How much capital do I need to retire comfortably on ?

[Aaron]

Don't overlook that universities compete for students, as do the polytechs. Sponsoring rugby might be an excellent means of getting through to a younger group. I'm no expert in this, but I suspect they've done their homework - they are not known for throwing money around.

That is the argument but to be honest does a university really want a moron who will make their decision as to which university they go to based on seeing a logo on a rugby jersey. To be fair most young people might be considered morons and most will choose their university based on where their friends are going not based on the universities record of academic excellence.
Universities shouldn't have to promote too much otherwise they are probably just dropping their standards to attract more students. Glossy brochures and s**t education should be for Interui shareholders and owners of English language schools in Auckland.

[Aaron]

....... and we still don't know how much capital one needs to retire comfortably on! Just a little more, perhaps?

That was settled long ago. A mortgage free house, a million dollars and nz superannuation in its current form. Otherwise make it a house and 2 million based on a 3% return if nz super is to change. We might be better off moving to other threads now to get ideas how to generate the necessary wealth.

[macduffy]

That was settled long ago. A mortgage free house, a million dollars and nz superannuation in its current form. Otherwise make it a house and 2 million based on a 3% return if nz super is to change. We might be better off moving to other threads now to get ideas how to generate the necessary wealth.

I don't know about that, Aaron, a lot of posters here seem more intent on arguing over how hard they had/have it! By the way, did I tell you we lived in a cardboard box?

[winner69]

....... and we still don't know how much capital one needs to retire comfortably on! Just a little more, perhaps?

Heaps macduffy, heaps

Suppose the answer is what returns one can make on investing 15%-20% of their income (self managed or Kiwisaver or whatever) .....and not cheating in pretending that sometimes you don't need to do this every pay day.

But then some live quite comfortably on a bit less

[777]

The million invested and return added to your super would only give a very modest lifestyle, in my opinion. Inflation is a killer over 25 to 30 yrs. Rule of 72 is a good yard stick. Inflation at 3% and you will your expenditure will be double what it is now in 24 yrs. If 2.5% then double in 28.8 yrs. How long will your million be able to provide that extra income when you start having to eat into it to survive, especially if there is a spike in inflation without the immediate increase in your return. The variables are important. Everyone has different life styles to fund: inflation, rates of return and tax rates are all going to affect the amount you need to start with. A simple spreadsheet can be created for each individual to see the impact of any changes is those variables. Then the next questions are: how long are you going to live (spouse as well)? How much do you want to leave your offspring (Some people also have dependants to consider due to health reasons)? Do you allow an amount set aside for large health issues you may encounter? Car replacement, house maintenance, replacing your specs etc are other things to consider.

Me, I would suggest closer to 3 million. Some of that could come out of your mortgage free house if you downsize. Of course the amount you need now will be less than what you would need to start with in 10 or 15 years time (current 50 to 55 year olds.)

I would hate to go out for dinner when I am 75 and only be able to afford one glass of red wine because I hadn't started with enough. Some things are important in life.

[Aaron]

I don't know about that, Aaron, a lot of posters here seem more intent on arguing over how hard they had/have it! By the way, did I tell you we lived in a cardboard box?

A CARDBOARD BOX......? Luxury I lived in a brown paper bag with holes cut out for my arms and legs.

[Aaron]

The million invested and return added to your super would only give a very modest lifestyle, in my opinion. Inflation is a killer over 25 to 30 yrs. Rule of 72 is a good yard stick. Inflation at 3% and you will your expenditure will be double what it is now in 24 yrs. If 2.5% then double in 28.8 yrs. How long will your million be able to provide that extra income when you start having to eat into it to survive, especially if there is a spike in inflation without the immediate increase in your return. The variables are important. Everyone has different life styles to fund: inflation, rates of return and tax rates are all going to affect the amount you need to start with. A simple spreadsheet can be created for each individual to see the impact of any changes is those variables. Then the next questions are: how long are you going to live (spouse as well)? How much do you want to leave your offspring (Some people also have dependants to consider due to health reasons)? Do you allow an amount set aside for large health issues you may encounter? Car replacement, house maintenance, replacing your specs etc are other things to consider.

Me, I would suggest closer to 3 million. Some of that could come out of your mortgage free house if you downsize. Of course the amount you need now will be less than what you would need to start with in 10 or 15 years time (current 50 to 55 year olds.)

I would hate to go out for dinner when I am 75 and only be able to afford one glass of red wine because I hadn't started with enough. Some things are important in life.

I stand corrected if you look back at Rogers original post it was house, nat super, $1mill at 7% as well as a rental house or two($2mill in Akld now) and/or a part time job. So I guess $2-$3mill is closer to the mark. All the spreadsheets I have put together indicate $2mill by 65 will be a real stretch on my income and with my investing results. never mind a goal is a start, I just need to work out how to get there.
If I look at some of the averages of surveys showing average incomes and average net worth it would seem I am not the only one in NZ who might not make it to $3mill and a comfortable retirement.

[fungus pudding]

A CARDBOARD BOX......? Luxury I lived in a brown paper bag with holes cut out for my arms and legs.

Same here, except we couldn't afford the holes.

[winner69]

Same here, except we couldn't afford the holes.

I had to resort to the embarkment at the Basin - occasionally had the Evening Post as a blanket

[RGR367]

Sorry guys but What The Trump is keeping this thread to go on and on and on This was started way back in 2015 and have we not gotten most of the pointers therein yet or we're just damn trumped on what we want for retirement? Folks, are we really that clueless still? And come to think of it, this is even on an investing forum. Better play Chess folks. Better play Chess