MIL­LIONS TO MAKE A LIV­ING

Herald Sun - - BUSINESSDAILY - MATHEW SHARP

HOUSE­HOLDS need $2.9 mil­lion in the bank to earn enough in­ter­est to live on, or about $1.8 mil­lion in ei­ther superannuation or shares, ac­cord­ing to new re­search.

Fi­nan­cial web­site fin­der.com.au based the amounts on earn­ing in­come of $82,500 — the aver­age full-time wage — and a sav­ings ac­count pay­ing 2.87 per cent per an­num.

“Not many Aus­tralians would have $3 mil­lion stashed in the bank,” Fin­der spokes­woman Kate Browne said. “While it seems like a gi­ant sum, you’d get a monthly in­come of $6874.”

A $1.8 mil­lion share port­fo­lio of the top-ranked Aus­tralian com­pa­nies would be needed to pro­duce the same in­come, while the aver­age superannuation ac­count would need a bal­ance of $1.7 mil­lion.

Wealth Cre­ation Ad­vi­sors fi­nan­cial plan­ner An­toinette Mullins said the three op­tions had dif­fer­ent char­ac­ter­is­tics.

“While cash and fixed in­ter­est pro­vide the least volatil­ity, over time — af­ter tax and in­fla­tion — your money ac­tu­ally loses value in its buy­ing power,” Ms Mullins said.

“Shares and prop­erty based in­vest­ments have the po­ten­tial to meet th­ese goals but do ex­pe­ri­ence short-term volatil­ity.

“Superannuation is pos­si­bly the best struc­ture to house your port­fo­lios but the re­al­ity is superannuation pris­ons your sav­ings.”

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