I am a 45 year old nurse who earns about $ 120,000 per year, living expenses of $ 27,000 and a retirement pension of about $ 213,000. I used to sacrifice to the max but quit for the past three years, since filing for bankruptcy in February 2019, due to a disastrous real estate investment in the mining town of Newman , in Western Australia. I will be released from bankruptcy in February 2022. After my discharge at age 46, I plan to buy a house for around $ 650,000 with a cash deposit of $ 140,000. I wonder if I should keep sacrificing my salary up to a maximum of $ 27,500 per year, or should I focus on paying off my mortgage in full? I plan to pay it off in 6.5 years, earning around $ 150,000 as of July 2022. I am single and have no children. After I pay off my mortgage at age 53, I will finally be able to stop working nights and my income will drop to $ 95,000 a year. I plan to retire at 60, when I am still healthy. LL

I’ve always set two main goals for myself in retirement: quitting working with a fully paid house and enough super cash to produce the tax-free income you need for your living expenses. It’s hard to start from scratch – and not always possible.

Real estate prices in Newman exploded before losing as much as 80 percent of their value.Credit:Krystle Wright

Ultimately, if both goals cannot be achieved, there is still the old age pension safety net. That’s why I suggest prioritizing paying off your mortgage before sacrificing your paycheck to top up your employer’s 10 percent super premium.

This is sad news for your bankruptcy.

I know housing prices in mining towns peaked in 2011-2012 during the mining boom. An ABC report indicates that median house prices in Pilbara subsequently fell by more than 80 percent as the boom worsened.

It’s a good lesson that buying investment property during boom times can be risky, even though prices in Newman have since risen.

I’m 46 years old, I earn $ 190,000 a year, and my wife, 47, works four days a week and earns $ 120,000. We are both in relatively good health and have two children aged 11 and 9, who are expected to attend private high schools at a cost of $ 40,000 per year each in 2023 and 2025, respectively. We own our home valued at $ 2.4 million and have $ 955,000 in joint investments, plus $ 556,000 in my super and $ 358,000 in my wife’s. We also have an investment unit valued at $ 450,000 with a mortgage of $ 400,000. Our combined monthly income is $ 17,000. Our monthly expenses are $ 10,000 (excluding private tuition fees). We would like to maintain this lifestyle, or move closer to it, for the rest of our lives, adjusted for future inflation. We have both earned relatively high incomes for most of our working lives and have relatively modest but comfortable lifestyles, putting the needs of our children first. We would both like to retire at 50. Are we on the right track? PL

If you retire at age 50, your wife would have a statistical life expectancy of around 37 years and as always I add five years to that, assuming she is healthy and will live longer. than the average.

If you then plan to spend $ 120,000 a year, indexed at 3% to inflation, you could expect savings of around $ 2.7 million. On top of that, you would spend around $ 500,000 on tuition, plus a lot more on sports, as well as private lessons, and then higher education.