Thursday, August 11, 2016

Kitchen Bragging

I had thought of putting photos of our new kitchen on my Face Book page for family to see, but I am not going to. It is not that I don't want to share the new kitchen or brag, but with Tradie Brother unemployed and after working so hard for so long and now seemingly not wanting to work, he doesn't have an excess of money. Later edit: He is now working again but as a contractor.

Ex Sis in Law and her husband, Tradie's Brother's ex wife, is now living in her son in law's father's garage (slightly better than a garage) after walking away from their business. I work hard enough, putting in long hours at work, but they have too. What is the difference? Later edit: They moved back into their home that they had rented out and have now sold it to cover debts.

R has always encouraged me to do something different, a different job. Experience new things. Meet new people, rather like he has done over the years. I haven't. I have stuck to the same job for 37 years and I plan to be there for another three to reach the symbolic 40, plus a few more months to take me into the next financial year that will help with the tax I will have to pay after I leave work. R wants me to stop work now, so that we can 'do things'. R is very set on spending his money and leaving nothing for anyone. I am very set on making sure I have enough money for my old age so that I can maintain my lifestyle once I am not working. While I don't really have savings, my superannuation is very good, thanks to the Victorian Cain Labor government in the early 1980s. No thanks to the evil Dictator Premier Kennett who offered me thirty pieces of silver to quit my super and go into a performance based fund. Many did and now regret doing so.

R tells me I can live on $30,000 a year. Umm, so if I can live in $30,000 a year, where does the rest of my wages go? To a smaller or greater degree over the last few years I have paid for many things for R and my goodness, haven't we spent money in the last few years with holidays, appliances, technology and household stuff.

If I retire as planned, I will be 61. I won't be able to receive the old age pension until I am 67. I have only seen a general preliminary advisor at my superannuation company and when I asked if I will have enough money to retire at the age of 61, she smiled and said in a knowing way, yes.

Worst case, we could sell the very valuable highrise and move to something more modest, but I feel like where I live now is the reward for my lifetime of work.

If you are in Ethiopia and starving but still have a mobile phone and can read this, yes, I don't expect you to waste too much time troubling over my issues.

15 comments:

  1. I can say honestly, that I wish I had known about super and saving for retirement much earlier than I did. I was so very ignorant about money matters, and people can say, "why didn't you ask?", but when you don't know there's anything you need to be asking about, you just don't ask. The only thing I learned over the years was never live on credit, never go into debt.
    I can see why R would like to be spending his money, he's worked hard for it and now would like to enjoy the spending, and that's fine as long as he also keeps enough to see him through his elderly years. I commend you too, Andrew, for making sure you have/keep enough for a comfortable retirement.

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    1. River, that is how it was. The way women were treated, as a limb of their husband was very wrong. While women's situation is still not right, it is a lot better now. Proud sounds possessive, so I won't say that, but I think you have done a good job of bringing up children and now have sorted your own life out as an independent person, beholden to no one really.

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  2. Once the financial issues involved in retirement have been sorted, most people relax and think there is nothing more to worry about. For me, planning the roles and responsibilities for the rest of life is much tougher.

    Will you play sport?
    Work for charities?
    Spend more time with the family?
    Travel more, at home and/or abroad?
    Go to classes at U3A?

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    1. Good work, Hels. I will probably do all of those with the exception of sport. Once you and I retire, we can meet up at meetings of the St Kilda Hysterical Society and then enjoy a good coffee at one of the fine places near the library.

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  3. Andrew I have to work to 63 as a teacher so your situation is better. But three years a long time ..

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    1. Gosia, I will have to provide for myself though. It is my money and my superannuation I will have to live on until I can get the government pension at the age of 67.

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    2. We shall hope the government pension is still available then. The way they keep raising their own obscene pensions, there might not be much left for the rest of us.

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  4. I was surprised to see 67 as your retirement age. I assume you have something similar to Social inSecurity we have in the US, thanks to Franklin Roosevelt, a Democratic president in the 1930's. Republicans (convervatives) are always saying we, the workers, feel like we're entitled to it. It's our money, taken out of our pay every week and matched by our employer. Ronald Reagan, a Republican, moved out the full retirement age in the 1980's. In my case, born in 1956, I could not receive full benefits until I'm 66 yrs + 4 months. It increases as your birth year increases. I'm taking it at 62 thank you very much, at a significant reduction of benefits. I look at it this way; I'm going to die on X date. Waiting to take my social insecurity later is not going to move out my date of death so I'm taking it asap. I'll collect it longer so the overall amount I receive will be same as waiting to collect full benefits. I never had an employer who provided a pension. What I have saved is my money also saved every week. One employer matched 1% up to 2% contribution from me. Can you imagine how cheap...a lousy 1% match. Sure, I'm grateful for the 1% but I saved many times more than that every week. My current employer gives us nothing, no match, so I didn't know how good I had it. HAHAHAHHAAH
    But, I invested it and eventually bought a guaranteed annuity which I will start collecting soon. I should be OK God willing and the creek don't rise.

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    1. May I call you Carl? There is no retirement age in Australia. You can get the government pension at the age of 65 now. By the time I get there, it will be 67. The pension is paid from taxes. Superannuation just tops up your pension if you have retired, or can be income if you are in a good scheme. Our employers contributes something like 9%, but perhaps soon to increase to 12% towards our superannuation, which was a trade off for a pay rise in the distant past.

      Never mind God, the creeks not rising is a great expression.

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  5. You are a responsible player in life. Here the government employees in Oregon get a retirement system known as PERS with a guarantee return rate on investment at 7.5% which has not been achieved for a decade, so the taxpayers must make up the difference. Right now, I guess the state is bracing for a many many billion dollar deficit in the PERS system, which the taxpayers must somehow cough up. Changes to PERS which is sucking the state down the drain hole, have been struck down by the supreme court. The employees are required to put NOTHING into their own retirements. Meanwhile private sector retirement accounts, all relying on investment funds (the market) since interest rates are too low to accrue savings in banks, plus employee contributions, flounder or vanish when a company goes under. And Nobody making under $20 an hour can save much if they have a family.

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    1. Strayer, my scheme is not dissimilar to the guaranteed rate you describe. It is a prescribed amount, depending on length of service and employee contribution. The private sector retirement accounts are rubbish, both here and in your country too, it seems.

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  6. I'm same as you Andrew, been with same employer for just over 35 years now. Friends always said how could you stay at one place for so long. I'm the one laughing now, as employer super fund has done me good. Will retire next year at 62yrs with a defined benefit pension of $42,000pa indexed twice a year and lump sum nearing $550,000. Now friends understand why I stayed.

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    1. Allan, you have done exceptionally well. No government pension for you then. See, the government is often better off by these fairer older schemes.

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  7. I recommend retirement Andrew. Very much so. Of course I am blessed with prosperity, the consequence of the vision of my parents whose lives were spent ensuring their only child would not have to struggle as they did. If I may be so modest I would add that my own history of stable employment and savings contribute also to my current comfortable situation.

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    1. Victor, you have worked for most of what you have and that is to be respected. I expect your superannuation, if they called it that then, was quite good too.

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