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FRIDAY DRINKS: Glen James Drops In · She's On The Money

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Speaker 1: Hello, my name's Santasha Nabananga Bamblet. I'm a proud yr
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Speaker 1: the Order Kerni Whoalbury and a waddery woman. And before
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Speaker 1: we get started on She's On the Money podcast, I
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Speaker 1: would like to acknowledge the traditional custodians of the land
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Speaker 1: of which this podcast is recorded on a wondery country,
0:18
Speaker 1: acknowledging the elders, the ancestors and the next generation coming through.
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Speaker 1: As this podcast is about connecting, empowering, knowledge sharing and
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Speaker 1: the storytelling of you to make a difference for today
0:31
Speaker 1: and lasting impact for tomorrow.
0:33
Speaker 2: Let's get into it.
0:34
Speaker 3: She's on the Money. She's on the Money.
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Speaker 2: Hello and welcome to She's the Money, the podcast for
1:01
Speaker 2: millennials who want financial freedom. Today is Friday, which means
1:06
Speaker 2: it is time to sit back with the girls and
1:08
Speaker 2: one boy with a bevy in hand, to unpack the
1:10
Speaker 2: week that was, reflect on some of our favorite moments
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Speaker 2: of the week, and of course, to celebrate you, our
1:16
Speaker 2: incredible She's on the Money community. As always, we're going
1:20
Speaker 2: to be sharing our favorite money wins. We'll be discussing
1:22
Speaker 2: what's making news in the finance world, and this week
1:25
Speaker 2: we're going to be answering a juicy money question all
1:27
Speaker 2: about the first Home Super Savor scheme. But first, usually
1:31
Speaker 2: I throw straight to Jessica Ricci because it's quite predictable
1:34
Speaker 2: who you're going to find on this podcast. But this week, Hi, Hi.
1:39
Speaker 2: That does not sound like as she's on the money voice.
1:42
Speaker 2: That is the voice of Glenn James.
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Speaker 4: Hey, ladies, how are you all well?
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Speaker 2: Wow, host of my Millennial Money. Welcome to the show.
1:51
Speaker 2: Thanks for coming, Thanks for having me.
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Speaker 5: I love coming into the show. That the Friday drinks.
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Speaker 5: It's just good fun to catch up with everyone.
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Speaker 2: I feel like it's a good chat, like you get
2:00
Speaker 2: to hear what's going on in our community. Very self
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Speaker 2: serving because I'm like, sit down and look how cool
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Speaker 2: these people are. And then we also get to answer
2:06
Speaker 2: a jucy money question and talk about the world of finance,
2:09
Speaker 2: all of which I feel like you can probably contribute
2:12
Speaker 2: something to. Which is you know, a nice feeling when
2:14
Speaker 2: you have a guest on the show, Guystely, that's my rules.
2:17
Speaker 2: Low not bad. But as always, we usually start the
2:21
Speaker 2: podcast by asking miss Jessica Ricci to kick off the
2:24
Speaker 2: recaps of the week. Jess what happened on our Monday
2:27
Speaker 2: Money Diary.
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Speaker 6: This week's Money Diary was, to be honest, very full on.
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Speaker 6: We spoke to an absolute trooper of a woman who
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Speaker 6: has just been through the ring of the past couple
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Speaker 6: of years. She lost her partner to cancer and was
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Speaker 6: medically discharged from her job because she had PTSD and
2:44
Speaker 6: it was right around the same time, just making an
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Speaker 6: already very difficult traumatic experience a thousand times worse. And
2:52
Speaker 6: then on top of that, there were issues with her
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Speaker 6: partner's will, so she's having to go through.
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Speaker 2: The court process. He died in test state, which means
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Speaker 2: that he didn't have a valid will when he passed away,
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Speaker 2: and it has been an absolute shamble for her to
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Speaker 2: work out. And her real big message was please get
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Speaker 2: your estate planning and wills in order because this is
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Speaker 2: so important.
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Speaker 6: Yeah, and then she also was going through a battle
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Speaker 6: with work cover because her PTSD was brought on by
3:19
Speaker 6: an experience that she had at work, and so that
3:21
Speaker 6: has been a bit of a nightmare for her as well.
3:23
Speaker 6: And it was just a really full on story that
3:27
Speaker 6: shows you that sometimes shit just pits the fan at it.
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Speaker 2: And it really did in the circumstance, it really did.
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Speaker 6: But she was so open with us about what she
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Speaker 6: had been doing to manage that and talking about as
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Speaker 6: you said, her really big message was get your will
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Speaker 6: sorted out, because you just never know. And I was
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Speaker 6: very thankful for her candidness because I think there was
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Speaker 6: something that all of us could learn from her really
3:50
Speaker 6: really tough experience.
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Speaker 2: Yeah, she was really really special. I finished that episode
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Speaker 2: and I was just like, holy moly, like I just
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Speaker 2: wanted to hug this person because it just felt like,
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Speaker 2: as you said before, jess she went through the absolute ringer.
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Speaker 2: Georgia King, Hello, what did we talk about on our
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Speaker 2: deep dive?
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Speaker 7: On our deep Dives this week, we recruited Jessica Richie
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Speaker 7: into the.
4:11
Speaker 2: St yeated off my.
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Speaker 7: But it was all about our top tips for making
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Speaker 7: money secondhand and longtime listeners will know there is no
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Speaker 7: better expert in that space than Jessica Richie, So I
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Speaker 7: picked her brain.
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Speaker 2: I really really thought that was quite special. Actually, thank
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Speaker 2: you for covering me. I went and had a bedt.
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Speaker 7: Dinner with Jinda Ardern or something that.
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Speaker 2: Oh yeah, sorry, busy, I'm the busy goal busy. Go
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Speaker 2: oh my gosh. It was the coolest thing I've ever done.
