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

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Speaker 1: woman and I'm here to acknowledge country t Glenn Young

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Speaker 1: Ganya Niana, Kaka yah y and beIN Ahaka Nian our

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Speaker 1: gay In Mbina, yakarum jar dominyamiga Umagahawakaman damon imlan Bumba

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Speaker 1: bang Gadabomba in and now in wakah ghana on yak

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Speaker 1: rum jar Watnadaa. 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 Abiginal 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 tell you whether your super is giving

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Speaker 3: future freedom or coasting.

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Speaker 2: Without a game plan yet.

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Speaker 3: One of our most popular episodes this year was about

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Speaker 3: how much super you should have? So today we're doing

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Speaker 3: a follow up and tackling your most asked questions I'm

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Speaker 3: excited and with me is our go to for all

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Speaker 3: things money. Victoria de vine, Hi, Hello, I'm really excited.

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Speaker 3: But also I was just saying to you off air,

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Speaker 3: I was like, I'm exhausted today. Yes, see know what

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Speaker 3: I'm coming at you with facts, no funny, no business,

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Speaker 3: Like I just don't have the energy for that right now.

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Speaker 2: But I'm very excited but also very tired.

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Speaker 3: Yeah, so fair. I can't complain though, Like, what a

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Speaker 3: privilege to be exhausted of something I chose to do.

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Speaker 3: It's fulfilling, but it's still You're tired.

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Speaker 2: Your body's tired.

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Speaker 3: What can you do?

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Speaker 2: Your body is not a happy camper?

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Speaker 3: Right, No, and that's okay. You need two pandles tune

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Speaker 3: your and you need to back it up with two coffees,

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Speaker 3: But that is okay. I'm very excited because I love

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Speaker 3: nothing more than seeing people literally care about their retirement

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Speaker 3: and then getting to thrive during that period of time,

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Speaker 3: because I just think that everybody deserves that. Now. You

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Speaker 3: guys absolutely loved seeing how you're super compared to other Australians,

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Speaker 3: which I think is really fun because I think so

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Speaker 3: many of us we just google it once six years

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Speaker 3: ago and feel a little bit behind and then never

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Speaker 3: think about it again. We actually collected the data from

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Speaker 3: our own community over the last twelve months, so I

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Speaker 3: thought that we could just start by sharing that. And

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

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

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Speaker 3: more comparable to like where we are as listeners. Like

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

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

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

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

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

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Speaker 3: bit of a snapshot from our Shees on the Money community,

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Speaker 3: and I've just done by age bands, so I've copied

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Speaker 3: what the superannuation companies do so that you could like

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Speaker 3: compare it to your supercompany if you wanted to later.

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Speaker 3: And we'll obviously use this information to create like a

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Speaker 3: social tile so you can go back to it and

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Speaker 3: like see it visually, because it's like not the same

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Speaker 3: as just having it read out to you. Right, So

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Speaker 3: if you're between twenty and twenty four in the She's

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Speaker 3: on the money community, the average is twenty six thousand dollars,

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

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Speaker 3: So just to quickly talk about why I as a

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Speaker 3: statz nerd. I don't know if everybody knows this, but

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Speaker 3: way back when I was at university, I studied statistics.

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Speaker 3: It's one of my mind is because I am just

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Speaker 3: a really big nerd, I always talk about the average

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Speaker 3: and then the median. I actually think that the median

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Speaker 3: is a better reflection. But most people talk about the

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Speaker 3: average because you go, oh, ve what's the average, It's like, well,

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Speaker 3: that's good. But what happens with the averages? You take

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Speaker 3: every single number, So say there's like one hundred people

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Speaker 3: in our sample. There's actually thousands, But say there's one

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Speaker 3: hundred people. You add all of their numbers together and

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Speaker 3: then you divide it by one hundred. So you're getting

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Speaker 3: like the lowest of the low and then the highest

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Speaker 3: of the high. And what happens with that is if

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

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Speaker 3: you've got someone who has you know, they're twenty one,

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Speaker 3: and they for some reason have a heap of money

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Speaker 3: in their superannuation and they've got millions. And then you

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Speaker 3: also have people who maybe you know, have never worked

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Speaker 3: a day in their life and they're in the sample,

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Speaker 3: so they've got zero dollars. We're taking those numbers into consideration,

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Speaker 3: and if I ask you, do you feel like that's

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Speaker 3: comparable to your situation, I think.

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Speaker 2: You go probably not.

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Speaker 3: So the median is the number that just sit smack

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Speaker 3: bang in the middle. So it's not like adding them

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

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Speaker 3: there's one hundred people, we're going to fifty, like what

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Speaker 3: is that fiftieth number? And that is the person that's

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

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

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

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

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

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

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Speaker 3: numbers like the one at the top of that.

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Speaker 2: So often you will.

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Speaker 3: See the average is often higher than what the median is.

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Speaker 3: And that's why I like to work off a median

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Speaker 3: instead of an average, because I think an average can

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Speaker 3: not be as accurate anyway. That's a little bit of

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Speaker 3: a statistics side note. If you're between the age of

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Speaker 3: twenty five and twenty eight, the average is forty three thousand,

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Speaker 3: and the median is thirty four thousand. Twenty nine and

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Speaker 3: thirty two average is now ninety four thousand, whereas the

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Speaker 3: median is eighty eight thousand, five hundred. Thirty three to

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Speaker 3: thirty seven average is one hundred and seven thousand, and

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Speaker 3: then the median is one hundred and six thousand. So

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Speaker 3: we're actually getting a bit closer with that one, but

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Speaker 3: then it does dive away. At thirty eight to forty one,

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Speaker 3: the average is one hundred and seventy three thousand, five hundred,

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Speaker 3: and the median is one hundred and fifty five thousand,

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Speaker 3: and then between the ages of forty two and forty six,

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

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Speaker 3: the median is two hundred thousand.

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Speaker 2: But can you see why, Yes.

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Speaker 3: I probably would prefer if like, comparison is a thief

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

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

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Speaker 3: 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 2: 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.

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Speaker 2: Accurate, but also it makes me feel better about myself.

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Speaker 3: Absolutely, as I'm looking at this, I'm like, Okay, there's

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Speaker 3: some numbers that I think I need to get on

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Speaker 3: top of some things. If you're listening to this and

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Speaker 3: you're kind of like worried, just know that that's why

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Speaker 3: you're here and we can fix this. But like it

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Speaker 3: wasn't that cool because like the people that are listening

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Speaker 3: to this show, they actually just want better for themselves. Yeah,

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Speaker 3: Like even if you're like, oh, I don't stuck up

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Speaker 3: at all, think about all the people that aren't even

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Speaker 3: considering that and the fact that you have so much

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Speaker 3: time ahead of you to like fix that or put

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Speaker 3: yourself in a different position, like what a position to

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Speaker 3: be in? Exactly, you've already maken the right first step.

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Speaker 2: I mean, the hardest thing is to listen to me,

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Speaker 2: so like you're already past it.

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Speaker 3: Can confirm no, just kidding, So what does this tell

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

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Speaker 3: community specifically, it says that the biggest jump is in

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Speaker 3: your late twenties to early thirties. And if you look

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Speaker 3: at it, superannuation balances actually almost double, like they more

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Speaker 3: than double.

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Speaker 2: And this is the magic of compound interest. So you

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Speaker 2: know how, I'm like, oh, it takes time.

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

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Speaker 3: you're like investing consistently, but you wouldn't have seen it

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Speaker 3: just double. But that starts to kick in after ten

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Speaker 3: ish years. So like compound interest, its power is in

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Speaker 3: the long term. So after ten plus years, that's where

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Speaker 3: you really start to see stuff doubling. And if you

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Speaker 3: think about late twenties, you've probably had nearly ten years

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Speaker 3: of really solid contributions late thirties. You know, not all

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Speaker 3: of us were, you know, contributing for the start of

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Speaker 3: our twenties, So that kind of makes sense, Like that

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Speaker 3: data makes sense, And by mid thirties, most people are

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Speaker 3: actually hitting six figures, like and that's really normal and

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Speaker 3: that's really exciting. Then in your forties, if we kind

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

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

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Speaker 3: 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. And you saw that gap gotch you. Okay, God,

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Speaker 3: that's scary. It's really good to see that ease. But

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

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Speaker 3: what we can do with stories. Learn from that absolutely,

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Speaker 3: and this is why putting is so important. But that's

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Speaker 3: a story. That's another conversation and a whole other episode

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Speaker 3: where we'll do all episodes. Okay, So if I want

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Speaker 3: to sort of my super which I do, what's the

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Speaker 3: first thing I should be doing. I think I've said

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Speaker 3: it on the show before and it's not the sexiest

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Speaker 3: way of putting it, but like, we're going to do

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Speaker 3: a hygiene check. Yep, we're just going to clean house, right,

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Speaker 3: So that hygiene check means we log into our supernuation account.

