Retirees’ savings dwindle as interest rates stay low

Retirees face dilemma as low interest rates rob them of income from savings.

Cash savings are dwindling

Once again this month, the central bank has left its interest rate at a historic low of 1.5 per cent, denying older Australians the prospect of growing returns from their cash savings.

The Reserve Bank of Australia (RBA) board acknowledged that most economic signs were positive, here and abroad, but not heated enough for it to feel the need to use the lever of interest rates to cool things down yet.

At 2 per cent, inflation is still at the lower end of the ideal target, although it is expected to move up next year and in 2020. But don’t expect the RBA to jack up the cash rate in response to a mild pick-up in inflation.

The bank has not moved on rates in more than two years and pundits think any increase is unlikely before the middle of next year.

Why? Because it is still concerned that household spending is constrained and it wants to avoid putting more pressure on working Australians with a mortgage, lest consumption falls further.

Unfortunately, this leaves a large group of other Australians – retirees – stuck in the middle. They, too, are less likely to go a’spending if the returns they get from cash investments is negligible, thanks to weak interest coupled with rising living costs and the likelihood of living longer.

Independent economist Saul Eslake told YourLifeChoices that the continuing subdued interest rates are presenting a real dilemma for retirees.

“All else being equal, the RBA holding the cash rate at its present level of 1.5 per cent per annum for an extended period makes life tough for retirees who keep most of their savings in term deposits, or other products whose return is closely linked to the cash rate,” Mr Eslake said.

“Three-year term deposits, for example, have been paying 2.45 per cent or thereabouts over the past year – after tax … you're not even keeping pace with inflation at that rate.

“Up until recently, most retirees would have been advised to park at least some of their savings in shares carrying a high and fully franked dividend, as do for example the banks, Telstra or utilities. But more recently such investments, though still paying good franked dividends, have carried a risk of capital loss.

“Of course if you're not planning on leaving a bequest, the risk of capital loss may not be so significant (as long as the dividends are kept up), but most retirees don't think that way.

“So the ultimate conclusion is that persistently low interest rates confront retirees with a dilemma – accept continued poor returns (less than inflation after tax) and adjust your spending accordingly; or take on more investment risk.”

And there is the rub. As we age, our appetite for all manner of risk, and especially when it comes to our money, diminishes.

AMP Capital chief economist Shane Oliver has some words of wisdom for those who want to explore whether they should step outside their investment comfort zone.

“The key for an investor is to work out whether they prefer stability in the value of their investment – in which case bank deposits are a sensible option – or a higher, more stable income flow, whereby Australian shares may be more appropriate,” Dr Oliver writes.

“In any case, in the search for higher yield, investors need to remain alert to opportunities while being aware of how particular shares or assets have performed in the past in relation to dividends.

“But with a low-return outlook and uncertain prospects of capital gains, focusing on opportunities that have a track record of delivering reliable earnings and distribution growth is important if investors are to generate solid returns and meet their investment and financial goals,” he said.

The final nail in the coffin for pensioners is the Federal Government’s deeming rules. Deeming is used to work out the income created from your financial assets. it assumes these assets earn a set rate of income, no matter what they really earn, according to the Human Services Department.

Deeming applies to savings accounts, term deposits and other investments and makes an assumption of what you could be earning in “the market”, even if you choose to keep your money in the bank.

The Government uses deeming to assess the extent of your eligibility for the Age Pension. If you are single and have savings of over $51,200, each dollar above that is assumed to be earning 3.25 per cent interest. If you are part of a couple, the threshold is a combined total of $85,000.

If you are still determined to keep your cash stashed, shop around for the highest interest-bearing accounts. According to comparison website Canstar, you may be surprised how much some will pay. Some savings accounts pay up to 2.9 per cent and some term deposits up to 3 per cent.

Are you concerned that your cash savings are not returning much interest? Do you believe that the Government’s deeming rates exaggerate the interest most pensioners earn from their savings? And if so, should it be lowered? Would you consider seeing a financial adviser to understand if your circumstances and risk-appetite are suited to investing outside of term deposits?

