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It's never too early to talk RETIREMENT · She's On The Money

• 0:00
  Speaker 1: She's on the Money. She's on the Money.
• 0:23
  Speaker 2: Hello, and welcome to She's on the Money, the podcast
• 0:26
  Speaker 2: for millennials who want financial freedom. Retirement is something that
• 0:30
  Speaker 2: seems a long way off for most of us, but
• 0:33
  Speaker 2: according to Victoria Divine herself, putting in a little extra
• 0:36
  Speaker 2: work now can place us in a much better spot
• 0:39
  Speaker 2: when we do finally arrive at the end of our careers.
• 0:42
  Speaker 2: That's so dramatic and sad.
• 0:44
  Speaker 3: Can't we be excited to be putting ourselves in a
• 0:47
  Speaker 3: position to retire?
• 0:48
  Speaker 2: Of course, and that is what we will learn throughout
• 0:51
  Speaker 2: the show.
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  Speaker 3: My girl. Okay, all right, you were like, oh, so
• 0:54
  Speaker 3: like you can put yourself in a bit of a
• 0:56
  Speaker 3: better position at the end of your career, so sad?
• 1:01
  Speaker 2: Well, no, it's exciting. It's excited.
• 1:02
  Speaker 3: I don't want to stop working get there.
• 1:05
  Speaker 2: Well, hey, I don't think. I can't imagine you will
• 1:07
  Speaker 2: stop working.
• 1:07
  Speaker 3: But I.
• 1:09
  Speaker 2: Am Georgia King. I'm a copywriter and journalism student. I
• 1:14
  Speaker 2: don't say that enough these days. Anyway. Here to help
• 1:18
  Speaker 2: explain exactly how much money we need to retire and
• 1:21
  Speaker 2: the steps we can take to help us get there, is,
• 1:23
  Speaker 2: of course, financial advisor Victoria Divine for anyone listening today
• 1:30
  Speaker 2: who is around our age and is thinking retirement, that's
• 1:34
  Speaker 2: a boring topic. I don't want to listen now.
• 1:37
  Speaker 3: Don't bother if you think that this is going to
• 1:39
  Speaker 3: be super boring, just zone out, like honestly, why bother?
• 1:44
  Speaker 3: But being more serious, and I know it is not sexy,
• 1:48
  Speaker 3: but it is so important to set ourselves up properly
• 1:51
  Speaker 3: now so that when we get to retirement it's not
• 1:54
  Speaker 3: a surprise. And as much as it feels like a
• 1:56
  Speaker 3: million years away, Georgia, I think the easiest thing that
• 1:59
  Speaker 3: you can do to get a little bit of perspective
• 2:02
  Speaker 3: is ask a person who's in their sixties, whether that
• 2:05
  Speaker 3: is a parent, a guardian, maybe somebody that you're friends with.
• 2:08
  Speaker 2: I don't know.
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  Speaker 3: Ask someone in their sixties, Hey, did retirement creep up
• 2:13
  Speaker 3: on you? They'll be like, yes, I was thirty yesterday.
• 2:16
  Speaker 3: I was actually nineteen yesterday. How many times do we
• 2:19
  Speaker 3: hear our parents, Georgia, this is just relevant for you,
• 2:22
  Speaker 3: and I don't know if it's relevant for everybody else,
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  Speaker 3: but how many times do we hear our parents talking
• 2:26
  Speaker 3: about like, oh, well, when I bought a house or
• 2:29
  Speaker 3: when I was your age, like it feels like yesterday,
• 2:32
  Speaker 3: time literally flies, and as much as retirement seems off
• 2:36
  Speaker 3: in the distance and it's not something that we should
• 2:39
  Speaker 3: be prioritizing, I promise you it is. And by putting
• 2:42
  Speaker 3: in a tiny bit of effort right now, you're putting
• 2:45
  Speaker 3: yourself in a position that is probably going to put
• 2:48
  Speaker 3: you hundreds of thousands of dollars ahead in retirement without
• 2:52
  Speaker 3: much more effort. But if you leave it too late,
• 2:55
  Speaker 3: that's not going to be an option for you. So
• 2:57
  Speaker 3: that's why it's important.
• 2:58
  Speaker 2: Georgia King. Yeah, okay, well said, well said, thank you,
• 3:01
  Speaker 2: so you here all day. So you just mentioned hundreds
• 3:05
  Speaker 2: of thousands of dollars ahead if we do start now,
• 3:07
  Speaker 2: how much money do we actually need to retire in Australia?
• 3:11
  Speaker 3: Hundreds of millions of dollars? But actually that's not true.
• 3:15
  Speaker 3: So it completely depends on what kind of lifestyle you
• 3:18
  Speaker 3: want to lead and the big costs that you'll probably
• 3:20
  Speaker 3: want to cover at that point in your life, like
• 3:22
  Speaker 3: are you still going to be paying off a mortgage
• 3:24
  Speaker 3: where you have medical costs? Are you planning on retiring
• 3:27
  Speaker 3: and going to the Amalfi Coast for six months of
• 3:30
  Speaker 3: every year, or maybe you're planning something a little more
• 3:33
  Speaker 3: low key, like buying a caravan and going around Australia,
• 3:36
  Speaker 3: or maybe you don't want either of those things and
• 3:39
  Speaker 3: you're like me and just want to stay at home
• 3:41
  Speaker 3: with your cats.
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  Speaker 2: It is completely up to you.
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  Speaker 3: But all of those different lifestyle choices have different costs
• 3:47
  Speaker 3: associated with them. So the most important thing that you
• 3:51
  Speaker 3: can do is actually work backwards and go, all right,
• 3:54
  Speaker 3: how much money am I likely going to need in
• 3:57
  Speaker 3: retirement and work out what kind of investment figure is
• 4:01
  Speaker 3: going to produce that income for you? And we'll get
• 4:04
  Speaker 3: into it and I'll tell you how to do it
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  Speaker 3: in a minute. But according to money Smart, a good
• 4:08
  Speaker 3: rule of thumb is that you'll need two thirds or
• 4:11
  Speaker 3: sixty seven percent, or let's be more technical, sixty six
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  Speaker 3: point sixty six percent of your pre retirement income to
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  Speaker 3: maintain the same standard of living in retirement. So that
• 4:23
  Speaker 3: feels like a good amount because some people listening to
• 4:25
  Speaker 3: this podcast earn fifty thousand dollars. Some people don't earn
• 4:28
  Speaker 3: anything and they are on benefits at the moment, which
• 4:31
  Speaker 3: is totally fine, and some people earn four hundred thousand dollars,
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  Speaker 3: So it is going to be different for everybody, and
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  Speaker 3: that's actually okay. But the Association of Super Funds of
• 4:40
  Speaker 3: Australia has an industry retirement standard which actually estimates how
• 4:45
  Speaker 3: much money you'll need according to the type of lifestyle.
• 4:47
  Speaker 2: That you currently need.
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  Speaker 3: And they say, for individuals who want what they are
• 4:52
  Speaker 3: calling a quote comfortable lifestyle, they're going to need forty
• 4:56
  Speaker 3: four thousand, four hundred and twelve dollars of income annually.
• 5:01
  Speaker 2: And for a modest.
