Latest / The SME Stream / Amanda Morrall Where to put your tax cut

Transcript

Amanda Morrall Where to put your tax cut · The SME Stream

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Speaker 1: Sleeping Johnny Town.
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Speaker 2: She's gonna fload of jogs down for me.
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Speaker 3: For me.
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Speaker 1: I got the old.
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Speaker 4: I gotta get time.
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Speaker 1: I gotta time.
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Speaker 2: That suns two nights. It's well, I'll be, I'll be.
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Speaker 5: Roseie knows he such And welcome back to the show.
0:43
Speaker 5: I'm Tim Beveridge.
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Speaker 4: This is the Weekend Collective. If you've missed any of
0:46
Speaker 4: the previous hours, My hour just gone with Kent John's health,
0:49
Speaker 4: talking about setting goals and getting started. You know when
0:51
Speaker 4: you sort of think I've left, I've let myself go,
0:53
Speaker 4: it's hopeless. What's the best way to get your stuff started?
0:55
Speaker 4: Go and check out our podcast. Looked for the Weekend
0:58
Speaker 4: Collective wherever you get.
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Speaker 5: Your podcast at iHeartRadio. It is a great place to start.
1:02
Speaker 4: But right now it's time for smart money. And my
1:04
Speaker 4: guest is well, she's almost no introduction.
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Speaker 5: It's Amanda Morale. Hello, Amanda, how are.
1:09
Speaker 1: You nice to see you again?
1:11
Speaker 5: It's been a while, Yes it is, And how have
1:13
Speaker 5: you been? You can keep keeping well out of.
1:15
Speaker 4: Mischief, keeping out of trouble, you know, excellent, that's good,
1:18
Speaker 4: that's good.
1:19
Speaker 1: Motivated and fit?
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Speaker 5: Are you? Did you did you have a chat with.
1:24
Speaker 1: No It's always an interesting conversation because I find there's
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Speaker 1: a lot of parallels between that motivation that's required us,
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Speaker 1: whether it's losing way to stay fit. And also, yeah,
1:32
Speaker 1: that'd same motivation translates to managing your finances. But so
1:36
Speaker 1: I always have a dilemma with you know, gym memberships,
1:39
Speaker 1: do you under utilizer? So I'm an example of the
1:41
Speaker 1: person who committed to this pilates thing, and damn straight,
1:45
Speaker 1: I get to the gym three times a week because
1:47
Speaker 1: I have that's what I pay for. So it's highly
1:49
Speaker 1: effective for me because I'm motivated make sure I don't
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Speaker 1: lose that money.
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Speaker 4: Well, the analogy that I was thinking of when I
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Speaker 4: was chatting with Kents a lot of people who think, oh,
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Speaker 4: I've left it too late to save. It's same with fitness,
2:01
Speaker 4: and they so they don't know when to start. And
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Speaker 4: I guess you can probably use an analogy for getting
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Speaker 4: fit in small baby steps with financial fitness, can't you.
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Speaker 4: But I'm doing that whole thing of thinking maybe I
2:12
Speaker 4: just want to have another overseas holiday and live a bit,
2:15
Speaker 4: living for living for now or saving for later. It's
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Speaker 4: the constant balance, isn't it.
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Speaker 1: It's a perpetual kind of question for people, particularly when
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Speaker 1: you get into those middle ages and you know, you
2:25
Speaker 1: see friends starting to get sick or you know, there's
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Speaker 1: no guarantees in life, and so that fragility kind of
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Speaker 1: wakes you up. It does better not sit on this
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Speaker 1: mountain of savings without enjoying it a little bit. So
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Speaker 1: it is. It's absolutely a sort of a fine balance.
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Speaker 4: It's a tricky financial conversation. Actually, I don't mind taking
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Speaker 4: calls on that. By the way, what's your financial approach
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Speaker 4: to life? Is it to enjoy life now or save
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Speaker 4: save up really diligently for to look back on a
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Speaker 4: life that you haven't lived. I said that in a
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Speaker 4: slightly loaded fashion.
2:53
Speaker 5: Hey, by the way, you're you're a yoga instructor or something.
2:57
Speaker 1: Aren't you do lifestyles? Yeah? I had a studio for
3:02
Speaker 1: several years. Yeah, practice yoga. So I try to apply
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Speaker 1: a lot of those yoga kind of the philosophy I
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Speaker 1: think through my approach to holistic personal finance. So that's
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Speaker 1: where I try to find the sweet spot because on
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Speaker 1: one hand, people can like look at money and it's
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Speaker 1: all little bit the money is really boring, But it's
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Speaker 1: never just about the money, It's about something deeper, and
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Speaker 1: I find that if you're able to kind of peel
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Speaker 1: back a few layers and be a little bit more
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Speaker 1: self aware and in tune with what you know your
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Speaker 1: actual goals are, then you may be a little bit
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Speaker 1: more aligned to what it is you're trying to achieve
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Speaker 1: with your money. So there is a nice alignment there.
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Speaker 4: First thing we want to discuss today is so the
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Speaker 4: text cuts have kicked in. I'll be honest, I don't
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Speaker 4: know what my text cut is because I just assume
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Speaker 4: it's like twenty bucks a week, maybe because it's the average.
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Speaker 4: But we're going to dig into that in a moment.
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Speaker 4: But this is a question for you out there.
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Speaker 5: Are you.
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Speaker 4: I know it's excited about a text cut. I like
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Speaker 4: the fact that we've simply adjusted the brackets for inflation,
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Speaker 4: so good on them, But are you How are you
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Speaker 4: using your text cats? What are you going to do
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Speaker 4: with it? Are you going to spend it on something?
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Speaker 4: Do you think it's a waste of time getting a
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Speaker 4: text cut because it's not very much? I did hear
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Speaker 4: someone say, oh, look, what's the point in getting a.
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Speaker 5: Text cut because it's just going to go on the rates.
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Speaker 4: And my answer to that is, isn't it great that
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Speaker 4: you've got a text cut which is going to pay
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Speaker 4: for that increase in your rates? So what's your what's
4:20
Speaker 4: your view on the text cats. I don't want to
4:23
Speaker 4: get too excited.
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Speaker 1: Again, one size does not fit all, So you know,
4:27
Speaker 1: for for you know, maybe twenty bucks is not going
4:30
Speaker 1: to seem all that significant, but maybe for somebody who's
4:33
Speaker 1: really struggling to put food on the table or put
4:35
Speaker 1: petrol in their car to get to their job, they
4:37
Speaker 1: might actually say, hey, this is going to be helpful.
4:40
Speaker 1: So it depends entirely on your on your personal circumstances,
4:44
Speaker 1: but it's an opportunity. And I would say one way
4:46
Speaker 1: or another, right, you know, eighty dollars a month, if
4:48
Speaker 1: that's what it ends up being, that's not nothing.
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Speaker 4: So you know, I think the thing is people think
4:53
Speaker 4: that they're going it's the way you process it.
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Speaker 5: Because if if you imagine.
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Speaker 4: A text caut like all more money and I'm going
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Speaker 4: to have some fun spending money, That's not really what
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Speaker 4: these tax cuts are about, are they They're just sort
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Speaker 4: of adjusting the brackets and you're not really going to
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Speaker 4: notice it, except that might make you more able to
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Speaker 4: pay for an essential that you might have stressed over.