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    COMMENTS

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    4th Oct 2018
    3:19pm
    You have only yourself to blame if you leave your cash in your savings account or in fixed deposits
    I suppose those that do will want "someone" to compensate them for their financial decision. Let's see , who can they blame besides the financial planners ?
    Rosret
    5th Oct 2018
    10:58am
    Ah yes - and if no one deposits money in the bank where are the banks going to get money to offer loans. Fees? It is a potential juggling act.
    What annoys me is that it is money a means of transaction. If I can buy a cow with the money in 1986 I should be able to buy a cow with it in 2018.
    The banks should not be allowed to have our "money" and then return it to us at a value less than the rate of inflation. i.e. we should be buying units when we put money in the bank not just effectively putting it under the "bank's mattress".
    MICK
    5th Oct 2018
    11:13am
    That is the problem with a Capital Gains Tax Rosret. The bastards stopped adjusting a capital gain for inflation decades ago and now people pay tax on what can actually be a loss in value. That is never talked about but governments keep raking it in regardless.
    As for retirees this groups gets done over by the smiling assassins we have governing us at present. Happy to take money from us as they cut access to a pension, try to push retirees out of the family home and get them to downsize and live off the proceeds. The definition of betrayal has never been clear. Thank God for dementia.
    OlderandWiser
    5th Oct 2018
    11:25am
    If people stopped depositing money into the banks and or withdrawing their monies then the banks will borrow more money offshore & as we have seen before when they do this interest rates go up despite what the RBA says. That will increase financial stress on more Australians especially those with a mortgage & other debt.
    I don't think many people complain about their own financial decisions, a very small minority may.
    Cowboy Jim
    5th Oct 2018
    11:43am
    Might be time to look at the US term deposits - once they are higher than ours we cannot
    lose. Interest rates better and the US$ rising could be a good thing.
    Our deeming rates do not help and I am too old to get into the stock market again as I would appreciate a good night's sleep. Been thru the GFC and lost quite a bit of dough.

    On a part pension you are better off with some money in a shoe box as it is earning about 7.8% if you look at a loss of $3 every fortnight in the pension for every $1000 in the bank. Been talked about before - lower the deeming rate and the shoe box will not be attractive.
    Old Man
    5th Oct 2018
    12:35pm
    Still pushing the party line MICK. You left out that Labor wants to remove the Capital Gains Tax and wants to stop retirees from rightfully claiming franking credits. Is cutting access to a pension because you have too many assets wrong? You have always complained about the wealthy ripping us poor people off so why not deny the wealthy an age pension? There is no proof that anybody is trying to push retirees out of the family home MICK, that is a scare tactic out of Labor Handbook 101. The government offered a chance to top up superannuation if people CHOOSE to sell the family home and move into a smaller property, hardly "pushing".
    roy
    5th Oct 2018
    12:47pm
    Hey Old Man, how dare you criticise MICK, he would be the best PM and treasurer that this country has ever had!
    MICK
    5th Oct 2018
    12:51pm
    I understand ALL the consequences. Unlike you OM I will be lobbying Labor to amend the franking credits changes.
    Your post is what we are starting to see in the mainstream media OM with the propaganda starting to flow so that this government is pushed back into office with the next dishonest lying media campaign orchestrated by the Murdoch Press, the Stokes TV media and others.

    My understanding is that Labor has talked about removing the CGT exemption. I would be in favour AS LONG AS the cost base was indexed against inflation. The real inflation rather than the figures plucked out of thin air!
    This government IS trying to push retirees out of their own homes into cheaper homes so that they can then live off any capital gain...after they have paid their CGT! Don't try that one on with me OM as the media may not be running the line at present but it did for a couple of years.
    The super top up plan was ok but how many people were going to be driven out of their homes for a fistful of dollars? You? Thought not.

