Australia

How to retire with a million dollars in the bank

Saving less than the price of lunch every day adds up to $1m upon retirement
Investing $9 a day from..

Published

6 years ago

February 9, 2018

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Saving less than the price of lunch every day adds up to $1m upon retirement
Investing $9 a day from birth in a savings account could top $1m by age 65
Putting away $36 per day from 30 would net $1m by the time you finish work
Starting at 40, saving $64 a day would hit $1m at projected future interest rates.

By Stephen Gibbs for Daily Mail Australia

Published: 06:02 GMT, 9 February 2018 | Updated: 06:02 GMT, 9 February 2018

Putting away less than the price of lunch every day could provide enough money to make you a millionaire upon retirement at 65.

While superannuation is the surest way for workers to become a millionaire by the time they retire it could still be done with a savings account.

Saving a little more than $20 a day from the age of 18 could net a person the magic million dollar retirement fund.

Saving a little more than $20 a day from the age of 18 could net a person $1m upon retirement

Superannuation is the surest way for most to become a millionaire by the time you finish work

Parents setting up a nest egg for their children can set them on the road to financial wealth

Starting at 40 becomes harder but might be possible for someone who could come up with $64 a day at projected future interest rates.

Daily Mail Australia asked finance experts how Australians could set themselves up to retire with a seven figure sum and has advice from saving to superannuation to investing in property.

Graham Cooke is insights manager of the comparison website finder.com.au.

'A little goes a long way when it comes to saving,' Mr Cooke said.

'Our research reveals that saving less than the price of lunch everyday would make you a millionaire by retirement.

'With many savings accounts barely offering north of 2 per cent, it's easy to assume our low-interest world will be here forever.

Graham Cooke is insights manager of the Australian comparison website finder.com.au

Someone saving $64 a day at a 4 per cent rate from age 40 may be able to retire a millionaire

Savings, superannuation and property investment can help to build a $1m retirement fund

'However, with 80 per cent of economists surveyed by finder.com.au tipping a rise as the next cash rate move, these rates are set to rise.

'Presuming a long term average interest rate of 4 per cent, parents could set up a nest egg for their kids by setting up a savings account.

'Investing only $9 per day in a savings account at 4 per cent adds up to a healthy $1,018,814 by the age of 65.'

Most parents will not be doing that but saving $21 per day at a 4 per cent rate from the age of 18 would result in $1,060,270 at the same retirement age.

Thereafter, reaching the million dollar mark gets harder but it can be done.

A person saving $36 per day from age 30 would net $1,000,535 by retirement.

A person saving $36 per day at 4 per cent from age 30 could net $1,000,535 by retirement

Investing only $9 per day at 4 per cent from birth would add up to $1,018,814 by the age of 65

80 per cent of economists surveyed by website finder.com.au are tipping an interest rate rise

Starting at 40 a saver would reach $1,000,839 by the age of 65 if they put away $64 per day at the same interest rate.

'However, there are many other ways to make sure you have a large boost at retirement,' Mr Cooke said.

'For example, the top super funds offered returns above 8 per cent over the last three years.

'At these rates, you'd only need to be investing $5.50 per day from the age of 18 to retire as a millionaire.'

If you could find a fund that returned 8 per cent every year, you could reach the million dollar mark without adding to employer contributions.

The Association of Superannuation Funds of Australia (ASFA) is the peak policy, research and advocacy body for Australia's superannuation industry.

The top superannuation funds offered returns above 8 per cent over the past three years

The Association of Superannuation Funds of Australia says retirees don't need $ 1 million

ASFA said a balance of $1 million (in current dollars) at retirement was well in excess of its 'comfortable standard' of retirement benchmark, and might be difficult to achieve for most Australian workers.

A person aged 20 with no superannuation who initially earned $40,000 per year, increasing to $80,000 per year, would need to contribute an additional $125 per week under salary sacrifice.

A person aged 30 with a current superannuation balance of $40,000 who earned $80,000 per year would need to contribute an additional $175 per week.

