Achieve Wealth Mastery: The Golden Rules to Success

hello and welcome to the talking wealth podcast I'm Dale gillham the chief analyst here at wealth within and today we've got a rip snorder of a podcast 4 is talking about the golden rules to Building Wealth and we'll talk to you about the challenges people have to getting to retirement and Building Wealth but before we get into this exciting topic I need to introduce my co-host Janine Cox how are you fantastic thanks and yourself yeah I'm pretty excited actually I like talking about this sort of thing too I do because so many people think about Building Wealth as just you know buying some stocks and investment property but it's like planning it's completely the opposite it's about planning to get your Investments which we'll talk about now this podcast is not an extension of the last one we did which was all on the moods of the market but that was a great one to play precursor to this so if they haven't seen that I really enjoyed that one because it helps you understand what the Market's doing so this one is a 2 Cloud series these Golden Rule still building well so first one is like look at what the objective is what are we trying to do and then the second one is more how to do that because as as we know people just want to you know buy a stock or buy a house but there's no more planning you know and that's why I think the statistic still is today that somewhere around 70 to 80 percent of people are still retiring on government pensions it's probably even 90 closer to 90 percent but the majority High anymore because it is because if the average age of people retiring is 55 how's that possible how would the average age they're retiring where'd you get that well a lot of people are retiring at 55 that's what I mean that's retiring at 55. well look it was 65 was the big you know around the 60s was the age but apparently there's a lot of people now retiring I think you need to find that out with some solid stats from the ABS and everything else otherwise I'm not going to believe you because I seriously don't know anybody at 55 that's retiring I know a couple of people that retired sort of in their 50s and 60s but look I mean I've had conversations with people people can actually retire earlier than they think they can well they can I've had these conversations and people and this is where this topic is really good because it makes people stop and think and look at the situation and so it was a question of well how much do you think that you needed to have for retirement and they didn't really know well most people don't know and what we know is they leave their planning way too late because we constantly get the phone calls going I haven't invested I want to start investing I'm 55 I'm going to retire I want to retire by the time I'm 60 or 65. I need you to do this can you do it and you go well you know your inability to plan doesn't constitute an emergency in my case well the answer is not no the answer's not no they can do it that's what we're going to share with you how you can do that and how you can build your wealth yeah because the end of the day the earlier you start the better because a lot of compounding comes into it but we're going to go through these slides that we're going to go through so if you are watching on uh watching on a podcast if you're listening to this podcast in your car or on on the train or whatever you are we're actually going through a PowerPoint presentation which is why I mentioned the one we did last time on the moods of the market that was a presentation about nine years ago we did now these slides are the sort of extension of that same presentation basically so the next two podcasts that you're going to see so you can go to YouTube um you know type in wealth within TV and you'll see these podcasts so you'll see this one which is the golden AUST Building Wealth part one and then we'll have part two um probably in a week or two uh it'll come out but please go and do that and if you are listening to us on a podcast audio podcast just give us a five star review on iTunes or whatever it is and and um you know yes please do and that will get Dale off my back please um from all of that but let's bring up the the actual PowerPoint and we'll start talking about that because obviously the topic is golden rules to building you know to Building Wealth but the challenge that people have um is we always talk hear the word lifestyle all of the time so it's about maintaining a like current lifestyle yes whatever that is but it's also we need to build a lifestyle for the future but then we need to create balance in there too because you know you can't have sacrifice everything for the future but you can't also spend everything now so you don't have a future because the one thing that's certain is we we're born and we die yeah you're simple how long that the distance between those two points is whatever that is but we know we're going to leave tomorrow the day after the day after so how many days in advance are we going to live and how are we going to fund that especially if we don't have a job because well it's a hard part isn't it because you can't just you don't like you say you don't know when your number's up so you can't sort of factor that in really you can only just look at what the statistics are in terms of the average age for men and women women today and then use that information to help you plan yeah so what's the average age that somebody's passing away for men and women now it's in this it's in the 80s now literally in the 80s but what would it like what about your family situation would you look at your parents grandparents and look at the at their average age and just and also use that as a guy you can I suppose it's a rough guy but you probably can't do that because they didn't have the same health or sanitary conditions some of those people had I don't know how old are you going back yeah well I'm just thinking the medical advances and everything you know yeah it changes every five years now they're talking about they'll say you know they'll solve diabetes in you know few years or all these sorts of things so it's like the generation that are sort of 30 and under they're probably going to live closer to 90 to 100 years you know the way that things are going there you know with you know with artificial intelligence maybe they'll plug that into people's brains I don't know yeah but at the moment is the challenge is maybe we'll be walking around as we're like a 90 year old walking in one of those big like you see in some of those frames you know cyber cyber frames you know cyber frames you know you're in this big machine like a is it what's what's the movie called cyborgs or something like that I don't know I don't know it's one of those there's one of those DC movies that you like or Marvel movies that you like possibly you're a tragic she really is a tragic but that's our challenge is we we need we have a lifestyle today and some people overdo their lifestyle they have too much fun today so they've got nothing tomorrow but as a having that nice balance where you have a a lifestyle now but you're also planning for that future because as you know I'm saying is you're going to live the life in the future what you do today will determine the quality of that life into the future and we're not just talking about money I'm talking about your health as well what you eat and what you drink the exercise you do or don't do you know whether you meditate all of those things will determine your health and that then your money side of things is how much money you're going to have and some people they just want to Shack in the bush you know like much you know like some of my family got a Shack in the bush but other people want to have a Ferrari or a Lamborghini and live on a big mansion on the beach whatever that is for that person or that family is what it is but what what we're going to talk about I mean as we're going along people have an idea about what they want but how many people actually really think about what they want their lifestyle to be today you know five years from now 10 years from now that's the next Point retirement it's not just about because if we keep saying to everybody I'll think about your retirement and people think oh hang on it's you know 20 30 40 years from now think about it now um it's too hard yeah but what if they started thinking just in 10 years where do you want to be and then 20 years where do you want to be and then take it from there before you know know it you've already planned for your retirement correct and that's some of the stuff make it easier yeah next podcast on all the part tool this sort of podcast but you are right I mean I was always from a very young age planning for the future and putting money aside all that sort of stuff so we're going to talk about I I once read this book and it just blew me away I think is that what is it I once read a book and I don't know what to say to that one um but anyway I read this book and it blew me away because it was about this immigrant now when it comes to Lifestyle and things I have to say that Europeans do it really well because it's a very much you know family orientated big life lifestyle it's all about lifestyle in some countries I think they still have a sleep at two o'clock Siesta um which obviously we don't do but maybe that's one of the best things for for your health I don't know it could be look when we're when we're thinking about that and looking at um you know what other people are doing in other countries Australia is different we have a yeah we seem to have a very relaxed lifestyle but we really do we that's the thing well that's the thing is is that an oxymoron to say we have a relaxed relaxed lifestyle when there's so many people under stress right now we have a lot of people with mortgage stress we have a lot of people that are stressed about interest rates going up the environment the the economy you know again this morning I was only watching the news and was like oh we had their Treasurer saying I don't think we we're gonna go into a recession but we're well placed and it's like I've heard that before too yeah so but it's about that mood that we talked about in our last podcast is what is the mood of people right now and if somebody's sitting there listening to this podcast on the train or going home in the car or whatever they do or you're watching us on YouTube