What Assets & Income do you need to Retire?

[sash]

I have been planning for the future and have decided I would like the the following to retire in style in the next 10 years:

1. Assets - $10 million

2. Income - $150k pa (in todays dollars)

3. Debt Level - $3 million

Where am I at.....I reckon I am about 25-35% of the way there. I will need to ramp to me the above goals to get to my target in 10 years.

Would love to hear how others are their plans and how they are going....

 

[The Y-man]

Where am I at.....I reckon I am about 25-35% of the way there.

Hey very impressive! So you currently have a net worth of $2.1 million generating $45k pa (I assume the return is lower because you have some of the capital tied up in "growth assets").

Cheers,

The Y-man

 

[lizzie]

excluding ppor atm i want:

$4+mil in debt free assets producing $200,000/yr rental income before tax and expenses.

1/4 of the way there (excluding ppor) - should take another 4-5 years to get to sit and hold and appreciate for a few years period before clearing off the debt around 5 years later.

 

[ianvestor]

I don't think $1m pa in today's dollars is too much to aim for. I figure I need about $30m worth of property for this and I'm *some* of the way there

I'm not working full-time in a 'job' any more but I'm still working on my own to bring in the $$$ until things are more passive.

 

[BayView]

Depends on the lifestyle you want to live.

I don't have a figure - other than infinity, so I'm going for as much as I can generate, and as soon as possible.

We have altered our strategy to include businesses that provide a passive income after tax in the shorter term, as well as more property longer term. Three $1 mill+ turnover businesses (with appropriate nett profit) will do it. Already have one, so two to go.

The properties will just be the cream and ongoing wealth creation while the businesses provide the income and part of the funding for the property.

Lets face it; property is not going to give you a serious passive income to get you out of the rat-race in the short term, which is what my goal is.

A few bigger developments will probably get you there sooner, but you need to progress up to that level of playing field which takes time, experience and a wealth base.

 

[RumpledElf]

We could, in theory, survive quite nicely on the rent from our current IP (when it is finished) and the rent from a house on the other half of the block (if we build) and nothing else, but it would be really tight and its assuming everything and my PPoR is paid off. And that's barely half a million worth of assets there.

Really what we'd like to do is finish our Plan A, which should in theory make Lots Of Money and sloth around all day messing with that for the next 20 years instead (and then repeat with the next project), and invest the money from that into shares and property and cash and all that jazz.

We don't live on very much, so we currently have very low standards.

 

[quoll]

Our current aim is:

Too be able to generate $200k per year (todays $) while only working for 3-6months per year doing something fun, having the ability to walk away from the monster for extended periods of time without affecting it's ability to generate income. This will be continue year in year out for the rest of our lives.

Nuts and bolts of plan involves about 20 average houses, no business, some shares.

Cheers
Graeme

 

[quoll]

We don't live on very much, so we currently have very low standards.

When playing CASHFLOW it is way easier to win the game when you draw the JANITOR card.

If you keep your expectations under control and don't spend like a doctor you will be able to ditch the JOB earlier and slowly build on what you have.

That's the theory anyway.

Regards
Graeme

 

[Gee Cee]

Today I dropped the kids at school and travelled over the bridge to the beach 500 metres away. Read API for awhile and opened yesterdays mail. Went for a walk along the beach. Then talked to a few semi retired guys I knowe that hit the surf when it is good. Then checked out a property that is getting a new tenant tomorow. Did some seafood shopping , picked up the kids and went home to cook tea.

I cannot wait till I am really RICH.

Then I will . Drop kids at high school. Go over the bridge to the beach. Read the API and mail and whatever. Go for a walk. Do some shopping. Check with agents on property and go home to cook tea. (Lobster not just prawn & oysters)

Maybe arrange a few more investment sourcing holidays

Improve my english and grammar so I can get a job and a income

Gee Cee


Waiting / Waiting/ Waiting

 

[boomtown]

5 million in resi grossing 5 percent or 250k pa on an LVR of 50 percent.

Should be modestly CF+ at that point. Ill then switch to 6 months on 6 months off and gradually wind out of the job.


Hoping to get there by 2016. Ill be 43 yo.

 

[Francesco]

I have retired but the season of IR decreases will make over 90% of the IP portfolio CF+ giving me a nice problem of minimising tax again. All good, need to think more about donating to charity. Ah, Prov 11:25.

 

[BayView]

When playing CASHFLOW it is way easier to win the game when you draw the JANITOR card.

If you keep your expectations under control and don't spend like a doctor you will be able to ditch the JOB earlier and slowly build on what you have.

