All posts in the Financial IQ category

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Investment Outcome Calculator

Have you ever wondered how an investment snowball?

Use this calculator to find out!

Start with an investment amount, add in a monthly contribution plan, nominate an interest rate and timeframe, and let it roll!

Go to Calculator

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Calculator: How much money do you really need to retire comfortably?

You could retire at any time and any age in Australia, as long as you have sufficient regular income to support your lifestyle.

Most Aussies receive their retirement income from either investment, age pension from Centrelink, or a combination of both.

Here are some interesting figures about retirement in Australia that you might not know:

  • You need to pass a series of stringent tests to be eligible for the government age pension after your 67th birthday (for most Australians), and the pension is maxed at $1,423.60 pf (the equivalent of $37,013.60 pa) for a non-homeowner couple (Source: Services Australia). Most people feel that the government age pension is nowhere near enough to fund a “comfortable” lifestyle.
  • Average superannuation balances at the time of retirement (assumed to be age 60 to 64) in 2015-16 were $270,710 for men and $157,050 for women (Source: The Association of Superannuation Funds of Australia Limited (ASFA)). If there was no investment movement and assuming you need $60,000 pa to retire comfortably, the superannuation fund balance will become $0 in less than 5 years for men and less than 3 years for women.
  • The average life expectancy in Australia has increased by almost 20% during the past 50 years in Australia (Source: WorldBank), so you may have more years to support yourself and your family than the previous generations. The aging population also means taxpayers have to work harder to fund the current pension system, but might not have the same amount of benefits when they retire because the dollars in the age pension “pool” are shrinking.

 

Is there a better way to do retirement since the government pension doesn’t look so glamourous?

Yes!!

And that is by building investment assets outside of your family home, both inside and outside of your superannuation fund, to reduce your reliance on the government pension.

 

You can use this simple, 7-question calculator to work out your ultimate retirement question:

How much is enough?

retirement goal calculator

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Guest publication in “Ask an Adviser” May 2020 edition

I get asked to write for Adviser Ratings in the “Ask an Adviser” section from to time to time, where anyone can ask a question and I will be answering them. This one was a question asked by a Kate from Fremantle about the positives of a pandemic. The original article was published here.

As a young person/mid lifer accumulating super and whose retirement is some way away…  What are the positives of this market fall and how can I ensure I am positioned to benefit from the growth post COVID 19?
Kate in Fremantle

Top answer provided by: Nicole Niu

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Guest publication in “Ask an Adviser” Apr 2019 edition

I get asked to write for Adviser Ratings in the “Ask an Adviser” section from to time to time, where anyone can ask a question and I will be answering them. This one was a question asked by a Toby from Sydney about the Barefoot Investor (ah~ another one!). The original article was published here.

I’m currently with REST super and I’m thinking of switching to Hostplus – are there any tax or insurance issues I need to be aware of before switching?

Toby from Sydney

Top answer provided by: Nicole Niu