MySwag.org The Off-road Camper Trailer Forum
General => General Discussion => Topic started by: UIZ733 on July 25, 2013, 02:29:14 PM
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As the title says, "Are you retired"?
If the answer is yes and you have been retired for some time, were the estimates of what was required to sustain a comfortable lifestyle accurate or not.
I am not interested in how much you spend, earn etc, more trying to get a handle on the various institutions/people/planners tell those planning for retirement.
Interested in real life experiences without being intrusive.
An example;
The Theory
A common rule of thumb is that if you want to retire at 60, you will need about 15 times the amount you have calculated for your annual after-tax retirement expenses. So if you estimate $60,000 per year then you will need $900,000.
If you can wait until 65, you may only need 13 times expenses, which will be $780,000. Remember, if you plan to leave a legacy to your children or have a holiday home, then you need to add the cost to this estimate.
Another traditional way of working out how much you might need in retirement is to plump for 70 per cent of your net income in the last year before retirement (not too useful if you are 10-15 years away from that date).
This approximation, or guestimate, was a standard for many years. However, it may be too general, and you may be better served by having a more detailed understanding of your actual needs.
See full article: http://myob.com.au/blog/how-much-do-i-need-to-retire-at-60/#ixzz2a1mT3Q5a (http://myob.com.au/blog/how-much-do-i-need-to-retire-at-60/#ixzz2a1mT3Q5a)
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I am interested in the replies you hopefully get. Whilst I am a long way off :'( this topic interests me. One thing that some people don't factor in is some new retirees make major purchases like a new car (their last one) or renovations to the home but these are a one off typically and will seriously inflate your first, second or third year spendings but it should dramatically reduce after that.
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I am interested in the replies you hopefully get. Whilst I am a long way off :'( this topic interests me.
Don't cry. You have longer to live. :cheers:
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Too late for me to bother about the calculations - retiring in 49 days time - yes 7 weeks.
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Too late for me to bother about the calculations - retiring in 49 days time - yes 7 weeks.
CSS or PSS? (thats if you are in the PS)
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Been retired four years come July 31. Whenever I read articles about how much you need to retire, I wonder where the authors are coming from. The amounts they talk about are ludicrously high, certainly far more than I have.
Own my house, have two vehicles (including a 4WD). We eat well, drink (too much!) and travel (SWMBO is now on a three-month trip to Europe and I'm about to head north from Perth for a four-month camper trailer trip).
We are not rolling in money, but we get by just fine with the help of a part pension. OK, I have to allow for fuel bills, but some of the beaches I plan to stay on charge $35 a WEEK.
One often overlooked point to ponder for blokes is that, probably for the first time in your married life, you are going to be home 27/7. Believe me, this is not necessarily a good thing!
Cheers, Tony
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One often overlooked point to ponder for blokes is that, probably for the first time in your married life, you are going to be home 27/7. Believe me, this is not necessarily a good thing!
There's a bloody good reason to keep working :)
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Olddigger I told the missus I'll be cutting her loose when I retire. I'll have plenty of time to do my own cooking and cleaning ;D
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"One often overlooked point to ponder for blokes is that, probably for the first time in your married life, you are going to be home 27/7. Believe me, this is not necessarily a good thing!" Quote Oldigger
Ha ha you go from being the boss to 2nd in command in a company of two...............................
I haven't read the full article but if you invested in an asset class, returning 7% to 8% return your $900,000 may pay you $60K to $70K.
But you obviously have to take on more risk than throwing it in a term deposit, not silly risk, but some.
I'll use Real Estate as an example......and I am not trying to sell anything here.
I recently sold a property with a 5 + 5 year lease, it was rented for $60,500 per annum. I sold it for $800,000.
So the purchaser probably paid about $840K gross allowing for stamps and legals etc.
The tenant pays all the outgoings so the $60,500 is what ends up in your back pocket.
The tenant is a multi national and its a dentist so fit out cost for them is massive and being a quality publicly listed company they will pay their rent on the first of the month, every month until the lease ends.
So the guy who bought that gets a return of 7.20% ( $60500 / $840,000)
But the risk is that, that company may need larger space, or relocate to a more desirable trade location at the end of 5 years, and you have to find a new tenant. So thats the risk you take, but if the market is performing normally, the value of the property should have gone up and you will still have your capital intact.
Shares are much along the same lines they are more tradeable and liquid than real estate, but the market can be very volatile and risk is assessed accordingly.
Its worth getting some good financial advice to help you with your superannuation portfolio. Find someone wealthy you know and ask them who they use.
Cheers Nomad.
Edit.......quoted wrong post.
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To extend on Nomad's post, the 1/3 rule is always a good guide for a diversified portfolio, 1/3 cash, 1/3 stock, 1/3 real estate.
