So sad

[virgo]

1 mio not enough?

Hmmm..how interesting!

This couple told me their net yields is around 4%; so that equates 40K a year which they say is about right for their needs (mind you this is Sydney!)

Plus a fully paid off home. Plus don't forget they are not dipping into their capital just the dividends...1 million is still there, liquid and accessible!

You think this is not enough to retire? well, they have done that for the last 3 years and seem to be doing okay?

What is your retirement strategy then? at what age do your propose to be able to call it a day?

Hoping to hear from you and/or others whether they will do what the couple did ie walk away with a 1 million portfolio...

 

[AlmostBob]

$'s there, don't have to spend it on cappucino, ladylove will be upset if we dont buy at least 1 IP next CAsummer

$1million isnt enough?
just have to find what works for you, and do it, whatever that is
good luck to em, (virgos acquaintance I mean) $1million works for them, retirement is working for us too, was not going to wait to be a grey nomad, want to be a saltnpepper nomad.

 

[tess85]

Virgo, that was a great story and good advice to listen to the ones who are retired. My parents tell me I'm getting in over my head with the whole IP caper but do they have an IP? No....

$50 a week is plenty doable if you cook every meal at home, buy pasta, rice, meat and fruit and veg in bulk etc. I ate like this for a number of years (hello student days!) These days we occasionally splash out and get takeaway or buy lunch at work. My justification is that we choose things that we can't normally make or would be too hard to (eg. sushi, the odd KFC meal ).

 

[kathryn d]

Virgo, that was a great story and good advice to listen to the ones who are retired. My parents tell me I'm getting in over my head with the whole IP caper but do they have an IP? No....

$50 a week is plenty doable if you cook every meal at home, buy pasta, rice, meat and fruit and veg in bulk etc. I ate like this for a number of years (hello student days!) These days we occasionally splash out and get takeaway or buy lunch at work. My justification is that we choose things that we can't normally make or would be too hard to (eg. sushi, the odd KFC meal ).

Some things taste better than homemade..take away fish 'n chips..yumm

Many times it is not even buying fruit and veggies in bulk..it is buying them when they are loss leaders, or reduced.

 

[virgo]

Retire

Hi Tess

You like sushi? Easy!

For family of 5
1. 4 cups of sushi rice (get it from Asian supermarket); 800ml of water
2. Orange packet of sushi vinegar mix powder (get from Asian supermarket; everyone knows them)

3. 1 packet Seaweed wrap also from said supermarket
4. Tuna/egg/avocado/salmon and mayonnaise


1) Microwave 20 minutes the rice and water
2) Mix in orange packet
3) Put a dollop of rice and spread it lengthwise onto seaweed.
4) Pile tuna or whatever on top. Cut into 2 long pieces

Voila! I spend less than 10 dollars for about 20 long pieces.(worth $50 now that we are all scrounging on this post)
Time taken : 20 min to microwave; 10 min to roll!

How's that??

 

[Aaron_C]

In my opinion (and that is it), $1m is not enough to retire because $40,000 in earnings per year is pittance. You might as well go back to work...

A normal couple's living expenses are prob ~12,000 after tax, plus pay for your daughter's private school fees also after tax of ~20k? That leaves you with nothing.

It's great and all to have psychologically $1m in assets, but these days it doesnt cut the mustard. I would personally never 'retire' but if I was going to I would need $5m net assets or more.

 

[kathryn d]

Since we are sharing recipes

Pancakes (for 2 people)
1 egg (if you double this recipe, you can still use 1 egg)
1 tablespoon sugar
2 tablespoons cooking oil
1/4 teaspoon salt
1/2 self rising flour
1/2 milk (or 1/4 water, 1/4 milk)

Mix together and makes about 8 -4" pancakes

I love it with sliced strawberries, butter, and golden syrup on top

 

[weg]

Each to their own, and definately not judging what others do here, but I don't quite get what is so great about retirement if you're going to live like someone on a pension or on the dole does .

virgo, I thought you were going to say this persons husband was made redundant .

I'm big on value for money, but I couldn't imagine getting around buying single items on special - I'd much rather work longer at a job (fortunately my job is MUCH more enjoyable than time spent in a shopping mall) and at retirement not worry about where every cent is going. I defeats the purpose of what we're investing for - doesn't it?

 

[Aaron_C]

Each to their own, and definately not judging what others do here, but I don't quite get what is so great about retirement if you're going to live like someone on a pension or on the dole does .

virgo, I thought you were going to say this persons husband was made redundant .

I'm big on value for money, but I couldn't imagine getting around buying single items on special - I'd much rather work longer at a job (fortunately my job is MUCH more enjoyable than time spent in a shopping mall) and at retirement not worry about where every cent is going. I defeats the purpose of what we're investing for - doesn't it?

I agree whole-heartedly with this. No point retiring to go straight to penny-pinching. My idea of 'retirement' is to go on holidays when I please, buy what I please, and not even think twice about how much it costs me. But each to their own.

 

[kathryn d]

Each to their own, and definately not judging what others do here, but I don't quite get what is so great about retirement if you're going to live like someone on a pension or on the dole does .

virgo, I thought you were going to say this persons husband was made redundant .

I'm big on value for money, but I couldn't imagine getting around buying single items on special - I'd much rather work longer at a job (fortunately my job is MUCH more enjoyable than time spent in a shopping mall) and at retirement not worry about where every cent is going. I defeats the purpose of what we're investing for - doesn't it?

