- Money Morning Australia

Super Fund Results: Whoopdeedoo


Written on 05 November 2012 by Nick Hubble

Super Fund Results: Whoopdeedoo

Numbers don’t lie. Until an economist gets their hands on them. Then they sing any story you want them to. Here’s the latest story they’ll have you believe, from the Age:

‘Far from being squeezed, working Australians are better off than ever, the latest figures show, with lower costs from interest rates counteracting the higher costs imposed by the carbon tax.’

We’d wager that your latest figures matter more to you than economists‘. And you know whether you’re being squeezed or not better than they do. The sad thing is, it’s the people who can’t fight back that are paying for ‘working Australians’ being better off…

The Age article continues:

‘The stunningly low cost-of-living increase – half the official inflation rate – is because the Bureau of Statistics’ cost-of-living measure incorporates household mortgage interest costs, which have slid 6.7 per cent over the year to September and 2.5 per cent in the past three months. It also gives a high weight to motoring costs, which have slid 0.8 per cent in the past three months as a result of lower petrol prices.

‘[...] households for which mortgage charges and petrol prices are less important were harder hit. The Bureau of Statistics says the living costs faced by pensioners and households relying on Newstart climbed 2 per cent. The costs faced by self-funded retirees climbed 1.5 per cent.’

If you’ve given up work and rely on savings, falling interest rates are a big problem. It’s probably not the best idea to go into debt or buy a gas guzzler so that you can be in the ‘far from being squeezed’ group.

What about the retirement investments that these people made to provision for their future? How are they faring?

Nothing to Get Super Excited About

The Age reported that ‘finally, [super fund] contributors are back to the balances they held before the financial crisis.’ Whoopdeedoo.

If you’ve been reading Money Morning for a while, you’ll know we blame the central bankers for the boom and bust of the stock market. Not only are central bankers reducing income for savers, they’re playing yoyo with your shares.

By the way, the same Age article also helpfully points out that you would have been better off with a term deposit than a balanced super fund over the last 10 years. Well, it doesn’t admit that directly, but a 6.3% a year average return for the median super fund is about what you could have gotten from term deposits. Minus the worry.

If all this seems like pointless number fiddling, you’re onto something. After tax and inflation, are you really achieving much with any of these investments?

Just like anything in life, you don’t get paid for doing nothing. It just doesn’t make sense. There is one exception though. You can get paid for doing nothing if you own something that does the work for you. And pays you the income it earns.

We’ll be releasing a report on how you can build up a sizeable income for your retirement soon. In the meantime, there is another way you can go about this. One that allows you to stop caring about reports like the two from the Age we just told you about. One that puts you outside their system of measurement.

In what might be our favourite Daily Reckoning article yet, Bill Bonner outlines how to live a life that gives economists nightmares and yourself a good night’s sleep…

Nick Hubble
Editor, Money Morning

From the Port Phillip Publishing Library

Special Report: After the Bust

Daily Reckoning:
A Deflationary Conclusion to China’s Bubble

Money Morning:
How the Aussie Dollar is Caught in a Worldwide Game of Currency Chess

Pursuit of Happiness:
Political Parasites Never Die



Already a subscriber to Money Morning... or simply, just like what you're reading? Then show your support and spread the word...
Share this post on...
Share

Nick Hubble
Nick Hubble is a feature Editor of The Daily Reckoning Australia . Nick has spent the last three years discovering lots of new, exciting and surprisingly simple ways to generate money for retirement. He’s put all these ideas into his investment publication The Money for Life Letter. If you're already a subscriber to these publications, or want to follow Nick's financial world view more closely, then we recommend you join him on Google+. It's where he shares investment research, commentary and ideas that he can't always fit into his regular Daily Reckoning emails.

Leave a Comment

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.

If you would prefer to email the editor, you can do so by sending an email to moneymorning@moneymorning.com.au


Comments are closed.



