January 19, 2025 • 41 mins
With the cost of living relentlessly increasing year by year, Amanda Morrall joins Roman Travers to discuss how you can set yourself up for success in 2025, and how to boost your income outside of your base salary.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:17):
She didn't around, come on, Happylara now.
Speaker 3 (00:35):
Used Talks. There be Welcome Backett's the Weekend Collective, Roman
Travers and for Tim Beveridge and this is smart Money
this hour. Amanda Morrell, Happy New Year. I'm not even
sure do we still say that. Yeah, there's you, Mike
switch that Happy new Year exactly. Well, I haven't seen
you for a while.
Speaker 4 (00:49):
I think it's been a year, so it is a
new year.
Speaker 3 (00:52):
Wow, has it been that long?
Speaker 4 (00:53):
I think so.
Speaker 3 (00:54):
Now, for those that don't know your dulcet tones of
we go, I know, well, who was she? She's Amanda
Morrel and she's a personal finance coach, not actual advice.
So how would you put this in?
Speaker 5 (01:05):
Yeah?
Speaker 4 (01:06):
I just have to. You know, people are alexcited and
think they can get free financial advice and non aros
financial advisor. Please sect a paid financial advisor or an
authrosiman if you need. I'm just here to share information
and knowledge with people so they can feel a bit
more confident exactly about their finances.
Speaker 3 (01:21):
It's about this. It's likely we're about to watch a really, really,
really bad movie. Please children, get your parents' permission first,
that kind of thing exactly. So we're into a brand
new year and a lot of people, well, look who
doesn't want to have no debt? Who wants who doesn't
want to be more successful financially? And for those of
us that sit back and go, wow, look at those
people making millions on TikTok for example, Well they count
(01:45):
anymore in the US. But for that stuff that looks
too easy, and then some people make it look incredibly easy.
Why do some people have that knack for making money?
Speaker 4 (01:54):
I think the illusion that making money is easy is
just sad. It's an illusion and reality, the vast majority
of very wealthy people have made there are money, quite
honestly off the back of some good planning and hard work.
So I think that's you know, one thing to you know,
stay upfront. I imagine you know, you mentioned TikTok that
(02:15):
a lot of younger people might think, you know, I'm
going to become an influencer and make a million bucks
next year. And whilst I was we were saying maybe
point zero zero zero zero one percent of those people
have the vast majority of people don't, So you know,
and just like relying on a lottery wind is not
a good plan for enriching yourself. It's you know, bring
(02:35):
it back to basis. Look at your own skills and
talents and what are you passionate about, and plot a
plot a plan to go forward.
Speaker 3 (02:45):
Yeah, well, I'm just going to refer back to in
the first hour, we were talking about the Taxpayer Union's cure,
your poll and the biggest concern for a lot of people.
In fact, they were given a range of things to
talk about and you can see I'm flicking through each
oil there. It's a huge part of pay We've killed
three trees white printing this. The biggest concern is the
cost of living. So we don't live in a society
(03:05):
where a lot of people have endless amounts of money going, oh,
how should I invest that? But even when you don't
have much, are you better to do something with a
little you have? And where should you shove that? What's
the best thing to do?
Speaker 2 (03:17):
Well?
Speaker 4 (03:17):
First thing I would say is that everybody's circumstances are
really unique, right, So what you know is discretionary excessive
for some people might be like not really discretionary at
all for another person, for example, a student or you know,
or a fresh grad who's now having to pay off
student debt, or you know, somebody has just paid off
the mortgage and then they've got you know, some serious
(03:38):
if they're still working discretionary and then what do they
do for it? So it's sort of a stages and
ages scenario and for that I can't say enough good
things about sorted dot org dot nz because it does
go through the stages and ages of where people are at,
and you know, if you're completely overwhelmed, it does give
you great step by step guidance about what kind of
(03:59):
things you should tackle first. On you lest ie, say,
you know you're a fresh graduate and you've got to
pay back forty thousand dollars of debt. You know, whilst
it may be low interested, it still needs to be repaid.
So you know, these are some of the things you're
going to have to look up in tandem with also
trying to plan for your retirement and maybe setting aside
some money for a house one day, all those kind
(04:21):
of things. Right, So it really just depend on your
own unique situation and where you would like to go
as well, like what are your goals, how are you
going to get there? And reverse engineer. So again, it's
hard for me to say there's a magic bullet unless
I know, you know, kind of where you're at in
life at this'.
Speaker 3 (04:40):
That's a very good point and that's a good reason
to call eight hundred and eighty ten eighty if you've
got a question. Amanda Morele, a personal finance coach here
right through for the hour. So you did mention sorted
dot org, right.
Speaker 4 (04:53):
Yeah, yeah, it's wonderful. One thing I've been trying to
do because I've got kids that kids, I guess they're
young adults in their twenties, is to get them along,
you know, on their on way. And so I've been
doing some mentoring with you know, the one who at
least was listening and now because he's wanting to go
flooding and China, he's got one more year of UNI
(05:14):
and allocating what the student will will buy you and
how you you know, and there were some really again
some very instructive tools. He's more of a visual learner
because he's an artist, and you know, there's this is
a great income and expense UH spreadsheet you can fill
out and it's not like a boring Excel sheet. It's
you can add images and you know it's very very
accessible and friendly and you know, you just enter the numbers.
(05:37):
It couldn't be any easier in the different areas the categories,
and then you ask for the insights and I'll tell
you what your shortfault or you know your overflow will be.
So again, that's going to be a good indication for
you know, are you in a position to invest or? Oops?
Are you needing to make more money this year? Because
you're not going to make ends meet very much.
Speaker 3 (05:56):
So the reason I went back to sort it as
a topic is because I think a lot of us
know it's there, think oh yeah, why don't really need that?
How many people actually that, you know, apart from young
people maybe, how many people who think they know everything
about money actually go and do the simple stuff on salt?
Speaker 4 (06:12):
Not many, you know, including some people who are very
close to me who are real financial experts too. And
I'm like, hop on there, you know it is. It's
a free resource. You can set up a personalized plan
if you really want to kind of dive deep into
the kipsaver space oneday and see what you're projected. You know,
balance will be at a certain age or stage or
if you're in the right type of fund, it's got
resources for that, resources for retirement planning, resources to help
(06:36):
you set up a budget. So it covers all the
basics without it being really intimidating. I mean again, some
people will have more complex financial situations and maybe they
did get a massive you know, inheritance or a huge
payout or a divorce thing, and they will want to
have some more personalized professional advice, in which case may
be thinking about going to see a financial advisor is
(06:57):
a good thing, but there'll be a lot of people
out there, many listeners who can be well served by
just hopping on and doing these self guided tourism. There's
even a weight hundred number there for people who are
startkoho need some budgeting advice, and there's resources out there
that will you know, pay for that as well.
Speaker 3 (07:16):
It's free, all good stuff, so sorted dot or for
those that are Yeah, just going back to that, most
of us don't have a lot of money. We live
hand to mouth, which is why the cost of living
is the number one voting issue according to that Courier survey.
I just told you about if you do inherit huge money,
like if you've got one hundred grand tomorrow, and is
there any like I had that trepidation. I don't know
(07:38):
who you are. I'm not pointing at you. You're a
financial registered financial advisor. I'm going to put all my
trust in you. But we've all been bitten in the
past with stories of financial demise, with stuff disappearing or
things going wrong. What sort of confidence can you have
that your money's always going.
Speaker 4 (07:53):
And that's a good question because increasingly you're hearing very
tragic tales about scoums and people you know, getting advertised
a product that has very high end's rates and it's
you know, either completely delusional or a scam. So alongside scorta,
dot org, dot inz, another good website to a bookmark
(08:14):
would be the Financial Markets Authority, and it does have
some great resources there to guide you through how to
choose a financial advisor, what to look for in even
like some questions to ask whilst you're interviewing them. In
many cases you can get you know, a half hour
or an hour of their time for free while you're
(08:35):
kind of auditioning that individual, and they should, you know,
you should expect them to explain how they get paid.
And I guess back to your point about getting the windfall.
A lot of if you rock up to, you know,
a financial advisor who's associated with a particular funds management business,
you want to understand the payment model because in many
(08:55):
cases they may be getting what is in the industry
called a trail. So you invest your money via this
financial advisor financial advisor, how they'll get paid is through
a trail, and that's a tiny percentage or not so
tiny percentage on the money that you've invested, and so
that's their remuneration system from them. So these are the
kind of things you really want to understand very clearly,
(09:18):
and under the new regulations, we used to have almost
none about fifteen years ago, but they're very very stringent now,
and the financial advisors will have to tell you how
they are paid. And what I would say to a
lot of people because there's a lot of you know,
fancy language and jargon, and people get confused and then
they feel embarrassed asked the questions is there's no such thing.
(09:39):
We used to say this in journalism all the time
as a stupid question. So you'd be one hundred percent
sure in your own mind about what you're getting from them.
In return how they get paid. There are fee based
advisors at charge you on an hourly basis, and for
that you would expect there's more sort of neutral advice.
They're not going to put you into a product via,
(10:00):
for example, the bank that they are representing that kind
of thing.
Speaker 3 (10:03):
Yeah, okay, I like what you're saying because gives me
more confidence when I do win lotto, which will happen
at some point. It's got to happen, right, Oh, I
don't know. I am one of those people that thinks
it's exciting to get a lot of ticket and I
start planning everything ahead. What I have done since I've
met you, what I have done with my Kiwi Saver
is I've stopped kidding myself that I'm going to live
to one hundred and fifty and that because I started
(10:24):
it later in life. I've gone as hard as I can.
And I think you said to me. I'm pretty sure
it was you that said, go as hard as you can.
You're not going to notice that percentage of your income
being locked out. But once you've done it, you're doing
everything you can to do the best you can for yourself.
