What is your net worth? $4,500,000
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? 46
What region of New Zealand do you live in? Auckland
How did you accumulate your net worth, what are you invested in?: Mortgage-free home. Share investments and managed wealth fund. KiwiSaver.
What was your highest average household WEEKLY income after tax? $4,500
What is your career? General Manager
Do you have children? YES
Do you have a tertiary qualification? NO
Did you inherit any of your money? NO
What's the approximate value of your house? $1,800,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? NO
What is the most enjoyable thing you do with money? Travel and prepare for FIRE (financial independence retire early) if we can.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. We have helped both of our children buy first homes and paid for their University study. However they had to pass, if they failed a subject they paid themselves. We had been saving for this most of their schooling and it was for tuition or further education only. If they wanted to do a trade it could have been used for tools/study etc. Also, if they wanted to study away from home they needed to fund their living expenses. Whilst studying at home there was no board/rent.
What is your greatest financial win? A sizeable investment into a start-up business went well and an eventual sale of this business to a public listed company resulted in a tenfold increase. This gave us a really solid base to start a portfolio with a wealth manager. Now that we are mortgage free we have a monthly stipend that automatically goes to this which is similar to what our mortage payments would have been. The rest goes into savings and we then decide on other investments or other lump sum payments.
What is your worst financial mistake? Buying a brand new car and probably not investing in a rental property when we had the chance 10+ years ago.
What advice do you have for others? Invest what you are comfortable with but you need to start. Don't give up and lock in losses. It is a long-term concept so don't worry about too much volatility. Consider dollar cost averaging and make sure you understand the benefit of compounding interest!
What is the point of having a net worth above $1,000,000. What does it mean to you? A more comfortable future that can be done on our terms and without the stress of working for someone else if we choose not to. We want to make sure we can help our family to be comfortable but also teach them the value of financial literacy and having skin in the game.
Finish these sentences:
If you want to build wealth do this… Commit to learning as much as you can about financial markets and the different investment options. Be vigilant with your expenses, but don't lose sight of having fun along the way. Be prepared to decide on what is more important to you; instant gratification or longer-term stability and choices. We have never liked debt so have avoided it wherever possible (apart from a mortgage). We don't change houses or cars very often and will only buy something like a new TV if we can afford the purchase price. We would avoid hire purchase unless needed for an emergency like a broken fridge or washer etc.
If you want to build wealth avoid doing this… Stop making excuses not to invest. Just start, even if it is a small amount and keep putting in what you can.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: We have been lucky with some investments, but have also worked very hard to build what we have established so far. We enjoy some of the finer things in life, like great wine and food, but are not flashy with wealth. Our goal is to semi-retire in our mid to late 50s to hopefully take advantage of better health, energy and time. We want to keep working in some format, but more on our terms rather than someone else’s. This might mean more time with community or volunteer groups, or even just adding experience to a business that needs it.