I know this carn’t be perfectly answered, but am i intrested that if you did/had to start from scratch how long would it take you to retire. I’ll define retire as 50,000 per year.
Just wondering due to I am only 16 amd have just gotten into the Job market[buz2], and 1st job i “loved it”[confused2] *cough cough* [confused2] but since then i have chnaged jobs but still i am not looking forward to working until iam 55.
Thanks Balliez
The weak will feed off of the strong until they are strong enough to be fed off of…
Originally posted by Balliez:I know this carn’t be perfectly answered, but am i intrested that if you did/had to start from scratch how long would it take you to retire. I’ll define retire as 50,000 per year.
Just wondering due to I am only 16 amd have just gotten into the Job market[buz2], and 1st job i “loved it”[confused2] *cough cough* [confused2] but since then i have chnaged jobs but still i am not looking forward to working until iam 55.
Thanks Balliez
The weak will feed off of the strong until they are strong enough to be fed off of…
Geez, nothing like starting early[blink]
For a start, based on an inflation rate of 3%, todays $50K will be worth $158,351 when you’re 55.
So, assuming you just wanted to live off the interest, and retain your capital, you will need to invest $3,167,026 @ 5% to get $158,351 gross ie before tax. Less if you are prepared to use up your capital.
Sounds scary, doesn’t it[crying]Geekay
Hate to tell you guys but right now i don’t have 50K to invest. But what i am trying to get now is an idea of what to expect once i need to start investing, just checking out house prices and asking people if they think they are good deals or not, what i would like to do sometime is to get an investor and just see why they do and don’t buy houses and for what reasons so that i can really see what to look for…
Sorry about the confusion [confused2] What i ment was, how long did/would take you to get to the stage where your properties are supplying $50K gross per year for you to live off of. ALso how many properties do you have.
Thanks
The weak will feed off of the strong until they are strong enough to be fed off of…
Balliez,
fantastic that you are aaking that question now. I would suggest that the best reason for wanting to know this however is so that you can be realistic and plan and implement that plan rather than wanting to ‘get rich quick’ (which rarely seems to work).
Anyway, moving away from the lecture – I would suggest that:
– roughly the annual income you want equates to 20 times that in capital value (whether that is shares, property etc)
– don’t forget that as part of your ‘exit strategy’ you can use up some of your capital so you might find that you need less than you think in capital and more in cash flow itself
– I think it would be reasonable to assume that you could accumulate $1m of assets in a 10-20 year period depending on how you did it. Remember that in the last 2-3 years many property prices have doubled however this followed a long period of stagnation in many areas of property. Similarly in the stock market the late 90’s were exceptional years however this all came crashing down in the early millenium.
I think if you were to read heaps, be prepared to live within your means and invest 10% or more of your net or gross income on a permanent basis then you could achieve your goal in 15 years.
However your question is very similar to how long is a piece of string – I am suggesting that average due dilligence applied over a 10-20 year period shoul definitely get you there.
Of course people have done it much quicker, but there is a risk/return relationship that should be understood.
I suggest reading the following books:
– RIch Dad Poor Dad
– The Richest Man in BAbylon
– Jan Somers building wealth through property investment
– 7 Steps to Wealth
– the Intelligent investor
as a start and see how you go from there.Good luck with it all, I am certain you will reach your goal if you write it down and apply yourself to achieving it in every way.
Timbo
Balliez,
Well done, for thinking ahead man. I had the goal of getting free of money restraints early too, I stuck my head down and worked my ass off for a few years to build up deposits for houses.No loans for cars (lots of time fixing ’em though), no fancy toys on credit, and established a very strict budget where I put a bit out of the money i earnt into my savings before anything.
However I still partied hard. Don’t lose the opportunity to socialise, and regret it later. You are only young once!![sick3]
4 years later, i am in a position where i might be able to retire in a year. I am of course taking risks (i am basically single though), And as far as I can see you do it in as little time as you wan’t.
To do it in a shorter time, all you have to do is find a faster unique way, and don’t let people put their limits on you..(internet businesses are perfect examples)
And beware of promises to get rich quick, It ain’t that easy!!
GO GET EM DUDE!![thumbsup2]
lifexperience
Thanks guys, i’ll get reading…
The main reason why i am now intrested in investing is because of the book ” Rich dad, Poor Dad’ my dad gave the book to me when i was 14 and even though i didn’t get all the ideas he was expressing at the time, i got the main idea of what he was saying, after that i have also read ” 0 to 130 Properties”, but as he saids in “Rich dad, Poor Dad” i am now “hiring people smarter than me for me to learn off of them..
Thanks guys and lyas
The weak will feed off of the strong until they are strong enough to be fed off of…
You should be looking to retire around 26-27. That means 4 years for learning, 7 years to become retired, which seems about right… So I suggest you buy alot of books, and go to a few inexpensive seminars (the $69- ones!). Books I would suggest you get are: John Burley, Money Secrets of the Rich; Robert Kiyosaki, Cashflow Quadrant/ Rich Dad’s Guide to Investing/ Prophecy/ If you want to be Rich & Happy don’t go to school (all of these are by Robert Kiyosaki).
Tht should be all you need for yr1. It might seem like alot of work, but would you like to be retired at 26/27 or earlier, rather than having to be a slave and go to a job until you are 65 (you might want to be 55 when you retire, but the gov. needs you to work untill 65, as the equals another 10yrs of tax revenue (with them taking over 50% of your income)).
Also you will have alot of fun with investing, and the more you do of it the more money you make, so thats why you want to be retired so you can do more investing, make more money and have more fun.
PM me if you want.
Rgds.
Lucifer_au
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