I reckon if I didn't have to pay rent, 65k a year would be enough to live pretty comfortably.
That would mean I would need to buy a house that I could rent out for 5500 francs a month...hmmm.
Actually maybe then I need to rent out 2 smaller houses.
I'm not sure, if I wasn't paying rent, that I would need 100,000 a year.
loads. one guy i knows sells ebooks. another sells computer software he writes. i sell electronic gizmos online. another business i discussed with friends was 'cash for gold' type schemes, we didn't go ahead with it but there are loads of these now (raking it in too!). the possibilities are endless.
the trick is to know what your skills are. i'm good with computers/gadgets so i can easily create my own money making websites on the cheap. i know another guy who sunk £40k in hiring programmers etc. to write a website for him based on the worst business plan i've ever heard, which is clearly not the way to do things.
my personal view is to think small and start small. you can think big and plan big, but while these kinds of projects can make millions - it will also be a full time job and require huge investments of time (if not money).
yes. i was very tempted to get a very secure semi-government job because it had a double-gold plated pension scheme which would have me living in luxury the day i retired. (un)fortunately, the job was in a really sleepy town and i decided i wanted to live now.
Alternatively live the sort of spendthrift hedonistic lifestyle that will ensure you enjoy life now and die early, before the cash runs out
Fortunately there are a few private sector companies in Switzerland based in relatively awake cities that still offer double-gold plated pension schemes for jobs that are very invigorating and fulfilling.
Planthead,
I consider my job the most important asset I have (whether I like it or not is a different discussion....).
The main component of my ticket to an early retirement (or at least I am hoping so!) is the interest compound on my earnings (i.e. savings from my job).
Let's say you are 27 years now and you save 15% of your salary -assuming a decent salary which also increases on real terms every year, this is the key part...-, with an average return on your investments before retirement of 6%, you have a pretty good chance to have a decent amount to retire when you hit your mid 50s (obviously if you want to retire when you are in your forties, then follow the others' advice and set up your own business).
Please note that this will combine with other assets you build during these years, such as the house you might buy, a few extra savings in pension, the occasional bonus, etc.
No magic in there, just pure patience and discipline.
One possibility is to setup one or more shopping cart websites selling something. eBooks and software (already mentioned) require no inventory or shipping. A drop-ship arrangement with the manufacturer is another option. Otherwise the right balance has to be struck between profitability, adequate space for maintaining inventory, and having the time for filling orders at least a few days per week.
A few years ago, I started a site along the lines of that last option. It began with a very slow trickle, but has since grown into a part-time job for one of my children (who gets paid to fill the orders daily) and some steady rewards for me.
hmm. would be interested to hear more of this...
Okay, here's more...
I just picked a few related products for which I thought a growing market might exist, and actually invested in producing (screen-printing) one item myself. At first it looked like I was wrong, but things changed.
Whether it qualifies as a business plan is a matter of opinion, but it's a reproducible model: 1) Identify or "invent" a product (or collection of products) for which you perceive a demand (or potential demand); 2) be willing to risk some time and money to test the hypothesis; 3) establish relationships with the appropriate suppliers; 4) set up the channel for marketing/selling it.
As far as websites go, things like search engine optimization as well as paid ads with Google, etc., can increase exposure and sales. The product line itself will determine how much up-front investment is necessary for inventory.
I should point out that, while my background has been related to advertising and marketing, I hardly qualify as an expert. Point being, I don't think one needs an MBA to make something like this work.
from what i remember, you're not in CH anymore. shame, would be interesting to discuss it. i did something very similar. bought a load of inventory (not usually a good thing to do, but i should have trusted my instinct and bought more) and then started flogging online.
did SEO, google ads etc. too. though i since dropped the google ads once i got a high enough natural ranking. my sister now does the order fulfillment
was thinking of doing something similar for intangible products as then it will be fully automated and will require no human supervision to run.
I would love to be 27 and where are you investing to get a guaranteed 6% return.
We might still get a chance to do so. I was there twice last year, and would like to return for a visit this year. Meanwhile there's always email and EF. I'd like to start something similar in CH if I can swing it, as I hope to live and work there eventually.
Sounds like I didn't tell you anything you didn't already know then.
That makes plenty of sense — IMHO all you need is a good idea. A lot of people are doing it, and some are making good money.
would be cool if you are around to chat. it's always interesting to hear what other people have done, what their sector is and the little things they did. e.g. i started with a core product then maximised profits by bundling accessories etc. and then i also had to manoeuvre against competitors etc.
Stocks. AsiaPac stocks. And mutual funds. None guaranteed but in the longer term that is what I have been getting (I would have been much more except for the big hit I took in 2008-first half of 2009).
Real estate. I am semi retired. I built up little by little buying and selling residential real estate on the side.
There is definitely a migration from baby boomers retiring from north eastern states to the south that you can take advantage of (the retirees usually buy but they create jobs in the area for workers that most likely rent). Make sure that the rent in a particular area gives you a descent return. Just don't buy in Las Vegas, California, or Arizona like so many investors that didn't think. I have not been affected by the real estate bust.
What about selling via Ebay for example as an alternative to running my own shopping cart website?
Would you guys have any advice there?
Stocks and shares are a real blind spot for me, could you give me some tips on how I can start learning a bit more..e.g. I am currently looking up what AsiaPac Stocks and mutual funds actually are.
ebay would be an easy way to start selling. but make sure you know the fees. ebay + paypal can eat into your margins.
For us it will have to be a combination of things but mostly it will be done using real estate.
IMHO Mortgages don't need to be paid off, we just need to collect more rent than the mortgage repayment.
Over time the rents will increase (keeping up with inflation) but the mortgage repayments remain the same so one day the rent will more than cover the repayment and you'll start making money.
If you have secured a number of such properties you can let them work for you in the background until such time when they provide sufficient income for you to retire.
This is our plan anyway and we hope to retire at 55 which is not very early but it's better than the 70 years our governments have in mind....
I agree. You do have to be patient. It took me 15 years to build my real estate portfolio that now brings me enough revenue to retire.
I never looked for bargains (like foreclosures in dodgy neighborhoods). I always bought properties in good neighborhoods with good public schools.
The advantage with residential real estate is that you can always lower the price enough to get tenants.
Commercial real estate is more difficult. You can have space sitting empty for years depending on the economy.