Welcome to Finance and Fury, The Say What Wednesday edition
Today is a special episode – we have another resource available on our Resources Page… the Monthly Investment Targets Calculator
Question from Nick “I’m sure as a Financial Adviser you are quite aware of the Financially Independent Retire Early concept, but I want to ask this question as it may be applicable to a lot of younger listeners. I wonder how achievable is a FIRE lifestyle? And what other investments exist for long term growth with high yields?”
We will go through both parts:
- Investments to use
- Working out how much you will need
- FIRE: Financial Independence Retire Early
- I believe that it is achievable – but how committed is the individual?
- You probably won’t have access to Superannuation so there is a 2 prong strategy
- You’d need to accumulate funds personally
Types of Investments:
- The way I would do it
- ETFS, Managed Funds, and LICS
- Steer clear of Large Cap active managers
- What to do with property?
- What is the problem with property?
- Low transaction costs
- Why investing beats savings with the FIRE strategy?
- Getting income from your investments
- I tend to aim for investments that pay around 5% income yields and have high growth potential
- I have built a calculator in excel
- It is similar to Goals Workbook
- How much monthly investments you will need to make to generate the passive income
How to use it?
- Enter in the passive income level you are after (in today’s dollars)
- The number of years you have to achieve this by
- The current level of investments you have (excluding super as that won’t be accessible by 60) and
- The income yield
- Total returns you are after
- Gives a rough idea about the amount needed to invest every month
- What is important to you?
- What do you need to cut spending on?
- You must use the calculator reasonably
- Enjoy your life with great experiences
- If you are subscribed, you will get it emailed to you
- If you not, visit the resource page linked here
- Work out the investments you will choose
- How much will you need to cut on spending to make this strategy work?
Thank you for listening today, if you want to get in touch you can do so here.