What is your net worth? $2,600,000
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? Approx. 8 years ago
What region of New Zealand do you live in? Otago
How did you accumulate your net worth, what are you invested in? Started with a $50,000 capital base from the sale of a bach, and used this to leverage into rental property.
What was your highest average household WEEKLY income after tax? $2,500 for my partner and I combined.
What is your career? Accounting and finance roles
Do you have children? YES
Do you have a tertiary qualification? YES
Did you inherit any of your money? NO
What's the approximate value of your house? $950,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $50,000 to go on our home mortgage. $274,000 remaining on rentals. Currently selling down rentals to remove all debt and invest in ETFs for retirement.
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? My Dad was very entrepreneurial and built a good business over 10 years or so. Then due to his money management skills and some bad luck the business ran out of money and all the fallout that can come from that. I learnt that you need a plan.
What is the most enjoyable thing you do with money? Love being social, having funds to travel or go to events that we both enjoy. Take pleasure in having a comfortable home.
Do you use your money or your time to help others? NO
What is your greatest financial win? Purchased a small batch for $20,000 in early 2000s then a couple of years later got an offer to sell it for $50,000, after hardly using it and I had paid off the initial $20,000. Left me with $50,000 to invest!
What is your worst financial mistake? Bought a business with my partner and learned we were not great business partners!
What advice do you have for others? Start early; balance the saving and the spending. Time will see you get to where you are planning to get to. Keep reviewing your plan and be aware of what your money is doing. We only bought our first rental in 2012 - 17 years before retirement, I think we have been lucky and have been able to leverage off fully paid off home and our rentals increasing in value. I believe it would be harder to build that same wealth now, using property, with lending rules etc. In 2012 I had no knowledge of ETFs.
What is the point of having a net worth above $1,000,000. What does it mean to you? Security is a key thing for me after seeing my parents struggle through their retirement. It could have been better for them if they (my Dad) had taken less risks. Also, having flexibility to do as you choose; we are very close to retirement - hence the sell down of our investment portfolio and just working through how to manage funds from here; strongly considering ETFs - hence listening to your podcasts and reading your blog.
Finish these sentences:
If you want to build wealth do this… Save, there will be no free lunch; no matter which way you choose to build your wealth, it will take sacrifices at times. It can be done, I am surprised at how much we have accumulated, as it was a pretty loose plan to start with and over time I have sought more info and honed our plans.
If you want to build wealth avoid doing this… Spending everything and tying yourself up with consumer debt. Be awake to what a student loan can cost.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: We are both in a second relationship that has somehow lasted 28 years, with five kids between us, all now in their 30s. We are both still working full-time and looking forward to scaling back work and having no rentals, cos they are quite a bit of work.