Niki continues the conversation with Lisa Dudson discussing all things money and finances.
1:39 – Niki asks Lisa about Suze Orman’s comment to women that ‘a man is not a plan’.
4:12 – Lisa quotes Albert Einstein and his comment that compound interest is the 8th wonder of the world and a discussion occurs around rebuilding as we get older.
4:33 – Lisa talks about currently selling the first home she bought 26 years ago and the power of holding on to it over that period of time
5:20 – Niki introduces the idea of the FIRE movement -Financial Independence Retire Early. Lisa talks about the positive and negative sides of this concept. Lisa and Niki go on to discuss retirement and how many people who retire early go back to work because they underestimate the social side of work
7:15 – the changing world of work and how we can choose to continue to work and do it under our rules.
9:30 – Lisa encourages people to ask the question how else can I derive an income once I finish work as part of the retirement conversation. Investing in yourself as well as investing your money.
10:43 – Niki asks Lisa what they should do if someone suddenly comes into a substantial amount of money. Lisa says the first thing to do is do nothing – take a pause and then get some advice
12:40 – Lisa talks about people understanding the connection between a sum of money and the income it can provide
14:20 – there is a difference between being property rich and having the cash flow to cover everyday expenses of owning those properties. Lisa gives an example of someone who owned several properties but could not cover the rates bills.
15:10 – the discussion around property vs shares. Lisa shares her experience of her first big loss on the share market. People love property because of the leverage – you can use the money of others to buy it.
16:56 – everything starts with the individual. What is your starting position? What are your goals? What is our risk profile? What other things do you have? Then decisions can be made about the best investment opportunities.
17:15 – you start with the person and find an investment strategy that fits rather than find an investment and try and make someone fit into it.
19:00 – the importance of a diversified share portfolio. Investing in different countries, different companies and different types of funds to increase returns and decrease risk.
19:40 – Niki puts a case study to Lisa. Someone in their 50’s who has not done so well with money, and wants to retire at 65 because they hate their job. They come to Lisa for help – where does she start.
20:15 – What is important is the constant reviewing of any plan and moving forward. Not doing long term plans that no-one reads and don’t allow for changing circumstances
22:30 – another case study where Niki asks Lisa about business. Is there a jumping off point with business when it is clear it is not viable and it is time to admit defeat. The perils of going into business. Niki talks about not being frightened to change what we do.
26:14 – what would you say to your 20 year old self so you set yourself up for facing midlife and beyond