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Australian Finance Podcast

Planning for a Super Retirement (get it?)

20 Feb 2020

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What are the burning questions about using Super to fund retirement?

0.031 - 26.345 Owen Raszkiewicz

Property investors often talk about using debt to build wealth. In the share market, that's called gearing. With the BetaShares WealthBuilder range, investors can access moderate gearing into shares, and with the newly launched GG-BL, That means exposure to a diversified portfolio of around 1,300 global companies excluding Australia, all with no loan applications, credit checks, or margin calls.

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26.786 - 44.868 Owen Raszkiewicz

Gearing magnifies both gains and losses, so it's only suitable for investors with a very high tolerance for risk. You can learn more about the WealthBuilder range of ETFs at the BetaShares website. And don't forget to read the PDS and TMD to decide if it's right for you. BetaShares Capital Limited is the issuer.

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45.469 - 63.24 Owen Raszkiewicz

Here's something worth knowing if you've been meaning to make the switch to a better broker. To celebrate their fifth birthday, Perla are offering three free trades a month for five months if you transfer your portfolio across with a minimum of $1,000. For anyone investing regularly, that's meaningful savings on brokerage that can stay invested instead.

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63.721 - 84.46 Owen Raszkiewicz

Perla is chess-sponsored, built specifically for long-term investors, and now has over $3 billion invested on the platform. If you've been with a platform that doesn't quite fit your strategy anymore, it might be time to take a look. You'll find all of the details at perla.com slash lp slash rask. That's perla.com slash lp slash rask.

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88.405 - 107.217 Owen Raszkiewicz

Welcome to the Australian Finance Podcast, a podcast for people who want to learn more about their personal finances and get the most from their money. This series is hosted by Kate Campbell from How To Money and Owen Rascovitch from Rask Finance. The Australian Finance Podcast is provided for educational purposes only.

107.737 - 124.74 Owen Raszkiewicz

The information is general in nature and does not take into account your needs, goals or objectives. What that means is the information does not apply to you specifically. So consider getting the advice of a licensed and trusted professional before acting on the information. Kate, welcome to the Australian Finance Podcast.

124.76 - 125.761 Kate Campbell

It's good to be back, Owen.

126.342 - 129.246 Owen Raszkiewicz

Today, we're going to be talking about superannuation and retirement.

129.361 - 130.642 Kate Campbell

Everyone's favorite topics.

Chapter 2: When is it too late to invest outside of Super?

818.654 - 833.953 Owen Raszkiewicz

If I was a financial planner, I wouldn't do these charts because I think it's overwhelming for most people. But they can sit down with you and they can go, this is where you are. And if you do this, this is what the chart looks like. And if you do this, this is what it looks like. And one of those things that they could do is, well, super for most people is taxed at 15%.

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833.993 - 843.345 Owen Raszkiewicz

But hey, you're earning and you're paying tax at 30%. So you'd be better off putting a little bit extra into super. So there are taxes definitely a consideration. But

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843.325 - 854.12 Kate Campbell

And often when you're quite close to that retirement age where you can access your super, suddenly a lot of people do shift gear and start putting all their money into the super rather than outside of it.

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854.341 - 877.122 Owen Raszkiewicz

Yeah, they definitely take up that $25,000 limit at the moment, which is what it is. But they definitely take that up to get those concessional contributions rolling in. But my, as you said, my stance on this is, Don't think about it as one or the other. My in-laws recently, they've always been really supportive of me and doing what we do.

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877.322 - 896.485 Owen Raszkiewicz

But they've finally come around and said, okay, here's a little bit of money. What should I do with it? And they started investing like, oh, my God, this thing's going up. Isn't it great? And they're thinking of retirement in five to ten years or even sooner. So it's never too late to start. Absolutely never too late to start.

896.505 - 916.791 Owen Raszkiewicz

Because, hey, if you know how to manage your money at 65, like if you've only just discovered investing at 63, you spend a couple of years working out what needs to happen. you've got the next probably 20 to 30 years on average in retirement mode where you've got to manage your money. So that's a long time to compound even when you reach retirement.

916.932 - 939.01 Owen Raszkiewicz

And another thing is, if that wasn't a big enough reason alone, if you just have all of your money when you hit retirement in cash, earning 1% or 2%, if that, then you take away inflation, your retirement is going to look pretty bleak. But if you take an active approach and you think, this is how much risk I can take. I understand how shares and property and all these other things work.

940.222 - 941.103 Owen Raszkiewicz

It's never too late to.

941.143 - 962.964 Kate Campbell

Yeah, it's almost like we think when we reach 65, then we suddenly go into the most conservative option possible. And if you're going to live to 100, where a lot of us probably will buy, especially our generation, you don't want to suddenly be in cash because your money is just going to get eaten alive by inflation. So, yeah, you've got many more years to invest and compound your money.

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