Niemand's Journal
Posted: Thu Aug 30, 2018 10:57 pm
I introduced myself a while ago. The main reason I decided to start a journal is to keep myself accountable and track my progress towards my financial goal of
1) to reduce my current expense level to my projected FI expense level by getting rid of the loan on the family home. The loan is structured as an interest only loan with an offset facility. We were lucky to obtain this kind of loan as it is normally only given to property investors.
Goal is to fill the offset account to the brim, so that the monthly-calculated interest payable on the loan amount will become negligible.
2) to build an income stream from a stock portfolio. In Australia we have dividend franking, which makes investing in dividend stocks a hard to beat income strategy when you're in a low tax bracket. I'll build the portfolio by cost-averaging into a few long-standing, low-cost, dividend-stable Listed Investment Companies (LICs).
Goal is to receive dividend income that together with my rental income will after tax cover all of my expenses less the home loan, plus a small margin of safety.
Once 1) and 2) are achieved, and if nothing else has changed substantially, I should be FI and a day-job optional. I probably won't quit working once FI, but I may take an extended break, maybe retrain and start something new. I still need to figure this out . . .
That's all for now.
I already own a (overseas) rental property outright, which provides a bit less than half of the income that I'll need to cover my projected FI expenses. As the next steps I'll attemptbeing able to sustainably meet all necessary cash flows without work, through non-day-job income.
1) to reduce my current expense level to my projected FI expense level by getting rid of the loan on the family home. The loan is structured as an interest only loan with an offset facility. We were lucky to obtain this kind of loan as it is normally only given to property investors.
Goal is to fill the offset account to the brim, so that the monthly-calculated interest payable on the loan amount will become negligible.
2) to build an income stream from a stock portfolio. In Australia we have dividend franking, which makes investing in dividend stocks a hard to beat income strategy when you're in a low tax bracket. I'll build the portfolio by cost-averaging into a few long-standing, low-cost, dividend-stable Listed Investment Companies (LICs).
Goal is to receive dividend income that together with my rental income will after tax cover all of my expenses less the home loan, plus a small margin of safety.
Once 1) and 2) are achieved, and if nothing else has changed substantially, I should be FI and a day-job optional. I probably won't quit working once FI, but I may take an extended break, maybe retrain and start something new. I still need to figure this out . . .
That's all for now.