As many people in Australia are now technically becoming millionaires through residential housing ownership. Although they have an expensive asset, they cannot use that to generate an income unless they rent out rooms, this is something that most families do not wish to do and this is understandable. A millionaire in investable assets is the definition for me, this is difficult for most individuals and families as their income is poured into their mortgage.

Ok, so what is the difference? Well, I consider a net invested millionaire is a million dollars in investments that excludes the primary residence. This excludes liabilities such as vehicles, boats, motor bikes, jet ski, holiday homes, furniture, whitegoods, computer equipment, home entertainment, and other non-income producing belongings.

The depreciation on vehicles, whitegoods, computers and home entertainment technology is high, they just lose money and whilst they produce lifestyle experiences, they are not income producing. Absolutely we need these belongings, they provide recreation and lifestyle options that make life worthwhile. What is the benefit if someone stops working early and just sits around the house watching daytime television? There has to be lifestyle advantages here, taking a boat out fishing, diving, or out on the course golfing. Whatever you like to do, you should be doing it.

A million dollars in assets that develops an income stream and provides capital growth. An investment property differs as it produces an income stream and capital growth that an investor can live on should they retire [or semi-retire]. Commercial property can be held by individual investors and held in self managed superannuation funds. The problem we have now is there are caps on superannuation holdings, this may be better to be held in a family trust or company structure.

So absolutely this includes industry, private and self managed superannuation funds as they produce growth and an income for the fund holder for retirement. Yes, they must wait until they are 60 years old to access their retirement fund, this is an income producing asset though. This is the problem with superannuation though, you must wait until at least age 60 before you can access these funds.

Likewise, shares, bonds and precious metals such as gold, silver and platinum, private equity, hedge funds, exchange traded funds, and currencies. This could also include commodities that are traded on exchanges such as grains, livestock and meat, coffee, cocoa, frozen orange juice concentrate, oil, gas and forest products that can produce growth or rent.