What is your net worth? Hmmm....jointly held with spouse and of the order of $3,500,000+
At what age did you become a net worth millionaire? Probably about 54-55 but possibly earlier (see below)
How did you accumulate your net worth, what are you invested in? More complicated than not - consistently invested in both property (to live in) and savings schemes in the UK including Friendly Societies, endowment mortgages, TESSA, PEPs, ISA's, privatisation of public utilities - culminating prior to emigrating to NZ in a home worth around $600K and about $300K in ETFs and investment trusts plus saving into occupational pensions with the NHS for decades.
What was your highest average household WEEKLY income after tax? $3,000 (converted from UK annual salary a decade ago - currently on $1,700)
What is your career? Hospital pharmacist
Do you have children? NO
Do you have a tertiary qualification? YES
Did you inherit any of your money? NO
What's the approximate value of your house? $1,400,000
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? Count it like Smaug...bwahahahaha....! Well, no, but we do enjoy living comfortably without worry - able to afford breakfast out on a Saturday, an annual trip to the UK (aging relatives) and the odd take away and, this time of year, keeping the home toasty!
Do you use your money or your time to help others? YES
What is your greatest financial win? Being in the UK the NHS pension scheme. (Oh, I did a lot of other sensible things but this was the biggest gain - and would be in the UK - basically an index linked government bond income for life after age 61).
What is your worst financial mistake? Taking out a car loan.
What advice do you have for others? Start investing early, start investing small, pay your future self first and invest in the stock market.
What is the point of having a net worth above $1,000,000. What does it mean to you? The ability to say “FU” to an employer, to be financially independent and unworried (ish) about the future.
Finish these sentences:
If you want to build wealth do this… Start early, start small, pay your future self first and invest in the stock market in low cost index funds.
If you want to build wealth avoid doing this… Buying new cars, taking out loans or credit card debt, be aware that interest rates hit 17-18% in everyone's lifetime so avoid maxing out mortgage loans and think Mr Micawber (from Charles Dicken’s novel).
If these questions don’t adequately tell your story, feel free to briefly elaborate here: We emigrated to NZ from the UK nigh on 10 years ago having paid off our house mortgage (just before interest rates collapsed in 2008-9. Bugger), in a high paying job in the UK NHS, but looking for a better lifestyle. Sold our UK house (for 300K sterling) and liquidated UK assets (about $150K sterling in UK ISA's) to build a house in NZ. So, no mortgage needed although we have a draw-down facility which was used on occasion to smooth payments.
Transferred UK NHS pensions before it was stopped - mine was worth above $1,000,000, spouse about half that, in to QROPs some years ago and have benefited from the bull market. It is now available to us as we are >55 as basically an investment in stocks and shares managed through a financial advisor. We are aware that this is more expensive than self management but given that the management fees are tax deductible this is less of an issue than it could be.
Although I'd be happy self managing I'm not convinced the platforms available to the retail investor in NZ are anywhere near as sophisticated as those I used in the UK a decade ago. Or as cost effective.
Don't get me started on the inequity of FDR.
The NHS UK pension took 6% of our pre-tax salary over 30 years plus employers contribution and would have been paid as defined benefit at age 61. Much angst over whether this was - or will be - a sensible thing to have done (currency risk, UK government guarantee/interference, differential inflation between UK and NZ).
We should be eligible for either UK or NZ pensions age 67/65 respectively - although the UK pension will be paid in to NZ Government to offset NZ pension (few people seem aware that the UK taxpayer is funding super in NZ. Probably other countries too...)
Our plan is to retire early (60?), keep paying into KiwiSaver but use funds to live and enjoy NZ lifestyle and downsize when necessary age 75+ to help fund retirement.
Spouse is retired and I am working because I enjoy the work - although I’m considering going part time.
Thanks for the invite to share!