Latest / The SME Stream / Lisa Dudson: The long term value of your savings

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Lisa Dudson: The long term value of your savings · The SME Stream

0:39
Speaker 1: Hey, welcome to Welcome at the Weekend Collective. If you
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Speaker 1: our interviews as soon as we can after they have happened.
1:01
Speaker 1: So I would actually recommend and particularly go and have
1:03
Speaker 1: listened to our politics interviews, one with Judith Collins about
1:07
Speaker 1: the sinking of the HGMS him n Z S Manawan Nui,
1:13
Speaker 1: but also an illuminating interview with Matthew Horncastle from Williams Corporation.
1:19
Speaker 1: I've got that right, yes, I have just around the
1:22
Speaker 1: underwriting the government's planning to do with property developments, and
1:25
Speaker 1: he spoke against that, even though it's kind of cynically
1:28
Speaker 1: in his interest to be in favor of it. And
1:30
Speaker 1: I thought it's quite an illuminating discussion with Matthew, so
1:34
Speaker 1: go and check that out. But right now it is
1:37
Speaker 1: and my guest is looking at me, going, we're at
1:38
Speaker 1: this interesting because she has an interestant property as well
1:41
Speaker 1: as money, because this is smart money. And my guest
1:44
Speaker 1: is Lisa Dodson. Dudson, she's a financial author, a bunch
1:48
Speaker 1: of bunch of books and you know she's in she's
1:52
Speaker 1: into financial advisor as well. Yes, of course, and hello, hello,
1:57
Speaker 1: Sorry I got there eventually, didn't we? And how are you?
2:01
Speaker 2: I'm very good, thank you, excellent you picture?
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Speaker 1: Did your ears did well? Your face did perk up
2:07
Speaker 1: when you heard that?
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Speaker 3: I mentioned Matthew how cos yehow I'm definitely going to
2:09
Speaker 3: go and have a listen to his interview because I
2:10
Speaker 3: think it'll be very interesting.
2:11
Speaker 1: Yeah, because he basically just started saying, look, I'm a
2:13
Speaker 1: big fan of this government. I think there's whole lot
2:14
Speaker 1: of things I'm doing really well, but this isn't one
2:16
Speaker 1: of them. And why, And he talked about just enabling
2:19
Speaker 1: the free market to look after things. And he made
2:21
Speaker 1: the case so well that we just had text stuff
2:24
Speaker 1: to text come in saying of surprised to hear him
2:26
Speaker 1: say that, and I agree with him and he's changed
2:28
Speaker 1: my mind. It was he made a good case.
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Speaker 3: It was very I can imagine, you know, he's a
2:32
Speaker 3: you know, he's a very very smart operator, you know,
2:36
Speaker 3: very quite well respected in his in his field, which
2:38
Speaker 3: is which is great. And let's face it, I think
2:41
Speaker 3: generally speaking, the free market does a better job than
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Speaker 3: when the government tinkers too much.
2:46
Speaker 1: Just on a communications point of view, I think it's
2:48
Speaker 1: an example of like, you know, if you communicate honestly
2:51
Speaker 1: about something, it's like when Antonia Watson and for the
2:53
Speaker 1: A and SID said what her honest thoughts were on CGT.
2:57
Speaker 1: I don't think being anything but good for your organization.
2:59
Speaker 1: When CEOs and business leaders well here's what I reckon,
3:02
Speaker 1: regardless of what the business wants, and they just speak
3:04
Speaker 1: candidly unless you're proposing something horrendous. You know, just a
3:10
Speaker 1: bit of candor and honesty. It's refreshing, isn't it.
3:12
Speaker 3: Well, that's right, And all of these issues are also
3:15
Speaker 3: you know, they're incredibly complex, and there's so many stings
3:17
Speaker 3: in the tails sometimes and there's so many flow on
3:20
Speaker 3: effects from pretty much any decision. And it's really nice
3:23
Speaker 3: when someone can talk openly and talk you through their
3:26
Speaker 3: logic and why they think what they think, because that
3:28
Speaker 3: helps you learn.
3:29
Speaker 1: Right, yeah, exactly. Now we're going to talk about of course,
3:32
Speaker 1: this is smart money. So we are going to talk
3:34
Speaker 1: about money and a couple of things just well to
3:38
Speaker 1: kick off with something a little bit well, it's a
3:42
Speaker 1: question a lot of people would have that what do
3:44
Speaker 1: you do when you've got a bit of extra cash?
3:47
Speaker 1: Where should you put it? Because people will come into
3:49
Speaker 1: money through you might inherit it. You might find you've
3:52
Speaker 1: got a bit of a bonus at work, you might
3:54
Speaker 1: find you don't have some tax to pay that you
3:56
Speaker 1: thought you had to pay if your self employed, And
4:00
Speaker 1: where we should you actually put that money that you've
4:03
Speaker 1: got that you weren't expecting? Should you? I mean, of
4:05
Speaker 1: course it's a personal decision because if it was me
4:07
Speaker 1: and I'm still probably a bit fiscally responsible, irresponsible because
4:11
Speaker 1: I want to have another holiday overseas, I would battle
4:14
Speaker 1: with that one.
4:15
Speaker 2: Ah.
4:15
Speaker 1: But then there's the mortgage, there's the key we saver.
4:17
Speaker 1: There's whether to invest it, whether to shove it in
4:19
Speaker 1: some sort of very boring savings account. Extra cash well.
4:24
Speaker 2: I mean it all comes down to context.
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Speaker 3: Right, So firstly, we're talking ten thousand dollars, are we're
4:28
Speaker 3: talking ten million dollars? Because okay, well it's quite different, right,
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Speaker 3: So what does extra cash.
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Speaker 1: Mean, I think it's something Obviously, if it's ten million,
4:38
Speaker 1: that's not a very common scenario, I guess. So let's
4:41
Speaker 1: pretend I think it's more like the ten grand, the
4:43
Speaker 1: five grand. Yeah, because it's something that happens commonly when
4:48
Speaker 1: people go I've got a bit of extra money at
4:49
Speaker 1: the moment, and there'll be people whose instinct is to
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Speaker 1: save it, and there'd be people who's instinct to do
4:54
Speaker 1: something else with it. I would have thought, sticky of it,
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Speaker 1: and key we Saver is well, if you want to
4:59
Speaker 1: make sure you you can't touch it, yeah, yeah, Yeah.
5:01
Speaker 1: If you don't trust yourself and you know you should
5:03
Speaker 1: stick it somewhere, then shove it in key We Saver.
5:05
Speaker 1: But if you want to invest it, I would say
5:08
Speaker 1: you invest it in anything but key we save it,
5:10
Speaker 1: because at least you've got some discretion as to what
5:12
Speaker 1: you do with Yeah.
5:12
Speaker 3: So I guess again, everything's always about context, right, so,
5:15
Speaker 3: and your personal circumstances. But if you had ten grand,
5:18
Speaker 3: for argument's sake, then you might say, Okay. If you
5:20
Speaker 3: weren't in a particularly good financial position, you might go
5:23
Speaker 3: pay off debts or put it into an emergency account
5:26
Speaker 3: for a future.
5:27
Speaker 2: You know, sort of rainy day issues. But the first
5:29
Speaker 2: thing you might say, well, maybe I make a lump
5:31
Speaker 2: some payment off your mortgage.
5:32
Speaker 3: So that actually saves you quite a little bit of
5:34
Speaker 3: money over the long term.
