Let's say one has $2,000,000 on etfs and you use the 4% rule - do you think this would enough in Australia these days?
Most end up with 500-600k on super at retirement so in my calculations 2m should do the job?
2M in ETFs Would That Be Enough to Retire
LRetiredandsilly on 30/08/2025 - 10:04
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I’m guessing based on their username they’re likely already retired.
edit: also likely silly
Well slap me stupid, turns out op probably isn’t retired after all.
Really starting to question everything about some of these ozbargain usernames now 🥺
@BigD69 @Big balls @Bigdaddy @Loaded Ozbargainer
Please confirm?
That’s a long winded way to ask if you can survive on $80k a year. Lots of people do on less. Depends on your circumstances and most importantly your accommodation as rent/mortgage is the largest expense.
If you need to go to an aged care, better have some money stashed away cos their expensive af
Not if you don't have any or anything, pension only.
BUT OP supposedly has $2,000,000
So will pay top $$$
Not if you don't have any or anything, pension only.
Yeah what a great idea. You can live off the pension and afford great luxuries like cold chicken nuggets and fries for lunch, maybe the nurses will slap you around a few times before bed. Australia is great.
Labor is taking your home to pay for aged care now, so dont worry.
But if you put it that way you don't get to brag about your cool $2m
What’s your lifestyle like?
That's a bit of a personal question…?
Depends on what your expenses are and how far away it is to account for inflation.
When I ran the numbers, I need $3.5 million to retire in 10 years and earn $75k for rest of my life indexed.
Might want to run your numbers again. For $3.5m you can easier draw $110k pa indexed for 40+ years
DingoBilly graduated from high school last year.
at 90 yep definately
at 20 like me nah
u need alot more
Are you serious?
The average pay for a 20yro is something like $50k.
Invest $2m and take out only $50k a year for the next few years and you will pretty shortly be growing it into real money.The average full time pay for a 20 year old is not $50k.
And the average 20yo doesn't stay an unskilled 20yo for the rest of their lifeDo you have any citation for this? The figures I looked up when I posted said $40k for 15-19 and $60k for 20-24.
It would be weird if 19yro got a 50% payrise the day they turn 20, hence my comment, "something like".
https://au.finance.yahoo.com/news/average-income-for-each-au…I agree most people see their pay go up as they get skills and experience.
If you are retired, you don't get either, but if you withdraw less than your lump sum earns (like $50k of the $140k a $2m investment would be expected to produce) your lump sum grows at a faster rate than you are withdrawing, so you can increase the $50k to $60k in n a few more years, then the $60k to $70k a few years after that.@mskeggs: Full time 20+ year olds earn closer to 60k on average.
Assuming they have only 1 job. Many who are trying to get ahead have more than that.@drfuzzy: I guess. I'm my house the range in income is $0 to $85k for adults aged 19, 22 and 24, but one obviously isn't working.
It's hard to get a feel for what average pay is, because people tend to anchor it around their experience.
So a retail worker is likely to think it is $50k and a NRL footballer that it is much higher.
And if you are a 21yro accounting graduate who just started on $90k it probably seems crazy there are 40yro shop assistants earning much less.
That is a false comparison. Natural retirement is about draining the pot till you are expected to die. That's why $600k is enough for old home owners.
If you are nowhere near that age then drawing 4% p/a is negative growth. Even more true when ETFs go through the ebb/flow of things and your 4% drawing is exaperating the drawings.
You are also resigning yourself to never having a bucket list ever because you can't afford it in the future.
Young retirement needs an entirely different growth strategy.
There are plenty of books and sites on the FIRE movement. Checkout Mr money moustache's various articles on the topic and bogelheads and go from there.
Your money or your life is another starting point.
Prompt for chat gpt mate.
Depends on age of retirement, lifestyle and current living expenses.
2mil plus owning your ppor no mortgage is enough to comfortably retire at age of 40. Thats what i am aiming for.
me too, mortgage paid off few years ago (38 now), basically only working now to stack cash
Nice going. I’d prob change your username though if start travelling & move to / join any 🇬🇧 groups
Meanwhile using this time to learn to live and be utterly satisfied with less.
