She's On The Money - FRIDAY DRINKS: Glen James Drops In

Episode Date: August 11, 2022

Happy Fri-yay! The Girls celebrate with their pal Glen James from My Millennial Money and as ever wrap the week, celebrate your money wins, and answer a Money Dilemma about the First Home Super Saver Scheme.Plus with Spaceship in the news, the team talk through the headlines, plus concerns from the community!Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements.The advice shared on She’s on The Money is general in nature and does not consider your individual circumstances. She’s on The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. Victoria Devine and She's On The Money are Authorised Representatives of Infocus Securities Australia Proprietary Limited ABN 47 097 797 049 AFSL - AFSL 236523.See omnystudio.com/listener for privacy information.

Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

Hello and welcome to She's On The Money, the podcast for millennials who want financial freedom. Today is Friday, which means it is time to sit back with the girls and one boy with a bevy in hand to unpack the week that was, reflect on some of our favorite moments of the week, and of course, to celebrate you, our incredible She's On The Money community. As always, we're going to be sharing our favorite money wins. We'll be discussing what's making news in the finance world. And this week, we're going to be answering a juicy money question all about the first home super saver scheme. But first, usually I throw straight to Jessica Ricci because it's quite predictable who you're going to find on this podcast.

But this week, hi. Hi. That does not sound like a She's On The Money voice. That is the voice of Glenn James. Hey, ladies. How are you all? Glenn James. Host of My Millennial Money. Welcome to the show. Thanks for coming. Thanks for having me. I love coming into the show, the friday drinks it's just good fun to catch up with everyone i feel like it's a good chat like you get to hear what's going on in our community very self-serving because i'm like sit down look how cool these people are and then we also get to answer a juicy money question and talk about the world of finance all of which i feel like you can probably contribute something to which is you know a nice feeling when you have a guest on the show guys absolutely high rules are low yeah not bad

But as always, we usually start the podcast by asking Miss Jessica Ricci to kick off the recaps of the week. Jess, what happened on our Monday Money Diary? This week's Money Diary was, to be honest, very full on. We spoke to an absolute trooper of a woman who has just been through the ringer the past couple of years. She lost her partner to cancer and was medically discharged from her job because she had PTSD and it was right around the same time just making an already very difficult traumatic experience

a thousand times worse. And then on top of that, there were issues with her partner's will. So she's having to go through the court process. He died in test date, which means that he didn't have a valid will when he passed away. And it has been an absolute shamble for her to work out. And her real big message was, please get your estate planning and wills in order because this is so important. Yeah. And then she also was going through a battle with work cover because her PTSD was brought on by an experience that she had at work. And so that has been a bit of a nightmare for her as well. And it was just a really full on story that shows you that sometimes shit just hits the fan. And it really did in this circumstance. It really did. But she was so

open with us about what she had been doing to manage that and talking about, as you said, her really big message was get your will sorted out because you just never know. And I was very thankful for her candidness because I think there was something that all of us could learn from her really, really tough experience. Yeah, she was really, really special. I finished that episode and I was just like, holy moly, like I just wanted to hug this person because it just felt like, as you said before, Jess, she went through the absolute ringer. Georgia King. Hello. What did we talk about on our Deep Dive? On our Deep Dive this week, we recruited Jessica Ricci into the studio. Yeah, I got yeeted off my own show. We booted you out, Bea. But it was all about our

top tips for making money secondhand. And long-time listeners will know there is no better expert in that space than Jessica Ricci. So I picked her brain. I really, really thought that was quite special, actually. It was a good episode. Thank you for covering me. I went and had a bevragino. I think you had dinner with Jacinda Ardern or something that night. Oh, yeah, sorry. Go on. I'm a busy gal. Busy gal.

