September 16, 2025 • 24 mins
We’ve talked a lot about the importance of getting good financial advice - preferably from a professional advisor, if you’re able. Today goes in the opposite direction. Join Canna Campbell - a financial planner for 20 years - and Fear & Greed's Michael Thompson as they go through four pieces of advice you can safely ignore.
---
The information in this podcast is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or other offer document prior to acquiring any financial product.
Canna Campbell is an Authorised Representative and Financial Adviser of Links Licensee Services Pty Ltd AFSL No. 700012 ABN 97 678 975 589.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to How Do They Afford That, the podcast that
peaks into the financial lives of everyday Australians. I'm Michael Thompson.
I'm an author and the co host of the podcast
Fear and Greed business news.
Speaker 2 (00:10):
As always, I'm with Canna Campbell.
Speaker 1 (00:12):
Financial planner and founder of Sugar Mummer TV, the financial
literacy platform that you will find on every social media
platform and everywhere else. Hello, Canna, good morning.
Speaker 3 (00:22):
How are you.
Speaker 2 (00:22):
I'm well? Thank you. Today's episode has a bit of fun.
Speaker 3 (00:26):
Yes it is. I'm fired up already.
Speaker 2 (00:30):
We talk a lot.
Speaker 1 (00:31):
I mean, this entire podcast is about the importance of
getting good financial advice right. This is what It's the
basic premise of what we talk about pretty much every
single day, that you should see a professional advisor if
you are able to do so.
Speaker 3 (00:45):
And before you make any decisions, absolutely don't gossing master
you've decided to go and do something potentially regretful.
Speaker 1 (00:51):
That's a good point actually, and because in some cases
they're able to help you undo some of the things
that you've done. But it's so much better value if
you do it beforehand, right.
Speaker 3 (01:00):
And they may even us some great ideas as options
and suggestions will actually help enhance your financial future.
Speaker 1 (01:05):
So we'll take it as read then that we understand
the importance of getting good financial advice. Okay, agreed, Today
we're going in the opposite direction.
Speaker 3 (01:15):
Mix things up a bit.
Speaker 1 (01:16):
I want you to give me the four worst pieces
of advice that you have ever heard, four pieces of
advice that you can kind of safely ignore, and in
doing so, we'll kind of see some of the misinformation
and the bad things that are circulating out there, and
in doing so as well, illustrate the value of getting
(01:38):
that good, proper qualified, professional financial advice. And we should
just clarify before we go into any of this that,
because we are dealing in this in this space of advice,
everything we are talking about is general in nature. It
is not personal investment strategic product. It is just educational
financial education purposes only. Yes, all right, have you had
(02:02):
some fun preparing for this?
Speaker 3 (02:03):
You know, it's really interesting because I had a bit
of a giggle at these I was writing them down.
It was I felt quite torn, Like one side of
me was like blood was boiling. The other side was
like laughing, just how stupid this is.
Speaker 2 (02:14):
Because some of these are real things. That you have heard.
Speaker 3 (02:16):
These are all things that I've heard, like and I
still do hear sometimes.
Speaker 1 (02:20):
Okay, we've got four of them, so hit us up
with number one.
Speaker 3 (02:23):
Number one, superannuation is a scam. The governments just try
to control you and your money. I've really got into
character there. Wow, that's not surprise myself.
Speaker 1 (02:35):
You are kidding though, right, Is it actually something.
Speaker 2 (02:37):
That you have heard?
Speaker 3 (02:38):
Yes, and I hear this all the time.
Speaker 1 (02:41):
Well, just that because superannuation is something that we don't
have to say over the fact that our money is
going into superannuation, and we don't have because it is
the compulsory super guarantee, so you are required by law
to have part of your pay going into superannuation. So
because we don't have any control, people assume that it's
a scam.
Speaker 3 (03:01):
Yes, and I look there obviously has been some potential
changes coming to superannuation. You know, for example, the unrealized
capital gains tax for super with over three million dollars
worth of asset. So I can understand with the potential
change in rules and regulations and taxes where it's not
going to be as attractive, people are getting a little
(03:21):
bit angry and they're you know, turning their backs on superannuation.
But superannuation is not a scam. It is a very
effective environment to help build your wealth. It is tax effective,
you have a lot more control in that you can
choose where that money is actually invested. It is regulated
and to a certain degree, like super for some people
(03:43):
is an element of free money because it's there. You know,
we now get twelve percent if we're salary to pay
as you go, our employer is putting, you know, twelve
percent per annum into superannuation.
Speaker 1 (03:55):
And yeah, it's for savings.
Speaker 3 (03:56):
Well it's actually not. Don't cause savings you nothing. No,
it's forced investing. Okay, sorry, forced Unless your superannuation money
is going into say a term deposit, it is forced investing.
So it's really not an issue of being a scam.
The problem here is is people's lack of education and
(04:17):
engagement with their super I was going.
Speaker 1 (04:18):
To ask you then, is this basically a financial literacy
issue and awareness thing that the people just don't understand
that you have so much control over your superannuation. Sure,
you don't have control over the fact that you have
to contribute part of your earnings to superannuation, but once
it goes into that account. You do actually have quite
a lot of say over the risk profile, how much
(04:40):
risk you want to take with it, where your money
is actually going, and you can watch it. It's not
just it's not just happening behind closed doors that you
can watch. You can check it every day if you want.
Speaker 3 (04:51):
Yes, But we also have choice of fun so you
don't have to go into your employers super as well.
You can you can pick okay, well I want to
be with product X, y Z or ABC, And so
not only can you choose the underlying investment, you can
choose actually which platform you want to use.
Speaker 1 (05:05):
Those rules changed a little while ago, didn't they in
terms of in terms of the ability to take your
super fund with you between jobs.
Speaker 2 (05:13):
How does that work?
Speaker 3 (05:15):
So ultimately you can say, well, look my you know,
say I go and work for a new company and
the new company has their own superannuation, I can actually
say no, no, I've got my superinneration over here. I'd like
you to pay it into this account. And obviously, assuming
that it is a regulated superannuation account, it's not some
sort of dodgy secret cash savings account and I'm going
(05:37):
to take the money out of super and run you can.