5:36
Speaker 1: Actually, that would be almost versus a savings account. That
5:40
Speaker 1: would be the no brainer because it's a savings account,
5:43
Speaker 1: you pay tax on on your interest, whereas if you're
5:45
Speaker 1: paying it off your mortgage, that is like a tax
5:48
Speaker 1: free earning of interest in a way, because your mortgage
5:51
Speaker 1: is higher than the interest you're going to get in savings.
5:53
Speaker 3: Absolutely, but also too, if it's ten grand, it's ten
5:55
Speaker 3: grand that you're not paying interest on for let's say
5:57
Speaker 3: the next fifteen to twenty twenty five year years. Right,
6:00
Speaker 3: So when you think about that, that's quite significant.
6:03
Speaker 1: You see what you've mounted. There is a really good
6:06
Speaker 1: argument for always sticking on the mortgage because unless you
6:09
Speaker 1: really need that holiday and Fiji or wherever, the if
6:12
Speaker 1: you actually understood the future value of that money.
6:15
Speaker 2: Absolutely so, any day of the weekly I'll say.
6:17
Speaker 1: You got Oh, it doesn't matter what your mortgage is,
6:19
Speaker 1: whether it's one hundred thousand or whether it's a million.
6:22
Speaker 1: If you don't put that ten thousand dollars on your
6:24
Speaker 1: mortgage and you've got another fifteen, twenty, twenty five thirty
6:28
Speaker 1: years to go. I would hate to think what the
6:31
Speaker 1: extra Yeah, beware, so if you.
6:34
Speaker 2: Talk talk bang for your back.
6:36
Speaker 3: If you had a mortgage, that's probably your best return,
6:38
Speaker 3: right unless you're a high risk and be stuff.
6:40
Speaker 2: So that's I think that's probably a bit of a
6:42
Speaker 2: no brainer.
6:43
Speaker 3: If you were a little bit, if you were frightened,
6:47
Speaker 3: you were going to spend that money and let's say
6:48
Speaker 3: blow it on a holiday or some shopping, then key
6:50
Speaker 3: we save is great from the perspective that it grows
6:53
Speaker 3: in value over time and it's locked.
6:54
Speaker 1: In mortgage first, if you've got a mortgage, If.
6:57
Speaker 3: Your mortgage first, yeah, and then then the other op
7:00
Speaker 3: and would obviously be invested.
7:01
Speaker 2: So again it comes down to your personal situation.
7:03
Speaker 1: And actually the future value of an investment of ten
7:05
Speaker 1: thousand dollars over the course of time, if you invest
7:08
Speaker 1: it really well, actually could be a better better than
7:10
Speaker 1: the mortgage.
7:12
Speaker 3: It really depends on the type of investor. Let's call
7:15
Speaker 3: you to the average balanced investor, your mortgage is probably
7:18
Speaker 3: reasonably competitive. If you're quite an aggressive investor, you may
7:22
Speaker 3: do better. Investing than on your mortgage.
7:24
Speaker 1: But over the course of if you have a long time,
7:26
Speaker 1: if you've if you're comparing with a twenty mortgage, let's
7:29
Speaker 1: say twenty years, an aggressive fund will do you quite well.
7:33
Speaker 3: Probably well, because what you what you're comparing as you're saying, okay,
7:37
Speaker 3: what's the average interest rate? So let's say it works
7:39
Speaker 3: out five percent over twenty years, and then you're comparing
7:42
Speaker 3: it with the after tax return of your investment. All right,
7:45
Speaker 3: So if you're in an aggressive fund, you might get
7:47
Speaker 3: eight percent, but less tax, it might be five and
7:49
Speaker 3: a half. So you know, there's not a lot in
7:51
Speaker 3: it because with your investment, it's you know, some of
7:53
Speaker 3: its tax not all of it, depending on what you invest.
7:55
Speaker 2: In is taxed. So that's really what the comparison is.
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Speaker 1: Okay, So there we go. So either stick it on
8:00
Speaker 1: your mortgage or you invested aggressively for twenty years. It's
8:03
Speaker 1: time time, all right? Should we wrap it up? That
8:05
Speaker 1: play the theme music? Will just do music. But actually
8:09
Speaker 1: it is not. It's not that complex an answer in
8:11
Speaker 1: a way, is it? Because I think the thing is
8:14
Speaker 1: to not make a decisions the worst thing and that's
8:16
Speaker 1: a little bit personal experience, because I've got a little
8:18
Speaker 1: bit of lef money left over on my what's it
8:22
Speaker 1: called that money app that you use. It's got a
8:24
Speaker 1: green logo. It's like carrying cash with you around overseas.
8:28
Speaker 1: Why is it that's the one I've got a little
8:30
Speaker 1: bit of money left and why is it's been sitting
8:32
Speaker 1: there a few months?
8:33
Speaker 2: Would you like some financial advice to them?
8:35
Speaker 1: Yeah? Are you going to give? Actually funny thing is
8:37
Speaker 1: you know why I left it there because it's a
8:39
Speaker 1: euro and I thought that actually our value of the
8:42
Speaker 1: dollar would drop a bit and it would be worth
8:44
Speaker 1: more just by leaving it in there for a few months,
8:45
Speaker 1: which it has done. But now I think it's time
8:48
Speaker 1: to literally indecision. It's just still sitting here.
8:52
Speaker 3: But I've had clients in the past who have gone, oh,
8:55
Speaker 3: I'm waiting to bet against the New Zealand dollar, you know,
8:57
Speaker 3: to increase or increasing value before I bought my money,
9:00
Speaker 3: and then five ten years down the track, they've still
9:02
Speaker 3: got their money overseas, right, And then then their money's
9:04
Speaker 3: been sitting in a bank overseas not earning any interest.
9:07
Speaker 1: So I should probably rip it out and at least
9:08
Speaker 1: stick it on the rabo or something.
9:10
Speaker 2: Yeah, or you know, off them.
9:12
Speaker 1: See if I stick it off the mortgage, you know,
9:14
Speaker 1: that's play money. It's sitting there. So maybe it's not
9:16
Speaker 1: that straightforward if we want your cause, what do you
9:19
Speaker 1: do when you get a bit of spare cash and
9:20
Speaker 1: look at the decision to take a holiday is a
9:22
Speaker 1: personal decision. And sometimes you know what, I think I've
9:26
Speaker 1: said this to you before, Lisa, that there is a
9:29
Speaker 1: school of thought for people who are pessimistic about savings.
9:32
Speaker 1: They think, well, I'd rather I'd rather not have as
9:35
Speaker 1: much money to retire, and so I can look back
9:37
Speaker 1: on a life that I've lived rather than have a
9:38
Speaker 1: truckload of money and looking back on a life where
9:41
Speaker 1: it's too late.
9:41
Speaker 2: Now, yeah, I mean, of course it's a trait.
9:43
Speaker 1: I mean that's personal.
9:44
Speaker 3: Yeah, And there's a trade off too, because you can
9:46
Speaker 3: either do too much of one or too much of
9:47
Speaker 3: the other. You don't want to get to your retirement
9:49
Speaker 3: age either and have no retirement savings, so you know,
9:52
Speaker 3: you've got to find a little bit of a balance
9:53
Speaker 3: in there somewhere.
9:55
Speaker 1: Okay, I should probably put it off the mortgage. Now.
