November 18, 2025 • 52 mins
We all want a bigger super balance… but how do you actually make that happen in real life? Part 1 in our Super Glow-Up series got your foundations sorted, but part 2 is all about small things you can do to turbocharge your growth. We’re talking simple, realistic changes that add up to massive long-term results, even when life is expensive and you’re just trying to get through the week.
In this ep:
💸A $25-a-week habit that could snowball into 6 figures
💸How a risk setting change could double your balance over time
💸A government bonus you might already be eligible for
💸The pre tax contribution hack that feels illegal (but isn’t)
💸Why even a 1% return difference can mean hundreds of thousands to your retirement
SEE: How small changes to your super can make a big difference to your balance with the Moneysmart Superannuation Calculator.
LISTEN: Your Superannuation Glow-Up Part 1: The $0 Tweaks That Could Change Your Retirement
Join our Facebook Group AKA the ultimate support network for money advice and inspiration. Ask questions, share tips, and celebrate your wins with a like-minded crew of 300,000+.
And follow us on Instagram for Q&As, bite-sized tips, daily money inspo... and relatable money memes that just get you.
Acknowledgement of Country By Nartarsha Bamblett aka Queen Acknowledgements.
The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.
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 (00:00):
My name is Tatasha Bamblet. I'm a proud First Nations
woman and I'm here to acknowledge country t Glenn Young
Ganya nianar Kaka yah Ya bin Ahaka nian Our gay
in Nimbina, yakarum jar Dominyamiga Umagahawakaman damon Imlan Bumba, bang
Gadabomba in and now in wakah ghana on yak rum
jar Watnadaa. Hello, beautiful friends, we gather on the lands
(00:24):
of the Aboriginal people. We thank acknowledge and respect the
Aberiginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:44):
She's on the Money. She's on the Money. Hello, and
(01:08):
welcome to She's on the Money, the podcast that's here
to make sure you're living your best life in retirement.
So you might remember our last super episode come out
so much I did. It was just so there's a
lot to take in. And I know that whoever was
listening probably thought the same. And if you didn't I'm
so sorry, And here is the second part. So we
did have to split into two parts, and you guys
(01:28):
have been begging for part two, so today is the
follow up episode you've been waiting for. I'm begsited and
with me is the biggest fan of Super I've probably
ever met, Victoria Devine.
Speaker 3 (01:38):
I love Superannuation so sexy.
Speaker 2 (01:42):
Yeah, I think it can be.
Speaker 3 (01:44):
And I feel like my energy towards Super hopefully rubs
off on our community a little bit, even if it
means you go, what is she talking about?
Speaker 2 (01:54):
Why is she so excited about it?
Speaker 3 (01:55):
Maybe I'll just check to like, maybe I'll just have
a little look see, Yeah, what's.
Speaker 2 (01:59):
All the hype about it?
Speaker 1 (02:00):
Yeah?
Speaker 3 (02:00):
And then you log into your Superinuation platform after doing
like what full password resets and like a code on
your phone or something, and.
Speaker 2 (02:07):
You'll be like, this is actually boring. It's not worth it.
It's not worth it, but I promise it is.
Speaker 3 (02:13):
And I've been so excited to be allowed to be
let loose on episode two because I think once you
realize how much impact even very small amounts and very
small tweaks can have, it stops feeling boring and something
that is for older people or something that is for
future you or an issue you'll deal with later, and
(02:34):
it starts to feel really powerful because especially like you
and I are talking about it all the time. Back
life's expensive. Yeah, absolutely, our budgets are cooked. Like I'm
talking to people in our community every single day, and
that's hard, like not talking to you guys. I love
that part, But like money is hard at the moment,
and none of us feel like we're getting ahead, like
(02:55):
we all just go hold on. I want to start
my investing journey and that's fantastic, But you might not
have any free cash flow because how the hell are
groceries costing you two hundred bucks a week and you're single?
You know, like I just I really truly get it.
But that's where superranuation can make you feel quite powerful
because these tweaks.
Speaker 2 (03:13):
Not a dollar. It's not going to cost you anything.
Speaker 3 (03:15):
I just want you to like clean house, make sure
everything's where it needs to be, and that your money's
growing so that future you doesn't have to worry about
money in the way that current you is.
Speaker 2 (03:24):
And like Beck, that's kind of low key sexy. Absolutely, Lie,
I think it's quite comforting knowing that even if you're
really broke right now, there's a time in this life,
hopefully we get to see it where you actually have
money just waiting there.
Speaker 3 (03:39):
For you, exactly, and like its slow and steady wins
the race, Like I wish that I could waive a
magic wand and like make it really easy for you.
But the reality of money and the reality of superannuation
and the reality of honestly life is it's tiny steps
in the right direction that when you look back, you go,
oh my god, I've come so far, but not going
(04:00):
to wake up tomorrow and be like, oh my god,
you're right, I'm finally good at money exactly.
Speaker 2 (04:05):
It doesn't happen like that.
Speaker 3 (04:07):
And I guess you're my favorite example of this, not
because of superannuation, but because of investing in general. Yes,
like sorry, you now have a little investment portfolio and
you've never been that financially secure before.
Speaker 2 (04:20):
Totally. Did that happen overnight though?
Speaker 3 (04:22):
No?
Speaker 2 (04:23):
And the thing is too, is that like, I still
am completely broke, I don't have any savings, but you're.
Speaker 3 (04:29):
Starting to build your financial security.
Speaker 2 (04:32):
Yeah, of different ways and exact things, And it's very empowering,
it's very very empowering. So it does exactly. It does
not happen overnight. It's very small and there's like there's
a change pie. I guess that someone showed me recently
where it's like thinking about maybe doing something is still
part of the change cycle, and it's like you've been
thinking about it.
Speaker 3 (04:51):
Listening to you listening to this episode like you're doing
really close.
Speaker 2 (04:55):
Absolutely, that's really cool. So before we jump in, can
you give us a quick recap of part one?
Speaker 3 (04:59):
I would love to, but I'd also love for you
to go and listen to that episode if you haven't.
If you have, I'm going to give you a recaps.
So we covered what I would call the foundations, so
the base level of things that you need to understand
about super. So I told you about how you can
check your balance, what my gove is, how that works,
How to check and make sure that your employer is
(05:19):
actually contributing twelve percent and that it's actually being paid
to you. How to use and this is one of
my favorite tools, the Government's your super tool to check
your fund's performance and the fees and whether it's aligned
to your.
Speaker 2 (05:31):
Goals and values.
Speaker 3 (05:32):
How to set up your risk profile for your age
and your goals and what that might look like, and
most importantly, why even like one percent returns can mean
thirty five percent more money in retirement, because I think
so many of us are like, what's the point, Like,
even if I change it and go on this, you know,
bloody Victoria's your super tool that she keeps harping on about,
(05:54):
I'll get one percent more. I can't be bothered. But
like one percent until retirement is thirty five percent more
in your superannuation, girl, that's more than a third more,
like literally not giving another dollar up. Yeah, you just
have to change some boxes and tick something like, sorry,
do it? Just sorry, sorry, I'm not putting up with that.
Speaker 2 (06:18):
That is so fair and really makes sense. Just set
some time aside, and I promise in thirty five years
you'll thank yourself.
Speaker 3 (06:26):
Yes, but you will still.
Speaker 2 (06:28):
Thank yourself, Yes you will exactly.
Speaker 3 (06:30):
So we kind of just recapped what I think is
the starting point, and then you cut me off and said, VI,
I just think that's enough for today. Let's wrap it,
because I think you're being a little bit overwhelming, And
I was like always I would never. If you haven't
listened yet, please hit pause, go back and check it
out with linked in the show notes as well. I
have tried to make it as easy as possible source.
Speaker 2 (06:51):
So I have obviously listened to part one because I
was here. You actually created it with me. I created
it with you, and I know my balance. I'm happy
with my fund. I have like my portfolio set to
the right risk profile, growth option, all that kind of stuff,
and it does. It does Again. If this doesn't make
sense to you, go back and keep one. What should
I be doing next?
Speaker 3 (07:10):
All right, So the next step is contributions. So we're
going to talk about the money that goes into your
account because your employers twelve percent is honestly a fantastic foundation.
But if you want to put future you in the
best possible position, you might be considering adding some more.
You might be adding even a small amount to make
(07:31):
sure that this is a game changing solution for you.
Do you need to do this? I just want to
preface no, because for some of us, we might go, Wow,
like I've actually worked from fourteen years nine months had
this whole twelve percent the entire time, Like everything is
smooth saling, Like my projections are looking really good. V
This like small amount that I could be adding to
(07:52):
my super would be more powerful elsewhere.
Speaker 2 (07:54):
Because I have said before.
Speaker 3 (07:56):
And this is just me going off on a side tangent,
I personally and this is personal. It is not financial advice.
I do not contribute more to my superannuation than I
have to, so like when I started my businesses, again,
complete side note, but I think everyone's pervy, like you
want to know about my money? Right, I started my
(08:19):
businesses and I didn't take my own advice because I
couldn't afford to take my own advice.
Speaker 2 (08:24):
So did I believe that I should be paying myself super? Yes?
Did I have any cash?
Speaker 4 (08:30):
No?
Speaker 3 (08:31):
No, I actually chose to hire Jesse Ricci instead of
paying myself a full wage. I think I was paying
myself thirty eight thousand dollars because I'd done my numbers
and worked out that's how much I needed to contribute
to rent and bills and like that would keep food
on the table and the lights on, and you know,
I could build my business. But I had no superannuation
contributions either, but I kept track of it and I've
(08:53):
since paid that back to myself. But I don't go
above and beyond that, so I'm quote on track for
my aid, but not for what you would probably look
at my financial situation. I think a lot of you
would be like I thought V would have a really
stacked super No. And that's because I've looked at all
of this and been like, great, this is a fantastic foundation.
(09:16):
But I also want access to money outside super because,
as you know, once it goes in, it doesn't come
out until you are at preservation age, and that's over
the age of sixty five. And for me, I want
an investment portfolio that I can retire at fifty with.
So that's where all my cash is going back. Cool,
So like, am I investing Hell? Yes, but am I
investing more in my super No? Do you know what?
(09:37):
As I get older, I think I might do a
bit more. I'm about to purchase a new house with
my husband, hopefully fingers crossed, and once we work out
the financials of that, so like you know what our
actual purchase price is, what our mortgage repayments will be,
I think I might consider it just to top it
up early, because the earlier you do it, the less
contributions you need to make for the long term. Sure,
(10:00):
like I might add another one hundred dollars a month
or something. Sure, but that's actually the same as somebody
ten years from now adding five hundred dollars a month. Yeah, gotcha.
So like, I'm just gonna make sure the maths works
and I actually have some free cash flow that I
can know realocate, but right now feels weird because I'm
like in this financial limbo of not knowing what our
(10:20):
mortgage or payments are going to be and like moving,
you know what I mean. It's a bit, it's a bit,
you know, Iffy. Anyway, that was a side note because
I think that people are pervy, and I also just
want to say if you can't contribute extra, great, that's fantastic.
But you're listening to this episode and you're not gonna
bloody turn it off because I want you to know
what that means. So if you get to that financial position,
(10:41):
you already got the knowledge, you already got the education.
Speaker 2 (10:43):
God, she's good, right.
Speaker 3 (10:44):
So one of my reasons for loving extra contributions into
superannuation save money on tax. You guys have all just
done your tax returns. I know you have because you
wanted your cash back. You all want tax savings, and
you don't care about super sit down, My god, so true, Beck,
How quickly did you file your tax return to get
(11:05):
your tax back?
Speaker 2 (11:06):
Literally July one?
Speaker 3 (11:07):
So why don't you care about the sexiest tax environment
in the country. Yes, literally, salary sacrifice before tax contributions
are taxed at only fifteen percent instead of your full
marginal tax rate.
Speaker 1 (11:21):
Yes.
Speaker 3 (11:21):
So, for example, if you had a ninety thousand dollar income,
your marginal tax rate is thirty percent plus you would
be paying a Medicare levey. I just feel like I
need to add extra context of like two percent. So
every one thousand dollars that you sacrifice into your superannuation
only gets hit with one hundred and fifty dollars worth
of tax instead of three hundred and twenty dollars of tax.
(11:45):
So your money's working hard a few instant return I see,
because you're taking app before you get your pay slips.
You've got your payslip and it was in your bank
account and you put it in your Supercome tax time,
you'd get that fifteen percent back from the tax man.
Speaker 2 (12:00):
Yeah, so you'd get a better tax return. Oh great.
Speaker 3 (12:02):
So it's like either an no hour or later. Yeah,
so you will get it back either way. So if
you're doing it before tax, like you went to your
employer and said, you, vickid, I want to contribute more
to my super and I go, great, no worries how much?
Speaker 2 (12:12):
And you say one thousand dollars.
Speaker 3 (12:14):
You'd only be taxed one hundred and fifty dollars on that, yes,
And I would work all of that out for you
come out in the wash. But if you were like, oh,
I don't really know, I might need that cash for
now for later, and then you're trying to make a
decision on some money inside your bank account and you're like,
actually I want to put it in my super, you
would have already paid three hundred and twenty dollars on tax. Yeah,
but come tax time you would have put your hand
(12:36):
up and said, hey, tax man, I actually popped some
money in my souper this year, and they would give
you the difference back.
Speaker 2 (12:41):
Oh my god.
