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  1. #16
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  2. #17
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    Rethink your retirement. For me, "retiring early" was getting to stay home and bring up my kids and take all the holidays we wanted and then choose a new career. And never stressing about the possibility of us both being out of work. And being able to choose to retrain and take up a new career that suited me. This took a small, debt-free house and a starting sum of $30k (and currently needs about $300k with one modest part-time income and 3-4 teenagers).

    After that, I am seriously keen to work out the rest of my life and never retire again

  3. #18
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    Cool

    Quote Originally Posted by huxley View Post
    Funny quote
    I love it

  4. #19
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    We cannot be really certain for sure, I guess. And it will be at the end of our lives when we get to know whether what we have saved or our capital was enough
    or not. So just aspire to get as much above that very low threshold of $1M as per what KW shared on the link above and having passed all the conditions that are given (no debt, an unencumbered house, etc). If you're really an investor and have not started rather late $1M is easily attainable.
    Last edited by RGR367; 23-04-2015 at 03:52 PM.

  5. #20
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    Quote Originally Posted by RGR367 View Post
    We cannot be really certain for sure, I guess. And it will be at the end of our lives when we get to know whether what we have saved or our capital was enough
    or not. So just aspire to get as much above that very low threshold of $1M as per what KW shared on the link above and having passed all the conditions that are given (no debt, an encumbered house, etc). If you're really an investor and have not started rather late $1M is easily attainable.
    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.
    Last edited by Beagle; 23-04-2015 at 02:00 PM.

  6. #21
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    Quote Originally Posted by Roger View Post
    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 little colourful booties which she sells at the bi weekly markets down there, often to tourists passing through Turangi. She makes about $3-400 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.

    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 he retired, in fact due to poor planning and some unfortunate events they still had a $200K mortgage on their modest Auckland family home. He and Chris loved animals and didn;t have enough room for their many different animal's at their home. They traded down too an nice unencumbered 8 acre property in Te Kuiti 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 happy. 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.
    It troubles me that none of these cases have taken advantage of the Heartland Bank HER product. More advertising needed aye!
    No advice here. Just banter. DYOR

  7. #22
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    Quote Originally Posted by noodles View Post
    It troubles me that none of these cases have taken advantage of the Heartland Bank HER product. More advertising needed aye!
    I'm sure there's plenty of retired people sitting on unencumbered $1m plus houses in Auckland that would love to know more

  8. #23
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    Quote Originally Posted by noodles View Post
    It troubles me that none of these cases have taken advantage of the Heartland Bank HER product. More advertising needed aye!
    Agree. This is not good. Lets fly them all to Christchurch , on Jetstar, to talk to Jeff face to face
    Great discussion Roger, I have sought some advice on this recently and have come to the conclusion that a reasonable way to approach it for me is to work out how much I think I will need annually and aim to have that annual expenditure no more than about 4% of my retirement savings, assuming I will retire at 65-67YO.
    But I share your problem of enjoying life too much at present and simply can't wait until I'm in my 70s or 80s to enjoy life. Relying on HNZ to eventually get me there
    Last edited by iceman; 23-04-2015 at 02:40 PM.

  9. #24
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    Quote Originally Posted by Roger View Post
    Proof that you don't need an absolute fortune to retire on ?
    All well and good till you have to start paying for in home care (over and above the maximum provided by the state).

  10. #25
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    Quote Originally Posted by Roger View Post
    I'm sure there's plenty of retired people sitting on unencumbered $1m plus houses in Auckland that would love to know more
    For many putting money into their home was their pension plan, HER will be a version of buying an annuity. It just mean the kids and grand-kids will be less likely to be able to buy a house, especially in Auckland, without their hoped-for inheritances.

  11. #26
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    Quote Originally Posted by Harvey Specter View Post
    All well and good till you have to start paying for in home care (over and above the maximum provided by the state).
    Too true...what about if you have all assets in well-established family trust?

  12. #27
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    Quote Originally Posted by Bjauck View Post
    Too true...what about if you have all assets in well-established family trust?
    Yes couldn't agree more. If you're approaching anywhere near retirement age and your home isn't in a family trust already its time to get this matter sorted !!
    Last edited by Beagle; 23-04-2015 at 03:12 PM.

  13. #28
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    Quote Originally Posted by Bjauck View Post
    Too true...what about if you have all assets in well-established family trust?
    Expect full look through. But even if not, will you be happy to rely on the level of care the state provides, or will you want a higher one which you will have to pay for.

  14. #29
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    Quote Originally Posted by Roger View Post
    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.
    Very nicely illustrated Roger: my compliments.

    I have spent years pondering the Great Wall of retirement and attended seminars, read books, and saved what I could.

    I have also advised families and dealt with the parents estates when they have died.

    My conclusion is that saving "enough" to provide a truly independent income is impossible for most people. Including myself. In fact I now regret not taking family holidays to Australia, Europe etc as my friends did.

    We can't live life in the future: life is now. As in all things, moderation is the key. Save for retirement but don't let it worry you. Rich relationships with family and friends are the investment which brings rewards over your whole lifetime.
    Last edited by Winston001; 23-04-2015 at 07:44 PM.

  15. #30
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    Quote Originally Posted by Winston001 View Post
    ...
    My conclusion is that saving "enough" to provide a truly independent income is impossible for most people. Including myself. In fact I now regret not taking family holidays to Australia, Europe etc as my friends did.

    We can't live life in the future: life is now. As in all things, moderation is the key. Save for retirement but don't let it worry you. Rich relationships with family and friends are the investment which brings rewards over your whole lifetime.
    My parents were frugal and have saved to the extent they had a good modest home with a moderate amount of investments. However one of them has a medical condition and now needs nursing home care. Because of their savings they exceed threshhold levels and they do not get a subsidy.

    The comfortable retirement is in jeopardy, as an extra $50,000 pa is needed to cover fees. That would be equivalent to $75,000 before tax income! The costs of living for the independent parent has not reduced by much. There is a bit of regret, that they were not a bit more extravagant. Maybe they could have put in new kitchens and bathrooms and stayed in expensive hotels. Their investment savings will go down quickly with their extra expense. They pay for the nursing home (* all people are subsidised as to the medical component) , whilst some, if not the large majority of the fellow residents, do not. Is that fair? Does it encourage people to save for their retirement?
    Last edited by Bjauck; 24-04-2015 at 08:50 AM.

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