Share your investing goal

While it's good to get out there and start investing, I think it's important to have some sort of end game in mind. This thread is to elaborate on that goal, how you're going to achieve it and how you're tracking. This forum seems to be full of success stories of people that have made it. And while my kudos goes out to all that are in this position, I would also be interested in hearing about the journey of people that have not reached their goals yet. So please contribute.
Below is mine.

Goal: To have a net passive income of $100k per year in 2010 terms by the time I turn 40 (just under 9 years away). This will in theory allow me to stop work if I chose to, but I doubt I really would. It's all about the peace of mind for me.

Method: My strategy is to buy houses on reasonably sized blocks of land in regional areas with population growth and yields over 7%. Once the value rises, I can refinance and buy more of the same.
I bought my two Central Coast properties with future developments in mind and plan on putting a total of 7 townhouses up in five years or so.
I have calculated that I need between 12 and 20 investment properties to achieve this, depending on how optimistic I'm being with my forecasts.

Status: I started investing just under three years ago and am just about to settle on IP number 5. My total portfolio is geared at nearly 90% LVR, so I don't have much value in it yet, but hopefully that will come in time. I'm looking at buying IP #6 before the end of this year as well.
My positive cash flow is just under $10k per year, which is invested back into property.
Everything seems to be on track, but I also have to factor in that I'll probably buy a PPOR and start a family in the next few years as well. This will slow my progress somewhat, but even if it's a bad investing decision, for me it's a good life decision.

Please feel free to critique my plan!
 
this sounds very similar to what i want to acheive :) im 25 atm and am currently building a house which my wife and myself will live in for a year before turning it into an ip im also looking to buy high yeild properties atm with some good cg's...

my next 2 purchases will be interstate which is scary but exciting all at the same time :cool: my question is how have you found purchasing interstate ?

my goal is to have 70+ k cf in ten years so my wife never has to work again and we dont hit any servicability walls with the banks then id like to be fully retired by the time im 45 with a commercial/ development potential portfolio :D so i can spend more time with my baby boy who wont be so much of a baby by that time :/
 
For me an early retirement is not a priority, I'm 31 and happy to work till 60-65.

I don't really spend a lot of money, don't care for flashy cars, houses, boats or holidays.

But I do love investing and watching it all add up (favourite hobby as a kid was counting all the coins in my money box).

Goal


Investing a bucket load of money over a very long period of time so that when I do retire I'll be able sit upon a huge pile of cash. Not sure what I'll do with a huge pile of cash but I'm sure my wife will have an idea

Method

1) Max Contributions to superannuation of $25,000 pa (inc employer contributions) Some people hate super, personally I love it, even with 30 years before I can touch it
2) $12,000 pa (indexed) to my existing share portfolio using instalment gearing (so $6,000 of my own funds LVR 50%)
3) $2,000 pa (indexed) in Gold Bullion
4) Surplus income + Dividends into non deductible debt first, then into investment debt
5) future increases in Income goes to share portfolio or super if they increase the caps

Result

As I've given myself 30-35 years I have plenty of time up my sleave and don't really need to gear aggressively or take huge risks.

if you compound a regular investment of $39,000+ pa (indexed) over 30/35 years it adds up to a nice sum.
 
Current situation
Age - 27,
Employment - self employed since age 24, no intention of ever having a real job again.
properties -
PPOR - value 550k, debt 280k, also getting $1100/week income as I share with mates and its a dual occ.
IP1 - value 100k, debt 70k, rents for $150/wk
IP2 - value 170k, debt 110k, rent $240/wk.

Goal - 5k net passive income/wk with minimal/no debt.

Strat from here - reduce debt on all current properties, purchase 4 more properties with dual occ/granny flat potential to achieve 10%+ yield on each of them. Looking at properties for roughly 500k including all development costs and will be looking at achieving $1000+ rent/wk by renting by the room.

Have plans to buy the 4 more properties required within the next 5 yrs (by the time I'm 32), from then on it will just be a matter of reducing debt, and maintaining/improving the properties which I will dedicate myself to full time. After debt is reduced after a few years, I should be achieving $3500-$4000/wk completely passively after all expenses.

