Friends With Money

Australians have $1.5 trillion stashed away in deposit accounts, but are we losing out by settling for subpar savings rates? This week on the Friends With Money podcast, Money’s Tom Watson is joined by Rachel Wastell, personal finance expert at Mozo, to chat about setting yourself up for savings success. Have banks passed on cash rate hikes to savers? What are the highest savings account rates around? Why are some savers reluctant to switch banks? How can you choose an account that suits your needs? How safe is money in the bank? **Clarification: The Financial Claims Scheme (referenced in this episode) covers deposits of up to $250,000 per account holder, per ADI. For more information visit APRA’s Financial Claims Scheme hub. #friendswithmoney #tomwatson #rachelwastell #savings Listen on Apple Podcasts Listen on Google Podcasts Listen on Spotify Money Website YouTube Podcast Playlist Email Us: [email protected]

Ready to build wealth but unsure how to begin? Investing in stocks is a great way to jumpstart your financial future. Thanks to new online platforms and mobile apps, trading is more accessible than ever. This week on the Friends With Money podcast, Money's Michelle Baltazar explores the world of stock investing with Craig Keary, CEO of SelfWealth. They tackle common questions like: What does a typical investment portfolio look like? How much money do I need to start investing? What is a HIN (Holder Identification Number) and why is it important? What are the biggest misconceptions people have about investing? #friendswithmoney #michellebaltazar #craigkeary #investing Listen on Apple Podcasts Listen on Google Podcasts Listen on Spotify Money Website YouTube Podcast Playlist Email Us: [email protected]

If you want to know how to make and invest lots of money, one of the best ways is to learn from someone who built their fortune and became a billionaire. In this special edition of the Friends With Money Podcast, Money's Michelle Baltazar chats with Ken Fisher, the billionaire founder and executive chair of Fisher Investments, about the best way to build your financial future. • What's the best way to start investing?• Think globally• Will there be a recession? @FisherInvestAU @KennethLFisher #friendswithmoney #billionaire #advice #michellebaltazar #kenfisher Listen on Apple Podcasts Listen on Google Podcasts Listen on Spotify Money Website YouTube Podcast Playlist Email Us: [email protected]

Australia's sharemarket may be dominated by a handful of large miners and banks, but there are plenty of opportunities beyond the heavyweights.On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jamie Hannah, deputy head of investments and capital markets at VanEck, to discuss the risks and rewards offered with small caps and mid caps.00:00 Introduction01:17 What are small caps and mid caps?03:33 Behavioural differences05:07 The mid cap sweet spot06:18 How have small and mid caps performed?08:36 The investment case for smaller companies11:21 How much should investors allocate to small and mid caps?13:19 The key risks of investing in smaller companies15:30 Options for gaining exposure to small and mid caps16:31 Local and international ETF opportunities19:25 Conclusion#friendswithmoney #tomwatson #jamiehannah #investing #smallcaps #midcapsPodcast Links:Listen on Apple PodcastsListen on SpotifyMoney WebsiteYouTube Podcast PlaylistEmail Us: [email protected] stories like this in our newsletter: https://bit.ly/4pKl3ai

