August 4, 2024 • 41 mins
Amanda Morrall joins Tim Beveridge on The Weekend Collective to discuss where your tax cut can go to take full advantage of it.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk SEDB.
Speaker 2 (00:11):
Hnny Town. She's gonna flood of tutt news down for.
Speaker 3 (00:16):
Me, for me.
Speaker 2 (00:21):
I got the odds come. I gotta get time. I
gotta time that suns to nights. It's well, I'll be
I'll be.
Speaker 3 (00:49):
Rose.
Speaker 2 (00:50):
He knows he And welcome back to the show. I'm
Tim Beveridge. This is the Weekend Collective. If you've missed
any of the previous hours, my hour just gone with
Kent John's health, talking about setting goals and getting started.
You know when you sort of think, oh left, I've
let myself go. It's hopeless. What's the best way to
get you stuff started? Go and check out our podcast.
Look for the Weaking Collective wherever you podcasts. But iHeartRadio
(01:11):
is a great place to start. But right now, it's
time for smart money. And my guest is well, she's
almost no introduction. It's Amanda Morale.
Speaker 3 (01:18):
Hello, Amanda, how are you nice to see you again?
Speaker 2 (01:21):
It's been a while, Yes it is, And how have
you been? You can keep keeping well out of mischief,
keeping out of trouble, you know, excellent, that's good, that's
goody motivated and fit are you did you? Did you
have a chat with gas No.
Speaker 3 (01:34):
It's always an interesting conversation because I find there's a
lot of parallels between that motivation that's required us, whether
it's losing way to stay fit and also, yeah, that's
same motivation translates to managing your finances. But so I
always have a dilemma with you know, gym memberships, do
you under utilizer? So I'm an example of the person
who committed to this PILATEUS thing, and damn straight, I
(01:55):
get to the gym three times a week because I
have that's what I pay for. So it's highly effective
for me because I'm motivated make sure I don't lose
that money.
Speaker 2 (02:03):
Well, the analogy that I was thinking of when I
was chatting with Kent is a lot of people who think, oh,
I've left it too late to save. It's the same
with fitness, and they so they don't know when to start.
And I guess you can probably use an analogy for
getting fit in small baby steps with financial fitness, can't you.
But I'm doing that whole thing of thinking maybe I
just want to have another overseas holiday and live a
(02:24):
bit living for living for now or saving for later.
It's the constant balance, isn't it.
Speaker 3 (02:29):
It's a perpetual kind of question for people, particularly when
you get into those middle ages and you know, you
see friends straight and get sick, or you know, there's
no guarantees in life, and so that fragility kind of
wakes you up. It doesn't better not sit on this
mountain of savings without enjoying it a little bit. So
it is. It's absolutely sort of a fine balance.
Speaker 2 (02:50):
It's a tricky financial conversation. Actually, I don't mind taking
calls on that. By the way, what's your financial approach
to life? Is it to enjoy life now or save
save up really diligently for to look back on a
life that you haven't lived. I said that in a
slightly loaded fashion. Hey, by the way, you're a yoga
instructor or something, aren't.
Speaker 3 (03:08):
You of dual lifestyles? Yeah? I had a studio for
several years. Yeah, practice yoga, So I try to apply
a lot of those yoga kind of the philosophy I
think through my approach to holistic personal finance. So it's sorry,
I try to find the sweet spot because on one hand,
people can like look at money and it's all but
the money is really boring. But it's never just about
(03:28):
the money. It's about something deeper. And I find that
if you're able to kind of peel back a few
layers and be a little bit more self aware and
in tune with what you know your actual goals are,
then you may be a little bit more aligned to
what it is you're trying to achieve with your money.
So there is a nice alignment there.
Speaker 2 (03:45):
First thing we want to discuss today is so the
text cuts have kicked in. I'll be honest, I don't
know what my text cut is because I just assume
it's like twenty bucks a week, maybe because it's the average.
But we're going to dig into that in a moment.
But this is a question for you out there. Are
you I know it's excited about a text cut, like
the fact that we've simply adjusted the brackets for inflation,
(04:07):
so good on them, but are you How are you
using your text cats? What are you going to do
with it? Are you going to spend it on something?
Do you think it's a waste of time getting a
text cut because it's not very much? I did hear
someone say, oh, look, what's the point in getting a
text cut, because it's just going to go on the rates.
And my answer to that is, isn't it great that
you've got a text cut which is going to pay
for that increase in your rates? So what's your approach?
(04:30):
What's your view on the text cats? I don't want
to get too excited.
Speaker 3 (04:34):
Again, one size does not fit all, So you know,
for you know, maybe twenty bucks is not going to
seem all that significant, but maybe for somebody who's really
struggling to put food on the table or put petrol
in their car to get to their job, they might
actually say, hey, this is going to be helpful. So
it depends entirely on your on your personal circumstances, but
(04:55):
it's an opportunity. And I would say one way or another, right,
you know, eighty dollars a month, if that's what it
ends up being, that's not nothing.
Speaker 2 (05:01):
So, you know, I think the thing is people think
that they're going it's the way you process it. Because
if if you imagine a tax cuts like all more
money and I'm going to have some fun spending money,
That's not really what these tax cuts are about, are
they They're just sort of adjusting the brackets and you're
not really going to notice it, except that might make
(05:23):
you more able to pay for an essential that you
might have stressed over.
Speaker 3 (05:27):
Possibly well, I think that's why they were a cenec
met say it was an election bribe. But you know,
at the same time, I think everybody will acknowledge we're
in a cost of living crisis and things. You've seen
a lot of costs creep and food, and you know,
rental increases everything. So I'm sure if you're struggling, there's
going to be a place that you will find a
(05:47):
good application for in a wise use for this money.
If you're not mindful about your finances, you probably won't
even feel or see the difference because you're simply not
paying attention. I haven't bothered to push my kids to
try kids than in their twenties, but their students and
they both work to see if this is gonna the
twenty bucks a week will apply to them if they do.
(06:09):
Trust me, they'll get very excited. But they'll get excited
for the wrong reason. Is they'll I think they'll equate
that to a box of bear, which is a little
bit less than a box of bear. But that's exactly
how it'll translate for them because they're twenty year old
university students. So in one, you know, we're out the
other door sadly, but you know, if they were thinking
about their goals one wants to travel next to it,
(06:31):
they were absolutely banking that money and not spending it.
But it comes down to gain that awareness of the
money and be the discipline, like you just like the exercise,
the discipline to actually tuck it away somewhere where you're
not going to read that.
Speaker 2 (06:45):
Here's the question that just occurred to me as we
were talking about this what to do where their tax
cuts is And it's to do with how we spend money,
and because we do it electronically in the days where
you wouldn't have oh gosh, I'm writing out a check.
Goodness may but how rich I was that? But anyway,
(07:05):
but in the days of cash and checks, I think
we were much more aware of the money we had
to spend because often people would and people were managing
a household, they would withdraw a certain amount amount because
they know, this is what I've got to make ends meet,
this is what I've got to spend on groceries this week,
(07:28):
and they take it out in cash, whereas I wonder
how many people really are aware of what they're spending,
because all they do is they go, I mean you
do it with your phone now. You just wake your
phone up and blinkets paid for And you only notice
it when it's a month later and you get a
statement and you realize you've blown your budget by five
(07:48):
hundred bucks or one thousand or something, and you go, oh, hell,
I mean, I.
Speaker 3 (07:54):
Know, you're absolutely right. I remember the back of the checkbook.
It used to have a little balancing part. You balanced
your check book right, so you would and you would
write that conscious of it. But you know, as as
useful as you know digital apps are these days, it's
it's all too easy to touch pay, you forget unless
(08:16):
you're logging in like there's there's not many people, I
would say, who are checking there, you know, on a
daily basis, a weekly or even month, probably monthly if
you're paying a mortgage and looking and drilling at the
counts to see that ends in the outflow. It's not
many people have that discipline. And then when they do
get around to it, and they add up all the
things that they've frittered away on the starter boxes a
(08:36):
beer in the case of my cat. That's you know,
it's a bit of a shock.
Speaker 2 (08:40):
Actually, So I'm going to add an extra supplementary question
must to speaking of this is how are you tracking
your spending? Because when it comes to a tax cuts,
I are you someone who tracks it well enough that
you will notice? Give us a call onighten eighty because
you know. The funny thing is about checks, which I
just mentioned. I can still remember the exact amount of
(09:00):
the check that I used to write for my rent
every month or two or whatever. In fact, I'm not
going to say how much it was because it wasn't
very much money because it was a while ago.
Speaker 3 (09:09):
And people will go, isn't that lucky, because yeah, I'd
love to know what it wasnt.
Speaker 2 (09:14):
Well, whatever it was, it could have been for a
month or two. But the amount was four hundred and
thirty three dollars and twenty seven cents.
Speaker 3 (09:20):
What year are we talking about? Ten time?
Speaker 2 (09:21):
I'm telling you I'd be interested to know what there is.
It's a few decades ago, so you remember it though, right,
And our rent used to go up twenty percent every.
Speaker 3 (09:31):
Year, twenty percent. That's steep.
Speaker 2 (09:33):
It went up twenty percent one year. Then the next
year it went up because it went up five dollars
a week and it was originally twenty bucks a week.
This isn't it? My producers look at me, going gosh,
I spend that in my mortgage every three minutes. I
was a student in a five person flat where the
ceiling once caved in because it was so revolting and
(09:53):
moldy and disgusting. And but yes, they put it up
from twenty to twenty five to thirty to thirty five
each year. When you consider as a percentage, it was outrageous,
but I think simply it was Anyway, there we go.
What was the question you said?
Speaker 3 (10:07):
Sorry, well you asked a question. Oh yeah, listeners about
how people are Do they keep track? Will they even
notice this as there? You know, what's their personal finance
approach to tracking finance?
Speaker 2 (10:19):
And will you notice the text?
Speaker 4 (10:21):
Cut?
Speaker 2 (10:21):
Yeah? What are you doing with it? Okay, well, look
we might take it. Let's actually let's take a call
now because Craig's called, and get a craig a gun.
Speaker 5 (10:29):
Good afternoon, how's it going?
