You can’t just wave a wand and wish yourself a Norway Sovereign Wealth Fund. A more realistic model is presented by the Australian Superannuation Funds. One of the most powerful forces preventing the development of financial security is “the lifestyles to which we are accustomed”, and discretionary spending (the things we want, after the things we have no choice but to pay for). Investing can be a team sport. If the entry ticket to our community is high because everyone is living hand to mouth, it makes it hard to be the odd one out. The one building rather than lifestyling. The Australian Supers make saving compulsory, and add tax incentives. Over time, the amount has gradually increased, so people can become “accustomed”. In 1992, the minimum contribution started at 3% and has gently increased with a target of 12% in 2025. In 2018, AU$2.7 trillion made Australia the 4th largest holder of pension assets in the world. Sometimes you strike Oil. Otherwise, build. Ideally, together.
On the Ball - Australia & Norway
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