9:57
Speaker 1: The other one is also do you have do I
10:00
Speaker 1: have cash. Do you have a bit of a you know,
10:04
Speaker 1: your under your pillow or something. You've got a you know,
10:06
Speaker 1: twenty bucks or something just in case. Do you have
10:08
Speaker 1: a store of cash? Do you think people should keep
10:10
Speaker 1: a store of.
10:11
Speaker 2: You're talking about a couple of hundred dollars, I'm talking.
10:13
Speaker 1: About hard currency whatever, whatever, where it's fifty bucks or
10:17
Speaker 1: one thousand dollars.
10:18
Speaker 2: Well, I've actually got a little bit of cash floating
10:19
Speaker 2: around on my wallet. Are in a drawer?
10:21
Speaker 1: I don't mean you have You don't have to answer that.
10:24
Speaker 1: It sounded very nosy, didn't it.
10:25
Speaker 3: And I was just trying to kind of get to
10:28
Speaker 3: understand what you really what your question was. But I
10:30
Speaker 3: mean I've always got cash and bank accounts basically, No.
10:32
Speaker 1: What I mean is cash. Cash is no longer king member.
10:35
Speaker 1: There will used to be a time where people would
10:38
Speaker 1: carry around cash because mostly that's a lot of big
10:40
Speaker 1: transactions and wasn't the early days of e F poss
10:43
Speaker 1: and all that. And No, I generally, by accident might
10:47
Speaker 1: have some money on me, but generally it's just credit cards.
10:49
Speaker 1: But of course sometimes you can have I don't know
10:52
Speaker 1: whether power cuts or whatever can affect your accessibility to
10:56
Speaker 1: do things. But do you think cash is actually matters anymore?
10:58
Speaker 1: Does it matter to have cash? What's your take on it?
11:01
Speaker 3: I mean, I couldn't even tell you the last time
11:03
Speaker 3: I used cash in New Zealand really, to be honest,
11:05
Speaker 3: I couldn't tell you an example. It's pretty much all
11:08
Speaker 3: tap and interesting. I've just come out from Bali and.
11:11
Speaker 1: On tap or tap and go.
11:13
Speaker 3: Because when you're in Bali they call it tap, do they? Yeah,
11:16
Speaker 3: So that's why I've got into your side. They say
11:18
Speaker 3: would you like to tap? And I'm like, yeah, we'll tap.
11:19
Speaker 3: So that's what they that's what they call it. And
11:21
Speaker 3: pretty much and part apart from when you like, you know,
11:23
Speaker 3: a little massage in the backstreet sort of thing, pretty
11:25
Speaker 3: much everything is tap over there, you know, like as
11:28
Speaker 3: opposed to the biggest spars, there's a lot of it's tap.
11:31
Speaker 3: But when we're in Europe earlier in the year, they
11:34
Speaker 3: were going, well, if you pay cash, we'll give you
11:35
Speaker 3: a ten or twenty percent discount.
11:37
Speaker 1: I didn't even understand. What if you pay cash, we'll
11:40
Speaker 1: give you a you mean actually hard currency.
11:42
Speaker 2: The hard current.
11:43
Speaker 1: Sometimes when people say cash, then they don't actually mean
11:46
Speaker 1: you know, how when our businesses pay cash. What they
11:48
Speaker 1: mean is you pay for it all up up front
11:50
Speaker 1: and we'll haggle. But cash to me is cash. It's
11:53
Speaker 1: it's hard.
11:54
Speaker 2: Yeah, but no, I don't know whether people do that
11:56
Speaker 2: that much in New Zealand. Now, I really don't know,
11:59
Speaker 2: mind you. Interest.
12:00
Speaker 3: I had a conversation with an accountant recently. He owns
12:02
Speaker 3: a couple of accountanting firms, and I said to him,
12:04
Speaker 3: you know how much sort of money as cash floats
12:07
Speaker 3: around in the black economy, you know, people doing deals
12:10
Speaker 3: with cash and not paying tax.
12:11
Speaker 2: He said, unbelievable amount of money.
12:14
Speaker 3: So maybe rather than worrying about increasing the text right,
12:16
Speaker 3: maybe we need to be a bit more energy putting
12:18
Speaker 3: and trying to hunt down the you know, the black
12:20
Speaker 3: economy in the cash that's tax is not being paid on.
12:23
Speaker 2: It was an interesting conversation.
12:25
Speaker 1: Actually, I've just realized that when we had a holiday
12:28
Speaker 1: in Europe, I don't know what a euro looks like
12:30
Speaker 1: because I never used cash at all, so I kind of,
12:34
Speaker 1: you know, we went. I don't think maybe I'm lying,
12:38
Speaker 1: but I'm pretty sure I don't think I know what
12:40
Speaker 1: a euro looks like. Yeah, I don't think what it
12:42
Speaker 1: sounds like quite that seems like a guilty confession.
12:45
Speaker 2: It's like, but that's the way that it is really
12:48
Speaker 2: all around the world.
12:49
Speaker 3: Now you know that people aren't necessarily using cash, although
12:52
Speaker 3: I did find and we're increasing turkey, that you did
12:54
Speaker 3: get quite significant discounts paying cash.
12:56
Speaker 2: But that's because they're not declaring it.
12:58
Speaker 1: Oh okay, right, Well, when you're a curist, if you're
13:01
Speaker 1: complicit in that stuff, who cares better deal? Well?
13:04
Speaker 3: Of course, and it's inflation too, right, because that's like
13:08
Speaker 3: checking resince. Is that crazy inflation? Currency inflation in recent times?
13:12
Speaker 1: Okay, look, we want to hear you're from you. One
13:16
Speaker 1: is on the where are you putting your spear cash?
13:17
Speaker 1: We don't mean you spare a hard currency. We're just
13:19
Speaker 1: using that as an expression, where are you putting your
13:21
Speaker 1: extra ruler? If money comes in, you find you've got
13:24
Speaker 1: some a bill you didn't have to pay, or you've
13:27
Speaker 1: had a bit of a bonus, what do you do
13:29
Speaker 1: with it? And how do you make the decision? Do
13:31
Speaker 1: you stick it in an investment key we save it,
13:33
Speaker 1: or do you stick it off the mortgage? Because you know,
13:35
Speaker 1: the discussion around the holiday is one thing, but also
13:38
Speaker 1: how much hard currency do you keep. Is it worth
13:42
Speaker 1: having any of it? Are you always thinking, well, you
13:44
Speaker 1: never know when you're going to need it for whatever.
13:46
Speaker 1: When the world ends, I just might need some hard currency.
13:49
Speaker 1: Probably not the biggest problem you're going to have, of course.
13:51
Speaker 1: It's twenty past five, eight hundred and eighty ten eighty
13:54
Speaker 1: and my guest is Lisa Dudson, financial author and advising
13:59
Speaker 1: and she's in with the in the studio with me
14:00
Speaker 1: right now. Give us a call, love to hear from
14:02
Speaker 1: your twenty and a half past five. Are you worried
14:05
Speaker 1: about funding a comfortable retirement? Well, you're not alone. The
14:08
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14:13
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14:15
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15:02
Speaker 4: Tim Beverage on the weekend Connective Call eight.
15:07
Speaker 1: Talks this news talks it b What do you do
15:09
Speaker 1: with your extra cash? Do you stick it in your mortgage?
