Want another reason to invest?...
- Thread starter want2bewealthy
- Start date
Superannuation is just pulling the wool over most workers eyes. They assume it will take care of them in retirement with out ever checking or projecting their balance and working out how much it will cost to live at their current levels.
Even the figures mentioned in the article are misleading. It would have been better to see what super balance people had when they retired. Probably find no one gathers this data.
I know a few who have retired thus gain access to super and then go on to work part time which they legally can, just because working is fun and social.
The problem with talking about super on sites like this is most of the people visiting the site have done so because they realise their super isn't going to provide a good standard of living at retirement.
At the end of the day you can't force people to save or invest now to provide a better future for themselves. So the moral of this story is look after yourself.
Cheers
Graeme
Even the figures mentioned in the article are misleading. It would have been better to see what super balance people had when they retired. Probably find no one gathers this data.
I know a few who have retired thus gain access to super and then go on to work part time which they legally can, just because working is fun and social.
The problem with talking about super on sites like this is most of the people visiting the site have done so because they realise their super isn't going to provide a good standard of living at retirement.
At the end of the day you can't force people to save or invest now to provide a better future for themselves. So the moral of this story is look after yourself.
Cheers
Graeme
We are in the wind-down to retirement.
Our super means we theoretically can retire tomorrow - if we choose, while maintaining IPs. But at the moment we are happy to continue working - 3 days a week for me, and 3-4 days a week for hubby.
From discussions with friends all in the 55-65 age bracket, most of us intend to keep on part time work for quite a few years yet, simply for the mental stimulation, networking and social side of things. Somehow, full retirement seems a bit less appealing the closer we get!! I guess it helps that we both enjoy (mostly!) our jobs.
Marg
Our super means we theoretically can retire tomorrow - if we choose, while maintaining IPs. But at the moment we are happy to continue working - 3 days a week for me, and 3-4 days a week for hubby.
From discussions with friends all in the 55-65 age bracket, most of us intend to keep on part time work for quite a few years yet, simply for the mental stimulation, networking and social side of things. Somehow, full retirement seems a bit less appealing the closer we get!! I guess it helps that we both enjoy (mostly!) our jobs.
Marg
Lol, I just overheard a convo between two older ladies,
one said 'I dont want to work but have to now because my super's just dwindled away, that could've lasted me a good 20 years... Ummm...
She then says 'youve got to keep working, what else can you do' . .
one said 'I dont want to work but have to now because my super's just dwindled away, that could've lasted me a good 20 years... Ummm...
She then says 'youve got to keep working, what else can you do' . .
That's sad.
Funny thing is, a lot of the people who may now have to work until 70 are the same people who think its risky to invest in shares and property.
Yet at any time they could lose their job, have no hope of getting another one and could be years away from getting their hands on their super.
Who's taking the bigger risk?
Yet at any time they could lose their job, have no hope of getting another one and could be years away from getting their hands on their super.
Who's taking the bigger risk?
You're right Tubs, often conceptions are backwards and the truth is the opposite, the risk of doing nothing far outweighs.
I just had an interesting convo with my neigbour this morning. He was going on about how shares and property are too risky and people lose money and then mentioned its safest in the bank. He is in his early 70's is in a property that is paid for and is getting the old age pension which he says is a struggle to live on. He also commented about how you are not allowed more than $140 K in your bank account if you want to get the full pension.
Its sad, some people are just too scared to invest. They would rather play it safe. I guess at least he did one thing right and that was paying off his mortgage. At least he doesnt have to worry about accommodation expense.
Its sad, some people are just too scared to invest. They would rather play it safe. I guess at least he did one thing right and that was paying off his mortgage. At least he doesnt have to worry about accommodation expense.
I understand why they think like that, I am sure most of you do too.
