Last week the consulting group Deloitte ……. analysis of how long after retirement retirees’ nest eggs would last that was the most profound aspect …..it showed that retirees living “comfortable” retirement lifestyles would run out of superannuation money after just 11 years compared to those that opt for a “modest” retirement lifestyle who would see their superannuation last 30 years.
Read more at Financial Standard – Cognitive function, consumption biggest SMSF risks.
This is the first time I’ve seen this obvious issue raised, but it’s an important one. Without numbers it is hard to be specific, but the overall sentiment is correct. I’ve been [SMSF] retired for nine years, starting out with just under $ 2million. Having let financial advisers play with it for three years in a can’t-go-wrong buoyant market saw it grow faster than I consumed it. But thanks to Bill Clinton’s letting slip the dogs of banking (and no one foreseeing the world-crushing disaster it would create) I lost over a third of it while my advisers stared rabbit-like into the headlights. I’m still reeling [not dancing] from that single event. The irony, now that I wholly self-manage is that I no longer trust the market, which always seems to be teetering on the brink of another collapse, no doubt fuelled by my inherent risk averse nature. An application called Incredible Charts helps keep my head above water, but I’m getting older, and treading water is tiring. The fundamental problem with retirement (self managed or otherwise) is you don’t know how long you’ll live.
yes jaweh I too suffered the GFC and my SMSF got smashed.ON finanicial advisers I do not believe in and never used,they do not know the market and the fluctuating conditions which drive it.
SMSF is the way to go as it feels a little better to me to lose my own money making my own decisions right and wrong.
The saving grace in investing is diveristy as all the books preach and having rental properties outside of SMSF keeps a steady income always providing cashflow and keeping pace with inflation.The share portfolio provides growth and a little trading and taking profits is NOT a sin.
Read Marcus Padley’s “Stockmarket Secrets”