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The wife and I are at $ 2.5 million in super alone and we are in our mid 50's.We should hit $4 million by 60 and we are done with work. . We have always focused on it without huge incomes . Start early in super is the key.
I’m home owner & my superfund is about $500,000. I retired at 69 (12 years ago). I owned my home & have no debts. My pension is $42,000 a year. I live comfortably on this amount of pension. Most important when retired is to employ a good financial advisor, who invests your superfund & provide the pension. At all times be cautious that the balance in your superfund is intact or is growing slightly. Preserving the balance in your superfund balance is most important as you are not working & have no income to top up your superfund.
I felt it was a great attempt to explain in very basic language what to expect financially in retirement. I retired 4 yrs ago after 40 yrs in finance industry and always found it sad and frustrating at the same time how little people invest their time in understanding the dynamics of finance. True financial planning is not about seeing a financial planner to map out your life journey ahead but instead, for one to start understanding their own historical earning & spending behaviour and also being realistic with one self about what they willing to tweak up or down to create their own realistic future plan. And then look at this plan often to see how you tracking & make changes if need be. Talk to other people and ask what they doing to achieve their goals and read stuff available online from all over the world. Good luck,,,
You dont want to purely retire. Working provides a growth mindset and lets you reward yourself with things. Just work less or work more on things you really enjoy regardless if they pay. Having a good amount of super and owning your own home helps take the stress out of working.
@@Bluemusic66 Err some do. I love cars and Remote control cars and planes so buying them every now and then is my enjoyment. I can't play golf or travel due to spine issues so cars and RC stuff is my reward and enjoyment. Not everyone is like you.
@@malsmith2012 getting defensive. Where did I say everyone is like me? Read carefully. I was actually commenting on someone giving life advice and basically saying exactly what you are, “not everyone is like you” 👍
1:33 I've downloaded the ASFA doc and once I pulled out all the bloody crap -- restaurant meals x times / week -- international trips yearly, domestic biannually --- gym membership blah blah. We will retire quite comfortably, at a much lower figure because comfortable for us isn't posh!
Exactly. The people that make up those charts are Sydney North shore people. In the real world nobody Eats out in restaurants or does annual overseas holidays. Maybe a weekend at the beach... but even that costs THOUSANDS at peak times. Australia is a rort. I would leave if I could
@@kaypendergast5676 So, go at non-peak times. If you're retired, you don't need to go when the crowd goes. Australia is expensive, yes, but it's also one of the best countries to retire in, in the world.
These reports made by interests in the financial retirement industry seem to done to scare people to give them more money. Most are not realistic to the average joe. They all seem to say that when retired, you’re suddenly going to go out to cafes and expensive shows and restaurants etc all the time and forget the fact that you never really did these things most of your life so why would you be an idiot and do things you dont do normally. Just not real. Most who retire still like the relaxing day at the beach, a few beers with mates, probably just 1 big trip overseas and thats it. My parents and their generation still did the same things they liked to do most free or cheaply, and not spend on silly expensive new iPhones or whatever.
My wife and I have around a million or so in our super and my financial adviser has mapped out how we can have $95k a year indexed linked until the day we die. So yes a million is enough - I am retired at 58 and my wife retired a couple of years ago. you also need to balance the money in super with your health - if you work 5 years longer you won't need as much money as you will be retired for at least 5 years less.
I’m 50 and hope to retire in about a year or two. I converted my super into a S.M.S.F and turned $110k into $3mil this year. More V people need to understand the history of money and why we have inflation. When you work that out you’ll know what to invest in!
I’ve worked out you can retire at 60 with $500k and get around $50k a year. There is a sweet spot with getting the age pension. It’s not $600k - $1m. You virtually get nothing from the pension. So if you have around $650k you may as well only have $500k because at 67 you get bugger all pension, but at $500k you get a bigger chunk. In other words, the more super you have, the more it’s ‘wasted’ because you get less pension. Of course once you’re $1m plus, you don’t need the pension at all. Also, we generally spend less after 80-85. So you don’t really need $50k, more like $40k (today’s dollars). *This is not financial advice*
in a month's time I am reaching 60 and will start accessing my super by TTR arrangement as I have not fully retired yet. It will enable me to double my take home pay for the next 5 years, or if I fully retired from work playing by the rules. Hoping the TBC limit would be higher by the time I start my pension stream.
Consider taking up a gig/casual job for the next month, then once 60 quit that job while continuing to work your main job. That way, you satisfy the requirement to start a full tax free pension with all your super (up to $1.9m), because you "ceased AN employment relationship". Not hard and perfectly legal, if perhaps not the intent of the legislation.
@@johnoneill1011 aware of that, I see what my accountant says (in SMSF arrangement) but she is ultra careful in suggesting me to do so. It is OK either way for me.
@@johnoneill1011 that looks very interesting can you tell me a little more about this please does the job have ave to be a full time job you quit .can it be casual or part time job on your days off and is this when you reach 60
For a single person a million might be fine but 700,000-800,000 is pointless.You might as well have $300,000 and then access the [nearly full] aged pension.Better to spend the $400,000 on your house which is not asset tested.
Absolutely. People don’t understand that $300k at 67 is nearly as good as $600k. I’ve just retired at 60 with about $550k. I’ll be in the ‘sweet spot’ balance of around 250-$300k at 67.
Great discussion! The idea of retiring with $1 million in Australia is intriguing. It's crucial to consider factors like lifestyle expectations and inflation. How did you calculate the adequacy of this amount for retirement in different scenarios?"
Everyone's lifestyle needs are highly unique. Some can comfortably live on $30k p.a. and others wouldn't want to retire on less than $80k p.a. So the adequacy of each amount isn't up to me - it's up to the individual.
I spend part of the year in Spain and have found that the cost of living is pretty similar to Australia, so there isn’t much in it. We spend at least $2000 per month excluding rent but including some bills ( we have a family house there) without a much of travel and entertainment - eating out once a week or so. Food and drink is at least $1200 a month. If we have family or guests staying, we spend double that - at least $4000 a month during the holidays.
To add some additional data for those interested: alcohol (especially bought in supermarkets) is quite a lot cheaper than Australia - a 330-400ml can of beer costing $1.00-1.50 depending on brand, and a bottle of brand name vodka, gin or whiskey for $20-$30. You can get OK table wine for about $5-6 and very good wine from about $12 and up. Fresh vegetables bought at markets are a lot cheaper and often much better quality than Australian supermarket veges. Real-estate *is* a lot cheaper than Australia in many places, unless you want a water-front villa in a touristy area with a load of ex-pat neighbours. Median house price is about $265000, and in coastal cities the average is about $3200 per square meter, but bear in mind most people live in units so there are strata costs as well.
