Latest / She's On The Money / Can You Actually Use Your Super To Buy Property? And Whose Responsibility Is It To Pay For Your Parents’ Funeral?

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Can You Actually Use Your Super To Buy Property? And Whose Responsibility Is It To Pay For Your Parents’ Funeral? · She's On The Money

• 0:00
  Speaker 1: My name Isatasha Bamblet. I'm a proud First Nations woman,
• 0:03
  Speaker 1: and I'm here to acknowledge country te glennyan Ganya, Niana,
• 0:08
  Speaker 1: Kaka Yahi and Binahwaka nian our gha in Mbini, yakarum Jar, Dominyagumika, Dumaga,
• 0:14
  Speaker 1: Ihowaka nile Waman damon Immalan Bumba bang Gadabomba in and
• 0:18
  Speaker 1: now in wakah ghana on yakarum Jar water Nadaa. Hello,
• 0:22
  Speaker 1: beautiful friends, we gather on the lands of the Aboriginal people.
• 0:26
  Speaker 1: We thank acknowledge and respect the Abiginal people's land that
• 0:29
  Speaker 1: we're gathering on today. Take pleasure in all the land
• 0:32
  Speaker 1: and respect all that you see. She's on the Money
• 0:35
  Speaker 1: podcast acknowledges culture, country, community and connections, bringing you the tools,
• 0:42
  Speaker 1: knowledge and resources for you to thrive.
• 0:45
  Speaker 2: She's on the Money. She's on the Money. Friday is
• 0:51
  Speaker 2: our favorite day of the week because it's when we
• 0:53
  Speaker 2: get our team together and celebrate you ow incredible. She's
• 0:56
  Speaker 2: on the Money community today, Mis Jessic Greed she is
• 0:59
  Speaker 2: going to be sharing some of our favorite community money wins.
• 1:02
  Speaker 2: Miss Beck Sayed is going to be sharing your brook
• 1:04
  Speaker 2: tips of the Week, and we'll be helping to answer
• 1:06
  Speaker 2: a money dilemma that asks us the question should you
• 1:08
  Speaker 2: use a self managed super fun to buy property? And
• 1:12
  Speaker 2: a DM that is leading to our inboxes about whose
• 1:15
  Speaker 2: responsibility is it to pay for your parents' funeral costs?
• 1:19
  Speaker 3: Oh?
• 1:20
  Speaker 2: Is it them?
• 1:21
  Speaker 3: Or is it you?
• 1:22
  Speaker 2: I feel like that's a hard one to answer. Yeah,
• 1:25
  Speaker 2: I thought the best way to dive back into a
• 1:27
  Speaker 2: Friday episode would be with a five at start review.
• 1:31
  Speaker 2: Would you like to hear it?
• 1:32
  Speaker 4: Absolutely please?
• 1:33
  Speaker 2: So we've got this one. It is from our friend Holly,
• 1:36
  Speaker 2: not actually our friend, just our community member. She's just
• 1:38
  Speaker 2: a friend we haven't met yet. Shout out to Jess.
• 1:42
  Speaker 2: I love this podcast. I'm purely here as not enough
• 1:45
  Speaker 2: reviews do justice for the legend that is Miss Jessicarucci
• 1:48
  Speaker 2: pronounced in Victoria's voice. Of course, she is legit incredible,
• 1:54
  Speaker 2: ridiculously well spoken and intelligent. I mean, awe of how
• 1:58
  Speaker 2: well balanced her views and appinions are. And I'm not
• 2:01
  Speaker 2: even gonna lie. Even at work, I try to channel
• 2:03
  Speaker 2: my inner jess Arici as She's just beyond professional and approachable.
• 2:08
  Speaker 2: So Jess, this is for you. You are five stars
• 2:12
  Speaker 2: and I guess so is this podcast. Oh my god,
• 2:15
  Speaker 2: I could not agree more.
• 2:17
  Speaker 5: Guys, Holly, you are my queen. I love you so much.
• 2:20
  Speaker 5: That's literally the nice thing anyone ever said about me.
• 2:22
  Speaker 5: Thank you.
• 2:23
  Speaker 2: Suggest you are five stars. I'm going to agree. I'm
• 2:26
  Speaker 2: going to put that in my slack bio just five stars.
• 2:29
  Speaker 3: Absolutely.
• 2:31
  Speaker 5: Oh that's so nice. It's such a joy to know
• 2:34
  Speaker 5: that people listen and that we're doing something and helping them.
• 2:37
  Speaker 5: And I don't really feel like I'm that good or special.
• 2:39
  Speaker 5: That's so nice of you to say, she sit down.
• 2:42
  Speaker 5: That adds to your charm. Get in the bin.
• 2:49
  Speaker 2: Let's move on from that, because I think that Beck
• 2:51
  Speaker 2: and I could go on all day about how much
• 2:53
  Speaker 2: we like Jess. But it is time for that part
• 2:55
  Speaker 2: of Friday Drinks where you guys get to ask us
• 2:58
  Speaker 2: one question that you are dying to know, and it
• 3:00
  Speaker 2: can be literally about anything. This week's question comes from Nicole,
• 3:04
  Speaker 2: who wants to know what is your number one tip
• 3:08
  Speaker 2: for soul traders? And you guys are both sole traders
• 3:13
  Speaker 2: true indeed were qualified to answer question.
• 3:17
  Speaker 4: Oh my god. Okay, Well, my only thing I think
• 3:21
  Speaker 4: maybe would be to start taking note of every single
• 3:25
  Speaker 4: thing you buy and then claiming on tax.
• 3:27
  Speaker 2: And that's all I have because I don't know thing
• 3:30
  Speaker 2: you buy in your just day to day life, like
• 3:31
  Speaker 2: brown onions.
• 3:32
  Speaker 4: Everything, brown onions everything, Because I feel like if you're
• 3:35
  Speaker 4: a sole trader, you can really get away with claiming
• 3:36
  Speaker 4: some random things.
• 3:38
  Speaker 5: You know, and I could be wrong, and I would
• 3:40
  Speaker 5: definitely make sure you speak to a tax experts anything
• 3:42
  Speaker 5: that you are trying to Yes, yes, I.
• 3:45
  Speaker 4: Don't ever save the tax that I should be paying
• 3:47
  Speaker 4: on things, which is like not good. So I think
• 3:48
  Speaker 4: that my only advice is to save what you buy
• 3:51
  Speaker 4: in case you can claim it.
• 3:53
  Speaker 2: You sneaky suspicion. I know what jess is is. Yes,
• 3:58
  Speaker 2: we'll be talking about this the other day.
• 4:00
  Speaker 5: I think we were, Yes, I is your invoicing is
• 4:04
  Speaker 5: gonna get your invoicing sorted? And I would highly recommend
• 4:09
  Speaker 5: Solo by Moyob not sponsored. This is gonna sound I
• 4:12
  Speaker 5: can add because we were talking about it, and when
• 4:14
  Speaker 5: I was telling you, you were like you sounded like
• 4:16
  Speaker 5: you we.
• 4:17
  Speaker 2: Are literally good girl? Are they paying you? Because they
• 4:20
  Speaker 2: should be so.
• 4:21
  Speaker 5: MIOB is obviously like a large accounting software, but they
• 4:24
  Speaker 5: have a separate program called Solo which is specifically designed
• 4:28
  Speaker 5: for soul traders, and the reason to do so fantastic
• 4:31
  Speaker 5: is I have sent every invoice to every client this
• 4:34
  Speaker 5: financial year from my phone in like five seconds. It's
• 4:37
  Speaker 5: so easy, it's so professional. It auto follows people up,
• 4:40
  Speaker 5: which is a big one for me because I feel
• 4:42
  Speaker 5: a bit awkward being like, hey, you haven't made my invoice,
• 4:46
  Speaker 5: so I love like you funny how you'll do that
• 4:48
  Speaker 5: for me though, Yeah, absolutely, But when it's for me
• 4:51
  Speaker 5: follow up an invoice ceremony like a hound, she'll be like, no,
• 4:55
  Speaker 5: that's actually unacceptable.
• 4:56
  Speaker 2: When it's her, if you're like, it's fine, don't worry
• 5:00
  Speaker 2: about it.
• 5:00
  Speaker 3: It was on me.
• 5:01
  Speaker 2: Yeah, So it's so good.
• 5:02
  Speaker 5: You just like toggle the thing. It does it for you.
• 5:04
  Speaker 5: And the best bit is it's twelve dollars for your
• 5:07
  Speaker 5: first twelve months. That was when I want it, and
• 5:09
  Speaker 5: I double checked it this morning.
