What's your goal?

@Jasper when I get asked this question, I think about the kind of things I want to be able to do, and the cost it would have. This way I can work out the dollar amount I need - Hence, I work backwards.

I guess it's important to know how much money you actually spend now to know what net income you will need to obtain.

 

When I started investing all those years ago... if someone told me what I would have 15 years later,, I would have thought that is totally 'extreme' and 'impossible'. Our current understanding and knowledge or lack thereof of wealth creation, will largely determine what we can possibly envisage is in the realms of possibility or not. With increased understanding, investment skills and philosophical sharpening comes a greater level of insight as to what is actually possible.

With the right knowledge, skills and mindset, you would most likely achieve your goal or come dam close.


Just my opinion. RRP 2 cents.

 

80k net would be my version of comfortable retirement

125k+net would be my version of great.

livings not cheap and I would not want to run out of money in my older years.
Also in my opinion your spending more if your not busy working and there is no point being frugal in retirement.
I will not be taking it with me and I want to live before I depart!

 

My sentiments exactly!

 

Out of interest, what sort of athlete?

 

I just read all the responses.. For me, I want financial freedom same as almost all of you.

But in an effort to achieve this, I am looking at Property plus investments in other asset classes as well (managed funds, shares) to diversify.. Property is #1 but whats wrong with mixing it up a little bit? Investing is investing.

Without meaning to stray away from the original post. I'm curious if any of you in your efforts to gain financial freedom have invested in other asset classes as well as property and if not why not?


-Frank

 

Thanks.

I think we are getting there. Own 1.5 M in assets with only 500k debt..working part time and can afford to do what we want.

 

Does this exclude PPOR?

 

It includes PPOR so obviously we can't "spend that money ", but we can use it for equity.

And we're not doing EVERYTHING we want, because we're still part time (and clearly I'd rather chill than work on those days). But it's a step in the right direction.

Someone asked about other investments - we set up a share portfolio when prices were low after the GFC. We just reinvest the dividends and hope it keeps growing for the next 30 years til we need it. I really don't know much about shares, so we paid a proper company to do it all. It's done well so far (but it's definitely not as exciting as property ).

Also, I'm willing to sacrifice some things but I'm not willing to be a tight arse or say "no" to things I still want to do. You never know if tomorrow will come, so we still have to now.

 

I agree with you on comfortable retirement.

But, for a great retirement, I would suggest 160k.

That is, great = 2 x comfortable .

 

Personally? $100k would make for a comfortable retirement and $200k+ for a great one.

 

Agreed

 

Your tongue in cheek comments is worth $1B Nett on it's own. Congrats on the little one

 

Sounds about right.
Assuming this is per person, kids could be counted as a half person.

 

Are you saying 3 person family (2 adults and kid) would require 250k for comfortable and 500k for luxurious lifestyle?

 

Sounds about right.
Although luxurious could easily be many multiples of the top end figure, depending on how fancy you want to get.

 

I am feverishly working on becoming PistonBroke ...if it wasn't for another property boom... i was getting close.
Maybe next time.

 

Ok Acey ......you are buying coffee/cake at all meet-ups from now on....ya have too much mullah.....I better add tap dancing to the tin cup routine at Townhall to get to your standards.

 

I need you to mentor me on how to spend money, apart from which car to buy.
A Kia would not work well for me.

 

Buy a Porshe 911 brand new?