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  Speaker 3: Lifestyle, which is just covering the basics and just covering
• 5:05
  Speaker 3: the necessities, not the luxuries like your oatmeal clat every day,
• 5:09
  Speaker 3: which I'm going to be more towards that forty four
• 5:11
  Speaker 3: g king. So covering the basics, you'll need twenty eight thousand,
• 5:15
  Speaker 3: two hundred and fifty four dollars a year.
• 5:19
  Speaker 2: So those are some.
• 5:20
  Speaker 3: Stats, but gee, do you know what that actually means?
• 5:23
  Speaker 3: Though not really, it just sounds like a lot of
• 5:26
  Speaker 3: money and a lot of planning and working it out.
• 5:29
  Speaker 3: But when we start talking about how much income we
• 5:32
  Speaker 3: need in retirement, and I talk about this literally every
• 5:35
  Speaker 3: day because, as you guys know, I'm a financial advisor
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  Speaker 3: and I do have real clients, so I talk to
• 5:40
  Speaker 3: people about Okay, well, how are we retiring?
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  Speaker 2: What does that mean?
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  Speaker 3: What kind of lifestyle do you want? And I can
• 5:45
  Speaker 3: tell you a few things from that. The first thing
• 5:48
  Speaker 3: I can tell you is most of my clients do
• 5:50
  Speaker 3: not say that they are happy to live off forty
• 5:53
  Speaker 3: four thousand dollars a year. Most people go oh, v like,
• 5:57
  Speaker 3: if my mortgage was paid off, or if I didn't
• 5:59
  Speaker 3: have any debt orn't I was in a completely different situation.
• 6:03
  Speaker 3: In a perfect world, I would have maybe eighty thousand
• 6:05
  Speaker 3: dollars a year coming in. Because at the moment, eighty
• 6:09
  Speaker 3: thousand dollars is actually becoming the average of what people
• 6:12
  Speaker 3: earn in metropolitan areas. So I'm not saying that that's
• 6:15
  Speaker 3: the standard, and I never base it off that because
• 6:17
  Speaker 3: I know that that's actually not accurate. But it's a
• 6:19
  Speaker 3: good conversation starter. But it's actually going to depend on
• 6:23
  Speaker 3: what your current situation is and how we extrapolate that out.
• 6:27
  Speaker 3: So to talk about what forty four thousand dollars means,
• 6:31
  Speaker 3: let's go back to the example that if you've listened
• 6:33
  Speaker 3: to every single podcast you have heard before, because it's
• 6:37
  Speaker 3: really relevant here. But you know how I say, g oh,
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  Speaker 3: if you invest five hundred dollars each and every single
• 6:43
  Speaker 3: month at the age of twenty. By the time you retire,
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  Speaker 3: you'll have an investment portfolio worth one point two million dollars.
• 6:51
  Speaker 3: You've heard that, right, Yeah, yeah, I remember you saying that.
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  Speaker 3: You said it multiple times on the pod. It's my
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  Speaker 3: only example that I have memorized, so I'm going to
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  Speaker 3: keep using it. But one point two million dollars invested. Now,
• 7:03
  Speaker 3: we're not accounting for any type of CPI or indexation
• 7:06
  Speaker 3: or anything like that. We're just using base numbers because
• 7:10
  Speaker 3: if we're only starting the conversation around investment and super,
• 7:13
  Speaker 3: we don't actually need to get too complex because we're
• 7:16
  Speaker 3: going to work it out along the journey. But a
• 7:19
  Speaker 3: one point two million dollar investment portfolio provides us with
• 7:23
  Speaker 3: income every year. So you know how we talk about
• 7:26
  Speaker 3: compound interest and the interest that is payable. If you
• 7:29
  Speaker 3: had an average return of five percent on your superannuation
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  Speaker 3: in retirement, which was actually quite reasonable, because between five
• 7:37
  Speaker 3: percent and maybe like seven and a half percent is
• 7:39
  Speaker 3: what I would use as an estimation because you never
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  Speaker 3: want to overestimate those things because can you imagine if
• 7:45
  Speaker 3: you sat down with a financial advisor like me and
• 7:47
  Speaker 3: I was like, oh my gosh, we could achieve these
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  Speaker 3: epic returns for you, Georgia, and you're like, great, well,
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  Speaker 3: I'm going to need those to retire. And then we
• 7:54
  Speaker 3: didn't achieve those epic returns, we'd both be in a
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  Speaker 3: little bit of a pickle because one, I wouldn't have
• 8:00
  Speaker 3: put you in a situation where you could actually afford
• 8:02
  Speaker 3: your life. And too, you're probably a little bit mad
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  Speaker 3: because the income that you thought you were going to
• 8:06
  Speaker 3: get you're not actually getting. But essentially, the interest payable
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  Speaker 3: at five percent on a one point two million dollar
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  Speaker 3: investment PORTFOLIOG is sixty thousand dollars, So you could reasonably
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  Speaker 3: assume that a one point two million dollar investment or
• 8:22
  Speaker 3: a one point two million dollar superanuation fund is going
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  Speaker 3: to provide you with approximately sixty thousand dollars worth of
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  Speaker 3: income in today's dollars in retirement. So that's how we
• 8:34
  Speaker 3: work out how much money we need in super at
• 8:38
  Speaker 3: a particular age. And that's what frustrates me because so
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  Speaker 3: many super funds they put out all of these statistics
• 8:45
  Speaker 3: and they say, hey, gee, like to have a comfortable lifestyle,
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  Speaker 3: it's forty four grand a year for a single or
• 8:50
  Speaker 3: sixty two thousand dollars for a couple, and you go, great,
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  Speaker 3: what does that mean. I'm in my early twenties and
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  Speaker 3: I'm trying to work out what that means in the future. So,
• 9:00
  Speaker 3: using the example that the Association of Super Funds of
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  Speaker 3: Australia used for a couple having an income of sixty
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  Speaker 3: two thousand dollars a year, you're going to need an
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  Speaker 3: investment portfolio or a superanuation fund with about one point
• 9:14
  Speaker 3: two million dollars in it.
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  Speaker 2: Does that make sense? It does make sense. But just
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  Speaker 2: mass I'm so about at maus. So this one point
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  Speaker 2: two gives us sixty two K a year? Is about
• 9:26
  Speaker 2: sixty a year? Yeah? For how long soever? Is that
• 9:31
  Speaker 2: right though? But that's right.
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  Speaker 3: So the money that is actually in your investment portfolio
• 9:36
  Speaker 3: is invested, and you don't actually get to retirement and
• 9:39
  Speaker 3: have one point two million dollars and start spending it.
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  Speaker 3: You actually keep that one point two million dollars invested
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  Speaker 3: and the interest that is payable each and every single
• 9:49
  Speaker 3: year essentially becomes your income. So by setting yourself up
• 9:53
  Speaker 3: properly in retirement with an investment portfolio, you don't actually
• 9:58
  Speaker 3: start drawing down on it, or you don't s pulling
• 10:00
  Speaker 3: that money out and go great, I've got one point
• 10:02
  Speaker 3: two million dollars to spend, and if I spend it
• 10:04
  Speaker 3: all the once, that's going to be awkward. It's actually
• 10:08
  Speaker 3: that one point two million dollars each and every single year,
• 10:12
  Speaker 3: because of compounding interest, is going to provide you with
• 10:16
  Speaker 3: sixty thousand dollars and during the course of your lifetime.
