OzB, Am I Doing Life Right?

Ghosteye on 22/12/2015 - 04:35
Last edited 22/12/2015 - 04:36

Like a similar post, I just finished VCE as well. However I would like to ask your opinion on my future plans for my life.

Several things that I have planned on doing ( In chronological order ):

  1. Investing in stable companies and collecting dividends. (I have started on this ever since I became 18 and got a part time job)
    3-4 years later…
  2. I plan to use these dividends to pay off my hecs fees from university as soon as possible.
  3. If everything turns out right, I plan to use my first job and some cash remaining from dividends (maybe a rise in stock prices) to get my first house by 24/25
  4. If the housing bubble does not explode and I land on a decent job, I should be able to afford my second house by 28/30
  5. By the time I reach 35-40 I should be able to have a portfolio of about 6-7 houses.
  6. Early retirement by 45-50?

Does my plan seem feasible or too ambitious? And are there any ways that I can improve on this so I can exit the workforce even quicker?

A little bit about me:

  1. This year I managed to get 90.45 for my atar.
  2. I plan on entering the Aerospace engineering field with a double degree in either bachelor of science/ arts.
  3. I have no plans on marrying, nor have much interest in materialistic things I want to have e.g. cars/ boats/ traveling hence saving money is quite an easy thing for me because I have nothing to spend on.
  4. I do have interest in computing, and basically just building computers. The reason I'm not choosing something related to I.T. is because I read that the field is very very saturated and the job scope can be quite narrow.
  5. I have read about 100-200 books on various types of investment strategies such as houses and the stock market. My mother handles my stock for me now as I attend seminars and such. Perhaps I was too preoccupied with this and hence got a lower than expected atar :p

I do realize that despite me saying that I am not materialistic, I am chasing the most materialistic thing of all, money. Personality wise, I am a really lazy person, and the only area that I am not lazy in is when I think of ways to do something as efficiently as possible. And because of my laziness I have an interest in getting money in the fastest and what I think is the easiest way possible.

Having said all this, is this naivety or can I make this come true in today's world?

Education & Work

Comments

  • Kozhutki on 22/12/2015 - 04:53
    +3

    What do you do for you? What is the end goal, even after you retire? Are you going to stop advancing your portfolio? Live on passive income for the rest of your retired life and do …?

    • Ghosteye on 22/12/2015 - 12:47

      I'm going to probably going to try expand it as big as I can, and either 1. donate it to charity 2. Give it to an adopted child or a close relative. And living off the passive income to do… I don't currently know yet, but if I feel like it is highly beneficial then I would resort to euthanasia so I won't be a burden environmentally.

      • jaxpylon on 22/12/2015 - 21:59

        Wtf? That took a turn…

        • Ghosteye on 22/12/2015 - 22:53

          Lets just say I'm not your average person :)

      • DeafMutePretender on 23/12/2015 - 11:20

        How does one go about undertaking euthanasia in Australia?

        • Ghosteye on 23/12/2015 - 16:10

          I don't think euthanasia is legal in Australia ( I think there was a time when NT allowed it), but there are other countries that do offer that sort of service.

        • DeafMutePretender on 23/12/2015 - 22:42

          @Ghosteye:

          What is the average age that an old man loses his mental faculties and henceforth, requires assistance of a nurse to poop?

          If all goes to plan, I'll be ending mine before that happens.

          "Human life is sacred"? F that.

  • danb on 22/12/2015 - 07:16
    +2

    How long does it take to complete a double degree? So for the duration you will be working part time? Will you be living at home for this time and are your parents supportive and will you need to pay them any money each week? What about bills etc?
    How much will your double degree cost, especially if you plan on paying this off asap. How much will this leave for your first property at 24/25? How much are you expecting to have for a deposit at this time?
    Are you taking into account finding a partner, what that means for your plans and wallet?
    Always good to have plans and set goals. Try to be realistic (not saying this is not btw) and always account for things happening that will delay your plans as it always happens.

    Living at home is great, but its a completely different story when you move out, and the costs add up like you wouldnt believe, especially when you first move out. Rent(or mortgage payments, strata etc), bills (power, gas, water, mobile, internet), car(rego, insurance, maintenance/services, car payments), food, work (travel, uniform/suits etc)and thats not including clothes, hobbies, going out with friends, going out for dinners, gifts, presents, partner etc Im sure im missing alot as they always seem to pop up. You say you are not materialistic but you will need furniture when you first move out, even if you get these cheap, they will add up.

    Those are just some things i thought about when reading this post and i hope it gives you some things to think about.

