On FIRE

Only 1? That's depressing....

 

Good old Mr Money Mustache appearing in mainstream media again. I love his content - his blog is worth a read for anyone interested.

Cheers

Jamie

 

Additionally many of us here could retire but choose not to for various reasons. In my case I’m having too much fun yet. Some want a few $M more yer.

 

Also check out the FI reddit forum
Financial Independence Australia • r/fiaustralia
I know Jack Chen, Snowball(?) and a few others frequent there.

 

One of those case studies in this article were former clients of ours (Cath and Scott) and I am inspired by their go-getter attitude and determination. Having the choice of retiring in your 40's is a pretty attractive option

 

I agree. I am having too much fun too. I work to pay for the real estate projects that I like to do. The income from my projects will probably replace my salary one day. Even then I may not retire because I like my job and I am good at it. I could drop back to 4 days a week though

 

My brother (single) retired at 54 when his share dividend income exceeded the income he earned from his job.

Dividends steadily increasing. Shares worked well for him.
Marg

 

Did he retire? Or keep working?

I am currently building and the guy who did our drainage is so old he can barely walk. However, he loves what he does so refuses to retire. He has been doing drainage for 50 years and do has many interesting stories to tell. He loves being on site and interacting with all the trades as well.

I watched him work while I was tiling and he is amazingly meticulous. I have a lot of confidence in his work. It is beautiful work.

 

One of the best arcade games ever! @Biz

It's up there with Street Fighter 2 and the TMNT arcade game

 

Retired.
Now focuses on travel.
Marg

 

Well done for you brother Marg.

Was his a large income....replacing 50-60k seems to be relatively straight forward with some disciplined Share investing...but 200k plus...seems really difficult. I am presuming you are talking about net income rather than gross ...correct?

By the way dividends in quality diversified portfolios seem to be more stable than rental income...

 

No idea. None of my business.

But given his qualifications and experience, I expect it would have been well above $50-$60K.

When he said he was retiring and I commented that he would not be able to access super, he commented that he was earning more from dividends than from his job.
Marg

 

If he was born before 1960 he could access his super at 55.

 

He was under 55 at the time.
Marg

 

I work about half the year to access finance for property and catch up with friends at work. I cashed in $150k gross this month from two property sales so taking the rest of the year from from Christmas

 

Noice one not many ever do this....

 

What strategy are most people focusing on here at the moment for FIRE? Purely investing in share market for income or a combination of property and shares?

It seems most FIREs are choosing to focus purely on shares and dividend income but wondering if anyone has/is successfully using property for leverage then moving into shares? Is this strategy even worth it when you factor in CGT and the other ongoing costs of holding property?

 

A combination is working well for me.
Have money invested in 3 LIC's, which I continue to add to regularly, along with 3 IP's, 2 of which are unencumbered and use the rental income from them along with business income to pay down P/I loan on the 3rd. Under 35k to go.
Will be selling my share of the business around this time next year and will then fully retire.
Super draw down pension, rental income and LIC dividends to provide me around 80k a year nett.
Remembering this is for one. Can draw down Super pension from March 2020. (60)