Yes we read
of a recent survey of 1200 which outlined future goals of Australians.
Key findings included:
§ The
top three items people didn’t want to give up were:
- Internet or mobile phone
(62%)
- Domestic holidays (55%)
- International holidays (41%)
- § Nearly half (48%) of over 65s had intended to be
retired by now
§ § Around
half the people in the survey started
planning for retirement before they reached 55 (49%) and a further 13%
(each) said they started this process between 55-59 and 60-64.
We
are at the age where we play tennis with ‘old
fossils’.
Each of them annually take an overseas trip of
various lengths. This year they have had canal trips to Europe, cruises to
Alaska, visited friends in Germany & in the USA or stayed in the South of
France for two months. They all have cruised
& tripped around New Zealand.
Why
can they afford to do so now? It is no secret that they have planned. They have also saved for it.
As David our IT man discussed yesterday ‘time is currency’ & making the use
of the magic compound Interest & using appropriate ‘taxx havens’ means they
have been ‘smart’ with their money.
Geraldine
also yesterday discussed Napoleon’s four types of general & his preferred
General was the ‘Smart & lazy one’.
I.e. they used their smarts &
weren’t just ‘busy’ for the sake of
it.
This
week we saw a couple on ‘Hot Property’ selling their house. They at action achieved 80,000 less than
their reserve on the house. That is a serious ‘wack’.
One of my observations was the amount of stuff
that they had in the house. Yes we certainly understand the need for some stuff
but this was excessive & when they
do have the garage sales to assist their move the family wont collect what they
paid for the stuff. We also comment that the RE agent could have suggested the
Selling Houses Australia approach.
He was either lazy or they didn’t listen.
If they had put $10 per day aside into a not easily accessible portfolio then
some of that 80,000 may have been there. It wouldn’t be cash or super. Their
new house won’t be up to their existing home as they have LOST 80,000 of equity.
Let’s
suppose we want [a word we don’t like but used in the above survey] to cycle
around Oxford in three years time. It means we need
6000
for flights + 1000 p.w. for accommodation + 1000p.w. for sights seeing.
Say
12,000 in total or 4000p.a. or 333p.m. that
is $10 per day.
That is doable & we must send this
to our Young travel agent.
It
is less that smokers spend per day. Which would you prefer? We ask.
The survey revealed that two thirds of Australians had not
sought financial advice regarding retirement, and a third felt completely
unprepared.
“While
some see no need, or handle their own affairs, many actually consider financial
advice to be too expensive or not trustworthy,”
How
are they going then?
Lets
answer the trust issue by meeting
here for lunch first. Our clients for 29 years have made this first step. What
else can we do to resolve this issue?
§ That might explain ‘Nearly half (48%) of over 65s had intended
to be retired by now’.
§ § And
the survey concluded
§ A
main concern from the survey was that respondents were underestimating how much
they would need for a comfortable retirement.
§ The
average amount nominated for a comfortable retirement was well below the
$56,236 ‘comfortable lifestyle’ for a couple and $41,090 budget for single
people, estimated by the ASFA Retirement Standard in 2012.
§ Around
60% of respondents thought they needed less than $49,999, with 20% selecting
‘$30,000-$39,999’ and 17% choosing even less.
The
survey also said
less than half had a
good grasp of how much they had saved in super, and a quarter were “closing their eyes and hoping for the
best”.
Hill said, “Despite
the fact that many baby boomers are worried they won’t have enough money to
fund their retirement and that they are not prepared, it is surprising that so
few are starting the planning process early and seem to be in no rush to get
any formal advice to help them on their journey.”
As
Michael from Hot Property & The Castle famously says ‘They gotta be
dreaming’
How
much capital do you need to achieve that. Simply @ 5% you need a million.
If
interest rates drop to say 4% you need 1.250,000 or you are struggling on less.
As
we pen this, the Red Queen is warning the Press Club that government entitlements
will be less. Her reason is ‘labour
values’ & dreams of education where we all have degrees & where
after you ‘define the colour of your
underwear ‘you might collect a nominal government subsidy to your needs. The Red Queen has just said ‘bring it on’ September 12th.
Tony just replied ‘it’s all about trust’
. It is about not ‘paying more Taxx’ as that means you are paying someone else’s
lifestyle. Why should you?
A
reason why we are all cynical on super due to legislative RISK. All governments are socialist.
Many
of us have been watching the Australian Open over the last two weeks & are
in awe of the standards set. We have
also been hammered by the same advertisements.
·
One
is that all these players have coaches & teams behind them.
o Andy recruited Ivan who has 9 grand
slams & 90 ATP titles. Ivan the
coach had been coached by the master coach Tony.
o Queen Victoria collected 2.43m for
winning & Li Na also recruited a top
coach.
·
Another
is some fund which never
mentioned its long term balanced
performance.
They didn’t advertise that. Look it up your
self.
Flat lining is economic Death as it is below inflation.
We
also checked the Adviser
service fee &
as always what you need to know requires some perseverance.
This fee
is automatically set at zero but can be negotiated between you and your adviser
up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
This is deducted after you
authorise payment to an eligible adviser for the advice you receive about your
investment with the fund. They
didn’t advertise that.
We are not joking as we are not Novak.
How
many overseas trips do you want?
It
won’t be what the big egos & boys charge even though we have been financial
coaching for 29 years which is longer that they have.
We
said to Paul who has known us for 15 years whilst coaching him our services are too cheap for what we
offer him. He does & must trust us if he has his super elsewhere &
spoke to a major bank adviser first & then agreed with our concept which
had several new benefits.
Are
you listening & as David said ‘time
is currency’ .
John McAuliffe.
