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However in real life, as many others have stated above, I suspect that I (and a few others) would be hard pressed to spend $1m (let alone $10m) per year on living expenses alone. So any "change" out of the living expenses would go into either CG or CF investments (and at this stage I would suspect CG elements if only for tax reasons!)
I'm seeing a combination of shares, commercial, fixed interest, build-and-sells, and outright sells. Use the residential as a core to generate capital and then buy other stuff for CF.
LOE is also a possibility there.
Alex
You're welcome mate!I'd just like to thank you , and others, again Michael for the effort that you in particular put in Via a spreadsheet, which gave me a bit nore clarification as to how to achieve my goals in the near future.
(ooh baby, I'm all aquiver just thinking about it)
Its nice to see it in a clear format instead of scribblings on an envelope and an idea in my head.
Thanks
Dave
I agree Y-Man. But instead of taking the gains as income and then buying back investments with surplus, in reality you would leave the equity where it is and draw down what you needed.
So we're getting towards LOE!
Alex, I haven't done the numbers properly but I would think that you would need to do a fair bit of the above to generate that income, simply because, as it is in the form of income, you would paying out a lot in tax.
Alex, I haven't done the numbers properly but I would think that you would need to do a fair bit of the above to generate that income, simply because, as it is in the form of income, you would paying out a lot in tax.
Intuitively I think you would be ahead if you used LOE.
Alex, I haven't done the numbers properly but I would think that you would need to do a fair bit of the above to generate that income, simply because, as it is in the form of income, you would paying out a lot in tax.
Intuitively I think you would be ahead if you used LOE.
I'm not pushing LOE, and I still can't come to terms with the ever-increaseing debt, but I'm having difficulty visualising how to get to 500k - 1M per year in income.
Maybe that's because I haven't achieved the right paradigm shift yet.
Cheers
y-man said:In our own case, we are planning to derive our income from instruments such as income funds and to a lesser degree dividends.
So we are not actually drawing down on any equity (although we may from time to time do this, if we see this as a way to leverage the income). Hence the need to "buy" CG elements with the excess cashflow.
Cheers,
The Y-man
Thus what we are left with is a portfolio which is about 50% RE 30% shares(direct and MF's) and 10% other.