150k Passive Income ....what it takes..

That is not the goobermint's plan...you are to programmed to work till 67 ......then live on your own super with a small sweetner from the govt...may a couple of thousand and a few discounts till 85 or so....

That should solve any future budget deficits....you are being programmed to obey....

 

Haha. As if!

 

What the article is saying is that, for a home owning couple for example, it makes no difference to retire with 400K or 1050K in asset. Their retirement income will be about the same in both cases – 52K pa – due to the age pension.

Although it could appear so, this isn’t a disincentive to trying to achieve the higher level of asset.

Say you’ve achieved 400K, you should go on and try to save more because that extra saving can be spent on whatever you want at retirement without affecting your income.

Or say you’ve achieved 1M, it gives you a lot of comfort knowing that whatever financial disaster may hit you when you’re too old to work you can still have a reasonable lifestyle as long as you can hold on to the minimum 400K and your home.

For most of us on this forum though it’s a strong incentive to try to aim for, and stay at, a much higher level than the 1M target recommended by experts because that’s where the difference lies.

I think it’s a fantastic piece of info. It gives peace of mind without too much of a disincentive to save.

 

bloodbath at the crypto!

 

I am officially coining a term for people who think putting money into Crypto is investing:

Cryptards

 

....now ...now....I don't if you were old enough to remember the the dot com boom...it reminds of that...people put money into penny stocks of internet companies where vals went from cents to something like $20.

All of sudden everyone was punch drunk on it..some even took money from offsets and put them in it..

 

Lightweights... I know people who actually remortgaged their homes for it

Back on topic of actual investments: apart from property, I'm finding a mix of managed funds, index funds and LICs works for me. Liquid portfolio returns around 9.4% net at the moment, including my dud investments.

I've set up a range of financial models (covering different interest rates and other risk factors) and the indicated net annual income we need to cover all expenses and enjoy our current (mildly exuberant) lifestyle ranges from $119k to $179k. Targeting the midpoint of that range, which just so happens to be right around $150k

We have recently entered the bottom end of that range, so we have begun planning our endgame... on track to reach our target before we turn 37.

 

Yep agreed.....noice work...how did you get there mostly in shares or property....

 

We rode the Sydney property boom, managed the structure right to maximise equity release flexibility, invested and debt-recycled into funds, and just kept at it. Really boring tbh, but it's effective.

 

That is where i am headed...as for rule thumb based on the 4% rule ..I am presuming you need $3m invested to get the $120k current return?

 

At 4% net return, yes $3m would be needed for $120k passive. However my current portfolio (13 managed funds, 8 index funds, and 8 LICs/shares) has a weighted average net return of 10.4%.

So for $120k passive, I'd only need $1.15m. That is a bare minimum figure based on ideal numbers though, hence why I'm shooting for $150k

edit: just realised I might overshoot by a bit as these are just numbers for the liquid portfolio; my models assume my IP income won't change (despite the fact that I pay principal on all my IP loans)

 

Will PM you...awesome work by the way....!

 

Crypto is millennials first asset bubble.....can’t really blame them, greed is powerful.

 

I agree Falcon.....I guess I am the tortoise...slow and steady....can't keep up with the younguns' any more.

Its good to see you and others have made money safely for a long time with LICs and ETF..and not flash in the pan types...that is where I prefer to play...

 

It dipped below the $10k mark this morning. Seems to have rebounded slightly since.

 

Write heaps of loans

Time is the most precious resource and if you can buy it back then you are on your way to true freedom. The older I get the more precious time is and the younger I was the more precious money was.

 

wow non of you that have these milliondollar portfolio place a few grand in crypto just for **** and giggles ?
lol.

ok good to know im not the only with over 30 holdings in stocks...thanks!.. im trying to cut down mine to 25. just waiting for the right time.

 

Trying to get $150K passive income, these figures are not end date accurate as I don’t have all the data some finish 2015 others 2016 but it gives you the idea as the durations are correct.

Using:

Right side
DRP
30% tax rate (add roughly 25% if in superannuation)
Maximum margin 45%
$10,400.00 original investment
$10400.00 invested per annum (saving of $200.00 per week)
Duration varies.


Left Side is a one off investment to get the same result with no margin loan

 

good luck retiring on 1.15m capital.... if it were true and that easy all those who rode boom cycles would be retired today

 

Shooting for significantly higher than 1.15 for obvious reasons. Also, as per the edit, this is just the liquid portion of my portfolio, and doesn't include IP income.