Endgame - What are you aiming to live off?

@Skilled_Migrant and? I have reviewed all those statements and they are all correct. It's not an "OR" situation, it's an "AND" situation. Problem?

Edit: are you guessing that because my parents are property investors they must be "rich"? Before you answer that, I can let you know they both qualify for the aged pension. Aged pension cuts off when people have too much in assets, so the combined value of their investments is less than that.

 

I don't see how those statements have to be mutually exclusive?

 

And spend the next 12 months on immigration watch/black list for suspicious travel patterns

 

Living of Equity.
Can't be bothered with renting out properties now
I have other things to do. . .places to see.

 

He likes to make guesses about my past in an attempt to discredit me. He hasn't been lucky with his guesses so far.

I only bought my first ever home in 2005 for $211,000. I had to borrow around half the deposit from a mate. I was lucky that someone was prepared to do that for me.

 

So you're living off equity....from properties with no tenants?

 

Nope . . . sold the properties and invested the cash.

 

We're already living off rents.

 

Gee that book must have been good worked super quickly! I need to get to one of those seminars.

 

Yeah I remember fondly that AGC debenture in Sydney that paid 17.5 % interest for a few years, sadly those days are gone, some of my accounts get 0.01% interest now, so bank deposits aren´t going to cut it.

One advantage of cash though is you can transfer it to heaven after you die via Gods offshore Vatican account (after 90 day waiting period, subject to holiness checks). Could be very handy to set yourself up with a nice villa on Apostles avenue, or bribe St Peter at the gate.

 

Well, we aren't limited to holding bank deposits only in those countries which give 0,01%, aren't we? Think outside the square.

 

Excuse my ignorance, and maybe this was touched on in another thread. There's a lot of talk here about using super to reduce tax at retirement age. If you were earning, say $100,000 before tax in property (own name) and you're at retirement age, could you pump most of that income into super as extra contributions and then withdraw the majority of it out fortnightly on the lower tax rate?

I know there are millions of rules on super so maybe it's not effective?

 

No, well you could pay tax on it and then make a contribution to super.

 

If your only income was the 100K from property, you may be eligible to make a tax deductible contribution to super up to a prescribed amount. This may change if the new government passes super amendments. Best to get accountant to advise.
Marg.

 

Ok, thanks @Terry_w and @Marg4000

 

FWIW, I'm in the "other" category... more accurately, "neither" LOR nor LOE... long term that is.

As someone in their early 40s that could be classed as semi-retired, I value my time & life experience too much to hang onto equity until the 11 hr when all that is left to do is give it away to someone else....

I'd rather consolidate into more liquid assets whilst I'm mentally & physically fully able, so that I can enjoy life with minimal asset management requirements. That means more than owning just a PPOR for me/us, but also deriving income from various sources (super, dividends etc...)

As long as my passive income is "secure", I don't care too much what the equity value or net worth is.... obviously there is a symbiotic relationship but there is also a myriad of ways to generate passive income that does not require a multi-million dollar asset portfolio. It also helps when you have realistic expectations (i.e. expecting to retire on 1.5-2 times your average lifetime annual salary, is to me, a destination mentally, was it requires too much sacrificed time to enjoy the journey....)

There are also ways to minimise your living costs so that you don't need the same $$$ to have the same quality & standard of life... they may have limited affect but it all helps.

Each to their own...

Indi

 

Myeh, if they can afford it, go for it.
Not many would qualify for the full pension, surely.

 

I'd be interested to hear from the person(s) that stole Kerry Packer's gold in 1995 as to their thoughts on this thread...

 

What happened in 1995? I don't know this story.

 

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