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Speaker 2: You know what's even cooler is that I was like,
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Speaker 2: oh my gosh, obviously she's going to be here, but
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Speaker 2: she's like, you know, real official, probably not going to
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Speaker 2: get to say hi. But we're all standing around before
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Speaker 2: the dinner started, like mingling, having a drink. I'm drinking
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Speaker 2: a Gin and Tonic, having a chat with some people
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Speaker 2: that I was networking with, and in walks Ja Cinda,
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Speaker 2: no security, nothing, she just walks up and just says, oh, hey, guys,
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Speaker 2: how's your night going? And I'm like, like, it was
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Speaker 2: a lot. She's like drinking gin. I love Gin? Do
5:05
Speaker 2: you reckon? There's one behind the bar? Like she was
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Speaker 2: the coolest, most wholesome person I've ever met. Probably the
5:11
Speaker 2: coolest experience of my life. I hope she never hears
5:13
Speaker 2: that because I composed myself so well in that situation.
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Speaker 2: So I'm really proud of myself. Yeah, thanks for asking.
5:20
Speaker 4: There you go.
5:21
Speaker 7: But it was it was a very good episode. If
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Speaker 7: you like me and you have heaps of stuff on
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Speaker 7: marketplace but it just ain't selling, then have a listened
5:29
Speaker 7: to the episode.
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Speaker 2: I think it's a very good episode because Jess, it's
5:31
Speaker 2: not just about selling, it's about how to sell it
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Speaker 2: and there's a strategy there, sure is, go go have
5:37
Speaker 2: a listen.
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Speaker 5: I need to listen to that because I've got an
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Speaker 5: old boat engine.
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Speaker 4: That's sale.
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Speaker 2: I really episode for you. Honestly, I don't know if
5:46
Speaker 2: we can help with a boat engine. If you jump up,
5:49
Speaker 2: maybe we can. Anyway, Speaking of money wins and just
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Speaker 2: Cinda ardourn nahj Justinda Arderne has nothing to do with it,
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Speaker 2: we are going to dive straight into our budget direct
5:57
Speaker 2: money wins. Georgia King, what are you putting on the table?
6:00
Speaker 1: This go?
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Speaker 2: Okay?
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Speaker 7: Nice and short and sweet this week. The first one
6:03
Speaker 7: comes from zoe money win I deleted after pay number
6:07
Speaker 7: two high wait, short but sweet. I had an epic
6:11
Speaker 7: week of money wins. I got a free book and
6:13
Speaker 7: a fancy pillow upgrade. The best was winning ten dollar
6:17
Speaker 7: tickets to Hamilton and getting front row seat.
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Speaker 8: Huge.
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Speaker 4: Did you see Hamilton?
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Speaker 2: You ready, Jess? Where did we see Hamilton?
6:26
Speaker 6: On the West End?
6:29
Speaker 4: Is it Melbourne? Still?
6:30
Speaker 2: It's going yes, let's go tonight.
6:33
Speaker 6: I mean shouting.
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Speaker 2: Dollars so I can say I had the same money
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Speaker 2: winners you.
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Speaker 7: The next win comes from Zoey. It's my personal favorite
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Speaker 7: money win. I got one point out kilos of chicken
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Speaker 7: breasts for seven dollars forty six instead of almost nineteen
6:48
Speaker 7: dollars because the wrong label was put on the package.
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Speaker 2: You enjoy that chicken Zoe good on it.
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Speaker 4: I saw a money win that I liked.
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Speaker 2: Did you you said a share one? Can you wait
6:59
Speaker 2: to the end? You just get to go in the middle.
7:02
Speaker 4: No, I have a you come in at the end.
7:05
Speaker 2: You can have your turn if you sit.
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Speaker 7: The next wind comes from Naomi. I booked our honeymoon
7:16
Speaker 7: accommodation through booking dot com by a shot back, and
7:19
Speaker 7: the money finally cleared. I told you guys, I got
7:22
Speaker 7: two hundred and seventeen dollars back, and we put all
7:24
Speaker 7: that cash back from shot back into our toddler's savings.
7:27
Speaker 2: I told you guys, you can literally get cash back
7:29
Speaker 2: on holidays.
7:30
Speaker 7: It's brilliant. It's sick, it is brilliant. The next wind
7:32
Speaker 7: comes from Clarissa money win. I've been saving up to
7:35
Speaker 7: buy a double hanging egg chan and I've been looking
7:38
Speaker 7: at around one thousand dollars that's my budget. I found
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Speaker 7: one on sale today for six hundred dollars and they
7:43
Speaker 7: gave me at half price. Oh no, I didn't sorry,
7:45
Speaker 7: shut that down. Oh she got half price delivery. It
7:49
Speaker 7: was six fifty still good, still better than one thousand.
7:51
Speaker 7: The next win comes from Emily money win and loss.
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Speaker 7: I had enough in my emergency fund to pay for
7:56
Speaker 7: my dog's thirteen hundred dollar dental surgery as a single man.
8:00
Speaker 7: I'm so relieved to have an emergency fund at hand.
8:03
Speaker 7: And our final win from the day it comes from
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Speaker 7: Glenn James. I got to go actually in Perth the
8:08
Speaker 7: other day. His f POS machine wasn't working, so he
8:12
Speaker 7: was like, oh, well, don't worry.
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Speaker 2: Are you joking? That claim was coming in and I
8:19
Speaker 2: didn't know.
8:19
Speaker 4: I was just gonna make fun of it. It was
8:20
Speaker 4: more to the story. But that was like the TLDR.
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Speaker 5: Well, I got out and I'm like, yeah, he's the
8:25
Speaker 5: cafe and he the she want to work and it
8:28
Speaker 5: was only like thirteen dollars and I've just got the
8:31
Speaker 5: view and I leave a hotel. If there's a cab there,
8:33
Speaker 5: I'll just jump in, yeah, and if not, I was
8:35
Speaker 5: just getting Uber because I don't have to pay, like
8:37
Speaker 5: it's automated through Uber anyway, jumped in, Yeah, take me there,
8:42
Speaker 5: and he pulled up and the machine wasn't working, and
8:46
Speaker 5: and he's like, well, you need to give me cash.
8:49
Speaker 5: I don't have cash. No one, yeah, And I said
8:53
Speaker 5: to him, I said, look, this is like ten am.
8:56
Speaker 5: If you're having a big shift, trust me, I'm not
8:58
Speaker 5: your problem here. You got a bigger problem that you're
9:00
Speaker 5: going to have to fix if you want to shift
9:01
Speaker 5: for the rest of the day.
