I frequently dream of what I would do if I had your level of income and savings.
I would get a PPOR. You deserve it. You will need a PPOR at some stage, you might as well acquire it early and let the property increase in equity. Are you based in Sydney? Maybe a house on a decent block of land in a nice area eg: lower north shore? Assume it's just you and your partner, probably don't need a huge mansion.Maybe a 3br in lower north shore house for around $1.5m - you need to expend about $370k for deposit and stamp duty. If you save $200k a year, you can pay it off in 6 years at 45yo! It won't be a lux pad, but why pay rent on one and help pay off someone else's mortgage, when you can easily afford to buy a decent place yourself and pay off your own asset!
That still leaves $230k of your cash, and with your income you've probably saved another $20k since your original post, so let's just round it up to $250k. I would spend the $ on deposits for new IPs. I'd probably buy some new apartments for maximum depreciation benefits. You can get about $1m worth, or pay some LMI and get more. In 6 years time, rents would have gone up, you would have received tax refunds for all the depreciation over the years, and hopefully they would be cashflow neutral if not positive.
You currently save $200k every year and I've assumed that's going to go towards paying off your PPOR. But you will also get pay rises each year. I would use the pay rises to add more IPs to your portfolio every year or couple of years. You should easily have a good pool of properties by 45. By then, hopefully there has been another boom, you can sell some of your IPs to pay off loans on others.
If you don't mind your job, I really wouldn't ditch it at 45. They pay you 10 times what a lot of people out there are earning full time. You can literally work a couple of months a year and earn enough to fund a reasonable lifestyle. I've assumed you would pay off your PPOR by 45yo. The single largest cost of living is accommodation (mortgage or rent). If you have taken care of that and do not need to pay for your accommodation, then you have eliminated a significant expense and you might be suprised how far $50k pa in today's dollars can get you. (Ok, it might be bugger all in the lifestyle you are used to, I wish I can relate ... ) This way, you would still be able to enjoy all the perks of being retired, play golf, travel, do whatever you want to do most of the year. This is worst case scenario, where your IPs are not generating enough income for you by 45. But since you don't mind your job and happy to work on a more flexible arrangement, it's really not that bad!
I don't know much about shares but it seems like you already have some exposure there. I think the property route is safer, you just have to be patient.
I've assumed you are going to do all ove the above on your own with your own income. If you plan to combine your efforts with your partner, it would be even easier for you, and you two would be unstoppable!
Just my 2c.
I would get a PPOR. You deserve it. You will need a PPOR at some stage, you might as well acquire it early and let the property increase in equity. Are you based in Sydney? Maybe a house on a decent block of land in a nice area eg: lower north shore? Assume it's just you and your partner, probably don't need a huge mansion.Maybe a 3br in lower north shore house for around $1.5m - you need to expend about $370k for deposit and stamp duty. If you save $200k a year, you can pay it off in 6 years at 45yo! It won't be a lux pad, but why pay rent on one and help pay off someone else's mortgage, when you can easily afford to buy a decent place yourself and pay off your own asset!
That still leaves $230k of your cash, and with your income you've probably saved another $20k since your original post, so let's just round it up to $250k. I would spend the $ on deposits for new IPs. I'd probably buy some new apartments for maximum depreciation benefits. You can get about $1m worth, or pay some LMI and get more. In 6 years time, rents would have gone up, you would have received tax refunds for all the depreciation over the years, and hopefully they would be cashflow neutral if not positive.
You currently save $200k every year and I've assumed that's going to go towards paying off your PPOR. But you will also get pay rises each year. I would use the pay rises to add more IPs to your portfolio every year or couple of years. You should easily have a good pool of properties by 45. By then, hopefully there has been another boom, you can sell some of your IPs to pay off loans on others.
If you don't mind your job, I really wouldn't ditch it at 45. They pay you 10 times what a lot of people out there are earning full time. You can literally work a couple of months a year and earn enough to fund a reasonable lifestyle. I've assumed you would pay off your PPOR by 45yo. The single largest cost of living is accommodation (mortgage or rent). If you have taken care of that and do not need to pay for your accommodation, then you have eliminated a significant expense and you might be suprised how far $50k pa in today's dollars can get you. (Ok, it might be bugger all in the lifestyle you are used to, I wish I can relate ... ) This way, you would still be able to enjoy all the perks of being retired, play golf, travel, do whatever you want to do most of the year. This is worst case scenario, where your IPs are not generating enough income for you by 45. But since you don't mind your job and happy to work on a more flexible arrangement, it's really not that bad!
I don't know much about shares but it seems like you already have some exposure there. I think the property route is safer, you just have to be patient.
I've assumed you are going to do all ove the above on your own with your own income. If you plan to combine your efforts with your partner, it would be even easier for you, and you two would be unstoppable!
Just my 2c.