You have that right, and I think it's also you know,
people say it's a way of the government controlling is
to a certain degree, that is actually correct, because they do,
you know, control all they can, depending on how we
choose to use that money when we retire, whether we
choose to draw, for example, an allocated pension. Yes, they can,
(05:58):
within a certain range, control how much we spend each
year because it helps us ration out our money. But
that's for our financial independence and to actually help us
correctly ration our money throughout retirement and not blow it
all in the first couple of years, and then we're
stuck on the age pension and for most of the country,
the age pension as it stands today is simply not
(06:19):
going to be enough for most Australians to have some
sort of quality of life during retirement.
Speaker 1 (06:24):
Compulsory super came into effect nineteen ninety two.
Speaker 3 (06:29):
I want to say it was instead of the keeping,
but it actually went earlier than that started in the seventies.
I believe, maybe with BHP to help protect labor intensive workers.
What did they to retire earlier?
Speaker 1 (06:39):
Well, what I want to ask you then is from
nineteen ninety two onward, say that's when it came into
effect for all. Do you think we are better off
now as a nation.
Speaker 2 (06:50):
Than we were beforehand?
Speaker 3 (06:51):
Absolutely definitely, because this is forcing people to actually look
at their money, to start thinking, informing themselves, and actually
make decisions for themselves that are going to benefit themselves.
So I think superannuation is incredibly empowering.
Speaker 1 (07:05):
It's not a scam. Okay, so superannuation is a scam.
Is the first piece of bad advice?
Speaker 3 (07:12):
Have you put that ignorant?
Speaker 1 (07:14):
That is pretty extraordinary? Okay, number two, you've set a
high bar.
Speaker 3 (07:19):
Now this is what I think You're gonna have a
bit of a chuckle. So it was not advice that
It was advice that I was a friends share with me.
And I also overheard and I've heard this a couple
of times, particularly in the real estate agent industry, and
that is invest in a good watch, a nice suit
(07:42):
or an expensive suit, I should say, and a good
new European car and you'll look more professional and watch
the sales roll in. Isn't that just cringe worthy? I
actually feel ill letting that come out of my mouth,
because I just so that image based spending is that
illusion of wealth and people mistake that obviously for financial
(08:06):
stability and security.
Speaker 1 (08:08):
Playing Devil's advocate on this, yeah, okay, okay, So say
you are working in a in a sales based environment
where let's let's real estate. It's a very good example
of this. Do you want the real estate agent who
are selling your house on your behalf to turn up
kind of a in a beaten up old car, shorts
and thongs. I like wearing shorts, so maybe I would
(08:29):
bond with someone wearing shorts. But you want them looking
pretty smart and sharp and turning up And if they've
got a nice car, then you're like, you know what,
that's a side of success. Maybe they'll be selling my
house for a record price.
Speaker 3 (08:43):
Look, first, it was that saying you don't get a
second chance to make a first impression. I think definitely
stands true here. But at the end of the day,
like true professional isn't something that's worn, it's an he
gonna take you so far if something's actually demonstrated by
you know, your strength of character, being consistent, you know,
being a great communicator, following.
Speaker 1 (09:04):
Through on your commitments, doing what you say you're going
to do. That is the number one thing that I
would actually kind of put top of that list.
Speaker 3 (09:12):
Right Exactly, You've got to be capable more than capable
of you. You've got to be great. So it can
only get you so far, Like it might open a door,
but it's not subject to you know what your what
suit you're wearing when you're knocking on that door.
Speaker 1 (09:23):
So and also working from home these days, because so
many people do work from home. What's the point of
having an expensive watch or a very expensive suit or
a nice car because no one's going to see it.
It's part in the garret.
Speaker 3 (09:34):
With especially a watch. I look at my phone if
I want to tell the time.
Speaker 1 (09:39):
Okay, that's yes, yes, that is true. But a nice
watch is a nice.
Speaker 3 (09:45):
I'm not a watch person. I mean I know a
lot of people, A lot of my friends love them
and collect them, but I'm and they trade them as well.
Speaker 1 (09:52):
And well you collect bags like you.
Speaker 2 (09:54):
That's your that's your little treat, isn't it true?
Speaker 1 (09:56):
And that's and that's though not something that you say,
I must have a nice ba otherwise people won't take
me seriously.
Speaker 3 (10:01):
Is like, that's not that Oh my gosh.
Speaker 1 (10:03):
No.
Speaker 3 (10:03):
But also if you know, we do sometimes need to
invest in ourselves and we also feel good and feel
strong and confident in our professions. But it can only
take you so far, as I said, And.
Speaker 1 (10:16):
The other thing I don't like about this one is
that it's quite elitist and that it suggests that if
you don't have those things, and look, let's face it,
a lot of really hard workers not going to be
able to afford a rolex and not going to be
able to afford a Mercedes Benz or something. But I
would still go with them any day of the week
over the person who turns up looking super flashy, but.
Speaker 3 (10:36):
Also a lot of things that can be bought secondhand. Yes,
you might want to have a nice car, but doesn't
mean you go and buy a brand new car. And
you know, with a very expensive monthly lease, you can
buy a really nice demonstrator or a secondhand car. You
can also buy a pre loved watch. You can also
buy a great quality suit and not have to spend
(10:56):
a fortune buying like a you know, three thousand dollars suit.
I mean you can be savvy with money.
Speaker 1 (11:01):
Now.
Speaker 3 (11:02):
I want to work with people who obviously look professional,
are professional, act professionally, have the results, but they also
savvy with their own money, because they're going to respect
the process and the journey.
Speaker 1 (11:14):
There's something to be said though, for buying a new car.
Did you know though, and this is what I was wondering,
if you're going to bring up the smell, did you
know that you can actually buy new car smell as
a little aerosol and oh it's great, Like you just sound.
Speaker 3 (11:31):
Like you've invested in one of these.
Speaker 2 (11:32):
Yes, yes, and it does.
Speaker 1 (11:35):
It does have that smell and you just kind of
sprayed around the car and it might be like a
thirty year old car and you just close your eyes and.