Then will need less cash.
Then will retire even earlier.
Lucky you… my mortage seem to drop so slowly…
I be dead by the time it's paid off
owning your ppor no mortgage
The real bitch is when council re-assess your property and decides rates are now 400% higher.
Example: Gold Coast, QLD, 1995 and on-going …
^This, I used to have a number of $2m + house, now though I would find that borderline with the way rates, insurance, taxes etc are going.
I have much more than that and around that age bracket, and let me tell you its not enough.
Well it depends on lifestyle obviously. Cant have wagyu steaks every day thats for sure…
2mil 4% is 80k after tax inc cgt discount will be like 74kish net.
Thats 1.4k a week to spend without paying rent or mortgage… seems reasonable enough.
Of course depends on your lifestyle
yes, not with 2 school aged kids.
if i was single with no kids at 40, i could make it work even without owing ppor but would probably be just a little above povo lifestyle.
@mrvaluepack: hmmm i have 2 school aged kids too. i mean if not going to private school, should still be ok.
What are the expenses in your case?
At my age plus 2 school aged kids, assuming no ppor mortgage, its around $120k.
A lot of people may think its high, but a lot of people dont realise or include future expenses such as depreciation of vehicle, maintenance/upkeep of property, renewals of equipment (electronic, cooking, furniture), etc. as an ongoing expense.
Renting out 3 cheap houses vs ETFs, say you got $1300 a week after expenses on the houses. But whats going to be worth more in 10 years time?
The ETFs would probably beat it.
I know past performance is not future blah blah but…
If you put $2,000,000 on IVV S&P500 10 years ago It's returned $5,130,000 capital gains and $552,000 dividends…total $5,682,000
Probably beats property?
Have you been smoking?
What part of those returns are fake?
Fries in the bag please
5682000/2000000=2.841x looks like 11%pa cumulative over 10 years
which is better than a smack in the mouth with a wet fish
but I've gotten better growth from geared property, e.g.
30%pa average IRR over 20 years from 105% borrowing on previous property
20%pa average IRR over 30 years from house and land in a good location.
The good thing about property is that you dont need $2M, just 20% of $2M.
Also you can live in your property while with shares you have to pay tax on your dividends.
So have you got $2m, or have you just got a powerball ticket?
Why do people come here for this? Go engage a financial advisor 🔮
Talking about it seems to be more satisfactory …
The last financial advisor advise that I took was to put money into Timbercorp…
Your uncle isn't a financial advisor
I don't have an uncle…
It was from Aon, they are large and global, in case you haven't heard of them…
Luckily I didn't invest into 'cows' and 'cattle'.
Should be enough, but it depends on what you want to spend per year.
Its more fun working knowing you are choosing tp keep working, and can cut back on your hours, or retire when you want.Having property is a stable investment, but more upkeep and work required, while ETF's are set and forget.
Have $2mill each in etfs for a couple is plenty to retire
1/2 in VAS 1/2 in VGS gives you good spread, have found they are growing faster than my work super
VAS gives you more aust dividends, while VGS gives usa exposure, and more capital growth.Is USA exposure a good thing? Genuine question.
It has been excellent, but reversion to the mean is a thing.
you are choosing tp keep working, and can cut back on your hours, or retire when you want
Extremely sad but terrifyingly factual: one of the police killed in Victoria last week planned to retire in a few weeks.
Moral: retire NOW if you can. Learn to live with less
Moral: live in fear?
How about figure out what you believe in and follow that? Preaching to myself here ;)
Watch 60 mins tonight for the super scam
Put it into a house to make yourself eligible for the pension.
Look at the tax advantages of Superannuation.
$2m in ETFs in a super fund is even more tax effective and will help you get there even faster.
I like/dislike the idea of retiring, i.e don't want to slave 5 days per week and spend weekends on grocery trips and maintaining the house, but don't want to sit all days doing nothing or spend time to looking for "savings".
