As we age, hold more shares?

[Knobby22]

I was commenting on all the taxes and wasteful ways that the lazy governments have in place and like to change the goal posts.

“With a transition to retirement (TTR) income stream, you can access your super while working. To get one of these pensions, you must have reached your preservation age (between 55 and 60)”​

Yea, that's a baby boomer perk. Can't touch it till your 60. Not sure it is very useful.

 

[Belli]

Yea, that's a baby boomer perk. Can't touch it till your 60. Not sure it is very useful.

Time to let go of that baby boomer. The youngest baby boomer (1946-1964 group) is now 60 years old so the 55 to 59 doesn't apply.

 

[Belli]

Haha. Just realised it's now appropriate to call it a Gen X (1965-1980) perk!

 

[Knobby22]

Haha. Just realised it's now appropriate to call it a Gen X (1965-1980) perk!

And the 55-59 doesn't apply to Gen X. Shafted again.

 

[Dona Ferentes]

relevant to the thread .. yes. !! (curated from Mottled Fool)

What's the average superannuation balance at age 60?​

So according to the Australian Taxation Office (ATO)'s Taxation Statistics report, which covers the 2021 financial year, the average balance for an Australian aged between 60 and 64 was $361,539. The median figure came in at $183,524.

That figure includes all genders. But when broken down, females had an average balance of $318,203, and a median balance of $158,806. For men, we got an average figure of $402,838 and a median figure of $211,996.

But let's also look at the numbers from the 55-59 age group.

So for these pre-retirees, the average super balance was $277,327. The median balance came in at $158,462.

What do these figures tell us?​

Quite frankly, these figures tell us that there are going to be many Australians around age 60 today who won't be able to fund a comfortable retirement on their own.

.
but if there's a willingness to take on risk, AND ALLOCATE TO SHARES, the higher return will provide a higher balance down the track.

 

[divs4ever]

Quite frankly, these figures tell us that there are going to be many Australians around age 60 today who won't be able to fund a comfortable retirement on their own.

that is the conclusion i came to in 2010 despite having a bigger than the average 'nest-egg ' when in the the 55-59 age group.

 

[StockyGuy]

So I guess all the haters would begrudge me if I just retired and lived off super at 60, then swooped in and grabbed my full aged pension entitlements at 67. It's fair way off for me though - aged pension might just be the overlord CCP's insect protein pellets delivered fortnightly by then.

 

[divs4ever]

So I guess all the haters would begrudge me if I just retired and lived off super at 60, then swooped in and grabbed my full aged pension entitlements at 67. It's fair way off for me though - aged pension might just be the overlord CCP's insect protein pellets delivered fortnightly by then.

that might depend if your working life was mostly as a senior civil servant ( or politician )

besides the current employment bias is towards being ageist ( they prefer freshly-minted uni. graduates )

 

[qldfrog]

And the 55-59 doesn't apply to Gen X. Shafted again.

I am 57 and gen X so no, it is right

 

[So_Cynical]

So am I. So we can't touch it!

Time will pass - i can touch all my super, the system works!!!

 

[rcw1]

I am 57 and gen X so no, it is right

you don't look 57 @qldfrog

rcw1 attempt at humour...

 

[Value Collector]

For me I’ve always been heavy in equities (and IP) . Fortunately With a strong wage income over the years the falls in markets, have not caused me to sell in fear. Now as my 60 years approaches I plan to have about 1-2 years spending in FI, cash or my options trading account leaving about 85% in equities and a paid off PPR. I’ll always keep a high percentage in equities.
However I would disagree with the article suggesting low equity percentages in ones early years.
Load up on equities when you’re young, keep an emergency fund, time in the market, don’t fear the dips, diversity, live within your means, blah blah blah, the usual ….

Yep, the rule shouldn’t be based on age at all really.

the rule should be “if you need the money within 3 years, keep a decent portion of that 3 year needs money as cash”

but if you are 60, you don’t need some of that cash for 20 - 30 years, so that money should be in growth assets, eg equities and property.

and if your investment portfolio is diverse like an index, and throws off dividends, those dividends can count towards your 3 year needs, so you can have less capital in cash.

