Retiring Young

[Mr. Fabulous]

for me, I would be satisfied with $50K passive net income per year, that's all. I could live happily with that!

I'm in a similar boat there. But for me, 50K is just starting money. It'd be enough for me to leave work (if I wanted to) but also live a lifestyle I wanted (albeit basic) and still invest. I certainly don't intend to stop investing and growing my passive income after becoming financially independent!

Mark

 

[alexlee]

Everyone has to make up their own mind about how much they would be happy with. Personally, I want a LOT. My personal experience is that if you aim high, you may not reach it, but you'll end up achieving more than you would have if you'd aimed lower.

So for me, I'm aiming really high. If I don't make it, I'll still end up doing better than if I'd aimed low.
Alex

 

[geoffw]

Everyone has to make up their own mind about how much they would be happy with. Personally, I want a LOT. My personal experience is that if you aim high, you may not reach it, but you'll end up achieving more than you would have if you'd aimed lower.

So for me, I'm aiming really high. If I don't make it, I'll still end up doing better than if I'd aimed low.
Alex

What's the primary focus?

If you aim for lots of money, you'll get it. Probably.

But maybe you'll miss out on a lot of other things in life.

I've got lots of arrows aimed everywhere. To do with kids, family, business, and money.

I'd be happy just for a few of those arrows to hit close to their mrk.

 

[lowb]

actually i have a couple of dreams,

one dream is related to property.. it involves making the 'world' more beautiful: making properties functional, nice to live in; a nice living environment gives positive vibes to the people who live in it.

so basically, its gentrification- imagine sort of doing that on a large scale. maybe overseas! if you went to a poor country, you could buy large chunks of a suburb, make it beautiful (maybe keep the rent low for a few years so people could afford to live in it), then as well as serving communities, also profit from it.

a bad thing that could happen is crime, violence, wars in tha country. and also, the people who live there might not like it if a foreigner (australian) were to buy so much land in their country.

hmmm, its quite unrealsitic for me (1IP)

 

[alexlee]

If it's one thing I've learned through investing, it's that ANYTHING IS POSSIBLE. If you have a strong goal, hold onto it. That is what will keep you going with investing when things seem a bit dark.

As your resources grow, you'll find that a lot more things are possible. Keep an eye on the here and now but don't forget to look at the furthest goal too.

I want a waterfront mansion, luxury cars and so on. You wouldn't believe how many people just laugh at me when I reveal even a small part of my goals. The key difference between the investor and the 'wannas' is that the investor can see the long term, while the battler just sees the day to day problems and forgets the future.

6 years ago when I started, if you'd told me I would have the assets (and debt) that I have now, I would have laughed at you. And I've only just started. We all start with 1 IP. Even Frank Lowy started with a butchers shop in Blacktown (and that was 40 years ago: imagine what Blacktown must have been like then!)

Visualise your goal, lowb. Feel it. Taste it. When something bad happens, think about how important the goal is to you and you'll be able to keep going.

I'm sure Bill Gates and Warren Buffett didn't start off their careers thinking they would be philanphropists.
Alex

 

[kissfan]

Well said Alexlee

 

[DavidMc]

Fantastic thread. Very relevant to my current situation.

Like you alexlee, I’m 28 and started at around the age of 22. I’ve previously lived and worked all around the world (US, Japan, UK, HK) and am currently doing well contracting in my home town of Melbourne (financially anyway – the work environment itself is a tad dry). Whilst I’m not there yet, I’m happy with the way things are going and I should have this ‘problem’ a bit earlier than the average person does.

Once I discovered this issue, it made me examine the rate at which I’m climbing this mountain. I mean, sure, I could go flat out, be financially free at an early age, but then what?

After I finished University I ‘sold my soul to the corporation’ for 4 years. I left that job and was paid out most of my leave. I think I may have taken one or two weeks per year off? Like some others here I too was at the stage where if I had a months leave I wouldn’t know what to do with it. There was a lot of truth in aussierogues post for me, I was (and still probably are) too concerned about what the future holds.

I have a much healthier balance now although I’m still making adjustments to it. My move from permanent employment to contract based was suppose to give me a few months off each year however they just keep getting extended! As young gun mentioned, some of these things I want to do in my life just won’t be the same when I’ll be in my late thirties or forties. Travelling is probably the prime example as others have mentioned.

The quote ‘life is a journey, not a destination’ comes to mind. Right now I’m trying to focus more on the journey.

