VIDEO: Planning for Financial Security Webinar

TRANSCRIPT

0:01
Good evening, everyone.

0:02
My name is Aaron, and welcome to the Bongiorno webinar on retirement.

0:08
I'm Aaron, the head of financial planning here at Bongiorno.

0:11
And this is Will.

0:13
Will is in his or he's just finished his professional year.

0:18
William Brennan, congratulations.

0:20
Thank you.

0:22
Just this evening everything will be very general.

0:25
And so if you wanted to act on anything that we spoke about tonight, you should do so only after speaking to a qualified financial advisor.

0:34
Thanks, Will.

0:35
So what kind of things will be will we be covering tonight?

0:39
So we'll be covering tonight Some thought, some thoughts, common thoughts around retirement planning, how much you need, when to start planning for it, things to consider, perhaps some common misconceptions and the value an advisor can bring to your retirement and lifestyle.

0:56
And at the end, we'll have some time for some live questions as well as they come through.

1:01
But first, I'll start with a question for you.

1:03
Will, as we mentioned, this is you've just finished your professional year.

1:08
What's it been like moving into advising clients?

1:12
Yeah, it's been great.

1:13
I really love working with clients, particularly here, you know, medical professionals have a very structured way to get to their end role.

1:22
And so the advisor pathway is similar to that of a medical professional where we have an education and then a A at work requirement.

1:31
Obviously it's not nearly as hard as a medical professional degree, but that the the similarities are there in terms of the pathway.

1:40
Yeah.

1:41
You know, one thing I've really enjoyed as I've gone through my career are those longer term relationships with clients, you know, walking through the different life stages and milestones as you get to know them.

1:50
I've got a lot of clients older than me, but also ones that are similar age to me.

1:58
Yeah, it is very rewarding when you're able to to walk the path with someone to retirement and really show them that everything they've been working so hard for the last few years, you know, has amounted to something substantial.

2:09
And now that they have no concerns or worries about money in retirement.

2:14
Yeah.

2:15
Any surprises since you've started advising?

2:18
Yeah, good question.

2:19
I think people are very focused on the Today, the, the here and now and they probably neglect to really plan well for the future, you know, what maybe they should be doing to really achieve their goals.

2:34
It is something easy to to put off as well 'cause it can be a little bit daunting.

2:39
So it's valuable to pause and reflect on where you're up to financially.

2:44
What what is the reflecting involved?

2:47
Yeah, good question.

2:49
Really thinking about what's important and what you want to do in the future, you know, with your retirement, do you want to finish work at age 60?

2:57
Do you want to transition into retirement, you know, maybe up until 65?

3:02
What does retirement look like for you?

3:04
Spending more time with family or hobbies?

3:07
How do we structure our assets and, and things like that?

3:10
People really don't think about those things until in general, maybe a little bit late.

3:17
So you know, you mentioned late.

3:19
When's a good time to start planning for these things?

3:22
Yeah, it's a funny question.

3:24
I'd say that there's never too early to to start planning.

3:28
But in reality, it makes sense to really sit down and review your situation about 10 years out.

3:34
That's a little bit daunting.

3:36
And maybe, you know, 10 years out.

3:37
It's not a a, a full sit down and, you know, change everything.

3:41
But it does make sense to start thinking about it 10 years.

3:46
So what kind of things does that time frame allow you to do?

3:50
Yeah.

3:51
So obviously, when 10 years out from retirement is still probably in your best earning years in terms of income, your asset base is relatively substantial.

4:02
And so the value and advisor can provide can be a lot better than if you, you know, come and ask an advisor about retirement six months out.

4:14
That is not an uncommon time frame for clients to come in and say, well, look, I'm going to retire in, you know, three to six months.

4:22
Let's get the ball rolling.

4:23
And while I would say it's never too late to to plan because better late than never, you know, there is a lot less tools and advisor can utilise to maximise your retirement.

4:35
So starting as early as they can, like maybe about 8:00, yeah, 15 minutes after this webinar would be a great time to start planning.

