Brexit: is your retirement in danger?

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Brexit has left many people wondering about travel and passports but what about the really important issue? We ask Noel Whittaker for his take on Brexit and your retirement.

Has Brexit ruined your retirement? The good news is that your retirement is not ruined due to forces beyond your control, but you do need to understand that every investment decision you make has a downside as well as an upside. If you choose to put the bulk of your money in cash, you will never have a worry when stock markets fall, but you will be taking the high risk that you will outlive your savings.

I strongly believe that shares will continue to be the best asset class over the coming years, but that anyone who invests in shares needs to understand that their prices are volatile, and it’s normal to have four negative years in every 10.

In the next few months there will be much talk about Britain in the news, but bear in mind the media tends to focus on the negative. If you watched the 6pm news on Friday you may well have been scared. We were told that millions had been wiped off our superannuation as markets fell, oil prices plunged, and the British pound had suffered one of its biggest losses in history. Yes – this was all true, but they did not mention that when the All Ordinaries index fell three per cent, it had simply taken back the gains of the week before. Similarly, Japanese shares were down eight per cent on Friday, but they had risen five per cent over the previous five days.

If your money is in superannuation, it’s almost certainly going to be spread between cash, property, cash bonds, and local and overseas shares. Usually when shares fall, bonds rise – this gives you an inbuilt safety buffer.

And it’s simply not practical to convert your assets to cash and then hope you will be lucky enough to pick the bottom of the market. History tells us that this is impossible to do consistently.

My advice to worried investors is to make sure you have at least two years planned expenditure in cash so you are never forced to sell when the market is having one of its normal downturns. Then, hopefully, you can sleep at night knowing your portfolio has time to enjoy the inevitable recovery.

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions.

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Written by Noel Whittaker

146 Comments

Total Comments: 146
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    Whenever there’s a downturn, older people have far less time to spend waiting for the inevitable recovery. As for Brexit. The media and polls all got it wrong again. Never underestimate the quiet majority. Maybe unscrambling a rotten egg will take a while with a few ups and downs. For me, the expected initial turmoil of Brexit will be worthwhile in the longer term. At long last, they got their country back. Money just doesn’t buy some things.

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      Nice to see “Swinging Voter” your support of Scotland’s argument for their independence.

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      Hi Tom. I’d just say good luck to Scotland when the dictators across the Channel force them to change their currency to Euros. I doubt the stoney-faced overpaid bullying unelected Brussels personnel will set up a UK equivalent pension fund for them either.
      When push comes to shove I very much doubt Scotland will get serious about breaking up the United Kingdom. Nicola Sturgeon – goodness what a self-important blathering bandwagon attention-seeker. Although I am a woman, I’ve got no faith in women who occupy top political jobs. They’re mostly all talk what do they call it: all arse and no class.

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      Sorry to re-post. My husband just said the Europeans can send all their immigrants to Scotland.

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      There is massive discontent in the whole of Europe. The citizens of Europe have had enough of the Dictators in Brussels and MERKEL. Brexit is a defining moment in history and the groundswell will take root all over Europe. The EU Political elite have underestimated the will and resolve of the people and hopefully The EU in it current form will be dismantled and get back to basics, Trade.

      http://www.express.co.uk/news/world/684131/brexit-eu-referendum-tsunami-france-italy-netherlands

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      Europe is a mess niemakawa but you can hardly call Merkel a dictator. Dictators control the media (the coalition?) and close down dissenting operations (ABC and SBS?). And then dictators jail and kill people who talk against them.
      Merkel has done none of the above….but the eurozone is a tightly regulated group and that probably needs to change. Had Britain been able to control its borders then it would likely have remained.

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      Mick, in fact Merkel has restricted free press in Germany; she demanded that Facebook not allow any perceived derogatory remarks or comments about Muslims; She ignored the violence and sexual abuse of not only women but young girls and boys that were committed by muslims in Germany. She has instructed ( commanded) that her citizens are not allowed to rent out rooms ( AirBnB is one example) She says they are needed for “new arrivals”. She demanded that other EU States must not put up fences at their borders.She takes unilateral action on EU matters without consultation with other Member States. The Greece/Turkey solution on illegals, another example. In my view her actions are those of a dictator.