💰 The retirement revolution: Why working longer isn't the real retirement plan❓ Question:How is retirement changing in Australia, why are so many people worried about running out of money, and what practical steps can Australians take now to improve their chances of a comfortable retirement?✅ Answer:According to journalist Nina Hendy, retirement is no longer a fixed destination reached at a particular age. More Australians are gradually transitioning into retirement through part-time work, flexible arrangements and second careers rather than stopping work completely. At the same time, many people are worried they won't have enough money to retire comfortably, despite having access to more retirement tools, guidance and income solutions than ever before. The challenge isn't a shortage of information. It's that many Australians remain disengaged from their superannuation until they're close to retirement.💡 Retirement is becoming more flexibleThe traditional model of working full-time until retirement age and then leaving the workforce entirely is fading. Many older Australians are reducing their hours gradually, changing careers or continuing to work beyond traditional retirement age. For some, it provides purpose and social connection. For others, it's simply a financial necessity.💡 You may not need $1 million to retire comfortablyOne of the biggest misconceptions discussed in the episode is the amount needed to retire. While many Australians believe they need more than $1 million in super, the figures cited suggest a comfortable retirement may require around $730,000 for couples and $630,000 for singles, assuming they own their home outright.A comfortable retirement lifestyle is estimated to require annual spending of approximately $78,000 for couples and $55,000 for singles. This includes private health insurance, maintaining a car, home repairs and everyday comforts without excessive financial stress.💡 Fear of Running Out is becoming a major retirement concernA growing number of Australians are experiencing FORO, the Fear Of Running Out of money. The prospect of no longer earning a regular income creates anxiety for many people approaching retirement. Concerns about rising healthcare costs, unexpected expenses and increasing longevity can leave retirees reluctant to spend the money they've spent decades accumulating.💡 New retirement income products are helping address longevity riskSuper funds are increasingly introducing retirement income products designed to provide greater certainty. These include lifetime income streams and annuity-style products that offer guaranteed ongoing payments. The aim is to reduce the risk of retirees outliving their savings while making it easier to convert accumulated super into reliable retirement income.💡 Super funds now offer more tools and guidanceRecent regulatory changes have encouraged super funds to provide more support to members approaching retirement. Many funds now offer calculators, retirement projections and guidance that can help people better understand how long their savings may last and how super can work alongside the Age Pension.🚩 Australians are living longer than everRetirement planning has become more important because Australians are living significantly longer. According to the discussion, men are living around 13 years longer than they were 50 years ago, while women are living around 11 years longer. Longer life expectancy means retirement savings may need to last for 25 to 30 years or more.🚩 Cost-of-living pressures are fuelling retirement anxietyHouseholds are facing higher grocery bills, petrol prices and energy costs, leading many people to assume retirement will require significantly more money than previous generations needed. Inflation and financial uncertainty are contributing to growing concerns about retirement preparedness.🚩 Supporting adult children is affecting retirement plansMany parents are continuing to provide financial support to adult children for living expenses, university costs and housing deposits. While understandable, this generosity can place additional pressure on retirement savings and make it harder to build the nest egg needed for later life.⚠️ Women continue to face bigger retirement challengesWomen frequently retire with lower super balances than men due to time spent out of the workforce raising children and caring for family members. As a result, women are more likely to report retirement-related stress and concerns about financial security in later life.⚠️ Too many Australians still ignore their superDespite superannuation being one of the largest assets many Australians will ever own, many people rarely review their balance, check fees or understand how their money is invested. Hendy argues that greater engagement is often the simplest and most effective way to improve retirement outcomes.🏦 Five simple ways to boost your retirement outlookConsolidate multiple super funds into one account to reduce fees.Check whether your super fund is performing well.Review fees, costs and insurance attached to your account.Consider making additional contributions, even small amounts.Log in every six months to ensure you're on track and receiving the correct employer contributions.📈 Why it matters:For many Australians, superannuation is their second-largest asset after their family home, yet it often receives far less attention than other financial decisions. As Australians live longer, retirement becomes more flexible and new retirement income products emerge, actively engaging with your super can have a significant impact on your financial future. Small actions taken today can improve confidence, increase retirement savings and help ensure greater financial freedom later in life.🎙️ Sources:Nina Hendy, journalist and author of The retirement revolutionVanessa Walker, Managing Editor, Money magazineMoney magazine September cover story: The retirement revolution⏱️ Timestamps:00:00 – Introduction to the Retirement Revolution00:41 – Why retirement is becoming more flexible02:15 – Why Australians worry but don't take action04:00 – How much money do you really need to retire?06:12 – Understanding the Fear Of Running Out (FORO)07:42 – New retirement income products and lifetime income solutions09:30 – Longevity and the challenge of longer retirements10:07 – How cost-of-living pressures are affecting retirement planning11:15 – The most important retirement lessons for Australians13:21 – Final takeaways and practical retirement tipsPodcast Links:Listen on Apple PodcastsListen on SpotifyMoney WebsiteYouTube Podcast PlaylistEmail Us: [email protected] stories like this in our newsletter: https://bit.ly/4pKl3ai