On retirement

[Beachbum]

Hi everyone, I would like to establish for myself how I will fund retirement. I.e. 1. Will I be selling some property in order to live off the rent? 2. Live off the equity by borrowing (from the bank) to live. I have been weighing up both options for a while now and haven't settled on either option. Currently retirement is a way off (10 years) and I'm accumulating property as fast as I can. I'm interested to know your thoughts.

Thanks, Beachbum.

 

[china]

Vas
vts
vge

 

[Biz]

Vtec

?........

 

[pinkboy]

My retirement plan is simple:

Recurring rental income.
Recurring dividend income.
Recurring business income.


I'll leave you with what the magic verb is above.


pinkboy

 

[Angel]

I think China means Vanguard

 

[WillG]

I plan to fund retirement with

some rental income,
some dividend income from shares,
some cash in cash investments providing interest income,
selling some rental properties over the years to balance portfolio,
superannuation income/annuity becoming available after reaching preservation age,
some part time work


In summary ... many forms of income during retirement at different phases. Purely living off rental income probably isn't the most efficient means of generating income alone but maintaing some rental properties and a ppor is a good hedge against inflation

 

[hobo]

My retirement plan is simple:

Recurring rental income.
Recurring dividend income.
Recurring business income.

+1

(+10 char rqmt)

 

[Richard Feynman]

Recurring income from a bunch of sources - multiple businesses, rent, investments/dividends etc.

I have no plans to sell any properties*. Why let go of an asset that will both grow in value and increase in cashflow over time?

----

It's good that you have an idea of when you will retire.

Some questions remain:

1. How much recurring income do you want in retirement?
2. What is the current value of your portfolio? (incl overall LVR)
3. What is the current cashflow of your portfolio?
4. What is your current income?

*This may not apply to developments I undertake (in the future), or situations where I believe I can sell to redeploy the capital into another investment creating a higher return.

 

[Scott No Mates]

My retirement plan is simple:

Recurring rental income.
Recurring dividend income.
Recurring business income.

The three Rs. More defined than the property spruikers 'position position position'.

 

[Ace in the Hole]

Rental income alone is the plan.
Every other source of income will be a bonus.

 

[Indifference]

"Retirement" is different things to different people.....

There is no black & white answer. It is not A+B+C and nothing else...

It is or can be, comprised of everything stated thus far plus more. It can change over time. Actually, retirement could stretch for decades hence, a changing approach to financing retirement will be essential for many. Not to mention drastically changing needs over time. (age, health etc..)

My point? Try not to pidgeon hole yourself into this or that. Build a diverse, balanced portfolio that has a good measure of cashflow and CG potential. Don't be afraid to diversify a little with superannuation, managed funds, shares, cash, bonds, annuities, art etc... The rest will take care of itself with time.

 

[baby blue eyes]

Rental income, dividend income and super income, that's a few years away for the Smsf pension.