Superannuation Discussion + market volatility

Only if born before 30 June 1964…

Secondly
While the long term average is 7ish%

in private super as I understand it, you carry the investment risk in accumulation phase and I had thought so in pension phase but I could be wrong (unlike govt employees who don’t)

This is NOT Financial advice
Yes I know. Definitely before 30 June 1964 as I'm 60 already.

Super was always going to be a risk for non government super funds. Super should never have been privatised along with many other things.
 
Only if born before 30 June 1964…

Secondly
While the long term average is 7ish%

in private super as I understand it, you carry the investment risk in accumulation phase and I had thought so in pension phase but I could be wrong (unlike govt employees who don’t)

This is NOT Financial advice
I am a govt employee, and my super will be subject to market forces in pension phase.
 
Fortunately, the way the system works, those of us with a healthy super balance when we retire will most likely cark it with more because we were cautious and didn’t want to run out.

Aaahhh - longevity risk and generational transfer - the great unthought out consequences of the great superannuation push that puts the fear of God into most retirees...

But your kids will love you - even if they do quietly say "Why didn't mum and dad take more trips and fly first class?"
 
Aaahhh - longevity risk and generational transfer - the great unthought out consequences of the great superannuation push that puts the fear of God into most retirees...

But your kids will love you - even if they do quietly say "Why didn't mum and dad take more trips and fly first class?"
Except there are plenty of Boomers selling the family home (aka inheritance) and buying a campervan. The great reset is a thing.

Meanwhile, those with no kids and “you can’t take it with you”, why wouldn’t you fly J while you can?
 
Meanwhile, those with no kids and “you can’t take it with you”, why wouldn’t you fly J while you can?

Generally speaking, I suspect that the vast majority of Boomers, perhaps unlike Gen X and beyond, have kids and 'the leaving something for the kids' still figures in the mindset of many.

Mind you, I'm a Boomer who has kids and it doesn't figure in my mindset - and I do prefer F if I can hike it from J. And they know and respect it (they have no option)...😜

But I do think that longevity risk trumps all other considerations for most people on moderate super balances, and is what can lead to overly cautious expenditure on 'good life' things at a time while they are still capable of having a 'good life'. A tricky navigation exercise...
 
No fear of me burning the cash on F and “Givin while Livin”

The tax savings are huge !
As well as the govt refusal to provide age pensions to all nor seniors health care cards for that matter - some will be paying through the nose for pharmaceuticals- my mother got anti-virals for $6 retails at $1,000
But aged care annual & lifetime (around $75,000) caps for all manage the overall costs - that’s far cheaper than paying income tax for 20 plus years

So offloading $ to the kids while alive rather than it getting swallowed up in Refundable Accommodation Payments….

House deposits $ for $ match
Holiday cash (capped at lowest discounted Qantas F revenue fare currently $13,501)
Effort for reward
 
No fear of me burning the cash on F and “Givin while Livin”

The tax savings are huge !
As well as the govt refusal to provide age pensions to all nor seniors health care cards for that matter - some will be paying through the nose for pharmaceuticals- my mother got anti-virals for $6 retails at $1,000
But aged care annual & lifetime (around $75,000) caps for all manage the overall costs - that’s far cheaper than paying income tax for 20 plus years

So offloading $ to the kids while alive rather than it getting swallowed up in Refundable Accommodation Payments….

House deposits $ for $ match
Holiday cash (capped at lowest discounted Qantas F revenue fare currently $13,501)
Effort for reward
Certainly giving (excess) while alive rather than after death makes sense on many levels (as proposed in the book "Die With Zero", a good read), but I know some think that they should keep aside an extra $½M-$1M for aged care RAD.

Are you saying that the "...aged care annual & lifetime (around $75,000) caps" covers the monthly extra payment in lieu of the RAD? If so then there is only a need to keep aside $75K for the same benefit (wine with dinner)?
 
My "vision" in the generational transfer game is to benefit the grandkids more than the parents.
The parents have already made the best of their generous start in life but the grandies may live in a very different world.
I am flying J and driving an eight year old car for them…..
 