That's the theory anyway.

Regards
Graeme

Imagine how easy life would be if you earned like a doctor, lived like a janitor, and invested like we all try to do.

Talk about exiting the rat-race super fast.

 

[Nathan]

thats what i try to do Bayview..

 

[boomtown]

Imagine how easy life would be if you earned like a doctor, lived like a janitor, and invested like we all try to do.

Talk about exiting the rat-race super fast.

Working on it. About 70 - 80% of my income goes into savings and investments.

 

[Kristine..]

G'Day

My needs are simple

One house to live in, fully paid. This is most likely going to be HOTTA (House Of The Third Age) at Chelsea, eight doors back from the beach but could be anywhere

Four income producing properties, fully paid

One property generates the income to pay repairs, maintenance and outgoings and provision for vacancy on the five properties

The other three generate income for us to live independently.

In today's dollars, we would like to have $50,000 independent income per annum.

Doesn't sound like much, but I think this would enable us to live with dignity, have more than we need on a day to day basis and therefore enable us to drive safe motor vehicles, travel a bit, entertain a bit, and host the family and the eventual grandchildren for extended visits at HOTTA should they wish to do so.

Statistically, we can expect to live 30 years past official retirement age. Mike really enjoys his work and has no intention of retiring before 65, and maybe even later than that. I have no intention of retiring at all, I will be one of those crusty old brokers still writing loans when she is 90!

It is the ability to live our own lives which having sufficient money allows us to do, and to live those lives with dignity.

And you can't put a price on that

Cheers
Kristine

 

[Pushka]

Wow, I wouldnt know where to spend all that money. Maybe you guys are planning to retire while you are still very young and have a dependent family?

What do we want? A nice home near a beach; no loans, have helped our kids into a nice home; an income of around $60,000 in todays dollars; 2 nice new cars (say small model Peugeot and Rav); the ability to travel wherever we want; and good health to enjoy it. What does retire mean? We have a consulting business and a partner who is an author and will write until he can write no longer! Will never retire from this. So practically, we have no need of net assets more than around 1.2 million (not including PPOR) so as long as we get the SMSF more active than current, we dont have to bust ourselves to get there.

Retiring isnt our goal; enjoying life is so we plan to enjoy the journey and arrival!

 

[Ausprop]

Imagine how easy life would be if you earned like a doctor, lived like a janitor, and invested like we all try to do.

Talk about exiting the rat-race super fast.

but if you are exiting to live like a janitor is that really appealling?

 

[Ausprop]

Wow, I wouldnt know where to spend all that money. Maybe you guys are planning to retire while you are still very young and have a dependent family?

What do we want? A nice home near a beach; no loans, have helped our kids into a nice home; an income of around $60,000 in todays dollars; 2 nice new cars (say small model Peugeot and Rav);

the provision required to cover the depreciation on motor vehicles would need to be about $20k per annum, after tax too if not claimable. doesn't leave much to live on

 

[sue78]

depends what kind of lifestyle you want to live. I know we definately do not need that much to retire on.

My mil has 5 kids who combined earn in excess of $500k p.a not inc son/daughter inlaws. We are all happy to chip in to give her anything she wants. Especially as most of us have a couple of kids and can really appreciate how much our parents did for us.

She has 4 houses, a leased out business (owns building too) and retail shop for income and her PPOR. No debt.

She spends her time travelling back and forth helping look after 6 grandkids with 3 more on the way. She loves children.

We want to have 5 kids too and hopefully lots of grandkids. I am not too fussed about retirement money, I don't need a lot because I am enjoying my life now..you never know, your fate may be a short one. I don't want to be travelling Europe on Trafalgar where I saw passengers needing to be helped down the bus or have to book ground floor rooms coz I can't get up the stairs! It's just not as fun and memorable as in your teens (backpacking, 20s with your partner (Contiki, Ryanair) or 30s with your kids (car leasing). Plus a first class round the world ticket is only $11k p.p (saw it recently on virgin inflight) and you could do house swaps now. You could live in luxury but not have to pay a huge pricetag.

Plus living in Brissy for the past 5 yrs, so laid back here..I already feel like I'm in retirement!

 

[Pushka]

the provision required to cover the depreciation on motor vehicles would need to be about $20k per annum, after tax too if not claimable. doesn't leave much to live on

Why is depreciation relevant? I dont care if a car I buy when I retire for say $40,000 in cash, is only worth $30,000 a couple of years later. I plan to pick a car I love and just keep driving it. I dont need an income to cover that, I already own it. Other than the usual add-ons, no extra income required.