How many of you live paycheck to paycheck?

[mkrishnan]

I originally stated that for any country that has a reasonable pension-style system (i.e. not the US), 1M USD in retirement funds for someone 45 is not unreasonable at all. Whether AUS has a reasonable system (like Germany) or an unreasonable system (like the US), or is somewhere in between, is a different question.

Sorry, I quoted only you and should have quoted Ca$hflow, to whom I think you were responding and who was talking about Australian individual assets.

I think a well-funded, national pension system (where a person has a single account that follows them, rather than a clutter of rollover accounts from the employers they've had) is the way to go, personally. It should have a reasonable risk model, and I think it should primarily be designed so that an individual's contributions pay out to them / their cohort (rather than the pyramid-style model where the current working cohort is paying the benefits of the retired cohort).

The reasons I think this are: 1) it maximizes labor mobility, 2) most people aren't good risk modelers, and it resolves the 401k volatility in the US, and 3) with a prospective kind of investment model as above, it should be sustainable.

Irrespective of what Australia does or doesn't have, I'm guessing we probably agree more than disagree?

 

[Gregg2]

Pretty sure he means a charge card (funds due at end of month).

Thanks. That's a new one to me.

 

[toolbox]

I had to a few months a go, times got tight with my finances however i have a nice buffer now so i don't need to worry about getting paid