Pension Age may move to 70

I gotta be frank when it comes to all this commentary on pollies super. Firstly there is nothing you can do about it. You may as well compare your situation to your next door neighbour. Everyone will be in a different boat. What you need to focus on is your own situation and what you can do to change or improve it. Based on information from the Federal Government into Financial Literacy in 2005, a person earning $36,000 per year can be financially better off by over $790,000 over there working life if they are financially literate.

So it begs the question, how much time per week do people say on this thread spend getting financially literate and improving their own financial situation as opposed to whinging about what some pollie gets? The energy spent whinging would be put to better use by leaving the thread and getting some books ( I can recommend) and various blogs and sites to learn.

Now, I'm not saying you aren't entitled to a) your opinion or b) your right to have a whinge ;) but I would argue it is a self defeating mind set. To bring the hammer home, from the ABS-around 94% of the population will retire on $36,400 or less. 4.7% between $36,500- $78,000. 1.1% over $78,000. I wouldn't be worrying about what a pollie gets, I'd be worried about what I am currently doing to ensure I personally have a great retirement. For most of us, we have 40+ working years, that is a looooong time to build and create wealth regardless of what you do for a living and how big or small your paycheck is.

It does boil down to how financially literate you are, whether you have had a financial plan done ( DIY or through a professional) and making it front of mind. I know as I have made numerous stuff ups over the years as I was winging it like most, until I almost lost everything. I sought advice and am now an adviser myself. If I knew now what I did 10-20yrs ago, I'd be miles and miles ahead. Thankfully I am still youngish so plenty of time to keep improving on things.

So whinge you lot about what a pollie may get, but I will leave you with this- · The Yale University graduating class of 1953 was asked the following question, “How many of you have clearly established goals for your life? Three percent of the class replied that they had clearly established goals. Twenty years later the group was surveyed again and it was found that the original 3% with clearly established goals had greater financial net worth than the remaining 97% combined."



Regards


Stevo

Ugh, the good old "class of 1953" chestnut. While I'm sure this little anecdote is all the rage among financial planner business breakfasts, it never actually happened. These nonsense stories don't do much to boost my confidence in the financial planning "industry". If you cant fact check a suspect story, why should I give you any of my money?


http://m.fastcompany.com/27953/if-yo...lt-these-gurus

http://faq.library.yale.edu/recordDe...stitution=Yale

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Originally Posted by akelly

Ugh, the good old "class of 1953" chestnut. While I'm sure this little anecdote is all the rage among financial planner business breakfasts, it never actually happened. These nonsense stories don't do much to boost my confidence in the financial planning "industry". If you cant fact check a suspect story, why should I give you any of my money?


If Your Goal Is Success, Don't Consult These Gurus | Fast Company | Business + Innovation

Yale Business Research FAQ

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LOL, nice pick up. Regardless of whether the anecdote happened or not, the principle remains the same. When it comes to wealth creation, aside from winning lotto or a big inheritance, time is the biggest factor and having a plan. Funny out of all that I wrote that's the only thing you can pick on. I remember you akelly from when I was on here a lot more. Your more interested in creating a stir or a ding dong. Just your usage of words is an incitement to create a barny. You know it and so does everyone else. In the old day's I would have engaged, not so anymore.

Your entitled to your opinion and I am not going to sit here and defend my profession. It's a billion dollar industry helping millions of Australians. Like any industry or profession you get some rogues and hence FOFA. You also clearly have no idea of what constitutes the "financial planning" industry. There is so much more to what we do than just dealing with people's money. Check out my blog and see for yourself Stevo's General Financial Advice Page | Improve your current financial position, give you certainty around your future& increase the value of your assets .

Regards

Stevo

I guess that the financial planners have to go a see a couple who live in Melbourne or Sydney, with two children earning less than $100000 gross a year, paying a rent of $350 per week, own two cars to be able to go to work and do the "children deliveries"etc.
Do not forget the $75 a day cost for kindi if one is not going to school to add the the modest rent cost.
Ask them, financial planning my foot! hardly will be any money left for any unforeseen eventuality.

