Just moving away from the normal topic of debt – a word on super.
Wealth managers are telling lies to young people or at best distorting the truth in their quest to obtain the lucrative superannuation money on which they build their stratospheric profits and salaries. Fund managers are the real beneficiaries of compulsory superannuation.
They cheat by talking of how much a young person would lose in the long term by withdrawing $10,000 from their superannuation now (around $15,000 say some), but do
not take into account discounted cash flow. The use of their $10,000 now may be far more valuable than it would be in 50 years time. For instance a house bought 50 years ago in Sydney for $16,000 is actually now worth about $1.6 million. That is 100 times as much.
$10,000 spent now may help provide enjoyment for the next 20 years. Having it at 30 might be a lot better than havi
ng it at 50. But saving has great benefit too, because it can be very handy when needed, like now during the pandemic.
There is a distinct possibility that the value of superannuation invested on stock markets around the globe may deteriorate because the current prices may be inflated by the mountain of superannuation money globally looking for something to invest in.
In my view the very best superannuation any person can have is their own home. They get the capital gain of
owning the house plus the benefit of living in it too. It is sort of like having your cake and eating it too.
On compulsory superannuation’s impact on jobs, big business leaders are interested in two things, maximum profits and the highest salaries they can personally earn. Increased superannuation, payroll tax and lower company tax rates (meaning lower tax deductions for wages), all make computers, robots and cheap foreign labour a profitable alternative to providing Australians with jobs.
Australians concerned to see their finances remain at least as good as they were before the pandemic, should join Voters Network Australia or FairGO to persuade their politicians to make that happen. It is not so difficult. It just takes time and effort. FairGO is an expert at the diplomacy, psychology and strategy that give incredible power and influence to everyday Australians & their organisations.
If they want a second opinion on financial matters, help with borrowing, loan management or securing a debt write off of unreasonable debt, they can contact a Borrowing Advocate or Assistant at GBAC.