How should we organize our finances to effectively plan and prepare for an retirement in next 10 years ?.
My personal details are:
- Age 35, married with a 3 year old daughter
- IT consultant with a masters degree, gross salary around 180K
- Owns my family home (purchased for 430k, worth 620K now, no outstanding loan on it)
- Has an investment property (purchased for 422k, worth 510k now, 290K loan remaining, and current rent 450/week covers all expenses)
- Has another investment property (purchased for 520k, worth 650k now, with a 480k loan remaining, and current rent 500/week covers all expenses)
- Has 150K in superannuation (pension fund/retirement fund, accessible only after the age of 60).
- No credit card debts or other loans
- Have a 10 year old car with no loan ( bought it 6 years back for 17k)
- Has life/trauma/income-protection insurance with a premium of $250/month
- Never purchsed any stocks/shares yet as there was no one to direct in that area
My wife's details are:
- Age 30
- IT consultant with masters degree, earns gross salary 120k
- Has an investment property (purchased for 500k, worth 650k now, 300k loan remaining, current rent of 590/week covers all expenses)
- Has given 20k deposit for a 378k block of land
- Has 70k in a compulsory supperannuation fund (pension fund ,accessible only after the age of 60)
Our main expenses are:
- 16.5K/year for daughters child care
- 7K/year for overseas trip to visit parents/family
- 500/month for bus, petrol, car
- 350/month for mobile phones, internet, electricity,gas
- 300/month insurance payments
- 1500/month for groceries/baby items/restaurents
- 200/month for cloths/ online shopping etc
- 200/month for coffee
Total expenses are : around 60k
- After tax, expenses and superannuation deductions I get 10K
- After tax, expenses and supperannuation dedcutions my wife gets 7.5k
Our aim :
- We plan to work for next 10 years and have one more kid. And then plan to start an IT business or something else. Current work is very hectic and want to slow down eventually.
- Educate our daughter in a descent school
- We don't live frugal, we enjoy descent pleasures and we do travel every year to meet family
1) Are we on the right track ?
2) Are we doing any mistakes which we could have avoided ?
3) Please advice if there is something that we should focus more into !
4) What should we do to prepare for a comfortable retirement and saftey