Speaker 4 (10:40):
Later on, Yeah, I guess I'm not sure if it
was mere. But I think you know, when you play
with some of these tools and there are someone sorted
where you can look at the difference between you know,
in k severy you can the minimums three percent and
you can pay right up to ten, or you can
make lumps some depositents if you get that fortune. But
(11:01):
it's good for you to see the difference over a
time those percentage points can make. But you know, with
you having said that, with cost of living is so
high rate, now you know what if some people are
have got themselves and they forgot about it that they're
paying ten percent of their salary into kiwisive and they
can afford to make ends meet and putting more on
(11:21):
the credit card and not being able to play it
off in full, well, then you may want to dial
that back. If you move your contributions to a higher rate,
you can always put them to a smaller rate. You
have to notify your you know, your payroll system. I
think IRD also made it possible to do contribution changes
through the portal there, And how that works is they'll
(11:43):
notify your provider and the provider notifies payroll or whatever,
and it kind of happens that way. But the most
direct way would be to talk to your employer and
get those readjusted. But but do those calculations so you
know that what you're contributing is you know, comfortable for you,
because you know there's no point in like paying higher
than you need to if you're maxing out the benefits
(12:04):
of key we sand wwhich cases getting the five hundred
and twenty one dollars a year from the government for free,
are you going to have any other additional benefit by
you know, over extending yourself if you've got credit card
debt or something like that that you can't get a
handle on.
Speaker 3 (12:18):
So I look at Tyra, my producer, her age, and
I'm not going to tell you her age, because well
I don't know it, but I know that I'm a
lot older than Tyra, right, So I wish And I've
got two girls. My oldest daughter's nearty thirty, my youngest
daughter's twenty six. So I just wish we'd had KEI
we saver back then. I wish, you know, I'd be
a multi millionaire by now if I'd had that financial
(12:39):
acumen back then to think ahead, because no one really
does when they're young until someone like you being a
mum of children who are clearly brainy and intelligent when
it comes to money, but most of us don't really
steer our children in that direction. You talk about clearing debt.
In the old days, it was clear your debt and
that's the way forward. That's my way of thinking as well.
Speaker 4 (12:58):
It's not all that difficult. But you know there's again
this is I'm working through these modules with my my
twenty one year old. There's a big difference between theory
and practice, and one of my kids has learned the
hard way and I think has really kind of gotten
on top of it. The other one is money and
money out many and I keep emphasizing that this is
(13:19):
not a sustainable strategy, particularly if you run out and
then you get a credit add It is so my
best advice to them, and the only thing that they've
seemed to have listened to is do not get a
credit card, because that's going to unless you are responsible
payer and full of your credit card, this is really
going to be a new surround your neck. So fortunately
they both have credit debit cards, which only allows them
(13:40):
to swim what's in their account. But there's still some
learnings there and that becomes that speaks to the behavior.
So there's a big behavioral reset that a lot of
people need to, you know, kind of force on themselves
or reflect on to get the outcomes that they would
like to see in their financial situations, which will kind
(14:01):
of bear fruit in other areas of your life too, because,
as you know, when you feel like you're under financial
threat or there's a lot of stress and pressure there,
it can affect everything, your personal relationships, your health.
Speaker 3 (14:11):
Absolutely, the whole shebang. Oh heck yes, stress level, constipation.
I've had it all through odd So I like that.
I like the two things you've mentioned. They're sorted dot
org and also the Financial Markets Authority, two good places
to start, as well as instigating someone like yourself. Amanda
Morel with us, a personal finance coach eight hundred eighty
ten eighty nine two ninety two to text Hi their
(14:32):
Amanda says the text, Up, we're putting extra into the
super and Keywi Saver, but I worry we should be
putting that extra off the mortgage first, which is more important?
Do you think cheers is duly Yeah, that's.
Speaker 4 (14:45):
A good question one that a lot of people ask
themselves as well. What I would suggest is if you
go another one to bookmarkers, Interest, dot co, dot NZA.
They've also got some rear payment calculators, and I think
sort of has got a similar one. But you can
do some scenario planning, like I don't know how much
longer they're have on their mortgage, but if you were
(15:07):
to increase your payments by X, how much is that
going to reduce the interest over the lifetime of that mortgage?
And you know when will venied position to be debt free,
And so it's kind of it's a personal decision based
on your overall financial situation, but it's really helpful to
do those. You don't need to have a calculator in
(15:29):
hand and figure out the formulas. You just add to
the numbers, do a little experimentation to see just how
much you are paying interest on the mortgage and how
much better off you be to fast track that mortgage.
A bear in mind that that depending on who your
mortgage is with, you can't sometimes penalized for repaying it
(15:50):
earlier and then you need to reset it. But so
some mortgages, depending on which bank you're with, are more
flexible than others. So you also need to understand the
decencies of your mortgage and when the reset period is.
But mortgages for the vast majority of it, or one
of the biggest items that we're going to be paying
off over time, you know that a million dollar pause
once you tick your factor and the principal interest over time,
(16:13):
you know it maybe two million dollars that you're paying off.
Speaker 3 (16:16):
Absolutely, So, just to be clear, because I don't know
that I maybe I wasn't listening properly then, but are
you better to focus on clearing the mortgage before you
start flitting around with chas ease and investing in rocket labe?
Speaker 4 (16:27):
It really depends, because you know my personal preferences, I
don't like owing money, so that's that's how I've chosen
to do things with my own finances. Is repay all
the debt once you're mortgage free, then reinvest. Having said that,
that may seem like a very long way off for
a lot of people, So there might be scope within
(16:48):
your budget to do both, depending on right so you
might be able to you know, fast track the mortgage
by repaying a little bit more. You know, you can
repay it on a weekly fortnightly, so that will make
a difference too. In terms of you know, from monthly
to fortnightly even you can check those differences on sort it.
But yeah, you might have scope within your budget to
(17:10):
also invest on the side. I mean, if you're planning
to go that route in your DIY investing, I would
just be dow. I'n sure that you know what you're
doing so that you're not blowing at right. So that's
why things like managed funds, there's parallel funds just like
Kiwi siver, but they're not locked in, are not a
bad thing for people to look at instead of trying
(17:30):
to choose shares that they think may or they might
do well if they're not have any expertise in these areas.
Speaker 6 (17:36):
I just want to jump in.
Speaker 3 (17:37):
I want to jump in there because you said, as
long as you know what you're doing, which of course
you know very well. Most of us have no idea.
Brian down the road, whose sister's Margaret's brother in law's
friend Albert said it was a good idea. Therefore it's
a good idea. So you are better off talking to
someone like yourself for financial advice, because there must be
some lemons that are clearly geese. You know, and you
(17:58):
invest in some barking duck and all of a sudden,
you're going But so and so said it was brilliant,
It was advertised beautifully. The voiceover was tremend Yeah.
Speaker 4 (18:05):
Well, yes, you have to, you know, buy or beware
kind of thing. But there is lots of places where
you can, you know, verify what it is you're investing
in the companies and do the research. But it is
quite time consuming. Like if you get a passion for that,
that's great, but if that's not your expertise. You're a
busy you know, householder and raising kids and trying to
(18:26):
manage everything. Ness, don't you know why add extra stress
onto your life by making yourself become a stock picker
in your spare time. You know, that's not particularly a
good strategy to create more stress by something that you're
wandering in the dark about. But you know, if you're
somebody with lots of time on their hands, you know
you're single, you love this stuff, you know you're comfortable
(18:48):
with everything and how it works and cap safer, then sure,
maybe you want to weigh in slowly and buy a
chare disease and you know, give it a bit of
a flirt, but you do need to understand the risks
that you're taking your time horizons for investing, and you
know your your your durations as well.
Speaker 3 (19:08):
Yeah, you go really good points and I've written all
those points down. Of course, sorted dot org is one,
Financial Markets Authority was the other, and Interest Stock Code
Audience good places to go and get some some key
points and then go and see a financial advisor as well,
because you know, whether it's huge money or a little
bit of money, no money can be afford to be lost,
can it. We all value the money.
Speaker 2 (19:28):
That we have.
Speaker 4 (19:29):
I would say among the people that I know who
are the wealthiest, they cherish their money and they watch
it very closely, right, and so it's no surprise that
they've ended up in the position that they're doing because
they're watching it really carefully. If you're not paying attention
to what's in your bank account, how much is going in,
how many subscriptions you have, your keypserver balances, all that stuff,
(19:52):
it tells me that you're just not focused on money.
And you know you get attention goes, I know exactly right,
energy goes where attention totally does.
Speaker 3 (20:03):
This is great and it's good chat. You want to
get involved I warmly encourage you to do so nine
two nine two to text. Best of all, though, to
call eight hundred and eighty ten eighty. It's a free
phone call. Amanda morele here a personal finance coach. All
sorts of yeah, just tips in the right direction, I
would say, is what we're going to get, and I'd
love to hear from you. Twenty six past five, twenty
nine past five.
Speaker 4 (20:23):
I love this.
Speaker 3 (20:23):
I love talking about money because it makes me feel
like I've got some. I actually don't, but i'd love
to have some more. Yeah, it's true. I'd love to
be I'd love some. I'd love to rob a bank electronically,
for example, and just top my accounts up. I just
loved the idea of having lots of money. You've got
to work hard for it, though, don't you.
Speaker 6 (20:40):
So I'm not going to rob a bank.
Speaker 3 (20:42):
I've thought about it when things have been tight. So
when people are thinking I don't have any money, I
do have calls to go to, but just very quickly
I don't have any money. Is it just worth investing
everything you've got, no matter how little you've got.