To answer the threads original question, the things I’d like to do are somewhat similar to others. They include:

• Find my soulmate
• Create and spend time with family
• Travel more
• Invest in my relationships (friends, extended family)
• Improve myself (eat better, read more, learn more)
• Study – lol at ‘interesting stuff’. I’d love to explore some form of visual art (maybe photography) and psychology. Maybe even a career change to teaching? My sister is a primary school teacher and she loves it. I work with a bunch of dorks in IT.
• Become connected with my community more (i.e. something like being involved running an electronic music night or get back in DJing, coach kids basketball or even get back into playing some basketball or ultimate Frisbee).
• And maybe something stupid like working for a month in a bar in a small town in Finland, just for the experience.
• Enjoy more ‘simple pleasures’ (eat lazy weekend breakfasts in nice little café, go to more cultural events)

It’s the first time I’ve written such a list. As I read over it, I’m thinking ‘why can’t I do those things now?!’ as most of these things don’t really require a pile of money.

How to enjot retirement?????????? The answer is the same as how to enjoy your current situation!!! And that is to enjoy the now. Get the past and the future into perspective....be fully engrossed in what you are doing whther thats raising your kids, ejoying your grand kids, being involved in your community, anything really.............its a state of mind.

Some wise words...


David.

P.S. If you like Alex, I can be one of your friends! I’ll send you an email in 7 years once I turn 35 and am retired.

 

[lowb]

alex, thank you for the encouragement

i just read david's post.
i think that life is a journey, as the destination is basically the same for everyone (enough said)

so life is about experience.
work is a great way to get that experience, although alot of work is boring. but if i were to experience overseas life (e.g. travel), id like to work in that country. you'd get a richer experience of everyda local life than just walking around

 

[alexlee]

so life is about experience.
work is a great way to get that experience, although alot of work is boring. but if i were to experience overseas life (e.g. travel), id like to work in that country. you'd get a richer experience of everyda local life than just walking around

Exactly. Let's be honest, I don't enjoy my job (how passionate can you get about spreadsheets and writing reports that no-one reads?)

What I've done is work overseas, so that even though my job itself is pretty boring, I'm having fun by living in another country.

It's a matter of balance. Spend all your money on experience while young, and you'll never be financially independent. Concentrate too much on the investing to the exclusion of everything else and you risk being a rich guy and not know how to enjoy it.

I think the best way is to save when you're younger, but also try to experience life (by living overseas, for example). As you get older, your investments should start taking on a life of their own, and you don't have to save as much. My current circumstances mean I don't save nearly as much as I used to, but I have a few IPs (from saving money when I was younger) so I can grow my portfolio purely from refinancing. I can't see how my savings would increase from now on (pretty soon any savings will go into the PPOR, once I get it) but I'll still be able to buy more IPs at the same time.

I'm also developing (or have developed) a good set of hobbies, so I should be well placed for early retirement.

The whole point is that financial independence is something you have to work on. Most people don't even realise THAT. What even fewer people realise is that a fulfilling life AFTER you become financially independent is something you have to work even harder on.
Alex

 

[alexlee]

Like David, once I started thinking about what I plan to do ?€˜if money was no object?€™ I realised that there are a lot of things I could do now. I?€™d always thought I would just delay stuff I wanted to do until I ?€˜make it?€™. I?€™ve had a slight change of plans and now expect to go from full time work / some investing to part time work / more investing to no work / full time investing, and then cut down the hours on investing. Financial independence is a process.

Also 'retirement' is just a term. It means different things for different people. After I don't have to work anymore I certainly don't plan to just sit in a lounge chair all day. I'll be studying, doing some deals and so on.
Alex

 

[pritch]

Hi, my first post on the forum after reading a lot over the past month.

I'm working in London also and have worked in the US in the past. Basically it's to allow us to invest and yet still travel and enjoy some of the other things we like to do. The plan is to achieve financial independence which to me is just about giving more options as to what I do with my time.

Using the high income now to grow our portfolio and to travel means that on return to Australia we can still travel but don't necessarily need to rely on work income so much and have the freedom to do waht we want.

It is hard to discuss this though, at work recently I told a much older colleague that I would be able to retire by 40 (30 now) and he just laughed at me. I got a bit annoyed and then told him I had several houses back in Australia and he was very suprised that I had planned this out. It's not hard to work out what you want, you do need to have a plan on how to get there.

Anyway I enjoy reading the posts as it allows me to keep in touch with Australia and shows that many others do think the same as me.

 

[Glebe]

No need to get annoyed Pritch, proving your ambitions to yourself is more important than proving it to a colleague.

