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Fast track your retirement funding in less than 7 years

Wednesday 2 May 2018

Wouldn’t it be great to be able to fund an extremely comfortable retirement in less than 7 years!

Depending upon how many years to retirement you cannot be comfortable on capital of less than $2,000,000 and that excludes the family home.

Our dollar buying power depreciates each year, so using the rule of 72, where it is depreciating by 2.5% per annum, 50% is gone in 14 years. And, to add to those sombre facts, we are all living longer, thanks to modern medical science.

So, if you wish for a comfortable retirement for your partner and yourself, plan on creating at least $2,000,000 to retire 20 years from now.

Sadly, only a small percentage of us will have a comfortable retirement if we depend entirely upon our superannuation. It is therefore essential that we seek an alternative to augment superannuation and whatever we have gained through investment or from other sources.

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Source: ausstats.abs.gov.au

Retirement and retirement intentions (ABS)

Many people look forward to retirement as a period to do all of the things for which there was never enough time during their working lives. However, one less positive aspect of retirement is the fact that most people will have less income when they retire.

Twenty five percent of Australian women have no superannuation and those who do have it are way below the level men can expect to receive.

We encounter many people – mostly baby boomers - who left planning for a comfortable retirement rather late. They come to us for advice regarding property investment, but the problem is they only have 10 years of earning power left. We took this on as a challenge and, after many months, have developed a funding model using property to accrue;

  • A property portfolio exceeding $6,000,000
  • Net equity after debt in excess of $1,300,000
  • After tax positive cash flow exceeding $80,000

IN LESS THAN 7 YEARS

Paying a deposit of approximately $85,000 plus purchase costs using cash or equity from another property, and that is all of the cash outlay over 7 years unless or until interest rates exceed 7.25% and then the cash outlay is affordable due to substantial rental income.

Want to learn more? There is a whole lot more to tell, so ask for a free briefing.

Contact Mediwealth Australia

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