Super, Retiring Income and Pensions

[chester ver2.0]

Beachman

Managed share portfolio you can set up yourself through colonial or other big clearing houses just diversify the portfolio across multiple sectors to spread the risk for eg my managed portfolio contains several sectors
Aus shares (maily blue chip BHP, Telstra etc)
Global Shares
Property Securities (Mainly commercial such as Westfield trust etc)
Biotechnology (emerging sector due to aging population)
Geared share (this is more in the area of futures and some CFD's risk are bigger but so are rewards i can handle the risk atm but will drop this later in life when i am looking for security)
Emerging leaders (small cap stocks with large potential e.g ARB)

5k is usually min buy in subsequent buy ins attract the management fee, but that is it no annual fees or fees when i sell

When young get the dividends reinvested in more shares as this is like compounding interest on top of the capital growth

[fishfinder]

Your answer is in the generosity of the company you work for - All you need to do is tell ALL staff that you know a good financial adviser and if they go through that adviser they get a complimentary bottle of special bourbon  get an ABN register a fancy business name and start advising all staff at $600 / pot - not rocket science - now could you please forward $600 to me for that advice

[bully]

I am 37, do you really think the government is going to let me retire. I don't trust super and I only put the minimum amount in. I have put a far bit into bluechip shares and have an investment house, but I still don't see how we are ever going to retire due to basic living going through the roof. Let alone helping the kids out. My plan is to find a block of land where we would like to live, build a big shed, sell up everything, put furniture in the shed and head off around this great country. Hopefully we can travel on the interest earned and build a house when we arrive home. Lets see what happens.

[D4D]

Emerging leaders (small cap stocks with large potential e.g ARB)

I think 4 years ago was the time to invest in ARB when it was just ARB and TJM, now every man and his dog is making 4wd gear.

Although David Koch agrees with you
http://www.news.com.au/finance/money/koch-stockmarket-staples-to-buy/story-e6frfmd9-1226778478204

ARB CORPORATION (ARP)

ARB Corporation specialises in four-wheel drive accessories and light metal engineering works and, according to the analysts, is best in class.

Investors tend to think of research and development as healthcare stocks. But ARB have a real competitive advantage in the area.

People in the bush and who work in resources really trust ARB and it's picking up overseas as well

[GeoffA]

Hey Danny,

They way keep changing the rules, and moving the retirement age out, you'll have plenty of time......

[DannyG]

Hey Danny,

They way keep changing the rules, and moving the retirement age out, you'll have plenty of time......

60 will do me mate no matter what! So ill be living somewhere in between poverty and luxury, where abouts in between will depend how much i put in I guess

[Kangaron]

I am 37, do you really think the government is going to let me retire. I don't trust super and I only put the minimum amount in. I have put a far bit into bluechip shares and have an investment house, but I still don't see how we are ever going to retire due to basic living going through the roof. Let alone helping the kids out. My plan is to find a block of land where we would like to live, build a big shed, sell up everything, put furniture in the shed and head off around this great country. Hopefully we can travel on the interest earned and build a house when we arrive home. Lets see what happens.

The only sensible post so far.
Why try and maintain a city lifestyle, only big bills and headaches.

[DannyG]

Wow I wish I didn't start this thread now, I'm going to retire broke, so at least I'm retiring with the same income I have now!

I'm guessing most people on this earth earn more than twice as much as me and are used to living on that.
If I have super worth 1.5 million I'll be retiring on an income far better than I earn now

[Mrs smith]

I am 37, do you really think the government is going to let me retire. I don't trust super and I only put the minimum amount in. I have put a far bit into bluechip shares and have an investment house, but I still don't see how we are ever going to retire due to basic living going through the roof. Let alone helping the kids out. My plan is to find a block of land where we would like to live, build a big shed, sell up everything, put furniture in the shed and head off around this great country. Hopefully we can travel on the interest earned and build a house when we arrive home. Lets see what happens.

I'm with you, super rules will change.
Only thing I'd do differently is buy an older property with a larger block, fence off
the back and build a shed. Rent the house out and travel.
It's only your money while you have control over it.

[Garfish]

Yes super rules, will change,  and it depends on what you want to do,   

My parents, when they retired only had minimal superannuation and set up a pension draw it off around 10k per year or $800 per month, this goes close to paying large bills, eg, elec, rates, health insurance

Then their aged pension lets them live,  they go away for holidays every year for a month or so and have a good life, if in my retirement I can do the same i wold be happy.  But the pension could go the way of the dodo before then......

[Orinoco]

Hi DannyG

Have you considered life insurance bonds? Not necessarily exciting but possible worth a look.

The way they work is that if you hold them for 10 years or more the income they earn is tax free.  Each year you can put in up to 125% of what you put in the previous year and there is no limit to the number of years you can contribute.

If you pull money out earlier you will need to include that in your tax but you get credit for the tax paid by the company (A bit like franking credits). How much you include as income depends on how long you have held the bond.

As I understand it, after the ten or more years you could transfer it to you kids if you choose and it keeps the tax free status in there hands as well.

Hope this helps.

Good luck with your search.

[Mongoose]

PM sent.

Rgds,

Rohan.

[just startin]

I started a Transition to Retirement at age 55, now age 57 and salary sacrifice $25,000 inc. Gov. Guarantee 9%(not $35,000) per year at 15% tax rate as allowed by the gov. Any money above this figure is taxed at a higher rate. This is what my financial adviser told me. Hope he is right, he may be leading me astray on the amount going by what has been said previously.

