Early retirement without a fortune

I must have been mistaken.

Here I was thinking that my glass was 80% full. From 15 years ago, with no IPs and no savings, having out two children through expensive schools, I've got an asset base from which I could retire comfortable now.

But China keeps telling me that I'm wrong, that I've done everything in the wrong way. That I shouldn't ever have a mortgage. And that this stuff only ever works when price rise- and obviously they are not going to rise again.

(And I have bought two IPs sice 2003. One I sold after 3 years for $250k profit- 50% rise. One is worth triple what I paid for it).

My glass must be empty after all.
 
I must have been mistaken.

Here I was thinking that my glass was 80% full. From 15 years ago, with no IPs and no savings, having out two children through expensive schools, I've got an asset base from which I could retire comfortable now.

But China keeps telling me that I'm wrong, that I've done everything in the wrong way. That I shouldn't ever have a mortgage. And that this stuff only ever works when price rise- and obviously they are not going to rise again.

(And I have bought two IPs sice 2003. One I sold after 3 years for $250k profit- 50% rise. One is worth triple what I paid for it).

My glass must be empty after all.

You have achieved very good results through leveraging into rising assets. However, if your IPs had not risen in value, it would have been a very different result and you could not retire comfortably now. I am sure there are many who took out mortgages to buy IPs or shares in 2003 who are only doing so so.

Mortgaging/leveraging can accelerate your gains but also compound your losses. It could allow early retirement without a fortune but could also condemn one to long term work.
 
I understood it to mean, it was difficult to "save 1.5 mil"

Getting to 1.5 mil in cash/ unemcumbered investable assets on top of a paid off PPOR by saving or investing or other means is difficult. That is why only 1% of the Aussie population achieve this.
 
You have achieved very good results through leveraging into rising assets. However, if your IPs had not risen in value, it would have been a very different result and you could not retire comfortably now. I am sure there are many who took out mortgages to buy IPs or shares in 2003 who are only doing so so.

Mortgaging/leveraging can accelerate your gains but also compound your losses. It could allow early retirement without a fortune but could also condemn one to long term work.

China,

Have you considered that while you were saving for your PPOR over the past 11 years, residential prices were going ballistic??

Those of us who used mortgages to buy residential properties during this time (using leverage) have done very well.

I wonder what your portfolio would look like now if you had chosen to do the same??

I am sure you must have paid an awful amount in tax over this time too? (Not that I advocate having mortgages to avoid tax and encourage -ve gearing, because I don't).

Its just that our financial system, due to the way our tax is set up, lends itself nicely to accessing equity rather than savings to purchase assets.

Regards Jason.
 
More importantly will we be able to afford the mansion shown below with 2 - 3 million?
 

Attachments

  • neimanmarcuscoop.jpg
    neimanmarcuscoop.jpg
    50.7 KB · Views: 61
  • funny-hen-chicken-300x300.jpg
    funny-hen-chicken-300x300.jpg
    30.3 KB · Views: 56
China,

Have you considered that while you were saving for your PPOR over the past 11 years, residential prices were going ballistic??

Those of us who used mortgages to buy residential properties during this time (using leverage) have done very well.

I wonder what your portfolio would look like now if you had chosen to do the same??

I am sure you must have paid an awful amount in tax over this time too? (Not that I advocate having mortgages to avoid tax and encourage -ve gearing, because I don't).

Its just that our financial system, due to the way our tax is set up, lends itself nicely to accessing equity rather than savings to purchase assets.

Regards Jason.

I agree with all of the above. If I had my time again, I would have leveraged into property over that time period. This is easy to say in hindsight and retrospect. Equally, with the benefit of retrospect, in this same period, I could have leveraged into shares and sold before GFC. Not leveraging in this period has cost me dearly in terms of lost opportunity cost. I may well have retired by now with easily the target 2-3 mil. However, I am not sure what happens from now. I hope I do not repeat the errors of the past.
 
If I had my time again, I would have leveraged into property over that time period. This is easy to say in hindsight and retrospect.

....but what you fail to recognise or acknowledge is that many folk on this forum, way back then, without the benefit of hindsight nor retrospect, were able to "see" the opportunity that you never were able to.....then took a huge risk, managed that risk then worked their tail off and overcame whatever the investment threw at them.....coming out the other side after many years with a reward that matched the risk and effort that they poured into it.

Don't begrudge or deny them their reward. Don't be jealous. Don't be bitter.

My recommendation for you china is to simply acknowledge these people had better foresight and vision than yourself and chose a wiser path than yours.

Now that you have your fully paid off PPoR, you're in the perfect launching pad position to start investing.....just like all those folk were 10 or 15 years ago.
 
....but what you fail to recognise or acknowledge is that many folk on this forum, way back then, without the benefit of hindsight nor retrospect, were able to "see" the opportunity that you never were able to.....then took a huge risk, managed that risk then worked their tail off and overcame whatever the investment threw at them.....coming out the other side after many years with a reward that matched the risk and effort that they poured into it.

Don't begrudge or deny them their reward. Don't be jealous. Don't be bitter.

My recommendation for you china is to simply acknowledge these people had better foresight and vision than yourself and chose a wiser path than yours.

Now that you have your fully paid off PPoR, you're in the perfect launching pad position to start investing.....just like all those folk were 10 or 15 years ago.
That's really good Dazz. And a good way to close off a thread that's been going on for quite some time.
 
Back
Top