All Topics / Help Needed! / Retirement living plans ?

Viewing 20 posts - 1 through 20 (of 23 total)
  • Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi All,

    I have started thinking about retirement and what plans to make on where and how to live the most comfortably and economically.

    I started with a conversation this week with a work colleague who's wife is 55 which made them eligible to move into a retirement village, he is only 50 but as they were able, they have just bought and moved into a brand new 3 bed, double garage house in Breezes lifestyle village (RSL) in Mackay.

    They have bought the house for mid 400's and have $130 a month to pay to cover rates and maintenance, they do not have to do any mowing or maintenance, and the house can be sold again for market value if they decide to leave.

    It's only 10 years until my wife and I would be eligible to do the same thing, does anyone have any bad stories about retirement villages or better plans on retirement living ?

    What are your plans  ?

     

       

    Profile photo of CattleyaCattleya
    Participant
    @cattleya
    Join Date: 2008
    Post Count: 121

    Hello

    I have been thinking about this as well. It's never too early to start preparing.

    I bought a house near a busy road where restaurants and supermarkets are. Retirement plan is to convert the house into a (Gloria Jeans??) cafe and sell bits and pieces on the side too.  The bits and pieces would be mementos I bought during travel or ethnic souvenirs, ethnic clothings, arts, curios etc. This is so I can travel and buy things for business. And obviously these will be tax deductible.

    Be interested to know your plans as well.

    Thanks,
    Catts

    Cattleya

    Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.

    Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi Catts,

    I actually didn't have any plans until the conversation the other week, It has always seemed so far away to think about it in much detail.

    But now it has been brought to my attention, I realise maybe I should be thinking ahead, and contemplate how I can best look after my wife and I in the long term.

    We have a couple of IP's which we have intended to finance us in retirement, but I now want to look at how to live in retirement with the most comfort and minimal costs.
     
    The retirement village lifestyle sounds ideal, but I'm still doing a bit of research. They seem to have a 55yr lease agreement, not sure what happens to the house after we pass, I guess it gets sold back to the village and the proceeds go to your estate.

    I suppose what needs to be quantified is which is the more cost efficient:

    PPOR with rates and maintenance 
    Retirement village with no rates or maintenance but an ongoing "body corp".

    Old Dubs

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I plan to spend every last cent and then get the pension at age 67.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Shiny_Suit_ManShiny_Suit_Man
    Participant
    @shiny_suit_man
    Join Date: 2012
    Post Count: 54

    I am 24 and planning for retirement already i don’t think you can ever start too early…. Planning on retiring at 40-45 though. And not living cheap, im hoping to have enough investments to have about 100k coming in every year, so me and the wife and the kids can enjoy our “Golden Years”. I work long hours and spend 220+ days away from home every year so I’m not doing that so i can have toys and stuff now, i’m going to make it work for me. So i can enjoy the later years of life.

    I’m also planning on the fact that we Australia will no longer be able to supply a Pension to the Retired when i get there so i know i sound extremely selfish, pig headed and even like a bit of a douche. But these are my goals, Aim high, then if i succeed i can be extremely proud of myself, and if i don’t then i can still be proud of what i managed to achieve. I would maybe even like to purchase a pub somewhere and run that for a while after retiring because i would like the challenge and my mrs loves hospitality. But who knows that is further down the track, for now i have to focus on minimising my debt so i can really expand my portfolio in the next couple of years.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    We are currently downsizing our home with a view to building a new smaller property in the neighbourhood.

    New place will be designed so that it could become a B n B in the future and at the same time cater for the kids and their families visiting from time to time. New place is immediately adjacent to my folks so they will be able to remain in their home for a longer period of time.

    Have got the boat and camper trailer already parked in the garage and currently using them for pre-retirement practice.

    We have super resources which are soon accessible, a property and share portfolio working away.

    Started in a new business 18 months ago and are now ramping that up. 

    At this stage working towards doing small scale developments on a personal level in 'retirement' to provide ongoing cashflow and/or capital.

    PS me 53 this year and wife 51.

    Things are coming together quite nicely at the moment.

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544
    Profile photo of kum yin laukum yin lau
    Member
    @kum-yin-lau
    Join Date: 2006
    Post Count: 342

    Hi, one relative who retired on independent resources bought a 3BR house in a stylish retirement village. The first 2 years were good & then management costs kept increasing, shares kept dropping.

    Their wealth dwindled and they decided to sell out. The buyers were scarce. In the end, they took a big loss and got out. Bought a 2 BR new house in a hills area and were happy to take the pension.

    In the 80s, they were wealthy, their children went to private school & etc but in the 21st century, they've become pensioners.

    Still good, their new house has increased in value significantly, but unfortunately, a long way below what they once were.

    KY

    Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi All,

    Good posts,

    Terryw: What are you going to spend it all on  ?

    Shiny_Suit_Man: mate, with your attitude, I think you are going to have an awesome retirement  !

    Derek: I hope I get to be as well set up as you are when I'm your age  !   ( I'm envious ) 

    Also the links are good, I think I might be one of those that works beyond 55, I don't think I would have $850,000 in my super by then, but I do play the lotto. ( I didn't win the 70 million by the way )
    The reverse mortgage is also something new to me, but I guess it's a good idea for those who would need the available money. 

