Retirement is getting tougher for Australians, with 38 per cent struggling financially

I am talking leveraging to grow asset base, which is what most are doing here. In retirement I would assume still have some debt? And offset accounts

But I doubt there will be many investors with no debt, that was kind of my point

 

Lol

 

speaking of which, @kierank has previously stated they still have debt...

Reverse mortgage is just a version of living off equity...

If a little old pensioner has a multi-million dollar home, but no cash, why wouldn't/couldn't/shouldn't they reverse mortgage?

 

They can use reverse mortgages, their choice, rules apply
. Surely smarty pants investors could come up with a better option, where they have control

 

I think I read debt is larger for retirees but wouldn't their asset base be too in comparison then, maybe not?
I also remember seeing some figures from ATO I think where 40% of investors owned property outright.
Agree when accumulating most would be growing their asset base and increasing leverage but for some we can accumulate and not increase the leverage, some are in that category too.

 

For sure

 

leverage can be a very sharp two edged blade , especially if your lender gets nervous

i have been investing in shares since 2011 and watching company management movements , suggests to me employment security is a quickly diminishing metric

seems only government bureaucrats are highly resistant to redundancy in recent times

please stay agile if you use leverage

ancient history now but my fathers last wage in 1969 ( after tax ) was almost identical to my first weeks wage as a probationary apprentice just under 3 years later

think about that for an inflation rate ( and that was just a worker's pay )

or from another angle my parents went into a 15 year house mortgage and saved and cutscosts to pay it off early , earning a $1000 rebate ( enough to by a second hand car they wanted )

some neighbour's didn't and and refinanced their mortgage over 30 years just before interest rates went up ,

 

I agree, it should more about growing one's net worth, leverage should be just part of doing the business at first like the capital required in some cases to start up a business.
Like I say I may hold 9 IPs but if my LVR is 98% am I really wealthy, what's my net worth then?
Someone may own one IP worth $1.5M with say 50% LVR and would be in a much better net worth situation. One needs to understand overall situation and numbers and the end game should be creating more net worth if accumulating too.

 

Are you sure?

Can you provide some stats?

I have been retired for more than 10 years. I have more debt now than my pre-retirement times.

Most people I know have debt - some are retired, some are not - they all used debt to grow their asset base, increase their net worth, ...

So being retired or not has nothing to do with having debt or not.

You are confusing me. One minute you post this:

then later you post this:

 

But we know this



.... yet In one of your posts you stated ......

‘anyone with debt in retirement is an absolute idiot’????

i think we just move on..... its getting old

 

@MTR @kierank You two should chill and come have a drink with me in Sydney

I'm sure the 3 of us could get upto mischief at Sydney's OFIs

 

Lol
Chardonnay please.....

I cant get to Melb, let alone Sydney

 

Hopefully soon you can travel out! Must be so frustrating.

 

That is NOT what I posted at all. If you are going to quote me, please quote what I posted.

Here is what I posted, I have highlighted the crucial key words you left out:

Then I followed the above statement with this:

You have either totally misunderstood or totally mis-represented what I posted.

That is a reflection on you, not me .

 

I am driving through Sydney in mid-March on my way to Melbourne, COVID permitting.

I don’t know whether my schedule has any time for drinking, ...

Nah, surely there are better things to do than attend OFIs

Don’t forget, I am no longer in accumulation phase .

 

we rescheduled March, McGowan not following the science.... but keeping his voters happy.

 

no that is me that is against leverage at this time , BUT i am old ( retired doesn't matter what age ) and don't have source on income that would comfortably allow me to repay debt in a panicked market-place

30 years younger and a solid job ( or career ) that is a different ball game , and maybe i would consider leverage ( and maybe someone would offer it to me as well without horrendous terms )

cheers

 

You are officially entering grouch status

We'll need to have a serious talk.

 

Only if alcohol is involved .

 

Retirement shouldn't be getting tougher especially on these forums as everyone seems to be either rich or getting that way. People buying property now should never have to worry about struggling in retirement should they? These are the days of compulsory super, investment advice and cheap /very low interest rates. So what's the problem?