Apparently you need 2mil worth of IP for a comfortable retirement. Is anyone there yet?

Discussion in 'Investment Strategy' started by Otie, 11th Nov, 2017.

Join Australia's most dynamic and respected property investment community
?

Have you already accumulated 2 mil worth of property? If yes, is this made up of

  1. 1 property

    7 vote(s)
    3.6%
  2. 2 properties

    12 vote(s)
    6.3%
  3. 3 properties

    25 vote(s)
    13.0%
  4. 4 or more properties

    88 vote(s)
    45.8%
  5. Haven't reached 2 mil yet.

    60 vote(s)
    31.3%
  1. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    I’m not confused I’m being purposely controversial. I can’t stand the marketing of “retire on property” in most cases it does not work.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,666
    Location:
    Australia wide
    Cease being a wage slave making other rich maybe a better phrase to describe retirement.
     
  3. Indifference

    Indifference Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    977
    Location:
    Banana Republic
    Ok... so..... we need a new term to describe this not working, but still being productive, but not being in a financial need type of position in life.......

    Let’s drop “Retirement” and start thinking more along the lines of “Pre-tirement” ..... although this is not a perfect term either, it is closer to what we are all saying.

    Pretirement is the term being used to describe a new phase of life that fits between career and retirement. Traditionally our lives have been divided into three stages - education, career and retirement. But with longer life expectancies, generally better health and the economic need to continue to earn an income, the line between career and retirement is blurring. Emerging from that blur is an entirely new life stage called pretirement.
     
    ellejay, wylie and TAJ like this.
  4. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    The only thing that decides whether marketing is working is your bank account.
     
  5. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,736
    Location:
    Sydney
    My thought though... you need the capital first though before having so much to invest without using leverage? Sure you can build up investments without leverage, but that's very hard, and possibly slow.


    :(

    As for all the other posts in between.... A great retirement should be used to spend doing what you want. It doesn't mean shutting yourself off from the world and making no contribution though.
    You can do useful things for the world and for yourself, and have the time to really do what you want to do.
    Of course, doing a job you love won't feel so much like "work". And you don't have to ever retire if you don't want to. It's up to the individual!
     
    ellejay and Nodrog like this.
  6. Handyandy

    Handyandy Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    651
    Location:
    Sutherland
    Only needed just under a million back in 2011 -2012.

    We invested in the USA at $1=$1 in foreclosed properties. This has built up over time due to reinvesting to encompass 15 properties which now generate >$100k USD pa net.

    This is the most passive of our RE holdings

    Based on other discussions regarding retirement income the $100k which equals $133k AUD gives us about $50k each after tax.

    We are not retired as we actively manage our Oz real estate.Still find time to take 3+ months holidays pa
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    In comparison to your Aust properties, do you get less calls/emails from there about bills, tenant issues, arrears, repairs, etc?
     
  8. Handyandy

    Handyandy Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    651
    Location:
    Sutherland
    No same level if not more activity. The big difference is that the US PM seems to be working even more for the tenant or running scared that they are going to get sued.
     
    MTR likes this.
  9. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    Nothing on Google says about going to a pasture to die is retirement. :D

    upload_2017-11-23_13-46-36.png
     
    Gladys, TAJ, Kevvy7 and 3 others like this.
  10. Jack Chen

    Jack Chen Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    480
    Location:
    Sydney
    Can we just settle on retirement meaning different things to different people.

    Financial freedom / passive income is slightly less ambiguous and is what ultimately drives most investors here on PC.
     
    josh76, Xenia and Gockie like this.
  11. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    Never thought of that. It should be mostly retirees like you and I who are able to be on the forum during working hours.

    All you bludgers on here who are supposed to be working:

    DB0A329C-7AF8-4C44-A3CC-A2CD89E41EDE.jpeg

    My other deed of the day was buying my wife a Dyson V8 Absolute stick vacuum cleaner for Xmas. Thought it would be a romantic gift. Fantastic deal on at the moment as detailed here. $559 and if you buy before midnight you get an Dyson promotional deal consisting of an $89 pack of extra attachments free. Around $1,000 retail value for $559:

    Dyson V8 Absolute Handstick Vacuum $559.20 C&C or $10 Delivery @ Bing Lee eBay

    Only available to retirees of course as everyone else should be busy working:D.
     
  12. dodger21

    dodger21 Active Member

    Joined:
    31st Aug, 2017
    Posts:
    34
    Location:
    Pooncarie
    Getting back on track (sorry...)
    I just got my superannuation statement. After 20 years in the same job, my account balance is only $204,866 (first state super with compulsory contributions).
    So property investment is my only way I think I’ll get $2m for retirement
     
    Gypsyblood likes this.
  13. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    10,726
    Location:
    Extended Sabatical
    No worries. Others, including me, have derailed so it's your turn.

    Seriously though, retirement means different things to different people as does retirement income. I've met those who have done manual work. Have or had about $85k in super according to them. Retirement? How long can I live off that $85k before I go on the pension is their definition. For others the definition is completely different.

    Anyway, I reckon it is all a moot point. What the pundits say or think may never be achievable for a number of people. Divorce, mental and/or other health issues, job loss, homelessness can all be factors in that.

    So, sure you can aim for a level of income, whatever that level may be, on which to retire but there is no certainty you'll achieve it. Got to work with what you got.
     
    kierank and dodger21 like this.
  14. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    10,726
    Location:
    Extended Sabatical
    Hmm, your gal's retirement standards need upgrading. To a Big Breakfast for lunch at a minimum.

    And another thing, why does it decide to hammer down when I'm heading off to places? Not liking Renmark at all. The trials and tribulations of the Full-Time Unemployed :(
     
    Nodrog likes this.
  15. HomePage

    HomePage Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    374
    Location:
    Queansbeans, NSW
    After all this talk of definitions, I'm officially coming out of 'retirement' and am going for the term 'Grown-Up Gap Year(s)er ':D
     
  16. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,376
    Location:
    Buderim
    Further to the earlier discussion on Super and tax etc here’s an extract from Bruce Brammal’s article on the Three Pot Strategy. It could be turned into a Four Pot Strategy by introducing a Company or Insurance Bonds etc outside of Super:
     
    TAJ, oracle, HomePage and 1 other person like this.
  17. Indifference

    Indifference Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    977
    Location:
    Banana Republic
    Ahhh... you totally missed what I was inferring.... I'm absolutely not being passive nor did I say so... that was actually a reference to your actions.

    Secondly yes that is my perception & hence can't be a lie.... it is my opinion. Just like you have yours.

    Thirdly, I thought you said you didn't care what anyone else thinks. So none of this should bother you in the slightest .....

    My mistake totally. I now know I'm not allowed to express my opinion. Thanks.
     
  18. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    All good until they change the rules again
     
  19. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    761
    Location:
    ACT
    How do you go with only getting dividends half yearly (most LICs)? It seems hard that most of the Thornhill LICs are February and August (ARG, BKI, MLT). That's a long time between drinks :D (probably not literally :cool:). You'd have to keep a goodly portion in cash to get you through I assume.
     
    Last edited: 23rd Nov, 2017
    SatayKing likes this.
  20. Jack Chen

    Jack Chen Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    480
    Location:
    Sydney
    General advice is you have a least 2 years living expenses saved in cash before you declare yourself 'retired'.

    Dividends may take a hit during the next GFC so you need a bit of a buffer until they recover. Then rebuild the 2 year buffer in preparation for the next next GFC. Rinse, repeat.
     
    mcarthur and dodger21 like this.