[Garfish]

25k is correct unless you were 59 or older at 30 June in which case 35k is available for concessional contribution
http://www.ato.gov.au/Individuals/Super/Other-contributions/Concessional-(before-tax)-contributions/

[RobM]

What's the magic number. ?
I'm 58 and I don't plan on being at work when I turn 60, and hopefully part time before that.
I know everyone has different lifestyles which  makes comparison difficult, but it would be nice to hear from others who have recently retired, or in a similar position to me (itching to retire), as to what their magic number is/was.
Most people are reluctant to divulge financial information and fair enough, but even "ball park" figures would help others has some confidence that they are heading in the right direction.

My wife and I have a modest lifestyle, would like to go overseas a bit, but if money was short we wouldn't miss the overseas trips. ( Plenty to see here ).
I don't expect to live to be too old but I think my wife will receive a letter from the Queen.
Would be nice to leave something for the grand kids to give them a kick start as it seems to be getting tougher for the young ones.
We own our home but it needs a lot of TLC, probably about 100k's worth.
We have a reasonably new dual cab( 2010 BT50) but want to change over to a single cab for the slide-on under construction ( still ).

My magic number is  $1.8M - $2M  allowing for renovations and vehicle upgrade.

Too Little / Just Right / Too Much  ?
Opinions anyone ?

RobM

[UIZ733]

What's the magic number. ?
My magic number is  $1.8M - $2M  allowing for renovations and vehicle upgrade.

Too Little / Just Right / Too Much  ?
Opinions anyone ?

RobM

Two million @ %8/PA would give you an income of $160,000 PA. If I was in that situation I would not be seen for dust.
Even half the amount would be just fine. Never saw pockets in a shroud or a trailer behind a hearse yet!

[Mrs smith]

47 with 20k in super, looks like a retirement based on bread an water for me. lol

[DannyG]

What's the magic number. ?
I'm 58 and I don't plan on being at work when I turn 60, and hopefully part time before that.
I know everyone has different lifestyles which  makes comparison difficult, but it would be nice to hear from others who have recently retired, or in a similar position to me (itching to retire), as to what their magic number is/was.
Most people are reluctant to divulge financial information and fair enough, but even "ball park" figures would help others has some confidence that they are heading in the right direction.

My wife and I have a modest lifestyle, would like to go overseas a bit, but if money was short we wouldn't miss the overseas trips. ( Plenty to see here ).
I don't expect to live to be too old but I think my wife will receive a letter from the Queen.
Would be nice to leave something for the grand kids to give them a kick start as it seems to be getting tougher for the young ones.
We own our home but it needs a lot of TLC, probably about 100k's worth.
We have a reasonably new dual cab( 2010 BT50) but want to change over to a single cab for the slide-on under construction ( still ).

My magic number is  $1.8M - $2M  allowing for renovations and vehicle upgrade.

Too Little / Just Right / Too Much  ?
Opinions anyone ?

RobM

What are you waiting for mate, go for it. If I was in your position NOW id consider pulling the pin and Im only 43...ok id wait a little while yet but get out there and enjoy it while your young enough.

[HKB Electronics]

Two million @ %8/PA would give you an income of $160,000 PA. If I was in that situation I would not be seen for dust.
Even half the amount would be just fine. Never saw pockets in a shroud or a trailer behind a hearse yet!

To be safe I would say 4% per annum indexed to the cost of living so say $80000 tax free from super is still and
as you wrote "If I was in that situation I would not be seen for dust.

[RobM]

This is the sort of encouragement I need to pull the pin. 
Might get to go to a Myswag meet sooner than expected.
I agree with the 4% indexed  as being reasonable, I've been working on 3.5% above inflation. So $1.8M would earn $63,000 per annum.
This is more than I've ever spent in one year, except for when we bought a new car.

[jkwpajero]

I am 58 next March and retired at 55 on an indexed, for life, Commonwealth pension. My wife will be on the same arrangement in 5 years. We are both so fortunate to have had long careers in the Commonwealth public service under the old CSS scheme. If anyone here understands how it operates you will understand my grin.  We live a pretty simple life and enjoy what we do. It's all about using the money you have wisely.


James

[Garfish]

I am 58 next March and retired at 55 on an indexed, for life, Commonwealth pension. My wife will be on the same arrangement in 5 years. We are both so fortunate to have had long careers in the Commonwealth public service under the old CSS scheme. If anyone here understands how it operates you will understand my grin.  We life a pretty simple life and enjoy what we do. It's all about using the money you have wisely.


James

Us younguns can only dream of defined benefit or similar schemes...... But with the general short stay in jobs now there isn't a lot of benefits....

[Swannie]

All this stuff about retirment hurts my head... I'm just gonna keep spending it like it grows on trees
Why should I be any different to the wife and kids!!!!

Swannie

[UIZ733]

I agree with the 4% indexed  as being reasonable, I've been working on 3.5% above inflation. So $1.8M would earn $63,000 per annum.
This is more than I've ever spent in one year, except for when we bought a new car.

Drawing down at about 4% would basically ensure the capital would remain intact right up to carking it. What is the point in that? Surely the idea is use both capital and growth during the retirement phase of super to produce the desired income.

[HKB Electronics]

Drawing down at about 4% would basically ensure the capital would remain intact right up to carking it. What is the point in that? Surely the idea is use both capital and growth during the retirement phase of super to produce the desired income.

True but how much can you draw down with running out before you cark it is the catch 22?