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Speaker 3: I want you to know your balance, I want you

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Speaker 3: to know how many fees you're paying and whether you're

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Speaker 3: comfortable with that. I want you to have a look

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Speaker 3: at whether you have insurance or not. And if you

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Speaker 3: don't think about getting it, I cannot, like I cannot

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Speaker 3: drive home. The importance of insurances. Don't get me wrong,

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Speaker 3: it's going to look different for everybody. If you're in

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Speaker 3: your early twenties and you're still lucky enough to live

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Speaker 3: at home, you don't have any debts, you probably don't

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Speaker 3: need a lot of insurance. But if you're like me,

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

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

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Speaker 3: a mortgage. If I wasn't here anymore, I've just lumped

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Speaker 3: a whole heap of responsibility on someone who can't pay

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Speaker 3: for that, right, So we want to make sure that

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

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Speaker 3: to look at in your superanuation account is your portfolio type.

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Speaker 2: 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 where 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. Yes, that's

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Speaker 3: so true. So once we familiarize ourselves with the numbers,

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Speaker 3: what do.

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Speaker 2: We do next?

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Speaker 3: All right, So what I want you to do and

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Speaker 3: I have mentioned this tool a number of times on

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Speaker 3: our show before, but I want you to use your

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Speaker 3: Super Comparison Tool, which is a free tool provided by

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Speaker 3: the Australian government. So it's like not bias, it's not

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Speaker 3: built by a super company, like they're not trying to

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Speaker 3: sell you anything.

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Speaker 2: It's just going to do the job right.

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Speaker 3: And to get to it, you go to Mygove, You

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Speaker 3: go to the ATO portal, you click super and it

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Speaker 3: will take you through to your Super Comparison Tool.

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Speaker 2: 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.

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Speaker 2: Was to begin with, you I'd avoid it. And then

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Speaker 2: this tool is.

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Speaker 3: Going to line up all the my superproducts in the

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Speaker 3: country and it's going to show you a few things.

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Speaker 3: So it's going to show you the net returns are

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Speaker 3: over five and then over ten years. It's going to

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Speaker 3: show you what you'd have if you'd been in each

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Speaker 3: fund with a fifty k balance. It just like shows

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Speaker 3: you the differences and which funds have failed the upper

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Speaker 3: performance test. So to me, that's really important because it's

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Speaker 3: kind of like a hygiene factor. Again, can we just

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Speaker 3: make sure we're not in a fund that failed, like,

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Speaker 3: because then maybe I would be.

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Speaker 2: Very very interested in changing.

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

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Speaker 3: of that fund because if for some reason it aligns

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Speaker 3: with your values, maybe you do you. But like I

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Speaker 3: know that if my fund failed the performance test, I'd

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Speaker 3: be out. Ah ah, But no advice give it. Just

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Speaker 3: read between the lines. Okay, let's go on a really

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Speaker 3: quick break because it's a lot to take in it is,

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Speaker 3: and we'll dive back in on the food side. All right,

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Speaker 3: we are backback and we are talking all things superannuation,

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Speaker 3: and I feel like I have just yapped and yapped

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Speaker 3: and yapped. And the thing that I like with your

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Speaker 3: super comparison tool is it compares like for like options

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Speaker 3: like I don't want you to look at different things

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Speaker 3: that are being put in front of you for marketing purposes.

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Speaker 3: So we know that there are a lot of other

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Speaker 3: comparison websites where if you google like compare the best supers,

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Speaker 3: it's very likely to show you the ones that the

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Speaker 3: superannuation companies are paying for and then not show you

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Speaker 3: the super companies that are doing well but haven't paid

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Speaker 3: for that type of marketing. So don't compare a conservative

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Speaker 3: option either to like a fund with a growth option.

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Speaker 3: So make sure that if you are comparing, we're just

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Speaker 3: doing apples to apples. So that's why you before went

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Speaker 3: and worked out what your risk profile was, because like,

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Speaker 3: let's pretend beck your growth risk profile.

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Speaker 2: Why are we looking at conservative options?

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Speaker 3: Gotcha? But just filter it by growth, like be like,

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

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Speaker 3: at the funds growth options and then I'm 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 those aren't actually comparable, They're

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Speaker 3: not on the same page, like they're for different people

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

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

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Speaker 3: If you are high growth, we're only looking at high

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Speaker 3: growth options.

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Speaker 2: And do you know what that does?

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

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Speaker 3: less worry, absolutely statistically six million times easier. So I

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Speaker 3: always throw these things around, like where we talk about

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Speaker 3: growth and conservative, So I would say the most common

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Speaker 3: term in the industry when it comes to risk profile

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Speaker 3: because it's like the default is balanced options. So you

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

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Speaker 3: that's the superannuation 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 2: Yeah, feel safe, right? It does feel safe, yeah, but

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Speaker 2: it might not be a real like give of your

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Speaker 2: goals and your values.

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Speaker 1: Right.

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Speaker 3: But that typically only holds or I should say holds

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Speaker 3: not only holds, but that holds sixty to seventy percent

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Speaker 3: growth assets.

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Speaker 2: What does that mean?

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Speaker 3: If you're pie chart, which is one hundred percent, sixty

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

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

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Speaker 3: cash and bonds. I see, Whereas if you look at

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Speaker 3: a growth option, that pie chart becomes ninety percent shares, yeah,

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Speaker 3: and then like ten percent more stable assets, and like

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Speaker 3: they're different for every single option, So don't go, oh

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Speaker 3: Victoria said that a growth option would have ninety percent.

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Speaker 3: It's actually different per serrounuation company. So the way that

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Speaker 3: and I'm just using these as examples so that you

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Speaker 3: don't go, what are you talking about? Like, if you

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Speaker 3: look at Australian super for example, their percentages in their

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Speaker 3: pie charts are very different to a unisuper or arrest

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Speaker 3: or a host plus They're like, they're just very different

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Speaker 3: because they all have different methodologies of ascertaining what is

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Speaker 3: like the best breakdown. But on average, I would say

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Speaker 3: growth options like eighty to ninety percent growth assets. Sure,

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Speaker 3: and if that aligns with your values, that's all we're

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Speaker 3: looking at.

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Speaker 2: Okay, got you? So, Beck, if you came out as

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Speaker 2: growth and hypothetically your.

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

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

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

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

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

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Speaker 3: not always, but like, the more risk you take on,

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Speaker 3: the higher the returns. High risk Curry war exactly. So

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Speaker 3: 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 2: You go, 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 2: Work out what works for you.

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Speaker 3: Sure, sure, okay, and what next?

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Speaker 2: Okay? So boring, but just understand the fees.

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Speaker 3: Boring now boring, always like it was never good.

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Speaker 2: And as a financial advisor, I used.

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Speaker 3: To have to do this for clients and I would

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Speaker 3: always be like, look like I didn't like doing it

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Speaker 3: either because this isn't the sexy part of like super

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Speaker 3: because I should know about my growth. Oh ees boring,

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Speaker 3: But also on those also, I need you to know

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Speaker 3: what you're paying to make sure that you're not getting stooged.

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Speaker 3: And the reason that we care about these things is

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Speaker 3: because it eats into your growth. So like, if you're

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Speaker 3: paying more for something, you're getting less in return or

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Speaker 3: I do say, often pay peanuts, get monkeys. But if

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Speaker 3: you're paying more fees than necessary for the same return

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Speaker 3: as another fund, maybe you.

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Speaker 2: 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. So you've got admin fees and then

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Speaker 3: investment fees. And admin fees cover the administration of your account,

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

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

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Speaker 2: Paying more because we're investing more.