'At later ages, additional contributions would need to be significantly larger,' an ASFA spokeswoman said.

ASFA's retirement standard benchmarks the annual budget needed by Australians to fund either a comfortable or a modest standard of living in the post-work years.

According to that standard to be comfortable at retirement singles who own their own home need $545,000 in superannuation and couples need $640,000 (in current dollars).

ASFA estimates a single person would need $545,000 in superannuation to be comfortable

ASFA says a couple would need $640,000 in super in current dollars to retire comfortably

That assumes retirees will draw down all their capital and receive a part age pension.

A single person aged 20 years old and entering the work force today who earned average wages throughout their working career would be well on track to reach the ASFA comfortable standard by the time they retired at 67.

It was a similar story for a single person aged 30 years old with a balance of $40,000 and who earned average wages for the remainder of his or her career.

A single person aged 50 years old with a balance of $135,000 who earned $80,000 per year would need to contribute an additional $200 per week to reach a 'comfortable' retirement.

According to finder.com.au, property was a good option to meet the million dollar target for those who could afford to purchase a house in the current climate.

Many young Australians feel locked out of the housing market due to soaring property prices

Bitcoin bought at $660 in 2012 would have been worth $1 million in December and $500k now

'Sydney house prices, for example, have increased by 40 per cent in the last five years, so it's very possible to gain a million in property value over 20 or 30 years,' Mr Cooke said.

However, the same market conditions mean many young Australians feel locked out of buying property, meaning their superannuation will likely be their largest asset.

For those who want to be more adventurous, the rewards can be great but the risks are too.

'Of course, there are much faster ways to become a millionaire,' Mr Cooke said.

'If you had purchased $660 worth of Bitcoin in 2012, that would have been worth $1 million in December last year.

'Of course, if you'd bought that $1 million worth of bitcoin in December, it would be worth less than half of that today.

'The high reward comes with high risk, so my advice would be to steer clear.'

It is still possible for late starters to retire with a million dollars in superannuation or savings

Original Article

Daily Mail

Australia

Ben Roberts-Smith: Top soldier won’t apologise for alleged war crimes

Published

3 months ago

June 22, 2023

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Ben Roberts-Smith is proud of his actions in Afghanistan, the former Australian soldier said in his first comments since a judge ruled claims he committed war crimes were true.

A landmark defamation case this month found Mr Roberts-Smith was responsible for the murders of four Afghans.

The Victoria Cross recipient says he is innocent and will consider an appeal.

“I’m devastated… It’s a terrible outcome and it’s the incorrect outcome,” he said on Wednesday.

Speaking to reporters from Nine as he returned to Australia for the first time since the judgement was delivered, Mr Roberts-Smith also said he would not apologise to those affected by his alleged crimes.

“We haven’t done anything wrong, so we won’t be making any apologies,” he said.

Mr Roberts-Smith sued three Australian newspapers over a series of articles alleging he had carried out unlawful killings and bullied fellow soldiers while deployed in Afghanistan between 2009-2012.

But Federal Court Judge Anthony Besanko threw out the former special forces corporal’s case against The Age, The Sydney Morning Herald, and The Canberra Times, ruling it was “substantially true” that Mr Roberts-Smith had murdered unarmed Afghan prisoners and civilians, and bullied peers.

The 44-year-old, who remains Australia’s most-decorated living soldier, was not present for the civil court ruling, having spent the days leading up to it on the Indonesian resort island of Bali.

Mr Roberts-Smith, who left the defence force in 2013, has not been charged over any of the claims in a criminal court, where there is a higher burden of proof.

None of the evidence presented in the civil defamation case against Mr Roberts-Smith can be used in any criminal proceedings, meaning investigators must gather their own independently.

This week it was confirmed that the Office of the Special Investigator (OSI) – which is responsible for addressing criminal matters related to the Australian Defence Force in Afghanistan – would work alongside Australian Federal Police (AFP) to examine three alleged murders local media say involve the former soldier.

The killings allegedly took place at a compound codenamed Whiskey 108 and in the southern Afghan village of Darwan.