I am dependant on centrlink for an invalid pension but make do. People perhaps have lost sight of 1 million. Pre decimal currancy in Australia the man who was worth 1 million pounds was Wealthy. Wages would have been around 10 shillings or half a pound. To equal that today one would need around $60 to $70 Millon.
Thanks Chris - very informative! Do you have planning spreadsheet that would allow me to adjust the variables in your video (eg. amount in super; annual living cost, etc)
Your videos are awesome. Nearing retirement with a super balance of $380k. We own our home and have no debts. As far as accrued annual leave & long service leave is concerned, should I get those accruals paid out before I retire or should I take them beforehand. Not sure of the most tax effective way
The tax on a termination payment will depend on your years of service. This information may help www.ato.gov.au/tax-rates-and-codes/payg-withholding-schedule-7-tax-table-for-unused-leave-payments-on-termination-of-employment. However, generally employer SG payments are not paid on termination payments, but are paid on leave entitlements, so some people decide to use up leave before they quit, so that they get the super contributions associated.
This was most interesting to me because I am thinking of TTR next year at age 63 and right now just over 1mill in super. We have no debit at all except normal bills.
Depends on how much you want. $1m at 63 is heaps (if you need 60-80k a year)Theres one thing he’s not explaining. He’s assuming you won’t get any aged pension. I’m nearly 60. I’ll have about $550k at 60. I can retire on about $50k a year (which is all I need). Why? Because by the time I’m 67 my super balance will be about $300k and means I will get almost maximum aged pension to make up the shortfall. If I had $600k at 67 it’s almost only as good as $300k because I’d get 0 pension for a few years, and then a trickle until my balance goes down. You just need to put the figures in a retirement calculator to see what I mean. In that position, you’re almost better off spending a few hundred grand on your house (no asset test) and maximising the age pension.
The income assumes that you eventually reduce your super balance to be eligible for a part pension. This wasn't explained. I suspect some watching would like to know the likely income from one million dollars without reducing the starting balance and preferably with that balance and the income keeping up with inflation.
@@lynettejwhite thanks but I don't espouse to that rule. It is based on the US whereas in Australia dividends are much higher. Up to the tax free threshold you can expect 7% from a balanced portfolio after you get franking credits back. Your capital remains intact and grows with capital gains in line with the market hedging you against inflation.
Hi Chris I Plan to utilise the downsizer rule at some stage I am 55 next month and plan to reach the transfer balance cap by the age of 60 if use the down sizer contribution prior to reaching the transfer balance will that limit how much money I can get into my superannuation, Would it be wiser to use the downsizer rule after reaching the transfer balance cap , Which is currently 1 .9 million And At 60 start a pension and then add the downsizer rule contribution into my accumulation super account .
Could you tell which is better annuities or term deposits. As i see it annuities eat at your capital and very low interest rates. Term deposit doesnt eat your capital and currently and future would be better interest rates. Whats your view please?
So, earning a return on 1 million AND owning a house or unit. The property should also increase in value over 25 years. Why be concerned about what the kids get? If the property is valued at anywhere from 1 million to 5 million (for example) they aren't left with "nothing".
No, you don't own your home! but only a subscription plan (land taxes, council taxes etc) for the exclusive use of it.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated from you.
@@ian-f5f I answered your question in my answer. Your statement is ridiculous. If you don't understand Super, educate yourself. It is the best tool to enrich yourself in retirement TAX-FREE.
Hi Chris, could you clarify (unless I missed it!) what age pension you can expect at 67 with and without a home? ie I believe your own home isn't included in the benefit calc, but how much other assets have been assumed in the calculation of age pension qualification? thanks :)
Super has never paid more than the interest you will pay on mortgage before the rates went to its low point and after the rates began rising again. You can hedge your bets but always paying off a loan quicker is the best strategy. You can't predict the future but forward thinking is better. Who could have predicted the Wuhan virus ?
@@dadoftwinsau unless the debt costs less than the return on the investments you can make with the money! I did some calculations a few years ago and found that that extending my mortgage when rates were low, gave me funds to invest in ETFs and super funds that paid a lot more. When the situation changed with increased mortgage interest rates, I paid off the mortgage with the money I had made. You have to calculate cost/benefit *all* the time of course, so it does require a bit of work :-)
Mum just moved to a nursing home and I would say $500k for the NH room RAD , then have the $1M to draw down for the annual expenses is just right. $60k just for NH care fees, extra for meds, doctors, treats etc.
It big business, $500 K for a shoes box is pretty steep. They have us with taxes, they have us with interest repayments, they have us with retirement homes, they have us all the way to the grave.
Noticed a familar theme with some of the comments: "I'll be right because I can live on $x per year." Implication: "it's easy if you look after your budget". The unstated part: these people almost always own their own home outright. When you're not having to pay half (or more) of your income in rent, and you're getting $40K in pension, and you're drawing down on your super or other investments, then yes, life can seem pretty comfy. But the whole system is based around you earning your own home. And that's not a reality for many Australians.
HI I am planning to retire after I reach age 25 and do youtube/gaming later I am right now doing website business. planing to achieve 1 million in the next 4 years. will 1 million will be enough ? to live in places like kualalumput and bankok wit less cost of living. may be make a video about early retirement
Do your figures calculate in inflation (in order to assure your buying power in the years of retirement doesn’t become lower with every passing year - effectively living poorer and poorer with every passing year)? If not… well, then the figures are not very valuable…
Watch it again ... the assumptions assume rates of growth above CPI, so yes they are catering for inflation but all the figures are in todays dollars. There are other online calculators which give similar results and rationale. Remeber though, nopt every year will grow positively, history shows that.
@@SuperGuyAu It might sound silly but if I knew everything would be much simpler. I hate the idea of working longer only to leave behind a massive estate. I’d rather know so know when to retire 😂
Im doing the opposite. Working out how much i can spend, and pissing every cent of my allowance up the wall each year. rinse and repeat. Its going to be a fun time and Im going to help a lot of random people.
@@Fanta.... What happens if the global debt bomb, de globalisation and the world wide demographic winter depresses asset prices and dividends for decades? You planned for a 20 year bear market that do come along every century? The excessive leverage in the system does look similar to 1929.
$1m is sadly no longer enough in retirement - it will pay for a very basic life if living off the interest - if you don’t own your home outright & are paying rent to live somewhere - you’re screwed.
@@Woodland26 that makes it even worse as your balance declines once the principle is spent as your interest income will continue to diminish therefore leading to a poverty retirement once you’ve spent the principle ($1m) - & for a decent retirement, it won’t take too long to see $1m disappear quickly - particularly if you don’t own your home.
@@arnobertogna4718 that is true, so I over provision on both fronts, just in case. Plus still do some work after 60, so not immediately draining the balance.
