Budget and Super

Originally posted by pintohoo ↑

hi picastoc,

I certainly agree with a lot of your post.

I would say a couple of things though that I feel at this stage that I want to cover before I get there.

I am a long way off 80 but, I do observe several things from older friends - some who are fit and some who are not.

Travel - many older one's I know still travel - and, I would say one thing is pretty much certain - when you get older - you want - need really, to travel in MORE comfort, not less -------- so, the costs can actually rise, not fall.

Ditto with some things around the home - if one chooses to stay in a house - as opposed to an apartment - then, at some stage ------- help is a very good idea ------ and, help requires payment - hence, all those things like lawns, gardens (at least the heavy stuff), painting, repairs - you name it - if you were used to doing them yourself at 60 well, at 80, you are probably going to pay someone to do it.
More expense.
The car is similar - I can well imagine the day if one is wealthy enough - to not drive yourself and have a driver - why not?
That one, however, is probably only very short term anyway - as within a decade we will probably all have our own drivers - the car itself.

Some of these types of things fit into the $50k - from a 1 million base fund - and others would begin to look more like requiring a 2 million base.

Either way - your idea on growth I believe is crucial - unlike most super sites I visit which tell me - such and such dollars should last you such and such years ---------------- I always think -- hmmm, what the hell then?

Anyway - hope this makes some sense - I just had a long technical phone call in the middle of it and lost most of my train of thought.

have a good one

Pinto

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No, your post makes a lot of sense. I don't know whether you reason as I do but it goes against everything you've been working for to be told, oh all is fine, just let your capital continue to grow for x no. of years, and then it can be used up as you age. I have always wanted to be able to retain my capital and live off some of the earnings while, at the same time, watching my capital keep up at least with the CPI. I simply don't fancy see my capital begin to dwindle and then decline ever more quickly as I grow ever older. Enough to worry about I'd reckon without adding the concern that I may have to hurry up and die otherwise I won't have enough for a burial!!!! lol

As I have argued though is the growth should be over and above just the CPI, otherwise relative to wage-earners then you will be having a lower standard of living over time. Can't see why I should be expected to do that really. I want the options which a reasonable amount of capital can provide for me, not an ever dwindling one.

As a female, I've always had some gardening assistance like mowing the lawn and some general garden duties. Anything between $10 to $38 per hour, depending on who I use. There are always retirees who will undertake such jobs without charging very much. Maybe I don't miss anything from my days of working and happy with what I have. Depends on past spending patterns I guess. I do appreciate my Education Dept. pension though because it is now tax free and not means tested. Useful to pay down those bills which come into every household. I was far more aware of money when I was working than I am today because I believe I have plenty. I hold 1/3rd as cash though, and the rest is predominantly blue chip type shares. I don't intend to sell down any of those shares as they provide me with the dividends I need. Another third is in the super environment and the remaining 1/3rd are in shares in my own name. I pay some tax, as a consequence of that decision, but hate the way govt. changes things so one can't plan effectively, so prefer things this way. 10 years ago I upgraded my home, which was an excellent decision as I have the benefit of living in a lovely home and the price of it has easily doubled. This has protected more of my capital by doing this as well. Win-win for me. I could live in a more modest home if need be and pocket the difference, but, for now I am happy. That's my story, anyway.