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Speaker 1: Possibly well, I think that's why they were part a CENEC.
5:20
Speaker 1: May say it was an election Brian, but you know,
5:22
Speaker 1: at the same time, I think everybody will acknowledge we're
5:25
Speaker 1: in a cost of living crisis and things. You've seen
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Speaker 1: a lot of cost creep and food and you know,
5:31
Speaker 1: rental increases everything. So I'm sure if you're struggling, there's
5:36
Speaker 1: going to be a place that you will find a
5:37
Speaker 1: good application for in a wise use for this money.
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Speaker 1: If you're not mindful about your finances, you probably won't
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Speaker 1: even feel or see the difference because you're simply not
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Speaker 1: paying attention. I haven't bothered to push my kids to
5:50
Speaker 1: try kids they're in their twenties, but their students and
5:53
Speaker 1: they both work to see if this is gonna the
5:56
Speaker 1: twenty bucks a week will apply to them if they do.
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Speaker 1: Trust me, they'll get very excited. But they'll get excited
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Speaker 1: for the wrong reason. Is I think they'll equate that
6:04
Speaker 1: to a box of bear, which is a little bit
6:06
Speaker 1: less than a box of bear. But that's exactly how
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Speaker 1: it'll translate for them. Because they're twenty year old in
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Speaker 1: the prosy stents. So in one, you know, out the
6:15
Speaker 1: other door sadly, but you know, if they were thinking
6:18
Speaker 1: about their goals one wants to travel next to it,
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Speaker 1: they were absolutely banking that money and not spending it.
6:24
Speaker 1: But it comes down to gain that awareness of the
6:26
Speaker 1: money and be the discipline, like you just like the exercise,
6:30
Speaker 1: the discipline to actually tuck it away somewhere where you're
6:33
Speaker 1: not going to read that.
6:35
Speaker 4: Here's the question that just occurred to me as we
6:37
Speaker 4: were talking about this what to do with their tax
6:39
Speaker 4: cuts is and it's to do with how we spend money,
6:45
Speaker 4: and because we do it electronically in the days where
6:48
Speaker 4: you would have.
6:49
Speaker 5: Oh, gosh, i'm writing out of check. Goodness may but
6:53
Speaker 5: how rich I was there?
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Speaker 4: But anyway, but in the days of cash and checks,
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Speaker 4: I think we were much more aware of the money
7:01
Speaker 4: we had to spend because often people would and people
7:05
Speaker 4: were managing a household, they would withdraw a certain amount
7:09
Speaker 4: amount because they know, this is what I've got to
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Speaker 4: make ends meet, this is what I've got to spend
7:16
Speaker 4: on groceries this week, and they take it out in cash,
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Speaker 4: Whereas I wonder how many people really are aware of
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Speaker 4: what they're spending because all they do is they go,
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Speaker 4: I mean you do it with your phone now.
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Speaker 5: You just wake your phone up and blink, its paid for.
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Speaker 4: And you only notice it when it's a month later
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Speaker 4: and you get a statement and you realize you've blown
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Speaker 4: your budget by five hundred bucks or one thousand or something,
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Speaker 4: and you go, oh, hell, I mean.
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Speaker 1: I know, you're absolutely right. I remember at the back
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Speaker 1: of the checkbook it used to have a little balancing part.
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Speaker 1: You balanced your checkbook right, so you would and you
7:53
Speaker 1: would write thats and you'd be conscious of it. But
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Speaker 1: you know, as useful as you know digital ups are
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Speaker 1: these days, it's it's all too easy to touch pay
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Speaker 1: you forget unless you're logging in like there's there's not
8:08
Speaker 1: many people, I would say, who are checking there, you know,
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Speaker 1: on a daily basis, a weekly or even month, probably
8:14
Speaker 1: a monthly if you're paying a mortgage and looking and
8:16
Speaker 1: drilling at the counts to see that ends in the outflow.
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Speaker 1: It's not many people have that discipline. And then when
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Speaker 1: they do get around to it, and they add up
8:23
Speaker 1: all the things that they've frittered away on the starter
8:26
Speaker 1: boxes a beer in the case of my cat, that's
8:28
Speaker 1: you know it's a bit of a shock for them.
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Speaker 4: Actually, So I'm going to add an extra supplementary question
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Speaker 4: mister speaking of this, is how are you tracking your spending?
8:36
Speaker 4: Because when it comes to a tax cuts, are you
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Speaker 4: someone who tracks it well enough that you will notice?
8:42
Speaker 5: Give us a call.
8:43
Speaker 4: Onighten eighty because you know. The funny thing is about checks,
8:46
Speaker 4: which I just mentioned. I can still remember the exact
8:50
Speaker 4: amount of the check that I used to write for
8:52
Speaker 4: my rent every month or term or whatever. In fact,
8:56
Speaker 4: I'm not going to say how much it was because
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Speaker 4: it wasn't very much money because it was a while ago,
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Speaker 4: and people will go, isn't that lucky, because.
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Speaker 1: Yeah, I'd love to know what well, whatever it was.
9:04
Speaker 5: It could have been for a month or two.
9:06
Speaker 4: But the amount was four hundred and thirty three dollars
9:08
Speaker 4: and twenty seven cents.
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Speaker 1: What year are we talking about, I'm telling you I'm interested.
9:13
Speaker 4: To know whether it's a few decades ago.
9:17
Speaker 1: So you remember it though, right?
9:19
Speaker 4: And our re used to go up twenty percent every year,
9:21
Speaker 4: twenty percent, that's step.
9:23
Speaker 5: It went up twenty percent one year.
9:24
Speaker 4: Then the next year it went up because it went
9:26
Speaker 4: up five dollars a week and it was originally twenty
9:28
Speaker 4: bucks a week.
9:30
Speaker 5: This isn't it?
9:32
Speaker 4: My producers look at me, going gosh, I spend that
9:34
Speaker 4: in my mortgage every three minutes. I was a student
9:38
Speaker 4: in a five person flat where the ceiling once caved
9:41
Speaker 4: in because it was so revolting and moldy and disgusting.
9:44
Speaker 4: And but yes, they put it up from twenty to
9:47
Speaker 4: twenty five to thirty to thirty five each year. When
9:49
Speaker 4: you consider as a percentage, it was outrageous. But I
9:53
Speaker 4: think simply it was anyway, there we go.
9:56
Speaker 5: What was the question you said?
9:57
Speaker 1: Sorry, well you asked a question our listeners about how
10:01
Speaker 1: people are do they keep track? Will they even notice
10:04
Speaker 1: this as there? You know, what's their personal finance approach
10:07
Speaker 1: to tracking finance?
10:09
Speaker 5: And will you notice the text? Cut?
10:11
Speaker 3: Yeah?
10:11
Speaker 5: What are you doing with it?
10:13
Speaker 4: Okay, well look we might take it. Let's actually let's
10:15
Speaker 4: take a call nowt because Craig's called, and get a
10:17
Speaker 4: craig a gun.
10:19
Speaker 6: Good afternoon, how's it going?
10:20
Speaker 5: Thank you? Good?
10:22
Speaker 6: And yeah, I found it quite weird when I first
10:24
Speaker 6: left home and well sorry, when I left school and
10:26
Speaker 6: got my first job, I was inning working at a
10:29
Speaker 6: sound coming inning about nine hundred bucks a week in
10:31
Speaker 6: the early nineties living at home and paying.
