I think that was the point of this thread - when opulence is bought with borrowed money, it ultimately has to be paid back. But that responsibility falls on our children in this case. We get the party while they get the hangover.
You think that the POINT of a thread entitled "69% of Australian Retirees expect to leave a very significant inheritance to their children" is that the kiddies are gunna be deprived???
I can only 'think' you are operating from some sort of biased perspective. Which abrogates you in your mind from any responsibility for paying ANY attention to detail? Or truth??? - I also 'think'.
Each new generation will live longer than the one before it. So what, good for them.
You are obsessed.
Lonjevity has been increasing since 1800, correct, however it has increased significantly since 1940 and it just may level off at some stage, obesity etc.
“Population ageing is unprecedented, without parallel in human history...Population ageing is enduring: we will not return to the young populations that our ancestors knew...Population ageing has profound implications for many facets of human life.” “Social Security remains in a period of permanent cash deficits, with slower economic growth moving the looming bankruptcy date up to 2033. When its trust fund is exhausted, seniors can expect a 25 percent cut in their benefits.” 9 A 2002 united Nations report 8 states that: underfunding of retirement is a global issue. We have seen the problems in europe and the need for severe austerity measures including the lifting of the retirement age and the reductions in age pensions in some countries. In the united States it has been noted that: “More attention to longevity risk is warranted now, given the potential size of these effects on already weakened public and private balance sheets, and because the effective mitigation measures take years to bear fruit. Governments need to acknowledge their exposure to longevity risk; put in place methods for better risk sharing between governments, private sector pension sponsors, and individuals; and promote the growth of markets for the transfer of longevity risk.” 11 In Australia, this problem is well understood and policymakers have been focused on the issue for a number of years. treasury’s Intergenerational report 201012 identifies the future increases in Commonwealth Government spending (expressed as a % of Australia’s GDP) from our ageing population, especially in the areas of health costs (from 4% to 7% of GDP) and Age Pensions (from 2.7% to 3.9% of GDP).
I wouldn't have said that's how it's working in this case though miw. The whole idea is that assets do not get passed down - they are flogged off in order to fund a lavish retirement.
According to Pauk's mind.
But just assuming Pauk is correct, Are you saying that when the asset gets flogged off, does it
a) get flogged off to someone older? b) disappear into thin air? c) become part of the asset holdings of a younger generation.
Of course it gets passed down one way or another. Dead people cannot own assets.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
But just assuming Pauk is correct, Are you saying that when the asset gets flogged off, does it
a) get flogged off to someone older? b) disappear into thin air? c) become part of the asset holdings of a younger generation.
Of course it gets passed down one way or another. Dead people cannot own assets.
acoording to MY mind?...lol
a) they get reverse mortgages from Centrelink b) they stay in their homes c) there will be very little left for the following generations and that is not a huge problem as the youngetr generations are paying super for their entiore working lives.
a) they get reverse mortgages from Centrelink b) they stay in their homes c) there will be very little left for the following generations and that is not a huge problem as the youngetr generations are paying super for their entiore working lives.
Wrong. Everything gets left to coming generations. Dead people don't own assets.
There is no way to consume future production in the present, and if you don't consume something, someone else will.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
You think that the POINT of a thread entitled "69% of Australian Retirees expect to leave a very significant inheritance to their children" is that the kiddies are gunna be deprived???
I can only 'think' you are operating from some sort of biased perspective. Which abrogates you in your mind from any responsibility for paying ANY attention to detail or truth??? - I also 'think'.
Herbs The Lucky generation did intend to leave an inheritance. It was part of their DNA. No argument there at all, however that attitude is and has changed in the boomers.