    KY: Thank you for your storey, this is the kind of thing I would like to prevent happening to us. Once we retire, it would be very difficult to come back from any losses, and with only a pension to fall back on and work prospects being limited it would not be an enviable position.

    I think retirement might be harder to organise than buying properties.

    More research for me this weekend  ! 

    Sleepy Dubs

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Dub,

    Not only are there the financial consideration there are also the emotional considerations.

    A 'lot' of our lives revolve around work including hours per day and our social circles. To a large extent the daily patter of our lives is semi-organised for us by virtue we work 8 hours per day. Take away the 8 hours per day and a gaping hole is left behind.

    People often say I'll go 'fishing', 'play golf'  etc but the reality is that there are only so many games of golf one can play or fish one can catch before the novelty of never having to work again wears off. That is why so many people include some volunteering and/or part-time work in their lives – for the social contact.

    A lot has to change when work is finished. That is not to say it is something to be worried about but it is certainly something to plan for. Starting early is always to an individuals advantage.

    I have seen first hand the effect poor planning has on individuals lifestyle – I am currently working very closely with my parents trying to work some strategies to extend their life (and quality thereof) at home. Seems my old man didn't change his spending habits when he finished work and now has to make some serious adjustments to make. 

    Profile photo of Shiny_Suit_ManShiny_Suit_Man
    Participant
    @shiny_suit_man
    Join Date: 2012
    Post Count: 54

    It’s nice to see some people sharing their stories on here so that all of us who are frantically reading and trying to get ahead can see that it is possible to be successful and its not just something you read about in books. Always good to hear other peoples stories to help keep us motivated.

    Profile photo of jamee88jamee88
    Member
    @jamee88
    Join Date: 2012
    Post Count: 10

    Hey friends, i was going through this thread, it so good to see people thinking of retiring and still so ambitiously pondering upon what work to do after they retire:) the opeing of gloria jeans cafe is an interesting idea. would be definitely a success from the point of view that its so popular amongst the youngsters. but i just wonder that starting a new business of your own after retirement, considering your health and age factors, im talking generally for anyone who is considering starting their own business, not just the cafe:) would it be feasible? can you  put in that much time and effort? because being a sole business owner is afterall a huge responsibility:) why not some safe investments that can pay off when you retire so you can finally relax?

    <moderator: delete advertising>

    Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi Derek,

    I agree with you on the emotional thing, it is not uncommon for guys to only live on for a couple of years after retirement.

    The thing is, you actually need to think about what you want to do with 16 hrs a day 7 days a week for the rest of your days.

    We are lucky in one respect, that we now live in the world of technology and the web, we are able to communicate, learn and find huge amounts of information while sitting in that chair in your own home.

    I'm looking forward to being able to hang up my hat and enjoy the company of my good lady and doing what ever we please and whenever, as long as we can afford to. We have a few years ahead of us yet though.

    I hope your parents are not in too bad a shape !

    Gloria jeans yum

    I would drink my Gloria jeans coffee shop dry  ! !

    Profile photo of bandwagonbandwagon
    Participant
    @bandwagon
    Join Date: 2012
    Post Count: 11

    Great thread guys. Interesting reading everyone’s plans & stories on retirement. For me, I reckon it’s all about enjoying & living your life to the full as much as possible now too, while working smarter (thinking IPs!) instead of harder.

    I saw first hand dad working his butt off for many years – saving & saving for his intended retirement at 60 where he & mum planned to travel & enjoy all the things they’d been saving for….. only for dad to reach 57 & the big C arrived out of the blue. Never smoked, wasn’t a big drinker but still, it doesn’t discriminate does it. He was pretty sick for a couple of years & passed away just 6 months short of retirement!

    So our plan/life is all about balance – planning for retirement one day yet not forgetting to live & enjoy life each day while we’re hopefully heading there!

    Profile photo of bandwagonbandwagon
    Participant
    @bandwagon
    Join Date: 2012
    Post Count: 11

    P.S. Totally relate to drinking your own GJ’s dry if you had one Dubstep! My good old Aldi coffee machine gets a great work out as it is… tastes just as good too!!

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    Right now the growth assets have been well and truly purchased and that phase is behind me, like most it would have been good to buy earlier but no regrets on that part. I will probably do a development on one of my properties and am in no rush to do this which might mean I do it in semi retirement. My plan now is to keep maximising my income and savings, super is okay and I have an equity position in the company that I am working for that has a long term tenure pay out condition. Having changed jobs quite frequently and rewardingly in recent years, I hope that this job will now be my swan song with respect to the day job bit and take me up to 55 in 7 years time.

