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Mini Retirements

Discussion in 'General Property Chat' started by Terry_w, 23rd Jul, 2015.

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  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Mini Retirements


    For many people the goal is to not have to work. To get to this point they work hard and save hard.


    But Instead of slaving away 5 or 6 days per week for 40 years to retire why not set yourself up for multiple mini retirements along the way.


    There is a chance you will work your arse off till 60 and then either drop dead just before or just after retirement. So enjoy yourself along the way.


    This may not be as difficult or expensive as you may think.


    Time it right for tax effectiveness. You may normally earn say $100k pa and pay $almost $27k in tax (27%) or you could just work 6 months of the year, earn $50k and pay just $8500 in tax (17%). So you are not losing half your income by working just half the year.


    You might go overseas and live in Thailand on $2000 per month while renting out your main residence earning $4000 per month


    While relaxing on the beach beside a coconut tree you could be studying on line, doing an online business or writing that book you always wanted to write.


    The good thing is your assets will be growing in value as well, so you are not going backwards.


    Do it while you are young and enjoy it.


    Got this idea from the “4 hour work week” book, but I have also done a few min retirements over the years too.
     
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  2. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    I did have a friend do this.
    He owned his own taxi and house so use to rent out his house and get someone to manage his taxi or rent that out too for 6 months of the year and go and live in Thailand.
     
  3. KDP

    KDP Well-Known Member

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    Very good ideas there Terry.
     
  4. pinkboy

    pinkboy Well-Known Member Premium Member

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    Was that Mushie?

    pinkboy
     
  5. MRO

    MRO Well-Known Member

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    My plan is to cut down to 4 days a week work over the next 3 years, then 3 days a week over the following 5, and full retirement sometime after that.

    I dont think it has to be an 'all or nothing' proposition.
     
  6. TwoDogs

    TwoDogs Well-Known Member

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    Had a friend who was an mechanic for an airline doing 12 hour shifts 4 days on 4 days off. He split this to 4 days on, 8 days off for not much less in take home pay. He then runs his business when not at work and travels o/s all the time in those 12 days off.

    Bastard.
     
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  7. ZachAnsel

    ZachAnsel Well-Known Member

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    I've one mentor who do exactly like what you describe it Terry, but he get bored.

    He did tried couple things, volunteer, doing charity work, but his soul was not there. He end up stress doing something that he dont like.

    What funny is he back to work now, but not for money. Its for sanity, mental needs and fellowship of friends. His mind sharp as before.

    One paragraph that I have in mind from him is true winner never retire. Imagine if Buffet retired, or Steve Jobs retired.. Then I replied, but Bill Gates retired and focus to his foundation. He cut me and said that's why Apple better than Microsoft now..
     
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  8. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Great advice
    I did that for 18 months a decade ago. It definitely recharges
     
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  9. Beelzebub

    Beelzebub Well-Known Member

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    This how I've always seen it. In a way it seems odd to waste my youth slaving away so I can be free as an old wrinkly man waiting for my next heart attack.

    However, rather than sitting around bored I'd rather just cut my hours. Have enough cash to pay all my bills and just work a couple days a week for some play money.
     
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  10. Perthguy

    Perthguy Well-Known Member

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    I'm sure that is not a very good analogy, considering one is no longer around. Not sure about Apple being 'better' than Microsoft... but that is another discussion entirely ;)
     
  11. ZachAnsel

    ZachAnsel Well-Known Member

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    I know, but that exactly his words..
    But his point was retire just not his things. He also mentioned that "it was funny". He always dream about retire, retire and retire. Then after retire, he questioned himself. At the end I mentioned "you kind of enegizer bunny who need to keep going"
     
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  12. skyfall

    skyfall Well-Known Member

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    Great post Terry. I took a year off in 2002 and bought a round-the-world ticket visiting 28 countries which got me hooked. Bad timing because the AUD was only buying US 52 cents but I had a great time. I left Australia again in 2007 for a 2 year mini retirement but found it hard to go back so I stayed overseas and haven't worked since. My last paid job was in 2001 and I think I'm unemployable now with a 14 year gap in my CV. My rent covers my cost of living but I don't live extravagantly and spend about AU$35-40k having a lifestyle many dream about. The worst part is I'm a non-resident so I pay a lot of tax.
     
    Last edited: 23rd Jul, 2015
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  13. WattleIdo

    WattleIdo renovating Premium Member

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    Because he had a mini-retirement. o_O work can be wonderful when you have the energy for it.

    Definitely another first world problem!

    How does a dumby like me with a workaholic burnt-out brain take the first step to work out whether or not I can go ahead with a plan like this atm? Would love to take time off to renovate. No problem for the first few months but ...
     
  14. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Invest in a taxi plate ...invest in a house...
    You have 2 incomes !
    You also have a job and house to come back when u get bored.
     
  15. CatCafe

    CatCafe Well-Known Member

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    Hey guys my partner and I just resigned from our full time jobs. We're taking a mini retirement before the kids come along.

    Will be overseas for 6+ months, learning a new language, travelling and exploring new interests for my eventual full or partial retirement in a few years time.

    I am currently 30.
     
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  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Great to hear. What language do you plan on learning? one of my interests is languages too.
     
  17. Tonibell

    Tonibell Well-Known Member

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    A bit like the boxers who wanted payment before fighting Mike Tyson - give themselves a chance to enjoy it while they still have their facilities.

    It sounds a great idea - but it is hard toenjoy yourself when their is uncertainty about your future earnings.
     
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  18. CatCafe

    CatCafe Well-Known Member

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    Mandarin Chinese. Although not strictly a new language for me as I can speak it like a 5 year old (I was born there). My partner and I have enrolled for an intensive language course with the intent of bringing up our kids being fully bilingual. And for me an opportunity to reconnect with my roots.
     
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  19. CatCafe

    CatCafe Well-Known Member

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    It took alot of convincing for me to overcome this but I can always find a new job when I return. I've got plenty of experience in my field and a professional network I can lean on.

    The opportunity cost of waiting until I hit my financial independence goals would've been too high of a price to pay.
     
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  20. A&J

    A&J Member

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    Some of the guys at my work have taken on "Job Share" (2 jobs into 1). They work a 2 week swing & then have 4 weeks off. Works out to be 16 weeks work a year not including annual leave.
    They basically just halve their pay.
     
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