How soon can you realistically retire?

[D.T.]

All could retire on a small income, but most choose not to.

See this show on some aussies living comfortable on $12k per year in Thailand.

The lifestyle they have eg distance to beach, frequency of eating out, weekly entertainment etc, what would be the price tag on thay same lifestyle in Aust? 100k?

 

[kathryn d]

Also Kathryn lives on a very small income. Not many on here could retire on that amount of cash flow. I know I couldn't.
One person may retire and live comfortably on half the amount someone else could.

Ah, but what what you forget to mention, that is what we choose to live on.($12k year)

Our properties bring in $300k a year
We are aggressively paying off the mortgage principle each year, which if we didn't, would add another $48K a year to our cash flow.

So $60K a year, if we used your guidelines...not too shabby

EDIT- each year we pay off the principle, will add to our equity.
How many here will own their properties in a few years, without the requirement of selling off a bunch?

 

[kathryn d]

This is great but how much cash did you have to start? Starting from 20k and starting from 300k obviously will result in different timelines ( if you were investing in similar stock that is)

If I had 300 k when I started I would be done in 3 years, 6 years total

If you retired in 6 years with just one small deposit then you should write a book

Our first property didn't require anything down, it was 100% by the bank.

Our second property was an 11 unit apt building, which we had $58K cash, and the rest was funded by the bank and a vendor finance.

After that we used the equity ($56K) from our PPOR as downpayments for more properties.
Then a couple of years later we refinanced the 11 unit apartment building and withdrew $100K to finance more.

That, along with about $80K available in credit cards, we used it to provide more deposits.

 

[kathryn d]

All could retire on a small income, but most choose not to.

See this show on some aussies living comfortable on $12k per year in Thailand.

True, but the funny thing is, we choose to travel 7.5 months of the year in Australia, when we are on vacation.Instead of living in motel rooms, we are provided with 3 bedroom houses (we house sit)

We eat out as much as we want...we just don't want, as we don't find we get much value for our money.

We don't drink alcohol or smoke.
We don't gamble..except a lottery ticket, here and there

Everyone needs to find what they like to do, when they are retired.
We just happen to be low key.

 

[Singo]

Realistically, can retire in few months. That is by just quitting the job and live off centrelink That is not our plan though.

Sometimes I feel that who live off centrelink are retired and enjoying their life!

 

[travelbug]

Ah, but what what you forget to mention, that is what we choose to live on.($12k year)

Our properties bring in $300k a year
We are aggressively paying off the mortgage principle each year, which if we didn't, would add another $48K a year to our cash flow.

So $60K a year, if we used your guidelines...not too shabby

EDIT- each year we pay off the principle, will add to our equity.
How many here will own their properties in a few years, without the requirement of selling off a bunch?

I didn't think it was up to me to tell people how much you live on (even though you have mentioned it before).
I remember you mentioning that you are paying down loans. As you say, you could pull a lot more if you wished to.
My point was some people say they need $50k to retire, others say they need $100k so when people think they can retire is only relative if you know how much they need to retire on.
I could retire tomorrow but I couldn't travel the world (in the manner I am accustomed) if I did.
I'd love to chat with you about how you do it. It sounds like you have a great life that suits you both.

 

[Ed Barton]

True, but the funny thing is, we choose to travel 7.5 months of the year in Australia, when we are on vacation.Instead of living in motel rooms, we are provided with 3 bedroom houses (we house sit)

But don't you spend a good chunk of that time working at petrol stations in the outback? How much do you rely on this income/bored?

-----------------------------------------------------------------------
I don't like the term retirement - it brings up images of sitting in a chair and watching TV till death arrives...

I could have 'retired' years ago. My business sells brown excrement from China to companies and people that could buy it cheaper on line. I have no idea why they don't just buy my products on line - once my customers wake up to the fact I'm ripping them off I will probably retire... Unless I find some other brown excrement they want to buy.

 

[kathryn d]

But don't you spend a good chunk of that time working at petrol stations in the outback? How much do you rely on this income/bored?

-----------------------------------------------------------------------
I don't like the term retirement - it brings up images of sitting in a chair and watching TV till death arrives...

I could have 'retired' years ago. My business sells brown excrement from China to companies and people that could buy it cheaper on line. I have no idea why they don't just buy my products on line - once my customers wake up to the fact I'm ripping them off I will probably retire... Unless I find some other brown excrement they want to buy.

In reality, Retirement should be replaced with Financially Independent.
Including our flights, we spend about $12k a year for the two of us.
We don't rely on the income from the roadhouse at all.

The first year we went to the outback, it was because there aren't too many house sitting positions there. Instead, I came across an ad on Gumtree, offering meals and accommodation, in return for being a yardman. The bonus was, they also paid Rob. Money is not the motivation. This will be our 4th year returning..probably for about 3 months. Rob likes it there, and enjoys keeping busy. No stress. It's like being with friends/family.I like it because I have time to myself during the day to read etc. When we no longer enjoy our time there, we will stop returning.

 

[travelbug]

In reality, Retirement should be replaced with Financially Independent.
Including our flights, we spend about $12k a year for the two of us.
We don't rely on the income from the roadhouse at all.

