Who's Made it? - Share your Story for Inspiration!

[Trogdor]

It is so inspirational to read other stories! Hope my story can help somebody too.

I am not there as yet though there is a bit of a progress…

Short History:
-Arrived in Australia in 1994 @ the age of 24 as independent migrant without knowing a single sole here;
-The only possession I had was 1 suitcase, hand luggage and about $10,000 USD;
-Started investing in residential property in 1997 and subsequently in 2000, 2001 & 2003;
-Started investing in shares in 1998/99 got seriously burnt during .com crash, learnt the lesson though;

1/ How much annual net passive income do you need to attain it?
120K net annually

2/ What date or year have you set yourself for achieving it?
2010

3/ How much net passive income do you currently create annually?
Strictly speaking it is -$40 p/w before tax. This is the conscious choice though. This allows me to keep a 2M portfolio of appreciating assets including the PPOR, shares & funds. The LVR on the whole portfolio is about 50%. The current income component of the portfolio is almost pays for the growth component. I conservatively assume 7% as growth for the whole portfolio – 2M * 7% = $140,000 p/a

4/ What property investment strategy/s do you currently utilise now and are you planning on adding any new ones after you attain independence?
Simple, “boring” buy & hold. The same applies to shares and funds where I just try to maintain the efficient portfolio with maximum returns and minimal acceptable risk.

M.

Hi Mikhaila - thanks for sharing your experiences with us! That is indeed very inspirational and motivating... Congratulations on your hard work.

May I ask what % of your 2M is in property vs shares&funds?

I ask as I've reached the situation where soon my funds will = property (on much smaller scale than you!) and what recommendations you would have on moving forward in the next 10 years (I'm 25).

I think now I'm around 40% funds, 60% in 1 IP, total of roughly 700K across both, and of that a total of 60% LVR across all assets.

Looking for the best strategy going forwards, and always looking to learn from others.

Thanks!

 

[Rixter]

Handy Andy , I am so jelous, did you say 10% LVR?????

Karina

Hi Karina,

Whats your story?

 

[Rixter]

Hi Mikhaila - thanks for sharing your experiences with us! That is indeed very inspirational and motivating... Congratulations on your hard work.

May I ask what % of your 2M is in property vs shares&funds?

I ask as I've reached the situation where soon my funds will = property (on much smaller scale than you!) and what recommendations you would have on moving forward in the next 10 years (I'm 25).

I think now I'm around 40% funds, 60% in 1 IP, total of roughly 700K across both, and of that a total of 60% LVR across all assets.

Looking for the best strategy going forwards, and always looking to learn from others.

Thanks!

Hey Trogdor,

Whats your story?

 

[Rixter]

Thanks everybody who has posted their stories so far.

This thread is a very inspirational read...Well done everyone.

 

[Mikhaila]

May I ask what % of your 2M is in property vs shares&funds?

Current situation is 87% property & 13% shares and funds. This is including PPOR.
Current situation is 82.5% property & 17.5% shares and funds. This is excluding PPOR.

I understand the portfolio is overweighed towards property but this is where I felt more comfortable especially in 2000.

what recommendations you would have on moving forward in the next 10 years (I'm 25).

This is difficult to give you a recommendation for at least couple of reasons:

1.I am not qualified financial advisor
2.I don’t know your risk profile, where your hart is in terms of assets etc.

My advise would be go and see good fee for service financial advisor. Or may be just read here to start with http://www.travismorien.com (FAQ Section)

 

[Trogdor]

Just for Rixter, cause he asked so nicely!

I'm this one:

For those of you who have Not made it but are planning & working towards financial independence -

1/ How much annual net passive income do you need to attain it?

I would say about 100K. Probably less as by that stage wont need money to invest, but my travels wont be business funded, as wouldnt be working, so lets say 100.

2/ What date or year have you set yourself for achieving it ?

Gee.. Tough one. Lets say sometime between 2020 and 2025. The reason is, I would like to keep on working til 40 (2020) - 45 (2045), as I am liking some of work challenges/experiences, but past that, Im sure the novelty will (long) wear off! I'm 25 now.

3/ How much net passive income do you currently create annually?

He he... Ummm.. A pitiful Negative 5K or so before Tax return (positive after). This is used to fund an IP in melb and wholesale mgd funds totalling 700K. Total 60% LVR.

4/ What property investment strategy/s do you currently utilise now and are you planning on adding any new ones after you attain independence?

I wouldnt say I have a 'property' strategy but rather an investment strategy.

Say, in 20 years time (when Im 45) I will need about 100K/0.06 = 1.6M free equity. Assume that in todays dollars that would be 1.03^20 times more = 3Mil. The debt should be pretty easy to repay during this time frame (but in reality I would invest more and just hang onto the debt).

I dont plan to include LOE/living of equity as part of the plan.

So now my 700K should (very roughly) go to 1.4 in 10 years, to 2.8 in 20 years. So almost there.

But of course, I will keep on investing along the way - so think I will be on track - to at least meet this if investment returns are below 7% and exceed if more.

THe only thing is I need a PPOR at some stage, so that will take up some of the new spare cash at some point.

Also moving to the UK later this year - to start a new career, so no new investments for about 2 years until I settle in/travel/take a breather. Then i should start hitting it hard.

Plan at this stage is to start buying about 100K p.a. of LPTs when valuations get more reasonable and after I settle in the UK. 5 or so years of this should give me a good +ve and growth which I could use to fund -ve real property of share wholesale mgd funds.

Thoughts/comments/suggestions/improvements/questions?

 

[Trogdor]

Current situation is 87% property & 13% shares and funds. This is including PPOR.
Current situation is 82.5% property & 17.5% shares and funds. This is excluding PPOR.