• 10:20
  Speaker 3: So you're investing right now in superannuation, and the money
• 10:23
  Speaker 3: that you are investing is compounding. So instead of taking
• 10:27
  Speaker 3: that income out and spending it because you're not retired yet,
• 10:31
  Speaker 3: you're actually reinvesting that income into your superfund so that
• 10:35
  Speaker 3: it grows. And you know how much I'd love the
• 10:38
  Speaker 3: money Smart website and their compound interest calculator, and that's
• 10:42
  Speaker 3: a really good place to start to work out how
• 10:44
  Speaker 3: much money you need to invest for the long term
• 10:46
  Speaker 3: to achieve the goal that you have. But that money
• 10:50
  Speaker 3: is actually just money that your money makes each and
• 10:53
  Speaker 3: every single year, and it's not going to disappear. And
• 10:56
  Speaker 3: that's why I'm so passionate about it, because whether you
• 10:59
  Speaker 3: live to eighty, whether you live to one hundred or
• 11:02
  Speaker 3: one hundred and twenty. That income is going to keep
• 11:05
  Speaker 3: coming in. And let's be morbid for a hot second. G.
• 11:09
  Speaker 3: When you die, that is what you leave to your
• 11:12
  Speaker 3: family and your children, and that's how we start into
• 11:15
  Speaker 3: generational wealth.
• 11:18
  Speaker 2: Okay, my mind is blowing a little bit.
• 11:21
  Speaker 3: So let's be really dramatic for a hot second and
• 11:24
  Speaker 3: say that G King got to eighty eight and passed away. RIPG,
• 11:28
  Speaker 3: I'll come to the funeral. Yeap, great enough. I hope
• 11:32
  Speaker 3: you live longer than that. Just step firey no no, no,
• 11:35
  Speaker 3: neat no, no no.
• 11:36
  Speaker 2: I want you to live to at least one hundred
• 11:38
  Speaker 2: because then let the queen. Yeah, that's true, that's a goal.
• 11:42
  Speaker 3: But say you get to that age and you've got
• 11:44
  Speaker 3: your one point two million dollar investment portfolio, and you've
• 11:48
  Speaker 3: passed away, and you know, you've got your will and
• 11:50
  Speaker 3: your estate plan in place, so it goes nicely to
• 11:53
  Speaker 3: your children that I'm sure you're going to have at
• 11:55
  Speaker 3: least ten of That can do one of two things
• 11:58
  Speaker 3: for children. So that inheritance, and as you know, I
• 12:01
  Speaker 3: deal a lot with inheritance clients. That is actually my
• 12:04
  Speaker 3: bread and butter. But that inheritance can do one of
• 12:08
  Speaker 3: two things. It can either go to the children and
• 12:10
  Speaker 3: they divvied up and become an asset that they spend
• 12:13
  Speaker 3: because among your ten kids, it's obviously going to mean
• 12:16
  Speaker 3: a lot less because they might get one hundred thousand
• 12:18
  Speaker 3: dollars each or whatever it is, and they might put
• 12:21
  Speaker 3: that into a home and it might dissipate, or you
• 12:24
  Speaker 3: could say in your will, I only want them to
• 12:27
  Speaker 3: take the income, and if you have one child, you
• 12:29
  Speaker 3: could be providing that child with a sixty thousand dollars
• 12:33
  Speaker 3: income ongoing because you don't need it anymore. And they
• 12:36
  Speaker 3: have an investment portfolio that sustains their lifestyle. And that's
• 12:41
  Speaker 3: what happens when we talk about trust fund babies, because
• 12:44
  Speaker 3: they have a big trust that has all these investments
• 12:47
  Speaker 3: in it, and each and every single year their trust
• 12:50
  Speaker 3: makes a lot of money and then that money gets
• 12:53
  Speaker 3: distributed to them and that's how it keeps going in perpetuity.
• 12:58
  Speaker 2: Interesting, and I guess you're also saying there that you
• 13:01
  Speaker 2: don't have to be rich from the outset to set
• 13:06
  Speaker 2: your family up in that way. Like what you're kind
• 13:08
  Speaker 2: of saying is that if we make these small changes
• 13:12
  Speaker 2: or contributions every week, every month, then we could eventually
• 13:16
  Speaker 2: be in the position in retirement where we are able
• 13:19
  Speaker 2: to then hand that wealth down to our family, right. Yeah.
• 13:22
  Speaker 3: And that's something that in all honesty, really motivates me
• 13:26
  Speaker 3: when it comes to wealth, Like I'm not here going,
• 13:28
  Speaker 3: oh well, I want to be wealthy because I want
• 13:30
  Speaker 3: gooccie bags and designer things. Because as you guys know,
• 13:33
  Speaker 3: that's not really me. But the thing that motivates me
• 13:37
  Speaker 3: is knowing that one day I'll be able to support
• 13:39
  Speaker 3: a family and that my kids will be okay, and
• 13:42
  Speaker 3: that if housing prices are astronomical in the future, at
• 13:45
  Speaker 3: least they'll be able to pay rent on something to
• 13:47
  Speaker 3: make sure that they're always safe and always secure. It's
• 13:50
  Speaker 3: not necessarily oh I want them to be super rich
• 13:53
  Speaker 3: and be able to buy mansions, Like I just want
• 13:55
  Speaker 3: to know that my family are well looked after and
• 13:58
  Speaker 3: cared for. And that's one of my values. And I
• 14:01
  Speaker 3: think that it's important to understand that. You know, it
• 14:04
  Speaker 3: doesn't mean it's a bad thing. You might have different
• 14:06
  Speaker 3: goals and different values to me, but at the end
• 14:09
  Speaker 3: of the day, if we know more about wealth, we
• 14:12
  Speaker 3: are knowing enough to actually put ourselves in the positions
• 14:15
  Speaker 3: that we dream of.
• 14:16
  Speaker 2: Brilliant. Okay, back to super Thov. Yes, to people, are
• 14:22
  Speaker 2: people in retirement generally just living off their super or
• 14:27
  Speaker 2: do they have other investments set up? Or is it
• 14:30
  Speaker 2: just completely dependent on the individual.
• 14:33
  Speaker 3: Look, It could be both, it could be none. Some
• 14:36
  Speaker 3: people prioritize superannuation for their entire lives and they don't
• 14:40
  Speaker 3: invest any money outside of it. Now, this is probably
• 14:43
  Speaker 3: not the episode you expected me talking about my values
• 14:46
  Speaker 3: so much, but I think it's really important because it
• 14:48
  Speaker 3: really opens the conversation up to well, what does retirement mean?
• 14:52
  Speaker 3: So retirement here in Australia is the age of what
• 14:55
  Speaker 3: was it sixty six years and six months Georgia is
• 14:59
  Speaker 3: the time that you officially, according to the government, can retire.
• 15:03
  Speaker 3: But retirement actually isn't an age, it's actually financial freedom.
