LOE anyone ?

Discussion in 'Investment Strategy' started by keithj, 28th Jun, 2015.

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  1. DanW

    DanW Well-Known Member

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    LOG I think refers to a riskier version of LOE.

    LOE means planning your retirement based on equity you have today.

    LOG means retiring based on projected annual growth - you need to keep getting higher valuations and sale prices to make it work.

    LOE on the other hand would work if prices stayed flat.
     
    DanW, 29th Jun, 2015
    #21
  2. Redwing

    Redwing Well-Known Member

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    I'm relying on the LORD to provide

    Living On Rents & Dividends

    As I said on SS, throwing an Interest and Equity strategy in there would give you LORDIE, cycling through these to take advantage of the various cycles would give you LORDIE, LORDIE
     
    Redwing, 29th Jun, 2015
    #22
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  3. Redwing

    Redwing Well-Known Member

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    Here's the Open Wealth guys talking about LOE
     
    Redwing, 29th Jun, 2015
    #23
  4. Biz

    Biz Well-Known Member

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    What about LOD?

    Living off Dependents.

    Bang out half a dozen kids and collect the benefits!
     
    Biz, 29th Jun, 2015
    #24
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  5. sash

    sash Well-Known Member

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    What sort of income will be getting? And the split of dividend ans LOE income?

     
    sash, 29th Jun, 2015
    #25
  6. DanW

    DanW Well-Known Member

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    I'm planning LOSMMUSMA.

    Living off self made millions using self made acronyms
     
    DanW, 29th Jun, 2015
    #26
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  7. srirang

    srirang Well-Known Member

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    I agree with the risks of LOE stated by the OP. However, living off rents alone will take a long time for us.

    So, we are using a combination of LOE and LOR. Our plan is:

    1. Aggressively paying down our PPoR
    2. Hold our current portfolio of 5 IPs
    3. When PPoR is paid-off, start partial LoE using PPoR equity - this most likely means wife will go part time or stop working
    4. Start paying off IPs
    5. Retire once IP rents pay $90k per annum

    We are mitigating some of the risks by applying LoE earlier so we can still service the loan and by working full time till then.
     
    srirang, 29th Jun, 2015
    #27
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  8. MTR

    MTR Well-Known Member

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    That sounds good, but is it LOE?? I see LOE means that you basically don't have a job and you utilise LOE to fund retirement?? Your variation would reduce risks.

    I agree, living off rents using resi properties is a very slow way to get to the end goal.

    MTR:)
     
    MTR, 29th Jun, 2015
    #28
  9. 380

    380 Well-Known Member

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    No one mention share for our dear friend ATO.. every property sold is subject relevant tax amount!

    it is easy to say sell 4 properties worth X400k each = $1.6 M and pay off debt of $1.6M

    Forget selling cost, legal cost, marketing cost, TAX: just get $1.6M from sale and pay off $1.6M debt:cool::cool:
     
    380, 29th Jun, 2015
    #29
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  10. srirang

    srirang Well-Known Member

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    No, it is not pure LoE. I think you have to adapt multiple strategies and come up with something that works for you. We also do not intend to sell any of the IPs at this stage.
     
    srirang, 29th Jun, 2015
    #30
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  11. skater

    skater Well-Known Member

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    I think there are some points here that would be good if @Rixter were to make an appearance and add his comments.
     
    skater, 4th Jul, 2015
    #31
  12. Redwing

    Redwing Well-Known Member

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    Sell one a year when no longer working, plus if held over the long term you should get your CGT discount. If held in a trust you should also be able to also distribute the gains?
     
    Redwing, 4th Jul, 2015
    #32
  13. orangestreet

    orangestreet Well-Known Member

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    Where has Rixter been lately? I would have thought he would be defending himself vigorously in these debates as he previously has.
     
    orangestreet, 4th Jul, 2015
    #33
  14. Investig8

    Investig8 Well-Known Member

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    Living the Dream one would presume
     
    Investig8, 5th Jul, 2015
    #34
  15. stumpie

    stumpie Well-Known Member

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    I don't believe rixter is purely using an LoE strategy, his rental income is positively geared i.e. positive cash-flow however he uses some equity to supplement his lifestyle. Would be good if Rixter could chime in and confirm.
     
    stumpie, 5th Jul, 2015
    #35
  16. Jamie_

    Jamie_ Well-Known Member

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    FYI, if you use the @ symbol before someones name you can "tag" them so that they see the thread
    @Rixter
     
    Jamie_, 5th Jul, 2015
    #36
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  17. skater

    skater Well-Known Member

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    I believe @Rixter is not working anymore, but his wife is.
     
    skater, 5th Jul, 2015
    #37
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  18. Jamie_

    Jamie_ Well-Known Member

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    Ooooh, so this is where the LOWife comes from?
     
    Jamie_, 5th Jul, 2015
    #38
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  19. WattleIdo

    WattleIdo midas touch

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    Thanks for letting me know that. I thought it was le mot du jour but will use it now too.
     
    WattleIdo, 5th Jul, 2015
    #39
  20. sash

    sash Well-Known Member

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    :DYou hooo........Rixy baby...where are you?

    Would be great if you can reveal on you are funding your retirement via LOE...based on the commentary on this post..the following is bieng said:

    1. You are partially LOE...
    2. Your wife has a part time job?? ...not sure....
    3. Have some positive income from property...

    Would be got to get clarification here....this strategy in my view is a blended strategy and plan to use a similar strategy...where LOE will only be used during months of shortfall....

    Are we warm Rixy??


     
    sash, 14th Jul, 2015
    #40
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