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08-05-2018, 09:42 AM
#431
Member
Thanks Beagle for raising this topic as I've found very good information specially the link KW posted.
Something that got me thinking is not about how worry of what to achieve is more a feeling of frustration of how steep is the climb if you have to rely in your salary plus investments. I'm an IT specialist and sometimes I think of those who work on more physical demanding jobs that pay close to the minimum and the only thing could make a difference is the mindset. So I take the challenge anyway.
My country of origin had between 2010 and 2016 around 40% of inflation per year, last two years is around 20% but seems staying there. Usually the only asset there to beat inflation are shares but I believe is just 3% of the population who invest in the stockmarket.
So I said the mindset because if we don't keep it open to learn I think makes hard to achieve the goals. Again thanks to everyone as after reading the whole post I've learnt a bit.
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11-05-2018, 02:37 PM
#432
Originally Posted by Beagle
I agree and see that as a minimum target BUT here's another perspective from some retiree's I know well.
Mary has retired and lost her second husband to cancer many years ago. She lives in Turangi and is actively involved in the community and has very little in the way of retirement savings BUT she makes jams and pickles and knits colourful baby booties with pictures of cute farm animals on top which she sells at the fortnightly markets down there, often to tourists passing through. She makes about $300-400 per fortnight and she lives reasonably comfortably on that and her national super in her unencumbered home there which is basic and not worth much more than $100K but she seems happy enough.
Sylvia lost her husband a few years ago and lives on the National super plus a modest super policy her husband took out many years ago which pays for the monthly management fees, (about $550 a month) in the village she enjoys with a supportive and caring community. Her son manages a very small portfolio which pays her another $60 a week and she seems happy and well able to meet all her bills and travels down to see her extended family in Southland quite often.
Neil and Chris didn't have any money when they retired, in fact due to non existent retirement planning, excessive spending and some unfortunate events they still had a $200K mortgage on their modest Auckland family home. They love animals, (former manager of Animal welfare centre in Auckland), and didn't have enough room for their many different animal's and strays they took in at their home. They traded down to an nice unencumbered 8 acre property in Te Kuiti which cost around $250K from memory and run a full suite of chooks, pigs, sheep, goats e.t.c. as well as domestic animals they love including cats and dogs and seem very content. The bonus is they're close enough to Auckland and have room for their kids to come visit on the weekends and the kids seem to like having a break from Auckland.
Proof that you don't need an absolute fortune to retire on ?
Others I know have converted part of their house into a separate flat and rented it out and seem to be doing fine on one lot of rent plus the Supernanuation.
I wouldn't advocate aiming too low but I think we can all agree that human beings provided they're adaptable are capable of more than one way of skinning this retirement cat.
There's also the point that there's absolutely no guarantee whatsoever that you'll make it to say the age of 70 and even if you do its odds on favourite that you'll enjoy spending that XYZ amount of discretionary spend a lot more in your thirties, forties or fifties than you will in your nineties. Food for thought ? I think a balanced approach is best.
I've probably erred on the side of enjoying it as you go a little too much but you've got to call this thing as you see it.
You're welcome and don't forget this post I made in 2015. More than one way to skin a cat.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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14-05-2018, 08:25 AM
#433
I think the last sentence is probably the best one in the article. Maybe if the future is explained better then people might consider change.
https://www.stuff.co.nz/business/103...ularly-popular
Sad to see Labour trading votes for good policy at the last election. I guess we have a populist PM in Jacinda. To be fair John Key was a populist he got in because people liked him. He screwed them over raising GST and flattening a progressive income tax but he did it with a happy smile. I guess in a democracy our leaders will always be restricted by what the general public perceives as being OK.
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14-05-2018, 08:52 AM
#434
Originally Posted by Aaron
I think the last sentence is probably the best one in the article. Maybe if the future is explained better then people might consider change.
https://www.stuff.co.nz/business/103...ularly-popular
Sad to see Labour trading votes for good policy at the last election. I guess we have a populist PM in Jacinda. To be fair John Key was a populist he got in because people liked him. He screwed them over raising GST and flattening a progressive income tax but he did it with a happy smile. I guess in a democracy our leaders will always be restricted by what the general public perceives as being OK.
I think you're stretching the truth a bit Aaron by saying they flattened the progressive tax system when all tax brackets were reduced, fairly evenly http://taxpolicy.ird.govt.nz/publica...sonal-tax-cuts
We still have a very progressive income tax, unfortunately !
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14-05-2018, 10:32 AM
#435
Originally Posted by iceman
I stand corrected. Poor wording on my part. The progressive income tax rates were reduced not flattened, while the regressive GST tax was increased.
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24-05-2018, 08:37 AM
#436
Looks like labour has worked out how elections are won and lost.
https://www.msn.com/en-nz/money/pers...cid=spartandhp
I do recall Winner69 gloating about this sometime ago but it would be hilarious if people were up in arms about $20-$30 per week when those wealthy superannuitants are already getting $350-$450 per week that they don't need.
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24-05-2018, 12:06 PM
#437
Originally Posted by iceman
Income tax is still progressive. Wealthier people tend to have capital gains. Homeowners are in effect subsidised by those who are not.
Last edited by Bjauck; 24-05-2018 at 12:07 PM.
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23-10-2018, 02:06 PM
#438
Is this the NZ super thread, because whoa who the hell is Ryan Bridge, can't see him lasting long on TV if he upsets the pensioners.
https://www.msn.com/en-nz/news/natio...cid=spartanntp
Didn't listen to the video but Mark Richardson with the same vacuous argument "I paid taxes all my life" blah blah. Sadly he never voted in a government that put any of his tax money aside to fund his retirement.
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24-10-2018, 08:23 AM
#439
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28-12-2018, 09:24 PM
#440
Some answers here and I think the total may surprise some people
https://www.nzherald.co.nz/business/...ectid=11972404
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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