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Speaker 3: If you're more conservative, they're like, well, we're not going

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Speaker 3: to charge you through the no, so something that you're

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Speaker 3: not really using, that's so nice, right, Well yeah, let's

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Speaker 3: pretend it's nice. So an admin fee, I would say,

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Speaker 3: is usually a fixed it's either a weekly or monthly

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Speaker 3: amount is what they will report on. So it might

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Speaker 3: be like your admin fee is a dollar fifty a week,

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Speaker 3: or it might be seventy eight dollars a year. And

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Speaker 3: then your investment fees, yes, but also like just is

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Speaker 3: what it is? An investment fee is usually actually a

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Speaker 3: percentage of your balance. So you know, if they say, oh,

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Speaker 3: your investment fee, and I would say one of the

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Speaker 3: most common is like point six percent, you go, well,

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Speaker 3: what's that mean fee? It means if you've got one

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Speaker 3: hundred thousand dollars in your cubernuation account, you will pay

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Speaker 3: six hundred dollars each year for an investment fee. Okay,

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Speaker 3: And that would extrapolate out as an ex financial advisor.

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Speaker 3: Is six percent good bad? I don't really have an opinion,

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Speaker 3: but if it got close to one percent, I would

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Speaker 3: be quite wary. Like the closer to one percent it is,

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Speaker 3: the more I'm like, oh, like, what are you doing

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Speaker 3: to add extra value? Because I'd say six percent is

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

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Speaker 3: is that good?

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Speaker 2: 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.

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Speaker 2: 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 will be just as

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Speaker 3: er point six percent?

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Speaker 2: What's that even mean?

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Speaker 3: I would say that's pretty average. If it got closer

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Speaker 3: to like a full one percent, I'd be like, oh,

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Speaker 3: what are you paying for? Like that's more of a

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Speaker 3: like very active managed fund fee. And these fees you

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Speaker 3: can kind of compare to like an ETF and they

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Speaker 3: would usually be I would say, relatively comparable. And why

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Speaker 3: are they so cheap, because that's actually cheap for investment.

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Speaker 3: It's because they're doing it on mass, right, Like they're

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Speaker 3: doing it for hundreds of thousands of people in this fund,

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Speaker 3: so they get to charge you a lower price point.

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Speaker 3: If you went to an individual to do that, it

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Speaker 3: would be much much more expensive. Also, in the your

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Speaker 3: super tool, it's going to show you a total annual fee,

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

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Speaker 3: it is coming from those two fees combined. It will

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Speaker 3: show you a total annual fee for that fifty thousand

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Speaker 3: dollars example, or that fifty thousand dollars balance, which I

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Speaker 3: think is a pretty handy benchmark for each like different

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Speaker 3: fund and then you know, just again for contexts industry funds,

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Speaker 3: I would say point six percent is pretty normal, but

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Speaker 3: zero point five two point eight I would say is

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Speaker 3: really normal. Sure, between that, retail funds can be often

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Speaker 3: more than one percent, which I would be weary of,

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Speaker 3: and I'm consistently weary of, because you know, you might go,

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Speaker 3: what's the difference between points six percent one percent?

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Speaker 2: Victoria? Well, over the long term really goes up thousands

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Speaker 2: of dollars? Like it's not.

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Speaker 3: It might be like, you know, we just talked about

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Speaker 3: seventy eight dollars a year. You might go, whatever, like

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Speaker 3: it's just coming out of my super I'm not even

435
00:20:20,520 --> 00:20:23,040
Speaker 3: seeing it. But from little things, big things grow. I

436
00:20:23,080 --> 00:20:25,399
Speaker 3: should care about this. If it's over one percent, I'm.

437
00:20:25,320 --> 00:20:28,119
Speaker 2: Like a bit wary. Yes, I can't give advice, but like,

438
00:20:28,200 --> 00:20:31,520
Speaker 2: if I'm a bit weary, what are you thinking?

439
00:20:31,720 --> 00:20:36,359
Speaker 3: You know exactly exactly shocking question? What comes next? So

440
00:20:36,480 --> 00:20:38,640
Speaker 3: the next thing you're going to do is check upra's

441
00:20:38,680 --> 00:20:42,320
Speaker 3: and your performance test. Now you've probably heard of UPRA before.

442
00:20:42,600 --> 00:20:44,520
Speaker 3: I think like that gets thrown around a lot, but

443
00:20:44,640 --> 00:20:48,320
Speaker 3: what the heck is UPRAH? It's the Australian Prudential regulation

444
00:20:48,600 --> 00:20:54,520
Speaker 3: Authority or does that actually mean though? So they're kind

445
00:20:54,560 --> 00:20:58,240
Speaker 3: of like the big dogs, but they're an independent. So

446
00:20:58,320 --> 00:21:01,959
Speaker 3: they're an independent and they look at at banks, credit unions,

447
00:21:02,000 --> 00:21:05,960
Speaker 3: they look at building societies, they look at insurers and

448
00:21:06,520 --> 00:21:11,080
Speaker 3: most members of the superannuation industry and they supervise them. Okay,

449
00:21:11,119 --> 00:21:13,520
Speaker 3: so they make sure that they're doing the right things

450
00:21:13,600 --> 00:21:19,000
Speaker 3: and basically ensuring that these institutions they maintain financial soundness

451
00:21:19,320 --> 00:21:21,560
Speaker 3: is what it says on their website. Just making sure

452
00:21:21,640 --> 00:21:24,480
Speaker 3: like if they're making money, it's going to the right places,

453
00:21:25,280 --> 00:21:27,919
Speaker 3: making sure that if they promise their customers something they

454
00:21:28,000 --> 00:21:31,040
Speaker 3: actually do it. Making sure that you know, they're stable

455
00:21:31,200 --> 00:21:33,440
Speaker 3: and they're actually good for their consumers.

456
00:21:33,840 --> 00:21:35,199
Speaker 2: So APRA is for us.

457
00:21:35,600 --> 00:21:37,840
Speaker 3: It's not like HR at work, which is actually right,

458
00:21:38,040 --> 00:21:41,119
Speaker 3: you know, like a unionization. Yeah, APRA is actually like

459
00:21:41,280 --> 00:21:45,359
Speaker 3: holding them accountable. Cool. So every single year, OPRA runs

460
00:21:45,520 --> 00:21:49,640
Speaker 3: like benchmarking tests on the mysuperproducts. So they go all right,

461
00:21:49,840 --> 00:21:53,800
Speaker 3: comparison time, big job. But if your fund fails, they

462
00:21:53,920 --> 00:21:56,240
Speaker 3: have to write to you and say hey, beck, So

463
00:21:57,240 --> 00:22:00,439
Speaker 3: like they don't apologize, which is rude, but they will say, hey,

464
00:22:00,520 --> 00:22:03,040
Speaker 3: we failed the test. So if they fail at one time,

465
00:22:03,280 --> 00:22:06,840
Speaker 3: it's a warning, like an official warning. Two consecutive fails

466
00:22:07,040 --> 00:22:09,480
Speaker 3: means that that fund's not allowed to take on any

467
00:22:09,560 --> 00:22:12,200
Speaker 3: new members. Oh how do they? How do you fail?

468
00:22:12,359 --> 00:22:14,560
Speaker 3: Like you just like you don't meet your requirements, so

469
00:22:14,600 --> 00:22:17,000
Speaker 3: you don't meet your obligations. You don't you're not doing

470
00:22:17,040 --> 00:22:19,600
Speaker 3: what you said you were going to do financially. Sound

471
00:22:20,440 --> 00:22:22,840
Speaker 3: like I see someone.

472
00:22:22,680 --> 00:22:24,040
Speaker 2: Imagine if that was on Tinder.

473
00:22:24,560 --> 00:22:26,960
Speaker 3: Like, I just think that if people on Bumble could

474
00:22:27,000 --> 00:22:30,040
Speaker 3: get barred, it would be a better life. Oh, absolutely

475
00:22:30,080 --> 00:22:34,200
Speaker 3: for everybody, right really, And then every single August publishes

476
00:22:34,280 --> 00:22:37,160
Speaker 3: this full list, so like every single August, I really

477
00:22:37,240 --> 00:22:37,920
Speaker 3: ratten on people.

478
00:22:38,040 --> 00:22:40,160
Speaker 2: Oh yeah, Like I'm here for the drama. Like, don't

479
00:22:40,200 --> 00:22:42,639
Speaker 2: get me wrong, I have publicly said before I'm nosy.

480
00:22:43,200 --> 00:22:45,080
Speaker 2: I want to know, Like I need to know did

481
00:22:45,119 --> 00:22:45,480
Speaker 2: you fail?

