$58,325 is comfortable for who??

[strongy1986]

We probably spend 25 - 30k on 'living' expenses a year - no kids
5k of that probably go's towards my boat/ sailing
Another 7 on 'entertainment' ....
We went interstate 8 times this year, Thailand (poor mans holiday) for two weeks as well

I guess if we did nothing that cost money we could live on 12k a year

The only part of our lives where we live frugally is groceries - we try hard not to go to woolworths and Coles. We still eat whatever we want though and would spend about $100

But 50k would do us fine I think - not sure what kids does to this equation!

 

[china]

I have had 58k passive income for some years now and I don't believe that it will be sufficient even as a single person. There are many days where I spend about 80 dollars a day eating out and I do enjoy flying business class. So in retirement, I don't wish to have a massive drop in quality of life and hence, more is required.

 

[Corey Batt]

Kathryn's macca's burgers comparison is quite funny - as it's something which I was taught back in university: http://en.wikipedia.org/wiki/Big_Mac_Index

 

[Richard Feynman]

Kathryn's macca's burgers comparison is quite funny - as it's something which I was taught back in university: http://en.wikipedia.org/wiki/Big_Mac_Index

I was in California recently.

 

[pinkboy]

Usain Bolt eat your.........nuggets out!

pinkboy

 

[DEC]

I expect the desire for overseas travel will be diminishing soon, another plane missing today.

Only if you are a panic merchant

Plane travel is still far safer than driving a car and I doubt you will stop doing that.

 

[MTR]

But 50k would do us fine I think - not sure what kids does to this equation!

Kids cost money, just don't have any and you will be fine on $50K, otherwise your stuffed

 

[HomePage]

I have had 58k passive income for some years now and I don't believe that it will be sufficient even as a single person. There are many days where I spend about 80 dollars a day eating out and I do enjoy flying business class. So in retirement, I don't wish to have a massive drop in quality of life and hence, more is required.

Well somebody has to keep on the hamster wheel to keep taxes coming in and profits flowing for the companies in which I have shares. Thanks for volunteering China!

 

[MTR]

HP

China I assume would be used to living on much higher income and perhaps it will may be difficult to contemplate retiring on $58,000.

 

[Angel]

Only if you are a panic merchant

Plane travel is still far safer than driving a car and I doubt you will stop doing that.

I know that, I was just stirring.

 

[brocky05]

I just checked my super and assuming I will have the same salary until I retire I will most likely end up with approx $600,000 at retirement. Divide that by $58,000 that only gives me 10 years and I will have no money

Im only 33 now when I get there will the government still be paying me a pension when I run out of funds as 10 years is pretty shocking. How on earth are people going to retire that are on 30K a year paying jobs there is no way in the world.....

 

[pinkboy]

I just checked my super and assuming I will have the same salary until I retire I will most likely end up with approx $600,000 at retirement. Divide that by $58,000 that only gives me 10 years and I will have no money

Im only 33 now when I get there will the government still be paying me a pension when I run out of funds as 10 years is pretty shocking. How on earth are people going to retire that are on 30K a year paying jobs there is no way in the world.....

If you have $600k earning 5% dividends that's $30,000 ($42,800 grossed up) recurring income without touching your capital. You live off the recurring income without biting into the capital and it will last your entire retirement.


pinkboy

 

[sanj]

I just checked my super and assuming I will have the same salary until I retire I will most likely end up with approx $600,000 at retirement. Divide that by $58,000 that only gives me 10 years and I will have no money

Im only 33 now when I get there will the government still be paying me a pension when I run out of funds as 10 years is pretty shocking. How on earth are people going to retire that are on 30K a year paying jobs there is no way in the world.....

Why do you believe your super is not going to provide any returns?

I've got relatives earning less than you who have raised families and have more in super and investments, stop being so defeatist, it will do you no favours

 

[brocky05]

Why do you believe your super is not going to provide any returns?

I've got relatives earning less than you who have raised families and have more in super and investments, stop being so defeatist, it will do you no favours

Probably more my ignorance I didnt understand that you can keep your super balance at 600K at retirement and keep redrawing 30K each year living off the interest only. I was under the impression it stops at retirement age thats all. Sorry I dont know anything about super except that my emplyers puts money into it each month.....

 

[tropic]

Kids cost money, just don't have any and you will be fine on $50K, otherwise your stuffed

Yup, that sometimes includes 30 year old kids as well.
My friend is still helping one of his over 30 kids now and then.
Fortunately he can afford it.
My wife and I think that we might have to help the kids one day too.

So 600K or 1 mill on retirement is still not going to be enough.
Some of you might say when it's going to be enough then.
I really don't know but I can't remember the last time we only spend 30K a year (excluding mortgage).
However we do feel that our household cost is declining (stabilising now.
One of the kids is working the other one in Uni with a part time job.
But now we want to travel more

 

[sanj]

Probably more my ignorance I didnt understand that you can keep your super balance at 600K at retirement and keep redrawing 30K each year living off the interest only. I was under the impression it stops at retirement age thats all. Sorry I dont know anything about super except that my emplyers puts money into it each month.....

No problem. Super cab be very powerful if understood and utilized correctly so I'd recommend reading more about it.

It's basically just another structure and not an investment so you have to make it work for you. It's also a low tax environment and once you reach above a certain age, atm I think it's 60, it's a tax free environment

 

[brocky05]

Well I live on less than 50K a year now with 2 mortgages..... Pretty sure once im mortgage free 50K in retirement should be sufficient.

 

[baby blue eyes]

Brocky don't forget that super will earn money in addition to your contributions and the growth compounds, always be aware of your balances and your investment mix.......earnings are taxed at 15% and franked dividends help reduce the tax bill. Super is a pretty powerful investment.

 

[brocky05]

Brocky don't forget that super will earn money in addition to your contributions and the growth compounds, always be aware of your balances and your investment mix.......earnings are taxed at 15% and franked dividends help reduce the tax bill. Super is a pretty powerful investment.

Hi So what do you mean earnings are taxed at 15% does that mean when I retire and I take $30K from my $600,000K to live on I will be taxed 15% on the 30K???? I also have no idea what franked dividends means???

Can someone explain please and share their knowledge .

 

[tropic]

You are taxed when you make a super contribution.
For example, if you contribute $1000 per month. The taxman will take 15% off that, so only $850 goes toward your super.