They didnt invst cause they dint understand the pro's as much as the con's.... So they DOUBT that if they invested they would get more than the pension. If you beleive that, then you would beleive it is 'better to be safe than sorry'
They didnt invst cause they dint understand the pro's as much as the con's.... So they DOUBT that if they invested they would get more than the pension. If you beleive that, then you would beleive it is 'better to be safe than sorry'
To my mind, there are two main reasons why most people never invest past their superannuation:
1) They can't delay gratification. If Mary at the office can go to England, why shouldn't I?
2) They don't understand investing, and because it easier to run with the herd, they don't bother trying to learn.
Let's be honest - how many people on this forum have never really been interested in, or run with, the crowd? I definitely fit into this category.
1) They can't delay gratification. If Mary at the office can go to England, why shouldn't I?
2) They don't understand investing, and because it easier to run with the herd, they don't bother trying to learn.
Let's be honest - how many people on this forum have never really been interested in, or run with, the crowd? I definitely fit into this category.
What about the furry chequebook?
I didn't understand pretty much anything about anything until I decided to........learn.
Oh; and then take action.
Same here.
Brian: "You're all individuals!"
Crowd of followers: "Yes, we're all individuals!"
Single follower: "I'm not".
Lol, I just overheard a convo between two older ladies,
one said 'I dont want to work but have to now because my super's just dwindled away, that could've lasted me a good 20 years... Ummm...
She then says 'youve got to keep working, what else can you do' . .
I'm sorry, I have to say that you're a bit arrogant and short-sighted in the way you bask in your presumed superiority merely because you've bought a few investment properties are are in <$1M of debt.
What you're forgetting that property investment, like any investment, has inherent risks. If things transpire for the worst, it could well be YOU saying 'I don't want to work but have to now because my investment properties are worth less than I paid for them...I was depending on them for my retirement strategy.'
I was in the US for business recently and ran into an ex-pat Aussie who was a manager at the San Diego Hilton I was staying in. He told me that he had planned to retire but with the falling value of houses he had to keep working.
Now I know everyone will rush to say that 'its different here', and well it may be, but ithe current environment is not necessarily all sweetness and light and it is certainly not impossible that values will decrease.(I'm guessing that drops of even 20% would be enough to upset a few apple carts).
So rather feeling all smug about your investment properties and laugh about a couple of old ladies on a public forum, why don't you put the lesson to good use and see what you can learn from it?
Just remember that many people thought that salary sacrificing and topping up their super was just as fool-proof as your investment strategy and they weren't necessarily going into debt to do it either!
Good luck. I hope this little post never comes back to haunt you.
Nothing gets up my nose quite as much as the Somersoft Mutual Admiration Society. You are very good at it but in the end you are just landlords.
The guys I know and admire, and envy their lifestyle, are the good business owners. Not a lot of delayed gratification there. Sponsor's boxes at the footy; Their name on the shirts of local sports teams who think the world of them; A boat in the marina. These guys are the best but most successful business owners I know still manage OK after the first few hard years.
How's this for an example: A young panel beater over the road from me would have finished his apprenticeship by age 20. Did some backyard work while pulling tradesman's wages for a few years and then went into a partnership with his mate. For all the years they ran that biz, one or the other, but never both, was at the helm. Their profits ensured that they could use their time off to both enjoy themselves and to develop other business interests.
He would be a millionaire today with property prices where they are, but the property he invested in was always part of his other interests. But even if the property never did anything much, he still lived the life of Rielly.
Another mate bought an M3 Beemer with his tax refund one year. OK that year wasn't as good as the one before but he used to tell me he could survive a year with zero income. And he never worried his accountant about the tax he paid. He preferred racing cars to worrying about tax.
These are the guys I envy. They are good at what they do. Eeeezy!
The guys I know and admire, and envy their lifestyle, are the good business owners. Not a lot of delayed gratification there. Sponsor's boxes at the footy; Their name on the shirts of local sports teams who think the world of them; A boat in the marina. These guys are the best but most successful business owners I know still manage OK after the first few hard years.