    • Ghosteye on 22/12/2015 - 12:56

      Thanks! I certainly haven't thought about the aspects that you've mentioned, and at the rate at what I'm collecting right now I certainly would not be able to afford the deposit for my first house. But thanks again, I will give these a good long think and decide then.

  • derpdeder on 22/12/2015 - 07:56
    +6

    Don't worry about paying off the HECS debt. It only grows at inflation - pay off any debt incurring higher interest. Any spare money you should invest with a return that will get you an after tax return of higher than inflation.

    There are no HECS repayment discounts anymore so your money is better used elsewhere.

    • Ghosteye on 22/12/2015 - 13:02

      I'm not so sure about the financial standing that I'll be in when I graduate, but assuming that I live at my parent's till then and beyond, HECS would be the only form of debt I would be in, I think. Unless by the time I get there I have enough for a deposit (which I highly doubt), HECS would be my only financial burden. I've heard stories from my parents about people migrating away just because they want to avoid repaying HECS, hence giving me a rather bad outlook towards it. Thanks for the insight!

      • geoffs87 on 22/12/2015 - 13:32
        +1

        To help you here, i'm 28, have 2 properties with my partner (~$2m) at about 70% LVR… and my help debt is ~$90k… bank hasn't bat an eyelid at lending me money once given the help debt.

        Basically the bank wants to see your serviceability for the loan. ie, it matters naught if you have an 80% deposit, if you don't have a steady income source to pay off the rest they won't lend to you. Your Help debt is just deducted from your salary directly - so they want to see payslips and they will make conclusions of serviceability based on your after tax income.

        Of course you can always leave the country - if you don't earn over a certain amount (i think its low 50k's now)you dont have to pay it back - but it grows at the rate of inflation…. not sure what they do after that!

        Like Derpdeder says… i wouldnt pay off your help debt - its a very cheap loan. Save your money for a more constructive loan (ie home deposit) and reduce that debt (~4-5%) rather than 2-3% help.

        NB - when buying property, if planning on keeping for investment, don't pay down the loan… pay back interest only for as long as possible, and pump cash into an offset account. You want to be able to claim the maximum debt against each property for negative gearing purposes. leaves you more liquid for future purposes!

        NBB - seek professional advice, I'm not qualified to provide it, just speaking from experience.

        • Ghosteye on 22/12/2015 - 14:06

          Wow thanks! I have 2 questions:
          1. What industry are you working in? 2m seems crazy at 28.
          2. Do you think you could've done it without a partner?

        • geoffs87 on 22/12/2015 - 15:42

          @Ghosteye:

          1. Stockbroking - and no, i'm not earning great money - i just made some good investment decisions early on
          2. Probably not - first property we bought was for 500k in 2011, we both earned under 50k in the 2011/2012 financial year - would have been quite tricky on my own. However - we both are quite material Cars, boat, travelling (ive done alot this year) and fancy things in our house.

          I think you just have to be smart about what you do, and make good choices. My latest purchase in Cremorne (Sydney) from April this year was valued just this week 26% higher than what i paid 8 months ago, by the bank - and they're conservative - that helps, while my investment in Ultimo (sydney) was just valued by the bank 60% higher than what we paid in 2011. We have 350k of liquid equity that the bank will allow us to draw against right now, and we are looking at making another investment or 2 - however our serviceability is at risk given our spending habits lately.

  • mskeggs on 22/12/2015 - 08:02
    +6

    Sounds like you have financial goals. But it doesn't sound like you have given much thought to the rest of your life.
    What makes you happy? What experiences have you had that you found rewarding? Who are you closest to? What makes you laugh? What would you do to become a better person? What are you proudest of?

    Financially, be reasonably cautious with all the leverage you will be taking on board to get 6 houses by the age of 35. If prices grow below inflation for a time, or you have an unexpected period of unemployment etc. you could come unstuck. Good luck.

    • Ghosteye on 22/12/2015 - 13:20

      I have been diagnosed with a condition that has something to do with psychopathy. I'm not so sure what it is, but basically, I am mentally incapable of being emotionally invested towards things or people, which is why I do not have things or hobbies that make me 'happy'. Call me cruel, but I do not have people in my life that do not serve a purpose to me, nor do I have experiences that I fondly look back towards. As for being a better person, I have quite a warped sense of right and wrong, thus making 'becoming better' a really hard thing for me to place a finger on.

      The reason why I'm going into housing is because I've read that this is the most stable form of appreciating income. Like you said,it has its risks, but I think it's one of the lowest, hence my decision to venture into this area.