FREE INVESTMENT REPORT: Why Dividend Stocks Are The Key To Retirement Wealth


In this report discover how dividend stocks can give you income long into retirement — even if stock prices don’t rise.

PLUS you'll get Money Morning every weekday...absolutely free.

Enter your email address below and hit the 'Claim My Free Report' button now.

Privacy Statement
We will collect and handle your personal information in accordance with our Privacy Policy.
You can cancel your subscription at any time

New Frontier Investor

The last investment megatrend birthed stock gains of 11,095%, 20,621% and 50,760% over 20 to 40 years.

If Kris Sayce is right, gains from this next megatrend won’t just reach those heights...

They’ll SURPASS them...

To see why, click here.

Iron ore leadgen

  • ^NDX3976.066+17.033 - +0.43%
  • ^FTSE6773.44-34.31 - -0.50%
  • ^AORD5621.600+6.500 - +0.12%
  • ^AXJO5630.400+7.500 - +0.13%
  • AUDUSD=X0.9325
  • USDJPY=X102.818

PAN [predict literally ban]

interest rates leadgen

Australian Small-Cap Investigator

Why Holden’s future lies
beneath the soil in
Tasmania…

 
And not just the future of Holden…but Toyota,
Hyundai and Mazda too


CLICK HERE FOR THE FULL STORY

investing success leadgen

TDR [war in the pacific ban]

Resource Sector leadgen

Gowdie Family Wealth

Which type of family are you?


  1. The kind that ends up in court
    battling over inheritance money…

  2. Or the kind that knows how to
    protect, pass on and grow wealth forever.

Click here if you want the kind of family
that grows its wealth for generations.

The Money For Life Letter

A giant wrecking ball is about to smash Australia’s retirement system to smithereens...
 
And unless you take the evasive action outlined in this Special Issue, everything you’ve saved and invested over your whole working life could soon be GROUND to DUST.
 
Click here to read.

Gold Stock leadgen

Revolutionary Tech Investor [BANNER moonshot]

Graphic Ad 1 – Blue Chip Stocks Report


More Recommended Reading Below...

The Pursuit of Happiness & The Daily Reckoning

  • The Pursuit of Happiness
  • The Daily Reckoning Australia

I’d find it much harder to live without the services provided by the private sector. As for the publ [Read More...]

If too many retirees leave the workforce without enough money put away in superannuation, the pensio [Read More...]

If you answer ‘yes’ to the following questions, then you’re hoarding your investments. Don’t despair [Read More...]

Most large super funds have limits on where they can invest superannuation. This means many investor [Read More...]

Russia and its supporters have nothing to gain from attacking civilians. Russia and Putin were winni [Read More...]

US second quarter GDP rose at a 4% annualised pace, the Federal Reserve to keep rates low for a ‘con [Read More...]

It was subprime housing debt that tipped the financial world into crisis. Now, we have subprime auto [Read More...]

The ‘recovery’ has been a fraud from the get-go. The US economy is stuck in a low-growth…semi-depres [Read More...]

Economic data out of China has improved on the back of targeted stimulus. The result? Time to get bu [Read More...]

Just because governments and central banks around the world are trying desperately to levitate world [Read More...]

TESTIMONIALS

"I think you're fantastic! I love to read what you write...you're so interesting and amusing and I've learned so much" -
Money Morning reader, Chris Gadd

"You guys are brilliant. I feel more relaxed about the future than ever simply because I know what is going on rather than floundering around with smoke screens and mirrors from the government and mainstream" -
Money Morning reader, Helen Carter

"Wow what can I say? I was an economically confused moron until I read your newsletter and even though I've been a subscriber for a short period I can now see how easy it is to understand, if you use common sense and can have the spin translated into everyday language. Thanks for an entertaining read." -
Money Morning reader, John

"Keep up the good independent and well thought out articles offering a view that often debunks mainstream myths." -
Money Morning reader, Craig

"I do admire your straight talking and simple analysis of the situation, I think of you as the Jeremy Clarkson of finance." -
Money Morning reader, Jeffery