The OSI was set up following a landmark inquiry in 2020, known as the Brereton Inquiry, which found “credible evidence” that Australia’s special forces unlawfully killed 39 people in Afghanistan.

There are currently 40 matters that are being jointly investigated by the OSI and the AFP.

Earlier this year former SAS soldier Oliver Schulz became the first Australian defence force member to ever be charged by police with the war crime of murder.

Read from: https://www.bbc.com/news/world-australia-65911638

Australia

Why Australia decided to quit its vaping habit

Published

4 months ago

May 28, 2023

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He’s talking about students in his class, teenagers, who can’t stop vaping.

He sees the effect of the candy-flavoured, nicotine-packed e-cigarettes on young minds every day, with children even vaping in class.

“The ones who are deepest into it will just get up out of their seat, or they’ll be fidgeting or nervous. The worst offenders will just walk out because they’re literally in withdrawal.”

Those who are most addicted need nicotine patches or rehabilitation, he says, talking about 13 and 14-year-olds.

is enough and introduced a range of new restrictions. Despite vapes already being illegal for many, under new legislation they will become available by prescription only.

The number of vaping teenagers in Australia has soared in recent years and authorities say it is the “number one behavioural issue” in schools across the country.

And they blame disposable vapes – which some experts say could be more addictive than heroin and cocaine – but for now are available in Australia in every convenience store, next to the chocolate bars at the counter.

For concerned teachers like Chris, their hands have been tied.

“If we suspect they have a vape, all we can really do is tell them to go to the principal’s office.

“At my old school, my head teacher told me he wanted to install vape detector alarms in the toilet, but apparently we weren’t allowed to because that would be an invasion of privacy.”

E-cigarettes have been sold as a safer alternative to tobacco, as they do not produce tar – the primary cause of lung cancer.

Some countries continue to promote them with public health initiatives to help cigarette smokers switch to a less deadly habit.

Last month, the UK government announced plans to hand out free vaping starter kits to one million smokers in England to get smoking rates below 5% by 2030.

But Australia’s government says that evidence that e-cigarettes help smokers quit is insufficient for now. Instead, research shows it may push young vapers into taking up smoking later in life.

‘Generation Vape’

Vapes, or e-cigarettes, are lithium battery-powered devices that have cartridges filled with liquids containing nicotine, artificial flavourings, and other chemicals.

The liquid is heated and turned into a vapour and inhaled into the user’s lungs.

Vaping took off from the mid-2000s and there were some 81 million vapers worldwide in 2021, according to the Global State of Tobacco Harm Reduction group.

Fuelling the rise is the mushrooming popularity of flavoured vapes designed to appeal to the young.

These products can contain far higher volumes of nicotine than regular cigarettes, while some devices sold as ‘nicotine-free’ can actually hold large amounts.

The chemical cocktail also contains formaldehyde, and acetaldehyde – which have been linked to lung disease, heart disease, and cancer.

There’s also a suggestion of an increased risk of stroke, respiratory infection, and impaired lung function.

Experts warn not enough is known about the long-term health effects. But some alarming data has already been drawn out.

In 2020, US health authorities identified more than 2,800 cases of e-cigarette or vaping-related lung injury. The Centers for Disease Control and Prevention found 68 deaths attributed to that injury.

In Australia, a major study by leading charity The Cancer Council found more than half of all children who had ever vaped had used an e-cigarette they knew contained nicotine and thought that vaping was a socially acceptable behaviour.

School-age children were being supplied with e-cigarettes through friends or “dealers” inside and outside school, or from convenience stores and tobacconists, the report said.

Teens also reported purchasing vapes through social media, websites and at pop-up vape stores, the Generation Vape project found.

“Whichever way teenagers obtain e-cigarettes, they are all illegal, yet it’s happening under the noses of federal and state authorities”, report author and Cancer Council chair Anita Dessaix said.

“All Australian governments say they’re committed to ensuring e-cigarettes are only accessed by smokers with a prescription trying to quit – yet a crisis in youth e-cigarette use is unfolding in plain view.”