Speaker 4 (20:56):
No, No, I think you really do kind in ne
to take a deep brath and then look at your
overall position and valuate what it is exactly you have
where you want to go, what you know, hurdles you
need to kind of knock off, and then you know,
proceed forward cautiously. Yes, I think in a moment of
panic where you're thinking, I want to make a quick buck,
(21:16):
I'm and I put it all on crypto because Trump's
all keen on crypto for example, like is that the
right move or is that too risky for your you know,
your actual situation. Are you holding onto debt? Should you
be doing something with that? First? Again, and just proceed
slowly and cautiously. And again I would guide people disordered
for that because it does give you sort of steps
(21:38):
to go through, to work through, instead of thinking that
the cure all for everything that bothers you and keeps
you up at night is just putting it all in red.
Speaker 3 (21:47):
Yeah, you know what I mean exactly? Well, can I
just it's Sam? Can I Sam? How are you? Sam?
Speaker 2 (21:53):
Yeah?
Speaker 3 (21:54):
Good? Say are you a bit like me? Sam? And
that you hear all the stuff about crypto and all
these amazing investments and you go, oh that sounds great.
Then someone else says, oh no, it's not and you
get confused.
Speaker 7 (22:06):
I'm probably, yeah, looks pretty be careful with my approach
and pretty kill on some of those getting rich quick
sort of things. I've got a run entry who is
a different country who's done very well out of crypto.
But I know it can go the other way. So yeah,
I'm probably pretty conservative when it comes to and maybe
(22:28):
that's a good thing or.
Speaker 4 (22:28):
A bad and I don't know that's a good thing.
And by the way, you know, one of the world's
richest men out there, Warren Buffett, not a vague fan
of crypto. You can listen to his YouTube interviews. And
I'm not saying there haven't been individuals who've gotten very
wealthy of a crypto, but understand what you're getting into
and the risks and sounds like you're doing all that.
Speaker 7 (22:47):
Yeah, I suppose with our situation with our family, we
are a better stage where we still have productive mortgages,
you know, and house edits and other things, and you
still have a reasonably large mortgage that's manageable. But we're
sort of Yeah, I suppose we were like give one
that I want to, you know, secure our future, and
(23:08):
we always question weather putting the money into into principal
payments because we actually have quite a bit of flexibility
how much principle we pay off as is, you know,
a better return on our money put it into that
versus say, for instance, you know, setting up a shares
these account we're out for our kids. You know, like
if your mortgagees are long term average of you know,
(23:29):
six or seven percent, you know that's guaranteed return pain
off principle is it versus versus shares lease or something
that you're not quite known, but yeah, probably probably a
conservative approach because you could potentially get get ahead quicker
of a lump from doing that. But that's that's sort
of a dilemma, you know.
Speaker 4 (23:47):
I I had a former colleague who is quite a
well known financed person too, and his big mantors there's
no better return on your investment than paying off the
mortgage faster. And again it's personalized approach depending on what
your situation is, but it's one that I would concur
worst largely. Having said that, you know, I wouldn't say
it's all or nothing, and setting up accounts for your
(24:09):
children's future not a bad idea, doesn't mean you have
to see them with you know, two thousand dollars a month,
for example, you could start slow. One thing that I
did some time ago with my boys before they had jobs,
is started putting twenty dollars a week into their Kiwisaver
accounts to help give them a leg up. And I
was again with this young guy that i'd been mentoring,
showing him how much it's gained in three years, and
(24:31):
he was, you know, shocked because he's also started working
and seeing the effect of that. So you know, consider
whether you could start doing something on a modest note
with your kid's accounts to get them a bit of
a leg up, you know, whatever that is if they've
got Kiwisaver. And I would just mention if somebody asked
me this today about their son and they wanted to
(24:53):
make sure he's in his twenties and kind of stop working.
He's going to get the you know, the five hundred
and twenty one dollars from the government, so they wanted
to contribute into his account. So anybody's listening, you know, grandparents, parents,
other people want to get gift your kids something in
that area. Can do that via key we Save or
via some of these other funds. By the way, if
you set them.
Speaker 3 (25:13):
Up, good idea, Sam, if you did have, if you
were to invest, sorry, if you were to inherit a
whole bit of money tomorrow. Is there one particular aspect
of the of the market that you're looking at that
there's the future, whether it's whether it's pharmaceuticals or whether
it's rocket type stuff and futuristic stuff tech. What are
you interested in?
Speaker 7 (25:34):
Yeah? I probably haven't, don't what am I? I think
some of that tech and AI and the chips that
you build that stuff with as probably where things are going.
But I'm not I'm not an expert, and I think
the comedy before. You have to spend a lot of
time researching this and understanding. Yeah, I'd probably try to
find someone trusted and yeah helps get help, help me
(25:59):
and invest in it, invest in it?
Speaker 3 (26:01):
Okay. Yeah, it sounds like you're on the right track. Sam.
You mentioned Warren Buffet and then before that Donald Trump.
You get all these people, who I mean, Donald Trump's
got a sketchy record in business anyway, hasn't he there?
He is at the top of his game.
Speaker 4 (26:13):
He's been bankrupt several times. They could be taking Warren
Buffett's to financial advice over Trump's any day of the week.
Speaker 3 (26:19):
Yeah. But going back to the bitcoin discussion, I've literally
listened to every word there's an expert or listen, oh listen,
oh listen, Oh yes, that sounds brilliant, and then another
expert completely counts what they say, and you can see
why there is this confusion with what to invest in.
Speaker 4 (26:34):
You have to be confident within your own mind about
what you're doing. And so one thing you could do
if you you know, got this nagging feeling that you
want to get in there and you've got you know,
an extra hundred dollars to you know, flutter, just you know,
open up an account and buy a hundred bucks or
if you can, you know, it's not if your kids
aren't going to go without food or whatever as a
(26:54):
result of doing so. And you can watch and see
and you'll see how volatile it can be as well,
and then you can kind of weed in there carefully. Again,
there's a an age old saying in the investment space
that diversification is the best form of protection against risks
and volatility. So again, it's not putting it all on
(27:16):
red or crypto. It's spreading your assets or spreading your
money over a wide number of assets in different companies,
and anybody who's invested in kiwisaver largely will because.
Speaker 3 (27:27):
That's exactly what I've done. So I've gone as hard
as I can, I've gone as mental as anything. What's
the most risky portfolio? I've checked everything on red and
I've left it. The other thing I do with kiwisaver
is I never look at it right. I don't want
to see the fluctuations. Yeah, it's not going to change
anything for me. Is that ignorance?
Speaker 5 (27:44):
Now?
Speaker 4 (27:45):
Well, I kind of I don't think you should be
checking your balance every day, but I think it is
good to know like kind of where you're at, because
then again, you know, you can look back in a
year's time and see how you're tracking along. And so
one thing I started to do in the last couple
of years seemed to be the financial officer for the
whole family is just sort of like tracking everybody is
(28:06):
and so there's you know, an overall dashboard about where
things are at, and so they can also see, you know,
how things are progressing and growing. And same with your
children and your daughters. I assume they're in key we
Saver too, well, hopefully they're logging into their accounts periodically
because they can see what the production track is and
when they get those annual reports, they'll see how well
(28:26):
their funds did as well, and how much they paid
in fees and taxes and how much they're on track
to have at the magic age is sixty five.
Speaker 3 (28:33):
Do you know what though, Amanda, they're both in Australia
and their superannuation schemes is so much better over Yes,
I know.
Speaker 4 (28:39):
Well that's another topic, isn't it altogether? Yeah? It is.
Speaker 3 (28:42):
I like what you said before though. By the way,
O eight hundred and eighty ten eighty if you've got
commentary or questions for Amanda Morell, our personal finance coach
here on Smart Money the Weekend Collective. I like what
you said before because with Keiwi save it in general terms,
you can't touch it. So if you are of an
age where you're looking to give hundreds of thousands to
your grandchildren, whack it into their Kiwi saver and watch
(29:02):
that grow over the next thirty forty years for them, brilliant.
Speaker 4 (29:05):
I think it's a great legacy gift, you know, especially
if you're worried that you know, if you're going to
give you your eighten year old grand son some money
that they the blow at the races or you know,
on a car. We're not saying the car is a
bad decision, but it's going to appreciate.
Speaker 3 (29:21):
These Skyline straight away exactly what.
Speaker 4 (29:23):
Boys both love those cars. So but yeah, so you
lock it away and it's going to be there for
a first home deposit or for when they retire. And
I think, you know, every everybody can feel good about that.
You know, maybe not as exciting as a carpet.
Speaker 3 (29:38):
No, I understand that that's a great idea. I love
that idea. So any questions at all, do call O
we eight hundred eighty ten eighty. The text is nine
two nine two. This is the smart Money Out and
our guest Amanda, Amanda Morrel, a personal finance coach, would
love to see you in the right direction. Sounds good
to me. Oh, eight hundred eighty ten eighty. It is
twenty one to six.
Speaker 7 (29:58):
See the damn can want sand.
Speaker 1 (30:03):
Wheels, can't be emo.
Speaker 8 (30:06):
There this person the.
Speaker 3 (30:08):
Kids talks av It's the week in collective Roman Travis
here and our guess this how for smart money is
Amanda Morele a personal finance coach, and you can feel
free to call or text. Calling is best though. Eight
hundred and eighty ten eighty Michael, what's your question for Amanda?
Speaker 5 (30:24):
Hi, Amanda hiro Man. I just I'm currently working with
enabling me and Squirrel home loans. I'm going through the
process of doing pre approvals to buy a rental. I've
got one pre approval back and it's going to be
going to loan me four hundred and ninety five thousand
(30:47):
with no interests, with no interest.
Speaker 6 (30:51):
Free periods, no interest only period and I've got one
hundred and seventy five to put towards the house. I
currently live in a house that I don't have a mortgageohn.
But I'm wondering, am I just better off putting the
money in to my own home and bringing it up
to scratch, you know, bringing some double blading and stuff in,
or am I better off actually getting into a rental
(31:14):
when maybe stretching yourself a little bit?
