Assets ride rally to records

Discussion in 'Superannuation' started by sammysilver, Aug 26, 2013.

  1. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    http://www.smh.com.au/business/assets-ride-rally-to-records-20130825-2sjui.html

    Australia's pool of retirement savings has overtaken the total value of Australian bank deposits, after superannuation assets swelled to $1.62 trillion in the year to June.

    Superannuation assets soared by $217 billion, or 15.5 per cent, last financial year as a result of a buoyant sharemarket and growing member contributions, figures from the financial regulator show.

    The surge means the super pool now exceeds the $1.6 trillion that households, businesses and others have on deposit in the banking system, an amount that grew by 6 per cent over the financial year.


    This is certainly changing the dynamics of the Australian economy. I think the smart set will get into PMs and PM mining stocks.
     
  2. willrocks

    willrocks Well-Known Member Silver Stacker

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    Does that include compulsory contributions of 9%. If it does it grew by somewhere around 6.5%. That's barely keeping up with real inflation.
     
  3. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Good point, it must include the 9% but also the other side such as lump sum withdrawals and outgoing monthly returns.
     
  4. willrocks

    willrocks Well-Known Member Silver Stacker

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    Compulsory super was introduced 21 years ago in 1992. So the number of withdraws probably won't peak for another twenty years. But it would be interesting to know how much was withdrawn.
     
  5. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    When the stock markets tank again it will all disappear like tears in the rain and Australians will stand there saying "What happened? Someone has to be responsible for this and refund our money. What are we going to do? Someone is to blame. I didn't see it coming. What is the government going to do? How am I going to pay for my boat?"

    Hopefully the Liberals will remove Labor and the unions attacks on SMSF's so that at least some Australians will keep their money.
     
  6. willrocks

    willrocks Well-Known Member Silver Stacker

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    IMO there's going to be a lot of disappointed retirees when the pension gets pulled.

    [​IMG]
     
  7. AngloSaxon

    AngloSaxon Active Member

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    Don't think your maths is right there Willrocks. Contributions at 9% per year doesn't mean the accumulated pool of 20 years worth of contributions + investment returns, compounded, will raise the pre-existing pool by 9%.
     
  8. Byron

    Byron Guest

    If i'm reading the table right is sounds about correct. My demographic has an average of 45k.

    My better half and i have worked 15 years each and without putting any extra in we would barely have enough super to last us 3 years in retirement.

    Having a paid off investment property with a reliable weekly income is the only option to be self sufficient in retirement.
     
  9. JulieW

    JulieW Well-Known Member Silver Stacker

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    Or two.

    This is what is fueling the current rebirth in housing. Big sales of inner city units to investors. $3-350k for a bedsit in St Kilda Melbourne for instance.
    Many boomers see the future and want some real assets, not just paper promises. A lot I speak to know that the government will steal their savings. Ditto the people leaping into SMSF RE purchases.

    Worth revisiting NonRecourse's primer on RE investing if you're thinking of this. I found he had some good advice and ideas. (sorry tried a search but couldn't find the link). The main points (from memory) were to be your own central bank, backstop any leverage with metals, sort out your tax structures with family trusts if that is applicable, and get assets into SMSF's that the govt will find harder to steal.
     
  10. Byron

    Byron Guest

    Thanks Julie. At the moment we have our hands full trying to smash the mortgage down as much as possible. Meanwhile the home is getting on and does need quite a lot of renovating, plus we are a growing family.

    Investment property will have to wait a few more years.....

    However there is some kind of long term plan in place:
    -Pay off home
    -Put funds aside for a large deposit on an investment property (at least 20%)
    -Add a bit extra to super every year ( no more than $10k)
    -Have a bit of PM for added security.
     
  11. willrocks

    willrocks Well-Known Member Silver Stacker

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    People piling in now are in for a rude shock unless rental returns tipple over the next decade. That's not likely with falling job numbers and static wages like we're seeing now.
     

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