Bah I live on a yacht I own, pay $70 a month jetty rent, half the pension is survival, the other half is adventures on the yacht & annual month overseas.
@@Bluetooth_ez that’s crazy. With even $2m your investment return would be around $160k per year. So if you consider $100k a year ‘comfortable’ (which is considered VERY comfortable) then your balance would in fact increase year on year even with inflation.
You mention putting more into super. Later in life closer to retirement is very risky. If markets go belly up after 60 its nearly non recoverable and burnt cash. Banks are less risky on investment. I know you may pay tax on interest returns but its safe accessible cash. You need super and banks to give you security on a balanced level.
@@davidsyd9318 I'm a multi millionaire. I do know super and that's where I made most of my money. Living 20-30 years aftet 60???. Not likely and if you do, as you get older you spend less. If you require medical intervention or housing Medicare and pension which you have contributed to all your working life will take care of that. So it is good advice when in your 60's.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Its not about how much you have its about how much income you can generate. With 1 million you should easily be able to provide at least 85,000. You can also achieve 100,000 with not too much risk but also if you want to go for broke you could make around 120,000. 100,000 is what people should aim for as that provides a good life style in retirement. I retired 12 years ago and make more money in retirement than I did working, but then I didn't earn much working.
Risk 20% of the 1mil in high yield high risk fund (or trade on your own) Balance 80% in FD Capital 200k 7% monthly x 200k = 14K each month. Withdraw your profit each month until totalling 200k. Your risk is reduced each month, and at the end of 13 months, you are RISK-FREE. From 14th month, compound for next 12 to 18 months ... 12 months compounded = 2.25X ... 18 months compounded = 3.39X ... 24 months compounded = 5X ... 36 months compounded = 11X This is how you take a calculated risk, achieve 0 risk and turn 200k into $2.2mil in 4 years! All the best!
Pension payments are part capital and part earnings. Plus, as your asset base declines over time, you eventually become eligible for Age Pension payments.
If you use 40kWh of electricity per day and it costs 35c/kWh AND if electricity inflation reduces to 10% per year your cumulative electricity bill for 25 years will be more than $500000.
@@dadoftwinsau i live inland, on the other side of the mountains. Much of our energy is nighttime winter heating : so we don’t freeze to death. Coastal Communists who have sabotaged energy policy no nothing of these things. Where do you live?
If you always contribute a little more I know quite a few women who, importantly, always worked who have mid range jobs - nurse, teacher, public servant, who have achieved that before retirement. It is certainly not that unusual, but does require thought and maybe putting in a bit extra along the way. the power of compound interest really matters - as does starting as early as possible
I’m 54, have been contributing to super since I started work as a 21yo. By the time I’m 60, I should hit that target. Admittedly I haven’t had to take time out of the workforce for kids, so YMMV, but it’s a case of start early and contribute what you can regularly to maximise the balance by retirement.
I'd use that 1 mil and invest in high risk 200k @ 7% monthly (80%pa.) 1. 800k in fixed deposit @3%pa. = 24k pa. 2a. Straight-line 7% p.month or 84% pa. = 168k pa. 2b. Compounded 12 months @7% p.mth or 125% pa. = 250,438 pa. Roughly you should be making 190k - 290k pa. Fly business class and stay in 5⭐️ hotels. Nothings worse that 60 year olds in sandwich class!! Enjoy your Rich Life!
@ And I play golf twice a week and we have meals at the club and very busy in the community, but you can still buy a house for under $200k so a lot of people are selling up in the city and buying a home in rural communities and retiring early and enjoying life to the max
Great video SuperGuy. Would one consider me pretty crazy if I chose a post-retirement super investment strategy of balanced or growth instead of a highly defensive strategy? Let's say I targetted 7-8% growth on average instead of 6% which appears to be the default assumption post retirement. I mean look at the last several years, COVID, inflation & cost of living crisis, multiple wars around the globe - and markets have a) held up well all things considered and/or b) recovered very quickly. So the risk of loss of super value if I were to choose a growth strategy I think can be managed given most years are growth years and loss years markets hold up reasonably, add to that one could reduce super withdrawal during loss years to minimize loss and 'tighten you're belt' or use other non-super funds for a short time.
heres a simple strategy... look up etfs A200 and VLC. they track the Aus stock market index. dividends average around 5% and growth around 2%. very low expense fees and you dont need an advisor etc to buy them.. fully liquid and long term have certainly outperformed fixed deposits/bonds etc and provide passive income if needed. then if you want to go for a better return then look at some of the S&P500 (US) etfs... SPLG / SCHD / SCHG / XLK . a mix of these (30%/30%20%/20%) based on your risk historically exceeds 10% / annum. again low fees and you can buy direct. if you dont want to risk holding these in USD then you can buy BGBL and VDQ they are close equvalents but are bought in AUD equivalent... i moved out of property rentals into these cause as i have got older i dont like stuffing around with agents / insurance/ maintenance etc and are very liquid.. and i hold them long term and have no need to sell them -(i top them up especially when a down market) probably still be holding them when i die but gives me the breathing space/growth/security that works for me. cheers
I would keep 1-2 years expense in cash then the rest in growth/high growth. It means the difference between running out at 85 or lasting >100 with balance higher than starting point.
Depending your age shall denote super/ market recovery. If you are in 60s retirement will be hit and you won't recover if and when you retire in a couple of years. How old are you if you don't mind me asking?
I'm 55 and have very little super savings, so I'm not sure how I'm going to be able to support myself at retirement. I wish I could still be able to work up till 75 because this is the only way I support myself.
At 55 you have 10 years at least left. Have you ever heard of the RULE OF 72? This is a mathematical rule where whatever the growth rate of an item is (% growth rate) whatever the answer is when you divide that number in to 72 is will be the amount of years that item/house whatever will DOUBLE in value. Example- say you have a unit in an area that long term grows at and average rate of 8%. 72 divided by 8 = 9 so every 9 years that unit will double. This mathematical rule works for everything and was a great tool and motivator for me when I started investing in property years ago. And it really lets you realise what these seemingly small percentage numbers actually mean in real life . Hopefully you can find a good investment for the next ten years where you can make some OK money for retirement..
My wife is 53 and I'm 48. We have about $180k in super. But, we also have about $4mill in property here in Australia and three properties overseas where we will retire to result when I'm 55-57 of not earlier. Plus the super, shares, precious metals and cash savings. I'm wondering how to minimise tax.
Be a citizen of countries like Singapore which have zero tax on dividends, no capital gains tax and no inheritance tax. Rental properties income are taxed but only if these properties are in Singapore. However the bar is very high for foreigners who want to be citizens unless you have like S$50 to S$100 million (AUD$55 to AUD$110 million) net worth, not kidding, which judging from your summary you may not qualify to apply.