Speaker 2 (10:30):
Thank you? Good?
Speaker 5 (10:32):
And yeah, I found it quite weird when I first
left home, and well sorry, when I left school and
got my first job. I was inaning, working at a
sound company in about nine hundred bucks a week in
the early nineties, living at home and paying no board.
Speaker 3 (10:46):
Good old days.
Speaker 5 (10:47):
Eh yeah, yeah, it's like, oh, I spending money like
an idiot. Really, but I say a bit now. But
what I find nowadays is what's my phone? How you
can pay by pay payWave when all your phone in it.
I have that set up on an account that has
no facility for overdraft on it, and I can't get
so I can't go into negative. But once it gets
(11:08):
the zero, that's it. And I trends to a certain
amount of money from my main account into that account
every week. So when I got around and pay stuff,
it's like you sometimes forget how much you're paid, but
you know that at the end of the week you
can only spend two hundred dollars on that account. Then
it goes and then it stops working.
Speaker 3 (11:24):
So it's like a spend control that you've.
Speaker 5 (11:27):
Yeah, that's what I do, so to put money into
the account, and then I know that you're going to
speaking the stuff around. You try and keep a track
of it. You know, if you get a little bit
carried away or spend too much. There is a limit
that you're going to only be able to spin and
thendle to stop. So it's all the way I sort
of use it to say, well, to keep tracking my
money anyway.
Speaker 3 (11:42):
Yeah, you're protecting you're protecting yourself from yourself. I tried
that trick recently with my two degrees up and we
went on a trip. Man, make kids with me on
the roaming and so they can't. You if you set
your spend control limit on these apps to zero, then
you can't get any of the roaming charges to just
get no access. So it's that's a great idea to
just sort of limit yourself from getting into too much.
Speaker 2 (12:04):
Did you actually keep a track of every transaction Craig,
or did you just suddenly it would you just have
a payment when it would bounce and you'd be like oh.
Speaker 5 (12:12):
Oops, yeah yeah to bounce and you go okay, but
then you just put out your other credit card pay
from that anyway, but you need you then you know
you reach your limit.
Speaker 2 (12:23):
Okay. So it wasn't. It wasn't the end of life
as we know it when you bound. It just got
to the stage.
Speaker 5 (12:28):
Where yeah, other rush was if someone wants to steal
your wallet. With your payWave card in there, then you
know that the Maxima's going to be able to get
out of there. Is that rather than not going to
get out to get too carried away? But yeah, I
just use it. But every Friday night, I don't normally
sit down with fish and chips or a burger or whatever,
(12:49):
which is probably unhealthy. Compet into your previous guests and
just go through my records and go, oh, yep, but
yep I paid that much. Yep, that's right, and it's
just he need to go through it. Just put into
spreadsheet over the weekend in this case, so you never
look at it sometimes and go, oh, speaking way too much.
Did the takeaway place to cut that down?
Speaker 2 (13:05):
So yeah, because there are some some of the banks.
I think actually we've got a credit card with Westpac,
and I think that there is something where they can
it will show how much you're spending on different types
of spends.
Speaker 3 (13:17):
Yeah, it's got cash cash now, that's.
Speaker 2 (13:19):
Right, and it was you know what, I just stopped
looking at it.
Speaker 3 (13:22):
That's a good thing. But I've got a question for
a coloda, like so you obviously got a little bit
more disciplined Craig. But because you're aware of your spending
and you're checking it, so where would you say that habit?
Is that something that you know you're kind of self
tired or did you get some parental guidance on being
you know, aware of.
Speaker 5 (13:43):
I was just looking at my account one day when
I was probably twenty five twenty seven and had about
thirty green in my account and going hmmm, where can
I use this more wisely rather than because all my
friends all go out and get beers and buy cars
and spend money on the cars doing that and then
sell it for a lesson they pay for the car,
And I'm looking at that game, well, I probably need
(14:06):
to save it from a future. That was before the
kV say they kicked in. But then I was looking
on the big scheme of things that when you do
get paid, you're super from the government. You pay text
through your entire life you get Super, and when you
get Super they text you're on a super so you're
kind of getting text twice. And I was looking at
going well, yeah, I probably need to look after myself really,
(14:26):
because it doesn't it's a little worried more along the
lines it down the track. I don't believe the government's
already going to look after me too.
Speaker 2 (14:32):
Well, well, I think that's the motivator for a lot
of people in their savings. Yeah, and we've been given
that message anyway that super is fine, but it's not
going to be enough.
Speaker 3 (14:41):
Well, that's interesting. So the age of enlightenment for you
was around twenty seven where you started to pay.
Speaker 2 (14:46):
That's pretty good.
Speaker 3 (14:47):
That's pretty that's quite young earlier.
Speaker 4 (14:49):
Yeah.
Speaker 2 (14:51):
Yeah.
Speaker 5 (14:51):
And one of my friends went over to work for
Dubo for a couple of years, about five six years,
came back to Auckland and was looking at buying a
house random and when he was about thirty thirty two
and bought a house and then the real estate people
are like, what company can be using for your mortgage?
And he goes on paying cash and they couldn't believe
the head too and save Yeah.
Speaker 2 (15:11):
Wow, wow, good thanks Craig. By the way, Craig, sorry,
are you the tax cut? Does it make a difference?
Where is yours going on?
Speaker 5 (15:22):
I think I've talked to you before. I'm on the
one that's got the vision problem. In the moment, someone's
sickness benefits really make any difference. From me at all.
Speaker 2 (15:29):
Oh, okay, so you're not you're getting You're in the
sort of two dollars fifty a week basket sort of thing.
Speaker 5 (15:33):
Are you something like that? But I think I'm worried
about it? Is down the trick of things get really
pear shaped. Will it be that I won't get Super
until I get through my keys favor or something?
Speaker 4 (15:43):
I don't know?
Speaker 2 (15:44):
Yeah, look, I mean, don't rule it out, I guess,
but I think you're right to be cautious about it
because it gives you a more prudent approach to you.
Speaker 3 (15:54):
Most financial advisors will tell you just treat Super as
sort of a bonus, but count on your other private
savings and anything else out of that is a sure
thing that you know you can rely on.
Speaker 2 (16:05):
But by the way, am I talking about that the
flat I lived in Dunedan all those years ago as
turned into a game of I don't know if you
know the mighty python skitch luxury. It's like we used
to live in pepper bag and septic tunk, you know,
when the Four Yorkshimen try and outdo themselves. And somebody said,
somebody's texted me saying, I almost feel like I need
to put a Yorkshire accent on there, saying I lived
(16:26):
in a four person flat and uni where the toilet
would drain and shower every few weeks. I paid three
hundred and twenty dollars a week.
Speaker 3 (16:34):
Oh my goodness.
Speaker 2 (16:35):
Yeah, that's flash, isn't it. We had an outside toilet
in the middle of Dunedin and winter. You had to
go outside. You had to get out of bed, go
out the back door, walk around to the outside toilet
in zero degrees to go to the loo in the
middle of the night. That's why it's pain next tonight.
Speaker 3 (16:54):
I'm not sure it's changed so much to judging from
the stories I hear from my son who's freezing as
our soft down there is still.
Speaker 2 (17:01):
Actually the funny thing is about finding a flat. Back
in those days, it was never about it's go and
look at this flat or this flat. It's like, has
someone got a room you're in? You just take whatever
room it is, and if it happens to be a
sort of you know, a medieval dungeon, then that's just
the like of the drawer.
Speaker 3 (17:17):
So pray a badge of honor, I think down there.
Speaker 2 (17:19):
Anyway to drag the conversation back to where we're at.
We're going to take a break. But the tax braks,
where are you spending yours? Will you notice yours? And
actually if you won't notice it, why is that? Is
that your fault because you're just handing over the plastic
every time you spend your money? Or is it because
of some other reason? Get us a call? I wait,
one hundred and eighty ten eighty, it's twenty four past
(17:40):
five news talk sai'd be welcome back to the week
(18:04):
and collect it. There's a money. My name is Tim Beverage.
My guest is a Mana Morale. She's a financial author,
commentator and guru. Can I call your guru? I think
I can. It's a big call, isn't it. You probably
don't like weds like it, but it ties on with
the yoga thing.
Speaker 3 (18:17):
Well I'll take it like that. I'm flattered, so you
know I'm not gonna say no. But before I forget,
can I just add that there is a great for
those who are curious this about how much they're going
to get on the text. The text guy savings there.
There was a very good piece in The Herald not
too long ago July thirty first by Jamie Lythe but
(18:38):
I've also posted that on my Facebook page, Manda Morrel. Yeah,
so somebody can if you're curious to see, just jump online.
Speaker 2 (18:45):
What's it about it?
Speaker 3 (18:47):
Just they've got it basically breaks down all the thresholds
how the personal income tax thresholds are changing to get
you this twenty bucks a week on average. But it
has a little nifty calculator where you can go in
and into your weekly income and I'll spit out with
your approximate savings. So that might be helpful for those
of you are wondering. You know, then you can take
note of it now that you're listening to this conversation
(19:08):
and have some serious sight about Okay, what am I
going to do with eighty bucks a month?
Speaker 2 (19:11):
Amanda Morale dot com. That's Amanda. By the way, I've
mentioned your name so often, I don't think I've stopped
to spell it. I'm sure if people googled you and
misspelled it would still find you. But it's Amanda as
you'd spell Amanda M double R A double L dot com.
Speaker 3 (19:25):
Thank you for that shout out, yes, so that I'll
put that up on my blog, but again so on
my Facebook page or if you google it or go
to the inline revenue. I'm sure they'll be able to
find their way to the calculator that will give the
approximate savings. So yeah, just sid I mentioned that before
people forget and move on to next week's.
Speaker 2 (19:43):
And the question we asked before the break was how
are you spending your tax cut? But actually would you
notice from the way you manage your money, Because if
you're just handing out a plastic every day, you know, bing,
or you're basically waking up your phone and doing the payWave,
do you actually keep track of your spending so you
actually do notice the difference from that tax cut? O
eight one hundred eighty ten to eighty right, Peter, Hello Peter,
(20:05):
Hello Peter.
