Sackie is selling AGAIN!

I completely agree! I'm not that close to that point in time yet, but I don't see the purpose in have an eight or nine figure sum in your bank account, it certainly wouldn't increase my enjoyment in life.
I want enough money to be able to do whatever my wife and I want, but luckily our wants are pretty reasonable. Perhaps a little bit more money to help others when required, but that's it. Whether my bank balance was $5m, $50m or $500m, it wouldn't make me any happier (though $5m would be nice...).

You've only got one life, so definitely make sure that you use some of it to enjoy it and not just for the pursuit of money.

 

Back to OP:

Some selling details: This house will be hitting the market in about 2 weeks.

Agent fee: 2.2% inc gst
Marketing fees: $4400
Staging: $4,200 for 6 weeks
Auction fee: $550

 

You taking on students?

 

What kind of boats do you guys have?

 

When you reach there (5m), you would want more

Plateau here and there, but humans will always strive for more, sooner or later.

 

Might I have a very small desire for more? Probably. Will it be enough for me to spend precious hours pursuing more money? I doubt it. Maybe something that's a maximum of 10 hours a week or so, but no more than that.

 

I just recalled many years ago meeting a CEO of a big company that was earning over 300k yr + bonuses.
I asked him "What exactly does a CEO of a big corp do? What's your day like?"
He replied by asking me what I did as a small business owner. I said pretty much everything. Sales, admin, accounts, cleaning and fixing whateva drama pops up.
We then spoke about strategy and responibilities.
He finally said "Well you do a lot more work than I do. Like you I'm charge of strategy and making decisions, but I do none of the rest. Most of it is never even part of the discussions. My job is political. I meet and talk to people and focus on the big picture. Even the decision making is mainly delegated to the managers who bring me solutions to problems. I get to choose one or a mix. If all goes well they take the credit. If it turns to **** I get the blame. So just as you, I have the responsibility as the last person where the buck stops."

 

You guys want simple, family time and all that jazz? I'll give you simple:

• $2 to $3mill (or $4 if you love splurging) in ETFs and LICs
• $400K to $1m cash buffer
• unencumbered PPOR

That's it.

 

100%!
Your fortunes and your reputation is largely tied to the performance of the share price though! That largely becomes the single largest denominator of if you get roasted in share forums and press or feted across the insto roadshows. But the buck does stop with you then!

I was the sole-founder and exec chair of my public ventures but then sold down and decided had enough of running them and have never felt better! It was a lot of fun being at the helm but I am enjoying life a lot more now. That dream of running public co is out of the system now but likely I might get at the helm again as its getting a bit boring and the itch is growing.

Back to you @Sackie and your adventures! Look forward to reading about how the sale turns out.

 

You would think right? But let’s work of the $4 mill with a 4% withdraw. That’s $160k p.a. Now let’s take out some tax as depending on how you hold the investment the franking credits might not cover it.
Then say you have a kid or 2 who go to private school plus all the other kids activities that go along with that.
Then let’s imagine some one with $4m of assets would want a nice trip or two away each year.
Let’s also assume that someone with $4m would want to have a set of nice European cars for him and her. Which also require updating every few years.

$160k gross passive income doesn’t look so much anymore. I’m closer to needing x2 that amount.

 

Each to their own, we could live on $160k extremely comfortably!
Note that there are a few council rates from IPs in "Home", LL insurance is in "Insurance" and obviously the entire "Mortgage" category would be zero, based on @Lacrim's assumptions.

 

What’s that table of what?

 

Looks like you could. But do you have $4m in investments, PPOR paid off and $400k-$1m in cash? Not trying to be condescending but I believe someone who has managed to accumulate those numbers would probably have a lifestyle that results in higher spending figures.
I bet no one is travelling much now but normally I would imagine a travel budget of $10k-$20k a year for someone in that position. Auto budget would be higher to allow for regular update of cars.
Again someone with that sort of wealth would possibly have kids in private school. So kids budget would need to be much higher.

Not saying that the average person can’t live more than comfortably on $160k. But some one with $4m portfolio plus the rest you listed is not the average person and would not have an average spend.

 

While no, I haven't achieved those figures yet (and I assume you mean $4m NET investments), I don't think my expenses would grow astronomically.
I'm ideologically opposed to both private schools and any form of status symbols (includes flashy cars).
And while there are some things that I would spend more money on if I could, such as international business class flights, as I'm 198cm tall (note lack of travel expenses that year due to covid), it wouldn't increase all that much.

 

215k for mortgage and loan?
Are you highly leverage?

 

50% LVR (including PPOR) I think there might be some double-counting from one loan, where it first counts the transfer from one bank to the other and then the payment of the loan. The actual figure would be somewhere between $150k and $160k.
I couldn't figure out how to hide it without losing some other functionality, so I just left it.

Back to @Sackie. So $10k plus commission, sounds like a lot of money at first, but if it sells for a reasonable amount, it's money well spent!

 

That's a lot to aim for. Hopefully you won't be 80 by the time you deem you have enough to live it up.

 

Realestate.com.au charge more for different suburbs...my one happens to cost a lot more...

Styling fee is worth it considering the type of property I'm selling and the hot market we're in. All in all those fees are pretty standard for similar I reckon.

 

I have been fortunate enough through business to have made good money for many years that I am already there. But strangely enough I don’t necessarily feel like I would have expected it to feel. Like I have made it and I don’t need anymore or not worry about not having enough or wanting to accumulate more. Maybe that’s part of my doomsday mindset when it comes to money and always planning for the worse.

To counter this mindset I have focused on continuing to accumulate more. Not that it’s a bad thing. What’s the other option? Spend more in order to avoid further accumulation? It is important to also live it up to some degree along the way, which I feel I do. My strategy is to maintain a lifestyle that is the equivalent of 50% of passive income after taxes. The other 50% must continue to be invested. That way the income continues to grow allowing our spending to continue to grow.

Sorry for taking this thread of track. Back to you sackie.

 

So no nice expensive red wine (like Penfolds grange) for you?
This discussion is obviously very personal, to some X amount will suffice to others Z and so on.
But in general I agree the more one makes the better lifestyle one wants, I think they also call it a bracket creep? My migrant parents could not afford private schools for us but we could for our kids, UNI fees etc.... Hence it's irrelevant what one will spend on as we all want to be significant and important in this lifetime so as long as we fill we spend on what we like and what fulfills our desired it doesn't matter to me. Even if someone is burning money for fire it should not matter if they are self sufficient not dependent on government or any support.
But anyway did @Sackie sell next deal for a great outcome. Sometimes the challenge is more fulfilling in achieving rather than the monetary outcome....I think.