Hi everybody
I just wanted to post a little thing that happened to me today.
I was talking to my Boss who is almost 60, he has been working full time all his life and has owned a business for 10 or so years.
He wants to pack up and retire very soon (better start looking for another job then I guess)
We got to talking about his assets.
Assets
Own home fully paid out worth $500k
Business fully owned at $400k for building and around $400k for stock.
One rental unit fully paid off worth $330k returning $450p/w rent.
Unsure how much super. Has SMSF.
He plans on selling the business which could take a few years, could take weeks also but who knows.
He will purchase another one or two properties and live off the rents with the profit of the sale of business.
I also told him it would be good to know that if he ever wants anything he feel cannot afford like a new boat for instance, that he could easily pull $50k from a credit line and either pay it off or leave as is but he said this to me
"There's no way I'm going into debt again, I've been paying off loans all my life and I don't want anymore"
It was then I realised that this is one of the major reasons those who've worked all their lives aren't much richer than they end up. They're simply afraid of debt and don't understand the leverage it could, or could have bought to their table.
He said to me " its ok for you young people who don't make much money because you've got all your lives to pay it off"
He also asked if my newly aquired principal place of residence was interest only or P&I, he sighed when I told him interest only but was in better spirits when I told him it was the only way the bank would let me buy lots of other houses as well so I was much further exposed to the market.
Just had to tell. I respect the man for all he's done for us as employees and also the achievement's for himself and Family.
Hes done very well for someone who did not really dabble in any investments until he bought the 1 investment unit a year or so ago.
I just wanted to post a little thing that happened to me today.
I was talking to my Boss who is almost 60, he has been working full time all his life and has owned a business for 10 or so years.
He wants to pack up and retire very soon (better start looking for another job then I guess)
We got to talking about his assets.
Assets
Own home fully paid out worth $500k
Business fully owned at $400k for building and around $400k for stock.
One rental unit fully paid off worth $330k returning $450p/w rent.
Unsure how much super. Has SMSF.
He plans on selling the business which could take a few years, could take weeks also but who knows.
He will purchase another one or two properties and live off the rents with the profit of the sale of business.
I also told him it would be good to know that if he ever wants anything he feel cannot afford like a new boat for instance, that he could easily pull $50k from a credit line and either pay it off or leave as is but he said this to me
"There's no way I'm going into debt again, I've been paying off loans all my life and I don't want anymore"
It was then I realised that this is one of the major reasons those who've worked all their lives aren't much richer than they end up. They're simply afraid of debt and don't understand the leverage it could, or could have bought to their table.
He said to me " its ok for you young people who don't make much money because you've got all your lives to pay it off"
He also asked if my newly aquired principal place of residence was interest only or P&I, he sighed when I told him interest only but was in better spirits when I told him it was the only way the bank would let me buy lots of other houses as well so I was much further exposed to the market.
Just had to tell. I respect the man for all he's done for us as employees and also the achievement's for himself and Family.
Hes done very well for someone who did not really dabble in any investments until he bought the 1 investment unit a year or so ago.