482
00:22:45,600 --> 00:22:49,560
Speaker 3: If you did judging, and then if your fund is underperforming,

483
00:22:49,600 --> 00:22:52,480
Speaker 3: because that's not very sexy, A short list of alternative

484
00:22:52,520 --> 00:22:56,560
Speaker 3: funds that actually match your risk profile and show stronger

485
00:22:56,640 --> 00:22:59,400
Speaker 3: long term nets is going to be suggested.

486
00:23:00,000 --> 00:23:00,640
Speaker 2: It's kind of good.

487
00:23:01,560 --> 00:23:04,720
Speaker 3: That's painful thing that I want you to do, though, Yeah.

488
00:23:05,280 --> 00:23:08,600
Speaker 2: I cannot drive home the importance of insurance. I just can't.

489
00:23:09,080 --> 00:23:11,560
Speaker 3: But before moving, I want you to check your insurance

490
00:23:11,640 --> 00:23:14,639
Speaker 3: cover because sometimes you move and you go, oh, the.

491
00:23:14,640 --> 00:23:16,720
Speaker 2: Performance is whack. I don't want to be here anymore.

492
00:23:16,880 --> 00:23:19,760
Speaker 3: But you had some really good default insurance, and lots

493
00:23:19,800 --> 00:23:23,440
Speaker 3: of people unknowingly cancel income protection or TPD while they're

494
00:23:23,520 --> 00:23:26,440
Speaker 3: rolling over, and then they lose it because they can't

495
00:23:26,440 --> 00:23:28,080
Speaker 3: get it in their new fund because they don't meet

496
00:23:28,119 --> 00:23:31,760
Speaker 3: the criteria. So that's where sometimes, even when I was

497
00:23:31,760 --> 00:23:35,400
Speaker 3: a financial advisor, I would like recommend this is a hypothetical.

498
00:23:35,440 --> 00:23:37,480
Speaker 2: I'd be like, oh, beck, I actually.

499
00:23:37,240 --> 00:23:39,480
Speaker 3: Want you to have two super funds. Like that goes

500
00:23:39,520 --> 00:23:41,520
Speaker 3: against a lot of the advice that I give because

501
00:23:42,480 --> 00:23:45,240
Speaker 3: double fees, whatever. But you're going to keep like a

502
00:23:45,320 --> 00:23:48,160
Speaker 3: really minimal amount of money in this first super fund

503
00:23:48,240 --> 00:23:51,000
Speaker 3: that basically doesn't perform. But the reason we're keeping the

504
00:23:51,040 --> 00:23:52,920
Speaker 3: money there is to pay for the insurances on that

505
00:23:53,000 --> 00:23:54,840
Speaker 3: account because we can't get rid of them. And then

506
00:23:54,880 --> 00:23:56,240
Speaker 3: we're going to put all of our money in this

507
00:23:56,400 --> 00:23:59,080
Speaker 3: better fund that is actually going to perform, So you

508
00:23:59,119 --> 00:24:02,520
Speaker 3: would keep both. In that instance, the best option, or

509
00:24:02,640 --> 00:24:05,080
Speaker 3: I would say the safest way to do this is

510
00:24:05,440 --> 00:24:07,760
Speaker 3: open the new fund. First, because just opening the new

511
00:24:07,800 --> 00:24:11,240
Speaker 3: fund doesn't cancel your old one. We would hopefully replicate

512
00:24:11,359 --> 00:24:14,439
Speaker 3: the insurance if you need it, and then roll your

513
00:24:14,480 --> 00:24:18,280
Speaker 3: balance over and update your employer payroll details. Then but

514
00:24:18,480 --> 00:24:21,399
Speaker 3: if you can't replicate your insurance because it hasn't been

515
00:24:21,480 --> 00:24:24,000
Speaker 3: accepted or they say, oh, like sorry, we don't offer that,

516
00:24:24,440 --> 00:24:27,840
Speaker 3: at least you haven't burnt the bridge to begin with. Yeah, got,

517
00:24:28,560 --> 00:24:31,920
Speaker 3: we can actually move super funds without deleting the other one,

518
00:24:32,119 --> 00:24:33,359
Speaker 3: do you know what I mean? Like, we're not telling

519
00:24:33,400 --> 00:24:35,920
Speaker 3: the other one that we're already seeing someone new. And

520
00:24:36,040 --> 00:24:40,080
Speaker 3: that's okay, cheeky okay. So once I've checked performance, what

521
00:24:40,160 --> 00:24:42,520
Speaker 3: do I do next? All right, So I've jumped up

522
00:24:42,560 --> 00:24:46,000
Speaker 3: and down about this, but so many people and most

523
00:24:46,080 --> 00:24:48,520
Speaker 3: people in Australia default to balanced.

524
00:24:49,000 --> 00:24:50,720
Speaker 2: But that's not always right for them.

525
00:24:50,840 --> 00:24:53,120
Speaker 3: They default to balance because you know, when you're filling

526
00:24:53,160 --> 00:24:55,520
Speaker 3: out your superforms when you get a new job, it

527
00:24:55,680 --> 00:24:59,360
Speaker 3: often has these little like italic words below your superannuation

528
00:24:59,560 --> 00:25:01,840
Speaker 3: choice that say balanced is the most popular option or

529
00:25:01,920 --> 00:25:03,800
Speaker 3: something to that effect, and like if you don't know

530
00:25:03,840 --> 00:25:05,639
Speaker 3: what you're talking about, which I didn't know what I

531
00:25:05,760 --> 00:25:07,600
Speaker 3: was talking about when I was doing these Before I

532
00:25:07,720 --> 00:25:08,960
Speaker 3: was an advisor.

533
00:25:08,880 --> 00:25:10,960
Speaker 2: I was just like, Okay, well I guess I'll go

534
00:25:11,119 --> 00:25:11,320
Speaker 2: with that.

535
00:25:12,040 --> 00:25:14,960
Speaker 3: Yeah. It doesn't feel like a big decision in that moment,

536
00:25:15,080 --> 00:25:17,520
Speaker 3: right because like the biggest and hardest thing about that

537
00:25:17,560 --> 00:25:19,880
Speaker 3: whole process for me was like, well, what is my TFN?

538
00:25:20,160 --> 00:25:21,639
Speaker 2: How do I go and find that? Is it in

539
00:25:21,760 --> 00:25:22,280
Speaker 2: my email?

540
00:25:22,400 --> 00:25:24,560
Speaker 3: You know, like I'm not really thinking about it, but

541
00:25:24,680 --> 00:25:28,200
Speaker 3: that makes a massive difference. So let's talk a little

542
00:25:28,240 --> 00:25:31,920
Speaker 3: bit about growth versus balanced versus like a conservative account.

543
00:25:33,119 --> 00:25:35,920
Speaker 3: I want you to imagine the pie chart, because I

544
00:25:35,960 --> 00:25:38,159
Speaker 3: feel like everyone can imagine a pie chart, right, I

545
00:25:38,240 --> 00:25:41,680
Speaker 3: love a pie chart. One hundred percent in a pie

546
00:25:41,760 --> 00:25:44,840
Speaker 3: chart growth option. It's going to have eighty to ninety

547
00:25:44,920 --> 00:25:46,080
Speaker 3: percent growth options.

548
00:25:46,160 --> 00:25:46,920
Speaker 2: What does that mean?

549
00:25:47,440 --> 00:25:50,200
Speaker 3: Eighty to ninety percent of the money in your superannuation

550
00:25:50,400 --> 00:25:53,639
Speaker 3: is going to be directly invested into shares, whether that

551
00:25:53,880 --> 00:25:56,679
Speaker 3: is Australian shares or international shares. It will be different

552
00:25:56,760 --> 00:26:00,439
Speaker 3: per fund. But then between twenty or ten and twenty

553
00:26:00,520 --> 00:26:02,760
Speaker 3: percent of that fund is going to be in more

554
00:26:02,840 --> 00:26:06,040
Speaker 3: conservative assets. So it's going to maybe be sitting in cash,

555
00:26:06,400 --> 00:26:08,800
Speaker 3: it might be sitting in a term deposit, it might

556
00:26:08,880 --> 00:26:12,960
Speaker 3: be in a bond. But these are more conservative options.

557
00:26:13,359 --> 00:26:15,800
Speaker 3: And now the thing I want you to remember is

558
00:26:15,960 --> 00:26:19,280
Speaker 3: just the percentages, because I think a lot of people

559
00:26:19,400 --> 00:26:21,880
Speaker 3: just assume when I say growth assets, you think it's

560
00:26:21,960 --> 00:26:23,000
Speaker 3: more risky shares.

