Franking credits - gone?

don't see many rich people holding residential properties - I need to disagree, I must be an exception as I do hold lots of resi in my SMSF, but unsure what you consider rich, above $1.6m asset base or more?

 

I was told exactly that when I started work in 1977 (42 years ago), in the Superannuation area of an insurance company.

Because of the baby-boom, etc people seeking the Aged Pension would increase to an extent that Australia could not afford it.

In other words, I believe what I was told and spent the next 30+ years working my ass off so that I could retire and not be a burden on the State.

Unfortunately, most of my brothers and sisters did not heed that message and I find that it is fairly lonely on this Self Funded Retiree Island.

 

Exactly.

I am not going to do anything regarding this.

I will wait to see if BS gets in, if BS gets his policy through the House of Reps AND the Senate, wait until we know exactly what the new rules are, ...

Then, I will meet with my advisors and decide what, if anything, I need to do.

I am not “jumping at shadows” anymore.

Prior to the last election, I brought forward a NG property purchase because the ALP was gonna win and NG would be a thing of the past.

I have learnt my lesson.

 

Fundamental reason Communism didn't work in the real world, the brightest and hardest workers said why should I work hard.
One who escaped as a minor with family from a communist country and witnessed it and lived it back then.... could't agree more!
Such migrants have embraced the western way, changed their mentality and progressed ahead...now the whole capitalist world wishes to revert back to that?
Tell me why people from all over the world migrate to only few countries rather than to communist countries instead?
You see people in those countries with such mentality realize, what's the point of working hard, of creating value for the company, instead they just get paid for their time - productive or not! Show me a country where most employees get paid only for the time they spent instead of what value they created, how productive they were, and see how can such a country progress financially, morally and successfully through time?
I read in Barefoot Investor that around 70% of Australian workforce works at mediocre level, only 30% do more and beyond, yet look how prosperous Australia is?

f I decide and plant 100 trees yet someone else plants 10 or less, why shouldn't I be rewarded with more, earn more, invest more, have more? What is wrong with people with their mentality, take from those that have more, why? There is enough financial wealth out there for all - to those that want it and work for it!

Our great philosophy, our thinking, our attitude should be:
'We should do more than what it's required from our job as an investment into our future and hence our company's future.'

Below my mentor Jim Rohn said it well:
- Don’t mistake movement for achievement. It’s easy to get faked out by being busy. The question is: Busy doing what?
- Economic disaster begins with a philosophy of doing less and wanting more.
- Each of us has two distinct choices to make about what we will do with our lives. The first choice we can make is to be less than we have the capacity to be. To earn less. To have less. To read less and think less. To try less and discipline ourselves less. These are the choices that lead to an empty life. These are the choices that, once made, lead to a life of constant apprehension instead of a life of wondrous anticipation And the second choice? To do it all! To become all that we can possibly be. To read every book that we possibly can. To earn as much as we possibly can. To give and share as much as we possibly can. To strive and produce and accomplish as much as we possibly can.
- If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.
- The few who do are the envy of the many who only watch.
- The major value in life is not what you get. The major value in life is what you become. That is why I wish to pay fair price for every value. If I have to pay for it or earn it, that makes something of me. If I get it for free, that makes nothing of me.
- We don’t get paid for the hour; we get paid for the value we bring to the hour.
- We get paid for bringing value to the marketplace. It takes time… but we get paid for the value, not the time.

- To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence.
- Your personal philosophy is the greatest determining factor in how your life works out.

The last is my favourite, so stop judging the rich or the poor, you don't live with them 24/7, trying to take and give, stop thinking the grass is greener on the other side, some are more green some are less green, instead just water your own lawn!

 

When I was working as an employee, I would always produce above and beyond; in other words, deliver more value than what I was paid for.

It was amazing how many promotions and pay rises came my way ...

 

+1!

 

And the grey wave of baby boomers retiring is only really just getting started. It's only going to get worse from here. I still think the advice you were given 42 years ago is correct, even if just a little early.

On the bright side for you, the self funded retiree island may be lonely but I'm sure it's a lot more pleasant than the pension island.

 

There are a few o us on the island @kierank. As a poor swimmer who is scared of sharks I am very happy to stay on the self funded retirement island.

 

Totally agree.

It is disappointing that we were all given such early warnings but so few took action.

TBH, the self-funded island is very nice and I do enjoy my own company .

 

Even a good swimmer like me isn’t going to leave the island any time soon (hopefully) .

 

LOL @kierank. I won't describe my swimming ability but it's been called shameful.

As for my island, I know where I am in regard to many others by dividing my income by the annual married rate age pension. As it's a multiple of that I'm pretty cool with my island home.

 

I’ll stay on the island provided there’s a well stocked bar.

 

10m plus net asset and the one more than that they don't hold much residential RE investment except their expensive PPOR

 

... and a great (never ending, underground) wine cellar

 

I think we must be an exception for sure then......!

 

AReit - Australian real estate Investment trusts
GReit - Global real estate investment trusts

 

Australian Reits and Global Reits Where Reits are real estate investment trusts. Beaten by @oddshapes above!

 

Thanks @oddshapes

 

Nobody told me. I worked it out by listening to the pensioners around me complaining about not having enough. Had no idea how to actually achieve financial independence so this took another 8-10 years. No internet back then. None the less I excelled at my chosen career during this time and was always paid handsomely.

 

Same here, I had no idea. Didn’t even know what financial independence really looked like nor how to get there.

In 1990, after working for 13 years and cashing out our Super every time we changed jobs, we set up our SMSF. Two years later, in 1992, we bought our first IP. We still have both assets today.

It was another 12 years (in 2004) before I wrote our first FIP (Financial Independence Plan).

That was the first time I understood what financial independence really looked like plus had a plan on how we were going to achieve it.

We were definitely very slow learners - took us 27 years to know what we were about - but once we did that we achieved our goals in 6 years as we retired in 2010.

We just didn’t achieve our goals, we overshot them by a huge amount.

The result of a good dynamic plan, hard work, honest monitoring of our progress, life-time education, all the skills, experience, mistakes, etc of our past, ...