Investment Goals/Targets

What really gives me a thrill with my investing is that every quarter (I invest every 3mths) I get a small `pay rise’.

What motivates me is replacing my working income with passive income. My major goal I’m focusing on at the moment is to replace a day’s wages with income from shares. Currently I work 4 days a week. I’m 40% towards my target of only working 3 days a week.

I’m lucky my work is flexible (to a point) about how many days I work. Originally I wanted to push hard and retire at 50. However I have found setting smaller more achievable targets keeps me motivated. Working 4 days a week at 40…. Then work 3 days a week at 43 (hopefully).

What are everyone else’s targets/goals?

 

Nice one.

I'm working more on net worth goals at the moment as a result of chunk equity deals, however this will ultimately go towards my passive income goals which is $200k income per year by 40.

 

We are within 10 years of retirement, so our goals are centered on the income stream that our super is generating. In very simple terms, when the income stream it is generating reaches our target we might look at pulling the pin.

 

Our goal is to enjoy our self-funded retirement.

Been achieving this goal for 7 years now (retirement anniversary: 2nd September).

 

I achieved a recent goal albeit I didn't realise it was a goal per say until it happened.

For over 20 years "every" single financial transaction (excluding small cash items which were guestimated each month) got recorded in Quicken / Reckon. This allowed me to track our expenditure.

But it had gotten to the point where dividend income has reached a level which we can't outspend even if we try. So at last after 20 years NO MORE having to record every financial transaction. It's a great feeling now when ever I buy something (excluding warranty items) and the attendent asks if I need a receipt I can smile and say NO. Woohoo.

Next goal is to sell the last remaining Investment Property this financial year.

Our retirement Theme when it comes to investing is to SIMPLIFY, SIMPLFY and SIMPLIFY. PASSIVE INCOME WITHOUT EFFORT (and I mean near zero work). ENJOY LIFE.

 

Our goal is to slowly convert the equity in our cash hungry investment properties to a nice fat dividend income stream.

We are doing this slowly at opportune times. Recently sold a property in Sydney and put a chunk into LICs so quite pleased with how our passive income is building.

Still quite a few properties to go. Two sold at this stage. So far our dividend income covers a third of our expenses.

We have retired already since the total equity is more than enough for us, but to be honest our our situation is complex (messy) with many loans... I crave for the day all our equity is converted to shares therefore simplifying the crap out of our finances!

We basically live off capital from property sales and tip cash monthly into shares.
Every couple years or so as we sell a property, our dividend income consistently builds until there is no property left and dividends well exceeds all expenses.

Very unusual I guess but more efficient than selling all in same year and allows us to sell off during favourable market conditions.

Looking forward to all dividend income, no headaches and no bills

May even go crazy conservative and go for debt free... who knows

 

Being a very early retiree no doubt you don't want to put too much into Super but I assume you've considered taking advantage of the $25k personal Super Contribution ($50k if your partner does same) to reduce CGT? Better in Super than a hunk of it in the ATO's pocket.

 

Thanks for the tip.

We thought about that. Super will only really become part of it once our dividend income becomes large enough for us to have a hefty tax bill. Looking forward to that

The reason CGT is not a concern is that we still have some hefty negative cashflow from remaining property portfolio that's diluting the tax payable on capital gains.

This may change with later sales possibly having larger CGT plus our dividend income being larger. Will monitor each sale and try to minimise the damage.

Having said that I hugely prefer access to the money, even if I'm paying tax. This will likely become less important once our income/portfolio is setup way I want it

 

Great thread and posts so far! I really love reading about ppls actions and plans for financial independence!

I'm currently maxing out super contributions at 25k pet annum which is invested in Australia super DIY pre mix options with a 70/30 Aust shares/int shares tilt with a expense ratio of around .356%per annum cheap as chips!

In addition allocating around 20 to 30k per annum to a select 3 or 4 lics in both my name and also my partners lower income earning name whilst ticking the drop box and set and forget and let this bucket compound and grow for the next 25 to 30 years.

And finally also saving an additional 30 to 40k per annum to build up reserves for opportunities and in addition seeking to tap into maybe a IP and long term hoping to own this IP outright in addition to my fully owned PPOR at the age of 33.

If I can stick to the game plan for the long term super should be building up nicely in a lower tax environment in addition to the allocated monies to the lics which will be building up a nice passive dividend income stream to give me and my partner some freedom by the time I hit my early 50's in addition to the cash at bank buffer!

 

I like this thread

Have a similar goal to replace my income and love seeing the accumulation every small win:

- quarterly increases to my VAS share balance with DRPs;
- quarterly purchases of the same VAS (Vanguard ASX 300) fund.
- monthly reductions to loan balances which reduces interest costs on properties held;
- annual increases to rent on those properties - it's also nice to know they are a little bit below market in a rising rental market, so next year is primed for another increase.
- super topped up with salary sacrifice contributions

Having a variety of future sources of income and capital is great to give you a number of options depending on your circumstances and situation.

 

Work a couple more days a week and build up the snowball.

Otherwise,

 

Working an aggressive strategy to try and achieve retirement within 5-years.

Putting my engineering/analytical skills to work on research of company fundamentals for careful investing in small-caps. Enjoying it too. Teamwork approach with like-minded investors will pay dividends. Will progressively move profits to ETFs/LICs.

The more boring aspects of my portfolio are the ETFs/LICs/banks in my super.

Would like to eventually convert my investment properties to new stock through development. The maintenance issues and associated decisions are getting annoying.