Speaker 4 (20:07):
Yeah, yep, yep. Sorry, the money in the bank, you know,
and you know a few hundred thoulsum, I'm mortgage free. Basically,
just wanting in the moment, any suggest thoughts. I know
you can't give specific advice.
Speaker 2 (20:24):
You've listened to this show before, Peter, obviously, good on
you what to do with it? You've got a bit
of extra cash.
Speaker 6 (20:29):
Basically, yeah, I was thinking maybe I don't think Hewson
was worth investing in the moment, I was wondering what
thoughts are just putting away in say a and zer
or something or wet pap or something.
Speaker 2 (20:43):
In terms of what sort of bank, what sort of
institutional investment can you make?
Speaker 4 (20:47):
M do you not? Yep?
Speaker 3 (20:50):
Oh, so I was just going to ask you if
you had any dependence at all.
Speaker 4 (20:56):
I'm Mary, but my bath my kids are over twenty,
but you know are still dependent.
Speaker 3 (21:00):
Okay, well when sorry, this may not apply to you,
but I guess maybe for any parent who you know
finds that this is sort of additional money for them,
and you know, they've got a kid over eighteen who's
in kvsavers, not contributing that twenty dollars a week would
ensure is an example that they qualify for the government
contribution annually and that'll get them if they, you know,
(21:23):
get to one thy forty three, which is roughly twenty
bucks a week, that'll get them another five hundred and
twenty one bucks. So that's a good, in my mind,
a good use of your money if you've got discretionary
income in terms of specific products. Can't recommend that, but
you know you could equally do the same to your
kiwisaver or if you've most KIV savers have parallel products
(21:46):
now as well, they're just not locked in, so it's
a separate investment fund that you could set up as well.
Speaker 2 (21:52):
How long have you had the money sort of sitting
there with you going what do I do with it? It's
a oh only awake okay, okay, okay, did you get
the numbers FI lotto or something? Okay? Well, actually that's
a common I mean because for most people, if with
the distaste for my parents, that went pretty much straddling
(22:14):
the mortgage apart from a trip to parents.
Speaker 3 (22:15):
Yeah, a lot of people will be well, I'm sure
if you ask that question at your bank, will liquordy
split enroll you in one of their own products. So
take your time with with researching some of the choices
out there, and there are a lot of choices. Just
be able to where what you're.
Speaker 4 (22:30):
Paying for Just one more question, what's what's the banks
balls up? What's the what's the government guarantee? How much
is that?
Speaker 2 (22:41):
Are you?
Speaker 4 (22:42):
Are you?
Speaker 2 (22:42):
Are you there? So you've come in some money and
you're actually nervous of just putting it into the bank,
even because.
Speaker 4 (22:49):
You know there's a bank run what's the government guarantee?
Do you know?
Speaker 3 (22:54):
Yeah, I think it used to be on a particular product,
like a t D up to one hundred and fifty thousand,
but I don't don't hold your breath on that one.
But I went with most banks. If you're really concerned
about this, check the credit rating of the particular bank,
and the credit rating of those institutions is supposed to
be indicative of their financial strength, that is, their ability
(23:15):
to withstand a big, you know, pressure pressure point. So
that's something you.
Speaker 2 (23:20):
May is that in the vacuum. Look, I can understand
that if you count the money, I think.
Speaker 4 (23:26):
Mons or something. All right, Well.
Speaker 3 (23:30):
Right, yeah, Standards and Porter took a bit of criticism
for over the GFC that they had rated some of
these institutions. But in any event, it sounds like you
want to take a conservative approach. So the TD rates
right now, if you're that conservative you want depends you
on your a, your goals, and when you need access
to that cash. So if it's something that you just
(23:51):
want to lock up and leave for you know, ten
or fifteen years, you might be looking to go a
little bit more.
Speaker 2 (23:56):
Actually, Peter, I can actually refer this is not specific
financial advice, but we have discussed the once on one
of the hours we did with the asset management people.
There's quite there's probably on our podcast a couple of
appearances go from them where they're discussing the bond they're
discussing the bond markets, but as part of that conversation
it is it is an hour we spent when we're
(24:18):
talking about putting your money in something that's not so
high maintenance and risky and just where the bond markets
are at. So it's not not advice from me, but
it's a useful hour to listen to on the podcast.
Speaker 3 (24:31):
Thanks for your.
Speaker 2 (24:32):
Car, Yeah yeah, but I mean you can't really give
any reckons on this stuff, can you, But it's it does.
The other thing it reminds me of, though, is to
check those credit ratings out. I think interest dot cod
at in z is one website you can check out
for credit.
Speaker 3 (24:45):
Right interesting and if Peter's still listening, is an excellent
resource because it will give you the comparative rates for
you know, over fifty thousand, under ten over you know,
by all the different institutions, and plus that will review
all their credit ratings, so it gives you all those
options in comparisons. The other one that people are likely
(25:05):
to go to is smart Investor, which is run by
sortid and it does a really excellent comparison of all
the different financial outfits out there by product, and now
you can look at their historical returns. So those are
some considerations you'd want to look at what would have
been their historical returns, look at your time frame for
investing that that money, and also what you're paying that
(25:27):
institute to invest the money for you, and that's that
adds up as well. So be be mindful of the
fees you're paying, whether it's a financial advisor, how they're paid,
or if you're investing in yourself, what you're going to
be paying on it, in your tax rate, et cetera,
whether it's an apply all those kind of compositions, Yeah,
would to reduce your tax rate. I'm not sure Peter's
(25:47):
still working, but you know that's a more tax efficient
vehicle anyhow, Peter, there's heaps of information between sortied interest,
Dot called Google.
Speaker 2 (25:55):
You'll find some answers. As you were talking to Amanda,
and you probably were noticing, I had a slight smile
on my faces because you're with your Canadian accent when
you said you can get informational on on intrat dot co.
And when you said Sorted, I thought you said you
can find some good information on Sorted.
Speaker 3 (26:13):
So apologized to the good people at Sorted. I realized
what you said, but my enunciation it was.
Speaker 2 (26:21):
Just it was just my brain works on one hundred
miles an hour, And for for about two seconds, I thought,
what is sorted as a website? Is that some new money?
Because money is so filth, Because money is so filthy,
it would be a good name for a money website,
wouldn't it be Filthy Luca dot com or something.
Speaker 3 (26:38):
That's the name of a very good book, by the.
Speaker 2 (26:39):
Way, Filthy Luca excellent. I just digressed with the t sorted.
Speaker 3 (26:46):
Or by excellent resources. You can do a personalized retirement
planner which gives you some projections, and you can throw
in inflation and value. But you can di y most
of these things, So people should take advantage of these
these resources.
Speaker 2 (27:01):
I haven't seen Sorted advertising advertised as much like that
you you'd see advertised advertisements. Gosh, I can't even speak
properly all the time for it, but.
Speaker 3 (27:11):
I agree they kind of sort of fell off the
reader a little bit. They well, because they've got the
Retirement Commission and it's got a long terra and in
which I can't recall at the moment. And then there's
the FAA who's kind of stepped into that space of
providing financial education. So there's a few competing players in there,
which maybe is sort of turned down the volume on sorted,
but it is still there and has many many great
(27:33):
tools and guides for people.
Speaker 2 (27:36):
Another one here, just before we go to the break.
Best app I think I've found getting an overview of
personal finance, finance habits and come spending and investments, et cetera,
was called pocket money dot Com. I believe this person's
sort of half a half on the text, but then says,
absolutely brilliant. App puts the likes of the B and
z ones to shame, automatically categorizers you're spending into various
categories and set up alerts on each category. Yeah, okay,
(28:01):
he may.
Speaker 3 (28:02):
Or she may be come using that with pocketsmith too,
because pocket Smith's been in that space for some time
as well, and they provide a free product and they
also have a premium product, and it basically as he's
or she is saying is categorized as you're spending, and
that's a very reputable app that's been in the market
for some time.
Speaker 2 (28:20):
Okay, well, just while we're on that, I would have
an inherent suspicion of anything that is not an app
that belongs to the bank come with, because you surely
would have to give permission for this particular app to
you do too, and I don't that makes me nervous.
Speaker 3 (28:36):
Well, that's the direction we're moving with open banking, where
they'll be if by permission, you'll be able to kind
of import this and export that and centralize. I think
it'll actually be quite a powerful.
Speaker 2 (28:47):
As so long as that's not owned by CrowdStrike.
Speaker 3 (28:49):
No, every I obviously do your research first, and you know,
but yeah, I get that people are being probably more
readily trust their bank, even though they should be skeptical bank.
But I get it. You have to be careful these days,
very careful.
Speaker 2 (29:05):
Yeah, okay, right, we'll be back in just a moment.
It's so twenty two minutes to six news Talk said,
B got news.
Speaker 7 (29:17):
I gotta bee, so I'm gonna work, don't work every day,
I got mouth, I got fee.
Speaker 2 (29:26):
So I'm gonna make shore. Everybody is I got Bill.
Speaker 7 (29:31):
Parley's built barnumb my dust day looking like a mouth atly.
Little kids run around like a hear this coma's crowd.
There's a full moon out and my cals your house says.
Speaker 2 (29:43):
It gonna leave me and Pa come home with news talk,
said b This is the weekend collective Smart Money. My
guest is Amanda Morale, a financial commentator and writer and guru.
As I like to say, I've got quite a few
texts here. But actually before we get onto the Amanda,
there was an interesting question that came up while we
were chatting just now and our film caller Craig asked
(30:04):
about safety of banks, and it does time to the
question where people should be interested in this. How safe
is your key? We saber providers. Are there times when
you should stop and tech stock and think how are
they doing and all that? But how safe is the
money and key?
Speaker 3 (30:20):
We saber? Well, most people well, I don't know if
they do know or not, but in any event, it's
one of the most highly regulated products in the market
because the government helped to introduce this. So you don't
the fund manager doesn't own your money per se. They're
all governed by a supervisor who so that who has
(30:41):
custody of your money. So they are in terms of
financial products out there, they're among the safest you're going
to find. So, but you know, it's interesting. You had
this perception that you know, the bank is best kind
of thing.
Speaker 2 (30:56):
And in my mind, I do I think that, Yeah.