Certainly giving (excess) while alive rather than after death makes sense on many levels (as proposed in the book "Die With Zero", a good read), but I know some think that they should keep aside an extra $½M-$1M for aged care RAD.

Are you saying that the "...aged care annual & lifetime (around $75,000) caps" covers the monthly extra payment in lieu of the RAD? If so then there is only a need to keep aside $75K for the same benefit (wine with dinner)?
Some might prefer not to go LCC for an aged-care facility, though my experience is that kindly cabin crew are more important than the hard product
 
Certainly giving (excess) while alive rather than after death makes sense on many levels (as proposed in the book "Die With Zero", a good read), but I know some think that they should keep aside an extra $½M-$1M for aged care RAD.

Are you saying that the "...aged care annual & lifetime (around $75,000) caps" covers the monthly extra payment in lieu of the RAD? If so then there is only a need to keep aside $75K for the same benefit (wine with dinner)?


You’re right
There’s 2 fees in home care packages

And 3 fees at the nursing home
The DAP can be expensive in lieu of the RAD

Cashflow in these instances is terrible
Best arrangement I heard of was pay half the RAD then use it to pay the DAP so by the end of life the residual will be repaid

The whole process made me wonder why bother. If you are on full age pension the government pays your care fees and accommodation in full. If not, it can be $2,000 per week or more (but the caps at least prune that back each year and after 2.5 years should one live that long in the aged care residence
 
I should have stopped working a long time ago but as it turns out I need to continue working for today not for the future.

Everyone has different thoughts.
With regards to having enough for retirement I'm planning on having adequate super as an income until I'm 75-78 years old. I figure that I can still travel to Thailand and drink and play golf and enjoy life. I have no plans on travelling anywhere else except maybe some longer cruises when time permits.

After that I do not really care. I'm certainly not working my butt off to make sure there's enough for Health care or even aged care past a certain point. Government can take care of me just like it takes care of those that don't have anything today.

I have private Health Insurance and cannot see why this cannot continue. There may even be enough to upgrade to better cover than what I have now. I will also continue to use hospital outpatient services and stay away from private specialists. The medicine for my autoimmune disease is covered by PBS.

My daughter is extremely lucky. She does not have to suffer working like I did most of my life. She can enjoy life but my brother and I really need to set-up something for her so that she cannot dispose of assets until she's at least 35 years old. Don't want some gold digger ruining her life.
 
My daughter is extremely lucky. She does not have to suffer working like I did most of my life. She can enjoy life but my brother and I really need to set-up something for her so that she cannot dispose of assets until she's at least 35 years old. Don't want some gold digger ruining her life.
Thats was good lawyers are for
 
I should have stopped working a long time ago but as it turns out I need to continue working for today not for the future.

Everyone has different thoughts.
With regards to having enough for retirement I'm planning on having adequate super as an income until I'm 75-78 years old. I figure that I can still travel to Thailand and drink and play golf and enjoy life. I have no plans on travelling anywhere else except maybe some longer cruises when time permits.

After that I do not really care. I'm certainly not working my butt off to make sure there's enough for Health care or even aged care past a certain point. Government can take care of me just like it takes care of those that don't have anything today.

I have private Health Insurance and cannot see why this cannot continue. There may even be enough to upgrade to better cover than what I have now. I will also continue to use hospital outpatient services and stay away from private specialists. The medicine for my autoimmune disease is covered by PBS.

My daughter is extremely lucky. She does not have to suffer working like I did most of my life. She can enjoy life but my brother and I really need to set-up something for her so that she cannot dispose of assets until she's at least 35 years old. Don't want some gold digger ruining her life.
Please look into testamentary trusts and section 102AG (2)(a) ITAA 1936
A good tax effective strategy for distributing estate income to minors
 
Please look into testamentary trusts and section 102AG (2)(a) ITAA 1936
A good tax effective strategy for distributing estate income to minors
But also consider the psychology of being a "trust fund kid". I know of cases where they didn't bother doing any tertiary education, have no resilience, etc.
 
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But also consider the psychology of being a "trust fund kid". I know of cases where they didn't bother doing any tertiary education, have no resilience, etc.
There are ways around that though...shall, upon attaining the age of 25 / 30 years be entitled...
 
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