I understand the portfolio is overweighed towards property but this is where I felt more comfortable especially in 2000.


This is difficult to give you a recommendation for at least couple of reasons:

1.I am not qualified financial advisor
2.I don’t know your risk profile, where your hart is in terms of assets etc.

My advise would be go and see good fee for service financial advisor. Or may be just read here to start with http://www.travismorien.com (FAQ Section)

Hi Mikhaila,

Thanks for the insight/feedback!

Good luck with it all...

 

[Rixter]

* Bump *

 

[thefirstbruce]

Am encumbered legally from responding in full to this

Foresee being unencumbered by 2007.

 

[Trogdor]

Am encumbered legally from responding in full to this

Foresee being unencumbered by 2007.

huh?

 

[Rixter]

Am encumbered legally from responding in full to this

Foresee being unencumbered by 2007.

Whats the matter? Can't work up the courage - cats got your tongue?

 

[thefirstbruce]

huh?

Trogdor,

stop and think beyond your own life experience, for a moment, and remember that this is a public forum. What is said here might be used against a member who is involved in litigation, for one reason or another......that I hope you never become familiar with....

 

[thefirstbruce]

Whats the matter? Can't work up the courage - cats got your tongue?

Only a fool speaks at the prompting of another fool.

How much litigation have you encountered?

 

[Rixter]

Only a fool speaks at the prompting of another fool.

How much litigation have you encountered?

Please Note and beware that the questions contained in this thread may be very confronting and specific to some people. Only reply if you are prepared to share your story by answering the following specific questions......otherwise dont.

Is that like the same fool who posts a reply but doesnt answer the questions under the above condition spelt out in black & white ?

 

[gooram]

Only a fool speaks at the prompting of another fool.

How much litigation have you encountered?

No offense, but if you didn't want to elaborate, then it would have been wiser to not say anything at all.

Surely you would recognise that such an obscure comment as your original post would generate some interest?

 

[Trogdor]

Trogdor,

stop and think beyond your own life experience, for a moment, and remember that this is a public forum. What is said here might be used against a member who is involved in litigation, for one reason or another......that I hope you never become familiar with....

Sorry to hear this. I can appreciate how stressful this is (I've got a LLB and have seen bits and pieces of various dispute in litigation).

Good luck with it all. Hopefully it will be ok.

I was confused, and asked, cause I wasnt sure if it was for this reason, or another, as you could share your scenario, minus of course, the issues/investment/relationship in question.

 

[thefirstbruce]

Sorry to hear this. I can appreciate how stressful this is (I've got a LLB and have seen bits and pieces of various dispute in litigation).

Good luck with it all. Hopefully it will be ok.

I was confused, and asked, cause I wasnt sure if it was for this reason, or another, as you could share your scenario, minus of course, the issues/investment/relationship in question.

Trog, seeing you are the one with the LLB, maybe you can educate naives such as Goo and Rix of the vulnerability of a creditor who may likely be pursued by a liquidator. You might inform them of the powers of the court, to strip a creditor accused of preferential payment, of all his assets; in addition to the fragile defence strategies available to that creditor.

 

[gooram]

Trog, seeing you are the one with the LLB, maybe you can educate naives such as Goo and Rix of the vulnerability of a creditor who may likely be pursued by a liquidator. You might inform them of the powers of the court, to strip a creditor accused of preferential payment, of all his assets; in addition to the fragile defence strategies available to that creditor.

Naives!? Mate all I said was if you didn't want to talk about it, why bring it up at all. Ok we get it, you're under litigation.

You brought it up, then got defensive when asked about it... it didn't make any sense... it's quite obvious now that you in fact DO want to talk about it, which is fine, but it doesn't belong in this thread.

 

[thefirstbruce]

Whats the matter? Can't work up the courage - cats got your tongue?

Rix and Goo, maybe you can refrain from unnecessary and inane comment and response such as above......try and learn something from what I am conveying.........it might save you something important like your house or marriage in the future....

 

[Trogdor]

Trog, seeing you are the one with the LLB, maybe you can educate naives such as Goo and Rix of the vulnerability of a creditor who may likely be pursued by a liquidator. You might inform them of the powers of the court, to strip a creditor accused of preferential payment, of all his assets; in addition to the fragile defence strategies available to that creditor.

Lets all be nice, eh.. Seriously though dude, if you dont wanna talk about it, dont bring it up on an internet forum.

Don't think anybody is naive cause they havent been involved in recovering money from an insolvent company, or had liquidators trying to claw back allegedly improper preferential payments to insecure creditors.

Yes - generally speaking there is a strict order in which debts will be allowed to be recovered from a company in liquidation or a bankrupt.

If you dont have, for instance, a proper interest like a mortgage or charge, or an equitable interest in the property of the bankrupt/co. in liquidation you will rank after these people. As you refer to yourself as a creditor and not a mortgagor or whatever, one can only assume you are unsecured.

If an unsecured creditor has recovered a debt prematurely, from what I understand (could be wrong) a sequestration order (i think this is what its callled??) could be made as the payments to the creditor could be deemed to be preferences and could be recovered by the liquidator (or trustee in bankrupcy for an individual). Whatever is left of this recovered pool (and left over moneys after sale of assets) is used to pay out secured creditors, and any left overs are shared pro rata with unsecured.

I could be very wrong - but from memory thats how this works. Its not my advice but my hazy ramblimgs from somebody with no relevant experience in this area but has read some law text books about this some time ago!

There are very good policy reasons for this - as it promotes an environment where lenders will lend on confidence that their money (as it will be via charge, mortagge or otherwise) will be safer than the rest of the herd.