I'm not good with polls etc, so this is a very simple thread!
If you are anything like me you will have worked out how close you are to being able to throw in the job and live off your investments. Many on here will already have thrown in the job which is great, and I'd love to read your stories as well.
I'm not wanting people to publish their numbers, $ or amount of properties held or anything like that. Generic answers and illustrations will suffice! I find reading other people's investment stories interesting and inspiring and it motivates me to continue on my own journey towards financial independence!
In my case, if I were to contemplate this, right now I would have a number of options:
1) Keep the existing IP portfolio and set the loans to gradually pay down the debt - working part time in the interim. Buy an IP which supports itself in a SMSF and sell this down upon retirement, or use the income to supplement existing investments. This would be a longer term strategy.
I could go part time today if wanting to implement this, but the strategy above would be 20 yrs or so. This would see all debt retired and a fairly substantial income stream in retirement. I would think I'd be able to scale down to minimal work (2 days per week) after 7 yrs or so. (Approx).
2) Keep the existing IP portfolio, buy a com prop, work part time and sell down one or two in the future to retire investment debt - working part time in the interim. Also would be able to buy an IP in a SMSF and either sell this on retirement, or use the income to supplement existing investment income.
Similar time frame to the above, although I could go part time immediately after purchasing the com property, scaling down work to minimal hrs after 7 yrs or so.
3) Sell all resi IP's, retire investment debt and pay dues (CGT, selling costs etc etc) invest the difference in higher yielding investments such as shares or com property or a combination of both. Have enough income from the investments to be able to chuck in the job, but would need to be certain/confident that the underlying investments would continue to provide income that grows with inflation over many, many yrs.
If followed this strategy, I could throw in the job immediately as the income generated would be more than my current full time salary, and my expenses are less than this. I would need to be confident that the income generated from the investments would rise above inflation over the long term.
4) Sell some IP's, making the rest of the portfolio +ve, pay down remaining debt gradually while working part time.
Could go part time immediately after selling (or even before). Would probably take 7 yrs or so (approx) to retire the remaining debt on the portfolio.
Obviously stage of life is a significant factor to consider. For myself, I'd be wary of throwing in the towel too early on and running out of money at a later stage in life!
LOE (Live off equity) doesn't sit well with me, (although it may with others) so my strategy is basically a LOR (Live off rent) or LOD (Live off dividends)
Over to you!
Regards Jason.
If you are anything like me you will have worked out how close you are to being able to throw in the job and live off your investments. Many on here will already have thrown in the job which is great, and I'd love to read your stories as well.
I'm not wanting people to publish their numbers, $ or amount of properties held or anything like that. Generic answers and illustrations will suffice! I find reading other people's investment stories interesting and inspiring and it motivates me to continue on my own journey towards financial independence!
In my case, if I were to contemplate this, right now I would have a number of options:
1) Keep the existing IP portfolio and set the loans to gradually pay down the debt - working part time in the interim. Buy an IP which supports itself in a SMSF and sell this down upon retirement, or use the income to supplement existing investments. This would be a longer term strategy.
I could go part time today if wanting to implement this, but the strategy above would be 20 yrs or so. This would see all debt retired and a fairly substantial income stream in retirement. I would think I'd be able to scale down to minimal work (2 days per week) after 7 yrs or so. (Approx).
2) Keep the existing IP portfolio, buy a com prop, work part time and sell down one or two in the future to retire investment debt - working part time in the interim. Also would be able to buy an IP in a SMSF and either sell this on retirement, or use the income to supplement existing investment income.
Similar time frame to the above, although I could go part time immediately after purchasing the com property, scaling down work to minimal hrs after 7 yrs or so.
3) Sell all resi IP's, retire investment debt and pay dues (CGT, selling costs etc etc) invest the difference in higher yielding investments such as shares or com property or a combination of both. Have enough income from the investments to be able to chuck in the job, but would need to be certain/confident that the underlying investments would continue to provide income that grows with inflation over many, many yrs.
If followed this strategy, I could throw in the job immediately as the income generated would be more than my current full time salary, and my expenses are less than this. I would need to be confident that the income generated from the investments would rise above inflation over the long term.
4) Sell some IP's, making the rest of the portfolio +ve, pay down remaining debt gradually while working part time.
Could go part time immediately after selling (or even before). Would probably take 7 yrs or so (approx) to retire the remaining debt on the portfolio.
Obviously stage of life is a significant factor to consider. For myself, I'd be wary of throwing in the towel too early on and running out of money at a later stage in life!
LOE (Live off equity) doesn't sit well with me, (although it may with others) so my strategy is basically a LOR (Live off rent) or LOD (Live off dividends)
Over to you!
Regards Jason.
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