Your target retirement capital and income

Discussion in 'Financial Independence, Retire Early (FIRE)' started by Realist35, 8th Jan, 2020.

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  1. SatayKing

    SatayKing Well-Known Member

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    Too many variables.

    What the situation is for one household will be different to the next. Known of former public servants in receipt of I'd reckon a six figure guaranteed income for life whinging it isn't sufficient and others with an income not even half that who are as happy as can be.

    I prefer to associate with the latter group as they apparently don't care what your income level is. And it doesn't in my opinion.

    My social circle is small as a consequence.:)
     
  2. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Know of circumstances like these too. Had some one made redundant from a public job in their mid 50s but will be on $150K p.a. rest of life. The job itself was cruisy in the first place. Some people get lucky. That said, the person was still angry and bitter about the whole thing
     
  3. RogTheBear

    RogTheBear Well-Known Member

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    Look up the APRA comfortable retirement numbers, dig into the detailed breakdown and see how much you're actually allowed to spend on what, gasp, and then double the amount and keep saving.

    It very much depends upon your lifestyle, but I've done (for work, and personally) a lot of digging into this topic, and there's no way, even with my partner and my relatively restrained lifestyle, that we'd be comfy with "comfortable".

    But I have no lived experience of retirement, being that I'm still working. Perhaps it'll be cheaper than I expect, in which case, more travel, better wine etc. but I'm not counting on it.
     
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  4. Islay

    Islay Well-Known Member

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    our experience is we spend about the same @RogTheBear. Rates, electricity etc still the same. We still have 2 cars, although we could get away with one if we wanted to. We live regionally so limited public transport. Still pay private health insurance etc. We spend more on other things eg grandchildren. Some expenses have just shifted from work to family I guess
     
  5. George Smiley

    George Smiley Well-Known Member

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    'The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts' -Marcus Aurelias
     
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  6. JLui

    JLui Active Member

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    It's great you're driven by wanting to give your kids a good life. Does it also include educating your kids in financial literacy so if/ when they take over the investments, they understand the responsibilities and fortune of being in that position and why it was started in first place otherwise they could just end up spending it all?
     
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  7. euro73

    euro73 Well-Known Member Business Member

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    An all too common outcome for all too many people, sadly. Sadder still when you consider that it's so simple to get there in @20 years if you follow a simple principle of cash flow and debt reduction - yet hardly anyone does/will/can be convinced to do so. They continue to prefer to speculate for growth... believing it will bring financial salvation..... and instead they almost certainly end up with negative cash flow portfolio's for years and years and years, and more often than not are also unable to get rid of the PPOR debt quickly, and in the overwhelming majority of cases they retire asset rich but cash flow poor .

    People on this forum are supposed to educated far more than average punters, and still they pursue strategies that have demonstrably failed to deliver adequate retirement outcomes for decades to the overwhelming majority. And its not like we are talking 60 - 70% failure rates versus 30 - 40% success rates... which would at least explain why people continue believing in those strategies.... we are talking about overwhelmingly poor rates of success... closer to 97 or 98% failure versus only 2 or 3% who make it.... and by make it I mean debt free with a minimum 100K net income .... which makes it really really logic defying that strategies with an extremely high probability of delivering 6 figure outcomes within 20 years are largely ignored.....
     
    Last edited: 19th Jan, 2020
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  8. euro73

    euro73 Well-Known Member Business Member

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    My idea of a wonderful retirement is more along the lines of sitting in a 150-200K Merc ( or other ) I own outright, reversing it out of the garage of Multi Million Dollar PPOR I own outright, on the way to the airport with my wife to travel business or first to nice places, to see nice things, eat nice things etc.... at least 2-3 times a year .... and to do it without eating into capital that will be passed down to our daughter ..... I think 250-300K NET per annum is probably about what is needed for that sort of outcome.
     
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  9. euro73

    euro73 Well-Known Member Business Member

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    That would be a really great outcome ... enough to travel quite a bit and really take advantage of all that extra time in retirement
     
    Last edited: 19th Jan, 2020
  10. ellejay

    ellejay Well-Known Member

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    We've done things like this to speed up retirement:. current ppor purchased 4 years ago for $399k. We've split the roughly 900sqm block and built a 2 bed house on 350sqm. Budgeted well to pay for the build with cash. The existing house is now on the market (subject to title) o/o $579k. We'll move into the new one (cost $230k to build excluding services etc and has been appraised at just under $500k likely sale price).

    The existing house cost me about $3500pa to hold after all costs but most I bought were CF+ so I was able to buy and hold multiple. These are nowhere near any capital city. Funds from the sale of the existing house will go into another reno and subdivision as well as paying down debt.

    IMG20200114144114.jpg IMG20200115120400.jpg IMG20200115120448.jpg I think the simple buy and hold strategy is a very slow road to wealth, unless you are able to hold multiple properties through a boom and/or you do something less passive with your properties.
     
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  11. shorty

    shorty Well-Known Member

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    If you earn enough that you should pay $1m in tax, then you can afford the accountants that mean you will never pay $1m in tax
     
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  12. kierank

    kierank Well-Known Member

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    If you aim high enough, I believe one can pay $1M+ in tax, even after consulting the best accountants/tax advisers in the world.

    That is my aim anyhow.
     
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  13. Tommy Batch

    Tommy Batch Well-Known Member

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    That dog's everywhere...luv it:)
     
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  14. VanillaSlice

    VanillaSlice Well-Known Member

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    That looks lovely! Where abouts is this place if you don't mind sharing ?
     
  15. Big A

    Big A Well-Known Member

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    My kids are still fairly young but I have already started the education process with my eldest son who is 9. Luckily he already has an interest in investing and finances. A few months back he asked me if he can move his money from his dollarmite account and invest it. So we sat down and looked at the different options based on what I invests in. he decided to split his money between international shares in the Magellan global equities fund and the aus index. I hold these funds as part of my portfolio. So I took his money and allocated him the equivalent in shares of those two funds. We set up a spreadsheet to keep records. And he gets on the stocks app on the iPhone and checks how the markets are going regularly. Probably too much actually. Definitely gets that from me, when he gets into something he really gets into it.
     
  16. MTR

    MTR Well-Known Member

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    interesting watching an interview with a famous singer’s wife worth over $230m, she stated his booked up all year as they need to keep up their lifestyle, need the gigs:confused: ok, I think his had 4 wives, got 8 kids??
     
  17. Tofubiscuit

    Tofubiscuit Well-Known Member

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    i have 30 years to get there .

    Life is full if surprises and nothing ever goes to plane. Hopefully.

    TB
     
  18. Big A

    Big A Well-Known Member

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    Life style creep. Can happen regardless of how much money you have or make.
     
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  19. Angel

    Angel Well-Known Member

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    And here I am calculating if we will get a full pension and still be able to keep all of our Mortgaged IPs given the equity only just covers the market value of the PPOR.
     
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  20. Heinz57

    Heinz57 Well-Known Member

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    Everyone is on a different journey. The money is just a small part of it