• 15:08
  Speaker 3: And financial freedom to me is so much more important
• 15:12
  Speaker 3: than just talking about retirement, because when we talk about retirement,
• 15:15
  Speaker 3: we're talking about supranuation and when we can access our
• 15:18
  Speaker 3: superranuation tax free so that we don't end up getting
• 15:21
  Speaker 3: stung with really big tax bills. But to me, retirement
• 15:25
  Speaker 3: means financial freedom and for me personally, that will be
• 15:30
  Speaker 3: the point in time that I am able to generate
• 15:33
  Speaker 3: enough income from my personal investments to not have to
• 15:37
  Speaker 3: go to work anymore. So if your goal is to
• 15:41
  Speaker 3: retire and have an income of sixty thousand dollars each
• 15:44
  Speaker 3: and every single year, then maybe achieving that earlier is
• 15:48
  Speaker 3: a value to you. And I love the idea that
• 15:51
  Speaker 3: maybe one day I'll be lucky enough to retire before
• 15:54
  Speaker 3: that age of sixty six years in six months. And
• 15:57
  Speaker 3: I would love to think that maybe at the age
• 15:59
  Speaker 3: of fifty, I would be financially free enough to make
• 16:02
  Speaker 3: any decision I want when it comes to work, because
• 16:06
  Speaker 3: I think that there is this massive misconception when it
• 16:08
  Speaker 3: comes to retirement that you have to hang up your
• 16:11
  Speaker 3: boots and that you're done, and that your career is
• 16:13
  Speaker 3: done and you start gardening and cycling and going to
• 16:16
  Speaker 3: lawn bowls and you know, maybe playing bridge with the girls.
• 16:20
  Speaker 2: But it's not what.
• 16:21
  Speaker 3: It means to me, and it's not what it means
• 16:23
  Speaker 3: to most of our community. Retirement is the age that
• 16:26
  Speaker 3: I can cut back my hours and not be financially
• 16:28
  Speaker 3: crippled by that I can maybe do something that is
• 16:31
  Speaker 3: a value to me, Like I could volunteer all of
• 16:34
  Speaker 3: my time but still have an income coming in or
• 16:37
  Speaker 3: even just focus on the hobbies that I adore while
• 16:40
  Speaker 3: technically being paid to do that. So that is actually
• 16:43
  Speaker 3: accessible to a lot of people if you're planning on
• 16:46
  Speaker 3: prioritizing it. And we did a whole episode Georgia on
• 16:49
  Speaker 3: that fire movement, so financial independence retire early about creating that,
• 16:54
  Speaker 3: So I won't round on about that too much, but
• 16:56
  Speaker 3: if you want to go listen to that, that was
• 16:58
  Speaker 3: a good episode. But at the end of the day,
• 17:01
  Speaker 3: people do generally live off their super but they also
• 17:04
  Speaker 3: live off different investments that they might have set up
• 17:07
  Speaker 3: along the way. So hopefully when I retire, I'm not
• 17:10
  Speaker 3: retiring and then relying on my superranuation. I have other
• 17:13
  Speaker 3: investments outside of that. Because if the retirement age today
• 17:17
  Speaker 3: Georgia is sixty six, how old is the retirement age
• 17:21
  Speaker 3: going to be in forty years when I retire? Like,
• 17:24
  Speaker 3: how am I going to be seventy? Do I actually
• 17:27
  Speaker 3: want to wait until seventy to have an income to
• 17:31
  Speaker 3: stop working for me? The answer is no, I actually
• 17:34
  Speaker 3: want to create that financial freedom before then. So that's
• 17:37
  Speaker 3: why I invest in save outside of superanuation while still
• 17:41
  Speaker 3: prioritizing making sure that I'm making use of essentially the
• 17:45
  Speaker 3: closest thing we have to a tax haven in Australia,
• 17:47
  Speaker 3: which is super because tax rates inside superannuation are only
• 17:51
  Speaker 3: fifteen percent in comparison to the marginal tax rates, which
• 17:54
  Speaker 3: could be anything up to thirty nine cents in every
• 17:57
  Speaker 3: single dollar. So there are lots of different options. And
• 18:00
  Speaker 3: you've probably heard of downsizing as well, and that's worth
• 18:04
  Speaker 3: touching on. And that is essentially where someone has a big,
• 18:07
  Speaker 3: fancy family home and they go and sell that fancy
• 18:10
  Speaker 3: family home and let's say it was worth a million dollars,
• 18:12
  Speaker 3: because in Australia that's actually becoming quite a normal number
• 18:16
  Speaker 3: for properties to sell for, which is baffling. But let's
• 18:19
  Speaker 3: say it's worth a million dollars and they go, great,
• 18:22
  Speaker 3: I've had these big family home, the kids have left,
• 18:24
  Speaker 3: we don't actually need this, we don't want to maintain
• 18:26
  Speaker 3: the gardens. We're going to go buy a four hundred
• 18:28
  Speaker 3: and fifty thousand dollars apartment. We're going to live in that,
• 18:31
  Speaker 3: and we're going to invest the difference into our super
• 18:34
  Speaker 3: or into another type of investment, and then they live
• 18:37
  Speaker 3: off that. So that's essentially what downsizing is. It's not
• 18:41
  Speaker 3: just going oh, I'm going to get a smaller property.
• 18:44
  Speaker 3: You are getting a smaller property to unlock some cash
• 18:47
  Speaker 3: so that you can invest that cash for a more
• 18:49
  Speaker 3: comfortable retirement.
• 18:52
  Speaker 2: Very interesting, I want to say, I mean, you have
• 18:55
  Speaker 2: a house.
• 18:56
  Speaker 3: Now, but oh my gosh, yes, but like if I downsized,
• 18:59
  Speaker 3: just oh the bank a lot, yeah, a lot of debt. Yeah,
• 19:03
  Speaker 3: not in the position to retire, sadly, at least you've
• 19:07
  Speaker 3: got one dough Thank you, thank you. I'm very proud
• 19:09
  Speaker 3: of that. That is literally one of the coolest things
• 19:12
  Speaker 3: that I have done. And I know that that's something
• 19:14
  Speaker 3: that a lot of people are going to be like, oh,
• 19:16
  Speaker 3: that's so entitled. You bought a house, Rara up. But like,
• 19:19
  Speaker 3: I'm just really grateful that my partner and I spent
• 19:21
  Speaker 3: so many years saving for a home and then got
• 19:23
  Speaker 3: to achieve that goal. And I think that a lot
• 19:25
  Speaker 3: of people don't see the flip side of how hard
• 19:28
  Speaker 3: it was to save for a home and actually getting
• 19:30
  Speaker 3: into the property market. Like for people still saving, I
• 19:33
  Speaker 3: promise you, the tough slog is worth.
• 19:35
  Speaker 2: It for sure. And we're actually next week on the show,
• 19:39
  Speaker 2: we're talking about renting forever, which is probably going to
• 19:42
  Speaker 2: be my fate. So if you're with me over there,
• 19:45
  Speaker 2: look forward to that. That is not true.
• 19:48
  Speaker 3: But in saying that, a lot of people I don't
• 19:50
  Speaker 3: want to buy a house and renting forever is actually
• 19:52
  Speaker 3: a really viable option. And I'm actually really excited to
• 19:55
  Speaker 3: talk about that. But let's get back to this episode, Georgia.
• 19:58
  Speaker 3: We keep going off track.
• 20:00
  Speaker 2: We do. There's a lot of tangents. Well, I'm interested,
• 20:02
  Speaker 2: I'll be relisting, don't you worry. So when it comes
• 20:06
  Speaker 2: time to grab our super when we're at retirement, do
• 20:09
  Speaker 2: they do we get like a fat check with our
• 20:12
  Speaker 2: one point two mill on it? Or do they out
• 20:15
  Speaker 2: like little tokens? How does it work?
• 20:17
  Speaker 3: Oh, they dish it out in tokens and food voucher.
