$2m in 22 months - Rob's story ..

[Rob Williams]

Hey Rob, how does a $2 million portfolio change your lifestyle? Do you still need to work? What is your exit strategy so that you can soon get out of the rat race and enjoy a life free of work?

It doesn't really change my lifestyle. My budget is very tight and strictly adhered to, so I can meet the monthly shortfall.
The company I work for has been going through a few rounds of redundancies recently and even though I couldn't live too comfortably on my other investments and property portfolio, it does give me choices in my life. To me that's the real value.
If I get made redundant, the package will keep me going for at least a year with no change to lifestyle or portfolio.
My exit strategy is partly an LOE strategy (a la Rixer) with some additional twists to give me cash flow. I'm setting up a SMSF to provide an income stream after I'm 55. I'm also looking at other investment opportunities that may provide cash flow to fund living expenses while I rely on an LOE strategy to pay for big ticket items like cars, holidays etc as well as some living expenses. I guess it's a hybrid strategy.
I don't plan to be in my day job for more than 2 years. Maybe less if things go to plan, as they seem to do
Hope that answers your question.

 

[bojangles]

Well done Rob! I too am a fan of Rixter's strategy. In fact exchanged contracts on my first IP last week!

 

[rocket22]

Well done Rob!,

It was just the message i was after to spur me on further, I look forward to seeing more of your inspiring stories in the future.

Cheers

Rod

 

[kathryn d]

Rob, what a great story.
Very interesting to hear how others get so far in debt as well !!
As someone said previously, on another thread, you must be a great risk to be able to finance so much.

Being able to live very frugally for awhile, will certainly pay off in the long run.
Only thing, after such a long time being frugal, it becomes a way of life. That, in itself, will accelerate other purchases.

It's not really being able to show others "look at how much I have". For me it is a way to express my creativity.How can we, with such an extremely modest income, accumulate so much, with the option to retire, years early.

Anyways, congratulations on all you success.
If you have done all this in 22 months..I'd love to read the 5 yr story.

 

[Rob Williams]

It's not really being able to show others "look at how much I have". For me it is a way to express my creativity.How can we, with such an extremely modest income, accumulate so much, with the option to retire, years early.

For me, that's what it's all about. If it wasn't for my passion to inspire others to have a go, then I'd be happy to fly under the radar and not broadcast my story.
I don't like the idea of being chained to my current day job. Right now, it feels like each purchase does exactly that, but over time, that same action will free me so I can follow my bliss (woops, that sounds a bit "girly", doesn't it).

 

[Player]

For me, that's what it's all about. If it wasn't for my passion to inspire others to have a go, then I'd be happy to fly under the radar and not broadcast my story.
I don't like the idea of being chained to my current day job. Right now, it feels like each purchase does exactly that, but over time, that same action will free me so I can follow my bliss (woops, that sounds a bit "girly", doesn't it).

Not girly mate, that's metro-sxual..........perhaps it could be more metaphorically expressed as .........BLI$$

 

[Rob Williams]

Not girly mate, that's metro-sxual..........perhaps it could be more metaphorically expressed as .........BLI$$

I like it.
I'm still looking for my Big Hat, by the way
I should be over your way before too long, so we can have that beer. I'm looking forward to it!

 

[DanielG]

Hey Rob,

What's SMSF?

Also what's Rixters strategy?

 

[Rob Williams]

Hey Rob,

What's SMSF?

Also what's Rixters strategy?

SMSF = Self Managed Super Fund.
Here's the Rixter blueprint:
http://www.somersoft.com/forums/showpost.php?p=425864&postcount=2

 

[ben73]

Great Story.
Congratulations on your success, and your divorce.

 

[cu@thetop]

Great story and it is good to see you , a victim of domestic violence (which it was) shake off the negative ***** and have a go. Always good to hear real life stories- especially the successes.

 

[Player]

I like it.
I'm still looking for my Big Hat, by the way
I should be over your way before too long, so we can have that beer. I'm looking forward to it!

Look forward to it.

Let me know when beer o'clock will be

 

[The Fence]

I like it.
I'm still looking for my Big Hat, by the way
I should be over your way before too long, so we can have that beer. I'm looking forward to it!

I have a spare hat for ya Rob it's bigger than my current one so you deserve it now.....I'd like to have a beer or 20 with you too....! One day...

Congratulations...inspiring stuff !

 

[Rob Williams]

I have a spare hat for ya Rob it's bigger than my current one so you deserve it now.....I'd like to have a beer or 20 with you too....! One day...

Congratulations...inspiring stuff !

Thank you! Yeah, I'd like that, too. My shout. I have a few good Somersoft friends in NSW, so I ought to head over there and catch up. Good excuse for a holiday.

 

[weg]

I had wondered when you would post your story.

Congratulations and thanks for sharing. Very inspiring .

 

[Player]

Save sunscreen money

This forum's fantastic......people helping others out with items of solar protection.

Rob, with the money you'll save on sunscreen thanks to Thorpey's generosity, you can get onto the next IP acquisition sooner..........or grow the beer money kitty

 

[Gools]

Rob, thanks for posting Your Story. Like a lot of others I am looking forward to hearing how it goes over the coming years.

I'd thank you for sharing the information but you're letting our cat out of the bag. Couldn't you have waited till I had finished getting my Adelaide 7 first?

Well done!!

Gools

 

[Pablo]

Rob,

Thanks for posting such an in depth post about your progress and good work on breaking the $2mil mark.

 

[DanielG]

SMSF = Self Managed Super Fund.
Here's the Rixter blueprint:
http://www.somersoft.com/forums/showpost.php?p=425864&postcount=2

Thanks for that. Okay thats interesting. Surely its not that easy though. There has to be a catch somewhere...there always is with any strategy.

 

[Rob Williams]

Thanks for that. Okay thats interesting. Surely its not that easy though. There has to be a catch somewhere...there always is with any strategy.

For me, the only "catch" is that there can be times (like now) when credit tightens and extracting equity becomes more challenging.
I plan to mitigate against this by extracting equity and every opportunity and parking it in an offset account for when I need it. Hopefully, that will help me ride out those times.
Naysayers will also point out that property values may stagnate or go backward, making equity extraction impossible. I will have a sufficient spread of properties in high growth areas that will mitigate against that risk too.
I also plan to develop other income streams to reduce my reliance on the LOE strategy. Of course if the LOE strategy works "like a bought one", then my additional income streams will be icing on the cake.
I'm also planning to buy some property (maybe even commercial) with my SMSF and look to using that to produce a tax free income form the time I'm 55.
If all of the above lets me down, then I'll find myself a park bench to call home and rely on my Somersoft friends for food parcels etc.