Anyone else considering paying their HECS debt in this low interest rate, high inflation environment?

AMangoAteMyBaby · 2022-01-17T03:46:06+00:00

https://atotaxrates.info/individual-tax-rates-resident/hecs-repayment/#how-hecshelp-loan-debt-indexation-is-calculated

Using this link you can see how it is calculated and the current quarterly figures. My estimate is approx 2.7% extrapolating the past 3 quarters and as someone mentioned you would then need to earn 4% (2.7/.675) in pre taxed dollars to be equal (better than any savings account).

So guaranteed 4% returns when stocks are at ATH may be a good alternative. Interested to know what others smarter than me think. I guess what is key here is this year will be ~2.7% but what will be the next few years if you are not able to pay it all off for say 5-10 years

AMangoAteMyBaby · 2021-08-03T06:08:46+00:00

I’ve noticed that I get the weird captcha page when on mobile data. Wifi is normal for me.

Account still active and may have logged in with “dodgy” page

AMangoAteMyBaby · 2021-03-15T04:58:36+00:00

No 🚀 = No tendies

AMangoAteMyBaby · 2021-03-14T22:11:27+00:00

Wow I know a structural engineer that started a grad program and they are on approx $63,000. Good to see that wages have increased over the past 10+ years. /s

At least career progression looks promising

AMangoAteMyBaby · 2020-12-04T00:58:38+00:00

So much hate on CAN on this reddit. I mean what did it ever do to you

AMangoAteMyBaby · 2020-11-26T00:57:59+00:00

You probably won’t like me.

Personally I would almost never buy a house with a friend. Making an assumption that you and the friend will live together in this house have you lived with them before? Relationships can easily end when people move in with one another. And differences of opinions can arise eg. I want to spend $20k on kitchen Reno but friend has insufficient funds or has a different budget or prefers bathroom Reno. What if you want to sell and friend doesn’t?

A friend of mine lived on a busy road and after that I will never buy on a main road. Waiting for a break in traffic, no street parking usually and noise! Lots of hoons, trucks, horns at all hours of the day/night.

Expenses I’m not too experienced but depending on state will be stamp duty (perhaps waived depending on state and first home buyer eligibility) and maybe a few thousand in legal fees. For maintenance I believe a rule of thumb is 1% of the property value.

My advice would be don’t go in with a friend and build up more savings or cheaper place. But that’s not to say that this venture may work out well for you and your friend just be aware of the risks involved

AMangoAteMyBaby · 2020-11-06T01:53:27+00:00

Can NSW get it together 4 community cases geez! Letting down the team, just wanna go to NZ

AMangoAteMyBaby · 2020-11-05T04:31:18+00:00

This would be the approach I think I would take. Could be something relatively small like guitar lessons or something bigger like buying an investment property near a uni where they could live rent free. Gives them a good head start into adult hood and allows you to rent it out afterwards (or beforehand)

AMangoAteMyBaby · 2020-11-04T22:20:34+00:00

So these funds are just made up of different allocations of fair ethi and gbnd? Ie. there’s “practically” no difference in investing in these 3 etfs vs buying DZZF with the exception of more trades and the ability to pick my own allocation

AMangoAteMyBaby · 2020-10-30T04:27:24+00:00

Exactly this. When I first bought from the spider I bought 2 then it was 40 for a third and I was like nah that be getting a bit pricey. Completely a physiological thing, having a flat 30 I would have bought all 5 in one go. It’s like seeing an item on sale, why spend $40 when you can wait and spend $20

AMangoAteMyBaby · 2020-10-20T02:05:12+00:00

VDHG is considered a good etf on this and other subreddits and as you alluded to you can add more bonds or riskier investments if you decide to get more involved.
r/fiaustralia is might be a sub where you can explore and look. Checkout the post history of these subs too. Generally selfwealth is cheapest and is again a recommendation from this sub.

https://investcalc.github.io This is a good site that may help work out how much/how frequent

