Retirement- Yipee!!

RPI

RPI

I've taken the plunge and am retiring. I have 5 days left at work. I have bought a $62.5K Cashbond (thanks Steve) which is twice my current income so I am definetely looking forward to that.
Steve navra has another course in Brisbane in January and would thoroughly reccommend attending it.

I thought that I was going to have to buy houses, renovate them and sell so I could give up work but found out during Steve's last Brisbane couse about Cashbonds and worked out that I could leave work and not need do anything. Though I still will buy houses and renovate them, but I'll keep them instead of having to sell and I think I'll have a bit of a holiday first.

Needless to say I am very excited at the prospect and looking forward to never working for anyone else again!

Darryl
 
Originally posted by RPI
Needless to say I am very excited at the prospect and looking forward to never working for anyone else again!
Darryl
Click to expand...


Congratulations Darryl!

If Warren Buffet offered you a job for a year as his Personal Assistant, would you take it? If Frank Lowry wanted you to be his chaffeur for a year, would you take it?
 
Well done Darryl.

I remember speaking to you at Steve's seminar after you realised you could probably retire with your current assets. You could barely keep the smile off your face then. You must be over the moon now.

John.
 
Darryl,

Well done mate.

Can you tell us a little more so we can get an idea of what exactly needs to be achieved tho purchase a cash bond such as yours.

ie.. how much equity did you need to put this plan in place ?

I assume you borrowed against equity ?

Are you deducting interest against income ?

Can you tell us the cash bond rate of return vs interest in borrowed funds.

I have read about this strategy but am yet to hear of someone who has implemented it. Very interesting. Still trying to work it all out.

I must catch a Navra seminar soon I supose.

Cheers
MJK
 
Warning Philosophical post (sorry)

Duncan,
Regardless of who offered me a job I wouldn't take it unless I have absolute control of what i did when I did it. Neither would I buy or build a business that required me to work extensively in it.

My whole goal with investing has never been material possesions as such, but time and choice. Yes I'd love a waterfornt house and am planning on living in one by the time my son starts school.

Primarily time. You only live once and spending such a significant amount at work, regardless of how much you like your job it is just not for me.

The time to see my son and future children grow up rather than get a run down from wife about what things he did during the day when I get home from work.

The choice to spend the day with my wife and son, to help out at his school, coach his footy team etc. Or to choose, to do something that is going to make some money.

Don't get me wrong, I'm not adverse to hard work and have slogged my guts out for the last 6 years to get were I am now. I've renovated houses after work at night, on weekends and holidays often going for 3 months without a day off.

So although I respect what Warren Buffett and Frank Lowry have done for me I wouldn't work for them or anyone else. I plan to spend as much time as possible with my family and choose what I'm doing, where I have to be and when I have to be there.

Darryl
 
Darryl,

Congratulations!

I don't know you but I am smiling ear to ear for you!

Hope your nett worth grows even faster with less effort.

wombat
 
RPI, congratulations on taking the chance to live the life you want to live.

Just getting my head around the cashbond process ( I am in Tokyo so attending a Navra course is a little difficult).

Your $62.5/k year annunity, this is approximately equal to having a $100K/year "job" is that how you see it?

To make cashbonds work for the long term, how do you caculate the total assets you require and the equity you require? My concerns are, net assets, net equity and inflationary effects erroding my income.

For example, lets say I wanted to live on AUD$75K/year after tax . So to buy a cashbond paying AUD$75K/year, I need to generate at least $75K of equity growth on average every year. Taking a lower than historical average of 5% growth sans inflation, then to generate $75K of growth I would need at least $1.5M in assets is that correct, if I wanted to earn $150K/year then I would need $3M in assets. What effect does it make if I have $1.5M in assets and $1.4M of debt vs. having $1.5M of assets owned outright?

Are you worried that in the future banks may change the "rules" and dissallow annunities of this nature as incomes sources for servicablity? To make it work in the long term do you need to expect that rent increases will match the increases in debt levels due to buying more annunities/cashbonds?

My worries are:
  • I think my wife couldnt possibly get her head around retiring on a never ending stream of slowing increasing debt even if it argumented by a higher level of increasing equity. Even worse would be her parents reaction to me quitting my "excellent job" and becoming an "unemployeed" debter.
  • What if they change the rules when I am 80, cannot get a job then, I would just have to sell up, pay huge amount of capital gains taxes and hope there is something left to live on.

In regard to the first...I think just dont tell them the details, just say "financially independant" and leave it at that.

I just love your approach, who wants to be anyones "piss-boy" however wonderfull impressive the title "Director of IT", "CIO" when in the end it means that you are not doing what you want to do. Waking up in the morning and doing what you want to do is true freedom. Freedom is to do what makes you happy, to set goals that you want to achieve (ie watching TV 24*7 to working in Cambodia).

A friend of mine just finished up his tokyo company, from it he has enough money to retire (42year/old), but he is getting bored, whenever feels the pangs of "work" he down he goes in the morning to the railway station in Tokyo, and watches all the people rushing to working looking tired, unhappy and knowing that they "must" go to work. He then goes home enjoys his day.
 
RPI,

Fantastic to hear you're now 'financially independent".

However............. I'm even more impressed with how you want to spend a lot of that time!

Well done. I think your kids are going to have very fond memories of the 'old man' in the future.




:)
 
Originally posted by always_learning
Just getting my head around the cashbond process ( I am in Tokyo so attending a Navra course is a little difficult).
Click to expand...

Always_Learning,

Steve has said he's happy to travel to run seminars if you can get enough people together....

How many Aussie ex-pats do you know?

Cheers,

Aceyducey :)
 
I think steve says 30 in a room, well I know about 3, 4 or even 5 who could be interested....as for the other 25...it could be getting difficult. Better I come to OZ.
 
Hi Daryl,

A very warm congratulations to you on your 'exit -stage left' of the PAYE playground. Hope you enjoy doing whatever it is that gives you and your familiy happiness.

A couple of questions tho, how old are you now, and at what age did u begin investing? A timeline would be great :p

Also, what proportion of that 62.5k is for holding your properties as compared to pure spending money? None? Quarter?

-Warm Regards

Dave
 
Last edited:
Hi Darryl,

congratulations.

well I'll ask what everyone wants to know and you can either answer it in detail or not ?

how did you do it and can you give us all you financial details on how it all works. I know this is personal and accept if you don't answer it in detail as I don't think I would if I was in your situation.

but it's everyone's dream and not many make it happen.

thanks Peter
 
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