How's this for an example: A young panel beater over the road from me would have finished his apprenticeship by age 20. Did some backyard work while pulling tradesman's wages for a few years and then went into a partnership with his mate. For all the years they ran that biz, one or the other, but never both, was at the helm. Their profits ensured that they could use their time off to both enjoy themselves and to develop other business interests.
He would be a millionaire today with property prices where they are, but the property he invested in was always part of his other interests. But even if the property never did anything much, he still lived the life of Rielly.
Another mate bought an M3 Beemer with his tax refund one year. OK that year wasn't as good as the one before but he used to tell me he could survive a year with zero income. And he never worried his accountant about the tax he paid. He preferred racing cars to worrying about tax.
These are the guys I envy. They are good at what they do. Eeeezy!
i really do agree, kudos
Well everyone's entitled to their own thoughts and good on you for shouting out.
However I'll keep you posted
What I'm basically saying is, how can one expect to be financially indipendant when they didn't do anything to better their financial position?
Are you suggesting this is a smart thing to do?
The person in question should be wealthy enough to live a comfortable retirement?
I've now branched off to numerous business ventures and have created a passive income and a job that I've wanted to do for years now.
If not for my investment properties this wouldn't be possible.
Horses for courses, choose your own adventure.
I know many people who struggle from pay to pay and I choose not to be one of them, I also know how a simple mindset change can transform these people into wealthy individuals because I started with less than most and have performed a complete turnaround.
Absolute worst case? I end up with the same thing I started with but a hell of alot more pride.
Enough said.
However I'll keep you posted
What I'm basically saying is, how can one expect to be financially indipendant when they didn't do anything to better their financial position?
Are you suggesting this is a smart thing to do?
The person in question should be wealthy enough to live a comfortable retirement?
I've now branched off to numerous business ventures and have created a passive income and a job that I've wanted to do for years now.
If not for my investment properties this wouldn't be possible.
Horses for courses, choose your own adventure.
I know many people who struggle from pay to pay and I choose not to be one of them, I also know how a simple mindset change can transform these people into wealthy individuals because I started with less than most and have performed a complete turnaround.
Absolute worst case? I end up with the same thing I started with but a hell of alot more pride.
Enough said.
Last edited:
I would hazard a guess that 100% of the people who thought this way were "lazy investors":
People who don't have much investing knowledge, who are time poor and/or lazy to learn much about it, but have a bit of extra cash to throw at an investment of some form, and who realise they should do something towards their retirement.
Or, history is littered with ultra rich celebs and sports stars with plenty of money to invest, and no investing knowledge or input, who lost it all. Same for the average person. But we feel more sorry for them because they usually had bugger-all money to begin with.
So, they assume that super is safe and put all their available funds into it and expect it to just go up forever.
Keep in mind that this is most of your population who are in the position to sacrifice into super, while the rest either do nothing and/or let their employer contribute for them, or they are here like us; doing way more towards ensuring their financial success. The latter being the smallest number of all.
I can't speak for him, but I'd say W2BW's strategy involves far more effort - both in actual work and in knowledge to apply. By this very application there is already way more safety attached to his investments, and his chances of succeeding will continue to improve as his effort and knowledge increases.
LIke life; the more involved and active you are in it, the more rewarding it is. People who invest with no involvement are asking to get creamed; and they do.
Dare I say it; this applies to most people who are into shares; they buy on hot tips, or on impulse, chasing the big pay-off, and never sit down and do the study and background work required to improve their safety and success of their investments.
It's pretty simple; you can do nothing, and that's what you'll end up with, or go to a lot of trouble and effort, and it'll usually pay off eventually.
Yes, W2WB was being a bit smug, but I guess this is the right of the successful, and yes we should feel sorry for the two old ladies, but how much were they really involved in their investing?
If your shares are tanking, there's nothing stopping you from selling them if there is a buyer.
If all you have is super, then you're stuffed because you're locked in, like the two old girls.