• 5:11
  Speaker 2: Because you were like, I know, Victoria is gonna.
• 5:13
  Speaker 5: One hundred percent. It is still twelve dollars for your
• 5:15
  Speaker 5: first twelve months, which is unbelievably cheap, and even when
• 5:17
  Speaker 5: you're paying full price, it's so much less expensive than
• 5:20
  Speaker 5: like a big fancy accounting software, which, like for she's
• 5:23
  Speaker 5: on the money. We need the big fancy accounting software.
• 5:25
  Speaker 5: But for me as an individual, that costs me.
• 5:28
  Speaker 2: It's not cheap, But but that scares small players off.
• 5:32
  Speaker 2: You're like, oh, it's going to be like sixty or
• 5:34
  Speaker 2: seventy bucks a month. That's astronomical, like not in your
• 5:37
  Speaker 2: first year.
• 5:38
  Speaker 5: Yeah, And it's just nice having it all in somewhere
• 5:40
  Speaker 5: because my first few years I was just making my
• 5:42
  Speaker 5: invoices in like a microsoftware document, which is fine and
• 5:45
  Speaker 5: does the job, but then it's hard to keep track
• 5:47
  Speaker 5: of everything, what's been reconciled, what hasn't. You can like
• 5:50
  Speaker 5: connect it to your bank account and it can pull
• 5:52
  Speaker 5: information if you want it to. Like, it's quite comprehensive. Yeah,
• 5:55
  Speaker 5: for the price and for the fact that it is
• 5:57
  Speaker 5: like a segmented product. I guess. So that is my recommendation.
• 6:00
  Speaker 5: Get invoices like organized, like whether you're using a program
• 6:03
  Speaker 5: or not, because come tax time, it's just such a
• 6:06
  Speaker 5: nightmare if you leave it. I used to always leave
• 6:08
  Speaker 5: it and then it's just so difficult. And if you
• 6:10
  Speaker 5: want a recommendation, that would be my one.
• 6:13
  Speaker 2: I like that, Yeah, she's being paid under the table.
• 6:15
  Speaker 2: What do you reckon if it is great. It's my
• 6:21
  Speaker 2: recommendation would be it's so boring. I've said this before.
• 6:24
  Speaker 2: It's separate bank accounts. Don't use your personal bank account
• 6:28
  Speaker 2: for your small business miss becsied have a separate bank
• 6:33
  Speaker 2: account so that even if you don't have cash to
• 6:36
  Speaker 2: put in it right now, and you need to put
• 6:37
  Speaker 2: all your payments through at least then you can track
• 6:40
  Speaker 2: how much money you're transferring to the business, even if
• 6:42
  Speaker 2: it's like thirty dollars here or there to buy supplies
• 6:45
  Speaker 2: or whatnot. Like, have a separate bank account so that
• 6:48
  Speaker 2: it's all in one place. Yeah, And then if you
• 6:50
  Speaker 2: want to take it a step further, which I do
• 6:52
  Speaker 2: want you to take it a step further, I want
• 6:54
  Speaker 2: you to have three different bank accounts so that you
• 6:56
  Speaker 2: have all of the transactions. So that's one account and
• 7:00
  Speaker 2: that's where the money comes in, and it's where the
• 7:02
  Speaker 2: money goes out. That's where clients pay you. That's really good.
• 7:05
  Speaker 2: We then want to have a tax account where we
• 7:08
  Speaker 2: transfer all of the money that is for tax, so
• 7:10
  Speaker 2: that it's just like set off to the side, so
• 7:13
  Speaker 2: that we know we're like, that's not our money. And
• 7:15
  Speaker 2: too many times as small business owners, money comes in
• 7:18
  Speaker 2: and you're like, oh, well that was only one hundred
• 7:20
  Speaker 2: dollars invoice, so that was only a thousand dollar invoice.
• 7:22
  Speaker 2: I'll just work out tax later, no worries. Later comes
• 7:24
  Speaker 2: and you've done that so many times that you're up
• 7:26
  Speaker 2: for a big tax bill and you don't have the
• 7:27
  Speaker 2: cash saved, so we just take it out the second
• 7:30
  Speaker 2: it comes in. And personally I always transfer at least
• 7:35
  Speaker 2: thirty percent, if not thirty five percent, because I'd prefer
• 7:39
  Speaker 2: it tax time to get my tax bill, pay my
• 7:41
  Speaker 2: tax and be like, oh, there's money left in the kiddy,
• 7:44
  Speaker 2: instead of having not enough and being like, oh, I
• 7:47
  Speaker 2: only transferred what I thought was going to be the
• 7:49
  Speaker 2: bare minimum, and like that's not cutting it. And the
• 7:52
  Speaker 2: third account is your business savings account, because not everyone
• 7:56
  Speaker 2: wants to take their cash straight out of their business,
• 7:59
  Speaker 2: and lucky position we don't. It can sit over to
• 8:02
  Speaker 2: the side and that can be our buffer, it can
• 8:05
  Speaker 2: be our emergency fund. We can see how much cash
• 8:07
  Speaker 2: we have that's not operating capital. And whilst you might
• 8:11
  Speaker 2: be just starting your small business journey and you're like, oh,
• 8:14
  Speaker 2: o'reading capital, who are you? It happens really quickly, like
• 8:18
  Speaker 2: money will start to hopefully pile up. And the reason
• 8:21
  Speaker 2: it will pile up is because you have a system
• 8:23
  Speaker 2: in place and it's not just falling through the cracks.
• 8:25
  Speaker 2: You're not just you know, seeing extra money in your
• 8:27
  Speaker 2: account and being like, oh, I'm going to get grilled
• 8:29
  Speaker 2: this week, and it just goes away real quick and
• 8:31
  Speaker 2: you're like, hold on, this business is making no money.
• 8:34
  Speaker 2: But come tax time, the taxman is like, Beck, you
• 8:36
  Speaker 2: haven't actually a lot of money and you've just thought
• 8:39
  Speaker 2: it was spendable. So that would be my hot tip
• 8:42
  Speaker 2: is just set up your bank accounts.
• 8:44
  Speaker 5: A bit of structure goes all the way.
• 8:46
  Speaker 2: That's right. Well, I feel like those are three hot tips.
• 8:50
  Speaker 2: You're welcome, guys, And if you've got a question that
• 8:52
  Speaker 2: you want us to answer, please leave it in the
• 8:54
  Speaker 2: comments here on Spotify if you're on Spotify otherwise, shoot
• 8:58
  Speaker 2: us a message. Just be brazen, be like, I want
• 9:00
  Speaker 2: you to answer this on your Friday drinks and we'll
• 9:02
  Speaker 2: come for it now. Miss jess Arici. When it comes
• 9:06
  Speaker 2: to community money wins and or confessions, what have.
• 9:09
  Speaker 5: You got Furstday this week? I've got one from Kayler,
• 9:11
  Speaker 5: which she said is a money win that's turned into
• 9:13
  Speaker 5: a money loss. She bought a uv gel nail kit
• 9:16
  Speaker 5: and has been doing them successfully for herself for the
• 9:18
  Speaker 5: past three times. On her fourth go though, a little
• 9:21
  Speaker 5: bit of the acetone splashed unexpectedly from the container onto
• 9:25
  Speaker 5: her partner's concrete dining table. No, she had a towel
• 9:28
  Speaker 5: directly under her hands to catch any drips, but she
• 9:31
  Speaker 5: said it sprayed off the side. It eroded the finish
• 9:33
  Speaker 5: in the ceiling, and she's now going to have to
• 9:35
  Speaker 5: pay to get it sand and polished, and it's going
• 9:37
  Speaker 5: to cost quite a bit of money. So she just said, persa,
• 9:40
  Speaker 5: everybody cover the entire workspace just to make sure you
• 9:43
  Speaker 5: don't have any little incidents, which is very good advice.
• 9:46
  Speaker 2: Okay, but even if it was.
• 9:48
  Speaker 4: Like my laptop and my partner broke it, I'd be like,
• 9:50
  Speaker 4: that's okay, I'll pay for that.
• 9:52
  Speaker 2: You break it, you buy it. Oh my god, is
• 9:56
  Speaker 2: it mean?
• 9:56
  Speaker 3: I think?
• 9:57
  Speaker 5: So this is what was the dilemma the TV and
• 10:00
  Speaker 5: the ladder when we all had very different opinions. Oh yeah, anyway,
• 10:04
  Speaker 5: that's a really good appen but.
