Ben considers replacing your salary or part thereof with investments to be the very definition of financial freedom – and who doesn’t want to achieve that!?
The ability to work out of choice and not necessity would certainly make Monday mornings feel a lot better! But how do you do that?
Ben explains:
Key call out
You ‘should’ be able to draw 5 per cent of your portfolio of assets without it impacting the capital. For example, if you have 1 million dollars invested (in shares) it should generate you an income of around 50k in 12 months and continue to generate the same level of income as time goes on.
Make sure you hit the Moneysmart website and check out their goal calculators to get you to where you want to be faster!
What would your investments look like?
Ben talks in detail about a diversified share portfolio that pays dividends. This is important as Australian shares have the ‘added advantage’ that dividends are typically paid with franking credits attached to them which means tax is already being paid on the company profits which you, as a shareholder receive tax credits for the tax that’s been paid – the ATO will not tax you twice which overall means the tax will end up being lower on the income you receive.
Ben Nash. Financial Adviser and the founder of Pivot Wealth, helping people invest smarter so they can create a life not limited by money.
He runs regular live online events which you can check out here. | Follow Ben on TikTok | Linkedin | Instagram | Facebook
Pre-order Ben's book, ‘Replace your salary by investing’ today!
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.
