Greg Tomamichel

Comments

• A timely question. We are now just seeing the first generation of retirees with healthy account balances move into the "de-accumulation" phase. And there has been a lot of discussion about providing support and guidance to those retirees. I don't think that the superannuation funds are there yet in providing that guidance, but clearly it's something that is a work-in-progress. As you could imagine, our super funds are heavily regulated by the federal government. And they should be - there is about $4 trillion in super, and our total stock market in Australia is only $2.5 trillion. Given their huge significance in the Australian economy, there is also a very high public expectation for them to be good custodians. So I'm sure we will see a range of things put in place to "hold the hand" of retirees as they spend down their savings.

  Post: I CAN SOLVE THE SOCIAL SECURITY AND RETIREMENT CRISIS IN AMERICA

  Link to comment from December 6, 2025

• I think it worth noting that Australia started with a 3% contribution in 1983, which has gradually and steadily increased, only reaching 12% this year. So there was not the political shock that suddenly launching to 12% would have caused. Australia is also a very compliant society (from my sister who is a political science researcher at Australian National University) so we tend to not have passionate arguments about something like our superannuation scheme. It has just become an accepted part of the employee / employer arrangement. It has also been asked about "who pays?". On the surface, it looks like the employer pays. Someone who is paid $100,000 salary gets $12,000 paid into their superannuation by their employer. But I suspect that the superannuation system has exerted downward pressure on wages over time, so that in the absence of superannuation that person's wage would likely have been slightly higher. So I think that the superannuation payment is really some split between employer contribution and foregone wages that might have existed otherwise. Either way, this is not a point of contention in Australia, it is just seen as part of the deal.

  Post: I CAN SOLVE THE SOCIAL SECURITY AND RETIREMENT CRISIS IN AMERICA

  Link to comment from December 6, 2025

• Thanks Adam. I agree that arguments blaming index funds for any distortion in valuations are pretty weak. I have heard the counter argument (maybe from Ben Carlson?) that only a relatively small proportion of actively managed money is required for price discovery. And my thinking is that there will always be enough investors / funds that will seek to invest actively to meet this price discovery need.

  Post: Index Fund Bubble

  Link to comment from December 6, 2025

• Thanks Dick. With regards Medicare, the details are too complex for me to understand them all, but generally with the public system (Medicare), there will be far less choice than with private health insurance. With Medicare there may be choice in certain circumstances, but certainly not always. With regards the 12% payment to superannuation (compulsory retirement savings), there doesn't tend to be discussion about whether it is considered a deduction. A job might be advertised as "$100,000 + super". So the employee gets $100,000 less income tax, and the employer pays $12,000 into the employees super. So the costs of employing people are effectively 12% more than what they are paid. This might sound like a big burden, but this percentage has been gradually ramped up over time and businesses have adjusted to this total cost of employment.

  Post: Health insurance and SS: two major financial related issues that most people do not understand and worse have come to believe a great deal of false information.

  Link to comment from December 5, 2025

• Regarding retirement income and healthcare, it is interesting to view the US from an Australian viewpoint. We have Medicare, a publicly-funded (i.e taxpayer funded) universal health insurance scheme. This has been running since the 1970s. Other than medical procedures that are deemed "elective", any Australian can get medical care at no or low cost. Many Australians also choose to take private health insurance. This can assist with things like reduced wait times for non-critical care, choice of hospital and/or doctor etc. We also have the NDIS (National Disability Insurance Scheme) to support people with a disability. I think in many ways we don't appreciate how lucky we are to have Medicare and NDIS in place. With regards retirement income, I've written before about our compulsory retirement savings scheme. This means that all working people are just saving for retirement (at 12% of their income) without thinking about it. If retirement savings fall short, there is a government funded aged pension "safety net". Over time, there will be less reliance on the aged pension due to the compulsory saving scheme. The outcome is that healthcare costs and retirement savings are not at the front of mind for most people. I think the big thing to understand is that Australians are a very compliant lot. I can certainly see that the schemes described above are a good match for Australia, but would not necessarily translate smoothly to other nations.

  Post: Health insurance and SS: two major financial related issues that most people do not understand and worse have come to believe a great deal of false information.

  Link to comment from December 5, 2025

• Thanks Mark, another interesting perspective. I have written before about my Dad's failed retirement at 68. Please to report that at 77 he is going much better at it! For myself, I've recently had 4 months not working after selling our business. I'm 52 and feel like I still have a lot of work left in me, but so many people have asked me "How's retirement?" To be honest, I have felt quite offended and annoyed by the repeated suggestions that I'm ready to "hang up my boots". I have no doubt that you have to be emotionally ready to retire. I'm not there yet.

  Post: Happy Hour, or The Panic Button? Why Early Retirement Anxiety Is Real.

  Link to comment from December 1, 2025

• Peter, great article, and I strongly echo your sentiment that personal finance should be kept as simple as possible. Here in the HD community, there can be deep discussion about the relative merits of various investment types, ways to increase tax efficiency etc. But most people aren't interested in that level of detail, and will never spend the time or effort to educate themselves. To quote and agree with Dick, "the secret is to live within your means and to spend your money wisely and of course to always save first." Here in Australia this is kept pretty simple with our compulsory superannuation scheme which requires that 12% of everyone's wage is put into retirement savings. If you can manage to buy and pay off your own home during your working years, then a comfortable retirement from your superannuation is a pretty safe bet.

  Post: How to build your nest egg

  Link to comment from November 29, 2025

• Thanks Mark, another very interesting article. I have no answers. This piece has rattled around in my head for several days, and the best I can do is let my muddled thoughts spill out. This feels like a hard issue to grapple with. To have a successful retirement, one probably needs a mix of hard work, discipline and luck. The latter is obviously outside our control. And if luck has smiled upon you, it can be difficult to know how to feel. Being grateful is probably helpful and healthy. But it can easily turn to guilt, which isn't probably particularly good for anyone. Perhaps just finding some empathy for others, an understanding that they may have battled hard but things just didn't work out, is at least some way forward. And maintaining a sense of humility, knowing that with one medical event or car crash or whatever else that everything could be very different.

  Post: Bearing Witness: Retirement From the Wrong Side of the Divide

  Link to comment from November 26, 2025

• Dick, I think you've achieved that and much more.

  Post: You worked a lifetime, you achieved your goals, you have it all-the next day it hardly matters

  Link to comment from November 26, 2025

• Thanks Michael. It's helpful to hear the reality from someone that isn't living it their dream retirement.

  Post: You worked a lifetime, you achieved your goals, you have it all-the next day it hardly matters

  Link to comment from November 26, 2025