• 10:05
  Speaker 2: That's a different story.
• 10:06
  Speaker 3: Then.
• 10:07
  Speaker 2: I think I'm triggered by this because growing up I
• 10:10
  Speaker 2: loved to you know, play nail polish and cosmetics. And
• 10:14
  Speaker 2: my dad would always be like, do not have that
• 10:17
  Speaker 2: stuff open in your room? Rah rah, yeah, and he
• 10:19
  Speaker 2: would warn us. And I'm assuming that this person maybe
• 10:22
  Speaker 2: has been warned, like, don't have acetone and stuff on
• 10:24
  Speaker 2: the table, Like it's a concrete table. You can't do this, rarah.
• 10:27
  Speaker 2: If you've been warned and then you do it anyway
• 10:29
  Speaker 2: and you didn't properly protect it, and then sure then
• 10:32
  Speaker 2: it happened. That does feel different. Yeah, it's not like
• 10:35
  Speaker 2: a like it is an accident and it really sucks,
• 10:38
  Speaker 2: but like you did it on somebody else's thing. You
• 10:41
  Speaker 2: weren't there helping them or anything. It wasn't like you
• 10:43
  Speaker 2: came over and I was helping beck and I accidentally
• 10:45
  Speaker 2: spilled a coffee on a laptop while explaining budgeting or
• 10:48
  Speaker 2: something like obviously I'd pay for that, don't worry. But
• 10:51
  Speaker 2: like that would be a different conversation because such a
• 10:54
  Speaker 2: genuine accident as opposed to oh yeah, so I didn't
• 10:57
  Speaker 2: probably protect your table and then I opened a bottle
• 10:59
  Speaker 2: of assid tonal.
• 11:01
  Speaker 5: Fat of acid.
• 11:05
  Speaker 2: In your name.
• 11:06
  Speaker 5: Yeah, that dilemma just takes me back.
• 11:08
  Speaker 2: Funny.
• 11:09
  Speaker 5: Next, I've got a buddy win though, from Jack, who said,
• 11:11
  Speaker 5: I finally got to use my blue Light Card, which
• 11:13
  Speaker 5: is a program that gives discounts for she said healthcare workers,
• 11:16
  Speaker 5: but it's actually like a lot of frontline workers. My
• 11:19
  Speaker 5: daughter needed a new phone wanted to spot from Apple
• 11:21
  Speaker 5: to Samsung. She couldn't train her old phone in because
• 11:23
  Speaker 5: it was broken, so she used blue Light Card, which
• 11:26
  Speaker 5: gave her a discount code, and then a Samsung special
• 11:29
  Speaker 5: applied on top of that because you can often stack them,
• 11:32
  Speaker 5: so she was able to get the newest phone, EarPods,
• 11:33
  Speaker 5: and a watch for the same price that would have
• 11:35
  Speaker 5: cost to get just a new phone from Apple.
• 11:37
  Speaker 2: Money Way.
• 11:39
  Speaker 5: Next, I've got a money in from Shari, who said, Witchy,
• 11:42
  Speaker 5: you have the best rewards program ever. They sent me
• 11:45
  Speaker 5: twenty dollars rewards for new season clothes, and then they
• 11:47
  Speaker 5: sent me another twenty dollars reward because they hadn't seen
• 11:49
  Speaker 5: me for a while. She said she needed work shorts.
• 11:52
  Speaker 5: They were on sale from one hundred and thirty to fifty.
• 11:55
  Speaker 5: Then she used the reward, so it ended up only
• 11:57
  Speaker 5: costing her nine to ninety five dollars out of pocket
• 12:00
  Speaker 5: and she doesn't have to pay for postage. Because she's
• 12:01
  Speaker 5: a Silver Rewards member stacking them up. I know she's
• 12:08
  Speaker 5: really had a role, very well done. Next, I've got
• 12:10
  Speaker 5: a money in from Chassis, who said she saved twenty
• 12:13
  Speaker 5: dollars on fuel by using the free petrol Spy app.
• 12:16
  Speaker 5: She scouted where the cheapest fuel was and then decided
• 12:19
  Speaker 5: to lock in on her seven eleven app. When she
• 12:21
  Speaker 5: did her usual market visit, she got the lowest price
• 12:24
  Speaker 5: and it was twenty five cents per leater, cheaper than
• 12:27
  Speaker 5: other places. Nice and the locking last for seven days,
• 12:30
  Speaker 5: so she did again immediately after filling up.
• 12:32
  Speaker 2: Amazing.
• 12:34
  Speaker 4: I love, first of all, petrol Spy, but also this
• 12:37
  Speaker 4: bloody fuel lock thing.
• 12:39
  Speaker 5: Fuel is so good, I know, and I think we
• 12:42
  Speaker 5: all need to be using it because it seems like
• 12:44
  Speaker 5: there's gonna all the warnings around shortages of oil and
• 12:47
  Speaker 5: things like that with everything happening in the Middle East
• 12:49
  Speaker 5: at the moment. So I would highly recommend everybody if
• 12:52
  Speaker 5: you're not using a fuel lock or a petrol spy
• 12:55
  Speaker 5: or something. Everyone's kind of predicting prices are really going
• 12:59
  Speaker 5: to elevate, so it's going to pay to shop around.
• 13:01
  Speaker 2: I think. Yeah.
• 13:02
  Speaker 5: And then lastly, this week, I have a money when
• 13:05
  Speaker 5: from a curse who said I got serious about my
• 13:07
  Speaker 5: debt at the end of last year. This week I
• 13:09
  Speaker 5: paid off my credit card and I'm on track to
• 13:11
  Speaker 5: be debt free by May.
• 13:12
  Speaker 2: Amazing.
• 13:14
  Speaker 5: That's amazing, that's great.
• 13:17
  Speaker 2: I love it. Well, that was a good little wrap up, Jess,
• 13:21
  Speaker 2: Miss beckses, what are your broke tips?
• 13:24
  Speaker 4: Okay, so this week, as per, I have two from
• 13:27
  Speaker 4: the community. The first one comes from Ellie, who says
• 13:30
  Speaker 4: a Dyson stick vacuum stopped working. Instead of buying a
• 13:33
  Speaker 4: new one for six hundred dollars, we bought a new
• 13:35
  Speaker 4: battery for fifty eight dollars, which is a great idea.
• 13:38
  Speaker 4: It's like new, she said. She used Ossie battery dot com.
• 13:41
  Speaker 4: But there are others too, so I suppose you could
• 13:44
  Speaker 4: get like, I don't know, like I've got a little roboback.
• 13:46
  Speaker 2: I'm sure if it broke, it's me. It feels very
• 13:49
  Speaker 2: time relevant because this week my Dyson stickfax head got broken.
• 13:55
  Speaker 2: Oh that was my toddler's fault, but like cracked, you
• 13:58
  Speaker 2: know how they're plastic, And I was like, oh, oh
• 14:00
  Speaker 2: my goodness, I'll buy a new one. And I look
• 14:01
  Speaker 2: it up and because I've got like I think, hold on,
• 14:03
  Speaker 2: I know what I've got because I looked it up.
• 14:05
  Speaker 2: I've got the the eleven, absolute gorgeous. But she's old. Yeah,
• 14:09
  Speaker 2: like she's at least five years old, but I'm not
• 14:11
  Speaker 2: ready to give her up. Like she's still good, but
• 14:13
  Speaker 2: I need the new head. And I'm not paying two
• 14:16
  Speaker 2: hundred dollars for a new thing for my vacuum that's
• 14:19
  Speaker 2: five years old. That makes no sense. Ali Express came
• 14:22
  Speaker 2: in clutch. Has it arrived yet No, But it was
• 14:25
  Speaker 2: twenty one dollars and it had like five thousand and
• 14:28
  Speaker 2: five star reviews of people being like, this is exactly
• 14:31
  Speaker 2: the same Rarah, So twenty one dollars and I have
• 14:33
  Speaker 2: a new vacuum head coming. That then inspired me to
• 14:36
  Speaker 2: look up other parts for my other appliances at home.
• 14:39
  Speaker 2: And sorry, Bissel, but your filters are two damn expensive.
• 14:44
  Speaker 2: I bought like five to five dollars on Ali Express.
• 14:47
  Speaker 2: They're coming. I'm going to trial out those, so talk
• 14:49
  Speaker 2: to me about this later. But I did go down
• 14:51
  Speaker 2: a deep dive of all of the reviews. Everyone's this
• 14:54
  Speaker 2: is really good.
