What is your net worth? 1,800,000
At what age did you become a net worth millionaire? 50
How did you accumulate your net worth, what are you invested in? Auckland section with house bought in 1986 for $112,000 (with a 22% interest rate) and a mortgage of $50,000. As interest rates dropped I left repayments the same and paid it off in 15 years. Estimated worth now is $1,600,000. I have no other property.
Been in share market and few cash investments since 1972.
RULE NUMBER ONE, and I repeat RULE NUMBER ONE is to COMPOUND ALL returns no matter how small. Can be done by a separate high interest account or in the case of shares, I have predominantly had individual shares and I ALWAYS join the DRP, (dividend reinvestment plan) if available. These days the cash type returns can be direct credited to this account.
RULE NUMBER TWO, develop a very disciplined rule on how the high interest account is going to be worked, i.e. when XXXX dollars is accumulated buy more shares, perhaps bonds etc. The LAST RESORT is to spend it on a non wealth improving thing.
What was your highest average household WEEKLY income after tax? Self employed so Bugger All! Some weeks back in the mid 2000's my wealth increased more than the weekly income.
Do you have children? NO
Do you have a tertiary qualification? NO
Did you inherit any of your money? NO
What's the approximate value of your house? $1,600,000
Are you debt free now? YES
Are you in KiwiSaver? NO
Were you taught about money? NO
What is the most enjoyable thing you do with money? Used to be to watch it grow, now retired (aged 72) I can see the dollars will out live me so here we go to loosen the mindset and spend more.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Now retired starting to assist others as the overdue tasks around the home are knocked off. I help Women's Refuge, Kiwi Harvest and local kids with their toys etc.
What is your greatest financial win? Investment in a2 Milk @ average of 62 cents. Total return to date, cashed up $61,620.38 and currently showing $55,801.02 if sold today. There have been many others of FAR LESSER gains.
What is your worst financial mistake? Several NZ shares at the moment plus some AUSSIE ones. I tend to hold and hope and sometimes they do break even and move on up. Current portfolio of NZ and Aussies shares, direct investment ones are running at 21.4% return. Our joint portfolio of direct shares is around $216,000 showing a 62.00% return. Yes, less risk with the shared money.
What advice do you have for others? Read, read and read including that girl's The Happy Saver blog (Ha, yeah that would be ME, Ruth😆).
Set a disciplined attitude, or have assistance to develop one. If RULE NUMBER ONE is followed one will be surprised to see the accumulated total after just a year. Be in KiwiSaver and if comfortable, other forms of investments. History says shares are hard to beat. UNDERSTAND that what GOES DOWN will come up; don't panic. I have a high risk factor and a non lavish lifestyle, so not really a good teacher.
What is the point of having a net worth above $1,000,000. What does it mean to you? It’s just a target. What is important for investors is to have a plan to suit their time horizon.
Finish these sentences:
If you want to build wealth do this… Pay off the mortgage, if there is one, DON'T create DEBT that can't be paid off with a plan and start RULE NUMBER ONE, like yesterday!
If you want to build wealth avoid doing this… Undisciplined spending.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Hopefully the above comments cover my attitude to wealth improving.