Retired folk, care to share with us?

[sash]

Thanks for posting this.

You are not alone...a couple of people I know in Sydney also did this. They had $2.5m homes and borrowed against shares with margin loans with no protection - i.e. options. They has to take a second mortage on their property.

Oh that was easy to do - just ramped up the loan to 80% of the 2008 value (i.e. take another $1.2m in loan) and then used that to act as collateral for a margin loan of another 70% LVR (so a further loan of $2.9m secured by the home loan ) and bought $3.1m of shares .... then this GFC thing came along ... The rest as they say is history.....

To avoid major margin calls and manage cashflow etc, had to sell off half the properties (just at a stage where Melbourne had peaked and prices were beginning to fall...)



Moral of story: Try not to get too greedy.

The Y-man

p.s. I don't think I am very astute!! Still learning...

 

[Dazz]

1/ How old were you?

'bout 2 years younger than I am now

2/ How, did you do it?

Told the boss to shove his job, I ain't comin' back.

3/ Are you comfortable?

Very comfortable thank you. I'm currently sitting back in a soft reclining chair in the Swiss Alps, smokin' a big fat Havana whilst it is being rubbed on the thigh of an 18 yo Brazilian beach babe, and sipping on a XO Hennessy cognac.

4/ Are you enjoying life, more-so than before? And how so?

Very much so. Yes - more so than before. The boss would never allow the Brazilian to stay in the office.

5/ Do you wish you had done this earlier in life?

Yes of course. Earlier in life it was a Winnie Blue, from under the sleeve of Shazza from next door, slurpin' on a VB whilst hanging out in the Sandman panel van.

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

Dunno, the Brazilian handles all of the dosh. As long as I've got enough for the ol' B,S&C wax treatment, everything is coolo.


Life is grand. Cheers.

 

[kathryn d]

I just thought it would be a nice idea to hear stories from the ones who have retired.

I'd really like to know


1/ How old were you? I was 50 and Rob was 46

2/ How, did you do it?We have a variety of properties, for different ages,wages,and purposes. Most properties are very basic and inexpensive.We developed a property into 11 furnished bachelor suites.We bought another 11 unit family building with a bad reputation, and turned it around.We buy properties that usually are difficult to obtain financing, for one reason or another, as they have been on the market for awhile.

3/ Are you comfortable?Yes, very. We are on a self imposed small budget because we have important financing we need to obtain in a few months.We are also paying down debt.

4/ Are you enjoying life, more-so than before? And how so?Very much so.We have the time to just enjoy the small things in life, such as reading a book, watching movies,spending time as a couple (first time without kids since we married 8 1/2 years ago.) Not having to work 24/7.

5/ Do you wish you had done this earlier in life?No, it was carefully planned to coincide with our youngest child finishing grade 12

6/ And if you're really keen to share (and I hope you are) We have our housing,utilities,internet,cable and car costs paid for.We have given ourselves a budget of $1000 month for food, petro, travel and spending money. In a couple of years we will be able to reassess this budget, and decide if we really need to increase it.At the moment it is 4 % of our gross monthly income.
What type of income(s) do you receive, and how much does this equate to?All of our incomes from rent

I figure this might even help those who are retired see how their budget is looking, and what it might look like into the future, it's always healthy to do this.

..........................

 

[investor2009]

Thank you for chiming in, I appreciate it.
And I must say, you sound like a very nice, and peaceful person. Congratulations on your efforts

Hi
Regular lurker, not much of a poster though.
Don't really like to think of myself as `retired folk' but I have been living off passive income for a while.
I have learned a bit from the early retirement thing though which might be useful for someone.
Please excuse my incompetence at quoting other people's text.

1/ How old were you?
First time 30, mucked it up. Second time older and wiser 40.

2/ How, did you do it?
Residential property, then businesses (offline and internet), then commercial property. Never bought a share or did any of those financial `masters of the universe' type of things. Bought mostly in recessions where values didn't rise for years and everyone was saying `there's no money to be made in property any more it isn't like the 70s/80s/90s' [take your pick]. Looked for ways to add value myself.

3/ Are you comfortable?
Yes

4/ Are you enjoying life, more-so than before? And how so?
Yes, love my life, it is quite different from before, less structured, which has pros and cons. The biggest lesson on all of this for me was I always wanted to get to the point where I had choices. Funny thing is when you get there you realise you had choices all along. Unless we are truly on the receiving end of some terrible tragedy most of us in the developed world choose how we live our lives, we just imagine we don't. Money has very little to do with it. That probably sounds very cliched but it was a huge realisation for me.

5/ Do you wish you had done this earlier in life?
No I think everything happened exactly as it should have.

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

Rather not share exact numbers, but it is more than I need to live my life. I'm not a big shopper (those frugal property investor habits die hard) but I mostly travel business class and eat out too often! I've only been retired a couple of years though and am starting to think I will get back into it and do another project to keep the brain stimulated.