 

[alexlee]

Yeah, don't worry about it, Pritch. Very few people will understand you. Even fewer will achieve what you will achieve. When people laugh at your dreams, just smile and think about the day when you tell them you're quitting your job for good to do whatever you want, and they're stuck with the mortgage.
Alex

 

[littlevixen]

The key difference between the investor and the 'wannas' is that the investor can see the long term, while the battler just sees the day to day problems and forgets the future.
...I'm sure Bill Gates and Warren Buffett didn't start off their careers thinking they would be philanphropists.
Alex

Strange that you mention the difference between investors and the battlers. A few weeks ago I was grocery shopping (as you do) when I noticed how some shoppers swooped for items advertised at 2cent discounts etc. It made me realise that when people haven't got much money, they focus more on saving money and spend a lot of time thinking about the day to day costs of living. Those who are wealthier are not concerned about minor discounts and specials, they would be more likely to be spending time thinking about investing and growing their wealth and that's how they always get so far ahead. So you summed up my thoughts so simply

The other issue...philanthropy...a touchy issue. Every so often I'm at war with myself regarding whether I should donate more to charity or use it to invest. I'm on a monthly donation program with WSPA and support other charities here and there, however, my 'little' brother advised me that if I use my funds for investing, it would provide me with a solid foundation to provide bigger donations in the future. So..what to do about competing goals?

 

[Chris.R_WA]

Good points

Hi guys,

There have been so many good points raised in this thread, its hard to keep track of them!
I find not telling people of my plans works better than ignoring the disbelieving comments that follow any "financial independance by 35" comments.

Some posters on this thread have very noble ambitions when the reach the "choice" point in their life. On my part, I would love to run a small gym from my future PPOR overlooking the Swan in Mosman Park. Plenty of family time, and also more motivation to stay healthy.

The plan is in motion, 13 years and counting...

Cheers, Chris

 

[The Y-man]

. Those who are wealthier are not concerned about minor discounts and specials, they would be more likely to be spending time thinking about investing and growing their wealth and that's how they always get so far ahead....

Ooops, I must be one of the battling poor still....

The other issue...philanthropy...a touchy issue. Every so often I'm at war with myself regarding whether I should donate more to charity or use it to invest. I'm on a monthly donation program with WSPA and support other charities here and there, however, my 'little' brother advised me that if I use my funds for investing, it would provide me with a solid foundation to provide bigger donations in the future. So..what to do about competing goals?

Set up your own philanthropic trust. That way, you get to control how the funds are used. One of the biggest problems with "generic" donations are that you don't get to control what proportion of your donation gets used for what.

Whatever you do, make sure that your primary aim is to ensure that you yourself do not need to be the recipients of any donations in the future to survive.

Cheers,

The Y-man

p.s. waiting for tinned tuna to go on special @ $3.00 again so I can stock up.....

 

[lowb]

i really like tuna too!

life is complicated; there are a lot of things worth doing. some things can only be done when you're relatively young though; but if the earlier you invest, the better it is

lots of people think only about how to save, but the people who invest also know how to save (because if you reduce costs you increase your profit)

also, when thinking about spending, i used to only think about the costs of spending but now i also think about the cost of not spending...

for example, spending money on health products is expensive but not spending on it is even more expensive.

also, we're earning money to achieve goals (e.g. self-fulfilment, family, recognition), but some goals dont need money (e.g. you cant buy a nobel prize, or can you?)

can't think of anything else!

that's why I like tuna

 

[luckstah]

Fantastic thread guys. Really motivating to see how other people are looking at problems I have thought about a lot.

 

[Pandabites]

I would also like to say what a great thread which certainly makes one think about all the different choices and options that life can present..

Like several others members, I've been living overseas in Scandinavia for the past 2 years, enjoying everything that a different country and culture has to offer, (including the travelling bit), while working part time, learning the language (am also about to start learning Spanish, being taught in Danish, which is going to be quite an experience), meeting new people etc etc...as well as continuing investing back in Australia.

I agree that balance and finding what works for you is probably one of the most important things in life, not worrying about what others think or that you should be 'working in a specific position, earning X amount of dollars' because you have such and such degree...finding what really motivates you and makes your soul sing is something many don't find until it is too late (if at all).....it took me a while to get over this mindset when I first moved overseas, coming from a well paid government position (which was really interesting, believe it or not) and then 'downgrading' to a combination of teaching English and working with kids in schools, while also studying to become a counsellor (and fitting in a bit of voluntary work at a local womens shelter)....

I guess my point is that I've since found out that I currently love what I do and will also continue with this even if I'm in a position to 'retire young', as it is so stimulating and satisfying....

 

[Les]

G'day littlevixen,

The other issue...philanthropy...a touchy issue. Every so often I'm at war with myself regarding whether I should donate more to charity or use it to invest. . . . . . . . So..what to do about competing goals?

Check out Jan's "Story by story" number 82 - about the couple helping their church. It may help to put things in perspective.

Jan finishes the story by saying "Selling up everything and donating all to the church does not provide a long-term solution to the world's welfare problems".

Y-man mentioned similar thoughts too.

Regards,