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A good life insurance policy on your partner is always a good Plan B. too.
If look up "We Shoot Wife's R Us", they are surprisingly cheap for the current economic climate.
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Unfortunately yes, medically retired at the moment, but I hope to one day get back to work.
Tjupurula
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Hey Guys, here's the stats:
http://www.superannuation.asn.au/resources/retirement-standard (http://www.superannuation.asn.au/resources/retirement-standard)
From my experience these are pretty realistic.
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We have been "retired" for just over 2 years. The " " is that we still own a business & run it from home, as such we have found that the quoted $60k pa for the 2 of us is about right.
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Can I answer this in 12 months time ??? :cheers:
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We have been retired for 12 months. We planned on the $60k per year and that has been about right so far. We are actually drawing down less than that from our super as I have a part-time job with my old company which makes up the difference. As far as spending time at home, that has not been a problem up till now.
Mal :cheers:
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PSS -
CSS or PSS? (thats if you are in the PS)
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Hey Guys, here's the stats:
http://www.superannuation.asn.au/resources/retirement-standard (http://www.superannuation.asn.au/resources/retirement-standard)
From my experience these are pretty realistic.
That, of course does not allow for any major house maintenance, overseas travel or capital items like new cars, campers/caravans, boats, etc.
Cheers
Parry
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An interesting thread.
I have tried to work out when to retire. Though I am 47 I am kind of locked in until our youngest finishes high school which would make me 62 :laugh:
At this stage I am planning 65 with the last three a big savings effort to finish off.
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This is an interesting thread. I retired 5 years ago after my wife died of cancer. I had what I thought was a comfortable nest egg (nearly 500K), and I was drawing an allocated pension of 36k a year, but unfortunately the GFC was still having an effect and I lost over 100k of my gross amount. I started drawing a part age pension at 65 (I am 68 now) and my gross amount has been static for the last 3 years. I have not resorted to drawing any money out of my gross.
Just recently I sold my house here in Mackay, and my elder son and I have invested some of the proceeds of the sale (plus some money of his) into a 5,000 acre cattle block about 130k south of here. It will be a new venture for me but one which will get me out of the pubs. The block will run about 400 breeders. We have already purchased 70 ptic cows to kick us off.
One good thing about this whole plan is that, as some of the central Queenslanders will know, I will be in the best mud crab territory in the state, and it just so happens that I make and sell crabpots - 900mm diameter 10mm galvenised steel rings with 32mm poly posts and using prawn trawler mesh. So, one of the first things on the shopping list, besides a quad bike is a boat. I sold my Jayco Dove, but after about 6 months on the block, I think I will start getting itchy feet again.
I don't anticipate any problems in the future, but that is in the hands of the gods.
As I said at the start, this is an interesting thread, and after I get fully settled on the block, which is right on the Bruce Highway, I would like to see a few swaggers drop in for a beer (I would even have a VB for Jamie.)
Cheers
Graham
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One good thing about this whole plan is that, as some of the central Queenslanders will know, I will be in the best mud crab territory in the state, and it just so happens that I make and sell crabpots - 900mm diameter 10mm galvenised steel rings with 32mm poly posts and using prawn trawler mesh. So, one of the first things on the shopping list, besides a quad bike is a boat. I sold my Jayco Dove, but after about 6 months on the block, I think I will start getting itchy feet again.
Showroom floor :cheers:
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The honest replies are appreciated. We are in our late fifties, children are self sufficient in recession proof careers and are well and happy. We are debt free and have a reasonable super balance and "good jobs". We are healthy, however many friends, family, acquaintances and work colleagues of similar ages are crook through no fault of their own and the news does not get any better. We are are all suffering from TMB (too many birthdays). Just trying to make sense of it all. When is enough enough?
First step is next year off on long service leave ;D (God bless the Government that sanctioned this) and see how it goes. We don't mind working, however the idea of exploring this glorious land appeals even more.
A nagging fear is giving up what you have worked hard for (the benefits of full time permanent employment etc) and venturing into the unknown ...............................................again.
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As someone who is not super balanced exceptional, the key seems to be retiring at close to aged pension age as possible and not having an exceptionally large asset base, apart from owing your family home and not having any large outstanding debt.
As a couple, we aim ( under current provisions ) to retire at age 67 owning our own home and able to claim the full aged pension as a couple ( currently about 28k). With our combined super at that time of approx 400k it should be possible to have a combined allocated super payout and aged pension of $50k plus in today's terms. Exorbitant amount, perhaps not, comfortable, probably, given that we plan to travel within Oz and don't live an outlandish lifestyle.
Hopefully no future government stuffs up our plan. Otherwise, not a happy camper!