Hands up for those nearing Financial Freedom

[Classclown]

I have found over the years that many people find the transition to retirement awkward as they have limited interests outside of work. Many of them have been financially capable, but would be lost without their "Job".
My take on it is that we are only on this planet for a limited time and there are way better things to be doing than working! Many people have retired too late, only to end up in the box shortly after.

Well said, if I could I would retire tomorrow and surf every day ...then there is travel camping fishing rock climbing boating and that's just to start...

All this talk of working until reaching a 100k a year passive income, no way for me, give me 50k a year achieved in half the time and I'll put my feet up in Bali 6 months a year

 

[Harro]

Well said, if I could I would retire tomorrow and surf every day ...then there is travel camping fishing rock climbing boating and that's just to start...

All this talk of working until reaching a 100k a year passive income, no way for me, give me 50k a year achieved in half the time and I'll put my feet up in Bali 6 months a year

All of your interests except Rock climbing are what I pursue now and have done whilst I was working. Just to rub it in, spent 8 months between Sumbawa, Lombok and Bali in 2008.
We have many friends who simply can't imagine life without the structure of "Work". While it is each to their own I am glad it's not me.
Often, when people do their "Sums" they do not require the money to fund their lifestyle that they initially believed they did! For me there is no better feeling than owning my own time!

 

[jaylo]

I love the idea of part time working in Oz while "based" in Bali in 10-15y however that brings the issue of tax residency if you go over 6 months out of Oz and which country you consider home.
I suppose renting a permanent place i.e. 2 bedder villa with swimming pool in Canggu means that technically Bali is the new home but there are high consequences on income tax.
One would have to get an even larger portfolio to sustain that strategy.
Bali won't be cheap at all in 15y.
Or maybe keeping a place in Perth to go to clariy residency?

 

[Classclown]

All of your interests except Rock climbing are what I pursue now and have done whilst I was working. Just to rub it in, spent 8 months between Sumbawa, Lombok and Bali in 2008.
We have many friends who simply can't imagine life without the structure of "Work". While it is each to their own I am glad it's not me.
Often, when people do their "Sums" they do not require the money to fund their lifestyle that they initially believed they did! For me there is no better feeling than owning my own time!

Yes I'm envious, I have a friend that fifo from Perth, and spends his 2 weeks off in Bali surfing staying in nice hotels instead of renting in oz.

Another driver is that I'm hopeing to achieve this before I'm 37, ( another 3 years) so I have at least 8 strong full time years of surfing challenging breaks and having my body being able to handle heavy indo beach bombs and wipeouts before it all gets too much and I have to resort to the rest of my retirement long boarding at rainbow bay coolangatta haha

 

[Classclown]

I love the idea of part time working in Oz while "based" in Bali in 10-15y however that brings the issue of tax residency if you go over 6 months out of Oz and which country you consider home.
I suppose renting a permanent place i.e. 2 bedder villa with swimming pool in Canggu means that technically Bali is the new home but there are high consequences on income tax.
One would have to get an even larger portfolio to sustain that strategy.
Bali won't be cheap at all in 15y.
Or maybe keeping a place in Perth to go to clariy residency?

Yeah your probably right about tax stuff but you probably just need to be a but more smart about your plans

Anyway plenty of other cheap islands out there if you had to move around to surf and drink beer while your young

 

[Classclown]

I often watch and wonder wether Kelly slater will be still charging 15 foot pipeline on his 50th birthday. True inspiration that guy

 

[Blacky]

I love the idea of part time working in Oz while "based" in Bali in 10-15y however that brings the issue of tax residency if you go over 6 months out of Oz and which country you consider home.
I suppose renting a permanent place i.e. 2 bedder villa with swimming pool in Canggu means that technically Bali is the new home but there are high consequences on income tax.
One would have to get an even larger portfolio to sustain that strategy.
Bali won't be cheap at all in 15y.
Or maybe keeping a place in Perth to go to clariy residency?

Not really.
If you earn money in oz you pay Australian tax. In your example above you are probably better off remaining a resident for tax purposes and being eligible for pro-rated tax, 50% cgt discount, etc.

You really only benefit from being a non-resident when you source the majority of you income from overseas.

If you actually intend to do this, go and speak to a foreign tax expert now, and get your affairs in order.

I am looking to move to SE Asia next year. But I'm already a non-resident so it's a no-brainer for me.

Blacky

 

[starter]

Where are you thinking blacky? I'm in Vietnam at the moment and love it here, plenty of oil and gas guys around as well.

 

[Blacky]

Where are you thinking blacky? I'm in Vietnam at the moment and love it here, plenty of oil and gas guys around as well.

Currently looking at Bali. Its not my first choice...but....
Bali is easy. Everything is there...at your fingertips. Its almost like living in a first world country. Its not overly cheap - but sufficently so.
I dont like the fact it is so full of tourists, and Im not a real fan of their beaches. However, first choices arent practical at this point in life. It puts me within easy reach of my family (direct flight), and its easy for my fiance (who is Russian) for flights and visas etc.

I know many people think that living in Bali would be 'hard', and I guess for them it is. For me though - it is a big step up in living standards.

Other options include Thailand, Phillipines, Malasia and other islands in Indo. However, am also looking closely at Japan. I loved Japan, however, their visas are much more difficult for all involved, and I prefer tropical weather. We are thinking tropical with regular holidays to Japan.

We will likely take a rental for a year or two while we figure out our first option.

As far as "nearing" financial freedom goes, a change of jobs last year put me towards what I consider 'semi retirement'. That is I only work 6months of the year. My current forecast sees me doing this until 2019 (4-5years more). Which puts me 2years behind my "freedom at 35" target. But Ill live with "freedom at 37" . And you never know - if things pan out well I might make it in 2-3 years (or alternatively I might miss it until Im 40).