and I think the leveler is all the the the judgment is if you're worried about money at any stage during a week then you need to do something because if you're worried about paying the mortgage or you're worried about interest rates going up or if you're worried about paying your gas bill if you're worried about paying your electricity Billy all the school fees all that sort of stuff then that to me is like a red rag to a bull or a big signpost big flashing one you see them you need to do something sit down and look at the situation sit down and look at the situation because that whole thinking then is I don't have enough is not a Prosperity thinking and that's a limiting thinking and we do go into podcasts where we talk about those sorts of things and to me there's trillions of dollars running past your face every single second of the day you just got to grab off a little bit of that so how do we do that so that's part of the challenge we're going to go through is how do we not only maintain our lifestyle and some people need to adjust their lifestyle you know because it's a bit too much of a lifestyle how do you mean well you know it's a bit more too much fun I mean they say only the good that's fun well they must they say Only the Good Die Young so I must be very bad but we want to obviously people want to maintain a reasonable lifestyle but we do need to plan for the future because we will be there and what we do today will determine how good or bad that is and all too often we're seeing people retiring now that are having a pretty ordinary existence also they're just they're just struggling to pay the bills they just got a bit of enough to eat that sort of stuff they're not really doing what they thought that they would do in retirement I think that's what we need to ask people there's the other side of thing too is that you could have too much right Jesus how much is too much is that a great question too much lifestyle no too much not just lifestyle but too much in terms of money because money can create all sorts of opportunities and energy yeah it's an energy but how much is is do you need all that well I'd like to have I asked that question I said you know do you need all that money and they said no I will have you actually thought about what you're going to do with it oh the kids will I'll let the kids worry about it when I die and that was the attitude yeah but like look to me it's you know I've been broken I've been rich and rich is much better than broke you know I'm not saying I said that wrong I said I've been rich I am rich but um I've been broke a few times it's not scary yeah but what's the goal is that is the challenge just lifestyle or do people just really want to be happy because security yeah and happiness and that's to me is if you're happy and you feel secure then it doesn't matter whether you work or you don't work and that sort of because look at Ukraine I mean there were people there who had a lot probably lots of money that had wealth and it's all gone in the instant well it can be it's not like it's a definite you can that doesn't mean you shut the doors and go into into hibernation for the next decade no do and some of those people we've seen a lot of but look it's a sad situation isn't it over there I mean I'm not laughing that's I wasn't laughing at that I was just laughing at a comment that you're liking because I always laugh at you yeah I know that do you know there's a lot of Russians going to Bali really yeah a lot of speakers of the war they're moving they're going to um to Bali I was really sure in the fin review the other day I was reading and they're going there and they've sort of being tech people in this place and they're creating havoc in Bali and Bali was trying to change some laws to not have them there anymore is that propaganda no I was in the financial review it's the financial review doesn't do propaganda does it okay I'm not going to get into that because I'll get into trouble okay but anyway so the challenge is but what what we're talking about is what does a balance and fulfilled lifestyle mean to you now I'm not asking you Janine because I know what you think you're balancing for full lifestyle but I'm asking the people that are listening and watching us what is it what is it right main question and to me it when I read that statement I go immediately my head it's like well I need to be there with my partner and family whatever else it's not meaning just to me you need time with them well it's not I'm not saying about time it's about what do we want not just me okay and because obviously you know we all have a lifestyle you know like your husband it's playing golf every week maybe every day if he could that's what I want you know but some people it's you know family around you know having a big house that every week There's 30 people come on your family and you all just sit down and eat for three hours and yeah roll around in the floor the other three hours but whatever that is but to me I was thinking about you know when we used to do some of the workshops we used to talk to people about doing this big chart you know which was like always lifestylely pictures or pictures of their life that they'd cut out and make as a vision board the vision board that was I'm trying to remember the name and I knew you'd have it but sitting down with your family to do that it's amazing thing and I know you've done it I've done it a few times you just cut pictures out of magazines or whatever else or travel brochures and it's not always about you know an overseas trip or a you know um you know brand new car whatever that is it could be just the you know college or you know going to University for your kids we did that to have a child yeah so that's it's amazing thing to do so to me that's how you start to find out what a balance for fulfilled lifestyle means to you and it could be a symbol for some people it's a symbol a religious symbol because it's that their faith if in that religion or it could be that it is um lots of holidays healthy travel somebody doing yoga on the beach lots of trees and doing nature of environmental things so I would strongly suggest people do one of those um with their with their partner if you're a single person do you know you can do it on your own but in that one I did that one of those as a single person and I put pictures of me being in a family life yeah you know what idea for kids too it's brilliant for them yeah it's brilliant for them because it gets you focused on what you want not what you don't want and all too often we focus on what we don't want in our life you know like well what are we teaching the Next Generation by you know being the example well that's true too and again you know I've done podcasts on you know my generation how we talk to gen Zeds you know I think our generation is just crap our language to gen Z it's giving it's making their life hard yeah I think we need to change that that how we speak to them but that's a whole nother thing so we get down into the challenge and we've the slide we're doing at the moment um here is really about how do we get our money coming through so the challenge we know to have that balanced livestock yep and obviously we've all got an income stream that we have whether it's most of us or most people it's a wage and that's there they've only got one income stream and and when you mean one if it's you know husband and wife or that's two income but to me that's still one yeah it depends what they've designed for their life whether they're at that point of thinking about what you're getting to right here so if you're owning a wise do you dictate how much you get paid or somebody else do that um but a two-way street in my opinion and because part of it's up to you really yeah because you can you can choose where you want to work who you want to work for you can in this current environment people can almost pick their wage at least we've got full employment or what they think and then you can work it with your employer to work out how much more you can earn so that's another thing that is another so it's a mutual relationship there it is it is absolutely but a lot of people don't ask for pay Rises and and do things like that um but the end of the day is we have let's say we have a fixed income which is our wage so we exchange our time for money we do 40 hours 30 hours whatever that is and there's a family a family unit husband and wife or you know two partners should I be woke and just say two people two people um like that uh every now we've got two people in bringing them into a family um and then obviously that income then has got to be distributed to expenses for living for food shelter all the things that you do well pay yourself first and no well that's just you're talking about the next podcast here so stop jumping ahead on me will you the next part is obviously we all if we're earning an income then when we're paying superannuation well this is really how most people do stuff it's I get away some of it goes into superannuation which I don't even see because my employer does that at whatever rate that is 19 11 I never know what it is what's the rate nowadays I think it's 11 now no actually it was ten it was nine for a long time it went up to 9.5 or 10. basically that's it so and from what we know with most households the cash comes in the door in theory what goes into a bank account from your employer what goes into your bank account is what people spend most people spend all of what comes in on most of what comes in and obviously there's only a bit going into our into our compulsory super and very few people look at investing at all they might have a bit of a bank account which builds up a little bit of money but then that funds well that's because a lot of people have got a big mortgage and they're dealing with that but that's a choice yeah it is a choice that is a choice for people to to do that but whatever that is that's you know your mortgage is part of your expenses so it's yeah you know rent it's your mortgage it's close it's makeup It's Entertainment it's everything in there but most people we know still today in Australia we know most people can't live but you know less it's less than three weeks without a wage it's less than three weeks but the majority of people and and I'm always been the thinking if I can't live for six months without having a wage then you've got to have a war chest it's just not