Kind of got some questions and thoughts running around, and figureing how many more years i need to work for. Trying to establish how many houses i need to OWN to be self funded.
How does retirement work? If i am not a fully self funded.
eg. say i own 2 houses giving me only $350/week, not quite enough to live on.
Does the governement throw any extra funds in? Say i am only 50 and dont want to work at all.
What is the pensioner age?
What do you think someone would need to be able retire on a per week basis.
Enough for Rates $1000/year, rego$600/year, insurance$1000/year, house costs$2,000/year, food$50/weeks, extras$150/week.Anyone calculated what they think they will need to be self funded and able to retire?
What is Centerlinks take on assets and properties? Do i have to sell them to be entitled to any benifits?
The problem with answering this one is what is your lifestyle going to be like? Some people are quite happy on %30k per year, some can't get by on $100k.
Why the hell would you want to know about Centrlink and Pensions and means testing???
Set your sights on the clouds my friend, and you may just hit the tree tops!
As for pensions and govt assistance; I don't want any help from the govt at all. If I have to get help from the govt to live in retirement, then I have failed in my book, and I am headed for a limited life of less – not more. I plan to not even be close to qualifying for their miserable existence hand-out.
I have 2 sets of parents and step parents; all retired, all on the pension; all doing nothing and going nowhere.
On the flip side, I know some guys who are well past retirement age and are very wealthy but are still having fun working and making money. They never seem to get old and they sure as hell aren't going to retire anytime soon.
Don't entertain any thoughts of using the govt to help you live. Make your own wealth and live great.
Just keep buying as many income producing, capital growth investments as you can, and when you are ready to retire, retire the debt by selling a few, and you will have a debt free income from investments that continue to keep on growing.
A very basic, but very do-able equation is 1 property every year for 10 years. Wait another 5 or so years after that and then retire some debt.
I don't know how old you are now vyaw2003, but if you've got a couple of I.P's on the go (or more) you are well on the way.
thanks but remember not everyones goals are not the same.
Me: i could handle 3 new surf boards, and a beach shack and not have to worry about anything. What ever can get me to that is fine by me. I dont care about BMW's, remember that would make me become a slave to the BMW loan. Why bother in 10 years time i wont care if i HAD a BMW or a hyundai 10 years prior.
For some people that BMW means success, i on the other hand dont see that. obviously a BMW is bad debt. why work all my life for the tax man, die and still have 2 houses that mean nothing to me then. I really only plan on living to get by comforatble and if i can do that without working all the better.Centerlink questions were not really serious considerations for me, i was more interested to see what their take is on assets and obtaining pensions ect.
I'm hearin' ya vyaw2003!
I've no doubt you'll be happier than most down by those waves.
I got off the "try to impress" roundabout a while ago and became happy. Now it's all about going places, seeing the sites and drinking a good wine by the sunset.
Sometimes I see the BMW's leaving the carpark at 7.00am and I know they're heading off to work to pay for it, while I am heading down to the pool for a swim before school with my 5 year old son. That's priceless.
It is nice to have a bit in reserve though just in case you need a new board.
so you are fully funded and retired? how old did you do that? what was your income and assets at the time? are you still growing or using all of what you have?
If you go to the centrelink site you'll find just what you will be paid in retirment. Depending On whether you're single or partnered and depending on income and assets your centrelink payments will vary. Certainly $350/wk income will affect youre pension but not altogether. Your assets might be a prob tho if you own an investment property outright. I'm not sure the asset cutoff but I believe a single person is only allowed assets up to 200k .
I was glad the day I quit centrelink and took control of my own life and future
How much does one needs to retire on comfortably, in todays dollars, is a question that I have been mulling over for some time so last month, when I was having a meeting with my tax accountant, I asked him that question. I added that I didn't need any Mercs or BMWs but that I also didn't want to be forced to check out the specials at the supermarket. A comfortable rather than luxurious lifestyle with the odd diners out, holidays etc. etc.
The answer I got was $1500 per week after tax. That's $78K per year after tax. Of cause, if your a baby boomer like me, the easiest way to achieve this is to put as much as possible into a SMSF (and that can also be in the form of commercial property) because the tax free aspect of that income means you need to earn less to get more.
Hope this helps
Elkavyaw2003 wrote:so you are fully funded and retired? how old did you do that? what was your income and assets at the time? are you still growing or using all of what you have?Hi vyaw2003,
Retired – not yet.
Financially free – yes.
Employed right now – no and won't be until we return to Aus.I intend to buy/start another business using some equity, use this to fund further property investments.
I will never retire officially as I need to be busy and have projects to do, but I like to do what I want, when I want. That's retirement to me.
The point of my last post was to say that I gave up the trappings of the consumer world a long while ago. I don't need to be seen in BMW's and designer clothes and live in a "postcode" suburb. This means we can live on less, retire from the rat race earlier and have enough to keep going, and work for fun.
http://www.whywewantyoutoberich.com/
Check out this book it rases some issues of big problems yet to come.It positively reinforces the issue of why financial education is vitally important.Put it this way if we don’t provide for our own retirements we are all going to be screwed.Why should the lazy people expect others to clean up after them?Let’s get financially educated and live a good life and help set our offspring off to a good start too.A smart investor focuses on becoming a smarter investor, the average investor focuses only on making money. RichDad.com:
Making money comes down to good advice (and knowing it when you hear it), having a strong network of business associates, and first and foremost, knowledge. Rich Dad always told Robert that the first thing to invest in was a financial education.Hi, interesting.
9 years ago, I was in the same position. I thought the minimum would be 1 house to live in, 2 houses to collect rent on. Subsistence living.
Then I was told someone on the Commonwealth pension would get $18K p.a. & I thought "Bugger, why don't I wait for the pension? I work like a dog just to get $12K p.a. after I pay off all my mortgages."
So I started reading all the retirement books ever written & hit pay dirt on 2 American ones.
There's something called "critical mass" & for a single person, that works out to be roughly $750000 in net worth, preferably not including PPOR!
When you think about it, it's very logical. Using the factor 20, $750000 will yield $37500 p.a. That's replacement income for an average wage earner.
Like L.A. Aussie, I suggest shoot higher. Don't depend on the pension. The pension is designed to keep everyone poor.
FYI, I decided that $750K is so close to the million, it makes sense to shoot for a million. It has more zing!! I'm now retired & building houses because I love them.
Good luck,
Kum YinWell done Kim!
Hey vyaw2003,
I'm gunna call you V – it's easier to type. Is that o.k?
I just realised that I didn't fully answer your question in my last post. Please understand that when I get to read the day's forum posts over here it is after dinner and the chardy is kicking in. Australian of course!!
I don't want to divulge my financial position on an open forum, and it is not that fantastic (maybe L.A is making me feel inadequate?), but it is enough that we now have enough equity from our portfolio that the increasing value of the portfolio allows me to draw on the equity each year and not spend more than the properties go up in value each year. I base the average of the increasing value at 5% per year, which is well under the average for property in Australia for the last gazillion years. So if the portfolio does better than 5% then I have no worries. So far this has been the case – even during the "correction".
We are still going to be investing when we return from the USA. My wife still works part time because she is like me; needs to be busy.
Having said that; we are like you – free from the mentality to consume, so don't need a lot to live on. I draw a modest amount from the equity we have to live on, but as I said; I love to be busy and I need a project, so now I choose to work when it suits me; not some boss.
This situation only eventuated 2 years ago at aged 44. Before then, it was HARD SLOGGING.
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