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Morningstar runs the numbers

Lewis Jackson  |  20 Sep 2021Text size  Decrease  Increase  |  
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Emma Rapaport has crunched the numbers and getting to $1.6 million by 66 is easier than it looks, writing: "It's said the first million is the hardest and boy is that true. It will take 25 years of diligent saving and investing to reach $500,000 but only another nine years to reach $1,000,000. That's because my retirement savings generate their own earnings, which are reinvested. I will receive interest on the amount I invest from my salary each year, but also on the savings I've built up. By age 66, I have retirement savings of $1,644,221.”


Investors are spoilt for choice when it comes to investing overseas, with zero brokerage trading available for more than 16 markets, I write: “IG brokers and CMC markets offer zero brokerage trading for the UK, Japan, Germany and Canada between them. Investors can buy companies like BMW, Toyota, or Glencore and only pay an FX fee between 0.6% and 0.7% on each trade. eToro offers zero brokerage trading in 16 markets, from Norway to Saudi Arabia. A limited number of companies are available on each exchange. For example, there are over 2,000 companies listed on the Hong Kong exchange, while 134 are available to purchase on the eToro app.”

$4 million

With those living in $4 million homes receiving the age pension, it's time to include part of the family home in the age pension asset test, argues Graham Hand: “Is it fair that a welfare safety net applies for a couple sitting on a $4 million asset? Or in more expensive suburbs of cash-poor, asset-rich people in houses now worth $10 million or $20 million? An agent told me last week his average sale price this year was over $7 million. Any age pensioners in there?”


Morningstar now believes Aussie software provider WiseTech has what it takes to expand globally and has lifted the fair value to $60, writes equity strategist Gareth James: "We now view WiseTech in a much more bullish light and have dramatically raised our earnings forecasts and fair value estimate, to AUD 60.00 from AUD 9.30 per share.”

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is a reporter and data journalist with Morningstar. Tweet him @lewjackk or get in touch via email

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