$80,000 passive income portfolio for retirement (full case study)

$80,000 passive income portfolio for retirement (full case study) | [3/4] Selfwealth LIVE

Рет қаралды 16,014

Жыл бұрын

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Selfwealth LIVE is back for episode 3 of our Passive Income mini-series featuring Wattle Partners Financial Planning's Drew Meredith and Jamie Nemtsas.
Joining your Selfwealth LIVE host, Owen Rask, Drew & Jamie will dive into a full case study, explaining how to generate $80,000 of passive income from a portfolio for retirement.
Say G'day to Wattle Partners 👋
This month, Selfwealth LIVE is brought to you by Wattle Partners Financial Planning. Servicing clients all over Australia, Wattle Partners are leaders in advice for retirees -- whether you're nearing retirement or already in it.
The Wattle Partners team, led by Drew Meredith and Jamie Nemtsas, have decades of experience in passive retirement income, professional investment management, tax optimisation, Superannuation and estate planning. Click here to get in contact with Drew, Jamie and the team at Wattle Partners: bit.ly/3Zbthe3
FULL CASE STUDY
Cathie (57) and Wood (61) live in Ashmore, Queensland in a 4-bedroom, 2-bathroom house. Wood is a Physiotherapist, earning $120,000. He loves the Brisbane Lions in the AFL and spends his weekends watching their two boys play sports. Cathie is a software engineer who works 7 days of night shift every fortnight as overnight support for a global technology company. She earns $135,000.
Financial picture
Assets 📈:
* Wood’s Superannuation: $350,000
* Cathie’s Superannuation: $460,000
* House in Ashmore: $1.5 million
* Investment portfolio of $210,000:
* LICs - $50,000
* Magellan ETF - $25,000
* BHP - $25,000
* CBA - $25,000
* ETFs - $85,000
* Cash & TDs: $65,000
* Offset account: $20,000
Liabilities 📉:
* Mortgage: $350,000
* Credit card: $18,000
* Two boys (17 & 19) - both living at home, for 1-2 more years
* Car loan: $55,000
Other 🚗:
* Current expenses are ~$6,000 per month ($72,000 per year)
* Adequate insurance is held inside Super
* Wood is an only child and could be expected to inherit $300,000 in 5 years
Goals 🏆:
* They’ve heard they could retire and earn a passive income of around 4% per year, after inflation.
* They’re hoping to earn between $70,000 - $80,000 in income (today’s dollars)
* Both want to retire between 64 and 67, debt-free (that’s ~5-10 years)
* They don’t want to move or sell their house, but would be open to downsizing after retirement or once the kids have moved out
* Wood is growth-focused so he is less concerned about capital loss than Cathie - she is a lower risk investor
* Cathie & Wood would like to spend 4 weeks per year on a holiday, locally and internationally after 60 (i.e. every other year they go to Europe, NZ, etc. - not lavish, but comfortable)
* Cathie would like to build wealth outside of Super and the house, Wood likes the tax-advantaged status of Super
***
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RESOURCES:
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Important Disclaimer: The views expressed in this livestream are solely those of the presenters and expert guests, and do not necessarily reflect the views or opinions of Selfwealth.
Important disclaimer: This video contains contains general financial advice only. That means the information has not taken into account your needs, goals or objectives, so you should not act on the information until you have spoken to a licensed and trusted financial planner. Owen is the Founder and Director of The Rask Group Pty Ltd (ACN: 622 810 995), which is a Corporate Authorised Representative of No. 1280930 of Wattle Partners AFSL: 383 169. Please refer to The Rask Group's financial services guide (FSG) for more information at www.rask.com.au/fsg
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Пікірлер: 20

@jacko.2225 Жыл бұрын

Interesting. I think a lot of people would love to see a case study like this for a single person in their 20’s

@SelfwealthAus Жыл бұрын

We can do that next if you like? Owen Rask

@nukichaplin3042 6 ай бұрын

I was just about to post this. Single person in there late 30s

@KelvinCesar-bv8ow Жыл бұрын

I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green and my retirement is edging closer by the day.

@danielkirkpatrick3109 Жыл бұрын

Interested to see what the plan / strategy would be 5, 10 or 20 years out.

@stickpuppyslife Жыл бұрын

For a couple in their early 60's I would consider doing a Transition to Retirement Strategy - putting in the maximum amount into super ($27,500 each) and then the closer you get to retirement, if you want to wind down at work (work less days) you can start taking out a pension from your super fund at the same time. You can access your super from aged 60 in a TTR (Transition to Retirement).

@SelfwealthAus Жыл бұрын

TTRs are popular for a reason Rainbow! But in all seriousness, there's also many strong reasons why many Aussies max out their concessional contributions close to retirement (did someone say tax?). Cheers! Owen

@lestergabriel2496 Жыл бұрын

Having tracked expenditure for years, I'd fully endorse the $80K base expenditure for empty nesters .... if you have to pay income tax, that would be in addition to the $80K.

@Johnsmithabcde Жыл бұрын

What are the etf picks to achieve this?

@MarkBruce-ow3tu Жыл бұрын

Very disappointing podcast, too much general chit chat on retirement strategies and advice. The scenario was specifically set up to provide advice for Cathie and Wood to provide an $80K pa income but Drew and Jamie did not even get close to providing specific advice as to how this could be done! Debt was $423k and investments/cash/offset $295K so how was debt to be paid off prior to retirement? How was super structure to be maximised over the next 5 years and was downsizing of the PPR necessary to add to the income producing portfolio? What strategy did Drew and Jamie recommend to produce an $80K income for Cathie and Wood for the first 10 years in retirement and what did the next 2 x 10 years periods look like for them?? Owen needed to guide his guests back to the case study instead of being content with common-sense commentary.

@changck007 Жыл бұрын

Interesting… my parents are retired and spending around 2k a month all inclusive. No debt repayment…. 80k would be a massive luxury to them.

@italogiardina8183 Жыл бұрын

A holiday in India can be very cost effective if living as the average pilgrim.

@relfmorris5141 Жыл бұрын

i cant get on to them what going on

@mitchandrew3249 Жыл бұрын

I’m trying to work out how the following line from Cath and Wood’s scenario was calculated and what it represents: * Already have $1.02m, less debt of $320,000 Shouldn’t it be already have assets totalling $2,225,000 and debt totalling $423,000 ?? If someone could explain that would be appreciated

@SelfwealthAus Жыл бұрын

Hey mate! It's Owen here. That was a line from Drew I forgot to take out from the notes. In short, when a financial planner looks at an asset base of a client they often divide 'lifestyle' from 'investment' assets. What is actually paying income and growing, and what isn't. If I'm being VERY cheeky I might be inclined to say that in this case study (as in MOST instances), the primary residence is probably closer to a liability than an asset -- until it is sold or rented. That's because a primary house typically needs lots of maintenance, council rates, etc. (of course, everyone needs a place to live -- but you get the idea). For a retiree, the primary residence can instantly 'flick' to an asset in an 'equity release' style strategy (e.g. sell the expensive home, buy a unit, make a contribution to Super, etc.). So, if you add, 250k+460k+210k+65k+20k you get close to the $1.05m in assets. I hope that makes sense. I'll remove it now. ~ Owen

@jayeshmehta9679 Жыл бұрын

Did they actually answer the question : Weather or not the couple had enough assets for a 80k per year retirement?

@SelfwealthAus Жыл бұрын

Hey Jayesh! The answer is “yes - but it depends on making good decisions, and maybe some hard decisions.” Tune into the last 10 minutes for more. Cheers! Owen Rask

@leamiscool Жыл бұрын

Agreed they're just deflecting for an hour lol