What will I do then? dont know yet. I think I will take 12months off and do something fun like go sailing - or drive around Oz - While I figure out what Im going to do. I wont sit still for long and will likely start and run a business of some description.

5years is a long time. A lot can change.

Blacky

 

[kathryn d]

Quit my job in 2010..as I was tired of working 40 hrs+ a week, and keeping very little. Most of it ended up being taken away from me in income taxes.

To make sure we could survive on our rental income..we never used my income for the last year of my work.
We just used it to continue paying down debt.

Never regretted it.

 

[skater]

Quit my job in 2010..as I was tired of working 40 hrs+ a week, and keeping very little. Most of it ended up being taken away from me in income taxes.

To make sure we could survive on our rental income..we never used my income for the last year of my work.
We just used it to continue paying down debt.

Never regretted it.

Great to see you back.

 

[kathryn d]

Great to see you back.

thanks skater

 

[china]

thanks skater

Welcome back. Where have you been?

 

[kathryn d]

Welcome back. Where have you been?

thanks China.
Taking a break from posting...but I still would read occasional coffee lounge threads...always entertaining

Keeping busy in Canada and organising annual repairs/maintenance of our properties.

 

[Scott No Mates]

?Mathematical impossibility? for age pension to continue

I had come across this article today Buckleys & None

There are definitely some truths in the article but I find it hard to believe that someone on the 'average' wage with 50 years working life would only have a pittance in super. (I say 50 years because the retirement age is moving to 70, so it will affect most of those who started working in the last 25-30 years)

 

[jaylo]

Currently looking at Bali. Its not my first choice...but....
Bali is easy. Everything is there...at your fingertips. Its almost like living in a first world country. Its not overly cheap - but sufficently so.
I dont like the fact it is so full of tourists, and Im not a real fan of their beaches. However, first choices arent practical at this point in life. It puts me within easy reach of my family (direct flight), and its easy for my fiance (who is Russian) for flights and visas etc.

I know many people think that living in Bali would be 'hard', and I guess for them it is. For me though - it is a big step up in living standards.

Other options include Thailand, Phillipines, Malasia and other islands in Indo. However, am also looking closely at Japan. I loved Japan, however, their visas are much more difficult for all involved, and I prefer tropical weather. We are thinking tropical with regular holidays to Japan.

We will likely take a rental for a year or two while we figure out our first option.

As far as "nearing" financial freedom goes, a change of jobs last year put me towards what I consider 'semi retirement'. That is I only work 6months of the year. My current forecast sees me doing this until 2019 (4-5years more). Which puts me 2years behind my "freedom at 35" target. But Ill live with "freedom at 37" . And you never know - if things pan out well I might make it in 2-3 years (or alternatively I might miss it until Im 40).

What will I do then? dont know yet. I think I will take 12months off and do something fun like go sailing - or drive around Oz - While I figure out what Im going to do. I wont sit still for long and will likely start and run a business of some description.

5years is a long time. A lot can change.

Blacky

Blacky,

I used to semi-reside in Bali for 1 1/2 year till just a coupla months ago.

I will consider residing over there on a full time basis with my girlfriend whilst still working FIFO in Australia in a year or two hopefully however my Australian tax residency status would have to change to non-resident which is impacting greatly on rental income needed to reach financial freedom thus pushing away the semi-retirement age say a dozen years away (provided that my investment and professional career journey are successful).

During my time off in Bali I found that after 2 or 3 weeks spent socializing and surfing/relaxing I was most of the time surprisingly quite happy to get back to work so I would suggest to keep an eye on business/real estate opportunities locally just to keep the brain running and not to lose focus (even though that will lead to dealing with local administrations and get stuck in traffic jams).

On the long term I share general concerns with the Bali expat community as to where the island is going.

As far as infrastructure (traffic, electricity, etc.) and safety are concerned, there is obviously a lack of planning/interest from the government and associated local authorities, deeply aggravated by corruption affairs.

The island is getting crowded: they can't catch up with the Indonesian/expat immigration and tourist infill associated with the recent airport upgrade in my opinion.

Moreover, cost of living is increasing, you obviously can adapt your lifestyle to a pretty frugal one if you deem it necessary however part of the dream is to live in a nice 2 bedroom holiday villa with private swimming pool around Seminyak/Canggu isn't it? These days a nice place in Canggu would rent for 150 million IDR.

Health insurance, international school fees, etc. add up as well once you have a family to take care of.

I'm sure you would have considered these items beforehand however it could be of interest for others and I know many things get over-looked while considering making that move.

Nevertheless Bali is still a great place to live, plenty of cafes, profusion of activities, proximity to Oz and most importantly BLISS so it's all good.

Well that was a long post.

Cheers,
J

 

[jackbak]

Well that was a long post.

Cheers,
J

But a good one too!

Thanks J, good to hear from someone who's 'doing it'.

 

[Blacky]

Thanks Jaylo
Great info an much appreciated - kudos to you!

however my Australian tax residency status would have to change to non-resident

Im not 100% convinced of this. If you are still working FIFO presumably you will still be in oz at least 6months of the year. Maybe more. The Australian govt doesnt like you to be non-resident so they make it easy to be resident. Seek some advice before you go from a international tax expert. I have a great one if you want the details.

I have considered a lot of these things, though havent researched sufficently yet. I am mostly aware of the living costs, and beleive I can get away with spending about $50k/year just in living costs. Half of that goes in rent. So certainly not the cheapest place to live - but like you say Bliss

I have a few hobbies on the list to explore while Im there

Blacky