Ep. 238 – Case Study #8 – Do We Buy a Home Now & Convert Into an Investment? Can We Retire at 50 & How Many Properties Will We Need?
Ep. 238 – Case Study #8 – Do We Buy a Home Now & Convert Into an Investment? Can We Retire at 50 & How Many Properties Will We Need?
>
Highlight segments:
0.00 – Dave, Cate and Mike wish our listeners a happy new year!
2.50 – Mike introduces the case study: James and Lisa
7.20 – Cate chats about the scenario, and how it compares to some of the other client goals she discusses with clients
10.23 – Dave steps our listeners through the decision matrix associated with timing the next purchase, buffers, and their ultimate property plan
21.40 – A teaser from next week’s episode: Ben asks about PPOR offset versus investment offset. How can he better control his cashflow?
31.28 – Cate shines a spotlight on the positive changes that often strike in life that can amplify wealth and investing success in a typical work life timeline
44.14. – And our gold nuggets!
Happy New Year to our listeners!
Mike introduces James and Lisa’s case study. They are both 36 and have a goal of attaining $80,000 of passive income per year into retirement, and scaling back work to 50% by the age of 50 remains an ideal. Their annual combined incomes are $144,000 and they have $90,000 in savings. Can it be done? And what do they need to compromise on to reach their goal?
Cate ponders their plans and discusses the cost disparity between life in the major capitals versus the regions. She also touches on ‘overshooting the runway’; a common pleasant surprise for those who make firm plans early in life.
Dave explains how he and his team would typically tackle the determination of subsequent property purchases, timing, budget and buffers. How did James and Lisa’s property plan compare to other plans? Tune in to find out what scenario Dave’s team recommended to this duo.
Do they purchase an investment first? Do they move to their ideal future home location? How many properties do they ultimately need? The alternative options for James and Lisa are an interesting surprise!
Mike and Cate tackle the investment-future use conundrum; a common investor challenge that the Trio see often. And Dave makes a valid point about the differential in post-retirement outcomes when sensible financial decisions are made at the start of an investor’s journey. It’s little wonder that compound interest is considered the eighth wonder of the world.
….And our gold suggests!
Cate Bakos’s gold nugget – Retirement is not what it used to be. We don’t just stop. We have much longer retirements these days and we do have to think about how we wish to enjoy our segments of retirement, well before the ‘golden years’.
Dave Johnston’s gold nugget – When modelling out a property plan, setting pathways and determining if a goal is achievable is critical. Decision-making often has to face adjustment as life changes.
And if you have enjoyed this episode, we recommend you listen to these eps:
Ep. 5 – The lifestyle vs investment conundrum
Ep. 22 – Why the family home is often the biggest piece of the investment puzzle
Ep. 27 – How many properties do eyou need to retire wealthy?