    I can see from some of your recent posts that you are acting in unison with the mainstream media to get this wretched government back into office. Same on you.
    Misty
    5th Oct 2018
    1:28pm
    Yes Mick you only have to watch Sky News, loaded with LNP presenters pushing the government's policies for all they are worth and so screwed to the LNP Right it isn't funny, the way they have run MT down is just awful. all they want now is to get TA back well Buckley's and none to that idea.
    MICK
    5th Oct 2018
    1:42pm
    I don't watch Sky News but this is a Murdoch asset so understood propaganda will be the norm.
    I watch 7 News and the one sided bias and grooming is sickening. When Turnbull was pushed back into office this media outlet plugged him relentlessly as children's hospitals and primary schools giving Turnbull long air time and pats on the back. Shorten got a 3 second stint shown in a bad light and not really saying anything.
    7 News is now grooming Morrison. Since his installation as PM he has had the same coverage as Turnbull and this appears to be Kerry Stokes' way of making Morrison a household name so that Australians will vote for him. This is illegal under media rules but it is never challenged. I wonder why!
    Old Geezer
    5th Oct 2018
    1:48pm
    I don't watch any of those biased news sources myself.
    TREBOR
    5th Oct 2018
    2:11pm
    Most bank 'money' exists only on paper.
    Rosret
    5th Oct 2018
    2:15pm
    Liberal reporters Misty - they virtually brought down the LNP last month. I refuse to watch the Sky news. They are players - far too invested in manipulating the politicians for my liking.
    Old Man
    5th Oct 2018
    2:20pm
    Small correction MICK, and I'm sure you didn't make the mistake deliberately, the family home is exempt from CGT. Your post of 12:51 is incorrect. More scare tactics?
    Old Geezer
    5th Oct 2018
    2:40pm
    Old Man in most cases the home is exempt from CGT. It is possible to live in one home and have another one that is exempt for CGT.
    Nan Norma
    5th Oct 2018
    11:01am
    What is even worse than the deeming of cash savings is the asset test of the family car, household items etc. These are necessities. I invested in estate mortgage and lost thousands. The week I put an inheritance into super the GFC happened and I lost thousands of dollars again. Can you blame me I stick with with bank deposits. Even now I'm still losing. My savings are going backwards. It seems the government is determined to to squeeze whatever it can from pensioners.
    OlderandWiser
    5th Oct 2018
    11:38am
    Clothes, shoes, socks, even your dirty underwear is deemed as an asset by centrelink.
    To have no assets you have to apply in person at your centrelink office stark naked lol
    *Loloften*
    8th Oct 2018
    6:14am
    Me too Nan Norma....even tho' the 4 big banks are ripping us off with their low term deposit interest rates whilst upping their %mortgage rates for our children, approx 100% higher. No wonder the bug*ers are still making record profits @ ALL their customers' expense.
    johnp
    5th Oct 2018
    11:27am
    Shane Oliver as an AMP rep has no credibility whatsoever !!
    *Loloften*
    8th Oct 2018
    6:20am
    Gotchya Shane Oliver - thx johnp
    Ted
    5th Oct 2018
    11:35am
    Ah yes, an AMP economist! An AMP planner suggested that I put $10 000 in one of their accounts and promptly charged me $900 for the advice despite me paying them $3000 in the previous year for ‘ongoing advice’. This is subject of complaint but the biggest risk to investments are financial planners not low returns. Poor returns are certainly an issue but there are other problems too.
    Old Man
    5th Oct 2018
    11:42am
    As we all live in a democratic society, that means we all have choices and if some choose to enjoy the security of having their savings with a bank then so be it. By the same token, why should these people be penalised by a government which supports the Reserve bank's decisions to stimulate the economy. If the Reserve Bank chooses to maintain a low interest rate then the government should also adjust the deeming rate commensurate with the Reserve Bank's recommendation.
    Nan Norma
    5th Oct 2018
    12:33pm
    old man, you are absolutely correct.
    roy
    5th Oct 2018
    12:48pm
    Old Man, hear hear. Democracy lives.
    MICK
    5th Oct 2018
    12:58pm
    GOVERNMENT = GREED.
    The thing about ALL governments in the western world is their MPs have no conscience about squandering a country's money or selling it out. Our governments (both of them) have done both and then come after us for more to waste.
    Kerry Packer got it right. When summoned to a senate inquiry and challenged about the taxes Packer did not pay he stated "you don't use it real well from what I can see". He had a point...but things have only gotten much worse from that time on with the current batch running our debt up to $600 billion. That ain't government. It's a sell out of the country. And then the same bastards turn around and give the rich, who have been doing really well since the GFC, massive tax cuts with this cohort screaming that they did not get business tax cuts on top of that.
    roy
    5th Oct 2018
    1:22pm
    Nobody but nobody spends other peoples money like Labor governments do MICK and you know it. When are you going to be our PM and treasurer, you have my vote and will you be my personal financial adviser please.?
    MICK
    5th Oct 2018
    1:49pm
    Really roy? Spoken like a troll on steroids.

    FACT:

    1. Labor (a GFC government) left a debt of $147 billion. Your LNO government has run this up to $600 billion.
    2. Labor produced the NBN so that Australia would not be left in the third world. Your man Turnbull destroyed the project and it cost more than the original price because exchanges around the country had to change their equipment so that it worked.
    3. Labor did not hand out OUR money to the top end of town. The Turnbull government did via personal tax cuts. It then tried for another bite of the cherry with company tax cuts to benefit the same well heeled doing really well rich Australians who donated money to the Liberal Party to help get it into office.

