"One often overlooked point to ponder for blokes is that, probably for the first time in your married life, you are going to be home 27/7. Believe me, this is not necessarily a good thing!" Quote Oldigger
Ha ha you go from being the boss to 2nd in command in a company of two...............................
I haven't read the full article but if you invested in an asset class, returning 7% to 8% return your $900,000 may pay you $60K to $70K.
But you obviously have to take on more risk than throwing it in a term deposit, not silly risk, but some.
I'll use Real Estate as an example......and I am not trying to sell anything here.
I recently sold a property with a 5 + 5 year lease, it was rented for $60,500 per annum. I sold it for $800,000.
So the purchaser probably paid about $840K gross allowing for stamps and legals etc.
The tenant pays all the outgoings so the $60,500 is what ends up in your back pocket.
The tenant is a multi national and its a dentist so fit out cost for them is massive and being a quality publicly listed company they will pay their rent on the first of the month, every month until the lease ends.
So the guy who bought that gets a return of 7.20% ( $60500 / $840,000)
But the risk is that, that company may need larger space, or relocate to a more desirable trade location at the end of 5 years, and you have to find a new tenant. So thats the risk you take, but if the market is performing normally, the value of the property should have gone up and you will still have your capital intact.
Shares are much along the same lines they are more tradeable and liquid than real estate, but the market can be very volatile and risk is assessed accordingly.
Its worth getting some good financial advice to help you with your superannuation portfolio. Find someone wealthy you know and ask them who they use.
Cheers Nomad.
Edit.......quoted wrong post.
