Super & Early Retirement

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Tony, 29th Jan, 2018.

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  1. kierank

    kierank Well-Known Member

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    You outta give REAL retirement a go, you might like it :D.
     
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  2. Nodrog

    Nodrog Well-Known Member

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    Very funny, NOT. Evil comment.

    But just had a 30 swim in the pool to cool off and we’re about to enjoy some craft beer. Wife has had me drinking some strange Kefir poision, it’s put my body out of balance. Hoping to restore the body chemistry with some Beer Rejuvination Therapy:cool:.
     
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  3. truong

    truong Well-Known Member

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    This retirement planner from ASIC is pretty handy. It allows you to play with retirement age, income, investment option, fees, etc… It also shows the aged pension kicking in when your funds diminish.

    Retirement planner | ASIC's MoneySmart

    So if someone retires at 61 with 750K in a balanced fund @ 4.8% return and 0.5% fee they can expect about 41K pa till 90. Funds are exhausted at 90 at which point they only have the aged pension.

    Caution: it's only a calculator :)
    PChat 0.jpg PChat 1.jpg
     
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  4. sanj

    sanj Well-Known Member Premium Member

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    Completely agree, especially if you're talking easily bought and sold shares like listed companies etc.

    You're either trying to game the system or, perhaps purely coincidentally individiual you might want to sell something that as trustee of your smsf or as director of trustee, you've determined it is in the best interest of future you at retirement to buy into this investment.

    Sure it can happen that the 2 coincide but really it's obviously gaming the system, which is set up to aid us in retirement not now and attempts to break the rules are why there are often so many changes made which annoys everyone
     
  5. Nodrog

    Nodrog Well-Known Member

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    Is this the overseas holiday you mentioned awhile back? Gotta spend the dividends I suppose. Thornhill’s always complaining about having to holiday a couple of months overseas each year in an effort to spend some of his dividends.
     
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  6. therealAusting

    therealAusting Well-Known Member

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    If retiring at 61 with $750k I'd rather have 10 really fun years on 75k (with interest/divs etc you'd probably get 15yrs). Then go on the pension at between 71 to 76years.
    Or do some variation say $60k for between 12.5years and 18.75years. That would bring you up to between 75.5years old and 89.5 years - at that rate you more than likely wouldn't outlive your funds.

    This is off the cuff and really ad hoc......
     
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  7. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I had no idea about Superannuation until I came back from a stint overseas and noted that my balance had done nothing over a long period. I realised I was getting scammed and started finding out the simplest way to make my money work for me whilst doing as little as possible. I still consider myself uneducated with respect to Super but I am an encyclopedia compared to before.

    I assumed that putting money away as per the government's guidelines would be enough. Only after doing a bit of research did I realise how little I knew and how that was going to be detrimental to my retirement.

    I think many Australians are in the same position I was in.
     
  8. sanj

    sanj Well-Known Member Premium Member

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    Absolutely many are in the same position, ultimately despite the big strides over last couple of decades, were still largely a country of financially illiterate boofheads

    Ever wonder how so many privately owned bueineeses in Singapore seems to constantly buy up businesses and properties in Australia overthe last few decades but so few our businesses do the same elsewhere?

    Werebthe cashed up bogans and Beverly hillbillies of the world, fortunate to live this wonderful life in an amazing country almost in spite of us and our governments whereas other countries have created incredible achievements out of nothing with no natural resources
     
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  9. sanj

    sanj Well-Known Member Premium Member

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    The famous term lucky country was coined by the author as an insult, as he felt were so fortunate in Australia and have to try so much less than others elsewhere that we gtlet lazy and complacent.

    Your example of ignoring your super for so many years despite literally more than a months wages q year going into it and the constant ads about super and living in the he information age is a perfect example of the complacency everywhere in this country. Not picking on you btw, millions of others do the same and most take much longer to wake up than you have

    Ultimately people will spend more time resesrfhubt their new phone or TV purchase or next holiday than they will on signing a building contract for hundreds of thousands of dollars or on considering their financial future etc and we have along way to go still re financial education imo
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    I've never spent much time resesrhubting those things. :p
     
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  11. Lacrim

    Lacrim Well-Known Member

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    I'm guessing you don't get the aged pension if you own a swag of investment properties??
     
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  12. Lacrim

    Lacrim Well-Known Member

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    Was it because the fees were too high...or was it during a flattish period of the market?
     
  13. sanj

    sanj Well-Known Member Premium Member

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    God damn it. Changed phones lately and it's driving me mad.

    Although to be fair, if you haven't resesrhubted you haven't really lived

    The term is from an ancient indigenous word to describe fat fingers
     
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  14. kierank

    kierank Well-Known Member

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    Under the Asset Test, one’s Aged Pension starts reducing when one’s swag equals $380,500 and cuts out when one’s swag equals $830,000.

    These limits are for a couple and one’s swag can have others things besides IPs.

    Assets - Australian Government Department of Human Services
     
  15. Pier1

    Pier1 Well-Known Member

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    Should have spent a little more time resesrhubting phones before purchasing;)
     
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  16. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I consider myself educated and with a thirst for knowledge. My point is that if I knew nothing about superannuation then the same would apply to most Australians. Therefore the government should spend more money on educating the public about superannuation and finances, which should provide a good ROI given the large aging demographic who will need a pension if they haven't provided for themselves. To increase motivation they should also reduce the aged pension on a sliding scale so people know exactly what to expect when they retire.

    Australia is the lucky country and we can only blame ourselves for squandering the wealth. Many Australian people expect a certain way of life and the catch is that the politicians have to make stupid, short-term decisions to maintain expectations. Unfortunately when the money runs dry and Australia has no knowledge based economy we will be called the "stupid" country and suffer accordingly.
     
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  17. sanj

    sanj Well-Known Member Premium Member

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    Agreed. Again, to be clear, I wasn't being disparaging about you, if anything you're a great example as you're more educated financially than majority and still didn't consider super much and so we can only imagine how low the general understanding is in the country
     
  18. sanj

    sanj Well-Known Member Premium Member

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    Hahaha I deserve that
     
  19. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Fees were the culprit and I trusted the advisor who was a friend of a friend. In hindsight the investment started a couple of years before 2000 and finished a couple after 2008, which wasn't an ideal period, but the results should have been better.
     
  20. Dean Collins

    Dean Collins Well-Known Member

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    It does in Australia because there is a lack of competition in the Australian superannuation market.

    Here in the USA the long term average return in 401k's (eg super) is 7-8% and that's after fees....

    Check out Vanguard VPmax and POGRX and wonder how much you are being ripped off by AMP/Macquarie etc.....
     

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