Speaker 3 (30:58):
I think as you have a relationship with the bank,
and again there's this the banks too big to fail
kind of perception. I mean, there's there's been a tiede
turn against banks more recently. But it's easy. It's an
easy choice when you already have a pre existing relationship
with your bank, and they they exploit that. They capitalized
that for sure. I and my blog this past week
(31:21):
wrote about how my son ended up accidentally switching his
key receiver provided to the bank because he happened to
be there discussing accident. Yeah, yeah, I'm like, how does
that happen? But he wasn't paying attention. I don't think,
but I want to switch just sign The conversation was
raised and he was getting I don't know, a new
(31:42):
debit credit card thing, and before he knew it, he
said he didn't want to miss a ferry and he
said he signed something and he'd switched. So I was
a bit shocked and horrified because you know, I'm like,
what happened there? But ostensibly he's he said, well, I
the guy asked me what my balance was and would
I like to see it in one place? And I
(32:02):
get that that's convenient. You were saying you got to
give permissions, right, So currently one of the biggest what's
a downside to say to being with keepers of everybody
that's not your bank?
Speaker 7 (32:11):
Is it?
Speaker 3 (32:11):
It's somewhere separate and you got to log in and
jack and get the app or or whatever. So for
people who like to see everything, I get that that,
you know, it's it's a little less convenient. It's not
a reason to switch, but it was happening.
Speaker 2 (32:23):
Is the question that they specifically asked which led to
them switching it was would you like to see your
money all in one place? Yeah? I would, yeah, done, yeah, yeah,
And I think it was a bit.
Speaker 3 (32:33):
I can't it is. I was quite irate about the
whole thing, but you know, I probably got half the
conversation from my kid, who was thinking about the next thing.
Speaker 2 (32:41):
So yeah, anyhow, I think a little banking on Bosman
sort of.
Speaker 3 (32:46):
Yes, I know, because the banks got slapped for some
some of these kind of aggressive behaviors when they banking
tellers were incentivized to solid products and get people enrolled,
so they're supposed to be quite careful. And I'm not
saying this person wasn't, because I wasn't there to hear
the conversation, but I was a little bit surprised it
happened so easily. So do your homework. You know, there
(33:06):
are there's some really good kiwisaver providers out there quite often. Again,
I would advise people to check the fees that they're
paying and the performance. All that good stuff you can
find out on a sorted with the tehutter. Did is
it yet we're morning Star?
Speaker 4 (33:21):
Yes.
Speaker 2 (33:22):
Actually there's a silver lining to that story too, that
it is easy to change your kiwisaver. I mean too easy,
possibly in the incident you've just recounted, And again we
don't have all the facts and we're not naming the
bank and everything, but obviously it's it's quite easy.
Speaker 3 (33:38):
It's incredibly easy. You know, it's literally a couple of
minutes to switch, and you can do it all online. Now,
which was never the case before twenty sixteen. You hear
you stuff to like go to Justice is a piece
print out forums, get us in that sign, trot around town.
Nobody had the timer could be bothered to do that.
So now you know, somebody upsets you with your keyvsaver,
(34:01):
you can switch. You don't like something, it's out of
alignment with your values, or you think their performance is
just terrible. Over a long period of time, you're going
to go, you can you find you simply go to
the one that you would like to you down, you know,
you fill out their forms online and it gets the
switch gets triggered through the ird and it does happen
very very quickly. In this case with my son, I said,
(34:22):
let's phone this person back and get them to you know,
bend the paperwork. But at that stage, and it was
probably an hour after you've done this, it had already
gone through. Wow, it's that fast.
Speaker 2 (34:33):
Well, okay, silver lining it's easy to do. Maybe let's
not say too easy. We don't want to slow things down,
but yeah.
Speaker 3 (34:41):
You want to do interesting as you want to do
your research before you start moving, whether it's investing two
hundred thousand dollars or moving your kiwisaver that's got twenty thousand.
You want to know and be confident that you're moving
it to trusted hands.
Speaker 2 (34:54):
Which actually, while we're on that, Oh, by the way,
I'm just there's a text on the textcut thing, because
go back to textcuts. No's but textcut stuff and all.
This person says, I use it to my local cafe
and local butcher shop, keep the local village afloat. Every
little bit counts and it all adds up. Since become
the dollars save spend share, says Mark, that's a nice
(35:15):
altruistic I.
Speaker 3 (35:16):
Agree with you, Mark. I think if you're not carrying
you know, credit card, dad or other things monkeys on
your back and you can afford to There's a lot
of restaurants and cafes hurting out there. My local says
business is terrible, and I agree. I would like to
do that too, to support them where possible. It's not
a lot of money, but you know, it adds up
(35:37):
for as accumulative for the entrepreneurs out there.
Speaker 2 (35:41):
I think that we've unfortunately we don't have a lot
of time to explore this. We might actually do a
whole save this for another time. But let's let's just
scratch the surface a bit, because you know, we're talking
about doing your research on kiwisaver. And of course the
expression that always pops up in my head is past
performance is no indicator of future performance. And that's really
(36:03):
Isn't that all we've got to go on? How do
you any are there any brief comments you could make
which would help people who want to research who is
a better kei we saber provider because they might have
been great last year, maybe they're about to have a
terrible year.
Speaker 3 (36:17):
Do you Yeah, you know that's so sort of a
golden rule, and you hear it uttered a lot, and
I think that is meant to sort of be a
cautionary tale to people who, you know, somebody might have
got lucky when you're the fund manager chose the right stocks,
like Tesla when it was off the charts, But seldom
is that say it was a double digit return in
a single year. You can't. What they're saying is you
(36:39):
shouldn't hold on to that as it being replicable over
the years going forward. So what they do suggest a
morning star is to look for a track record. Track record.
Now we're seeing in kyp saver because it's been around
for so long, so you know, over seven years you
can start to see were there returns from year to year.
(37:00):
Let's set aside COVID for a minute, jumping around dramatically
or just sort of tecking along in an ace upwarding
cline with their regular contributions and not doing anything too
crazy that you can feel like there's some steadiness to it.
And I think that's sort of the message there, that
you want some sort of reliability and proof that you
(37:21):
know it's not erratic sort of situation.
Speaker 2 (37:24):
Yeah, because I imagine the bulk of people shovel in
ki saber. You know, they get the employer contributions and
they just sort of sit and forget. Do we have
any data on how many people actually look.
Speaker 3 (37:37):
At with their default providers? That there's been in the
last few years has been a big push by people
like them FMA and MB and QS wereposed to get
people checking so they're not complacent, so that they can
be a bit more informed about who they're with. Because
in the early days of kiis, even if you didn't
active leeches, you were put into a default provider. In
(37:58):
the early days, there was about seven of them and
then they get spun out like a lottery system. But
who got them money? And I'll talk to people today
who like, I don't know who.
Speaker 1 (38:07):
I'm with, that's you.
Speaker 3 (38:09):
There's an easy way to find out. You just call
up the IRD or if you've got to log in
for my IR, it will be recorded on that. So
it's a starting point if you don't know who you're with.
But more people are getting actively interested.
Speaker 2 (38:21):
So I've got to own up because I just went
with the one with my bank, and actually it happens
to be one of the banks that seems to do
all right. I have kept a little bit of an
on it, and I thought, actually that's not bad. Okay,
you're doing all right. I will leave it there for
the time being.
Speaker 3 (38:34):
But if you want to do some comparisons out there there,
and again there's some great resources. Morning Star does a
huge comparison across peer sectors, and you can look at
the track record and you know you don't want to
be comparing a growth fund to a conservative or a
default fund, for example. You want to be comparing like
for like. So just make sure that if you're sifting
(38:54):
through that data that you're looking for the right things.
Or a fair comparison.
Speaker 2 (38:59):
Good stuff, great advice. We'll be back in just a moment.
I'm with Amanda Morales is smart money. It is not
minutes to six News Talks B and welcome back to
(39:29):
smart Money on the weekend collective with the Mounta Morale. Look,
we don't have much time left, Amanda, because time flies
when you're having fun. But I just sort of share
this nice little story here about young people getting ahead. Hi,
Tim and Amanda. I'm proud of my son, aged twenty eight.
He saved up two hundred thousand and is now ready
to buy a first time albeit he moved to OZ
two years ago and his generous grandma probably contributed about
(39:50):
a third of it over the years. But he saved,
he never blew it and has worked for five years.
He's conscious that he wants to live and have a
good life, which he's trying to do. However, even with
that big deposit, he can still only buy an entry
level at home, and it's pretty tough to find mine.
Always enjoy your segment. Thank you from Helen. He's still
doing pretty well. I think this young man, isn't he?
Speaker 3 (40:08):
I would be very proud of him too, Helen that's awesome,
and he'll be miles ahead of some of his paris
I agree house process are painfully high. But he's in
a good, good place and importantly he's got the discipline clearly,
you know, he had a little bit of help, but
he has the discipline, which I'll put him in a
good place for you know, all the years ahead where
he's making and meeting mortgage payments, fast tracking it and
(40:31):
making other goals happen. So that's a great story. Thank
you for sharing it.
Speaker 2 (40:34):
Yeah, because plenty of people have help, but they you
know a lot of people also blow it. So having
the discipline at that age to stick with.
Speaker 3 (40:43):
It, yep, doing the right thing. Yeah, not even thirty.
Speaker 2 (40:46):
It's great, good stuff. Hey, Amanda, thank you so much
for joining us. Time Flies. We must save that key
we saber talk about, you know, really how to dig
into the performance of your key We saber for another
time as well.
Speaker 3 (40:55):
I think they'd be love to Chad about Kiev Siver.
I know you do.
Speaker 2 (40:59):
Amandamarle dot com. If you want to check out any
of Amanda's work and some of the comments that she
makes and her blog, you can go to Amandamarrale dot
com thanks to my producer Tyra Roberts. Thanks Tyra, a
great job and we'll look forward to you company same
time next weekend up next at Sunday at six and
of course you can keep tuned to gold Sport for
(41:21):
the commentaries on all goings on in the Olympics. Have
a great evening.