10:34
Speaker 1: No board, good old days.
10:37
Speaker 6: Eh yeah, yeah, it's like, oh, I was spending money
10:41
Speaker 6: like an idiot, really, but I saved a bit now.
10:43
Speaker 6: But what I find nowadays is with my phone, how
10:46
Speaker 6: you can pay by pay payWave and all your phone
10:49
Speaker 6: in it. I have that set up on an account
10:52
Speaker 6: that has no facility for an overdraft on it, and
10:55
Speaker 6: I can't get so I can't go into negative. Once
10:57
Speaker 6: it gets the zero, that's it. And I trent to
11:00
Speaker 6: seeing amount of money from my main account into that
11:02
Speaker 6: count every week. So when I get around and pay stuff,
11:05
Speaker 6: it's like you sometimes forget how much you're paid, but
11:08
Speaker 6: you know that at the end of the week you
11:10
Speaker 6: can only spend two hundred dollars on that account. Then
11:12
Speaker 6: it goes and then it stops working.
11:14
Speaker 1: So it's like a spend control that you've Yeah, that's
11:17
Speaker 1: what I do.
11:17
Speaker 6: So I to put money into the account, and then
11:19
Speaker 6: I know that you're going to speaking of stuff around
11:21
Speaker 6: you try and keep a track of it. You know
11:22
Speaker 6: that you get a little bit carried away. I've spend
11:24
Speaker 6: too much. There is a limit that you're going to
11:26
Speaker 6: only be able to spin and then'le to stop. So
11:28
Speaker 6: that's by the way, I sort of use it to say, well,
11:31
Speaker 6: to keep track of my money anyway.
11:32
Speaker 1: Yeah, you're protecting you're protecting yourself from yourself. I tried
11:36
Speaker 1: that trick recently with my two degrees up when we
11:38
Speaker 1: went on a trip. Man make kids with me on
11:40
Speaker 1: the roaming and so they can't. You if you set
11:43
Speaker 1: your spend control limit on these apps to zero, then
11:46
Speaker 1: you can't get any of the roaming charges that just
11:48
Speaker 1: get no access. So it's that's a great idea to
11:51
Speaker 1: just sort of limit yourself from getting into too much.
11:54
Speaker 4: Did you actually keep a track of every transaction, Craig,
11:57
Speaker 4: or did you just sign it? You just have a
12:00
Speaker 4: that would bounce and you'll be like, oh.
12:02
Speaker 7: Oops, yeah, yeah to bounce and you go okay, but
12:04
Speaker 7: then you just put out your other credit card pay
12:06
Speaker 7: from that anyway, but you need you then you know
12:11
Speaker 7: you reach your limit.
12:13
Speaker 5: Okay.
12:13
Speaker 4: So it wasn't It wasn't the end of life as
12:16
Speaker 4: we know it when you bounce. It just got to
12:18
Speaker 4: the stage where.
12:20
Speaker 6: Yeah, other runch was if if someone wants to steal
12:22
Speaker 6: your wallet with your payWave card in there, then you
12:26
Speaker 6: know that the maximum is going to be able to
12:27
Speaker 6: get out of there. Is that rather than not going
12:28
Speaker 6: to get out to get too carried away. But yeah,
12:32
Speaker 6: I just use it, but every Friday night, I don't
12:36
Speaker 6: normally sit down with fish and chips or a burger
12:38
Speaker 6: or whatever, which is probably unhealthy. And put it into
12:40
Speaker 6: your previous guests and just go through my records and
12:43
Speaker 6: go oh, yep, yep, I paid that much. Yep, that's right,
12:46
Speaker 6: and it's just he need to go through it. Just
12:48
Speaker 6: put into spreadsheet over the weekend in this case, so
12:50
Speaker 6: you never look at it sometimes and go oh, speaking
12:52
Speaker 6: way too much at the takeaway place. A bit to
12:55
Speaker 6: cut that down.
12:55
Speaker 4: So yeah, because there are some some of the banks,
12:58
Speaker 4: I think actually the we've got a credit card with Westpac,
13:01
Speaker 4: and I think that there is something where they can
13:03
Speaker 4: it will show how much you're spending on different types
13:06
Speaker 4: of spends.
13:07
Speaker 1: Yeah, it's got cash cash now, that's.
13:09
Speaker 5: Right, And it was you know what, I just stopped
13:11
Speaker 5: looking at it.
13:12
Speaker 1: Yeah, that's a good thing. But I've got a question
13:14
Speaker 1: for a coloda. So you obviously got a little bit
13:17
Speaker 1: more disciplined Craig. But because you're aware of your spending
13:21
Speaker 1: and you're checking it so where would you say that habit?
13:25
Speaker 1: Is that something that you know you're kind of self
13:27
Speaker 1: tired or did you get some parental guidance on being
13:30
Speaker 1: you know, aware of human.
13:33
Speaker 6: I was just looking at my account one day when
13:35
Speaker 6: I was probably twenty five twenty seven and had about
13:41
Speaker 6: thirty green in my account and gain, hmmm, where can
13:44
Speaker 6: I use this more wisely rather than because all my
13:46
Speaker 6: friends are go out and get bears and white cars
13:49
Speaker 6: and spend money on the cars doing that and then
13:51
Speaker 6: sell it for a lesson they pay for the car, And
13:54
Speaker 6: I'm looking at that game, well, I probably need to
13:56
Speaker 6: save it from a future that was before the key
13:58
Speaker 6: we say they kicked in. But then I was looking
14:00
Speaker 6: on the big scheme of things that when you do
14:02
Speaker 6: get paid, you're SUPER from the government. You pay text
14:05
Speaker 6: through your entire life, you get Super and when you
14:07
Speaker 6: get your Super, they text you're on a Super, so
14:09
Speaker 6: you're kind of getting text twice. And I was looking
14:12
Speaker 6: at it going, well, yeah, I probably need to look
14:15
Speaker 6: after myself really, because it doesn't it's a little worried
14:18
Speaker 6: more along the lines it down the track. I don't
14:20
Speaker 6: believe the government's already going to look after me too.
14:22
Speaker 4: Well, well, I think that's the motivator for a lot
14:24
Speaker 4: of people in their savings. Yeah, and we've been given
14:27
Speaker 4: that message anyway, that super is fine, that it's not
14:30
Speaker 4: going to be enough.
14:31
Speaker 1: Well, that's interesting. So the age of enlightenment for you
14:34
Speaker 1: was around twenty seven where you started to pay that's
14:36
Speaker 1: pretty good, that's pretty that's quite young earlier.
14:39
Speaker 6: Yeah, And one of my friends went over to work
14:43
Speaker 6: for Dubo for a couple of about five to a
14:45
Speaker 6: few years, came back to Auckland and was looking at
14:48
Speaker 6: buying a house. Random and when he was about thirty
14:50
Speaker 6: thirty two and bought a house and then the real
14:53
Speaker 6: estate people are like, what company you're going to be
14:55
Speaker 6: used for your mortgage? And he goes on paying cash
14:58
Speaker 6: and they couldn't believe the head too sales of all
15:00
Speaker 6: of save Yeah.
15:01
Speaker 5: Wow, wow, good stuff. Thanks Craig. By the way, Craig, sorry,
15:06
Speaker 5: are you a tax cut? Does it make a difference?
15:09
Speaker 5: Where's yours going on?