    So labor spends our money? No roy....you and your wicked government do that and have NOTHING to show for it at the end of the day. The LNP NEVER creates the real changes in our society because its only interest is in handing money to the top end. Labor achieves real outcomes. For that it has to have lying dogs demonise it. Go for it!
    roy
    5th Oct 2018
    2:59pm
    Wow, MICK, me on steroids, I just don't know where you get the energy from to post on here day after day ad infinitum on all subjects. You are almost invariably the first to post, just what tablets are you on?
    How much are the ALP paying you as their top troll?
    *Loloften*
    8th Oct 2018
    6:39am
    I'm with u Mick even tho' a swinging voter - far prefer the current ALP's policies to the never-ending smirk of ScoMo (helping his rich mates & himself) - reminds me of "smiley" Joe Hockey sitting on a porch smoking his expensive Cuban cigars, drinking the most expensive whiskey subsidised by we tax payers & yes, even pensioners are tax payers thx to LNP Howard's GST on almost everything we need!
    Grob
    5th Oct 2018
    12:06pm
    And, of course, no article published by this organisation will ever criticise a Labor policy but.....
    The biggest problem I and many of my friends will have is when Mr Shorten is elected, all of us relying on franking credits to make ends meet will be really up the proverbial creek!!
    OlderandWiser
    5th Oct 2018
    12:32pm
    Shorten has already said no pensioner will be affected.
    I don't trust Shorten or Labour & don't trust the present government either. In actual fact don't trust any politician or party or independent.
    OlderandWiser
    5th Oct 2018
    12:36pm
    Quote "More than 300,000 low-income retirees will be spared from Labor's plan to scrap cash payments for excess franking credits after the opposition amended the policy to exempt full and part-time pensioners, as well as every pensioner who is currently a recipient from a self-managed superannuation fund."
    https://www.afr.com/news/labor-spares-300000-pensioners-in-33b-policy-backdown-20180325-h0xy8t
    Paddington
    5th Oct 2018
    12:39pm
    Mr Shorten is not going to take your franking credits. How many times does it have to be said.
    Not all politicians are evil BB as most enter parliament wanting to make a difference. They have families too and they have things they care about.
    We personally know some running in the next election and they are sincere in their endeavours to make things better for many people who are doing it tough.
    They care about the environment and the children suffering on Nauru.
    Join one of the parties if you want to make changes and voice your concerns.
    Old Man
    5th Oct 2018
    12:41pm
    Weasel words from Shorten, Billy's bonkers. What is his definition of a "pensioner"? He won't answer the questions put whether SMSF which also use franking credits will be exempt nor will he tell those who ask if he will exempt those on a part pension.
    roy
    5th Oct 2018
    12:50pm
    Don't call him Mr Shorten, he is Shifty Shorten and not to be trusted.
    He would make a very good used car dealer and that's about all.
    OlderandWiser
    5th Oct 2018
    12:56pm
    Well Old Man Labour are full of BS, LNP are full of BS, Wouldn't trust Greens or Hanson or any other pollie so who ya going ta call heh.
    MICK
    5th Oct 2018
    1:04pm
    Grob and the other trolls - you guys are pretty despicable as you NEVER make such statements about YOUR right wing media. When Murdoch publishes attacks on Labor that's ok. When 7 News runs night after night Morrison grooming sessions that's ok. When 9 News' Overton sneered at Shorten for going to Tasmania to thank voters and said "doesn't he know the election is over" during a news broadcast that was ok too.

    Apparently ANY attack on Labor is ok but you cannot do the reverse. We certainly need MEDIA ANTI-PROPAGANDA LAWS to stop this and retain our so called democracy. But if course the above voices of the government believe in 'rules for them and (different) rules for us. And you wonder why so many Australians hate this government with a passion never before seen in this country, at least not in living memory.
    Old Geezer
    5th Oct 2018
    1:24pm
    With 2 million people over 65 not on the pension it has been estimated that Labor's franking credit policy is the last straw and 25% or more will just do what it takes to get the pension to keep their franking credits.

    I'll give you example of how stupid that policy really is. This really does my financial head in.

    A couple have $1 million in assets and they have $700,000 invested in shares paying $53,000 in dividends attached to which is $15,000 I franking credits giving them a gross income of $50,000.

    Now they can have $848,000 in assets and get a $1 of the OAP. Let's make that $850,000 for this exercise.

    Under Labor's policy they lose $15,000 of their $50,000 income leaving them $35,000.


    Now if they spend $150,000 of their cash on world trips and home renos their assets are reduced to $850,000 so they get the OAP and keep their $15,000 giving them a income of $50,000.

