Reads like an infants formula portfolio, with both ATM and SML.
"The Milky Bar Kid" is back in town.!...lol.
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How much is enough ? For someone approaching seventy with your average expected lifespan and modest tastes with spending and you and your wife both getting super I think you can afford to relax a bit Percy. Retirement isn't simply about the amount of one's retirement fund its also about the intellectual capital one brings to the table in terms of their ability to work their retirement savings to their best advantage. With your investment portfolio and share skills I think you can afford to feel quite relaxed about having your retirement needs met. You could even say you're well positioned.
Yes we are very "well positioned".
There seems to be three or more types of retirees.
!] Those like yourself and Minimoke who plan very well.
2] Those like myself who surprise themselves of being "well positioned" when it seemed in achieveable,ten or more years from retirement.We are the ones who free up a great deal of capital entering a retirement village.
3] Those who never planned or changed their lifestyles, and find they either have to keep working,or just keep getting themselves further behind.These include big earners who are big spenders.Entering a retirement village is a "get out of jail card."
4]Those on very low wages,most probably renters,who have not been able to save,and will never be able to afford a retirement village unit..
The interesting thing that's never really been fully discussed before on this thread is the degree to which SUM and others do provide a safety net for those who have not saved for their retirement. Yesterday Scott mentioned that SUM's least expensive apartments (one bedroom) in Auckland start at just $400K and the average person selling the average Auckland house can free up as much as $600K through the shift into a smaller SUM apartment and still get all the benefits of a supportive lifestyle and resort type facilities and the camaraderie of others. He went on that some of them have no idea what to do with so much money and some of them had no idea their home was worth about a million dollars. Average age of a person moving into an apartment is 81 so that much money at that age for someone who's never had much before can be quite a shock. One would hope they have access to good quality financial advice.
:lol: :lol: Many are too old to travel or drive so fine european cars and business class travel are off the menu too and if you haven't got much appetite and your liver is a bit second hand that doesn't leave many options left does it :)...and some people wonder why grandkids get spoilt rotten.
I presume you man those who have paid for their own home but have no retirement savings rather than than those who are renting and have no savings.
I see owning your own home mortgage free as a valid long term investment option. Because it allows you to down sell, sell and move into a retirement village or use reverse equity options. Which is why I see opportunities in SUM (given RYM is fully priced) and HBL
(those who have rented and have no savings are pretty well fvcked - they should have put difference between rent an cost of home ownership aside)
Yes that's what I was getting at. Plenty of people fall into that category in my opinion. One of the biggest trends at the moment is people leaving Auckland to retire in a cheaper part of the country to cash in on their equity. Yes a nice comfortable home is a rewarding long term investment in more ways than one, that's for sure. I don't really think of our one as an investment though, more a lifestyle choice, but its quite nice to know one could trade down if required and free up significant capital :)
My wife and I were having one of our many sector discussions last night. I asked her whose village she would choose to live in upon retirement? She answered that if there was a RYM and SUM village in the same area, she would always choose the RYM village. Her reasons were simply that RYM as a company look after their residents better and offer more to their residents. SUM are a great development company, but i thought I'd put another perspective up other than just SP increase potential. RYM are priced at a premium, but there are solid reasons for this. PS-I highly value my wife's opinion on this with her immense coal face sector experience. PPS-Just to eliminate any bias, my wife nor I hold no SUM or RYM shares currently.