negative! I cant live passed today!
Still paying off debts this year, next year we are saving up 20k each via managed fund, and then getting a LOC on the equity of this unit, and buying a new house and renting out this house. The managed fund income will take care of the rental shortfall, LOC interest and margin loan interest. The plan then is to buy a house each year as equity and our continued savings allow.
Hi there,
just had a look at wealthscore, this is a great tool and it's very simple to follow. the only thing was the score, what a wake up call! -440 to think if I stopped now so would my families means of support, not good.
its time to change and follow a winning formula.Thanks
David
Scored 2057,….. 5.6 years on a wage 50% higher than I am paying myself now.
Not to shabby since I only started working full time 7 years ago at 18,
Stick to the simple rule of "spend less than you earn",… and invest in income producing and growth assets and you will do fine.This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.
conrosco28232 wrote:This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.if you don't spend all of your income then write if the salary bracket just the amount you need to maintain your life style,
as for the other problem, were alot of your assets held as personal assets suchas car furniture etc. maybe the program classes their value differently.
Hmmmm … scored 734, this would give us enough income to survive on current combined income for 2 years. I imagine the score will improve greatly over the next couple of years as we have added another 4 IP's to our portfolio since April this year and in 2-3 years we should see some good capital growth in the areas invested in ……. Well, that's the plan anyway ….
Martin
Mystery wrote:Hmmmm … scored 734, this would give us enough income to survive on current combined income for 2 years. I imagine the score will improve greatly over the next couple of years as we have added another 4 IP's to our portfolio since April this year and in 2-3 years we should see some good capital growth in the areas invested in ……. Well, that's the plan anyway ….Martin
4 since April! Good work!
pos or neg?8246 was my score. I could live till 2035.. WHo knows, with the boom coming I could live till 2070.. I could even afford for bodily reconstruction by then maybe.
conrosco28232 wrote:This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.I just realised what has happend here, the calculation is based on work days so 5days in a week,
so my original calculation is wrong, I can survive for 7.92 years not 5.6 years
Tysonboss1 wrote:conrosco28232 wrote:This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.if you don't spend all of your income then write if the salary bracket just the amount you need to maintain your life style,
as for the other problem, were alot of your assets held as personal assets suchas car furniture etc. maybe the program classes their value differently.
you're right, I can just enter my spending per year instead of my income and that gives a much more accurate assessment of my wealth score. re my last post – actually it was $200130 of investment assets less $36132 of liabilities, meaning a final asset value of $163998. personal assets weren't included. Then divided by $160000 somehow this came out to 266 days, not the 374 that I thought it should. it seems like something isn't working properly.
Marc (L.A. Aussie),
Negative at this stage ….. bought 2 x SE Qld, 1x Adelaide and 1 x NSW (settlement Nov 07). The other IP's in our portfolio are neutral to slightly positive and we own our PPOR outright, so the shortfall for the latest 4 IP's is quite acceptable at this stage.
We are counting on some good gains in the next few years with regular rent reviews to turn them into CF+ … plus we have a sub-dividable corner block on one of our IP's in SE Qld, in which we hope to either develop with an additional house/duplex or sell the land (400m2 after sub-division) and pay down the mortgage on the existing house to make it a CF+ investment.
The first few IP's we paid a cash deposit, but now we tend to borrow 100% using equity that we have built up. Time will tell if this is the right plan …. but we are happy with our spread of properties in our portfolio.
Martin
nice tool
but it is not a true reflection of my situation Ho Hum
Nucopia wrote:
nice tool
but it is not a true reflection of my situation Ho Hum
I think it is a guide more than anything,…. a way to monitor you performance and score your self,..
in what way is it not a reflection of your situation,….
My score was negative to which is unpleasant. I also wondered the same thing as L A Aussie re the rental income. Then I did Steve's exercises in chapter 4 of his latest book and scored "Could Do Better" – an eye opener.
Then listened to the book launch mpeg and the book CD and am now in a blue funk
even though the info was good. You just scared the pants of me Steve as two months ago we purchased a -ve geared IP for eventual capital gain as espoused by John Fitzgerald (and forced savings). And I just found out that 100 units will be be released for rental in the town in a few months! (it was the only town I could convince my husband to buy in as he was really nervous about purchasing any IP). I'd better use your suggestion about the reward movies tickets Steve.The above have certainly made me realise that I need to put the thinking cap on and find some solutions to improve things. One option would be to turn our PPOR into an IP. We'd probably have to rent for a similar per week amount as that of the weekly mortgage repayment. The tax break would amount to about $51 per week – not that great but… $50 is $50. IF we could find a house that was cheaper rent the saving would be greater. And if the rent on our PPOR was greater than the mortgage repayment that would also improve the bottom line further. And our income statement would be more impressive. The goal was $750,000 – $1,000,000worth of income producing assets in 10 years. IS it achievable?