4:46
A question for you, Aaron, what do you think is the most common question you get when talking about retirement planning?

4:53
Probably most commonly people ask how much does someone need to retire?

4:59
Yeah, OK.

5:00
And what would you tell those clients?

5:02
Well, look, it really depends on the personal situation, because some people spend a little bit and some people spend a lot.

5:10
So the amount that you need to get to is really dependent on just the outflow, how much they're spending.

5:17
Also, people probably don't really consider like the make up of their assets as well.

5:22
So you might have a share portfolio which is quite liquid and you might have a home or investment properties and they're quite illiquid.

5:31
And so with properties, you know, it costs, not only does it cost money to buy and sell, I think the other issue is when you're in a retirement phase, you're drawing down from your assets.

5:43
So for example, you might have a, a big home, but that's not drawing, that's not creating any income for you.

5:49
So you need to plan around, well, what's something that I can have and can grow, but that I can also use in that retirement.

5:57
And so obviously then how much you have in liquid assets does affect how how you can retire and how you can live.

6:06
I think there's a value that people get from advisors.

6:11
Clients value making informed decisions.

6:15
So really it's not so much about them just making a choice and getting and being told what to do, but it's making a choice and with information that the advisor gives them expertise around industry, expertise around how other people think, and then making the decision that they would make if they knew all those things.

6:38
I think there's a big difference between an advisor and perhaps a knowledgeable friend.

6:43
A knowledgeable friend would normally tell them what they would do or you know what, what would I do for you Will, if I was in your position?

6:51
But really what you want to hear is what would will do in his position if he knew all the information.

6:58
So we do talk about value a lot.

7:01
What kind of difference do you think will does a advised clients have and non advised clients have?

7:09
Yeah, good question.

7:10
So the F AAA are a financial planning industry body and they have something called the Value of Advice Index, which is formulated based on feedback from clients and non clients of advice clients.

7:24
And so with their research in 2024, they found 75% of advised clients feel confident and satisfied they're on track to meet their goals, compared to closer to 50% of clients who don't engage a financial advisor.

7:39
I've also found that 9 out of 10 clients say that the benefits they receive outweigh the cost of the service.

7:46
Another thing as well is that there is research done that says that advised clients generally have about a 50% higher super balance than clients who don't engage a financial advisor.

7:56
50%, that's quite a lot.

7:58
Yeah, I would agree.

8:00
So I mean, there's a lot of facts there.

8:02
What in your words, what do you think the benefits of having an advisor are?

8:08
Yeah, good question.

8:09
So what I guess to summarise your question is what would we do for clients and the value that we provide specifically.

8:16
And so one of the main ones particularly for clients entering into retirement is assisting them managing the ever changing rules of superannuation.

8:25
We expect these rule changes to continue for quite some time just as the only the the first people who receive superannuation are only just retiring now.

8:35
And so we would expect plenty of rules to come now that there's a lot more information on retirees and things like that.

8:42
It's obviously good to have someone with expertise to ensure you're investing in the most appropriate tax effective structure.

8:50
Making obviously setting up the plan is really important, but a lot of the value that we find clients find is ensuring that they actually, you know, stay on track and through that's with having the regular meetings, making adjustments to strategy if it's required and just making sure that they're actually doing what they should be.

9:08
Another thing is, you know, relieving the administration burden that, you know, some people really don't like managing their money and so we're obviously happy to to do that for them.

9:21
So question for you, Aaron, what do you think are the most common misconceptions in regards to personal finances?

9:27
Common misconceptions?

9:30
There's a few.

9:31
I think one of them is that people feel that they can catch up with savings later.

9:38
So they feel that, you know, retirement's so far away and similar to what you were getting at with the planning out, planning 10 years in advance, people feel like they can just throw money in towards the end and then and that'll be OK.

9:53
And look, I think you can definitely do that and, and invest at that time, but you don't get the power of compounding returns.