• 20:19
  Speaker 3: Just no, no, they don't do that at all. So
• 20:22
  Speaker 3: what they do is it depends on your superanuation provider,
• 20:25
  Speaker 3: and you'll either be able to access your superannuation as
• 20:28
  Speaker 3: an income stream. So remember how I was saying before,
• 20:31
  Speaker 3: the interest that your money makes becomes your income. That's
• 20:35
  Speaker 3: essentially what happens. But if you don't have enough interest
• 20:39
  Speaker 3: being made from your superannuation, you will actually have to
• 20:43
  Speaker 3: take some of the cash out as well to top
• 20:45
  Speaker 3: that up, and there are some rules around how much
• 20:49
  Speaker 3: cash you have to take each and every single year,
• 20:51
  Speaker 3: so you will have to look into that. But it
• 20:53
  Speaker 3: would be silly of me to be like, oh, it's
• 20:55
  Speaker 3: like five percent at this point, because who knows when
• 20:57
  Speaker 3: we're going to retire. It's actually not important, but that's
• 21:00
  Speaker 3: how it works. But I would also caution against taking
• 21:03
  Speaker 3: lump sums out and just taking all your money, because
• 21:06
  Speaker 3: as tempting as it might be, I think the important
• 21:08
  Speaker 3: thing there is that cash needs to actually provide for
• 21:11
  Speaker 3: your retirement, and most of us don't know how to
• 21:13
  Speaker 3: manage that amount of cash to provide an ongoing income
• 21:18
  Speaker 3: stream for retirement. So I'd err against wanting to do that.
• 21:23
  Speaker 3: But again, each to your own You are the boss
• 21:25
  Speaker 3: of your own life.
• 21:26
  Speaker 2: I guess if you took it out in cash, if
• 21:29
  Speaker 2: that was a thing, then also you would lose all
• 21:31
  Speaker 2: of that future income right like you just have.
• 21:34
  Speaker 3: Yeah, it's essentially like taking an investment out and making
• 21:38
  Speaker 3: it cash, like it's not going to keep making you money.
• 21:40
  Speaker 3: And the most important thing when we get to retirement
• 21:44
  Speaker 3: is having a secure income stream, because that's something that
• 21:48
  Speaker 3: not that many people actually have access to.
• 21:50
  Speaker 2: All right, I think we will leave it there for
• 21:53
  Speaker 2: a minute, V, but after the break we'll be chatting
• 21:56
  Speaker 2: all things pension and also see I know, and also
• 22:00
  Speaker 2: how you can put yourself in the best financial spot
• 22:03
  Speaker 2: now so when it comes time to retire, you set
• 22:06
  Speaker 2: to go. Don't go anywhere, guys, okay, B. So we've
• 22:13
  Speaker 2: discussed super, We've discussed other investment options. We've discussed downsizing
• 22:19
  Speaker 2: and property and what that looks like. So let's hut pension.
• 22:24
  Speaker 2: Is there a pension in Australia currently? Yes, there is,
• 22:27
  Speaker 2: my friend.
• 22:28
  Speaker 3: The age pension is essentially the system that is in
• 22:31
  Speaker 3: place to provide retired or older Australians with an income
• 22:35
  Speaker 3: if they do not have enough money in their superannuation.
• 22:38
  Speaker 3: We are so lucky we live in a country that
• 22:41
  Speaker 3: if you don't have enough super, they will help you
• 22:44
  Speaker 3: and they will support you. And that is not the
• 22:46
  Speaker 3: case for so many countries. And they know that. You know,
• 22:49
  Speaker 3: I'm one of those people that's always like, you know,
• 22:51
  Speaker 3: practice gratitude and all of that other stuff, But like,
• 22:54
  Speaker 3: how cool is it that we live in a country
• 22:56
  Speaker 3: that they're like, oh, gee, you didn't invest enough or
• 22:58
  Speaker 3: save enough. That's all good. We got an income for
• 23:00
  Speaker 3: you in saying that there is criteria that you need
• 23:04
  Speaker 3: to meet to be eligible for it. You can't be
• 23:06
  Speaker 3: earning millions of dollars and still get free money from
• 23:08
  Speaker 3: the government. You do have to actually be in need
• 23:11
  Speaker 3: of it.
• 23:12
  Speaker 2: So to be eligible for.
• 23:13
  Speaker 3: The pension here in Australia, you need to be of
• 23:15
  Speaker 3: age pension age sexy, which is sixty six years and
• 23:20
  Speaker 3: six months old. You need to be under the income
• 23:23
  Speaker 3: and assets test, otherwise you're going to end up with
• 23:26
  Speaker 3: a reduced pension or perhaps no pension if you have
• 23:28
  Speaker 3: too much money, and you need to be an Australian
• 23:31
  Speaker 3: resident for at least ten years. So if you tick
• 23:35
  Speaker 3: all of those boxes, then you are very likely to
• 23:37
  Speaker 3: be eligible for the age pension. Something that I want
• 23:40
  Speaker 3: to point out here that Gee, you and I were
• 23:42
  Speaker 3: talking about before recording this episode is that your family
• 23:46
  Speaker 3: home or what the government calls your primary residence, does
• 23:51
  Speaker 3: not get taken into consideration when actually working out what
• 23:55
  Speaker 3: assets you have, So your primary residence isn't taken into
• 23:59
  Speaker 3: consideration and it comes to working up whether you can
• 24:02
  Speaker 3: get a pension or not, which I think is really
• 24:04
  Speaker 3: cool because it puts you in a position where you
• 24:07
  Speaker 3: can own your family home outright. You know, you can
• 24:10
  Speaker 3: save up and have a mortgage and pay it all
• 24:12
  Speaker 3: off and then be in a position where you still
• 24:14
  Speaker 3: are able to have a roof over your head, but
• 24:16
  Speaker 3: still get the pension, which I think is really important.
• 24:19
  Speaker 3: But to go back to income for a second, the
• 24:23
  Speaker 3: income levels are actually quite low, which I mean, you
• 24:26
  Speaker 3: won't be that surprised with, but I think that they're
• 24:29
  Speaker 3: super low. But essentially, if you make over one hundred
• 24:32
  Speaker 3: and eighty dollars per fortnite, your pension will reduce by
• 24:37
  Speaker 3: fifty cents for every dollar over one hundred and eighty dollars,
• 24:40
  Speaker 3: which I feel like is a lot, but at the
• 24:42
  Speaker 3: same time I get it because we really should be
• 24:45
  Speaker 3: holding back the pension for those who actually need it.
• 24:47
  Speaker 3: But to give you a little bit of an indicator
• 24:49
  Speaker 3: of how much that is, this is for.
• 24:51
  Speaker 2: Twenty twenty one.
• 24:52
  Speaker 3: It changes all the time, So don't take this as gospel.
• 24:55
  Speaker 3: If you're listening to this podcast five years in the future, Lowell,
• 24:58
  Speaker 3: imagine if people were still listening to our podcast in
• 25:00
  Speaker 3: five past time. Georgia.
• 25:01
  Speaker 2: I hope it's I hope it's nice. In twenty thirty six,
• 25:05
  Speaker 2: hopefully the pandemic's done.