Speaker 4 (31:18):
Okay, good question. I'm reminded that I can't give you
personalized advice, so we'll just cover some generalities here. But
but I guess I would expect that enable maybe showing
you what the rental. So you own your own property,
but you're thinking about boring money, but get a rental.
Is that correct?
Speaker 5 (31:33):
Yeah, yeah, yeah, So I.
Speaker 4 (31:34):
Assume that they've done the mouth for you do show
you what the rental yield would be on that.
Speaker 5 (31:40):
We haven't gone quite there by the system.
Speaker 4 (31:43):
Okay, Well, that's one hard question you need to ask
if or if you have if you can use some
of the tools out there to figure out what your
rental yield will be, because the yields are not that great,
particularly compared to the stock market these days. And I'm
not saying you should get money borrow money to invest
in the stock market, but and the stock markets are
(32:04):
quite hot, overheated at the moment. However, again, it all
comes down to so your personal choice. And you know,
I've lived in a few cold, drafty homes and the
zill myself over the years, and you know, I didn't
sleep all that well at eight there was a mold,
you know, in the closets and growing on my clothes
on a kision. So you know, having double glazing in
a house and proper ventilation and heating, et cetera makes
(32:27):
a hell of a difference through your overall health. And
wellbeing and adds value to your house if you do
decide to sell it down the track. So those are
kind of the opportunity costs, right, So if you're not
doing this, you could do this and again, if you
have extra money in the bank, you know you might
want to split the difference. That's another option is you know,
invest some of that money half of that money, and
you know, find out what your risk profile is and
(32:49):
then do some other enhancements to your house as well.
So you're doing you know, you're not just putting it
all on red again with a rental property, but you're
splitting the difference in investing the stock market and then
doing some upgrades to your home potentially.
Speaker 3 (33:02):
Cheers Michael, thank you. I hope that helps.
Speaker 4 (33:03):
Well.
Speaker 3 (33:03):
What about over over capitalizing, over investing in a property
and then expecting to get that money back.
Speaker 4 (33:09):
You know, Well, people love to talk about property in
New Zealand. But one thing I would say, and I
you know, have this conversation frequently because you know a
lot of people want to talk about property, is like,
our property value is going to continue to increase at
the level that they have been over the last twenty years.
You can see what's happening in property prices now? It
starts sort of you know, they're they're lifting in some areas,
(33:32):
and then they're sort of plateauing. But how can you
expect that property prices would continue to increase at the
rate they have and then there's people underneath there coming
into the market to buy them. You know, houses are
already out of reach for so many younger people these days.
So something that you have to kind of think about that,
you know, are you being unrealistic that you think you're whatever,
(33:55):
you know, million dollar house is going to be worth
three million dollars in the next whatever X number of years?
Speaker 3 (34:01):
You know, I mean to haven't people always say that
and they always go well.
Speaker 4 (34:06):
In New Zealand, you've kind of got an exceptional environment,
and that's to do with, you know, the lack of
capital gains tax et cetera. So New Zealand's in a
bit of a difficult in a in a unique position
from a lot of other economies around the world. Whether
capital gains might be introduced one day and whether that
could tip the equation, who knows. So I wouldn't break
(34:26):
that off, but I don't want to get into about
I'll get beat up out there.
Speaker 3 (34:31):
No New Zealand is lose it when you start talking
about capital gains text one of the last countries in
the OECD.
Speaker 2 (34:36):
To do that.
Speaker 3 (34:36):
Hi Janine, Oh Hi, how's it going? What's your question?
Speaker 8 (34:42):
Okay? My question is I have I worked in Australia
for ten years and got to your anuation when I
was there, and it's it's sitting over there sort of
gradually earning money. But I'm wondering if I should bring
it over to my QUI saver here, would it be
better in terms of I guess my going up versus
(35:07):
keeping it in Australia's which.
Speaker 4 (35:10):
Is yeah, very good question and one that comes up
quite a lot. So under the trans tasm Portability Agreement
that got that was brought into place a few years ago,
it is easy to repatriate your savings and put it
into kiwisaver. So again there's some people would argue that
by leaving your money invested over there, it's another form
(35:31):
of diversification. You can access the money at this stage
a little bit earlier, and then you've got the foreign
currency working in your favor. But who knows whether that
you know, currency strength will be in place when it
comes time for you to retire. I I my personal
approaches try to simplify things where possible, and so if
(35:51):
it makes it easier for you to know where your
money is and manage it all in one place and
you don't anticipate you moving back to Australia or retiring there,
you kind of have to ask yourself those questions. But
certainly a lot of people are bringing back their savings
back into their Kivi saver and you know they will
gain from the currency translation of there as well when
(36:13):
they do that, because the Aussie dollar is much higher
than ours currently, so that that's a bonus. You'll see
ane left in your Kiwi server. So those are just
kind of considerations for you. So it really depends you
know how old you are, how long you are away
from retirement, whether you see yourself here or there when
you when it comes time to retire.
Speaker 3 (36:32):
Yeah, good on your Jennine. No, No, it's a very
brief call with you, but you might want to go
and see a personal finance coach like Amanda Morrel and
just get that conversation going a bit deeper and a
bit further.
Speaker 9 (36:41):
Hi there, Greg, Good guys, just an interesting article on
the Sunday Times today bet the official cash rate. It's well,
this article basically said that the predicted reductions in the
right is not going to be what we think it is,
(37:03):
like fifty signified base points. It's getting it more like
twenty five bass points. And this is all, you know,
happened in the last two or three weeks. I'm not
quite sure whether you've seen that article or not, but
they're sort of saying, you know, have a second four
about infrast rates on mortgages for twenty twenty five. Did
(37:24):
you see that.
Speaker 4 (37:26):
I haven't seen that particular article, but there's the same
sort of speculation in the US too about you know,
everybody was thinking they're going to lower the much lower.
Now it's going to stay flatter for a little bit longer.
And so you know, I don't have a crystal ball,
so I can't tell you where it's going to go.
But I assume you're considering that in the context of
either a term deposit or a mortgage.
Speaker 9 (37:47):
Fixed or flight on a mortgage.
Speaker 4 (37:48):
Yeah right, yeah, So I mean again, you might just
kind of want to wait and see where it's going
to go. But you know, it really comes down to
your personal preference. And you know what some other advice
I would have for people at is it, You know,
discuss some of the alternatives and options with whoever you've
(38:09):
got your mortgage with and hopefully they can show you
some different scenarios and help you to arrive at a
situation is going to be most beneficial for you.
Speaker 3 (38:19):
Good stuff, Good on you, Greg, Thank you. This is
the Smart Money on the Weekend Collective. Amanda Morel here
till six o'clock, eight hundred eighty ten eighty. The text
is nine to nine two. Oh, it's been great. There's
been a great out, lots and lots of calls coming through.
Can I encourage you that when Tim's back and you
hear that Amanda Morel is in the house, get involved
a whole lot. Earlier on eight hundred eighty ten eighty.
(38:40):
But Amanda, you did want to follow up with that
Ossie superannuation question.
Speaker 4 (38:44):
Oh yeah, just quickly wanted to add that if that
caller was thinking about repatriating her savings and then you know,
bucking it up so they can she can put it
down as a first home to posit, be aware that
because you can't use your Aussie super for a first home.
That money when you bring it back is quarantine, so
you can't then bundle it into any first home deposit
(39:05):
if she was thinking about going down that route, So
that's also something to be aware of. It would be
separated out so she couldn't drill on that for a
first time deposit.
Speaker 3 (39:12):
Ah, well, that's good information. There'll be a lot of
people with pensions too in the UK and investments here
and they're wondering whether to leave it or bring it back.
Speaker 4 (39:19):
Or there's increasingly because we've got a lot of immigrants
like myself. I've been here for twenty years but moving
and there's going to be more and more complexity around
people's finances and double tax you know, agreements, et cetera.
So yeah, watch this space.
Speaker 3 (39:33):
Yeah, well, there's a lot of information to shove into
one out. I realize that, and it's not all entirely confusing,
but I think people are busy and having the time
to sit and talk with someone like yourself a personal
finance coach would be a good head start, wouldn't it.
Speaker 4 (39:47):
You know, Or if you've got people that you trust
in your family or your circle of friends who you
know or proven you know and it is or they've
demonstrated their ability to do things well with it. When
it comes to businesses or money, you know, you know,
always you can talk to, you know, use them as
a sounding board. Just be very careful because some people
(40:08):
are full of bravado and not necessarily telling you the truth.
And one thing might look like you know something from
one side and the other side betrays a different story.
So you know, you have to be have that element
to trust for sure. And again, the FMA is a
great resource to go if you do feel like you
need to get some professional advice.
Speaker 3 (40:26):
Yeah.
Speaker 4 (40:27):
Again, this coaching space, it's a little bit more neutral, right,
I'm only helping people with sort of generalized information and
pointing them in the direction where they can get things,
and not giving them personalized advice.
Speaker 3 (40:37):
Yeah. Does it help to just very quickly and that
we're out of time? Does it help to like what
you're investing in?
Speaker 4 (40:43):
Well more than liking it? I mean, I think you should,
you know, especially if you're an ethical investor voting on principle.
But I think more important than liking it is you
need to understand it. And I think that should be
a golden real too. You don't understand what you're invested in,
don't invest in it. You need to be confident like
Lulu Lemon. I'm a yogi. I know Lulu Lemma and
(41:05):
buy over clothes. Where are the pots? I know that
company what they're doing, so you know if I were
to buy a single share, confident that I know what
that company is up to.
Speaker 3 (41:12):
Amanda Morale, personal finance coach, thanks for being here for
smart Money on the Weekend Collective. Lovely to have your company.
If you want to hear any of this again, go
to iHeartRadio wherever you get your podcasts and look up
the Weekend Collective. Tyra the producer, brilliant. Thank you, it's
been an amazing show. Have a great evening. Cheers.