@@herbertvonsauerkrautunterh2513 We were in a similar situation - a bit more in super, but less in property value - and made the decision to downsize the house and use the downsizer allowance ($300,000 each) plus the advanced payment of up to 3 years’ non-concessional contributions (currently up to $360,000 per person this year I think). So as a couple you could add $1,320,000 to your super fund if you sold the $4m property and bought something for about $2.5m. Your wife can start an income stream tax free from the super in 7 years time, and you could probably do a transition to retirement pension or just stop work early. Your super pot could be around the $2 million mark by that time.
$1M AUD will last me 80 years in Vietnam, Thailand or Cambodia. I’m only 20 and I could retire now to those countries. I inherited my parents house valued at $1.4M
people really don't need a financial planner, they pay people like this guy when you just need some basic math skill, which people should have. be smart not dumb
I'm 48 but should be just a few years off retirement. I have a solid, positively geared property portfolio and SMSF but I'm struggling to find a financial adviser who properly understands real estate. While I'm outside of your select age group, are you able to offer an initial review or direct me to someone who could work with me ?
First 1/3 is the hardest. Then there will be what I call singularity point at which super will make you same amount of money as your contrubutions. And from there very quickly it salary contributions have almost no effect. By the time you get to 400-600k it is good idea to be investment eductated. Investing in blue chips or blue chip ETF's that earn dividends and you can write options over is boosting ordinary SP500 up. But with downside risk management strategy.
I'm almost 59, no way will i ever have 1M$ saved by then... single/own house and got just over 100K in banks and 250K in super, guess i'll have to work till i drop dead.
You will be eligible for the Government Pension on top. Currently that is $26,535 per year. Over 25 years that is worth $663, 375. That is the base rate, you may also be eligible for additional funds. You will also get the Pension Healthcare card which reduces all sorts of bills ( 50% off car rego for example) Don't despair, get educated and ignore the naysaying boasters on here. Prepare for a lot of people getting sniffy with me about the government pension, but the reality is most Australians still rely on that top up to make that million, and it's ok. Life is not the fantasy world a lot of the commentators on here pretend it is. They forget that in the real world career breaks, marriage breakdown, retrenchment, singledom, sickness and accidents can all impact, or significantly alter the trajectory of their lives.
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.torowealth.com.au/6-step-super-check/
The wife and I are at $ 2.5 million in super alone and we are in our mid 50's.We should hit $4 million by 60 and we are done with work. . We have always focused on it without huge incomes . Start early in super is the key.
Well done to both of you
I’m home owner & my superfund is about $500,000. I retired at 69 (12 years ago). I owned my home & have no debts. My pension is $42,000 a year. I live comfortably on this amount of pension.
Most important when retired is to employ a good financial advisor, who invests your superfund & provide the pension. At all times be cautious that the balance in your superfund is intact or is growing slightly. Preserving the balance in your superfund balance is most important as you are not working & have no income to top up your superfund.
Check your eligibility for a part aged pension and all the concessions that go with that.
Exactly... preserve the balance
I felt it was a great attempt to explain in very basic language what to expect financially in retirement. I retired 4 yrs ago after 40 yrs in finance industry and always found it sad and frustrating at the same time how little people invest their time in understanding the dynamics of finance. True financial planning is not about seeing a financial planner to map out your life journey ahead but instead, for one to start understanding their own historical earning & spending behaviour and also being realistic with one self about what they willing to tweak up or down to create their own realistic future plan. And then look at this plan often to see how you tracking & make changes if need be. Talk to other people and ask what they doing to achieve their goals and read stuff available online from all over the world. Good luck,,,
You dont want to purely retire. Working provides a growth mindset and lets you reward yourself with things. Just work less or work more on things you really enjoy regardless if they pay.
Having a good amount of super and owning your own home helps take the stress out of working.
Well said!
Yes, well said. For many, most of their social interaction comes from work.
Errr, retiring is my reward. I don’t need to reward myself with ‘things’.
@@Bluemusic66 Err some do. I love cars and Remote control cars and planes so buying them every now and then is my enjoyment. I can't play golf or travel due to spine issues so cars and RC stuff is my reward and enjoyment. Not everyone is like you.
@@malsmith2012 getting defensive. Where did I say everyone is like me? Read carefully. I was actually commenting on someone giving life advice and basically saying exactly what you are, “not everyone is like you” 👍
Love what you do Chris. Thanks for the videos
$1 million invested correctly would produce some nice dividends. Would never even have to touch the $1 million.
1:33 I've downloaded the ASFA doc and once I pulled out all the bloody crap -- restaurant meals x times / week -- international trips yearly, domestic biannually --- gym membership blah blah. We will retire quite comfortably, at a much lower figure because comfortable for us isn't posh!
Exactly. The people that make up those charts are Sydney North shore people.
In the real world nobody Eats out in restaurants or does annual overseas holidays. Maybe a weekend at the beach... but even that costs THOUSANDS at peak times.
Australia is a rort. I would leave if I could
@@kaypendergast5676 So, go at non-peak times. If you're retired, you don't need to go when the crowd goes.
Australia is expensive, yes, but it's also one of the best countries to retire in, in the world.
@@kaypendergast5676it doesn’t budget for an annual overseas holiday. It budgets 2 or 3 at the most depending on how long you live.
These reports made by interests in the financial retirement industry seem to done to scare people to give them more money. Most are not realistic to the average joe. They all seem to say that when retired, you’re suddenly going to go out to cafes and expensive shows and restaurants etc all the time and forget the fact that you never really did these things most of your life so why would you be an idiot and do things you dont do normally. Just not real. Most who retire still like the relaxing day at the beach, a few beers with mates, probably just 1 big trip overseas and thats it. My parents and their generation still did the same things they liked to do most free or cheaply, and not spend on silly expensive new iPhones or whatever.
@ exactly.
Thank you, Chris. A simple way of looking at retirement, and well presented to cover the important aspects.
Excellent video Chris. Thank you 😊
I really like how you said ‘I assume you want to cover retirement expenses to age 90’… …
Thanks Chris another great video.
Wow so glad I found you. instant subscribe. thanks
Thanks for subscribing!
Thank you for the information. It’s made my goal clearer.
I love watching your videos! Always food for thought!
My wife and I have around a million or so in our super and my financial adviser has mapped out how we can have $95k a year indexed linked until the day we die. So yes a million is enough - I am retired at 58 and my wife retired a couple of years ago. you also need to balance the money in super with your health - if you work 5 years longer you won't need as much money as you will be retired for at least 5 years less.
Well done!
I’m 50 and hope to retire in about a year or two. I converted my super into a S.M.S.F and turned $110k into $3mil this year. More V people need to understand the history of money and why we have inflation. When you work that out you’ll know what to invest in!
