What you need per week in retirement?
Years until you retire
Total needed to retire based on figures above*
$0
What you will need in
0 Years
(To be equivalent to today's dollars)
$0
this is how much you’ll need to save and/or get in growth per year to achieve your retirement goal
Knowing How Much You Need
DPN’s retirement calculator is a simple tool that illustrates what you need to have in investments to draw the income you need, above and beyond your home. For some, that can be sooner than the retirement age of 65, whilst others need as much time as possible to allow their investments to grow.
Most people work to generate an income to live off now. The aim is to create a portfolio large enough to draw the income you need, which won’t require your personal efforts, in the future.
Whilst you are earning an income now, it’s smart to invest and build a portfolio, then at the right time, to swap places and have your portfolio pay you an income.
Once you play around with calculator, you might scare yourself on how much you may actually need. You’ll quickly realize that the yearly amount required may be beyond your means or even more than your annual household income. It may seem impossible based on what you can save now or what your employer is putting into super. You also realize the longer you leave things, the harder it gets.
Depending on what you have, how long you have and what you earn, DPN can show you how to accomplish your target by investing in property.
Wealth Through Property Accumulation
Just saving money into a bank account and relying on super contributions is probably not enough for most people’s desired retirement income. By leveraging/gearing property (borrowing to invest), you can accelerate the returns you need to grow your investments by. This allows you to make a return on the total value of the property, which includes your deposit and the money the bank has lent you. Over time you can considerably increase the average growth each year as you add properties to your portfolio, at a pace you can handle of course. This is compounded the longer you hold your properties and how many you hold.
Find out if it can work for you
DPN can provide you with a Property Accumulation Analysis which is a detailed report that illustrates your current position, what you need to get and a variety of scenarios that show you how what you can do. The scenarios can illustrate where you will be with no investment properties or what your position may look like after multiple purchases. It will also illustrate your current property loan commitments and any new investment property loans, along with all the costs associated with the properties. This way you can have a clear idea of your capacity and costs upfront before you dive in and buy an investment property. It will also show you the impact over time and how much you need to buy to make it work.
DPN can then also show what properties are best suited to achieve that objective through our proven research based methodology, which we have used since 1995. Property Valet is the smart & sound way to get investment properties home delivered.
Assumptions & Disclaimer
- Retirement Income is based on a 4% net return (after taxes & expenses)
- Inflation is calculated at 3% per annum, compound
- No consideration has been made for current investment assets
Disclaimer: This calculation is an illustration only and not to be construed as financial advice, or an inducement to invest. It is only a guide to show the possible amount you may need in retirement. It does not take into account your personal circumstances or goals. Independent legal and tax advice is recommended. All illustrations are subject to changes in inflation, tax laws, investment returns and the assumptions made.
