Retire at 60

Discussion in 'Investment Strategy' started by tn8701, 5th Oct, 2016.

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  1. Beano

    Beano Well-Known Member

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    Ten
    Ten percent net is very achievable even today
    With $1.5m equity with no borrowings $150k net income is achievable
    With borrowing a lot more income
    Ps I passed details of 4343 great north road Auckland to several PC and PT ...and yes one purchased it at 10pc cap rate (net)
    On my personal front i have been doing 6.5pc with leverage....but lessors interest only
     
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  2. MTR

    MTR Well-Known Member

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    This is exactly what some SS/PC members had to do....they started living off equity then GFC hit and had to go back to their day jobs

    MTR:)
     
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  3. MTR

    MTR Well-Known Member

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    Great thread:)

    As they say there is more than one way to skin a cat..... and different strokes for different folks

    MTR:)
     
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  4. big max

    big max Well-Known Member

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    My definition of retire is not, "not working" but rather "not needing to work". In my own case I "retired" very young in the sense of not needing to work and being able to live off investment income. But I continue to work as I both enjoy it and because every dollar earned only increases the total amount of spendable income :)
     
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  5. kierank

    kierank Well-Known Member

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    Love that definition @big max.

    Like you, I don't need to work. But I have two part-time jobs and both pay me $0 (zero dollars).

    I really enjoy this work. So much so that I have turned paid work so I can do these two jobs.

    Now that is flexibility.
     
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  6. Joshwaaaa

    Joshwaaaa Well-Known Member

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    im 32 years also and have my goals set on a 50-55yo retirement and I'm way behind OP in terms of ppor being paid off. Think I need to work a bit harder.
     
  7. Chris Au

    Chris Au Well-Known Member

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    I agree with PPoR being paid off, how is progress towards your investing goals going to reach your 50 yo retirement? As long as you don't want to use your PPoR as an ATM for investing (something I'm reminded of frequently - I'm not risking the house to live in the local caravan park to buy the next IP!!), then it becomes part of the overall picture.

    As @MTR mentioned, different strokes for different folks, and when it hits, I'm sure it will all come thick and fast!
     
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  8. MTR

    MTR Well-Known Member

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    Some investors say you slow down as you hit financial freedom, the thing is I am finding I have been ramping it up. If you love what you do you just keep doing it and continue to build wealth, does not mean you don't smell the roses along the way

    MTR:)
     
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  9. Lacrim

    Lacrim Well-Known Member

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    Who exactly? I do recall a couple that were doing this and to my knowledge they still are??
     
  10. Sonamic

    Sonamic Well-Known Member

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    You pay off your PPOR and use growth and income from your IP's to fund more investments until funds are self perpetuating. Once you have enough capital you can either sell down or pay down the loans. Depending upon your timeframe.
     
  11. Air_Bender

    Air_Bender Well-Known Member

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    You and I are in a similar position with similar goals. I'm also in my early 30s, bought my PPOR earlier in the year and have been throwing everything but the kitchen sink at the mortgage.

    I can't tell you just how rewarding it feels watching that balance go down fast whilst also reducing the interest by continually adding into my offset account. (Hint: a second job helps... a LOT).

    I am focused, determined and confident I will achieve my goals. Sure there will be a few hiccups along the way but one way or another....I will get there!

    Next goal is to acquire my first IP in the next 12 to 18 months.

    Giddy Up! :)
     
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  12. big max

    big max Well-Known Member

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    Thanks. Yeah I've always thought about retirement like that. It's a different concept to an old bloke who sits in front of a TV in a pension drinking beer all day ...

    The other big benefit of my kind of "retirement" is it takes a massive stress burden off you with regard to "fear of losing your job". I know many people who are super worried about changes in their jobs and possible redundancy. And many who "put up" with a bad boss or a job they hate as they really feel they have no choice and this really impacts their level of happiness both at work and outside of work.
     
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  13. MTR

    MTR Well-Known Member

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    Rather not mention names on the forum
     
  14. Chris Au

    Chris Au Well-Known Member

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    Certainly understand. I took the approach to pay down the IPs and PPoR at the same time and made a conscious decision to pull everything out of the IPs before looking at the PPoR. It comes down to risk profile and how aggressive you want/need to be. My partner and I made a decision to not risk more than 55-60% of the PPoR in IPs/investing. We have been able to recycle the IP funds for the portfolio to become self perpetuating (as you mention)
     
    Sonamic likes this.

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