Oh, my gosh, it was the coolest thing I've ever done. Do you know what's even cooler is that I was like, oh, my gosh, obviously she's going to be here, but she's like, you know, real official, probably not going to get to say hi, but we're all standing around before the dinner started, like mingling, having a drink, drinking a gin and tonic, having a chat with some people that I was networking with. And in walks Jacinda, no security, nothing.

she just walks up and just says, oh, hey, guys, how's your night going? And I'm like, like, it was a lot. And she's like, drinking gin. I love gin. Do you reckon there's one behind the bar? Like she was the coolest, most wholesome person I've ever met. Probably the coolest experience of my life. I hope she never hears that because I composed myself so well in that situation. So I'm really proud of myself. Yeah. Thanks for asking. There you go. But it was a very good episode. If you're like me and you have heaps of stuff on Marketplace, but it just ain't selling, then have a listen to the episode. I think it's a very good episode because, Jess, it's not just about selling, it's about how to sell it. And there's a strategy.

There sure is. Go, go have a listen. I need to listen to that because I've got an old boat engine that's for sale. I really don't think that's the episode for you. Honestly, I don't know if we can help with a boat engine. Got a cute jumper. Maybe we can. Anyway, speaking of money wins and Jacinda Ardern, No, Jacinda Ardern has nothing to do with it. We are going to dive straight into our Budget Direct Money Wins. Georgia King, what are you putting on the table this week?

Let's go. Okay, nice and short and sweet this week. The first one comes from Zoe. Money win, I deleted after pay. Number two, Heidi. Short but sweet. Short but sweet. I had an epic week of money wins.

I got a free book and a fancy pillow upgrade. But the best was winning $10 tickets to Hamilton and getting front row seats. That is so cute. Did you see Hamilton? No. You ready? Jess, where did we see Hamilton? On the West End.

Did you? Yeah, we did. Is it only Melbourne still? It's still going, yeah. Let's go tonight. I mean, who's paying? I'll pay if you want to go. I'll give you $10 so I can say I had the same money win as you.

The next win comes from Zoe. It's my personal favourite. Money win. I got 1.8 kilos of chicken breasts for $7.46 instead of almost $19 because the wrong label was put on the package. You enjoy that chicken, Zoe? Good on her. I saw a money win that I liked.

Did you? Oh, you're going to share one? Yeah. Can you wait to the end? You don't just get to go in the middle. I thought she'd finished. No, we have a whole list of these. You come in at the end.

You can have your turn if you sit and wait. Poor Glenn is just being ambushed. I'm just trying to catch up with friends, but whatever. The next win comes from Naomi. I booked our honeymoon accommodation through Booking.com, buy a shop back, and the money finally cleared. I told you guys. I got $217 back and we put all that cash back from ShopBack into our toddler's savings.

I told you guys you can literally get cash back on holidays. It's brilliant. It's sick. It is brilliant. The next win comes from Clarissa Moneywin. I've been saving up to buy a double hanging egg chair and I've been looking at around $1,000. That's my budget. I found one on sale today for $600 and they gave me at half price.

Oh, no, they didn't. Sorry, shut that down. Oh. She got half price delivery. Oh, okay. It was $650. Still good. It's still better than $1,000.

The next win comes from Emily. Money win and loss. I had enough in my emergency fund to pay for my dog's $1,300 dental surgery. As a single mum, I'm so relieved to have an emergency fund at hand. And our final win from the day comes from Glenn James. I got a cab in Perth the other day. His F-Post machine wasn't working. So he was like, oh, well, don't worry.

Yes. Are you joking? Did you know that Glenn was coming in and you picked that? I didn't. I was just going to make fun of him. There was more to the story, but that was like the- Tell us more. Well, I got out and I'm like, yeah, here's the cafe.

And the machine wouldn't work. And it was only like $13. And I've just got the view when I leave a hotel, if there's a cab there, I'll just jump in. And if not, I'll just get an Uber because I don't have to pay. Like it's automated through Uber. Anyway, jumped in. Yeah, take me there. And he pulled up and the machine wasn't working.

And he's like, well, you need to give me cash. and I'm like, I don't have cash. No one has cash. Yeah, and I said to him, I said, look, this is like 10 a.m. If you're having a big shift, trust me, I'm not your problem here. You've got a bigger problem that you're going to have to fix if you want to shift for the rest of the day. Nobody carries cash anymore.

Anyway, I said, I'm going over to the cafe. If you want to try the machine, get it working, I'll come back out in five minutes and I'm happy to pay if you want to sit there. And I said, all right, I'll be out. Then I went back out and it still wasn't working and he's like kind of agitated like it was my problem. And I said, look, can I buy you breakfast and a coffee?

