I am trying to establish a signpost to see when I can just live off my IPs. Suggestion from the fellow forumities who are already financially free will be especially appreciated. I am a person of no demanding wishes (no desire for oversea trips or fancy cars etc), two meals a day, a roof over my head and I am happy as Larry. How many times have you read in the financial columns and they say a couple need $2m in super to give $100K a year to live on. I am thinking 2 retired persons what do they need $100K for and $2m in super it just unrealistic. We are a family of four own our ppor, will $1200/wk in today’s dollar give us a reasonable lifestyle? ( now you can see I am hopeless in budgeting ! )
setmefree, it depends how much you earn and spend now. If your current income is enough or more than enough, then you would be able to be ‘free’ if you earn that same amount..
However, you might want to (at that point) keep investing so that you can increase the amount, so that you can have the odd holiday etc. etc. Kiyosaki said that he did not become rich until he retired – cos he then had all the time he wanted to spend investing and making better deals…
Cheers
MelSetmefree,
Australian Financial Planners Association surveys show most people want to retire on 75% of their working life incomes.
I would suggest that most people (in general terms) are ‘happy’ with a continuation of their existing lifestyle and this income level seems to sustain it at the level they were used to.
Whether or not this is sufficient for you is an individual thing.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
cool Derek but is that 75% of there income figure b4 or after tax
like if say you get 50k a year gross does that mean you will be happy will 37k income gross or net?
and is that 37k want ppl want but withut any other debts like morgage or car loans?Hi Hotshot,
Doesn’t really matter whether you use gross or net income the final relational effect (percentage wise) will be largely very similar aprt from some vagaries caused by changing tax threshold levels.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
cool derek thanz! [thumbsupanim]
Originally posted by hotshot:cool Derek but is that 75% of there income figure b4 or after tax
like if say you get 50k a year gross does that mean you will be happy will 37k income gross or net?
and is that 37k want ppl want but withut any other debts like morgage or car loans?Most fin planners and accountants will strecth your after tax dollars if you are over 55.
That $100,000 per year is something the Henry Kays of this world used to motivate the massess.
Ask a 60 what they are doing and they will tell you of the holdidays they have just had and the new restaraunt they discovered.
Ask a 70 year old what they are doing and they will tell you of the new pill they have to take and the name of their new specialist.
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