10:02
So as you, if you invest a little bit as you go and as your income increases, you invest a little bit more and a little bit more regularly, what you'll find is it makes it really easy into into retirement.

10:14
You get to a place where you can retire earlier.

10:17
And a lot of clients actually are after that, that point where they have financial freedom where they're working because they want to work, not because they have to work.

10:27
I think one of the other misconceptions is I, I do get and have seen a lot of young clients come in and go, oh, say they're in the early 30s and they want to put away money and the expectation is that they can have a passive income that can replace their, their working employment income at say age 45.

10:47
I think being realistic about it, it takes time to to build up enough money to be able to create a perpetuity, an income stream in perpetuity.

10:59
So with the back of envelope calculations that we do for clients, say you need $100,000 to live off, we use a very conservative, say 4% of that as a hurdle rate.

11:13
So to live off $100,000, you need $2,000,000 to be sitting there to draw that $100,000 in perpetuity and growing with inflation as well.

11:26
So you're really looking at say the portfolio does 7%, you're drawing 4% out and you have that growth of 3% each year.

11:35
And that way, you know, you really that's how you would have a income, a passive income that replaces your income.

11:42
Now, obviously, if you're happy with drawing down and reducing that capital over time, you can draw more from that portfolio.

11:51
I think some other misconceptions or missteps I would say that that some clients take is not planning around their investment property exit strategies.

12:03
So I find most people go into property because they find something good or it's what their friends do.

12:09
And I'm not saying don't do property.

12:10
I think property is a, a core, one of the core investments of how our clients build wealth.

12:17
It's actually a really great way because you know banks will lend against property as well.

12:22
So you take advantage of gearing, investing money that you don't have.

12:26
But you also need to consider with property because you're usually going into it with debt.

12:32
What is the plan around that debt reduction over time?

12:36
And also what's the plan actually with the property?

12:40
So as I said earlier, I talked about that liquidity thing.

12:44
If you had that $2,000,000 property and you wanted to live off $100,000, you could only probably draw about $60,000 a year from the property in terms of net rent after expenses.

12:57
So The thing is, it wouldn't be enough for your $100,000 plus if you needed to, you know, buy a car or you wanted to go on a bigger holiday, you can't just sell a bedroom or a bathroom.

13:07
You'd need to sell the whole thing.

13:09
And so property has its limitations, but also just looking at, well, what's the plan around that property?

13:16
So for many clients, it's, you know, it might be selling it after retirement when your tax rate is lower.

13:23
You might have a couple properties and you sell one to extinguish the debt on some of the others.

13:29
But it's good to think about how that all fits in with your with your plan.

13:34
I think that's something that clients tend not to do that much.

13:39
I think one of the other mistakes that perhaps or things that younger clients don't consider, especially as their income goes goes up.

13:48
It's very easy to have that keeping up with the Jones's mentality and buying a large house.

13:54
And again, I'm not saying there's anything wrong with buying a large house, but it is good to consider when you buy a large property, what's the effect on your lifestyle in terms of the repayments on that?

14:07
I think a lot of clients buy the house because the bank will loan it to them and then don't really consider, well, can they still do the other things that they that they want to do as well.

14:19
And so just inadvertently putting themselves in a, in a particular position without necessarily putting their minds to it beforehand.

14:27
And probably one of the other things I've seen is just with the complexity of rules around super contributions.

14:35
I've definitely even seen clients who've gotten advice and wanted to implement, implement the advice themselves and just made errors and and had to come back to the advisor to to do the implementation.

14:48
As he said, the rules have changed, changed a lot.

14:52
Yeah.

14:52
So you've just spoken a lot about, I guess what things that you would consider not doing or something to be aware of when making decisions.

14:59
I guess it would be good for everyone to hear some of the things that you should be doing and you know what to do, right?

15:06
Yeah, absolutely.

15:07
So it's all based on your goals.

15:09
I think you don't have to have an exactly I'm going to retire at 68 1/2 and I'm going to live off 123,000 a year in today's dollars indexed up.

