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| Thread ID: 66172 | 2006-02-13 21:32:00 | Retirement planning - boring but necessary! | Tony (4941) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 430096 | 2006-02-14 08:22:00 | You can consume some of your house,if you own it,via a reverse mortgage. I have have looked at it,the longer you can leave it the better,10%compounding soon eats through it.I've been looking at it too - it seems like last resort stuff to me. |
Tony (4941) | ||
| 430097 | 2006-02-14 17:27:00 | I've been looking at it too - it seems like last resort stuff to me. Only if you want to leave it intact to someone.Otherwise why not consume a bit of your capitol.? |
Cicero (40) | ||
| 430098 | 2006-02-14 19:06:00 | Only if you want to leave it intact to someone.Otherwise why not consume a bit of your capitol.?Dead right - my issue with it (after a quick look) is that it looks quite expensive to set up and run. | Tony (4941) | ||
| 430099 | 2006-02-14 19:30:00 | Preferably by being shot by a jealous lover! :D That is interesting. Is that because you are spending what is available, or is that what you find necessary to survive? Have converted some of my assets in that time ie shares BUT the current value of my assets, (does not include the house) has more than kept pace with the draw down. The difficult part when you get older, in retirement is to guage the balance between interest bearing iassets and share growth. In the theory you should reduce your rissk in shares etc the older you get |
bonzo29 (2348) | ||
| 430100 | 2006-02-14 19:31:00 | Dead right - my issue with it (after a quick look) is that it looks quite expensive to set up and run. The interest on loan is about 10%,which is a premium for the fact they don't get it back till have carked.If perchance you owe more at the end,than your house is worth,they carry that. |
Cicero (40) | ||
| 430101 | 2006-02-16 22:58:00 | We have still got 20+ years to go. Our Target is to have $500,000 in assets (not including the house). This will give us about $30-40,000 p.a. initially.($20-$30,000 interest and $10,000 drawdown). What you need to remember is in the initial years your spending will be quite high, then in the later years it would be half what you started off spending due to increasing age related disorders, reducing your lifestyle options. And if we have a pension then it will be a bonus. | KiwiTT_NZ (233) | ||
| 430102 | 2006-02-16 23:08:00 | What you need to remember is in the initial years your spending will be quite high, then in the later years it would be half what you started off spending due to increasing age related disorders, reducing your lifestyle options.That appears to be likely on the surface, but of course your reduced spending on lifestyle stuff could well be offset by increased spending on healthcare-related stuff. | Tony (4941) | ||
| 430103 | 2006-02-17 00:33:00 | That appears to be likely on the surface, but of course your reduced spending on lifestyle stuff could well be offset by increased spending on healthcare-related stuff. That could be the case for some. On the other hand we find we are spending more on healthcare related stuff to MAINTAIN the lifestyle stuff we are used to!!! Hence our overall expenses are increasing but are manageable |
bonzo29 (2348) | ||
| 430104 | 2006-02-17 00:58:00 | There is no simple one-size-fits-all answer to the question of retirement savings. Real estate, insurance salesmen, and financial planners will breathlessly say you need $50,000/year taxfree. Balderdash. Yes, some people would need/want that but most won't achieve it. The best advice I can give is to start early, for two reasons. It forms a savings habit, and compounding works very well over time. Once you've repaid the mortgage, start saving the same amount in an investment fund. Be aware that there are many funds and few consistant winners. In fact I cannot think of a fund to recommend. Instead something like the Mozzy share would be better but wait until the Australian stockmarket takes a dive. Also do not put all of your eggs in one basket. Use different investments to spread the risk. |
Winston001 (3612) | ||
| 430105 | 2006-02-17 02:09:00 | snip Can anyone point me to anything that could help in this regard? Hi Tony You may like to troll through the website for the Retirement Commissioner: http://www.retirement.org.nz/ They cross reference to another website www.sorted.org.nz which has a section that is designed to help you calculate your retirement savings. I haven't had time to go through those sites properly (they are both misbehaving for me at the moment as well), but you may find some assistance there. If you can't get assistance from the Retirement Commissioner's office, where else are you likely to get it! Well, there is also some assistance perhaps on the Consumer Institute website www.consumer.org.nz They have a retirement savings calculator, how much to save etc, which could assist. Also an advice section. You have to have a subscription to Consumer Inst to access all info. I thought they had something there about reverse mortgages, but I have not been able to find it. Cheers (John - soon to be in the same boat) |
John H (8) | ||
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