He was having a bad day. Did he say yes? No, he said no. Oh, I thought this was going to be a wholesome story. I made a new best friend. Glenn, that's a terrible story. I don't know why we asked you to expand on it. But it was a money win.

Yeah, it is a money win. So ultimately you got out of it, TLD up, money win. Exactly. You know what? On that thread, we don't care about the semantics. We just want to celebrate. Exactly. I like it.

I like it. Glenn, it is now your turn. What is your money win that you would like to share from the She's on the Money community? I think it's important to learn from the money losses that we have in our own lives and that we share because you do money wins and money losses, right? Yeah, we do. So, Catherine Wernhard, money loss, bought a Disney gift card from a gift card deal. They haven't supplied it and they were supposed to refund me yesterday.

Yesterday, they said they had no idea when they will be refunding it and to lodge a claim with her bank. She's lost over $1,000 and the bank says it's taken 30 to 40 days to sort out. Oh, yuck. And that's just a cautionary tale. For stuff like that, it's easy for fake websites to appear. And I'm not saying she did anything wrong. It's just more of a, because we don't know her situation,

but if we look back and say, just with gift cards and stuff, go direct to the source where possible or a reputable thing like through your shop back your sponsor or whatever that is. because when the crap hits the fan, less layers is easy to deal with. Yeah, absolutely. Or pay through PayPal is something like when I'm on a website, like not even gift cards specifically, but just buying anything and I'm like, ooh, is this dodgy?

Always through PayPal because I have had instances in the past where it's been bad and PayPal is so good about being like, it was fake. They're like, yep, here's your money back. Amazing. Jess, how many fake purchases are you making? Like how often are you going to dodgy websites and being like, whoop, this one doesn't look like a goodie, better use PayPal. Like good advice. Where did

that come from? The Instagram advertisements get me every time. Yeah, okay, okay. That makes absolute sense. Guys, it has been great celebrating some of your Budget Direct money wins. Budget Direct, winner of CanStar's Insurer of the Year Award 2022. Budget Direct, insurance solved. Let's go to a really quick break and then after the break, we're going to answer our juicy money question and also talk about what's making news in the finance world this week. Don't go anywhere. All right, guys. This week's topic actually was a thread in the group last week from our friend Cara. And she said, hi all, just wondering for those who invest in Spaceship, are you worried about the news about Spaceship seeking capital raising, turmoil about the CEO, etc. Trying not

to panic, but feeling like things are going belly up. And there were a lot of comments on this thread. Some people were saying they're pulling their money out because they want to make sure that, you know, they get it out before the whole thing falls over. So I thought it would be really good to talk about because I totally understand the panic here, particularly because it's different from, you know, just the market being up and down, which we're seeing across the board. For those who don't know, I think it was back in maybe February, there were some issues with one of the former CEOs faking an accreditation. Actually, that gave me the heebie-jeebies. I I didn't realise that in 2022 in Australia, that would, you know, be an option.

Yeah. And so he was banned from providing financial services. There was a whole investigation. They've come out the other side of that. And then there's been some issues around, I believe, their superannuation offering. And that's what's kind of pushed this round of capital raising. So I wondered, we've got two finance experts here today. I thought.

Hi, Georgia. What's up, Georgia King and Jessica Ricci? How we laugh. But yeah, guys, what should we be thinking about this? should people be pulling their money out? Are there protections in place or are we all just kind of panicking a little bit? Because it sounds totally scary. What do you reckon, Glenn? You're here to take my job. So basically, hi ladies, I'm the new host of She's on the Monet, the French wine extravaganza podcast. Now, I want to first and foremost declare I'm not a spaceship customer.

I have never been one. I've been critical in a past life about their performance around, when they first started and the mistruths that they were saying about their funds and the fact that they did have an initial offering that was fee-free and we all know that there's no such thing as a free lunch. A fee-free, yeah, no. Yeah, like the world actually has to go on. But look, to be honest, if I was a spaceship investor at the moment,

I don't think there is cause for alarm. there is cause to further understand what you're invested in. And I kind of wrote down here and I got in trouble before for picking up pen and paper. No, you got in trouble for getting up from the table once we said we had started recording. Oh, I'm making noise. And dropping stuff. That was not great. So we started the podcast again, but we moved on. You clearly did not. I made some points. First and foremost, you know, the fun business is very hard. So for For those who don't know what FUM means, it's Funds Under Management. Yeah, I'm just trying to let you guys know that I still know some stuff.