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Originally Posted by Chucaro

I guess that the financial planners have to go a see a couple who live in Melbourne or Sydney, with two children earning less than $100000 gross a year, paying a rent of $350 per week, own two cars to be able to go to work and do the "children deliveries"etc.
Do not forget the $75 a day cost for kindi if one is not going to school to add the the modest rent cost.
Ask them, financial planning my foot! hardly will be any money left for any unforeseen eventuality.

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Huh, sorry mate, but your post doesn't make sense?? Whats your point? Hard to tell :)

Regards

Stevo

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Originally Posted by stevo68

Huh, sorry mate, but your post doesn't make sense?? Whats your point? Hard to tell :)

Regards

Stevo

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Stevo, what I am trying to say it is that if there is not many left after paying all the living expenses, there is not money left to plan for the future, there is not a chance to even think in a financial planning.
Survival is only what matters and that it is a reality.

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Originally Posted by Chucaro

Stevo, what I am trying to say it is that if there is not many left after paying all the living expenses, there is not money left to plan for the future, there is not a chance to even think in a financial planning.
Survival is only what matters and that it is a reality.

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Ah, gotcha. Ok, I am sure there are people in that boat. In terms of our average client- mum/dad, cuppla kids, mortgage, PAYG, Combo income $70/80k. Results based on data to 2013- Mortgage payed out faster ( saving around $330k in future payments), reduced tax- average refund received around $9742, Av spend on hols- $6486, ave retirement income- $72,413.

I also have clients that are in the situation you mention, I do "pro bono" work and show them how to improve their situation, mainly around budgeting and debt management.

Ultimately in what I do, I can only help/ advise those that want to do something themselves. It's their plan, their future, they just need guidance and in many cases discipline to achieve their desired outcomes, whatever they maybe. With many clients I am more like a personal trainer, keeping them on the path if they start to stray ( ie increase expenses, splurge ie things that are taking them away from their goals).

Regards

Stevo

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Originally Posted by Chucaro

Survival is only what matters and that it is a reality.

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Or as someone quite eloquently put it, "When you're up to your neck in alligators, it's easy to forget that the initial objective was to drain the swamp."

Having a plan is one thing. Having the resources or the opportunity to carry it out is sometimes quite a different matter.

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Originally Posted by vnx205

Or as someone quite eloquently put it, "When you're up to your neck in alligators, it's easy to forget that the initial objective was to drain the swamp."

Having a plan is one thing. Having the resources or the opportunity to carry it out is sometimes quite a different matter.

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For sure, but by having a plan in the first place gives you direction. People will spend more time planning their annual holiday than for their financial future and hence why the statistics paint the picture that they do. Also by having a plan in place can go along way to making sure you aren't up to your neck in alligators to start with. Bit like planning a 4WD trip. If you just up and went without any research, planning etc and ended up in Simpson desert and broke down without any radio's, survival equipment, sat nav's, extra water etc. Things would be pretty grim. That's life without a plan.

If however you mapped out your destination and how you were going to get there, any obstacles you may come across, provisions that you would need, how long it would take and you broke down. Things may suck but they wouldn't be grim because you had a plan and this was part of your plan in case things went pear shaped. Ditto with real life. Having a plan is critical to not only achieving things currently but also in the future. Better to have money invested for your children's schooling in 10-15 yrs time as opposed to trying to find the money in 10-15 yrs time for example. In a nutshell, having a plan is good :D.

Regards

Stevo

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Originally Posted by stevo68

In a nutshell, having a plan is good :D.

Regards

Stevo

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I agree that having a plan is good. Assuming, of course that it is a good plan. After all, planning to secure your financial security by robbing banks or buying Lotto tickets has little chance of success. :)

I am just making the point that not having that plan scuppered by medical problems, natural disasters, global financial crises, government policy changes, unscrupulous or incompetent financial advisers, acts of God, or any of the other myriad of life's problems is even better. :D