9:02
Speaker 2: Nobody carries cash anymore.
9:04
Speaker 5: Anyway, I said, I'm going over to the cafe. If
9:06
Speaker 5: you want to try the machine, get it working. I'll
9:09
Speaker 5: come back out in five minutes and I'm happy to
9:10
Speaker 5: pay if you want to sit there. And I said,
9:13
Speaker 5: all right, out and then went back out and it
9:15
Speaker 5: still wasn't working, and he's like kind of agitated, like
9:18
Speaker 5: it was my problem.
9:19
Speaker 4: And I said, look, can I buy you breakfast and
9:22
Speaker 4: a coffee?
9:24
Speaker 2: He was having a bad day, say yes, No.
9:26
Speaker 6: He said no, it was going to be a wholesome story,
9:30
Speaker 6: best friend, when that's a terrible story.
9:33
Speaker 2: I don't know why we asked you.
9:34
Speaker 4: To expand on it, but it was a money win.
9:36
Speaker 2: What is a money win? So ultimately you got out
9:38
Speaker 2: of it t r DR money whims, you know what?
9:41
Speaker 2: On that thread. We don't care about the semantics. We
9:43
Speaker 2: just want to celebrate, So I like it.
9:46
Speaker 1: I like it.
9:46
Speaker 2: Glenn. It is now your turn. What is your money
9:49
Speaker 2: win that you would like to share from the shees
9:50
Speaker 2: on the money coming.
9:51
Speaker 5: And it's important to learn from the money losses that
9:54
Speaker 5: we have in our own lives and that we share
9:57
Speaker 5: because you do money wins and money losses, right, we
9:59
Speaker 5: do so. Catherine Wernhard money loss. Bought a Disney gift
10:04
Speaker 5: card from a gift card deal. They haven't supplied it
10:08
Speaker 5: and they were supposed to refund me yesterday. Yesterday they
10:10
Speaker 5: said they had no idea when they will be refunding it.
10:13
Speaker 5: And to lodge acclaim with her bank. She's lost over
10:16
Speaker 5: one thousand dollars and the bank says it's taken thirty
10:19
Speaker 5: to forty days to sort out.
10:21
Speaker 2: Oh yeah no.
10:22
Speaker 5: And that's just a cautionary tale for stuff like that.
10:25
Speaker 5: It's easy for fake websites to appear. And I'm not
10:29
Speaker 5: saying she did anything wrong. It's just more of a
10:31
Speaker 5: because we don't know her situation. But if we look
10:33
Speaker 5: back and say, just with gift cards and stuff, go
10:36
Speaker 5: direct to the source where possible, or a reputable thing
10:40
Speaker 5: like you threw your shot back your sponsor, yeah, or
10:42
Speaker 5: whatever that is because when the crap hits the fan
10:46
Speaker 5: less layers is easy to deal with.
10:49
Speaker 2: Yeah, absolutely.
10:50
Speaker 6: Or pay through PayPal is something like when I am
10:53
Speaker 6: on a website, like not even gift cards specifically, but
10:56
Speaker 6: just buying anything, and I'm.
10:57
Speaker 2: Like, ooh, is this dodgy always through?
11:00
Speaker 6: Because I have had instances in the past where it's
11:03
Speaker 6: been bad and PayPal is so good.
11:04
Speaker 2: I mean like it was fake.
11:05
Speaker 6: They're like, yep, pusey money back.
11:07
Speaker 2: Amazing. So that was just how many fake purchases are
11:09
Speaker 2: you making? Like how often are you going to donjee
11:12
Speaker 2: websites and being like boop, this one doesn't look like
11:14
Speaker 2: a goodie. Better use paper like good advice? Where did
11:17
Speaker 2: that come from?
11:18
Speaker 6: The Instagram advertisements get me every time?
11:20
Speaker 2: Okay, okay, that makes absolute sense. Guys. It has been
11:23
Speaker 2: great celebrating some of your budget Direct money wins. Budget
11:26
Speaker 2: Direct winner of can Stars Insurer of the Year Award
11:29
Speaker 2: twenty twenty two. Budget Direct Insurance Solved. Let's go to
11:33
Speaker 2: a really quick break, and then after the break, we're
11:35
Speaker 2: going to answer our juicy money question and also talk
11:38
Speaker 2: about what's making news in the finance world this week.
11:40
Speaker 2: Don't go anywhere, all right, guys.
11:47
Speaker 6: This week's topic actually was a spread in the group
11:50
Speaker 6: last week for our friend Kara, and she said, Hi, all,
11:53
Speaker 6: just wondering for those who invest in spaceship, are you
11:55
Speaker 6: worried about the news about spaceship seeking capital, raising turmoil
11:59
Speaker 6: about the CEO, et cetera. Trying not to panic, but
12:01
Speaker 6: feeling like things are going belly up. And there were
12:03
Speaker 6: a lot of comments on this thread. Some people were
12:06
Speaker 6: saying they're pulling their money out because they want to
12:08
Speaker 6: make sure that, you know, they get it out before
12:10
Speaker 6: the whole thing falls over. So I thought it would
12:12
Speaker 6: be really good to talk about because I totally understand
12:15
Speaker 6: the panic here, particularly because it's different from you know,
12:19
Speaker 6: just the market being up and down, which we're seeing
12:21
Speaker 6: across the board. For those who don't know, I think
12:24
Speaker 6: it was back in maybe February there were some issues
12:27
Speaker 6: with one of the former CEOs faking an accreditation and
12:31
Speaker 6: actually that gave me the HEBGB So I didn't realize
12:34
Speaker 6: that in twenty twenty two in Australia that would you
12:37
Speaker 6: be an option? Yeah, And so he was banned from
12:39
Speaker 6: providing financial services. There was a whole investigation they've come
12:43
Speaker 6: out the other side of that, and then there's been
12:45
Speaker 6: some issues around I believe there's superannuation offering and that's
12:48
Speaker 6: what's kind of pushed this round of capital raising. So
12:51
Speaker 6: I wanted we've got two finance experts here today.