Speaker 3 (11:43):
I don't think that's going to do with the damage
downe to my car with my kids and dogs.
Speaker 1 (11:47):
No, nothing's going to save you. Okay, So invest in
a good watch, expensive suit, European car. It's one of
those ones that's probably got a bit of gray area
that that it does require. I mean, take some pride
in the way that you do your job and appearance
and all of that. But you don't need to spend
(12:08):
a fortune in order to be a success in whatever
you choose to do.
Speaker 3 (12:12):
And don't be a fool thinking that all you need
to do is look like the part is going to
create successful results in your life.
Speaker 1 (12:21):
It's just stupid. The number of times that you have
rolled your eyes now in the last three minutes, I
think I should have a little tally on here. I
think are up to five just in the last three minutes.
It is quite something, all right. So the first one,
super is a scam. Number two invest in a good watch,
expensive suits, European car and you got it made. We're
going to take a quick break and we will come
(12:42):
back with pieces three and four of the worst advice
you've ever heard?
Speaker 2 (12:52):
All right?
Speaker 1 (12:52):
Can we are talking today about four pieces of advice
that you can safely ignore? These are the four worst
pieces of advice that you have ever.
Speaker 3 (13:01):
Heard heard and then still hearing these are still rolling.
Speaker 1 (13:04):
I can't believe that these super is a scam, one
that people are actually saying. It's a lot of there's
a general wariness around anything involving government, it seems.
Speaker 2 (13:14):
In these days.
Speaker 3 (13:15):
Yeah, very much. And I think particularly with you know,
talks of new taxes and regulations and you know, things
that have happened in the superannuation industry, it's made people
nervous again, and it's made people therefore skeptical again, Like
they've lost a lot of trust, and I feel it's
I can understand where they're coming from, and I have
that level of compassion. But still the end of the day,
(13:35):
you can't be ignorant.
Speaker 2 (13:36):
No, okay, we are on too. Number three? What have
you got?
Speaker 3 (13:41):
All right? Never pay off your house? I cannot believe
this still gets airtime, does it? Yes? And only the
other day I saw this on Instagram. I was just like,
oh my.
Speaker 1 (13:52):
God, why.
Speaker 3 (13:54):
Look, I don't know why people justify this, and they
have all these different strategies and schemes and ideas. And
also in some countries that might be relevant, like in America,
it's a little bit different, but the advice seems to
be contagious back here. I can't see any common sense
behind this, Like even if I look at from a
(14:16):
very service level point of view.
Speaker 1 (14:17):
But is it something to do with kind of using
the money.
Speaker 2 (14:23):
To yes, to invest?
Speaker 3 (14:25):
Some of it is certain in different context, but some
of it, yes, is to look at losing a debt
recycling strategy. Other people, it's about like it's almost like
a don't even bother trying because it's never going to happen,
you know, It's just accept the fact you know, live
life to the max, enjoy you know, pay your mortgage,
(14:47):
don't bother trying paying off anything you've extra spend it.
You know, you only live once. That kind of die
with zero mentality, So do.
Speaker 2 (14:55):
Your mini memory payment.
Speaker 3 (14:56):
Yeah okay, and you know.
Speaker 2 (14:59):
So why they is this a bad idea?
Speaker 3 (15:01):
Well, interest is dead money. You know, if you look
at the cost of interest on a life of say
a thirty year loan, it's depending obviously on the interest rate,
and assuming you never redraw, it can be in excess
of the cost of the house by about two times. Also,
debt is risky, like taking out a home loan is
risk So if you're never paying it off, you're carrying
(15:24):
that risk with you for a long time. And if
you you know people who do pay their home loan
off or at least make their home loan smaller and
more manageable, obviously you've got a sense of psychological freedom
in your life. And a smaller mortgage means you've got
more flexibility, you've got more choices, you've got a greater
sense of financial freedom. You've also got more security for
your family. If you are approaching retirement or plan on
(15:49):
approaching retirement, you've also got a smaller mortgage, means your
cost of living is going to be significantly less. You're
not going to need potentially as much in superinnuation if
you're retiring with a mortgage versus as you know, retiring
with nothing, no doubt at all. We also got the
risk of interest rates changing, and that you do tend
to see this comment when interest rates. You know, if
(16:11):
we go back what three four four years ago when
interest rates were incredibly low, I saw that more and
more often, like, why would you bother? It's only you know,
two and a half percent we're paying.
Speaker 1 (16:20):
On our home, which is such a short term view.
Speaker 3 (16:23):
And that's the thing is, it's very it is very
narrow minded and very short term thinking. And so interest
rates change, as we saw, you know, with the multiple
interest rate rises we had back to back. But also
having a mortgage is that it gives you a really
disciplined habit system that actually helps assuming your housing market
(16:43):
continues to go, it helps you build wealth. And you know,
if you can still invest whilst having a home loan,
you can look at a debt recycling strategy, or you
can look at a regular investment plan whilst also paying
off your home. It's not a one or the other.
And you know, I've shared this before in my Fireplague podcast,
but I actually remember Tom saying to me, oh, you'd
(17:06):
never bother paying a mortgage job, and you know, it's
it's physically impossible, like no one actually does it. And
I was like, that's a lot of crap. So we
you know, then we don't even see each other, probably
for a couple of months. So he told me his
details and I plugged them into a calculator.
Speaker 1 (17:21):
And I was like, after you considered breaking up with him.
Speaker 3 (17:24):
I don't think this is financially compatible with this, But
I showed it, and his face just like his jaw dropped,
and I was like, see, if you just increased your
mortgage repayments played this much, you'd actually save you know,
you know, X amount of thousands of dollars if your
homelone and paid.
Speaker 1 (17:36):
Off X years.
Speaker 3 (17:37):
And it was he was shocked. He's like, why why
have I been told this for so long? And why
have I never bothered? And he had an element of
regret going all those years. I didn't bother having a
trying to pay a little bit extra off my homework
because I thought, oh, no one. No one doesn't and
everyone you know, no one ever pays off the homelan.
