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90 Marine Terrace Fremantle, WA, 6160

Insights from a Property Developer on Financial Preparedness for Retirement

Catching up with a wealthy property developer friend of mine recently, we got onto the topic of developing caravan parks.

His folks, nudging their 80’s did all the right things – worked hard, worked smart, took calculated risks and invested along the way.

When they travel the coast searching for secluded spots to chill, fish and surf, from time to time, they will park their gigantic RV Winnebago thing at a caravan park.

So my mate was telling me that his folks have had the exposure to how many retirees live in their twilight years. For some of these people, the twilight is starting at 65, for some 70, but that’s not the point of the story.

Where we got to was the sense of disparity between his folks and the many, many people who, having not been smart with their money during their working lives are now suffering the consequences of their irresponsibility i.e. they took little or no action to create a nest egg sufficient to support them comfortably after the income tap inevitably gets turned off.

Some of the sights they witness are what’s being eaten around them in the caravan parks – things like sharing a sausage roll and a can of baked beans for a meal. Paid for in shrapnel.

Pretty sad isn’t it?

Most of these people have had an income for most of their adult lives yet have not thought ahead to the time when their earned income ends.

They haven’t capitalised on what is on offer in Australia or if they did, they squandered it. They didn’t  take advantage of our System, maybe they let the System take advantage of them – this happens all the time.

They were lazy and neglectful in both thought and action.

Capital – money- flows from the people with no clue to the people who are clued up. From the inattentive to the attentive.

From those who don’t care to those who do.

From those who do the bare minimum to those who work their arses off

These are fundamental, immutable laws of wealth.

I don’t want to come off as arrogant or condescending and I’m sorry if I do. It would be easy to conclude I’m privileged, I’ve had it easy or whatever, but the fact is that whilst I won the ovarian lottery, being born into the family I was, and in this magnificent country, I begun work sweeping the floors of my uncles hardware store from as old as I could lift a broom (about 8 years old) and have worked ever since.

My old man left school at 15 to support his mum and has inspired me not just by what he achieved but by what he had to become to achieve what he did. Mum’s been there for 50 plus years and deserves as much credit for supporting him.

What I’m trying to say is that I speak from experience. That this journey of work, saving, earning, learning, creating, building, supporting, investing, insuring, protecting, caring, being responsible is not an overnight thing and it can be learned by anyone.

Did you ever hear the story of the autistic kid who is in his late teens doing really well for himself with his bin cleaning service? Yep, anyone can do it.

I know only a handful of people who’ve lost money like me, made mistakes like me, been broke and messed up like me. It’s not like you just magically arrive in a place of financial security and even when you do, that’s when the hard work begins – you’ve gotta keep it.

So when you see that huge payday from the mining company, accounting firm, engineering firm, whichever company you work for, or even if you’re paying yourself, the first thing you must do is think about how to get that energy – capital – employed to work for you.

You should have some level of apprehension (and excitement) about the life you’ll be leading when the work ends or you just CBF and need to stop.

Are you getting me?

Especially around Christmas time. Beware. At Garden City last night I saw the mindless hordes give over their hard-earned in exchange for future landfill. Trust me – we don’t need presents (although they can be nice) we need more quality time and real love shared between our family and friends, not a $75 T2 coffee cup set with cats on them.

Be smart. Be prepared. And remember this: “ants think about winter all summer”.

Get it in your head: A mortgage is the single biggest wealth-suck in your life. No other financial instrument sucks more money out of your household than the interest paid on your home loan.

Get rid of it. Own your home, not a loan. Then get straight onto investing, quicksmart, if not at the same time.

Don’t you want to be eating dhufish, roasted baby potatoes and fennel salad in your retirement?

Speak to me at no cost for a short, sharp 10-min intro call. Our team takes a wealth-focussed view of loans and will advise you on what to do with what you’ve got (or about to get) so you can move ahead. Book a call now.


Brodie Brown

BH Brown Mortgagre Broker