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      niemakawa, I do agree on all of the points made. I thought Merkel is wholly responsible for the last straw in the minds of the British due to her encouragement of hordes of people onto unseaworthy boats, flooding into Europe where host taxpaying citizens now feel displaced, frightened and unworthy in comparison with what is being made available for foreigners, many of whom will not wait too long before making religious, cultural and social demands. I saw a math chart that showed how many muslims now have EU citizenship plus young men recent arrivals – when they take wives and breed 3-5 children – well Europe will be, as promised, conquered. As for pensions I bet those drones sitting around the big auditorium laughing/heckling Nigel Farage. I smile to think it was mostly one man’s persistence this time who rid the UK of all those foreign dictators. Hallelujah.

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      Without Nigel Farage there would have not been a referendum. Cameron took the bait and risk to get re-elected in 2015. He misjudged the people and lost. That is democracy. The EU project is most certainly not a democratic institution. Britain is well out of it. Yes there may be challenges ahead but you cannot put a price on FREEDOM.

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      Not aware of any of this niemakawa. Are you on the ground in Germany?
      We were in Germany a year ago and rented an apartment. No problem. Not a “room” though so not sure about that one.
      Not too sure if Merkel could enforce compliance though (I’ll make some enquiries) and the young women you mentioned caused a huge outcry in Germany and the rest of the world so was not hushed up.
      I am going to do a bit of work with this one as I have a vested interest in the information you provided. Thanks.

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      Mick, I was in Europe for an extended period 2015 and know people in Germany. Much of what was occurring at that time was was seen by the public but not reported in the German press. t. You may have heard what happened in Cologne, many women were sexually assaulted by immigrants, but Merkel sided with the migrants and made no public apology to the victims of these horrendous crimes. Most of the reports came from outside of Germany as the press and media there were severely hindered by The Government to inform the German people and beyond of the facts. There were reports of immigrants (men) masturbating in front of children in public swimming pools. Again no action taken by the German Government. Merkel even spoke on German TV and said that Germans should go to church more often instead of complaining about muslims and Islam. Surely these reports were shown in Australia?

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      Only the one about molestation and rape on New Year’s Eve, unless I missed it.

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      Mick there are many incidents in Europe that have received little attention by the mainstream media here in Australia. You will have to go to European websites to get more information on what is happening there. RT news I would suggest, they have TV broadcasts here in Australia 2 or 3 times a week. DW ditto.

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      On a couple of occasions on this site I have tried to draw attention to what was happening in Europe (Germany in particular) but was derided by some. I was a scaremonger.

      We need to wake up, take note, and thankfully we have at last taken back control of “our” borders. How long this will last will depend on the outcome of the election. We know that there are parties/people that would like open borders and quite prepared to let anyone and everyone in.

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      I have put the questions to German relos and I await their response. We’ll see if the allegations are legitimate in the next couple of days niemakawa. Cheers.

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      mick
      there was hundreds of post re the rapes in europe on fb Germany, sweden, denmark and not to mention hundreds of violent clashes being shown my family reside in the alps in italy and they never allow their children to be unescorted as all the invades want is sex, sex, sex

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    The biggest negative I can see out of Brexit is lower interest rates in Australia for longer.

    Big positive is that my future trip to the UK just got a lot cheaper.

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    Q: What was one of the factors causing the referendum in the first place? A: IMMIGRATION!
    Doesn’t this tell you something? To say any more on this site would be to have my comment removed.

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      Make no Mistake Fast Eddie,We are going down the same path. I have no doubt that our Government has plans down the track to unite with Asia and China the same as the EU. This I hope will be a wake up call. I agree that the Refugee,Immigration is a major problem. We can not see it but if you go to the Sydney Western Suburbs you will see the problem. We in Australia live in the best Country in the world with free handouts. Why would you not want to come here.