Speaker 1 (12:42):
Yeah.
Speaker 2 (12:42):
So you're not going to miss out regardless of where
it goes.
Speaker 3 (12:45):
Cool.
Speaker 2 (12:45):
So I just want to quickly sum it up in
case it sounds busy, because I think in my brain
it is.
Speaker 3 (12:49):
A very little bit at making it complex. Yes, that's okay.
I think you've done a very good job explaining it.
But for salary sacrificing, I believe this is the term.
If you say, like it paid four thousand dollars every
month after tax, then instead you put a salary sacrifice,
like a little bit of money towards SUPER before that
money lands in your bank acount before the tax is
(13:11):
kind of like added to that pace lit.
Speaker 2 (13:13):
Yes, that's tax to fifteen percent. Yeah, and then after
I let's say you're like I don't want to do that.
You wait for your money to land your bank account
that's after tax, and then you can put money in
your super yourself that can come back.
Speaker 3 (13:26):
To your attack. So you're you're going to yes the
tax savings one way or another. It just depends which way.
Speaker 2 (13:32):
It just depends.
Speaker 3 (13:33):
And like, not all of us are in positions where
we can call up our employer and make consistent contributions.
Speaker 2 (13:39):
But you might have gotten like some cash on the side.
Speaker 3 (13:42):
Like a lot of our community recently have been talking
about superannuation and some of them are like, oh, well,
I got in inheritance or you know something like that.
I came into a lump sum of money and I
want to put a little bit into my super because
obviously I want to boost myself up. At that point
you would.
Speaker 2 (13:57):
Get tax back.
Speaker 3 (13:58):
So I think it's important to just know that it's okay.
It'll come out in the wash, but you know, you
don't get to see it until tax time and you
actually do your tax and you see it on paper,
and then you know it hits your account. But also,
the other thing I want to talk about here is
government boosts. So the government does a lot to try
and incentivize us to get more money into superannuation. Personally,
(14:21):
I don't think they do the best job ever at
articulating that because most of us don't know about it.
Speaker 2 (14:26):
It's going to say they do everything they can accept
for educators and let us know that this is a
the Yeah.
Speaker 3 (14:32):
So that's why I go and read the ATOS website
and then I call you out and I'm like, beg,
this is so sexy.
Speaker 1 (14:37):
Yeah.
Speaker 3 (14:38):
Don't read it on the Idea website though, because as
much as it makes sense, because their website's great, it's
just not the most esthetic website.
Speaker 2 (14:45):
Yes, but if you're a LISTO, so that is.
Speaker 3 (14:49):
A low income super tax offset person, so it means
that you earn less than thirty seven thousand dollars per year.
You can get refunds up to five hundred dollars of
the fifteen percent contributions tax on concessional contributions paid by
you or your employee.
Speaker 2 (15:08):
I see you get five hundred bucks, you have five
a bars. You can get up to five hundred up
to okay, And the concessional is what I'm hearing a lot,
and I actually don't know the difference, like non concessional
and concessional contributions. What does that mean?
Speaker 3 (15:23):
Concession cards? So you know how you get your concession card?
Speaker 4 (15:27):
Yep.
Speaker 3 (15:27):
What do you get when you get a concession card? Discount? Discount?
So concession is a discount, non concession, non discount. Ah,
so just say it like that, just like anyway, we'll
move on. If you earn forty seven, four hundred and
eighty eight dollars or less and put in at least
one thousand dollars after tax, the government will chip in
(15:51):
a co contribution for you of five hundred dollars. Oh okay,
So that's a good deal. That co contribution gradually reduces.
If you're income is between forty seven thousand, four hundred
and eighty eight dollars and sixty two thousand, four hundred
and eighty eight dollars. Why is it that number? I
don't know. I don't make the rules. I just report
on them. And then if your partner or your spouse
(16:13):
earns thirty seven thousand dollars or less, you can actually
go and make a contribution to their supranuation account and
claim a spouse contribution tax offset of up to five
hundred and forty dollars, which I think a lot of
you are like, that doesn't actually add that much, but go,
It's five hundred and forty dollars of like literal free
money by doing something for future you.
Speaker 4 (16:36):
Yeah.
Speaker 3 (16:36):
Sorry, it's been a weak a good deal, and I
mean a lot of you especially, And I like, I
look at it and I go, what the hell, like,
do you know what? Personally, I don't know anyone who
currently earns thirty seven thousand dollars and has some extra
cash to contribute to superannuation totally. Let's just keep it
real as well. But this does work often if you're
on maternity leaf or if you are taking leave, you
(17:00):
aren't working full time, and your partner is a higher
income earner, that is a really good strategy to just
like boost your super a little bit money in right, Yeah, absolutely,
So it's I guess.
Speaker 2 (17:11):
Like what I want to do. Is it really worth
putting more into super on top of what my employer
is already paying. I guess it kind of depends on
your personal situation. And I gave you the context that
I haven't done it.
Speaker 3 (17:21):
Yes, And I think that that's a really important piece
of context because I can't tell you whether it's worth
it or not on paper one hundred percent. Yeah, Like
if we do the maths, the maths maths. Yeah, And
the thing I want everyone to know is it doesn't
actually have to be hundreds of dollars a week to
make any type of difference. We see it in our
community all the time. So, like I had a girl
(17:43):
message me and she's like, Victoria, I you know, I
want to share this with you. But I have been
putting ten dollars a week extra into my stuperannuation since
I got my first job because my dad told me to.
Oh my god, I don't know why, but like that's
just what I've always done, and like I've boosted it up.
I'm now making one hundred dollars a week as an
additional contribution because it's like just crept up and she
hasn't noticed it, and she has like one hundred and
(18:04):
fifty thousand dollars in Super now wow, and she's like
twenty six. That's amazing, right, Like, just from little things,
big things grow, and the power of compounding means even small,
regular contributions can change your retirement balance by literally hundreds
of thousands of dollars. Like and honestly, the sooner you
(18:26):
start contributing, the longer and better the impact. Right, because
if we look at the rule of seventy two, which
we might do a whole podcast on, but it's basically
that money doubles every seven to ten years. Let's take
our twenty five year old friend, yeah, thirty five. If
she didn't make an additional contribution to her super three
hundred grand forty five, six hundred grand at the age
(18:50):
of forty five, she already has more superannuation than most
women in Australia retire with.
Speaker 2 (18:56):
Oh my god, and.
Speaker 3 (18:57):
That's a forty five, yeah, fifty five, one point two
million dollars back.
Speaker 2 (19:04):
That's insane.
Speaker 3 (19:04):
Let's stop it, and she's going to keep contributing, so like,
don't get me wrong, we don't all have one hundred
and fifty thousand dollars. But like if you're just like, okay, cool,
well I can't do much, but this is what I
can do.
Speaker 2 (19:14):
Yeah, pop off? Yeah, do you know what I mean?
Speaker 3 (19:17):
Like, it's just let's do what we can do, and
if we can't do anything, let's also not shame ourselves
because we're doing the best that we can.
Speaker 2 (19:23):
Yeap so true?
Speaker 3 (19:25):
So yes, I think it is, and I've got another.
I wrote down another example for you using I think
some more numbers, because you know, our community member is
a good example, but I don't know her tax right,
So let's just use the medium balance from our community.
So as you guys know, we always ask you questions
because you're our listeners. Relying on ATO and asset data
(19:49):
can be good, but I don't think it's reflective of
people who care about their money as much as the
average Australian. So our averages are a little bit higher
because you guys are actual bosses and I love it.
But the medium balance from our community for twenty nine
to thirty two year olds is about eighty eight thousand,
five hundred dollars. Well, I'm also going to use the
(20:12):
median Australian wage, which is about eighty eight thousand, four
hundred dollars a year. That way, it's not I don't know,
some made up number. It's where a lot of people
and our audience are actually sitting right now, like that's
just what happens. So, if you're just stuck with your
employer's twelve percent contributions that they have to pay you,
by the time you retire at the age of sixty seven,
(20:34):
which is our preservation age, you'd have around two million,
four hundred and twenty three thousand, nine hundred and thirty
three dollars in superannuation. WHOA, and that is assuming a
rate of return of six point five percent. Oh so
it could be more, which I think is not a
great return. Do you know what, That's a great return
(20:55):
if you are in a balanced fund.
Speaker 2 (20:57):
Yeah, but most of us don't.
Speaker 3 (20:59):
We're not. Those's not that's not my journey. It might
not be your journey, and it could be your journey,
and that's okay. I just I mean, I would be
disappointed if my super was only returning six point five percent,
But that's the deal, right, I still want to retire
with about two point four mil. But if you had
some extra cash back, Let's say that you had twenty
five dollars a week extra instead of two point four million,
(21:20):
you'd end up with two million, six hundred and nine thousand,
five hundred and five dollars, which is about one hundred
and eighty five thousand, five hundred and seventy three dollars
more at the time of retirement, even though you only
contributed about forty eight thousand dollars extra your entire working life.
Speaker 1 (21:39):
Yeah.
Speaker 2 (21:39):
Wow, okay, okay, okay.
Speaker 3 (21:41):
That's like one hundred and forty thousand dollars worth of
free money. That is nearly a four times return on
the contribution you made thanks to compounding and the amount
of time in the market. Yeah yeah, yeah, just because
you made a good investment and you like you know,
whent and bought bitcoin and you got the best return ever. Sorry,
that's with a six point five percent return. Yeah. The
average rate of return of the Australian market is about
(22:03):
nine point eight percent at this point in time. So
like we're just being real conservative totally. And I prefer
to be conservative because I'd prefer to underpromise over deliver. Yeah,
but I'm telling you, right, now, if you do this
and you retire and you're sixty seven, you have to
call me up and be like, Va, oh you are coffee.
Speaker 2 (22:20):
Can I ask you something that's probably it's not personal advice.
Speaker 3 (22:24):
I think I just want I think it's an ask
personal advice, so I'll deflect it.
Speaker 2 (22:27):
Thank you so very well. I think I just want
peace of mind because I and this might shock you,
but I'm thirty three years old and that part won't
shock you, the fact that I'm thirty three actually, but
because I look probably older. But I have, like I
think I have seventeen thousand dollars in my super. Okay,
do you feel like there's there's if I started right now,
there's chance of me to be one hundred percent. Why
would that not?
Speaker 3 (22:47):
That's very company like, Sorry, that's gonna happen for you anyway. Okay,
So I'm quite aggressive when it comes to being your friend.
I made you get an investment portfolio, and the next
step was to cost you on your superannuation. Yes, yes, perfect, okay,
co Well, just small contributions, because think about it, if
(23:07):
we look at your super, you are behind yep. Is
that the worst thing in the world. No, you're thirty three. Sorry,
we've got thirty plus years before you retire. I've got
all the time in the world. I also know that
taking you as an individual, and this is not meant
to be offensive, Taking you as an individual one of
the best things. And again this isn't personal advice. This
(23:31):
is just an example. One of the best things I
can do is automate that for you. Yeah, because I
know that if you came to me and said, Victoria,
how do I do it? I want to contribute twenty
five dollars extra to my super every single week. I go,
that's a great idea, Beck. I'm glad that you had
that and came up with that idea.
Speaker 2 (23:47):
All of them your own.
Speaker 3 (23:48):
It wasn't financial advice. So you came up with that
idea and you came to me, I could say, well,
you know, it's really easy. All you do is transfer
every single week twenty five dollars.
Speaker 2 (23:57):
Yeah, are you going to do that? Probably not an
my own? No, no, no, And that's okay.
Speaker 3 (24:02):
So we go, what's the best strategy for Beck at
this point and for you personally? Knowing you well enough,
I think out of sight, out of mind is the
best strategy. So what we're going to do is talk
to your employer and say, hey, employer, you've got all
my superanuation details. You're going to email your HR and say,
I would like to contribute an additional twenty five dollars
(24:25):
a week or one hundred dollars a month to my superanuation.
Can you please set that up so that every single month,
before my pay comes into my account, it comes out beforehand,
totally make sure I have no But I love and
know you very well. I know you would give me
a month and you already would have forgot that you
set that up. But it's ticking away in the background,
(24:45):
and twenty five dollars per week after tax like into
your account. Honestly, I don't think personally you would notice
it because I know your money type, because I know
your spending type. It's not that you don't earn a
good income, it's just if it's in your account, you
offend it. So I'm just not going to let it
hit your account. Yeah yeah, yeah, right, like I just
(25:06):
took it off you already.
Speaker 2 (25:07):
Oh my god, thank you. V.
Speaker 3 (25:08):
So I think you just need to talk to yourself
about what strategy is going to work here, Okay, because
there are some people that are incredibly empowered by going
in every single week and updating their spreadsheet and making
these manual transfers and pop off queens. That could never
be my ADHD journey. I wouldn't do to.
Speaker 1 (25:27):
I love it.
Speaker 3 (25:28):
I love the idea that I would update my spreadsheet
every week. Yeah I don't. I just go back maybe
once a month, and then update it quote on a
weekly basis, so that I've got all the information. Yet
it takes me a lot longer because I did it
every month instead of every week, because I always let
that stuff lapse. Of course, you just have to know
yourself well enough to be honest with yourself.
Speaker 2 (25:50):
So are you behind?
Speaker 3 (25:51):
Yes?
Speaker 2 (25:51):
Does that matter?
Speaker 3 (25:52):
Absolutely not.
Speaker 2 (25:53):
That's cool.
