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Sunday, 13 June 2021
Recently trending Super changes, the Budget and 2021 versus 2022Noel's share winners and loser plus budget reality checkGrantham interview on the coming day of reckoningWhoyagonnacall? 10 unspoken risks buying off-the-planBuffett says stock picking is too hard for most investors
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There are many items in the 'too hard basket' for super. Remember the proposed Retirement Income Covenant? It required trustees to develop an appropriate strategy for members, and it's time to progress with it.
The 4% withdrawal rate in retirement is an industry standard, a level where a retiree could be confident of not running out of money. Its creator Bill Bengen explains its use in this interview with Michael Kitces.
It's often overlooked how wealthier couples can fall back on the age pension if a market loss hits their portfolio. The reassurance is never greater than in a financial (and now epidemic) crisis.
Retirees with between $300,000 and $800,000 in assets face complex questions on the interplay between how to spend their money, the age pension assets test, the taper rate and their longevity.
A study of actual spending habits shows retirees have a faster-than-expected drop-off in spending in later years, casting doubts on financial plans that assume increasing expenditure over time.
Antarctica is on many bucket lists, but planning for enough money in retirement should start decades earlier. Setting goals and seeking advice can elevate a comfortable retirement to a great one.
Many retirees simply drawdown the minimum amount allowed under the pension rules. While their money may last longer than using other strategies, is a frugal lifestyle the best way to live in later years?
The retirement review must consider the wide range of circumstances facing retirees. We cannot assume that everyone is a home owner, is single, will retire at the pension age and will live to 92.
Grattan has released a response to the above Mercer critique, with this short summary of their position and the longer paper attached. The coming retirement review will need to cope with such diversity of opinions.
There are many unanswered questions about why retirees spend so little in retirement, but perhaps it is a form of insurance against longevity risk.
Analysis of the retirement expectations and spending habits of over 300,000 retirees is a valuable tool to make plans more specific, including both super and non-super wealth sources.
Lower spending strategies and the right investment options are crucial to giving superannuation members the best chance of making their super last for an average 25 year retirement.
Josh Frydenberg's third budget contained changes to superannuation and other rules but their effective date is expected to be 1 July 2022. Take care not to confuse them with changes due on 1 July 2021.
Among the share success stories is a poor personal experience as Telstra's service needs improving. Plus why the new budget announcements on downsizing and buying a home don't deserve the super hype.
Jeremy Grantham has seen it all before, with bubbles every 15 years or so. The higher you go, the longer and greater the fall. You can have a high-priced asset or a high-yielding asset, but not both at the same time.
All new apartment buildings have defects, and inexperienced owners assume someone else will fix them. But developers and builders will not volunteer to spend time and money unless someone fights them. Part 1
Warren Buffett explained why he believes most investors should not pick stocks but simply own an S&P 500 index fund. "There's a lot more to picking stocks than figuring out what’s going to be a wonderful industry."
The global recession came quickly and deeply but it has given way to a strong rebound. What are the lessons for investors, how should a portfolio change and what role will inflation play?