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      sidney70, what would law enforcement authorities do if public streets and thoroughfares were blocked to vehicular traffic by praying Baptists, Christians, or Jews? Yes, you guessed it, so why do others get to do it without the slightest interference? Is this equal justice for all? Does my comment deserve to be deleted because I have stated a true situation? We will see. Watch this space.

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      You must not give into PC, say what is on your mind and if any comment is deleted then keep trying. For instance you should have used the word muslims in your last post, because isn’t that what you mean?

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      You betcha!!

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      Seriously guys I think BOTH sides understand that voters do not want to be flooded with more economic migrants crying ‘refugee’. Of course now we are seeing the Immigration Department scandal where people are coming by plane rather than boat. You cannot tell me nobody knew and that the current government was not told. I actually am wondering if there may have been political donations flowing into Liberal Party coffers from the criminals making the big bucks. We” all see in time I guess.

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      Mick I am also wondering if there may have been political donations by human traffickers flowing into Labor coffers from these criminals making big bucks.

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      It wouldn’t surprise me in the LEAST if BOTH of you (Mick and niemakawa) were right. These people wouldn’t hesitate at ANYTHING to fill their pockets while in a government position. Pathetic!

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      UK been there officially since 1800, now destroyed without a bullet being shot. Major victory for someone!!!!!!

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      Labor is currently not in government niemakawa. The coalition is and the coalition would be in a position to not act. Not Labor.

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    Good advice Noel.especially having at least two years expected outgo readily available in CASH. If you chose a Bank which offers a deeming rate you should match the Centrelink rates, but watch this as the Bank may decide at their option to break your contract and not to match changes in the deeming rates. The other advice I would give, unless you want to spend time on your shares, is to spread your share investments, by investing in AFI or a similar quoted LIC , and let the experts look after the day to day investments at a very low expense rate.
    Interesting how the Scots voted against independence because the proponents did not have a clear plan of what they would do if they won, and did the same again with Brexit as the ‘leave’ team had no idea how they would proceed if they won. Yet the English voted to leave without knowing what the repercussions would be !
    Migrant (glad he is an Aussie, and does not hold an EU passport.)

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    Yes, great advice, except how the hell do you plan and have two-years’ cash in reserve when the government changes the rules without warning, dividends collapse without warning, and putting substantial money into cash smashes your income totally because you have to get better than 7.8% return on EVERY dollar to be as well off as if you didn’t have anything at all! What a bunch of MORONS we have deciding policy in this country!

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      Any money in the bank is cash or cashable so it is not hard to do at all.

      Those latest capital notes for the 2 of the big 4 banks have returns greater than 7.8% Rainey. So it’s not hard to get better than 7.8%.

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      Good rate Old Geezer I have a fair go at the stock market but these bank notes do worry me a little as the banks can do what they like with them at any given time and there capital value does fluctuate a bit, just like shares.

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      I’d rather own the bank shares myself but I did buy a few. With such low interest rates and looking to go lower I expect them to list at a premium so with enough premium I’ll probably take a stag profit.

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      Dear Rainey,

      ‘TRUST US”, we’ll change the rules as we see fit for the benefit of the upper class elite people, corporations and foundations that support us financially. We don’t care about the rest. If you have a problem with this, deal with it on 2 July.

      Have a fabulous day.

      The Current (Morons)Government.

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      HS you have got it very wrong. They don’t change the rules for the upper class elite etc. They make rules and the upper class elite etc pay their learned friends to learn those rules and find ways they can benefit from them. Anyone can do this by learning the rules and playing the game. It is only when the government realises too many people have learnt these rules and are not playing as intended that they change the rules again. It is a cat and mouse game.

      Unfortunately by the time the masses work it out it is all over.

      No matter who rules this will always happen.

