If you’ve seen the movie, The Karate Kid, chances ...

If you’ve seen the movie, The Karate Kid, chances are you’ve heard the quote about the absence of fear and pain. It was the mantra of the Cobra Kai sensei – an unscrupulous sensei that operated outside the whole point of karate (and using it for evil purposes instead). Kids would repeat the mantra after him, insinuating that fear and pain do not exist.

 Well, we’re here to tell you that pain is very much here – and it pretty much exists everywhere. Call it what you like – no such thing as a free lunch; you have to give something up to win something back – whatever the analogy, it means you always have to compromise.


Some examples in financial terms could be:

  • Making additional fortnightly payments of $800 for the last ten years of your working life

  • Giving up stable but low returns for higher and more volatile returns

  • Saying goodbye to $10,000 each year of your retirement if you don’t give up something else while you’re working


So, at some point you need to face the pain (or in the words of Dallas, life is pain). Ultimately, this is a liberating phrase – because once you realise that life isn’t pain free, and that sacrifices need to be made, your life will get simpler to navigate and you can choose the pain you want to give you the right trade off.


As an example, someone who is spending $100,000 annually can choose between:

  • Dropping to a $60,000-spend in retirement, or

  • Saving $15,000 for the next ten years in order to be able to spend $85,000 in their retirement.


The thing is, it’s totally up to you. We don’t tell you which path of pain to take – we’re just here to show you the routes. But one thing is for certain: There’s no magic bullet when it comes to financial gain. You don’t get something for nothing – just like in real life.