Real Life Success Stories with Anthony Sultana

[00:00:00] Welcome to another episode of the money brew. I’m Kylie Sultana and I’m Anthony Sultana. My special guest today is Anthony. Um, yes, as you may know, he’s my husband of a long time. Um, yeah, so I managed to tie him down. Well, I haven’t actually tied him down, but. I managed to get me away from my computer.

Yes. I managed to get some space in his diary to ask him some questions because, um, it’s really, well, I think it’s really good for the people that follow us and. Well, anybody else that is listening in to the podcast or watching, uh, to know actually how you help. Yeah, that’s right. Because people come to us with a lot of problems and we provide them with solutions.

And at the end of the day, not many people, um, tell everybody, but I [00:01:00] suppose I do, because I get feedback from clients and they’ve referred people to me. So I, you know, you felt my friends being really successful. We weren’t the same. Yeah. So, yeah. And I think a lot of people think, Oh, I don’t need a financial advisor.

I don’t need it. Young or they don’t understand exactly. So I really want to get some stories from you today. Well, if we’ve got time coupled, maybe just one. Um, so I have given you a bit of time to prep this. So you didn’t have to prepare too much because this one, there was always, there’s always back of my mind.

That’s a very good story for these people. Yeah. Made a lot of difference from you. Yeah. It’s cool. Well, look forward to hearing about it. So I do have some questions. Yes. So the clients, and obviously we’re not going to use their real name because privacy. Yeah. But, um, this, it is an example of how you actually have helped a real life person.

Um, so what was their initial financial situation like when they came to see you? Yeah, so the couplers calling Fred and Wilma, easy .

[00:02:00] Um, he remember Flintstones. Yeah. Um, yeah. So, um. Wilma, Wilma had been working, but then she stopped working earlier, but very continued working for quite a number of years. And he was looking at wanting to retire, um, but they were very concerned because they’ve always had money coming in, um, to pay the bills and everything else.

And I thought, if we don’t get any more wages and more income, how are we going to survive? That was the biggest fear. And that’s a fear for a lot of people, not just them, but a lot of people with similar stories. And how old were they? Um, at that time, they, um, Fred was about reach, um, age, pension age. So it would have been 65 back then.

Yep. So a woman already, she was about a year older than Fred. So she was getting a small pension, but not a lot. Um, yeah, that’s right. It is called the money brew. It is. Yes. Yep. Um, that’s right. Um, so they, they came in, they wanted to know what, um, if I could afford to retire. They told me that they’ve always dreamed about

[00:03:00] buying a bike, not just a bike, a motorbike with a sidecar.

Oh, cute. I like it. Yes. So, um, They, um, they were English, so it reminded me of on the buses. I don’t know if people will remember the sidecar that they used to drive, um, Olive. I think you’re showing me. I know, but anyway. Let’s move on. So that’s what they, that’s what their dream was to buy a side, a bike with sidecar and travel up and down the coast and also to maintain their lifestyle.

So we sat down. Went through their situation, showed them how they, we asked them what their income needs were, they told me. So we sat down, worked out the investments they’ve had, the superannuation, but also what they’re entitled to the age pension. Can I just back it up for a second? Yeah. You said that they sat down and.

You asked them what their needs were. So what do you mean by their needs? Well, their needs is what they need to, um, for their living expenses, what, um, plan expenditure they had to do. And were they,

[00:04:00] they currently knew what that was? Because we have a lot of people that have no idea how much they spend in a year, right?

No, they didn’t. Because what we did before the meeting, we sent them a budget planner to help them. So we helped them set up. All of that. So start thinking about it. Yes. So it’s really important to know that we do help with all of that as well. Yeah, we do. Yeah. So it’s important that people understand. A lot of people say, we don’t know.

And there are ways of working things out, but the budget plan is always a good start anyway. So yes, we sort of understood what they wanted, but they just didn’t know how they’re going to achieve it. And that’s where we came in, showed them on the whiteboard. Which everybody loves and they can see that clearly, you know, drawing a picture on a board, um, rather than talking about things, people can see it and remember it.

