Another reason many people struggle financially in retirement is that they wait too long to begin investing. Or more often, their only investment outside of paying off their own home is superannuation. Waiting longer, in my opinion, makes the process risky because you need to accumulate properties more quickly and you need more of them (and, therefore, greater debt) to achieve the same outcome you would have if you had started earlier.

Generally, people feel that it is safer to invest when their home loan is fully paid off. The problem with that is that they start their investment process much later, so there is much less time for them to see capital growth.

Investing shouldn’t be stressful; it should make you feel less stress because you know you are building a foundation for your future. Roughly 8% of Australians own at least one investment property; however, less than 0.5% own three or more. I think this is mainly because people start too late. It is also because they choose the wrong sorts of older properties that have high out of pocket costs and are expensive to hold onto, which are not the kind I like investing in. And if you really don’t want to end up broke and relying on the Aged Pension, the first thing to look at is the home loan you have right now.