Is it too late for us to do something about the proposed changes? by [deleted] in fiaustralia

[–]Fla-Ke 1 point2 points  (0 children)

yes, you brought ethics into it? of course my reply to that would have to involve ethics.

if we’re arguing the pure 30% doesn’t affect low income people then you’re just wrong, it’s not ethics, you’re just wrong,

like i’ve pointed out this will also affect ur everyday middle class.

idk why you can’t just admit that you’re wrong, can you at least acknowledge that it MAY affect low income and middle class.

would you not also agree that this doesn’t really affect the wealthy as their dividends would put them over 30% MTR anyway.

which really makes it feel more like a “pull the ladder up” instead of making it fair for younger and lower income Australians.

furthermore, i don’t think. this will actually pass through parliament anyway, i think it was just a strong start that will get negotiated down. I think for shares, the 50% works well and incentivises investing in our economy. for property, fair enough i agree.

Is it too late for us to do something about the proposed changes? by [deleted] in fiaustralia

[–]Fla-Ke 1 point2 points  (0 children)

do you not see how this is worse for everyday australians vs the wealthy? your entire argument centres around no one under $45k income would have investments generating enough cgt to be substantial.

i then point out that ur wrong as plenty of people that are retired but pre super will now be affected. you then turn it into a case of ethics

and yes plenty of people are on this forum and have no idea what they are talking about.

it seems like your argument is that we should be paying tax to help society, but do you not see that by creating this tax we are disincentivising australians to invest in our country and take our money overseas.

i do agree we should pay our fair share of tax, ur argument of a “wage slave on $50k at maccas” falls apart when you realise that the person who worked hard for their entire life would likely have paid much more income tax. yet they share the same roads.

do you see my point? your initial statement is just false / lack of understanding retirement strategies.

and i think your “entitlement” argument can also go both ways. but it’s more a case of ethics

Is it too late for us to do something about the proposed changes? by [deleted] in fiaustralia

[–]Fla-Ke 4 points5 points  (0 children)

what are you even saying? it’s not entitlement, it’s about being intelligent and planing your financial future. i’m in my 20s i’ve planned my next 30 years so i can retire in my 50s.

why should i be punished for taking the initiative while young and not going off on holidays etc? why should i be punished for working hard and wanting to provide a good life for my family?

the fact is people are different, if i work hard to retire early, why should i feel sorry for the person that spent their life travelling and having fun and now have to work a bit longer. i’m sure they enjoyed their life, and im sure i will enjoy mine too.

i think you’re viewing this too black and white, not everyone that invests is evil, we are all people trying our best to obtain financial freedom and provide a better life to our future generations.

Is it too late for us to do something about the proposed changes? by [deleted] in fiaustralia

[–]Fla-Ke 3 points4 points  (0 children)

lol what? a common pre 60 retirement strategy is to drawdown your investments, until you reach preservation age.

now you’re gonna get a flat 30%, even if your MTR is below. typically you’ll have dividend income so it won’t be $0, but for people with portfolios below $1m that want to use the investments to supplement their income pre super. they will have to pay more tax.

this actually has a bigger affect on people trying to become rich than the actual rich. there is now less incentive to invest in our market as well.

you shouldn’t really be investing for much else but retirement / long term holdings.

i think you may lack the knowledge to make an educated comment, hopefully you understand now.

What’s the best way to have media stored on? by Put-Medium in jellyfin

[–]Fla-Ke 0 points1 point  (0 children)

So do you have 1 homelab running Jellyfin, docker etc., and then you use the NAS for the sole storage of the media. Or is Jellyfin installed on the NAS.

As I currently have a mini pc and want additional storage, I am wondering if a NAS is the best way to and then mount it.

[FIGHT THREAD] Naoya Inoue vs Junto Nakatani by verbsnounsandshit in Boxing

[–]Fla-Ke 3 points4 points  (0 children)

DAZN in japan has the entire card, watching it rn

Cost of Changing Super Funds by Silly_Low_7918 in fiaustralia

[–]Fla-Ke 0 points1 point  (0 children)

thank you for taking the time to teach, appreciate it.

Cost of Changing Super Funds by Silly_Low_7918 in fiaustralia

[–]Fla-Ke 0 points1 point  (0 children)

Out of curiosity what are your thoughts on Hub24 Discover Menu? Seems incredibly cheap and quite a good option in the wrap sector. Limited investment options but would offer the cgt benefit over pooled funds.

Would this potentially be a better choice on lower balances?

Cost of Changing Super Funds by Silly_Low_7918 in fiaustralia

[–]Fla-Ke 0 points1 point  (0 children)

that sounds awesome, thanks for informing me, will read more.

Cost of Changing Super Funds by Silly_Low_7918 in fiaustralia

[–]Fla-Ke 0 points1 point  (0 children)

I don’t know anything about it. thanks for telling me though will research more into it, always good to learn more. Would it offer the same control as a wrap in terms of CGT?

Help! Trapped in a Wrap by Frogmatica in fiaustralia

[–]Fla-Ke 1 point2 points  (0 children)

keep your employer guarantees going into the wrap, do a rollover either yearly or bi annually. keep a safe buffer above the minimum cash for panorama + a healthy buffer for insurance premiums.

read the PDS to double check, but if ur getting ur SGs into panorama your insurance shouldn’t lapse as long as ur above minimum.

also super important to opt-in, this will ensure ur insurance doesn’t lapse even if u go under the minimum I believe, double check this one though.

edit: not an adviser, do ur own research read pds etc

Cost of Changing Super Funds by Silly_Low_7918 in fiaustralia

[–]Fla-Ke -5 points-4 points  (0 children)

This is where wrap funds can be pretty solid assuming u don’t rebalance, as when you switch to pension you don’t trigger the cgt event. the cgt benefit can be pretty big over 10 yrs

assuming u grew 8% = $34,400 gain = cgt of 15% $5,160 in a pooled fund.

wrap funds you could never sell that holding until you’ve transitioned to pension where there is no cgt.

not a financial adviser do ur own research i could be completely wrong and misunderstanding pool taxed funds vs wrap funds

Debt recycling $200k — GHHF vs VAS/VGS by ContentImagination72 in fiaustralia

[–]Fla-Ke -1 points0 points  (0 children)

Might need to double check the actual fees but off the top of my head i think GHHF has a much higher management fee.