Yeah. Yeah. Oh, right. So you’re waiting for me to Yeah. So I can’t breathe. It’s okay. I’ve got water there for you. Kylie. Um, so

[00:05:00] When, um, and look, I know you can’t tell us exactly what you did for them, but what sort of strategies, so what, what, what was something that you, so, um, so what I’m trying to say is how did you help them?

So their, their financial situation, when they came in after you collected all of their information, you got to know them, you know, you did all of your. Best interest stuff that we have to do. So what, what was their situation? Were they going to be able to retire? Was it? Well, yes. So when we, when I looked at what they had, their financial position was, their super, their bank counts, their cost of living that they needed, what their planned expenditure was, and also to buy the motorbike and cycle, we sat down and worked it all out and it was, it And then we worked out with, um, with the super, what we did, we started to commence an income stream from that.

In addition, they were entitled to the age pension. And so with a combination of the age pension plus the income from the

[00:06:00] super, they were able to provide them an income to provide, to cover their living expenses. And I also had money in the bank account and they had money, obviously. Um, I can’t recall, I think you got a, we had long service leave, annual leave, went to pay for the, for the bike.

Okay. So, yeah, so they were able to, um, know that they, so we show like we explained to them on the board, but obviously we did a plan in which the plan showed them how long the money will last them. And that’s really important to understand that. Yeah. So were they worried when they came to see you at first that they weren’t going to be able to retire?

Oh yeah. Yeah. To be able to afford anything. So your, the strategy that you put in place for them made them feel comfortable and then they were able to retire. Yeah. Well, that was a, that was a fear about the, you know, it was a fear about. Um, with Fred having to retire, he didn’t want to retire. He thought he couldn’t afford to retire.

Okay. So we said, we showed him how, how he can afford to retire, both of them retire, and

[00:07:00] that they, they’ll all still be generating income as you probably end up being a little bit more income to them when, while he was working. So they didn’t realize that, you know, a structure, but the other thing is with the income stream.

Um, it was tax free, so there’s no tax payable on that. That would have made a big difference for them. So we’re worried about paying tax as well. So we structured in a way, of course they do. Yeah. No one wants to pay tax. Um, so we were able to structure it, show, um, show them they got the cash flow. To live their life, maintain it without having to worry about it, because that was the biggest fear is worrying, you know, um, you know, how are we going to afford to live and pay the bills and put food on the table, et cetera, et cetera.

So now they’re living their best life. Yeah. So yeah, what we did, we, a lot of part of our process of service that we have at Korea Wolf is that we offer them an ongoing review. And when I came in for the review. Um, they came in and, um, Wilma pretty much

[00:08:00] saw me and gave me a hug. I’m like, okay, that’s nice.

And she said to her, she said to me that, you know, I made a difference in their lives and I thought, how’s that? And she said, well, you, you let us be able to afford to, yeah, we can both retire, we both can go on this trip and the motorbike, the trip we’ve had, we’ve had a few trips on the motorbike and they showed me some photos of us.

So it was really good knowing that, uh, you know, gave them the life that they dreamed about. Now it’s reality. Yeah. Yeah. It’s really good. Yeah. They’re really, really happy about it. Yeah. That’s good. Um, and they, they’re still clients. Uh, they, they are. Well, unfortunately, um, Wilma just passed away last, uh, was it late last year?

So, but, um, Brett always says, you know, uh, Wilma can never thank you enough for what you’ve done, because what we did, we, Um, we gave them an opportunity to live, live their lives together in their retirement. So they had quite a few years, um, they’re probably retired for 10,

[00:09:00] 12 years. So we made a big difference.

And the number of stories I’ve spent all day talking to you about. Yeah, yeah. There was actually one you talked about the other day. Um, a client. Where they, um, they, they invested an initial amount years ago and they’ve been drawing a pension, so they’re retired So that It’s in pension phase. Yeah, in pension phase.