15:12
Speaker 1: What do you invested somewhere? And how do you make
15:14
Speaker 1: that decision? Or are you like me? You've got a
15:16
Speaker 1: bit of extra money sitting in your wives card and
15:17
Speaker 1: it's nine months later, it's still sitting there. Naughty, naughty me,
15:22
Speaker 1: and it's more than a hundred bucks. Because let's face off,
15:24
Speaker 1: what one hundred bucks? Who cares? There? We go, right
15:27
Speaker 1: here we go. Here's some texts, lots of text leasa, Actually, Hi,
15:31
Speaker 1: as a couple, When should we be It's almost like
15:34
Speaker 1: a brag. When should we be selling our mortgage free rental?
15:38
Speaker 1: We're fifty six, we have no other large savings to
15:41
Speaker 1: speak of, expecting to be mortgage free home in three years,
15:45
Speaker 1: both still working, says Sean. That's non gains, not specific
15:52
Speaker 1: financial advice. By the way, Sean, we're just going to
15:54
Speaker 1: discuss this as a theme for anyone in your situation.
15:56
Speaker 3: Yeah, I mean in those sort of situations, I always
15:59
Speaker 3: look it and go what is you know, what's your
16:02
Speaker 3: current situation? Obviously there's a little bit and overview that
16:05
Speaker 3: what are you actually trying and achieve when you're looking
16:06
Speaker 3: at retiring? How much income do you think you might
16:09
Speaker 3: need at retirement? Is selling your rental property enough to
16:12
Speaker 3: give you the income that you want? What would you
16:14
Speaker 3: do to create an income once you sold your rental property.
16:18
Speaker 3: You know, there's all those questions that need to be
16:20
Speaker 3: worked out. So you really need to go and see
16:22
Speaker 3: someone and get some financial advice and just work through because.
16:26
Speaker 1: There would be some I could imagine who would be saying, man,
16:29
Speaker 1: you're going to be mortgage free in three years on
16:32
Speaker 1: your own home and you've got a mortgage free rental.
16:35
Speaker 1: I'm assuming that we're talking you know that that those
16:38
Speaker 1: are two different properties. We're talking about the ways to
16:40
Speaker 1: put that text. There would be many people to be like,
16:42
Speaker 1: you've got so much equity, you should be doing something
16:44
Speaker 1: with that equity. Yeah, without you know, making things too hard.
16:48
Speaker 1: But he's got a lot of room to move, hasn't he.
16:51
Speaker 3: Well, that's right, And so that's the sort of thing.
16:52
Speaker 3: You know, how much income do you want in retirement?
16:54
Speaker 3: It might be that your rental property is in a
16:57
Speaker 3: small town and it's worth four hundred thousand dollars, or
17:00
Speaker 3: it might be worth two million dollars, right, so you
17:03
Speaker 3: know what's the value of that rental property and then
17:05
Speaker 3: looking at it and saying, well, what's the income that
17:08
Speaker 3: you achieve from that rental property? Because that's someone of
17:11
Speaker 3: the sometimes the challenge with property. I love property for
17:13
Speaker 3: a wealth growing strategy and a wealth accumulation strategy, but
17:17
Speaker 3: sometimes when you look at it when you're in retirement
17:19
Speaker 3: and you look at the income ratio that you get
17:21
Speaker 3: by the time you get your rent and you pay
17:23
Speaker 3: all of your costs and then you pay your text,
17:25
Speaker 3: when you look at your actual after tax income, it's actually,
17:29
Speaker 3: you know, quite low.
17:30
Speaker 2: Is that enough for what you're actually wanting in your retirement?
17:32
Speaker 1: And I'm guessing if you're fifty six, unless you're wanting
17:35
Speaker 1: to retire early, then that property, I mean property still
17:39
Speaker 1: is going to go up in value at what rate?
17:41
Speaker 1: Is a bit of a that's up for a bit
17:43
Speaker 1: of conjecture at the moment, isn't it?
17:45
Speaker 2: Of course?
17:45
Speaker 1: But why would you get rid of if you just
17:47
Speaker 1: want to have the cash in the bank. I wouldn't
17:49
Speaker 1: have thought that'd be the right idea to sell it.
17:51
Speaker 1: You'd be better to have it in that investment, which
17:54
Speaker 1: is possibly is a capital gain still going to you know, yeah,
17:57
Speaker 1: that's right.
17:57
Speaker 2: And it's also looking at I mean, maybe it's a
17:59
Speaker 2: property that needs a lofe maintenance.
18:00
Speaker 3: It's I mean, you know what sort of property is it?
18:03
Speaker 3: You know, what does the future look like for that property?
18:05
Speaker 3: Is that property going to give you the best growth
18:08
Speaker 3: in the next or you know, next five to ten years?
18:10
Speaker 3: Would you be better off selling and putting into a
18:12
Speaker 3: managed fund? Would you be better off leveraging against it
18:15
Speaker 3: and buying an additional property? How many more years are
18:17
Speaker 3: you planning on working between, you know, fifty six, planning
18:20
Speaker 3: on working to sixty five? You know, so there's quite
18:23
Speaker 3: a lot of information that you kind of need to
18:25
Speaker 3: put in there to really understand what the way forward is.
18:28
Speaker 3: But you know, well done, that's at you know, that's
18:29
Speaker 3: a great position to be in.
18:31
Speaker 1: Yeah, good on you. Mortgage free, older investor, can you
18:35
Speaker 1: please ask Lisa if you have if you have more
18:38
Speaker 1: to invest, say one to two million, how she would
18:43
Speaker 1: invest it? What percentage would she invest overseas? Well? This
18:47
Speaker 1: is again I guess this is where we're going to
18:50
Speaker 1: come up with the same response in a way that
18:51
Speaker 1: it depends on context. But on the face of it,
18:55
Speaker 1: mortgage free and you've got one to two million, this range,
19:00
Speaker 1: what is it one or two? Anyway, you got some money.
19:02
Speaker 3: Yeah, And I think the way that if an investment
19:04
Speaker 3: advisor would look at this is they'd say, okay, well,
19:06
Speaker 3: what's your you know, how old are you? What's your
19:09
Speaker 3: risk profile? Like are you a more conceivative investor? Are
19:12
Speaker 3: you a more aggressive investor? If you were a more
19:16
Speaker 3: aggressive investor, you would have a higher percentage of that
19:19
Speaker 3: portfolio invested overseas. And it might be something like, you know,
19:24
Speaker 3: I don't know, seventy or eighty percent invested overseas, because
19:27
Speaker 3: we've got to remember that New Zealand is only point
19:29
Speaker 3: two percent of the world stop market, Like, we're tiny here,
19:32
Speaker 3: so you would have a significant amount invested overseas. Because again,
19:36
Speaker 3: you know, a lot bigger place for.
19:38
Speaker 1: Those who are listening here are thinking, you know, who's
19:41
Speaker 1: major investments simply just bung it and key we savor
19:43
Speaker 1: and saying are the balance or aggressive or whatever? What?
19:47
Speaker 1: How do you go ab out and investing overseas? As
19:50
Speaker 1: you know that expression goes, Do you do it through
19:53
Speaker 1: a local broker or do you actually would your suggestion
19:58
Speaker 1: be on researching that?
19:59
Speaker 3: Yeah, I think if you a sort of probably under
20:01
Speaker 3: fifty thousand dollars, you want to just go and to
20:04
Speaker 3: find a good sort of balance fund or growth.
20:07
Speaker 2: Fund through one of the managed fund providers.