15:20
You don't have to have a a clear a picture that clear, but it is good to have your goals on.

15:27
OK, I might want to be holidaying twice a year, I might want to be living in this suburb or I might want to downsize and and have a small home, a small apartment in the city and maybe a a larger place up the coast.

15:44
So having a clear picture of where you want to get to, that's longer term and even the shorter term that is going to define what the next steps you take, because then you know what direction you're going in.

15:55
So I think goals is really important and advisors definitely help their clients 1 to articulate their goals.

16:03
But two, even the meeting and and having the meetings help clients think about their goals because as you said earlier, most clients are just sort of doing life like it's so it's so easy to caught up.

16:16
A lot of our clients are very busy and they just don't don't think about that longer term.

16:22
I think another thing to to consider and make sure you have in place and organised is your asset allocation.

16:31
And So what I mean by that is the amount of risk that you have in your different portfolios.

16:37
So when we talk about risk, there's sort of two main categories.

16:40
So one, there's sort of defensive assets, things like cash and bonds and term deposits.

16:47
They grow slower, but they grow steady.

16:50
And then you've got growth assets, things like shares and property, they grow faster, but it's a more volatile right now.

17:01
All the research says that asset allocation, this mix of how much percentage you have in defensive and how much percentage you have in growth assets, that is going to determine 90% of your return.

17:14
So it's actually really important to make sure you get that mix right and advisor can help you do that.

17:21
But there's also just a lot of a lot of material out there that you can read about to make sure you do have that mix, right.

17:28
I think one thing important to know is because when we talk about different portfolios, we talk about a defensive portfolio, a balanced portfolio, an aggressive portfolio.

17:39
When we talk about an aggressive portfolio, we're not saying this portfolio might go down and disappear.

17:47
It's not aggressive in that sense.

17:49
But what it's talking about is those ratios of defensive to growth assets.

17:54
So an aggressive portfolio in a rolling 20 years will always do better than the more defensive portfolios.

18:01
But it is going to have that, that rock your ride all the all the Super funds and any investments that we do, we do with very diversified portfolios.

18:11
So you're really not going to see all of it disappearing.

18:16
That kind of event is highly unlikely.

18:20
And I think your superannuation or your investments is probably the last thing you'd worry about in that sort of circumstance.

18:27
When we're determining what sort of portfolio we should use for clients, we look at a few things.

18:33
One, we look at the person themselves and their personality.

18:37
It's sort of that sleep at night factor.

18:39
Are they comfortable with the risk that they're taking?

18:42
Can they sleep at night knowing that their portfolio is going up and down or would they rather just having a sort of steady.

18:49
The second thing is around time frame.

18:52
So if you came to me and said, oh, I've got $100,000 to invest, that's great.

18:57
I want to use it in one year.

18:59
You're going into term deposits because you just can't afford for that to drop if the markets are down in 12 months time.

19:07
And then the.

19:08
So we talked about the time frame you talked, I talked about the your approach to it, the sleep at night factor.

19:17
And it's also just your circumstances.

19:20
So do you need to draw the money?

19:23
So when for example, you're talking to a young person and you're talking about their superannuation, they physically can't even touch it for 30-40 years.

19:31
So can they afford to have it more aggressively invested?

19:35
Absolutely.

19:36
Should they or depends on the sleep at night factor?

19:42
I think so.

19:42
Besides asset allocation, I talked about goals.

19:46
One of the other things that you you touched on it's tax effective investing as well.

19:51
And so for example, you can have the same investment, you can have a share and it pays you a $10 dividend.

19:58
If that was, if you're a high income earner on the top marginal rate of that $10, you lose $4.70 to the tax office.

20:07
Now have that same share sitting in superannuation, for example, it's a 15% tax environment on the income.

20:15
So you only lose $1.50, you get $3.20 on the same asset, the same risk without doing anything.

20:23
So it's just it's an efficient use of your, of your money.

