Is 10 years of your life worth $2M?

Keith:
If someone told you that you could retire today, but it would cost you $2M.... would you do it?
What about if they told you don’t have to pay the $2M today, you’ve got the rest of your life to pay it off bit by bit?
And what if it was even better than that – it’s not real money that you have to pay it off with – it’s money you would have made if you hadn’t retired

I just don't jell too good with people 'telling' me 'my options/choices'---for better or worse I like to make my own choices, decisions, plans ad it doesn't include 'retiring' from life.:p

I just found investing....the shine hasn't worn off yet, the 'stuff' and 'things' I really want to do in life, I am doing, naturally, that is subjective, it's my stuff, so obviously different to other folks float the boat stuff.

There is no cut off point for me, I see it as an infinite enjoyment, what I think about all this may alter in time to come, meanwhile I'm just doing it. I also feel that I haven't even hit my straps in this yet, there is no goal of 50 million therefore I cease, it's ongoing, the ways and means will vary, I will be experimenting and dipping into other stuff, but there will always be this love and enjoyment of accumulating property, residential, commercial, industrial, land-all of it.

I already do what I want, walk and dance to my own drumbeat, so 'retirement' is not a stage I aim for, to me it's just a word. Some people talk about it....I just do the things I love and love the things I do.
 
"Is 10 years of your life worth $2M?"
Definitely, especially when you see people depart so suddenly. I am at this stage thinking if I should liquidate everything, stop being a slave to a job, investment properties(seeing all the ambulance chasing lawyers open offices everywhere, business must be booming), and a govt which robs hardworking aussies left, right, & centre, and waste my money like there is no tomorrow, buy a big house that I enjoy, and put all the money into Woolworths. This will cover my living expenses. And when I am pension age and if in the very very slim chance that the govt really withdraws the pension, like all the spruikers are predicting, I can always sell the big house and live in a small house. Well I can't really worry too much, can I ?
 
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I'm kind of feeling the same way as "on the move" spelled out.

Hubby (51) has "retired", resigned from a job he used to love, but that had started to change and he was no longer loving work. He had taken LSL and whilst on that paid leave, my healthy and hearty mother was diagnosed with a brain tumour which turned us on our heads overnight. Three months later she was gone, and I believe we both realised that you just never know how long you have, and working a job that is no longer enjoyable was something he didn't need to do.

We are pottering around, enjoying life and each other. We don't have many houses, and still have a big debt, but they look after themselves and we plan on selling one to reduce debt and enable him to stay retired. We have always had IPs running in the background, but we have never been driven to earn more and more. We are more your "lazy investors". There is nothing that we want that we don't have, so we both feel rather content.

If he had stayed at work for another ten or 15 years, we would be so much better off financially, but it was an easy choice. It would have been less easy if we had not done the groundwork for the past 25 years together, but I feel quite comfortable with no salary coming in and the upcoming sale will look after things for some time to come.

Who knows where we will head, but for now, I wouldn't swap what we have for hubby's salary coming in again, nor for the extra million/s in growth that salary could buy over another ten or 15 years.
 
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hmm..certainly different to the one I just checked on the ASX..any idea why the difference on yahoo charts :confused:

I presume it has something to do with Yahoo listing the FPO (follow up public offering price) and the influence of the LGL merger.

The chart looks like this:

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wylie well done

I retired at 56 which is now 4 years ago and never looked back

I hated my job in charge of 60 staff and if I was still there I could be dead
as my blood pressure was 180 over 120
So now I go to the Gym every day my health is now excellent and my wife and I enjoy travel and having a ball

We have enough until we reach 80 after that who cares

Senior
 
wylie well done

I retired at 56 which is now 4 years ago and never looked back

I hated my job in charge of 60 staff and if I was still there I could be dead
as my blood pressure was 180 over 120
So now I go to the Gym every day my health is now excellent and my wife and I enjoy travel and having a ball

We have enough until we reach 80 after that who cares

Senior

Well done Senior, very big achievement which you should be proud of!

One day i hope to join the retirement pool as well

Regards,

RH
 
To those share gurus on this forum, what shares would you buy for a hypothetical $1m, if capital preservation is the #1 priority ? I put some money in LPT, and it lost 40% ! May be to spread the money in each sector, based on my very very very limited knowledge :
Woolworths (I like WOW because my family contributes at least couple of hundred buck each week), BHP, RIO, Ramsey Health etc., some banks (definitely not NAB as now it's only $25 and 10 yrs ago was $30), utilities to give higher dividends.
 
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Not sure about the PE, but NAB racks in billions $ profit year after year.

that still doesn't mean anything in terms of whether the shares are a good buy or not. It's about earnings per share, both quality and quantity. Having billions of $ in profits is different if they had a million shares outstanding versus a billion shares outstanding.
 
To those share gurus on this forum, what shares would you buy for a hypothetical $1m, if capital preservation is the #1 priority ?

I'm not a shares guru, but if capital preservation is your main aim in the sharemarket, I wouldn't invest in the sharemarket at all.

The very nature of the beast is the daily gyrations in the share price, and hence your capital value.

If you're using borrowed money eg. LOCs +/- margin loans, and are taking a passive buy and hold approach, then capital preservation is particularly futile IMO.

Invest in shares for the low-cost passive dividend income stream they create, not to primarily increase your gross ''on paper'' asset base. This will happen in the longer term, but not necessarily in the short to medium term.

If capital preservation is important to you, then use your own cash, rather than borrowed money, to avoid creating a ''negative equity'' situation.
 
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If someone told you that you could retire today, but it would cost you $2M.... would you do it?
What about if they told you don’t have to pay the $2M today, you’ve got the rest of your life to pay it off bit by bit?

[/SIZE]

Have just done this, but I don't think it will necessarily cost us anything.My job was low paying anyways. Every year our cash flow will improve, debts will go down..unless we keep buying more.

The best part..I said to my husband the other day "I think I am starting to look younger now that I am no longer working (employed work). I have some color in face,and am feeling less stressed."
 
Assume these IPs grow 100% over 4 yrs, giving $2M worth of IP with $1M of equity.
But the rent only grows by inflation – say 20% over the 4 yrs.
If the yield was 5% on the original purchase price – it’s now 6% on the original purchase price. So you have 6% income, but still have outgoings of 8.5% (6.5% interest+2% costs).

Since when does IP grow 100% over 4 years?

So the $1M equity in the example is reduced to $750K after sales expenses & CGT. Investing it all in LPTs yielding 8% will give an income of around $60K usually indexed linked. The sacrifice is the $2M growth you’ll miss out on over the next 10-year cycle.

and then your $750k would today be worth $100k as LPT's were not worth the paper they were written on!



NB I am not an advisor & this is not advice[/SIZE]

nope cause no adviser would assume any asset to double in 4 years!
 
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