MM50
Multi Millionaire by Age 50. Not just become a millionaire, it’s becoming a multi millionaire. There’s no distinct number. It’s just a status symbol. In the FIRE community, it’s just a community for FI members with similar mindsets. Consider MM50 as a classification. It’s just an idea that I have in mind. Nomad FI. It doesn’t mean anything to the FI Community. However, when I do apply for events or sign up for webinars, I use Nomad FI as my identity. There are FI labels such as Digital Nomads, but my family doesn’t fall under Digital. We’re just Nomads. We relocated to work in another country, and now have dual nationalities. That’s as nomadic as you can get. Consider MM50 as a classification. I’m identifying my family as Nomad FI in MM50. We’re aspiring to become MM50. Create it. Pursue it. Act on it. Become it.
We’re already travelling one overseas trip and one domestic trip annually with the family. However, we still have school obligations for Brandon and still have an outstanding mortgage to pay. Age 50 would be a great age range to have the freedom to do whatever we want to do. Brandon will be in College and then heading into the workforce. We’ll be healthy (hopefully) to travel anywhere in the world without having any responsibilities or any obligations to Brandon as he’ll be self sufficient by that point. Kathy’s in her 40’s and these are her peak earning years. Still young enough to not be considered age discrimination in the workforce. People who are middle aged and in their 60’s look miserable here so no thanks. 50’s is my target.
For MM50, there are many factors when becoming a multi millionaire. First would be the proper tax structures and utilizing the most efficient tax strategies, and second would be type of investments when building the portfolio. Focusing on these two factors would be essential to become a MM. Goal is to become MM as working professionals and savvy investors. Entrepreneurs and business owners are in a different league as their tax structures are primarily based on business income and deductions. As working professionals, they would have less incentives and opportunities for deductions. The marginal tax rates and income range are no joke in Australia, so utilizing tax strategies are essential when building and accumulating wealth.
In short, I’ll list a few tax strategies we’re utilizing currently. Kathy’s a working professional and her estimated MRT is around 30%. I’m a share trader, but none as per the ATO, and I’m under the MRT 20% range. MRT 0% is at 18.2K. Trading commissions are included as part of the cost basis. LITO is 700 under 37.5K. Capital losses can be carried forward. Realized gains are taxed. Dividends are taxed. Franking Credits are included as assessable income. Tax filing are individually. Spousal Contribution to Super can claim a tax offset up to 540 per year. Concessional cap to Super is 27.5K, and next year is 30K. SG is 11%, and next year is 11.5%. Super is taxed at fixed 15%. Bonuses are taxed at 50%. Salary Sacrificing salary saves 15%, and salary sacrificing from bonus saves 30% in taxes. Non-concessional cap is up to 120K. ING Offset Account current mortgage interest rate is at 6.79%. We own our home and don’t pay rent, so any funds in the ING Offset account will reduce our interest payables. Medicare Levy is 2% of our taxable income, and can be offset by franking credits. No surcharge as we both have private insurance. Increase in property value and increase in stock prices aren’t taxed as they’re both unrealized gains.
I’ll consider building a MM50 Dashboard for next year. Would need to lay out the UI and create the panes and widgets showing the summaries. Would also need to identify the source data through automation, showing transparent details, and updating the Dashboard with minimal effort. Excel based only. I’m not a coder and don’t plan to be for multi users as this would require a lot of coding experience and maintenance and not worth the ROI in the long term. Excel does it’s job as a spreadsheet power tool, and easy to update reports once automated.