    Now by spending $150,000 they are still earning 10% pa on it but it doesn't exist.
    Old Geezer
    5th Oct 2018
    1:36pm
    Grob I'm left wondering how anyone is going to work out who gets their franking credit back and who doesn't as it will be nightmare to police this legislation. They are having enough trouble policing super at the moment as it has so many loopholes it leaks like a sieve.
    MICK
    5th Oct 2018
    1:54pm
    You crack me up OG. It must be Friday.

    First YOUR government pushed retirees off any pension by pushing down the threshhold (assets test). Then it tries to push retirees out of their homes to downsize and live off the proceeds.

    Australia has the worst pension system in the first world. Other countries pay a pension. It is the right of citizens. Not here.

    Please do tell Labor, Labor , Labor. On deaf ears until you stop taking payment from this government for you propaganda. I guess that's a part of the reason this government has run up such a large debt. Paying thousands of posters to post lies and deceit so that the next election is winable and so that the brain dead will vote against their own interests. What would the rich do without stupid folk to keep handing them money!
    Anonymous
    5th Oct 2018
    1:58pm
    Labor took away Universal Pension
    Raised pension eligibility age to 67
    And now wants to make the whole middle class go on full pension just to keep their franking credits and have a decent retirement

    Labor - the enemy of the middle class
    Old Geezer
    5th Oct 2018
    2:04pm
    Mick we have the third best pension scheme in the world the Brits have the worse with NZ universal one not far above them.

    Those who giveth taketh away too.

    LNP just scrapped their plan to raise the pension age to 70 because Labor will do it for them anyway as they were the ones who raised it to 67.

    I am actually going to enjoy a Labor government in power as personally I see it as a licence to print money as their are going to be so many disasters where I can pick up assets at fire sale prices.

    However I do fear for the country and our economy and those who will lose when things go pear shaped with GFC2 just around the corner too.
    TREBOR
    5th Oct 2018
    2:19pm
    If taxation is applied correctly to all dividend imputation as part of gross income - those on low income would lose nothing... there would be no difference IF the rules of taxation on income are followed properly.

    Even having this argument indicates to me that there is something not right about the current handling of DI by the ATO ....

    Income is income pure and simple, and allowable deductions for costs etc are part of the deal.... why is there such a problem with dividend imputation?

    Is it because the fat cats are rorting it by artificially writing down their income so they don;t pay tax?

    That indicates - to me - that changes are required to allowable deductions and closer scrutiny needs to be applied by the ATO.
    Old Geezer
    5th Oct 2018
    2:36pm
    Trebor you are having so much trouble understanding dividend imputation because Labor's policy on not refunding them makes little sense as people have the expectation that Labor looks after the battler. This proposed policy looks after the wealth and screws the battler and the middle class. If it only affected the wealthy you have to ask yourself the question why are pensioners now exempt? Are pensioners wealthy? No.

    If you can define income then you are one step ahead of the ATO because they have to issue rulings on whether something is income or not. If I make money buying and selling shares it is capital gains unless the ATO deems me a trader. It is then income. There are no rules on what makes a person a trader so you have to submit you case and get a ruling from the ATO.

    The best way to understand imputation credits is the make the investor a quasi employee of the company. He is then paid a wages (dividend) and tax is taken out (imputation credit) and sent to the ATO. If that quasi employee pays too much tax he gets a refund. Hence imputation credits are refunded.
    Anonymous
    5th Oct 2018
    2:53pm
    OG - best to ignore Robert
    He is incapable of understanding imputation
    To him double taxing an owner of a listed company is Ok but double taxing an employee or a sole proprietor or a partnership is not
    Idiot doesn’t realize it’s the pensioner and low income who will be affected
    Old Geezer
    5th Oct 2018
    3:21pm
    Olbaid what worries me is that we have people like this voting for things they don't understand.
    TREBOR
    5th Oct 2018
    5:04pm
    I understand imputation fully - the only bit I don't get is why it should exist at all other than as a life preserver for 30% of investors dividend money in case the company goes belly-up.

    No other reason in the world for it to exist.

    If tax paid is the same with or without, the ATO for one does not need the headache of trying to work it all out, not with reduced staff and affirmative action staff they don't. Just pay your own taxes and be done with it... easier all round unless you are using bolt-holed to hide income.
    TREBOR
    5th Oct 2018
    5:07pm
    You're not an owner, diablo - you're a shareholder, as you will find out if a company collapses and you are at the bottom of the heap.