Speaker 1 (41:32):
For more from the Weekend Collective, listen live to News
Talk SEDB weekends from three pm or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talk SEDB.
Speaker 2 (00:11):
Hnny Town. She's gonna flood of tutt news down for.
Speaker 3 (00:16):
Me, for me.
Speaker 2 (00:21):
I got the odds come. I gotta get time. I
gotta time that suns to nights. It's well, I'll be
I'll be.
Speaker 3 (00:49):
Rose.
Speaker 2 (00:50):
He knows he And welcome back to the show. I'm
Tim Beveridge. This is the Weekend Collective. If you've missed
any of the previous hours, my hour just gone with
Kent John's health, talking about setting goals and getting started.
You know when you sort of think, oh left, I've
let myself go. It's hopeless. What's the best way to
get you stuff started? Go and check out our podcast.
Look for the Weaking Collective wherever you podcasts. But iHeartRadio
(01:11):
is a great place to start. But right now, it's
time for smart money. And my guest is well, she's
almost no introduction. It's Amanda Morale.
Speaker 3 (01:18):
Hello, Amanda, how are you nice to see you again?
Speaker 2 (01:21):
It's been a while, Yes it is, And how have
you been? You can keep keeping well out of mischief,
keeping out of trouble, you know, excellent, that's good, that's
goody motivated and fit are you did you? Did you
have a chat with gas No.
Speaker 3 (01:34):
It's always an interesting conversation because I find there's a
lot of parallels between that motivation that's required us, whether
it's losing way to stay fit and also, yeah, that's
same motivation translates to managing your finances. But so I
always have a dilemma with you know, gym memberships, do
you under utilizer? So I'm an example of the person
who committed to this PILATEUS thing, and damn straight, I
(01:55):
get to the gym three times a week because I
have that's what I pay for. So it's highly effective
for me because I'm motivated make sure I don't lose
that money.
Speaker 2 (02:03):
Well, the analogy that I was thinking of when I
was chatting with Kent is a lot of people who think, oh,
I've left it too late to save. It's the same
with fitness, and they so they don't know when to start.
And I guess you can probably use an analogy for
getting fit in small baby steps with financial fitness, can't you.
But I'm doing that whole thing of thinking maybe I
just want to have another overseas holiday and live a
(02:24):
bit living for living for now or saving for later.
It's the constant balance, isn't it.
Speaker 3 (02:29):
It's a perpetual kind of question for people, particularly when
you get into those middle ages and you know, you
see friends straight and get sick, or you know, there's
no guarantees in life, and so that fragility kind of
wakes you up. It doesn't better not sit on this
mountain of savings without enjoying it a little bit. So
it is. It's absolutely sort of a fine balance.
Speaker 2 (02:50):
It's a tricky financial conversation. Actually, I don't mind taking
calls on that. By the way, what's your financial approach
to life? Is it to enjoy life now or save
save up really diligently for to look back on a
life that you haven't lived. I said that in a
slightly loaded fashion. Hey, by the way, you're a yoga
instructor or something, aren't.
Speaker 3 (03:08):
You of dual lifestyles? Yeah? I had a studio for
several years. Yeah, practice yoga, So I try to apply
a lot of those yoga kind of the philosophy I
think through my approach to holistic personal finance. So it's sorry,
I try to find the sweet spot because on one hand,
people can like look at money and it's all but
the money is really boring. But it's never just about
(03:28):
the money. It's about something deeper. And I find that
if you're able to kind of peel back a few
layers and be a little bit more self aware and
in tune with what you know your actual goals are,
then you may be a little bit more aligned to
what it is you're trying to achieve with your money.
So there is a nice alignment there.
Speaker 2 (03:45):
First thing we want to discuss today is so the
text cuts have kicked in. I'll be honest, I don't
know what my text cut is because I just assume
it's like twenty bucks a week, maybe because it's the average.
But we're going to dig into that in a moment.
But this is a question for you out there. Are
you I know it's excited about a text cut, like
the fact that we've simply adjusted the brackets for inflation,
(04:07):
so good on them, but are you How are you
using your text cats? What are you going to do
with it? Are you going to spend it on something?
Do you think it's a waste of time getting a
text cut because it's not very much? I did hear
someone say, oh, look, what's the point in getting a
text cut, because it's just going to go on the rates.
And my answer to that is, isn't it great that
you've got a text cut which is going to pay
for that increase in your rates? So what's your approach?
(04:30):
What's your view on the text cats? I don't want
to get too excited.
Speaker 3 (04:34):
Again, one size does not fit all, So you know,
for you know, maybe twenty bucks is not going to
seem all that significant, but maybe for somebody who's really
struggling to put food on the table or put petrol
in their car to get to their job, they might
actually say, hey, this is going to be helpful. So
it depends entirely on your on your personal circumstances, but
(04:55):
it's an opportunity. And I would say one way or another, right,
you know, eighty dollars a month, if that's what it
ends up being, that's not nothing.
Speaker 2 (05:01):
So, you know, I think the thing is people think
that they're going it's the way you process it. Because
if if you imagine a tax cuts like all more
money and I'm going to have some fun spending money,
That's not really what these tax cuts are about, are
they They're just sort of adjusting the brackets and you're
not really going to notice it, except that might make
(05:23):
you more able to pay for an essential that you
might have stressed over.
Speaker 3 (05:27):
Possibly well, I think that's why they were a cenec
met say it was an election bribe. But you know,
at the same time, I think everybody will acknowledge we're
in a cost of living crisis and things. You've seen
a lot of costs creep and food, and you know,
rental increases everything. So I'm sure if you're struggling, there's
going to be a place that you will find a
(05:47):
good application for in a wise use for this money.
If you're not mindful about your finances, you probably won't
even feel or see the difference because you're simply not
paying attention. I haven't bothered to push my kids to
try kids than in their twenties, but their students and
they both work to see if this is gonna the
twenty bucks a week will apply to them if they do.
(06:09):
Trust me, they'll get very excited. But they'll get excited
for the wrong reason. Is they'll I think they'll equate
that to a box of bear, which is a little
bit less than a box of bear. But that's exactly
how it'll translate for them because they're twenty year old
university students. So in one, you know, we're out the
other door sadly, but you know, if they were thinking
about their goals one wants to travel next to it,
(06:31):
they were absolutely banking that money and not spending it.
But it comes down to gain that awareness of the
money and be the discipline, like you just like the exercise,
the discipline to actually tuck it away somewhere where you're
not going to read that.
Speaker 2 (06:45):
Here's the question that just occurred to me as we
were talking about this what to do where their tax
cuts is And it's to do with how we spend money,
and because we do it electronically in the days where
you wouldn't have oh gosh, I'm writing out a check.
Goodness may but how rich I was that? But anyway,
(07:05):
but in the days of cash and checks, I think
we were much more aware of the money we had
to spend because often people would and people were managing
a household, they would withdraw a certain amount amount because
they know, this is what I've got to make ends meet,
this is what I've got to spend on groceries this week,
(07:28):
and they take it out in cash, whereas I wonder
how many people really are aware of what they're spending,
because all they do is they go, I mean you
do it with your phone now. You just wake your
phone up and blinkets paid for And you only notice
it when it's a month later and you get a
statement and you realize you've blown your budget by five
(07:48):
hundred bucks or one thousand or something, and you go, oh, hell,
I mean, I.
Speaker 3 (07:54):
Know, you're absolutely right. I remember the back of the checkbook.
It used to have a little balancing part. You balanced
your check book right, so you would and you would
write that conscious of it. But you know, as as
useful as you know digital apps are these days, it's
it's all too easy to touch pay, you forget unless
(08:16):
you're logging in like there's there's not many people, I
would say, who are checking there, you know, on a
daily basis, a weekly or even month, probably monthly if
you're paying a mortgage and looking and drilling at the
counts to see that ends in the outflow. It's not
many people have that discipline. And then when they do
get around to it, and they add up all the
things that they've frittered away on the starter boxes a
(08:36):
beer in the case of my cat. That's you know,
it's a bit of a shock.
Speaker 2 (08:40):
Actually, So I'm going to add an extra supplementary question
must to speaking of this is how are you tracking
your spending? Because when it comes to a tax cuts,
I are you someone who tracks it well enough that
you will notice? Give us a call onighten eighty because
you know. The funny thing is about checks, which I
just mentioned. I can still remember the exact amount of
(09:00):
the check that I used to write for my rent
every month or two or whatever. In fact, I'm not
going to say how much it was because it wasn't
very much money because it was a while ago.
Speaker 3 (09:09):
And people will go, isn't that lucky, because yeah, I'd
love to know what it wasnt.
Speaker 2 (09:14):
Well, whatever it was, it could have been for a
month or two. But the amount was four hundred and
thirty three dollars and twenty seven cents.
Speaker 3 (09:20):
What year are we talking about? Ten time?
Speaker 2 (09:21):
I'm telling you I'd be interested to know what there is.
It's a few decades ago, so you remember it though, right,
And our rent used to go up twenty percent every.
Speaker 3 (09:31):
Year, twenty percent. That's steep.
Speaker 2 (09:33):
It went up twenty percent one year. Then the next
year it went up because it went up five dollars
a week and it was originally twenty bucks a week.
This isn't it? My producers look at me, going gosh,
I spend that in my mortgage every three minutes. I
was a student in a five person flat where the
ceiling once caved in because it was so revolting and
(09:53):
moldy and disgusting. And but yes, they put it up
from twenty to twenty five to thirty to thirty five
each year. When you consider as a percentage, it was outrageous,
but I think simply it was Anyway, there we go.
What was the question you said?
Speaker 3 (10:07):
Sorry, well you asked a question. Oh yeah, listeners about
how people are Do they keep track? Will they even
notice this as there? You know, what's their personal finance
approach to tracking finance?
Speaker 2 (10:19):
And will you notice the text?
Speaker 4 (10:21):
Cut?
Speaker 2 (10:21):
Yeah? What are you doing with it? Okay, well, look
we might take it. Let's actually let's take a call
now because Craig's called, and get a craig a gun.
Speaker 5 (10:29):
Good afternoon, how's it going?
Speaker 2 (10:30):
Thank you? Good?
