Here's What I Think
What Do You Think?

Superannuation

[This is an unfinished work - please feel free to email me with your great ideas!]

Due to newspaper spin Winston Peter's Compulsory Super plan was defeated.

Of course we all hate that word - Compulsory.

But how else do we deal with those who choose not to be responsible.

Perhaps Cullen got it right by making the deal so good that anyone earning anything realistic would be foolish not to subscribe.

Perhaps this is an area where we align to Australia!

So that leaves the real issue of how much super will we need?

Will it cover the local body rates now over $1500 pa because land values have gone up? [We need to re-think the existing subsidy!]

Will it cover the petrol each week when there is no other way to travel? [Why is not public transport free? The roads are!]

Is $14,000 pa (after tax) enough to live on?

If I save money where should I put it? We have been investing in second houses using tax avoidance mechanisms and the Governor of the Reserve Bank keeps punishing us for that.

While we are fit and young why not have the bach, boat and beamer? But maintaining 2 houses, racing off every weekend, etc can wear out as we seriously mature.

So what can we do with our money for our old age?

Recent reports in the Scientific American say that for Americans you either die of what is in your family genes at around 70 or you live to 95.

Hello! - I need funds for 25 years more than I thought.

Well, I can work for another 10 or so years - the brain is ok - and I have good knowledge and experience - I just have to find a job - without going through a recruitment company because they rarely recommend someone over 60.

What about allowing us to simply put money in a New Zealand bank - for the usual interest - but not tax us for being careful.

If, by age 65, I could put $250,000 in the bank at 7.5% interest rate I could draw $20,000 per year for 20 years provided there was no tax on it. I would feel secure because of the very low risk of my investment. My biggest worry would be inflation.

Perhaps this could only be if I have no other income except super.

And of course, I still have my super and my house.

What could be better!

   
  © 2008 - Ian Mitchell
22A Goldie Street St Heliers, Auckland, Ph: 09 5851580
Top | Back | Home | Print | Save | Email | Site Policies | WebMaster | Contact Us | Email Us