Yes, yes. And that's a very hard business to be profitable because, you know, there's a quote here in the AFR article, nonetheless, Spaceship has still not achieved the scale required to be cashflow positive. Now, they've got close to a billion dollars of funds under management. That's a lot of money. as Victoria's favourite Donald Trump would say, billions and billions and billions and billions and billions. So the fund business is very hard. They've only got, well, it's a fair amount of

people, 133,000 members, and they still can't turn a profit. My second point is, you know, the marketing work, it didn't really win because if people are withdrawing now, maybe some of us didn't understand what we're investing in. And I was critical in the past with different investment companies advertising short-term returns. And you've talked about this before. I know they advertise the 30% year-on-year return, and this is all awesome. So, we just need to know that marketing is real. It's a legitimate business for everyone. We all do marketing, but we have to actually have a look what's going on. So, marketing didn't win, probably didn't in the short term. The third biggest issue that I see above some of the,

So, I'm sure there could be an ethical issue there at the management level. But my biggest concern is, you know, the sector-specific risks. So, if you've got an investment account with Spaceship, their whole thing was invest in the future. And a lot of their, you know, their core fund was investing in tech stocks. And while that did us the 30% year-on-year through COVID and all that, we're now starting to see, you know, the 30th of June, their growth X fund did negative 19.5 and the Voyager lost 47% in one year. So that's basically half where I come from. So we're seeing the other side of

being sector specific. So that's really a bigger risk for me, not having a well-balanced portfolio that's diverse across sectors. But in terms, if you are a spaceship investor and you love it and you understand all that. The underlying investments are still fine. And the fourth thing that we need to learn is your money is in custody. That's what I was like, can we talk about custody going? Don't fight in front of the kids. Yeah. So the last thing is the money is in custody. So if the operating company is raising money to manage the business, and if an operating company fails, they can't turn around to the pool of custody money to get your money. Yeah, and they can't take your money to pay their bills, to summarise that.

That's right. And, you know, I got into a bit of a chat, I'll say, in another Facebook group and someone saying- Was it ours or was it yours? No, it was another one. Oh, spicy. And someone was saying like, oh, this and this. I'm like, no, you're actually incorrect. And if you've got a conceptual- You just go on the internet to tell people they're wrong, so you would have thrived in

that circumstance. I'm just here to enlighten. I mean, but if you've got a problem with, you know, we see online and people, you know, get up in arms about, I only have investments that are chess sponsored. Well, if you're that pure and concerned about that, you need to move your superannuation to a self-managed super fund if you really want to go down and pull that string. So we need to step back. There's no cause for alarm.

You just need to understand what you're invested in. and we all, like when we start investing, we all learn the hard way. Like when I first started investing, I lost heaps of money because I didn't know what I was doing. That's why I started Shears on the Money. So, I learned the hard way. My community doesn't have to, like that's the point. So, okay. So, let's talk about strategies. If you were like, hey, I'm investing monthly into Spaceship and I do have a bit of heebie-jeebies around what's happening. That's fair to have though, right? Yeah. So I think the summary of like that first part of your conversation to just jump in here is that

your money's in custody. You're not going to lose your money. You don't need to remove it because you're so worried that the business is going to go under. If that does actually happen, your money will be returned to your account if everything shuts down and the fund is no more. So your money isn't just going to disappear into the abyss, but it is very fair going to what you're about to say, Glenn, to go, do you know what? My ethics, my values, my morals don't align to the company that I'm currently investing in and I'm going to find another option. And in that, you might have the option, well, I know the portfolio is down 47%. I'm just going to leave that to the side and invest what we call new money. So new money in the money world is I've

earned this money, the cash is in my bank, this money is being invested for the first time. I might say, well, I'm putting new money into a different account, different platform or whatever. You then may go, I'm happy to take the risk and leave Spaceship there quarantined. If it recovers, you might say, well, the money's in the market anyway. I'll just withdraw now, trigger a capital gains loss. If you do have a loss, move that money to another account. But I just think it's always important. Like I see these articles, I'm in the face groups, I read this stuff and I get a high

blood pressure thinking, oh, the world's ending. It's like, no, no, let's just slow down. We do have control. It's okay to question whether we put further money in there. And if you're happy with a high concentration of tech stocks and you're happy with the CEO has been punished and he's no longer doing that, well, you can still use Spaceship.