15:11
Speaker 6: And I think I've talked to you before. I'm on
15:13
Speaker 6: the one that's got the vision problem At the moment,
15:14
Speaker 6: someone's sickness benefits really make any difference from me at all?
15:19
Speaker 5: Oh okay, So you're not.
15:20
Speaker 4: You're getting your in the sort of two dollars fifty
15:22
Speaker 4: week basket sort of thing.
15:23
Speaker 6: Are you something like that? But I think I'm worried
15:26
Speaker 6: about it's down the trick of things get really pear shaped.
15:29
Speaker 6: Will it be that I won't get Super until I
15:32
Speaker 6: get through my keys favor or something?
15:33
Speaker 2: I don't know?
15:34
Speaker 4: Yeah, look, I mean, don't rule it out, I guess,
15:39
Speaker 4: but I think you're right to be cautious about it
15:40
Speaker 4: because it gives you a more prudent approach to you.
15:43
Speaker 1: Most financial advisors will tell you just treat Super as
15:47
Speaker 1: sort of a bonus, but count on your other private
15:50
Speaker 1: savings a saver. Anything else out of that is a
15:53
Speaker 1: sure thing that you know you can rely on.
15:55
Speaker 4: But by the way, am I talking about that? The
15:59
Speaker 4: flat I lived in Dunedin all those years ago as
16:01
Speaker 4: turned into a game of I don't know if you
16:03
Speaker 4: know the mighty python skitch luxury. It's like we used
16:06
Speaker 4: to live in pepper bag and septic tunk. You know,
16:08
Speaker 4: when they're four Yorkshiremen try and outdo themselves. And somebody said,
16:12
Speaker 4: somebody's texted me saying, I almost feel like I need
16:14
Speaker 4: to put a Yorkshire accent on there saying I lived
16:16
Speaker 4: in a file person flat Uni where the toilet would
16:19
Speaker 4: drain and shower every few weeks.
16:21
Speaker 5: I paid three hundred and twenty dollars a week.
16:24
Speaker 1: Oh my goodness.
16:25
Speaker 5: Yeah, that's flash, isn't it.
16:27
Speaker 4: We had an outside toilet in the middle of Dunedin
16:29
Speaker 4: and winter. You had to go outside. You had to
16:32
Speaker 4: get out of bed, go out the back door, walk
16:34
Speaker 4: around to the outside toilet in zero degrees to go
16:38
Speaker 4: to the loo in the middle of the night. That's
16:40
Speaker 4: why it's pain next tonight.
16:44
Speaker 1: I'm not sure it's changed so much to judging from
16:47
Speaker 1: the stories I hear from my son, who's freezing as
16:49
Speaker 1: our soft down there still.
16:51
Speaker 4: Actually the funny thing is about finding a flat. Back
16:53
Speaker 4: in those days, it was never about let's go and
16:55
Speaker 4: look at this flat or this flat.
16:57
Speaker 5: It's like, has someone.
16:57
Speaker 4: Got a room you're in? Just take whatever room it is,
17:01
Speaker 4: and if it happens to be a sort of a
17:03
Speaker 4: medieval dungeon, then that's just the like of the drawer.
17:07
Speaker 1: So pray a badge of honor, I think down there.
17:09
Speaker 4: Anyway to drag the conversation back to where we're at,
17:12
Speaker 4: we're going to take a break, but the tax braks.
17:14
Speaker 5: Where are you spending yours? Will you notice yours? And
17:17
Speaker 5: actually if you won't notice it, why is that?
17:19
Speaker 4: Is that your fault because you're just handing over the
17:22
Speaker 4: plastic every time you spend your money? Or is it
17:24
Speaker 4: because of some other reason?
17:26
Speaker 5: Give us a call. Eight one hundred and eighty ten eighty.
17:29
Speaker 4: It's twenty four past five news talk, sa'd.
17:31
Speaker 5: Be let's see welcome back to the week and collected.
17:54
Speaker 5: There's a smart money. My name is Tim Beverage. My
17:56
Speaker 5: guest is a man of morale.
17:57
Speaker 4: She's a financial author, commentator and guru.
18:01
Speaker 5: Can I call you a guru? I think I can.
18:03
Speaker 4: It's a big call, isn't it. You probably don't like
18:05
Speaker 4: words like it, but it ties on with the yoga thing.
18:07
Speaker 1: Well, I'll take it like that. I'm flattered, so you
18:10
Speaker 1: know I'm not going to say no. But before I forget,
18:12
Speaker 1: can I just add that there is a great for
18:16
Speaker 1: those who are curious this about how much they're going
18:19
Speaker 1: to get on the text the text cut savings. There
18:23
Speaker 1: was a very good piece in the Herald not too
18:26
Speaker 1: long ago July thirty first, by Jamie Lithe. But I've
18:29
Speaker 1: also posted that on my Facebook page, Manda Morrele. Yeah,
18:32
Speaker 1: so somebody can if you're curious to see, just jump online.
18:35
Speaker 5: What's it about it?
18:37
Speaker 1: Just they've got it basically breaks down all the thresholds
18:40
Speaker 1: how the personal income tax thresholds are changing to get
18:43
Speaker 1: you this twenty bucks a week on average. But it
18:45
Speaker 1: has a little nifty calculator where you can go in
18:48
Speaker 1: and enter your weekly income and I'll spit out what
18:50
Speaker 1: your approximate savings. So that might be helpful for those
18:52
Speaker 1: of you are wondering, and you know, then you can
18:55
Speaker 1: take note of it now that you're listening to this
18:57
Speaker 1: conversation and have some serious thought about, Okay, what am
19:00
Speaker 1: I going to do with eighty bucks a month?
19:01
Speaker 4: Amanda Morale dot com. That's Amanda. By the way, I've
19:04
Speaker 4: mentioned your name so often, I don't think I've stopped
19:06
Speaker 4: to spell it. I'm sure if people googled you and
19:08
Speaker 4: misspelled it would still find you. But it's Amanda as
19:11
Speaker 4: you'd spell Amanda M double R A double L dot com.
19:15
Speaker 1: Thank you for that shout out, yes, so that that
19:18
Speaker 1: I'll put that up on my blog, but again, so
19:19
Speaker 1: on my Facebook page or if you google it or
19:21
Speaker 1: go to the Inline Revenue I'm sure they'll be able
19:24
Speaker 1: to find their way to the calculator that will give
19:26
Speaker 1: the approximate savings. So yeah, just that I mentioned that
19:29
Speaker 1: before people forget and move on to next week's.
19:33
Speaker 4: And the question we asked before the break was how
19:34
Speaker 4: are you spending your tax cut? But actually would you
19:36
Speaker 4: notice from the way you manage your money, because if
19:39
Speaker 4: you're just handing out a plastic every day, you know, bing,
19:41
Speaker 4: or you're basically waking up your phone and doing the payWave,
19:45
Speaker 4: do you actually keep track of your spending so you
19:47
Speaker 4: actually do notice the difference from that tax cut? O
19:50
Speaker 4: eight one hundred eighty ten eighty right, Peter, Hello Peter,
19:55
Speaker 4: Hello Peter, Yeah, yep.
19:58
Speaker 3: Sorry, the money in the bank and you know you
20:04
Speaker 3: have your saylum a mortgage free. Basically just wanting in
20:09
Speaker 3: the moment and thoughts on how you can't give specific advice.