Speaker 5 (10:32):
And yeah, I found it quite weird when I first
left home, and well sorry, when I left school and
got my first job. I was inaning, working at a
sound company in about nine hundred bucks a week in
the early nineties, living at home and paying no board.
Speaker 3 (10:46):
Good old days.
Speaker 5 (10:47):
Eh yeah, yeah, it's like, oh, I spending money like
an idiot. Really, but I say a bit now. But
what I find nowadays is what's my phone? How you
can pay by pay payWave when all your phone in it.
I have that set up on an account that has
no facility for overdraft on it, and I can't get
so I can't go into negative. But once it gets
(11:08):
the zero, that's it. And I trends to a certain
amount of money from my main account into that account
every week. So when I got around and pay stuff,
it's like you sometimes forget how much you're paid, but
you know that at the end of the week you
can only spend two hundred dollars on that account. Then
it goes and then it stops working.
Speaker 3 (11:24):
So it's like a spend control that you've.
Speaker 5 (11:27):
Yeah, that's what I do, so to put money into
the account, and then I know that you're going to
speaking the stuff around. You try and keep a track
of it. You know, if you get a little bit
carried away or spend too much. There is a limit
that you're going to only be able to spin and
thendle to stop. So it's all the way I sort
of use it to say, well, to keep tracking my
money anyway.
Speaker 3 (11:42):
Yeah, you're protecting you're protecting yourself from yourself. I tried
that trick recently with my two degrees up and we
went on a trip. Man, make kids with me on
the roaming and so they can't. You if you set
your spend control limit on these apps to zero, then
you can't get any of the roaming charges to just
get no access. So it's that's a great idea to
just sort of limit yourself from getting into too much.
Speaker 2 (12:04):
Did you actually keep a track of every transaction Craig,
or did you just suddenly it would you just have
a payment when it would bounce and you'd be like oh.
Speaker 5 (12:12):
Oops, yeah yeah to bounce and you go okay, but
then you just put out your other credit card pay
from that anyway, but you need you then you know
you reach your limit.
Speaker 2 (12:23):
Okay. So it wasn't. It wasn't the end of life
as we know it when you bound. It just got
to the stage.
Speaker 5 (12:28):
Where yeah, other rush was if someone wants to steal
your wallet. With your payWave card in there, then you
know that the Maxima's going to be able to get
out of there. Is that rather than not going to
get out to get too carried away? But yeah, I
just use it. But every Friday night, I don't normally
sit down with fish and chips or a burger or whatever,
(12:49):
which is probably unhealthy. Compet into your previous guests and
just go through my records and go, oh, yep, but
yep I paid that much. Yep, that's right, and it's
just he need to go through it. Just put into
spreadsheet over the weekend in this case, so you never
look at it sometimes and go, oh, speaking way too much.
Did the takeaway place to cut that down?
Speaker 2 (13:05):
So yeah, because there are some some of the banks.
I think actually we've got a credit card with Westpac,
and I think that there is something where they can
it will show how much you're spending on different types
of spends.
Speaker 3 (13:17):
Yeah, it's got cash cash now, that's.
Speaker 2 (13:19):
Right, and it was you know what, I just stopped
looking at it.
Speaker 3 (13:22):
That's a good thing. But I've got a question for
a coloda, like so you obviously got a little bit
more disciplined Craig. But because you're aware of your spending
and you're checking it, so where would you say that habit?
Is that something that you know you're kind of self
tired or did you get some parental guidance on being
you know, aware of.
Speaker 5 (13:43):
I was just looking at my account one day when
I was probably twenty five twenty seven and had about
thirty green in my account and going hmmm, where can
I use this more wisely rather than because all my
friends all go out and get beers and buy cars
and spend money on the cars doing that and then
sell it for a lesson they pay for the car,
And I'm looking at that game, well, I probably need
(14:06):
to save it from a future. That was before the
kV say they kicked in. But then I was looking
on the big scheme of things that when you do
get paid, you're super from the government. You pay text
through your entire life you get Super, and when you
get Super they text you're on a super so you're
kind of getting text twice. And I was looking at
going well, yeah, I probably need to look after myself really,
(14:26):
because it doesn't it's a little worried more along the
lines it down the track. I don't believe the government's
already going to look after me too.
Speaker 2 (14:32):
Well, well, I think that's the motivator for a lot
of people in their savings. Yeah, and we've been given
that message anyway that super is fine, but it's not
going to be enough.
Speaker 3 (14:41):
Well, that's interesting. So the age of enlightenment for you
was around twenty seven where you started to pay.
Speaker 2 (14:46):
That's pretty good.
Speaker 3 (14:47):
That's pretty that's quite young earlier.
Speaker 4 (14:49):
Yeah.
Speaker 2 (14:51):
Yeah.
Speaker 5 (14:51):
And one of my friends went over to work for
Dubo for a couple of years, about five six years,
came back to Auckland and was looking at buying a
house random and when he was about thirty thirty two
and bought a house and then the real estate people
are like, what company can be using for your mortgage?
And he goes on paying cash and they couldn't believe
the head too and save Yeah.
Speaker 2 (15:11):
Wow, wow, good thanks Craig. By the way, Craig, sorry,
are you the tax cut? Does it make a difference?
Where is yours going on?
Speaker 5 (15:22):
I think I've talked to you before. I'm on the
one that's got the vision problem. In the moment, someone's
sickness benefits really make any difference. From me at all.
Speaker 2 (15:29):
Oh, okay, so you're not you're getting You're in the
sort of two dollars fifty a week basket sort of thing.
Speaker 5 (15:33):
Are you something like that? But I think I'm worried
about it? Is down the trick of things get really
pear shaped. Will it be that I won't get Super
until I get through my keys favor or something?
Speaker 4 (15:43):
I don't know?
Speaker 2 (15:44):
Yeah, look, I mean, don't rule it out, I guess,
but I think you're right to be cautious about it
because it gives you a more prudent approach to you.
Speaker 3 (15:54):
Most financial advisors will tell you just treat Super as
sort of a bonus, but count on your other private
savings and anything else out of that is a sure
thing that you know you can rely on.
Speaker 2 (16:05):
But by the way, am I talking about that the
flat I lived in Dunedan all those years ago as
turned into a game of I don't know if you
know the mighty python skitch luxury. It's like we used
to live in pepper bag and septic tunk, you know,
when the Four Yorkshimen try and outdo themselves. And somebody said,
somebody's texted me saying, I almost feel like I need
to put a Yorkshire accent on there, saying I lived
(16:26):
in a four person flat and uni where the toilet
would drain and shower every few weeks. I paid three
hundred and twenty dollars a week.
Speaker 3 (16:34):
Oh my goodness.
Speaker 2 (16:35):
Yeah, that's flash, isn't it. We had an outside toilet
in the middle of Dunedin and winter. You had to
go outside. You had to get out of bed, go
out the back door, walk around to the outside toilet
in zero degrees to go to the loo in the
middle of the night. That's why it's pain next tonight.
Speaker 3 (16:54):
I'm not sure it's changed so much to judging from
the stories I hear from my son who's freezing as
our soft down there is still.
Speaker 2 (17:01):
Actually the funny thing is about finding a flat. Back
in those days, it was never about it's go and
look at this flat or this flat. It's like, has
someone got a room you're in? You just take whatever
room it is, and if it happens to be a
sort of you know, a medieval dungeon, then that's just
the like of the drawer.
Speaker 3 (17:17):
So pray a badge of honor, I think down there.
Speaker 2 (17:19):
Anyway to drag the conversation back to where we're at.
We're going to take a break. But the tax braks,
where are you spending yours? Will you notice yours? And
actually if you won't notice it, why is that? Is
that your fault because you're just handing over the plastic
every time you spend your money? Or is it because
of some other reason? Get us a call? I wait,
one hundred and eighty ten eighty, it's twenty four past
(17:40):
five news talk sai'd be welcome back to the week
(18:04):
and collect it. There's a money. My name is Tim Beverage.
My guest is a Mana Morale. She's a financial author,
commentator and guru. Can I call your guru? I think
I can. It's a big call, isn't it. You probably
don't like weds like it, but it ties on with
the yoga thing.
Speaker 3 (18:17):
Well I'll take it like that. I'm flattered, so you
know I'm not gonna say no. But before I forget,
can I just add that there is a great for
those who are curious this about how much they're going
to get on the text. The text guy savings there.
There was a very good piece in The Herald not
too long ago July thirty first by Jamie Lythe but
(18:38):
I've also posted that on my Facebook page, Manda Morrel. Yeah,
so somebody can if you're curious to see, just jump online.
Speaker 2 (18:45):
What's it about it?
Speaker 3 (18:47):
Just they've got it basically breaks down all the thresholds
how the personal income tax thresholds are changing to get
you this twenty bucks a week on average. But it
has a little nifty calculator where you can go in
and into your weekly income and I'll spit out with
your approximate savings. So that might be helpful for those
of you are wondering. You know, then you can take
note of it now that you're listening to this conversation
(19:08):
and have some serious sight about Okay, what am I
going to do with eighty bucks a month?
Speaker 2 (19:11):
Amanda Morale dot com. That's Amanda. By the way, I've
mentioned your name so often, I don't think I've stopped
to spell it. I'm sure if people googled you and
misspelled it would still find you. But it's Amanda as
you'd spell Amanda M double R A double L dot com.
Speaker 3 (19:25):
Thank you for that shout out, yes, so that I'll
put that up on my blog, but again so on
my Facebook page or if you google it or go
to the inline revenue. I'm sure they'll be able to
find their way to the calculator that will give the
approximate savings. So yeah, just sid I mentioned that before
people forget and move on to next week's.
Speaker 2 (19:43):
And the question we asked before the break was how
are you spending your tax cut? But actually would you
notice from the way you manage your money, Because if
you're just handing out a plastic every day, you know, bing,
or you're basically waking up your phone and doing the payWave,
do you actually keep track of your spending so you
actually do notice the difference from that tax cut? O
eight one hundred eighty ten to eighty right, Peter, Hello Peter,
(20:05):
Hello Peter.
Speaker 4 (20:07):
Yeah, yep, yep. Sorry, the money in the bank, you know,
and you know a few hundred thoulsum, I'm mortgage free. Basically,
just wanting in the moment, any suggest thoughts. I know
you can't give specific advice.