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      Whatever, Old Geezer. The masses have had a lot of time to educate themselves about all the political parties rather than to listen to the dribble that’s been coming out contending politicians recently.If they vote in LNP watch the turmoil and misery for the next 3 years or less. If they vote Labor watch the interesting socio-economic times and probable ‘f–ck-ups’. If they vote for the Greens, “God save the Nation” because the Greens will not !

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      It IS for pensioners who have struggled through major disadvantage and educational deprivation, Old Geezer. This is the point the privileged decision-makers and the selfish who endorse their policies miss. My mother wouldn’t know what a ”capital note” is, let alone how to invest in one, and at 90, I don’t think she should have to learn in order to protect her tiny little nest-egg of savings accrued through 9 decades of frugal living with the goal of leaving something to her disabled great-grandson.

      This society has become self-serving and uncaring in the extreme, and totally unreasonable in it’s expectations of the disadvantaged.

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      LNP sounds like the best of a bad bunch then.

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      Sounds like more excuses Rainey. I now of many people in their 90s who are very involved in investing their own money. One fellow I know the doctors tell me that is all that keeps him alive. Age is no barrier to knowledge.

      Society has not become self-serving and uncaring. People have become very lazy and blame everything and everybody but themselves for anything that goes wrong in their lazy lives. Most now fail to even think for themselves and follow others at their peril.

      Many people would call me disadvantaged but I’m not about to let that stop me doing the things I need to do to get the things I want in life.

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      Old Geezer , While I can only say Good luck to your fortunate position of good health generally . What you are not considering is that many of advanced age , or even younger , no longer have the mental and physical capacity to making astute decisions and suffer illnesses quite often due to having worked hard all their life . I know of many who just struggle to stay in their home and their life revolves around frequent visits to their Doctors , Specialists or Hospitals .
      So go and tell them their misfortune has something to do with being lazy , self serving and uncaring .
      I have been involved in aged care in my time and can only consider your generalising attitude as an insult to many elderly .

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      Ha ha I find that ironic as I am writing this from a hospital bed. Don’t I know about one’s life revolving around doctors, specialists and hospitals. However my misfortune doesn’t stop me from managing my own affairs. I consider you comments an insult to me as it sounds like you expect me to be like your stereo type of the elderly.

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      Cash is cash Rainey. You will have an issue withdrawing any amount approaching $10,000 as banks do not want people hording cash. I recently did this got the third degree.
      Given the precarious nature of the financial system don’t think your money is your money if the system tanks. There are already bail in arrangements set in place and banks can and will simply take a big part if not all of depositor money to recapitalise themselves.
      We live in unsure times but there is one thing certain: banks are ‘too big’ to fail and governments will not stop the Cyprus solution from happening here or in any other western country.

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      Mick I don’t think there is any trouble getting Aussie dollars but I hear there is a big shortage of British pounds at our banks.

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      Old Geezer , Following replies by others to your ignorant point of view , I now regret having wasted my time just to get another example of hogwash . I am sure the Liberals must be proud of you .

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      No Oldman Roo you have just stereo typed me into a hole where I just didn’t fit and you now shift the blame back to me by called it hogwash. People need to take responsibility for their own actions and not blame others.

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      Old Geezer , If you have not figured out yet , just what hole you fit into , by the various responses you had from other participants , I think there is no point in further discussion .

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      Did not want to weigh in here but I am thinking Oldman Roo may be referring to your troll activity. Along with your alter ego (Frank) it is pretty obvious your comments and often not comments but rather propaganda. As I have been saying for some time: argue issues on the merits. Not BS from party HQ. People see through that.

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      Mick I am simply on a different level of thinking as I don’t have a welfare mentality. I do agrue issues as I see them which is odds with how you see them. You agrue from a personal point of view of what’s in it for me whereas I am not concerned with what’s in it for me but what’s in it for the my kids and grandkids future.

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      Funny Old Geezer. With a week to go to the election you SUDDENLY appeared. The White Knight for welfare reform.
      If you were concerned about future generations you would be speaking against giving a huge corporate tax cut at a time when we have debt. YOU KNOW as well as I do that average Australians are going to get tax increases to pay for this. Tell me about your grandkids.