• 25:06
  Speaker 3: Oh my gosh. If it is fun, send us a
• 25:08
  Speaker 3: message in five years. If you're listening to this, thank you,
• 25:11
  Speaker 3: but essentially normal rate pension, you will receive a maximum
• 25:16
  Speaker 3: base rate as a single per fortnite eight hundred and
• 25:19
  Speaker 3: sixty eight dollars and thirty cents, and then as a
• 25:22
  Speaker 3: couple combined you will receive thirteen hundred and nine dollars
• 25:26
  Speaker 3: per fortnite, which sounds like a pretty comfy living, but
• 25:30
  Speaker 3: at the same time, thirteen hundred dollars a fortnite is
• 25:33
  Speaker 3: about six hundred and fifty dollars a week, and that
• 25:36
  Speaker 3: has to cover every single one of your expenses if
• 25:39
  Speaker 3: you don't have any other form of income, which can
• 25:42
  Speaker 3: lead you in a little bit of a sticky spot.
• 25:44
  Speaker 3: So basically, Georgia, the pension sets you up with the
• 25:47
  Speaker 3: modest lifestyle we mentioned earlier in this episode, so it's
• 25:50
  Speaker 3: definitely enough to live off to cover the basics.
• 25:53
  Speaker 2: But I guess in retirement, as we were saying earlier,
• 25:56
  Speaker 2: like people might want to travel, they might want to
• 25:58
  Speaker 2: play bridge with the girl, and memberships expensive to the
• 26:01
  Speaker 2: bridge club, like, it might not be enough for the
• 26:05
  Speaker 2: life that you want to live to live, but it's
• 26:07
  Speaker 2: still something exactly.
• 26:09
  Speaker 3: And if we be honest, that amount of money being
• 26:11
  Speaker 3: paid into your account each fortnite, it might sound like, okay, cool,
• 26:14
  Speaker 3: I could cover the basics, but it's definitely not putting
• 26:17
  Speaker 3: you in a position to live maybe a luxury lifestyle
• 26:19
  Speaker 3: if that's what you want to do. And if you
• 26:21
  Speaker 3: go back to what I was saying at the start
• 26:23
  Speaker 3: of this episode, if you're planning on doing international travel
• 26:26
  Speaker 3: or traveling around Australia, or you know, even doing different hobbies,
• 26:30
  Speaker 3: that might not allow for it. And that's okay, because
• 26:33
  Speaker 3: at the end of the day, having the basics is
• 26:35
  Speaker 3: literally the bare minimum, and I think that that is
• 26:38
  Speaker 3: so fantastic. But if that's not what you're planning, then
• 26:42
  Speaker 3: we can start planning now and put ourselves in a
• 26:44
  Speaker 3: position where we live the life that we want to live.
• 26:47
  Speaker 2: Well, that leads very nicely to my next question, Vickid,
• 26:51
  Speaker 2: just now, what can we be doing now if we
• 26:55
  Speaker 2: don't want to live on the pension and we do
• 26:57
  Speaker 2: see ourselves traveling and doing all of those lucks things
• 27:01
  Speaker 2: in g plans. I reckon you'll be a world traveler.
• 27:04
  Speaker 3: When you're old you'll be Nana. Yeah, you'll be Nana.
• 27:09
  Speaker 2: Backpack on. No, you won't help store your fancy.
• 27:13
  Speaker 3: Luggage that somebody else carries, and you'll tell us your
• 27:16
  Speaker 3: kids about your summer in France.
• 27:17
  Speaker 2: I bet you I'm onto g king. That's me fancy else.
• 27:22
  Speaker 2: So far from what Georgia would want to do.
• 27:24
  Speaker 3: She'd have a backpack in a bag of goon and
• 27:26
  Speaker 3: she'd be off soon.
• 27:29
  Speaker 2: Not wrong, doll.
• 27:29
  Speaker 3: You know me well, so tell us how we can
• 27:32
  Speaker 3: make that happen. So there are a lot of things
• 27:35
  Speaker 3: that you can do.
• 27:35
  Speaker 2: Gi.
• 27:36
  Speaker 3: One of the first ones I want you to consider
• 27:38
  Speaker 3: is consolidating your super funds so that you are not
• 27:41
  Speaker 3: paying multiple fees on multiple accounts. I've told you before
• 27:44
  Speaker 3: to make sure that you are taking into consideration your
• 27:47
  Speaker 3: insurances before you do that, though, because we don't want
• 27:50
  Speaker 3: to cancel insurances. That might be putting us in a
• 27:53
  Speaker 3: very good position that we wouldn't be able to get back.
• 27:56
  Speaker 3: So consolidate your super. Get fewer fees because those fees
• 28:00
  Speaker 3: do really eat into your superannuation. Consider making additional contributions
• 28:05
  Speaker 3: to super so work out how much money you need
• 28:07
  Speaker 3: to have in super bier particular age and like this
• 28:10
  Speaker 3: is fickle, right, So the average super amounts of how
• 28:14
  Speaker 3: much money you should have in super are not how
• 28:16
  Speaker 3: much money you have in super for your lifestyle that
• 28:19
  Speaker 3: you're choosing. You need to actually work backwards from that.
• 28:22
  Speaker 3: So remember how we use the example if you if
• 28:23
  Speaker 3: you want an income of sixty thousand dollars, you need
• 28:26
  Speaker 3: a one point two million dollar investment portfolio. You're going
• 28:29
  Speaker 3: to work that out and then work out how to
• 28:32
  Speaker 3: stay on track for that. The money Smart Compound Interest
• 28:36
  Speaker 3: Calculator is going to help you here find it just
• 28:39
  Speaker 3: by googling it. It is honestly such a fab resource.
• 28:42
  Speaker 3: We will again put the link to that in the
• 28:44
  Speaker 3: show notes so that you can find it. But essentially
• 28:46
  Speaker 3: for someone between the ages and this pieces me off
• 28:49
  Speaker 3: Georgia because gender pay gap. But there is a difference
• 28:52
  Speaker 3: between men and women and how much money on average
• 28:55
  Speaker 3: men and women having their super accounts for their age.
• 28:58
  Speaker 3: But between the ages of twenty and twenty four, the
• 29:01
  Speaker 3: average male balance is nine thousand, four hundred and the
• 29:05
  Speaker 3: average female balance is about eight thousand dollars between twenty
• 29:09
  Speaker 3: five and twenty nine. And the thing that pisses me
• 29:12
  Speaker 3: off is as you get older, this gap gets bigger, Georgia,
• 29:15
  Speaker 3: watch this. For a man between twenty five and twenty nine,
• 29:19
  Speaker 3: the average balance is twenty eight thousand, three hundred, and
• 29:22
  Speaker 3: for a woman twenty three thousand, seven hundred. Then for
• 29:25
  Speaker 3: a man between the ages of thirty and thirty four,
• 29:28
  Speaker 3: the average balance is fifty eight thousand dollars, and for
• 29:32
  Speaker 3: a woman it is forty five thousand dollars. Then between
• 29:37
  Speaker 3: thirty five and thirty nine, for a man it's ninety
• 29:40
  Speaker 3: two thousand, four hundred, but for a woman it is
• 29:43
  Speaker 3: seventy two thousand. Jeez. And then and I won't keep
• 29:47
  Speaker 3: reading them all, but for someone between the ages of
• 29:50
  Speaker 3: forty to forty four, for a male, they'll have one
• 29:53
  Speaker 3: hundred and thirty four thousand dollars, so they are now
• 29:55
  Speaker 3: in happy six figures. For a woman they have ninety
• 30:00
  Speaker 3: eight thousand dollars. Did you see how that gap at
• 30:03
  Speaker 3: the very start, when you're twenty to twenty four is
• 30:05
  Speaker 3: only about one thousand dollars, But then it's literally more
• 30:09
  Speaker 3: than thirty thousand dollars by the time you're in your
• 30:11
  Speaker 3: early forties.