20:14
Speaker 4: You've listened to the cyberfore paiter, obviously good on you
20:17
Speaker 4: what to do with it?
20:18
Speaker 5: You've got a bit of extra cash.
20:19
Speaker 7: Basically, yeah, I was thinking maybe I don't think Hewson
20:25
Speaker 7: was worth investing.
20:26
Speaker 3: In the moment, I was wondering what thoughts are just
20:29
Speaker 3: putting away and say, am zer or something or whet
20:31
Speaker 3: PAP or something.
20:33
Speaker 4: In terms of what sort of bank, what sort of
20:35
Speaker 4: institutional investment can you make?
20:37
Speaker 3: M do you not? Yep?
20:40
Speaker 1: Oh, so I was just going to ask you if
20:41
Speaker 1: you had any dependence at all.
20:45
Speaker 3: I'm marry, but my back my kids are over twenty,
20:48
Speaker 3: but you know, are still dependent.
20:50
Speaker 1: Okay, well when sorry, this may not apply to you,
20:53
Speaker 1: but I guess maybe for any parent who you know
20:55
Speaker 1: finds that that that this is sort of additional money
20:59
Speaker 1: for them, and you know, they've got a kid over
21:00
Speaker 1: eighteen who's in kvsavers, not contributing that twenty dollars a
21:04
Speaker 1: week would ensure is an example that they qualify for
21:08
Speaker 1: the government contribution annually and that'll get them if they,
21:13
Speaker 1: you know, get to one thy forty three, which is
21:15
Speaker 1: roughly twenty bucks a week, that'll get them another five
21:18
Speaker 1: hundred and twenty one bucks. So that's a good, in
21:20
Speaker 1: my mind, a good use of your money. If you've
21:22
Speaker 1: got discretionary income in terms of specific products, can't recommend that,
21:29
Speaker 1: but you know you could equally do the same to
21:31
Speaker 1: your kV saver or if you've most kV savers have
21:35
Speaker 1: parallel products now as well. They're just not locked in.
21:38
Speaker 1: So it's a separate investment fund that you could set
21:41
Speaker 1: up as well.
21:42
Speaker 4: How long have you had the money sort of sitting
21:44
Speaker 4: there with you going what do I do with it?
21:46
Speaker 3: It's a week?
21:47
Speaker 5: Oh only awake?
21:48
Speaker 4: Okay, okay, okay, did you get the numbers FI lotto
21:52
Speaker 4: or something?
21:57
Speaker 5: Okay?
21:57
Speaker 4: Well, actually that's a common I mean most people have
22:00
Speaker 4: that with a distaste from my parents, that would pretty
22:03
Speaker 4: much stradd on the mortgage apart from a trip to parents.
22:05
Speaker 1: Yeah, a lot of people will be well, I'm sure
22:08
Speaker 1: if you ask that question at your bank, will Lickordy
22:11
Speaker 1: split enroll you in one of your own products. So
22:13
Speaker 1: take your time with with researching some of the choices
22:17
Speaker 1: out there, and there are a lot of choices, just
22:18
Speaker 1: being able to where what you're paying for.
22:21
Speaker 3: Just one more question, what's what's the banks guard? Balls up?
22:28
Speaker 3: What's the what's the government guarantee? How much is that?
22:31
Speaker 5: Are you are you? Are you there?
22:33
Speaker 4: So you've come in some money and you're actually nervous
22:35
Speaker 4: of just putting it into the bank, even because.
22:39
Speaker 3: You know there's a bank run what's the government guarantee?
22:43
Speaker 3: Do you know?
22:44
Speaker 1: Yeah? I think it used to be on a particular product,
22:47
Speaker 1: like a t D up to one hundred and fifty thousand.
22:50
Speaker 1: But I don't don't hold your breath on that one.
22:53
Speaker 1: But I went with most banks. If you're really concerned
22:56
Speaker 1: about this, check the credit rating of the particular bank,
22:59
Speaker 1: and the credit rating of those institutions is supposed to
23:02
Speaker 1: be indicative of their financial strength, that is, their ability
23:05
Speaker 1: to withstand a big you know pressure, yeah, pressure point.
23:09
Speaker 1: So that's something you make.
23:10
Speaker 4: Is that in the vacuum. Look, I can understand that
23:12
Speaker 4: if that if you count.
23:13
Speaker 3: The money, I think minus or something. All right, Well.
23:20
Speaker 1: Right, yeah, Standards and Porter took a bit of criticism
23:23
Speaker 1: for over the GFC that they had rated some of
23:25
Speaker 1: these institutions. But but in any event, it sounds like
23:28
Speaker 1: you want to take a conservative approach. So the TD
23:32
Speaker 1: rates right now, if you're that conservative you want depends
23:36
Speaker 1: your on your a, your goals, and when you need
23:38
Speaker 1: access to that cash. So if it's something that you
23:40
Speaker 1: just want to lock up and leave for you know,
23:43
Speaker 1: ten or fifteen years, you might be looking to go
23:45
Speaker 1: a little bit more.
23:46
Speaker 4: Actually, Peter, Peter, I can actually refer this is not
23:49
Speaker 4: specific financial advice, but we have discussed the once on
23:53
Speaker 4: one of the hours we did with the Harbor Asset
23:55
Speaker 4: Management people, there is quote the probably on a podcast
23:58
Speaker 4: A couple of appearances go from them where they're discussing
24:01
Speaker 4: the bond they're discussing the bond markets. But as part
24:03
Speaker 4: of that conversation, it is it is an hour we
24:07
Speaker 4: spent when we're talking about putting your money in something
24:11
Speaker 4: that's not so high maintenance and risky and just where
24:13
Speaker 4: the bond market's right. So it's not not advice from me,
24:16
Speaker 4: but it's a useful hour to listen to on the podcast.
24:21
Speaker 1: Thanks for your car, Yeah yeah, but.
24:23
Speaker 4: I mean you can't really give any reckons on this stuff,
24:26
Speaker 4: can you? But it's it does. The other thing it
24:29
Speaker 4: reminds me of, though, is to check those credit ratings out.
24:32
Speaker 5: I think interest dot.
24:33
Speaker 4: Cod in z is one website you can check out
24:35
Speaker 4: for credit.
24:35
Speaker 1: Right Interest and if Peter's still listening, is an excellent
24:38
Speaker 1: resource because it will give you the comparative rates for
24:42
Speaker 1: you know, over fifty thousand, under ten over, you know,
24:45
Speaker 1: by all the different institutions in plus that will review
24:48
Speaker 1: all their credit ratings, so it gives you all those
24:50
Speaker 1: options in comparisons. The other one that people are less
24:55
Speaker 1: likely to go to is Smart Investor, which is run
24:58
Speaker 1: by Sorted and it does it really excellent comparison of
25:01
Speaker 1: all the different financial outfits out there by product, and
25:05
Speaker 1: now you can look at their historical returns. So those
25:08
Speaker 1: are some considerations you'd want to look at what would
25:10
Speaker 1: have been their historical returns, look at your time frame
25:13
Speaker 1: for investing that that money, and also what you're paying
25:17
Speaker 1: that institute to invest the money for you, and that
25:19
Speaker 1: adds up as well. So be mindful of the fees
25:23
Speaker 1: you're paying, whether it's a financial advisor, how they're paid,
25:26
Speaker 1: or if you're investing it yourself, what you're going to
25:29
Speaker 1: be paying on it, in your tax rate, et cetera,
25:31
Speaker 1: whether it's in a pie, all those kind of compositions. Yeah,
25:35
Speaker 1: to reduce your tax rate. I'm not sure Peter's still working,
25:37
Speaker 1: but you know that's a more tax efficient vehicle anyhow, Peter,
25:41
Speaker 1: there's heaps of information between Sorted interest Dot called Google.