20:28
So we, we work with the accountants closely to make sure that whatever we set up is in the most tax effective way.

20:36
And then not taking undue risk, getting better return with less risk.

20:41
That's, that's the, that's the Unicorn that we're going for.

20:45
And probably the other area which a lot of clients benefit from and value that they can get is setting up good habits and starting early.

20:58
I had one client, for example, who they're in their, they're in their late 30s, early 40s.

21:07
And they, they had, they have had and have a fair bit of debt.

21:12
And they, when they came to see me, one of the things they said is, oh, I really want to get rid of debt.

21:18
But I helped them to understand that it's not so much just debt they didn't like, it's debt when they didn't attach it to an investment asset.

21:28
So for them, they were actually comfortable with investment debt and less comfortable with debt just against their home.

21:35
And so we've helped them to identify that and understand that.

21:39
And then in terms of investing, because we're talking about deductible debt, you know, there's a lot of other opportunities that they can do.

21:48
And so they did, you know, started an investment which kept their tax at a 30% environment.

21:55
They did superannuation contributions.

21:58
So by a few years in, they had an extra $500,000 invested that they would not have otherwise invested.

22:06
Now markets have been really good over the last 1218 months.

22:10
And so if you think about it that way, 20% of $500,000 that they would have had just paying off debt before has just earned them $100,000.

22:21
So it's actually really important to to have someone there thinking about those good habits in starting early because that'll put you in a better position in the long run.

22:33
Yeah.

22:35
So I guess what's something you would say to someone who feels like it's a little bit too late to start changing their ways?

22:44
Well, it's it's never too late.

22:46
Obviously the earlier you start, the better.

22:51
But there's there's a lot of quick wins, especially as you're approaching retirement.

22:55
There's a lot of quick wins that you can do.

22:57
And I think that's actually, even though I think the advice is more boring when you're young because it's very sensible.

23:06
It's do this, it's, it's, it's put money away, it's budget.

23:10
Well, when your income increases, make sure you put some of that away.

23:14
Don't, don't fall victim to to income creep and lifestyle creep.

23:20
But when you're older, a lot of those benefits actually hit straight away.

23:27
For example, you can access what they call the pension phase of superannuation.

23:32
When you're over 65, you're already paying then no tax on your superannuation investments.

23:40
And that's something that you can just, you can do straight away and, and reap the benefits of straight away.

23:48
But yeah, the the earlier you start, the better.

23:51
But it's never too late.

23:52
And meeting with us and talking is free.

23:56
It's like the first meeting is always free and we can always.

24:00
I've never had a client walk away ungrateful that they've met an advisor and had a free meeting to at least point them in the right direction, if nothing else.

24:10
Yeah, great.

24:12
Do you have any examples, you know, from your career so far?

24:17
Any client examples of where you've added benefit?

24:20
Yeah, I do have one.

24:21
Actually.

24:23
She is a single older lady getting close to to that retirement age and she came in, she was unsure if what her situation look like, if she'd had enough money.

24:37
She was a great saver.

24:38
So she actually did have quite a, a decent amount of money.

24:42
She actually flattered me because she made me look really good.

24:46
But some of the benefits that I was able to provide to her is that she had a lot of cash which was earning 4% in a savings account.

24:56
She's a, she's on the top marginal tax bracket.

25:00
So about half of that goes to the government.

25:02
So her effective after tax return on that cash is 2% which is well below inflation.

25:08
And So what I did for her was invest what I will be investing over the next 12 months, $600,000 of that.

25:16
She likes a high cash buffer, but that money is going to be in tax effective investment structures to provide for her retirement.

25:24
And so without that conversation, that would still be in cash today.

25:30
And although she may have come to this realisation eventually, I guess the ancillary benefit the advice provides is that you have someone who is an expert saying that you're going to retire comfortably.

25:42
It means a lot more coming from someone like myself than if you were to arrive at that conclusion yourself, as you May 2nd guess and worry.