    As an 'owner' = shareholder do you get to go in and check how your company is running, diablo, and do you get to make decisions on how it is run etc? ONLY the majority shareholders are in that spot.... and it is they who are the owners of the business while you are just a walking ATM.
    TREBOR
    5th Oct 2018
    5:11pm
    Not sure if it's 'weasel words' or poor salesmanship from Shorten - but a politician's utterances are well tried in the smoke-filled back rooms with henchpersons trained in obfuscation before they uttertheir words.

    I've pointed and agree that Shorten's use of 'pensioners' was a pretty poor statement considering the number of relatively low income SFRs.

    Why not just apply the rules of income tax to all... company pays its tax, individual pays his/her tax, no DI, no return of DI without question, no arguments, less chance to squirrel away income and pretend it's not there while you spend up big.
    TREBOR
    5th Oct 2018
    5:18pm
    diablo - oh, diablo - do you really think you are an 'owner' of BHP Billiton because you hold shares? Their shares are worth $35.08 and they return $0.63 annually - as someone said about the banks - it is unconscionable that they use your money as they choose and give you a pittance in return - while the REAL owners - the big boys, get their board position and so forth and salary and perks as well...

    Just lost in the big world, huh? Tch, tch ..... dreamers on all sides.... I don't recall the Navy offering me a free ride on a ship paid for out of my taxes... any more than BHP offers you any more than a pittance return on your money.

    But we're all owners, eh?
    Old Geezer
    5th Oct 2018
    5:37pm
    Trebor if shareholders don't own BHP who in the hell does?
    HDRider
    5th Oct 2018
    12:19pm
    I think you would all benefit from logging into the investsmart and Morningstar website talk to an investment manager from there and look at what returns they can give you even via a monthly income!
    The share markets constantly outperform the cash rate. These funds have a lot of cash in them so it is likely you will do quite well. I know my shares continually outperform cash rate etc. Just saying
    Old Geezer
    5th Oct 2018
    1:28pm
    This years good performer is likely to be next years poor performer.
    HDRider
    5th Oct 2018
    2:25pm
    That old geezer is why the dilemma my friend! When you are in a large fund, (multi millions) one bad apple or two doesn't make a lot of difference. You pay the guys to invest and they have a damn good reputation.
    I just compared my shares income to a friend who has their money in the bank , no comparison, I won hands down with the same amount of money.
    Share market history is an interesting subject. While a share price may go down it will still pay a dividend or reinvest cheaply, the price will surely go back up after a while with more chips.
    That's why I would use one of the bigger professional funds.
    Old Geezer
    5th Oct 2018
    3:03pm
    No Always HDRider. In the early 1990s I was earning 17% plus on cash in the bank.

    However you are rights shares and property over long term will earn a lot more than cash will. Cash to me is a bad investment as most years after tax and inflation you lose money.

    I tend to be fully invested in shares when share prices are low and divest out as prices rise. Today I have more cash than I have ever had for the simple reason I can't find any real bargains in the share market. In markets like we have at present professional fund managers may outperform me but my fear index rises as market rise and it falls as markets fall.

    I used fund mangers back in the 1980s and after seeing the mess they made of things back then I have never used them since.
    Misty
    5th Oct 2018
    12:20pm
    Can't you people who have enough finances enjoy life instead of whinging on this site, at our age we don't know how many years we have left so lighten up everyone, at least you are still alive and kicking, try to find something to look forward too each day and life will be good.
    Paddington
    5th Oct 2018
    12:32pm
    I was just thinking the same thing Misty! It seems to be a problem that people who have nothing don’t have. Count the blessings you have like what you are able to do each day. If you can manage to pay your bills, it gets a tick. If you can see the world around you, it gets a tick. If you have loved ones, it gets a tick. And so on and so forth.
    Nan Norma
    5th Oct 2018
    12:45pm
    What you are forgetting Paddington and Misty, is that if we we just sit back and accept all the gouging from government its only going to get worse until they have taken everything from the people that worked and saved for their old age.
    Old Geezer
    5th Oct 2018
    12:58pm
    Finance is what keeps me looking forward and alive.
    MICK
    5th Oct 2018
    1:08pm
    A good thought misty but it is apathy and blatant propaganda which keeps this sort of government in power. Whilst it is there working class people will be fair game and the little they have will be an ongoing target. A bit like putting the wolf into the hen house. The results are already there: tax cuts and money handouts for the wealthy and new taxes & money ripped out of the services we all require. It won't be letting up.
    Misty
    5th Oct 2018
    1:36pm
    Well Nan Norman you do have a voice, USE IT, ring or email, or do both to your local member of all parties and let them know of your concerns, it is no good everyone complaining on here before the next State and Federal elections and doing nothing about it, get your friends and family involved too, let the MP'S know of your concerns it is the only way we will change things.
    Rosret
    5th Oct 2018
    2:22pm
    Misty this forum is read by more than the contributors of YLC.