Speaker 1 (41:32):
For more from the Weekend Collective, listen live to News
Talk said Be weekends from three pm, or follow the
podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:17):
She didn't around, come on, Happylara now.
Speaker 3 (00:35):
Used Talks. There be Welcome Backett's the Weekend Collective, Roman
Travers and for Tim Beveridge and this is smart Money
this hour. Amanda Morrell, Happy New Year. I'm not even
sure do we still say that. Yeah, there's you, Mike
switch that Happy new Year exactly. Well, I haven't seen
you for a while.
Speaker 4 (00:49):
I think it's been a year, so it is a
new year.
Speaker 3 (00:52):
Wow, has it been that long?
Speaker 4 (00:53):
I think so.
Speaker 3 (00:54):
Now, for those that don't know your dulcet tones of
we go, I know, well, who was she? She's Amanda
Morrel and she's a personal finance coach, not actual advice.
So how would you put this in?
Speaker 5 (01:05):
Yeah?
Speaker 4 (01:06):
I just have to. You know, people are alexcited and
think they can get free financial advice and non aros
financial advisor. Please sect a paid financial advisor or an
authrosiman if you need. I'm just here to share information
and knowledge with people so they can feel a bit
more confident exactly about their finances.
Speaker 3 (01:21):
It's about this. It's likely we're about to watch a really, really,
really bad movie. Please children, get your parents' permission first,
that kind of thing exactly. So we're into a brand
new year and a lot of people, well, look who
doesn't want to have no debt? Who wants who doesn't
want to be more successful financially? And for those of
us that sit back and go, wow, look at those
people making millions on TikTok for example, Well they count
(01:45):
anymore in the US. But for that stuff that looks
too easy, and then some people make it look incredibly easy.
Why do some people have that knack for making money?
Speaker 4 (01:54):
I think the illusion that making money is easy is
just sad. It's an illusion and reality, the vast majority
of very wealthy people have made there are money, quite
honestly off the back of some good planning and hard work.
So I think that's you know, one thing to you know,
stay upfront. I imagine you know, you mentioned TikTok that
(02:15):
a lot of younger people might think, you know, I'm
going to become an influencer and make a million bucks
next year. And whilst I was we were saying maybe
point zero zero zero zero one percent of those people
have the vast majority of people don't, So you know,
and just like relying on a lottery wind is not
a good plan for enriching yourself. It's you know, bring
(02:35):
it back to basis. Look at your own skills and
talents and what are you passionate about, and plot a
plot a plan to go forward.
Speaker 3 (02:45):
Yeah, well, I'm just going to refer back to in
the first hour, we were talking about the Taxpayer Union's cure,
your poll and the biggest concern for a lot of people.
In fact, they were given a range of things to
talk about and you can see I'm flicking through each
oil there. It's a huge part of pay We've killed
three trees white printing this. The biggest concern is the
cost of living. So we don't live in a society
(03:05):
where a lot of people have endless amounts of money going, oh,
how should I invest that? But even when you don't
have much, are you better to do something with a
little you have? And where should you shove that? What's
the best thing to do?
Speaker 2 (03:17):
Well?
Speaker 4 (03:17):
First thing I would say is that everybody's circumstances are
really unique, right, So what you know is discretionary excessive
for some people might be like not really discretionary at
all for another person, for example, a student or you know,
or a fresh grad who's now having to pay off
student debt, or you know, somebody has just paid off
the mortgage and then they've got you know, some serious
(03:38):
if they're still working discretionary and then what do they
do for it? So it's sort of a stages and
ages scenario and for that I can't say enough good
things about sorted dot org dot nz because it does
go through the stages and ages of where people are at,
and you know, if you're completely overwhelmed, it does give
you great step by step guidance about what kind of
(03:59):
things you should tackle first. On you lest ie, say,
you know you're a fresh graduate and you've got to
pay back forty thousand dollars of debt. You know, whilst
it may be low interested, it still needs to be repaid.
So you know, these are some of the things you're
going to have to look up in tandem with also
trying to plan for your retirement and maybe setting aside
some money for a house one day, all those kind
(04:21):
of things. Right, So it really just depend on your
own unique situation and where you would like to go
as well, like what are your goals, how are you
going to get there? And reverse engineer. So again, it's
hard for me to say there's a magic bullet unless
I know, you know, kind of where you're at in
life at this'.
Speaker 3 (04:40):
That's a very good point and that's a good reason
to call eight hundred and eighty ten eighty if you've
got a question. Amanda Morele, a personal finance coach here
right through for the hour. So you did mention sorted
dot org, right.
Speaker 4 (04:53):
Yeah, yeah, it's wonderful. One thing I've been trying to
do because I've got kids that kids, I guess they're
young adults in their twenties, is to get them along,
you know, on their on way. And so I've been
doing some mentoring with you know, the one who at
least was listening and now because he's wanting to go
flooding and China, he's got one more year of UNI
(05:14):
and allocating what the student will will buy you and
how you you know, and there were some really again
some very instructive tools. He's more of a visual learner
because he's an artist, and you know, there's this is
a great income and expense UH spreadsheet you can fill
out and it's not like a boring Excel sheet. It's
you can add images and you know it's very very
accessible and friendly and you know, you just enter the numbers.
(05:37):
It couldn't be any easier in the different areas the categories,
and then you ask for the insights and I'll tell
you what your shortfault or you know your overflow will be.
So again, that's going to be a good indication for
you know, are you in a position to invest or? Oops?
Are you needing to make more money this year? Because
you're not going to make ends meet very much.
Speaker 3 (05:56):
So the reason I went back to sort it as
a topic is because I think a lot of us
know it's there, think oh yeah, why don't really need that?
How many people actually that, you know, apart from young
people maybe, how many people who think they know everything
about money actually go and do the simple stuff on salt?
Speaker 4 (06:12):
Not many, you know, including some people who are very
close to me who are real financial experts too. And
I'm like, hop on there, you know it is. It's
a free resource. You can set up a personalized plan
if you really want to kind of dive deep into
the kipsaver space oneday and see what you're projected. You know,
balance will be at a certain age or stage or
if you're in the right type of fund, it's got
resources for that, resources for retirement planning, resources to help
(06:36):
you set up a budget. So it covers all the
basics without it being really intimidating. I mean again, some
people will have more complex financial situations and maybe they
did get a massive you know, inheritance or a huge
payout or a divorce thing, and they will want to
have some more personalized professional advice, in which case may
be thinking about going to see a financial advisor is
(06:57):
a good thing, but there'll be a lot of people
out there, many listeners who can be well served by
just hopping on and doing these self guided tourism. There's
even a weight hundred number there for people who are
startkoho need some budgeting advice, and there's resources out there
that will you know, pay for that as well.
Speaker 3 (07:16):
It's free, all good stuff, so sorted dot or for
those that are Yeah, just going back to that, most
of us don't have a lot of money. We live
hand to mouth, which is why the cost of living
is the number one voting issue according to that Courier survey.
I just told you about if you do inherit huge money,
like if you've got one hundred grand tomorrow, and is
there any like I had that trepidation. I don't know
(07:38):
who you are. I'm not pointing at you. You're a
financial registered financial advisor. I'm going to put all my
trust in you. But we've all been bitten in the
past with stories of financial demise, with stuff disappearing or
things going wrong. What sort of confidence can you have
that your money's always going.
Speaker 4 (07:53):
And that's a good question because increasingly you're hearing very
tragic tales about scoums and people you know, getting advertised
a product that has very high end's rates and it's
you know, either completely delusional or a scam. So alongside scorta,
dot org, dot inz, another good website to a bookmark
(08:14):
would be the Financial Markets Authority, and it does have
some great resources there to guide you through how to
choose a financial advisor, what to look for in even
like some questions to ask whilst you're interviewing them. In
many cases you can get you know, a half hour
or an hour of their time for free while you're
(08:35):
kind of auditioning that individual, and they should, you know,
you should expect them to explain how they get paid.
And I guess back to your point about getting the windfall.
A lot of if you rock up to, you know,
a financial advisor who's associated with a particular funds management business,
you want to understand the payment model because in many
(08:55):
cases they may be getting what is in the industry
called a trail. So you invest your money via this
financial advisor financial advisor, how they'll get paid is through
a trail, and that's a tiny percentage or not so
tiny percentage on the money that you've invested, and so
that's their remuneration system from them. So these are the
kind of things you really want to understand very clearly,
(09:18):
and under the new regulations, we used to have almost
none about fifteen years ago, but they're very very stringent now,
and the financial advisors will have to tell you how
they are paid. And what I would say to a
lot of people because there's a lot of you know,
fancy language and jargon, and people get confused and then
they feel embarrassed asked the questions is there's no such thing.
(09:39):
We used to say this in journalism all the time
as a stupid question. So you'd be one hundred percent
sure in your own mind about what you're getting from them.
In return how they get paid. There are fee based
advisors at charge you on an hourly basis, and for
that you would expect there's more sort of neutral advice.
They're not going to put you into a product via,
(10:00):
for example, the bank that they are representing that kind
of thing.
Speaker 3 (10:03):
Yeah, okay, I like what you're saying because gives me
more confidence when I do win lotto, which will happen
at some point. It's got to happen, right, Oh, I
don't know. I am one of those people that thinks
it's exciting to get a lot of ticket and I
start planning everything ahead. What I have done since I've
met you, what I have done with my Kiwi Saver
is I've stopped kidding myself that I'm going to live
to one hundred and fifty and that because I started
(10:24):
it later in life. I've gone as hard as I can.
And I think you said to me. I'm pretty sure
it was you that said, go as hard as you can.
You're not going to notice that percentage of your income
being locked out. But once you've done it, you're doing
everything you can to do the best you can for yourself.