From then, not sure what the goal is. Zero interest in marriage or anything like that. I'll definitely be travelling the world and working on my goal of visiting every country. In financial terms, I'll probably look at moving into commercial investments or bigger residential developments, but I've got a while to think about that yet :)
 
Going 25 soon here and want to stop working for someone else as early as possible, like in 7-10 years

I like finance and planning it out (I'm choosing the wrong career it seems...:rolleyes:) :rolleyes:

Goals
Replace at least one person income so we can work part time --> $80K-$100K per year.

Method/ Strategy
Currently nothing specific:
- First portfolio - buy lower price range house, likely in stable regional areas (no mining only area)
- All properties need to be at least neutral cash flow after all costs
- Second portfolio - similar, neutral cash flow, do small cosmetic reno when possible to increase property value faster, sell on the right time to pay down debt

Current Status
Feels like it's still a long long way
- Bought one IP in Rutherford at 97% LVR - area is currently slowing down, so might take 1-2 years to at least get some deposit back for 2nd IP unless I do some reno.
- Waiting for OTP PPOR - once settled, I will save more money for next IP
 
Goals

1. To have 100k-150k passive income per year, indexed to inflation as soon as possible.

2. to be in the top one percent of net worth


Method/ Strategy


-1. buy shares with cash -direct share purchases
-2. buy - indexed funds AFI, VAS with cash
-3. work hard, save hard
-4. buy IPs, likely to be comm IP, cash to be placed in offset, LOC against PPOR equity for use as deposit

Current Status

Feels like it's still a long long way
-
Have obtained LOC. Regularly review realcommercial.com.au/ realestate.com.au

Monitor shares charts daily / comsec info sections.
 
Goals:
Stage 1 - 365k passive income per annum.
Stage 2 - 1 mil passive income per annum.

Method/Strategy:
Complete accumulation phase in 2 months time, which will give us a total of 13 brand new IP's and a PPOR.
2 IP were built 2 years ago, 5 others 12 months ago and 6 more to be complete in 6 weeks.
All were develop to hold cases.
We started a business 7 years ago to provide cash flow to enable us to invest more aggressively in property.
Aim to pay down as much debt as possible in the next 12 months and pending sale of current business will hopefully clear remainder of all IP debt.

Current Status:
Almost 38 years old now and expect to reach the 1st financial goal by 40.
This will allow us to semi-retire and then freestyle from there.
Don't yet know how we will reach the 2nd financial goal.
Will probably look at more creative methods and diversify a lot more, never allowing our capital to be lazy.
At a guess, it may take another 5 years to get to that level, just got to keep the momentum going.
Then again, if it seems like too much work and unnecessary stress, I'll just back right off and enjoy being content with what we have, but I can't imagine that happening.
 
Investing a bucket load of money over a very long period of time so that when I do retire I'll be able sit upon a huge pile of cash. Not sure what I'll do with a huge pile of cash but I'm sure my wife will have an idea
.

Scrooge mcduck comes to mind :D
 

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For me an early retirement is not a priority, I'm 31 and happy to work till 60-65.

I don't really spend a lot of money, don't care for flashy cars, houses, boats or holidays.

But I do love investing and watching it all add up (favourite hobby as a kid was counting all the coins in my money box).

Goal


Investing a bucket load of money over a very long period of time so that when I do retire I'll be able sit upon a huge pile of cash. Not sure what I'll do with a huge pile of cash but I'm sure my wife will have an idea

Method

1) Max Contributions to superannuation of $25,000 pa (inc employer contributions) Some people hate super, personally I love it, even with 30 years before I can touch it
2) $12,000 pa (indexed) to my existing share portfolio using instalment gearing (so $6,000 of my own funds LVR 50%)
3) $2,000 pa (indexed) in Gold Bullion
4) Surplus income + Dividends into non deductible debt first, then into investment debt
5) future increases in Income goes to share portfolio or super if they increase the caps

Result

As I've given myself 30-35 years I have plenty of time up my sleave and don't really need to gear aggressively or take huge risks.

if you compound a regular investment of $39,000+ pa (indexed) over 30/35 years it adds up to a nice sum.

Kudos mate - long term, sensible plan and happy to work long term. Don't get that mind set too often on here. You will go a long long way.
 
Age: 40(in a couple of weeks anyway)
Started investing: Mid last year.

Goal: To replace our income, downsize our life, retire to the country, build our own home, relax, fish, shoot clays, drink fine wine and even finer whiskey and do a little travel, all by the time I'm 50.

Requirement for goal to be achieved: Debt free PPoR and annual income post tax of $50-100K depending mostly on how much travel we would like to do.

