Monday, September 15, 2008

Lifestyle Newsletter 15 Sept 2008

Our goal - helping you retire with 70% of your pre-retirement income

Hi - I'm Bernard Kelly of


Americans are now expanding the traditional three tier retirement support mechanism (pension, superannuation and personal savings) with a fourth – employment.

Several studies show that boomers want to continue working.
This is the case with 80% of them according to a survey by the American Association of Retired Persons.

In fact the association has contracted its name to the AARP because so many of its members are now back in the workforce, and the word “retiree” has lost some of its original meaning.

as reported in the Times-Picayune, 17/08/2008:


Businessman Everald Crompton – in his role as Chairman of National Seniors Australia - has suggested it will soon be necessary for the government to increase the age for pension eligibility to age 75.

“This nation has to face the fact that we cannot economically sustain a retirement age of 65” he said.

“The government cannot afford the burden on the Budget from the surge of baby-boomer retirees.”

The open acknowledgement of this problem is rare. Of course, the whole purpose of the 9% employee super contribution is precisely because the government recognised – in the early 90s – the need to get the elderly off its (pension) payroll.

Which is why there are tax incentives to encourage us into superannuation.

But remember – the purpose of these tax breaks for superannuation are not to make us wealthy, nor to ensure that we will have enough for 20-25 years of dignified retirement. No. Their purpose is solely to get us to us off the government payroll.

Other nations – notably the UK and Germany – have already raised the pension age above 65. And others are discussing it.

So don't be suprised when the Rudd Government's pension review study - due early in 2009 - includes an increase in the pension entilement age.

If you would like me to explore your options for a dignified retirement, contact me – Bernard Kelly – anytime on

Or simply hit the reply button to this email.


A worm farm can be a profitable hobby to take into retirement.

Your customers will include (a) households who want some worms to decompose their kitchen waste, (b) vegetable gardeners who want to improve the soil in their beds, (c) people who are going fishing and (d) bait and tackle shops.

Ideally you will need raised garden beds, but the wonderful thing about worms is that they multiple themselves. You just keep feeding them your kitchen food scraps.

Initially you will need small advertisements in gardening and fishing magazines as well as on Google Adwords, all of which will take some capital, so it’s best to start this small business venture while you’re still at work.

You should be able to get started with say 8,000 worms (1.25 kg) for about $200 but they will increase in numbers and then you would sell perhaps 1,000 in a retail pack for say $50.

After about a year you should be able see some positive financial rewards for your efforts.

If you’re concerned how such a hobby business might affect your pension, well a couple can earn $6,240 a year before their pension is affected at all. Above this, the pension then reduces by a set rate for every dollar of income.

And of course a home based business has tax-deductible expenses, such as petrol, telephones and internet connections.

Do you need a low cost business website for your hobby business? Go to