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Barefoot Investor scores political win with Perrottet pledging to double financial counsellors

Scott Pape has had a political win with Premier Dom Perrottet pledging to double the number of financial counsellors in NSW and the Opposition agreeing to “think” about the proposal.

NSW Premier Perrottet opens up in wide-ranging interview

You can’t take my two-year-old anywhere.

However, a few Sundays ago I had no choice but to bring him along to a kids’ birthday pool party.

While I was making small talk with the other parents, he covertly snatched two huge slices of birthday cake and disappeared under the table so he could eat them without being told off.

A few minutes later he bolted out from under the table, absolutely pinging off his head on sugar … and that was when it happened:

My phone rang and – out of reflex – I answered: “Hell-o?”

“Hi Scott, it’s Dom Perrottet speaking.”

Silence.

“The Premier of New South Wales.”

A few things went through my head at that moment.

First, how did he get my number?

Closely followed by … where the bloody hell has that kid gone?

The Premier was already launching into his spiel … while I went on mute and frantically darted around the party looking for my sugared-up son.

It turned out the Premier wanted to put a copy of The Barefoot Investor in the baby bundle that new parents in NSW are given. Which was a great idea … and one that I graciously turned down.

Why?

Because he’s facing a State election and I won’t align myself with any politician or political party.

The best-selling Barefoot Investor book
The best-selling Barefoot Investor book

“Gotcha!” I yelled.

I grabbed my son – who went limp as spaghetti – and strapped him into a playground swing seat.

“Premier, while I have you on the line, can I pitch you something really important?” I asked.

“Okay”, he responded.

“Higher, Daddy!” squealed my toddler.

I then proceeded to explain what I pitch every politician (regardless of affiliation) I speak to:

Financial counsellors are the greatest secret in finance. They’ll stand beside you in your darkest hour – and help you get back on your feet. They’re independent. They’re unbiased. And, importantly, their service is FREE. However, due to the cost of living crisis, financial counsellors are currently run off their feet!

So, between swings, I asked the Premier to consider doubling the number of financial counsellors in NSW so that struggling families will have the best access to financial counselling in the country.

Well, this Thursday the Liberal Government announced the policy. And, in the interests of giving both parties a fair go, the Labor Opposition have said they’ll ‘think’ about it.

So in the end we all got a bit of cake!

Tread Your Own Path!

Your money is safe in Australian banks.
Your money is safe in Australian banks.

Is My Money Safe?

Hi Scott,

With another bank failing in the US, it’s starting to feel like 2008/2009 once again. How safe are our banks, and our money in the banks?

Jenny

Hi Jenny,

Don’t worry, the money in our banks is safe.

The government’s Financial Claims Scheme protects depositors up to $250,000 per account holder should your bank, building society or credit union go belly up. (And if you have a joint account, each account holder is entitled to the guarantee.)

But it only applies to one account at a particular institution. So, if you’ve got more than $250,000 you should think about spreading it around different institutions, so you’re covered by the scheme. Just in case.

Help! My Elderly Dad Is About to Lose His Home!

Hi Scott,

Some years ago my dad was approached by my sister and her ex-husband Larry* (they were divorced) to go guarantor for a business loan. Larry promised he would repay the loan in three months, and my sister said that if anything happened she’d be there to help.

At the time, Larry hired a lawyer to represent my dad and also hired a translator on his behalf. And my dad signed. But (despite the lawyer and translator) I don’t think he understood the full impact of his decision, as there was nothing to his benefit.

Fast forward to today and Larry has not been able to repay the loan. Even worse, he has defaulted on the original loan multiple times. Each time, the borrowed amount was increased to cover the principal and interest on the previous loan. Now my dad, who is in his 80s, has received an eviction notice from the Sheriff demanding him to move out by the end of the week.

My dad migrated to Australia as a younger man, and he and my mum worked their arses off over many years to pay off their home. My mum postponed her cancer treatment when they bought this house in order to keep working, leading her cancer to advance until it was too late. She passed away more than a decade ago. This house is Dad’s heart and pride, and I can’t bear to see him lose it all.

Please, Barefoot, will you save us from this mess?

Bill

With guarantees, banks usually require a sign-off by an accountant or financial planner, as well as a lawyer.
With guarantees, banks usually require a sign-off by an accountant or financial planner, as well as a lawyer.

Bill,

This is very, very serious.

(And kind of weird, given your dad backed a bloke who’d already divorced your daughter!?).

If your father has been given an eviction notice, it’s critical that you deal with this immediately – which is why I called my personal lawyer, Dr Brett Davies, and briefed him on your situation.

Brett’s view is that the guarantee your father gave is potentially unenforceable.

In other words, if your dad was conned into it by Larry (or the lawyer), then he shouldn’t lose his house.

(Someone should lose their home … but it shouldn’t be your dad.)

So, ask some hard questions, like:

Who was the lawyer Larry arranged, and was he independent?

Who paid the lawyer’s bill? (If he was acting for your dad, he is duty-bound to provide a copy of the file. Get that file.)

Who was present when the ‘guarantee’ was being explained? Was your sister there, for example?

Was there pressure put on your dad?

Was the guarantee valid? (As you correctly state, your dad got “nothing to his benefit” by signing a guarantee. Usually a bank would also require a sign-off by an accountant or financial planner, as well as a lawyer. Did he get that?)

So, tomorrow, call Mortgage Stress Victoria on 1800 572 292 and speak to a lawyer.

And never invite Larry over to dinner again.

*not his real name

Harry Styles Goes Barefoot

Hi Scott,

Just writing to thank you for your latest book, which I bought for my nine-year-old granddaughter. She has now established her jars for spending, saving and giving. Two weeks ago she and a little friend had a bake sale in Collingwood where they live. Sales were a little slow until a lady came along and told them Harry Styles was in a cafe down the road.

Of course the stall was quickly packed up and off they went with their produce. To their delight Harry and two friends were sitting outside. The girls approached the group (with mum not far behind) and offered their biscuits for sale. Lo and behold Harry bought 3 biscuits and gave them $50! Thank you again, you have inspired my granddaughter to be a young entrepreneur!

Adrienne

British singer and actor Harry Styles. Picture: Tiziana FABI / AFP)
British singer and actor Harry Styles. Picture: Tiziana FABI / AFP)

Hi Adrienne

How many girls rock up to Harry Styles and giggle, scream and ask for a selfie? Not your granddaughter — she came to do business! And Harry, what a legend. Though to be fair I think spending a pineapple on three biscuits is a little over the top … even for a rockstar.

Still, he probably had no idea what the strange yellow note was … and why would he even care? Now that’s a story she’ll tell her grandkids.

DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.

Originally published as Barefoot Investor scores political win with Perrottet pledging to double financial counsellors

Read related topics:Dominic Perrottet

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Original URL: https://www.dailytelegraph.com.au/business/barefoot-investor/barefoot-investor-scores-political-win-with-perrottet-pledging-to-double-financial-counsellors/news-story/a008fbcc74f0d6d537e4f568602bbc8b