IMO..no.
It is unrealistic for most people to think they will be able to purchase everything they want, without consideration of price.

I guess it is trade off of time. I would spend more time doing what I want, than working for some factory.

The saying : take care of the pennies, and the dollars will take care of themselves....is so true.

Like you say, to each their own.

 

[virgo]

Retire?

We are Strange people, isn't it?

i compare this penny-pinching couple with my brother who is a stockbroker in Singapore...actually both he and my sister in law are stockbrokers...they can easily retire years ago (and he has just hit 40).

His worth is definitely in the few millions mark...

Is he happy? Is he stressed? You bet he is; he has ballooned to 120 kg....he flys down to Oz to de-stress...

THen i have this vision of this couple walking hand in hand happily into the sunset....with their "paltry" 1 million! sigh! such is life!

 

[weg]

A person that is a penny pincher is not guaranteed financial success at all imo.

My SIL 'was' one and my brother not. It actually cause him a bit of grief early in the marriage.

Brother and SIL now have financial freedom, but it's NOT from her penny pinching ways, it's from my brothers entrepreneurial ways - love my SIL btw, couldn't ask for better .

I'm not saying you don't need to properly manage your money, but you don't NEED to penny pinch.

 

[sash]

Virgo,

Wow!!

A 120kg....he is not going to be around to enjoy his cash!

Life is for enjoying.....penny pinching....takes away from this...

I am not saying splurging all the time....but surely who would not enjoy pampering themselves every now and then??

We are Strange people, isn't it?

i compare this penny-pinching couple with my brother who is a stockbroker in Singapore...actually both he and my sister in law are stockbrokers...they can easily retire years ago (and he has just hit 40).

His worth is definitely in the few millions mark...

Is he happy? Is he stressed? You bet he is; he has ballooned to 120 kg....he flys down to Oz to de-stress...

THen i have this vision of this couple walking hand in hand happily into the sunset....with their "paltry" 1 million! sigh! such is life!

 

[virgo]

Pennies and all

Funny isn't it? Point is he DOES not penny pinch; no, not at all...and neither does my sister in law...in fact in all these years, i have not seen her cook a meal at all, yeh not a single meal!! i swear, you could do your full make up using her spanking gleaming kitchen reflection..ha ha!

PLus, they have a live in maid...

These guys eat out almost every other day; and that accounts for his ballooning weight....and we are not talking your ordinary Italian restaurant here...we are talking high class Chinese seafood restaurant with all its rarities....

Penny pinching : no....Happy and satisfied: no

 

[wobbycarly]

$1m for a couple at ~50 years old isn't enough for 'retirement' imo. All the earnings from a portfolio that size get eaten up in living expenses.

I don't disagree so don't take this the wrong way, however, that second sentence could be rewritten as:
"'The earnings from a portfolio of that size covers all the living expenses."

For some people, that's probably enough. It's a matter of perspective.

But I'm a bit like you and will be aiming higher.

 

[kathryn d]

We may be penny pinchers and that is fine with us.

We have a budget we try to stay within. The rest of the rent money is used to pay down debt, and/or purchase another property.

My father retired at 55. He also died at 73. We all thought he was a bit crazy retiring so young. Looking back, I'm really glad he did. He enjoyed spending time doing the things he loved.

Most people don't know how much time they have.


Most people I know, do not have the option to retire, unless their spouse keeps working.

 

[Dan_p]

The faster you become a tight wad, miser, frugal, thrifty person, the easier it becomes.
Mindset is the biggest. I was born this way, so it comes really easy and loads of fun and I married one too...and have produced 4 offspring with these qualities.

Bought 2 new shirts today. $1 +$1.30
Look brand new. They were on the discount rack in the OP shops..wasn't gonna pay $3-4 each !

Is it possible to invest and enjoys life's luxuries such as good food and travel. I thought that was the point of investing and making money.

 

[kathryn d]

Is it possible to invest and enjoys life's luxuries such as good food and travel. I thought that was the point of investing and making money.

Well, we do travel 8 months of the year now.Since Sept 2010 we have been:
First it was a month in Woodend,Vict
a week in Gin Gin, Qld
2 weeks in Beenleigh, Qld
5 months in Jerrabomberra,NSW
month in Kilcoy,Qld
week Goldbum,NSW
2 weeks Bredbo,NSW
month Longford,Vic
in a couple of days we head to Tennant Creek for 6 months

I think that is enough travelling
How much should we do?

We have great food. You can sick of restaurant food pretty quick.

We do this with all free accommodation,utilities,and a vehicle provided. A couple of months ago we bought our own van, for extra freedom.
Then back to Canada for 4 months ..just in time for summer.

Since I wasn't born in Australia, this is all new for me...an adventure.

 

[Oscar]

Let that become your driver at the day job for now.

Work hard (in a clever way) at your day job.
Become good at it.
The better you are at, the more people are willing to pay you.
The more they pay you the more you can invest.

The Y-man

stop making sense Y-man

 

[Jamie M]

Jamie, that will give me extra money for the cocktails at the next Canberra/Queanbeyan meet up. I love Cosmos and they're usually b/w $14 - $18 each depending on where you go.

Yeah that ain't cheap - although, I'm off to Oktoberfest in Canberra today and I know that I'll probably be spending a weekly food budget on each stein of beer I buy

Cheers

Jamie