You just upgrade, upgrade, upgrade, and you're just this constant
you know, bigger mortgage, bigger mortgage, or as you upgrade
(17:58):
the home.
Speaker 1 (17:59):
Yeah, okay, so I want to get to the last one,
number four. But before we do, how much do you
think social media has to do with the fact that
some of these myths I suppose have spread because I mean,
they've been around forever, but it's always been like your
crazy cousin or something who has these theories. But now
(18:21):
that crazy cousin has a platform, it spreads.
Speaker 3 (18:24):
And the thing with social media is you're seeing between
three and maybe thirty seconds depending on the you know,
what their hook is and how engaged you are. You're
not getting the full picture, and you don't have any
insight as to what their financial situation looks like, what
their goals are, what their safety nets are, you know
where their wealth really is, and really if they are
(18:45):
actually have any real results behind what they're banging on
about as well.
Speaker 2 (18:50):
All right, number four, last one? What is it?
Speaker 3 (18:52):
Don't bother getting a second job. You're just going to
get taxed where there's that character just came just it's.
Speaker 1 (19:01):
Quite a vicious impersonation of someone who is is it
someone that you know or is this just.
Speaker 3 (19:07):
Oh, I've heard this is what I mean that I
still hear this today. It's so frustrating. And because all
these people, would millennials have been jumping up and down
about on social media about having owing money the ATIO.
This is where I think a lot of people I
think it just gets It's been this, I've heard this
for years. Don't bother getting sex job because we get
(19:28):
taxed on top modal tax rate. There's no point. But
because of so many people being in the gig economy
having taxable side hustles, you know, consulting, you know, wearing
lots of different hats to earn money with just the
rising costs of living, they haven't accounted for their tax
properly in a proactive manner. So they owe tax the ATO,
and of course what do they do. They grab their phone,
(19:50):
they jump on TikTok and they're like, I'm no, seven
thousand dollars the AHO. There's no way I can pay that.
And it just it's just built momentum and it's gone
a little.
Speaker 1 (19:59):
Bit and so has this then come about as well,
because you can only claim the tax free threshold in
your first in one job, and so then they're obviously
then getting taxed higher in the other jobs, or just
not even accounting for it at all and just assuming
that anything they're running a little kind of hustle, they're
selling stuff for the markets or something that it doesn't
(20:20):
count because it's all just cash in hand, but it
does well.
Speaker 3 (20:22):
It's a bit of a mix, so some people not
accounting for the right amount, some people not accounting at all,
some people not realizing that they're site hustle. All is
tax even if they got paid in cash, so it's
still it doesn't matter how you got paid, it's still
going to be taxable. So you know, we need to
remember our tax system in Australia is a progressive tax system.
(20:43):
Your first job you claim the tax free threshold. The
second third four to fixed sixth whatever it may be,
you have to say this is my second job, so
you are there for tax at the top marginal tax rate.
But at the end of the financial year, the ATO
look at the total income and then they will work
out what is the correct amount for the total amount
(21:03):
of income and then if you've paid your tax, depending
on how you've sort of set it up with the
ATO with your accountant to stop on top of your
tax responsibilities, you might get a refund if you've overpaid,
or you'll hopefully you know, if you don't it correctly
not owe any and obviously then you don't get a refund.
So yes, it is a short term tool having a
(21:24):
second job to bring in some extra money, which then
obviously gives you some long term benefits, but it helps
you at the end of the day, and you're missing
the big picture as to how our tax system works.
And it's if you can just get a little bit
of advice from an accountant to set yourself up correctly,
you avoid this drama and you do pay the correct
amount of tax. Whether you're owning ninety thousand dollars off
(21:46):
one job or ninety thousand dollars off five jobs, it
is the same amount of tax that you pay.
Speaker 1 (21:51):
It's such a and that don't bother getting a second job.
It's such a defeatist attitude.
Speaker 3 (21:56):
Yeah, I had as I find really toxic and you know,
it's just so negative and.
Speaker 1 (22:02):
Why bother trying now? Reminded when in the end, the
fact that you are going and having a crack and
doing something else. You are taking charge. You are taking
control of your financial future. And sure the side hustle
might not work out, but at least you've had.
Speaker 3 (22:19):
To go and you have no regrets and you never
wonder while I want to would have happened if I'd
done that? And what if you watch someone come up
the same side hustle idea and they made millions?
Speaker 1 (22:28):
Yeah? What happens if the side hustle suddenly becomes your
main hustle and away you go?
Speaker 3 (22:32):
You know, Tom thinks he invented Uber before it became
and now kicks himself not doing Uber.
Speaker 1 (22:38):
Sorry, wait a second, how did you drop this in
the last minute of the podcast? So what he came
up with the idea, just never did anything with it,
and now unfortunately he is watching this multi multi billion
dollar company.
Speaker 3 (22:54):
He's batting ponies for a living, whilst you could have
a startup Uber.
Speaker 1 (22:59):
I reckon, there's a few bullet would actually say he's
got the better job of the two.
Speaker 3 (23:02):
Well, it's because he doesn't like people and horses don't talk.
Speaker 2 (23:05):
There you go, I reckon, he might be a winner.
Speaker 1 (23:07):
There Okay, four really great pieces of bad advice.
Speaker 2 (23:11):
I love this.
Speaker 1 (23:12):
Number one, super is a scam. Number two invest in
a good watch, expensive suit in European car. Number three,
never pay off your home loan. And number four don't
bother getting a second job because you just get taxed.
I think we can safely say most of these you
can just put them in the bin.
Speaker 3 (23:28):
Right yeah, shred it and then put in the recycla bullet.
Put it please.
Speaker 2 (23:33):
I'm just going to say burn it.
Speaker 1 (23:34):
But that's bad for the environment, isn't it very That's
very responsible?
Speaker 2 (23:36):
All right, Canna.
Speaker 1 (23:37):
If we want more information, where do we find you?
Speaker 3 (23:39):
The best place to get in contact with me is
it Sugarmuma TV on Instagram and.
Speaker 1 (23:43):
You can hear me every day with shortn ailmer on
Fear and Greed business news you can use. Thank you
very much for listening to how do they afford that?
