Lets talk Income

! Couldnt think of a less relaxing way to spend my retirement.

 

yes it's both

 

100k would make you a Boganaire.

 

So genuine question - what do you spend it on? Skiing? 5 star hotels? Cars?
I would think that being retired, we'd chill-out and not want to be so flashy.... like really. I spent a season as a ski bum in St Anton @ 22 and would rather go back with some pocket money @ 50. Apart from that, I can't see how to spend so much.

 

So many things...
Apart from travel which could take a big chunk of funds:

• Personal chef/quality meals
• Housekeeper maybe
• Personal trainers/coaches
• Take part in various sports and physical activities
• Regular physio/massages
• Golf lessons and fees
• Entertainment of all sorts
• Attend major sporting events
• Attend educational workshops and events
• Wife would have her personal activities too
• Fund my young daughters academic and athletic pursuits at a high level (not cheap!)
• The rest could go to helping family financially and charities or those in need.

I'm 40 now and never really had the chance to go to the snow because of work commitments. At least now I could do it whenever I please.
Freedom of choice is the greatest benefit of having funds available.
This is the reason I want to speed up in retirement, not slow down.
There are just so many things to do and achieve when doing this stuff full time.

I don't believe there is much if any materialism in the list above. It's all contributing to personal development and life experiences.
Even in retirement, I believe you can still be time poor, and that's the only reason I list housekeeper and personal chef, as I'd rather spend my time and effort in other areas.

 

Yeah can see your point. Just wonder whether all the motivational stuff would still be necessary as we'd hopefully have the time and space to find and utilise a truer and deeper motivation and do things that make you really feel good like visiting your old aunt, volunteer work, de-cluttering, down-sizing.
Unfortunately, I don't have the energy to even renovate every day atm. Maybe it will come with a few weeks off and a better diet. I'd love to go skiing for months at a time but truth be told, it could be too much like hard work now.
Would love to have the home cook - that would be really wonderful and might make all the difference. Still hoping to find the energy to pick up a book and read from cover to cover. I'd sacrifice the servants if I didn't have to spend so much time working and using up my fitness and healthy head space.

 

seriously you don't need 300k for this, no where near
plenty of healthy competition for these services, I reckon 150k and you can easily have the above you mention

mtr

 

Maybe, but I don't see an "International (NON-South East Asia) Travel" budget there yet.... a few months in various world locations could add a bit yet to the total..... at least in my world!

 

Im not in the least bit interested in that so it doesnt help or affect me in any way.

I spent around 150k last year, aftwr tax dollars. Yes it was an excessive year but the idea of retiring on a small income doesnt appeal to me in the slightest

 

Good effort
We've always been low spenders relative to our income, but will have to work up to start spending.
It's going to be one of those "out of your comfort zone things" for a little while, which can only mean even more growth...

It doesn't have to be the typical Mantra of - The more you earn, the more you spend.
Why not - The more you spend, the more you earn, (similar to the effects of giving to charity, where the more you give, the more you seem to replenish to be able to give even more).

 

That doesn't include many other costs/expenses.
e.g. Although I consider our PPOP an investment, and even though loan is fully offset right now, P&I repayments are 130k/annum.
The council rates and other home related costs are quite expensive too.

There would millions of mega rich people in this world with massively excessive wealth who spend like crazy, many probably didn't even earn it themselves.
It's all relative.
Nobody needs any more than basic accommodation, food and medical requirements, but that doesn't mean you should settle for that.

 

I was having good think about this comment, I've never been asked that. Besides motorsport, I can't think of activities we enjoy that cost much money. The biggest part of our recreation costs are usually LPG to feed the car, $70 gets us to Sydney or Adelaide.

For us, getting the BBQ going and enjoying a few frothies with a dozen mates in the backyard around the fire bin is much more rewarding than going to the movies and dinner.
In the summer, we go fishing and swimming at the local river, the dogs love it too.

Perhaps I should purchase a boat

 

I have the same problem, although on a different scale. I've got no problems putting down a lot of money on an IP or its upkeep and improvements, but sometimes feel guilty if I spend it on some personal gratification.

It's a problem but I find it difficult to stop the intrusive thoughts.

 

I wonder if you can be happy splashing money around then? I mean you.

 

I'm being realistic - same as a few others here - I'd rather have too much in retirement than not enough (as I watch my elderly father in law, pour over the travel brochures of places he cannot afford to visit).

Asia holds no interest for me - but I want to travel extensively around Australia, Europe and Canada in comfort - not cheap - I want to go on some of tours that give me the background and history, not just the pretty pictures - not cheap - I don't want to travel airline coach or packed bus - not cheap - I want to be able to pay a bill without having to budget - I want to keep my cleaner (I hate cleaning) - I don't want to choose a restaurant based on the menu prices ...

 

Kids and mortgage - without both we'd be $30k+ a year better off ... but both are worth it

 

Ace, $130K a year on home repayments does my head in. We spend about $16K. When you are older, will you really want the trophy home that requires staff to help run it? That must be one huge house to downsize later.

I guess my idea of overseas travel to Europe is to rent a villa in a few different locations for several months to get all my culture fixes. The PPOR at home will be sold off or rented out, thus neutralising a significant cost to us. I've already travelled in Canada and Europe and the cost doesn't have to be anywhere near as much as Getaway on TV would have you believe.

What I meant before about it getting "boring" is that after a while all palaces or castles start to look the same, all medieval villages start to look the same, all waterfalls start to look the same blah blah. And I am a medieval history nut! Sooner or later we get to the end of the list of places to visit plus we get older and a bit decrepit and we decide that the effort of sitting on a plane or in airports is more than the joy we get being somewhere different. People will get to that point at different rates, but surely we do not have to factor long-haul overseas travel into every year of retirement, up until the day we finally kick it. My "retirement" budget will allow for shorter trips, to the Pacific Islands, for example, rather than to Europe. I have no desire to sit on a beach in Asia when I can sit on a beach at Noosa any day I like.

 

It's only a 3 bedroom house, much smaller than most new homes getting built in new estates.
When we moved here, all the neighbours were in their late 50's 60's and 70's, so old people do live here, but more recently there's been 2 families similar age as us move in.
It don't need staff, but a housekeeper would be nice to keep things tidy as my wife and I don't do much cooking, housework, cleaning, gardening, and would rather spend time on other things.
Like I said, I view it more as an investment and hopefully grew 750 or even a mil in the past 3 years since we've had it.

Can always sell it CGT free if required.

 

Just to put it in perspective, I pay $30 per week for my cleaner, takes her anywhere from 4-5 hours, thorough, that only equates to $120-150 pw.

I am at the point in my life that if I can afford some stuff that I hate doing why not just pay for it. I hate accounting, so basically every quarter pass it onto my accountant to prepare BAS etc.

Also, coming back to lifestyle..... travelling is so cheap these days compared to many years ago, more competition. I know people living on modest income and travelling the world. Some people are very good at finding bargains.

 

Sorry Ace, I was imagining a huge marble palace rather than a normal 3 bedroom Sydney family home. I'm still drooling over the beautiful home in Adelaide that the guys were discussing on Sunday. It is dominating my brain.

I believe a cleaner/gardener etc is well worth the $$. I think I'd enjoy cooking myself, but I like the idea of getting in a chef for special occasions.

I like the way that, when we do retirement threads, no one ever discusses the cost of lite n easy, meals on wheels or a home nurse. None of us have any intention of ever losing our health