Speaker 3 (25:54):
That is so comfidible. I don't care that you're behind.
I care that you're sitting in this chair. I care
that you're listening to this podcast yourself in the best
possible position. And you know what, there are lots of
people that are thirty three that don't even have seventeen
thousand dollars in their super Yeah.
Speaker 2 (26:07):
So sorry, you're starting from somewhere exactly, and it's never
too late to start if you start right now. Today
I saw this lame.
Speaker 3 (26:15):
I don't know if it's lame. It's lame that I'm
sharing it, but it wasn't a lame quote. The other
day someone said, you're not starting again, You're just starting
from here. Yeah, And I think that that's so much
nicer than expecting that, Oh, Beck, start again, like wipe
your slate clean. Yeah, and I'm just starting here. Yes, good,
I just start from here.
Speaker 2 (26:33):
Oh my god, there's a way better way to look
at it. So sorry. I hope that that helped.
Speaker 3 (26:39):
But we just had to know ourselves and our strategy
and what would work best for us. And the only
reason I know the answer to yours is because I
know you so well. Yes, that other people might resonate
with that and go, oh my god, like that's so
me as well. Yeah, like if it was in my account,
bloody spend it. But if you took it off me. Also,
what's the harm in trying? What if we did that
(27:00):
strategy for you, Beck, because that's what you personally decided,
and then you're like, well, I'm actually short of cash
every single month. Yeah, so let's email HR and turn
it off totally.
Speaker 2 (27:11):
And then that money hasn't gone to waste. It's just practiced.
We just tried it exactly.
Speaker 3 (27:16):
Okay.
Speaker 2 (27:16):
I really like that, Thank you, V. So tell me
more about the options and like the portfolios and things
like that.
Speaker 3 (27:22):
So like, I have not always been good at money,
which I hope everybody knows. Like I wasn't born a
financial advisor. I was born a finance girl, but didn't
want to identify as a finance girl. I should have
known from the start. My dad's an accountant. I'm born
on the thirtieth of June. Like I was in athletics.
Speaker 2 (27:39):
That's so cute.
Speaker 3 (27:41):
I just I was real cool at school anyway. I
just had my head in the sand about all of
that because the school system that I grew up in
didn't teach us about superannuation, So how else was I
supposed to know? And I personally was using a balance
to portfolio for a very long time because it was
just when I filled in my superforms at my first
(28:05):
ice cream shop job. That's just what I ticked because
it said it was the most common, right, So I
was like, yeah, all right, And I used a balance
to portfolio in that first example because that's where most
people default too. But I also have an example of
what happens if you took that exact same person and
she was going to retire with one hundred and eighty
(28:25):
five ish thousand dollars more anyway, and switched to a
growth option. Because remember before I was like, oh, I
don't know if I would accept six point five. You
might and that's fine, but I'm just opinionated and I'm
just a growth girlye right. Remember, we are only doing
employer contributions. The balance option landed at them having about
two point four mil in retirement. But if they'd chosen
(28:49):
the growth option from age let's call it thirty beck. Yeah,
because we're not all starting at the age of eighteen,
and I think that we need to get rid of
examples like that because most of our listeners are not eighteen. Yes,
it's gone through our late teens, and then we went
through our early twenties and then maybe we've decided we
need to get our shit together because thirty is real close.
So let's use that as an example. Same salary, no
(29:10):
extra money going in, Yes, so their balance could be
four point eight nine million dollars. Wow, that's yeah, that's
more than double and double. Yeah, it's more than double
the outcome just from going in and changing her risk setting,
not from putting in a single dollar.
Speaker 2 (29:26):
That's crazy, and that would have taken like if you
remember your password and all your log in details that
which you can reset your password. It's really annoying. Yeah,
but that would take thirty seconds.
Speaker 3 (29:35):
Yeah, And we're not saying go in and change No,
we're saying, go and do your risk profile and like
make sure that that suits you. And then if it
does suit you and you find that you are a
growth investor, well why the hell you imbalanced? Totally you're
in the wrong room, babe.
Speaker 2 (29:50):
You're in the wrong room. You walked into the wrong
class at school, exactly. You got to get up and
get out.
Speaker 3 (29:55):
Otherwise you're not learning what you need to learn, and
you're not accessing what you need to access.
Speaker 2 (29:59):
And it's cost to yeah.
Speaker 3 (30:00):
Yeah, And so that just shows how small choices can
make massive impact over decades. Like none of this and
I'm really sorry. In twenty twenty five, we are all
instant gratification girlies. This is long term gratification, and that's okay,
But you don't have to suddenly throw thousands of dollars
into souper. Sometimes it's just about checking that you're in
(30:22):
the right investment option and making like one tiny tweak
and then saying say good night and then wake up
thirty years later in WHOA.
Speaker 2 (30:30):
That's so true, right, I have to know what if
the growth option added twenty five.
Speaker 3 (30:35):
Dollars week, so you're like making extra contributions in addition, yes,
in addition, So like, let's do the same example. We
already know that that person, if they're inside the growth option,
are at the age of sixty seven.
Speaker 2 (30:47):
Our preservation age crazy word, Yes.
Speaker 3 (30:50):
But I'm trying to like drill it into you so
that you understand it, because that's how the government communicates
with us. Yes, so they talk about your preservation age,
and if they are talking about that, that's the age
at which you're able to access every single dollar in
your superannuation tax free. Yes, ma'am preservation. That's great because
I'm so old I need to be preserved exactly. So
(31:10):
they would retire at the age of sixty seven with
four point eight nine million dollars, yes, right, so then
that's just base contributions. Then they're like, I really want
to add twenty five dollars extra because I heard the
example Beck and v were talking about, Yeah, that balance
actually grows to five point two to two million dollars. Okay,
so that's an extra three hundred and thirty thousand dollars.
(31:32):
But for the same contribution she made when she didn't
have a high growth portfolio, she had balanced to forty
eight thousand dollars. Yeah, so over that time, you can
make a decision, right, So do you want to save
your money or do you want to invest your money back?
If you save your money, you'll end up with forty
eight thousand dollars. If you invest your money over the
same period of time, three hundred and thirty thousand dollars.
Speaker 2 (31:51):
Which one would you like to take home?
Speaker 3 (31:53):
Well, that's a hard one.
Speaker 2 (31:54):
Yeah, we can't give you advice, but like, you make
a decision for you, right. That's crazy.
Speaker 3 (32:00):
Just to put that into perspective, the person who stayed
in that balanced option with no extras, so still in balance, yeap,
would have about two point four to two million.
Speaker 2 (32:10):
Dollars, which ain't anything to sneeze at.
Speaker 3 (32:12):
And then the person who switched to growth and then
was like, oh, I really want to do an extra
twenty five dollars a week Like that wouldn't you know,
blow my budget out. Yeah, they retire with five point
two two million dollars. That's like a difference of two
point eight million dollars for the same starting balance, the
same salary, only twenty five dollars a week extra. So
(32:33):
remember those ads, you remember the hest ads like but
do this and stand at the escalators and ones going
up the escalator and the others on the broken escalator. Yes,
that's what we're thinking. I see. Oh my god.
Speaker 2 (32:45):
Okay, So it's a lot of numbers. It's a lot
of numbers.
Speaker 3 (32:48):
But what I want you to take from this is
if you take action and you put yourself in the
right possible position, there's a lot more numbers in your
bank account. Yes, I see.
Speaker 2 (32:58):
Okay, So I think this was a good time to
let our brains kind of have a little rest. Let's
take a second to process it, take a really quick break.
Speaker 3 (33:05):
Oh and a little sub note from me, because my
financial advisor, or my ex financial advisor hat goes on.
I also need to say past performance is not a
reliable predictor of future performance, which has been drilled into
me time and time again, really legally, because if we're
going to start talking about you know, performance and returns
(33:25):
and consistent returns like go, go, look at the Vanguard
index chart. We know that people who invest consistently over
a thirty plus year period of time do not lose
money in the market. But we also can't predict what's
going to happen into the future. So I don't want
you being like, wow, I listened to this podcast and
it's an absolute guarantee, Like I just have to put
(33:46):
my financial advisor hat on it, and I'm going to
take it off because we're going to talk about some
like fun stuff after it go to a break, and
on the flip side, we'll dive back in and I'll
be less formal. Right before the break, I threw a
lot of numbers and a big disclaimer at you. But
the key takeaway, my friend, is that tiny contributions plus
(34:07):
the right risk option can literally add millions to your
supranuation balance. That's crazy. I want to be rich. I
don't know about you. That sounds like a terrible thing
to say sometimes, but like, do you want to be
rich too? Yeah? I think i'd like that. Yeah, I
think it'd be good. Like imagine not thinking before you
tap your cart.
Speaker 2 (34:22):
Oh my god, the amount of times I have to
I always transfer myself first, I'm like, where am I
going to take.
Speaker 4 (34:27):
It out of?
Speaker 1 (34:27):
Now?
Speaker 2 (34:27):
It's like to be financially comfortable.
Speaker 3 (34:30):
But also sorry, now we've got these options and Beck,
you're only thirty three, Like we can actually plan to
be rich. Yeah yeah, sorry, it's actually not beyond you
to just get rich af Yeah, so like let me
help you do that? Oh my god, because like then
you could be your own sugar mamma. That's a good deal, right,
thank you. Also, I want to remind you that the
(34:51):
free tool we spoke about in that first episode, it's
called how much super do I really Need? That is
a very very cool tool that we're going to revisit.
Right So, in the Government's Money Smart super Calculator, there's
like a little section where you can actually play around
with adding different contribution amounts and it will actually calculate
(35:11):
the difference it will make to your superbalance over the
long term. Because you might go, well, V, I can't
afford an extra twenty five bucks a week, and I go, yeah,
like I get it, I really do. I'm just giving
you examples and want you to be excited about maybe
doing this and you go, well, I could do five bucks. Great, Great,
that's somewhere to start, because then maybe a couple of
(35:32):
months later, you've got a little bit extra wiggle room
and at seven dollars, like, we're not talking that you
have to make these big, grand commitments. I mean you
might turn around and be like, fire out. My partner
and I we're double income, no kids. Why aren't we
doing this while we're in a more luxurious position? Yeah,
good question. Yeah, but if you are hamstrng goal like
(35:53):
gets it? Yeah? I just I feel like I just
don't want anyone to listen to our content back and
be like, wow, that wasn't for me. Yeah, totally. Like
even if you don't have extra cash, have you not
got the education? Now? Like if your friend's like, oh
my god, I've started saving extra twenty five bucks at
your new friend Olivia's Bark or Jernie's Queer Bar, which
we're very excited about. But it's got beautiful branding.
Speaker 2 (36:15):
Who did that? Oh well, I could say a little
non paid graphic design named ex head.
Speaker 3 (36:22):
I think you might get a few drinks out of
that though, Yeah, a couple of little cheeky soda waters
where she could do. But if you're at Bernie's Bar
and your friend is like, oh, I've got like some
stuff I've started to save, I can almost guarantee you'll
be like, so have you thought about Super?
Speaker 2 (36:38):
Or so have you been investing?
Speaker 3 (36:39):
Like these conversations are going to happen and we benefit
the whole community totally.
Speaker 2 (36:44):
You don't even have to be doing it yourself.
Speaker 3 (36:46):
It might not benefit you right now because we just
don't have the cash and we're relying on the free
soda waters.
Speaker 2 (36:51):
Absolutely in the future, it will. A penny saved is
a penny. And they say, exactly are the rules on
how much you can add to your superreachier? Is there
a cap or a minimum?
Speaker 3 (37:00):
Good question back, because there are government caps on literally
how much you can put into Super and it changed.
You're before tax contributions like the Super guarantee, salary sacrificing
or anything that you are claiming a deduction for. The
cap is thirty thousand dollars a year from July twenty
twenty five. Okay, that's increased, which is kind of sexy.
(37:23):
This includes your employers twelve percent, So that's where it's
not like an additional thirty grand which would be nice.
Speaker 2 (37:30):
Unrelatable, but nice.
Speaker 3 (37:32):
So for example, if you're on like a median wage
of eighty eight thousand, four hundred dollars, that's already about
ten thousand, six hundred dollars that's going into your SUPER.
So that then leaves you with nineteen than four hundred
dollars worth of extra wiggle room if you want a
salary sacrifice. Okay. There's also a very cool rule which
(37:53):
you might not care so much about when you're young,
but as you get a little bit older and maybe
you haven't been making the most of your caps or
your life, Oh my god, what do I do? Like,
you know, I've got all of this cash saved because
I was being real conservative and I'm just not you know,
I wasn't ready to put it in Super, but now
I really want it in Super. There's a really cool
rule called the carry forward rule. Okay, and if your
(38:14):
superanuation balance is under five hundred thousand dollars, you can
actually use easy any of your unused concessional cap space
from the past five years. Really yep, So if every year, like,
let's go back to that eighty eight thousand dollar example,
so your salary's eighty eight grand. You're making about ten
six hundred dollars of contributions just as you're twelve percent,
(38:36):
and you've got nineteen thousand left every single year. You
could do nineteen nineteen nineteen and then bring it all
forward if you had a heap of savings or you
got a inheritance or came into a lump sum of
money and drop it in and still only pay fifteen
percent taps.
Speaker 2 (38:53):
So good.