Remember to follow on the podcast. And the best thing
you can do is tell somebody else spread the word,
send them a link to this episode and get the
word out there about how to do they afford that?
Thank you for your company on us again next week.
(24:04):
M HM.
Welcome to How Do They Afford That, the podcast that
peaks into the financial lives of everyday Australians. I'm Michael Thompson.
I'm an author and the co host of the podcast
Fear and Greed business news.
Speaker 2 (00:10):
As always, I'm with Canna Campbell.
Speaker 1 (00:12):
Financial planner and founder of Sugar Mummer TV, the financial
literacy platform that you will find on every social media
platform and everywhere else. Hello, Canna, good morning.
Speaker 3 (00:22):
How are you.
Speaker 2 (00:22):
I'm well? Thank you. Today's episode has a bit of fun.
Speaker 3 (00:26):
Yes it is. I'm fired up already.
Speaker 2 (00:30):
We talk a lot.
Speaker 1 (00:31):
I mean, this entire podcast is about the importance of
getting good financial advice right. This is what It's the
basic premise of what we talk about pretty much every
single day, that you should see a professional advisor if
you are able to do so.
Speaker 3 (00:45):
And before you make any decisions, absolutely don't gossing master
you've decided to go and do something potentially regretful.
Speaker 1 (00:51):
That's a good point actually, and because in some cases
they're able to help you undo some of the things
that you've done. But it's so much better value if
you do it beforehand, right.
Speaker 3 (01:00):
And they may even us some great ideas as options
and suggestions will actually help enhance your financial future.
Speaker 1 (01:05):
So we'll take it as read then that we understand
the importance of getting good financial advice. Okay, agreed, Today
we're going in the opposite direction.
Speaker 3 (01:15):
Mix things up a bit.
Speaker 1 (01:16):
I want you to give me the four worst pieces
of advice that you have ever heard, four pieces of
advice that you can kind of safely ignore, and in
doing so, we'll kind of see some of the misinformation
and the bad things that are circulating out there, and
in doing so as well, illustrate the value of getting
(01:38):
that good, proper qualified, professional financial advice. And we should
just clarify before we go into any of this that,
because we are dealing in this in this space of advice,
everything we are talking about is general in nature. It
is not personal investment strategic product. It is just educational
financial education purposes only. Yes, all right, have you had
(02:02):
some fun preparing for this?
Speaker 3 (02:03):
You know, it's really interesting because I had a bit
of a giggle at these I was writing them down.
It was I felt quite torn, Like one side of
me was like blood was boiling. The other side was
like laughing, just how stupid this is.
Speaker 2 (02:14):
Because some of these are real things. That you have heard.
Speaker 3 (02:16):
These are all things that I've heard, like and I
still do hear sometimes.
Speaker 1 (02:20):
Okay, we've got four of them, so hit us up
with number one.
Speaker 3 (02:23):
Number one, superannuation is a scam. The governments just try
to control you and your money. I've really got into
character there. Wow, that's not surprise myself.
Speaker 1 (02:35):
You are kidding though, right, Is it actually something.
Speaker 2 (02:37):
That you have heard?
Speaker 3 (02:38):
Yes, and I hear this all the time.
Speaker 1 (02:41):
Well, just that because superannuation is something that we don't
have to say over the fact that our money is
going into superannuation, and we don't have because it is
the compulsory super guarantee, so you are required by law
to have part of your pay going into superannuation. So
because we don't have any control, people assume that it's
a scam.
Speaker 3 (03:01):
Yes, and I look there obviously has been some potential
changes coming to superannuation. You know, for example, the unrealized
capital gains tax for super with over three million dollars
worth of asset. So I can understand with the potential
change in rules and regulations and taxes where it's not
going to be as attractive, people are getting a little
(03:21):
bit angry and they're you know, turning their backs on superannuation.
But superannuation is not a scam. It is a very
effective environment to help build your wealth. It is tax effective,
you have a lot more control in that you can
choose where that money is actually invested. It is regulated
and to a certain degree, like super for some people
(03:43):
is an element of free money because it's there. You know,
we now get twelve percent if we're salary to pay
as you go, our employer is putting, you know, twelve
percent per annum into superannuation.
Speaker 1 (03:55):
And yeah, it's for savings.
Speaker 3 (03:56):
Well it's actually not. Don't cause savings you nothing. No,
it's forced investing. Okay, sorry, forced Unless your superannuation money
is going into say a term deposit, it is forced investing.
So it's really not an issue of being a scam.
The problem here is is people's lack of education and
(04:17):
engagement with their super I was going.
Speaker 1 (04:18):
To ask you then, is this basically a financial literacy
issue and awareness thing that the people just don't understand
that you have so much control over your superannuation. Sure,
you don't have control over the fact that you have
to contribute part of your earnings to superannuation, but once
it goes into that account. You do actually have quite
a lot of say over the risk profile, how much
(04:40):
risk you want to take with it, where your money
is actually going, and you can watch it. It's not
just it's not just happening behind closed doors that you
can watch. You can check it every day if you want.
Speaker 3 (04:51):
Yes, But we also have choice of fun so you
don't have to go into your employers super as well.
You can you can pick okay, well I want to
be with product X, y Z or ABC, And so
not only can you choose the underlying investment, you can
choose actually which platform you want to use.
Speaker 1 (05:05):
Those rules changed a little while ago, didn't they in
terms of in terms of the ability to take your
super fund with you between jobs.
Speaker 2 (05:13):
How does that work?
Speaker 3 (05:15):
So ultimately you can say, well, look my you know,
say I go and work for a new company and
the new company has their own superannuation, I can actually
say no, no, I've got my superinneration over here. I'd like
you to pay it into this account. And obviously, assuming
that it is a regulated superannuation account, it's not some
sort of dodgy secret cash savings account and I'm going
(05:37):
to take the money out of super and run you can.
