Playing with FIRE

Discussion in 'Financial Independence, Retire Early (FIRE)' started by Redwing, 14th Oct, 2018.

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  1. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    Oh, gee!:eek: Eat into the capital? I couldn't do that! I'd never sleep!
     
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  2. Lacrim

    Lacrim Well-Known Member

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    I reckon just say you run an online business and leave it at that.
     
  3. Lacrim

    Lacrim Well-Known Member

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    Not much. Perception is that we're completely going off but when you break it down, you'll see why it adds up.

    I've inflated some of the numbers slightly (to be conservative) but wouldn't be surprised if it came close in reality at the end of each yr.

    Sure, these could be shaved but it would require everyone being diligent. I trust myself but the rest of the family....:rolleyes:


    Schooling expenses, excursions etc $5,200
    Electricity/gas $4,160
    Dinner out/lunch at work $4,160
    Health Fund $2,782
    Shopping for clothes, toys,play money, etc $2,600
    Car Repairs $1,560
    Mobile phone - family $1,500
    Car insurances/Rego $1,404
    Kids sport/related costs $1,300
    Medical emergency, drugs etc $2,000
    Kids swim lessons $1,014
    Pricefinder $822
    Gym $796
    Internet $891
    Transport - bus return trips to CBD $2,600

    Adds up to $32K per annum plus (excluding groceries)
     
  4. Lacrim

    Lacrim Well-Known Member

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    Not sure what this means...if you have enough of your own investments/capital within or without super to generate $128K, do you still get the pension?
     
  5. kierank

    kierank Well-Known Member

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    Nope.

    I am planning NEVER to rely on the Government to set my level of living/lifestyle ;).
     
  6. PKFFW

    PKFFW Well-Known Member

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    "Self funded" pension is the pertinent point.

    I believe at kierank's age the requirement is that one takes 4% of the balance of the fund as a pension each year. As kierank and partner each have the maximum $1.6mil in the pension fund, they must each take $64k per year.
     
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  7. Lacrim

    Lacrim Well-Known Member

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    Right. Does that also imply that the $128K is tax free?
     
  8. kierank

    kierank Well-Known Member

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    Yep
     
  9. MWI

    MWI Well-Known Member

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    But I wouldn't do that as that's against my philosophy, that would be a lie....? They do read online though, no TV!
     
  10. Lacrim

    Lacrim Well-Known Member

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    Running an investment/property portfolio IS a business.
     
  11. MWI

    MWI Well-Known Member

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    True, I suppose they can use that...but some keep such things very private, don't share like we do.;)
     
  12. Snowball

    Snowball Well-Known Member

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    At some point each of us has to move past the point of worrying what people might say if we tell them something they’re uncomfortable with (like we’re financially independent or don’t work etc). If they’re the ones that have an issue with it, why are we moulding ourselves to fit around that.
     
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  13. Snowball

    Snowball Well-Known Member

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    Oh cool, thanks!
     
  14. Snowball

    Snowball Well-Known Member

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    Lol yeah it’s maybe not for everyone. But if net worth is enough then barring catastrophe and spreading it out over a decent timeframe it’s likely to work out just fine.

    Not really that much different from doing it all at once. Net worth is still earning returns over time and you’re still living off the portfolio whether growth or income until eventually it’s all income.
     
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  15. SatayKing

    SatayKing Well-Known Member

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    It's all about ME!
    Plan on the date you will leave this earth then spend like crazy up until then. Problem solved.
     
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  16. sash

    sash Well-Known Member

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    That is correct.....this what happens....98% of the people under estimate the growth over time. This is because 90% of the people out there are financially illiterate.

    I am stunned by how many people who hold decent portfolios and don't understand this. It comes to down to getting educated...and understanding facts from myths.
     
  17. Lacrim

    Lacrim Well-Known Member

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    Just for my reference/planning, at what age are were your kids fully financially independent? Having certainty around that will give me a proxy on when my expenses will ramp down.
     
  18. kierank

    kierank Well-Known Member

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    From memory, one left home around 18 and the other around 20.

    They are now in their 30’s and the good news for us is they have never returned home :D.
     
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  19. SatayKing

    SatayKing Well-Known Member

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    Ah, I get it. You've moved and are now under a witness protection program.
     
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  20. kierank

    kierank Well-Known Member

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    Nah, they are both being cared for at Her Majesty‘s pleasure :eek:.