Concerns regarding the ability to retire comfortably after age 65

[StatGuy2000]

Well, this thread certainly has expanded far beyond my original question about investment strategies!

For the moment, my focus is on building my savings. Thank you all for the advice.

 

[Vanadium 50]

For the moment, my focus is on building my savings.

That's the important thing anyway. There's no point in discussing what to do with what you didn't save.

 

[bhobba]

That's the important thing anyway. There's no point in discussing what to do with what you didn't save.

Very true. Here in Australia we have compulsory superannuation of at least 8% (there is a push for it to be 12% which I think would be better) of your wage must go into it - of course you can put more in, and some employers are kind enough to match the extra dollar for dollar. If you work for the government its a whopping 16% - that's one reason government jobs pay less. We have discussed getting financial advice in this thread. The ASX (the Australian Stock Exchange) and other bodies not associated with the Financial Planning Association, who obviously will say get it from the start, have looked at it and its not really a paying proposition until you have at least $200,000 - some say as high as $500,000. Before that just leave it in a low fee fund according to your risk profile - they usually come in 3 types - conservative, balanced and growth. To start out (ie in your 20's so you will not retire for years) its only logical to go for growth. Then as you head to for the bigger amounts get the advice which can include things like setting up your own super fund. It's wise to remember starting work in your early 20's by the time you retire at 65 you will likely be a multimillionaire - although I would be looking to like me retire at more like 50-55 - so putting 16% like government workers do is a good idea. Reaching that figure where seeking professional advice will probably occur sometime in your 30's.

Thanks
Bill

 

[bhobba]

Just out of curiosity I did manage to locate a firm here in Australia that has actuaries who are also qualified financial planners. They produced a paper describing there process:
https://www.berryplan.com.au/images/stories/file/markiaa2009.pdf

Yikes - this is more detailed than other financial planning books/papers I have read. I always take more seriously papers like this that have been peer reviewed. Also like me the author believes: 'Consideration could be given to the development of a specialized financial planning course for actuaries which would be recognized by both ASIC and the Australian Taxation Office.'. At the moment you have to get something like Certified Financial Planner Qualification which takes 5 years experience and pass 5 subjects.

Thanks
Bill

 

[bhobba]

The following interesting discussion about T-Bill's is also of relevance:
https://www.physicsforums.com/threads/most-stocks-under-perform-t-bills.969802/
Thanks
Bill

 

[Michael Price]

In the news:
https://www.abc.net.au/news/2019-09-06/heres-how-to-semi-retire-in-your-30s/10311360

 

[DEvens]

My best investment move was to buy my house near the bottom in 2008. The house market has done quite well since. If I could only predict when such a thing might happen again, but I cannot.

 

[jdavis417]

There is enough.