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Strategies to Fast Forward Retirement

Discussion in 'Living Room' started by MTR, 15th Oct, 2016.

  1. MTR

    MTR Well-Known Member Premium Member

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    This has probably been done to death.....

    If you value time over money consider
    reducing expectations/income, instead of aiming for 100k pa can you live on 60k pa ?

    This is exactly what someone on PC did, gave away his corporate management job and settled on around 58k pa in his 40s

    Not doing it tough either, 2 trips per year including o/seas travel.

    Not getting caught up with consumerism lifestyle and living the dream

    MTR
     
    Last edited: 15th Oct, 2016
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Sure... but to be a bit conservative pay the PPOR off first.
     
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  3. MTR

    MTR Well-Known Member Premium Member

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    .... or sell up and look at lifestyle which provides great alternatives, where housing is less more money in your pocket
    You don't need to commute to work, hello seachange
     
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  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    The vendors of our house up and left to retire and moved to the country, they bought a home near Berry.
    The purchase price on that was more than the sale price of the home they sold :eek:
    Sure they'll be fine though.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Reducing expenses is the quickest way to retire.

    Using the 4% rule someone needing:


    $20k pa income will nèed $500k in capital

    $40k pa income will need $1mil in capital.

    That extra $500k will take many more years of hard slog.


    Downsizing is also another method. Sell up in Sydney and move to the country for example-but you will never afford to come back.
     
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  6. Hodor

    Hodor Well-Known Member

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    It is in effect a double play, not only do you reduce the amount of capital you require, you also increase the amount you save each paycheck as you are spending less of it.
     
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  7. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Sell the 2 mill ppor and buy a $500k 1br bolthole in Sydney instead for when you visit... that's $1.5mill of freely investable equity made available....
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    Wonder how much they paid for the house they sold to you
     
  9. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    They didn't quite triple their money in just under 20 years - others in Sydney did much better. Plus I know they spent a bucket load on stuff for the house - new roof installed 3 years ago, new kitchen that's been custom fit for the space incl new oven etc, new skylights (the skylights cost $11k)...
     
    Last edited: 15th Oct, 2016
  10. Indifference

    Indifference Well-Known Member

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    +1....

    PPOR - downsize / own outright (smaller, & not in a capital city)
    Lifestyle - modest to comfortable (spend on experiences & health rather than "stuff")
    ETTR - extended transition to retirement (P/T work to keep current & help pay for unnecessary "stuff".... ie. Extravagant holidays, new cars, big toys etc. )
    Expectation Management - spend time being rather than having... once you start enjoying life, a 40k car is as satisfying as an 80k car, for example.
    Stop comparing to others - this alone will empower you .... go on, I dare you to try it. Most can't do it.

    End result - TIME...... what's an extra year worth? How about 10 or 20 yrs? Now start costing all your "stuff" in TIME. Time traded to buy that "stuff". Now consider my 1st point again with this in mind....
     
  11. MTR

    MTR Well-Known Member Premium Member

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    I am sure there are many asset rich in particular after Sydney boom wonder whether anyone would consider the LOE model? or perhaps part. LOE?

    From time to time I LOE until payday comes in, after selling development etc
     
  12. MTR

    MTR Well-Known Member Premium Member

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    Brilliant post

    I learnt this one along time ago, perhaps this comes with maturity don't know?

    If you don't compete makes for simple but probably more fulfilling life, competition causes insecurities and you won't be a happy Chappy or chappett
     
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  13. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    People wanting to do this just need to read MMM (Mister Money Moustache).
     
  14. ellejay

    ellejay Well-Known Member

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    This is what I'm doing now, so excited! We bought and paid off a house in Mackenzie district NZ 6 yrs ago for $100k. Modest 2 bed weatherboard but back garden has a little gate leading directly onto the golf course. The golf course also runs right along the front and has views of the mountains from the lounge. Lake Tekapo with lovely walks and hot pools is less than 30 mins drive. Ski field 30min. Lovely coastline in the other direction. Queenstown and Wanaka about 3 hrs drive.

    We've joined a pet sitting site to line up some free accomodation whilst exploring nz and probably overseas.

    We're going to spend some time updating ips. I'm also looking at networking with some investors to create more equity.

    Planning on continuing to do 2 short locums in WA each year to cover leave. I'll pay for flight to melb and work will fly me from there. Savings from this will increase our monthly cash flow significantly. Plus I think I'll want to do some kind of work now and again.

    Flights booked for mid Jan. Dogtainers all booked. So excited :)
     
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  15. MTR

    MTR Well-Known Member Premium Member

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    wonderful
    are you a nurse?
     
  16. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Love NZ.... will look you up if we are ever there... Sounds like a gorgeous spot.
     
  17. ellejay

    ellejay Well-Known Member

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    That would be great :) Yes it's gorgeous, it was way undervalued at the time.
     
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  18. ellejay

    ellejay Well-Known Member

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    Similar, allied health.
     
  19. EN710

    EN710 Well-Known Member

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    100k pa is the target, but if I can achieve 60k several year faster, definitely a yes. The more I go for day-to-day job the more I want to get out of it asap. 60kpa is 30k per person for us, which sounds a lot more achievable.

    There are several 'luxuries' we like, so might need to buy them before 'retiring' ;)
     
  20. Lacrim

    Lacrim Well-Known Member

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    Yeah me. Equity rich but cashflow poor/(almost neutral - at record low rates mind you)

    I could sell some down and retire in the immediate future but can't seem to let go of anything as its not in my DNA so feverishly trying to hatch a plan significantly increase rents across my portfolio to a point where I'd be mentally/financially comfortable LOE-ing the rest.
     
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