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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
430126	2006-02-23 03:45:00	I've developed a spreadsheet that models some of the stuff we have discussed here. Since so many people have been interested and helpful, I'm happy to make it available. Is there somewhere I can post it? Alternatively, PM me with your email address and I'll send it to you. Any comments on the model - assumptions, calcs, Excel methodology will be gratefully received.	Tony (4941)
430127	2006-02-23 03:58:00	question............. talking about retiring..... you may have talked about this previously.... I need to reread thread as i found lots of this interesting...but some of it beyound me...:( But is it better to be debt free first or save for retirement while having a morgage? I have years to do both i spose, but the idea of having say $30 - 50 thou a year to spend when retired means i should have started the minute i was born??? hhhhmmmm beetle	beetle (243)
430128	2006-02-23 04:13:00	The best advice for most people is to pay off your debt as fast as possible. Some people are able to make debt work for them by obtaining tax deductions. For them, keeping a mortgage makes sense.	Winston001 (3612)
430129	2006-02-23 04:16:00	What you need is a very rich guy, beetle. You only have to keep him a few years, then take half. :D Rod Stewart might be available. He seems to be able to afford to trade in his wives frequently.	Graham L (2)
430130	2006-02-23 04:17:00	But is it better to be debt free first or save for retirement while having a morgage?As someone who paid off the mortgage in 5 years and have superannuation plans I can offer some advice. Firstly, You should be in the habit of putting a little bit aside on a regular basis for the future, both short-term and long-term. - Short Term - Goal: At least 3 months net income savings - Long Term - Superannuation Account created locking in savings until 55. Start with a small amount say $50 per month (you can increase it later) It will compound over time. Secondly, Clear the mortgage as quickly as possible, by giving up almost all the things you like. (I didn't replace my computer for 6 years) Reduce to almost Nil any overseas holidays over the term. Eat out much less or not at all. Thirdly, once the mortgage is gone, review your funds status. You should aim to have funds that allow for at 40-50% of your gross income in interest and principal drawdowns. Base your plans' on todays interest rates and not what you think they might be, because this is what you know. If you are under 30, do not expect too much help from the Government. (There is even talk of extending the retirement age to 85 by 2050 in some countries). Set your own retirement age and aim for that.	KiwiTT_NZ (233)
430131	2006-02-23 04:24:00	I think one other thing to do if at all possible is to start early! Paying off the mortgage has to be top priority, but even if you can only save a little, the power of compound interest can turn that into a lot in 30 years. For instance $5000 compounding at 5% becomes $21600 in 30 years (if I have the formula right :) ).	Tony (4941)
430132	2006-02-23 04:26:00	LOL Mr rich guy eh??? Well currently have no morgage . . . . and have half . . . haha but in saying that i also have no house of my own . . . . . . . . so out with the old and in with the new ya reckon???? but i have something like 30 - 40+ yrs to save . . . . . . . . and spend . . . . and find next mr rich guy . what does he look like? income being next to nothing at this point means saving is not happening . . . . . its a worry, but maybe i wont be around by then to worry about it . . . . . . . . . :waughh: beetle	beetle (243)
430133	2006-02-23 04:50:00	but i have something like 30 - 40+ yrs to save........ income being next to nothing at this point means saving is not happening..... But remember what I said about time and compound interest. If (and it is a big if) I have the calcs right, even $100 a year for 30 years @ 4% = $5900.	Tony (4941)
430134	2006-02-23 04:50:00	The best advice for most people is to pay off your debt as fast as possible. That is funny advice from a lawyer Winston! When I took out my first mortgage several centuries ago, our solicitor asked if we wanted a table or flat mortgage. Given my upbringing I looked at him as though he had dog doo on his shoes, and said with outrage "Why, a table mortgage of course". I was struggling with the guilt of being in debt. He laughed gaily and said "People like me make money out of people like you!" and toddled off in peals of laughter. I remained shocked for some decades...	John H (8)
430135	2006-02-23 05:23:00	As someone who paid off the mortgage in 5 years and have superannuation plans I can offer some advice . Firstly, You should be in the habit of putting a little bit aside on a regular basis for the future, both short-term and long-term . - Short Term - Goal: At least 3 months net income savings - Long Term - Superannuation Account created locking in savings until 55 . Start with a small amount say $50 per month (you can increase it later) It will compound over time . Secondly, Clear the mortgage as quickly as possible, by giving up almost all the things you like . (I didn't replace my computer for 6 years) Reduce to almost Nil any overseas holidays over the term . Eat out much less or not at all . Thirdly, once the mortgage is gone, review your funds status . You should aim to have funds that allow for at 40-50% of your gross income in interest and principal drawdowns . Base your plans' on todays interest rates and not what you think they might be, because this is what you know . If you are under 30, do not expect too much help from the Government . (There is even talk of extending the retirement age to 85 by 2050 in some countries) . Set your own retirement age and aim for that . Just a side question if I may . If a person is organised and disciplined, would it be better to defer LR investments to later? Get the mortgage out the way first becos that rate of interest is higher than the investments . 8% mortgage we talking about the return of a long term high risk investment right? But I agree if you have to pay off a mortgage and at the same time have small LR investment plan in place it does increase the self discipline for pple to stick to a future plan . If you have no debts $20 a week aside when ya young can get $20k a yr (per person) with the assistance of the govt pension . This I think is a low risk investment or superannuation plan of 4% net interest compounded .	Nomad (952)
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