good you know and that's the thing is my people don't think about that and then some people say to me well Dale that's great for you to say and it's like well no that's what I've always thought even when I didn't have money you know because people listen to this will know my story um but I've never met anybody that I can't help free up Capital it's just a matter of choice is do you choose to go to always concerts and buy expensive cars and go on holidays blah blah blah or do you choose to help fund your future lifestyle but most people don't get to the investment part of this whole thing and the challenge there so yeah basically the bigger your income stream is but if you're trading your time for money then there's only limit amount of time you've got to in a in a day but also in your life that you can do that with so we're limited to that and obviously we do get a lot of we get a lot of tradies don't we and people like that who going I don't want to be crawling under houses or in ceilings or lifting heavy things you know and they're they're in the 25 30 35 I don't want to do it forever and they they call us and they go can you teach me about the stock market so I don't have to get to 55 and 60 but I'm seeing these older Traders they're just broken yeah you know and then they've got not much of a great lifestyle because their health is so bad so but anyway so do you want to go through this we're going to talk about average weekly wages just to show people the reality but it's not can I just one little thing because it's not just whether the job is doing that to them it's also um you know they there's a lot of so for example a lot of tradies that I'm seeing in the building industry are starting to think well I want to do it for myself not just be building for other people building houses for themselves but how did they do that well that's about knowing knowing what they have to do and knowing how to get the funding and all of that that's true but I'm saying that we do get a lot of people who are people that work on tools basically mainly men um that they see these people that are 55 well some of them I've worked with they've had accidents um and then they have to do something yeah that's what I'm talking about the ones that I want to build for themselves and do developments for themselves they're the smarter ones because they're building their wealth on the side as well yeah um from that point of view but but what we want to go through is really just give people a reality check right do you want to start that one off okay so what you've done here is you've got an average weekly wage a full-time wage that equates to around 93 860 per annum so that's what the ABS says is the average weekly wage full time so people working full-time about eighteen hundred dollars I think a week roughly the RBA then says okay well let's look at all employees so full-time part-time all of that sort of stuff and so their average weekly wage is what 71 552 per annum it's about 22 000 less um if you're not working full-time um which is about 1360 76 dollars a week roughly on that so this is what the ABS is coming out so now let's look at the so people would be earning in theory mostly people here will either be above or below that we're just talking about the average yeah if the average wage is 71 000 per person then they go to retire and if they're thinking well the pension's going to help them to me they're sadly had luck you know because you're going to have a big drop so the single pension is a thousand and sixty four dollars per fortnight or twenty seven thousand dollars how do you go from an average of 71 000 or full-time wage of 93 and what if they didn't own a home like us there's a lot of the divorce rates high so if you end up with a single but why is it the course rate high pressure I think there's a lot of pressure money is the number one reason like why couples break up and I've talked to a few young people you know in their 30s and they're just there you know they've been married you know late 20s got married and always pressured so we're saying at the moment and there's a lot of issues going on and a lot of mental health issues as well as relationship issues but if you don't take away the money worries it's they'd be together and they'd be happy and healthy so how do we do that but a single pension twenty seven thousand dollars nothing that's just look how do you like geez how do you live on that well we're not factoring into that the the discounts that retired people get for gas electricity yeah but that's not registration well you we haven't worked it out so we can't just say it's still not going to be a lot like twenty seven thousand dollars medical Medical's huge the the benefits that they get on the medical side too if you if you spend 200 a week on food how much is that time but if a single person is not going to spend 200 a week on food they might no no they don't have steak and oh geez you know Lobster and yeah it's okay right but the couple's pension is 41 000 so that's a little bit better but it's still an existence in my book sixteen hundred dollars a fortnight so if you're paying a mortgage and oh the couple's pensions gone up is it yeah I thought it was 30 something that's 41 I've got these off the ABS website or whoever the government website is but 41 000 for a couple if you are paying rent then how do you live if you're paying a mortgage then how do you live just on a pension do they get rental assistance on top of that or is that the whole thing well that's what it says on the ABS webs you're asking lots of detail I not like to know I know you like to know detail but anyway that's what I got off but I'm what I'm saying is that I'm highlighting that people are on an existence I couldn't live on 41 000 at all yeah um you know now interesting fact a lot of people think I and I know a lot of people tell me oh you know that's how you're going to retire and they go oh look I've been my superintention so they put the pension as their retirement plan and I keep saying to them I say to these people do you know the pension was never ever intended as a retirement plan yes it was a safety net in case you lived longer than than the average age so that you actually could have some food yeah it's a safety net it was on a retirement plan because when the pension was launched um which was so actually can we something just came to me then okay so was it wasn't people was it yeah was it people deciding that or was it the because the financial industry would have started to grow and then there were financial advisors a lot more financial advisors started to pop out of the woodwork right so has it been the financial advisors that have helped they haven't pushed that put you know yeah and made Industries pushed it everybody's they're all pushing it saying oh well you have the pension you know but we came out with compulsory superannuation back in the mid 80s roughly or roughly mid to late 80s or something I think it was but when the pension was launched it was 60 of the average wage today it's 38 yeah and why I've highlighted this is because when the government brought out the pension back in I think well we've got superannuation no but I understand that but when they bought the pension ad in I think it was the 60s or something like that I can't remember exactly somebody will know that's listening it was a safety net that's it it wasn't a retirement plan so now it's 38 look I remember hearing that and the government actually told people don't worry as part of an election promise we'll take care of you yeah um just you know keep working and you'll be able to retire on a pension and we'll look after you so that that was actually sold to them as yeah they did to me what I'm highlighting this is saying if you're relying on a pension as part of your retirement plan then you need a reality check and you need an attitude adjustment and we need to have a chat because it shouldn't be you shouldn't rely on a pension but hang on a minute there's some people that buy circumstance have got into that situation but that's not the majority yeah you know if you have you know this let's say you're in a car accident blah blah whatever and you get a bit of a bear but nothing much but you can't work or you have oh not just that like you know I mean I remember mum said me down and she showed me these shows and these women and because you're forgetting because you're looking at it from a man's point of view right so that's why I'm here okay because is that well here I had never thought about that right women women didn't even couldn't even get a loan yeah when I was back Friday you know late 60s they started working on the pill they developed the pill and it wasn't until all that came in what are you getting out what I'm saying is women haven't had that long to to actually be able to have their own bank accounts be able to get loans be able to do any Investments so still what are you saying so what I'm saying is the older people who are approaching retirement or in retirement now are in that category no they're not yes they are years ago I was born in the 60s and women I'm talking 50 years ago you know bank accounts back 50 years ago well I mean we're working 50 years my mother was working 50 years ago well I'm just saying my mother had a bank account and people were working I'm not saying they weren't working they were working no but in the 50s and 60s you saw more families with mum looking after the kids weren't weren't working so it was more just bad working so I understand that but they couldn't even get look there was a lot of situations where they wouldn't even get the jobs they wouldn't get the money it was going my mum never had trouble getting jobs jobs I'm talking now this is nothing against your mum but I'm talking about what sort of jobs and how did they pay you know I understand that too women weren't getting paid right honestly I'm not saying women weren't uh were fairly paid back all then you know I'm not saying that but all I'm saying is is people that treat the the pension as a retirement vehicle a sadly they're going to be left behind they're going to be left behind and that's what I'm saying so it doesn't matter whether you're a young girl at 18 just going into and what you're saying is don't settle don't settle for that because you're going to struggle when you hit 60 65 70 whenever you decide to retire you're going to be eating soup a lot yes you know I