Comments on: How to Boost Your Retirement Income

By: eek

eek — Fri, 17 Jul 2009 05:44:03 +0000

"the current system effectively prevents you from using this money the way you see fit. It denies you control of your own property, presumably because you are too stupid to look out for your own interests"

Unfortunately this is true for 95% of the population, and with no chance of tax-payer funded pensions in the future there is no real viable alternative.

By: rag

rag — Fri, 17 Jul 2009 03:45:17 +0000

A question I have in the lively debate of required asset classes is to invest in - what will happen to the equity premium we require to punt the stockmarket as opposed to fixed income [cash], housing etc moving forward as opposed to historic = that is the return required above inflation on average af te the GFC has changes the investment rules we have for so long assumed

housing is supposed to return 2-3% on average above inflation - on an after tax return is this enough to generate some future wealth = as I think long term analysis on housing as an asset class after costs etc shows you only make inflation, same for fixed interest and cash ....so what are the alternative to equities - foreign exchange

By: dermot

dermot — Thu, 16 Jul 2009 15:07:13 +0000

You say 'One way to NOT build wealth is to borrow' I disagree with you, provided you borrow at say 10-15 years fix rates and buy residential property you WILL build wealth. And that's even without any of the tax incentives the government is throwing around these days. All that stimulus money will eventually come back to bite us in the arse by the way of inflation. The more you can borrow at fix rate to invest in solid assets benefiting from strong inflation like property, land and defensive blue chip stocks like WOW ('cause everybody has to eat) the more wealth you WILL build from brorrowing.

By: Don

Don — Thu, 16 Jul 2009 12:57:30 +0000

I don't think the government is that concerned with bonds auctions. Just jack up the "contribution" rate to 12% then make bonds a compulsory holding of super funds. Problem solved - unpleasantly but solved all the same.

By: Cyber Cynic

Cyber Cynic — Thu, 16 Jul 2009 08:38:32 +0000

Great.... Super from 9% to 12%. That just means more of our income will be controlled for years. All because the government thinks I'm too stupid to manage my money. Maybe I won't spend or invest my money in the way they see fit.... How about letting us make decisions for ourselves? Oh, that's right we don't live in that world do we.... Government knows best. Ha!