    I think everyone has a right to protect what they have. It is rather like watching that advertisement on TV where the checkout attendant bites on the food and stashes some of the chips - like the banks.

    There was a time before they introduced self funded retirement where people retired with an assured income and could just relax and wait for their fortnightly allotment.

    The new generation of retirees have to watch and manage every economic change in the market.
    TREBOR
    5th Oct 2018
    2:31pm
    Hmm - I'll admit it's tough considering a move to an oceanfront and researching for a large-ish boat and considering a new AWD.... haven't quite got the money for that private island .. damn.. had my heart set on that.

    Too much time on the hands, Misty - and you're right.

    You're right, too Nan Norma, Mick - the price of liberty from these gougers is eternal vigilance... sadly they have not the integrity to simply leave people alone.
    Misty
    5th Oct 2018
    2:49pm
    Well that is good news Rosret, all these other people, I don't know how they would manage to read these comments unless someone forwarded them on, but that is beside the point, they too can lobby their State and Federal PM'S to have their voices heard, the more the merrier.
    Old Geezer
    5th Oct 2018
    3:20pm
    There was a time before they introduced self funded retirement where people retired with an assured income and could just relax and wait for their fortnightly allotment.

    In your dreams.

    There was a short window of time where if you turned 70 you were given the OAP for life. However it was taken back about a year or so later. That was hardy enough time to relax at all.
    roy
    5th Oct 2018
    3:46pm
    MICK, are you a champagne socialist, methinks you are, ever on about the down trodden poor and yet off asking in Colorado at every opportunity or spending months driving around Italy,sheesh.
    Paddington
    5th Oct 2018
    6:41pm
    Rosret, obviously this is followed by the party politics because they are on here. There is electioneering going on here. Ha ha. One who cannot spell LABOR e.g.
    Far righters are loud and clear on here.
    Paddington
    5th Oct 2018
    6:44pm
    Nan Norma, it was aimed at the super wealthy on here, the far righters, the knockers, the ones who put others down and name call. Of course you have a right to voice your concerns re this present government. Now, the assistant treasurer has gone over the top with his home internet. We need to yell!
    Old Geezer
    6th Oct 2018
    5:25pm
    That's right there is no YOU (U) in Labor and never has been.
    floss
    5th Oct 2018
    2:46pm
    Sorry roy you are wrong.
    roy
    5th Oct 2018
    2:55pm
    floss, are you saying Shifty Shorten wouldn't make a good used car dealer, I think your'e wrong.
    Misty
    5th Oct 2018
    3:00pm
    Roy and what about Morrison, how many times did he vote against a RC into banking?, and look what that has show up no thanks to the LNP.
    roy
    5th Oct 2018
    3:40pm
    floss, would shifty Shorten make a good used car dealer, yes or not? Don't divert to Morrison, typical Liebor tactic, avoid the question. You are well trained by the ALP.
    TREBOR
    5th Oct 2018
    4:58pm
    Morisson and Shorten - Used Cars To The Masses.

    Shorten and Morisson - Motor Trade Specialists.

    You might have a point there, roy... about Shorten, I mean, not Mick.

    I'm more of a Guinness socialist myself .....
    floss
    5th Oct 2018
    2:53pm
    O.G counting your money keeps you alive try hard work go plant a tree get a life.
    Old Geezer
    5th Oct 2018
    3:09pm
    I actually did plant a tree today too. I also pruned some as well after watering them all yesterday to empty my water tanks. Clean the tanks out and now they are overflowing again today.

    I went down to Bunnings early to today and wanted to get in and out before the crowds. Their shop was open but no one was available to serve me until 9am. I am still shaking my head on that one.
    Anonymous
    5th Oct 2018
    3:11pm
    What ?
    Those OAP’s working at Bunnings to supplement their cruise money didn’t show up to work on time ?