25:51
But you know, based on all my calculations, she'll be fine as long as she keeps doing what she's doing.

25:55
She's actually in a position to see her job in the next few years, which is earlier than she anticipated if she wants.

26:04
That's great.

26:06
We do have some time for some questions and some questions have come through.

26:12
One of the questions here are what are my retirement income sources?

26:18
So we'll what are some common retirement income sources?

26:22
Yeah, good question.

26:23
So obviously one of the biggest ones is superannuation.

26:27
And so most people up until, you know, age 6065, they've just been putting money away from retirement and retirement is getting closer and that's when they can start accessing that as long as they meet a few rules.

26:39
So this is obviously the main one.

26:41
The government is a big proponent of superannuation.

26:44
That's why they make it so tax effective to invest through and get some tax deductions to put some money in.

26:50
So that would be obviously #1 #2 would be an investment property.

26:55
Lots of our clients have investment properties.

26:58
But to Aaron's point earlier, does that property still make sense in retirement?

27:04
You know, you do run into a bit of a liquidity risk where if you do need some of that money, you do have to sell the whole property.

27:11
And so potentially some strategies would be to sell that property if it didn't make sense and repurpose those funds into more liquid options.

27:22
Liquid just means things that we can buy and sell quite easily.

27:27
And then we also have personal investment portfolios.

27:30
These are generally one of the fewer or sorry, the the last things that we look at just because generally speaking a lot of our clients are on the top marginal tax bracket and therefore it is one of the worst places to hold income producing assets whilst you're working, whilst you're working.

27:46
Yeah, thank you.

27:48
So the next question that's come through has been what is my risk tolerance for investments as I approach retirement?

27:57
That's why I might answer that one.

27:59
As I sort of mentioned your risk profile and your risk tolerance really is individualised.

28:04
So like I said, there is that sleep at night factor, there's timing in your your personal circumstances.

28:10
So for example, you know, if you had $2,000,000 and you needed to live off $100,000, you sort of need your your money to be earning your 7%.

28:23
But if you had $10 million and you only and you only needed to live off $100,000, the situation is quite different and it can swing both ways.

28:34
So on the one hand, there is an argument for, OK, well I could just stick $10 million in term deposits and I'd have more than enough money to meet my needs.

28:44
Or you can make sure that you have $2,000,000 invested in a way that will provide for your $100,000 and then you could go very aggressive with the rest of the 8 million.

28:57
So it really depends on your approach to money and what you think about it.

29:02
So for that person, I would recommend contacting your advisor and having a robust discussion, I think.

29:10
And The thing is, as you've correctly identified, it changes as you approach retirement.

29:17
It depends on when you're going to retire.

29:19
So a lot of clients I find hit 65 and actually wind down and plan to wind down because they enjoy their work rather than necessarily stopping cold Turkey.

29:30
Now that wind down stage, whilst you may not be earning the income to be putting away and saving at the same rate you were, you definitely aren't starting to draw down from your investments either.

29:42
So if you've got that, that wind down.

29:46
You may not be pulling back your your risk or you may not be pulling back your risk in all of your investments.

29:53
So it depends, as you said, where's that income source for if you've got a large property portfolio and it's that's providing you enough income to live off, then perhaps you don't need to reduce the risk in your superannuation.

30:06
So it really depends on your specific, specific situation.

30:13
OK.

30:13
So one of the next questions was I have $1,000,000 to invest at the moment.

30:21
I am retired since the last two years.

30:23
How much investment income can I expect per month from the $1,000,000 investment?

30:30
I need this to be regular income like a salary that I receive every month.

30:36
Thanks.

30:37
I think before you start, I might just want to highlight that we can only give general advice in this and you know while we will talk generally about things that we would consider as advisors based on the amount of money that you're talking about, it probably is worth sitting down with a financial advisor to not out a strategy that is specific to you.

30:57
Did you want to answer that or were you happy for me to you can have a go.

30:59
OK, perfect.

