is 50 too late

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From: Pamela Richardson


Dear subscribers

I have been reading your forum with great interest and appreciation, yet with a feeling of panic at the little I have done to try and ensure my financial independence by retirement (60-ish). I will be 50 in a couple of months, am single and live on a relatively lowly wage (approx. $37-38000). However, on the bright side I have a home with no mortgage ($300k) and my first, recently purchased IP ($177,500 with $26k equity).

My question is that given my salary - even with likely increments over the next 10 years - would I be fanciful in thinking I could purchase enough property to allow for financial independence by 60? viz - to live to my current standard of living - not necessarily great wealth. I understand that no-one has a crystal ball in front of them but would be grateful for any feedback from those who have experience and knowledge over a period of time of acquiring property. Perhaps I am asking too much of you.

Pamela
 
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Reply: 1
From: Kristine .


Welcome, Pamela

What a wonderful position you are in. Tick the boxes: Steady income: Fully paid asset: Desire to do better: Definite time frame. Plus, that magical quality of maturity, what a great combination!!

Over the next ten years you could certainly accumulate enough capital in terms of equity in property to produce sufficent income to feel truly independent for the next thirty years of your life.

Current income limits for a single person before they are considered self-funded retirees and therefore have little or no support from the Government are very generous, around $25 or $27,000 per annum. Contrast that to the actual age pension of approx $180 per week ($9,360per annum) and what you are looking to create is extra income of approx $17,500 pa. At 5% yield, you would need fully paid income producing assets of approx $400,000. Obviously, it isn't possible for you to save this amount in ten years, but with careful planning and investment you could come within spitting distance of it.

And no, do not get caught up in any 'get rich quick' schemes. You have to be able to feel comfortable with whatever you decide to do. The significance is CAREFUL PLANNING AND INVESTMENT.

Good luck. You have plenty of time. Hasten slowly, and decide to act within a specified time frame and you will achieve your goals.

Best wishes

Kristine
 
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Reply: 1.1
From: Steve Navra


Hi Pamela,

Your position is good and you should easily be able to achieve your desired result, long prior to 60.

Please refer to previous postings on 'Structured Gearing', which should give you some indication of how this could be achieved.

The fact that you have a paid off asset, allows you to convert this value into an income stream for serviceability purposes, so you should be able to progress your plans without much difficulty.

Regards,

Steve
 
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Reply: 2
From: Rolf Latham


Hi Pamela

Perhaps life begins at 50 :eek:)

A 10 year investment horizon should be sufficient to allow you to do things other than salary sacrifice to superannuation.

Like get control of your own financial future direct investment in property.

Get to it .

Like Uncle Steve suggests, have a look at some of the more aggressive (but still reasonably safe) methods of using your built up equity - you will be pleasantly surprised.


Ta

Rolf
 
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Reply: 2.1
From: Jeremy Laws


NO NO NO!!!
NEVER EVER EVER too late! In fact I believe you may do _better_ because you will buy 'smarter' than the rest of us have been. For a start you have a huge learning resource available here, and if you cleverly use some of the strategies people here have (like 'mine' obviously the best! 2-3 cashflow properties for each hi growth/neg gearing property) you will be amazingly well off in 10 years time. Done correctly (you will no matter _what_ you do make mistakes though!) I guarantee you that no matter what goals you realistically set yourself you will massively over achieve.
 
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Reply: 2.1.1
From: Pamela Richardson


To all of you who responded to my posting, thank you for your 'call to the ranks' (your urging to just get in their and do it) and for pointing me in the direction of potential income streams. I shall look further into structured gearing and cashbonds after reading some of Steve's past postings and shall continue to be an avid reader and student of this forum.

Steve - could you possibly send me more information on cashbonds by email? I have requested already through your email so I may be doubling up. thanks

Pamela
 
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Reply: 2.1.2
From: Brett Burt


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Property is the way to get out of gaol for many people when they have =not got enough super etc. looking at retirement. Smart property =investing (and even developing) can accelerate wealth creation greatly =and make up for the misspent youth ! It is making up for mine. GO FOR IT

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Property is the way to get out of gaol for many =people when
they have not got enough super etc. looking at retirement.Smart =property
investing (and even developing) can accelerate wealth creation greatly =and make
up for the misspent youth !It is making up for mine.GO FOR
IT

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