    Must be hung over from spending Centelink money they got on grog yesterday
    Cowboy Jim
    5th Oct 2018
    4:16pm
    Keep going to Bunnings people, my wife still has a few shares and guess what - she does not bother with the claim on tax fully franked dividends. maybe not enough of them?
    Old Geezer
    5th Oct 2018
    4:21pm
    There currently in a trading halt too.
    Cowboy Jim
    5th Oct 2018
    4:26pm
    OG - just checked! They have closed at $49.57 at 4 pm - no trading halt. Called Wesfarmers not Bunnings.
    Old Geezer
    5th Oct 2018
    4:28pm
    It would take about 2 minutes to claim back franking credit through your mygov account. I did that for a couple a few days ago.
    Old Geezer
    5th Oct 2018
    4:30pm
    Cowboy Jim Wesfarmers were in a trading halt earlier today until the 9 October or until announcement was made. Looks like they have made the announcement to get rid of Coles to their shareholders.
    TREBOR
    5th Oct 2018
    5:00pm
    Doomed if you do - doomed if you don't. Interest rates as a control over the economy has too many effects.

    I'm going back to looking for an ocean-sized boat...
    TREBOR
    5th Oct 2018
    5:22pm
    Ho, hum - as usual one or two here bring the discussion down to personalities and personal comments.

    Let's try again, just to help you out of that delusion, diablo - let me slam dunk you.

    Nan Norma puts her money in the bank to earn a few dollars - does she 'own' the bank? Does she not have to pay tax on dollars earned regardless of what the bank pays?

    You put money into BHP to earn a few dollars - - does that mean you 'own' BHP? Do you not have to pay tax on dollars earned regardless of what BHP pays?

    You see what I'm getting at here?

    Ho-hum - awaits the reply - I know you can go on and on without ever striking a blow.... must be pure self-interest, which means you are getting something for nothing and feel you are entitled to it.
    TREBOR
    5th Oct 2018
    6:46pm
    Phase II:- Let us know how the trip went next time they fly you on the private company jet, hand you a hard hat, and let you stride your holdings like a Colossus.. maybe you could do a Gina with 'your' company ownings.... I'm sure when Gina does her stroll with the cameras everyone knows who owns the company....

    Then you could tell us that Australian workers cost you the earth and you could get Africans for $2 a day - trouble is - all your resources are in Australia - so no Africans.... sad, innit?

    Phase III:- Perhaps you are confusing the tax paid by the company on your behalf for tax paid by the company on behalf of the company ... just a few misplaced words there, innit? Just tax withheld in advance, same as PAYE earners have tax withheld....it's not part of company tax liability - that's an entirely separate issue.... so you are trying to confuse the simple issue by now claiming that shareholders and company are one and the same......

    No - they are not - they are separate legal entities..... and each has a responsibility to pay tax as due.

    And since you are obliged to include that withheld tax in your gross income.... there should be zero difference if it's paid in advance by the company or not..... at the end of the day your tax liability will remain the same.

    Ergo - why have it all if it causes so much trouble and confusion to shareholders? We know the answer to that, don't we? Wouldn't be 'tax effective' if it were done strictly by the book, eh? How could it possibly be 'tax effective' unless some of that ready was being 'lost' along the way?

    Or are you confessing to the general public here and now that the ATO is not treating that withheld tax as part of your gross income and is merrily just paying it out without due consideration for the rules?
    Old Geezer
    5th Oct 2018
    9:11pm
    Trebor I had donned on a hard and toured a BHP mine 3 or 4 times now. The traffic lights in one of their underground mines blew me away too.
    KSS
    5th Oct 2018
    8:02pm
    With banks raising interest rates out of step with the Reserve Bank why are you blaming the Reserve Bank for low interest on savings? When the Reserve Bank does raise rates, do you seriously think the Banks will follow on savings accounts?
    Old Geezer
    5th Oct 2018
    9:06pm
    Saving bank interest at 2.5% is already 1% above the cash rate.
    Paddington
    6th Oct 2018
    4:43pm
    Putting things into perspective....we advertised a free mattress today suitable for camping e.g. and a guy came and collected it. He told us he would be using it until he could afford a better one. A while back we sold a portable cot and the young lady who came to buy that came with coins. People on here are much better off than these two souls. So much complaining about first world problems.
    Centrelink do not count clothes and normal things in their assessment of your wealth. There was exaggeration there. You write down what you would get selling them and believe me you don’t get much for most things. It is not replacement value.
    LNP are not liked at the moment so stop electioneering for them! It is too obvious.
    Old Geezer
    6th Oct 2018
    5:23pm
    Done those sort of things myself for years now too so you cant judge a book by it's cover.

    Who is electioneering on behalf of either party? Not me.
    Misty
    6th Oct 2018
    5:57pm
    Well OG you could have fooled me, you and a few others here are certainly throwing mud at the Labor Party and trying to promote the LNP, good luck with that effort, I don't care who votes for who, they all have their +'s and -'s, I will see how things pan out closer to the election.