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Speaker 3: I thought that.
12:55
Speaker 2: Georgia George King and Jesse Garci how we love.
13:00
Speaker 6: But yeah, guys, what should we be thinking about this?
13:02
Speaker 6: Should people be pulling their money out? Are their protections
13:04
Speaker 6: in place? Or are we all just kind of panicking
13:06
Speaker 6: a little bit because it sounds totally scary.
13:08
Speaker 2: What do you reckon? Glynn? You're here to take my job.
13:11
Speaker 5: So basically, high ladies, I'm the new host of She's
13:14
Speaker 5: on the Money, the French Wine extra Agains a podcast.
13:18
Speaker 5: Now I want to first and foremost declare I'm not
13:21
Speaker 5: a spaceship customer. I have never been one. I've been
13:25
Speaker 5: critical in a past life about their performance around you know,
13:31
Speaker 5: when they first started in the mistruths that they were
13:33
Speaker 5: saying about their funds and the fact that you know,
13:36
Speaker 5: they did have an initial offering that was fee free,
13:39
Speaker 5: and we all know that there's no such thing as
13:42
Speaker 5: a free lance free like you know, the world actually
13:45
Speaker 5: has to has to go on. But look, to be honest,
13:49
Speaker 5: I'm if I was a Spaceship investor at the moment,
13:52
Speaker 5: I don't think there is cause for alarm. There is
13:57
Speaker 5: cause to further understand and what you're invested in. And
14:02
Speaker 5: I kind of wrote down here and I got in
14:06
Speaker 5: trouble before for picking up pen and paper.
14:08
Speaker 2: No, you've got in trouble for getting up from the table.
14:11
Speaker 2: Once we said we had started recording, making noise and
14:14
Speaker 2: dropping stuff. That was so we started the podcast again,
14:18
Speaker 2: but we moved on. We clearly did not.
14:20
Speaker 5: I made some points first and foremost. You know, the
14:23
Speaker 5: fun business is very hard. So for those who don't
14:26
Speaker 5: know what fun means, it's funds under management.
14:29
Speaker 2: Yeah, I'm just trying to let you guys know that
14:31
Speaker 2: I still know some stuff.
14:32
Speaker 5: Yes, yes, and that's a very hard business to be
14:35
Speaker 5: profitable because you know, there's a quote here in the
14:39
Speaker 5: AFR article. Nonetheless, Spaceship has still not achieved the scale
14:43
Speaker 5: required to be cash flow positive. Now they've got close
14:48
Speaker 5: to a billion dollars of funds under management. That's a
14:51
Speaker 5: lot of money. As Victoria's favorite, Donald Trump would say,
14:55
Speaker 5: billions and billions and billions and billions and billions, so
15:00
Speaker 5: the fun business is very hard. They've only got well,
15:03
Speaker 5: it's a fair amount of people, one hundred and thirty
15:05
Speaker 5: three thousand members, and they still can't turn a profit.
15:08
Speaker 5: My second point is, you know, the marketing work, it
15:12
Speaker 5: didn't really win because if people are withdrawing now, maybe
15:16
Speaker 5: some of us didn't understand what we're investing in. And
15:20
Speaker 5: I was critical in the past with different investment companies
15:23
Speaker 5: advertising short term returns, and you've talked about this before.
15:27
Speaker 5: I know they advertised to thirty percent year on year
15:30
Speaker 5: return and this is all awesome. So we just need
15:32
Speaker 5: to know that, you know, marketing is real, it's a
15:35
Speaker 5: legitimate business for everyone. We all do marketing, but we
15:38
Speaker 5: have to actually have a look what's going on. So
15:41
Speaker 5: marketing didn't win, probably did in the short term. The
15:45
Speaker 5: third biggest issue that I see above some of the
15:49
Speaker 5: I'm sure there could be an ethical issue there at
15:51
Speaker 5: the management level, but my biggest concern is, you know,
15:55
Speaker 5: the sector specific risks. So if you've got any investment
16:00
Speaker 5: account with Spaceship, their whole thing was investing in the future,
16:04
Speaker 5: and a lot of their you know, their core fund
16:07
Speaker 5: was investing in tech stocks. And while that did us
16:11
Speaker 5: the thirty percent year on year through COVID and all
16:13
Speaker 5: that we're now starting to see, you know, the thirtieth
16:16
Speaker 5: of June, their growth X funded negative nineteen point five
16:22
Speaker 5: and the Voyager lost to forty seven percent in one year.
16:24
Speaker 5: So that's basically half where I come from. So we're
16:27
Speaker 5: seeing the other side of being sector specific. So that's
16:31
Speaker 5: really a bigger risk for me not having a well
16:34
Speaker 5: balanced portfolio that's diverse across sectors. But in terms of
16:38
Speaker 5: you are a spaceship investor and you love it and
16:41
Speaker 5: you understand all that, the underlying investments are still fine.
16:45
Speaker 5: And the falseth thing that we need to learn is
16:47
Speaker 5: your money is in custody if you're operating.
16:50
Speaker 2: That's what I was like, can we talk about custody going.
16:53
Speaker 4: Don't fight in front of the kids. Yeah.
16:56
Speaker 5: So the last thing is the money is in custody.
16:58
Speaker 5: So if the operating company is raising money to manage
17:03
Speaker 5: the business, and if an operating company fails, they can't
17:07
Speaker 5: turn around to the pool of custody money.
17:10
Speaker 2: Yeah, and they can't take your money to pay their bills.
17:13
Speaker 5: To summarize that, that's and you know, I got into
17:15
Speaker 5: a bit of a chat I'll say in another Facebook
17:18
Speaker 5: group and someone's saying no. It was another one and
17:22
Speaker 5: someone was saying like oh this and this. I'm like, no,
17:25
Speaker 5: you're actually incorrect. And if you've got a go on.
17:28
Speaker 2: The internet to tell people they're wrong, so you would
17:30
Speaker 2: have thrived in that circumstance.
17:32
Speaker 4: I'm just here to ENLiGHT.
