Right, so here I am again. It has been a while since I posted on this theme. Largely, that is because I had begrudgingly come to the conclusion that there was to be no early retirement for me, and that I was just going to have to continue working until old age, with the one in a trillion sniff of a Lotto win the only hope of avoiding that.
Yeah, the prospect of online business, freelance work, and other get-rich-quick schemes appeal, but only ever fleetingly, and only ever marginally. I could make a modest income from some of these approaches I am sure, but certainly not enough to maintain our current lifestyle, and keep paying off the house. Yes it helps that wifey is working a lot these days, but really, that is mainly to help her own savings, extended family support, and of course, dental for our kids.
So realistically, I did not have any practical path for early retirement. So I just resolved to be more disciplined, do better at saving/investing and control spending. I had been doing that for some time, with my list of assets and their value, that I had been tracking six-monthly. After a couple of years, we had experienced some growth, so the other day I decided to model this. Based on what growth I had achieved over 2.5 years, what could I meaningfully expect to achieve over the next eight? The answer surprised me somewhat. Check out the graph.
So to my surprise, I had been able to achieve an annualised growth of 13% on our assets over the period of time I have been monitoring. And it is actual too, no assumptions there. I have an actual valuation of the Barooga property, as well as a conservative one of the Echuca one. The rest are just numbers from statements, including bullion. With that, I have gone for precious metal value alone, not numismatics. So in reality, I could likely get more.
Anyway, next step is to take that performance, and see what would happen if I was able to maintain that over a period of time. 13% might be a little ambitious for an amateur investor like me, but one must consider that this includes yearly inputs in terms of income and superannuation contributions. So as long as I can maintain my income, I think that is a very achievable target. So using that 13%, I thought, ok let's take this out to the age of 60, and see where I'm at. Results below:
Wow! That surprised me. If I can maintain this, then I will have hit ~$2.3 million by the time I turn 60. By my way of thinking, that is enough for a comfortable retirement. That ticks plenty of boxes hey. #1, it sets a goal date, fairly firmly I feel. #2, it satisfies the criteria of early retirement, which frankly, is anything less than 67. #3, it is very realistic. I am thrilled with this!
Only one thing remains really. That is answering the question, am I going to see out the remaining eight years with Mawsons, or am I going to look to go elsewhere? Right now, I really don't like my job, so I'd much rather go elsewhere. However, house, schools, stability, well they do count for a fair bit, so we'll see. One thing wifey and I agree on is that if I go, it will need to be a better offer. Watch this space.
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