20:10
Speaker 3: But if you're talking one to two million dollars, I think,
20:13
Speaker 3: you know, you really need to be going and finding
20:14
Speaker 3: a suitably qualified investment advisor and sitting down and talking
20:18
Speaker 3: to them about it. You know, there's a lot of research,
20:22
Speaker 3: you know, because I actually own a company that does
20:25
Speaker 3: funds under advice, and you would not believe the research
20:29
Speaker 3: and the time that goes into figuring out how we
20:31
Speaker 3: invest our clients' money. So it's not a five minute exercise.
20:35
Speaker 3: So I really think that it's important to go and
20:37
Speaker 3: get some professional advice, certainly at that level of money.
20:40
Speaker 1: Do you find that New Zealanders still have this idea
20:42
Speaker 1: of that I'm going to look at investing overseas and
20:44
Speaker 1: they think the DIY sort of thing is still the prevalent.
20:49
Speaker 1: Because that's our that's our mentality. Because we've had a
20:52
Speaker 1: guest from Concilium, Ben Brinkerhoff, who who explained to us.
20:56
Speaker 1: He said that the amount of research and the number
20:59
Speaker 1: of people who are working and analyzing markets constantly will
21:02
Speaker 1: always be ahead of you, unless you happen to make
21:05
Speaker 1: a lucky gamblers. Basically, I don't want to paraphrase them
21:07
Speaker 1: too much because I don't want to misquote them, but
21:10
Speaker 1: his point was you'll never be ahead of the market.
21:13
Speaker 1: You'll you'll just be dumb lucky.
21:15
Speaker 3: Yeah, And I would think for the vast majority of
21:18
Speaker 3: cases that that is correct. I mean, you might, you know,
21:20
Speaker 3: there are some people that that's what they do, right,
21:22
Speaker 3: that's their hobby, and you know, you know they've got
21:25
Speaker 3: a bent towards it and in a strong interest in it.
21:27
Speaker 2: They could do it.
21:28
Speaker 3: But I think the average investor will be hard pressed
21:30
Speaker 3: to beat a good quality investment advisor. So you know,
21:35
Speaker 3: that's I'd always recommend that you go and talk to someone.
21:38
Speaker 1: But That's why the problem with the water cooler talks
21:40
Speaker 1: always a bit of it. You know, when somebody says, I, yes,
21:42
Speaker 1: you know when or when you see the highlights like
21:44
Speaker 1: in video, had that you know, fifteen hundred percent in
21:48
Speaker 1: some I don't know what the period of time was,
21:50
Speaker 1: but it wasn't very much. And look, if you had
21:51
Speaker 1: shoved everything you had into a video, you might have
21:55
Speaker 1: you might be dancing a jig. But if you had,
21:57
Speaker 1: there'll be people who've stuck all their money and some
22:00
Speaker 1: other stock that's and lost everything.
22:02
Speaker 3: Oh look, you know, if you're super lucky and get
22:06
Speaker 3: your timing right, you might do okay. But I read
22:08
Speaker 3: an article years ago, I remember when I was overseas,
22:10
Speaker 3: and it was talking about that ninety percent of day
22:13
Speaker 3: traders actually lose money. Right, So basically these are people
22:17
Speaker 3: are professionally in their trading on a day to day basis,
22:20
Speaker 3: and they're not beating you know, a good fund manager,
22:24
Speaker 3: investment advisor. So it's not as easy as one thinks.
22:27
Speaker 3: So you know, if you're talking about a small amount
22:29
Speaker 3: of money, you know, I think.
22:30
Speaker 1: It's also doing your doing your research by headline. And
22:34
Speaker 1: another one triggered me today. Actually I don't mind saying.
22:37
Speaker 1: But there was an article in the heraldline Sunday talking
22:40
Speaker 1: about how this person had made an elderly person had
22:44
Speaker 1: made a lot of money. But it is the property
22:47
Speaker 1: had sold at five hundred million dollars over the reserve
22:50
Speaker 1: or something. And this was the headline. And the headline
22:52
Speaker 1: was saying what this means that, well, well, the property
22:54
Speaker 1: market's really getting off the ground and rolling now. And
22:57
Speaker 1: I must say, I feel like, shut up. That is
23:00
Speaker 1: not what's happening. And there's headlines distort things so much,
23:04
Speaker 1: and yet you know, well.
23:05
Speaker 2: It's really but that's what you don't.
23:07
Speaker 1: But yeah, it's the new Yeah, here we are, yes,
23:13
Speaker 1: part kettle black.
23:15
Speaker 2: Yeah, that's exactly what I was thinking.
23:17
Speaker 1: But no, but there was some sort of point around that.
23:21
Speaker 1: There isn't there that that the headlines. That's why I
23:25
Speaker 1: think we sometimes surge from one extreme to the other.
23:27
Speaker 1: We're all like, oh, the market's screwed, it's not doing anything,
23:30
Speaker 1: and all of a sudden, all the market's a way.
23:31
Speaker 1: If you don't get in, you you know, you know.
23:33
Speaker 2: Hey, look you know things are improving right there. You know.
23:36
Speaker 2: The ocr coming down is certainly making a difference. The things.
23:39
Speaker 3: Markets have been pretty strong in the last twelve months.
23:42
Speaker 3: We all know that term deposits are you know, are
23:44
Speaker 3: heading south and will continue to to head south.
23:46
Speaker 2: But yeah, you do have to be careful of headlines.
23:48
Speaker 3: And also remember that in an article that you're reading
23:51
Speaker 3: in a couple of minutes, they have summarized things significantly
23:56
Speaker 3: to put it into an article, so you often lose
23:59
Speaker 3: a lot of detai on a lot of context.
24:01
Speaker 1: And they also probably haven't put a press release about
24:03
Speaker 1: the property that didn't do so well. Yeah, guess what
24:05
Speaker 1: that's exciting way we had to self under the reserve
24:08
Speaker 1: put a press release out now not going to happen,
24:10
Speaker 1: is it right? Sorry, just to put my cynical shoes
24:14
Speaker 1: on for a moment, But it's actually one of my
24:16
Speaker 1: sort of kind of pet peeves that if you I'm
24:20
Speaker 1: digressing now, but for instance, if a financial writer is
24:25
Speaker 1: writing about particular shares and markets, they would have to
24:28
Speaker 1: generally declare their interest in that market. And yet anyone
24:31
Speaker 1: who writes about property nobody tell you never really know
24:34
Speaker 1: if someone owns three or one or five properties, or
24:37
Speaker 1: if they're looking to get into the market as the
24:38
Speaker 1: first time buy, because everyone's got the little their little bias.
24:42
Speaker 1: And I sometimes think I wonder whether if anyone, anyone
24:44
Speaker 1: who writes some property should actually tell us what their
24:48
Speaker 1: stake is.
24:48
Speaker 3: Yeah, and I think, and that brings up a point
24:50
Speaker 3: about being key for what you read, right, and thinking
24:53
Speaker 3: about where where is this information that you're getting?
24:56
Speaker 2: Where has it come from?
24:56
Speaker 3: A lot of people over the water, call in the kitchen,
24:59
Speaker 3: over the getting coffee, like a lot of people have
25:01
Speaker 3: a lot of opinions about things, but their opinions are
25:03
Speaker 3: often based on their own experience, not actually a lot
25:06
Speaker 3: of research.
25:07
Speaker 1: Okay, let's read some more texts. Good afternoon. By the way,
25:10
Speaker 1: you can give us a call. You'll jump the queue
25:12
Speaker 1: of the text if you're looking to get some you know,
25:14
Speaker 1: have a bit of a banter worth Lisa about and
25:16
Speaker 1: get a bit of steer on some thoughts you might
25:18
Speaker 1: not have had about what to do with your money.