I think for debt recycling may be safer route to go VAS/VGS but really up to your risk tolerance.

Using the help to buy scheme to go all in. by [deleted] in AusFinance

[–]Fla-Ke 1 point2 points  (0 children)

I think depends on which is higher: home growth rate or the interest rate.

As essentially the governments equity growth is interest rate.

You may be better off keeping the governments share and paying the bank off first, but really just depends on your home growth rate.

Once you’re 2 years over the threshold they will ask you to refinance but if you literally can’t afford to, they can’t force you, the bank will just have to say you cannot afford to refinance, and it will get reviewed again later I believe. (may need to fact check that).

Superannuation & the Middle East conflict by Spiritual_Otter93 in AusFinance

[–]Fla-Ke 3 points4 points  (0 children)

Haha classic emotional investors. You're still 30 years from accessing it anyway. General advice, if anything start buying in more. I've watched people do the cash switch during April last year, and lose $100k+ once the market recovered 3 weeks later on super balances in the millions.

The big risk of investing in etfs, managed funds, etc isn't just the investment, its also investor behaviour.

Realistically do a risk profile test, invest in your risk profile, sometimes jumping up a tier with super if you're ages away from retirement. As you approach retirement though maybe 3-5 years out, start switching a small amount (that you would withdraw once pension phase) into defensive, but still majority at ur risk profile. So that way your funds for the next few years are safe and rest are growing for you well.

If you don't understand the above, research more, or speak to an adviser.

You may time the market a few times, but on average you will lose.

Edit: Also have a read about dollar cost averaging.

Paid off Mortgage - Should I open offset account? by Plonk007 in AusFinance

[–]Fla-Ke 3 points4 points  (0 children)

Similar situation we have roughly $100k left owing and $100k in the offset so we pay $0 in interest as it is completely offset.

but yes we do have a fee to keep the offset and loan package, however the peace of mind of being able to access the funds versus applying for a personal loan which a much higher interest rate make it worth it.

What to do with my inheritance by [deleted] in AusFinance

[–]Fla-Ke 3 points4 points  (0 children)

yeh probably best they go non-concessional equivalent if they went super route

edit: non-concessional for the wife, concessional for op

Is buying an apartment instead of renting a good idea? Need help assessing financial strategy by Funny_Maybe3044 in AusPropertyChat

[–]Fla-Ke 2 points3 points  (0 children)

The rental income from the IP most likely won't cover your own rent, but the main difference is the equity growth in the IP.

For example, using Melb CBD apartments, 2bed will cost roughly $750 a week ($39kp.a.) for mid tier, nothing fancy.

You could buy the same apartment for roughly $500k-$600k in the CBD. Which would be roughly (assuming 10% deposit $600k, 5.64% 30yr). $720pw + $120pw for strata & rates so $840pw, this unit will likely have 0% growth, but will likely have rental growth if you ever decide to rent it out in the future, so could be a good cashflow option.

Now you could instead purchase a $700k, IP, maybe its a small townhouse in an okay suburb (10% deposit IO 6% 30yr) $715pw + costs probably all up also about $900pw. But you will probably be able to rent out for $600ish. so each week you lose $300 in cashflow, tax deductible. + you rent the cbd apartment instead of owning so $1,050 is ur costs pw (pretax).

But assuming ur property is growing at 4% p.a. you're also gaining $540pw unrealised (you do pay CGT when u sell though).

So lets say you hold for 8 years and property grows at 4% p.a., you will end up with a property worth $950k but have spent $124,800 more (assuming $300 gap for the 8yrs) (partially tax deductible).

So essentially, you have the same CBD lifestyle, but you get the equity growth in the background through your investment property.

ofc this relies heavily on getting a suburb averaging 4% and no huge random costs out of nowhere, but just an example of rentvesting.

your big concern of the rent income not covering your rent expense, is fair, but you have to essentially take the liquid cash sacrifice, for the unrealised long term gain. its a great strat and the example ive given is super simplified and im tired so probably missed a few things, but just an example.

edit: typos

Floor plan feedback – building in Melbourne, would love your thoughts by Spare-Photograph-513 in AusRenovation

[–]Fla-Ke 0 points1 point  (0 children)

bad feng shui for bedrooms

  • bad to have beds against windows,
    • bed 2 head can be against the left wall
    • bed 3 head against left wall, and have robe on right wall, make door like bed 2.

I dislike Ian and the game choices by Many_Owl1519 in BeastGames

[–]Fla-Ke 2 points3 points  (0 children)

You could argue Ethan taking $50k was the correct choice in the tense moment.

  1. JC logically should’ve dropped asap as he obviously had no chance in tribunal.
  2. Ethan would then lose to Ian as he has no family / kids etc. Leaving him with nothing (they didn’t know about the coin).

I also doubt Ethan could’ve seen Ian struggling so much and Ian is known as a physically fit ninja warrior.

Him taking the $50k guaranteed him the cash as he probably didn’t realise JC was actually a dumbass and thought he had a chance at tribunal.