#WealthManagement #FinancialPlanning #EnjoyingWealth
Hey there! 👋 It sounds like you’re in a great position financially, but it’s understandable that you want to make sure you’re enjoying your wealth to the fullest. Here are a few questions and suggestions that might help you shift your mindset towards more enjoyment and fulfillment:
– What experiences or activities bring you the most joy and fulfillment?
– Have you considered creating a “fun fund” specifically dedicated to travel, dining out, or other activities you enjoy?
– Are there any bucket list items or dream destinations you’ve always wanted to explore?
– How can you strike a balance between paying off debt and treating yourself to experiences that bring happiness?
– Have you considered setting specific goals for travel or dining out to make sure you’re prioritizing enjoyment in your financial plan?
It’s great that you and your wife have agreed on a plan to pay off the business debt, but don’t forget to prioritize experiences that will bring you joy along the way. Finding that balance between financial responsibility and enjoyment is key to living a fulfilled life with your wealth. Enjoy the journey! 🌟
Ask your 80 year old self what you’d like to look back on. Finding that awesome little restaurant in the backstreets of Rome? Those multi-month stays in Bali? Losing half your weight to deli-belly in India?
There’s another window to consider, and that’s the one where you’re physically able to travel and do stuff, get travel insurance etc.
Taking your kids on experiences will live on in their memories too.
I would say I know plenty of men in their early 60s who have unexpectedly dropped dead. Go do shit while you can.
I also have a successful business. Lived frugally (still drive a cheap car and live in a modest house) and excess funds went into repaying business debt, expanding business or into other investments. We paid ourselves a modest salary regardless of business success.
We struggled to spend on overseas holidays etc as we understood the opportunity cost of that money.
We opened another account-called it our ‘life improvement a/c’ declared it to be used for wants rather then needs, and deposited money in it monthly. We used to struggle to blow cash on a trip etc but now it’s easy – money in that a/c – good to go.
Focus on experiences and especially those demanding more physical strain of you.
You didn’t mention if you have other investments but you’re also heavily into real estate and don’t mention stocks or index funds. Forget kiwisaver and pump up your index funds. You’re in a really good place but with that income you want to be sitting on 5m+ invested excl your primary home so don’t take the eye off the ball just yet
Agree with the health thing. Maybe you’re in amazing shape and/or that risk is low.
I would start focusing more on hobbies.. think more about traveling. Maybe even consider using some of your time helping others. Often the people who help others get more out of it than the people who receive the help.
Good luck
Ah, yes another brag with no real need for personal finance advice.
This sub sucks sometimes.
You are indeed in that fortunate position where some people aspire to be. This has come about because of good choices and good management that has put you into this position.
you make some clear points. you have a window of opportunity of 5-10 years before grandchildren appear, so take that opportunity and enjoy life, go see places that television brings closer.
You dont have to travel on a budget, you can upgrade for its the experience that matters and you will remember it for a long time.
I like that you have investments with the intention of passing them on, for I’m a believer in legacies being passed through lineage, but you have a very good base of investments and an annual income stream available for you of 20 years.
there isn’t a bad choice, but sometimes we look back and say I wish I had done that, well you are at the time that you can choose to do ” that”
spending your whole life building up a nestegg makes it difficult to change a mindset and I have seen it happen where people just cant change the habit and by the time they realise, its far too late.
Go for a cruise and travel business class. go to Europe, and enjoy the history.
Going to the USA and you may get Trumpted, but its still a great experience.
Start out with one trip and then build on that. Your investments are self managing.
Heck if you like golf, go see St Andrews, and treat yourself, travel in comfort, you have earned it.
Have you considered going the other way. Selling the business which if it’s bringing in 500k would have a good value. Ditching the rental property which I sort of don’t get anyway, maybe even the holiday home if your not using it to much, retiring all the debt and just investing the cash left from it all to fund a nice simple but good life where you do everything you want to do.
It’s definitely a simple formula in a different direction to your current mindset. Which for me would be better as I have all sorts of stuff and desire a lot simpler.