      • DeafMutePretender on 23/12/2015 - 11:23

        I have been diagnosed with a condition that has something to do with psychopathy. I'm not so sure what it is, but basically, I am mentally incapable of being emotionally invested towards things or people, which is why I do not have things or hobbies that make me 'happy'. Call me cruel, but I do not have people in my life that do not serve a purpose to me

        According to the system of capitalism, I think you have all the necessary "qualities" to be a top notch CEO.

        • Ghosteye on 23/12/2015 - 16:13

          If it was sarcasm, haha, if it was genuine, thanks. I don't wish to become a CEO of some multi-national company, I just want enough money to live without working. Money isn't my end goal. But it is my primary one.

        • DeafMutePretender on 23/12/2015 - 22:40

          @Ghosteye:

          If it was sarcasm, haha, if it was genuine, thanks.

          Amazingly enough, it was both.

  • modsec802 on 22/12/2015 - 08:19
    +4

    I have no plans on marrying,

    That's a funny thing for a teenager to say. Myself, like most married people, had no plans on marrying when I was a teenager also! But like other things in life, it happens.

    nor have much interest in materialistic things I want to have e.g. cars/ boats/ traveling hence saving money is quite an easy thing for me because I have nothing to spend on.

    I am not sure you understand materialism. Travel isn't materialistic. You can travel without spending a lot of money and still have lots of fun. Travel isn't just expensive overseas holidays.

    By the time I reach 35-40 I should be able to have a portfolio of about 6-7 houses.

    Planning to own 6-7 houses isn't materialistic?

    Early retirement by 45-50?

    Sounds like you'll be 'retired' much before then

    Personality wise, I am a really lazy person, and the only area that I am not lazy in is when I think of ways to do something as efficiently as possible. And because of my laziness I have an interest in getting money in the fastest and what I think is the easiest way possible.

    Having said all this, is this naivety or can I make this come true in today's world?

    You sound incredibly naive and the sort of person who falls for a 'get rich quick' scheme, which like your plans, are too good to be true.

    Live a little.

    • Looking4Bargians on 22/12/2015 - 09:58
      +4

      He needs to live in the real world. He is living as all teenager lived in their youth.

      • Ghosteye on 22/12/2015 - 13:38

        A lot of people say that about our generation, and I think it's true. I certainly do not know a lot about real life, and what it has in store and certainly do not hold the experiences to make qualified judgements yet.
        BUT (deep breath preparing for my defense)
        I think my father has raised me in a manner that is different from the average parent, which should, in theory, set me up as someone who is a bit different from societal norms.
        A few examples are:
        I have been through active warfare with him (not as a fighter, as a first aid-er) in the jungles of Myanmar.
        He has always been exposing me to near death scenarios in an attempt to cherish life. (I think he's a pro lifer).

        I've always thought that these experiences would set me apart from your average inexperienced teen, but I think what you've said might have set me back 100 steps in my naivety. (not saying that's a bad thing)

        P.S. Isn't materialism the idea that you chase after all things in this world be it physical or emotional? I can see why experiences from holidays cannot be categorized as materialism but I still feel like they are to some extent.
        Thanks!
        I do realize having said all this, it still makes me the squabbling teen who's pretty unhappy with being called immature.

        • Kozhutki on 22/12/2015 - 14:57

          "A tendency to consider material possessions and physical comfort as more important than spiritual values."

          Everyone has their own idea on what materialism is. Arthur Schopenhauer, a German philosopher, has an epistemological argument against materialism:

          1. If materialism is true then all things are constituted by matter.
          2. If all things are constituted by matter then all things are explainable through matter.
          3. Knowledge would therefore be explainable through matter.
          4. Any explanation of knowledge through matter or reduction of knowledge to matter would itself presuppose knowledge.
          5. Materialism is false.

          There are many more arguments against materialism that you could find if you cared enough!

          Or maybe you're just Lil Wayne? "All I love is paper / I don't love these hoes"

  • [Deactivated] on 22/12/2015 - 08:23

    Money isn't necessarily a material object, at least not like say a flashy car, an unnecessarily large television or a collection of flash shoes.
    It can be used for gaining lifetime experiences, etc.

  • oscargamer on 22/12/2015 - 08:35
    +4

    we are on this planet for a pretty short time

    go and have a look at it

    as you get towards the end of your life and you are reminiscing, what would be better, to count the number of properties you have or to remember adventures, people and places

    but that said, we are all different

  • tre180 on 22/12/2015 - 08:55
    +4

    Fair play to ya, but i'm thinking your plans might become very different once you get your leg over

    • Ghosteye on 22/12/2015 - 13:51

      This is exactly what I was thinking when I posted this and when I was at my graduation ceremony :)

  • toristo on 22/12/2015 - 09:31
    +2

    First up, it's your life and take what everyone else says with a grain of salt. At the end of the day you are the only person responsible for your happiness.

