Originally Posted by
Bjauck
We have had a few good years of appreciating asset values so achieving a 5-6% in the future will be even more of a challenge. Share prices are even more prone to wild swings than house prices. Remember 1987, 2008, and ?
A couple retiring with a house and $2m in financial assets may still only have approximately $70,000 after tax income plus government super. It may provide a comfy but not an extravagant lifestyle. Private Medical bills, major house repairs, private hospital fees (without government subsidy as you would not qualify) for one partner may easily put a dent in the asset base and income. I think you may need those assets PLUS a fat Kiwisaver or other retirement scheme balance.