• 14:55
  Speaker 5: So yeah, I get my little brushy things for my
• 14:58
  Speaker 5: room bath from Amazon there you go. It's amazing what
• 15:01
  Speaker 5: you can do, like it's not broken, like to see
• 15:04
  Speaker 5: if you can fix that.
• 15:04
  Speaker 4: Yes, completely agreat that's cheap market products. I don't know
• 15:09
  Speaker 4: what it is about, like vacuum clean is specifically. I
• 15:11
  Speaker 4: get so like attached to them, like they're humans. And
• 15:14
  Speaker 4: I could hear you guys like seeing she and like
• 15:16
  Speaker 4: I'm like me too.
• 15:17
  Speaker 2: I feel so like my vacuum attached to the friends.
• 15:21
  Speaker 2: I'll tell you about my way back. Oh okay.
• 15:26
  Speaker 4: This sex one comes from Carli, who says you can
• 15:28
  Speaker 4: swap Telsterra points for wools and Coal's vouches.
• 15:31
  Speaker 2: That's so cool.
• 15:32
  Speaker 5: That's really good.
• 15:32
  Speaker 4: I got three hundred dollars worth and I'm very happy.
• 15:35
  Speaker 4: And I can't tell if she means she got three
• 15:37
  Speaker 4: hundred dollars worth of Colson will Wars vouches or she
• 15:39
  Speaker 4: got three hundred dollars worth of Testra points, but anyway,
• 15:41
  Speaker 4: either way, that sounds incredible.
• 15:43
  Speaker 2: Thank you, Carl. And my one for this week.
• 15:46
  Speaker 4: There is an initiative through Brotherhood of Saint Lawrence called
• 15:50
  Speaker 4: Savor Plus. If you have a healthcare card and received
• 15:53
  Speaker 4: send link and you're at UNI or you have a
• 15:57
  Speaker 4: child in school through the program. If you say five
• 15:59
  Speaker 4: hund dollars into an AZT account, they will match it
• 16:02
  Speaker 4: with another five hundred dollars. What then the money can
• 16:05
  Speaker 4: be used.
• 16:06
  Speaker 2: For school stuff. That's so good to the people who
• 16:09
  Speaker 2: need it the most.
• 16:11
  Speaker 4: Yes, exactly, And that make me think about Dolomites And
• 16:15
  Speaker 4: if anyone knows where they went, let me know, because
• 16:18
  Speaker 4: I'm really broke right now, and if I can find
• 16:20
  Speaker 4: my dollar year account Dolarmites account, you didn't.
• 16:23
  Speaker 2: Have at least three dollars. Sorry Dolomites. Also sorry to
• 16:28
  Speaker 2: us because where where where is that money you got?
• 16:30
  Speaker 2: That's incredible you got done. Anyway, let's go to a
• 16:33
  Speaker 2: really quick break because on the flip side, we are
• 16:35
  Speaker 2: going to go into a community dilemma because a lot
• 16:37
  Speaker 2: of you have questions about property in SMSF and we're
• 16:40
  Speaker 2: going to be talking about parents' general costs. Who's meant
• 16:44
  Speaker 2: to foot the bill? Don't go anywhere.
• 16:49
  Speaker 5: Welcome back, everybody. Let's take a listen to this week's
• 16:51
  Speaker 5: money dilemma.
• 16:54
  Speaker 2: Hi, there, have you got a money dilemma you just
• 16:56
  Speaker 2: can't solve. The Sheese on the Money Team is here
• 16:59
  Speaker 2: to help. Every week we tackle your dilemmas both big
• 17:02
  Speaker 2: and small to answer your most burning money, career and
• 17:05
  Speaker 2: life questions. To get involved, simply head to our website
• 17:08
  Speaker 2: and leave us a short voice recording and you might
• 17:10
  Speaker 2: just find yourself on the show. Now, let's take a
• 17:13
  Speaker 2: listen to this week's money dilemma.
• 17:17
  Speaker 3: Hi, team, I was hoping you'd be able to talk
• 17:19
  Speaker 3: about self managed super funds. I've heard of people who've
• 17:23
  Speaker 3: managed to purchase investment properties before preservation age and have
• 17:27
  Speaker 3: access to that money. I'm wondering how that works, what
• 17:30
  Speaker 3: the logistics are, and potentially what the benefits of a
• 17:33
  Speaker 3: self managed superfund are, and whether or not it's only
• 17:36
  Speaker 3: really your benefit if you're older, or whether it's something
• 17:39
  Speaker 3: worth looking into now at a younger age. For context,
• 17:43
  Speaker 3: I'm twenty five. I've only had a few years of
• 17:47
  Speaker 3: income contributing to my super So wondering if it's something
• 17:50
  Speaker 3: that's worth looking into now or considering further down the line.
• 17:53
  Speaker 2: Thank mister Sagricci. How do I feel about SMSs.
• 17:57
  Speaker 5: I'm going to take you stap and say not a fan?
• 18:00
  Speaker 2: Take I why? I know? Not a fan? So n
• 18:05
  Speaker 2: SOMSF is a self managed super fund and it's basically
• 18:08
  Speaker 2: where you take all of the money that is in
• 18:10
  Speaker 2: a retail fund and you move it to You could
• 18:13
  Speaker 2: honestly have it all just in a bank account. You
• 18:16
  Speaker 2: could have it in cash, or you pick your own investments,
• 18:19
  Speaker 2: but essentially you become the manager of that super fund,
• 18:22
  Speaker 2: so no one's picking your investments. You have one hundred
• 18:25
  Speaker 2: percent control. And for a lot of people that sounds
• 18:27
  Speaker 2: so attractive because they're like, well, I can do it myself,
• 18:31
  Speaker 2: and a lot of the drawer card is people will say,
• 18:33
  Speaker 2: oh my gosh, super fees is so much like it
• 18:35
  Speaker 2: makes sense to run it myself, Like I'm better at
• 18:38
  Speaker 2: picking I could just do X, y Z. A lot
• 18:41
  Speaker 2: of people have this idea that buying property inside super
• 18:45
  Speaker 2: is really easy and a really good idea, and it
• 18:47
  Speaker 2: can be quite romanticized, right, like buying property in this
• 18:50
  Speaker 2: economy so hard. The idea that you might have I
• 18:54
  Speaker 2: don't know, fifty or one hundred thousand dollars in your
• 18:56
  Speaker 2: super You're like, why can't I access that for property,
• 18:58
  Speaker 2: Like it's a good question, but the reality of the
• 19:01
  Speaker 2: situation is that that is for your retirement and right now,
• 19:06
  Speaker 2: if you're in an Australian super or a UNI super
• 19:08
  Speaker 2: or a HOST plus or a hestyle or whatever you're
• 19:10
  Speaker 2: in that is going to be well diversified. It is
• 19:14
  Speaker 2: gonna be in a fund that has been picked for you,
• 19:18
  Speaker 2: whether that is you know, the balanced portfolio that you
• 19:20
  Speaker 2: probably got when you turned fourteen nine months and got
• 19:23
  Speaker 2: your first job, or the growth portfolio you picked because
• 19:26
  Speaker 2: you've been listening to shoes on the money. Did you
• 19:28
  Speaker 2: risk profile? But it's going to be well diversified, and
• 19:32
  Speaker 2: that is a good position to be in because you
• 19:34
  Speaker 2: are hedging the risk of any different economic downturns. If
• 19:38
  Speaker 2: gold's not performing, that's fine, because you've got some tech.
• 19:41
  Speaker 2: If tech's not performing, you've got some health care. Like
• 19:43
  Speaker 2: there's lots going on. If you take all of that
• 19:45
  Speaker 2: cash out and put it into one asset, I eat
• 19:48
  Speaker 2: a house. What happens if property isn't performing. We know
• 19:52
  Speaker 2: that property is unable to perform in the way that
• 19:55
  Speaker 2: it has over the last forty years and be sustainable.
• 19:58
  Speaker 2: You can't look at that and go that reliable predictor
• 20:01
  Speaker 2: of what's going to happen into the future because it's
• 20:02
  Speaker 2: just not. Yes, we are seeing property markets go crazy. Yes,
• 20:06
  Speaker 2: you might see that as a deposit, but it's a
• 20:09
  Speaker 2: lot more complicated than that. Now. I haven't been a
• 20:12
  Speaker 2: financial advisor for a number of years now, but when
• 20:15
  Speaker 2: I was a financial advisor, I would always say to people,
• 20:18
  Speaker 2: if you don't have two hundred thousand dollars in SUPER,
• 20:21
  Speaker 2: I wouldn't even consider a self managed super fund. And
• 20:25
  Speaker 2: now I would confidently say, if you don't have half
• 20:28
  Speaker 2: a million dollars in your super, I wouldn't consider it.