In addition to the government’s move to ban the import of all non-pharmaceutical vaping products – meaning they can now only be bought with a prescription – all single-use disposable vapes will be made illegal.

The volume and concentration of nicotine in e-cigarettes will also be restricted, and both flavours and packaging must be plain and carrying warning labels.

But these new measures are not actually all that drastic, says public health physician Professor Emily Banks from the Australian National University.

“Australia is not an outlier. It is unique to have a prescription-only model, but other places actually ban them completely, and that includes almost all of Latin America, India, Thailand and Japan.”

‘We have been duped’

Health Minister Mark Butler said the new vaping regulations will close the “biggest loophole in Australian healthcare history”.

“Just like they did with smoking… ‘Big Tobacco’ has taken another addictive product, wrapped it in shiny packaging and added sweet flavours to create a new generation of nicotine addicts.”

“We have been duped”, he said.

Medical experts agree. Prof Banks argues that the promotion of e-cigarettes as a “healthier” alternative was a classic “sleight-of-hand” from the tobacco industry.

As such vaping has become “normalised” in Australia, and in the UK too.

“There’s over 17,000 flavours, and the majority of use is not for smoking cessation”, she tells the BBC.

“They’re being heavily marketed towards children and adolescents. People who are smoking and using e-cigarettes – that’s the most common pattern of use, dual use.”

Professor Banks says authorities need to “de-normalise” vaping among teenagers and make vapes much harder to get hold of.

“Kids are interpreting the fact that they can very easily get hold of [vapes] as evidence [they’re safe], and they’re actually saying, ‘well, if they were that unsafe, I wouldn’t be able to buy one at the coffee shop’.

But could stricter controls make it harder for people who do turn to vapes hoping to quit or cut down on tobacco?

“It is important to bear in mind that for some people, e-cigarettes have really helped. But we shouldn’t say ‘this is great for smokers to quit’, says Prof Banks.

“We know from

Australia, from the US, from Europe, that two-thirds to three-quarters of people who quit smoking successfully, do so unaided.”

“You’re trying to bring these [vapes] in saying they’re a great way to quit smoking, but actually we’ve got bubble gum flavoured vapes being used by 13-year-olds in the school toilets. That is not what the community signed up for.”

Read from: https://www.bbc.com/news/world-australia-65522841

Australia

Australia: Scott Morrison saga casts scrutiny on Queen’s representative

Published

1 year ago

August 27, 2022

Europe Disk

In the past fortnight, Australia has been gripped by revelations that former Australian Prime Minister Scott Morrison secretly appointed himself to several additional ministries.

The move has been labelled a “power grab” by his successor as prime minister, and Mr Morrison has been scolded by many – even his own colleagues.

But the scandal has also dragged Australia’s governor-general into the fray – sparking one of the biggest controversies involving the Queen’s representative in Australia in 50 years.

So does Governor-General David Hurley have questions to answer, or is he just collateral damage?

‘Just paperwork’

Governors-general have fulfilled the practical duties as Australia’s head of state since the country’s 1901 federation.

Candidates for the role were initially chosen by the monarch but are now recommended by the Australian government.

The job is largely ceremonial – a governor-general in almost every circumstance must act on the advice of the government of the day. But conventions allow them the right to “encourage” and “warn” politicians.

Key duties include signing bills into law, issuing writs for elections, and swearing in ministers.

Mr Hurley has run into trouble on the latter. At Mr Morrison’s request, he swore the prime minister in as joint minister for health in March 2020, in case the existing minister became incapacitated by Covid.

Over the next 14 months, he also signed off Mr Morrison as an additional minister in the finance, treasury, home affairs and resources portfolios.

Mr Morrison already had ministerial powers, so Mr Hurley was basically just giving him authority over extra departments.

It’s a request the governor-general “would not have any kind of power to override or reject”, constitutional law professor Anne Twomey tells the BBC.

“This wasn’t even a meeting between the prime minister and the governor-general, it was just paperwork.”