Strategy: Invest in areas my research leads me to believe are ready for capital growth. Generally speaking large regional cities with diversified industry.

Properties selected will be NRAS properties for the added cash flow. Primarily these properties will be dual occupancy for double the NRAS incentive.

Plan to purchase 8-10 properties with the view of likely selling a few at the end to help pay down debt.

Set up SMSF and invest in low cost Australian and International stock index funds. If allowed to borrow for that purpose, I will gear to 50% until closer to 50 years old and then sell down to pay out debt and let it sit there until retirement age as an extra bonus.

Where I'm at now: Have settled on and tenanted 2 NRAS properties, 1 of which is dual occupancy. Currently building a H+L expected to be complete Mid November as our 3rd property.

Also in the process of purchasing our 4th property which is a NRAS property which will be dual occupancy as well.

Current CF from properties post tax expected to be approx $20K pa

CF if purchase of 3rd NRAS successful expected to be $35-40k pa

Where to from here: Use positive +CF and excess job income to pay down current non-deductible debt and create equity for further purchases. With +CF and excess income we should be able to purchase 1 property every 8-12 months.

Also re-evaluate portfolio regularly and access any equity for further purchases to speed the process up. Though this is not really necessary for the ultimate success of our plan so we will decide at the time if we want or need to do it.

Should have our 8-10 properties within 5 years assuming no major hiccups. Then let another 5 years pass for some growth and then determine if there is enough growth to warrant selling some and if so which properties to sell. If not, we wait longer and continue working in jobs we luckily both enjoy.
 
Age: 40(in a couple of weeks anyway)
Started investing: Mid last year.

Goal: To replace our income, downsize our life, retire to the country, build our own home, relax, fish, shoot clays, drink fine wine and even finer whiskey and do a little travel, all by the time I'm 50.

Requirement for goal to be achieved: Debt free PPoR and annual income post tax of $50-100K depending mostly on how much travel we would like to do.

Strategy: Invest in areas my research leads me to believe are ready for capital growth. Generally speaking large regional cities with diversified industry.

Properties selected will be NRAS properties for the added cash flow. Primarily these properties will be dual occupancy for double the NRAS incentive.

Plan to purchase 8-10 properties with the view of likely selling a few at the end to help pay down debt.

Set up SMSF and invest in low cost Australian and International stock index funds. If allowed to borrow for that purpose, I will gear to 50% until closer to 50 years old and then sell down to pay out debt and let it sit there until retirement age as an extra bonus.

Where I'm at now: Have settled on and tenanted 2 NRAS properties, 1 of which is dual occupancy. Currently building a H+L expected to be complete Mid November as our 3rd property.

Also in the process of purchasing our 4th property which is a NRAS property which will be dual occupancy as well.

Current CF from properties post tax expected to be approx $20K pa

CF if purchase of 3rd NRAS successful expected to be $35-40k pa

Where to from here: Use positive +CF and excess job income to pay down current non-deductible debt and create equity for further purchases. With +CF and excess income we should be able to purchase 1 property every 8-12 months.

Also re-evaluate portfolio regularly and access any equity for further purchases to speed the process up. Though this is not really necessary for the ultimate success of our plan so we will decide at the time if we want or need to do it.

Should have our 8-10 properties within 5 years assuming no major hiccups. Then let another 5 years pass for some growth and then determine if there is enough growth to warrant selling some and if so which properties to sell. If not, we wait longer and continue working in jobs we luckily both enjoy.
Hi,
Could you please let me know what company you use for your NRAS properties as there are a lot of rip offs out there if you do not want to disclose openly can you PM me thanks.
Macca446
 
Hi,
Could you please let me know what company you use for your NRAS properties as there are a lot of rip offs out there if you do not want to disclose openly can you PM me thanks.
Macca446
Euro73 from this site is the man to go to. Knows his stuff, has a variety of different stock and does as much as possible to ensure valuations and such stack up before presenting that stock to clients. Great guy.
 
Goal:
Net passive income of $100k /year in todays money by 40;
Successful small business owner (plural);
Community role model;
Aim to free up time, have the resources and the network to assist in community start-ups.

Method: Without getting into the real specifics...

Current- Buy-reno-hold. Building granny flats and starting up a maintenance and renovation business in the next few weeks in Western Sydney. Looking for a 35hr/week job to refinance and expand current portfolio by 2 sites by end of this FY.