I’ve worked out you can retire at 60 with $500k and get around $50k a year.
There is a sweet spot with getting the age pension. It’s not $600k - $1m. You virtually get nothing from the pension.
So if you have around $650k you may as well only have $500k because at 67 you get bugger all pension, but at $500k you get a bigger chunk.
In other words, the more super you have, the more it’s ‘wasted’ because you get less pension. Of course once you’re $1m plus, you don’t need the pension at all.
Also, we generally spend less after 80-85. So you don’t really need $50k, more like $40k (today’s dollars).
*This is not financial advice*
Helpful advice, thank you.
Not a mention of sequence of returns risk?
Great video. A couple with $1m combined will do just fine in my view. :)
Thanks for watching
in a month's time I am reaching 60 and will start accessing my super by TTR arrangement as I have not fully retired yet. It will enable me to double my take home pay for the next 5 years, or if I fully retired from work playing by the rules. Hoping the TBC limit would be higher by the time I start my pension stream.
Did you factor in the inflation? $50k in 10 years will be worth 70% less
@@vmac11k99 those calculators claimed it is adjusted for inflation
Consider taking up a gig/casual job for the next month, then once 60 quit that job while continuing to work your main job. That way, you satisfy the requirement to start a full tax free pension with all your super (up to $1.9m), because you "ceased AN employment relationship". Not hard and perfectly legal, if perhaps not the intent of the legislation.
@@johnoneill1011 aware of that, I see what my accountant says (in SMSF arrangement) but she is ultra careful in suggesting me to do so. It is OK either way for me.
@@johnoneill1011 that looks very interesting can you tell me a little more about this please does the job have ave to be a full time job you quit .can it be casual or part time job on your days off and is this when you reach 60
For a single person a million might be fine but 700,000-800,000 is pointless.You might as well have $300,000 and then access the [nearly full] aged pension.Better to spend the $400,000 on your house which is not asset tested.
Absolutely. People don’t understand that $300k at 67 is nearly as good as $600k.
I’ve just retired at 60 with about $550k. I’ll be in the ‘sweet spot’ balance of around 250-$300k at 67.
Great discussion! The idea of retiring with $1 million in Australia is intriguing. It's crucial to consider factors like lifestyle expectations and inflation. How did you calculate the adequacy of this amount for retirement in different scenarios?"
Everyone's lifestyle needs are highly unique. Some can comfortably live on $30k p.a. and others wouldn't want to retire on less than $80k p.a. So the adequacy of each amount isn't up to me - it's up to the individual.
Just grab that one million, off to somewhere like Spain or Portugal and goodbye Australia!
I dream about that often
Inflation will follow you
I spend part of the year in Spain and have found that the cost of living is pretty similar to Australia, so there isn’t much in it. We spend at least $2000 per month excluding rent but including some bills ( we have a family house there) without a much of travel and entertainment - eating out once a week or so. Food and drink is at least $1200 a month. If we have family or guests staying, we spend double that - at least $4000 a month during the holidays.
To add some additional data for those interested: alcohol (especially bought in supermarkets) is quite a lot cheaper than Australia - a 330-400ml can of beer costing $1.00-1.50 depending on brand, and a bottle of brand name vodka, gin or whiskey for $20-$30. You can get OK table wine for about $5-6 and very good wine from about $12 and up. Fresh vegetables bought at markets are a lot cheaper and often much better quality than Australian supermarket veges.
Real-estate *is* a lot cheaper than Australia in many places, unless you want a water-front villa in a touristy area with a load of ex-pat neighbours. Median house price is about $265000, and in coastal cities the average is about $3200 per square meter, but bear in mind most people live in units so there are strata costs as well.
@@doodlegassum6959 Equities provide dividend income and protect you from inflation. Notice how the asx is sitting around an all time high ?
I am dependant on centrlink for an invalid pension but make do. People perhaps have lost sight of 1 million. Pre decimal currancy in Australia the man who was worth 1 million pounds was Wealthy. Wages would have been around 10 shillings or half a pound. To equal that today one would need around $60 to $70 Millon.
Thanks Chris - very informative! Do you have planning spreadsheet that would allow me to adjust the variables in your video (eg. amount in super; annual living cost, etc)
Your videos are awesome. Nearing retirement with a super balance of $380k. We own our home and have no debts. As far as accrued annual leave & long service leave is concerned, should I get those accruals paid out before I retire or should I take them beforehand. Not sure of the most tax effective way
The tax on a termination payment will depend on your years of service. This information may help www.ato.gov.au/tax-rates-and-codes/payg-withholding-schedule-7-tax-table-for-unused-leave-payments-on-termination-of-employment. However, generally employer SG payments are not paid on termination payments, but are paid on leave entitlements, so some people decide to use up leave before they quit, so that they get the super contributions associated.
Thank you Chris!
This was most interesting to me because I am thinking of TTR next year at age 63 and right now just over 1mill in super. We have no debit at all except normal bills.
Depends on how much you want. $1m at 63 is heaps (if you need 60-80k a year)Theres one thing he’s not explaining. He’s assuming you won’t get any aged pension.
I’m nearly 60. I’ll have about $550k at 60. I can retire on about $50k a year (which is all I need). Why? Because by the time I’m 67 my super balance will be about $300k and means I will get almost maximum aged pension to make up the shortfall. If I had $600k at 67 it’s almost only as good as $300k because I’d get 0 pension for a few years, and then a trickle until my balance goes down.
You just need to put the figures in a retirement calculator to see what I mean.
In that position, you’re almost better off spending a few hundred grand on your house (no asset test) and maximising the age pension.
The income assumes that you eventually reduce your super balance to be eligible for a part pension. This wasn't explained.
I suspect some watching would like to know the likely income from one million dollars without reducing the starting balance and preferably with that balance and the income keeping up with inflation.
In which case I suggest that you look into the discussions in the FIRE community, and their 4% rule.
@@lynettejwhite thanks but I don't espouse to that rule. It is based on the US whereas in Australia dividends are much higher. Up to the tax free threshold you can expect 7% from a balanced portfolio after you get franking credits back. Your capital remains intact and grows with capital gains in line with the market hedging you against inflation.
Hi SuperGuy, can you make video about super for Australian non residents please?
Hi Chris I Plan to utilise the downsizer rule at some stage I am 55 next month and plan to reach the transfer balance cap by the age of 60 if use the down sizer contribution prior to reaching the transfer balance will that limit how much money I can get into my superannuation,
Would it be wiser to use the downsizer rule after reaching the transfer balance cap , Which is currently 1 .9 million And At 60 start a pension and then add the downsizer rule contribution into my accumulation super account .
depends on if renting or owning your home big time.
I hope so as I'm already retired with less and didn't get the memo.
