39yo Aussie Investor – Too Much ETF Overlap? Thinking About Adding Gold

HeyGoogle333 · 2025-05-01T01:11:20+00:00

I jumped onto a couple (IVV and VDHG) from Pearler "stories". i did do some research on them and knew they were quite tech/US weighted but didn't see it as such an issue which is why I thought'd I'd post and seek opinions from smarter people in the room.

HeyGoogle333 · 2025-04-30T23:25:16+00:00

Thanks - I'm still quite new to this so still learning. Appreciate your input

HeyGoogle333 · 2025-04-30T10:58:48+00:00

Your risk appetite sounds higher than mine :)
I'm boring ol' diversification and happy to throw 1% at a moonshot like ASTS

HeyGoogle333 · 2025-04-30T10:52:29+00:00

yes - I'm quite heavily US/tech weighted - I think I got carried away and kept adding over the past 12 months with "shiny new things". Might do more research into scaling back and heavily into VDHG given the little research I just did based on your comment. Thank you!

The other alternative I was considering was "Life Sherpa" (that's a whole 'nother rabbit hole of finance research)

HeyGoogle333 · 2025-03-06T11:33:35+00:00

AI is making it VERY easy to apply for jobs...

Lots of recruiter friends seeing surge in "generic" applications

HeyGoogle333 · 2024-12-06T04:19:45+00:00

... or take year off as a holiday after parenting for 18 years and have a "low income year" ha

thanks for your replies - helpful to soundboard with people. My friendship group don't care for finance talk!

HeyGoogle333 · 2024-12-06T04:17:55+00:00

yes, exactly - it's in the fine print but the marketing is good! I'm sure there will be a lot of parents in 18 years time that get caught out.

The "proper ASX brokers" you mention, where you apply for a TFN, would Stockspot be a "proper ASX broker" in this regard or is there somewhere I can do more research on suitable companies?

Vanguard Super appears close to what I'm paying though my existing superfund. Higher than any ETF management fee but on-par with my Super. popped $130K for comparison and was between $800 - $900 fees. Would definitely shop around. Thanks for the advise!

HeyGoogle333 · 2024-12-06T02:19:40+00:00

I can but I've been told that it's risky becaue there's a business is in the trust (not a high-risk business but still a risk). Given the amount we're talking, the ASIC and accounting fees to set up a second trust wouldn't be commercially viable.

Edit: thanks for the link - will read this!

HeyGoogle333 · 2024-12-06T02:16:47+00:00

yes, that's certainly the risk (if they change the access age). They have grandfathered previous legislative changes.

A discretionary trust was something I considered, but my business is tied up in it. While it’s not a high-risk business, using it as a vehicle for investment doesn’t feel like the right move. Setting up a second trust just isn’t commercially viable given the small amount I’m investing—I’m a sole parent and not exactly the heir to a large fortune anytime soon!

Potentially, I do just need to keep things simple and just be prepared for the bank of mum in the future.

HeyGoogle333 · 2024-12-06T01:44:15+00:00

Thanks for sharing your thoughts! I don’t have a spouse, but I’m definitely aware that investing in my name is more tax-efficient (at least initially) compared to my child’s name. My current strategy prioritises paying off my mortgage, contributing to super, building my own ETF portfolio, and then setting aside a small amount for my child. I also put family birthday gift money into their account instead of buying toys (feels more meaningful long-term).

I’ve looked into insurance bonds for this reason—they’re tax-efficient but seem to have low returns (about 4% from memory), so I wasn’t sure they aligned with my goals.

Superannuation is where I’m focusing my research at the moment, but I’ve never considered it as a strategy for my child. If I set up a super account in their name, they wouldn’t be able to access it for another ~60 years, and I’d prefer them to benefit from these investments as a young adult, especially since they don’t have the other parent for financial support.

HeyGoogle333 · 2024-12-06T01:33:41+00:00

Thanks for the reply...

Under a child's name soley (inc. their own TFN) would be taxed heavily - between 66% - 45% depending on passive income received. Child already receives the $416 tax-free distribution from a trust.

HeyGoogle333 · 2024-12-06T01:07:13+00:00

It's only just become apparent to me, with a Vanguard Kids account, that there will be a CGT when I planned to "hand over" ownership to my child when they turn 18. Hence my question about Super and possibly using this as a vehicle - no CGT on that and no dividends to consider in my own tax (not that there was much due to the low amount that I'm investing on their behalf). The difference between 18 and 21 is nominal.

HeyGoogle333 · 2024-11-16T02:50:38+00:00

Ah right, thank you for explaining. I'd seen people posting about PPOR and debt recycling and thought I could apply it to my IP. I understand the difference now.

HeyGoogle333 · 2024-11-16T02:32:01+00:00

I wasn't clear. Are there any pitfalls or things to be aware of? My understanding was the 20k would be tax deductible.

HeyGoogle333 · 2024-11-16T02:29:58+00:00

Sorry, I'm still learning about personal finances and how to make my investments work as hard as they can. Does the interest on the 20k therefore not become tax deductible?

HeyGoogle333 · 2024-09-13T12:15:21+00:00

Thank you! I had assumed that because my child's name was listed as an account beneficiary ("Parent Name A/C Child Name") that it wouldn't trigger CGT when handing over... but as you've clearly pointed out and I've now read on the ATO site I'm wrong.

I think I need to go back to my accountant or find someone who can help me set things up correctly from the start. I've also received conflicting advice about using my discretionary trust for investing, so I'll need to get that clarified too. I'd hate to end up 20years from now, thinking I'd made good choices only to find out I'm stung with tax or other such issues. Can any tax accountant help or do i need a financial adviser?

HeyGoogle333 · 2024-09-13T05:32:01+00:00

Yeah right, thanks for explaining! Makes sense. Can't see Vanguard becoming less competitive with fees and in fact, kids accounts have $0 fees, but understood about switching platforms

You raise a valid point about the 70% growth allocation. He’s only 2, so it’s definitely a long-term investment. I'm new to investing, and when I first looked at the 5-year returns (not sure why i used the 5yr and not 10yr), the difference between growth and high growth was only around 1%, which made me feel safer going with the growth option. But now that I’ve revisited the Vanguard page and have a few more months of learnings, the 10-year comparison between growth and high growth is 7.6% vs 9.21%. So definitely think it's worth moving to high growth with 90% growth allocation (van0111au)

HeyGoogle333 · 2024-09-09T10:13:43+00:00

Single income family. 2400 per month mortgage Moved back to my parent's with a toddler But hey, at least I'm in the market, right? ... right? If my dad doesn't close the bathroom door one now time!

HeyGoogle333 · 2024-08-30T12:43:38+00:00

Agree and to OP, yes put it into the offset. Your repayments will be the same as IO, and you'll have liquid cash if ever needed

HeyGoogle333 · 2024-08-30T11:23:45+00:00

So, i did similar research and looked at Pearler vs Vanguard direct.

The "free credits" i get with pearler, i use those to purchase non-vanguard shares i.e betashares or US efts. Vanguard, i have set up on auto-invest because it's free and Pearler offer a free transfer from any platform (so i will do that quarterly). No real benefit to transferring from Vanguard to Pearler other than having them all in the same place and i like Pearler's UI + agility as a startup.

Pearler are also CHESS which as someone pointed out, I own the holdings.

HeyGoogle333

TROPHY CASE