• 20:31
  Speaker 2: And the reason is because legislation has tightened up. The
• 20:35
  Speaker 2: compliance of these funds have tightened up because lots of
• 20:37
  Speaker 2: people were kind of taking the mickey, and so the people.
• 20:40
  Speaker 5: Say before on the show, oh I bought a burken
• 20:42
  Speaker 5: Oh yeah, I bought some art or whatever.
• 20:44
  Speaker 2: With my I did whatever I wanted. Some people are
• 20:46
  Speaker 2: getting it out and saying that they're spending it on
• 20:48
  Speaker 2: one thing and doing something else. So the government is
• 20:50
  Speaker 2: cracking down because it's for your financial future, like the
• 20:54
  Speaker 2: government wants you to have super. In fact, you want
• 20:57
  Speaker 2: you to have SUPER so that you could be comfortable.
• 20:59
  Speaker 2: But the reality is compliance has increased and whilst you
• 21:02
  Speaker 2: might not have to pay fees for fund management, you
• 21:05
  Speaker 2: have to pay auditing fees every single year. For an
• 21:07
  Speaker 2: accountant to go through it and audit your account now
• 21:11
  Speaker 2: and SMSF fees sit between anywhere. Honestly, you could probably
• 21:15
  Speaker 2: get a cheap accountant for five and a half thousand
• 21:17
  Speaker 2: dollars each year. All the way up to ten thousand
• 21:19
  Speaker 2: dollars is quite normal for what I have seen and
• 21:22
  Speaker 2: know is what is charged. Then what are you going
• 21:25
  Speaker 2: to do? Invest it into an ETF yourself. You're going
• 21:27
  Speaker 2: to be paying fees on that ETF anyway, You're going
• 21:30
  Speaker 2: to be paying platform fees anyway. Are you going to
• 21:33
  Speaker 2: sort your own insurances out? Like there's just so much
• 21:35
  Speaker 2: to it and then I'm going to strip the romance
• 21:39
  Speaker 2: off it. So I own a mortgage braking company called
• 21:42
  Speaker 2: Zela Money and we do this all the time. Yes,
• 21:45
  Speaker 2: I do have my team right loans for property inside
• 21:48
  Speaker 2: SMSF It is very popular. But when people are purchasing
• 21:53
  Speaker 2: them or purchasing property inside smsfs, they from experience, they
• 21:58
  Speaker 2: are usually business owners purchase commercial property to then lease
• 22:01
  Speaker 2: back to themselves or back to their own businesses. I'm
• 22:04
  Speaker 2: not really seeing a lot of people purchase residential property
• 22:09
  Speaker 2: because the yield on residential property just isn't there anymore.
• 22:13
  Speaker 2: Like the average property price in Melbourne and Sydney is
• 22:16
  Speaker 2: a million dollars, and your rental yield is going to
• 22:20
  Speaker 2: be like less than four or five percent, Like, you're
• 22:23
  Speaker 2: not going to be able to make back more than
• 22:25
  Speaker 2: what your mortgage us is not going to put you
• 22:27
  Speaker 2: in a better position. And at that point, even if
• 22:30
  Speaker 2: you did buy the bullet and buy a residential property,
• 22:32
  Speaker 2: you are putting yourself in a position where you're betting
• 22:35
  Speaker 2: that that property is going to increase in value enough
• 22:38
  Speaker 2: to then sell it to then be able to fund
• 22:41
  Speaker 2: your financial future.
• 22:42
  Speaker 3: Right.
• 22:43
  Speaker 2: And now, if you're looking at it and going, why
• 22:45
  Speaker 2: can't I spend that money on my first home, Well,
• 22:48
  Speaker 2: if you use your money inside your superannuation, you're not
• 22:51
  Speaker 2: allowed to use that property.
• 22:53
  Speaker 3: Yeah.
• 22:53
  Speaker 5: So I was going to say, it's going to be
• 22:54
  Speaker 5: an investment, right, It's going to be an.
• 22:55
  Speaker 2: Investment, and it has to be a one hundred percent
• 22:58
  Speaker 2: investment asset. You can't buy a property and then use
• 23:01
  Speaker 2: it on the weekends. It has to be one hundred
• 23:04
  Speaker 2: percent leased out one hundred percent of the time. You
• 23:07
  Speaker 2: can't use it personally. Yeah, Okay, that defeats the purpose
• 23:11
  Speaker 2: of why I think most people in our community are
• 23:13
  Speaker 2: interested in using their superfund money to get into property.
• 23:17
  Speaker 2: So not only is it going to be more expensive
• 23:20
  Speaker 2: in the long run, we are also looking at a
• 23:22
  Speaker 2: situation where we can't guarantee that property price is going
• 23:25
  Speaker 2: to increase enough to make sure that your financial future
• 23:28
  Speaker 2: is secure by making this decision. But then on top
• 23:30
  Speaker 2: of that, you think you're saving fees when in reality
• 23:34
  Speaker 2: we know that basic ETFs outperform self managed super funds
• 23:40
  Speaker 2: and self managed investments in general. Every time, like a
• 23:45
  Speaker 2: basic ETF is going to run rings around you in
• 23:47
  Speaker 2: the long term. And you, for some reason, and this
• 23:50
  Speaker 2: is maybe me being a little bit judgmental of the situation, you,
• 23:53
  Speaker 2: for some reason think that you can pick a better,
• 23:56
  Speaker 2: more diversified investment portfolio than the fund manager, whose entire
• 24:01
  Speaker 2: role and probably personality is made up of this.
• 24:04
  Speaker 5: Yeah, this is the only insight or comment that I
• 24:06
  Speaker 5: have to make on this, because it's like, so how
• 24:08
  Speaker 5: far off my bubble. But it's to me the equivalent
• 24:11
  Speaker 5: of like the average person, Like if I said, oh,
• 24:13
  Speaker 5: I'm going to set up a self managed super fun
• 24:15
  Speaker 5: because I think I can do a better job, it's
• 24:16
  Speaker 5: the equivalent of me saying, oh, I could perform ankle
• 24:19
  Speaker 5: surgery better than my doctor. But yeah, I understand that
• 24:23
  Speaker 5: there is so much knowledge out there, and I'm sure
• 24:25
  Speaker 5: that there are lay people who do have a huge
• 24:28
  Speaker 5: amount of information. I don't want to belittle those people.
• 24:31
  Speaker 5: But for the average person, even if you have an
• 24:34
  Speaker 5: elevated interest in finances, even if it is something that
• 24:37
  Speaker 5: you've listened to heaps of podcasts on or like worked
• 24:39
  Speaker 5: in a you know, like I've worked in a finance
• 24:41
  Speaker 5: company for six years now, there's no way that I
• 24:45
  Speaker 5: know more than a person who has studied, who has
• 24:48
  Speaker 5: worked in that specific niche of managing like super fund specifically, Like,
• 24:54
  Speaker 5: I just don't see why anybody would think that that's
• 24:57
  Speaker 5: an easy leap to make. Like, sometimes I think is
• 25:00
  Speaker 5: best to leave things to the experts, and in my opinion,
• 25:03
  Speaker 5: you're super fund generally speaking, probably would be one of
• 25:06
  Speaker 5: those things, unless for some reason your financial advisor has
• 25:09
  Speaker 5: recommended that it's a good choice for you, in which
• 25:11
  Speaker 5: case they would probably be advising you on what choices
• 25:14
  Speaker 5: to make anyway, so it's like you're not really making
• 25:15
  Speaker 5: the choices yourself.
• 25:16
  Speaker 2: Yeah. Yeah, I did a deep dive really long time
• 25:19
  Speaker 2: ago because when you're the CEO of a listed company,
• 25:22
  Speaker 2: you have to be quite transparent on your own investments.
• 25:25
  Speaker 2: So tell me why none of those big dog superannuation
• 25:29
  Speaker 2: fund managers have smsfs. And that tells you everything, doesn't
• 25:34
  Speaker 2: Why don't they? They're true And I know a lot
• 25:36
  Speaker 2: of people in our community have probably seen the seminars
• 25:39
  Speaker 2: or been to a seminar, or had someone somewhere somehow
• 25:42
  Speaker 2: try to sell them and off the plan apartment. And
• 25:45
  Speaker 2: it's okay because it's going to be a great investment
• 25:48
  Speaker 2: and you're going to be able to fund it through
• 25:50
  Speaker 2: super and we'll get the loan all sorted. And they
• 25:52
  Speaker 2: like do everything and they add every single bell and whistle.