like soup actually I do like soup but it's really healthy you're going to be making choices that you probably don't want to make exactly because you're not don't have the money coming in so the earlier make that decision you know and I agree with everything that you talked about with you know women back in the 50s 60s and even into the 70s and it's only been more I suppose the last couple of decades women have been fairly and I think you know if you're doing the same job as a man then you paid the same simple there's there's no question about that you know but you know that takes us off the subject so to speaks 500 then agree with you but right now I'm just saying that people need to not think the pensioners I agree with you as a retirement plan so if that's in your head and you're thinking oh well I'll have Supra I might have an investment property and I'll have the pension get pension right out of your head plan to be that's just just you've you're playing oh you wouldn't even qualify for that I don't even qualify well I'll never get a pension in my life you know the government says well Dale you don't need it um but you know to me I would plan that to be but it is good that it's there like I don't want to you know it is on the safety net and to me I treat my superannuation as is is my Play money you know I'll be retiring on on my investments not my superannuation so I've taken it one step further saying well little fun my holidays or you know because you've always been skeptical about super I think Super's crap the way well so it's good but it's crap the way because we're constantly changing the laws on all sorts of other stuff on and I think the way the government set up and the industry run it it's just BS you know it's just it really is BS the way that they run the super scheme because it's more about the Big Industry making more and more more and more money and they're pillaging our super like there's more more and more things coming out what they're allowing to happen is real concern to me because a lot of people's money is in superannuation in the stock market and they're allowing that right I don't trust the government not getting their hands on there on my superannuation I don't trust The Big Industry about getting their hands on my super so I don't I whilst I have a self-managed super fun and I invest through that because I have to because I get the superannuation from a wage going into but my wealth is not in super it and I think that's another step on from what we're talking about with these people with everybody at the moment okay so it's more about can I can I say normal people because I think I'm a little bit I don't think you should use that word more normal okay so they're not normal I don't think you should say every day Australian should I say that every day Australians well I'm allowed to get away with that guys Aussies all right so let's go on I'm gonna talk about we're still talking about the reality so in the reality if you earn over 65 000 you earn more than 50 of all workers that's a scary figure yep okay 50 you know 50 so of all workers and you're only only 65 000 if you earn a hundred thousand dollars then you earn more than 75 of all workers okay okay next step we need to look at if you're going to retire on a 50 000 income because they say you know you with if you retire then you're probably going to be spending about 75 percent of your normal wage they say two-thirds two-thirds or roughly so 65 000 is half of the people okay so fifty thousand dollars is roughly about that give or take a few thousand on that one but assuming a five percent rate of return that means you need a million dollars in cash to get sixty to fifty thousand dollars but obviously there's superannuation in there what you might I'm glad that you put a five percent rate of return in there well I do because that's what the industry even today on the morning show they were you had the people there talking about um Returns on superannuation and things like that and all the assumptions around five percent and it's like well um you know people doing our course can do more than five percent yeah you know you can get five percent dividend your data stocks well that's it I mean the average dividends more now five percent's not a you know a a blindingly High rate of return on your money so you know but you do need a million dollars to have fifty thousand dollars in income coming through okay but to retire on sixty five thousand dollars in income which is what fifty percent of people are retiring on that means you need 1.3 million dollars in cash so how are you going to get that yep so that's what we want to teach people about you know in this podcast and in the next podcaster how are you going to get if you're not thinking about having at least a million dollars now to retire on and but you want that and you want the lifestyle the second question is well then how do you do that and I think I think most people if they don't do it now they're actually aware that they can do it through shares and property most people are aware they can do it most people are aware they can but whether they can whether they actually do it or not is another thing why don't they do it I really don't understand it now you must understand it but I don't understand why they don't do it because why do you because everybody that I know does it everybody you know so you travel in different circles than some people well look I'm just saying that well actually there are two people I know who don't do it yes but most of the people I know do it I know a lot of people that don't do it but even even people who have never thought about buying property in the last I guess you know five years or so I've seen people go out and purchase a property it's just been interesting to watch it has been interesting to watch but again of the day a lot of people who don't do it say um it all looks too hard or um it's actually a lot easier a lot easier than they think you know it's seriously a lot easier yeah yeah look people have um you know Generations gone they were made to be fearful of it a lot of them and I don't know why I think it was the debt the whole debt thinking of debt and um talks they would get in the media they would talk about how people trash places instead of focusing on what makes us amazing percentage like I had some people said no I can't I had I mean there's always a about the negative I know that's what I mean it's this crap that comes out of it people didn't have the ability to do the research that they can today yeah I had somebody the other week said to me you know I'll say yeah you get an investment probably hold on investment property I go why not all people trash your house I said well a lot of BS yep and I'm like well no they do this and you got all the trouble with tenants I said mate I've been renting places forever I've never had anybody ever trash a house that I've had an investment any investment properties never and he can get insurance for it anyway yeah just in case and you know I've never had anything you've got a really good idea about the point zero zero zero something over a percent of people but just that you know the current affairs of this world go well there's landlords they had the house has been trashed and blah blah blah there's very few people so you probably bought the house in the wrong area probably now a lot of a big myth that people have is that I don't earn enough and they say I don't earn enough to invest that's another lot of BS true to me and to me what you earn doesn't necessarily mean you'll create well so some of the richest people or sorry the people are getting paid the most yep are the poorest people I've seen well when you say poor in terms of their ability to save you mean yeah invest yeah not they're spending some of the people with the highest wages that I've seen are just terrible at this stuff and people go how they're the Smart Ones because they're making a lot of money no they've just got a University degree that allows them to be paid two three four five hundred thousand dollars doesn't mean they're wealthy because some of those people just spend too much true um and I think you know I've said that on this podcast before you know back in the 90s I had this very very successful surgeon in my in my office in the early 90s I said why are you here because he was earning I think he was earning somewhere around half a million dollars a year plus in that sort of bracket and that's a lot in those days a lot in those days I said why are you here you know I'm going to help you work out what your financial situation is and help you retire and everything else he goes Dale he said I can't afford to not work I said how any guys my wife spends too much my kids spend too much and I said well you have to add some decisions to make don't you because if you want to retire so but I've met people on pensions that are saving and investing yeah you know amazing and my mum used to do that and I know your mum used to save and you know she was a good budget and taught you a lot of financial stuff but I've seen a lot of people who are on low incomes create big investment portfolios because you don't have all the of having to have a Ferrari or Gucci suits and you know Rolex watches and stuff like that to try and keep up with the Joneses so if you think that you don't earn enough so that that will allow you to build wealth and invest then that's another thing we need to have a chat about seriously yeah it's another reason it is I never met anybody out of seeing 100 people in my office year in year out I never met anybody we I couldn't help them free up Capital to invest and you know people go but you know you don't know my lifestyle and I but all I'm saying is it needs to for some people is that tough decisions need to be made all exactly where you're putting your money but once we get the budgeting sorting out and the money allocation sorting out creating wealth is easy for everybody and again it's just about making the right decisions too often people go okay I'll just go and buy another Magnum at the shop on a six-pack of beer and not forget about it you know drama Sorrows it might be in my makeup I don't know you're not going to help the stomach I know you like the beer and Magnums that wasn't about me the amount you have has no relating well now you earn has no relation to creating wealth it's how you approach your wealth creation that does and that's