17:33
Speaker 5: I mean, but if you've got a problem with you know,
17:36
Speaker 5: we see online and people you know, get up in
17:38
Speaker 5: arms about I only have investments that are just sponsored. Well,
17:42
Speaker 5: if you're that pure and concerned about that, you need
17:45
Speaker 5: to move your superannuation to a self managed superfund if
17:48
Speaker 5: you really want to go down and pull that string.
17:50
Speaker 5: So we need to step back. There's no cause for alarm.
17:54
Speaker 5: You just need to understand what you're invested in. And
17:58
Speaker 5: we all, like when we start investing, we all learn
18:00
Speaker 5: the hard way. Like when I first started investing, I
18:03
Speaker 5: lost heaps of money because I didn't know.
18:04
Speaker 4: What I was doing.
18:05
Speaker 2: That's why I started cheese on the money. So I
18:07
Speaker 2: learned the hard way. My community doesn't do like that's
18:09
Speaker 2: the point.
18:10
Speaker 4: So okay, so let's talk about strategies.
18:13
Speaker 5: If you were like, hey, I'm investing monthly into spaceship,
18:18
Speaker 5: and I do have a bit of hebgb's around what's happening.
18:22
Speaker 2: That's fair to have though, right. Yeah, So I think
18:24
Speaker 2: the summary of like that first part of your conversation
18:27
Speaker 2: to just jump in here, is that your money's in custody.
18:29
Speaker 2: You're not going to lose your money. You don't need
18:32
Speaker 2: to remove it because you're so worried that the business
18:34
Speaker 2: is going to go under. If that does actually happen,
18:37
Speaker 2: your money will be returned to your account. If everything
18:40
Speaker 2: shuts down and the fund is no more. So, your
18:42
Speaker 2: money isn't just going to disappear into the abuse. But
18:46
Speaker 2: it is very fair going to what you're about to say, Glenn,
18:49
Speaker 2: to go, do you know what my ethics, my values,
18:51
Speaker 2: my morals don't align to the company that I'm currently
18:53
Speaker 2: investing in, and I'm going to find another option, and.
18:56
Speaker 5: In that you might have the option. Well, I know
18:58
Speaker 5: the portfolio is down forty seven percent. I'm just going
19:02
Speaker 5: to leave that to the side and invest what we
19:05
Speaker 5: call new money. So new money in the money world
19:08
Speaker 5: is I've earned this money, that cash is in my bank,
19:11
Speaker 5: This money is being invested for the first time. I
19:13
Speaker 5: might say, well, I'm putting new money into a different account,
19:17
Speaker 5: different platform or whatever. You then may go, I'm happy
19:21
Speaker 5: to take the risk and leave Spaceship there quarantined. If
19:23
Speaker 5: it recovers, you might say, well, the money's in the
19:26
Speaker 5: market anyway, I'll just withdraw now trigger capital gains loss.
19:31
Speaker 5: If you do have a loss, move that money to
19:33
Speaker 5: another account. But I just think it's always important, Like
19:37
Speaker 5: I see these articles. I'm in the face groups. I
19:39
Speaker 5: read this stuff and I get high blood pressure thinking,
19:41
Speaker 5: oh the world's ennying. It's like, no, no, let's just
19:44
Speaker 5: slow down. We do have control. It's okay to question
19:48
Speaker 5: whether we put further money in there. And if you're
19:51
Speaker 5: happy with a high concentration of tech stocks and you're
19:55
Speaker 5: happy with the CEO has been punished and he's no
19:59
Speaker 5: longer doing that, who you can still use Spaceship. I
20:02
Speaker 5: think the risk is probably low that they're going to
20:06
Speaker 5: go under it.
20:06
Speaker 2: Honestly, Glenn, knowing the way the business and finance world works,
20:10
Speaker 2: if it's not working for them, it's very unlikely that Spaceship,
20:13
Speaker 2: with that many valuable customers is ever going to completely
20:17
Speaker 2: fall over. If anything, is just going to be bought
20:19
Speaker 2: by someone else and have brand new management and someone
20:22
Speaker 2: else is going to come in. Yeah, exactly like something
20:25
Speaker 2: is going to happen that keeps them in business in
20:27
Speaker 2: a way. It just might not be the same people
20:29
Speaker 2: that currently run it purely because that's the way business works.
20:33
Speaker 2: There are a lot of customers behind that, and in finance,
20:37
Speaker 2: customers who are already invested are very hard to come by.
20:40
Speaker 7: Yeah.
20:40
Speaker 5: And I will say, just in finishing my sermon on
20:43
Speaker 5: the mount here, if the worst did happen and the
20:46
Speaker 5: operating entity went into receivership that money in custody, sure
20:54
Speaker 5: it could be frozen for some time.
20:56
Speaker 2: Yeah, but it's ultimately coming back.
20:58
Speaker 5: Yes. Now what that means means is it could be
21:01
Speaker 5: bought by another entity. As VD said, they may cash
21:05
Speaker 5: it out and cause tax event. And the cashed out
21:10
Speaker 5: we're spitting back, you know, two thousand dollars, and because
21:13
Speaker 5: you had two thousand invested, we're cashing out.
21:15
Speaker 4: He's the tax event. So I just think it's a
21:19
Speaker 4: good discussion to have.
21:20
Speaker 2: I think it's a great discussion to have.
21:22
Speaker 5: I've told my listeners that I'm more concerned about the
21:25
Speaker 5: sector specific being that you know, deep just in tech stocs.
21:32
Speaker 2: Yeah, agreed, agreed. I actually have a question for you,
21:34
Speaker 2: Jess and George. Having heard that, what are your thoughts?
21:39
Speaker 7: Well, from my perspective, I think what scared me about
21:42
Speaker 7: that thread was seeing how many people were scared of
21:45
Speaker 7: each other's comments.
21:46
Speaker 2: There was this real fear.
21:47
Speaker 7: Mongering, which speaks to what happens on the stock market
21:51
Speaker 7: on a larger scale. Right, So all of these people
21:53
Speaker 7: in this thread were like, oh God, I need to sell,
21:55
Speaker 7: I need to sell, I need to sell. And I'm
21:56
Speaker 7: worried that they'll listen to this conversation and be like, shit,
21:59
Speaker 7: I did the wrong thing.
