[Podcast] How do you fund your retirement using a property portfolio in today’s financial environment, with Stuart Wemyss

Why are you investing in property? Or why do you want to get involved in property investment?

It’s not really for the properties, is it?

For some people, it’s because they want to fund their retirement, while for others it’s that they want more choices in life – they don’t particularly want to retire, but they want to work when and how they want to work and because they want to go to work, not because they have to. 

However, the inconvenient truth is that despite over 2.1 million Australians investing in property, 92% of them never get past one or two properties in the portfolio, meaning they won’t be able to fund their retirement.

So, is it really possible to live off your property portfolio in the current economic climate and in our more challenging finance environment?

The answer is… the rules of finance have changed considerably and how one funds the longest holiday you’re ever going to have – your retirement – is very different from how you would have structured it many years ago.

And that’s what we discuss today in my chat with financial advisor Stuart Wemyss.

At the end of today’s podcast, you’ll have more clarity on how to successfully live off your property portfolio.

And I’m sure you won’t be surprised if I tell you it’s not what most people would recommend.

Funding your retirement from property investment

More and more Australians are looking at property investment as a form of taking control of their financial futures.

Yet some people seem to be questioning the ability to really fund a reasonable retirement through property investment.

So, today I’m going to have a chat with Stuart Wemyss, to get an understanding of how to fund the longest holiday you’ll ever have – your retirement.

Many years ago, I was introduced to the concept of living off the increasing equity of your properties, but that really isn’t possible in the current lending environment.

In fact, it’s changed since the global financial crisis.

So you’ll have to build an investment portfolio that will allow for a great retirement.

Stuart and I discuss

• The importance of building an asset base.
• How does one structure a portfolio?
• So many unknowns for the future
• Must account for taxes
• What about interest rates – will they remain low
• it is best to acquire a combination of investment assets i.e. some property, some shares (hopefully in super), and some cash by the time you reach retirement. It is not necessary to acquire these assets equally each year. People who insist on “property, property, property” or “shares, shares, shares” are probably biased.
• It’s OK to take a level of debt into retirement if you can comfortably service it.
• Borrowing to invest is typically a good wealth accumulation strategy as long as you do it prudently and adopt a proven methodology to select quality investments.
• If used wisely, debt can be a very effective tool. However, whilst your investment strategy will require you to get into debt, the strategy must also articulate how you will get out of debt (i.e. repay it).

Links and Resources:

Michael Yardney

Metropole’s Strategic Property Plan – to help both beginning and experienced investors

Join us at Wealth Retreat 2021 on the Gold Coast June 12th – 16th – get more details here

Stuart Wemyss – Prosolution Private Clients

Stuart’s Book – Rules of the Lending Game

Some of our favourite quotes from the show:

“We don’t know what the rules are going to be when you retire in the future.” – Michael Yardney

“To get the results most of us are looking for, you need a plan. You need a strategic financial plan.” – Michael Yardney

“Your wealth operating system is what connects your inner self, your thoughts and your feelings, with the outer world.” – Michael Yardney

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