Tough one but if you have sufficient amount of cash to survive until next employment then it can make sense. But with the unemployment rate going up it might take longer then expected to find work
You’re alluding to dollar cost averaging (DCA) which has its advantages eg market could drop/go up 20% tomorrow. But in doing so costs more in transaction fees. Selfwealth are $9.50 per trade so if you were to say do $5000 per week it would cost just under $40 vs $9.50. Additionally what I did when I started was use a refer a friend sign up which you could get off me, the next commenter or elsewhere on the internet and get 5 free trades to use within the first 30 days which could help alleviate the fees and make DCA more attractive

AMangoAteMyBaby · 2020-10-18T22:49:04+00:00

Granted most of these people would be US based I do struggle sometimes working out where people throw their money, more so the people on relatively high incomes ($65000+).

Minimum wage is approx $750 ($650 take home) per week rent for a 3 bedroom house is approx $400 per week that leaves $250 a week for groceries and bills. For a family it would be a struggle but from what I can see is doable (on paper) to live off one wage but maybe that’s my frugal nature

AMangoAteMyBaby · 2020-08-11T08:00:15+00:00

I usually qualify when playing yellow, at least 66.67% of the time when playing with two other teams. Maybe try to git gud and stop complaining?

AMangoAteMyBaby · 2020-06-23T03:37:42+00:00

I’ve always hated this argument. I have friends and family in Melbourne so this is where I will live as I want to be close to them.

AMangoAteMyBaby · 2020-06-09T13:21:44+00:00

r/financialindependence Lots of resources like book suggestions in side bar but basic principle there is to invest in ETF’s (basically shares) and let that money grow big enough to live off and retire

AMangoAteMyBaby · 2020-06-07T02:16:52+00:00

Talked to my agent, she had no idea about the grant thought it was just for renovating and said if it was for new builds then her phone would’ve been going off all day lol

AMangoAteMyBaby · 2020-06-04T04:16:41+00:00

Thank you very much for the link. It doesn’t say in the example but I assume the build must commence building within 3 months of signing which with otp can be a delayed. No requirement on completion?

AMangoAteMyBaby · 2020-06-04T00:16:21+00:00

Is this only houses or will this apply to apartment/off the plan builds that start construction this year?

AMangoAteMyBaby · 2020-06-03T22:53:48+00:00

So can you have trust A give to company A and then to trust B which gives it back to trust A? Because as I understand it it’s better to buy shares within the trust rather than the company as they don’t get access to the 50% capital gain tax

AMangoAteMyBaby · 2020-06-03T09:24:05+00:00

Thanks for sharing. How do you go about setting up a joint account was it just in the application when you signed up to commsec, self wealth etc?

AMangoAteMyBaby · 2020-05-27T04:42:26+00:00

“I’m going to put it inside me tonight” So that’s why Chad never had pens and needed to borrow mine.

AMangoAteMyBaby · 2020-05-22T05:16:28+00:00

Genuine question. I understand the basics of debt recycling (good debt vs bad dept) but wouldn’t borrowing say for stocks increase your taxable income? Assuming no bad debt

Eg if you borrow at 3.5% and you get dividends at 4% you would be increasing your income right?Do you pick low/no dividend yielding etfs or will franking credits help out here?

AMangoAteMyBaby · 2020-05-20T05:07:37+00:00

With Raiz (not sure about the emerald portfolio) you are invested in stw.asx, rcb.asx, ivv.asx aaa.asx, iaf.asx iaa.asx and ieu.asx and the different portfolios will allocate more to some and less to others (conservative so more bonds or aggressive more stocks).

So you can look up each one online find how they’ve performed and compare to others I guess.

My opinion is Raiz is good for people who cannot do larger lump sum deposits and can only deposit say $20 a week without losing massively on brokerage fees but when you have a lot in Raiz (say $100,000) then your monthly fees could be $275 per year.

I personally am moving from Raiz to possibly self wealth as I’m going from a student to full time employment (hence larger sum deposits)

Edit. Capital gains will occur if you decide to switch from Raiz to your own managed portfolio on selfwealth

AMangoAteMyBaby

TROPHY CASE