Julia wants you to keep working

[MIW]

self-employed different to business owners

Almost all of the worlds wealthiest people are self employed.

I am sure you meant business owners rather than self-employed as there is a difference. Most self-employed work in their business and when they stop so does their income. Business owners will have a system in place where they can leave their business, where they do not have to work themselves there, and the business will generate even more income.
For example a doctor can be an employee (working for a hospital), be self-employed (workings as a GP), be business owner (employ doctors who work in a medical practice) or an investor (be the building owner where doctors lease the building to run a medical practice).
By the way I agree with you that some Supers, especially those SMSF where owners take total control, can and have made profits (huge too). I think I read somewhere that SMSF hold more money per SMSF (about $450k on average) rather that Industrial, Retail or Industry funds (about $90k average?). I cannot remember the exact figures but rather that each SMSF held more $ in comparison.
I personally will invest in Super too, as it's still my money which I should not be ignorat off (but under total my control).

 

[MIW]

Invest too!

Agreed about the hard slog.

I've been seven years, drawing the minimum wage, working on average 363 days a year (ok, some days just a few hours, but other days a massive number of hours).

But the payoff is coming. The two shops are worth 1.3M and almost all debt has been paid off. So when I sell it will be rose smelling time.

You should invest some of your business earnings too, just to diversify, in case the business, or the shops are jeopardised. That's what I did with my hubby and it did pay off.

All the best though....it's not easy...we had many changes in our 16 years of being self-employed.....

 

[wylie]

My initial Super grew 45 times (through contributions and investments) when I took it out when I left my job and invested via SMSF (to give an example $70K x 45 = $3.15m). So all skeptics out there even $40K x 45 would give you $1.8m. So go and take control and start investing even your own Super money....

I'm curious to know if this means you took your super, rolled it into a SMSF and from that time it grew from $70K to $3.15M?

If so, I'd love to hear what you invested in. I do wonder if we would be better to roll our super into SMSF, but I'm clueless about shares, and don't want to risk losing our money, so I leave it with the fund who should know about shares.

Just curious about the massive growth you seem to have had, where it was invested and the time frame.

 

[coastymike]

Another common misconception. You don't need to retire to take advantage of the retirement concession.

 

[Deltaberry]

Why not just sell your house and grow it by 45x.

$500k x 45 = $22.5m

 

[coastymike]

I say goh-hòk dtor-lăe

 

[handyandy]

I say goh-hòk dtor-lăe

Is that like BS?

 

[coastymike]

andy .........................................

 

[MIW]

Switching asset classes and investing into undervalued assets

I'm curious to know if this means you took your super, rolled it into a SMSF and from that time it grew from $70K to $3.15M?

Yes, exactly right but the numbers are just an example...... I rolled over Super into out own SMSF and invested directly ourselves into various asset classes.

If so, I'd love to hear what you invested in. I do wonder if we would be better to roll our super into SMSF, but I'm clueless about shares, and don't want to risk losing our money, so I leave it with the fund who should know about shares.

No one has a crystal ball and no fund would know all about shares.... Some companies that existed 50 years ago are gone too. Think of all the Enron employees loosing not only their jobs but their Super too. The answer should be how to protect the capital and where can you invest.....

Just curious about the massive growth you seem to have had, where it was invested and the time frame.

Time frame is since 1995, so 16 years. But the investments are not an easy thing to do. I had learned lots, attended share trading courses, property seminars, books, online subsriptions, learned about changing demographics, about true value of assests as opposed to their price.
Investing and switching between the asset classes was my thing but be warned you striongly need to learn and understand what you are doing. So first in shares, cashed some out and bought right out property, then sold more shares and into commodities (gold/silver), recently sold most shares, and have cash in the bank deciding which asset class to invest into.
Share market, like any asset, can make money if you know what you are doing, have total control over it, protect your capital, so the moment you would enter you need a strategy, and stop loss (decide on % loss when to get out), etc... Property provided extra income and capital growth, even though cannot leverage through Super, and commodities provide insurance against fall of other asset classes. Other investments are IPOs into land development and a private company. Some friends are geologists so resources or changing economic times are useful information.
I suppose it's like being an economist but also and investor when looking at overall picture. It's not easy but education is the key...
As previous person replied you can apply that to anything if you are willing to learn, learn, learn.....
Just remember that in history all assets become overvalued, revert to the mean, and undervalued. If you can compare their value (not their price) to past history and can understand when opportunities arise than you have greater chance of making money. There's so much more to pass but limited space.
Different strategies are sought at different times, for example, we always bought properties against the trends (in QLD when market was down, same in WA, and VIC and so on). So do you invest against the herd mentality?
I suppose the solution is that only you can take total control over your finances and investments so inorder to do it you must learn, act, perservere and repeat the process all over again (you will also learn from past mistakes but you'll have only yourself to blame not others for your investment decisions). I hope that helps....

 

[redwing]

I'm curious to know if this means you took your super, rolled it into a SMSF and from that time it grew from $70K to $3.15M?

If so, I'd love to hear what you invested in. I do wonder if we would be better to roll our super into SMSF, but I'm clueless about shares, and don't want to risk losing our money, so I leave it with the fund who should know about shares.

Just curious about the massive growth you seem to have had, where it was invested and the time frame.

I've also been interested with some of the recent comments, surprised Sunfish hasn't made comment (but then again, maybe he's over shares, the market and subsequent dicussions on SS)

I enjoy reading many of the various stories on this site and it's great that so many are happy to contribute and pass on the knowledge

Is that like BS?

Porky Pies

 

[geoffw]

So - after all the hard work, and taking into account the salary you were earning back then, and the (lost) increase in value to the Flats since you sold them to put the money into the businesses, has the experience been financially worth while?

Kristine

Sorry for the slow response.

I've answered in another thread.