What age do use plan to retire ?

I don't really ever plan to retire. I've geared myself towards a career that will mean that I choose the hours that I work, decent money too. Still in the fledgling student position though. But my career path has a few positives, don't need to be stuck in Sydney or other capital cities to make dollars, plenty of need all over Australia.

I know OP is attempting to chastise people for "working for the government," but I actually feel good about myself contributing positively to the community. I've lived as a drain/burden on others doing my own thing, and I've lived working hard to meet my goals. I know which one I prefer.

 

You're doing it right.

Too many people on here, especially the young ones are focussed on some imaginary passive income figure where they think achieving it will allow them to do whatever they want whenever they want. Life doesn't work like that. Partners and kids come along, desires change, slowly it's no longer just about you but all the people around you and you need to find something sustainable and fulfilling to keep you on track. A holistic approach wins out in the end. Just keep doing what works for you and the money will come.

 

Goal is to stop working for someone else at 55. Thinking of having a "mini" retirement next year for 6 months to a year to see if it suits me.

 

Any LOCs set up? You could possibly retire now and live on rents with you borrowing to pay expenses. Delay the sale of a property as long as possible so you get extra growth.

Alternatively take mini retirements - work say half the year.

 

I always thought hubby and i would retire early (before 55...)

But as it approaches, we now have second thoughts due to:

1) hubby is now at the peak of his career; job satisfaction wise and $ wise...the money is quite hard to give up..i must admit...just a few more years and we would be set up quite nicely...

2) we realise looking around our friends that some people at 60 are still very sharp ...i used to think 50 is so so old!

3) the kids ..the kids..what else can i say? ( i told my children best stop at 2!)...our kids are expensive but it is our choice...

4) amazing how the mindset towards work shifts when you do not need that paycheck

 

@Ace in the Hole has done extremely well with a business which has funded multiple development properties. Its a good story if you piece together all the snippets AITH has shared over the years. Very good operator.

pinkboy

 

My target is $200k Gross Passive in 6-11 years (40-45).
Currently have about $10k gross passive, but just finished a development which would increase that to $20k if I used money to pay down debt, and have just commenced two homes one of which will be sold and other rented. On completion this would look like $30k passive. And by EOFY with my other projects and income I could have this figure too $50k passive.

Once you start with value add projects like H&L packaging and developments it starts to snowball quite quickly.

I won't retire though, just stop working for others and only for myself. If things go well I might do it a lot quicker, but as I have a family relying on me I won't jump too quick and need to be confident I can keep the income flowing if markets slow or turn.

 

Already do TerryW but I want/need the LOCs to be at least twice the current size. Getting loan increases is tough atm. You'd know if you checked my file

Plus I need about 20% more in total gross rent before I feel 'safe' to pull the pin. Its great that I've had a large equity kick c/o Sydney's recent performance but cashflow growth has been dismal for the last 5 years.

 

I hear what you're saying and really i think it's an individual choice with regards to the 'how much is enough'. Some people just love the game and the thrills and want to keep going and others are satisfied to reach a good amount of wealth and then take it a bit easy. I.think strategy also has a lot to do with it. If your a passive B&h investor then it takes quite a while to build up equity so when you have enough it's most tempting to just enjoy the cashflow from them but if your adding value all the time then it can be alot more fun and profitable quicker allowing you to enjoy a good lifestyle along the way too so you don't feel as if you're missing out too much. At the end of the day we're all different.

 

Don't get me wrong, I love the game and always will - wouldn't have got this far if i I didn't, BUT aspiring for more at this point where I'm continually increasing my LVR, and level of debt, puts me in a riskier and possibly irretrievable position if interest rates shoot up quickly and I get caught with my pants down.

Put it this way, if interest rates go up by 3-4% and rents don't go up somewhat to compensate, I won't be in a comfortable net cashflow situation, LOC's aside. I suspect most highly indebted forumites will be in a similar position.

 

Especially if vacancies occur at the same time

 

Why are you targeting a gross income rather than a net income. It's what guy have net that actually matters if you are looking are retiring.

 

By gross I mean pre tax. As everyone's tax is different. I can split amongst family through trust and therefor $90k gross would be same net once kids above 18, whilst for an individual it would be a lot less.

 

I tell people 50.... But it isn't true... I am currently looking to work in my desired industry. I am that weird person who enjoys work. Once I have completed the accumulation phase and paid of a PPOR (so maybe 40ish)...

To me 'retirement' will just be a mix of travelling and working in average paid but very rewarding exotic regional roles.

 

Not weird at all. If your planning a lifestyle where you get to live your dreams plus engage in work you're passionate about and enjoy then that's all that matters.

 

Has the OP retired ?

 

yes it was a forced retirement from the forums

 

Ahh....I wondered if he was just here to cause trouble. Too bad some of our good members wasted time trying to help.

Well he did want to retire early

 

@Ace in the Hole (and others @pinkboy )
How much difference does it make running a business rather being an employee for borrowing and purchasing IP's etc etc?

 

Wow is that net of expenses on property?