Speaker 3 (38:54):
The important thing is when you drop it in, you
need to let your superanuation know that you will be
claiming that on tax, and that's a separate form. Yeah, okay,
miss it, lose it, yep, don't get to claim it.
And that's bullshit. Yeah yeah, So I'm just calling it
out if you're like, that's a great thing. I didn't
realize I could do that, and you just dump it
in your super and then you do not tell your
(39:15):
superannuation company that you're planning on claiming that on your
tax return this year, and then it passes and you
haven't done your tax. There's not a lot of wiggle room.
Speaker 2 (39:24):
That's so mean. Yeah, yeah, but this is huge.
Speaker 3 (39:28):
So this is huge for people who have had time
off work or you're only starting to contribute later.
Speaker 2 (39:33):
Like it's like the catch up.
Speaker 3 (39:35):
So you know how you were saying before V I
only have bloody seventeen thousand dollars in my SuperM I behind. Yeah, well,
yes you're behind. But hypothetically you can also use your
unused cap if you wanted to into the future. Yeah,
so like we can top it up, we can work
it out if we have access to cash. Absolutely. Now,
our non concessional contributions these are our after tax moneies
(39:58):
that you deposit into a super count, and the cap
for this is one hundred and twenty thousand dollars a year,
which is a lot of money, unrelatable but like just
good to know. Or up to three hundred and sixty
thousand dollars at once. Okay, if you trigger the carry
forward rule and your balance is below the threshold.
Speaker 2 (40:17):
Before or after or it doesn't matter. What do you mean,
Like if you put the three hundred sixty thousand dollars
for example, and then now it's over.
Speaker 3 (40:24):
Yeah, the threshold yep, so you can dump it in
if your income plus super contribution is over like two
hundred and fifty thousand dollars, your concessional contributions are actually
taxed at thirty percent instead of the fifteen. Oh, so
that's still a better deal. That's still a better deal. So,
like you're paying close to like forty five percent tax
(40:44):
at that rate, so you're still getting a discount, but
it's definitely not that fifteen percent. Sure, So like that
is probably why it's unrelatable, because like, I don't know
that many people unless I have worked with like high
income earners or I've worked with, you know, people who
have inheritances who are dropping in three hundred and sixty
thousand at once.
Speaker 2 (41:01):
Yes, but I've seen it, like it happens.
Speaker 3 (41:04):
You're just on a non favorable tax rate, but it's
still better than the tax rate you'd pay. Totally, it's
better than to kick in the pants, you know, absolutely. Okay, Well,
I gotta tell you it's a lot to take in.
But I do want to move on to this next
one because we get this question constantly community.
Speaker 2 (41:22):
They always want to know should they be putting extra
into this super or investing outside of super. I can't
tell you.
Speaker 3 (41:30):
I can't say I can't tell you, but I think
that I've given a little bit of context along the way, right, Yeah, great,
Like I've told you what I do, Yes, And I
think that might be helpful, especially if you're trying to
make your own decisions, not because you want to copy me,
but because it's good to kind of crowdsource. Oh what
are you doing, Becko? What are you doing?
Speaker 1 (41:47):
Then?
Speaker 3 (41:47):
Like you just find things that you might be comfortable with,
or you might find things you're like, I'm not comfortable
with that. Like someone might be listening to this beck
and being like, holy shared, Victoria. Did you know she
doesn't take advantage of super in the world that she could, Like.
Speaker 2 (42:01):
That's so dumb.
Speaker 3 (42:03):
That's fine, totally, Like there's actually no right or wrong
when it comes to what's happening, And it really depends
on your personal goals and your personal timing. So if
you need and this is just all general, just like
what usually happens in financial advice land.
Speaker 2 (42:19):
If you need the money before you're sixty years old, that's.
Speaker 3 (42:22):
When you should look at investing outside of super Yes, Okay,
if your goal is to purchase your first home. For
first home buyers, the first Home super Savor scheme let's
you save up to fifteen thousand dollars a year, or
a total of fifty grand through SUPER that you can
then withdraw later. So you might want to be making
those non concessional contributions. Yeah, okay, so that you can
(42:44):
draw down on them later.
Speaker 2 (42:46):
For a home deposit, I've always wondered what the benefit
of that. Do you also get the interest that's paid
onto it, Oh, fifteen percent super? So you like yes.
Speaker 3 (42:55):
So let's say you've got your house deposit saved and
like you know, you're slowly chipping away and you've got
fifteen grand sitting there, pop it into SUPER and then
pull it out for your house and you've got an
extra fifteen percent back on that money. So true, it's
like legal money laundering. Wow. When I put it that way,
it gets a little bit sexier, a little bit riskier.
Speaker 1 (43:16):
Yeah.
Speaker 3 (43:17):
Yeah yeah. So inside superannuation you are taxed on fifteen
percent on earnings versus your marginal tax rate outside in
retirement phase up to two million dollars is completely tax free,
my god. And then outside of SUPER, like you've got
more flexibility, Like obviously you can access it before the
age of sixty, but you also pay your marginal tax
(43:40):
rate with capital gains tess counts and franking credits and
all of that and we try and make it make
as much sense and make it as beneficial as possible,
but goal you're still paying your marginal tax rate. Absolutely.
Speaker 2 (43:50):
And for those who have no idea franking credits that,
we have an episode about that.
Speaker 3 (43:55):
Yeah, we have a whole episode of franking credits. If
you want a cute little like tld A, frankin credit
is an IOU that comes with your return to say,
this company that I've invested in has already paid tax
on my behalf, so please don't.
Speaker 2 (44:11):
Double tax me.
Speaker 3 (44:12):
Yes, okay, yep, yep, yep, I owe you that's connected
to your share.
Speaker 2 (44:16):
I see, I see, I see okay, So what about
insurance and super? Can you explain how?
Speaker 3 (44:20):
Okay, Okay, I'm glad you brought that up because I
have in stress in balls because so many people hopefully
are like, oh my god, they beck, we're so inspired.
We want to go and change our super immediately. But
please don't do that very quickly, because historically default insurance
was just a given on your super. So you'd like
sign up. When I was younger, I would sign up
(44:42):
for a Super and then I would immediately have insurances
attached to that, and those insurances are.
Speaker 2 (44:47):
Like Hen's teeth. They are.
Speaker 3 (44:50):
I'm not going to say they're the best insurance in
the entire world, because like they might not be. But
you didn't have to do any health check for that, Beck. Yeah. True.
So like I'm I'm going to give you a really
morbid example that's going to make a lot of sense. Yes,
I'm going to use you as an example, but yes,
I love you, But also I think you'll find it funny.
Speaker 2 (45:08):
Beck gloves of ape.
Speaker 3 (45:09):
We know Beck gloves of ape, right, Yeah, absolutely?
Speaker 2 (45:11):
Yeah.
Speaker 3 (45:11):
So if I sent you down to my friends at
Skywealth and said, do Beck's insurances, they would do your
health questionnaire and you would tell them, yeah, I vape,
and then the insurance company would say, okay, Beck, thanks
for that information. So what we're going to do is
exclude lung cancer and not cover you for lung cancer
(45:32):
in the event that that happens, because you're personally choosing
to vape, and you know, obviously we just don't want
to pay for that. It's too much risk, but we'll
give you the insurance, but there's this exclusion for that. Right.
The same thing could happen if you were like a
Keen netballer and you had a really bad knee injury.
And then we go and do that same health questionnaire,
and your insurer is going to go, look, you're a
(45:54):
pretty high risk of another knee injury because you already
have like basically a compromised body part. So we'll cover
you for everything except for your knee. Ye.
Speaker 2 (46:02):
Right.
Speaker 3 (46:02):
So they have these things called exclusions, and for a
lot of us, you might go, well, I'm fit and
healthy and fine, okay, fine, pop off, queen, go get
your insurances done while you are. For some of us,
we get mental health exclusions because we've been very honest
about our situation men in therapy, and there's been a
lot going on. But most funds, so most super funds,
(46:24):
if we have this default insurance, go. You could go
and get lung cancer and still be covered because it
was default and they just gave you blanket insurance. They
didn't do the health questionnaire, they didn't check your knee,
they didn't check pre existing conditions. And you know what,
if you have a pre existing condition, or you do
something more risk averse, like a vape. And I'm just
using that as an example because I do not endorse
(46:46):
vaping and I know you don't either. Well, no, but
you still like it. That can do it. You can't.
But most super funds automatically include some level of insurance,
and if you go and change your super fund today,
it just cancels that insurance. And the way that the
legalities of the super industry and the insurance industry happens,
(47:07):
you don't automatically.
Speaker 2 (47:08):
Get it in your new fund anymore.
Speaker 3 (47:10):
Yeah, okay, So I need you to make sure that
if you have income protection, if you have life insurance,
or you have some type of total and permanent disability
or TPD inside your super maybe let's check if we
need to keep that. And at that point, if you
still want to keep that and move super, you can.
I actually have two super funds for this reason. So
(47:32):
I have one superanuation fund that is my old super
that has a good insurance policy for life insurance inside
of it, and I actually keep I think it's like
two thousand dollars in that super fund, yeah, just to
pay the fees and make sure it never dips below
and that you know, I get to keep that insurance.
And then all of my other super is in my
preferred superannuation fund. Yeah. Nice, but if you didn't know,
(47:53):
you would just go and roll over to a different
fund and then miss out on something that could potentially
change yours or your families life if something bad happened. Yeah, right,
So I would say it is absolutely worth being aware
about what your soup, like what you've got in your super,
because if you change or you consolidate funds without checking,
like that insurance disappears. You can't just go back and
be like, oh, hey, sorry, that was an accident. I
(48:15):
didn't yea, I didn't want that. They're gonna be like,
absolutely not, We're glad you're gone. Like they're going to
be like, we've been trying to get people out of
this because we didn't do the health check and now
a lot.
Speaker 1 (48:25):
Of us do.
Speaker 3 (48:26):
Yeah. So yeah, if you were through the gates, don't
come back out without like a stamp on your wrist,
because they're not going to let you back in the club. No,
oh my god.
Speaker 1 (48:34):
You know.
Speaker 2 (48:34):
So you can also set up.
Speaker 3 (48:36):
Policies outside of superannuation that are tailored to you, but
still have like premiums deducted from your super as well.
I don't know if lots of people notice that, you
could go do your insurances and have it paid from
your super since not coming out of your cash flow,
so that way you don't lose the cash flow, but
you also get the cover that you need. And I
guess that's where you know, calling your fund or working
(48:58):
with we've had feels from sky Wealth on the show before,
can actually help you. They'll walk you through what cover
you've got, what you might need, and I guess how
to structure that to protect you without paying for extras
that you don't need. And I guess that's a shameless
plug for sky Wealth basically because they're my financial advisors
for my personal insurances. They did mine, they did my husband's,
(49:21):
They've updated it since I had Harvey. They update it
when I get, you know, different debt situations. Slack and
most of my team have gone through them as well,
and we actually refer a lot of people in our
community there just because they do good and they be
good and I don't know, sometimes you just want a
good recommendation. You can also top up your super to
cover insurance if you're like, oh, well, I don't want
(49:41):
it eating away at my returns. VE like, I want
more insurance, but I don't want it at the compromise
of my you know, retirement. Well, you could top up
your super with those additional contributions so that you get
the tax savings. We pay for it inside super and
it's fifteen percent instead of thirty. Oh clever, got he's clever.
Speaker 2 (49:59):
Yeah.
Speaker 3 (49:59):
But so your financial advisor, like if you went and
saw Skywealth, that just tell you how to do that properly.
Speaker 2 (50:04):
Absolutely, so you can call your super fun for literally
anything appearances.
Speaker 3 (50:10):
Yeah, you could ask them about everything. I mean, they're
probably not that good at giving life advice. They do
often offer free financial advice, yes, but it's constrained to
your super funds. They can't be like, oh, yeah, Beck,
he's how to save for your next holiday to Thailand
because you enjoyed that so much. But you could call
them up and ask them to explain your options, your
fees and like your insurances in plain English. They are
(50:34):
just people that work there and know it really well.
They could also help you set up a salary sacrifice.
They could also model things for you, so you can
get them like get them to work. Yeah, you give
me an example of what an extra twenty dollars a
week could look like over the next decade.
Speaker 2 (50:48):
What about twenty five. What about thirty, Like put them
to work.
Speaker 3 (50:52):
They're not going to like me saying that, but you're
paying super fees so that you access this service.
Speaker 2 (50:56):
Use the service. I just think that we should be
using it. Okay, Well, I don't know about you, but
my brain is full in a good way.
Speaker 3 (51:04):
I'm not gonna lie. I think I need a cup
of tea.
Speaker 2 (51:06):
Yeah, it might be nice.
Speaker 3 (51:07):
I feel like I need to just I've been yapping.
I'm so excited about this, and I guess my hope
for this episode is that if you were starting to
feel like you were a little bit behind, you finished
this episode and you're like, oh, it's actually not that bad.
Like I have a pretty clear idea of what I'm doing.
I'm a very capable human being. I could totally set
this up, and you're ready to take another small step
(51:28):
in the right direction for Future You. So if that happened,
please go and do that, like yes, follow the momentum.
And if you loved this episode, obviously please hit subscribe
because we've got plenty more episodes coming that are going
to put future You in the best possible position. And
share it with your bestie so that you can both
be holidaying in Europe together in retirement, like you're.
Speaker 2 (51:49):
Already yacht or something.
Speaker 3 (51:50):
I don't know.
