What are the strategies I can use to get the most out of my portfolio?

Once you have the assets, there are 2 routes you can use in this stage. You can either:

#1 The nest egg strategy

Sell your assets to live a richer retirement

Generally this is the more affordable of the two. You don’t need as many assets to take this strategy.

Here, you sell your investment properties, put the money in the bank or a low risk fund, and you live off the principal.

That means that over time your assets will go down. But that’s OK. If you’ve set the length of your race correctly, you should have enough until you reach heaven’s pearly gates.

#2 The golden goose strategy

Hold your assets to live on a permanent passive income.

This strategy is not as common but it is arguably more desirable. That’s because under the Golden Goose strategy you can live forever and you won’t run out of money.

Instead of living off the money, this strategy sees you sell your properties, and then invest in high yielding investments with very low debt on them. The rental income then funds your lifestyle forever.

In other words, although you change the properties you invest in, you still hold on to your assets, which then produce a permanent passive income.

Which stage am I in?

This article is just a basic outline of the three stages of an investor’s journey. There is a lot more to each of these steps.

The first step you need to take is determining which stage you are in. Because once you’ve figured out where you are now, you can clearly see what you need to focus on.

I’m in, what’s the next step

Once you have figured out which stage you are in, the next step is simple. You need to stay focussed on doing what’s required to get to the next stage.

If you are at the starting blocks, it’s time to get your first home. Once you’ve got your first home, focus on increasing your equity by paying off debt or renovating.

Once you’re running the race, your goal is to build wealth. So focus on buying growth properties, which tend to increase in value fastest.

Once you get to crossing the finish line, sell your properties and either invest in a low-risk fund or invest in high yield properties to build a passive income.

Laine 3 001

Laine Moger

Journalist and Property Educator, holds a Bachelor of Communication (Honours) from Massey University.

Laine Moger, a seasoned Journalist and Property Educator holds a Bachelor of Communications (Honours) from Massey University and a Diploma of Journalism from the London School of Journalism. She has been an integral part of the Opes team for four years, crafting content for our website, newsletter, and external columns, as well as contributing to Informed Investor and NZ Property Investor.

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