Next 3 years- Purchase more properties with land content for development, build up business to start developing, expand business to include mortgage brokering, small developments, strata management. Work on JV and other partnerships.

3-10 years- Develop/own commercial real estate, expand businesses to include larger developments and apartments, move on to other areas in partnerships with like-minded individuals.

Status:
27 years old, started investing 2 years ago, have 3 ip's, 2 with granny flats, building another one now and learning a lot from the experiences.
Starting up a maintenance and renovation company in the next few weeks, and using current networks to have all the right people on board.
Working towards obtaining my builders licence in the next 12months.

Positively geared by about $10-15k/ year. Family is starting to appear on the cards, never thought about it before, so still haven't quite got that one figured out :p

My motivation is pushing my boundaries and the character building that mindset provides. The money, rush, and satisfaction of creating successful businesses and win-win situations that comes with the territory is simply a part of the process.
 
Seems like most people want about 100k passive income per year - must be the magic number for retirement.

Probably because it's such a round number, comparible to a decent level of earned salary.
But to really retire and fulfill your life, I believe you could easily go through much more disposable income.
When you are not working, there will be so much time to do other activities, and these could very quickly amount to quite a bit of money, depending on activity.

For a single person 100k may be plenty, for a family, probably not.
We are planning for 100k per person as a family of 3, or $1,000/day to be more specific.
 
Probably because it's such a round number, comparible to a decent level of earned salary.
But to really retire and fulfill your life, I believe you could easily go through much more disposable income.
When you are not working, there will be so much time to do other activities, and these could very quickly amount to quite a bit of money, depending on activity.

For a single person 100k may be plenty, for a family, probably not.
We are planning for 100k per person as a family of 3, or $1,000/day to be more specific.

The thing that makes travelling abroad expensive is the initial flight and staying in hotels at $150+/night. Ever read the 4-hour work week? If you live abroad for 6 months at a time and rent a place, suddenly travelling is quite cheap.

With a paid off PPOR, or simply not owning one, $100k net is a huge sum of disposable income. Especially when you're not setting aside a large chunk of it to 'invest' for your retirement :p

I've met a few very VERY comfortable retirees, and $5M net invested seems to be the magic number to take time off as you wish, fly first class, and lavish your family with all the attention they desire. I always thought it was more like $20M till I sat down and actually did the sums.
 
The thing that makes travelling abroad expensive is the initial flight and staying in hotels at $150+/night. Ever read the 4-hour work week? If you live abroad for 6 months at a time and rent a place, suddenly travelling is quite cheap.

With a paid off PPOR, or simply not owning one, $100k net is a huge sum of disposable income. Especially when you're not setting aside a large chunk of it to 'invest' for your retirement :p

I've met a few very VERY comfortable retirees, and $5M net invested seems to be the magic number to take time off as you wish, fly first class, and lavish your family with all the attention they desire. I always thought it was more like $20M till I sat down and actually did the sums.

Care to share some of those sums?
 
Probably because it's such a round number, comparible to a decent level of earned salary.
But to really retire and fulfill your life, I believe you could easily go through much more disposable income.
When you are not working, there will be so much time to do other activities, and these could very quickly amount to quite a bit of money, depending on activity.

For a single person 100k may be plenty, for a family, probably not.
We are planning for 100k per person as a family of 3, or $1,000/day to be more specific.

At a conservative 5% yield, income of 365k per annum would mean about 7.3 mil of unencumbered invested assets or equivalent. Combined with a PPOR, you would be in the top 0.1% of net worth in this country.
 
I've met a few very VERY comfortable retirees, and $5M net invested seems to be the magic number to take time off as you wish, fly first class, and lavish your family with all the attention they desire. I always thought it was more like $20M till I sat down and actually did the sums.

At a conservative 5% yield $5m gives about 250k a year - not really a sum that is designed for large families to fly first class every year. Probably business class once a year for the family.
 
At a conservative 5% yield

I don't think 5% yield is conservative. After tax and outgoings you need 7 to 10 % yield gross to achieve 5% net. (very rough numbers). I have 750K in a "high interest" online account earning 1.75%. I have truck load in a managed fund earning 5 to 6% yield net, but my very blue chip Sydney IP's are 3% net yield. My US properties would net around 10% but they are higher risk investments and not a large portion of my portfolio.

I would love to net 5% across my entire portfolio. I need to think this through.
 
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