Thread: Thinking about retirement? you may have to think again.

Originally Posted by DiscoMick

The calculator I checked said need about $600,000 now to be fully independent and comfortable.

That would very much depend upon how that $600K was comprised, whether you owned your home or were renting, how old you were, and what sort of life style/travel/car purchase etc you had in mind?
Pickles.

Originally Posted by Disco-tastic

Im not far behind you shane and i recently checked my super. About $50k. I thought that wasnt too bad but then i clicked the forecast button and by the time im 65 it will be about 400k - im fairly sure that'll be a pittance in 35 years.

Thats if we make it that far

If you have $50,000 now then compounding in a sound balanced fund will grow to about $500,000 in 35 years plus what you put in over that 35 years and compounded.

Originally Posted by Bigbjorn

If you have $50,000 now then compounding in a sound balanced fund will grow to about $500,000 in 35 years plus what you put in over that 35 years and compounded.

Yeah, thats what i figured - i was expecting a fair bit more.

I do pay my life insurance out of it, plus the government taxes, plus the super fund fees...

Somehow i feel like I'm not the one making money out of my super...

Originally Posted by DiscoMick

I'm well up on the average and the plan will allow me to choose to retire any time after February 2019, but I'll still need an aged pension top-up because the government taxes me if I save more than a certain amount extra above the employer contributions. They have just cut that from $35,000 to $25,000, which I think is dumb.
Note that the politicians super is 18 percent, they are looking after themselves.

Makes you angry, hey

Originally Posted by Disco-tastic

Yeah, thats what i figured - i was expecting a fair bit more.

I do pay my life insurance out of it, plus the government taxes, plus the super fund fees...

Somehow i feel like I'm not the one making money out of my super...

Stop paying that life insurance. Most funds are ripping off their members via this scam. Go shopping for a sound low fee fund. nowadays it is your right to choose your fund. I recommend Q-Super which was the State Govt's public service super fund which is now open to people from outside the public service. It is a bunch of public servants looking after their own money and they do it very well.

Originally Posted by Bigbjorn

Stop paying that life insurance. Most funds are ripping off their members via this scam. Go shopping for a sound low fee fund. nowadays it is your right to choose your fund. I recommend Q-Super which was the State Govt's public service super fund which is now open to people from outside the public service. It is a bunch of public servants looking after their own money and they do it very well.

Agree re Life Insurance, & "sound low fee fund". IMHO Super, in the right fund, is a pretty sound investment, tax effective too! Not that hard to find a good fund, as the long term returns on any of the larger funds would be easily seen on the net. Family, friends, & workmates can be sources of good info too.
I have encouraged my daughter & son in law, to pay off their mortgage ASAP, & to increase their super contributions, both of which they are doing, at some reduction in lifestyle, but way to go for a sound future.
Pickles.

Originally Posted by Pickles2

Agree re Life Insurance, & "sound low fee fund". IMHO Super, in the right fund, is a pretty sound investment, tax effective too! Not that hard to find a good fund, as the long term returns on any of the larger funds would be easily seen on the net. Family, friends, & workmates can be sources of good info too.
I have encouraged my daughter & son in law, to pay off their mortgage ASAP, & to increase their super contributions, both of which they are doing, at some reduction in lifestyle, but way to go for a sound future.
Pickles.

In my opinion, that's about the best advice a dad can give. Once your not paying off a mortgage, the excess money can be amazing. From there all sorts of things can be achieved, be it topping up super or even going to an investment source, perhaps another property or stocks etc.
Myself, I went the property route, even though I hadn't finished paying off the first. I felt it was a big risk to start with, but once I'd jumped, it all seemed to work, and I could see the benifits. Along the way though, I did have some massive moments, however, if I'd have done stocks or similar,, I could have lost the lot, and not been able to recoup,, a house will always be there and wanted.

And very happy to see the daughter taking a similar tone. Having said that though, she may be in a better position to gain info about stocks etc from her work colleagues who seem to adore her,,, and they're all very wealthy people who definitely know all the right access to wealth.

Originally Posted by Disco-tastic

Im not far behind you shane and i recently checked my super. About $50k. I thought that wasnt too bad but then i clicked the forecast button and by the time im 65 it will be about 400k - im fairly sure that'll be a pittance in 35 years.

Thats if we make it that far

Life expectancy for most of us is fairly good nowdays so I dont think the majority will have to much issue reaching 65. The book the barefoot investor has been mentioned above and he shows how you can achieve retirment with only $250k under the current rules (providing you own your own home).
I've unfortantly been in the trap that I previously mentioned and not really paid any attention to my super in my early years. Its only been the last 6 odd years that I've been more active with it, so far its been paying off for me with $220k sitting there at the moment, so in another 30 odd years it should put me in a good place - worth mentioning as well that my wife has not a lot in super and currently is quite happy being the stay at home mum for the last 10 years and at this stage dosent have any plans to return to the workforce in a hurry (we still got a 3yo at home). So theres no forseable significat contributions to be made from her so I'll be it for us.