Speaker 4 (10:40):
Later on, Yeah, I guess I'm not sure if it
was mere. But I think you know, when you play
with some of these tools and there are someone sorted
where you can look at the difference between you know,
in k severy you can the minimums three percent and
you can pay right up to ten, or you can
make lumps some depositents if you get that fortune. But
(11:01):
it's good for you to see the difference over a
time those percentage points can make. But you know, with
you having said that, with cost of living is so
high rate, now you know what if some people are
have got themselves and they forgot about it that they're
paying ten percent of their salary into kiwisive and they
can afford to make ends meet and putting more on
(11:21):
the credit card and not being able to play it
off in full, well, then you may want to dial
that back. If you move your contributions to a higher rate,
you can always put them to a smaller rate. You
have to notify your you know, your payroll system. I
think IRD also made it possible to do contribution changes
through the portal there, And how that works is they'll
(11:43):
notify your provider and the provider notifies payroll or whatever,
and it kind of happens that way. But the most
direct way would be to talk to your employer and
get those readjusted. But but do those calculations so you
know that what you're contributing is you know, comfortable for you,
because you know there's no point in like paying higher
than you need to if you're maxing out the benefits
(12:04):
of key we sand wwhich cases getting the five hundred
and twenty one dollars a year from the government for free,
are you going to have any other additional benefit by
you know, over extending yourself if you've got credit card
debt or something like that that you can't get a
handle on.
Speaker 3 (12:18):
So I look at Tyra, my producer, her age, and
I'm not going to tell you her age, because well
I don't know it, but I know that I'm a
lot older than Tyra, right, So I wish And I've
got two girls. My oldest daughter's nearty thirty, my youngest
daughter's twenty six. So I just wish we'd had KEI
we saver back then. I wish, you know, I'd be
a multi millionaire by now if I'd had that financial
(12:39):
acumen back then to think ahead, because no one really
does when they're young until someone like you being a
mum of children who are clearly brainy and intelligent when
it comes to money, but most of us don't really
steer our children in that direction. You talk about clearing debt.
In the old days, it was clear your debt and
that's the way forward. That's my way of thinking as well.
Speaker 4 (12:58):
It's not all that difficult. But you know there's again
this is I'm working through these modules with my my
twenty one year old. There's a big difference between theory
and practice, and one of my kids has learned the
hard way and I think has really kind of gotten
on top of it. The other one is money and
money out many and I keep emphasizing that this is
(13:19):
not a sustainable strategy, particularly if you run out and
then you get a credit add It is so my
best advice to them, and the only thing that they've
seemed to have listened to is do not get a
credit card, because that's going to unless you are responsible
payer and full of your credit card, this is really
going to be a new surround your neck. So fortunately
they both have credit debit cards, which only allows them
(13:40):
to swim what's in their account. But there's still some
learnings there and that becomes that speaks to the behavior.
So there's a big behavioral reset that a lot of
people need to, you know, kind of force on themselves
or reflect on to get the outcomes that they would
like to see in their financial situations, which will kind
(14:01):
of bear fruit in other areas of your life too, because,
as you know, when you feel like you're under financial
threat or there's a lot of stress and pressure there,
it can affect everything, your personal relationships, your health.
Speaker 3 (14:11):
Absolutely, the whole shebang. Oh heck yes, stress level, constipation.
I've had it all through odd So I like that.
I like the two things you've mentioned. They're sorted dot
org and also the Financial Markets Authority, two good places
to start, as well as instigating someone like yourself. Amanda
Morel with us, a personal finance coach eight hundred eighty
ten eighty nine two ninety two to text Hi their
(14:32):
Amanda says the text, Up, we're putting extra into the
super and Keywi Saver, but I worry we should be
putting that extra off the mortgage first, which is more important?
Do you think cheers is duly Yeah, that's.
Speaker 4 (14:45):
A good question one that a lot of people ask
themselves as well. What I would suggest is if you
go another one to bookmarkers, Interest, dot co, dot NZA.
They've also got some rear payment calculators, and I think
sort of has got a similar one. But you can
do some scenario planning, like I don't know how much
longer they're have on their mortgage, but if you were
(15:07):
to increase your payments by X, how much is that
going to reduce the interest over the lifetime of that mortgage?
And you know when will venied position to be debt free,
And so it's kind of it's a personal decision based
on your overall financial situation, but it's really helpful to
do those. You don't need to have a calculator in
(15:29):
hand and figure out the formulas. You just add to
the numbers, do a little experimentation to see just how
much you are paying interest on the mortgage and how
much better off you be to fast track that mortgage.
A bear in mind that that depending on who your
mortgage is with, you can't sometimes penalized for repaying it
(15:50):
earlier and then you need to reset it. But so
some mortgages, depending on which bank you're with, are more
flexible than others. So you also need to understand the
decencies of your mortgage and when the reset period is.
But mortgages for the vast majority of it, or one
of the biggest items that we're going to be paying
off over time, you know that a million dollar pause
once you tick your factor and the principal interest over time,
(16:13):
you know it maybe two million dollars that you're paying off.
Speaker 3 (16:16):
Absolutely, So, just to be clear, because I don't know
that I maybe I wasn't listening properly then, but are
you better to focus on clearing the mortgage before you
start flitting around with chas ease and investing in rocket labe?
Speaker 4 (16:27):
It really depends, because you know my personal preferences, I
don't like owing money, so that's that's how I've chosen
to do things with my own finances. Is repay all
the debt once you're mortgage free, then reinvest. Having said that,
that may seem like a very long way off for
a lot of people, So there might be scope within
(16:48):
your budget to do both, depending on right so you
might be able to you know, fast track the mortgage
by repaying a little bit more. You know, you can
repay it on a weekly fortnightly, so that will make
a difference too. In terms of you know, from monthly
to fortnightly even you can check those differences on sort it.
But yeah, you might have scope within your budget to
(17:10):
also invest on the side. I mean, if you're planning
to go that route in your DIY investing, I would
just be dow. I'n sure that you know what you're
doing so that you're not blowing at right. So that's
why things like managed funds, there's parallel funds just like
Kiwi siver, but they're not locked in, are not a
bad thing for people to look at instead of trying
(17:30):
to choose shares that they think may or they might
do well if they're not have any expertise in these areas.
Speaker 6 (17:36):
I just want to jump in.
Speaker 3 (17:37):
I want to jump in there because you said, as
long as you know what you're doing, which of course
you know very well. Most of us have no idea.
Brian down the road, whose sister's Margaret's brother in law's
friend Albert said it was a good idea. Therefore it's
a good idea. So you are better off talking to
someone like yourself for financial advice, because there must be
some lemons that are clearly geese. You know, and you
(17:58):
invest in some barking duck and all of a sudden,
you're going But so and so said it was brilliant,
It was advertised beautifully. The voiceover was tremend Yeah.
Speaker 4 (18:05):
Well, yes, you have to, you know, buy or beware
kind of thing. But there is lots of places where
you can, you know, verify what it is you're investing
in the companies and do the research. But it is
quite time consuming. Like if you get a passion for that,
that's great, but if that's not your expertise. You're a
busy you know, householder and raising kids and trying to
(18:26):
manage everything. Ness, don't you know why add extra stress
onto your life by making yourself become a stock picker
in your spare time. You know, that's not particularly a
good strategy to create more stress by something that you're
wandering in the dark about. But you know, if you're
somebody with lots of time on their hands, you know
you're single, you love this stuff, you know you're comfortable
(18:48):
with everything and how it works and cap safer, then sure,
maybe you want to weigh in slowly and buy a
chare disease and you know, give it a bit of
a flirt, but you do need to understand the risks
that you're taking your time horizons for investing, and you
know your your your durations as well.
Speaker 3 (19:08):
Yeah, you go really good points and I've written all
those points down. Of course, sorted dot org is one,
Financial Markets Authority was the other, and Interest Stock Code
Audience good places to go and get some some key
points and then go and see a financial advisor as well,
because you know, whether it's huge money or a little
bit of money, no money can be afford to be lost,
can it. We all value the money.
Speaker 2 (19:28):
That we have.
Speaker 4 (19:29):
I would say among the people that I know who
are the wealthiest, they cherish their money and they watch
it very closely, right, and so it's no surprise that
they've ended up in the position that they're doing because
they're watching it really carefully. If you're not paying attention
to what's in your bank account, how much is going in,
how many subscriptions you have, your keypserver balances, all that stuff,
(19:52):
it tells me that you're just not focused on money.
And you know you get attention goes, I know exactly right,
energy goes where attention totally does.
Speaker 3 (20:03):
This is great and it's good chat. You want to
get involved I warmly encourage you to do so nine
two nine two to text. Best of all, though, to
call eight hundred and eighty ten eighty. It's a free
phone call. Amanda morele here a personal finance coach. All
sorts of yeah, just tips in the right direction, I
would say, is what we're going to get, and I'd
love to hear from you. Twenty six past five, twenty
nine past five.
Speaker 4 (20:23):
I love this.
Speaker 3 (20:23):
I love talking about money because it makes me feel
like I've got some. I actually don't, but i'd love
to have some more. Yeah, it's true. I'd love to
be I'd love some. I'd love to rob a bank electronically,
for example, and just top my accounts up. I just
loved the idea of having lots of money. You've got
to work hard for it, though, don't you.
Speaker 6 (20:40):
So I'm not going to rob a bank.
Speaker 3 (20:42):
I've thought about it when things have been tight. So
when people are thinking I don't have any money, I
do have calls to go to, but just very quickly
I don't have any money. Is it just worth investing
everything you've got, no matter how little you've got.
Speaker 4 (20:56):
No, No, I think you really do kind in ne
to take a deep brath and then look at your
overall position and valuate what it is exactly you have
where you want to go, what you know, hurdles you
need to kind of knock off, and then you know,
proceed forward cautiously. Yes, I think in a moment of
panic where you're thinking, I want to make a quick buck,
(21:16):
I'm and I put it all on crypto because Trump's
all keen on crypto for example, like is that the
right move or is that too risky for your you know,
your actual situation. Are you holding onto debt? Should you
be doing something with that? First? Again, and just proceed
slowly and cautiously. And again I would guide people disordered
for that because it does give you sort of steps
(21:38):
to go through, to work through, instead of thinking that
the cure all for everything that bothers you and keeps
you up at night is just putting it all in red.