So, and, but you said they invested X amount. They’ve been drawing this much money every year and they’ve got this much left, which is less than what they originally invested, but it’s more than what they, I don’t know how to put it exactly. So we’re using the income stream where you’re forced to take money out.

Obviously they invested X amount of dollars. Um, I don’t remember exactly what it was. Let’s say this wasn’t a lot. It wasn’t was probably 200, 000. It was around about the 200, 000. I tried.

[00:10:00] So we invested that, um, that would have been probably when I first started working as an advisor, we’re close to 20 years ago.

So we started with that and, and. I’m not sure if everybody knows, but when you start an income stream, you are forced to take at least 5 percent if you’re aged between 65 and 74, and then it goes up to 6 percent after that, and then keeps changing every five years. So they were taking money out of that all the time.

Yes, it’s not a lot of money to live off just alone, but they were getting the, um, the full age pension. So we’ve joined that, joined that money each year for the last 20 years. They’ve actually, they ended up drawing more than they started off with and they still got a balance today. So the balance is, I think it ended up being around about 150, 000.

Yeah. It was only, it wasn’t a big reduction over the last 20 years. So it’s still starting off at 200, still have 150 and we’ve got an income for life. And I’ve had other clients where actually they’ve got more money than they started [00:11:00] off with. And how is that? Well, it comes down to, um, how, what risk you take with your money and understanding that so risk is not a bad, um, a bad word.

It’s just understanding it and, and managing it. And you can get through those tough times. That’s right. Yeah. And you know, and it’s okay. If you don’t like taking risks, then that’s okay. You know, if you’re not comfortable doing that, then you don’t want to invest your money into something risky. So I’m going to move on from that story.

So thank you for sharing that. So I want to ask you about, um, the whole, you, you don’t know what you don’t know.

That’s a trick question, I think. It’s not really, it’s, well, it kind of ties in with what we were just talking about. It’s the

[00:12:00] clients that came to see you, they didn’t know what they didn’t know. So they didn’t understand how different strategies can help them coming up to retirement. And the same can be said also for, I guess what we call our accumulators that’s in the, um, super accumulation phase, you know, there’s certain things that people don’t know once you get to a certain age.

So what are some things that people can look out for when there’s, when there’s, um, uh, a planning? Okay, I’ve got a good example for you. Yeah, So I do. Yes, I read your mind. Um, so one of the things that people like. They don’t know, and they should know, or whatever it was, yeah. Um, the people who, uh, there are, uh, people who work, well, they turn age 67 now, because that’s the age, pension age, okay?

So we’ve got people who are working beyond that, and they don’t understand it. [00:13:00] Um, they believe that to get a pension, that they have to be retired. The, the thing is that you can continue, if you’re working beyond 67, You are able, eligible to claim for the age pension, albeit it won’t be the full pension, but you get a part pension and you’re, by getting a part pension, you’re entitled to discounts such as, um, free driver’s license, free registration in your car, discounts on your council rates, electricity, water, the other big things that people want, and they don’t realize that you, you’re eligible for that.

based meeting the criteria, um, uh, the criteria for sending that you might be told that. So if you don’t know that you don’t know, so that’s why if you ask the questions and you need to ask, um, an expert like myself, or, you know, maybe I’ll send link as well, rather than your friends, because your friends don’t know everything.

And I’ve had a lot of cases where it’s turned bad for a lot of people when they follow their friends advice. I

[00:14:00] recall you had a client that came in Uh, and a friend told them something about, was it salary sacrificing or something told them and they’d missed out on so much. Yeah, that was in relation to, I don’t know which one that was quite a long time ago where the client, um, actually they were referred to me by their accountant and, um, their accountant, which I knew said to me, you need to help these people because they are struggling.

And I was like, okay. Okay. They came in, it was mother and son. They came in and um, told me the situation that they weren’t getting the age pension. So when I looked at this, they should be getting a part age pension, actually a full age pension at this time. And they told me that they were told that they couldn’t.

