Pension Plan

Discussion in 'Superannuation' started by JulieW, May 4, 2016.

  1. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,422
    Likes Received:
    2,705
    Trophy Points:
    113
    Location:
    Australia
    Last night's budget statement on retirement funds as dissected by Daily Reckoning.

     
  2. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,969
    Likes Received:
    54
    Trophy Points:
    48
    I'm guessing that now many people currently under 50 have lost confidence in the super system and will stop all voluntary contributions.
     
  3. errol43

    errol43 New Member Silver Stacker

    Joined:
    Apr 13, 2010
    Messages:
    6,203
    Likes Received:
    9
    Trophy Points:
    3
    Location:
    Bundaberg
    Where do the experts tell you to put your super with good returns and no risk...In these times it is no real benefit having $500 k at retirement and getting 3% interest on your money. You will still have to rely on the pension and most likely you will have to spend some of the $500k to survive.

    Great Post JulieW

    Regards Errol 43
     
  4. errol43

    errol43 New Member Silver Stacker

    Joined:
    Apr 13, 2010
    Messages:
    6,203
    Likes Received:
    9
    Trophy Points:
    3
    Location:
    Bundaberg
    Three percent on your savings at the banks...Less inflation and don't forget to pay your tax...Buy silver! At least you have a chance sometime during the year to make 5%?

    What are the people here on SS who have SMSF investing in, I Wonder?

    What the hell are the experts in Industry funds going to in vest in, I wonder?

    Maybe derivatives? Go to the Casino?

    REgards Errol 43
     
  5. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,969
    Likes Received:
    54
    Trophy Points:
    48
    One big crash and it's all gone anyway.

    Gone. Gone. Gone.

    These suggestions of mysteriously good returns on Super at some indefinite time down the track never take into account a massive financial collapse that could while out people's enforced investments.
     
  6. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,969
    Likes Received:
    54
    Trophy Points:
    48
    Maybe halt all voluntary contributions and use the money to gain skills and land for self-sufficiency in old age?
     
  7. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    19,644
    Likes Received:
    2,807
    Trophy Points:
    113
    Location:
    昆士蘭
    Some diversification, cash, PM's and soon some property (which'll take care of the cash :lol: ). But our plans are nearly solely RE based.
     
  8. Kooka

    Kooka New Member

    Joined:
    Apr 11, 2016
    Messages:
    42
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Brisbane
    ((((((((For $1.6 million to generate an income of $90,884 requires a 5.7% rate of return.
    Please tell me Scott, where we can get that rate of return?))))))

    Someone need to see a financial advisor as a return of 5.7% is pretty low. Should be up around 9%...........

    I have a SMSF and retired some years ago. Most of my fund is invested in bank and other blue stock shares and while the price of the shares go up and down the income (dividend) stream changes little.
    The only things guaranteed in life are taxes and death.

    If you want to keep your money somewhere that is 100% guaranteed then leave it in the bank accounts as they are gov. guaranteed......
     
  9. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,969
    Likes Received:
    54
    Trophy Points:
    48
    But how old are you if you don't mind me asking? Dividend imputation, blue chip stocks, a strong economy and highly favourable preferential taxation treatment during accumulation mean those of a certain generation are wise to follow your strategy as it is very beneficial.

    But... "Past Performance is No Guarantee of Future Results"

    Anyone under 50 will not be investing in the same economic or government policy environment going forward. The landscape is changing.
     
  10. Kooka

    Kooka New Member

    Joined:
    Apr 11, 2016
    Messages:
    42
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Brisbane
    You're right investment strategy depends on your age. I'm 63 and retired in 2007 so I was well past the age of looking at investments with a degree bit of risk. I was more interested in the income stream so went mainly for the blue chip stocks.
    Yes your capital amount can and does go up and down but unless you need to sell anything it is only a paper gain or loss. I sat through the GFC without selling anything and while my income stream did drop it was still plenty for me to live on.
    Since then capital has soared and income gone up.

    Share investing is at best long term as the longer you hold good stock the better your return generally gets.
    As share prices go up the dividend percentage usually remains about the same. Therefore your actual return on monies invested rises providing the company remains good.....

    My best investment returns me about 25%. I brought these shares (SUL) on listing and they are now paying around $6.1% on a share price of about $8.... The 6.1% is around the same as they were paying when the first listed at a price of just over $2..per share
     

Share This Page