But Mr Morrison’s appointments were not publicly announced, disclosed to the parliament, or even communicated to most of the ministers he was job-sharing with.

Australia’s solicitor-general found Mr Morrison’s actions were not illegal but had “fundamentally undermined” responsible government.

But the governor-general had done the right thing, the solicitor-general said in his advice this week.

It would have been “a clear breach” for him to refuse the prime minister, regardless of whether he knew the appointments would be kept secret, Stephen Donaghue said.

Critics push for investigation

Ultimately, Mr Hurley had to sign off on Mr Morrison’s requests, but critics say he could have counselled him against it and he could have publicised it himself.

But representatives for the governor-general say these types of appointments – giving ministers the right to administer other departments – are not unusual.

And it falls to the government of the day to decide if they should be announced to the public. They often opt not to.

Mr Hurley himself announcing the appointments would be unprecedented. He had “no reason to believe that appointments would not be communicated”, his spokesperson said.

Emeritus professor Jenny Hocking finds the suggestion Mr Hurley didn’t know the ministries had been kept secret “ridiculous”.

“The last of these bizarre, duplicated ministry appointments… were made more than a year after the first, so clearly by then the governor-general did know that they weren’t being made public,” she says.

“I don’t agree for a moment that the governor-general has a lot of things on his plate and might not have noticed.”

The historian says it’s one of the biggest controversies surrounding a governor-general since John Kerr caused a constitutional crisis by sacking Prime Minister Gough Whitlam in 1975.

Prof Hocking famously fought for transparency around that matter – waging a lengthy and costly legal battle that culminated in the release of Mr Kerr’s correspondence with the Queen.

And she says the same transparency is needed here.

The Australian public need to know whether Mr Hurley counselled the prime minister against the moves, and why he didn’t disclose them

The government has already announced an inquiry into Mr Morrison’s actions, but she wants it to look at the governor-general and his office too.

“If the inquiry is to find out what happened in order to fix what happened, it would be extremely problematic to leave out a key part of that equation.”

Former Prime Minister Malcolm Turnbull – Mr Morrison’s predecessor – has also voiced support for an inquiry.

“Something has gone seriously wrong at Government House,” he told the Australian Broadcasting Corporation.

“It is the passive compliance along the chain… that did undermine our constitution and our democracy… that troubles me the most. This is how tyranny gets under way.”

PM defends governor-general

Prof Twomey says the criticism of Mr Hurley is unfair – there’s was no “conspiracy” on his part to keep things secret.

“I don’t think it’s reasonable for anyone to expect that he could have guessed that the prime minister was keeping things secret from his own ministers, for example.

“Nobody really thought that was a possibility until about two weeks ago.”

Even if he had taken the unprecedented step to publicise the appointments or to reject Mr Morrison’s request, he’d have been criticised, she says.

“There’d be even more people saying ‘how outrageous!'” she says. “The role of governor-general is awkward because people are going to attack you either way.”

Prime Minister Anthony Albanese has also defended Mr Hurley, saying he was just doing his job.

“I have no intention of undertaking any criticism of [him].”

A role fit for purpose?

Prof Hocking says it’s a timely moment to look at the role of the governor-general more broadly.

She points out it’s possible the Queen may have been informed about Mr Morrison’s extra ministries when Australia’s parliament and people were not.

“It does raise questions about whether this is fit for purpose, as we have for decades been a fully independent nation, but we still have… ‘the relics of colonialism’ alive and well.”

Momentum for a fresh referendum on an Australian republic has been growing and advocates have seized on the controversy.

“The idea that the Queen and her representative can be relied upon to uphold our system of government has been debunked once and for all,” the Australian Republic Movement’s Sandy Biar says.

“It’s time we had an Australian head of state, chosen by Australians and accountable to them to safeguard and uphold Australia’s constitution.”

But Prof Twomey says republicans are “clutching at straws” – under their proposals, the head of state would also have been bound to follow the prime minister’s advice.

“It wouldn’t result in any changes that would have made one iota of difference.”

Read from: https://www.bbc.com/news/world-australia-62683210