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KRAAAAAAAAWWWWWW !!!!

Discussion in 'Introductions' started by Dr Lobster, 23rd Aug, 2007.

  1. Dr Lobster

    Dr Lobster Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    95
    Location:
    sydney nsw
    Kinda following on from my post in this topic. And I kinda feel inspired by your positive coments.

    http://www.invested.com.au/85/scary-stuff-17045/index3.html

    I've been a lurker at SS since early 2003 and I've been here for a yr but I'm not much of a poster.

    Here is part of my story.

    My strategy has been cobbled together from a number of sources ie numerous books, seminars, discussions on websites and paid financial advice. My entire investment portfolio (excluding super and my ppor) is now breakeven to cashflow positive and stands at $900k. With my ppor and super it amounts to $1.6m. I have to conceed that this portfolio was built on my salary which is around $130k atm however my wife doesn't work (our choice) and I have 3 kids 5,3 and 1.

    My strategy was put to the acid test late last year when due to a lifestyle choice ( I decided I didn't want an ulcer before I was 40) I threw in a job that had the potential to reward me more than $200k pa. I held this position for a couple of mths and therefore it did not affect my ability to build the above mentioned portfolio.

    So what ?

    I didn't work for 6 mths. Sure I watched my pennies, but it gave me time to find the right company to work for. I took my son to his first day of school, my daughter to her first day of pre school, my youngest's first steps, I took my kids to swimming lessons, I co-coached my boy's soccer team and various other boring family duties :) I also surfed my bum off ( I still have the remnants of the tan).

    Its a big leap of faith when you have $1m of debt and 4 dependants and you tell your boss you aint workin there no more and you aint got nowhere to work tomorrow.

    It really opens your eyes. Especially so when your boss realises that in actual fact "he aint the boss of you", not in a real sense. And he isn't able to do what you do.

    And its weird when friends / relos ask you how you get by paying the mortgage when little do they know you have over $1m in debt. And the ones I know have open minds I open my books to and show them, the others I kinda shrug.

    And to me its still weird, knowing that 9 yrs ago we were both working, renting, not really hoping, just grinding away to save a deposit for our first joint wondering as the market started shifted gears if we would ever get to buy our own place.

    This achievement to date is ours, we researched the markets, evaluated the deals, ran the numbers and paid for good advice.

    And that's my advice, pay for good advice. And credit where credit is due the following people have helped me immensely on my way.

    Rolf Latham from ASAP Financial Services.
    Nick Moustacas from Strategic Wealth Management
    Steve Navra from Navra Invest and Navra Financial Services.
    Dale Gatherum-Goss.

    This has been my experience to date. It aint over yet.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Thanks Doc - great to get to know you better.

    Thanks for your contribution here already too!
     
  3. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    That's awesome stuff Lobster.

    Do you now plan on paying down the loan, or will you maintain your gearing?

    Do you intend to keep working for the next x years?

    Or will you retire as soon as the numbers stack up?
     
  4. Dr Lobster

    Dr Lobster Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    95
    Location:
    sydney nsw
    Hi Glebe,

    I have started debt recycling with my ppor so that won;t really change my lvr.

    As far as retiring goes I'd like to think in 10 yrs I can make a choice. However having said that I'm going to enjoy myself along the way so it may take a bit longer.
     
  5. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Hi Dr Lobster,

    Welcome mate and thanks for the insight!

    We're a lot more similar than I first thought. I too am a young dad, but I've only got one boy, Aden 2YO. My debts only a touch higher than yous and I'm also servicing about $1.5M in debt against a portfolio of about $2.5M (including the PPOR). And I also took 6 months off recently before starting my new job just a few months back. It was quite daunting initially walking out of salaried employment, although in my case it was a paid redundancy. Nonetheless, it still made me accutely aware of my cash flow position. Fortunately, my Navra holdings serviced my debts quite nicely over that down-time period, and my cash reserves were only slightly reduced. My pay-out was consumed in its entirety in effect, and I went back to work after a 6 month break no worse for wear from a net worth and cash position.

    Put things in perspective as I had a great time with my boy and spent more time with my wife too.

    Welcome again!

    Cheers,
    Michael.
     
    Last edited by a moderator: 28th Aug, 2007
  6. Dr Lobster

    Dr Lobster Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    95
    Location:
    sydney nsw
    A lot of people would kill to have the opportunity to take 6 mths off and spend it with the family.

    Going forward for me I'm currently looking to unlock some more equity. I will invest it, probably Navra funds and margin to 45% to 50%. I'll look at it as buffer though I don't think I'll need it.

    Also setting up a SMSF to work the super a bit harder, no big risk stuff, blue chips that pay a reasonable div, 100% franked and potential for growth. If the market shifts on me I won't be concerned, its long term ( another 26 yrs) and as long as the divs hold it'll be ok.

    As far as property goes at the moment I'm pretty much locked in until I can un X-coll my ips ( it was kinda necessary at the time) and I fixed the loans for 5 yrs (@6.5%) so once they are off fixed rates I will have some more flexibility. It doesn't matter, I need to pay back some personal debt, so 1 yr should take care of that and it will give me more time to see how the property market is going and if there are any more rate rises.

    At some stage I want to upgrade my ppor, my current ppor I'll sell to my hdt and retain as an ip. This will allow me to minimise my non ded debt.

    So the plan is more shares, more IPs, work the smsf and watch my personal expenses.

    And as far as making decisions go, if the numbers stack up, then because I'm looking long term that'll be enough for me.
     
  7. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Gr8 stuff Lobster i admire you. I am to in a similar situation married one daughter. and am contemplating leaving my salaried job and doing further study for 6 months or so then looking for another job which will be commissioned based.

    I will be debt recycling also. good to see others out there having a go!

    well done.
     
  8. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    What a great story- thanks for sharing, Dr Lobster. You've really touched on what matters in life more than anything and that is spending time with those who mean most to you, and putting aside the time through planning, to achieve this.

    I look forward to following your progress over time- but don't forget to Slip Slop Slap when you're hitting those waves :D
     
  9. Dr Lobster

    Dr Lobster Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    95
    Location:
    sydney nsw
    Thank you all for the positive comments.

    Having been around investment web sites for a few years I know what I've got going is pretty small beer compared to some, however its a start.

    And I appreciate the opportunity to speak with like minded people about it.

    In fact, if it hadn't been for investing websites like this and SS I most likely wouldn't have taken a single step.