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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.
I think it's been a year, so it is a new year.
Wow, has it been that long?
I think so.
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?
Yeah?
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.
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
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?
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 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 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.
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 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?
Well?
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 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 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 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'.
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.
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 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.
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.
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?
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
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 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.
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 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.
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 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 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 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, 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. 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, for example, the bank that they are representing that kind of thing.
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
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.
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 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 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 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 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.
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 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.
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 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 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 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.
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 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.
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 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 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 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, you know it maybe two million dollars that you're paying off.
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?
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 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 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 to choose shares that they think may or they might do well if they're not have any expertise in these areas.
I just want to jump in.
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 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.
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 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 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.
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.
That we have.
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, 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.
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.
I love this.
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.
So I'm not going to rob a bank.
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.
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, 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 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.
Yeah, you know what I mean exactly? Well, can I just it's Sam? Can I Sam? How are you? Sam?
Yeah?
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.
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 that's a good thing or.
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.
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 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, 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.
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 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 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 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.
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?
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 and invest in it, invest in it?
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.
He's been bankrupt several times. They could be taking Warren Buffett's to financial advice over Trump's any day of the week.
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.
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 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 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.
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?
Now?
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 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 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.
Do you know what though, Amanda, they're both in Australia and their superannuation schemes is so much better over Yes, I know.
Well that's another topic, isn't it altogether? Yeah? It is.
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 that grow over the next thirty forty years for them, brilliant.
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.
These Skyline straight away exactly what.
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.
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.
See the damn can want sand.
Wheels, can't be emo.
There this person the.
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?
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 with no interests, with no interest.
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 when maybe stretching yourself a little bit?
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?
Yeah, yeah, yeah, So I.
Assume that they've done the mouth for you do show you what the rental yield would be on that.
We haven't gone quite there by the system.
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 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 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 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.
Cheers Michael, thank you. I hope that helps.
Well.
What about over over capitalizing, over investing in a property and then expecting to get that money back.
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,
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, you know, million dollar house is going to be worth three million dollars in the next whatever X number of years?
You know, I mean to haven't people always say that and they always go well.
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 that off, but I don't want to get into about I'll get beat up out there.
No New Zealand is lose it when you start talking about capital gains text one of the last countries in the OECD.
To do that.
Hi Janine, Oh Hi, how's it going? What's your question?
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 keeping it in Australia's which.
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 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 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 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.
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.
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, 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 you see that.
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.
Fixed or flight on a mortgage.
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 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.
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.
But Amanda, you did want to follow up with that Ossie superannuation question.
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 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.
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.
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.
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.
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 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.
Yeah.
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.
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?
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
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.
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.
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