Speaker 3 (21:47):
Yeah, you know what I mean exactly? Well, can I
just it's Sam? Can I Sam? How are you? Sam?
Speaker 2 (21:53):
Yeah?
Speaker 3 (21:54):
Good? Say are you a bit like me? Sam? And
that you hear all the stuff about crypto and all
these amazing investments and you go, oh that sounds great.
Then someone else says, oh no, it's not and you
get confused.
Speaker 7 (22:06):
I'm probably, yeah, looks pretty be careful with my approach
and pretty kill on some of those getting rich quick
sort of things. I've got a run entry who is
a different country who's done very well out of crypto.
But I know it can go the other way. So yeah,
I'm probably pretty conservative when it comes to and maybe
(22:28):
that's a good thing or.
Speaker 4 (22:28):
A bad and I don't know that's a good thing.
And by the way, you know, one of the world's
richest men out there, Warren Buffett, not a vague fan
of crypto. You can listen to his YouTube interviews. And
I'm not saying there haven't been individuals who've gotten very
wealthy of a crypto, but understand what you're getting into
and the risks and sounds like you're doing all that.
Speaker 7 (22:47):
Yeah, I suppose with our situation with our family, we
are a better stage where we still have productive mortgages,
you know, and house edits and other things, and you
still have a reasonably large mortgage that's manageable. But we're
sort of Yeah, I suppose we were like give one
that I want to, you know, secure our future, and
(23:08):
we always question weather putting the money into into principal
payments because we actually have quite a bit of flexibility
how much principle we pay off as is, you know,
a better return on our money put it into that
versus say, for instance, you know, setting up a shares
these account we're out for our kids. You know, like
if your mortgagees are long term average of you know,
(23:29):
six or seven percent, you know that's guaranteed return pain
off principle is it versus versus shares lease or something
that you're not quite known, but yeah, probably probably a
conservative approach because you could potentially get get ahead quicker
of a lump from doing that. But that's that's sort
of a dilemma, you know.
Speaker 4 (23:47):
I I had a former colleague who is quite a
well known financed person too, and his big mantors there's
no better return on your investment than paying off the
mortgage faster. And again it's personalized approach depending on what
your situation is, but it's one that I would concur
worst largely. Having said that, you know, I wouldn't say
it's all or nothing, and setting up accounts for your
(24:09):
children's future not a bad idea, doesn't mean you have
to see them with you know, two thousand dollars a month,
for example, you could start slow. One thing that I
did some time ago with my boys before they had jobs,
is started putting twenty dollars a week into their Kiwisaver
accounts to help give them a leg up. And I
was again with this young guy that i'd been mentoring,
showing him how much it's gained in three years, and
(24:31):
he was, you know, shocked because he's also started working
and seeing the effect of that. So you know, consider
whether you could start doing something on a modest note
with your kid's accounts to get them a bit of
a leg up, you know, whatever that is if they've
got Kiwisaver. And I would just mention if somebody asked
me this today about their son and they wanted to
(24:53):
make sure he's in his twenties and kind of stop working.
He's going to get the you know, the five hundred
and twenty one dollars from the government, so they wanted
to contribute into his account. So anybody's listening, you know, grandparents, parents,
other people want to get gift your kids something in
that area. Can do that via key we Save or
via some of these other funds. By the way, if
you set them.
Speaker 3 (25:13):
Up, good idea, Sam, if you did have, if you
were to invest, sorry, if you were to inherit a
whole bit of money tomorrow. Is there one particular aspect
of the of the market that you're looking at that
there's the future, whether it's whether it's pharmaceuticals or whether
it's rocket type stuff and futuristic stuff tech. What are
you interested in?
Speaker 7 (25:34):
Yeah? I probably haven't, don't what am I? I think
some of that tech and AI and the chips that
you build that stuff with as probably where things are going.
But I'm not I'm not an expert, and I think
the comedy before. You have to spend a lot of
time researching this and understanding. Yeah, I'd probably try to
find someone trusted and yeah helps get help, help me
(25:59):
and invest in it, invest in it?
Speaker 3 (26:01):
Okay. Yeah, it sounds like you're on the right track. Sam.
You mentioned Warren Buffet and then before that Donald Trump.
You get all these people, who I mean, Donald Trump's
got a sketchy record in business anyway, hasn't he there?
He is at the top of his game.
Speaker 4 (26:13):
He's been bankrupt several times. They could be taking Warren
Buffett's to financial advice over Trump's any day of the week.
Speaker 3 (26:19):
Yeah. But going back to the bitcoin discussion, I've literally
listened to every word there's an expert or listen, oh listen,
oh listen, Oh yes, that sounds brilliant, and then another
expert completely counts what they say, and you can see
why there is this confusion with what to invest in.
Speaker 4 (26:34):
You have to be confident within your own mind about
what you're doing. And so one thing you could do
if you you know, got this nagging feeling that you
want to get in there and you've got you know,
an extra hundred dollars to you know, flutter, just you know,
open up an account and buy a hundred bucks or
if you can, you know, it's not if your kids
aren't going to go without food or whatever as a
(26:54):
result of doing so. And you can watch and see
and you'll see how volatile it can be as well,
and then you can kind of weed in there carefully. Again,
there's a an age old saying in the investment space
that diversification is the best form of protection against risks
and volatility. So again, it's not putting it all on
(27:16):
red or crypto. It's spreading your assets or spreading your
money over a wide number of assets in different companies,
and anybody who's invested in kiwisaver largely will because.
Speaker 3 (27:27):
That's exactly what I've done. So I've gone as hard
as I can, I've gone as mental as anything. What's
the most risky portfolio? I've checked everything on red and
I've left it. The other thing I do with kiwisaver
is I never look at it right. I don't want
to see the fluctuations. Yeah, it's not going to change
anything for me. Is that ignorance?
Speaker 5 (27:44):
Now?
Speaker 4 (27:45):
Well, I kind of I don't think you should be
checking your balance every day, but I think it is
good to know like kind of where you're at, because
then again, you know, you can look back in a
year's time and see how you're tracking along. And so
one thing I started to do in the last couple
of years seemed to be the financial officer for the
whole family is just sort of like tracking everybody is
(28:06):
and so there's you know, an overall dashboard about where
things are at, and so they can also see, you know,
how things are progressing and growing. And same with your
children and your daughters. I assume they're in key we
Saver too, well, hopefully they're logging into their accounts periodically
because they can see what the production track is and
when they get those annual reports, they'll see how well
(28:26):
their funds did as well, and how much they paid
in fees and taxes and how much they're on track
to have at the magic age is sixty five.
Speaker 3 (28:33):
Do you know what though, Amanda, they're both in Australia
and their superannuation schemes is so much better over Yes,
I know.
Speaker 4 (28:39):
Well that's another topic, isn't it altogether? Yeah? It is.
Speaker 3 (28:42):
I like what you said before though. By the way,
O eight hundred and eighty ten eighty if you've got
commentary or questions for Amanda Morell, our personal finance coach
here on Smart Money the Weekend Collective. I like what
you said before because with Keiwi save it in general terms,
you can't touch it. So if you are of an
age where you're looking to give hundreds of thousands to
your grandchildren, whack it into their Kiwi saver and watch
(29:02):
that grow over the next thirty forty years for them, brilliant.
Speaker 4 (29:05):
I think it's a great legacy gift, you know, especially
if you're worried that you know, if you're going to
give you your eighten year old grand son some money
that they the blow at the races or you know,
on a car. We're not saying the car is a
bad decision, but it's going to appreciate.
Speaker 3 (29:21):
These Skyline straight away exactly what.
Speaker 4 (29:23):
Boys both love those cars. So but yeah, so you
lock it away and it's going to be there for
a first home deposit or for when they retire. And
I think, you know, every everybody can feel good about that.
You know, maybe not as exciting as a carpet.
Speaker 3 (29:38):
No, I understand that that's a great idea. I love
that idea. So any questions at all, do call O
we eight hundred eighty ten eighty. The text is nine
two nine two. This is the smart Money Out and
our guest Amanda, Amanda Morrel, a personal finance coach, would
love to see you in the right direction. Sounds good
to me. Oh, eight hundred eighty ten eighty. It is
twenty one to six.
Speaker 7 (29:58):
See the damn can want sand.
Speaker 1 (30:03):
Wheels, can't be emo.
Speaker 8 (30:06):
There this person the.
Speaker 3 (30:08):
Kids talks av It's the week in collective Roman Travis
here and our guess this how for smart money is
Amanda Morele a personal finance coach, and you can feel
free to call or text. Calling is best though. Eight
hundred and eighty ten eighty Michael, what's your question for Amanda?
Speaker 5 (30:24):
Hi, Amanda hiro Man. I just I'm currently working with
enabling me and Squirrel home loans. I'm going through the
process of doing pre approvals to buy a rental. I've
got one pre approval back and it's going to be
going to loan me four hundred and ninety five thousand
(30:47):
with no interests, with no interest.
Speaker 6 (30:51):
Free periods, no interest only period and I've got one
hundred and seventy five to put towards the house. I
currently live in a house that I don't have a mortgageohn.
But I'm wondering, am I just better off putting the
money in to my own home and bringing it up
to scratch, you know, bringing some double blading and stuff in,
or am I better off actually getting into a rental
(31:14):
when maybe stretching yourself a little bit?
Speaker 4 (31:18):
Okay, good question. I'm reminded that I can't give you
personalized advice, so we'll just cover some generalities here. But
but I guess I would expect that enable maybe showing
you what the rental. So you own your own property,
but you're thinking about boring money, but get a rental.