I think the risk is probably low that they're going to go under. Honestly, Glenn, knowing the way the business and finance world works, if it's not working for them, it's very unlikely that Spaceship, with that many valuable customers is ever going to completely fall over. If anything, it's just going to be bought by someone else and have brand new management and someone else is going to come in and- Or they'll put their fees up. Yeah, exactly. Like something is going to happen that keeps them in business in a way. It just

might not be the same people that currently run it purely because that's the way business works. There are a lot of customers behind that. And in finance, customers who are already invested are very hard to come by. Yeah. And I will say just in finishing my sermon on the mount here, if the worst did happen and the operating entity went into receivership, that money in custody, sure, it could be frozen for some time. Yeah, but it's ultimately coming back to you. Now, what that means is it could be bought by another entity, as VD said. They may cash it out and cause tax event and go, there you go, cashed out.

we're spitting back, you know, $2,000 because you had $2,000 invested. We're cashing out. Here's the tax event. So, I just think it's a good discussion to have. I think it's a great discussion to have. I've told my listeners that I'm more concerned about the sector specific being that, you know, deep just in tech stocks. Yeah. Agreed. Agreed. I actually have a question for you, Jess and George. Having heard that, what are your thoughts? Well, from my perspective, I think what scared me about that thread was seeing how many people

were scared of each other's comments. There was this real fear mongering, which speaks to what happens on the stock market on a larger scale, right? So all of these people in this thread were like, oh God, I need to sell, I need to sell, I need to sell. And I'm worried that they'll listen to this conversation and be like, shit, I did the wrong thing. It's a good lesson though. If you went and sold because you read some stuff on a Facebook group, again it might have been in she's on the money but i said to you guys time and time again let's think about where this information is coming from was it from a trusted authoritative figure in this space or was it from some random named cheryl who just said guys you should be real scared and

you go oh right right okay sit up straight but that's how these things can happen right so exactly and it speaks to a lack of understanding as to how these platforms work and you're not investing in Spaceship, you're investing in the shares that they're managing for you. Yes, I found it very interesting. Jess, your thoughts? I think the flip side of that is there were quite a few people on that thread going, hey, like explaining things to each other, which I think is awesome to see. There were a lot of people kind of explaining what the capital raising means. And effectively, for those who don't know, it just means that they've gone, oh, we can't really cover the costs of running this business. And they're going to try to get investors and backers to help them

do that. And that is a preventative measure. It's not as if we've come in at the 11th hour and gone, oh my God, the whole thing's gone belly up. Like they're obviously keeping an eye on the future. They're trying to ensure that people are in the best possible position. I think that is a positive thing. And I think it's really great to see people having those conversations in the group and to see people kind of encouraging each other to think about things and think them through. Because there are several spaceships users in this room, including me. And we've spoken before about the fear with the market being down. And I think like anything, it's, you know, making sure that it's right for you right now and yeah, taking into account what's going on in the world and taking

into the account of the opinions of people in the group and people like us, but ultimately it's what is right for you. And I think I'm really happy to see people having those conversations and taking that into consideration. Yeah. I'm just thinking like in these discussions, we all jump to the all or nothing. Like I have to just sell out today. And it's like, well, you know, I don't think the house is on fire. You can sit on it. Yeah. Like why don't we just pause and be cash heavy? And what about you step back and add up all your assets? You might add up your car, your savings, you might own a house or your super, add up all your assets and then divide the amount that you've got in spaceship by the total assets. And that will give you a percentage

of your world that's in Spaceship and if it is, you know, under. If it's super significant, okay, let's have a chat. Yeah, if it is under 20%, it's like, okay, well, let's just walk down the ramp. If it's 90% of my world is in tech stocks, well, we need to actually go. What's this mean? How's this work? As Dr. Phil said, how's that working for you?