really what we're trying to say to people and you know to me I want to go into now what the objective is a little bit more so we just talked a bit about the reality and what people are doing and how they shouldn't be relying on the pension and all that sort of stuff so yeah you want to start taking us through the object the objective that people should be having yeah so the objective is to accumulate enough assets that will provide sufficient income for you in retirement and all the way along have a nice lifestyle that's right and have that balanced lifestyle that we talked about before so that you're not starving yourself just so you can retire it's about having that you know a a form of Lifestyle now but also planning for that future lifestyle yeah I think that one of the things that really hit some of the students who do our courses is when we talk about them actually setting their goals for their their future and where they want to be and actually having a vision of that life and then writing it down you have documenting it yeah to most the people or in your opinion do you think people um under do what they think they can do or overdo it depends on the person because we know we're a bit of a balanced answer isn't it well we know that differs because I mean everybody has a different personality do you think they generally women don't don't sort of stretch themselves enough or they you know they think oh well I'm never going to get to there so I want to go set my goals here I know a lot of people who do stretch themselves quite a lot in terms of that are you going to be very politically um I think I think if people were raised with that mindset at a younger age and this is what we need to be thinking about for current Generations you know in their 20s in their teens to be actually preparing them and helping them to set that mindset up so that they know what's possible but it's not measured by what we're saying today do you know what I'm saying like everything that we're saying here is great but I'm talking from a parent's point of view whatever you think is right in your mind is probably not you know it might be 60 right you know what I'm saying but it it's just your mindset your way of looking at things it may help them but you still need to gather things from around you and information from around you to help that young person build the way they're going to look at things I'll let you get away with that that's fine at the end of the day it's often people don't start because they don't know where or how you know and to me once you learn where and how it's easy well these days with so much information online all you have to do is go and get a couple of calculators you do from the moneysmart website and any web Financial website yeah and and just start running some numbers like as simple as that's this good starting point yesterday I was on LinkedIn because we have to have LinkedIn and we're posting stuff one of our experts is obviously one of my LinkedIn connections um a guy called Aaron Ani who's a money coach he's written a book called Cash uncomplicated great book really really good book he had a post and he goes when do you think we should start teaching children about money and we had he had other people saying uh when they start you know Primary School Etc or when they're doing this and and I just made the comment I said during pregnancy [Laughter] because I know when you know with with your baby you're playing music and you're doing awesome things talking to you baby perfect time to start get them to have it right then and as soon as the soon as you have that baby they should be learning about money well when the child's born all the money goes into a bank account so from that point on and then there's a weekly amount that's going into an account correct just any amount it doesn't matter what it is it's just something so then when the child gets to an age where they can understand then you can explain to them what you've actually created for them and what you want them to keep doing perfect see you already did it so you did what I said that's right I mean he came back with laugh you know laughing and but he thought was a good idea because it is to me it's like when do you start yesterday is the answer when they get to an age where they can start talking then you can get little cash registers and all sorts of things and Banks bank accounts you know what we need to teach them have a bank and then show them going to the bank to make a deposit just make a game out of it when they're really little all right so anyway the objective is to accumulate enough assets that we're going to have a good retirement pretty much so yeah so here's our chart there we're looking at the incomes so the income the objective is your income is going to be coming from your superannuation and your Investments and the people who are seeing this label notice we don't have the pension on there or the government pension we only have superannuation and Investments yeah because that's then going to fund your lifestyle and a fund fund your expenses now the blue circle in the middle which is your income the goal is to make that big that Circle as big as you possibly can you know and to get that as big as a possibly can that means you need to have your investments in your super as big as you possibly can which means we need to plan for all of that right because that way I would rather have more money to fund my expenses and my lifestyle than I actually need it's we plan to overshoot and undershoot so do you think people should have more money coming from their super or more money coming from Investments me personally Investments me too because I just do not trust the government what they're going to do with super um and I think it was one between I think 1990 and 2000 I think there was like a thousand changes to Super okay they're constantly making changes to Super now they're talking about taxing super again if you've got more than two million dollars or whatever it is they're gonna raise the tax on super but then they tell you hey they hate hate the pension because they've got to keep funding the pension I mean the the so the amount of budget that goes into social welfare is huge and you think the government will be trying to encourage more people to be self-sufficient you would in retirement because it would drop that but then um I don't know I'd rather be self-sufficient and that's just me and I know it's just not going to say just me I know there's a lot of people like me because you're like me like that because I don't want to have to be relying on the government for anything ever in my whole life and I never have you know other than when I was you know young and you know we grew up on that pension because you know people know my story if you don't keep listening to podcasts you'll pick it up in one of them but I don't care anybody for my lifestyle yeah that's what I'm talking about so so super is going to be part of it but when people are sitting down to look at how much they can retire on people are thinking about their super and thinking what that will be worth and that's one side of it I don't have a problem with that the tax benefits are pretty good in terms it is but how many times have you heard retirees going like the government well you mentioned in other podcasts remember in 2007 right where government said if you want to sell an investment party put it put it into your superannuation you can do that and there's no penalties and we'll let you know it was before the market just before the GFC and that just screwed a whole lot everybody's didn't it didn't it because the government encouraged them to do that and then they they really shot their superannuation down they didn't shoot the superannuation down it was the Cycles in the market that were going to happen which the government would have had to have some idea about that was coming but not only that the fact that we allow hedge funds and all sorts of big funds to come in and short our Market yep that's knowing that people have their money in superannuation to me is just completely wrong correct that's why I don't trust the government I don't care who's in government whether they're liberal laborer or Clive Palmer or Pauline Hanson or you know Zoe the clown yeah whoever's in government I don't trust them because there's a whole lot of reasons I mean I think there's a lot of people in government who are trying to do the right thing and do some great things for this country so I'm and they must work extremely hard and not necessarily get the kudos for what they're doing so it's never one-sided and I wouldn't like to make a generalization we generally know the most the masses are always wrong I just said whatever you over generalized it but we do know the masses are generally wrong so whatever the masses are going with with whatever the wave is at the time right which is generally led by Propaganda and Bs but anyway that's a whole nother podcast so the golden rules to creating wealth there's even my first book yeah spend less than you earn yeah so so these came out I put those in my first book how to beat their managed funds by 20 that's a simple one that's a simple one so invest wisely invest wisely we gotta talk about that leave it alone and we're gonna talk about that as well don't touch I know people people I really meet people that do all three sometimes they might do one but they're generally getting Investments actually helps you to leave it alone particularly property I think that's why property can be so good for people shares they can still sell them they you know it's quite liquid so they can at any moment decide to sell some shares and take the cash whereas they do with an investment property it's not that easy they're more likely to keep building it so while Shares are really good for like starting out and helping you generate that extra income and building your wealth and then you can fund the property with that yeah talk a bit about the Temptations there for a lot of people to see a lot of that's in the second podcast we're going to talk about how to do things and set it all up and work on that I'm just talking about things like it's like it's like superannuation or with the covid thing and the government said you can take ten thousand dollars now and ten thousand dollars another ten thousand if you can I thought it was the most poor decision the government ever did because I let anybody