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    The only thing which could dampen my retirement would be ill health or death for my wife or me, all the others have been covered. The REAL repercussions of Brexit won’t be felt for 2+ years and the effects in Oz will be minimal. People here would be wiser to concentrate their concerns on what is going to happen here this Saturday, and not in the neighbors backyard.

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    BREXIT will prove to be a Godsend for investors in time. The concept of the EU project is flawed, dangerous and evil. Its intention is to control every member State of The EU: One Central Government in Brussels; One tax system; All laws set by Brussels; All States must use the euro as its currency; An EU army ; The EU Superstate will determine where refugees are relocated; The EU ( Superstate) a Dictatorship in the making, which would undermine the Global economy as well as World security.

    Australia and British relationships will continue and trade opportunities abound for both Nations.

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      Couldn’t agree more. Same type of cross-Channel oppression, just a different, more subtle modus operandi.

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      I also agree, the biggest mistake was to join the EU and be ruled by faceless politicians whom they did not elect and who were not British.

      The British now have a chance to rectify this mistake and prosper without being told what to do by other countries.

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      Agree niemakawa!

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      At least there have been no major wars in Europe for a long time.
      There are benefits too.

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      Mick what a sad thought that the benefit of joining a union comprised of sabre-rattling entities is to stop major European wars. That’s like a house-owner leaving his front door unlocked because there would be an even greater mess if someone broke down the door.
      I can’t imagine Australia joining a union headquartered in Beijing, with Singaporean, Japanese and Vietnamese un-elected commissioners having regulatory control over trade, immigration, even taxes for God’s sake! And paying them a massive amount of money for the privilege. And us with no ability to vote them out.

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      You seem to have some sort of ‘union’ phobia Swinging Voter. I understand you cannot handle not being in control but people living in cities could (and do) say the same thing about national governments. In the end we need a government which logically and sensibly makes decisions for the greater majority or we remain a feudal system warring with each other with no end ever in sight.

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    Scott Morrisons out gunning for pensioners again

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      Steff, Thanks for making the discussion political!! Some people cannot help themselves. As far as having 2 years ready cash available in the bank that is OK as you can withdraw a certain amount each day/week/month etc. If this was not possible then how would people plan extensive travel and other large expense items.

      A dangerous trend has been established with some older people who keep quite large quantities of cash at their residential premises. Some not all of course tell others including family that they have it and as we know others tell others etc. As people get older they sometimes forget that telling others can be in some instances dangerous even family. Think about it!

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      Jilly B . And if people on a pension are able to put some aside so they have 2 years ready cash available, then no doubt Centrelink will include that as an asset. The trend as you put it will probably grow overtime. Having said this the Government of the day will surely provide a form of voucher / card system to all pensioners, which can only be used to purchase “certain” items. Probably any residual balance on the card will be forfeited and clawed back by the Government. All major parties are guilty of treating pensioners with contempt.

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      niemakawa – Imagine if the people demanded that the government go on a voucher/card system to spend on “certain items” according to an approved taxpayer’s Budget that the government can not exceed under any circumstance and any surplus is distributed back to the taxpayers year in year out. Contempt breeds contempt, sometimes it breeds people’s revolt.

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      Pensioners on Centreling fortnightly payments don’t need two years worth of money set aside as they get paid each fortnight.

      It is those living on investment income that need the cash backup.

      The article was about those living on their own savings and whatever income they can generate from it.

      Those on a fixed income, from the taxpayer, do not have the same level of risk and the worry of losing capital.

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      Pensioners have been made targets because they are an easy mark. They are old and not wanting a fight, they often are suffering the onset of dementia and they are set in their ways. The perfect lemmings who will complain but not act. I know I am not speaking for all though and that is understood.

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      I think you are correct MICK.

      I doubt Brexit will really make that much difference.