I said, Oh, who told you? And why do you think that? I said, all their friends told them that they couldn’t get the age pension because they had an investment poverty. They had, they had one, they had sold it a long time ago, so they were, were, they believe their friends, that they couldn’t get a pension. And I looked at

[00:15:00] ’em and I said, you are entitled to the full age pension now.

How long has this been going on for? They told me it was quite a few years. So when I did the sums. It actually cost them a rent, just over 120, 000 in age, pension and entitlements. Now, that’s a lot of money and they were just shocked and disbelief that. They could have been getting this for years. I said, well, that’s correct.

So getting the advice from your friends, um, is not, unless they’re an expert, you don’t get that advice. You’re going in, find out your own information because people would just don’t understand. Yeah. Well, and it also goes to show that everybody’s financial situation is unique and there’s no two people the same, you know, there’s different ways that you can structure things.

And it’s also, um, You know what, what they’re happy to do or as well. So, um, yeah, so that’s, uh, yeah, no, it’s not one. No, it was a good one. Yeah. And [00:16:00] it was lucky that they were current. Um, we knew him and we had a relationship with them where we were very close to each other. So we just hope that we’re there to help people.

Yeah. So it must be really rewarding when you get something like that. And you are able to make a difference for people when they say, you know, the, uh, I’ve changed your lives. Um, yeah, it’s nice to know that I’ve changed it for them to, to enjoy it. Enjoy the retirement. It’s where a lot of people dream about tiring and doing this and that, like we are, and when it actually happens and it does happen, that’s when you really think of, well, this is really good.

Speaking of retirement, I don’t think my clients want me to retire, but that’s okay. I’ll, I’ll, I’ll find a, a, a, you know, a travel group for women. That’s okay. Um, so for sharing those stories with me today, Anthony. So I was going to

[00:17:00] ask about.

times when people need to get financial advice, even if they don’t think they need it long term. And I should also say that you mentioned before that, um, the client Fred and Wilma were on our ongoing service. Um, and that is an option. That’s an option. Yeah. It’s, it’s not a, You have to do that if you come and get advice, it’s, we give you an option.

You can just, if you need a review, you just come and pay the, whatever it is for a review. Um, but you can go on ongoing service. That means you can contact us at any time. And there’s a few other benefits. There’s a lot of other benefits, but, um, come and see us and you’ll know. But what I’m getting at is, um, the life events, like if you’re, um, maybe getting divorced or maybe that’s not a hint getting divorced or maybe It’s not going to happen, not going to happen.

Uh, or, you know, um, yeah, so you get a retrenched, like the

[00:18:00] different life events to look out for when you might need. So I think life events, um, there are certain things that due to the way superannuation structure is important to be aware of, obviously changing jobs need to be aware of if your children leave home and, you know, leave you alone.

But if they have kids move away, have their own family, that gives you that life event, which there could be some opportunities for you to start saving money. Now, um, turning 60 is definitely, approaching 60 is definitely a, a big milestone in people’s lives. Cause it creates a lot of, um, opportunities to, uh, minimize your tax.

Um, 65 is generally as well, because you may retire and you might be able to access your superannuation. 67, obviously, age pension. It doesn’t matter whether you’re working or not, that’s something always to review. Um, you

[00:19:00] know, unfortunately, a deaf in the family. That may have some, you know, impact and inheritance and inheritance.

That’s right. And, um, you know, if you’ve got elderly parents that need to, um, that need, unfortunately need to go to permanent care, that’s a big life event. And that’s a, that’s another whole story all together. So that’s where we help. Yeah, we, yeah, there’s things that I think, uh, any of those events, you know, people should, um, seek advice.

If you make an inquiry, you know, it’s always best to find out, whether you should, you know, there’s an opportunity or not. Awesome. Thank you. Thank you. You’re welcome, Kylie. Thank you. Weird, you’re calling me Kylie. Anyway. It’s usually, hey, when you didn’t know, it is not. Um, so thank you for joining us on another episode of the money brew and for Anthony freeing up some time in his diary to share some of his wisdom with me and you.

[00:20:00] Thank you for listening. Bye. Bye.