Could you tell which is better annuities or term deposits. As i see it annuities eat at your capital and very low interest rates. Term deposit doesnt eat your capital and currently and future would be better interest rates. Whats your view please?
I’m assuming that calculation is based on the super capital decreasing to zero by the time you hit 90
Living off grid would also help
That works, right up until you need medical help, services.
Or you need caring.
Or you're a carer.
And then, suddenly, you need society again.
could you tell me where i can rent a house for $5 or $3 a year please?
So, earning a return on 1 million AND owning a house or unit. The property should also increase in value over 25 years. Why be concerned about what the kids get? If the property is valued at anywhere from 1 million to 5 million (for example) they aren't left with "nothing".
My mother saved $60000 on the age pension. If you own your own home, you can do it.
She did well!
No, you don't own your home! but only a subscription plan (land taxes, council taxes etc) for the exclusive use of it.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated from you.
@@KoDeMondoyou don’t pay land tax on your residential home.
@@KoDeMondowhat are you on about? It goes in your will and your beneficiaries will get it.
Draw your super as soon as possible and spend it or make it dissapear into untraceable assets. As long as your house is paid off.
What sort of untraceable assets?
@@oggyoggy1299 Anything which can be sold for cash without reporting to the government.
@@ian-f5f Why? That's crazy. Your super is earning double digits tax-free? That makes no sense.
@@TheSuperdodgy No sense? Why not?
@@ian-f5f I answered your question in my answer. Your statement is ridiculous. If you don't understand Super, educate yourself. It is the best tool to enrich yourself in retirement TAX-FREE.
Hi Chris, could you clarify (unless I missed it!) what age pension you can expect at 67 with and without a home? ie I believe your own home isn't included in the benefit calc, but how much other assets have been assumed in the calculation of age pension qualification? thanks :)
This is clearly available on the govt super website
I would love to see you make a video for those of us in our 40's about how much we need to retire. $2m?
Thank you, Chris, for the information
Since we are getting extra take home money from this month, is it better to put that extra into super or pay extra payments towards mortgage?
He did a video on super vs mortgage
Super has never paid more than the interest you will pay on mortgage before the rates went to its low point and after the rates began rising again. You can hedge your bets but always paying off a loan quicker is the best strategy. You can't predict the future but forward thinking is better. Who could have predicted the Wuhan virus ?
Debt first! Always!
@@dadoftwinsau unless the debt costs less than the return on the investments you can make with the money! I did some calculations a few years ago and found that that extending my mortgage when rates were low, gave me funds to invest in ETFs and super funds that paid a lot more. When the situation changed with increased mortgage interest rates, I paid off the mortgage with the money I had made.
You have to calculate cost/benefit *all* the time of course, so it does require a bit of work :-)
I would say 1 Million is a good start, but likely not enough given the cost of living continuing to sky rocket.
Mum just moved to a nursing home and I would say $500k for the NH room RAD , then have the $1M to draw down for the annual expenses is just right. $60k just for NH care fees, extra for meds, doctors, treats etc.
There's a lifte time cap on carer fee. Just under $80k
It big business, $500 K for a shoes box is pretty steep.
They have us with taxes, they have us with interest repayments, they have us with retirement homes, they have us all the way to the grave.
Noticed a familar theme with some of the comments: "I'll be right because I can live on $x per year."
Implication: "it's easy if you look after your budget".
The unstated part: these people almost always own their own home outright.
When you're not having to pay half (or more) of your income in rent, and you're getting $40K in pension, and you're drawing down on your super or other investments, then yes, life can seem pretty comfy.
But the whole system is based around you earning your own home.
And that's not a reality for many Australians.
HI I am planning to retire after I reach age 25 and do youtube/gaming later I am right now doing website business.
planing to achieve 1 million in the next 4 years. will 1 million will be enough ? to live in places like kualalumput and bankok wit less cost of living.
may be make a video about early retirement
Do your figures calculate in inflation (in order to assure your buying power in the years of retirement doesn’t become lower with every passing year - effectively living poorer and poorer with every passing year)? If not… well, then the figures are not very valuable…
Watch it again ... the assumptions assume rates of growth above CPI, so yes they are catering for inflation but all the figures are in todays dollars. There are other online calculators which give similar results and rationale. Remeber though, nopt every year will grow positively, history shows that.
3:56 … “but if you think you will live until age 100”…
How do you work that out…? 😂
hahaha who knows! A little visualisation and manifestation?????? I say some silly things...
@@SuperGuyAu It might sound silly but if I knew everything would be much simpler. I hate the idea of working longer only to leave behind a massive estate. I’d rather know so know when to retire 😂
Yes it is but a better question is 100k a year tax free enough?? Why bother with the lump sum when you live off a yearly income, just a waste of time.
Many Australians die richer than the day they retire due to reluctance to spend their super....So dont worry 😅
Im doing the opposite. Working out how much i can spend, and pissing every cent of my allowance up the wall each year. rinse and repeat. Its going to be a fun time and Im going to help a lot of random people.
@@Fanta....that’s the way 👍
@@Fanta.... As a mate's motto says: Advencha before Demensha.
@@Fanta.... What happens if the global debt bomb, de globalisation and the world wide demographic winter depresses asset prices and dividends for decades? You planned for a 20 year bear market that do come along every century? The excessive leverage in the system does look similar to 1929.
$1m is sadly no longer enough in retirement - it will pay for a very basic life if living off the interest - if you don’t own your home outright & are paying rent to live somewhere - you’re screwed.
the 1m balance is supposed to drawn out over time, not to preserved untouched. So it may be more than you think.
@@Woodland26 that makes it even worse as your balance declines once the principle is spent as your interest income will continue to diminish therefore leading to a poverty retirement once you’ve spent the principle ($1m) - & for a decent retirement, it won’t take too long to see $1m disappear quickly - particularly if you don’t own your home.
@@arnobertogna4718 that is true, so I over provision on both fronts, just in case. Plus still do some work after 60, so not immediately draining the balance.
Bah I live on a yacht I own, pay $70 a month jetty rent, half the pension is survival, the other half is adventures on the yacht & annual month overseas.
@@arnobertogna4718 You obviously live a very lavish lifestyle.
Is it a $1Mill for a couple or $2mill ?
I plan on living till im 105. So, if i retite at 65, I'll need $2,920,000 to retire comfortably.
@@Bluetooth_ez that’s crazy. With even $2m your investment return would be around $160k per year. So if you consider $100k a year ‘comfortable’ (which is considered VERY comfortable) then your balance would in fact increase year on year even with inflation.
About a third of Australians do not own their home, and the number is increasing. Thanks for including that demographic in your presentation.
No problem!
6.5 pct is not realistic given close to retirement . What risky assets after fees and tax are you introducing to the calculus sir?
Why not realistic?
