Let’s say you had $300k in assets, could you create cashflow for life from investments, without any further funding from paid employment? The strategy could include shares, options, property, etc. I am talking initial cashflow of $30k + with the aim obviously to ramp that up year by year. Maybe you have some ideas from strategies you have actually implemented (as opposed to what you’ve heard). Not only is cashflow important, but so to is growth.
Originally posted by wezwaz:Let’s say you had $300k in assets, could you create cashflow for life from investments,
. I am talking initial cashflow of $30k + with the aim obviously to ramp that up year by year.
Not only is cashflow important, but so to is growth.
Hmmmmm 10% return indexed to inflation+++, plus
capital growth, yes it can be done, all you need to do is come to my exclusive investment tutorial (note this is NOT a bogus investment seminar )
whereby I can personally show the way to make unlimited finacial wealth
Seminar,,,sorry tutorial costs a modest
$250,000, but if you follow my advice results are guaranteed.Hi Wezwaz,
I assume you mean $300K unencumbered.
I suggest you get in touch with Steve Navra at http://www.navra.com.au – he specialises in doing precisely what you are asking about.
As to whether or not you can do it with only $300K – Steve (or one of his employees) would be the best person to discuss that with.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
wezwaz, I believe it is eminently possible to make 10% on 300k. That’s what this website is about, and people on here are already making 10%. However, as Derek said- you need to have paid your property off. You can get 10% return on 300k worth of property, but if you still owe 250k- you ain;t got nada (well, slightly more than nada, but still close to nada).
Is 30k enough to live on anyway, wezwaz? You would still be living on far less than the average Australian wage.
kay henry
I give my investors 15%, so it’s not that hard to find a source.
Unfortantly you have to trust the buisness owner / investor. If you couldn’t handle letting someone manage the money for you (and you weren’t interested in buy RE or trading options), then it would probably be best handing your money over to a big company like colonial or vanguard (indexed funds), though of course your funds might not even make 2%, let alone 10%.Also $300K isn’t very much to live on….
Rgds.
Lucifer_auInteresting comments.
Yes, the $300k is net, i.e. unencumbered. $30k may not sound like a lot to live on, but people always misunderstand me on this point. $30k is a starting point, not an end result. Also if a single person can’t live on that much, they really are messing up managing their money.
The reason I proposed this scenario is that much of the info (in seminars/books) indicates you can start with nothing and be financing property deals straight up. OK, then I am saying if you had $300k it must be a breeze because you’d have a head start.
To gmh454 – Que? You don’t make it clear what you are on about.
Hi Wezwaz,
As an aside most ‘financial literacy’ I have read suggests that to determine your capital base needs in retirement you will need 20 X annual income. This allows for a dividend and preservation of the starting capital.
For example someone wanting $50K (before tax) to live on will require $1m capital base.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek, I love those people who quote that sort of figure.
They are soooooooooo conservative – aiming for only a 5% (net) return.
If I can’t do better than that, I may as well sell up everything I have, and hand it over to a fund manager[oink]
Cheers
MelHI Mel,
Totally agree with your comments – I guess the low 5% gives a safety margin over the long haul and provides a buffer for the lean times.
Lean times you ask – superannuation fnds in recent years would have been grateful for 5%.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
wezwaz,
Yes, I see where you’re coming from. But I would be trying to make that 300k into 800k, retiring later, and then having 80k to live on. Yes, you might be right in thinking that people who can’t live in 30k per annum are messing up their finances. But you’ll still have tax taken out of that money (it’s profit) so you’ll only be living on about 450 bucks a week. I know you say this is only a starting point, but if you are only living off the 30k, you are really only able to raise rents or make profit in shares. What if some of the shares fall to pieces one year? Then you might only have 10k to live off per year. Risky. I reckon only superfluous money should be risked. Leveraging is good fun, but only when it isn’t leveraging your bread and butter.
kay henry
Wezwas
This sounds like a reasonable figure. using a mixture of business, shares and property a 10% return is not very high.
eg. Imagine if you used this money as deposits for wraps. $20,000 deposits on 15 properties returning $3000 pa each after costs = $45,000 plus all the capital gains on cashout.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for all suggestions. I appreciate your feedback.
I have a friend who is doing this and achieving 12.75% net before tax (after interest payments on LOC loan he took out) on about $290,000 invested. He is making just under $37,000 and has a future profit sitting there of around $85,000.
What’s more he is hardly doing any work himself to achieve these results.
He is thinking of writing a manual on the subject. Would anybody be interested?
“Most people operate under a false ceiling which is 3 feet high” Stuart G Goldsmith
wezwaz, as Terry said i seem to have ‘nailed it’ with what to do with available cash in another post. Go find the one that does that and see if you would like to talk to me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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