Speaker 2 (20:24):
You've listened to this show before, Peter, obviously, good on
you what to do with it? You've got a bit
of extra cash.
Speaker 6 (20:29):
Basically, yeah, I was thinking maybe I don't think Hewson
was worth investing in the moment, I was wondering what
thoughts are just putting away in say a and zer
or something or wet pap or something.
Speaker 2 (20:43):
In terms of what sort of bank, what sort of
institutional investment can you make?
Speaker 4 (20:47):
M do you not? Yep?
Speaker 3 (20:50):
Oh, so I was just going to ask you if
you had any dependence at all.
Speaker 4 (20:56):
I'm Mary, but my bath my kids are over twenty,
but you know are still dependent.
Speaker 3 (21:00):
Okay, well when sorry, this may not apply to you,
but I guess maybe for any parent who you know
finds that this is sort of additional money for them,
and you know, they've got a kid over eighteen who's
in kvsavers, not contributing that twenty dollars a week would
ensure is an example that they qualify for the government
contribution annually and that'll get them if they, you know,
(21:23):
get to one thy forty three, which is roughly twenty
bucks a week, that'll get them another five hundred and
twenty one bucks. So that's a good, in my mind,
a good use of your money if you've got discretionary
income in terms of specific products. Can't recommend that, but
you know you could equally do the same to your
kiwisaver or if you've most KIV savers have parallel products
(21:46):
now as well, they're just not locked in, so it's
a separate investment fund that you could set up as well.
Speaker 2 (21:52):
How long have you had the money sort of sitting
there with you going what do I do with it? It's
a oh only awake okay, okay, okay, did you get
the numbers FI lotto or something? Okay? Well, actually that's
a common I mean because for most people, if with
the distaste for my parents, that went pretty much straddling
(22:14):
the mortgage apart from a trip to parents.
Speaker 3 (22:15):
Yeah, a lot of people will be well, I'm sure
if you ask that question at your bank, will liquordy
split enroll you in one of their own products. So
take your time with with researching some of the choices
out there, and there are a lot of choices. Just
be able to where what you're.
Speaker 4 (22:30):
Paying for Just one more question, what's what's the banks
balls up? What's the what's the government guarantee? How much
is that?
Speaker 2 (22:41):
Are you?
Speaker 4 (22:42):
Are you?
Speaker 2 (22:42):
Are you there? So you've come in some money and
you're actually nervous of just putting it into the bank,
even because.
Speaker 4 (22:49):
You know there's a bank run what's the government guarantee?
Do you know?
Speaker 3 (22:54):
Yeah, I think it used to be on a particular product,
like a t D up to one hundred and fifty thousand,
but I don't don't hold your breath on that one.
But I went with most banks. If you're really concerned
about this, check the credit rating of the particular bank,
and the credit rating of those institutions is supposed to
be indicative of their financial strength, that is, their ability
(23:15):
to withstand a big, you know, pressure pressure point. So
that's something you.
Speaker 2 (23:20):
May is that in the vacuum. Look, I can understand
that if you count the money, I think.
Speaker 4 (23:26):
Mons or something. All right, Well.
Speaker 3 (23:30):
Right, yeah, Standards and Porter took a bit of criticism
for over the GFC that they had rated some of
these institutions. But in any event, it sounds like you
want to take a conservative approach. So the TD rates
right now, if you're that conservative you want depends you
on your a, your goals, and when you need access
to that cash. So if it's something that you just
(23:51):
want to lock up and leave for you know, ten
or fifteen years, you might be looking to go a
little bit more.
Speaker 2 (23:56):
Actually, Peter, I can actually refer this is not specific
financial advice, but we have discussed the once on one
of the hours we did with the asset management people.
There's quite there's probably on our podcast a couple of
appearances go from them where they're discussing the bond they're
discussing the bond markets, but as part of that conversation
it is it is an hour we spent when we're
(24:18):
talking about putting your money in something that's not so
high maintenance and risky and just where the bond markets
are at. So it's not not advice from me, but
it's a useful hour to listen to on the podcast.
Speaker 3 (24:31):
Thanks for your.
Speaker 2 (24:32):
Car, Yeah yeah, but I mean you can't really give
any reckons on this stuff, can you, But it's it does.
The other thing it reminds me of, though, is to
check those credit ratings out. I think interest dot cod
at in z is one website you can check out
for credit.
Speaker 3 (24:45):
Right interesting and if Peter's still listening, is an excellent
resource because it will give you the comparative rates for
you know, over fifty thousand, under ten over you know,
by all the different institutions, and plus that will review
all their credit ratings, so it gives you all those
options in comparisons. The other one that people are likely
(25:05):
to go to is smart Investor, which is run by
sortid and it does a really excellent comparison of all
the different financial outfits out there by product, and now
you can look at their historical returns. So those are
some considerations you'd want to look at what would have
been their historical returns, look at your time frame for
investing that that money, and also what you're paying that
(25:27):
institute to invest the money for you, and that's that
adds up as well. So be be mindful of the
fees you're paying, whether it's a financial advisor, how they're paid,
or if you're investing in yourself, what you're going to
be paying on it, in your tax rate, et cetera,
whether it's an apply all those kind of compositions, Yeah,
would to reduce your tax rate. I'm not sure Peter's
(25:47):
still working, but you know that's a more tax efficient
vehicle anyhow, Peter, there's heaps of information between sortied interest,
Dot called Google.
Speaker 2 (25:55):
You'll find some answers. As you were talking to Amanda,
and you probably were noticing, I had a slight smile
on my faces because you're with your Canadian accent when
you said you can get informational on on intrat dot co.
And when you said Sorted, I thought you said you
can find some good information on Sorted.
Speaker 3 (26:13):
So apologized to the good people at Sorted. I realized
what you said, but my enunciation it was.
Speaker 2 (26:21):
Just it was just my brain works on one hundred
miles an hour, And for for about two seconds, I thought,
what is sorted as a website? Is that some new money?
Because money is so filth, Because money is so filthy,
it would be a good name for a money website,
wouldn't it be Filthy Luca dot com or something.
Speaker 3 (26:38):
That's the name of a very good book, by the.
Speaker 2 (26:39):
Way, Filthy Luca excellent. I just digressed with the t sorted.
Speaker 3 (26:46):
Or by excellent resources. You can do a personalized retirement
planner which gives you some projections, and you can throw
in inflation and value. But you can di y most
of these things, So people should take advantage of these
these resources.
Speaker 2 (27:01):
I haven't seen Sorted advertising advertised as much like that
you you'd see advertised advertisements. Gosh, I can't even speak
properly all the time for it, but.
Speaker 3 (27:11):
I agree they kind of sort of fell off the
reader a little bit. They well, because they've got the
Retirement Commission and it's got a long terra and in
which I can't recall at the moment. And then there's
the FAA who's kind of stepped into that space of
providing financial education. So there's a few competing players in there,
which maybe is sort of turned down the volume on sorted,
but it is still there and has many many great
(27:33):
tools and guides for people.
Speaker 2 (27:36):
Another one here, just before we go to the break.
Best app I think I've found getting an overview of
personal finance, finance habits and come spending and investments, et cetera,
was called pocket money dot Com. I believe this person's
sort of half a half on the text, but then says,
absolutely brilliant. App puts the likes of the B and
z ones to shame, automatically categorizers you're spending into various
categories and set up alerts on each category. Yeah, okay,
(28:01):
he may.
Speaker 3 (28:02):
Or she may be come using that with pocketsmith too,
because pocket Smith's been in that space for some time
as well, and they provide a free product and they
also have a premium product, and it basically as he's
or she is saying is categorized as you're spending, and
that's a very reputable app that's been in the market
for some time.
Speaker 2 (28:20):
Okay, well, just while we're on that, I would have
an inherent suspicion of anything that is not an app
that belongs to the bank come with, because you surely
would have to give permission for this particular app to
you do too, and I don't that makes me nervous.
Speaker 3 (28:36):
Well, that's the direction we're moving with open banking, where
they'll be if by permission, you'll be able to kind
of import this and export that and centralize. I think
it'll actually be quite a powerful.
Speaker 2 (28:47):
As so long as that's not owned by CrowdStrike.
Speaker 3 (28:49):
No, every I obviously do your research first, and you know,
but yeah, I get that people are being probably more
readily trust their bank, even though they should be skeptical bank.
But I get it. You have to be careful these days,
very careful.
Speaker 2 (29:05):
Yeah, okay, right, we'll be back in just a moment.
It's so twenty two minutes to six news Talk said,
B got news.
Speaker 7 (29:17):
I gotta bee, so I'm gonna work, don't work every day,
I got mouth, I got fee.
Speaker 2 (29:26):
So I'm gonna make shore. Everybody is I got Bill.
Speaker 7 (29:31):
Parley's built barnumb my dust day looking like a mouth atly.
Little kids run around like a hear this coma's crowd.
There's a full moon out and my cals your house says.
Speaker 2 (29:43):
It gonna leave me and Pa come home with news talk,
said b This is the weekend collective Smart Money. My
guest is Amanda Morale, a financial commentator and writer and guru.
As I like to say, I've got quite a few
texts here. But actually before we get onto the Amanda,
there was an interesting question that came up while we
were chatting just now and our film caller Craig asked
(30:04):
about safety of banks, and it does time to the
question where people should be interested in this. How safe
is your key? We saber providers. Are there times when
you should stop and tech stock and think how are
they doing and all that? But how safe is the
money and key?
Speaker 3 (30:20):
We saber? Well, most people well, I don't know if
they do know or not, but in any event, it's
one of the most highly regulated products in the market
because the government helped to introduce this. So you don't
the fund manager doesn't own your money per se. They're
all governed by a supervisor who so that who has
(30:41):
custody of your money. So they are in terms of
financial products out there, they're among the safest you're going
to find. So, but you know, it's interesting. You had
this perception that you know, the bank is best kind
of thing.
Speaker 2 (30:56):
And in my mind, I do I think that, Yeah.
