Good retirement talk
Posted: Fri Dec 04, 2020 5:27 am
The other guy then says yea, there's 3 million people who've retired and are depending on income from SAVINGS ACCOUNTS, so they want the rates to go up. As if this were 1900 and all you had was a bank passbook! And they thought they'd have some left over to pass on to their kids! Yikes. Multi-millionaires could probably afford to do that, like someone with 5,000,000 AUD in the bank withdrawing 50,000 AUD (1%)... it seems like, once again, normal people are trying to emulate what extremely wealthy people do and it's breaking them off.9:51 "Low rates are really scary, because it means you got high employment, low growth in the economy, no inflation, and a lot of business decisions work in high inflationary times, they cover up a lot of mistakes. . . However, I think the people in an accumulation phase, and still contributing, are in the strongest position through this, as opposed to someone in a pension fund who's mostly in cash."
I did like it when he said that all the heavy lifting has to come out of your household budget. Harry would have said the same thing.
18:20 (After a discussion about how real estate investors are doing so badly) "It looks like we've spent the last 10 years, maybe 20 years, where everybody with reasonable equity in the house they're living in has gone and used that equity to go and buy an investment property and they negatively geared it."
I get the feeling that these two are pissed that buying a house and keep all your money in a savings account doesn't seem to work anymore.