    After that, I do intend to have a life change and get off the career fast track and probably step back at least from that role, maybe continue some presence as an independent director and cherry pick a few part time consultancy assignments and whatever else seems interesting at that time. My houses which have been set up as massively negative geared should be pretty close to cash flow neutral by then and should start providing some cash flow thereafter. Me and Mrs Bardon had a rough plan to head down to northern NSW for the life change, but I can now see this wont happen at 55 as we have just returned to our home in Brisbane and have decided to do the dream home reno on it. Given the kids will be 18-20 when I am 55 I can see that they will still be well and truly at home and probably needing financial assistance with education or life support of sorts. That will tend to keep us in the city a while longer, not that that is a problem as we are both city slickers anyhow, and we enjoy the network and the amenities it has to offer.

    Longer term reverse mortgages are definitely an option as I would prefer to hang on the assets and leave them for the kids after. I guess they will just have to hope that I don’t hang on too long blowing their equity on whatever takes my fancy as the older I get the more I enjoy spending money on enjoyable things. I certainly wont be sacrificing things in my later life just so the kids can blow it after I cark it that’s for sure.

    Profile photo of CattleyaCattleya
    Participant
    @cattleya
    Join Date: 2008
    Post Count: 121

    Thank you All for your interesting comments.

    Am pleasantly surprised that my retirement plan is one of the most detailed one around. I would've thought there would be more detailed ones as well.

    Totally agree with Derek that retirement is not just about 'Fishing and play golf'. So the way I see it, retirement is 2 things:
    1 Can fund the life you want
    2 Can live the life you want

    I plan to fund the life I want through rental income of IPs. I currently have $1650 per week… so I reckon, the equivalent of such income 20 years from now should be enough because rental income is inflation neutral. I also have a little bit of super.  So tick number one.

    Number 2 is about figuring out what life I want. So like Derek, I still want to be busy without the headache of meeting sales targets, expenses, etc, etc. Hence I will set up a company to do the Gloria Jeans Cafe and the curio / ethnic / collectible shop.
     
    –  I have an understanding with a friend who is a very good cook and also looking for retirement activities. She'll do cakes for the Cafe.
    –  Another understanding with a friend who loves sailing, that we may co-own a boat or I could just occasionally rent his boat to go fishing, explore NSW coast lines, etc.
    –  I also like growing orchids. So will also rent out orchids to customers. I got the idea from a book rental I visited in the Blue Mountains, but the details remain to be designed.

    All the above can be incorporated into or done side by side with the Gloria Jeans Cafe.

    So the whole point of Gloria Jeans Cafe is to have an activity. The financial objective of the company is just to make it break even.
    I'll be travelling for the Curio / Collectible shop. I can also do contracting work in any of the banks – maybe 3 months in a year? Can be in Sydney or London depending what I fancy? Will definitely need staff to run the Cafe while I am away.

    The plan is to start retiring as soon as my finances allows, which hopefully is before 55. So should still be physically capable to do all the above.

    But again these are just plans. Good luck to you all…. hope we can all realise our dreams.

    Catts.

    Cattleya

    Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    With respect to running a business in a semi retired type role I have seen this not work out well. Some people that I know ended up buying a job, and then the commitment to run the business was 24/7 and not really what they imagined. The main point is yes set up a business if that is what you want but be careful about buying one. You may simply be buying a job and we all know that you can get them for free.

    Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi Bandwagon,

    Your father's story is very sobering, and I guess none of us know when our times up.



     
    Hi Bardon & Jamee88,

    I agree with opinions about the commitments to business ownership at retirement, It would be to much of a challenge for me personally, but I guess it's up to each individual.

    I would want to keep busy, but at things that I can drop when I feel tired or I don't want to do some days.

    This is where the retirement village lifestyle sounds appealing, no responsibilities to maintenance or yard work etc, but if I wanted to do stuff I could go out and help at the local Hospital or meals on wheels etc, to keep occupied and social.

       
                                                Old Dubs mowing

    Profile photo of kum yin laukum yin lau
    Member
    @kum-yin-lau
    Join Date: 2006
    Post Count: 342

    Hi, retirement IS hard work!
    I used to flippantly say I want to retire at 40. I actually stopped working at 42. Young & attractive still, enjoyed mucking around & found my money ran out very fast. That was when I started buying property.

    Managed to finally 'retire' at 52. Not so young & attractive but still …

    I bought a property & redeveloped it, built 4 houses, bought 2 more dilapidated no one in his right mind would buy houses. Sold one, redeveloped the other.

    Took 3 years, a lot of swear words & not so subtle threats.

    I really enjoyed this phase of my 'retirement' even though there were moments of stress.

    When the developments were finished, I was left with nothing to do so I bought a cafe. BIG MISTAKE. So Gloria Jean, take note & do your due diligence. I was happy to give up $50K. I could make it back much faster if I didn't continue with the cafe.

    Then someone recommended a tutoring job. It was 2 hours a day x 4 and standard pay. It was a very very rewarding experience.

    Now I play mahjong with my 87 year old parents, so that they have some activity to occupy their time.

    I made some cotton tops and my cousin said that they look like designer clothes, she filched 2 of them, then bought a stack of materials for me. I'm happy to make more of them because the sense of satisfaction at designing & completing them is immense.

    Will probably visit India or Russia this year or next.

    Incidentally, my siblings are so relieved that someone's looking after my parents they pay me!

    KY

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