Why is that crazy? If you want to take it out of a tax free environment and put it in a taxed environment, that is your choice.
I think you are missing my point. I am talking about taking money out of super and blowing it all, not taking it out and purchasing means tested assets.
It is still your money, and it will be deemed for a period of time, or are you indicating that the pension should only be there for people who don't save?
It is certainly great stuff.
If you have some of that hooch left over please pass it on VC..
A bit of reality about "ownership" and "sharing" in the profits of these big companies. Individuals with minuscule share holdings have zilch/zero/FA effective ownership of any company. You can't do nuthin.
Major shareholders, often start up owners, wield effective control and veto over operations and every other aspect of the company.
In terms of sharing profits... For a start the CEO's and top staff start with 7 and 8 figure salaries plus bonuses. And of course they usually have multiple millions of shares either issued at IPO or offered as part of remuneration packages. So after they get their cut there may be dividends - which of course are also part of the multi million share portfolios that come with the position.
But don't take my word for it. Check out what one of the wealthiest men in the US ($18Billion) has to say about the distribution of income.
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Contrary to what populists of the left and populists of the right are saying, these unacceptable outcomes aren’t due to either a) evil rich people doing bad things to poor people or b) lazy poor people and bureaucratic inefficiencies, as much as they are due to how the capitalist system is now working.
I believe that all good things taken to an extreme become self-destructive and everything must evolve or die, and that these principles now apply to capitalism. While the pursuit of profit is usually an effective motivator and resource allocator for creating productivity and for providing those who are productive with buying power, it is now producing a self-reinforcing feedback loop that widens the income/wealth/opportunity gap to the point that capitalism and the American Dream are in jeopardy. That is because capitalism is now working in a way in which people and companies find it profitable to have policies and make technologies that lessen their people costs, which lessens a large percentage of the population’s share of society’s resources. Those companies and people who are richer have greater buying power, which motivates those who seek profit to shift their resources to produce what the haves want relative to what the have-nots want, which includes fundamentally required things like good care and education for the have-not children. We just saw this exemplified in the college admissions cheating scandal.
As a result of this dynamic, the system is producing self-reinforcing spirals up for the haves and down for the have-nots, which are leading to harmful excesses at the top and harmful deprivations at the bottom. More specifically, I believe that:
Because of these two forces, the share of revenue that has gone to profits has increased relative to the share that has gone to the worker. The charts below show the percentage of corporate revenue that has gone to profits and the percentage that has gone to employee compensation since 1929.
- The pursuit of profit and greater efficiencies has led to the invention of new technologies that replace people, which has made companies run more efficiently, rewarded those who invented these technologies, and hurt those who were replaced by them. This force will accelerate over the next several years, and there is no plan to deal with it well.
- The pursuit of greater profits and greater company efficiencies has also led companies to produce in other countries and to replace American workers with cost-effective foreign workers, which was good for these companies’ profits and efficiencies but bad for the American workers’ incomes. Of course, this globalization also allowed less expensive and perhaps better quality foreign goods to come into the US, which has been good for both the foreign sellers and the American buyers of them and bad for the American companies and workers who compete with them.
https://www.linkedin.com/pulse/why-how-capitalism-needs-reformed-parts-1-2-ray-dalio/
Very true and applies to everything.
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