Speaker 2 (51:50):
Absolutely, we'll see you guys on Friday. Bye bye.
Speaker 4 (52:01):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial advice tailored towards
(52:21):
your needs. Victoria Divine and She's on the Money are
authorized representatives of Money.
Speaker 2 (52:26):
Shepper Pty Ltd ABN three.
Speaker 3 (52:29):
Two one IS six four nine two seven seven
Speaker 4 (52:32):
Zero eight AFSL four five one two eight nine
My name is Tatasha Bamblet. I'm a proud First Nations
woman and I'm here to acknowledge country t Glenn Young
Ganya nianar Kaka yah Ya bin Ahaka nian Our gay
in Nimbina, yakarum jar Dominyamiga Umagahawakaman damon Imlan Bumba, bang
Gadabomba in and now in wakah ghana on yak rum
jar Watnadaa. Hello, beautiful friends, we gather on the lands
(00:24):
of the Aboriginal people. We thank acknowledge and respect the
Aberiginal people's land that we're gathering on today. Take pleasure
in all the land and respect all that you see.
She's on the Money podcast acknowledges culture, country, community and connections,
bringing you the tools, knowledge and resources for you to thrive.
Speaker 2 (00:44):
She's on the Money. She's on the Money. Hello, and
(01:08):
welcome to She's on the Money, the podcast that's here
to make sure you're living your best life in retirement.
So you might remember our last super episode come out
so much I did. It was just so there's a
lot to take in. And I know that whoever was
listening probably thought the same. And if you didn't I'm
so sorry, And here is the second part. So we
did have to split into two parts, and you guys
(01:28):
have been begging for part two, so today is the
follow up episode you've been waiting for. I'm begsited and
with me is the biggest fan of Super I've probably
ever met, Victoria Devine.
Speaker 3 (01:38):
I love Superannuation so sexy.
Speaker 2 (01:42):
Yeah, I think it can be.
Speaker 3 (01:44):
And I feel like my energy towards Super hopefully rubs
off on our community a little bit, even if it
means you go, what is she talking about?
Speaker 2 (01:54):
Why is she so excited about it?
Speaker 3 (01:55):
Maybe I'll just check to like, maybe I'll just have
a little look see, Yeah, what's.
Speaker 2 (01:59):
All the hype about it?
Speaker 1 (02:00):
Yeah?
Speaker 3 (02:00):
And then you log into your Superinuation platform after doing
like what full password resets and like a code on
your phone or something, and.
Speaker 2 (02:07):
You'll be like, this is actually boring. It's not worth it.
It's not worth it, but I promise it is.
Speaker 3 (02:13):
And I've been so excited to be allowed to be
let loose on episode two because I think once you
realize how much impact even very small amounts and very
small tweaks can have, it stops feeling boring and something
that is for older people or something that is for
future you or an issue you'll deal with later, and
(02:34):
it starts to feel really powerful because especially like you
and I are talking about it all the time. Back
life's expensive. Yeah, absolutely, our budgets are cooked. Like I'm
talking to people in our community every single day, and
that's hard, like not talking to you guys. I love
that part, But like money is hard at the moment,
and none of us feel like we're getting ahead, like
(02:55):
we all just go hold on. I want to start
my investing journey and that's fantastic, But you might not
have any free cash flow because how the hell are
groceries costing you two hundred bucks a week and you're single?
You know, like I just I really truly get it.
But that's where superranuation can make you feel quite powerful
because these tweaks.
Speaker 2 (03:13):
Not a dollar. It's not going to cost you anything.
Speaker 3 (03:15):
I just want you to like clean house, make sure
everything's where it needs to be, and that your money's
growing so that future you doesn't have to worry about
money in the way that current you is.
Speaker 2 (03:24):
And like Beck, that's kind of low key sexy. Absolutely, Lie,
I think it's quite comforting knowing that even if you're
really broke right now, there's a time in this life,
hopefully we get to see it where you actually have
money just waiting there.
Speaker 3 (03:39):
For you, exactly, and like its slow and steady wins
the race, Like I wish that I could waive a
magic wand and like make it really easy for you.
But the reality of money and the reality of superannuation
and the reality of honestly life is it's tiny steps
in the right direction that when you look back, you go,
oh my god, I've come so far, but not going
(04:00):
to wake up tomorrow and be like, oh my god,
you're right, I'm finally good at money exactly.
Speaker 2 (04:05):
It doesn't happen like that.
Speaker 3 (04:07):
And I guess you're my favorite example of this, not
because of superannuation, but because of investing in general. Yes,
like sorry, you now have a little investment portfolio and
you've never been that financially secure before.
Speaker 2 (04:20):
Totally. Did that happen overnight though?
Speaker 3 (04:22):
No?
Speaker 2 (04:23):
And the thing is too, is that like, I still
am completely broke, I don't have any savings, but you're.
Speaker 3 (04:29):
Starting to build your financial security.
Speaker 2 (04:32):
Yeah, of different ways and exact things, And it's very empowering,
it's very very empowering. So it does exactly. It does
not happen overnight. It's very small and there's like there's
a change pie. I guess that someone showed me recently
where it's like thinking about maybe doing something is still
part of the change cycle, and it's like you've been
thinking about it.
Speaker 3 (04:51):
Listening to you listening to this episode like you're doing
really close.
Speaker 2 (04:55):
Absolutely, that's really cool. So before we jump in, can
you give us a quick recap of part one?
Speaker 3 (04:59):
I would love to, but I'd also love for you
to go and listen to that episode if you haven't.
If you have, I'm going to give you a recaps.
So we covered what I would call the foundations, so
the base level of things that you need to understand
about super. So I told you about how you can
check your balance, what my gove is, how that works,
How to check and make sure that your employer is
(05:19):
actually contributing twelve percent and that it's actually being paid
to you. How to use and this is one of
my favorite tools, the Government's your super tool to check
your fund's performance and the fees and whether it's aligned
to your.
Speaker 2 (05:31):
Goals and values.
Speaker 3 (05:32):
How to set up your risk profile for your age
and your goals and what that might look like, and
most importantly, why even like one percent returns can mean
thirty five percent more money in retirement, because I think
so many of us are like, what's the point, Like,
even if I change it and go on this, you know,
bloody Victoria's your super tool that she keeps harping on about,
(05:54):
I'll get one percent more. I can't be bothered. But
like one percent until retirement is thirty five percent more
in your superannuation, girl, that's more than a third more,
like literally not giving another dollar up. Yeah, you just
have to change some boxes and tick something like, sorry,
do it? Just sorry, sorry, I'm not putting up with that.
Speaker 2 (06:18):
That is so fair and really makes sense. Just set
some time aside, and I promise in thirty five years
you'll thank yourself.
Speaker 3 (06:26):
Yes, but you will still.
Speaker 2 (06:28):
Thank yourself, Yes you will exactly.
Speaker 3 (06:30):
So we kind of just recapped what I think is
the starting point, and then you cut me off and said, VI,
I just think that's enough for today. Let's wrap it,
because I think you're being a little bit overwhelming, And
I was like always I would never. If you haven't
listened yet, please hit pause, go back and check it
out with linked in the show notes as well. I
have tried to make it as easy as possible source.
Speaker 2 (06:51):
So I have obviously listened to part one because I
was here. You actually created it with me. I created
it with you, and I know my balance. I'm happy
with my fund. I have like my portfolio set to
the right risk profile, growth option, all that kind of stuff,
and it does. It does Again. If this doesn't make
sense to you, go back and keep one. What should
I be doing next?
Speaker 3 (07:10):
All right, So the next step is contributions. So we're
going to talk about the money that goes into your
account because your employers twelve percent is honestly a fantastic foundation.
But if you want to put future you in the
best possible position, you might be considering adding some more.
You might be adding even a small amount to make
(07:31):
sure that this is a game changing solution for you.
Do you need to do this? I just want to
preface no, because for some of us, we might go, Wow,
like I've actually worked from fourteen years nine months had
this whole twelve percent the entire time, Like everything is
smooth saling, Like my projections are looking really good. V
This like small amount that I could be adding to
(07:52):
my super would be more powerful elsewhere.
Speaker 2 (07:54):
Because I have said before.
Speaker 3 (07:56):
And this is just me going off on a side tangent,
I personally and this is personal. It is not financial advice.
I do not contribute more to my superannuation than I
have to, so like when I started my businesses, again,
complete side note, but I think everyone's pervy, like you
want to know about my money? Right, I started my
(08:19):
businesses and I didn't take my own advice because I
couldn't afford to take my own advice.
Speaker 2 (08:24):
So did I believe that I should be paying myself super? Yes?
Did I have any cash?
Speaker 4 (08:30):
No?
Speaker 3 (08:31):
No, I actually chose to hire Jesse Ricci instead of
paying myself a full wage. I think I was paying
myself thirty eight thousand dollars because I'd done my numbers
and worked out that's how much I needed to contribute
to rent and bills and like that would keep food
on the table and the lights on, and you know,
I could build my business. But I had no superannuation
contributions either, but I kept track of it and I've
(08:53):
since paid that back to myself. But I don't go
above and beyond that, so I'm quote on track for
my aid, but not for what you would probably look
at my financial situation. I think a lot of you
would be like I thought V would have a really
stacked super No. And that's because I've looked at all
of this and been like, great, this is a fantastic foundation.
(09:16):
But I also want access to money outside super because,
as you know, once it goes in, it doesn't come
out until you are at preservation age, and that's over
the age of sixty five. And for me, I want
an investment portfolio that I can retire at fifty with.
So that's where all my cash is going back. Cool,
So like, am I investing Hell? Yes, but am I
investing more in my super No? Do you know what?
(09:37):
As I get older, I think I might do a
bit more. I'm about to purchase a new house with
my husband, hopefully fingers crossed, and once we work out
the financials of that, so like you know what our
actual purchase price is, what our mortgage repayments will be,
I think I might consider it just to top it
up early, because the earlier you do it, the less
contributions you need to make for the long term. Sure,
(10:00):
like I might add another one hundred dollars a month
or something. Sure, but that's actually the same as somebody
ten years from now adding five hundred dollars a month. Yeah, gotcha.
So like, I'm just gonna make sure the maths works
and I actually have some free cash flow that I
can know realocate, but right now feels weird because I'm
like in this financial limbo of not knowing what our
(10:20):
mortgage or payments are going to be and like moving,
you know what I mean. It's a bit, it's a bit,
you know, Iffy. Anyway, that was a side note because
I think that people are pervy, and I also just
want to say if you can't contribute extra, great, that's fantastic.
But you're listening to this episode and you're not gonna
bloody turn it off because I want you to know
what that means. So if you get to that financial position,
(10:41):
you already got the knowledge, you already got the education.
Speaker 2 (10:43):
God, she's good, right.
Speaker 3 (10:44):
So one of my reasons for loving extra contributions into
superannuation save money on tax. You guys have all just
done your tax returns. I know you have because you
wanted your cash back. You all want tax savings, and
you don't care about super sit down, My god, so true, Beck,
How quickly did you file your tax return to get
(11:05):
your tax back?
Speaker 2 (11:06):
Literally July one?
Speaker 3 (11:07):
So why don't you care about the sexiest tax environment
in the country. Yes, literally, salary sacrifice before tax contributions
are taxed at only fifteen percent instead of your full
marginal tax rate.
Speaker 1 (11:21):
Yes.
Speaker 3 (11:21):
So, for example, if you had a ninety thousand dollar income,
your marginal tax rate is thirty percent plus you would
be paying a Medicare levey. I just feel like I
need to add extra context of like two percent. So
every one thousand dollars that you sacrifice into your superannuation
only gets hit with one hundred and fifty dollars worth
of tax instead of three hundred and twenty dollars of tax.
(11:45):
So your money's working hard a few instant return I see,
because you're taking app before you get your pay slips.
You've got your payslip and it was in your bank
account and you put it in your Supercome tax time,
you'd get that fifteen percent back from the tax man.
Speaker 2 (12:00):
Yeah, so you'd get a better tax return. Oh great.
Speaker 3 (12:02):
So it's like either an no hour or later. Yeah,
so you will get it back either way. So if
you're doing it before tax, like you went to your
employer and said, you, vickid, I want to contribute more
to my super and I go, great, no worries how much?
Speaker 2 (12:12):
And you say one thousand dollars.
Speaker 3 (12:14):
You'd only be taxed one hundred and fifty dollars on that, yes,
And I would work all of that out for you
come out in the wash. But if you were like, oh,
I don't really know, I might need that cash for
now for later, and then you're trying to make a
decision on some money inside your bank account and you're like,
actually I want to put it in my super, you
would have already paid three hundred and twenty dollars on tax. Yeah,
but come tax time you would have put your hand
(12:36):
up and said, hey, tax man, I actually popped some
money in my souper this year, and they would give
you the difference back.
Speaker 2 (12:41):
Oh my god.
Speaker 1 (12:42):
Yeah.
Speaker 2 (12:42):
So you're not going to miss out regardless of where
it goes.
Speaker 3 (12:45):
Cool.
Speaker 2 (12:45):
So I just want to quickly sum it up in
case it sounds busy, because I think in my brain
it is.
Speaker 3 (12:49):
A very little bit at making it complex. Yes, that's okay.
I think you've done a very good job explaining it.
But for salary sacrificing, I believe this is the term.