      Markets are already experiencing huge volatility levels and uncertainty. World debt levels are unsustainable and all Central banks can think to do is throw more debt out there for the speculators to gamble with.

      Into this mix stumble compulsory Australian savings.

      I’m more concerned by the oil fiasco. In our just in time economy we are about 4 days away from chaos. Bankrupting industry after industry in a speculative orgy ,out of control, is no way to fight deflation or the liquidity trap.

      And what do economists know?

      I love John Maynard Keynes 1927 quote, “We will not have any more crashes in our time.”

      Compulsory savings was a way of forcing saving for retirement except that you can blow the lot on a world cruise if you want. It treated PAYG earners as idiots. Business and self employed don’t have to put 9% of income into markets when any sane person would be out of them and waiting for the dips.

      All the past beliefs about market behaviour are mucked up now.
      What happens at negative yields on bonds when stocks tumble and liquidity disappears again?

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      The short answer is consider buying some gold. I cannot ever work out why people buy bonds with a negative yield. Better to stick your cash under the bed.

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    Hey, isn’t superannuation supposed to be to provide security and peace of mind when you are at your most vulnerable? Why the government provides huge incentives with taxation benefits to encourage people to invest as much as they can into their super funds to reduce the demand on the welfare system?
    Yet, here we have ANOTHER warning about the vagaries and RISKS associated with the whole system. Add to that the recent warning from the well known financial adviser, Scott Pape, when he sends out in his newsletter, “The Ticking Time-Bomb in Your Super Fund”.
    Why should there be such “vagaries” and volatility and “ticking time bombs” in your super fund when it is so vital to society and the economy?
    Don’t such words and warnings define superannuation as we know it as being fundamentally flawed??
    The vast majority of contributions into super funds go into real estate and managed funds (predominantly in equities) yet, they are both highly vulnerable to external forces which could (and DO) impact quite horrifically on those investments. Even (safe??)term deposits have been smashed as reliable income producers.
    We have just seen the impact of what really is quite a minor hiccup, but, caused immediate panic, on top of just 8 years ago an almighty crash of all markets which went so close to a repeat of the 1929 depression.
    Think of those people who retired with a lump sum before 2008 after contributing for so many years into their super to see the value of their fund be decimated. People had organized their entire budgets and lifestyle on those funds only to see them dissipate so quickly and their lifestyle altered irreparably.
    Superannuation, by definition, should and must be much more secure than that and probably be based upon the same principles as public servants’ superannuation where the payments are guaranteed by the government. Surely a system can be devised along those lines and even similar to the old style “endowment” insurance policies? But, something has to be done to ensure that retirees are not subjected to such frightening risks which are certainly having a very detrimental impact on retirees’ stress levels. The ONLY people who are currently guaranteed to make money out of the current system are fund managers and banks!!!!

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      People who retired in 2008 would have seen their investments more than recover now and have been paid a lot of dividends along the way. They would have earned a lot more than those who left their money in bank deposits.

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      People had organized their entire budgets and lifestyle on those funds only to see them dissipate so quickly and their lifestyle altered irreparably.
      – So the government is in the business of stuffing up people’s plans, it empowers the government when it does.

      People who retired in 2008 would have seen their investments more than recover now and have been paid a lot of dividends along the way.
      -That’s if they dared to invest on the stock market. Many retirees are not gamblers despite the fact that investing on the stock market is in favour of the odds rather than gambling against the odds, for instance, such as pokies, casinos, gallops, trots sports betting etc. How many retirees have been taken to the cleaners by fraudulent financial advisers working on commission for Macquarie Bank, CBA, ANZ and NAB? It’s a can of worms that the Liberals don’t want to open with a Royal Commission into Banking practices and unconscionable conduct.

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      I could never understand how people could invest their life savings into something they could not understand. Some personal blame has to be levied here because they let greed take over from their better judgement. That is the only way I can understand their actions in doing this.

