tab Sucker Moderating Team 32,303 Member For: 20y 8m 22d Gender: Male Location: Brisbane Posted 05/10/14 01:45 AM Share Posted 05/10/14 01:45 AM No, he's saying the 9.5% contribution is not enough. Which is feathering his own nest. http://www.businessspectator.com.au/article/2014/9/8/financial-markets/super-its-returns-stupid Might require subscription, if so the guts of it... A young worker starting out now at 25 on a salary of $50,000 and having 9.5 per cent per month deducted for super, is saving $336.48 a month after contributions tax of 15 per cent. The average super fund return over the ten years to 2013 was 6 per cent a year, according to APRA. If that performance continued for 40 years, until our 25-year-old retired at 65, she or he would end up with $670,000, which by then would probably have to last another 40 years ‘til she or he died at 105. It’s simply nowhere near enough, either for the retiree or for the government looking to get people off the aged pension. Raise the contribution rate to 12 per cent of salary, or $425 per month, and the retirement sum from the average super fund becomes $846,000 -- still not enough to get off the pension or to live very well. However, raise the compound annual return by 2.5 per cent, to 8.5 per cent, instead of increasing the contribution by the same percentage, and the retirement sum becomes $1.35 million -- double the original number. or Anyway, let’s pick a listed investment company at random that only invests in shares and does not “hug” the index -- Wilson Asset Management. Its annual performance since inception 15 years ago has been 18 per cent. If our $50,000 a year worker saving 9.5 per cent of salary for 40 years were to get 18 per cent per annum return over 40 years, then the retirement lump sum would be $28.46 million. Now isn't that a better solution?? 1 Link to comment Share on other sites More sharing options...
Mrs Jeturbo Bob the Freaking Builder Donating Members 10,813 Member For: 15y 4m 3d Gender: Female Location: SA Posted 05/10/14 01:55 AM Share Posted 05/10/14 01:55 AM Very interesting... As someone who is currently about to do something pretty noticeable with their super atm I find things like this fascinating Link to comment Share on other sites More sharing options...
"Captain Retard" Member 1,417 Member For: 10y 8m 14d Gender: Male Location: Shellharbour NSW Posted 05/10/14 02:01 AM Share Posted 05/10/14 02:01 AM (edited) Ummmmm , I might be misunderstanding you but those quotes above are almost word for word what Alan says in the vid.Anyway I totally agree with the above quotes except I would be a bit nervous about putting all my eggs in one basket. Edited 05/10/14 02:01 AM by "Captain Retard" Link to comment Share on other sites More sharing options...
"Captain Retard" Member 1,417 Member For: 10y 8m 14d Gender: Male Location: Shellharbour NSW Posted 05/10/14 02:04 AM Share Posted 05/10/14 02:04 AM Very interesting... As someone who is currently about to do something pretty noticeable with their super atm I find things like this fascinatingThe funny thing about Economics I've found is that the more I learn the more I realise I and most speculators have no idea.But interesting non the less! Link to comment Share on other sites More sharing options...
tab Sucker Moderating Team 32,303 Member For: 20y 8m 22d Gender: Male Location: Brisbane Posted 05/10/14 02:05 AM Share Posted 05/10/14 02:05 AM Ahh sorry mate the vid didn't load on that news.com article so I was just referring to the text - the head of a super fund saying he needs more contributions. 1 Link to comment Share on other sites More sharing options...
BenDoCo I'm getten too old for this s**t Bronze Donating Members 4,509 Member For: 11y 9m 9d Gender: Male Location: A big bridge over a river in South Australia Posted 05/10/14 02:17 AM Share Posted 05/10/14 02:17 AM (edited) I find it amazing how --- the ONLY time you hear the name AMP (over the last 20 years) is when they realize that they're not going as well as they expect.I honestly thought that .. up until this current (very short lived) tv campaign .. they had been bought out or taken over by a bigger company. Edited 05/10/14 02:18 AM by BenDoCo Link to comment Share on other sites More sharing options...
Rab WOT? Moderating Team 10,981 Member For: 11y 10m 22d Gender: Male Location: Frankston, 3199 Posted 05/10/14 02:21 AM Share Posted 05/10/14 02:21 AM AXA? Link to comment Share on other sites More sharing options...
Kimberley Scott www.australianflag.org.au Donating Members 6,763 Member For: 19y 5m 30d Gender: Male Location: Brisbane Posted 05/10/14 03:08 AM Share Posted 05/10/14 03:08 AM At the beach. Forgot how great this is. 1 Link to comment Share on other sites More sharing options...
Mrs Jeturbo Bob the Freaking Builder Donating Members 10,813 Member For: 15y 4m 3d Gender: Female Location: SA Posted 05/10/14 03:10 AM Share Posted 05/10/14 03:10 AM The funny thing about Economics I've found is that the more I learn the more I realise I and most speculators have no idea.But interesting non the less!I'm slowly learning .... Jet and I have put quite a few measures in place lately to ensure a hopefully smooth retirement plan. And we're still communicating with out broker almost on a daily basis and still doing bits and pieces constantly .... By the end of next year our super will hopefully be being used for the lowest risk and very high returns. That's the plan anyway lol 1 Link to comment Share on other sites More sharing options...
Kimberley Scott www.australianflag.org.au Donating Members 6,763 Member For: 19y 5m 30d Gender: Male Location: Brisbane Posted 05/10/14 03:28 AM Share Posted 05/10/14 03:28 AM (edited) Surf life savers just announced that there is an unconfirmed sighting of a sea creature. Wonder what that means. Edited 05/10/14 03:29 AM by Kimberley Scott Link to comment Share on other sites More sharing options...
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