What is your net worth? $4,800,000
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? 40
What region of New Zealand do you live in? Bay of Plenty
How did you accumulate your net worth, what are you invested in? Investment properties. We have held one investment property for over 20 years, being a block of flats in central Auckland on a full site. We also own one other investment property in the BOP. We sold one investment property which was an exceptional purchase, to pay off our home mortgage and reinvest in another property. We also cashed out of retirement savings to pay off a mortgage earlier. We also have a share portfolio and are both in KiwiSaver.
What was your highest average household WEEKLY income after tax? $4,000
What is your career? Management Consultant and Operations Manager
Do you have children? YES
Do you have a tertiary qualification? YES
Did you inherit any of your money? YES
If YES, how much did you inherit? $30,000 when we were 30 years old. We used this towards a deposit for our first home.
What's the approximate value of your house? $2,500,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $1,500,000. Debt on our investment properties only.
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Self-learning. Read books, took free seminars wherever possible, and asked people who had wealth what they did.
What is the most enjoyable thing you do with money? Have fun as a family. Help our children with study and now deposit for home. Travel.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. We have lent money to both sets of parents who are retired and need some support. We have helped our children with their study fees. We donate monthly to several charities.
What is your greatest financial win? An investment property we bought for $900,000 and sold for $1.7m after three years. It was intended to be a long-term purchase, but the uplift gave us the ability to make life-changing decisions, including renovating our home and not having to get a mortgage, and become work optional. One of us works part-time, the other permanent, but through choice.
What is your worst financial mistake? Probably cashing out of retirement savings to pay off mortgage. But equally, not having the pressure of a mortgage has been freeing and life-changing, so it's hard to call it a mistake. Financial freedom and no mortgage is such a great feeling.
What advice do you have for others? Pay off your mortgage. Invest early and often. Don't listen to all the gloom all the time. Every cloud has a silver lining. Do your sums, always do your sums and be ready to act when you have done your homework on an investment. Knowledge is power. Especially with investment property. It's a business, not a heart purchase, every time. Don't overspend on things that don't matter. Material things are not important. Every time values go down, and inflation goes up, it will turn. This is also an opportunity to invest as most people lose confidence at these times, so this is the time to take action. But do your sums.
What is the point of having a net worth above $1,000,000. What does it mean to you? Options, Choice, Freedom. Not having to work full time, knowing you have enough money to retire and enjoy life.
Finish these sentences:
If you want to build wealth do this: Invest every month. Read and learn about investing, never stop. Don't listen to all the negative, do your sums and know where your own situation is at. Make sure you have a sufficient emergency fund to support any movement or change.
If you want to build wealth avoid doing this: Not fully research what you are investing in. Knowledge is power. Don't chase fly-by-night opportunities - if it's too good to be true, it probably is.