Subscribe: Comments on Peter Martin: Sunday dollars+sense: Over 50, yet fabulous
http://petermartin.blogspot.com/feeds/3780813699228885073/comments/default
Added By: Feedage Forager Feedage Grade C rated
Language: English
Tags:
assets  bank fees  bank shares  bank  equity  fees  government endorsed  high bank  high  live government  natural people  natural  people 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: Comments on Peter Martin: Sunday dollars+sense: Over 50, yet fabulous

Comments on Peter Martin: Sunday dollars+sense: Over 50, yet fabulous





Updated: 2015-09-30T08:04:03.541+10:00

 



Also, it is NATURAL that people in their 50s do be...

2007-05-20T20:16:00.000+10:00

Also, it is NATURAL that people in their 50s do best in negotiating with banks as:
(a) They are at their peak earning capacity, and hence good quality borrowers, so banks fall over trying to get these people (though they do not borrow as often as young people). In comparison, the just-married 20yos are likely to have financial glitches, from starting with low equity in a home, to having kids..
(b) It is far more likely that a 50 yo person will have 'other assets' with a selected lender, whereas a 20yo is likely to not have much in the way of 'controlled financial assets' (ie they may have superannuation but not a high bank balance). Hence it is natural that people with other relationships with a bank will insist on a best possible interest rate from their bank.
(c) It is natural as the article suggests that people discover by their 50s that even the most inflexible institutions 'do deals' to get the business, so may be the 50yo also 'asks the right questions', compared to a 20yo who is just pleased to find ANYONE who will lend to them.
Graeme



We have to live with the government-endorsed oligo...

2007-05-20T09:32:00.000+10:00

We have to live with the government-endorsed oligopoly of "the four majors" in Australia. If it were not for the non-bank lenders who saw the opportunity and entered the market, we'd have been in an even worse state now... and to think various governments have played with allowing the four to pair up to reduce it to TWO!
The only REAL way to beat them is to join them. If you own just $25k of bank shares (which with margin lending you could do with just $7.5k in equity) you will become a net beneficiary of high bank fees in this country.... that is why the wealthy never complain about high bank fees. And you will always be better off with even $1k to $5k of bank shares vis-a-vis keeping a similar minimum balance in a non-interest-bearing bank account in an attempt to avoid fees.
Graeme Harrison (email: prof at-symbol post.harvard.edu)