• 30:12
  Speaker 2: And this is this is because women take time out
• 30:15
  Speaker 2: of work to have look at time jobs all of that.
• 30:20
  Speaker 2: There's a lot of reasons.
• 30:21
  Speaker 3: But at the same time as talking about women taking
• 30:24
  Speaker 3: time out of jobs, and you know, we all do
• 30:27
  Speaker 3: that and that's why I think we really need to
• 30:28
  Speaker 3: take our super seriously. And if you're planning on taking
• 30:31
  Speaker 3: time off, talk to your partner, if you're planning on
• 30:34
  Speaker 3: having a baby about potentially them contributing to your superfund
• 30:38
  Speaker 3: or plan to contribute extra so that you make up
• 30:41
  Speaker 3: for the time that you might lose. Like, these things
• 30:44
  Speaker 3: are important to consider. But the gender pay gap in
• 30:47
  Speaker 3: Australia is still fourteen point nine percent Georgia. Like that
• 30:50
  Speaker 3: is for a man and a woman doing exactly the
• 30:53
  Speaker 3: same job. So it's not just super, it's not you know,
• 30:55
  Speaker 3: taking into consideration the time that's being taken off. We
• 30:59
  Speaker 3: as women literally get paid less for the same job.
• 31:04
  Speaker 2: And that means then that we get less super because
• 31:06
  Speaker 2: it's based on percentages, right exactly.
• 31:09
  Speaker 3: And do you know this is me going on a
• 31:11
  Speaker 3: completely different ranch. But when it comes to retirement, do
• 31:15
  Speaker 3: you know that the biggest age demographic of people who
• 31:20
  Speaker 3: are becoming homeless is women at retirement age. Yeah, and Georgia,
• 31:25
  Speaker 3: that's disgusting, Like we need to do more and do better,
• 31:28
  Speaker 3: not just for ourselves, but for the women that's around
• 31:31
  Speaker 3: us and Georgia the pay gap. Obviously, we're on our
• 31:33
  Speaker 3: high horses about women because we have really good statistics
• 31:36
  Speaker 3: around this, but for our friends who are non binary
• 31:38
  Speaker 3: or in other minority groups, they are even worse off.
• 31:41
  Speaker 3: We just don't have the statistics for it. And I
• 31:44
  Speaker 3: just think that that is so wildly unfair, and we
• 31:46
  Speaker 3: need to be having these conversations more often and more
• 31:50
  Speaker 3: openly and talk about these things because I don't want
• 31:53
  Speaker 3: people in our community getting to retirement and literally be
• 31:57
  Speaker 3: on the verge of homelessness. To me, that is so unfair.
• 32:01
  Speaker 3: And my job is to literally educate you guys so
• 32:04
  Speaker 3: that that doesn't happen, so that we can protect each other,
• 32:07
  Speaker 3: so that we can look after ourselves. And you know,
• 32:10
  Speaker 3: it's not just a women's issue. It is a whole
• 32:13
  Speaker 3: community issue.
• 32:16
  Speaker 2: And I guess so it's almost as if like a
• 32:19
  Speaker 2: single woman, for example, would be much more independent and
• 32:24
  Speaker 2: in control of their finances because they have to be right,
• 32:27
  Speaker 2: whereas women in these long term relationships, maybe they've had
• 32:31
  Speaker 2: fifteen years out of the workforce, don't have any super
• 32:33
  Speaker 2: they've just always relied on on the male in the
• 32:36
  Speaker 2: relationship or whoever the person at work is that then
• 32:40
  Speaker 2: if that relationship crumbles, then they're ruined. Right, Yeah, how literally?
• 32:45
  Speaker 2: So if you are in that partnership, how can you
• 32:48
  Speaker 2: safeguard your finances? Do you talk to them? As you
• 32:51
  Speaker 2: said before, about making contributions to your super That sounds hard,
• 32:56
  Speaker 2: but is it just something we have to do?
• 32:58
  Speaker 3: So, Gee, we absolutely have to do that. And we
• 33:00
  Speaker 3: know that on average, women retire with half the amount
• 33:03
  Speaker 3: of Superman men, which is disgusting, and forty percent of
• 33:07
  Speaker 3: older single retired women live in poverty and economic insecurity
• 33:11
  Speaker 3: when they reach retirement. I just read that off the
• 33:14
  Speaker 3: list of things that we've written down for this episode,
• 33:16
  Speaker 3: and honestly makes me sick every single time I read
• 33:19
  Speaker 3: this because it is just so wildly unfair, and a
• 33:22
  Speaker 3: lot of it, Gee, is about what you're talking about.
• 33:24
  Speaker 3: They've lived in happy marriages until or maybe unhappy marriages.
• 33:28
  Speaker 3: That was wild speculation on my behalf. But they've been
• 33:31
  Speaker 3: married or reliant on somebody else for so much of
• 33:33
  Speaker 3: their lives and then they get to this age and
• 33:36
  Speaker 3: that relationship potentially disintegrates and they're left with nothing So
• 33:39
  Speaker 3: that's why as young people, we really need to be
• 33:43
  Speaker 3: considering and trying to put ourselves in the best possible position,
• 33:47
  Speaker 3: whether we trust our partners or not. Like you need
• 33:50
  Speaker 3: to make your super a priority, you need to make
• 33:52
  Speaker 3: your income a priority. You need to understand budget and
• 33:56
  Speaker 3: cash flow, not because it's just cool too, because it's
• 34:00
  Speaker 3: actually essential. Like I think that a lot of people
• 34:03
  Speaker 3: might go, oh, yeah, like money is trendy at the moment,
• 34:05
  Speaker 3: it's so cool, Like no, it's not. It's always cool
• 34:09
  Speaker 3: to be financially secure. It is always trendy to put
• 34:12
  Speaker 3: yourself in the best possible position, because poverty is not sexy,
• 34:16
  Speaker 3: and economic insecurity is not something I would wish on anybody,
• 34:20
  Speaker 3: but a lot of our community goes through it, and
• 34:23
  Speaker 3: we need to understand that and break the stigmas surrounding
• 34:26
  Speaker 3: that down because more often than not, it's not the
• 34:29
  Speaker 3: person experiencing that's fault. It is the fault of the
• 34:33
  Speaker 3: community and our lack of education and the system that
• 34:36
  Speaker 3: we have grown up with, and it is not something
• 34:39
  Speaker 3: that anybody ever puts themselves in the position of intentionally.
• 34:43
  Speaker 3: And I think that we need to just be a
• 34:45
  Speaker 3: little bit more supportive a little bit softer and actually
• 34:47
  Speaker 3: try and help work out ways to fix this issue.
• 34:51
  Speaker 3: And you know, I'm a bit randy on this episode because,
• 34:54
  Speaker 3: as you know, money is something I'm really passionate about.
• 34:56
  Speaker 2: But it's not because I'm here.
• 34:57
  Speaker 3: Going, oh I want to get rich. I love money,
• 34:59
  Speaker 3: let's do whish she's on the Money podcast. It's because
• 35:02
  Speaker 3: we literally retire with less money than men. It's because
• 35:05
  Speaker 3: we literally are in the situation where if we don't
• 35:08
  Speaker 3: care about this, we are going to live in poverty.