25:45
Speaker 5: You'll find some answers.
25:47
Speaker 4: As you were talking to Amanda and you probably were noticing,
25:50
Speaker 4: I had a slight smile on my faces because you're
25:52
Speaker 4: with your Canadian accent. When you said you can get
25:54
Speaker 4: information on interest dot co. And when you said sorted,
25:58
Speaker 4: I thought you said you can find some good information
26:01
Speaker 4: on Sorted.
26:03
Speaker 1: So apologized to the good people at Sorted. I realized
26:07
Speaker 1: what you've said, but my enunciation that it was just it.
26:12
Speaker 4: Was just my brain works on one hundred miles an hour,
26:14
Speaker 4: And for for about two seconds, I thought, what is
26:17
Speaker 4: sorted as a website?
26:18
Speaker 5: Is that some new money?
26:19
Speaker 4: Because money is so filth, Because money is so filthy,
26:23
Speaker 4: it would be a good name for a money the website,
26:25
Speaker 4: wouldn't it be Filthy Luca dot com or something.
26:28
Speaker 1: That's the name of a very good book.
26:29
Speaker 5: By the way, Filthy Luca excellent. Sorry, I just digressed
26:34
Speaker 5: with the t Sorted.
26:36
Speaker 1: Dot said, by excellent resources, you can do a personalized
26:41
Speaker 1: retirement planner which gives you some protections, and you can
26:43
Speaker 1: throw in inflation and to tell you but you can
26:47
Speaker 1: di y most of these things. So people should take
26:49
Speaker 1: advantage of these these resources.
26:51
Speaker 4: I haven't seen Sorted advertising advertised as much like it
26:54
Speaker 4: used to be a time you'd see advertised advertisements. Gosh,
26:58
Speaker 4: I can't even speak properly all the time for it.
27:01
Speaker 1: But I agree they kind of sort of fell off
27:03
Speaker 1: the reader a little bit. They well, because they've got
27:06
Speaker 1: the Retirement Commission and it's got a long terro and
27:09
Speaker 1: in which I can't recall at the moment. And then
27:10
Speaker 1: there's the FM who's kind of stepped into that space
27:13
Speaker 1: of providing financial education. So there's a few competing players
27:17
Speaker 1: in there, which maybe is sort of turned down the
27:20
Speaker 1: volume on sorted, but it is still there and has
27:22
Speaker 1: many many great tools and guides for people.
27:26
Speaker 5: Another one here, just before we go to the break.
27:28
Speaker 4: Best app I think I've found getting an overview of
27:31
Speaker 4: personal finance, finance habits and come spending and investments, et cetera,
27:35
Speaker 4: was called pocket money dot Com.
27:37
Speaker 5: I believe this person sort of.
27:39
Speaker 4: Halpened half on this text, but then says, absolutely brilliant.
27:42
Speaker 4: App puts the likes of the B and z ones
27:44
Speaker 4: to shame, automatically categorize as you're spending into various categories
27:47
Speaker 4: and set up alerts on each category. Yeah, okay, he may.
27:52
Speaker 1: Or she may be come using that with pocketsmith too,
27:54
Speaker 1: because Pocketsmith has been in that space for some time
27:57
Speaker 1: as well, and they provide a free product and they
27:59
Speaker 1: also a premium product, and it basically as he's or
28:03
Speaker 1: she is saying is categorized as you're spending, and that's
28:06
Speaker 1: a very reputable app that's been in the market for
28:09
Speaker 1: some time.
28:10
Speaker 4: Okay, well, just while we're on that, I would have
28:12
Speaker 4: an inherent suspicion of anything that is not an app
28:15
Speaker 4: that belongs to the bank come with, because you surely
28:18
Speaker 4: would have to give permission for this particular app too.
28:22
Speaker 5: You do too, and I don't. That makes me nervous.
28:26
Speaker 1: Well, that's the direction we're moving with up banking, where
28:29
Speaker 1: they'll be if by permission you'll be able to kind
28:31
Speaker 1: of import this and export that and centralize. I think
28:34
Speaker 1: it'll actually be quite a powerful.
28:37
Speaker 5: As long as that's not owned by CrowdStrike.
28:39
Speaker 1: No, no, every I obviously do your research first, and
28:43
Speaker 1: you know, but yeah, I get that people are being
28:46
Speaker 1: probably more readily trust their bank, even though they should
28:49
Speaker 1: be skeptical many bank. But I get it. You have
28:53
Speaker 1: to be careful these days, very careful.
28:55
Speaker 4: Yeah, okay, right, we'll be back in just a moment.
28:58
Speaker 4: It's so twenty two minutes to six news talk said b.
29:05
Speaker 8: God news, I got pee so long, gonna work, don't
29:10
Speaker 8: work every day, I got mouth, I got pee so long.
29:17
Speaker 8: Gonna make sure everybody. I got Bill Polly's built partner,
29:22
Speaker 8: my dastday looking like a mouth.
29:25
Speaker 5: Only little kids run around. I can hear the stomach's crowd.
29:29
Speaker 8: There's a full moon out to my girl's your house says.
29:33
Speaker 4: You gonna leave me and fall come home with news talk,
29:36
Speaker 4: said b. This is the weekend collective Smart Money. My
29:38
Speaker 4: guest is Amanda Morale, a financial commentator and writer and guru.
29:44
Speaker 4: As I like to say, I've got quite a few
29:46
Speaker 4: texts here. But actually before we get onto the Amanda,
29:48
Speaker 4: there was an interesting question that came up while we
29:50
Speaker 4: were chatting just now and our film caller Craig asked
29:54
Speaker 4: about the safety of banks, and it does time to
29:57
Speaker 4: the question where people should be interested in this.
30:01
Speaker 5: How safe is your ki we saber providers.
30:06
Speaker 4: Are there times when you should stop and tech stock
30:08
Speaker 4: and think how are they doing and all that? But
30:09
Speaker 4: how safe is the money and key we saber?
30:11
Speaker 1: Well, most people well I don't know if they do
30:16
Speaker 1: know or not, but in any event, it's one of
30:17
Speaker 1: the most highly regulated products in the market because the
30:21
Speaker 1: government helped to introduce this. So you don't the fund
30:25
Speaker 1: manager doesn't own your money per se. They're all governed
30:28
Speaker 1: by a supervisor who so that who has custody of
30:32
Speaker 1: your money. So they are in terms of financial products
30:34
Speaker 1: out there, they're among the safest you're going to find. So,
30:39
Speaker 1: but you know, it's interesting. You had this perception that
30:43
Speaker 1: you know, the bank is best kind.
30:45
Speaker 5: Of thing, and in my mind, I do I think that, Yeah.