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      Come on. Not everyone wants to preserve their lump sum into perpetuity so as to maybe get some pats on the back from their beneficiaries.
      Some people say that that super nest egg is MINE and very hard earned and budget to not only use the dividends to support their retirement but actually SPEND some of it on those little luxuries that they have missed out on while bringing up their families and saving for their future. How are those European river cruises paid for??
      Life IS too short, but, when your super fund buys CBA shares for $95 with a yield of less than 5% and now see them at $71, how do you think they feel?
      That is a 25% LOSS OF CAPITAL in anyone’s language. Cash investors in term deposits for example have seen their income drop by over SIXTY%.
      And, who gets the cream, the untouchable banks and fund managers!!

      So let’s talk about the GFC, and the heart palpitations and wealth destruction it caused retirees who had all their savings tied up in the one very unbalanced bucket.

      Guess which country suffered the biggest losses on retirement savings during the GFC?

      Iceland.

      Guess who was the second biggest loser?

      Australia.

      Yes, the Organisation for Economic Co-operation and Development (OECD) found that our superannuation funds lost a larger share of their members’ funds than any other pension system in the world — with the exception of Iceland.
      And you can GUARANTEE that these negative blips in markets WILL continue. How can retirees with modest funds in their super (the vast majority) sleep easily not knowing what happens overnight??? Not everyone has a financial buffer and nerves of steel. Most rely on the advice of their banks and fund manager and you know who’s interests they have most at heart!!!!

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      If you can’t sleep easily at night and stand negative years then why are you invested in these assets?

      It matters little to me if CBA is $95 or $71 as long as I get that nice dividend every 6 months. If you have enough cash in reserve to meet you expenses for next 2 or 3 years then the volitity of shares should not be a concern. A loss is only a loss when you sell. If Australia had second biggest losses then a lot of people must have realised those losses.

      All a bit odd to me as I thought we got through the GFC very well compared to many other countries.

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      Superannuation was sold as the dream. But it is controlled by vested interests nibbling away at the perimeter and the blue sky figures rolled out by salesmen were then money as opposed to now money. They never mentioned something called inflation.

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      Gratefull, I can only speak for myself but I managed to retire at 55 an am a self funded retiree. My main source of income is superannuation, and thanks to a few decades of stability in that market I will probably not need to take a part pension, although I would not hesitate to take one if needed.
      For 75% of my working life I was on average wages but towards the end of it I was paid better and was able to salary sacrifice into my fund and increase the earning potential. Along with paying off my house 10 years before retirement and being debt free for those years I was able to use long term planning to reach my goal.
      And that is the difference between now and then, the current and previous governments have introduced so much uncertainty into the super environment that no one in their right mind including myself would take the chance of using super as a long term retirement plan.
      The fund I signed up for allowed me to access my money at the age that I predetermined at the start of the contract, I could take it as a pension and manage the tax side or take a lump sum and pay a tax penalty or choose a mixture off both. In other words it was my money to manage how I pleased.
      Looking at the plans that this government has for super you are looking at locking your money up for a non specific time as the government wants to link it to retirement which it wants to determine to suit itself, it wants to stop lump sum withdrawals and fold any unused funds into consolidated revenue. I can’t fathom how anyone would choose to put any thing but the bare minimum into such a fund.
      This government has virtually destroyed the Super Fund industry.

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    It’s not Brexit that worries me. It’s the future if this government gets back in with another plan to rob the poor to give to the rich. Showing their true colours again, with yesterday’s so called “savings” by persecuting the poorest in society under the guise of “welfare fraud”.Do they think people are so stupid and naive to believe their rhetoric.

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      I saw that, and thought the same thing!

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      OK these people might owe this money but what chance have they got in getting it paid back? Most cases it is probably prosecute them and send them to jail or community service. I’d be writing it off as a bad debt not savings.

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      Do they think people are so stupid and naive to believe their rhetoric?

      -Obviously, Morrison has no faith in Centrelink’s administration and ability to reject pensioners who do not qualify or who have applied with false information to qualify. If profiling was made public then there would be less fraud from some segments within our society.

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      Ditto Mar.

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