do that yeah and to me if you lost your job I understand that one if you were going to lose your house because you didn't you weren't working yeah to me I understand that but if you're working and you're getting income and just be able to take 10 grand out of your super I thought that was a crap decision for the government because it the ramification of the compounding effect on that on somebody's assignment is huge and we'll go into some of that and show people some of that sort of data so again spend less than you in golden rule number one Golden Rule two best wise than gold well number three leave it alone let it grow and compound because as Einstein said that's the fourth one seventh eighth wonder of the world or whatever it is yeah thinking about that spending less than your you earn you know there was a while a stage there where the credit card companies were coming out and offering people all these incentives which they still do to an extent but they're not allowed to do it in the same way that they used to do it and so people were getting you know bigger and bigger credit card yeah so it's about thinking about what spend less than you earn will think seriously about how big that limit on your credit card should be given what you're earning yeah and I mean I know the statistic you know the average Australian has 2.5 credit cards personal ones yep you know some people have four and five credit cards wow I got one me too you know and it's like and that's the thing is this is leads into the statement that we've got um here it's like well you know there's one one of the quotes we've said you know um you know what a wise man does in the start a full does in the end you know and people get multiple credit cards and they realize that's making them broke yes so but what do rich people do what people who are financially secure do they have one credit card and this quote is a if a guy was called um Albert e n Gray and his quote it's it's from the book the common denominator of success and I love this book it's not a big book and it's only one of the books I've read not like a book I've read um it's beautiful yeah I think you gave that to me it's called the common denominator of success and it's it's it's an oldish book but it's brilliant if you haven't I've still got it I've got the I've got an actual print out of it as well because I kept it handy because you know okay I think I gave the book that I got away to someone else and thought I wanted to keep bits of it so I kept bits of copies of bits of it that were really important yeah and I know we see lots of quotes and people re-quoting other quotes of the same as sort of an old one but this one as I said it's probably out of the 40s or 50s and Albert gray says the secret of success of every man or should we say person nowadays um or non-gender bindings specific stuff like that yep that's respectful that's respectful yes everybody's entitled to their life okay every man someone knocks on the same man anymore okay every the success The Secret of success of every man who has ever been successful lies in the fact that he formed the habit of doing things that failures don't like to do and it's such a powerful statement in that not everybody likes the budget not everybody wants to make better investing decisions not everybody wants to go to work and they make different decisions but then they can't have expectations if they're making decisions that aren't getting them to where they'd like to be if they're making those decisions to not go to work or they're making decisions to go and you know get a housing loan that's way above what they can really afford or get a car that they shouldn't really be getting because they can't afford or a second or third car that they shouldn't and a motorbike and a boat and a jet ski and go on overseas holiday you know the successful person does what the others don't do and this is one of those other quotes well I used to do say all the time you know I will do today where that is one so I can play tomorrow where others can't and I've always lived my life like that and people go use that to restrict your lifestyle I went no it does the opposite just completely the opposite I've always had a great lifestyle and money that I needed but I was always making sure that I was doing what others didn't want to do because then I got what others didn't have you know that's good I mean you have a lot of really important things that your mum taught you as well how much is my mum but it was also you knew had a brilliant mum too helping that sort of stuff and I think it starts from that early age and that's what I'm saying yeah you start while you're pregnant that's the way you should be doing it in my book but it's also about having the right mentors and people around you so you know don't get financial advice from somebody who has less money than you like that's just a dirt that makes sense yeah that is really important I I searched high and low to find people who are doing certain things in my 20s and I can tell you that I I spent I ended up I think there was ten thousand dollars that I blew in the process of that because I got with some the wrong group a couple of people you know companies that were just the wrong but you just have to you have to learn from that write it off and move on because you don't know it when you're that age you don't know the questions to ask which is why some of the stuff that's online now can be good but it also when I was thinking about it the other day with this stuff from chat GPT and I was reading some of the comments that come back sometimes when you type things in I'm thinking gosh if people are believing that were people are all going to be of the same you know mindset and thinking of that that's actually factual because it's coming from something that looks factual because it's written down we believe it basically that's right and I thought oh my goodness you know you so you just have to in the end I actually got opinions from multiple sources to make sure that I had something that I thought was then incredible you've got to balance it out don't you yeah but if you go to the ASX shareholder surveys which you can go to the ASX website they do it every three or four years I think it is there's a section there and I don't have it in front of me so I'm just quoting from memory but you know they always go where do you get your financial advice from and most people whether it's family or friends or chat forums and stuff like that yeah all ship places to get financial advice from unless your family are multi-millionaires or yeah I was shocked talking to some 20 20 somethings just recently and hearing that they're getting this information from and I'm not going to mention the website because it's giving it credit but from some of those websites that you and I both we would laugh at them I say probably yeah because people are putting opinions and giving information there and then other people are reading that but it takes time having you know watching the the chat that appears to realize that a lot of that stuff is contrived it is and it's amazing just be careful where you get your information or the blind leading the blind it is the blind leader and that's where a lot of that stuff why I don't like chat forms is just simply because I know people that are very successful they don't have they don't even want to be bothered with chat forms because they're dealing with people that are not going to raise them up or um not to teach them or stimulate them it's going to be the opposite it's the they want to suck their brain dry and you'll need myself have experienced that numerous times when we've met people on the street or barbecues or functions they're just trying to pull your brain dry and then you see them next time they've done nothing so you just shut up you just go what do you well what do you do darling Oh people make money or how do you do that oh we've got an education company oh that's okay and you walk away because you just don't want to get into it with people but to me no I mean you don't walk away at the start but you're saying you're polite and everything else but you don't get into lots of detail because you know 90 unless they start asking and if they really can then you work with them like I had a coffee a week ago with a young guy who I met a year ago and you know and he was quite Keen of in stuff and I said look if you know if you ever wanna take me out for coffee I'm happy to you know successful people always have a coffee with you and he Rings me out man he said I want to take you out for coffee and I knew what he meant and we talked about a few things and he lost a quarter of a million dollars on bitcoin and all sorts of other stuff struggling with his relationship blah blah got married house the whole bit so it was just about having a coffee with him for an hour hour and a half two hours anger was I coming by but just helping him saying well it might look black now but this is how you're going to get through it and you know he went away much more boy than whatever else he wasn't asking me to teach him how to do that he said look I'm going to do your course probably in a few months I've got to save up some money again but the point was that he actually took the opportunity to find somebody who could help right not somebody who is you know in the same basically if you know what I mean he's doing something positive to get himself out of it rather than correct feeling stuck in it yeah and so that's the thing you need to do so if you're not where you want to be find somebody who is and then talk to them and they'll find out and I ask them for coffee and I'm not expecting everybody there no ask you for email me it's not going to have coffee with a thousand people okay but if the objective is to grow your retirement fund and Investments to a point so they replace the income from your job how do we do that so that's really where that's a good one that's really the next part that we've got to go to so to me is wouldn't it be nice to work because you like to work not because you have to work exactly if you're making money out of all your Investments and everything else let's bring all your income in and you don't need to work that's great but you might want to work and some people do that exactly and so I agree so how do we do so areas to invest now we need to invest in growth assets that generate income because if people read my first