561
00:26:23,720 --> 00:26:24,040
Speaker 2: It's not.

562
00:26:24,240 --> 00:26:27,320
Speaker 3: It's just a higher saturation of shares. So if we

563
00:26:27,680 --> 00:26:31,200
Speaker 3: jump back down and compare it to like the balanced option,

564
00:26:32,160 --> 00:26:34,239
Speaker 3: like which is the default, and we look at our

565
00:26:34,320 --> 00:26:38,480
Speaker 3: high chart again, sixty to seventy percent are quote growth assets,

566
00:26:38,520 --> 00:26:40,760
Speaker 3: So sixty to seventy percent of that is made up

567
00:26:40,800 --> 00:26:44,000
Speaker 3: of shares. They're the same shares that are in the

568
00:26:44,119 --> 00:26:47,280
Speaker 3: growth asset. You just hold more when you're growth and

569
00:26:47,480 --> 00:26:50,760
Speaker 3: less when you're balanced, So like you would just carry

570
00:26:51,119 --> 00:26:53,920
Speaker 3: more cash if you're balanced and have more of a

571
00:26:54,000 --> 00:26:56,680
Speaker 3: percentage of assets that aren't performing as well. And I'm

572
00:26:56,720 --> 00:26:59,320
Speaker 3: not saying that that's a bad thing, but I think

573
00:26:59,440 --> 00:27:01,800
Speaker 3: a lot of people will assume, oh, if I go growth,

574
00:27:01,880 --> 00:27:03,080
Speaker 3: the assets are more risky.

575
00:27:03,400 --> 00:27:03,760
Speaker 2: It's not.

576
00:27:04,080 --> 00:27:07,320
Speaker 3: It's exactly the same ETFs. It's exactly the same shares.

577
00:27:07,520 --> 00:27:09,920
Speaker 3: Like you know, if Australian super has picked all of

578
00:27:10,000 --> 00:27:13,880
Speaker 3: those shares for their portfolios. Well, in the balanced option

579
00:27:13,960 --> 00:27:16,639
Speaker 3: you get seventy percent and in the growth option you

580
00:27:16,720 --> 00:27:19,120
Speaker 3: get ninety do you know what I mean? So it's

581
00:27:19,160 --> 00:27:22,200
Speaker 3: more about, well, if you're investing for the future and

582
00:27:22,320 --> 00:27:23,840
Speaker 3: you're like, well, I'm going to be in it for

583
00:27:24,000 --> 00:27:27,719
Speaker 3: thirty plus years, how comfortable are you? And you need

584
00:27:27,760 --> 00:27:31,000
Speaker 3: to ask yourself this question, how comfortable are you with

585
00:27:31,119 --> 00:27:33,520
Speaker 3: thirty percent of your portfolio just sitting in like cash

586
00:27:33,600 --> 00:27:36,200
Speaker 3: and bonds that perform less. Like I think when you

587
00:27:36,280 --> 00:27:39,240
Speaker 3: start to contextualize that, people go, oh, growth isn't as scary,

588
00:27:39,840 --> 00:27:45,000
Speaker 3: and like, I hate the terminology around investing because often

589
00:27:45,160 --> 00:27:49,040
Speaker 3: it seems scary, right, aggressive portfolio some companies, you know

590
00:27:49,080 --> 00:27:50,600
Speaker 3: what do they call it that? It's like, that's scary.

591
00:27:50,640 --> 00:27:53,159
Speaker 3: I don't want to exactly, So we probably aren't going

592
00:27:53,240 --> 00:27:55,320
Speaker 3: to pick that just because of the naming the chess.

593
00:27:55,920 --> 00:28:01,400
Speaker 3: So when you go back to a growth option, higher risk,

594
00:28:02,000 --> 00:28:04,200
Speaker 3: like we need to really outline that the more risk

595
00:28:04,280 --> 00:28:07,400
Speaker 3: you take, the more returns you might get.

596
00:28:08,080 --> 00:28:10,720
Speaker 2: And more often than not, I would see a.

597
00:28:10,920 --> 00:28:14,640
Speaker 3: Growth portfolio being more suitable for younger members who don't

598
00:28:14,720 --> 00:28:18,280
Speaker 3: touch their super for years. So if you're sixty, I'm

599
00:28:18,359 --> 00:28:20,280
Speaker 3: probably going to be like, oh, I'd stick clear of

600
00:28:20,359 --> 00:28:22,200
Speaker 3: that because like the market goes up and down, and

601
00:28:22,240 --> 00:28:23,560
Speaker 3: do we want to be part of that? But when

602
00:28:23,600 --> 00:28:26,320
Speaker 3: you're young, you have time on your site, so I

603
00:28:26,359 --> 00:28:29,000
Speaker 3: would be expecting more ups and downs along the way,

604
00:28:29,280 --> 00:28:34,119
Speaker 3: but better long term compounding. Yes. So then the balanced option.

605
00:28:34,960 --> 00:28:37,159
Speaker 3: We've talked about this before. This is usually the default.

606
00:28:37,200 --> 00:28:38,920
Speaker 3: This is just what you fell into to begin with.

607
00:28:39,000 --> 00:28:40,520
Speaker 3: And if you've never looked at your super I can

608
00:28:40,640 --> 00:28:44,680
Speaker 3: almost guarantee that this is what you're in. Moderate volatility,

609
00:28:44,800 --> 00:28:48,720
Speaker 3: moderate returns. We're not complaining, you're still getting a return.

610
00:28:49,760 --> 00:28:51,040
Speaker 2: Is it what you want it to be?

611
00:28:51,640 --> 00:28:54,160
Speaker 3: It's totally fine if you're risk averse, like you might

612
00:28:54,200 --> 00:28:55,720
Speaker 3: look at it and be like, be uncomfortable with that.

613
00:28:55,960 --> 00:28:58,080
Speaker 2: I'm not saying it's bad. I'm literally not.

614
00:28:58,200 --> 00:29:00,800
Speaker 3: I'm just saying, let's make sure you have the education

615
00:29:00,920 --> 00:29:03,240
Speaker 3: so you can make the right decision for you, because

616
00:29:03,600 --> 00:29:05,920
Speaker 3: in retirement it could mean hundreds of thousands of dollars

617
00:29:06,000 --> 00:29:09,000
Speaker 3: of difference. But if you've got thirty plus years ahead,

618
00:29:09,960 --> 00:29:13,680
Speaker 3: you might be leaving some cash on the table, right, Okay, okay,

619
00:29:13,680 --> 00:29:15,000
Speaker 3: And like, I don't want you to leave cash on

620
00:29:15,080 --> 00:29:18,120
Speaker 3: the table. No, Then there's the conservative option, and we're

621
00:29:18,120 --> 00:29:22,000
Speaker 3: going back to our pie chart again. But of that

622
00:29:22,320 --> 00:29:25,640
Speaker 3: pie chart, thirty to forty percent of your money that

623
00:29:25,800 --> 00:29:30,240
Speaker 3: is in your superannuation will be invested into the share market.

624
00:29:30,800 --> 00:29:34,840
Speaker 3: The rest is conservative options, so low volatility, low return.

625
00:29:35,120 --> 00:29:38,000
Speaker 3: I would say it's a much safer option when you're

626
00:29:38,040 --> 00:29:41,080
Speaker 3: closer to retirement because your risk and reward profile actually

627
00:29:41,240 --> 00:29:44,200
Speaker 3: changes over your lifetime. So like right now, Beck, I

628
00:29:44,240 --> 00:29:47,360
Speaker 3: would assume that you're probably sitting more growth just knowing you,

629
00:29:48,320 --> 00:29:50,320
Speaker 3: and the closer you get to retirement you might drop

630
00:29:50,360 --> 00:29:52,200
Speaker 3: back to a balanced and then you know, when you're

631
00:29:52,200 --> 00:29:55,040
Speaker 3: sixty or so, you might go to conservative because it's

632
00:29:55,080 --> 00:29:57,560
Speaker 3: not so much about growing your wealth whence you're sixty,

633
00:29:57,800 --> 00:30:00,400
Speaker 3: it's more about conserving it and just like it in

634
00:30:00,680 --> 00:30:02,920
Speaker 3: loading it, in making sure that it's there for the

635
00:30:03,000 --> 00:30:05,680
Speaker 3: long term. So it's I would say safer if you're

636
00:30:05,720 --> 00:30:08,280
Speaker 3: closer to retirement and you want to protect what you've built.