• 25:55
  Speaker 2: Tell me how off the plan apartments have been performing recently.
• 25:59
  Speaker 2: They're in the b They are not good at all. Really, Yeah,
• 26:02
  Speaker 2: And it's a great sales tactic, Like you're telling me
• 26:05
  Speaker 2: that you can take somebody who doesn't have any deposit
• 26:08
  Speaker 2: saved at all. You can convince them to set up
• 26:10
  Speaker 2: an SMSF with probably a dodgy accountant who's making a
• 26:13
  Speaker 2: buck on their side because they're getting the referral fee. Yeah,
• 26:16
  Speaker 2: they'll set that up for you. You come back to
• 26:18
  Speaker 2: the investment company and buy one of their off the
• 26:20
  Speaker 2: plan apartments, like they're making clients out of non clients.
• 26:25
  Speaker 2: But you can't live in this off the pan, No
• 26:26
  Speaker 2: you can't. No, no, no, it would be an investment
• 26:28
  Speaker 2: only and therefore they'll be like, it's great because it's
• 26:31
  Speaker 2: going to increase in value. It's in the middle of
• 26:33
  Speaker 2: the Melbourne CBD. That's that's not how it's gonna work.
• 26:38
  Speaker 2: I could go on and on and on about it,
• 26:40
  Speaker 2: but an SMSF from my perspective, is a very risky play, unless,
• 26:46
  Speaker 2: as I said before, you have like half a million
• 26:48
  Speaker 2: dollars in super in your own business owner and you're like,
• 26:50
  Speaker 2: I would love a commercial property in there, and I'm
• 26:52
  Speaker 2: gonna buy my own commercial property because there's like a
• 26:54
  Speaker 2: loophole there that you can buy your commercial property inside
• 26:57
  Speaker 2: your super fund and then you lease it to your company,
• 26:59
  Speaker 2: not your individual. But you can't even lease your own
• 27:02
  Speaker 2: property back to you if you were to buy an
• 27:04
  Speaker 2: investment property. Yeah, that's not how it works. You can't
• 27:07
  Speaker 2: even lease it to your partner and then leave in it.
• 27:10
  Speaker 2: That would be against the rules as well. Wow, it's
• 27:12
  Speaker 2: just it's not a thing, and I think so many
• 27:15
  Speaker 2: of us go, oh, it would beautiful because then I
• 27:17
  Speaker 2: would have an apartment and if everything hit the fan,
• 27:19
  Speaker 2: I could go and live in it. You cannot, Wow,
• 27:23
  Speaker 2: you would still have to pay the mortgage on that
• 27:24
  Speaker 2: and be homeless.
• 27:26
  Speaker 4: That's insane.
• 27:27
  Speaker 2: It's just a lot. And I get that there are
• 27:30
  Speaker 2: some narratives out there at the moment, because I've seen
• 27:32
  Speaker 2: a number of them of people being like, this is
• 27:33
  Speaker 2: a great opportunity for you to get ahead financially. How's
• 27:37
  Speaker 2: that going to perform better than my diversified index portfolio
• 27:41
  Speaker 2: inside my serinuation fund that's consistently managed actively. Yeah, okay, anyway,
• 27:47
  Speaker 2: thanks for letting me be really negative pulling me out
• 27:50
  Speaker 2: on it. Please, all right, enough of me being negative
• 27:53
  Speaker 2: and y'apping about SMSFS. But if anybody wants to have
• 27:56
  Speaker 2: that conversation again, I'm all, is, would you like me
• 27:59
  Speaker 2: to read you out the damn we got this week?
• 28:01
  Speaker 5: Absolutely?
• 28:02
  Speaker 2: Yes? Please? All right, Hi, she's on the money. Interesting
• 28:05
  Speaker 2: money topic. That's never been something I've ever had to
• 28:08
  Speaker 2: think about. My parents are getting on in age, and
• 28:11
  Speaker 2: my father has been quite unwell of late. I jokingly
• 28:14
  Speaker 2: asked him if his funeral was paid for to which
• 28:17
  Speaker 2: he replied, No. This got me thinking, is it my
• 28:20
  Speaker 2: responsibility as a daughter to have to pay for funeral expenses?
• 28:25
  Speaker 2: My parents have never been good with money, so I
• 28:28
  Speaker 2: don't foresee there being much money set aside to pay
• 28:30
  Speaker 2: for these things when they do arise. Bit of a
• 28:33
  Speaker 2: morbid topic, but we all are going to have to
• 28:35
  Speaker 2: face this at some stage. Thank you so much, So
• 28:39
  Speaker 2: really valid.
• 28:40
  Speaker 4: I actually do think about this a lot because I
• 28:42
  Speaker 4: also don't have much money. My mom doesn't have much money,
• 28:44
  Speaker 4: and I'm like, who pays for that? And I do
• 28:46
  Speaker 4: know that it can be really expensive. Upwards of five
• 28:49
  Speaker 4: thousand dollars.
• 28:50
  Speaker 2: Could be up to ten thousand dollars. Obviously there's far
• 28:52
  Speaker 2: more cost effective solutions, but that's good. Take between five
• 28:56
  Speaker 2: and ten thousand dollars. I would say it's average.
• 28:59
  Speaker 4: It's very scary because you can't like if you know,
• 29:01
  Speaker 4: and like touchwood like that. It just would be a shame,
• 29:04
  Speaker 4: Like if some unexpected expense came up and it was
• 29:07
  Speaker 4: five or ten thousand dollars, you'd just be like, like,
• 29:09
  Speaker 4: well consider me out of the game, you know. But
• 29:12
  Speaker 4: so I do think that's a lot. I don't know
• 29:15
  Speaker 4: whose responsibility it is That is a really good question.
• 29:19
  Speaker 4: I think it's like the families the in general, Like
• 29:22
  Speaker 4: it wouldn't be just the daughter or just the the
• 29:25
  Speaker 4: other parent if they're still with us or their parents.
• 29:30
  Speaker 4: Like I think it's the families. Do you think.
• 29:33
  Speaker 3: I don't know.
• 29:34
  Speaker 2: Yeah, And I would just like to caveat this. I
• 29:35
  Speaker 2: would like to this, and you guys can disagree with
• 29:38
  Speaker 2: me if you want, but I would like to try
• 29:40
  Speaker 2: and take the emotion out of this conversation. Yeah, I'd
• 29:42
  Speaker 2: be like, oh, my mom and my dad would want like,
• 29:44
  Speaker 2: let's just be really pragmatic about the facts here. We're
• 29:47
  Speaker 2: just talking like I know that your situation is like, oh,
• 29:49
  Speaker 2: your dad's sick and whatnot, but like to have the
• 29:52
  Speaker 2: most productive conversation, I think we need to just be like,
• 29:55
  Speaker 2: let's just spit some facts here. Who owns what and where?
• 29:57
  Speaker 2: And how does this work? As opposed to like not
• 30:00
  Speaker 2: not bringing kindness but like tippy toeing around it, if
• 30:04
  Speaker 2: that makes sense. That's so in that you actually don't
• 30:08
  Speaker 2: have to have a funeral, So like that's why I'm like, oh,
• 30:11
  Speaker 2: I feel bad saying this, but technically you don't have
• 30:13
  Speaker 2: to have a funeral. You like, don't have to do
• 30:15
  Speaker 2: that at all. It is technically an event that is
• 30:19
  Speaker 2: not compulsory. That sounds terrible because I think everybody should
• 30:23
  Speaker 2: be afforded that option. But I don't want to say
• 30:26
  Speaker 2: it this way, but it's kind of like a birthday party.
• 30:28
  Speaker 2: Your birthday can pass and you not have a party
• 30:30
  Speaker 2: because parties are expensive and you still tick on in age. Yes,
• 30:34
  Speaker 2: there are going to be some costs associated because there's
• 30:37
  Speaker 2: going to be you know, either a burial or a cremation.
• 30:40
  Speaker 2: There's probably going to be like you know, if you're
• 30:42
  Speaker 2: in a cemetry cemetery, costs and stuff like that, but
• 30:44
  Speaker 2: it doesn't have to be a five or ten thousand
• 30:46
  Speaker 2: dollars expense. And that sounds terrible, And that's why I
• 30:49
  Speaker 2: wanted to take the emotion out of it, because I
• 30:51
  Speaker 2: think when you then start speaking to families, they'll go,
• 30:55
  Speaker 2: it's not an option to not have a funeral. And
• 30:58
  Speaker 2: I get that, I do, but I think that that's
• 31:00
  Speaker 2: where we have to that's where we have to have
• 31:04
  Speaker 2: this conversation of it's actually a choice to have a funeral.