22:00
Speaker 2: It's a good lesson though, if you went and sold
22:03
Speaker 2: because you read some stuff on a Facebook group, again,
22:06
Speaker 2: it might have been in cheese on the money. But
22:08
Speaker 2: I've said to you guys time and time again, let's
22:11
Speaker 2: think about where this information is coming from. Was it
22:14
Speaker 2: from a trusted authoritative figure in this space or was
22:17
Speaker 2: it from some random named Cheryl who just said, guys,
22:20
Speaker 2: you should be real scared. And you go, oh right, right, okay,
22:23
Speaker 2: sit up straight.
22:24
Speaker 7: But that's how these things can happen, right, so exactly,
22:27
Speaker 7: and it speaks to a lack of understanding as to
22:29
Speaker 7: how these platforms work. And you're not investing in Spaceship,
22:32
Speaker 7: you're investing in the shares that they're managing for you. Yes,
22:36
Speaker 7: I found it very interesting, just your thoughts.
22:39
Speaker 6: I think the flip side of that is there were
22:40
Speaker 6: quite a few people on that thread going hey, like
22:43
Speaker 6: explaining things to each other, which I think is awesome
22:45
Speaker 6: to see. There are a lot of people kind of
22:48
Speaker 6: explaining what the capital raising means, and effectively, for those
22:51
Speaker 6: who don't know, it just means that they've gone, oh,
22:54
Speaker 6: we can't really cover the costs of running this business,
22:56
Speaker 6: and they're going to try to get investors and backers
22:58
Speaker 6: to help them do that. And that is a preventative measure.
23:02
Speaker 6: It's not as if we've come in at the eleventh
23:04
Speaker 6: hour and gone, oh my god, the whole thing's gone
23:06
Speaker 6: ballly up. Like they're obviously keeping an eye on the future,
23:09
Speaker 6: they're trying to ensure that people are in the best
23:11
Speaker 6: possible position. I think that is a positive thing, and
23:14
Speaker 6: I think it's really great to see people having those
23:18
Speaker 6: conversations in the group and to see people kind of
23:21
Speaker 6: encouraging each other to think about things and think them through.
23:23
Speaker 6: Because there are several Spaceships users in this room, including
23:26
Speaker 6: me and We've spoken before about the fear with the
23:28
Speaker 6: market being down, and I think, like anything, it's you know,
23:32
Speaker 6: making sure that it's right for you right now, and yeah,
23:36
Speaker 6: taking into account what's going on in the world, and
23:38
Speaker 6: taking into the account of the opinions of people in
23:40
Speaker 6: the group and people like us, but ultimately it's what
23:43
Speaker 6: is right for you. And I think I'm really happy
23:46
Speaker 6: to see people having those conversations and taking that into consideration.
23:51
Speaker 4: Yeah.
23:51
Speaker 5: I'm just thinking, like in these discussions, we all jump
23:56
Speaker 5: to the all or nothing, like I have to just
23:58
Speaker 5: sell out today. It's like, well, you know, I don't
24:01
Speaker 5: think the house is on fire. Yeah, Like, why don't
24:05
Speaker 5: we just pause and be cash heavy and what about
24:08
Speaker 5: you step back and add up all your assets. You
24:11
Speaker 5: might add up your car, you have savings, you might
24:14
Speaker 5: own a house or super add up all your assets
24:18
Speaker 5: and then divide the amount that you've got in spaceship
24:22
Speaker 5: by the total assets and that will give you a
24:24
Speaker 5: percentage of your world that's in spaceship.
24:27
Speaker 2: And if it is a you know, under super significant.
24:30
Speaker 5: If it's twenty percent, it's like, okay, well let's just
24:34
Speaker 5: walk down the ramp. If it's ninety percent of my
24:37
Speaker 5: world is in tech stocks. Well, we need to actually
24:41
Speaker 5: go what's this means? As doctor Phil said, how's that
24:45
Speaker 5: working for you?
24:46
Speaker 1: Yeah?
24:47
Speaker 2: Well I don't know if you like. So let's move
24:49
Speaker 2: on from that. I want to hear Georgia King. What
24:52
Speaker 2: do I want to hear our bunny dilemma of the week.
24:55
Speaker 2: Let's take the listen.
24:59
Speaker 7: Hi, there, have you got a money dilemma you just
25:01
Speaker 7: can't solve that. She's on the Money team is here
25:04
Speaker 7: to help. Every week we tackle your dilemmas, both big
25:07
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25:10
Speaker 7: life questions. To get involved, simply head to our website
25:13
Speaker 7: and leave us a quick voice recording and you may
25:15
Speaker 7: just find yourself on the show. Now, let's take a
25:17
Speaker 7: listen to today's money dilemma.
25:21
Speaker 2: Hi, She's on the Money.
25:22
Speaker 8: Love your work. I just had a question about the
25:25
Speaker 8: First Home super Saver scheme. Do I have to make
25:29
Speaker 8: contributions first and then apply for the scheme? Or do
25:34
Speaker 8: I apply for the scheme and then make voluntary contributions.
25:39
Speaker 8: I'm just a bit confused how it all works, as
25:41
Speaker 8: I'd love to try and save up for my first home,
25:45
Speaker 8: haven't I Stay Love you guys.
25:48
Speaker 2: Bye, we love you too. Oh my gosh, She's loved
25:51
Speaker 2: apprehensive about whether she wanted to say that saying it,
25:54
Speaker 2: she regretted saying it. I don't regret that we love
25:56
Speaker 2: you too. Call it what it is. If you said
25:57
Speaker 2: you love us first, that's fine. Yeah.
26:01
Speaker 6: I just wouldn't agree with her because I contributed to
26:04
Speaker 6: the first home or I contributed to my super I
26:06
Speaker 6: should say last financial year, And when I was looking
26:09
Speaker 6: into it, I was confused, like, it's not super clear.
26:13
Speaker 6: I don't think when you look at the website they
26:15
Speaker 6: don't excuse the part either, but they don't make it
26:19
Speaker 6: super clear. I think in the outline not super clear.
26:22
Speaker 6: The first time super saved is not super clear. No, unacceptable.