Speaker 3 (30:58):
I think as you have a relationship with the bank,
and again there's this the banks too big to fail
kind of perception. I mean, there's there's been a tiede
turn against banks more recently. But it's easy. It's an
easy choice when you already have a pre existing relationship
with your bank, and they they exploit that. They capitalized
that for sure. I and my blog this past week
(31:21):
wrote about how my son ended up accidentally switching his
key receiver provided to the bank because he happened to
be there discussing accident. Yeah, yeah, I'm like, how does
that happen? But he wasn't paying attention. I don't think,
but I want to switch just sign The conversation was
raised and he was getting I don't know, a new
(31:42):
debit credit card thing, and before he knew it, he
said he didn't want to miss a ferry and he
said he signed something and he'd switched. So I was
a bit shocked and horrified because you know, I'm like,
what happened there? But ostensibly he's he said, well, I
the guy asked me what my balance was and would
I like to see it in one place? And I
(32:02):
get that that's convenient. You were saying you got to
give permissions, right, So currently one of the biggest what's
a downside to say to being with keepers of everybody
that's not your bank?
Speaker 7 (32:11):
Is it?
Speaker 3 (32:11):
It's somewhere separate and you got to log in and
jack and get the app or or whatever. So for
people who like to see everything, I get that that,
you know, it's it's a little less convenient. It's not
a reason to switch, but it was happening.
Speaker 2 (32:23):
Is the question that they specifically asked which led to
them switching it was would you like to see your
money all in one place? Yeah? I would, yeah, done, yeah, yeah,
And I think it was a bit.
Speaker 3 (32:33):
I can't it is. I was quite irate about the
whole thing, but you know, I probably got half the
conversation from my kid, who was thinking about the next thing.
Speaker 2 (32:41):
So yeah, anyhow, I think a little banking on Bosman
sort of.
Speaker 3 (32:46):
Yes, I know, because the banks got slapped for some
some of these kind of aggressive behaviors when they banking
tellers were incentivized to solid products and get people enrolled,
so they're supposed to be quite careful. And I'm not
saying this person wasn't, because I wasn't there to hear
the conversation, but I was a little bit surprised it
happened so easily. So do your homework. You know, there
(33:06):
are there's some really good kiwisaver providers out there quite often. Again,
I would advise people to check the fees that they're
paying and the performance. All that good stuff you can
find out on a sorted with the tehutter. Did is
it yet we're morning Star?
Speaker 4 (33:21):
Yes.
Speaker 2 (33:22):
Actually there's a silver lining to that story too, that
it is easy to change your kiwisaver. I mean too easy,
possibly in the incident you've just recounted, And again we
don't have all the facts and we're not naming the
bank and everything, but obviously it's it's quite easy.
Speaker 3 (33:38):
It's incredibly easy. You know, it's literally a couple of
minutes to switch, and you can do it all online. Now,
which was never the case before twenty sixteen. You hear
you stuff to like go to Justice is a piece
print out forums, get us in that sign, trot around town.
Nobody had the timer could be bothered to do that.
So now you know, somebody upsets you with your keyvsaver,
(34:01):
you can switch. You don't like something, it's out of
alignment with your values, or you think their performance is
just terrible. Over a long period of time, you're going
to go, you can you find you simply go to
the one that you would like to you down, you know,
you fill out their forms online and it gets the
switch gets triggered through the ird and it does happen
very very quickly. In this case with my son, I said,
(34:22):
let's phone this person back and get them to you know,
bend the paperwork. But at that stage, and it was
probably an hour after you've done this, it had already
gone through. Wow, it's that fast.
Speaker 2 (34:33):
Well, okay, silver lining it's easy to do. Maybe let's
not say too easy. We don't want to slow things down,
but yeah.
Speaker 3 (34:41):
You want to do interesting as you want to do
your research before you start moving, whether it's investing two
hundred thousand dollars or moving your kiwisaver that's got twenty thousand.
You want to know and be confident that you're moving
it to trusted hands.
Speaker 2 (34:54):
Which actually, while we're on that, Oh, by the way,
I'm just there's a text on the textcut thing, because
go back to textcuts. No's but textcut stuff and all.
This person says, I use it to my local cafe
and local butcher shop, keep the local village afloat. Every
little bit counts and it all adds up. Since become
the dollars save spend share, says Mark, that's a nice
(35:15):
altruistic I.
Speaker 3 (35:16):
Agree with you, Mark. I think if you're not carrying
you know, credit card, dad or other things monkeys on
your back and you can afford to There's a lot
of restaurants and cafes hurting out there. My local says
business is terrible, and I agree. I would like to
do that too, to support them where possible. It's not
a lot of money, but you know, it adds up
(35:37):
for as accumulative for the entrepreneurs out there.
Speaker 2 (35:41):
I think that we've unfortunately we don't have a lot
of time to explore this. We might actually do a
whole save this for another time. But let's let's just
scratch the surface a bit, because you know, we're talking
about doing your research on kiwisaver. And of course the
expression that always pops up in my head is past
performance is no indicator of future performance. And that's really
(36:03):
Isn't that all we've got to go on? How do
you any are there any brief comments you could make
which would help people who want to research who is
a better kei we saber provider because they might have
been great last year, maybe they're about to have a
terrible year.
Speaker 3 (36:17):
Do you Yeah, you know that's so sort of a
golden rule, and you hear it uttered a lot, and
I think that is meant to sort of be a
cautionary tale to people who, you know, somebody might have
got lucky when you're the fund manager chose the right stocks,
like Tesla when it was off the charts, But seldom
is that say it was a double digit return in
a single year. You can't. What they're saying is you
(36:39):
shouldn't hold on to that as it being replicable over
the years going forward. So what they do suggest a
morning star is to look for a track record. Track record.
Now we're seeing in kyp saver because it's been around
for so long, so you know, over seven years you
can start to see were there returns from year to year.
(37:00):
Let's set aside COVID for a minute, jumping around dramatically
or just sort of tecking along in an ace upwarding
cline with their regular contributions and not doing anything too
crazy that you can feel like there's some steadiness to it.
And I think that's sort of the message there, that
you want some sort of reliability and proof that you
(37:21):
know it's not erratic sort of situation.
Speaker 2 (37:24):
Yeah, because I imagine the bulk of people shovel in
ki saber. You know, they get the employer contributions and
they just sort of sit and forget. Do we have
any data on how many people actually look.
Speaker 3 (37:37):
At with their default providers? That there's been in the
last few years has been a big push by people
like them FMA and MB and QS wereposed to get
people checking so they're not complacent, so that they can
be a bit more informed about who they're with. Because
in the early days of kiis, even if you didn't
active leeches, you were put into a default provider. In
(37:58):
the early days, there was about seven of them and
then they get spun out like a lottery system. But
who got them money? And I'll talk to people today
who like, I don't know who.
Speaker 1 (38:07):
I'm with, that's you.
Speaker 3 (38:09):
There's an easy way to find out. You just call
up the IRD or if you've got to log in
for my IR, it will be recorded on that. So
it's a starting point if you don't know who you're with.
But more people are getting actively interested.
Speaker 2 (38:21):
So I've got to own up because I just went
with the one with my bank, and actually it happens
to be one of the banks that seems to do
all right. I have kept a little bit of an
on it, and I thought, actually that's not bad. Okay,
you're doing all right. I will leave it there for
the time being.
Speaker 3 (38:34):
But if you want to do some comparisons out there there,
and again there's some great resources. Morning Star does a
huge comparison across peer sectors, and you can look at
the track record and you know you don't want to
be comparing a growth fund to a conservative or a
default fund, for example. You want to be comparing like
for like. So just make sure that if you're sifting
(38:54):
through that data that you're looking for the right things.
Or a fair comparison.
Speaker 2 (38:59):
Good stuff, great advice. We'll be back in just a moment.
I'm with Amanda Morales is smart money. It is not
minutes to six News Talks B and welcome back to
(39:29):
smart Money on the weekend collective with the Mounta Morale. Look,
we don't have much time left, Amanda, because time flies
when you're having fun. But I just sort of share
this nice little story here about young people getting ahead. Hi,
Tim and Amanda. I'm proud of my son, aged twenty eight.
He saved up two hundred thousand and is now ready
to buy a first time albeit he moved to OZ
two years ago and his generous grandma probably contributed about
(39:50):
a third of it over the years. But he saved,
he never blew it and has worked for five years.
He's conscious that he wants to live and have a
good life, which he's trying to do. However, even with
that big deposit, he can still only buy an entry
level at home, and it's pretty tough to find mine.
Always enjoy your segment. Thank you from Helen. He's still
doing pretty well. I think this young man, isn't he?
Speaker 3 (40:08):
I would be very proud of him too, Helen that's awesome,
and he'll be miles ahead of some of his paris
I agree house process are painfully high. But he's in
a good, good place and importantly he's got the discipline clearly,
you know, he had a little bit of help, but
he has the discipline, which I'll put him in a
good place for you know, all the years ahead where
he's making and meeting mortgage payments, fast tracking it and
(40:31):
making other goals happen. So that's a great story. Thank
you for sharing it.
Speaker 2 (40:34):
Yeah, because plenty of people have help, but they you
know a lot of people also blow it. So having
the discipline at that age to stick with.
Speaker 3 (40:43):
It, yep, doing the right thing. Yeah, not even thirty.
Speaker 2 (40:46):
It's great, good stuff. Hey, Amanda, thank you so much
for joining us. Time Flies. We must save that key
we saber talk about, you know, really how to dig
into the performance of your key We saber for another
time as well.
Speaker 3 (40:55):
I think they'd be love to Chad about Kiev Siver.
I know you do.
Speaker 2 (40:59):
Amandamarle dot com. If you want to check out any
of Amanda's work and some of the comments that she
makes and her blog, you can go to Amandamarrale dot
com thanks to my producer Tyra Roberts. Thanks Tyra, a
great job and we'll look forward to you company same
time next weekend up next at Sunday at six and
of course you can keep tuned to gold Sport for
(41:21):
the commentaries on all goings on in the Olympics. Have
a great evening.
Speaker 1 (41:32):
For more from the Weekend Collective, listen live to News
Talk SEDB weekends from three pm or follow the podcast
on iHeartRadio.
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