Yeah, well, I don't know if I like Dr. Phil, so let's move on from that. I want to hear, Georgia King, what do I want to hear? Our Money Dilemma of the Week. Let's take a listen. Hi there. Have you got a money dilemma you just can't solve? The She's On The Money team is here to help. Every week, we tackle your dilemmas, both big and small,

to answer your most burning money, career and life questions. To get involved, simply head to our website and leave us a quick voice recording and you may just find yourself on the show. Now, let's take a listen to today's Money Dilemma. Hi, She's On The Money. Love your work. I just had a question about the First Home Super Saver Scheme.

Do I have to make contributions first and then apply for the scheme or do I apply for the scheme and then make voluntary contributions? I'm just a bit confused how it all works as I'd love to try and save up for my first home. Have a nice day. Love you guys. Bye. We love you too.

Oh, my gosh, yes. She seemed apprehensive about whether she wanted to say that. She regretted saying it. She regretted saying it. Don't regret that. We love you too. Call it what it is. If you said you love us first, that's fine.

We love you back. Yeah, 100%. I just want to agree with her because I contributed to the first home, or I contributed to my super, I should say, last financial year. And when I was looking into it, I was confused. Like it's not super clear, I don't think. When you look at the website, they don't. I'm not excusing the pun either.

But they don't make it super clear, I think, in the outline. It's not super clear. The first name Super Save is not super clear. No, unacceptable. And I think I can totally understand why she's asking this question because I had the same question. I did the ring around, so I'm glad that she asked it. You did.

How did you solve it? So I called my super fund and asked them, and to be honest, they were less comprehensive in their response than I would have hoped. Imagine if you had, like, access to a financial advisor that you could have asked that might have been able to guide you. Well, that's what I did next is I asked you. I'm glad I wasn't the first point of call, though. You're a busy woman.

What can I say? Well, where we landed was you don't have to notify anybody that you're contributing because the way that it works is you have to make your voluntary contribution first. So you make your contribution. It's capped currently at $15,000 per financial year. You can put that in all at once, like right at the end of the financial year like I did, or you can pay it incrementally throughout the year, make it easier on yourself either way.

And the current cap, has it just changed? Is it now $50,000? Yes, it is now $50,000. As of the 1st of July, 2022, the cap has been increased to $50,000 instead of $30,000, which is a money win. Very exciting. But the max you can contribute is still $15,000, which is kind of annoying. Really annoying. But at the same time, lots of us are going to make use of that over the next five years, which actually puts us in a position to use that full $50,000. Absolutely. So you do that. And then when it comes time to purchase a house, you need to

lodge a form before you sign your contract to purchase or build. So, if you are using this scheme, make sure, mark your calendar, write it down somewhere. You need to submit a notice to withdraw with your super fund. And you also probably need to pass that information along to your accountant, I would assume, for tax time, right? Because they need to know that you're doing it. They need to know where that money is going. And then you have, I believe, 12 months to use it from the date that you notify them of your intention to withdraw. Is that right? Yep, yep, yep. So very, very on track. So you're right. You don't have to tell anybody, but I always recommend that you give your super fund a buzz because it's really important to

be educated and we pay our super fees so we should make use of the resources they have. And most of them have brilliant call centers full of very educated people who know the ins and outs of that specific super fund. So they might not be able to tell you the difference between Host Plus and the Westpac option, but they will be able to say, look, this is what you've got access to. This is how your fund works. These are your fees. This is what your insurance is. And you can say, I'm looking to do this. Do you want to put any note on my file or whatever it is? Have a chat. Unnecessary though, because you're right. All you need to do is make voluntary contributions to your superannuation. So that can be pre or post tax, but it has to be a voluntary

contribution. And then as you said, you're right, up to 15 grand per financial year. Then once you're ready to buy, you'll then apply for what they're calling a first home super saver determination from the ATO. So you'll submit that form to the ATO and then the ATO will say, hey Jess, they'll review your super fund. And basically what they're doing is looking at how many voluntary contributions you made and over what period you made them. And then they'll say, all right, Jess, well, you made $15,000 worth of voluntary contributions. You can access that. Then they'll tell you how much you're eligible to withdraw and what tax might be applicable to that because sometimes if you want to withdraw more, there might be different rules and regulations.