If you say, like it paid four thousand dollars every
month after tax, then instead you put a salary sacrifice,
like a little bit of money towards SUPER before that
money lands in your bank acount before the tax is
(13:11):
kind of like added to that pace lit.
Speaker 2 (13:13):
Yes, that's tax to fifteen percent. Yeah, and then after
I let's say you're like I don't want to do that.
You wait for your money to land your bank account
that's after tax, and then you can put money in
your super yourself that can come back.
Speaker 3 (13:26):
To your attack. So you're you're going to yes the
tax savings one way or another. It just depends which way.
Speaker 2 (13:32):
It just depends.
Speaker 3 (13:33):
And like, not all of us are in positions where
we can call up our employer and make consistent contributions.
Speaker 2 (13:39):
But you might have gotten like some cash on the side.
Speaker 3 (13:42):
Like a lot of our community recently have been talking
about superannuation and some of them are like, oh, well,
I got in inheritance or you know something like that.
I came into a lump sum of money and I
want to put a little bit into my super because
obviously I want to boost myself up. At that point
you would.
Speaker 2 (13:57):
Get tax back.
Speaker 3 (13:58):
So I think it's important to just know that it's okay.
It'll come out in the wash, but you know, you
don't get to see it until tax time and you
actually do your tax and you see it on paper,
and then you know it hits your account. But also,
the other thing I want to talk about here is
government boosts. So the government does a lot to try
and incentivize us to get more money into superannuation. Personally,
(14:21):
I don't think they do the best job ever at
articulating that because most of us don't know about it.
Speaker 2 (14:26):
It's going to say they do everything they can accept
for educators and let us know that this is a
the Yeah.
Speaker 3 (14:32):
So that's why I go and read the ATOS website
and then I call you out and I'm like, beg,
this is so sexy.
Speaker 1 (14:37):
Yeah.
Speaker 3 (14:38):
Don't read it on the Idea website though, because as
much as it makes sense, because their website's great, it's
just not the most esthetic website.
Speaker 2 (14:45):
Yes, but if you're a LISTO, so that is.
Speaker 3 (14:49):
A low income super tax offset person, so it means
that you earn less than thirty seven thousand dollars per year.
You can get refunds up to five hundred dollars of
the fifteen percent contributions tax on concessional contributions paid by
you or your employee.
Speaker 2 (15:08):
I see you get five hundred bucks, you have five
a bars. You can get up to five hundred up
to okay, And the concessional is what I'm hearing a lot,
and I actually don't know the difference, like non concessional
and concessional contributions. What does that mean?
Speaker 3 (15:23):
Concession cards? So you know how you get your concession card?
Speaker 4 (15:27):
Yep.
Speaker 3 (15:27):
What do you get when you get a concession card? Discount? Discount?
So concession is a discount, non concession, non discount. Ah,
so just say it like that, just like anyway, we'll
move on. If you earn forty seven, four hundred and
eighty eight dollars or less and put in at least
one thousand dollars after tax, the government will chip in
(15:51):
a co contribution for you of five hundred dollars. Oh okay,
So that's a good deal. That co contribution gradually reduces.
If you're income is between forty seven thousand, four hundred
and eighty eight dollars and sixty two thousand, four hundred
and eighty eight dollars. Why is it that number? I
don't know. I don't make the rules. I just report
on them. And then if your partner or your spouse
(16:13):
earns thirty seven thousand dollars or less, you can actually
go and make a contribution to their supranuation account and
claim a spouse contribution tax offset of up to five
hundred and forty dollars, which I think a lot of
you are like, that doesn't actually add that much, but go,
It's five hundred and forty dollars of like literal free
money by doing something for future you.
Speaker 4 (16:36):
Yeah.
Speaker 3 (16:36):
Sorry, it's been a weak a good deal, and I
mean a lot of you especially, And I like, I
look at it and I go, what the hell, like,
do you know what? Personally, I don't know anyone who
currently earns thirty seven thousand dollars and has some extra
cash to contribute to superannuation totally. Let's just keep it
real as well. But this does work often if you're
on maternity leaf or if you are taking leave, you
(17:00):
aren't working full time, and your partner is a higher
income earner, that is a really good strategy to just
like boost your super a little bit money in right, Yeah, absolutely,
So it's I guess.
Speaker 2 (17:11):
Like what I want to do. Is it really worth
putting more into super on top of what my employer
is already paying. I guess it kind of depends on
your personal situation. And I gave you the context that
I haven't done it.
Speaker 3 (17:21):
Yes, And I think that that's a really important piece
of context because I can't tell you whether it's worth
it or not on paper one hundred percent. Yeah, Like
if we do the maths, the maths maths. Yeah, And
the thing I want everyone to know is it doesn't
actually have to be hundreds of dollars a week to
make any type of difference. We see it in our
community all the time. So, like I had a girl
(17:43):
message me and she's like, Victoria, I you know, I
want to share this with you. But I have been
putting ten dollars a week extra into my stuperannuation since
I got my first job because my dad told me to.
Oh my god, I don't know why, but like that's
just what I've always done, and like I've boosted it up.
I'm now making one hundred dollars a week as an
additional contribution because it's like just crept up and she
hasn't noticed it, and she has like one hundred and
(18:04):
fifty thousand dollars in Super now wow, and she's like
twenty six. That's amazing, right, Like, just from little things,
big things grow, and the power of compounding means even small,
regular contributions can change your retirement balance by literally hundreds
of thousands of dollars. Like and honestly, the sooner you
(18:26):
start contributing, the longer and better the impact. Right, because
if we look at the rule of seventy two, which
we might do a whole podcast on, but it's basically
that money doubles every seven to ten years. Let's take
our twenty five year old friend, yeah, thirty five. If
she didn't make an additional contribution to her super three
hundred grand forty five, six hundred grand at the age
(18:50):
of forty five, she already has more superannuation than most
women in Australia retire with.
Speaker 2 (18:56):
Oh my god, and.
Speaker 3 (18:57):
That's a forty five, yeah, fifty five, one point two
million dollars back.
Speaker 2 (19:04):
That's insane.
Speaker 3 (19:04):
Let's stop it, and she's going to keep contributing, so like,
don't get me wrong, we don't all have one hundred
and fifty thousand dollars. But like if you're just like, okay, cool,
well I can't do much, but this is what I
can do.
Speaker 2 (19:14):
Yeah, pop off? Yeah, do you know what I mean?
Speaker 3 (19:17):
Like, it's just let's do what we can do, and
if we can't do anything, let's also not shame ourselves
because we're doing the best that we can.
Speaker 2 (19:23):
Yeap so true?
Speaker 3 (19:25):
So yes, I think it is, and I've got another.
I wrote down another example for you using I think
some more numbers, because you know, our community member is
a good example, but I don't know her tax right,
So let's just use the medium balance from our community.
So as you guys know, we always ask you questions
because you're our listeners. Relying on ATO and asset data
(19:49):
can be good, but I don't think it's reflective of
people who care about their money as much as the
average Australian. So our averages are a little bit higher
because you guys are actual bosses and I love it.
But the medium balance from our community for twenty nine
to thirty two year olds is about eighty eight thousand,
five hundred dollars. Well, I'm also going to use the
(20:12):
median Australian wage, which is about eighty eight thousand, four
hundred dollars a year. That way, it's not I don't know,
some made up number. It's where a lot of people
and our audience are actually sitting right now, like that's
just what happens. So, if you're just stuck with your
employer's twelve percent contributions that they have to pay you,
by the time you retire at the age of sixty seven,
(20:34):
which is our preservation age, you'd have around two million,
four hundred and twenty three thousand, nine hundred and thirty
three dollars in superannuation. WHOA, and that is assuming a
rate of return of six point five percent. Oh so
it could be more, which I think is not a
great return. Do you know what, That's a great return
(20:55):
if you are in a balanced fund.
Speaker 2 (20:57):
Yeah, but most of us don't.
Speaker 3 (20:59):
We're not. Those's not that's not my journey. It might
not be your journey, and it could be your journey,
and that's okay. I just I mean, I would be
disappointed if my super was only returning six point five percent,
But that's the deal, right, I still want to retire
with about two point four mil. But if you had
some extra cash back, Let's say that you had twenty
five dollars a week extra instead of two point four million,
(21:20):
you'd end up with two million, six hundred and nine thousand,
five hundred and five dollars, which is about one hundred
and eighty five thousand, five hundred and seventy three dollars
more at the time of retirement, even though you only
contributed about forty eight thousand dollars extra your entire working life.
Speaker 1 (21:39):
Yeah.
Speaker 2 (21:39):
Wow, okay, okay, okay.
Speaker 3 (21:41):
That's like one hundred and forty thousand dollars worth of
free money. That is nearly a four times return on
the contribution you made thanks to compounding and the amount
of time in the market. Yeah yeah, yeah, just because
you made a good investment and you like you know,
whent and bought bitcoin and you got the best return ever. Sorry,
that's with a six point five percent return. Yeah. The
average rate of return of the Australian market is about
(22:03):
nine point eight percent at this point in time. So
like we're just being real conservative totally. And I prefer
to be conservative because I'd prefer to underpromise over deliver. Yeah,
but I'm telling you, right, now, if you do this
and you retire and you're sixty seven, you have to
call me up and be like, Va, oh you are coffee.
Speaker 2 (22:20):
Can I ask you something that's probably it's not personal advice.
Speaker 3 (22:24):
I think I just want I think it's an ask
personal advice, so I'll deflect it.
Speaker 2 (22:27):
Thank you so very well. I think I just want
peace of mind because I and this might shock you,
but I'm thirty three years old and that part won't
shock you, the fact that I'm thirty three actually, but
because I look probably older. But I have, like I
think I have seventeen thousand dollars in my super. Okay,
do you feel like there's there's if I started right now,
there's chance of me to be one hundred percent. Why
would that not?
Speaker 3 (22:47):
That's very company like, Sorry, that's gonna happen for you anyway. Okay,
So I'm quite aggressive when it comes to being your friend.
I made you get an investment portfolio, and the next
step was to cost you on your superannuation. Yes, yes, perfect, okay,
co Well, just small contributions, because think about it, if
(23:07):
we look at your super, you are behind yep. Is
that the worst thing in the world. No, you're thirty three. Sorry,
we've got thirty plus years before you retire. I've got
all the time in the world. I also know that
taking you as an individual, and this is not meant
to be offensive, Taking you as an individual one of
the best things. And again this isn't personal advice. This
(23:31):
is just an example. One of the best things I
can do is automate that for you. Yeah, because I
know that if you came to me and said, Victoria,
how do I do it? I want to contribute twenty
five dollars extra to my super every single week. I go,
that's a great idea, Beck. I'm glad that you had
that and came up with that idea.
Speaker 2 (23:47):
All of them your own.
Speaker 3 (23:48):
It wasn't financial advice. So you came up with that
idea and you came to me, I could say, well,
you know, it's really easy. All you do is transfer
every single week twenty five dollars.
Speaker 2 (23:57):
Yeah, are you going to do that? Probably not an
my own? No, no, no, And that's okay.
Speaker 3 (24:02):
So we go, what's the best strategy for Beck at
this point and for you personally? Knowing you well enough,
I think out of sight, out of mind is the
best strategy. So what we're going to do is talk
to your employer and say, hey, employer, you've got all
my superanuation details. You're going to email your HR and say,
I would like to contribute an additional twenty five dollars
(24:25):
a week or one hundred dollars a month to my superanuation.
Can you please set that up so that every single month,
before my pay comes into my account, it comes out beforehand,
totally make sure I have no But I love and
know you very well. I know you would give me
a month and you already would have forgot that you
set that up. But it's ticking away in the background,
(24:45):
and twenty five dollars per week after tax like into
your account. Honestly, I don't think personally you would notice
it because I know your money type, because I know
your spending type. It's not that you don't earn a
good income, it's just if it's in your account, you
offend it. So I'm just not going to let it
hit your account. Yeah yeah, yeah, right, like I just
(25:06):
took it off you already.
Speaker 2 (25:07):
Oh my god, thank you. V.
Speaker 3 (25:08):
So I think you just need to talk to yourself
about what strategy is going to work here, Okay, because
there are some people that are incredibly empowered by going
in every single week and updating their spreadsheet and making
these manual transfers and pop off queens. That could never
be my ADHD journey. I wouldn't do to.
Speaker 1 (25:27):
I love it.
Speaker 3 (25:28):
I love the idea that I would update my spreadsheet
every week. Yeah I don't. I just go back maybe
once a month, and then update it quote on a
weekly basis, so that I've got all the information. Yet
it takes me a lot longer because I did it
every month instead of every week, because I always let
that stuff lapse. Of course, you just have to know
yourself well enough to be honest with yourself.
Speaker 2 (25:50):
So are you behind?
Speaker 3 (25:51):
Yes?
Speaker 2 (25:51):
Does that matter?
Speaker 3 (25:52):
Absolutely not.
Speaker 2 (25:53):
That's cool.
Speaker 3 (25:54):
That is so comfidible. I don't care that you're behind.
I care that you're sitting in this chair. I care
that you're listening to this podcast yourself in the best
possible position. And you know what, there are lots of
people that are thirty three that don't even have seventeen
thousand dollars in their super Yeah.
Speaker 2 (26:07):
So sorry, you're starting from somewhere exactly, and it's never
too late to start if you start right now. Today
I saw this lame.