25:20
Speaker 1: Good afternoon. I have been looking at a split mortgage.
25:23
Speaker 1: For example, if I had a mortgage of three hundred
25:26
Speaker 1: K and put two hundred and fifty on a thirty
25:29
Speaker 1: year term and the remaining fifty on a twenty year
25:33
Speaker 1: term or less, does this pay off the total loan faster?
25:37
Speaker 1: Than if I had the whole on thirty three hundred
25:39
Speaker 1: count thirty years, Well, of course it would pay it
25:42
Speaker 1: off faster. Also, debanks provide these kind of mortgages. Can
25:46
Speaker 1: you split your mortgage term wise?
25:49
Speaker 2: That's right, yeah, but I don't know whether it actually.
25:56
Speaker 3: I think unlikely that that's I don't think they would
25:59
Speaker 3: split the term of your mortgage, but I wouldn't make
26:03
Speaker 3: any difference. So if you're talking about between what would
26:05
Speaker 3: you say, twenty twenty.
26:07
Speaker 2: To thirty years.
26:08
Speaker 1: If you're paying part of it off on twenty years
26:10
Speaker 1: and part of it off.
26:11
Speaker 3: On thirty years, well if you paid the whole lot
26:12
Speaker 3: over twenty five years, you might be in a similar place. Right,
26:15
Speaker 3: So I think that I think a better way of
26:17
Speaker 3: looking it would be is just looking at your personal
26:20
Speaker 3: financial situation and going, how can I pay off my
26:23
Speaker 3: mortgage as fast as I possibly can?
26:26
Speaker 2: That's I think that's the best way of looking at it.
26:29
Speaker 3: And whether that's fifteen years, twenty years, twenty years, or
26:32
Speaker 3: twenty five years or thirty years, you still want to
26:34
Speaker 3: do your best to pay it off as fast as possible,
26:36
Speaker 3: because as sooner you pay it off, the lower the
26:38
Speaker 3: interest that you pay.
26:39
Speaker 1: Yeah, actually the cumulative amount of money, say if you
26:43
Speaker 1: were to take another even just three years. You know,
26:46
Speaker 1: if you save three years on your mortgage huge, it's
26:49
Speaker 1: quite colossal, isn't it.
26:50
Speaker 2: Yeah. It's a massing.
26:51
Speaker 1: Sobering too, actually, because you get people who are making
26:53
Speaker 1: that judgment call all the day. They think, oh, well,
26:56
Speaker 1: I could put that on my mortgage, or I could
26:57
Speaker 1: do something fun with it. And I don't think people
27:00
Speaker 1: really realize I'm probably one of them. I've got a suspicion.
27:04
Speaker 2: Yeah, I mean, I don't have a calculator in front
27:05
Speaker 2: of me to work it out.
27:06
Speaker 3: But you know, if you knocked your thirty mortgage down
27:09
Speaker 3: to let's say twenty years, and it was a five
27:11
Speaker 3: hundred thousand dollars mortgage, you might be saving I don't know,
27:14
Speaker 3: maybe one hundred and fifty thousand dollars.
27:17
Speaker 2: I don't know.
27:17
Speaker 3: That's a bit of a geese, but like it's significant.
27:19
Speaker 3: It's not a few thousand.
27:21
Speaker 1: Yeah, we'll take some more calls than just one. By
27:23
Speaker 1: the way, so where with Lisa Dudson, we actually kicked off.
27:27
Speaker 1: We have digressed a little bit, and that's on me.
27:30
Speaker 1: My apologies. But what do you do with extra cash?
27:32
Speaker 1: When you find you've got a bit of extra money
27:34
Speaker 1: that you weren't expecting. Okay, it's not millions, but it
27:37
Speaker 1: might be ten, twenty, thirty thousand. Where do you put it?
27:41
Speaker 1: And also how much hard currency do you do you
27:44
Speaker 1: bother to keep any You can give us a call
27:45
Speaker 1: on that if you like, on eight hundred and eighty
27:47
Speaker 1: ten and eighty. We've got truckloads of texts to get to,
27:49
Speaker 1: which we will do, but you can jump the que
27:50
Speaker 1: a call on the number I've just given you, which
27:53
Speaker 1: I'm not going to say again because I'll run out
27:54
Speaker 1: of breath. It's twenty three minutes to six. Yes, we're
28:12
Speaker 1: restrict to my aber diet, only one song a weekend,
28:17
Speaker 1: but I do love a little bit of abb But
28:18
Speaker 1: welcome back. It's a smart money. Lisa Dudson as my guest,
28:21
Speaker 1: taking your cause, and let's go to Margaret. Hi.
28:25
Speaker 5: Hi there. I'm in the old age group and I
28:29
Speaker 5: have been advised to keep I'm in my eighties and
28:34
Speaker 5: keep cash on hand in case of sickness so that
28:38
Speaker 5: somebody else can do my shopping and I don't have
28:40
Speaker 5: to give them my f post card.
28:42
Speaker 3: Oh that's I mean, that's a good idea. I mean,
28:46
Speaker 3: I can't really fault that. I mean, maybe you can
28:48
Speaker 3: look at a higher interest on call account and so
28:51
Speaker 3: you're maximizing, you know what, the roturn you get out
28:53
Speaker 3: of your cash. But that may not even be an
28:55
Speaker 3: issue for you. It might just be about making life easy.
28:58
Speaker 5: I'm only talking about two or three hundred that I
29:00
Speaker 5: keep on hand. All right, Well, that's at home and
29:05
Speaker 5: it's an emergency of both in case I'm sick and
29:09
Speaker 5: somebody does put a shopping for me.
29:12
Speaker 2: Oh, that sounds like a great idea. Well done.
29:14
Speaker 5: Yeah, yep, that was some advice. That was some advice
29:18
Speaker 5: that was given. So I thought that was some of
29:20
Speaker 5: a pretty pretty good idea and perhaps so other people
29:23
Speaker 5: can think about that as well.
29:24
Speaker 1: Yeah, look, Margaret, ut with you. I think it doesn't
29:27
Speaker 1: hurt to have two three hundred bucks in your soft draw,
29:29
Speaker 1: you know, or wherever I have it in my soft draw.
29:32
Speaker 1: I'm not going to ask you where you put yours
29:33
Speaker 1: because that would be a bit personal. Let's carry on
29:35
Speaker 1: with the calls. But thanks for your called Margaret. Good
29:37
Speaker 1: on youre Deborah.
29:38
Speaker 4: High Hi, how are you good?
29:41
Speaker 1: Thanks?
29:43
Speaker 4: Okay, it's good. Listen, I just slipped the car radio
29:47
Speaker 4: on and heard the last one minute of your conversation
29:51
Speaker 4: about paying off your mortgage quickly. And so I don't
29:54
Speaker 4: know if it's of any benefit to anyone, but we
29:57
Speaker 4: have a story that my husband and I mana through
30:00
Speaker 4: some good advice to pay off our mortgage in four
30:05
Speaker 4: four and a half years.
30:07
Speaker 2: Wow, that's pretty impressive.
30:08
Speaker 1: You must have gone hard on that that.
30:11
Speaker 4: I listen all credit to the book that we picked up.
30:14
Speaker 4: This was not our idea, but it was our genuine experience.
