Millionaire Pensioners

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Millionaire Pensioners

Postby Chuck » 12 Jul 2019, 19:44

I’ve had a few drinks tonight and am in a shit stirring mood.

My inspiration is from comments made by a poster from a different political web site.

The poster inferred that a couple who receive the full pension from the govt. are actually receiving a greater income then can be achieved from investing a million dollars

To receive a similar return with such safety and no risk involved would need to invest in the unachievable deeming rate account.

So the inference is that these pensioners receive a millionaire's income

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Re: Millionaire Pensioners

Postby HBS Guy » 12 Jul 2019, 20:00

Think the pension is a bit under $20K? Assume $20K.

If the millionaire did something wet like keep his money on a bank account paying say 2%PA then he earns $20,000. That is the same as the pension. But millionaires don’t become millionaires by being stupid. Besides, the millionaire would have to pay tax on his $20K, not something millionaires like to do!

Money market, futures markets etc etc offer him a much better return.
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Re: Millionaire Pensioners

Postby Chuck » 12 Jul 2019, 20:34

HBS Guy wrote:Think the pension is a bit under $20K? Assume $20K.

If the millionaire did something wet like keep his money on a bank account paying say 2%PA then he earns $20,000. That is the same as the pension. But millionaires don’t become millionaires by being stupid. Besides, the millionaire would have to pay tax on his $20K, not something millionaires like to do!

Money market, futures markets etc etc offer him a much better return
You got ur figures wrong for a couple on a full pension.

They may have achieved their wealth before retiring but the general advise from financial advisors is that once u retire u need to be risk averse.

That implies investing in term deposits which pay less then the deeming rate and isn’t as secure as a govt. pension.

The closet secure investment to a secure pension would be getting the deeming rate from the govt.

Even if u invested $1mill with the govt. at the deeming rate, it would still be lower then a couple on a full pension

U need to compare like for like or something closet to the security of a govt. pension.

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