@@ERIN_198 show me a capital guaranteed or even protected strategy giving 6.5 pct. Normally it’s 6.5 or 0 pct. Not exclusive.
You mention putting more into super. Later in life closer to retirement is very risky. If markets go belly up after 60 its nearly non recoverable and burnt cash. Banks are less risky on investment. I know you may pay tax on interest returns but its safe accessible cash. You need super and banks to give you security on a balanced level.
Very bad advice
@@ERIN_198 That's putting it mildly lol. Looks like someone doesn't understand how Super funds work.
Yikes. Imagine living for another 20-30 years on guaranteed negative growth. Not sure if this is good advice.
@@davidsyd9318 I'm a multi millionaire. I do know super and that's where I made most of my money. Living 20-30 years aftet 60???. Not likely and if you do, as you get older you spend less. If you require medical intervention or housing Medicare and pension which you have contributed to all your working life will take care of that. So it is good advice when in your 60's.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Its not about how much you have its about how much income you can generate. With 1 million you should easily be able to provide at least 85,000. You can also achieve 100,000 with not too much risk but also if you want to go for broke you could make around 120,000. 100,000 is what people should aim for as that provides a good life style in retirement.
I retired 12 years ago and make more money in retirement than I did working, but then I didn't earn much working.
You cant generate income in retirement. A retirement is to cease to earn.
@@rickyzoom8059 Tell that to the tax man. My father was still paying tax at the age of 103!
Risk 20% of the 1mil in high yield high risk fund (or trade on your own)
Balance 80% in FD
Capital 200k
7% monthly x 200k = 14K each month.
Withdraw your profit each month until totalling 200k. Your risk is reduced each month, and at the end of 13 months, you are RISK-FREE.
From 14th month, compound for next 12 to 18 months
... 12 months compounded = 2.25X
... 18 months compounded = 3.39X
... 24 months compounded = 5X
... 36 months compounded = 11X
This is how you take a calculated risk, achieve 0 risk and turn 200k into $2.2mil in 4 years!
All the best!
@@rickyzoom8059 you obviously have no idea what your talking about. Your super is there to provide income in retirement, that's its purpose.
@@terrywenban6816 passive income is the magic word.
Go where your money works hardest. Earn in developed country, retire in developing one. I retired 10 years early in SE Asia. Smarter, not Harder
Congratulations. Where did you retire?
@@SuperGuyAuthe same country he fled from during the pandemic...
How on earth can you generate that level of income with 1 mil?
Pension payments are part capital and part earnings. Plus, as your asset base declines over time, you eventually become eligible for Age Pension payments.
@@SuperGuyAu
What I mean is, where do you invest 1 mil in order to generate that annual income?
No bank or credit union that I can find…?🤔
So what happens at age 90 ???
some people say they won't live past 85 and others plan to live to 100. We have to use some assumptions!
If you are still alive, you live on the government age pension (whatever small sum that is by then).
@@lynettejwhite while the politicians get the full pension at 55
If you use 40kWh of electricity per day and it costs 35c/kWh AND if electricity inflation reduces to 10% per year your cumulative electricity bill for 25 years will be more than $500000.
And if my grandmother had wheels, she would be a bicycle. whats your point.
We’re a family of 4 with a fully electric house and use only 8Kw / day….. Turn off the lights and get solar.
@@dadoftwinsau I have solar and battery, haven't paid any electricity bill for 6 months.
@@dadoftwinsau i live inland, on the other side of the mountains. Much of our energy is nighttime winter heating : so we don’t freeze to death. Coastal Communists who have sabotaged energy policy no nothing of these things. Where do you live?
You spending an average of $380/week on electricity???
No one wants to use the principal in this chat. Super is not meant to be an inheritance!!
I can choose to spend it or leave some behind. No fixed rules either way.
What salary are you on to get a mill super!!!? Certainly not an average woman.
Maybe they are active in their SMSF.
If you can save $25k by age 25, it would compound to over $1.5M by age 67, without making any additional contributions.
If you always contribute a little more I know quite a few women who, importantly, always worked who have mid range jobs - nurse, teacher, public servant, who have achieved that before retirement. It is certainly not that unusual, but does require thought and maybe putting in a bit extra along the way. the power of compound interest really matters - as does starting as early as possible
@@CallsignEskimo-l3o I should be at 20k at 20 so I guess I'm on the right track
I’m 54, have been contributing to super since I started work as a 21yo. By the time I’m 60, I should hit that target. Admittedly I haven’t had to take time out of the workforce for kids, so YMMV, but it’s a case of start early and contribute what you can regularly to maximise the balance by retirement.
most people with a morgage not going to have 1 mil so i find this stupid...and with the cost of living always rising even more so
Depends if you took the shots or not i suppose.
Thats why im living to 100, no coincidences for me 😉
@@Itsme-fb2ub 💪 legend
1 million goes further in Thailand😊
Sure does!
I'd use that 1 mil and invest in high risk 200k @ 7% monthly (80%pa.)
1. 800k in fixed deposit @3%pa. = 24k pa.
2a. Straight-line 7% p.month or 84% pa. = 168k pa.
2b. Compounded 12 months @7% p.mth or 125% pa. = 250,438 pa.
Roughly you should be making 190k - 290k pa. Fly business class and stay in 5⭐️ hotels. Nothings worse that 60 year olds in sandwich class!!
Enjoy your Rich Life!
What returns 7% month?
Yes 1 million is enough
Big mac meal. $200 in 2027.
I am retired with 120k in Superannuation but we own our home
Nice!
@
And I play golf twice a week and we have meals at the club and very busy in the community, but you can still buy a house for under $200k so a lot of people are selling up in the city and buying a home in rural communities and retiring early and enjoying life to the max
A bull but, no bear? (back round)
Great video SuperGuy. Would one consider me pretty crazy if I chose a post-retirement super investment strategy of balanced or growth instead of a highly defensive strategy? Let's say I targetted 7-8% growth on average instead of 6% which appears to be the default assumption post retirement. I mean look at the last several years, COVID, inflation & cost of living crisis, multiple wars around the globe - and markets have a) held up well all things considered and/or b) recovered very quickly. So the risk of loss of super value if I were to choose a growth strategy I think can be managed given most years are growth years and loss years markets hold up reasonably, add to that one could reduce super withdrawal during loss years to minimize loss and 'tighten you're belt' or use other non-super funds for a short time.
heres a simple strategy... look up etfs A200 and VLC. they track the Aus stock market index. dividends average around 5% and growth around 2%. very low expense fees and you dont need an advisor etc to buy them.. fully liquid and long term have certainly outperformed fixed deposits/bonds etc and provide passive income if needed. then if you want to go for a better return then look at some of the S&P500 (US) etfs... SPLG / SCHD / SCHG / XLK . a mix of these (30%/30%20%/20%) based on your risk historically exceeds 10% / annum. again low fees and you can buy direct. if you dont want to risk holding these in USD then you can buy BGBL and VDQ they are close equvalents but are bought in AUD equivalent... i moved out of property rentals into these cause as i have got older i dont like stuffing around with agents / insurance/ maintenance etc and are very liquid.. and i hold them long term and have no need to sell them -(i top them up especially when a down market) probably still be holding them when i die but gives me the breathing space/growth/security that works for me. cheers
I would keep 1-2 years expense in cash then the rest in growth/high growth. It means the difference between running out at 85 or lasting >100 with balance higher than starting point.