"National Centre for Social and Economic Modelling researcher Marcia Keegan says that, contrary to popular belief, only a minority of boomer households own shares or investment properties that could be passed on. Many have superannuation balances and own their own home, but longevity and more active lifestyles mean much of their retirement savings will be spent. " http://www.afr.com/p/personal_finance/smart_money/inheritance_baby_boomers_leave_slim_OryNX0LRrAjUUu1HtJiIwM
What inheritance? Boomers spend big September 29, 2004 - 3:11PM
Older baby boomers intend to spend up big on themselves rather than leave their money to the kids, a new study has found. And they're splurging on anti-wrinkle creams, botox and plastic surgery as they seek to delay the ageing process. The report by research company Heartbeat combines four years of studies into attitudes and aspirations of Australians in their 50s. "Whereas previous generations accepted the decline into old age, grey boomers refuse to fade away quietly," said researcher Neer Korn. "They're determined to smash old-age stereotypes and certainly have no intention of retiring to the garden wearing a cardigan." Once the children have reached independence and the mortgage is paid off, grey boomers are intent on spoiling themselves, taking adventure holidays and lapping up beauty and anti-ageing treatments. They are looking to spend money with their kids rather than leave the cash to them, Mr Korn found. Leaving money to children is the old approach and often seen as the done thing by families of non-English speaking backgrounds, he said. But these days, they prefer to help their children put a deposit on a home, then splurge on themselves. "They feel they've earned it, they deserve it and they're having experiences you don't normally associate with that age group," Mr Korn said. "They're going backpacking, doing adventure tours ... it may not be at the most rigorous of paces, but they're certainly not lying on the deck of a boat." Cheeks pumped with botox and lips full of collagen had become acceptable and palatable with the grey boomers determined to beat the ageing process and maintain the illusion of youth. "They are frustrated by their ageing bodies in contrast to their youthful minds," Mr Korn said. "They have grown accustomed to society developing products and services that meet their needs - and as they have always done, seek easy solutions, short cuts and quick fixes." - AAP http://www.theage.com.au/articles/2004/09/29/1096401630520.html?from=storylhs
"Fourteen per cent of baby boomers told Smart Investor's survey they intend to blow the lot, leaving nothing to their children or family. They're going SKI-ing – Spending the Kids' Inheritance. Only 10 per cent said they'd bequeath the most possible, compared with the 20 per cent of the previous pre-boomer generation, who indicated this was their top priority.
Wrong. Everything gets left to coming generations. Dead people don't own assets.
There is no way to consume future production in the present, and if you don't consume something, someone else will.
MIW You do not seem to understand their will be next to nothing left. It will be spent. Aged care is approx $45k per year, with approx a $400k bond. In many cases the bond is used with the pension to cover the costs. Where my mum is a lady has been there 15 years and all her funds/assets that she did have have been used up. She did not expect to live on past 72 and now she is 88.
herbie
25 Sep 2014, 09:53 PM
Yes MIW.
Amongst a lot of other things at the moment, I've got to get around to looking into a "Testamentary Trust Will" :
Herbs A Testamentary Trust Will is good if you want to protect the assets from a child going bankrupt or divorce. Apart from those benefits, not much use in them apart from the fact that the estate does not have to be wound up and can remain until the beneficiaries decide to sell them. If you are worth $1m plus (when you actually die), they are a good idea.
You do not seem to understand their will be next to nothing left. It will be spent. Aged care is approx $45k per year, with approx a $400k bond. In many cases the bond is used with the pension to cover the costs. Where my mum is a lady has been there 15 years and all her funds/assets that she did have have been used up. She did not expect to live on past 72 and now she is 88.
And where does that money go when it is spent?
To the younger generation who produce the products and services. And to the government in tax.
That house doesn't vaporize. It gets transferred to the younger generation, either before or after death.
Your agenda is basically to redistribute consumption of current production from those who have earned it to those who have not yet earned it. Pretty bloody convenient given that you have already arranged your affairs to evade your version of the redistribution if it comes.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
You think that the POINT of a thread entitled "69% of Australian Retirees expect to leave a very significant inheritance to their children" is that the kiddies are gunna be deprived???
I can only 'think' you are operating from some sort of biased perspective. Which abrogates you in your mind from any responsibility for paying ANY attention to detail? Or truth??? - I also 'think'.
Whoops, my mistake - I was thinking of another thread😊
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