advice on retirement planning

Hi all new member here just after some independent feedback on retirement income ideas.

My partner and i are in our early sixties still working and looking at what options we have for the future.

We earn a combined income of around 40-50 k after tax running a small business working pretty much part time hours around 25 hours a week.

we own our own home (just downsized) worth around 675k

Savings around 40k in a higher interest bank account.

We have around 200k super between us in a high return category
(which we will change to a lower risk category down the track)

We have no other interest/income generating assets.

Our ideal is to retire in around 5 years or so living 6 months overseas (Mauritius) where we already own a property and 6 months here in Melbourne.

Mauritius is a lower cost of living where you can live comfortably on around say 300-500 AUD per week

So looking for any ideas of best investment options.

 

how about .. learn and refine research skills first ?

it sounds unhelpful but when risk is compared to the reward ( hoped for )

there isn't a lot of sensible places for seniors like yourselves ( and myself , i am in my early 60's ) to invest cash

fixed interest can be a minefield have a peek at QPON a corporate bond ETF ( i do not hold this , it doesn't quite make a good deal for me) it pays monthly .

shares ... well, if the market continues to rise ( possible but far from certain ) there is surely limited upside before the next correction ( an div. returns are mostly on the thin side ) so waiting might be better or at least dabble with caution .

property .. MAYBE i you are willing to look outside the capital cities into currently stressed areas ( but EXTREME CARE needs to be taken if you need to borrow cash to part fund the deal )

art .. have you a good eye for affordable art and then rent that out to business foyers/waiting rooms not as easy or simple as it sounds because ideally you need to insure against loss or damage .

good luck but please take care ( not too much money used in one place , i suggest )

 

Hi Chris,

Is the business worth anything when you sell? Could it be worth your while investing yourselves into the business for the next 5 years and growing it so that there is a larger saleable asset?
And Twisted Strategies is accurate. The only question mark I would have is around starting on the property investment bandwagon for the first time at retirement.

 

i suggested property on the basis of the couple already having a holiday home ( in Mauritius ) so would have some experience in maintenance costs on ( non-core residential ) property .

i should have probably suggested a trip to the doctors for a thorough health check , one or both could end up like me and end up with a disability pension and the ability to retire much earlier than planned ... or at least give you a reasonable guesstimate of your future life-spans .

possible another angle would be to look for ways ( until investment opportunities improve ) to cut costs , i found an acceptable deal to put solar arrays on my properties with ( NORMALLY ) generate a cash-flow after i finished the loan agreements .. but that is in QLD and that window of opportunity is less attractive here, currently ( but might be still viable in Melbourne , i have no experience in Mauritius , but it might be viable there as well ).

i STRONGLY prefer property i do NOT need to seek finance for and can pay for basically straight away ( say $100K ) .. yes they are very modest properties but also would have potential for capital gains as the economy strengthens ( whenever that will happen ) the investment property could be either residential or commercial , there are plenty of areas outside the CBDs already under major stress .

my STRONG preference is not to take on any extra debt commitments ( no matter how sweet the deal seems to be )

there should be a reduction of 'easy credit ' on the horizon ( which would increase interest rates , good for term deposits . BAD for outstanding loans )

 

Hi, I retired in 2005 but continued to actively invest in property for 10 years.

Working on 500 pw income, you need about 30K p.a. You need a minimum of 2 small residential properties to give you that income. Factor in vacancies, costs etc

Looks like you need to "downgrade" some more, so that your accommodation cost is around 300K giving you about 350K to earn around 18 K per year which you can live on.

KY