Depending your age shall denote super/ market recovery. If you are in 60s retirement will be hit and you won't recover if and when you retire in a couple of years. How old are you if you don't mind me asking?
Not any more.
Thats 1 million today. If you're retiring in 10 years time, like me, you will need double.
It’s not if you’re married to MY Wife 🙄🙄🙄
How the heck do you survive on 32k per year?
Some do.
If you use it to buy silver now, then yes, you will have plenty.
I'm 55 and have very little super savings, so I'm not sure how I'm going to be able to support myself at retirement. I wish I could still be able to work up till 75 because this is the only way I support myself.
At 55 you have 10 years at least left. Have you ever heard of the RULE OF 72? This is a mathematical rule where whatever the growth rate of an item is (% growth rate) whatever the answer is when you divide that number in to 72 is will be the amount of years that item/house whatever will DOUBLE in value. Example- say you have a unit in an area that long term grows at and average rate of 8%. 72 divided by 8 = 9 so every 9 years that unit will double. This mathematical rule works for everything and was a great tool and motivator for me when I started investing in property years ago. And it really lets you realise what these seemingly small percentage numbers actually mean in real life . Hopefully you can find a good investment for the next ten years where you can make some OK money for retirement..
@@malsmith2012
So if a property grows at 72% a year, I divide 72 by 72 and it means it doubles every 1 year?
I thought it grew 72% in a year.
how about one quarter of one million???
many people are living of less that $100 per week around the world......
My wife is 53 and I'm 48. We have about $180k in super. But, we also have about $4mill in property here in Australia and three properties overseas where we will retire to result when I'm 55-57 of not earlier. Plus the super, shares, precious metals and cash savings. I'm wondering how to minimise tax.
See a tax agent
Tax is not your problem
Be a citizen of countries like Singapore which have zero tax on dividends, no capital gains tax and no inheritance tax. Rental properties income are taxed but only if these properties are in Singapore. However the bar is very high for foreigners who want to be citizens unless you have like S$50 to S$100 million (AUD$55 to AUD$110 million) net worth, not kidding, which judging from your summary you may not qualify to apply.
Make concessional and non- concessional contributions to super.
@@herbertvonsauerkrautunterh2513 We were in a similar situation - a bit more in super, but less in property value - and made the decision to downsize the house and use the downsizer allowance ($300,000 each) plus the advanced payment of up to 3 years’ non-concessional contributions (currently up to $360,000 per person this year I think). So as a couple you could add $1,320,000 to your super fund if you sold the $4m property and bought something for about $2.5m. Your wife can start an income stream tax free from the super in 7 years time, and you could probably do a transition to retirement pension or just stop work early. Your super pot could be around the $2 million mark by that time.
You're going over the 4% rule so you would run out of the nest egg. Not a good idea unless you want to leave nothing to your family
Yeah, the family gets nothing.
@Dutchman-mj5of or you actually contribute to it urself and can live off 4% while keeping it and also leaving it to your family but okay
Got no option in Oz. Minimum withdrawal above 4% is compulsory once you hit 65
@@paulchilvers5032 seriously? That's stupid it's your money why would you be forced to waste it?
@@nathansmith5726 because Superannuation is not intended as a means of leaving an inheritance
I can get the same numbers with 750000 and last til 91
Now do it for $500,000 to compare……
I'm early 50+ , retired in Asia. Australia now an absolute rip off for everything. You're welcome.
IF YOU CANT RETIRE ON A MILLION AND OWN YOUR HOUSE YOUR STRAIGHT OUT GREEDY
Just stay on The Dole all Your Life so infact You are Retired at Birth.If You need any more financial advice just ask.
Strokes are hard.
Your parents must be so proud.
$1M AUD will last me 80 years in Vietnam, Thailand or Cambodia. I’m only 20 and I could retire now to those countries. I inherited my parents house valued at $1.4M
@@dadonweIfare I met a lot of guys who did that and they came back broke.
Problem is i had trouble with centrelink claiming the dole when i was 14 days old.
They said "come back later".
people really don't need a financial planner, they pay people like this guy when you just need some basic math skill, which people should have.
be smart not dumb
You're right! You can also build your own home with your bare hands.
Is your full name Christopher? If yes, can I call you Christopher? If no, can I still call you Christopher?
Haha, yes it is. I guess so!
Single guy just enough but 1.5 mill better
Enjoy!
I retired outside of Aus at 50 for less than that
good work!
No.
I'm 48 but should be just a few years off retirement. I have a solid, positively geared property portfolio and SMSF but I'm struggling to find a financial adviser who properly understands real estate. While I'm outside of your select age group, are you able to offer an initial review or direct me to someone who could work with me ?
Richard Head is very good and Sydney based.
First 1/3 is the hardest. Then there will be what I call singularity point at which super will make you same amount of money as your contrubutions. And from there very quickly it salary contributions have almost no effect. By the time you get to 400-600k it is good idea to be investment eductated. Investing in blue chips or blue chip ETF's that earn dividends and you can write options over is boosting ordinary SP500 up. But with downside risk management strategy.
@@hdmccart6735
He blows!
No, it's not enough
I'm almost 59, no way will i ever have 1M$ saved by then... single/own house and got just over 100K in banks and 250K in super, guess i'll have to work till i drop dead.
Or you can downsize and use that money for retirement!
Yeah, that’s a worry.
You will be eligible for the Government Pension on top. Currently that is $26,535 per year. Over 25 years that is worth $663, 375. That is the base rate, you may also be eligible for additional funds. You will also get the Pension Healthcare card which reduces all sorts of bills ( 50% off car rego for example)
Don't despair, get educated and ignore the naysaying boasters on here.
Prepare for a lot of people getting sniffy with me about the government pension, but the reality is most Australians still rely on that top up to make that million, and it's ok. Life is not the fantasy world a lot of the commentators on here pretend it is. They forget that in the real world career breaks, marriage breakdown, retrenchment, singledom, sickness and accidents can all impact, or significantly alter the trajectory of their lives.
Excellent reply, thank you!
@@triarb5790That's a great point to make about the age pension being equivilant to abt $660,000 of super.