Speaker 3 (26:15):
I don't know if it's lame. It's lame that I'm
sharing it, but it wasn't a lame quote. The other
day someone said, you're not starting again, You're just starting
from here. Yeah, And I think that that's so much
nicer than expecting that, Oh, Beck, start again, like wipe
your slate clean. Yeah, and I'm just starting here. Yes, good,
I just start from here.
Speaker 2 (26:33):
Oh my god, there's a way better way to look
at it. So sorry. I hope that that helped.
Speaker 3 (26:39):
But we just had to know ourselves and our strategy
and what would work best for us. And the only
reason I know the answer to yours is because I
know you so well. Yes, that other people might resonate
with that and go, oh my god, like that's so
me as well. Yeah, like if it was in my account,
bloody spend it. But if you took it off me. Also,
what's the harm in trying? What if we did that
(27:00):
strategy for you, Beck, because that's what you personally decided,
and then you're like, well, I'm actually short of cash
every single month. Yeah, so let's email HR and turn
it off totally.
Speaker 2 (27:11):
And then that money hasn't gone to waste. It's just practiced.
We just tried it exactly.
Speaker 3 (27:16):
Okay.
Speaker 2 (27:16):
I really like that, Thank you, V. So tell me
more about the options and like the portfolios and things
like that.
Speaker 3 (27:22):
So like, I have not always been good at money,
which I hope everybody knows. Like I wasn't born a
financial advisor. I was born a finance girl, but didn't
want to identify as a finance girl. I should have
known from the start. My dad's an accountant. I'm born
on the thirtieth of June. Like I was in athletics.
Speaker 2 (27:39):
That's so cute.
Speaker 3 (27:41):
I just I was real cool at school anyway. I
just had my head in the sand about all of
that because the school system that I grew up in
didn't teach us about superannuation, So how else was I
supposed to know? And I personally was using a balance
to portfolio for a very long time because it was
just when I filled in my superforms at my first
(28:05):
ice cream shop job. That's just what I ticked because
it said it was the most common, right, So I
was like, yeah, all right, And I used a balance
to portfolio in that first example because that's where most
people default too. But I also have an example of
what happens if you took that exact same person and
she was going to retire with one hundred and eighty
(28:25):
five ish thousand dollars more anyway, and switched to a
growth option. Because remember before I was like, oh, I
don't know if I would accept six point five. You
might and that's fine, but I'm just opinionated and I'm
just a growth girlye right. Remember, we are only doing
employer contributions. The balance option landed at them having about
two point four mil in retirement. But if they'd chosen
(28:49):
the growth option from age let's call it thirty beck. Yeah,
because we're not all starting at the age of eighteen,
and I think that we need to get rid of
examples like that because most of our listeners are not eighteen. Yes,
it's gone through our late teens, and then we went
through our early twenties and then maybe we've decided we
need to get our shit together because thirty is real close.
So let's use that as an example. Same salary, no
(29:10):
extra money going in, Yes, so their balance could be
four point eight nine million dollars. Wow, that's yeah, that's
more than double and double. Yeah, it's more than double
the outcome just from going in and changing her risk setting,
not from putting in a single dollar.
Speaker 2 (29:26):
That's crazy, and that would have taken like if you
remember your password and all your log in details that
which you can reset your password. It's really annoying. Yeah,
but that would take thirty seconds.
Speaker 3 (29:35):
Yeah, And we're not saying go in and change No,
we're saying, go and do your risk profile and like
make sure that that suits you. And then if it
does suit you and you find that you are a
growth investor, well why the hell you imbalanced? Totally you're
in the wrong room, babe.
Speaker 2 (29:50):
You're in the wrong room. You walked into the wrong
class at school, exactly. You got to get up and
get out.
Speaker 3 (29:55):
Otherwise you're not learning what you need to learn, and
you're not accessing what you need to access.
Speaker 2 (29:59):
And it's cost to yeah.
Speaker 3 (30:00):
Yeah, And so that just shows how small choices can
make massive impact over decades. Like none of this and
I'm really sorry. In twenty twenty five, we are all
instant gratification girlies. This is long term gratification, and that's okay,
But you don't have to suddenly throw thousands of dollars
into souper. Sometimes it's just about checking that you're in
(30:22):
the right investment option and making like one tiny tweak
and then saying say good night and then wake up
thirty years later in WHOA.
Speaker 2 (30:30):
That's so true, right, I have to know what if
the growth option added twenty five.
Speaker 3 (30:35):
Dollars week, so you're like making extra contributions in addition, yes,
in addition, So like, let's do the same example. We
already know that that person, if they're inside the growth option,
are at the age of sixty seven.
Speaker 2 (30:47):
Our preservation age crazy word, Yes.
Speaker 3 (30:50):
But I'm trying to like drill it into you so
that you understand it, because that's how the government communicates
with us. Yes, so they talk about your preservation age,
and if they are talking about that, that's the age
at which you're able to access every single dollar in
your superannuation tax free. Yes, ma'am preservation. That's great because
I'm so old I need to be preserved exactly. So
(31:10):
they would retire at the age of sixty seven with
four point eight nine million dollars, yes, right, so then
that's just base contributions. Then they're like, I really want
to add twenty five dollars extra because I heard the
example Beck and v were talking about, Yeah, that balance
actually grows to five point two to two million dollars. Okay,
so that's an extra three hundred and thirty thousand dollars.
(31:32):
But for the same contribution she made when she didn't
have a high growth portfolio, she had balanced to forty
eight thousand dollars. Yeah, so over that time, you can
make a decision, right, So do you want to save
your money or do you want to invest your money back?
If you save your money, you'll end up with forty
eight thousand dollars. If you invest your money over the
same period of time, three hundred and thirty thousand dollars.
Speaker 2 (31:51):
Which one would you like to take home?
Speaker 3 (31:53):
Well, that's a hard one.
Speaker 2 (31:54):
Yeah, we can't give you advice, but like, you make
a decision for you, right. That's crazy.
Speaker 3 (32:00):
Just to put that into perspective, the person who stayed
in that balanced option with no extras, so still in balance, yeap,
would have about two point four to two million.
Speaker 2 (32:10):
Dollars, which ain't anything to sneeze at.
Speaker 3 (32:12):
And then the person who switched to growth and then
was like, oh, I really want to do an extra
twenty five dollars a week Like that wouldn't you know,
blow my budget out. Yeah, they retire with five point
two two million dollars. That's like a difference of two
point eight million dollars for the same starting balance, the
same salary, only twenty five dollars a week extra. So
(32:33):
remember those ads, you remember the hest ads like but
do this and stand at the escalators and ones going
up the escalator and the others on the broken escalator. Yes,
that's what we're thinking. I see. Oh my god.
Speaker 2 (32:45):
Okay, So it's a lot of numbers. It's a lot
of numbers.
Speaker 3 (32:48):
But what I want you to take from this is
if you take action and you put yourself in the
right possible position, there's a lot more numbers in your
bank account. Yes, I see.
Speaker 2 (32:58):
Okay, So I think this was a good time to
let our brains kind of have a little rest. Let's
take a second to process it, take a really quick break.
Speaker 3 (33:05):
Oh and a little sub note from me, because my
financial advisor, or my ex financial advisor hat goes on.
I also need to say past performance is not a
reliable predictor of future performance, which has been drilled into
me time and time again, really legally, because if we're
going to start talking about you know, performance and returns
(33:25):
and consistent returns like go, go, look at the Vanguard
index chart. We know that people who invest consistently over
a thirty plus year period of time do not lose
money in the market. But we also can't predict what's
going to happen into the future. So I don't want
you being like, wow, I listened to this podcast and
it's an absolute guarantee, Like I just have to put
(33:46):
my financial advisor hat on it, and I'm going to
take it off because we're going to talk about some
like fun stuff after it go to a break, and
on the flip side, we'll dive back in and I'll
be less formal. Right before the break, I threw a
lot of numbers and a big disclaimer at you. But
the key takeaway, my friend, is that tiny contributions plus
(34:07):
the right risk option can literally add millions to your
supranuation balance. That's crazy. I want to be rich. I
don't know about you. That sounds like a terrible thing
to say sometimes, but like, do you want to be
rich too? Yeah? I think i'd like that. Yeah, I
think it'd be good. Like imagine not thinking before you
tap your cart.
Speaker 2 (34:22):
Oh my god, the amount of times I have to
I always transfer myself first, I'm like, where am I
going to take.
Speaker 4 (34:27):
It out of?
Speaker 1 (34:27):
Now?
Speaker 2 (34:27):
It's like to be financially comfortable.
Speaker 3 (34:30):
But also sorry, now we've got these options and Beck,
you're only thirty three, Like we can actually plan to
be rich. Yeah yeah, sorry, it's actually not beyond you
to just get rich af Yeah, so like let me
help you do that? Oh my god, because like then
you could be your own sugar mamma. That's a good deal, right,
thank you. Also, I want to remind you that the
(34:51):
free tool we spoke about in that first episode, it's
called how much super do I really Need? That is
a very very cool tool that we're going to revisit.
Right So, in the Government's Money Smart super Calculator, there's
like a little section where you can actually play around
with adding different contribution amounts and it will actually calculate
(35:11):
the difference it will make to your superbalance over the
long term. Because you might go, well, V, I can't
afford an extra twenty five bucks a week, and I go, yeah,
like I get it, I really do. I'm just giving
you examples and want you to be excited about maybe
doing this and you go, well, I could do five bucks. Great, Great,
that's somewhere to start, because then maybe a couple of
(35:32):
months later, you've got a little bit extra wiggle room
and at seven dollars, like, we're not talking that you
have to make these big, grand commitments. I mean you
might turn around and be like, fire out. My partner
and I we're double income, no kids. Why aren't we
doing this while we're in a more luxurious position? Yeah,
good question. Yeah, but if you are hamstrng goal like
(35:53):
gets it? Yeah? I just I feel like I just
don't want anyone to listen to our content back and
be like, wow, that wasn't for me. Yeah, totally. Like
even if you don't have extra cash, have you not
got the education? Now? Like if your friend's like, oh
my god, I've started saving extra twenty five bucks at
your new friend Olivia's Bark or Jernie's Queer Bar, which
we're very excited about. But it's got beautiful branding.
Speaker 2 (36:15):
Who did that? Oh well, I could say a little
non paid graphic design named ex head.
Speaker 3 (36:22):
I think you might get a few drinks out of
that though, Yeah, a couple of little cheeky soda waters
where she could do. But if you're at Bernie's Bar
and your friend is like, oh, I've got like some
stuff I've started to save, I can almost guarantee you'll
be like, so have you thought about Super?
Speaker 2 (36:38):
Or so have you been investing?
Speaker 3 (36:39):
Like these conversations are going to happen and we benefit
the whole community totally.
Speaker 2 (36:44):
You don't even have to be doing it yourself.
Speaker 3 (36:46):
It might not benefit you right now because we just
don't have the cash and we're relying on the free
soda waters.
Speaker 2 (36:51):
Absolutely in the future, it will. A penny saved is
a penny. And they say, exactly are the rules on
how much you can add to your superreachier? Is there
a cap or a minimum?
Speaker 3 (37:00):
Good question back, because there are government caps on literally
how much you can put into Super and it changed.
You're before tax contributions like the Super guarantee, salary sacrificing
or anything that you are claiming a deduction for. The
cap is thirty thousand dollars a year from July twenty
twenty five. Okay, that's increased, which is kind of sexy.
(37:23):
This includes your employers twelve percent, So that's where it's
not like an additional thirty grand which would be nice.
Speaker 2 (37:30):
Unrelatable, but nice.
Speaker 3 (37:32):
So for example, if you're on like a median wage
of eighty eight thousand, four hundred dollars, that's already about
ten thousand, six hundred dollars that's going into your SUPER.
So that then leaves you with nineteen than four hundred
dollars worth of extra wiggle room if you want a
salary sacrifice. Okay. There's also a very cool rule which
(37:53):
you might not care so much about when you're young,
but as you get a little bit older and maybe
you haven't been making the most of your caps or
your life, Oh my god, what do I do? Like,
you know, I've got all of this cash saved because
I was being real conservative and I'm just not you know,
I wasn't ready to put it in Super, but now
I really want it in Super. There's a really cool
rule called the carry forward rule. Okay, and if your
(38:14):
superanuation balance is under five hundred thousand dollars, you can
actually use easy any of your unused concessional cap space
from the past five years. Really yep, So if every year, like,
let's go back to that eighty eight thousand dollar example,
so your salary's eighty eight grand. You're making about ten
six hundred dollars of contributions just as you're twelve percent,
(38:36):
and you've got nineteen thousand left every single year. You
could do nineteen nineteen nineteen and then bring it all
forward if you had a heap of savings or you
got a inheritance or came into a lump sum of
money and drop it in and still only pay fifteen
percent taps.
Speaker 2 (38:53):
So good.
Speaker 3 (38:54):
The important thing is when you drop it in, you
need to let your superanuation know that you will be
claiming that on tax, and that's a separate form. Yeah, okay,
miss it, lose it, yep, don't get to claim it.
And that's bullshit. Yeah yeah, So I'm just calling it
out if you're like, that's a great thing. I didn't
realize I could do that, and you just dump it
in your super and then you do not tell your
(39:15):
superannuation company that you're planning on claiming that on your
tax return this year, and then it passes and you
haven't done your tax. There's not a lot of wiggle room.
Speaker 2 (39:24):
That's so mean. Yeah, yeah, but this is huge.