26:25
Speaker 6: And I think I can totally understand why she's asking
26:27
Speaker 6: this question because I had the same question. I did
26:29
Speaker 6: the ring around. So I'm glad that she asked it.
26:30
Speaker 8: You did.
26:31
Speaker 2: How did you solve her?
26:32
Speaker 6: So I called my super fund and asked them, and
26:35
Speaker 6: to be honest, they were less comprehensive in their response
26:38
Speaker 6: than I would have hoped.
26:39
Speaker 2: Imagine if you had like access to a financial advisor
26:42
Speaker 2: that you could have asked that might have been able
26:43
Speaker 2: to guide you so that I did. Next, I asked you,
26:46
Speaker 2: I'm glad I tell the first point of.
26:48
Speaker 6: Cool though you're a busy woman.
26:49
Speaker 2: What can I say?
26:51
Speaker 6: Well, where we landed was you don't have to notify
26:54
Speaker 6: anybody that you're contributing, because the way that it works
26:56
Speaker 6: is you have to make your voluntary contribution first, So
26:59
Speaker 6: you make your con tribution. It's capped currently at fifteen
27:02
Speaker 6: thousand dollars per financial year. You can put that in
27:04
Speaker 6: all at once, like right at the end of the
27:06
Speaker 6: financial year like I did, or you can pay it
27:08
Speaker 6: incrementally throughout the year, making easier on yourself either way.
27:11
Speaker 6: And the current cap has it just changed? Is it
27:14
Speaker 6: now fifty?
27:15
Speaker 2: Now fifty thousand dollars? As of the first of July
27:18
Speaker 2: twenty twenty two, the cap has been increased to fifty
27:21
Speaker 2: thousand dollars instead of thirty thousand dollars, which is our
27:24
Speaker 2: money win, very exciting.
27:25
Speaker 6: But the max you can contribute is still a fifteen
27:27
Speaker 6: which is kind annoying.
27:28
Speaker 2: Really annoying. But at the same time, lots of us
27:31
Speaker 2: are going to make use of that over the next
27:33
Speaker 2: five years, which actually puts us in a position to
27:36
Speaker 2: use that full.
27:36
Speaker 6: Fifty absolutely, So you do that, and then when it
27:39
Speaker 6: comes time to purchase a house, you need to lodge
27:42
Speaker 6: a form before you sign your contract to purchase or build.
27:47
Speaker 6: So if you are using this scheme, make sure mark
27:50
Speaker 6: your calendar, write it down somewhere. You need to submit
27:53
Speaker 6: a notice to withdraw with your superfund, and you also
27:57
Speaker 6: probably need to pass that information along to your accountant.
27:59
Speaker 6: I would ass for tax time, right yep, because they
28:03
Speaker 6: need to know that you're doing it, they need to
28:04
Speaker 6: know where that money is going. And then you have
28:06
Speaker 6: I believe twelve months to use it from the date
28:10
Speaker 6: that you notify them of your intention to withdraw.
28:12
Speaker 8: Is that right?
28:13
Speaker 1: Yep?
28:13
Speaker 2: Yeap, Yeah, so very very on track. So you're right,
28:17
Speaker 2: you don't have to tell anybody. But I always recommend
28:19
Speaker 2: that you give your super fund a buzz because it's
28:22
Speaker 2: really important to be educated, and we pay our super fees,
28:25
Speaker 2: so we should make use of the resources they have.
28:27
Speaker 2: And most of them have brilliant call centers full of
28:31
Speaker 2: very educated people who know the ins and outs of
28:34
Speaker 2: that specific super fund. So they might not be able
28:36
Speaker 2: to tell you the difference between host plus and the
28:39
Speaker 2: Westpac option, but they will be able to say, look,
28:41
Speaker 2: this is what you've got access to. This is how
28:43
Speaker 2: your fund works, These are your fees, this is what
28:45
Speaker 2: your insurance is. And you can say I'm looking to
28:48
Speaker 2: do this. Do you want to put any note on
28:50
Speaker 2: my file or whatever it is? Have a chat? Unnecessary though,
28:53
Speaker 2: because you're right. All you need to do is make
28:56
Speaker 2: voluntary contributions to your superannuation. So that can be pre
29:00
Speaker 2: all post tax, but it has to be a voluntary contribution.
29:03
Speaker 2: And then, as you said, you're right up to fifteen
29:06
Speaker 2: grand per financial year. Then once you're ready to buy,
29:10
Speaker 2: you'll then apply for what they're calling a first Home
29:12
Speaker 2: super Savior determination from the ATO. So you'll submit that
29:17
Speaker 2: form to the ATO, and then the ATO will say, hey, Jess,
29:20
Speaker 2: they'll review your super fund and basically what they're doing
29:22
Speaker 2: is looking at how many voluntary contributions you made and
29:26
Speaker 2: over what period you made them, and then they'll say,
29:28
Speaker 2: all right, Jess, well you made fifteen thousand dollars worth
29:30
Speaker 2: of voluntary contributions. You can access that. Then they'll tell
29:33
Speaker 2: you how much you're eligible to withdraw and what tax
29:36
Speaker 2: might be applicable to that, because sometimes if you want
29:39
Speaker 2: to withdraw more, there might be different rules and regulations,
29:42
Speaker 2: and then once you've received your determination no earlier, then
29:46
Speaker 2: you're able to apply to the ATO to release those
29:49
Speaker 2: funds and that is called a request for release, and
29:52
Speaker 2: you will actually be able to go through the process
29:54
Speaker 2: of Jess, you're absolutely correct having that put in your
29:56
Speaker 2: bank account, and then you'll have twelve months from the
29:59
Speaker 2: date of your quest to release to build or buy
30:01
Speaker 2: your first home.
30:02
Speaker 5: Can I add some points on top of that, of
30:05
Speaker 5: course you can. I think it's important to know that
30:07
Speaker 5: the reason that you do this is to effectively save
30:10
Speaker 5: tax and the government have made it very complicated.
30:13
Speaker 4: I don't know why.
30:14
Speaker 5: They just the federal government just didn't give everyone five
30:17
Speaker 5: grand or six grand to buy their first home as
30:19
Speaker 5: an additional grant.