637
00:30:08,320 --> 00:30:11,760
Speaker 3: But it probably like, and this is stereotyping again, because

638
00:30:11,800 --> 00:30:14,880
Speaker 3: I could never give you advice. It's probably not ideal

639
00:30:14,920 --> 00:30:17,280
Speaker 3: if you're like twenty five and you're going to access

640
00:30:17,400 --> 00:30:20,320
Speaker 3: your super for thirty five years. Yeah, I see, but

641
00:30:20,400 --> 00:30:22,240
Speaker 3: the superannuation company is not going to call you up

642
00:30:22,280 --> 00:30:23,960
Speaker 3: and be like, hey, beg, we saw you picked this.

643
00:30:24,120 --> 00:30:26,680
Speaker 3: You sure like they're not going to do that, because

644
00:30:26,680 --> 00:30:28,320
Speaker 3: they're just going to go, okay, well that's what she

645
00:30:28,440 --> 00:30:30,400
Speaker 3: picked and like what she wants exactly, but.

646
00:30:30,640 --> 00:30:32,080
Speaker 2: You might not know what you don't know.

647
00:30:32,560 --> 00:30:37,680
Speaker 3: Yes, So sequencing risk kind of matters closer to retirement

648
00:30:37,880 --> 00:30:41,440
Speaker 3: because being too aggressive close to retirement could mean you

649
00:30:41,640 --> 00:30:43,200
Speaker 3: go into a market dip and then you have to

650
00:30:43,200 --> 00:30:45,680
Speaker 3: wait another five or six years before you can actually retire,

651
00:30:45,760 --> 00:30:47,720
Speaker 3: and I just I don't want that for you, you know,

652
00:30:48,040 --> 00:30:51,600
Speaker 3: and like even a one percent higher return, so you

653
00:30:51,680 --> 00:30:54,080
Speaker 3: might go, oh, well, you know, I'll just pick one bit,

654
00:30:54,200 --> 00:30:57,160
Speaker 3: Like the more conservative one is like only one percent difference,

655
00:30:57,280 --> 00:31:01,600
Speaker 3: Like who cares over thirty years, that's thirty five percent

656
00:31:01,680 --> 00:31:04,640
Speaker 3: of your superannuation balance. Oh we like that.

657
00:31:05,040 --> 00:31:05,640
Speaker 2: That's a lot.

658
00:31:06,080 --> 00:31:08,800
Speaker 3: Yeah, but that's thirty five percent more returns that you

659
00:31:08,800 --> 00:31:11,360
Speaker 3: would have. So you've kind of got to contextualize it

660
00:31:11,400 --> 00:31:14,040
Speaker 3: because like one percent today, I don't care if you

661
00:31:14,080 --> 00:31:17,280
Speaker 3: don't pay me one percent. Thirty five years later, I've

662
00:31:17,320 --> 00:31:19,240
Speaker 3: lost thirty five percent. And you know what if I

663
00:31:19,320 --> 00:31:21,560
Speaker 3: see something that's thirty five percent off, I'm like that's.

664
00:31:21,400 --> 00:31:21,840
Speaker 2: A good deal.

665
00:31:22,080 --> 00:31:24,920
Speaker 3: Absolutely, it's a big chunk of money, right, And then

666
00:31:25,240 --> 00:31:27,360
Speaker 3: I also want to talk about the power of time,

667
00:31:27,640 --> 00:31:30,600
Speaker 3: because we've just like touched on retirement and like maybe

668
00:31:30,680 --> 00:31:33,720
Speaker 3: not picking a more aggressive option when you're closer to retirement,

669
00:31:33,760 --> 00:31:35,760
Speaker 3: but if you're younger, like, you've got time on your side,

670
00:31:35,800 --> 00:31:40,360
Speaker 3: and I can't drive that fact home any harder than

671
00:31:40,400 --> 00:31:43,600
Speaker 3: I do. So for example, if you're like, let's say

672
00:31:43,640 --> 00:31:47,400
Speaker 3: you're twenty five, and you've got a balanced portfolio right now,

673
00:31:47,920 --> 00:31:52,480
Speaker 3: so you're earning let's just say six percent, but the

674
00:31:52,600 --> 00:31:54,720
Speaker 3: growth option in the same super funds, so you're not

675
00:31:54,800 --> 00:31:57,160
Speaker 3: changing funds, you're just like going in and flicking over

676
00:31:57,280 --> 00:32:01,800
Speaker 3: to growth that's seven percent, So like you would go vida,

677
00:32:01,840 --> 00:32:03,480
Speaker 3: that's not much of a difference, like kind of who

678
00:32:03,560 --> 00:32:06,800
Speaker 3: cares over thirty five years, As I was saying, one

679
00:32:06,840 --> 00:32:11,560
Speaker 3: percent different compounds to thirty five percent more money. So hypothetically,

680
00:32:11,800 --> 00:32:14,880
Speaker 3: if you had one hundred thousand dollars, that's the difference

681
00:32:15,560 --> 00:32:20,280
Speaker 3: of retiring with seven hundred and sixty thousand dollars or

682
00:32:20,520 --> 00:32:24,400
Speaker 3: one point oh three million dollars. Wow, Okay, So like

683
00:32:24,480 --> 00:32:27,160
Speaker 3: we're not talking like, oh, it's just a couple of dollars.

684
00:32:27,240 --> 00:32:32,040
Speaker 3: Like these decisions could mean hundreds of thousands of dollars

685
00:32:32,120 --> 00:32:35,760
Speaker 3: for you, but you didn't have to contribute anymore for that. Sorry,

686
00:32:35,800 --> 00:32:37,760
Speaker 3: are we not all going into our super and just

687
00:32:37,880 --> 00:32:40,840
Speaker 3: fixing it or making it reflective of what we want?

688
00:32:40,920 --> 00:32:43,120
Speaker 3: And I'm not saying, oh, go pick the growth option,

689
00:32:43,720 --> 00:32:47,080
Speaker 3: but like I am speaking to a community right now

690
00:32:47,400 --> 00:32:49,120
Speaker 3: and individuals who you know.

691
00:32:49,520 --> 00:32:51,600
Speaker 2: I know you because I survey you.

692
00:32:51,880 --> 00:32:54,960
Speaker 3: I am in our Facebook group all the time, and

693
00:32:55,360 --> 00:32:57,360
Speaker 3: most people that I talk to go, oh my god.

694
00:32:57,440 --> 00:32:58,920
Speaker 3: I was in the balanced option, and then when I

695
00:32:59,000 --> 00:33:01,240
Speaker 3: finally read up on it, I finally did the questionnaire.

696
00:33:01,280 --> 00:33:03,920
Speaker 3: I finally you know, took the test on the super

697
00:33:04,080 --> 00:33:07,120
Speaker 3: fund website that was free, found out I was growth.

698
00:33:07,320 --> 00:33:10,400
Speaker 3: Like the amount of times I have that conversation is crazy. Yes,

699
00:33:10,480 --> 00:33:12,880
Speaker 3: I'm also having that conversation where people will say, oh,

700
00:33:13,000 --> 00:33:14,520
Speaker 3: well I was in balance and then I did it

701
00:33:14,560 --> 00:33:15,960
Speaker 3: and I was balanced. So like, I don't know what

702
00:33:16,040 --> 00:33:17,000
Speaker 3: you were harping on about.

703
00:33:17,240 --> 00:33:20,280
Speaker 2: Sure, well at least you know exactly right like a

704
00:33:20,360 --> 00:33:21,120
Speaker 2: last you did it.

705
00:33:21,680 --> 00:33:25,280
Speaker 3: So risk settings actually do really really matter because the

706
00:33:25,320 --> 00:33:26,520
Speaker 3: difference between one percent.

707
00:33:26,640 --> 00:33:28,640
Speaker 2: You might go today whatever, but.

708
00:33:28,760 --> 00:33:31,720
Speaker 3: Sorry, we're in the middle of cozy lives like we're

709
00:33:31,760 --> 00:33:34,440
Speaker 3: all trying to you know, cut back, we're all trying

710
00:33:34,480 --> 00:33:37,640
Speaker 3: to save money. If you are feeling really stressed about

711
00:33:37,680 --> 00:33:40,640
Speaker 3: finances right now, and the groceries are hard, rents hard,

712
00:33:40,720 --> 00:33:42,440
Speaker 3: bills are hard. Do you know what you can do

713
00:33:42,760 --> 00:33:46,680
Speaker 3: something for future you? You can still care about your finances.