Is that correct?
Speaker 5 (31:33):
Yeah, yeah, yeah, So I.
Speaker 4 (31:34):
Assume that they've done the mouth for you do show
you what the rental yield would be on that.
Speaker 5 (31:40):
We haven't gone quite there by the system.
Speaker 4 (31:43):
Okay, Well, that's one hard question you need to ask
if or if you have if you can use some
of the tools out there to figure out what your
rental yield will be, because the yields are not that great,
particularly compared to the stock market these days. And I'm
not saying you should get money borrow money to invest
in the stock market, but and the stock markets are
(32:04):
quite hot, overheated at the moment. However, again, it all
comes down to so your personal choice. And you know,
I've lived in a few cold, drafty homes and the
zill myself over the years, and you know, I didn't
sleep all that well at eight there was a mold,
you know, in the closets and growing on my clothes
on a kision. So you know, having double glazing in
a house and proper ventilation and heating, et cetera makes
(32:27):
a hell of a difference through your overall health. And
wellbeing and adds value to your house if you do
decide to sell it down the track. So those are
kind of the opportunity costs, right, So if you're not
doing this, you could do this and again, if you
have extra money in the bank, you know you might
want to split the difference. That's another option is you know,
invest some of that money half of that money, and
you know, find out what your risk profile is and
(32:49):
then do some other enhancements to your house as well.
So you're doing you know, you're not just putting it
all on red again with a rental property, but you're
splitting the difference in investing the stock market and then
doing some upgrades to your home potentially.
Speaker 3 (33:02):
Cheers Michael, thank you. I hope that helps.
Speaker 4 (33:03):
Well.
Speaker 3 (33:03):
What about over over capitalizing, over investing in a property
and then expecting to get that money back.
Speaker 4 (33:09):
You know, Well, people love to talk about property in
New Zealand. But one thing I would say, and I
you know, have this conversation frequently because you know a
lot of people want to talk about property, is like,
our property value is going to continue to increase at
the level that they have been over the last twenty years.
You can see what's happening in property prices now? It
starts sort of you know, they're they're lifting in some areas,
(33:32):
and then they're sort of plateauing. But how can you
expect that property prices would continue to increase at the
rate they have and then there's people underneath there coming
into the market to buy them. You know, houses are
already out of reach for so many younger people these days.
So something that you have to kind of think about that,
you know, are you being unrealistic that you think you're whatever,
(33:55):
you know, million dollar house is going to be worth
three million dollars in the next whatever X number of years?
Speaker 3 (34:01):
You know, I mean to haven't people always say that
and they always go well.
Speaker 4 (34:06):
In New Zealand, you've kind of got an exceptional environment,
and that's to do with, you know, the lack of
capital gains tax et cetera. So New Zealand's in a
bit of a difficult in a in a unique position
from a lot of other economies around the world. Whether
capital gains might be introduced one day and whether that
could tip the equation, who knows. So I wouldn't break
(34:26):
that off, but I don't want to get into about
I'll get beat up out there.
Speaker 3 (34:31):
No New Zealand is lose it when you start talking
about capital gains text one of the last countries in
the OECD.
Speaker 2 (34:36):
To do that.
Speaker 3 (34:36):
Hi Janine, Oh Hi, how's it going? What's your question?
Speaker 8 (34:42):
Okay? My question is I have I worked in Australia
for ten years and got to your anuation when I
was there, and it's it's sitting over there sort of
gradually earning money. But I'm wondering if I should bring
it over to my QUI saver here, would it be
better in terms of I guess my going up versus
(35:07):
keeping it in Australia's which.
Speaker 4 (35:10):
Is yeah, very good question and one that comes up
quite a lot. So under the trans tasm Portability Agreement
that got that was brought into place a few years ago,
it is easy to repatriate your savings and put it
into kiwisaver. So again there's some people would argue that
by leaving your money invested over there, it's another form
(35:31):
of diversification. You can access the money at this stage
a little bit earlier, and then you've got the foreign
currency working in your favor. But who knows whether that
you know, currency strength will be in place when it
comes time for you to retire. I I my personal
approaches try to simplify things where possible, and so if
(35:51):
it makes it easier for you to know where your
money is and manage it all in one place and
you don't anticipate you moving back to Australia or retiring there,
you kind of have to ask yourself those questions. But
certainly a lot of people are bringing back their savings
back into their Kivi saver and you know they will
gain from the currency translation of there as well when
(36:13):
they do that, because the Aussie dollar is much higher
than ours currently, so that that's a bonus. You'll see
ane left in your Kiwi server. So those are just
kind of considerations for you. So it really depends you
know how old you are, how long you are away
from retirement, whether you see yourself here or there when
you when it comes time to retire.
Speaker 3 (36:32):
Yeah, good on your Jennine. No, No, it's a very
brief call with you, but you might want to go
and see a personal finance coach like Amanda Morrel and
just get that conversation going a bit deeper and a
bit further.
Speaker 9 (36:41):
Hi there, Greg, Good guys, just an interesting article on
the Sunday Times today bet the official cash rate. It's well,
this article basically said that the predicted reductions in the
right is not going to be what we think it is,
(37:03):
like fifty signified base points. It's getting it more like
twenty five bass points. And this is all, you know,
happened in the last two or three weeks. I'm not
quite sure whether you've seen that article or not, but
they're sort of saying, you know, have a second four
about infrast rates on mortgages for twenty twenty five. Did
(37:24):
you see that.
Speaker 4 (37:26):
I haven't seen that particular article, but there's the same
sort of speculation in the US too about you know,
everybody was thinking they're going to lower the much lower.
Now it's going to stay flatter for a little bit longer.
And so you know, I don't have a crystal ball,
so I can't tell you where it's going to go.
But I assume you're considering that in the context of
either a term deposit or a mortgage.
Speaker 9 (37:47):
Fixed or flight on a mortgage.
Speaker 4 (37:48):
Yeah right, yeah, So I mean again, you might just
kind of want to wait and see where it's going
to go. But you know, it really comes down to
your personal preference. And you know what some other advice
I would have for people at is it, You know,
discuss some of the alternatives and options with whoever you've
(38:09):
got your mortgage with and hopefully they can show you
some different scenarios and help you to arrive at a
situation is going to be most beneficial for you.
Speaker 3 (38:19):
Good stuff, Good on you, Greg, Thank you. This is
the Smart Money on the Weekend Collective. Amanda Morel here
till six o'clock, eight hundred eighty ten eighty. The text
is nine to nine two. Oh, it's been great. There's
been a great out, lots and lots of calls coming through.
Can I encourage you that when Tim's back and you
hear that Amanda Morel is in the house, get involved
a whole lot. Earlier on eight hundred eighty ten eighty.
(38:40):
But Amanda, you did want to follow up with that
Ossie superannuation question.
Speaker 4 (38:44):
Oh yeah, just quickly wanted to add that if that
caller was thinking about repatriating her savings and then you know,
bucking it up so they can she can put it
down as a first home to posit, be aware that
because you can't use your Aussie super for a first home.
That money when you bring it back is quarantine, so
you can't then bundle it into any first home deposit
(39:05):
if she was thinking about going down that route, So
that's also something to be aware of. It would be
separated out so she couldn't drill on that for a
first time deposit.
Speaker 3 (39:12):
Ah, well, that's good information. There'll be a lot of
people with pensions too in the UK and investments here
and they're wondering whether to leave it or bring it back.
Speaker 4 (39:19):
Or there's increasingly because we've got a lot of immigrants
like myself. I've been here for twenty years but moving
and there's going to be more and more complexity around
people's finances and double tax you know, agreements, et cetera.
So yeah, watch this space.
Speaker 3 (39:33):
Yeah, well, there's a lot of information to shove into
one out. I realize that, and it's not all entirely confusing,
but I think people are busy and having the time
to sit and talk with someone like yourself a personal
finance coach would be a good head start, wouldn't it.
Speaker 4 (39:47):
You know, Or if you've got people that you trust
in your family or your circle of friends who you
know or proven you know and it is or they've
demonstrated their ability to do things well with it. When
it comes to businesses or money, you know, you know,
always you can talk to, you know, use them as
a sounding board. Just be very careful because some people
(40:08):
are full of bravado and not necessarily telling you the truth.
And one thing might look like you know something from
one side and the other side betrays a different story.
So you know, you have to be have that element
to trust for sure. And again, the FMA is a
great resource to go if you do feel like you
need to get some professional advice.
Speaker 3 (40:26):
Yeah.
Speaker 4 (40:27):
Again, this coaching space, it's a little bit more neutral, right,
I'm only helping people with sort of generalized information and
pointing them in the direction where they can get things,
and not giving them personalized advice.
Speaker 3 (40:37):
Yeah. Does it help to just very quickly and that
we're out of time? Does it help to like what
you're investing in?
Speaker 4 (40:43):
Well more than liking it? I mean, I think you should,
you know, especially if you're an ethical investor voting on principle.
But I think more important than liking it is you
need to understand it. And I think that should be
a golden real too. You don't understand what you're invested in,
don't invest in it. You need to be confident like
Lulu Lemon. I'm a yogi. I know Lulu Lemma and
(41:05):
buy over clothes. Where are the pots? I know that
company what they're doing, so you know if I were
to buy a single share, confident that I know what
that company is up to.
Speaker 3 (41:12):
Amanda Morale, personal finance coach, thanks for being here for
smart Money on the Weekend Collective. Lovely to have your company.
If you want to hear any of this again, go
to iHeartRadio wherever you get your podcasts and look up
the Weekend Collective. Tyra the producer, brilliant. Thank you, it's
been an amazing show. Have a great evening. Cheers.
Speaker 1 (41:32):
For more from the Weekend Collective, listen live to News
Talk said Be weekends from three pm, or follow the
podcast on iHeartRadio
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