book out of it they manage funds by 20 you know I treat to me a quality investment is something that brings Capital Growth and income if it doesn't do both then somebody else is making the money like your bank interest you get interest from your bank account but the bank's making the capital surprises me how young people in their teens I ask questions I still don't but even when once they get to their teens they don't know that's what's happening no they don't because they're not taught so they're not taught it's ridiculous that school's not explaining that they don't that's why we wanted to teach kids in while the mum's Pregnant start teaching them because you've got to get into that habit because kids don't know how to use their credit cards or loans that they don't understand compounding interest all that sort of stuff so we've got to invest in growth assets that generate income so growth meaning capital gain that grows from what you paid for it to what it goes to a higher price like shares we can also do investment property both residential and Commercial investment property yeah actually commercial is an interesting one because commercial has a different cycle to presidential and I've spoken to quite a few people actually who are doing the commercial side of things now yeah and it's not as hard as what one might think and it can actually be really lucrative if you get some of the right ideas I mean one of the guys we've been talking with in Australia a guy called Steve police he does commercial property help people with all of that and his interviews that we've had a brilliant policy policy that's it Steve policy sorry Steve palisi so I'm great so if you haven't seen him on talking moth.com head over to dorkingwealth.com you can get a free seven-day trial if you're not uh haven't got the membership yet so they had watched the videos from that it can also win a prize like we yeah I really I really enjoyed the interviews with him because it was just a different perspective and a lot of detail in the in the discussion as well about what to look for what there is yeah I also brought down royalties and other passive in income stream because you might have things like websites that you're a part of that you get clips of people buying things and it could be yeah what do they call them not loyalty programs and all sorts there's other ones that um you know you see people on YouTube that they create a YouTube video and they've got links and they'll get money from Amazon if somebody buys that product or they'll get a clip from somewhere so that's what I put other passive income streams into it because back nine years ago when we did this yeah you couldn't do that and they weren't really around back about nine years ago so royalties could be you might have written a book uh it's an ebook and you're selling it through Apple Books or Amazon books and you might be getting a bit of a royalty out of that one so they're sort of need to do but obviously we need to invest in assets to grow and obviously a business shares an investment of properties yep do that but royalties and everything else the bigger the more royalties you get they can grow as well see to me this is just really simple you can keep it as simple or as make it as complicated as you like well you can I want to go through a couple more slides here in one of these are slides I forgot to put my glasses on these actually came from the moneysmart.gov.eu website which is Essex website it's the consumer part of Asics website it's called moneysmart.gov dot a u um this is how to invest choose your Investments so you'll see that on your screen if you're watching the video on YouTube so you are listening to the podcast head over to YouTube and type in walked within TV and you'll see this podcast but if Asic talks about their moneysmart says uh defensive Investments are lower risk Investments they need to provide income and protect Capital invested defensive Investments include cash and fixed interest Investments and they're typically used to meet short-term financial goals up to two years and diversify a portfolio do you want to go through both the two areas that they're talking about well cash on it is really obvious one isn't it so it talks about here that includes bank accounts and high interest savings accounts and term deposits most young people as they're saving their parents will you hope if introduced them to looking for higher interest rates and looking for term deposits used to protect wealth and diversify our portfolio I don't know I don't know about that cash is just there on the side you know and look waiting for an investment that's what most people do they putting their money in their cash or they put it into a term deposit because they don't know what to do with investment that's right so this is sort of about it's saying the average return for cash over the last 10 years is three percent per year the risk is very low and the time frame they're saying short term zero to three years yeah so young people and a lot of retirees will put their money into Cash they would but if I had a fair chunk of money in cash um I want to put that somewhere else that's going to get a better return like even just you know in the bank you're going to get not the bank buying the bank you're going to get a better return than being in the bank exactly and because the fixed interest at same which is turn deposits to benches Capital nights bonds government bonds corporate bonds Yep they're not going to give you a great Returns the fixed interest is it's not like you can sort of think well you know what cash is Cash is really the simplest it is form of investment if we're going to look at it like that it's not just about defense if it's about what's simple for people so it's cash is something people can understand when we've talked to people about um you know investing with us we've talked about cash and shares and it's very easy for people to understand but we've seen portfolios that have a huge mix of different assets that when you ask the person do you actually understand what that is and they can't tell you so somebody's actually put them into those products without maybe they've explained it and the person that wasn't able to absorb it or but like I would say you know years ago when um it's not so much now because I think the the industry's changed a lot but in terms of what people what if financial advisors are doing much much better I mean some great financial advisors out there but can come somebody create wealth from basically fixed interest or cash products no because you can see that over the long term what the graph looks like and it's really flat because inflation's going to be sitting between three and four percent so you're really the only way that could change is if you had experience like what occurred I think it was in the was it the 80s or early 90s where where the cash rate just took off like yeah that was the 90s which doesn't happen often and which doesn't happen often but you know for short periods of time cash is okay but you'd need it in growth assets and that's really why I brought this up because it is from the Essex money smart website the next one shows he talks about Asic talks about growth Investments and these it says growth Investments are higher risk and offer higher potential return compared to defensive Investments they aim to give Capital Growth and some provide income for example dividends for shares or rent for property but the price of growth Investments can be volatile over short periods of time so yeah so what this property property less so obviously than shares but depends on the shares that you're looking at but you and I both know that the reason they're saying this is to protect people because they know that at times there are big plunges in the market whether it's property or shares that will happen at some point so the same property gets you on average 6.3 per year over the last 10 years and the risk is medium to high yep oh I would have thought it'd been low to medium so did I meet him to hide time frame at least five years and I would agree with that shares it's saying 6.5 is 0.2 percent higher for Australian shares they're saying the risk is high but see they've put property in one basket and that's what I guess they they can only well like they can but I did um I guess property should be broken down into different groups so that people can say well what is the the medium to high and what is the medium risking property Etc but they put shares down as higher risk and I don't agree with that the top 20 shares aren't high risk not in the top 50 on high risk I'd say hi but it depends what high risk means because low risk means that you your capital is secure well not necessarily but in a financial crisis is your cash going to be secure if there are banks closing Etc that's well the government have got um that strategy to protect people's money so that's their buffer but with property property prices can plunge significantly I mean we saw how much property prices fell during the GFC we did we saw when covert hit what happened to property prices there were pullbacks all the way along not to the degree that the media said was going to occur but so therefore that makes it I think more medium like you say yeah so this all that these things I've just quoted from or Jenny and I've quoted from us from moneysmart.gov.eu forward slash how to invest forward slash choose your Investments actually you keep skipping ahead and I want to pull you back again okay so would you say that owning an investment property now this is really I don't want to be General about it let's say that you do your research and you buy a house in an area that is you've done the research says the areas due to grow but it's not a lower socio-economic area it's not the high end it's somewhere in the middle yeah and let's say that it's a certain distance from any CBD like the prescribed distance in terms of if you're buying property 15K well more than that because these days people under 20 case so 30 okay up to 30k could be 30 K's out from this one covering Frankston in Melbourne are we what it you know whatever but we're not saying this bad I'm just saying but but then you go and find the sub suburbs that are really good okay solids performed well over time so what I'm getting at is if somebody goes and buys an investment property and they've done their research and they find it in a good area maybe