Speaker 3 (39:28):
So this is huge for people who have had time
off work or you're only starting to contribute later.
Speaker 2 (39:33):
Like it's like the catch up.
Speaker 3 (39:35):
So you know how you were saying before V I
only have bloody seventeen thousand dollars in my SuperM I behind. Yeah, well,
yes you're behind. But hypothetically you can also use your
unused cap if you wanted to into the future. Yeah,
so like we can top it up, we can work
it out if we have access to cash. Absolutely. Now,
our non concessional contributions these are our after tax moneies
(39:58):
that you deposit into a super count, and the cap
for this is one hundred and twenty thousand dollars a year,
which is a lot of money, unrelatable but like just
good to know. Or up to three hundred and sixty
thousand dollars at once. Okay, if you trigger the carry
forward rule and your balance is below the threshold.
Speaker 2 (40:17):
Before or after or it doesn't matter. What do you mean,
Like if you put the three hundred sixty thousand dollars
for example, and then now it's over.
Speaker 3 (40:24):
Yeah, the threshold yep, so you can dump it in
if your income plus super contribution is over like two
hundred and fifty thousand dollars, your concessional contributions are actually
taxed at thirty percent instead of the fifteen. Oh, so
that's still a better deal. That's still a better deal. So,
like you're paying close to like forty five percent tax
(40:44):
at that rate, so you're still getting a discount, but
it's definitely not that fifteen percent. Sure, So like that
is probably why it's unrelatable, because like, I don't know
that many people unless I have worked with like high
income earners or I've worked with, you know, people who
have inheritances who are dropping in three hundred and sixty
thousand at once.
Speaker 2 (41:01):
Yes, but I've seen it, like it happens.
Speaker 3 (41:04):
You're just on a non favorable tax rate, but it's
still better than the tax rate you'd pay. Totally, it's
better than to kick in the pants, you know, absolutely. Okay, Well,
I gotta tell you it's a lot to take in.
But I do want to move on to this next
one because we get this question constantly community.
Speaker 2 (41:22):
They always want to know should they be putting extra
into this super or investing outside of super. I can't
tell you.
Speaker 3 (41:30):
I can't say I can't tell you, but I think
that I've given a little bit of context along the way, right, Yeah, great,
Like I've told you what I do, Yes, And I
think that might be helpful, especially if you're trying to
make your own decisions, not because you want to copy me,
but because it's good to kind of crowdsource. Oh what
are you doing, Becko? What are you doing?
Speaker 1 (41:47):
Then?
Speaker 3 (41:47):
Like you just find things that you might be comfortable with,
or you might find things you're like, I'm not comfortable
with that. Like someone might be listening to this beck
and being like, holy shared, Victoria. Did you know she
doesn't take advantage of super in the world that she could, Like.
Speaker 2 (42:01):
That's so dumb.
Speaker 3 (42:03):
That's fine, totally, Like there's actually no right or wrong
when it comes to what's happening, And it really depends
on your personal goals and your personal timing. So if
you need and this is just all general, just like
what usually happens in financial advice land.
Speaker 2 (42:19):
If you need the money before you're sixty years old, that's.
Speaker 3 (42:22):
When you should look at investing outside of super Yes, Okay,
if your goal is to purchase your first home. For
first home buyers, the first Home super Savor scheme let's
you save up to fifteen thousand dollars a year, or
a total of fifty grand through SUPER that you can
then withdraw later. So you might want to be making
those non concessional contributions. Yeah, okay, so that you can
(42:44):
draw down on them later.
Speaker 2 (42:46):
For a home deposit, I've always wondered what the benefit
of that. Do you also get the interest that's paid
onto it, Oh, fifteen percent super? So you like yes.
Speaker 3 (42:55):
So let's say you've got your house deposit saved and
like you know, you're slowly chipping away and you've got
fifteen grand sitting there, pop it into SUPER and then
pull it out for your house and you've got an
extra fifteen percent back on that money. So true, it's
like legal money laundering. Wow. When I put it that way,
it gets a little bit sexier, a little bit riskier.
Speaker 1 (43:16):
Yeah.
Speaker 3 (43:17):
Yeah yeah. So inside superannuation you are taxed on fifteen
percent on earnings versus your marginal tax rate outside in
retirement phase up to two million dollars is completely tax free,
my god. And then outside of SUPER, like you've got
more flexibility, Like obviously you can access it before the
age of sixty, but you also pay your marginal tax
(43:40):
rate with capital gains tess counts and franking credits and
all of that and we try and make it make
as much sense and make it as beneficial as possible,
but goal you're still paying your marginal tax rate. Absolutely.
Speaker 2 (43:50):
And for those who have no idea franking credits that,
we have an episode about that.
Speaker 3 (43:55):
Yeah, we have a whole episode of franking credits. If
you want a cute little like tld A, frankin credit
is an IOU that comes with your return to say,
this company that I've invested in has already paid tax
on my behalf, so please don't.
Speaker 2 (44:11):
Double tax me.
Speaker 3 (44:12):
Yes, okay, yep, yep, yep, I owe you that's connected
to your share.
Speaker 2 (44:16):
I see, I see, I see okay, So what about
insurance and super? Can you explain how?
Speaker 3 (44:20):
Okay, Okay, I'm glad you brought that up because I
have in stress in balls because so many people hopefully
are like, oh my god, they beck, we're so inspired.
We want to go and change our super immediately. But
please don't do that very quickly, because historically default insurance
was just a given on your super. So you'd like
sign up. When I was younger, I would sign up
(44:42):
for a Super and then I would immediately have insurances
attached to that, and those insurances are.
Speaker 2 (44:47):
Like Hen's teeth. They are.
Speaker 3 (44:50):
I'm not going to say they're the best insurance in
the entire world, because like they might not be. But
you didn't have to do any health check for that, Beck. Yeah. True.
So like I'm I'm going to give you a really
morbid example that's going to make a lot of sense. Yes,
I'm going to use you as an example, but yes,
I love you, But also I think you'll find it funny.
Speaker 2 (45:08):
Beck gloves of ape.
Speaker 3 (45:09):
We know Beck gloves of ape, right, Yeah, absolutely?
Speaker 2 (45:11):
Yeah.
Speaker 3 (45:11):
So if I sent you down to my friends at
Skywealth and said, do Beck's insurances, they would do your
health questionnaire and you would tell them, yeah, I vape,
and then the insurance company would say, okay, Beck, thanks
for that information. So what we're going to do is
exclude lung cancer and not cover you for lung cancer
(45:32):
in the event that that happens, because you're personally choosing
to vape, and you know, obviously we just don't want
to pay for that. It's too much risk, but we'll
give you the insurance, but there's this exclusion for that. Right.
The same thing could happen if you were like a
Keen netballer and you had a really bad knee injury.
And then we go and do that same health questionnaire,
and your insurer is going to go, look, you're a
(45:54):
pretty high risk of another knee injury because you already
have like basically a compromised body part. So we'll cover
you for everything except for your knee. Ye.
Speaker 2 (46:02):
Right.
Speaker 3 (46:02):
So they have these things called exclusions, and for a
lot of us, you might go, well, I'm fit and
healthy and fine, okay, fine, pop off, queen, go get
your insurances done while you are. For some of us,
we get mental health exclusions because we've been very honest
about our situation men in therapy, and there's been a
lot going on. But most funds, so most super funds,
(46:24):
if we have this default insurance, go. You could go
and get lung cancer and still be covered because it
was default and they just gave you blanket insurance. They
didn't do the health questionnaire, they didn't check your knee,
they didn't check pre existing conditions. And you know what,
if you have a pre existing condition, or you do
something more risk averse, like a vape. And I'm just
using that as an example because I do not endorse
(46:46):
vaping and I know you don't either. Well, no, but
you still like it. That can do it. You can't.
But most super funds automatically include some level of insurance,
and if you go and change your super fund today,
it just cancels that insurance. And the way that the
legalities of the super industry and the insurance industry happens,
(47:07):
you don't automatically.
Speaker 2 (47:08):
Get it in your new fund anymore.
Speaker 3 (47:10):
Yeah, okay, So I need you to make sure that
if you have income protection, if you have life insurance,
or you have some type of total and permanent disability
or TPD inside your super maybe let's check if we
need to keep that. And at that point, if you
still want to keep that and move super, you can.
I actually have two super funds for this reason. So
(47:32):
I have one superanuation fund that is my old super
that has a good insurance policy for life insurance inside
of it, and I actually keep I think it's like
two thousand dollars in that super fund, yeah, just to
pay the fees and make sure it never dips below
and that you know, I get to keep that insurance.
And then all of my other super is in my
preferred superannuation fund. Yeah. Nice, but if you didn't know,
(47:53):
you would just go and roll over to a different
fund and then miss out on something that could potentially
change yours or your families life if something bad happened. Yeah, right,
So I would say it is absolutely worth being aware
about what your soup, like what you've got in your super,
because if you change or you consolidate funds without checking,
like that insurance disappears. You can't just go back and
be like, oh, hey, sorry, that was an accident. I
(48:15):
didn't yea, I didn't want that. They're gonna be like,
absolutely not, We're glad you're gone. Like they're going to
be like, we've been trying to get people out of
this because we didn't do the health check and now
a lot.
Speaker 1 (48:25):
Of us do.
Speaker 3 (48:26):
Yeah. So yeah, if you were through the gates, don't
come back out without like a stamp on your wrist,
because they're not going to let you back in the club. No,
oh my god.
Speaker 1 (48:34):
You know.
Speaker 2 (48:34):
So you can also set up.
Speaker 3 (48:36):
Policies outside of superannuation that are tailored to you, but
still have like premiums deducted from your super as well.
I don't know if lots of people notice that, you
could go do your insurances and have it paid from
your super since not coming out of your cash flow,
so that way you don't lose the cash flow, but
you also get the cover that you need. And I
guess that's where you know, calling your fund or working
(48:58):
with we've had feels from sky Wealth on the show before,
can actually help you. They'll walk you through what cover
you've got, what you might need, and I guess how
to structure that to protect you without paying for extras
that you don't need. And I guess that's a shameless
plug for sky Wealth basically because they're my financial advisors
for my personal insurances. They did mine, they did my husband's,
(49:21):
They've updated it since I had Harvey. They update it
when I get, you know, different debt situations. Slack and
most of my team have gone through them as well,
and we actually refer a lot of people in our
community there just because they do good and they be
good and I don't know, sometimes you just want a
good recommendation. You can also top up your super to
cover insurance if you're like, oh, well, I don't want
(49:41):
it eating away at my returns. VE like, I want
more insurance, but I don't want it at the compromise
of my you know, retirement. Well, you could top up
your super with those additional contributions so that you get
the tax savings. We pay for it inside super and
it's fifteen percent instead of thirty. Oh clever, got he's clever.
Speaker 2 (49:59):
Yeah.
Speaker 3 (49:59):
But so your financial advisor, like if you went and
saw Skywealth, that just tell you how to do that properly.
Speaker 2 (50:04):
Absolutely, so you can call your super fun for literally
anything appearances.
Speaker 3 (50:10):
Yeah, you could ask them about everything. I mean, they're
probably not that good at giving life advice. They do
often offer free financial advice, yes, but it's constrained to
your super funds. They can't be like, oh, yeah, Beck,
he's how to save for your next holiday to Thailand
because you enjoyed that so much. But you could call
them up and ask them to explain your options, your
fees and like your insurances in plain English. They are
(50:34):
just people that work there and know it really well.
They could also help you set up a salary sacrifice.
They could also model things for you, so you can
get them like get them to work. Yeah, you give
me an example of what an extra twenty dollars a
week could look like over the next decade.
Speaker 2 (50:48):
What about twenty five. What about thirty, Like put them
to work.
Speaker 3 (50:52):
They're not going to like me saying that, but you're
paying super fees so that you access this service.
Speaker 2 (50:56):
Use the service. I just think that we should be
using it. Okay, Well, I don't know about you, but
my brain is full in a good way.
Speaker 3 (51:04):
I'm not gonna lie. I think I need a cup
of tea.
Speaker 2 (51:06):
Yeah, it might be nice.
Speaker 3 (51:07):
I feel like I need to just I've been yapping.
I'm so excited about this, and I guess my hope
for this episode is that if you were starting to
feel like you were a little bit behind, you finished
this episode and you're like, oh, it's actually not that bad.
Like I have a pretty clear idea of what I'm doing.
I'm a very capable human being. I could totally set
this up, and you're ready to take another small step
(51:28):
in the right direction for Future You. So if that happened,
please go and do that, like yes, follow the momentum.
And if you loved this episode, obviously please hit subscribe
because we've got plenty more episodes coming that are going
to put future You in the best possible position. And
share it with your bestie so that you can both
be holidaying in Europe together in retirement, like you're.
Speaker 2 (51:49):
Already yacht or something.
Speaker 3 (51:50):
I don't know.
Speaker 2 (51:50):
Absolutely, we'll see you guys on Friday. Bye bye.
Speaker 4 (52:01):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
If you do choose to buy a financial product, read
the PDS TMD and obtain appropriate financial advice tailored towards
(52:21):
your needs. Victoria Divine and She's on the Money are
authorized representatives of Money.
Speaker 2 (52:26):
Shepper Pty Ltd ABN three.
Speaker 3 (52:29):
Two one IS six four nine two seven seven
Speaker 4 (52:32):
Zero eight AFSL four five one two eight nine
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.