Mini Retirements

Discussion in 'Investment Strategy' started by Terry_w, 23rd Jul, 2015.

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  1. Azazel

    Azazel Well-Known Member

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    Some people manage it on the disability pension, would be doable on the age pension I guess. If you had enough to last you until then and were very frugal. Not for me though I don't think.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    In the case if Thailand the aussie pension works out to be something like 50,000B per month. But some Thais only earn 9000B per month. A teacher would earn around 20,000B per month. So you could live well on the pension there.
     
  3. Lacrim

    Lacrim Well-Known Member

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    Well, the s'sheet says about 50 - 7 yrs time. The goal from now till then is to start partially LOE-ing and taking about 8-9 weeks off a year rather than the average 4.
     
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  4. albanga

    albanga Well-Known Member

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    I love this thread, I recently read some quotes from a book about the 5 biggest regrets of the dying. A nurse who worked in palliative care spoke to her patients over a period and documented there regrets. No guessing what number 2 was! I wish I spent less time working.

    I am currently working on a few projects and businesses that I am hoping to produce some passive income and will then drop my days at my 9-5 to spend more time with family and doing the stuff that really matters.
     
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  5. Harro

    Harro Well-Known Member

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    Does the $1000 a month include lodgings? If so, that's great.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes, from memory he pays around $120 per month in rent. I haven't seen the apartment but have seen similar and they are reasonable quality. Good enough for me to live in one.
     
  7. ellejay

    ellejay Well-Known Member

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    Does sound tempting. I've never been to Thailand, or Indonesia. I've been put off by bad press and usually just visualise stepping over backpackers in compromising positions on the beach and seeing heaps of sleazy men of dubious character hanging around on the look out for their next victim! How bad is that?!! It's probably worth a look, are there places more appealing to boring peeps like me who just want peace and quiet without near death experiences? We've travelled a bit in Africa in the past and loved it but at the end of the day the locals were mostly desperately poor and it was good to try to help them, but travel did have a lot of challenges there and not really fully relaxing as we were carrying the guilt of what we saw constantly, and always aware of personal safety risks.
     
  8. acorn123

    acorn123 Well-Known Member

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  9. Harro

    Harro Well-Known Member

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    The plan is quite detailed and covers varying scenarios. What tips did you gain from it? What do you mean by combining it with property investment?
     
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I have lived in Thailand and can say there are lots of bad press stories but take these with a grain of salt. Indonesia is nothing like I expected it to be. I have only been a few times but I would love to live there. I think the people are much friendlier than Thailand, and there are not many touists (except in Bali maybe) like there are in some areas of Thailand.

    Sleazy western men in Thailand just congregate in about 3 or 4 areas so easy to avoid if you want. Accidents are a worry, and it is the destination with the highest death rate of Australians overseas, but you get a lot of Aussies doing silly things such as riding powerful motorbikes without helmets.

    Check out Chiang Mai area - lots of Aussie older couples hanging out retired up there.
     
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  11. bob shovel

    bob shovel Well-Known Member

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    There are a lot of families travelling around oz with school kids, they do home schooling while they travel. most families though from what i've read sell the PPOR (others do rent) to buy a 4wd and caravan to hit the road for 12 months, not sure how they go settling back in to reality! but thats a big call for a mini retirement for 12 months to buy again probably realise they lost more $ than planned!
    there is a good facebook group with heaps of resources and people on the road: travelling australia with kids
    the going rate for life on the road is $1000/wk but some get it down to 700 by "free camping" (self suffiicent with power and water) and also staying put for longer keeps the fuel bill down.
     
  12. Blacky

    Blacky Well-Known Member

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    Seems a lot! especially if you are set up well. Im not arguing it as I don't know, but its more than I would have thought.
    Fuel would be your biggest expense when I looked at it I calculated about 40,000kms to get around Aus (the main highway is about 15,000 - but you wouldn't want to stick to that). At 20l/100kms your looking at 8,000l of juice. Or $15,000.
    Accom is about 100/week ($5,200)
    Food, passes, living, repairs, maintenance, spares etc - I struggle to see $600/week.
    When we are camping we are spending about $1200/month (or about $300/week) and that includes camp fees.

    Again though I may be wrong as I have never done a long term trip.

    Blacky
     
  13. bob shovel

    bob shovel Well-Known Member

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    @Blacky i originally would have thought similar to you but its expensive!
    you still have all the other boring expenses of real life, insurance car and van, health insurance, roadside assist, repairs as you mentioned, plus if your schooling you have fees and books.
    and camp sites are bloody expensive! $35/night powered +extra for kids(weekly they usually charge 6 nights) but you get to the touristy places that you want to go to and not just stop overs your looking at a lot more! south west WA is around 60-70/night!! then the best caravan park in oz, cairns coconut resort is around $100/night in peak season. so the average rate for accom can jump significantly!
     
  14. chindonly

    chindonly Well-Known Member

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    All looks too complicated to me.
    KISS
    Our plan is to accumulate at least $3M in investment assets (outside PPOR), and at 5% yield gives us $150k a year gross, which is plenty.
    If we don't quite get there as planned, adjust the spending for a few years, or maybe work a couple more years - maybe with some mini retirements thrown in!
    Also don't want to eat into the capital assets too much - want to leave something to the kids!
     
  15. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  16. acorn123

    acorn123 Well-Known Member

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    (@)Harro
    Subsequent discussion may not be suitable for this thread, sorry, Terry (I should move this to other thread).
    Anyway, here are two cents I got so far:
    Never give up age pension. Just like Mrs Bronwyn Bishop (politicians) not to give up their entitlements!After retirement (say, from age 60 to 90), you have 30 years, that is ~$600k, or double of that for a couple, not to mention other benefit for pensioners. For example, at ~60, you may blow out your fund in a foreign country by living there from 60 to 70, and then back home and take the age pension. Of course, this is not the best approach. There are a lot of creative ways on this front. Looking at big companies and charity orgs (Dick Smith?), all are related to "asset relocation or transfer" (to reduce or avoid tax and maximise your benefit/entitlement).
    Living overseas for some years (fund disappeared?) is just one of these tactics..... I would not think they went to foreign counties empty handed .......... They would not tell you too much....
    The best time for doing so perhaps is when AU$ is strong.....

     
    Last edited: 31st Jul, 2015
  17. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Doubling dipping?

    One strategy is to spend all your money, or most, before a certain again and then rely on the pension
     
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  18. ellejay

    ellejay Well-Known Member

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    That's the plan. Know a few peeps who saved hard for retirement but never made it.
     
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  19. Blacky

    Blacky Well-Known Member

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    Following this I jumped on the web and googled. I found a guy who had spent 16months driving around Oz with his family (including home schooling).
    He fully owned everything (car, camper, boat, gear) and had $50,000cash. They stopped for a couple of weeks at lake argyle and earned another $9,000. In total they travelled 45,000kms.
    They returned with nothing and had some undeclared amount on the credit card. For arguments sake lets call it $10,000.

    Total cost $69,000 for 16months (70weeks). Comes to $985/week.

    Well done Bob - you're bang on the money.

    Its cheaper to live in SE asia than be a grey nomad!

    Blacky
     
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  20. bob shovel

    bob shovel Well-Known Member

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    @Blacky it's bloody expensive. If anyone has grey nomad parents, they aren't joking they are spending your inheritance!

    ... But they do travel slower and are more frugal, and they always dress nice. SO would fall under 1000 I'd say

    There are families getting around for 700-800 but they would be"free camping"a lot more 50+% of the time
     
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