they've used a buyer's Advocate to help them find a good one and they've found that okay this is a really good one it's for investment yep compared to someone who goes and buys a house in an area where they can afford not necessarily in that range maybe they've gone out further maybe they're in that zone it doesn't really matter so what's higher risk one that you're actually buying for yourself to live in or one that you're actually investing in that you've done your research on buying a home to live in yep and why is that every time because you got no help that's right you know if you're buying investment property if you're buying it in an average suburb in you know average growth areas with you know now we've never talked about this in this way but the reason I want to do that is because you have talked about Always by the investment not the one totally I was only talking about the other day but we've never put it this way to people before about looking at what they say about property in terms of the risk of buying the asset and then it depends what you've actually bought the property for as to this is what you and I are saying is now they say that buying your own home the other week about gen Zeds you know they're all being pushed by Our Generation Yeah by a home that's right and they're buying out in the sticks because that's where they can afford and I'm going that's just dumb yep buy an investment property have the tenant the tax man pay for your house and then live where you want to live don't live in the sticks because you don't want you have to travel an hour and a half to get to work on a train yes you know live where you want to live and buy an investment property have the 10 in the tax man pay for it that what I've been wishing now high risk investment property would be in those mining areas we saw well they're huge spikes in prices for those and then massive Falls where the some of the properties were being sold at 10 of what they were always going to get selling in the peak developers doing that sort of stuff so for me I guess what I'm just trying to highlight is they've said medium to high for property which you know it's fair to say I think that because it depends on where you're buying the property and but it could be it could be anything you were saying low it could be low couldn't it depending on the type of property you just buy and everything is is what I was saying on my podcast the other week I'm saying if you worry about your mortgage then there's something wrong you haven't set yourself up properly and I know that sounds can sound mean and uncaring and I don't mean to be like that but to me is we all have choices of how much we borrow and when we do buy the house and how big the house is or where the house is yeah how much our loan repayment is and then also we need to make decisions when we do get the loaners well what if interest rates go up what are we factoring in ourselves so there's a lot of variables in all of that but I've never once in my whole life ever been worried about paying my mortgage never because yeah so ultimately you want people to get to that point where they really they're putting words under the pump to buy a home that they can't afford in an area they don't really want to be in it's just just dumb they should be buying investment properties look I'm sure a lot of parents wouldn't be putting that pressure on them to do that Society is it'd be more it'd be more the individuals wanting it's about the people that work having a standard of what they want their friends are doing it to them but look at what you and I saw before the GFC hit we saw all those young people buying those massive Mansions correct that was high risk that was high risk wasn't it but even the media do all the time you've got to buy home you know gen Z's can't buy a home because although the affordability for Gen Z home affordability is going through blah blah blah and the list goes on and the younger people are going oh I've got to buy a house now otherwise I'll miss out um I wonder how you know if people sat and did the numbers right so so they went and bought an investment property instead of their own home they look at get someone to look at their tax position at the end of it and then think okay at the end of all this I'm going to have an extra whatever it is 10 000 a year or whatever the money is that's coming back to them what can I do with that 10K that's going to give me the edge and then they go and put that in the stock market um the money that they get back we're going to talk about all that sort of stuff so that's going to be that would be an interesting exercise we're not we're going through a similar one aren't we yeah number two so it's exciting now another thing from moneysmart because we're not near the end of this podcast but I'll look with the moneysmart website there's heaps of stuff and I brought up their budget compound interest calculator and it's pretty good to play with and I put in there that if you started with ten thousand dollars and you put one thousand dollars away every single month for 30 years and you've got a rate of return of six percent on that which you can get just by buying shares easily because they've already you know they've already said that on the other one the result is you have a million dollars in 30 years yep it's for ten thousand dollars starting and one thousand dollars each month for 30 years you end up with a million dollars now obviously six percent if inflation's at three to four it's eating up half of that so you've got the spending power of half a million but you're gonna be able to retire yeah not hard to do a lot of people can put ten thousand dollars into an account and then put a thousand dollars away every single month if they try hard but this is what you can achieve but I only bought this up as an example for people to go and see the calculator moneysmart.gov dot a u forward slash budgeting forward slash compound interest calculator or just type in Essex compound interest calculator will come up and plug some figures in and see what you can do actually I'm glad you said it like it's just an example because in 30 years the you what you can retire on today maybe half a million to a million depending on what you think your spending is going to be but in 30 years time it could be you know one million to three million I don't know but it's just about playing for it to give you the reality of what what you could actually be doing so to me I think people should go to that moneysmart website and have a good look at it because at the end of the day we need to go write down where we want to be so if you say I want a million dollars in retirement in let's say a bank account yep earning five percent well then we need to step up their back or how you're going to get that and that's really all we're saying here so what we're talking about with that moneysmart website and all the data that we've shown people is where's the reality check so do you reality check now where am I today how much money have I got in the bank what's my wage what's my likelihood how long am I going to be likely working for because generally people say like I mean I know when I was like 19 20 I was retiring at 30. well actually no 25 and then my 25 said I'm going to retire at 30 when I was at 30 I'll go now I'm going to retire at 35. well I sort of retired about 39 roughly but I did miss my first ones yeah at the end of the day it's who cares as long as you're moving forward I mean how your things happen in your life you get married things you know you buy houses you do all sorts of stuff but at the end of the day as long as you've got that plan so it's about looking at where are you today where would you like to be and then reverse engineer all that yeah and start and that's some of the stuff we're going to do on our next podcast or podcast two fantastic which is really exciting with the data we've got there and how we're going to show you how to do get that the objective that we talked about in this podcast because I think no we don't want to we're going to finish this podcast up we don't want to overload them too much I don't want to overload everybody so again if you are listening to us on an audio podcast on whether it's iTunes or whatever else you can head over to YouTube typing wealth within TV and you'll be able to bring up this podcast as a video you'll see all the slides we've just gone through and you'll see all the websites that we've talked about so you can go to them yourself and I suggest you do that to do the research if you do want a copy of my book my first one is still for free you just got to pay the shipping head over to wealthwithin.com and you'll be able to get how to beat the managed funds by 20 which goes through the three laws of wealth creation and talks about the stock market and how you can do what we're going to talk about next week or on the next podcast so if you haven't got that get it if you have got it by the second book which is called accelerate your well and if people are interested in the stock market give our team a call when you can do our beginner course will write through to our diploma course and learn how to get more than five and six percent which is what the industry talk about it's not that hard to do that you know it's just about getting started anything else you want to add to that before I sign off um no apart from the fact that you know we we just really want to help people get to where they want to go and it's so important for them to it doesn't matter where you are you know and what where you're up to with things just get started let's get started perfect that was great last words okay well you've been listening to talking wealth with Janine Cox senior analyst here at wealthwithin and I'm Doug Gill I'm the chief unless here at wealth Within take care everybody and we'll talk to you on the next podcast bye-bye [Music] thank you

Channel: Wealth Within

Views: 1,793

Keywords: how to build wealth, wealth mastery, how to build wealth 2023, golden rules to success, master your finances, rules for investing, building assets for retirement, comfortable retirement, building wealth, dale gillham, janine cox, wealth within, wealth within tv, wealth within live, australian stock market show, 5 golden rules for investing, building wealth in your 40s, building wealth with real estate

Id: GIVZUsjKD54

Length: 76min 42sec (4602 seconds)

Published: Mon Apr 17 2023