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Retirement would suck, without cashflow. .

Discussion in 'General Property Chat' started by Barny, 7th Dec, 2015.

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  1. Barny

    Barny Well-Known Member

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    I've had almost 10 weeks on holidays which initially was fantastic. Unfortunately I couldn't go away this time as cash was limited as I just had a massive European holiday mid year, and a wedding to pay for. So decided to just chill out, read, train hard, work on my garden veggies, educate myself in other areas and limit spending.
    Since I'm on base wage whilst on holidays and don't earn as much as I do when I'm at work. Which means I can't do the stuff I love most, which is motorsports and traveling, and unfortunately for me it isn't a cheap hobby.
    Made me think, if you don't have the cash you need in retirement your gonna start to loose your mind and get bored very quickly. This holiday was not what I thought it would be.
     
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  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I'd say you're right.

    In some other threads where people state some conservative retirement target passive incomes, they say they won't spend as much in retirement than when they are in the workforce as expenses will be lower.

    However, as you've experienced, it's very easy to spend money, especially if not spending the whole day working in a job.
    Retirement should be where you do everything you couldn't do while you were working because you were too busy...
     
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  3. ellejay

    ellejay Well-Known Member

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    You're going to need a very good cash flow positive portfolio if you think retirement is all about perpetual expensive hobbies. I think some people do opt to work for ten or more years longer so that they can have more of this in retirement. I know what you mean though, there is a balance. Working part time or half of the year may be a better option than retirement, more cash to do stuff and less chance of boredom kicking in. It's nice to do the whole gardening/vegie patch thing for a while though to at least have the option of getting bored with it.
     
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  4. ellejay

    ellejay Well-Known Member

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    I think transitioning to retirement and planning/ setting goals for your time (if you're that way inclined) is a good idea. Yes you could get bored quickly, or you could re-train your brain, slow things down and learn to appreciate what's free in life.
     
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  5. Gingin

    Gingin Well-Known Member

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    Mini retirements are all the rage at the minute. Step out for 6 months of work then come back to it.
     
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  6. Lacrim

    Lacrim Well-Known Member

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    After going on a shedload of expensive holidays taken at different times in the last 2 yrs eg skiing in Japan, 5 weeks in Europe, 3 weeks in USA, almost everywhere in SEA, and even though I LOVE travelling overseas, I've come to the conclusion or realisation that happiness and contentment is drawn from within - it can't really be 'bought' via toys and yes, even luxury holidays.

    For me, an overly ambitious cashflow goal is second in priority to pulling the plug earlier. Time is what I'm after.
     
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  7. Barny

    Barny Well-Known Member

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    It's the experiences I love. The adventure of trying new foods in new cities and new people. Getting out of my comfort zone and seeing places I've never seen before, trying local brews cause you you may never get the chance to do so again.
    The thrill and adrenaline of track racing the clock and your mates, the interaction with friends and family when ever we all get together go to to a track day which is usually the weekend away somewhere with a group of us. Or the preparation of all year where the whole team put all their hard work, sweat and tears for that first place position. It's the feeling of being involved with a project that I love.
    It's a rush like no other for me, nothing comes close.
    I wish I could get that rush from playing a flute.
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    How much do you want/need pa for this lifestyle?

    MTR
     
  9. Barny

    Barny Well-Known Member

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    The more the better
     
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  10. Azazel

    Azazel Well-Known Member

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    I've spent some time on reduced or no income during a mini retirement.
    Spent a lot during months of travelling, but also did it cheaply.
    It depends what you want to do, and how expensive your hobbies are.
    I'd be happy to sit around not spending much on an island for a few months.
     
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  11. Travelbug

    Travelbug Well-Known Member

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    Yes, this is us too. Time matters most.

    We travel a LOT already. A third to a half of our yearly spend is on overseas travel (the advantage of all those school holidays).

    Our down time will be in the motorhome (which is cheap). With overseas holidays and cruises in between. Overseas holidays will be a little cheaper as we can travel in out of peak times now but we will stay longer. It's amazing how cheap last minute cruises are.
     
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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    About 5-10% more than I can spend.
     
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  13. willair

    willair Well-Known Member Premium Member

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    Maybe just set a percentage number in money terms you will receive from your investments plus compounding and bumps in the road to what you think you need to do what ever you want,as far as retirement i talk to people over 55 in national parks where you pay sometimes 6 bucks per night,per person some when they tell their story sold up everything ,bought a motor
    home and just travel within Australia,good stress free life if you can get it..
     
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  14. Barny

    Barny Well-Known Member

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    I'm really liking the idea of these mini retirements. I'm still enjoying my work so I won't be retiring anytime soon, or till I start to dislike my passions then I'll retire sooner.

    But this holiday really did highlight the feeling of not being prepared later in life, once you become accustomed to a living standard you love and enjoy. And not being able to maintain that continued enjoyable lifestyle, without the cashflow will be extremely difficult to cut back on later on.
    Regardless if you live a simple low cost lifestyle or a lavish one.
     
  15. MTR

    MTR Well-Known Member Premium Member

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    you too:)
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    That's why super should be part of any strategy - taxfree income in retirement so your $100k pa is really $130k (and scalable).
     
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  17. hobo

    hobo Well-Known Member

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    Maybe it will kick in once I become (even) older, but the motorhome travel option holds little appeal for me at this point. There are a couple of fishing trips / cruises that we've come across that seem interesting - across the top of Australia, Swears Is etc, but weeks and weeks in a campervan..... kill me now.

    Any "travel" I budget/plan for in retirement is either overseas, or trips to Aus capital cities.

    So yeah, I agree with the thread title!
     
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  18. MattADL

    MattADL Active Member

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    I wish I loved football as much as I loved motorsport, life would be so much cheaper.
     
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  19. Barny

    Barny Well-Known Member

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    It would make conversation a lot easier. When work mates ask if I watched the game on the weekend, I could finally say yes.
     
  20. Travelbug

    Travelbug Well-Known Member

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    yeah hubby nagged for years before i relented. We went to Tassie for a month and I thought i would be ripping my hair out but it was great. So much to see and do.
    Hubby wants to do the big trek around Australia but I said 3-4 months would be a max for me. We'll see how it goes.
    I still have a long list of countries to see even though I've ticked off 50 countries (some I will revisit). So when we (read I) get tired of the van I'll jump on a plane. It's a good mix I think.
     
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