Tomorrow is not promised. Gotta make the most of it while you can.
Others have given great high level advice. As far as a set of questions might go:
– how long would I like to keep working vs be completely free of work?
– are their other forms of paid work I’d like to do, eg be on a board or something
– are their other forms of unpaid work (charitable) that I’d like to do
– what would I like to achieve and experience in my life? Climb a mountain, canoe in Canada, drink margaritas in Tulum, I dunno mate theres a lot you can do. And what would you like to experience with your children and grand children
– how long do you expect to live – be conservative but realistic and then maybe add 10 years in case
– perhaps use current expenses as a guide initially
– knowing how much extra income I expect to have, and projecting forward expenses including a conservative assumption on returns on investment, how much money will I have when I die? If you don’t know how to do this bit, get someone to help. And don’t forget inflation.
– how much money do i want to leave my kids? None? Everything possible? There’s a spectrum here
– the difference between how much you’ll have and how much you want to leave your kids will i suspect in your case give you a lot of room to play with the settings here – incl reducing work, upping expenses and taking more holidays
That decision space is then something to mull over on what you want to achieve, experience, contribute and leave behind
Disclaimer I’m a mortgage broker so this isn’t financial advice, just general thoughts
Get some hobbies that involve actively doing, learning or creating something rather than passively experiencing stuff you pay other people for? Surely you have some interests or curiosities?
Or maybe just build a giant money tank to roll around in like Scrooge McDuck?
Edit: sorry that came out a bit snarkier than I intended – don’t take it as a dig.
Give time to yourself! You have worked enough all your life to get to this point. Since you are so well set up, and gained life skills and experience, you could mentor others or young graduates those who have no one to guide them! Also pick up hobbies, exercise, spoil your wife and kids, travel!
Man I am 42, I will have no debt at 58 all going well. I don’t earn as much as you. The kids and grandkids should only get a debt free house to split. I want to spend the money I have earned on me and my partner, doing stuff we enjoy. My parents retired at 58, Nurse and engineer. They always aimed to be mortgage free and have savings. I have been mimicking the same strategy, it’s working for me. They will leave with no debt and me and my siblings will split the house. At your age they were in a camper circumnavigating Australia for 2 years, not ticking up at house for me and my kids to inherit. I want to be them, not you, sorry if that sounds a little harsh.
What was your decision-making (in terms of returns) process on the rental purchase?
$300k deposit on a $1.6m rental Top up mortgage by $1k/week
Pay for the advice of an actual professional.
Cash up and live life you only have one.
Find Religion, give all your belongings away and become one with God. Or Just have a Good Time and whatever you do Enjoy. I’d do the last one.
I have thought about this a lot. Though I’m no where close to your financial position but have age on my side to get there by your age.
I know Maslow gets memed but there is some truth to the pyramid. Altruism does help.
After a point financial security or wealth doesn’t add to your mental wellbeing. Material wealth or products only give you short term joy.
Doing something with purpose fills that gap.
Questions:
What am I passionate about?
Could be a social cause, or learning a musical instrument you never got around to, singing, cruises, experiences like travel, adventure…so much out there.
Learn a new thing completely unrelated to your field.
I read somewhere that the brain while learning new stuff literally creates new pathways inside, and that creates joy.
Does giving back give me joy?
Help some young person with a small donation towards a higher degree that might set them up for life.
Put solar panels on someone else’s home who could do with the savings.
When you travel, combine it with a study of their local issues, can you help some promising family doing great work but needs some help financially or in other ways.
Mentor.
With your business experience and what you have achieved it would be a waste not to inspire a young entrepreneur with that wealth of knowledge. Doesn’t have to be monetary help always. As they succeed you have created long term goodwill. Feels great inside.
Hope this helps you come up with some ideas to enjoy your financial security a bit more.
Help and contribute to those less fortunate? I guess that’s anti-personal finance for sure… but what if that brings you more satisfaction and feels than trying to get fulfilled by money and materials? Maybe pick a specific group of people to help that personally appeals?