• 31:09
  Speaker 2: I think everybody should have one on thousand percent, but
• 31:11
  Speaker 2: I also that's why they charge like and that's why
• 31:15
  Speaker 2: so many different places make money from hosting these events.
• 31:18
  Speaker 2: And yeah, I think that we just don't talk about
• 31:20
  Speaker 2: it that way because it is really morbid. But as
• 31:23
  Speaker 2: somebody who grew up with a mother who was a coroner,
• 31:25
  Speaker 2: I'm used to morbid conversation.
• 31:27
  Speaker 4: Right, Yes, I just have one question if you can't
• 31:31
  Speaker 4: And when I say no money, I mean no money,
• 31:32
  Speaker 4: Cause some people might be like, oh, you have savings whatever. No,
• 31:35
  Speaker 4: I'm saying someone has no money and someone in their
• 31:37
  Speaker 4: family unfortunately passes, and you decide not to have a funeral.
• 31:41
  Speaker 4: Maybe you have your own little family thing. Do they
• 31:43
  Speaker 4: want of all the cost stuff?
• 31:44
  Speaker 2: But what you do end up taking.
• 31:46
  Speaker 4: Okay, that very interesting.
• 31:49
  Speaker 2: You don't get to choose though you won't get them back. Okay,
• 31:52
  Speaker 2: it makes sense. There's yeah, there's a lot to it.
• 31:55
  Speaker 2: But so I mean, it's essentially like I believe they're
• 31:59
  Speaker 2: like Miss Pauper's funeral, where it's not really a funeral
• 32:03
  Speaker 2: at all. It's kind of like the government's like, great,
• 32:05
  Speaker 2: I'm going to do this, and they're going.
• 32:06
  Speaker 5: To dispose of the body because it's yeah, like with cremation,
• 32:10
  Speaker 5: I'm not super versed in it, but of there's still
• 32:11
  Speaker 5: like quite high feel Yeah. Fee that surprised me with
• 32:14
  Speaker 5: how expensive it is because exactly as you were saying,
• 32:16
  Speaker 5: the fees generally like your bare minimum are you need
• 32:19
  Speaker 5: to put the body to rest somewhere, whether that is
• 32:22
  Speaker 5: through cremation or whether that is you pay for a
• 32:24
  Speaker 5: burial plot, and you pay for the burial plot, you
• 32:26
  Speaker 5: can choose. Do you have a headstone, do you have
• 32:27
  Speaker 5: a marker? There's lots of like tears of things, but
• 32:30
  Speaker 5: they're essential is laying the body to rest somewhere. And
• 32:33
  Speaker 5: if the government does it, they will take care of that.
• 32:36
  Speaker 2: But it's as it's complex, and like you kind of
• 32:41
  Speaker 2: I believe it's like abandonment of the body kind of
• 32:44
  Speaker 2: vibes like you leave it at either the funeral hope,
• 32:46
  Speaker 2: like because like you actually don't have any obligation to
• 32:49
  Speaker 2: go and pick that person up right like, And this
• 32:51
  Speaker 2: is where I'm like, I don't want to have an
• 32:53
  Speaker 2: emotional conversation here, like let's just be really blunt about
• 32:56
  Speaker 2: what it is. And yeah, that kind of sucks. But
• 32:58
  Speaker 2: to zoom out a little bit, if you don't have
• 33:01
  Speaker 2: the money, it will usually come from their estate. And
• 33:04
  Speaker 2: this is where things get really got you really dicey, right.
• 33:09
  Speaker 2: So I had had a situation last year where one
• 33:13
  Speaker 2: of my friends had someone really close to them pass away,
• 33:15
  Speaker 2: and that person didn't have a lot of money. They
• 33:18
  Speaker 2: didn't have a lot of money, but like to pay
• 33:20
  Speaker 2: for the funeral had to come out of my friend's
• 33:23
  Speaker 2: pocket because access to the estate hadn't been opened up yet,
• 33:27
  Speaker 2: Like we couldn't access that person's superannuation or their savings
• 33:30
  Speaker 2: or anything to kind of pay for it. So you can,
• 33:33
  Speaker 2: you know, do that. We ended up having that person
• 33:36
  Speaker 2: take it from their savings and then we well documented it.
• 33:39
  Speaker 2: And then after that case and the estate was opened
• 33:42
  Speaker 2: and were able to access those funds, it was paid back.
• 33:45
  Speaker 2: I se but like that was a messy situation. But
• 33:48
  Speaker 2: maybe they don't even have that. But yes, usually it
• 33:50
  Speaker 2: does come down to the family. And that's why I'm saying,
• 33:53
  Speaker 2: like I don't want to be morbid about it, but
• 33:55
  Speaker 2: like it's also a Milburn topic. And yes, at the
• 33:58
  Speaker 2: end of the day, it's a and that sounds so
• 34:01
  Speaker 2: terrible and I don't mean it that way, but like
• 34:03
  Speaker 2: that's why the funeral is kind of the family's financial burden.
• 34:08
  Speaker 5: Yeah, I've heard a lot of ads. I remember what
• 34:10
  Speaker 5: company it was, but I've heard ads run on like
• 34:11
  Speaker 5: radio for example, for a some kind of funeral company
• 34:15
  Speaker 5: might be like a White Lady or something, and they're
• 34:18
  Speaker 5: like tagline of their campaign is you, as an individual
• 34:21
  Speaker 5: should start paying money, like into an account of some
• 34:24
  Speaker 5: sort ahead of time. I'm assuming to account with them
• 34:27
  Speaker 5: so that your funeral cost isn't a burden on the
• 34:29
  Speaker 5: people you leave behind. Yes, which I like the concept of.
• 34:33
  Speaker 5: It is like hard because you kind of go, well,
• 34:36
  Speaker 5: you were just assumed that it would come out of
• 34:38
  Speaker 5: the estate. And it is hard because, as Victoria was saying, like,
• 34:40
  Speaker 5: it's you know, that's not accessible generally speaking for a
• 34:43
  Speaker 5: little bit.
• 34:44
  Speaker 2: Yet it kind of gets locked down usually like pretty quickly.
• 34:47
  Speaker 2: I mean unless it's like again morbidly like a husband
• 34:51
  Speaker 2: and wife and they had shared finances and they could
• 34:53
  Speaker 2: access that, but still that's going to be the partner's Yeah,
• 34:56
  Speaker 2: take some time.
• 34:57
  Speaker 5: There's some red tape and all that sort of thing,
• 34:59
  Speaker 5: whereas you know, get somebody to somewhere, you know, while
• 35:02
  Speaker 5: the body is I don't want to say fresh, but
• 35:04
  Speaker 5: you know what I mean, getting things taken care of
• 35:06
  Speaker 5: in a prompt manner is kind of time is of
• 35:09
  Speaker 5: the essence, and so it's yeah, I can see that
• 35:12
  Speaker 5: that is really appealing someone planning for it. But if
• 35:14
  Speaker 5: somebody hasn't planned for it, like your dad and I'm
• 35:15
  Speaker 5: so sorry to hear that he's sick, and I'm so
• 35:17
  Speaker 5: sorry to hear you guys are having to have these
• 35:18
  Speaker 5: conversations because they are really tough. If he hasn't planned, Like,
• 35:21
  Speaker 5: maybe that's something you can talk about because you have
• 35:23
  Speaker 5: the benefit of he's still with you, so you say.
• 35:26
  Speaker 2: Okay, like you can make it so beautiful.
• 35:28
  Speaker 5: Yeah, like, how do we honor your issues? What does
• 35:30
  Speaker 5: that look like? You know, should we be putting money
• 35:33
  Speaker 5: aside now or can we allocate something that is accessible
• 35:36
  Speaker 5: in the time that you, you know, you do leave us,
• 35:38
  Speaker 5: so that it is something that we're able to take
• 35:40
  Speaker 5: care of. It's not a burden on me or on
• 35:42
  Speaker 5: everybody else or you know. It is a hard conversation,
• 35:46
  Speaker 5: but I think an important one because, as you know
• 35:48
  Speaker 5: you were saying, Beck, I think it is if you
• 35:51
  Speaker 5: had no money, it would be really tough because it
• 35:53
  Speaker 5: is such an emotive thing. You don't want to ever
• 35:56
  Speaker 5: feel like you're disappointing someone or you know, there's a
• 35:59
  Speaker 5: whole big conversation around you know, different religions and the
• 36:02
  Speaker 5: different practices that are required to wanna those that we
• 36:05
  Speaker 5: love and better to have it now, to get it
• 36:08
  Speaker 5: sorted while you can, I think, is my take on it.