• 35:10
  Speaker 3: Because if we don't care about this, economic insecurity is
• 35:13
  Speaker 3: going to be our reality. And that's just the truth
• 35:16
  Speaker 3: of it.
• 35:17
  Speaker 2: Yeah, exactly, And we need to have these conversations and
• 35:20
  Speaker 2: raise awareness because how else do we know about them?
• 35:23
  Speaker 3: Absolutely, but back to the reasons you mentioned before, g As,
• 35:26
  Speaker 3: the system is absolutely set up for males to thrive
• 35:31
  Speaker 3: to look after ourselves coming into retirement years. Not that
• 35:33
  Speaker 3: many of us are even close to it, but we
• 35:36
  Speaker 3: need to make sure that we have a level of
• 35:38
  Speaker 3: financial independence, regardless of how codependent our relationships are. So
• 35:43
  Speaker 3: whether that means you have your own savings account or
• 35:46
  Speaker 3: as I always recommend, having your own emergency fund, like
• 35:50
  Speaker 3: I actually am going to be really blunt here, I
• 35:52
  Speaker 3: don't care how much you love your partner, your husband,
• 35:56
  Speaker 3: the person you live with, whatever we're going to call them.
• 35:59
  Speaker 3: I actually I don't care. Still have your own emergency fund,
• 36:03
  Speaker 3: because that is going to give you the power to
• 36:06
  Speaker 3: one not experience poverty, but two put you in a
• 36:10
  Speaker 3: position where you can escape a situation at location, a job,
• 36:14
  Speaker 3: a person that you no longer want to be associated with.
• 36:17
  Speaker 3: And if we don't have that, we don't have that power.
• 36:21
  Speaker 3: And the amount of people in our community g who say,
• 36:24
  Speaker 3: oh my gosh, Victoria didn't listen to you for the
• 36:27
  Speaker 3: first year of your podcast. But I now have an
• 36:29
  Speaker 3: emergency fund, and I sleep so much better at night.
• 36:32
  Speaker 3: I feel so much more empowered. I feel like I
• 36:36
  Speaker 3: am finally financially secure. I'm not experiencing the stress that
• 36:40
  Speaker 3: I used to experience around money. It makes me so proud.
• 36:44
  Speaker 3: But more of us need emergency funds. And g to
• 36:47
  Speaker 3: get a little bit legal on you if you're not
• 36:49
  Speaker 3: married yet and you are planning on getting married or
• 36:52
  Speaker 3: even moving in with a partner, finding financial agreements. We
• 36:56
  Speaker 3: did an entire podcast on this. Go back and listen
• 36:59
  Speaker 3: to that episode about making sure that you are putting
• 37:03
  Speaker 3: each other in the best possible financial position should something
• 37:06
  Speaker 3: else happen, and it's to me again, here's some unsolicited
• 37:10
  Speaker 3: relationship advice, Georgia. If your partner has a problem with that,
• 37:14
  Speaker 3: I have a problem with them. But is it not
• 37:17
  Speaker 3: a massive rate of flag if somebody says, oh, gee, sorry,
• 37:21
  Speaker 3: I know we're moving in together, but I just feel
• 37:23
  Speaker 3: so uncomfortable having a binding financial agreement that puts us
• 37:26
  Speaker 3: both in the best possible position.
• 37:27
  Speaker 2: Should we separate? Yeah, it makes so much sense to
• 37:31
  Speaker 2: have one. But also, let me be that friend.
• 37:33
  Speaker 3: If you are in a situation where it's so awkward
• 37:36
  Speaker 3: to bring it up and you're not sure, blame me literally,
• 37:39
  Speaker 3: say that you've had a conversation with me. Or so
• 37:42
  Speaker 3: you listen to this dumb podcast and they keep ranting
• 37:44
  Speaker 3: on about binding financial agreements and oh, hey, Harper, that's
• 37:49
  Speaker 3: Georgia's partner.
• 37:50
  Speaker 2: For anybody following along, I.
• 37:51
  Speaker 3: Listened to the silly podcast and they said, we should
• 37:54
  Speaker 3: have a binding financial agreement. What do you think, Like,
• 37:57
  Speaker 3: blame me. You don't have to bring it up and say, hey, Harper,
• 38:01
  Speaker 3: I think this is a really good idea. If you're
• 38:03
  Speaker 3: not ready to like literally use me as a segue.
• 38:06
  Speaker 3: I'll be the bad guy. I would love to be
• 38:09
  Speaker 3: the bad guy if it means you're in a better
• 38:10
  Speaker 3: financial position because of it. Yeah, and it benefits both partners,
• 38:15
  Speaker 3: I would agree. But do you know what I think
• 38:17
  Speaker 3: you and I can both agree on, Georgia, is that
• 38:20
  Speaker 3: this podcast is pretty long and we probably should.
• 38:23
  Speaker 2: Wrap it up. Do you reckon we leave it there?
• 38:26
  Speaker 2: I reckon we leave it there. We'll probably open a
• 38:28
  Speaker 2: thread in the Facebook group at some point this week
• 38:31
  Speaker 2: as well, guys, so if you do have more questions,
• 38:33
  Speaker 2: open it up and we'll continue the conversation. But hopefully
• 38:37
  Speaker 2: you have learned something today. I know I certainly have.
• 38:41
  Speaker 2: But h I think that is all we have time for.
• 38:43
  Speaker 3: And as always g just before we head off, we'd
• 38:46
  Speaker 3: like to acknowledge and pay respect to Australia's Aboriginal and
• 38:49
  Speaker 3: torrest Right Islander people's. They're the traditional custodians that the lands,
• 38:53
  Speaker 3: the waterways.
• 38:54
  Speaker 2: And the skies all across Australia.
• 38:57
  Speaker 3: We thank you for sharing and for caring for the
• 38:59
  Speaker 3: land on which we are able to learn. We pay
• 39:01
  Speaker 3: our respects to elders past and present, and we share
• 39:04
  Speaker 3: our friendship and our kindness and.
• 39:06
  Speaker 2: The advice shared on She's on the Money is general
• 39:09
  Speaker 2: in nature and does not consider your individual circumstances. She's
• 39:13
  Speaker 2: on the Money exists purely for educational purposes and should
• 39:16
  Speaker 2: not be relied upon to make an investment or a
• 39:18
  Speaker 2: financial decision. And we promise. Victoria to Vine is an
• 39:22
  Speaker 2: authorized representative of Australia Pacific Funds Management Proprietary Limited ABN
• 39:27
  Speaker 2: three four one three two four six three two five
• 39:30
  Speaker 2: seven APHOSL three three nine one five one. Gee.
• 39:33
  Speaker 3: Remember that time that we said that the end of
• 39:36
  Speaker 3: twenty twenty was a garbage fire?
• 39:37
  Speaker 2: Can you imagine what we're going to say? The end
• 39:39
  Speaker 2: of twenty twenty one is mate. We thought it was
• 39:41
  Speaker 2: all behind us. Now here we are. It is as
• 39:44
  Speaker 2: in zoom on zoom. But we're still smiling, aren't we?
• 39:48
  Speaker 1: We are?
• 39:48
  Speaker 2: We love this. See you know all doing well? Guys?
• 39:52
  Speaker 2: We love you. Bye, We love you, bye bye