Working part time is a great idea but I believe it's a myth. In today competive job market, who would hire/keep you as a part timer (I'm talking about processional/office jobs). Expect the AI transition period in the next one or two decades, I believe everyone needs to keep themselves ahead, i.e. working more than required even for full timer
A good middle ground is a government job. Max 2 days/week in the office - many are fully remote, and actual work is rare.
Full time pay, part time effort.
lol, something like that
Hard to come by now, these Government jobs are not easy to get nowadays and are not advertising.
don't want to sit all day
sdoing nothingDon't you have any hobbies? If not, most people drop dead shortly after they retire.
Retired now and loving it. Spent 53 days in Europe last year travelling. The length of time was dictated by going over in Qatar Business class on Virgin points and coming back Dubai to Sydney Business/First on Qantas points. Because we were retired we had the freedom to go for so long without dealing with leave entitlements. Been retired about eight years now and still just enjoying not having the stress and annoyance of dealing with work. Didn’t have a real problem with doing the job it was the surrounding BS of the company I couldn’t hack.
Retiring today or some time in future? Is that $2M indexed? Is it in super?
What age are you retiring?
How long do you intend living?Live like a king in Vietnam
For your entire 90 day tourist visa stay.
I made my first $2m in my 20s but kept working. That is not enough to live to 80+ and have a good life. Plus there is no point retiring before you have any real life experience.
Now in my late 40s and in the 1% but getting very tired. So will adjust course soon. Spending far more on tax than I do on myself is also a big disincentive.
How did you make 2m in your 20s and what are you worth now? Stocks or property?
- Business.
- Mix of assets, enough to scrape into the bottom of the 1% in Australia.
How did you make the $2m and how old are you?
Generational wealth probably giving him a boost. Some of my high school friends were millionaires by the time they hit 25 as their Grandfathers started dying and leaving mega million dollar houses and investments to their children which also slides to the Grandchildren.
@Dollar Dreamer: For me I started with the $10k I earnt working in retail as a teenager.
Some young people have more assets and education than their parents while they are still in their 20s.
But generational wealth would have been very nice. OP may come from generational wealth.
Depends on your lifestyle, if you are frugal it might be enough. I would say today you need more like 3.5 mill if you want to remain ahead of inflation.
If you move to a place like Indonesia, Bali, India with $1 million you can retire at 40. Only problem is that most people that do this I have noticed are loners, unmarried, no kids. You won't live as long as in Australia in those countries, typically having a lifespan 10 - 15 years less (Eg. your first heart attack will be your last) but if you retire 10 - 25 years earlier, it balances out. https://www.youtube.com/watch?v=LshIbKV7amI
by the time Labor is done with you, no it wont (and you'll be working into your 80's)
depends on your expenditure you probably could draw a circa 80k income off 2m dollars - if you own your home i reckon most people could live comfortably off that level of income but not extravagently
if you were renting on paying a sizable mortgage then no it would not be enough
Daddy Albo will lube you up well!
Compounding folks..,even Einstein said it was the eighth wonder of the world. With 2mill, compounding would be huge if you invest wisely
What would you invest in?
A financial advisor.
ETFs. Specifically US based ones
If someone starting on ETF journey today, which 2 would you recommend? IVV and VHY? Or any other?
Also which platform is good for regular contribution and Divident investment plan?I would pick
IVV - 30%
NDQ - 20%
SPMO - 20%
VXUS - 10%
IDMO - 10%
SMH - 10%
If someone tells me they need to invest $2m today I am saying FML.
(And I'm not giving investment advice).
FANG asx
Cant speak for others, but if i inherited $2m right now, id retire straight away or at the very least drop down to 2-3 days work a week tops.
I don't get people the can't retire and do their hobbies all the time. To do it while you are young is even better
If you have kids you should want a lot more than that, unless you want to see them all struggle to not own a house most of their lives.
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At what age would you have $2m in ETF'S?