You have that right, and I think it's also you know,
people say it's a way of the government controlling is
to a certain degree, that is actually correct, because they do,
you know, control all they can, depending on how we
choose to use that money when we retire, whether we
choose to draw, for example, an allocated pension. Yes, they can,
(05:58):
within a certain range, control how much we spend each
year because it helps us ration out our money. But
that's for our financial independence and to actually help us
correctly ration our money throughout retirement and not blow it
all in the first couple of years, and then we're
stuck on the age pension and for most of the country,
the age pension as it stands today is simply not
(06:19):
going to be enough for most Australians to have some
sort of quality of life during retirement.
Speaker 1 (06:24):
Compulsory super came into effect nineteen ninety two.
Speaker 3 (06:29):
I want to say it was instead of the keeping,
but it actually went earlier than that started in the seventies.
I believe, maybe with BHP to help protect labor intensive workers.
What did they to retire earlier?
Speaker 1 (06:39):
Well, what I want to ask you then is from
nineteen ninety two onward, say that's when it came into
effect for all. Do you think we are better off
now as a nation.
Speaker 2 (06:50):
Than we were beforehand?
Speaker 3 (06:51):
Absolutely definitely, because this is forcing people to actually look
at their money, to start thinking, informing themselves, and actually
make decisions for themselves that are going to benefit themselves.
So I think superannuation is incredibly empowering.
Speaker 1 (07:05):
It's not a scam. Okay, so superannuation is a scam.
Is the first piece of bad advice?
Speaker 3 (07:12):
Have you put that ignorant?
Speaker 1 (07:14):
That is pretty extraordinary? Okay, number two, you've set a
high bar.
Speaker 3 (07:19):
Now this is what I think You're gonna have a
bit of a chuckle. So it was not advice that
It was advice that I was a friends share with me.
And I also overheard and I've heard this a couple
of times, particularly in the real estate agent industry, and
that is invest in a good watch, a nice suit
(07:42):
or an expensive suit, I should say, and a good
new European car and you'll look more professional and watch
the sales roll in. Isn't that just cringe worthy? I
actually feel ill letting that come out of my mouth,
because I just so that image based spending is that
illusion of wealth and people mistake that obviously for financial
(08:06):
stability and security.
Speaker 1 (08:08):
Playing Devil's advocate on this, yeah, okay, okay, So say
you are working in a in a sales based environment
where let's let's real estate. It's a very good example
of this. Do you want the real estate agent who
are selling your house on your behalf to turn up
kind of a in a beaten up old car, shorts
and thongs. I like wearing shorts, so maybe I would
(08:29):
bond with someone wearing shorts. But you want them looking
pretty smart and sharp and turning up And if they've
got a nice car, then you're like, you know what,
that's a side of success. Maybe they'll be selling my
house for a record price.
Speaker 3 (08:43):
Look, first, it was that saying you don't get a
second chance to make a first impression. I think definitely
stands true here. But at the end of the day,
like true professional isn't something that's worn, it's an he
gonna take you so far if something's actually demonstrated by
you know, your strength of character, being consistent, you know,
being a great communicator, following.
Speaker 1 (09:04):
Through on your commitments, doing what you say you're going
to do. That is the number one thing that I
would actually kind of put top of that list.
Speaker 3 (09:12):
Right Exactly, You've got to be capable more than capable
of you. You've got to be great. So it can
only get you so far, Like it might open a door,
but it's not subject to you know what your what
suit you're wearing when you're knocking on that door.
Speaker 1 (09:23):
So and also working from home these days, because so
many people do work from home. What's the point of
having an expensive watch or a very expensive suit or
a nice car because no one's going to see it.
It's part in the garret.
Speaker 3 (09:34):
With especially a watch. I look at my phone if
I want to tell the time.
Speaker 1 (09:39):
Okay, that's yes, yes, that is true. But a nice
watch is a nice.
Speaker 3 (09:45):
I'm not a watch person. I mean I know a
lot of people, A lot of my friends love them
and collect them, but I'm and they trade them as well.
Speaker 1 (09:52):
And well you collect bags like you.
Speaker 2 (09:54):
That's your that's your little treat, isn't it true?
Speaker 1 (09:56):
And that's and that's though not something that you say,
I must have a nice ba otherwise people won't take
me seriously.
Speaker 3 (10:01):
Is like, that's not that Oh my gosh.
Speaker 1 (10:03):
No.
Speaker 3 (10:03):
But also if you know, we do sometimes need to
invest in ourselves and we also feel good and feel
strong and confident in our professions. But it can only
take you so far, as I said, And.
Speaker 1 (10:16):
The other thing I don't like about this one is
that it's quite elitist and that it suggests that if
you don't have those things, and look, let's face it,
a lot of really hard workers not going to be
able to afford a rolex and not going to be
able to afford a Mercedes Benz or something. But I
would still go with them any day of the week
over the person who turns up looking super flashy, but.
Speaker 3 (10:36):
Also a lot of things that can be bought secondhand. Yes,
you might want to have a nice car, but doesn't
mean you go and buy a brand new car. And
you know, with a very expensive monthly lease, you can
buy a really nice demonstrator or a secondhand car. You
can also buy a pre loved watch. You can also
buy a great quality suit and not have to spend
(10:56):
a fortune buying like a you know, three thousand dollars suit.
I mean you can be savvy with money.
Speaker 1 (11:01):
Now.
Speaker 3 (11:02):
I want to work with people who obviously look professional,
are professional, act professionally, have the results, but they also
savvy with their own money, because they're going to respect
the process and the journey.
Speaker 1 (11:14):
There's something to be said though, for buying a new car.
Did you know though, and this is what I was wondering,
if you're going to bring up the smell, did you
know that you can actually buy new car smell as
a little aerosol and oh it's great, Like you just sound.
Speaker 3 (11:31):
Like you've invested in one of these.
Speaker 2 (11:32):
Yes, yes, and it does.
Speaker 1 (11:35):
It does have that smell and you just kind of
sprayed around the car and it might be like a
thirty year old car and you just close your eyes and.
Speaker 3 (11:43):
I don't think that's going to do with the damage
downe to my car with my kids and dogs.
