Your target retirement capital and income

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

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  1. Lacrim

    Lacrim Well-Known Member

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    Is that all via stocks etc ie no property?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Just concentrating on hydroponics.
     
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  3. The Falcon

    The Falcon Well-Known Member

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    Currently 7% allocation to international listed property. No direct property interests other than PPOR. AU and international equities, PE co-investment, bonds and cash. Vast majority of the wealth is from sale of a business. I’m 3/4 of the way to target currently.
     
    Last edited: 25th Jan, 2020
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  4. The Falcon

    The Falcon Well-Known Member

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    Ha. No.
     
  5. Omnidragon

    Omnidragon Well-Known Member

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    If you’re relying on rent, most likely would need around $4m net assets. If you were more savvy and there was a slight active element in your retirement, could probably do it comfortably at $2m.
     
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  6. Lacrim

    Lacrim Well-Known Member

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    Extremely difficult to LOR (resi) net of tax/expenses.
     
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  7. sash

    sash Well-Known Member

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    Realistically 60-80k should be more than enought for most people. I say this based on the following assumptions:

    1. This is net.
    2. You have a paid off home.
    3. You are not travelling business class on all your flights.
    4. You will significant discounts once you hit 60 in most states as a Senior

    In terms of assets...it could be low as a couple of properties, share portfolio, super:

    1. If you plan correctly, you can rely on Super to make the short fall later on if you take more of your income from non-super assets. Ideally you would contribute to super.

    2. If you have 30k in income per annum with low income rebate you could almost pay not tax.

    3. Try to get a decent sized share portfolio of ETFs and LICs (500-800K) on top of say 3-4 properties returning say returning say 800-1000 net after expenses. The property income will be much more lumpy better to have more in a share portfolio.

    4. Continue to contribute to super. Having 200k at say 37k. Would easily give you a $1m in super by the time you are 60 without even contributing. Make sure it is in a Industry Fund in a Balanced Fund (Australian Super/Host Plus). They have a good track record. Preference to an Index Balanced Fund here or ETF/LICs.

    If you have these sort of assets outside of Sydney it will be much easier. Biggest issue with Sydney is housing expenses (mortgages/rents) eat into your CF even with very high salaries.
     
  8. Yadreamin

    Yadreamin Member

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    A very interesting exercise to try and get a good idea of what you need before your wants come into the picture.
    Record all your spending per month. ie fuel, internet,phone, power , gas, water , memberships, insurance, Medical etc
    Do this for 1 year. then after the initial shock of what you have to pay you can then start to add in the wants.
    60 k just does not cut it. Most people must haves/need comes to 60 k and that's being very conservative. No holidays calculated into this figure.
    I have done this for the past couple of years and it is a shock.
    I then have had to re adjust, rethink and push a lot harder to work on the at times wishful end result.
    Cheers
    Yadreamin
     
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  9. PKFFW

    PKFFW Well-Known Member

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    Sorry, I just can't agree with this part.

    The definitions of want and need are seriously out of whack if the total expenditure of needs comes even close to $60k. Even without a paid of PPoR one's actual needs should not come anywhere close to $60k per annum in most cases. (caveat being if one has high medical expense necessities.)
     
  10. SatayKing

    SatayKing Well-Known Member

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    All depends on how greedy I am. Very is the answer.
     
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  11. kierank

    kierank Well-Known Member

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    Ours is $80K for needs plus $50K for wants.

    ... and we don’t consider ourselves as greedy :p.

    In fact, I would say we are quite frugal :eek:.
     
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  12. Nodrog

    Nodrog Well-Known Member

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    That sounds about right:).
     
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  13. Angel

    Angel Well-Known Member

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    Shakes head
     
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  14. ttn

    ttn Well-Known Member

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    That's the difference between wealth-fare and wel-fare ;)
     
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  15. Big A

    Big A Well-Known Member

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    Absolute needs and personal lifestyle needs are 2 different things. A person absolutely needs water and some basic food. A few grand a year should cover needs. Then there is the need to eat well, drink well, entertainment activities and the general delights of life that we now see as needs. Not sure if there is any point talking in terms of what you need because most of the money that people spend I would imagine is not on what would be classified as a Need. Your lifestyle needs is more realistic. So what you currently spend on food and general consumption / entertainment. Yes we can always reduce some of those lifestyle needs but no one is going to reduce to 100% real needs unless they have no other option.
     
  16. Lacrim

    Lacrim Well-Known Member

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    Rock bottom for us, a family of 5 is minimum 60K...in fact its virtually impossible to get down to 70K without noticing.

    So our figure is $80K plus $20K for travel. PPOR costs not included.
     
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  17. Archaon

    Archaon Well-Known Member

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    You wont have 3 dependants in retirement hopefully.
     
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  18. Trainee

    Trainee Well-Known Member

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    depends when you retire, yes?
     
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  19. Jamesaurus

    Jamesaurus Well-Known Member

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    My spreadsheet telling me that goal investment assets in todays prices is:
    $1,916,250.00

    Goal income:
    $76650/yr
    :)
     
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  20. Yadreamin

    Yadreamin Member

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    I should clarify my figures are for a couple. Rarely go out/eat out, make own lunches. don't buy much stuff. Its a shock to work out just how much everyday living does cost.
    I used to say we would easily retire on 60 k . Not any more.
    I think a couple who own there own home and are dept free who would enjoy a holiday each year maybe join a club or 2 and eat mostly at home but go out once a month would need an absolute minimum of 80k per year.

    Lacrim -So our figure is $80K plus $20K for travel. PPOR costs not included.

    I think Lacrim is very close to the mark with this comment. I did include PPOR cost in my figures.
    Cheers
    Yadreamin
     
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