Once you retire, how ?

[oasis1frog]

This is a follow up on another thread "Once you retire what do you tell people you do? "
I know you are ready to walk away/retire from your 9-5 day job when return from your investment is sufficient to cover the living expenses. I know the principle of LOE etc., but interested to know how the others quit the day job. Do you convert the equity from property investment to share/managed fund so you can have a more "stable" income ( I know the share market is as stable as a 2-legged stool right now) and hassle free "retirement" ? Do you LOE ? Do you get a part time job to supplement the income ? For me I will never retire as I will be bored stiff doing nothing, but looking for more flexibility and something more interesting.

 

[WillG]

I haven't retired but but when I do I intend to generate income from IP rent, cash, LOE, share trading and part time jobs. The means of generating income will be dependent on the returns from each and where the cash and equity is working hardest. I suspect I will be using several income generation methods at any time to ensure the safest, highest and most tax effective returns. Some would call this an 'active retirement'

 

[LynnH]

Our retirement income will come from a variety of sources: property rents, superannuation, share dividends/imputation credits, share trading, military superannuation pension, and income from cash investments. The largest source of retirement funding will be our SMSF - our property income has always been regarded as the 'icing on the cake'! Using LOE is not part of our retirement plans at present, but always remains an option in the future.

Cheers
LynnH

 

[VYBerlinaV8]

I haven't retired but but when I do I intend to generate income from IP rent, cash, LOE, share trading and part time jobs. The means of generating income will be dependent on the returns from each and where the cash and equity is working hardest. I suspect I will be using several income generation methods at any time to ensure the safest, highest and most tax effective returns. Some would call this an 'active retirement'

I'm of the same opinion. I plan to use IP equity to buy into yield oriented managed funds, balancing this against the costs and tax implications of property debt at the time. I like the idea of having IPs the grow in value, rents to cover IP holding costs, shares (through funds) to provide income, and whatever growth the shares funds achieve (as long as it's greater than inflation in the longer term, I'll be happy). That way, IPs grow in value, rents increase over time, shares grow in value over time, and the whole portfolio can be balanced to produce income according to my requirements, as I see fit. Plus I'll do some professional consulting on the side to keep my hand in, so to speak, in case I decide to return to full time work later on.

 

[alexlee]

I imagine it as something I'll grow into. I won't suddenly wake up one day and decide to retire and then rearrange my portfolio in a day. More likely, As one part of the portfolio (resi IPs, or developments, or whatever) starts producing a lot of cash, I'll just slowly move towards buying more high yielding shares, bonds, etc. It's likely to be a process spanning years. Unlike running a business and then selling it, or working for an employer and quitting, I don't think there is such a sharp cut-off for investing. You just slowly ease up on projects, say, as the income producing stuff gets bigger.
Alex

 

[marg4000]

Hubby and I are on the "run down" to retirement.

We have sufficient superannuation to live on more than comfortably, and will take 2 IPs into retirement worth about $1M with around $300K in debt - we intend to simply let them pay themselves off.

We intend to keep working, but shorter weeks. Fortunately we both love our jobs. This year i went from 4 days a week to 3 days a week, and am lucky in that I can choose when to go to 2 days a week, probably 2010. Hubby is in the throes of going from 5 days a week to 4 days a week, to be followed, probably 2010, by 3 days a week.

Anyway, that's the plan over the next 4-5 years, at which time we will review things.
Marg

 

[BillC]

I have been semi retired for nearly 12 months
Have a casual job 20 hrs/week have Super which have not touched 6 Ips
which are a mix of positive neutral and negative geared.
Have Managed Funds and shares
I have a line of credit and doing the LOE
In the last 12 months through the IPs my wealth has grown by 200k
I know this could be a one of but on balance my equity should always be
better than my debt
The important thing that has helped me is an LVR of 51%
I started planning for my retirement in 1996 so it been a 10 year plan

 

[oasis1frog]

That's great to see you guys have been planning for your "retirement". For the past few years, I have been concentrating on IPs and nelgected other asset classes, but find myself the more IPs I got the more I am tied to the job. It now time to diversify and move away from the situation of needing the job to fund the -ve geared property portfolio. Thank you for sharing your insight & experience, much appreciated.

 

[Simon]

I just tell people I am a full time Dad. Saves having to explain how I "retired" at 34. I have actually had people give me some grief about being too money focussed when they find out I don't need to work.

So being a Dad gives me an easy out and makes me look good

 

[oasis1frog]

I just tell people I am a full time Dad. Saves having to explain how I "retired" at 34.

I envy you, but what do you do all day ? There's only so many hours investing you can do in a day.

 

[WillG]

There's only so many hours investing you can do in a day.

Investing in 'life' rather than investing your time to make somebody else rich

 

[Simon]

I envy you, but what do you do all day ? There's only so many hours investing you can do in a day.

Well I am a full time Dad, single too. So that does keep me busy. Spend a bit of time on my biz, spend time with friends.

My girls get home from school and I am busy running them around, homework, dinner etc etc I love it all.

Try to have a LLD each afternoon as well

Doesn't sound busy but I fill my days easily enough.