30:20
Speaker 4: But whatever, you know what, let.
30:21
Speaker 2: Them have their plans. They've made a plan.
30:23
Speaker 3: I like it.
30:24
Speaker 2: I just don't know.
30:25
Speaker 4: It's just very complicated.
30:26
Speaker 5: So all you're doing is washing thirty grand of your
30:29
Speaker 5: deposit through superannuation, which is taxed at a lower tax.
30:32
Speaker 2: Rate, so it can feel spicy. We can pretend we are.
30:35
Speaker 5: Lord a lot of money and you'll probably save up
30:38
Speaker 5: to six thousand dollars as a maximum. So a couple
30:42
Speaker 5: of things what I would probably encourage you to do.
30:44
Speaker 5: If you're unsure about buying a house right now, keep
30:48
Speaker 5: saving and then each June just make a call. Because
30:53
Speaker 5: if you saved thirty thousand dollars and you wanted to
30:57
Speaker 5: buy a house in August of next year, you might
31:00
Speaker 5: throw fifteen thousand dollars in in June and then the
31:05
Speaker 5: other fifteen in July and then withdraw it in August.
31:09
Speaker 5: It can get tricky with auctions because they're going to
31:12
Speaker 5: want to deposit straight away, So that's my caveat. And then,
31:16
Speaker 5: as VD said, if you were just salary sacrificing fifteen
31:20
Speaker 5: thousand dollars a year into superannuation over four years, we
31:24
Speaker 5: know that sixty grand when you put the determination in,
31:27
Speaker 5: you'll only be able to use that fifty thousand. So
31:31
Speaker 5: it is complicated, But also it kind of isn't It's
31:34
Speaker 5: just extra payments. So you've put in super that you're
31:35
Speaker 5: flashing through to save on tax.
31:37
Speaker 2: Well, let's talk about I guess the difference between you
31:40
Speaker 2: know what that actually looks like. Because you said you'll
31:43
Speaker 2: save about six grand, Jess. Let's use you as an example.
31:46
Speaker 2: You put ten grand into superannuation. Ten grand inside of
31:51
Speaker 2: Super is actually worth about eight thousand, five hundred dollars
31:55
Speaker 2: because if you're fifteen percent marginal tax rate inside super,
31:59
Speaker 2: whereas if you earn between you know, ninety and one
32:02
Speaker 2: hundred and eighty thousand dollars outside of super, if you'd
32:05
Speaker 2: saved that instead, that's six thousand, three hundred dollars, So
32:09
Speaker 2: the difference there would be about two thousand, two hundred dollars.
32:13
Speaker 2: So it makes sense for a lot of people to
32:15
Speaker 2: just put your money in there, regardless of whether you
32:17
Speaker 2: can use the full fifty or not. Because for each
32:20
Speaker 2: ten grand you put in there, if you have a
32:22
Speaker 2: marginal tax rate of thirty seven percent, you're twenty six
32:25
Speaker 2: percent better off. You're going to get another twenty two
32:28
Speaker 2: hundred dollars towards your home, and that is actually that's
32:32
Speaker 2: a lot of money.
32:33
Speaker 5: Yeah, And I would be adding that if there are
32:36
Speaker 5: market fluctuations and you put ten thousand dollars in because
32:40
Speaker 5: you only wanted to have a house positive ten thousand
32:42
Speaker 5: or fifteen, and there were market fluctuations, they will let
32:46
Speaker 5: you withdraw extra of your superannuation out so you won't
32:49
Speaker 5: actually be.
32:50
Speaker 2: Penalized feel the fluctuation.
32:52
Speaker 5: If you're starting out from scratch and you've got a
32:54
Speaker 5: very low superbalance, you may choose to set up a
32:58
Speaker 5: separate account and just have it cash and investment option
33:01
Speaker 5: for your first Home Saver super scheme if it's got
33:03
Speaker 5: to do it to your comfort level, and just make
33:06
Speaker 5: sure you understand it absolutely. Your superfund should be able
33:09
Speaker 5: to talk you through these structural facts.
33:11
Speaker 2: So make use of your super fund resources because you're
33:14
Speaker 2: paying for it. But Glenn, you also have a really
33:15
Speaker 2: good YouTube video explaining that. Where can I find it?
33:18
Speaker 4: I think if you just search my millennial money First
33:21
Speaker 4: Home super Saver.
33:22
Speaker 2: On YouTube, Italy explain it all.
33:24
Speaker 5: Yeah, and we spend a good twenty minutes with diagrams.
33:28
Speaker 5: It was done before the increase to fifty thousand, but the.
33:32
Speaker 2: Marginal tax rates are the same and it's now fifty
33:34
Speaker 2: instead of the cap of thirty.
33:36
Speaker 5: Yeah, and this is the whole thing, guys like, as
33:38
Speaker 5: legislation and things change throughout the time, as long as
33:42
Speaker 5: you understand the concepts of how things work, you'll be safe.
33:46
Speaker 2: Yeah. Absolutely, So to answer that question very clearly, no,
33:50
Speaker 2: you don't have to do one before the other. You
33:52
Speaker 2: can talk to your superfund or you can just start
33:55
Speaker 2: contributing whatever works best for you. But unfortunately I do
33:58
Speaker 2: think that's all we have time for today. Georgia King,
34:01
Speaker 2: would you like to wrap the boring but important stuff already?
34:03
Speaker 7: Guys, please remember that the advice sheared on Cheese on
34:06
Speaker 7: the Money is general in nature. It does not consider
34:08
Speaker 7: out your individual circumstances. She's on the Money exists purely
34:12
Speaker 7: for educational purposes and should not be relied upon to
34:15
Speaker 7: make an investment or a financial decision. And we promise
34:18
Speaker 7: Victoria Devine and She's on the Money are authorized representatives
34:22
Speaker 7: of in Focused Securities Australia Parrietary Limited ABN four seven
34:26
Speaker 7: zero nine seven seven nine seven zero four nine AFOSL
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Speaker 7: two three six five two three.
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Speaker 2: See you on Monday, guys. Bye guys, bug LINB. See
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Speaker 2: you having there,