714
00:33:47,280 --> 00:33:49,880
Speaker 3: It just doesn't have to be in saving what's coming

715
00:33:49,880 --> 00:33:52,040
Speaker 3: into your bank account because that's sometimes too hard.

716
00:33:52,640 --> 00:33:54,960
Speaker 2: But pull your finger out, go and fix your super.

717
00:33:55,240 --> 00:33:58,440
Speaker 3: Go fix your super FORBA, please and thank you. And

718
00:33:58,520 --> 00:34:00,400
Speaker 3: I'll give you three questions because I know about to

719
00:34:00,400 --> 00:34:03,280
Speaker 3: try and wrap me up because I'm a super yappa.

720
00:34:03,680 --> 00:34:06,120
Speaker 3: But I want you to ask yourself three questions. Beck,

721
00:34:06,400 --> 00:34:08,799
Speaker 3: So I want you to ask, well, how many years

722
00:34:08,880 --> 00:34:12,320
Speaker 3: until I access Super? Because I want to know or

723
00:34:12,440 --> 00:34:14,759
Speaker 3: I want you to know what your preservation age is.

724
00:34:15,239 --> 00:34:18,359
Speaker 3: So that's not when you're quote planning to retire. That's

725
00:34:18,400 --> 00:34:21,120
Speaker 3: when you can actually get your little dirty fingers on

726
00:34:21,239 --> 00:34:24,600
Speaker 3: that money yeap without paying tax. Because like you know,

727
00:34:25,360 --> 00:34:27,480
Speaker 3: I could have arguments with lots of people who are like,

728
00:34:27,640 --> 00:34:29,880
Speaker 3: well you could access you super early? Yeah cool, But

729
00:34:30,040 --> 00:34:32,920
Speaker 3: hopefully I'm fit and healthy and don't have to right

730
00:34:33,440 --> 00:34:36,399
Speaker 3: what age? And it's usually the age of sixty seven?

731
00:34:37,080 --> 00:34:40,719
Speaker 3: Can I access that completely tax free? And I want

732
00:34:40,760 --> 00:34:43,920
Speaker 3: you to ask yourself right now, like beck, zoom out.

733
00:34:44,160 --> 00:34:46,600
Speaker 3: We're just going to use you as an example. What

734
00:34:46,719 --> 00:34:50,520
Speaker 3: would happen if tomorrow you logged into your superannuation account

735
00:34:50,600 --> 00:34:55,080
Speaker 3: and your balance HA crash twenty percent? I would I

736
00:34:55,120 --> 00:34:57,799
Speaker 3: would sit on it? Yeah, But like what would happen?

737
00:34:57,880 --> 00:35:01,040
Speaker 3: Would you freak out? Would you like switch to panic mode?

738
00:35:01,800 --> 00:35:02,439
Speaker 3: All those things?

739
00:35:02,480 --> 00:35:03,320
Speaker 2: But what would happen?

740
00:35:03,719 --> 00:35:05,279
Speaker 3: Oh? I don't know?

741
00:35:06,000 --> 00:35:08,359
Speaker 2: But like, how does that impact you financially right now?

742
00:35:08,640 --> 00:35:09,120
Speaker 1: Right now? No?

743
00:35:09,880 --> 00:35:11,000
Speaker 2: What does it do to your life?

744
00:35:11,560 --> 00:35:11,759
Speaker 3: Well?

745
00:35:11,880 --> 00:35:14,000
Speaker 2: Can you still afford your bills and your rent and stuff?

746
00:35:14,000 --> 00:35:16,560
Speaker 3: Because guess you're super right now, have any sway on

747
00:35:16,640 --> 00:35:19,480
Speaker 3: your finances? No? Okay, So I need you to talk

748
00:35:19,560 --> 00:35:23,000
Speaker 3: to yourself about that and whether if you dove into

749
00:35:23,080 --> 00:35:26,560
Speaker 3: your super account and found it was down yep, one, Yeah, okay,

750
00:35:26,600 --> 00:35:28,960
Speaker 3: you're allowed to panic. Like I have said before on

751
00:35:29,040 --> 00:35:31,640
Speaker 3: the show ex Financial Advisor, I talk about money all

752
00:35:31,680 --> 00:35:34,520
Speaker 3: the time. If I log into my share trading platform

753
00:35:34,800 --> 00:35:37,359
Speaker 3: and I find that my money is down, I get

754
00:35:37,440 --> 00:35:39,360
Speaker 3: that pit in the bottom of my stomach because do

755
00:35:39,360 --> 00:35:42,919
Speaker 3: you know what people hate losing money? Absolutely I hate

756
00:35:42,960 --> 00:35:45,880
Speaker 3: it too, But then I can zoom out and go, Okay,

757
00:35:45,960 --> 00:35:47,719
Speaker 3: let's look at the big picture. I still have like

758
00:35:47,880 --> 00:35:50,600
Speaker 3: thirty years before I'm even retiring. I'm meant to be

759
00:35:50,719 --> 00:35:53,120
Speaker 3: looking at this like shares or on sale. I'm meant

760
00:35:53,160 --> 00:35:55,200
Speaker 3: to be looking at this in a different way. And

761
00:35:55,280 --> 00:35:57,800
Speaker 3: you know what, I'm not saying it's instantaneous. I'm not like,

762
00:35:57,880 --> 00:35:59,719
Speaker 3: oh I'm so silly and that I walk off. I'm

763
00:35:59,719 --> 00:36:02,080
Speaker 3: still I like, I don't really like this, and I

764
00:36:02,440 --> 00:36:05,320
Speaker 3: still feel yuck about it. But maybe I'm doing a

765
00:36:05,360 --> 00:36:07,759
Speaker 3: little bit more research. Maybe I'm doing some googling. But

766
00:36:07,960 --> 00:36:11,719
Speaker 3: ultimately I know that my job is to sit and wait.

767
00:36:12,719 --> 00:36:16,320
Speaker 3: But if that's something that you couldn't deal with, you

768
00:36:16,480 --> 00:36:18,279
Speaker 3: need to have a think about that. And then the

769
00:36:18,360 --> 00:36:21,879
Speaker 3: next one is what is my plan to shift later

770
00:36:21,960 --> 00:36:22,319
Speaker 3: in life?

771
00:36:22,440 --> 00:36:23,120
Speaker 2: Do I have one?

772
00:36:23,200 --> 00:36:25,799
Speaker 3: Am I going to be growth until I am sixty seven?

773
00:36:26,360 --> 00:36:28,279
Speaker 3: Or am I going to you know, go all right,

774
00:36:28,880 --> 00:36:31,520
Speaker 3: I'm feeling really good about this right now, but if

775
00:36:31,560 --> 00:36:34,080
Speaker 3: I was like fifty, I probably wouldn't want to be here.

776
00:36:34,719 --> 00:36:37,520
Speaker 3: They're the times that we're starting to reflect and go okay, cool,

777
00:36:37,600 --> 00:36:40,759
Speaker 3: Like maybe I would need to revisit my risk profile

778
00:36:42,120 --> 00:36:45,400
Speaker 3: at that time. But I actually kind of would love, like,

779
00:36:45,640 --> 00:36:48,960
Speaker 3: in my perfect world, you're actually revisiting it annually. You're

780
00:36:49,000 --> 00:36:51,000
Speaker 3: like kind of just doing a like finance health check.

781
00:36:51,040 --> 00:36:52,960
Speaker 3: You're like, am I in the right place? It should

782
00:36:52,960 --> 00:36:54,600
Speaker 3: be kind of a tick box exercise.

783
00:36:54,680 --> 00:36:55,680
Speaker 2: I do it for myself.

784
00:36:55,920 --> 00:36:58,880
Speaker 3: I redo the survey, and I'm like, yeap, what a surprise.