 

[Value Collector]

And no tax on withdrawals from an accumulation account after age 65 or meeting a condition of release after turning 60.

JohnDe seems a bit confused about super.

No tax on withdrawals, but the earnings inside the super are taxable.

 

[Value Collector]

The flavour of the last few posts is concentrating of superannuation. Broaden it to also consider shares outside of that environment if you're financially able to do so. Do some numbers taking into account the tax-free threshold combined with franking credits. Not all the share income has to be franked either. $15k or $20k of income will most likely cover the majority of your non-discretionary costs such as keeping the roof over your head.

As to the worry about changes to tax law, I'll let you in on a little secret. It always has.

There is no magic sauce to any of this. Essentially spend less than your income, always invest and don't go mad with trying to gear if you are into that. Debt will smash you if you let it get out of hand.

Also, you can consider an “Investment Bond”

basically it’s just an investment account that you can use to own a share index, you can withdrawal from it at any time and pay tax on your earnings at your personal rate.

However, if you hold it for 10 years, and never increase your annual payments into it by more that 25% you won’t owe any personal tax, the tax is limited to the 30% which is paid inside the investment bond itself.

———————————————
it’s a good long term tax structure, not as good as super, but it has the benefit of being able to withdraw your funds earlier.

 

[Belli]

Also, you can consider an “Investment Bond”

basically it’s just an investment account that you can use to own a share index, you can withdrawal from it at any time and pay tax on your earnings at your personal rate.

However, if you hold it for 10 years, and never increase your annual payments into it by more that 25% you won’t owe any personal tax, the tax is limited to the 30% which is paid inside the investment bond itself.

———————————————
it’s a good long term tax structure, not as good as super, but it has the benefit of being able to withdraw your funds earlier.

There is also a benefit regarding estate planning as if you nominate the payment is to go to a beneficiary e.g. your children, it sits outside the Will. Basically, safe from family vultures and the person who you nominate to receive the funds gets them.

• The beneficiaries will receive the proceeds of the investment tax free. This is irrespective of whether the investment bond has been held for less than 10 years or not
• Proceeds pass outside of your will and legal estate avoiding possible challenges and claims
• There are no delays associated with the granting of probate or the administration of your estate.

So up yours dissolute and parasitic Bro in law Joe. You ain't getting any more from me just because I helped her and love my sister despite her marrying you.*

*Imagined scenario.

 

[Knobby22]

So up yours dissolute and parasitic Bro in law Joe. You ain't getting any more from me just because I helped her and love my sister despite her marrying you.*

*Imagined scenario.

(His real name is Richard)

 

[Belli]

(His real name is Richard)

Surname being Cranium?

 

[Belli]

and if your investment portfolio is diverse like an index, and throws off dividends, those dividends can count towards your 3 year needs, so you can have less capital in cash.

While largely true never discount the Sleep Soundly At Night factor. For a number of people that is of high importance. Not logical but it plays a part.

I shall wrestle with that dilemma when Vanguard distributions are made next month. As you have said in another thread: A nice problem to have.

 

[Value Collector]

While largely true never discount the Sleep Soundly At Night factor. For a number of people that is of high importance. Not logical but it plays a part.

I shall wrestle with that dilemma when Vanguard distributions are made next month. As you have said in another thread: A nice problem to have.

Inflation gnawing away at my capital base keeps me awake at night , volatility I can handle it comes and goes, but the steady drain of inflation is permanent damage.

 

[divs4ever]

Inflation gnawing away at my capital base keeps me awake at night , volatility I can handle it comes and goes, but the steady drain of inflation is permanent damage.

yes getting a positive return after real inflation , can be very challenging , a term deposit rarely does it nor does a Treasury Bond , you can be lucky sometimes and do it with ( some ) corporate bonds