This is why you need to build your own nest eggMay 12, 2020
I’ve lost count of the number of pension scandals we’ve seen in Britain over the years.
The repeated malfeasance left me inherently sceptical about relying on someone else to secure one’s retirement years.
If you don’t learn to make money for yourself, to paraphrase Taleb, then eventually you’ll rely on someone else to do it for you…and probably when you can least afford to.
Of course, it doesn’t necessarily follow that you’ll be the victim of a pension scandal.
And no doubt the vested interests will be out in force to bellow at me about how great the system is, and why they’re the nonpareil, and so on.
We’ll just have to agree to disagree on that one.
But please do your own sleuth work here, because the facts tend to quietly speak for themselves.
I’d always encourage people to do their own research into what retirement might look like if they rely on their super and the Age Pension from public authorities.
Here are some questions for you to consider:
-what’s the average pension balance at retirement?
-how much is the government pension per week, and could you live comfortably on it? (assuming it’s still in place and available to you when you reach your retirement date)
-how much in fees have you paid to pension fund managers over the years? (it’s often all but impossible to work this out, since the fees are hidden in the small print)
-how much in fees is paid by super funds each year? (it was an absurd $32 billion in 2018, with investors handing over 1.23% of their account balance on average…and for what?)
-has your pension fund delivered better or worse returns than the market over the years?
-how long have you been in the workforce, and what’s your pension balance to date?
I believe in taking control of my own finances and not outsourcing responsibility, or relying on the government (or anyone else) to secure my nest egg for me.
I’ve seen the pension and welfare system fail far too many people over the past 40 years, including some of my own family members.
The problem with so many ‘long-only’ pension funds is that your money is lumped into a bucket with little or no consideration of your personal circumstances.
As such, the market heads north, climbing the wall of worry for a number of years through the cycle…and then it suddenly plunges all the way back down to where you were a decade earlier.
‘Just hold on for the long term, and it will be fine’ they’ll then say, while continuing to collect their billions of dollars in fees.
Far better, in my opinion, to build your own nest egg and pipelines of passive income, instead of relying upon the whims of others.
I discussed some of these ideas a little further in the short video here
Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:
- Boom or Bust in 2021 – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here
- Subscribe to our Top 100 Podcast for Investors
- Join our Implementation Program
We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.
- Work with me privately
If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!