The first year we went to the outback, it was because there aren't too many house sitting positions there. Instead, I came across an ad on Gumtree, offering meals and accommodation, in return for being a yardman. The bonus was, they also paid Rob. Money is not the motivation. This will be our 4th year returning..probably for about 3 months. Rob likes it there, and enjoys keeping busy. No stress. It's like being with friends/family.I like it because I have time to myself during the day to read etc. When we no longer enjoy our time there, we will stop returning.

I agree. Your first sentence sums it up. Or being able to do what you want when you want to. You've got that down pat. Good on you both.

 

[Aaron_C]

Does consistently traveling get boring after a while? (genuine question)

 

[kathryn d]

Does consistently traveling get boring after a while? (genuine question)

For me, yes.
That's why I really like house sitting or staying in one spot longer.(roadhouse)
I like living in an area for a while, because then you can take your time, and see it a bit better.Going to their weekend markets, a school fete, parks...

Going to museums, and zoos all the time gets old.
But I still enjoy the homesteads.
Cemeteries can be interesting. (we slept in one, on halloween, a few years ago)
Guided town walks are a lot of fun...wish more towns did that.You learn so much more.

When you research things to 'see and do' so many times it shows cafes/restaurants !!!!
How can that be considered a 'see and do'?

We try to travel the more scenic roads, when possible.

Eventually we will start travelling to other countries.
Guided tours may be considered then....

 

[AlmostBob]

No stress.

Roadhouse: Because they think the sun shines out of my bum, I can fix the water supply.

School fete, in Longford, where the kids of the RAAF roulette pilots go, a primary school fete that got a 30 minute airshow
Farkin Brilliant

 

[MUR]

I am 54, and was able to "retire" at 52.
This was mostly accomplished through owning and then selling a small business.
While owning the the business we diversified into properties and shares, and since selling the business we have diversified further, mostly into more shares.
Starting early, and "having a go" at property and shares allowed us to experience first hand the value and power of being an owner of equity.
It also demonstrated the power of debt and of using other people's money.
There were some hiccoughs along the way such as the GFC, but, as we all know, the direction of the chart of the ASX 200 Accumulation Index, and the price chart of Australian Capital City Property has been a steady upward climb for a long time.
We were very nervous when we sold the business as it had treated us very well for a long time, but protecting our asset base through diversification was the aim, and so far, the plan has worked.

 

[Terry_w]

I am 54, and was able to "retire" at 52.
This was mostly accomplished through owning and then selling a small business.
While owning the the business we diversified into properties and shares, and since selling the business we have diversified further, mostly into more shares.
Starting early, and "having a go" at property and shares allowed us to experience first hand the value and power of being an owner of equity.
It also demonstrated the power of debt and of using other people's money.
There were some hiccoughs along the way such as the GFC, but, as we all know, the direction of the chart of the ASX 200 Accumulation Index, and the price chart of Australian Capital City Property has been a steady upward climb for a long time.
We were very nervous when we sold the business as it had treated us very well for a long time, but protecting our asset base through diversification was the aim, and so far, the plan has worked.

Good work! Do you also have much in super? Being so long you wouldn't have access to it as yet, but not long to go.

 

[MTR]

In reality, Retirement should be replaced with Financially Independent.
Including our flights, we spend about $12k a year for the two of us.
We don't rely on the income from the roadhouse at all.

The first year we went to the outback, it was because there aren't too many house sitting positions there. Instead, I came across an ad on Gumtree, offering meals and accommodation, in return for being a yardman. The bonus was, they also paid Rob. Money is not the motivation. This will be our 4th year returning..probably for about 3 months. Rob likes it there, and enjoys keeping busy. No stress. It's like being with friends/family.I like it because I have time to myself during the day to read etc. When we no longer enjoy our time there, we will stop returning.

Kathryn you have summed it up nicely, its having a choice on what you want to do.

I watched a show where a couple exchanged houses for 12 month period, France/Sydney..... have you looked at this, basically you get the use cars etc. could be another angle to look at

 

[MUR]

Good work! Do you also have much in super? Being so long you wouldn't have access to it as yet, but not long to go.

I am guessing your post should read..."Being so young". I certainly do not feel so young.

We have moved as much as we could into super over the past 7-8 years.
and plan to continue with this strategy.

Our SMSF contains shares and property.

 

[Terry_w]

I am guessing your post should read..."Being so young". I certainly do not feel so young.

We have moved as much as we could into super over the past 7-8 years.
and plan to continue with this strategy.

Our SMSF contains shares and property.

ha ha, yes sorry young! not long.

 

[LeoT]

"Sometimes I feel that who live off centrelink are retired and enjoying their life!"

They are living off our tax paying dollars. If they have a legitimate reason then fine. For all the bludgers and lazy *** people, they are just losers in life.


Leo

 

[ellejay]

Next year for me, I think, aged 44. Can't imagine doing nothing all day or even being on a perpetual holiday. My plan is to do the odd locum, maybe 6 months or so per year and then I think I could easily fill the rest of my time. We've got enough passive income from property to cover all the bills so would just be working for treats if all goes to plan. We've got no kids so I guess we should start selling off the houses every few years and can utilise that income too before super kicks in. Couldn't have achieved that without investing.

 

[Richard Feynman]

Not soon enough, but I'm working on it