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:

  1. Investments to use
  2. Working out how much you will need

 

Start:

  • 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

 

How much to save?

  • 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?

  1. Enter in the passive income level you are after (in today’s dollars)
  2. The number of years you have to achieve this by
  3. The current level of investments you have (excluding super as that won’t be accessible by 60) and
  4. The income yield
  5. 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

 

Summary:

  • 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.

How do you use your superannuation funds to buy a property?

Welcome to Finance and Fury, The Say What Wednesdays Edition – Where each week we answer your questions Today's question comes from Cameron We are a couple, both aged 30 with approx 70k in each of our super accounts. We are interested in SMSFs with a view to...

[Financial] New Year’s Resolutions: how to get ahead in your finances and be in a better position this time next year

Episode 16 [Financial] New Year's Resolutions: how to get ahead in your finances and be in a better position this time next year Welcome to the New Financial year – looking back on the year, are you in a better or worse financial position than you were this time last...

Furious Friday: Market Update

Furious Fridays Market Update Today’s episode is a Market Update and we look at a few of the factors that affect our market. We will discuss why these things matter, and why we are in the state we are in! In this episode we discuss: Consumer confidence – Look at the...

Can politicians use the Future Fund to bail out the economy?

Welcome to Finance and Fury, the Say What Wednesday edition. This week the question comes from Justin. “Hi Louis  - I have been listening to your podcast for the last few months. I love all your work. I was just listening to Mondays episode of your review of the...

Furious Fridays: What happens if the EU collapses?

Furious Friday What happens if the EU collapses? Welcome to Finance & Fury, the Furious Friday edition. For the past few weeks we’ve been talking about the EU and this week we’ll finish up by looking at the flow on effects of the EU breaking up. There’s no way to...

Which Vanguard ETFs are best to diversify into?

Welcome to Finance and Fury, The Say What Wednesday Edition This week the question is from Dan I am 21 and have about 70k in a term deposit and 5k in VHY and VGS ETFs. I am wondering whether over a period of 20~50 years I would be better diversifying into VAE or VGE...

Furious Friday: The centralisation of power and control of the economy

Furious Fridays The centralisation of power and control of the economy Last Friday we looked at the stock market crashes of 1907 and 2008 Difference between them was the crash of 1907 had no intervention by any central bank in the USA – because no central bank...

How to use your own home as part of a wealth accumulation strategy.

Welcome to Finance and Fury. This episode will be about using your own home as part of a wealth accumulation strategy Some strategies that I plan to do First – what is a home – a lifestyle asset – is still technically an asset as it has a value – as long as someone...

Will the Australian economy experience a V-Shaped recovery?

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question from Jacob. “Hi Louis – I have a question about the forecasts of our recovery. I read that the RBA is expecting the economy to have a v shaped recovery and it seems that the share market...

Taking a deeper look at the property price models of the RBA

Welcome to Finance and Fury. This episode we’ll take a deeper look into the RBA property market models and how different inputs affect prices. Potential models that give the ability forecast future growth of the market based around assumptions – from a study by the...

Pin It on Pinterest

Share This