Speaker 1 (11:47):
No, nothing's going to save you. Okay, So invest in
a good watch, expensive suit, European car. It's one of
those ones that's probably got a bit of gray area
that that it does require. I mean, take some pride
in the way that you do your job and appearance
and all of that. But you don't need to spend
(12:08):
a fortune in order to be a success in whatever
you choose to do.
Speaker 3 (12:12):
And don't be a fool thinking that all you need
to do is look like the part is going to
create successful results in your life.
Speaker 1 (12:21):
It's just stupid. The number of times that you have
rolled your eyes now in the last three minutes, I
think I should have a little tally on here. I
think are up to five just in the last three minutes.
It is quite something, all right. So the first one,
super is a scam. Number two invest in a good watch,
expensive suits, European car and you got it made. We're
going to take a quick break and we will come
(12:42):
back with pieces three and four of the worst advice
you've ever heard?
Speaker 2 (12:52):
All right?
Speaker 1 (12:52):
Can we are talking today about four pieces of advice
that you can safely ignore? These are the four worst
pieces of advice that you have ever.
Speaker 3 (13:01):
Heard heard and then still hearing these are still rolling.
Speaker 1 (13:04):
I can't believe that these super is a scam, one
that people are actually saying. It's a lot of there's
a general wariness around anything involving government, it seems.
Speaker 2 (13:14):
In these days.
Speaker 3 (13:15):
Yeah, very much. And I think particularly with you know,
talks of new taxes and regulations and you know, things
that have happened in the superannuation industry, it's made people
nervous again, and it's made people therefore skeptical again, Like
they've lost a lot of trust, and I feel it's
I can understand where they're coming from, and I have
that level of compassion. But still the end of the day,
(13:35):
you can't be ignorant.
Speaker 2 (13:36):
No, okay, we are on too. Number three? What have
you got?
Speaker 3 (13:41):
All right? Never pay off your house? I cannot believe
this still gets airtime, does it? Yes? And only the
other day I saw this on Instagram. I was just like,
oh my.
Speaker 1 (13:52):
God, why.
Speaker 3 (13:54):
Look, I don't know why people justify this, and they
have all these different strategies and schemes and ideas. And
also in some countries that might be relevant, like in America,
it's a little bit different, but the advice seems to
be contagious back here. I can't see any common sense
behind this, Like even if I look at from a
(14:16):
very service level point of view.
Speaker 1 (14:17):
But is it something to do with kind of using
the money.
Speaker 2 (14:23):
To yes, to invest?
Speaker 3 (14:25):
Some of it is certain in different context, but some
of it, yes, is to look at losing a debt
recycling strategy. Other people, it's about like it's almost like
a don't even bother trying because it's never going to happen,
you know, It's just accept the fact you know, live
life to the max, enjoy you know, pay your mortgage,
(14:47):
don't bother trying paying off anything you've extra spend it.
You know, you only live once. That kind of die
with zero mentality, So do.
Speaker 2 (14:55):
Your mini memory payment.
Speaker 3 (14:56):
Yeah okay, and you know.
Speaker 2 (14:59):
So why they is this a bad idea?
Speaker 3 (15:01):
Well, interest is dead money. You know, if you look
at the cost of interest on a life of say
a thirty year loan, it's depending obviously on the interest rate,
and assuming you never redraw, it can be in excess
of the cost of the house by about two times. Also,
debt is risky, like taking out a home loan is
risk So if you're never paying it off, you're carrying
(15:24):
that risk with you for a long time. And if
you you know people who do pay their home loan
off or at least make their home loan smaller and
more manageable, obviously you've got a sense of psychological freedom
in your life. And a smaller mortgage means you've got
more flexibility, you've got more choices, you've got a greater
sense of financial freedom. You've also got more security for
your family. If you are approaching retirement or plan on
(15:49):
approaching retirement, you've also got a smaller mortgage, means your
cost of living is going to be significantly less. You're
not going to need potentially as much in superinnuation if
you're retiring with a mortgage versus as you know, retiring
with nothing, no doubt at all. We also got the
risk of interest rates changing, and that you do tend
to see this comment when interest rates. You know, if
(16:11):
we go back what three four four years ago when
interest rates were incredibly low, I saw that more and
more often, like, why would you bother? It's only you know,
two and a half percent we're paying.
Speaker 1 (16:20):
On our home, which is such a short term view.
Speaker 3 (16:23):
And that's the thing is, it's very it is very
narrow minded and very short term thinking. And so interest
rates change, as we saw, you know, with the multiple
interest rate rises we had back to back. But also
having a mortgage is that it gives you a really
disciplined habit system that actually helps assuming your housing market
(16:43):
continues to go, it helps you build wealth. And you know,
if you can still invest whilst having a home loan,
you can look at a debt recycling strategy, or you
can look at a regular investment plan whilst also paying
off your home. It's not a one or the other.
And you know, I've shared this before in my Fireplague podcast,
but I actually remember Tom saying to me, oh, you'd
(17:06):
never bother paying a mortgage job, and you know, it's
it's physically impossible, like no one actually does it. And
I was like, that's a lot of crap. So we
you know, then we don't even see each other, probably
for a couple of months. So he told me his
details and I plugged them into a calculator.
Speaker 1 (17:21):
And I was like, after you considered breaking up with him.
Speaker 3 (17:24):
I don't think this is financially compatible with this, But
I showed it, and his face just like his jaw dropped,
and I was like, see, if you just increased your
mortgage repayments played this much, you'd actually save you know,
you know, X amount of thousands of dollars if your
homelone and paid.
Speaker 1 (17:36):
Off X years.
Speaker 3 (17:37):
And it was he was shocked. He's like, why why
have I been told this for so long? And why
have I never bothered? And he had an element of
regret going all those years. I didn't bother having a
trying to pay a little bit extra off my homework
because I thought, oh, no one. No one doesn't and
everyone you know, no one ever pays off the homelan.
You just upgrade, upgrade, upgrade, and you're just this constant
you know, bigger mortgage, bigger mortgage, or as you upgrade
(17:58):
the home.