And then once you've received your determination, no earlier, then you're able to apply to the ATO to release those funds. And that is called a request for release. And you will actually be able to go through the process of, Jess, you're absolutely correct, having that put in your bank account and then you'll have 12 months from the date of your request to release to build or buy your first home. Can I add some points on top of that? Of course you can. I think it's important to know that the reason that you do this is to effectively save tax and the government have made it very complicated. I don't know why they just, the federal government just didn't give everyone five grand or six grand to buy their first home as an additional grant, but whatever.

You know what, let them have their plans. They've made a plan. I like it. I just buy free stuff. It's very complicated. So, all you're doing is washing 30 grand of your deposit through superannuation, which is taxed at a lower tax rate. So, it can feel spicy. We can pretend we're laundering money. That's right. And you'll probably save up to $6,000 as a maximum. So, a couple of things, what I would probably encourage you to do, if you're unsure about buying a house right now, keep saving. And then each June, just make a call because if you saved $30,000 and you wanted to buy a house in August of next year, you might throw $15,000 in June and then the other 15 in July

and then withdraw it in August. It can get tricky with auctions because they're going to want to deposit straight away. So, that's my caveat. And then as VD said, if you were just salary sacrificing $15,000 a year into superannuation over four years, we know that's 60 grand. When you put the determination in, you'll only be able to use that 50,000. So, it is complicated, but also it kind of isn't. It's just extra payments that you've put in super that you're flushing through to save on tax. Well, let's talk about, I guess, the difference between, you know, what that actually looks like? Because you said you'll save about six grand. Jess, let's use you as an example. You put 10 grand into superannuation.

10 grand inside of super is actually worth about $8,500 because of your 15% marginal tax rate inside super. Whereas if you earn between, you know, 90 and $180,000 outside of super, if you'd saved that instead, that's $6,300. So, the difference there would be about $2,200. So, it makes sense for a lot of people to just put your money in there regardless of whether you can use the full 50 or not because for each 10 grand you put in there, if you have a marginal tax rate of 37%, you're 26% better off. You're going to get another $2,200 towards your home And that is actually, that's a lot of money. Yeah. And I would be adding that if there are market fluctuations and you put $10,000 in because you only wanted to have a house deposit of $10,000

or $15,000 and there were market fluctuations, they will let you withdraw extra of your super annuation out. So you won't actually be penalized. You don't feel the fluctuation. But if you're just starting out from scratch and you've got a very low super balance, you may choose to set up a separate account and just have a cash investment option for your first home saver super scheme. You've just got to do it to your comfort level and just make sure you understand. But absolutely, your super fund should be able to talk you through these structural facts. So make use of your super fund resources because you're paying for it. But Glenn, you also have a really good YouTube video explaining that. Where can I find it?

I think if you just search My Millennial Money First Home Super Saver on YouTube. It'll explain it all. Yeah, epic. And we spend, you know, a good 20 minutes with diagrams. It was done before the increase to 50,000. But the marginal tax rates are the same and it's now 50 instead of the cap of 30. Yeah. And this is the whole thing, guys. Like as legislation and things change throughout the time, as long as you understand the concepts of how things work, you'll be safe. Yeah, absolutely. So to answer that question very clearly, no, you don't have to do one before the other you can talk to your super fund or you can just start contributing whatever works best for

you but unfortunately i do think that's all we have time for today georgia king would you like to wrap the boring but important stuff all righty guys please remember that the advice shared on cheese on the money is general in nature and does not consider your individual circumstances cheese on the money exists purely for educational purposes and should not be relied upon to make an investment or a financial decision and we promise victoria divine and cheese on the money are Authorised Representatives of InFocus Securities Australia, Proprietary Limited, ABN 4709-779-7049, AFSL 236523. See you on Monday, guys.

Bye, guys. Bye, Glyn. See you. Thanks for having me.