It is most people’s dream to retire early with lots of cash in their bank.
Unfortunately, the reality can be very different for some, who generally rely on the pension in their later years. This is even more concerning as many hard-working people, couples or families will struggle to make ends meet in retirement even though they have probably earned millions of dollars during their lifetime. There are approximately two million investors/landlords in Australia from a total population of nearly 25 million people and about 70 per cent of investors/landlords own only one property other than their own residence.
How to be financially free in retirement?
The idea of financial wealth and freedom is a desire for most, but it often doesn’t progress passed the idea, as most people do not understand how to grow and achieve a property portfolio to sustain them through retirement.
Everyone has different needs, lifestyles and incomes. However, the one desire everyone has in common, is to be financially independent now (for themselves and their family) and in later years..
Achieving this requires planning, understanding and education. That’s where Kym and Shane and the Team at Acton Victoria Park can help.
A long-term financial planning strategy is different for everyone. However, the goal is to build a portfolio that will eventually pay itself off and provide significant cash-flow in the future.
Contrary to some, you don’t need to own dozens of properties to achieve this. In fact, most investors only need to own $2 million worth of property today (say five affordable $400,000 homes) to retire early or achieve financial freedom over a period of 15 years.
How does it work?
The goal after 15 years is to achieve an annual income of $100,000 from a portfolio that is conservatively growing in value by six per cent per annum. Therefore, in 15 years’ time, the portfolio would be worth $4.793 million, which means a net worth of $2.793 million that is providing four per cent cash flow of about $9,300 per month.
Of course, there are variables that can increase or decrease the income and worth of a property portfolio, but it is important to have a strategy that is built for the long term.
The team at Acton Victoria Park will ensure your assets are managed like our own homes and when it comes time to sell, Kym and Shane will be with you every step of the journey.