Superannuation Discussion + market volatility

[Mogul]

For me the plan is to retire at 60 and hopefully have enough super until 76. My reasoning is I don't see myself active much past 76.

All my projections have been on 2% inflation with 2-3% return on investment. Very conservative and if return on investment is higher then obviously money will last a little longer.

How much is enough? I think what I have already is too much. I only need a moderate lifestyle and I'm wasting good years spending time in an office where as I should be spending that time on a golf course.

I also think the government's number of $80,000 is too much. I've seen way too many people work themselves to the point where they did not enjoy much of their retirement.

Keep in mind that there are minimum ages at which super can be accessed, can you access your super at 60 ?

In order for us to retire when we want to (not when the government says we have to) we have a number of investments (currently negatively geared) outside super which will provide a nice income stream when needed.

 

[cove]

We may go minus 5% in todays stock market.

 

[tgh]

the earlier you retire, the earlier you die

OOhhhhhhhhh …... that's distressing
I retired at 55, will I die soon… ???

 

[Flying mermaid]

I am not looking at my super fund portfolio today. Tomorrow. Next year.......

all ready for more depression today

 

[Denali]

the earlier you retire, the earlier you die

OOhhhhhhhhh …... that's distressing
I retired at 55, will I die soon… ???

My husband is 56 and is too busy to die early due to retirement. I wonder some days how he managed to do social/hobby things while holding down a full time job. Every day hes busy doing stuff outside the home and reconnecting with friends and hobbies.

 

[Buzzard]

In a capital protected/stable fund averaged over 25 yrs?

No, but then I don't see those funds as a good investment. My savings account pays over 2% so my investments are expected to perform a lot better.

 

[Quickstatus]

Yes, but for many who have modest super, their risk profile for their nest egg after retirement would typically be in a capital protected class

 

[andye]

Yes, but for many who have modest super, their risk profile for their nest egg after retirement would typically be in a capital protected class

It is one of 'unfair' things in life that the bigger the nest-egg the easier it feels to invest for higher returns

 

[QF WP]

all ready for more depression today

Well actually the US market slide overnight will be only factored into todays prices that will be available on Monday after ~11am (when most fund managers report the previous days' unit price). Most peoples account balance won't drop anywhere near 4.15% because no investor I know has 100% invested into US Dow Jones index. The average investor will probably see a 1.5% loss given they will be in a default MySuper age-based asset allocation profile



Will be replicated in Australia today but to a lesser extent. There'll be fund managers and professional investors wading through the mess, picking up the bargains. By early afternoon, there will be a spike back up.

 

[Denali]

.... The average investor will probably see a 1.5% loss given they will be in a default MySuper age-based asset allocation profile....

Ive asked my husband and he seems OK with his super so far, he watches it daily and discusses with his super guy often.

Was it you who posted the Fidelity link the other day? If yes, thank you very much. Forwarded it to him and he was reading it last night and talking about it. I, of course, wasnt listening to him, which is why Im working and hes not.

 

[Buzzard]

Yes, but for many who have modest super, their risk profile for their nest egg after retirement would typically be in a capital protected class

It is one of 'unfair' things in life that the bigger the nest-egg the easier it feels to invest for higher returns

Very true, and for some home owning couples they may actually be better off with the maximum assets where they can still get some pension rather than have a bit more and get no pension.
There is a sweet spot.

 

[lovetravellingoz]

the earlier you retire, the earlier you die

OOhhhhhhhhh …... that's distressing
I retired at 55, will I die soon… ???

Depends why you retired...

If you were "pushed", or retired early due to health reasons then yes the data would suggest that you will die sooner than otherwise. If you "jumped" then it appears to make no significant difference compared to retiring later..


ie

However, the researchers did find that there is a strong correlation between being forced out of work, due to company closures or downsizes, and age of death.

Professor Piggott said: ‘When a person’s choice to leave work is removed, this does seem to impact mortality, most probably because of a variety of factors such as depression and loss of social networks.’

Read more: Retirement age has NO impact on life expectancy | Daily Mail Online


PS: I was originally many years back intending to be retiring at about now (I am 57), but I am instead working in my own business on reduced hours ( no set amount per week, just what I feel like doing plus I will take holidays, including for say 2 months at a time, whenever I wish to). So it is a form I guess of transitioning to retirement where I am easing into. Money wise even though I am part time I am earning more now than when I was full time several years back.

Though I now have no idea when I will stop work completely. I doubt now it will be by 60 and I doubt too that it will be longer than 65. If still working at 60 though I will probably be working at less hours per year than I am at present.

Financially I could stop now. Though if I keep on working for a bit longer it will take things from being beyond comfortable(now) to extremely comfortable with the also ability to assist my daughters more. That property bubble that has aided my wife and I has also disadvantaged them and that plays on my mind at present.

 

[lovetravellingoz]

For me the plan is to retire at 60 and hopefully have enough super until 76. My reasoning is I don't see myself active much past 76.

.

Though what becomes of you wife? What plans are you putting in place for her needs and activity levels when you are 76, or is she self-funding?

 

[QF WP]

Ive asked my husband and he seems OK with his super so far, he watches it daily and discusses with his super guy often.

Good to see a client who is engaged in the process

Was it you who posted the Fidelity link the other day? If yes, thank you very much. Forwarded it to him and he was reading it last night and talking about it. I, of course, wasnt listening to him, which is why Im working and hes not.

Yes. He and others here might also be interested in this video then:

(How investors should behave before, during and after a correction.)

 

[Flying mermaid]

Well actually the US market slide overnight will be only factored into todays prices that will be available on Monday after ~11am (when most fund managers report the previous days' unit price). Most peoples account balance won't drop anywhere near 4.15% because no investor I know has 100% invested into US Dow Jones index. The average investor will probably see a 1.5% loss given they will be in a default MySuper age-based asset allocation profile

View attachment 117787

Will be replicated in Australia today but to a lesser extent. There'll be fund managers and professional investors wading through the mess, picking up the bargains. By early afternoon, there will be a spike back up.

View attachment 117788

I run my own smsf (and have for over 30 years) - I see the drops instantaneously . Doesn’t worry me, as generally I long term invest rather than speculate (although I have been know to).

I do have some big holdings in small caps where a 1c drop translates to a $20,000 drop. They are always a bit depressing in this kind of environment, although they are also high conviction stocks for me, so short term gyrations don’t worry me.

 

[Buzzard]

Though what becomes of you wife? What plans are you putting in place for her needs and activity levels when you are 76, or is she self-funding?

Don't forget, there is also a child to consider.

 

[Denali]

Good to see a client who is engaged in the process


Yes. He and others here might also be interested in this video then:

(How investors should behave before, during and after a correction.)

My husband says thank you again!

 

[JohnK]

Keep in mind that there are minimum ages at which super can be accessed, can you access your super at 60 ?

In order for us to retire when we want to (not when the government says we have to) we have a number of investments (currently negatively geared) outside super which will provide a nice income stream when needed.

I believe I can access super at 59 as I was born before 1965. Not sure what happens if this is changed but I suspect any changes won't affect me.

Fingers crossed I can retire at 60.

 

[Buzzard]

I believe I can access super at 59 as I was born before 1965. Not sure what happens if this is changed but I suspect any changes won't affect me.

Fingers crossed I can retire at 60.

Unless things change you could start a TTR at 55

 

[Denali]

Anyone in NZ and can clarify NZ super for me?

Employer contribution is 3% plus employee KiwiSaver contribution and employee KiwiSaver is not salary sacrificed/still taxed at gross before deduction value.

Dipping my toe into NZ and checking my google skills.