For new investors there is a lot of conflicting information available and knowing which is the best strategy to follow is confusing. Capital gain? Cash flow positive? LOC? Live of equity down the track? Positive geared but little capital growth? To renovate or not to renovate. Buy in areas you know/don't know, risk level etc… Even the best loan structure is up for debate.
Tysonboss1 wrote:Scored 2057,….. 5.6 years on a wage 50% higher than I am paying myself now.
Not to shabby since I only started working full time 7 years ago at 18,Way to go Tysonboss1!
Hi TysonBoss1
if I put my income , which is what every one puts if they work to earn a living. I scored 1775
I don't work so I put down my annual living expenses…scored 9999+
I receive a TPI pension and Service pension. index to rise with the CPI and average wages..I will receive them both till 6 weeks after death along with fee medical optical dental travel and other benefits for my wife and children ..carers payment education and other allowances…
The tool is based on a an assumption that if i had to sell all my assets I would have x amount of funds to live on for x amount of years. If you have no income ….
Its a good tool i agree and an indication of how things are and how things could be for most investors.
For me its not relevant as I have no way of inputting things to give an accurate score
its ok I'm just having a sook … been a bad day for me that's all
Not too sure about this tool…….my score was about 8000, and this equated to us running out of money in 2029. If our asetts were sold down, the interest earn't from the net equity invested at bank rates would considerably exceed the $80k nominated as living allowance requirements. (We don't find the need to spend anything like $80k now nor do we expect to for some time yet if ever, but we thought we should allow for the possibility for the sake of the exercise.) Of course we would not be likely to sell the asetts anytime soon as the net operating revenues (which continue to grow annually) currently exceed the $80k by 5 or 6 times. Even if the net equity were realised and just applied to annual living, since it would be ex capital funds no income tax would result so I should have used perhaps $60k, and by my calcs,(notwithstanding inflation) we could maintain that lifestyle for 35 years, not 22.
To be sure I was quite surprised to see such low scores from so many forumites so far. The wealthy ones must be holding back. To those who are battling to get ahead in the 9 to 5 jobs in the towns and cities: consider dairy farming! It is truly a wonderful career, providing enormous scope to test your mental and physical prowess, raise a family, travel the world and enjoy a host of recreational activities partially tax deducted, become involved in smaller communities for a most rewarding sense of belonging…really anything goes with Dairying. If you like computing, maths, genetics & genealogy, physical exercise, animals, (cows and calves are magnificent animals) agronomy, (growing plants….pastures and crops are plants), working with modern machinery and sophisticated equipment, like a healthy lifestyle, like to be able to attend the kids sports days at school etc, but especially like wealth accumulation…………..then find out something about it and give it some thought. Despite the media reports, those with a bit of go in this industry can start with nothing but a dream, and without family help (which admittedly most do get…..but which we certainly did not) can essentially achieve being the Boss in as little as three years, and be financially free in 20 to 25 years. (And I should emphasise the cost of living comparatively well on a farm is probably much less than half what it is in the cities……I reckon it's better in my pocket than someone else's.) To those of you who cannot imagine such a radical change or who doubt this thread, all the best anyway.Wilrose
(can't get that jolly emoticom out of my text!)
Hi there,
I think this is a great tool!
I got 862 one time and then thought more carefully about hte figures and got about 560 – bu teither way it help wto give you guage of where you are – and what you need to get to where you want to be !!
Thanks Steve
Well I can live until 2032 so I am a little bit amazed. I suppose when money is tied up in property it doesnt feel like real money that you could use. Its made me wonder a bit – like how great it would be to sell everything and just live off it!
even though the info was good. You just scared the pants of me Steve as two months ago we purchased a -ve geared IP for eventual capital gain as espoused by John Fitzgerald (and forced savings). And I just found out that 100 units will be be released for rental in the town in a few months! 
(it was the only town I could convince my husband to buy in as he was really nervous about purchasing any IP). I'd better use your suggestion about the reward movies tickets Steve.
o those who are battling to get ahead in the 9 to 5 jobs in the towns and cities: consider dairy farming! It is truly a wonderful career, providing enormous scope to test your mental and physical prowess, raise a family, travel the world and enjoy a host of recreational activities partially tax deducted, become involved in smaller communities for a most rewarding sense of belonging…really anything goes with Dairying. If you like computing, maths, genetics & genealogy, physical exercise, animals, (cows and calves are magnificent animals) agronomy, (growing plants….pastures and crops are plants), working with modern machinery and sophisticated equipment, like a healthy lifestyle, like to be able to attend the kids sports days at school etc, but especially like wealth accumulation…………..then find out something about it and give it some thought. Despite the media reports, those with a bit of go in this industry can start with nothing but a dream, and without family help (which admittedly most do get…..but which we certainly did not) can essentially achieve being the Boss in as little as three years, and be financially free in 20 to 25 years. (And I should emphasise the cost of living comparatively well on a farm is probably much less than half what it is in the cities……I reckon it's better in my pocket than someone else's.) To those of you who cannot imagine such a radical change or who doubt this thread, all the best anyway.
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