One of the things I would add is that I imagine I am similar to most people on this board and pretty goal oriented. That's why we are the ones investing and striving for something. One of the points to consider if you are thinking about retiring is how you are going to feed that side of yourself. It is fine to go out for coffees, do charity work, mentor other business people, go to the gym but unless you are running the charity or business or training for a marathon those things don't propel you in the same way as aiming for a goal.

Maybe one day I'll be mature enough to just live in the moment and not need a goal but I'm not there yet
I do realise how privileged I am though and wouldn't change a thing.

Cheers,
Melanie

 

[intrigued]

No - our strategy was quite a mixed bag.
I have posted before (while we were doing it actually) but it involved mutiple activities (all ultimately linked to the share market) - day trading, managed funds, ETO trading to name a few (didin't get to CFD's )




I knew the risks - and it could have been a lot worse had some steps not been taken. There was use of put options etc to protect some of the capital... but in the end, greed won out (didin't seem worth the costs)

There was a worst case scenario I knew could happen - the thing was it did ... well almost!

What was ok?

IP values didn't crash down... so we were able to sell down and settle some unhedged debts

We both still had jobs (lucky didn't quit the dayjob!)

The gold stash had doubled in value - so sold that down to settle some unhedged debts.


The Y-man

Y man: I would love to read your posting during this period, but how would I find them as your post only go back to last year.

regards

 

[Pretty]

I just thought it would be a nice idea to hear stories from the ones who have retired.

I'd really like to know


1/ How old were you?

2/ How, did you do it?

3/ Are you comfortable?

4/ Are you enjoying life, more-so than before? And how so?

5/ Do you wish you had done this earlier in life?

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

I figure this might even help those who are retired see how their budget is looking, and what it might look like into the future, it's always healthy to do this.

Answer 1: 29

Answer 2: Work very hard with my late partner spend nothing on food and cloth but after all the utilities bill and etc save all the money we earn, My late partner semi retired when he alive but at the same time earn about 200K net through the business he own and when he pass away i got inheritance

Answer 3: Very comfortable, i can do anything now without worry about money. I did improve my boyfriend life too.

Answer 4: Yes i am enjoying my life, traveling, doing what i like to do without worry about get paid well or not (well it paid really well). But at the moment i am on holiday and missed home now.

Answer 5: I am still young, so i guess i am a bit too early for my age to retired. But really want to volunteer for charity work. So this is my goal, doing charity work for my full time work.

Answer 6: I guess if you read some of my post in other thread you know where is my income come from. Plus approximately 30K gross per year interest i get from the money that i put in my term deposit.

 

[charttv]

Very comfortable thank you. I'm currently sitting back in a soft reclining chair in the Swiss Alps, smokin' a big fat Havana whilst it is being rubbed on the thigh of an 18 yo Brazilian beach babe, and sipping on a XO Hennessy cognac.

Much ROFLing to be had here Dazz

 

[yadreamin]

Y man: I would love to read your posting during this period, but how would I find them as your post only go back to last year.

regards

I remember reading them with envy.
It seemed at the time the next step for the Y-man to take to ramp up His returns.
I am very sorry to hear that it went pear shaped and so badly.
I have suffered enough just from buying an ip, capitalising interest with a no-doc loan and a pitiful neg-$s.
currently unemployed and going backwards fast
positive thoughts just dont seem to be doing it
cheers

 

[Sunfish]

I just thought it would be a nice idea to hear stories from the ones who have retired.

I'd really like to know


1/ How old were you?

2/ How, did you do it?

3/ Are you comfortable?

4/ Are you enjoying life, more-so than before? And how so?

5/ Do you wish you had done this earlier in life?

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

I figure this might even help those who are retired see how their budget is looking, and what it might look like into the future, it's always healthy to do this.

Nosey aren't you? Yes I'm retired and if you wanted a specific answer about planning I would be inclined to answer if I felt I was qualified. But this? No!

 

[Gordon Farkus]

i can do anything now without worry about money. I did improve my boyfriend life too.

I actually doing nude modeling and sometime escort job (not prostitute though, i don't need that). You might see me in a adult magazine (not telling which one for my confidential). Mens just love shower money to me (since i got that attractive look that men fall in love with me so easily). I had stop for a while doing nude, but will go back doing that when i have my cosmetic surgery done next month.

Thanks for advice...yeah i know a lot of my friend said that i am so attractive and why i need to do this. But to be honest i have 7 procedure done in 2009. 3 separate operation. That why i got this attractive look (i do have natural great look before all this operation). Even men that i know they try to stop me. But i am so obsess with cosmetic surgery, and i know is just all about my head. Not insecurity. My boyfriend do stop me doing this too. But this time i promise my self (always did promise but never do) is the last one, and the most extreme one. I got 6 procedure in one go operation. My boyfriend do love me a lot. I don't simply have a permanent boyfriend if they are ****. He is very genuine.

Most of my surgery done with that doctor in Thailand and he do really good job on me and i trust him. So many of my friends done something with him and he do really good job on them too. I did my lip and eye lash transplant here in Australia and the result is just so so. He gave me so good deal with 6 procedure together, which tempted me. All together cost me around 8K and if i would do it here it will cost me 55K. I save 47K. And a holiday too while i am recovering (I know i have holiday whole year around). I don't like spending too much money on surgery, i rather donate that money to charity. My heart feel guilty if i spend it on thing doesn't make sense such as plastic surgery.