785
00:36:59,000 --> 00:37:03,040
Speaker 3: I'm still and growth person, but that might change over

786
00:37:03,120 --> 00:37:05,120
Speaker 3: my lifetime, and the second it does, I want to

787
00:37:05,120 --> 00:37:07,080
Speaker 3: make sure that my super and all of my investments

788
00:37:07,080 --> 00:37:09,880
Speaker 3: are reflective of that. So those are my questions that

789
00:37:09,920 --> 00:37:12,560
Speaker 3: you're asking yourself because I tried to cap myself at

790
00:37:12,640 --> 00:37:14,400
Speaker 3: just three, but there's lots of other questions.

791
00:37:14,560 --> 00:37:16,080
Speaker 2: My god, why am I even here?

792
00:37:16,239 --> 00:37:16,400
Speaker 1: You know?

793
00:37:16,640 --> 00:37:19,399
Speaker 3: Okay, So I feel like this is a really good

794
00:37:19,440 --> 00:37:21,680
Speaker 3: place to leave it. I don't want to overwhelm people,

795
00:37:21,800 --> 00:37:25,080
Speaker 3: so I agree. But I have so much to tell you.

796
00:37:26,560 --> 00:37:29,600
Speaker 3: But we didn't even talk about contribution caps. We didn't

797
00:37:29,600 --> 00:37:32,520
Speaker 3: even talk about like tax like there's just a lot

798
00:37:32,760 --> 00:37:35,200
Speaker 3: to it. But I would actually prefer You're right, I

799
00:37:35,239 --> 00:37:37,800
Speaker 3: would prefer to like cut it. You ruminate on that,

800
00:37:38,000 --> 00:37:40,759
Speaker 3: go do all of these things, do your homework, yes,

801
00:37:40,920 --> 00:37:42,279
Speaker 3: and then we'll come back and we'll talk about it,

802
00:37:42,280 --> 00:37:44,960
Speaker 3: because I'll make another part for a two parta a tuparta.

803
00:37:45,120 --> 00:37:46,640
Speaker 3: Yeah that sounds great, thank you.

804
00:37:47,239 --> 00:37:48,120
Speaker 2: I love that kind it.

805
00:37:48,280 --> 00:37:50,960
Speaker 3: Also, I just want to point out I'm not making

806
00:37:51,040 --> 00:37:53,400
Speaker 3: these super episodes. And I think you guys already know this.

807
00:37:53,560 --> 00:37:55,800
Speaker 3: Maybe you know how sometimes just tell people how to

808
00:37:55,880 --> 00:37:59,520
Speaker 3: suck eggs. Apologies, but like, I'm not making these episodes

809
00:37:59,560 --> 00:38:02,360
Speaker 3: because I you to feel overwhelmed, Like I want you

810
00:38:02,760 --> 00:38:05,600
Speaker 3: to have all of the tools in your toolkit so

811
00:38:05,719 --> 00:38:09,800
Speaker 3: that you can create your financial future that you deserve

812
00:38:09,920 --> 00:38:12,680
Speaker 3: on your own. Like these are the things that you

813
00:38:12,760 --> 00:38:15,279
Speaker 3: know you could go see a financial advisor, but goal

814
00:38:15,360 --> 00:38:17,680
Speaker 3: you could do it yourself. Like it's not about being

815
00:38:17,719 --> 00:38:21,000
Speaker 3: the smartest, it's not about like having a finance education.

816
00:38:21,120 --> 00:38:24,680
Speaker 3: It's just about logging in all of these things on

817
00:38:24,800 --> 00:38:28,520
Speaker 3: these superanuation websites are written in plain English for us,

818
00:38:28,880 --> 00:38:31,160
Speaker 3: but we don't know that unless we go there, like

819
00:38:31,320 --> 00:38:34,800
Speaker 3: and I promise, like this is probably I don't know,

820
00:38:34,920 --> 00:38:36,320
Speaker 3: is this is a mean thing to say, But like

821
00:38:36,840 --> 00:38:39,680
Speaker 3: in Australia, we have to operate on the idea that

822
00:38:39,760 --> 00:38:42,239
Speaker 3: we are talking to the silliest person in the room. Yes,

823
00:38:42,640 --> 00:38:46,920
Speaker 3: so like, when you create content, especially finance content, you

824
00:38:47,080 --> 00:38:50,120
Speaker 3: have to make sure that it's applicable to the person

825
00:38:50,160 --> 00:38:52,919
Speaker 3: who literally has absolutely no education on it. And that's

826
00:38:52,960 --> 00:38:56,120
Speaker 3: the way superanuation companies create content. So if you've been

827
00:38:56,120 --> 00:38:57,640
Speaker 3: feeling overwhelmed because you're like, I'm going to go to

828
00:38:57,680 --> 00:38:59,600
Speaker 3: the super company and it's not going to make any sense,

829
00:39:00,000 --> 00:39:02,400
Speaker 3: Promise you it's much easier than you think it is.

830
00:39:02,800 --> 00:39:05,000
Speaker 3: And like even if you just pick one thing, whether

831
00:39:05,080 --> 00:39:09,360
Speaker 3: that's like you're deciding to just check your your balance

832
00:39:09,440 --> 00:39:11,400
Speaker 3: on the MyGov app, or you might pick up the

833
00:39:11,480 --> 00:39:12,920
Speaker 3: phone and I say this all the time.

834
00:39:13,000 --> 00:39:15,759
Speaker 2: Call your super fund. Like Beck used to work at

835
00:39:15,800 --> 00:39:16,319
Speaker 2: a super fund.

836
00:39:16,400 --> 00:39:16,640
Speaker 1: I did.

837
00:39:16,840 --> 00:39:18,719
Speaker 3: When you pick up the phone to call the super fund,

838
00:39:18,719 --> 00:39:21,319
Speaker 3: Am I talking to the CEO or someone condescending?

839
00:39:21,640 --> 00:39:22,680
Speaker 2: Oh you took to us?

840
00:39:22,920 --> 00:39:23,600
Speaker 3: You talking to you?

841
00:39:23,840 --> 00:39:25,640
Speaker 2: And like you can be like, what's my balance? And

842
00:39:25,880 --> 00:39:27,360
Speaker 2: you can be like, let me have a look for you,

843
00:39:27,480 --> 00:39:28,200
Speaker 2: Victoria girl.

844
00:39:28,560 --> 00:39:31,200
Speaker 3: Like people who work at super funds have your back,

845
00:39:31,320 --> 00:39:33,960
Speaker 3: and like people don't take jobs at super funds if

846
00:39:34,000 --> 00:39:36,839
Speaker 3: they don't want to be helpful. So anyway, call them,

847
00:39:36,880 --> 00:39:38,880
Speaker 3: because you're already paying the fees on that account. As

848
00:39:38,920 --> 00:39:41,239
Speaker 3: we talked about in this episode, and that's paying their

849
00:39:41,320 --> 00:39:45,680
Speaker 3: salaries and free advice. Absolutely, I love that for us.

850
00:39:46,239 --> 00:39:48,520
Speaker 3: Or maybe you're like wanting to take it a step

851
00:39:48,560 --> 00:39:50,200
Speaker 3: further and you're like, I'm going to add some extra

852
00:39:50,280 --> 00:39:52,680
Speaker 3: contributions because future you deserves that.

853
00:39:53,719 --> 00:39:55,239
Speaker 2: You're already going to be in a better spot.

854
00:39:55,320 --> 00:40:00,000
Speaker 3: Right and if you haven't already, my friends, please hit follow, tap, subscribe,

855
00:40:00,239 --> 00:40:02,359
Speaker 3: but do all the things because we've got plenty more

856
00:40:02,400 --> 00:40:04,279
Speaker 3: episodes that are coming in the future that are going

857
00:40:04,320 --> 00:40:06,719
Speaker 3: to put future in the best possible position. And like

858
00:40:06,920 --> 00:40:09,759
Speaker 3: I was born to talk about finance. You're doing good,

859
00:40:10,200 --> 00:40:12,840
Speaker 3: but also not God's work. This is so self indulgent.

860
00:40:12,920 --> 00:40:13,320
Speaker 2: I love it.

861
00:40:13,400 --> 00:40:16,920
Speaker 3: Imagine just yapping about the things that you love all day.

862
00:40:17,239 --> 00:40:19,680
Speaker 3: It does sound good and somehow it's my job. Yeah,

863
00:40:19,719 --> 00:40:21,440
Speaker 3: that's so lucky. She's blessed.

864
00:40:21,520 --> 00:40:24,680
Speaker 2: Super is so sexy. Anyway, we'll see you next week, guys.

865
00:40:24,800 --> 00:40:24,960
Speaker 3: Bye,