Latest / Money Grows on Trees / #270 - Financial Coach Responds To Australia’s Retirement Reality

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#270 - Financial Coach Responds To Australia’s Retirement Reality · Money Grows on Trees

• 0:10
  You are welcome. Thanks for, um, you're actually the very first off
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  the rank of our new series. So how exciting. This is
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  Well, um, I, I
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  don't know if you, you read the, the, you know, like, the entry,
• 0:28
  reply here and you might get one of five calls. I put some
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  background in there. Basically, sole parent, adult children
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  now, Iím 60, retire at 67, donít own a home. So,
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  my rent is about to go up to $700 a week. I
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  canít afford to save very much, if at all. And
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  then something comes along like, ìOh, I need another pair of $800 glasses.î
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  Because, you know, Old, old.
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  Anyway, so if my
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  And so how can I maximize what
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  years I've got left to work? So, you know, I don't want to become a
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  homeless old woman living in a car. I
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  Okay, great. So the one thing that you're needing is
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  I'm a musician and a music teacher, so I'm teaching Oh,
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  great. I teach singing and piano full time at school. Marvellous. Every
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  day, five days a week. So I've started teaching at home as well.
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  Okay, great. Excellent. So you're teaching at home as a side hustle, plus
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  The side hustle is, it's only about a
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  Okay, great. That's wonderful. Well done. Fantastic. So you can
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  easily afford rent now. Life is okay. You can easily afford $800 glasses
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  now, but your challenge is in seven years time when
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  you decide that you want to retire, what do you do in terms of
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  I'll just make it work for me. Get
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  the most out of my money. Great. I don't know much about investing. Sure.
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  So all of those things are on my to-do list.
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  Wonderful. Well, it turns out that you're already investing because
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  your superannuation is actually invested predominantly probably I
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  So well done. You're already investing in shares. The trick
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  is how do you build up enough wealth to want to
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  So here's a novel idea that may, you may not have thought
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  No, no. I actually, when I, when I consider retirement, it
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  So what do you want to do? I just want to do whatever I want to
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  do. What's that? whatever I
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  feel like on the day. Um, I. So you don't want
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  to teach music anymore? I am burnt. What
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  I do want to do is build a home studio and cause cause
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  I do write and arrange and record and
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  Or whatever. Yeah, so two actually, that's what I would like to do when I
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  So you don't have a desire to buy a
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  Yeah. I think I'm being, I'm going to inherit one, I think.
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  One of my, one of my mates has, he
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  doesn't have family and we've been friends for decades and he has no
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  one to leave anything to. So if he's telling
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  Okay. Um, so I might be okay, but that's not
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  So that's a good plan B. He has shares as well. He has shares, so I'll
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  No, no, it's okay. In the interim, would it be okay if you were
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  Great. Excellent. Would it be okay if you did that plus have a studio and, and
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  Would it be okay if you did that beyond 67 so you could easily afford rent
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  Great. So would it be okay if you from today onwards decided to
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  set aside some money, obviously maximizing your superannuation by
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  the sounds like you're doing, but would it be okay if you were to save up a little bit
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  of money too and perhaps either invest it outside your
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  super or build up for even
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  potentially, I don't think a house is probably on
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  the cards at the minute because of your age and they're going to be restrictive in
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  terms of what they lend money. Yeah. So I would encourage
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  you to start living the life that you
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  Does that make sense? So that we can just remove this whole barrier of
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  this 67 thing, because there are people out there like, I mean,
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  you could just name one Warren Buffett. He's 94 and he
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  loves what he does and he's still working. So I think people put
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  a lot of pressure on themselves to have XYZ by ABC
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  age. And it just creates all this unnecessary pressure.
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  And I just don't think you need to have the pressure. By the sounds of it, you may
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  get house or inheritance. You may inherit some wealth and
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  you do have some superannuation that will continue to be compounded over the next
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  seven years. And you do have the ability to make money. And
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  it sounds like you're going to, you're probably, you sound very sprightly. You sound very healthy.
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  Well, my grandparents did, so I expect to live till my late
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  I would say if I were you, one, I
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  would remove this retirement. uh,
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  notion out of my vocab. And I would start living
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  the life I wanted to in retirement today. So that might mean, well, I'm going to set
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  up a studio now. I'm going to start recording now. I'm going to continue
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  doing my main job and I'm going to do my side hustle to make money.
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  I'm going to set aside some money as I go. So I'm not spending all of
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  No, no, that's a, that's a one-off, right?
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  Right. So let's take good care of those glasses for the
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  My God, that's a liability. All right. I know. I
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  know. So what I would consider doing is one, remove retirement. Two,
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  set up your life like you're already retired and start to find rhythm where you can work for
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  the next 30 years. That includes doing little mini retirements, like
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  doing little mini trips where you can. Yeah. Does that make sense?
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  So don't wait till 67, start living, live now and
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  include parts of that that are traveling and so forth,
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  Yeah. On my to-do list is to get a Jayco Penguin so
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  Great. Wonderful. I think if you set
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  your life up like that, you'll think, hey, I could actually keep doing
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  this, particularly if you're teaching from home and you've got
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  a home-based business. What's wrong with working until you're 70, 75? As long
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  And I think it'll just help you. It'll give you just way more runway
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  to actually start building the wealth you want to build, including compounding your
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  superannuation beyond 67, including setting aside some cash now,
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  putting some money away and building up
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  Yeah, it does actually. I have on my to-do list,
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  the next thing that I wanted to buy was start investing in
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  the studio equipment. So it's
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  on my to-do list. But I like the language you use
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  to take the word retirement out of it. So
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  Great, excellent. Yeah, you're not going to be. I
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  think all these fears, they're just future pains
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  Yeah, because I do fit the demographic. You know, sole
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  parent, this age, high rent,
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  Well, it's not the be all and end all because I don't know if you've ever been told this, but you can't take your
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  So people spend all their life paying off this mortgage. They get to like age 67, I pay
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  So I'd be able to leave that then. Sure, but it's important that you
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  can still leave them money. It doesn't have to be in property. But
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  also it's important to continue your education. So learning to
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  But even them learning that, oh, mum's able to create
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  a studio and make money from home. How do I do that? So
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  they'll, they'll model the behavior. Um, but there are other ways
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  for them to learn how to build wealth outside property. So I don't think it's the be all
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  and end all. Um, it's, it's, it's generally perceived security
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  that people are seeking and not real security. Real security for me would be, Hey,
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  what if I didn't retire? That's a little bit more secure because you've got cashflow. Right.
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  Um, and I think who knows what's going to happen with your studio? Like where that
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  goes, you wouldn't even know. And so there's ability for you to
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  make money beyond 67, beyond the current job you've got. And
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  I think just do that and watch your money, build
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  it up, learn to invest perhaps in shares or something else outside super
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  and start building wealth outside property. Um, and
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  I think you're the perfect age to do that. And I think that would living
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  your life from 60 to 85 is a better idea than deciding
• 10:12
  Wonderful. Thank you for your time. You're welcome. Thank you for your time. Thanks for calling in and I'll
• 10:17
  See you Caroline. Bye bye. Thanks for listening to
• 10:20
  Money Grows on Trees. If you enjoyed the episode, leave a five-star review
• 10:24
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• 10:27
  us on YouTube so you never miss an episode. And if you're serious about building
• 10:30
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