Hilarious. I wish I could have also included your great post responding to the Cup Size Poll but it was unfortunately deleted. Come on, out with it - you're Ting Tong from Little Britain, aren't you?

 

[Pretty]

Whatever! You not the first one that had jealousy. And you mean nothing to mean. And for your information i am not British background.
You are one of those people that put other down, and try to look at your self. Are you any better than me.

 

[Gordon Farkus]

Whatever! You not the first one that had jealousy. And you mean nothing to mean. And for your information i am not British background.
You are one of those people that put other down, and try to look at your self. Are you any better than me.

Pweeease, Mr Dudwee, Pweeeease!

Keep up the good work Ting Tong.

 

[Pretty]

Talk to my hand

 

[joanmc]

Pweeease, Mr Dudwee, Pweeeease!

Keep up the good work Ting Tong.

I think in this case you are mistaken and therefore are being quite rude.....

 

[investor2009]

What's this thread turned into, playschool?

No-one wants to hear the junk that came from the last 10 posters or so and I'm sure none of you would be doing this if you were face to face... On a lighter note, I can see a bright future for you all in politics. Apart from that, feel free to carry on.

 

[The Y-man]

I am very sorry to hear that it went pear shaped and so badly.

Don't be sorry for me! I appreciate your thoughts, but seriously - it was an incredible learning experience about money, me, and a load of other things - among them being that "having lost it" has lead to a much more relaxing and perhaps less stressful lifestyle. Maybe that's one of the biggest learnings - the lifestyle while we "had it" isn't that much different to now "without it" - just a lot less paperwork and simpler tax returns


The Y-man

 

[AAA]

Y-man,

Very impressive. Congrats on your achievements!

I am sure you are destined for bigger and better things ahead.

AAA

 

[Sheryn]

I just thought it would be a nice idea to hear stories from the ones who have retired.

I'd really like to know


1/ How old were you?
Hubby 53 and myself 54 I worked a few years longer.

2/ How, did you do it?
Both worked at slightly below average paid jobs, hubby full time and myself mainly part time, we budgeted, saved, built duplexes & houses sold earlier ones and kept later ones with loans etc as I learnt later on in life what possibly we should have done 20 years earlier.

3/ Are you comfortable?
Yes, currently sitting in caravan at beach, should be home getting PPOR ready for sale but no hurry

4/ Are you enjoying life, more-so than before? And how so?
About the same, we have a good life, health, family & friends.

5/ Do you wish you had done this earlier in life?
Hindsight is a wonderful thing - the possibility was there 5 years earlier to take a year off and travel, hubby wasn't ready. We started planning for this at 40 years of age eg retirement, so the plan roughly happened.

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

When we are organised we will sell our PPOR and put money in offset account so will live off rent whilst we travel Oz. Rent should equal one slightly below average wage so same $'s we have lived off most of our married life.

When we finish travelling we will need a PPOR to live in so we will live in one of our IP's (note all IP's have loans against them), Rent income will then decrease so we will access Super after 60 years of age as tax free to maintain an income to live off.[/COLOR]

I figure this might even help those who are retired see how their budget is looking, and what it might look like into the future, it's always healthy to do this.

The one thing we have done inconsistently is have a go at doing something and to try to improve our financial position by building up savings (cash, term deposits), shares (only hold 10K atm) superannuation (now under my control in SMSF) & property with loans

We have a few friends & relatives who earn lots more money then us and they spend it faster than us and we have a few friends and relatives with lots more money and toys so they need someone to go with them when they use their toys, occassionally that will be us going with them.

In essence we have retired 14 years ahead of retirement age eg 67 but I am sure we will do 'some project' when we stop travelling Oz or otherwise the Westpac Comfortable Couples Lifestyle Income will increase and our income won't keep pace.

BTW
We have never been overseas.



Cheers
Sheryn

 

[bobby]

Retirement.

I'd really like to know


1/ How old were you?

57

2/ How, did you do it?

I was offered a redundancy and took it. Prior to my redundancy I had 7 IPs and borrowed against them and invested into the share market with a margin loan from LE. Went bad, I was lucky to get out when I did.

3/ Are you comfortable?

Living in Asia as it is cheaper than Oz. We are renting out our house in Sydney and living off the rent.

4/ Are you enjoying life, more-so than before? And how so?

Living very well, off to Bali in the next week, then Macau. Doing some travel every 6 weeks. My wife gets homesick sometimes, we will probably go back to Sydney for a few weeks this year. I couldn't care if I never went back.

5/ Do you wish you had done this earlier in life?

No, it was about right. We are enjoying our lives, we get out of bed in the morning when our body tells us, not when an alarm clock tells us.

6/ And if you're really keen to share (and I hope you are)
What type of income(s) do you receive, and how much does this equate to?

We have some super plus the rent off the house. The rents on the IPs cover the mortgages. We are drawing down on the super and will sell off properties in years to come if need be.

 

[Ridin-High]

Bobby sending you a PM