30:48
Speaker 1: I think as you have a relationship with the bank,
30:51
Speaker 1: and again there's this a bank's too big to fail
30:53
Speaker 1: kind of perception. I mean, there's there's been a tie
30:55
Speaker 1: turn against banks more recently. But it's easy. It's an
31:00
Speaker 1: easy choice when you already have a pre existing relationship
31:03
Speaker 1: with your bank, and they they exploit that. They capitalized
31:07
Speaker 1: that for sure. I and my blog this past week
31:11
Speaker 1: wrote about how my son ended up accidentally switching his
31:14
Speaker 1: key receiver provider to the bank because he happened to
31:17
Speaker 1: be there discussing accident. Yeah, yeah, I like, how does
31:21
Speaker 1: that happen? But he wasn't paying attention. I don't think,
31:23
Speaker 1: but I want to switch just sign The conversation was
31:28
Speaker 1: raised and he was getting I don't know, a new
31:32
Speaker 1: debit credit card thing, and before he knew it, he
31:36
Speaker 1: said he didn't want to miss a ferry and he
31:37
Speaker 1: said he signed something and he'd switched. So I was
31:40
Speaker 1: a bit shocked and horrified because you know, I'm like,
31:43
Speaker 1: what happened there? But ostensibly he said, well, I the
31:48
Speaker 1: guy asked me what my balance was and would I
31:51
Speaker 1: like to see it in one place? And I get
31:52
Speaker 1: that that's convenient. You were saying you got to give permissions, right,
31:55
Speaker 1: so currently one of the biggest Well it's a downside
31:58
Speaker 1: to say to being with keeps everybody that's not your bank,
32:01
Speaker 1: is it. It's somewhere separate and you got to log
32:03
Speaker 1: in and check and get the app or or whatever.
32:05
Speaker 1: So for people who like to see everything, I get
32:08
Speaker 1: that that, you know, it's it's a little less convenient.
32:10
Speaker 1: It's not a reason to switch, but it was happening.
32:13
Speaker 4: Is that The question that they specifically asked which led
32:15
Speaker 4: to them switching it was would you like to see
32:17
Speaker 4: your money all in one place?
32:19
Speaker 5: Yeah? I would, yeah, done?
32:20
Speaker 1: Yeah, yeah. And I think it was a bit that
32:23
Speaker 1: I can't it is. I was quite irate about the
32:25
Speaker 1: whole thing, but you know, I probably got half the
32:27
Speaker 1: conversation from my kid, who was thinking about the next thing.
32:31
Speaker 1: So yeah, anyhow, I think.
32:33
Speaker 4: A little banking ombudsman sort of.
32:36
Speaker 1: Yes, I know, because the banks got slapped for some
32:38
Speaker 1: some of these kind of aggressive behaviors when they banking
32:41
Speaker 1: tellers were incentivized to solid products and get people enrolled,
32:45
Speaker 1: so they're supposed to be quite careful. And I'm not
32:48
Speaker 1: saying this person wasn't, because I wasn't there to hear
32:50
Speaker 1: the conversation, but I was a little bit surprised it
32:52
Speaker 1: happened so easily. So do your homework, you know, there
32:56
Speaker 1: there are there's some really good kibisiver providers out there
33:00
Speaker 1: quite often. Again, I would advise people to check the
33:03
Speaker 1: fees that they're paying and the performance, all that good
33:05
Speaker 1: stuff you can find out on assorted with the tea
33:08
Speaker 1: shutter is said yet one morning Star.
33:11
Speaker 4: Yes, actually there's a silver lining to that story too,
33:15
Speaker 4: that it is easy to change your keiwisaver. I mean
33:19
Speaker 4: too easy, possibly in the incident you've just recounted. And
33:22
Speaker 4: again we don't have all the fats, we're not naming
33:24
Speaker 4: the bank and everything, but obviously it's it's quite easy.
33:28
Speaker 1: It's incredibly easy. You know, it's literally a couple of
33:32
Speaker 1: minutes to switch, and you can do it all online now,
33:35
Speaker 1: which was never the case before. Twenty sixteen. You hear
33:38
Speaker 1: you stuff to like go to justice is the piece,
33:41
Speaker 1: print out forums, get us in that sign, trot around town.
33:44
Speaker 1: Nobody had the timer could be bothered to do that.
33:46
Speaker 1: So now you know, somebody upsets you with your key saver,
33:51
Speaker 1: you can switch. You don't like something, it's out of
33:53
Speaker 1: alignment with your values, or you think their performance is
33:56
Speaker 1: just terrible. Over a long period of time, you're going
33:58
Speaker 1: to go you find and you simply go to the
34:01
Speaker 1: one that you would like to you down, you know,
34:03
Speaker 1: you fill out their forms online and it gets the
34:07
Speaker 1: switch gets triggered through the ird and it does happen
34:09
Speaker 1: very very quickly. In this case with my son, I said,
34:12
Speaker 1: let's phone this person back and get them to you know,
34:15
Speaker 1: bend the paperwork. But at that stage, and it was
34:17
Speaker 1: probably an hour after you've done this, it had already
34:20
Speaker 1: gone through. Wow, it's that fast.
34:23
Speaker 4: Well, it's okay, silver lining it's easy to do. Maybe
34:28
Speaker 4: let's not say too easy. We don't want to slow
34:30
Speaker 4: things down, but.
34:30
Speaker 1: Yeah, you want to do interesting as you want to
34:33
Speaker 1: do your research before you start moving, whether it's investing
34:36
Speaker 1: two hundred thousand dollars or moving your KII saver that's
34:38
Speaker 1: got twenty thousand. You want to know and be confident
34:41
Speaker 1: that you're moving it to trusted hands.
34:44
Speaker 4: Which actually, while we're on that, Oh, by the way,
34:47
Speaker 4: I'm just there's a text on the textcut thing because
34:49
Speaker 4: I go back to textcuts. No, no, that's but textcut
34:52
Speaker 4: stuff and all. This person says, I use it to
34:54
Speaker 4: support my local cafe and local butchershop, keep the local
34:58
Speaker 4: village afloat, every little bit, council. All adds up since
35:01
Speaker 4: become the dollars save spend share, says Mark, that's a
35:05
Speaker 4: nice altruistic.
35:06
Speaker 1: I agree with you, Mark. I think if you're not
35:08
Speaker 1: carrying you know, credit card, dad or other things monkeys
35:12
Speaker 1: on your back and you can afford to There's a
35:15
Speaker 1: lot of restaurants and cafes hurting out there. My local
35:20
Speaker 1: says business is terrible, and I agree. I would like
35:23
Speaker 1: to do that too, to support them possible. It's not
35:25
Speaker 1: a lot of money, but you know, it adds up
35:27
Speaker 1: for as accumulative for the entrepreneurs out there.
35:31
Speaker 4: I think that we've unfortunately we don't have a lot
35:33
Speaker 4: of time to explore this. We might actually do a
35:35
Speaker 4: whole save this for another time, but.
35:37
Speaker 5: Let's let's just scratch the surface a bit, because you.
35:40
Speaker 4: Know, we're talking about doing your research on Kiwi Saver
35:43
Speaker 4: And of course the expression that always pops up in
35:46
Speaker 4: my head is past performance is no indicator of future performance.
35:52
Speaker 4: And that's really isn't that all we've got to go on?
35:55
Speaker 3: How do you?
35:55
Speaker 4: How do you as any Are there any brief comments
35:58
Speaker 4: you could make which would help people who want to
36:01
Speaker 4: research who is a better key we saber provider because
36:04
Speaker 4: they might have been great last year, maybe they're about
36:06
Speaker 4: to have a terrible year, do.