    Second, good on you for actually considering your financial future now. You're probably miles off in terms of your plans and what you'll actually do, but you know what? It doesn't matter - you are trying to make a plan and move forward. You'll take a step, adjust your plan, take another step and adjust again. You are not going to always get it right but you'll learn from that too.

    Those people who say you'll never do this or that, or its bound to fail are often those who haven't tried at all. Don't reject what they say, but consider it, assess its value to your position and maybe there's something useful in it, but don't be dissuaded by those who haven't done what you are trying to do.

    Travel is an incredible thing and something I wish I had done when I was younger. You will learn a lot about yourself and the world. Go places that make you uncomfortable, not just tropical beach resorts in western countries. Talk with people you wouldn't normally talk with. Eat dinner with locals. Walk. Explore.

    As for paying of HECS, save your money for something else - as called out, it's increased at inflation and is the cheapest loan you could have. Invest wisely with your income.

    Also, never use ozbargain again. You'll end up spending 10x the amount you would have otherwise spent buying bargains that you had no intention of buying until you saw it was 70% off :)

  • plmko on 22/12/2015 - 10:29
    +4

    You need a girlfriend/boyfriend ASAP :)

    • Ghosteye on 22/12/2015 - 14:00

      It's not like I didn't try :( haha

  • Findo on 22/12/2015 - 11:08

    Setting goals is good, but don't set ones that will stress you out. I had grand plans in my first two years of uni; it drove me into depression. While on the outside everything seemed fine, I was trying to force myself to achieve more and more and people only saw that part - they didn't see what was going on inside. Please, just do the things that make you happy and plan ahead, only to live it one day at a time. Money isn't everything. I would trade all the material possessions I have and then some more to be happy.

  • strikerzebra on 22/12/2015 - 11:16
    +1

    One mistake I made was that I planned too much on my financial goals when I was young and missed out a bit on the fun, you should spend a few years just working casually, travelling with your friends, partying, whatever makes you happy. Once you get older and find a partner or have kids you won't have time for any of that ..

  • sparkles on 22/12/2015 - 11:39

    My advice: Don't forget to LIVE.

  • ShamelessBargains on 22/12/2015 - 11:41
    +1

    As the above posters have mentioned you are only young once so get out there and experience the world!

    I think its good to have financial goals but maybe make them smaller to start off with and build them up overtime.

    Life is all about the people, places and experiences you have! You might have 10 properties but at the end of the day wouldn't you rather just be happy?

    Growing up you learn more about yourself and what you want from the world.

    I think being an Ozbargainer is more about maximising every dollar and experiencing more for less :)

  • Unorthodox on 22/12/2015 - 12:29
    +2

    I don't think you researched enough into shares…

    Dividends are not going to bring your financial situation to what you expect in those 3-4 years.

    You need to read up on capital gains and capital gains tax. Your goals are really unrealistic even if you're hitting 60%+ YTD returns.

    • Ghosteye on 23/12/2015 - 02:47

      Every book I read has something new and 'unorthodox' to offer, with each offering a way to hit jackpot quickly, but they all seem so dangerous and risky…

  • lisss on 22/12/2015 - 16:34

    My advice: don't focus too much on long term goals. Have long term goals, sure, but realise that your wants, needs and perspective will change. Focus more on the short to medium term, and enjoy life and opportunities when they present themselves. When I was your age, I was similarly focused on financial gain. 10 years later, my perspective and the things I think are important have changed remarkably. You have time to make money later, you're unlikely to have time to travel etc as freely as when you're a university student ever again.

  • Mad Max on 22/12/2015 - 21:44

    Carpe diem
    Nothing wrong with wanting to make a lot of money.
    But ultimately life is way too short and there is no point in being the richest man in the cemetery.
    I know it is easy to say, but hard to let go and chill out.
    You are far too young to think only about making money.
    Have girlfriends (as many as you can) go places, make experiences.
    Live as there is no tomorrow while you are young…because it will not be possible when you are older and then you will regret not doing it.

  • SlickMick on 22/12/2015 - 23:32

    That's fine plan for this year, but don't sweat it - it'll change next year

    • Ghosteye on 23/12/2015 - 02:46

      I've actually been holding onto this plan since the start of year 10, it's only really been this year the ball has started rolling. I hope it's rolling the right way.

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