Quote:
Originally Posted by Miaplacidus
I put this in the other thread, but it seems more appropriate here:
Well, the best Christmas present I ever gave was last year when I made the effort to set up my 16 year old’s super fund and gave him a job so he could put $1000 into it. Not only that, but because of the stock market rout I told him to delay putting in any money until June. And then in July he does his tax return and the government tops up his super with $1500 co-contribution. And so now he sees what a great lurk this is and is bitten by the saving bug.
So to all you tax-payers out there, I just want to give you all a big, sloppy kiss and say thank you for my son’s Christmas present last year. And to let you know that you are probably going to do the same thing again this year.
Think about it.
Many happy returns, everybody.
Brian.
………….
For anyone thinking of maybe doing the same, here is a quotation from “Wake Up To Wealth" by Harold Bodinnar. (Not a book I would necessarily recommend, by the way.) This is from the foreword by David Koch.
“Let me tell you about two average Australians.
“One invested $2,000 a year from age 19 to age 25, then stopped investing any new money and just left their nest egg sitting there earning 10 per cent a year (mixture of growth and income). In total $14,000 was invested.
“The other average Australian started investing $2,000 a year from age 26 and kept adding the same amount to their nest egg every year until age 65 earing 10 per cent a year (mixture of growth and income). In total $80,000 was invested.
“At age 65 the nest egg of our first average Australian had grown to around $930,000... a 66-fold increase on the amount they invested.
“At age 65 the nest egg of our second average Australian had grown to around $893,000... an 11-fold increase on the amount they invested.”
I.e. start early.
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Works fine IF you manage to stay in the workforce for your entire working life , something that is becoming harder and harder to do .
Most people can look forward to periods of unemployment (which can last years despite their looking very hard to find a replacement job) as it all too easy for companies to retrench their employees as their first course of action if there is a downturn or their profits fall - so much for company loyalty). Gone are the days when you could realistically expect to stay with the same employer for even 20 yrs , let alone 30 or 35 yrs , and few manage to stay long enough to build much of nest egg or even be able to take long service leave.