30:19
Speaker 4: I worked in a bookshop. I just earned the basic
30:22
Speaker 4: retail wage. My husband was a trader and had an
30:28
Speaker 4: office wage a bit more money than me, but we
30:31
Speaker 4: certainly went rich. We bought our house the two hundred
30:36
Speaker 4: and thirty six thousand in Sandringham and around ninety ninety five, so,
30:43
Speaker 4: to be fair, houses were a different kind of price
30:46
Speaker 4: than they are now. But working in a bookshop, I
30:50
Speaker 4: picked up a book by an Australian woman. I can't
30:54
Speaker 4: for the life of me remember her name.
30:56
Speaker 1: Don't worry about the book. What was the advice?
31:00
Speaker 4: So, basically, then a nutshell, this is what she said.
31:04
Speaker 4: She said, sit down and work ount your income. Basically,
31:10
Speaker 4: go through all your bills for three months and get
31:12
Speaker 4: a rough idea of what it costs you to live,
31:16
Speaker 4: and then get an idea of what your disposable income.
31:19
Speaker 4: On top of that is, take a small amount of
31:24
Speaker 4: money that is going to be your spending money, and
31:27
Speaker 4: then put all of your disposable income into your mortgage.
31:33
Speaker 4: Now to do and that will over and above your
31:36
Speaker 4: regular payments, you're making, lump some deposits into your mortgage
31:41
Speaker 4: every time you get paid. Now to do that. To
31:45
Speaker 4: do that, you needed to structure your mortgage in a
31:49
Speaker 4: particular way. And the way we did it was that
31:53
Speaker 4: we looked at, Okay, this is our rough disposable income
31:57
Speaker 4: for the year. To put that amount onto a floating mortgage, Yes,
32:04
Speaker 4: that's right. So that meant that we could chunk that
32:08
Speaker 4: amount down pay after ebe two weeks without any kind
32:13
Speaker 4: of penalty.
32:14
Speaker 1: So you just did it as aggressively as you could afford. Really,
32:17
Speaker 1: so you didn't have a set amount you're aiming for.
32:19
Speaker 1: You just thought, look, let's stick everything on the floating
32:21
Speaker 1: mortgage and just try and try and.
32:23
Speaker 4: Live a strong No not everything, not everything. No, that's
32:26
Speaker 4: not correct. So we looked at, say, for example, we thought, okay,
32:32
Speaker 4: at our discretionary income after we've paid all our living
32:36
Speaker 4: expenses is forty thousand dollars for the year. So we
32:41
Speaker 4: just put that forty thousand dollars amount onto floating. Now,
32:47
Speaker 4: the rest of it we broke into two We broke
32:51
Speaker 4: a part of it another forty thousand into one year
32:55
Speaker 4: of fish and I think the fixed rate was less,
32:58
Speaker 4: and then the remainder we put into two years six
33:02
Speaker 4: because that was less again. So by the time the
33:05
Speaker 4: end of the year came around, that forty thousand had
33:09
Speaker 4: been chunked down, the one year six came up for
33:13
Speaker 4: a new we put that onto floating. Yeah, and that's
33:19
Speaker 4: how we did it. We just leaped brog those amount.
33:23
Speaker 3: I was going to say, I think I pretty much
33:24
Speaker 3: described the same philosophy and most of my books. But look,
33:28
Speaker 3: I think now that's great because what you've done is
33:30
Speaker 3: you've gone through a budgeting process and then you've said, okay, well,
33:34
Speaker 3: what can we afford to pay off in our mortgage?
33:36
Speaker 3: You know, all the surplus we have over and above
33:38
Speaker 3: what our needs are, what we need to live is
33:40
Speaker 3: that you're putting into your mortgage.
33:41
Speaker 2: And I think the other.
33:42
Speaker 3: Key point there too is you've actually sat down and
33:45
Speaker 3: worked out your numbers, and you've put a lot of
33:47
Speaker 3: focus and discipline into paying off your mortgage. And I've
33:50
Speaker 3: worked with a number of people over the years who
33:52
Speaker 3: have had a similar result as well. By putting that
33:55
Speaker 3: focus and discipline into your mortghige. It's quite remarkable what
33:57
Speaker 3: you can achieve.
33:58
Speaker 2: So well done.
33:59
Speaker 1: Yeah, Coon, Actually there are mortgage I mean, there are
34:02
Speaker 1: calculators out there, but there are actually websites, having googled it,
34:05
Speaker 1: a mortgage repayment calculator, money saved or I can't mean
34:08
Speaker 1: what I've stuck into it, and there are actually sites
34:11
Speaker 1: where it says how much are you paying, what's your term?
34:13
Speaker 1: How much extra do you want to pay? How quick
34:15
Speaker 1: more quickly? And this is how much you'll save.
34:17
Speaker 2: Yeah, well that's right.
34:18
Speaker 3: But I often sit down with people and co, Okay,
34:19
Speaker 3: well you know we need a main bank account over
34:22
Speaker 3: here for a day to day, we need a bit
34:23
Speaker 3: of an emergency account when then maybe a little bit
34:26
Speaker 3: free extra for holiday, and then put that structure around
34:29
Speaker 3: how you do your budgeting and then figure out what's
34:32
Speaker 3: left after that, and then that's what you know you
34:35
Speaker 3: focus on putting onto your mortgage. But then you've also
34:37
Speaker 3: got to structure your mortgage in such a way that
34:39
Speaker 3: you can make those additional payments.
34:41
Speaker 1: A quick question here, Hi guys, my husband and I
34:44
Speaker 1: mortgage free. Can we use as collateral to get another mortgage? Again,
34:49
Speaker 1: it'll depend on I guess you're with your earning income.
34:53
Speaker 3: So I'm assuming what you're asking is can you use
34:55
Speaker 3: your freehold home to borrow against to buy another property?
34:58
Speaker 3: So the answer is yes, depending on the value the
35:00
Speaker 3: property that you're purchasing and your the income that you have.
35:04
Speaker 1: Yeah, and you so if you have no income, if
35:06
Speaker 1: you were retired, it's probably a bit of a tricky.
35:08
Speaker 3: Great if you've got no income, I mean, the banks,
35:10
Speaker 3: particularly since the Responsible Leaning Code came in a few
35:13
Speaker 3: years ago, there's a lot more focus on income. So yeah, again,
35:18
Speaker 3: just really depends on your personal circumstances.
35:20
Speaker 1: Another one, Hi, guys, my husband, age sixty one, is
35:23
Speaker 1: just retired. I'm sixty three. We live a fairly quiet life,
35:25
Speaker 1: mortgage free home that is worth quite a lot. Quite
35:28
Speaker 1: a lot. I love language, because quite a lot for
35:31
Speaker 1: one person could be seven hundred thousand, and for another
35:35
Speaker 1: it might be five mil.
35:36
Speaker 2: Yeah.
35:36
Speaker 1: Anyway, we thought of downsizing to release money, but we
35:40
Speaker 1: love our home and location. We plan to live off
35:42
Speaker 1: as savings until my super and then his kicks in,
35:45
Speaker 1: plus our key we save as mine as tiny. My
35:47
Speaker 1: husband reckons we can live on about fifty k a year,
35:49
Speaker 1: which seems very mean. Do you think this amount is doable? Many? Thanks?
35:55
Speaker 1: How much?
35:56
Speaker 3: Look, I mean, I think anything's doable. But it comes
35:58
Speaker 3: down to the the you know, the the life that
36:00
Speaker 3: you want. Right If you're happy living on fifty thousand
36:03
Speaker 3: dollars a year, then.