• 36:12
  Speaker 2: But it is.
• 36:12
  Speaker 5: Yeah, I think it is ultimately, unfortunately the responsibility of
• 36:15
  Speaker 5: the people who were closest, and then it's more complicated.
• 36:18
  Speaker 5: And if you're estranged from your family.
• 36:20
  Speaker 2: Oh yeah, it's actually crazy and like no one wants
• 36:22
  Speaker 2: to face their own mortality. Like a lot of people
• 36:25
  Speaker 2: don't want to talk about this, and it's like it's
• 36:27
  Speaker 2: quite jarring as somebody who has done their full like
• 36:29
  Speaker 2: estate planning and like will and whatnot with their husband.
• 36:32
  Speaker 2: And I've updated it recently because I had another baby,
• 36:34
  Speaker 2: so we had to go back to the drawing board
• 36:36
  Speaker 2: and be like, okay, cool, let's update this. I'm sitting
• 36:39
  Speaker 2: across from my husband. It's like on a Sunday morning
• 36:41
  Speaker 2: having a coffee. I'm like, so you still want to
• 36:44
  Speaker 2: be cremated?
• 36:44
  Speaker 3: Yeah?
• 36:45
  Speaker 1: Yeah?
• 36:45
  Speaker 2: Like what yeah, He's like, what do you want? I'm like, yeah,
• 36:49
  Speaker 2: I want to be cremated as well. Can you do
• 36:51
  Speaker 2: this that the other Like we've got a whole plan, like,
• 36:54
  Speaker 2: but that's why state planning is also really really important,
• 36:57
  Speaker 2: because it makes us think about, okay, cool, like where
• 37:00
  Speaker 2: would this be funded from? What would that look like?
• 37:02
  Speaker 2: Because I don't want to be a financial burden on
• 37:04
  Speaker 2: my family, and I don't think many people do anyway,
• 37:07
  Speaker 2: we asked the community and we asked a few questions.
• 37:11
  Speaker 2: So the first was, is this a conversation you have
• 37:14
  Speaker 2: had ahead of time? And forty percent of you said,
• 37:16
  Speaker 2: it's actually never crossed my mind. Thirty percent said yes,
• 37:20
  Speaker 2: there is a plan, seventeen percent said yes, but there's
• 37:23
  Speaker 2: no plan, and fourteen percent said nope, we have avoided it.
• 37:27
  Speaker 2: We then said who should be responsible for funeral costs?
• 37:32
  Speaker 2: Sixty six percent of you said their estate, twenty three
• 37:36
  Speaker 2: percent said the individual, and eleven percent said their family.
• 37:41
  Speaker 2: Oh so, I, in my head also think that the
• 37:45
  Speaker 2: individual and their estate is the same thing, because even
• 37:48
  Speaker 2: if you don't make a funeral plan, like it can
• 37:51
  Speaker 2: come out of your estate, like after you've passed away,
• 37:54
  Speaker 2: like that money can be drawn out of your estate
• 37:56
  Speaker 2: to pay for that cost. If everybody who's a party
• 38:01
  Speaker 2: to that, maybe inheritance of Greece, but then it could
• 38:04
  Speaker 2: become a big issue. And if they have lots of debt,
• 38:06
  Speaker 2: I'm assuming the debt would probably be prioritized over the funeral.
• 38:09
  Speaker 2: Would that be correct? Yes, No, depends on the type
• 38:12
  Speaker 2: of debt, who the debtors are, whether you honestly, whether
• 38:14
  Speaker 2: you get to their savings account first and spend it
• 38:16
  Speaker 2: before the debt has come Like it just that's terrible advice,
• 38:20
  Speaker 2: but like that's the reality of what some people have done.
• 38:22
  Speaker 2: And then obviously we went to the community said guys,
• 38:24
  Speaker 2: give us you two cents. First person said, if the
• 38:27
  Speaker 2: estate can't cover it, it's up to the family. It's
• 38:29
  Speaker 2: all about respect. Next person said, girl, if you want
• 38:33
  Speaker 2: to be buried, it can cost between fifteen and twenty
• 38:35
  Speaker 2: five thousand dollars. You need to be prepared if you
• 38:37
  Speaker 2: want specifics. This is the thing.
• 38:40
  Speaker 5: It's like they charged so much.
• 38:42
  Speaker 2: I've heard for Yeah, I don't know about twenty five
• 38:44
  Speaker 2: grand I feel like that's taking the mickey.
• 38:47
  Speaker 4: I know it's one of those either with the pillars,
• 38:49
  Speaker 4: you know you got that big Oh yeah, it's one
• 38:51
  Speaker 4: of those mules.
• 38:52
  Speaker 2: Maybe it's like a full mausoleum. And like I also
• 38:55
  Speaker 2: wanted to like fill the entire room with only red
• 38:58
  Speaker 2: long stem roses. But I can't make a funeral real expensive.
• 39:02
  Speaker 2: Just so you guys know. Next person said, after my
• 39:05
  Speaker 2: mom died when I was twenty two, this is now
• 39:08
  Speaker 2: a normal conversation that we have in our family.
• 39:11
  Speaker 5: Yeah.
• 39:11
  Speaker 2: The next person said, I got iced out of our
• 39:13
  Speaker 2: dad's death and estate by his wife, and we have
• 39:17
  Speaker 2: to talk about it. We must make a plan.
• 39:19
  Speaker 4: Oh my god, I'm so sorry.
• 39:21
  Speaker 2: All four so sad. Next person said, and this is
• 39:24
  Speaker 2: a two parter. This is a great opportunity for her
• 39:27
  Speaker 2: to sit down with her parents and not out what
• 39:30
  Speaker 2: they want and if they are organized it also make
• 39:33
  Speaker 2: sure that there is medical power of attorney set up.
• 39:37
  Speaker 2: Next person said, recently I lost both parents. Combank released
• 39:41
  Speaker 2: the funds required from their account for a funeral. It's great,
• 39:45
  Speaker 2: that's very cool. Yeah. And the last one was at eighteen,
• 39:49
  Speaker 2: my estranged father passed away as his only next of kin.
• 39:52
  Speaker 2: I wore the five thousand dollar debt his estate couldn't cover.
• 39:56
  Speaker 5: For so unfair.
• 39:57
  Speaker 2: Done is unfair, And you literally didn't sign.
• 40:01
  Speaker 3: Up for that.
• 40:01
  Speaker 4: No, I mean there's a whole other conversation I was
• 40:03
  Speaker 4: thinking when you were talking before about it's like we
• 40:06
  Speaker 4: are not money. And if you pass with that money
• 40:09
  Speaker 4: or people in your family don't have money, and you're
• 40:12
  Speaker 4: kind of like abandoning the body, It's like, I just
• 40:14
  Speaker 4: don't like this whole timetable because it's like, we're worthy
• 40:18
  Speaker 4: of respect and love and all this. There should just
• 40:21
  Speaker 4: be like a baseline plan for anyone who passes, because
• 40:24
  Speaker 4: they're worthy of all of these absolutely things. And if
• 40:27
  Speaker 4: you want extra cool, I'm really sorry to hear about
• 40:30
  Speaker 4: your father, and I hope everything grows well just so
• 40:33
  Speaker 4: you keep having those conversations.
• 40:35
  Speaker 2: And yeah, well that was a morbid end to what
• 40:38
  Speaker 2: was a really great episode. Thanks for sticking with us, guys,
• 40:42
  Speaker 2: it has been a beautiful start back to getting into
• 40:46
  Speaker 2: twenty twenty six podcasting for me. Thank you. But we'll
• 40:49
  Speaker 2: see you guys next week on Monday morning, right nearly
• 40:52
  Speaker 2: for a money Darry. We'll see then, Bye bye bye.
• 40:58
  Speaker 2: The advice shared on Cheese and the Money is general
• 41:01
  Speaker 2: in nature and does not consider your individual circumstances.
• 41:04
  Speaker 1: She's on the.
• 41:05
  Speaker 2: Money exists purely for educational purposes and should not be
• 41:08
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• 41:12
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• 41:15
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