31:01
So taking a step back, you know, we need to consider where the money is actually invested and this comes back to tax effective investing.

31:10
And so something that we would maybe consider for some of the money would be to, you know, look at topping up some super contributions because superb will be the lowest tax rate in retirement.

31:22
And then we need to look at, well, what are your other assets and, and what are they doing?

31:27
And that will decide where we invest the money.

31:30
The next part of the question is, is well, what do we actually invest in?

31:34
That's a good question.

31:35
And that's something that could only be given to an individual if they go down the personal advice route where we work together to structure a portfolio that would meet your needs.

31:45
I guess we would use for a on a, a napkin kind of number, we would probably say that if you invest that in a mix of say 50% growth assets and 50% defensive assets, you could expect you know a conservative return of four to 5% over rolling 10 to 20 year periods.

32:08
And so on that $1,000,000 that would be $50,000 before tax.

32:13
But just want to highlight that that is very general and that's what a lot of the benefit in seeing an advisor would be structuring the assets and the portfolio to make sure that it's right for you as well as it being invested in the most tax effective structure.

32:27
Yeah.

32:27
And look, it's an interesting question because I know I've had clients come to me and say that they're very conservative, but then they they want to do certain things which as a professional in the industry we would say is not conservative.

32:42
For example, they go, you know, a portfolio of say $1,000,000 of CBA shares.

32:49
They think that they feel that it's safe because it's such a large company, but and you're going to get a regular income from it.

32:57
Those things are true.

32:58
But in terms of risk, it's a very high risk if something happens to that company that you're gonna lose a lot of your money.

33:06
The the other side of it is also the share value itself.

33:10
Even though it's not gonna, it may not disappear the share value.

33:15
And so your $1,000,000 fluctuates between 1.2 and 900 like they're massive swings in, in wealth, which perhaps you may not feel comfortable with.

33:25
So finding the right risk and understanding risk, I think an advisor brings a different perspective to perhaps your person on the street.

33:34
Things think the way that they think about risk.

33:38
The next question is how will inflation affect my retirement?

33:44
Did you want to?

33:44
Yeah, yeah.

33:45
So it is important to consider inflation, particularly based on your age.

33:51
So if you're going to live for another 30 years, you need those assets to be performing above inflation, otherwise the purchasing power of your assets will diminish.

34:01
Going back to the example earlier when you said you had $10 million and you were to put it in term deposits, that would be unlikely to outperform inflation over long periods of time.

34:12
And while you will have sufficient income, you, your capital will be eroded by purchasing power.

34:19
And so you need to have a bit of a mix of things that will provide you with regular income as well as some growth to outpace inflation.

34:27
And that's what we would usually look for in clients portfolios.

34:31
I think one of the misnomers, just as you were speaking, it reminded me that clients, especially retired climate clients, there's a tendency to think of term deposits as an investment.

34:43
And I think that that you that just forgets that inflation is there.

34:48
And so whilst, whilst the return is good and you can see it and it's clear and it's simple to understand, it does usually fall behind inflation.

34:59
And so it does mean your your money is shrinking even if the the 100 stays 100.

35:07
I think that's all the questions that we had for now.

35:10
I don't think we have time for any others.

35:13
Is there any last things that you'd like to to say to everyone?

35:17
Yeah, just quickly, if you were interested in speaking to a financial advisor, we're happy to meet with you.

35:25
The first appointment is at no cost and no obligation.

35:27
And it would be quite general.

35:29
But as Aaron said earlier, there's not many meeting or I can't think of any meetings where a client is left and they haven't got any value out of that meeting, even if they don't proceed with personal advice.

35:39
So that's just something to consider.

35:41
If you did have any specific questions and wanted to know anything about your specific circumstances.

35:47
To the person who was talking about the $1,000,000 investment, I would strongly encourage you to reach out to a financial planning professional.

35:55
Thank you, Will, and thank you all for coming tonight.

35:58
We've enjoyed presenting and we'll hope to speak with you soon.