36:04
Speaker 2: Great, But.
36:06
Speaker 1: You know that's some that's luxury.
36:08
Speaker 3: Yeah, yeah, but that's it's a pretty tight amount of money.
36:12
Speaker 3: So it's just personal choices. You could fast track spending
36:16
Speaker 3: some of VRQ savor. You could look at home equity
36:18
Speaker 3: release where you if you've got quite a you know,
36:22
Speaker 3: quite an expensive home, you could release a little bit
36:24
Speaker 3: of equity out of your home on a regular basis.
36:28
Speaker 3: That means that down the track, when you pass away
36:32
Speaker 3: and your estate is washed up, then you have a
36:35
Speaker 3: loan that you have to pay back. But that could
36:37
Speaker 3: be a way to release a little bit of extra
36:39
Speaker 3: cash to top up. So you're fifty thousand dollars because
36:41
Speaker 3: you don't want to be in a situation where you
36:43
Speaker 3: feel like you're living on on the smell of an
36:45
Speaker 3: early rag and not doing the things that you've worked
36:47
Speaker 3: hard all your life to be able to do, just
36:50
Speaker 3: because you're holding onto this massive, big home.
36:53
Speaker 1: Here we go high. Since the Christians earthquake, I've always
36:56
Speaker 1: kept a couple of hundred in small denomination and small
36:59
Speaker 1: denominationations because if all the tenth persons front up at
37:02
Speaker 1: a shop with one hundred dollars, note, you're not going
37:04
Speaker 1: to get any change. Yeah, okay, that's probably not about well,
37:08
Speaker 1: I mean, it's all fairly extreme sort of examples, I guess.
37:12
Speaker 1: But somebody thinks that it was money made simple by
37:17
Speaker 1: Noel Whittaker, was what the lady was talking about. But honestly,
37:20
Speaker 1: most financial books will have this.
37:22
Speaker 2: Notion on those lines.
37:23
Speaker 4: Yet.
37:24
Speaker 1: Yeah, how do you find a good investment advisor? Given
37:27
Speaker 1: there will be people in the field with a range
37:29
Speaker 1: of experience, abilities and dedication.
37:32
Speaker 2: What I would do?
37:33
Speaker 3: I mean, you could ask friends and family. You could
37:36
Speaker 3: ask if you've got any professional advisors.
37:38
Speaker 2: You could google.
37:40
Speaker 3: And go and look and maybe meet with three. Ask
37:44
Speaker 3: them how they get paid, how they get renumerated. Most
37:46
Speaker 3: financial advisors work on.
37:48
Speaker 1: A well, they have relations with various funds sometimes that's right.
37:52
Speaker 3: I mean, certainly our company, all our advisors are based
37:56
Speaker 3: on salary, which is not necessarily that common in the industry.
37:59
Speaker 3: But I think it's also really important to have a
38:01
Speaker 3: really good relationship with your financial advisor. So I would
38:03
Speaker 3: definitely go and visit a couple and and and ask
38:07
Speaker 3: lots of questions about how they how they work, how
38:09
Speaker 3: they get renumerated, and make sure that you can connect
38:11
Speaker 3: with them.
38:12
Speaker 1: Okay, we're going to come back with a couple. We'll
38:14
Speaker 1: have a little bit of time. But by the way,
38:17
Speaker 1: the obvious one is also how people how do people
38:19
Speaker 1: contact Lisa Dudson.
38:21
Speaker 2: Oh, dub dub dub dot Acumen, dot co dot NZ.
38:23
Speaker 1: There you go. Right, we'll be back and just to
38:25
Speaker 1: tickets nine minutes to six. Yes, News Talks, Tim Beverage
38:30
Speaker 1: is the smart money with Lisa Dudson. We're going to
38:32
Speaker 1: take one more call on John. We've got two minutes, so.
38:34
Speaker 5: Go yep, I'm not going to Okay mortgage was tam.
38:46
Speaker 1: Oh. John. Unfortunately your phone line is terrible, so we'll
38:51
Speaker 1: have to try you again another time. But we couldn't
38:52
Speaker 1: hear and with time being short. I'm sorry, we'll just
38:55
Speaker 1: have to leave it there. But yeah, so can we
38:59
Speaker 1: sign off with a little bit of a thought for
39:01
Speaker 1: people I guess is that if you do have some
39:03
Speaker 1: extra cash, if it ends up being a truckload of cash,
39:05
Speaker 1: you we need to get a bit of good advice.
39:08
Speaker 1: But yeah, I think.
39:11
Speaker 3: It's just about sitting back and going, all right, I've
39:13
Speaker 3: got some extra cash, what are my options and think
39:17
Speaker 3: through the pros and cons of those options and relation
39:19
Speaker 3: to how it actually works out for you, and then
39:22
Speaker 3: make a decision.
39:23
Speaker 1: And probably, as you say, information is king, isn't it.
39:25
Speaker 1: But if you're looking at paying something off your mortgage,
39:27
Speaker 1: it is worth checking out what that extra ten thousand
39:31
Speaker 1: is going to be costing you if you don't pay
39:34
Speaker 1: it off your mortgage.
39:34
Speaker 2: And I like to keep things simple.
39:36
Speaker 3: So even if you've got a sheet of paper for
39:38
Speaker 3: paper and you write down what you three four options are,
39:41
Speaker 3: write the pros and cons down, you know, that's a
39:43
Speaker 3: really good learning exercise. It helps you really crystallize what
39:46
Speaker 3: your options are and how they play out for you.
39:48
Speaker 3: But I think you know, go through that exercise and
39:51
Speaker 3: make a decision.
39:52
Speaker 1: Okay, And if people want to catch up with your
39:55
Speaker 1: work Acumen dot co dot nz. That's correct, and you've
39:59
Speaker 1: got a team of people there as well. But yeah,
40:01
Speaker 1: so Ackumen dot curd is in. Thank you, Hey, thanks
40:04
Speaker 1: be fun. Thanks Lisa. What's your latest book? By the way,
40:07
Speaker 1: what was the most recent one?
40:08
Speaker 2: The one was Good with Money but that was god
40:11
Speaker 2: currently it was last year? When was it last year?
40:15
Speaker 1: If you got another one coming out last year, I've
40:19
Speaker 1: got another one coming out, I mean, what is it?
40:21
Speaker 1: Martin haweses he's running in book number twenty four.
40:24
Speaker 2: I love Martin.
40:24
Speaker 1: He's great, lovely man. He's off climbing mountains.
40:28
Speaker 2: Yeah, and he's a big climber.
40:29
Speaker 1: Yeah, so you know, no such thing as a sort
40:31
Speaker 1: of slow retirement for an early seventies.
40:34
Speaker 2: Now you know, he's he's a great guy.
40:36
Speaker 1: I said, are you doing free solo? Who goes? No
40:39
Speaker 1: no ropes? Anyway, Hey, thanks Lisa. We I'll beat the
40:44
Speaker 1: same time next weekend. I'm actually taking the week off,
40:46
Speaker 1: so if you don't hear me for a few days,
40:48
Speaker 1: then what a relief for you. Anyway. Thanks My producer
40:51
Speaker 1: Tyra Roberts, stick around for for I was going to
40:57
Speaker 1: give it the wrong Sunday Sex I was gonna. I've
40:59
Speaker 1: got help form for naming the show in the wrong way.
41:02
Speaker 1: Sunday six is next. Catch you soon, Jolly your something.
41:11
Speaker 1: Chase me when's kissing