Speaker 1 (17:59):
Yeah, okay, so I want to get to the last one,
number four. But before we do, how much do you
think social media has to do with the fact that
some of these myths I suppose have spread because I mean,
they've been around forever, but it's always been like your
crazy cousin or something who has these theories. But now
(18:21):
that crazy cousin has a platform, it spreads.
Speaker 3 (18:24):
And the thing with social media is you're seeing between
three and maybe thirty seconds depending on the you know,
what their hook is and how engaged you are. You're
not getting the full picture, and you don't have any
insight as to what their financial situation looks like, what
their goals are, what their safety nets are, you know
where their wealth really is, and really if they are
(18:45):
actually have any real results behind what they're banging on
about as well.
Speaker 2 (18:50):
All right, number four, last one? What is it?
Speaker 3 (18:52):
Don't bother getting a second job. You're just going to
get taxed where there's that character just came just it's.
Speaker 1 (19:01):
Quite a vicious impersonation of someone who is is it
someone that you know or is this just.
Speaker 3 (19:07):
Oh, I've heard this is what I mean that I
still hear this today. It's so frustrating. And because all
these people, would millennials have been jumping up and down
about on social media about having owing money the ATIO.
This is where I think a lot of people I
think it just gets It's been this, I've heard this
for years. Don't bother getting sex job because we get
(19:28):
taxed on top modal tax rate. There's no point. But
because of so many people being in the gig economy
having taxable side hustles, you know, consulting, you know, wearing
lots of different hats to earn money with just the
rising costs of living, they haven't accounted for their tax
properly in a proactive manner. So they owe tax the ATO,
and of course what do they do. They grab their phone,
(19:50):
they jump on TikTok and they're like, I'm no, seven
thousand dollars the AHO. There's no way I can pay that.
And it just it's just built momentum and it's gone
a little.
Speaker 1 (19:59):
Bit and so has this then come about as well,
because you can only claim the tax free threshold in
your first in one job, and so then they're obviously
then getting taxed higher in the other jobs, or just
not even accounting for it at all and just assuming
that anything they're running a little kind of hustle, they're
selling stuff for the markets or something that it doesn't
(20:20):
count because it's all just cash in hand, but it
does well.
Speaker 3 (20:22):
It's a bit of a mix, so some people not
accounting for the right amount, some people not accounting at all,
some people not realizing that they're site hustle. All is
tax even if they got paid in cash, so it's
still it doesn't matter how you got paid, it's still
going to be taxable. So you know, we need to
remember our tax system in Australia is a progressive tax system.
(20:43):
Your first job you claim the tax free threshold. The
second third four to fixed sixth whatever it may be,
you have to say this is my second job, so
you are there for tax at the top marginal tax rate.
But at the end of the financial year, the ATO
look at the total income and then they will work
out what is the correct amount for the total amount
(21:03):
of income and then if you've paid your tax, depending
on how you've sort of set it up with the
ATO with your accountant to stop on top of your
tax responsibilities, you might get a refund if you've overpaid,
or you'll hopefully you know, if you don't it correctly
not owe any and obviously then you don't get a refund.
So yes, it is a short term tool having a
(21:24):
second job to bring in some extra money, which then
obviously gives you some long term benefits, but it helps
you at the end of the day, and you're missing
the big picture as to how our tax system works.
And it's if you can just get a little bit
of advice from an accountant to set yourself up correctly,
you avoid this drama and you do pay the correct
amount of tax. Whether you're owning ninety thousand dollars off
(21:46):
one job or ninety thousand dollars off five jobs, it
is the same amount of tax that you pay.
Speaker 1 (21:51):
It's such a and that don't bother getting a second job.
It's such a defeatist attitude.
Speaker 3 (21:56):
Yeah, I had as I find really toxic and you know,
it's just so negative and.
Speaker 1 (22:02):
Why bother trying now? Reminded when in the end, the
fact that you are going and having a crack and
doing something else. You are taking charge. You are taking
control of your financial future. And sure the side hustle
might not work out, but at least you've had.
Speaker 3 (22:19):
To go and you have no regrets and you never
wonder while I want to would have happened if I'd
done that? And what if you watch someone come up
the same side hustle idea and they made millions?
Speaker 1 (22:28):
Yeah? What happens if the side hustle suddenly becomes your
main hustle and away you go?
Speaker 3 (22:32):
You know, Tom thinks he invented Uber before it became
and now kicks himself not doing Uber.
Speaker 1 (22:38):
Sorry, wait a second, how did you drop this in
the last minute of the podcast? So what he came
up with the idea, just never did anything with it,
and now unfortunately he is watching this multi multi billion
dollar company.
Speaker 3 (22:54):
He's batting ponies for a living, whilst you could have
a startup Uber.
Speaker 1 (22:59):
I reckon, there's a few bullet would actually say he's
got the better job of the two.
Speaker 3 (23:02):
Well, it's because he doesn't like people and horses don't talk.
Speaker 2 (23:05):
There you go, I reckon, he might be a winner.
Speaker 1 (23:07):
There Okay, four really great pieces of bad advice.
Speaker 2 (23:11):
I love this.
Speaker 1 (23:12):
Number one, super is a scam. Number two invest in
a good watch, expensive suit in European car. Number three,
never pay off your home loan. And number four don't
bother getting a second job because you just get taxed.
I think we can safely say most of these you
can just put them in the bin.
Speaker 3 (23:28):
Right yeah, shred it and then put in the recycla bullet.
Put it please.
Speaker 2 (23:33):
I'm just going to say burn it.
Speaker 1 (23:34):
But that's bad for the environment, isn't it very That's
very responsible?
Speaker 2 (23:36):
All right, Canna.
Speaker 1 (23:37):
If we want more information, where do we find you?
Speaker 3 (23:39):
The best place to get in contact with me is
it Sugarmuma TV on Instagram and.
Speaker 1 (23:43):
You can hear me every day with shortn ailmer on
Fear and Greed business news you can use. Thank you
very much for listening to how do they afford that?
Remember to follow on the podcast. And the best thing
you can do is tell somebody else spread the word,
send them a link to this episode and get the
word out there about how to do they afford that?
Thank you for your company on us again next week.
(24:04):
M HM.
Popular Podcasts
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com