How much capital do I need to retire comfortably on ?

[Bjauck]

When you buy from someone else a parcel of shares, you own part of a productive business. If shares were a preferred investment and a greater proportion of NZers wealth were in shares (with a corresponding higher price and lower yield) then more corporate money for productive expansion could be raised via rights issues for expansion domestically and overseas. Similarly well capitalised and valued NZ companies may be more likely to be the ones buying and setting up business overseas, as opposed to being the take over targets.

It would be great if the ever higher amounts of money going into the Auckland property market was going into new houses...but most of it is just going into boosting the price of land.

[Beagle]

I part own a couple of properties I have 'funded'

Simple partnership agreement, main bit I get share of capital gains. Not fussed if they reneged on the interest/notional rent/outgoings bit - essentially it they pay the rates, insurance and maintain the place they get my part interest free.

The clever switched on one doesn't seem any point in repaying it, uses that money to buy investment properties.

If they don't like the arrangement no money I say. They soon come to their senses.

Dad still needs to mow the lawns and cut the hedge occasionally though.

So this is what I have to look forward too in my retirement....Hmmm.

[winner69]

So this is what I have to look forward too in my retirement....Hmmm.

It never stops Roger.

That's why we deserve that 'entitlement' no matter what our means our.

Hopefully if I ever need the kids to look after me they will.

[percy]

So this is what I have to look forward too in my retirement....Hmmm.

Always remember its the kids who decide which home you go into.!!
Ones in Invercargill come a little cheaper.!!!!!!!!!!!!! lol.

[dingoNZ]

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Well that's bloody depressing, whats the underlying causes(s) or ours being significantly lower? Poor savers? Lower wages? A populous who are somewhat scared of equity markets?

[Bjauck]

Well that's bloody depressing, whats the underlying causes(s) or ours being significantly lower? Poor savers? Lower wages? A populous who are somewhat scared of equity markets?

A bit of all you said. Plus:
In NZ relative to income, housing wealth is high and financial wealth low. It's what happens when you have comparatively wealthy large number of immigrants buying houses, no control on foreign buyers of housing and little tax levied on investor housing. Investor rental housing becomes relatively more attractive than shares and fixed interest for the wealthy. Then the ordinary resident has to fork out a big chunk of their income just to buy an ordinary roof over their head. So precious little is left over for investment in financial assets. Add to that the lack of a nationwide contributory superannuation scheme with even half-hearted tax exemptions/credits until recently, then we can see NZ did not and still does not have an environment that encourages financial investment as opposed to investment in housing.

[Beagle]

It never stops Roger.

That's why we deserve that 'entitlement' no matter what our means our.

Hopefully if I ever need the kids to look after me they will.

Yes its a worry that the little chicks keep coming back to the nest for yet another feed even in their thirties by the sound of it
When I was a younger man I thought that when they turned 21 you're job was done. Ignorance was bliss.
After last summer's wake up call I can see the job of supporting your kids is never done completely...really its an entire life's work.
Now you and Percy can see why I like dogs so much...they give so much unconditional love and ask for so little in return...I'd even venture so far as to suggest they're the ultimate investment

Percy mate I think one of my kids would be happy for us in due course to be in a home for the bewildered on Falkland Islands !

[Aaron]

This study was in the US. They haven't worked out why there is a difference in wealth between generations.

http://www.nzherald.co.nz/business/n...ectid=11490018

Stanley Druckenmiller worked it all out back in 2013.

https://www.youtube.com/watch?v=3PJO09fPT1Q

I wonder how this compares to NZ. Boomers should be angry at the silent generation and Gen X angry at boomers. Can we keep screwing over the next generation and the yet to be born.

[winner69]

for you aaron .... you don't need a million or so

http://www.smh.com.au/business/banki...31-gip1d4.html

[Aaron]

So half a million and a mortgage free house for a comfortable retirement - Yeah Right.
Well maybe... to be honest it doesn't take much to survive, a good chunk of the world lives on less than a dollar a day.
My problem is that I am just not convinced the current untested (income and asset) national super scheme is affordable. Current govt books say we are running a deficit(debt) that future generations will have to repay and a large chunk of spending is national super. I am also sure future generations won't receive as generous a scheme if changes aren't made now. Just like how the younger generation got shafted in regard to a free tertiary education. If you don't need a hand out you shouldn't get it.

Winner did you look at the youtube clip from Druckenmiller, wouldn't mind betting this is true of NZ but I don't have the facts.