MILLIONS TO MAKE A LIVING
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.”