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  1. #1
    Join Date
    Apr 2018
    Posts
    260

    Default Not wanting to leave a cent behind, planning retirement and how to spend it all?

    Probably by the time Im ready to REALLY start spending, interest rates wont be 3%. However I still see homes in Auckland possibly being worth more PA than you can borrow against them/spend?

    I saw an article stating Auckland median prices by 2040 will be $3m. I actually think thats quite conservative and back to how housing use to rise, ie nice easy 8-10%pa, none of this volatility rubbish, Aucklands 12% correction and last 4 years of flatline (up and down + then -) really gives me reassurance if anybody is going to come out of the looming crash ok its the city with the most 6 and 7 figure incomes and emploment in general.

    I dont think it will be too long before Auckland is back to 6-8x the price of Dunedin houses, and I dont think that is going to occur due to Auckland having a massive price increase :-).

    Anyway, lets say this estimate is right $3m, probably well into my spending large by then. But I did a calculator and it said I could only borrow $500k reverse mortgage, problem is the housing will be growing near $400k pa by then.

    The only singular item I could see myself spending it on is a yacht and a permanently employed skipper and deck hand (Im prob still going to be ok with the sheets and sails etc, but I want to enjoy it). I had planned to retire by 55, but this may not happen if the Mrs has a child. If she doesn't then it is possible.

    Another dream is to get my personal pilots license and getting a twin engine Cessna or Saab (nothing flash) and buying property in paradise (Polynesia) and perhaps a smaller yacht kept there. That would definitely suck up the cost of 1 Auck property.

    I essentially want to get as close as I can to where the free diving is still crazy with marine life and and Im still capable of good length apnea. Vanuatu is the place for reefs, or Papua/Indo, but have no idea of the cost of property there.

    Which raises another question, for those of us with no family and possibly no children, is it not better to start spending while you are younger, ie 55-60yo?

    Its actually quite hard planning retirement and throwing the possibility of death increasing dramatically every year.
    Last edited by OnTheMove; 21-05-2020 at 07:53 PM.

  2. #2
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,487

    Default

    Hope for the best and plan for the worst?
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  3. #3
    Join Date
    Aug 2003
    Posts
    7,868

    Default

    Interesting post. Why not just live each day as if it's your last!

    Personally I'm fine with leaving $$ to extended family and charities. Ideally Marc and I will get to do more travel (that's our extravagance) etc in retirement but we have the house we want and we don't have any desire for a lot of stuff.
    cheers,

    Donna
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  4. #4
    Join Date
    Apr 2018
    Posts
    260

    Default

    Good points and thanks Donna.

    We dont have a want for much stuff either, outside hobbies, unfortunately our hobbies (horses and sailing and hopefully flying soon) are expensive.

    I wasnt really expecting an answer for my own situation.

    So live each day like its your last is pretty good for the type of planning. Also as I don't have family, that I can stomach, that's out, but the charity bit has me thinking. If for example I we had a modest 2 IPs by retirement, if I reverse mortgage them until the bank would want them sold, I could plan 30 years off that as best case life span. Leaving a PPOR and various other assets to my Mrs when Im gone and then she could either leave to an agreed charity or her cousins children who she is close to in Europe. Or maybe a bit of both.

    I think worst case, owning an Auck PPOR, having a Powerboat for freediving and maybe leasing horse land for her ladyship is not so bad when you consider not everybody gets to even there. That would likely be going backward from where we at now, but is worst case. Best case Perry, well sky is the limit, aim for the best :-)
    Last edited by OnTheMove; 30-05-2020 at 05:31 PM.


 

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