and then all of a sudden, I'm 0:16:15.120 --> 0:16:18.440 saying better returns in the growth one. Well yeah, you're 0:16:18.480 --> 0:16:22.360 always always, but like the more risk you take on, 0:16:22.560 --> 0:16:23.880 the higher the returns. 0:16:23.960 --> 0:16:25.760 High risk curry war exactly. 0:16:26.200 --> 0:16:28.800 So usually when you look at it, it might go, oh, 0:16:28.960 --> 0:16:32.400 like the you know, conservative portfolio is returning six percent 0:16:32.560 --> 0:16:35.920 on average, you know, the medium growth is returning like 0:16:36.000 --> 0:16:38.280 seven or eight percent, and then the like high growth 0:16:38.320 --> 0:16:39.280 is nine or ten percent? 0:16:39.280 --> 0:16:40.600 You got, but why I want nine or ten? 0:16:41.360 --> 0:16:42.600 Well, then maybe you need to go back to your 0:16:42.680 --> 0:16:45.320 risk profile if you don't like the six percent option 0:16:45.400 --> 0:16:46.600 you came out with, so like. 0:16:47.000 --> 0:16:48.480 Work out what works for you? 0:16:48.560 --> 0:16:50.400 Sure, sure, okay, and what next? 0:16:50.560 --> 0:16:54.680 Okay, so boring, but just understand the fees boring now 0:16:55.120 --> 0:16:56.960 boring always. 0:16:56.280 --> 0:16:57.200 Like it was never good. 0:16:57.200 --> 0:16:59.000 And as a financial advisor I used to have to 0:16:59.040 --> 0:17:01.880 do this forklient so and I would always be like, look, 0:17:02.240 --> 0:17:04.680 like I didn't like doing it either, because this isn't 0:17:04.720 --> 0:17:06.960 the sexy part of like super because I should know 0:17:07.000 --> 0:17:11.480 about my growth. Oh ees boring, But also on those also, 0:17:11.520 --> 0:17:13.000 I need you to know what you're paying to make 0:17:13.040 --> 0:17:15.919 sure that you're not getting stooged. And the reason that 0:17:15.960 --> 0:17:19.120 we care about these things is because it eats into 0:17:19.200 --> 0:17:21.480 your growth. So like, if you're paying more for something, 0:17:21.480 --> 0:17:24.919 you're getting less in return. Or I do say, often 0:17:25.040 --> 0:17:27.560 pay peanuts, get monkeys. But if you're paying more fees 0:17:27.600 --> 0:17:30.520 than necessary for the same return as another fund, maybe. 0:17:30.320 --> 0:17:32.240 You want to switch, right. 0:17:32.640 --> 0:17:34.920 But also I would say that most of the really 0:17:34.960 --> 0:17:38.520 big superannuation funds fees are average, Like I don't think 0:17:38.520 --> 0:17:40.560 I've ever seen one that I'm like, oh my god, 0:17:40.640 --> 0:17:42.680 Like that's so awful. I would never go with that 0:17:42.720 --> 0:17:45.320 super company because their fees are astronomical. Right, They're all 0:17:45.320 --> 0:17:48.040 going to be like semi similar, but I want you 0:17:48.160 --> 0:17:52.120 to understand them. Right, So every single fund will charge 0:17:52.400 --> 0:17:55.280 two different types of fees on average, So like, please 0:17:55.320 --> 0:17:58.760 don't again bucket me, but this is what usually happens 0:17:58.800 --> 0:18:02.840 in most funds. You've got admin fees and then investment fees, 0:18:03.320 --> 0:18:06.679 and admin fees cover the administration of your account, and 0:18:06.720 --> 0:18:09.360 then investment fees are going to be different based during 0:18:09.359 --> 0:18:11.840 your risk profile, because if you're more risky, we're paying 0:18:11.880 --> 0:18:15.080 more because we're investing more. If you're more conservative, they're like, well, 0:18:15.080 --> 0:18:16.320 we're not going to charge you through the no, so 0:18:16.440 --> 0:18:18.880 something that you're not really using, that's so nice, right, 0:18:18.960 --> 0:18:22.320 Well yeah, let's pretend it's nice. So an admin fee, 0:18:22.400 --> 0:18:24.840 I would say, is usually a fixed It's either a 0:18:24.960 --> 0:18:28.280 weekly or monthly amount is what they will report on. 0:18:28.640 --> 0:18:30.879 So it might be like your admin fee is a 0:18:30.920 --> 0:18:33.360 dollar fifty a week, or it might be seventy eight 0:18:33.359 --> 0:18:36.919