36:07
Speaker 1: You Yeah, you know that's so sort of a golden
36:09
Speaker 1: role and you hear it uttered a lot, and I
36:11
Speaker 1: think that is meant to sort of be a cautionary
36:15
Speaker 1: tale to people who, you know what, somebody might have
36:18
Speaker 1: got lucky when you're the fund manager chose the right
36:20
Speaker 1: stocks like Tesla when it was off the charts, But
36:24
Speaker 1: seldom is that say it was a double digit return
36:26
Speaker 1: in a single year. You can't. What they're saying is
36:29
Speaker 1: you shouldn't hold on to that as it being replicable
36:32
Speaker 1: over the years going forward. So what they do suggest
36:37
Speaker 1: at morning Star is to look for a track record.
36:42
Speaker 1: Track record. Now we're seeing in kyp saver because it's
36:44
Speaker 1: been around for so long, so you know, but to
36:46
Speaker 1: over seven years, you can start to see or where
36:49
Speaker 1: there returns from year to year. Let's set aside COVID
36:51
Speaker 1: for a minute, jumping around dramatically or just sort of
36:54
Speaker 1: ticking along in a nice upward in cline with your
36:58
Speaker 1: regular contributions and doing anything too crazy that you can
37:02
Speaker 1: feel like there's some steadiness to it. And I think
37:04
Speaker 1: that's sort of the message there, that you want some
37:08
Speaker 1: sort of reliability and proof that you know it's not
37:12
Speaker 1: erratic sort of situation.
37:14
Speaker 4: Yeah, because imagined the bulk of people shovel and k
37:18
Speaker 4: WE saver, you know, they get the employer contributions and
37:22
Speaker 4: they just sort of sit and forget. Do we have
37:25
Speaker 4: any data on how many people actually.
37:27
Speaker 1: Look at with their default providers? That there's been in
37:29
Speaker 1: the last few years has been a big push by
37:32
Speaker 1: people like the FMA and MB and q servised to
37:36
Speaker 1: get people checking so they're not complacent, so that they
37:39
Speaker 1: can be a bit more informed about who they're with.
37:41
Speaker 1: Because in the early days of KIIS, even if you
37:43
Speaker 1: didn't active leeches, you were put into a default provider.
37:47
Speaker 1: In the early days, there was about seven of them
37:50
Speaker 1: and then they get spun out like a lottery system.
37:53
Speaker 1: But who got the money? And I still talk to
37:55
Speaker 1: people today who like, I don't know who I'm with,
37:58
Speaker 1: that's you. There's an easy way to find out. You
38:01
Speaker 1: just call up the IRD or if you've got to
38:03
Speaker 1: log in for my IR, it will be recorded on that.
38:06
Speaker 1: So it's a starting point if you don't know who
38:08
Speaker 1: you're with. But more people are getting actively interested.
38:11
Speaker 4: So I've got to own up because I just went
38:13
Speaker 4: with the one with my bank, and actually it happens
38:16
Speaker 4: to be one of the banks.
38:17
Speaker 5: That seems to do all right.
38:18
Speaker 4: I have kept a little bit of an on it,
38:20
Speaker 4: and I thought, actually that's not bad. Okay, you're doing
38:22
Speaker 4: a right I will leave it there for the time being.
38:24
Speaker 1: But if you want to do some comparisons out there
38:26
Speaker 1: there again, there's some great resources. Morning Star does a
38:30
Speaker 1: huge comparison across peer sectors, and you can look at
38:34
Speaker 1: the track record and you know you don't want to
38:36
Speaker 1: be comparing a growth fund to a conservative or a
38:39
Speaker 1: default fund, for example. You want to be comparing like
38:41
Speaker 1: for like. So just make sure that if you're sifting
38:44
Speaker 1: through that data that you're looking for the right things
38:47
Speaker 1: or a fair comparison.
38:48
Speaker 4: Good stuff, great advice. We'll be back in just a moment.
38:52
Speaker 4: I'm with Amanda Morales is smart Money. It is nine
38:55
Speaker 4: minutes to six news.
38:56
Speaker 5: Talk to b.
39:17
Speaker 2: Andy.
39:17
Speaker 4: Welcome back to Smart Money on the weekend collective with
39:20
Speaker 4: the Mounta Morale. Look, we don't have much time left, Amanda,
39:22
Speaker 4: because time flies when you're having fun. But I just
39:24
Speaker 4: sort of share this nice little story here about young
39:26
Speaker 4: people getting ahead. Hi, Tim and Amanda. I'm proud of
39:29
Speaker 4: my son, aged twenty eight. He saved up two hundred
39:31
Speaker 4: thousand and is now ready to buy first time, albeit
39:34
Speaker 4: he moved to OZ two years ago. In his generous
39:38
Speaker 4: Grandma probably contributed about a third of it over the years,
39:41
Speaker 4: but he saved, he never blew it and has worked
39:43
Speaker 4: for five years. He's conscious that he wants to live
39:45
Speaker 4: and have a good life, which he's trying to do. However,
39:47
Speaker 4: even with that big deposit, he can still only buy
39:49
Speaker 4: an entry level home and it's pretty tough to find one.
39:52
Speaker 4: Always enjoy your segment. Thank you from Helen. He's still
39:55
Speaker 4: doing pretty well. I think this young man, isn't he?
39:58
Speaker 1: I would be very proud of him too. Helen that's awesome,
40:00
Speaker 1: and he'll be miles ahead of some of his pearers.
40:03
Speaker 1: I agree house process are painfully high, but he's in
40:07
Speaker 1: a good, good place and importantly he's got the discipline clearly,
40:10
Speaker 1: you know, he had a little bit of help, but
40:12
Speaker 1: he has the discipline, which I'll put him in a
40:15
Speaker 1: good place for you know, all the years ahead where
40:17
Speaker 1: he's making and meeting mortgage payments, fast tracking it and
40:21
Speaker 1: making other goals happen. So that's a great story. Thank
40:24
Speaker 1: you for sharing it.
40:24
Speaker 4: Yeah, because plenty of people have help, but they you
40:27
Speaker 4: know a lot of people also blow it. So having
40:30
Speaker 4: the discipline at that age to stick with it.
40:33
Speaker 1: Yep, doing the right thing. Yeah, not even thirty. It's great,
40:36
Speaker 1: good stuff.
40:37
Speaker 4: Hey, Amanda, thank you so much for joining us time flies.
40:39
Speaker 4: We must save that key We saber talk about, you know,
40:42
Speaker 4: really how to dig into the performance of your key
40:44
Speaker 4: We saber for another time as well.
40:45
Speaker 1: I think they'd be love to chat about kiv Siver.
40:48
Speaker 5: I know, you know Amanda Morale dot com.
40:50
Speaker 4: If you want to check out any of Amanda's work
40:52
Speaker 4: and some of the comments that she makes and her blog,
40:56
Speaker 4: you can go to Amandamarrale dot com. Thanks to my producer,
41:00
Speaker 4: to Tyra Roberts. Thanks Tyre a great job and we'll
41:02
Speaker 4: look forward to you company same time next weekend up
41:05
Speaker 4: next at Sunday at six and of course you can
41:08
Speaker 4: keep tuned to gold Sport for the commentaries on all
41:12
Speaker 4: the goings on in the Olympics.
41:14
Speaker 5: Have a great evening,