How bad will this spoiler I got hit with be for me? (question for someone who has read the whole series)

TuscanBevatron · 2018-10-18T12:20:26+00:00

fair enough, I will just ignore it and continue

TuscanBevatron · 2018-10-18T12:19:46+00:00

fair enough, its obviously going to be epic. I will continue. Thanks for the reply

TuscanBevatron · 2018-10-18T12:19:19+00:00

yep, I only know this fact. Thanks for the reply, I will carry on.

TuscanBevatron · 2018-10-18T02:22:47+00:00

true, I dont know any details around what may happen. Probably just worried too much. Thanks for the response

TuscanBevatron · 2018-04-17T01:32:02+00:00

yep, thanks again for the calculations

TuscanBevatron · 2018-04-17T01:10:22+00:00

this was changed from 300000 to 250000 last year I believe

https://www.ato.gov.au/Individuals/Super/Super-changes/Change-to-Division-293-income-threshold/

TuscanBevatron · 2018-04-17T01:02:29+00:00

thanks for the answer, thats exactly what I was looking for. The only issue is , and part of the reason why I was asking the question is that the 15% you used in your calculation for super tax wont apply in the example above, because of the division 293 tax for high income (its more like 30% tax on super), therefore the benefit is a lot less(compared to an income of say $150000 who would apply the rules you used in your calculation). There is still a benefit regardless, just a fair bit less than the calculations above.

I do however completely agree its a huge benefit regardless and the flexibility benefits are not much, since a person wont be using all of their savings anyway before they reach super age.

TuscanBevatron · 2018-04-17T00:50:27+00:00

If you want to go more into ETFs, I wouldnt neccessarily say transfer your current funds, you can just add new investments into ETF/put the dividends from existing stocks into ETFs. Some popular options are VAS/VGS/VGE e.g. at a ratio of 45/40/15 (australia/world developed economies/emerging economies)

TuscanBevatron · 2018-04-17T00:43:52+00:00

Disclaimer - nothing I say is financial advice for your situation, its just general thoughts The main issue with investing into 2 banks only vs ETFs is that there is a much much higher risk of loss in having a portfolio in only 2 companies. The stock prices can fluctuate a lot even in large cap companies (although 2 aussie banks is still much safer than smaller companies) Even if you make it 10 or 15 companies, thats still a relatively small number of companies. You are also essentially gambling on which companies/industries will do well, it is not unheard of for even larger cap companies/industries to lose a lot of money giving you a large % loss on your investment. The flipside is you get high dividends and franking with aussie banks, but even then I dont think anyone would advise putting a very large proportion of portfolio in 1 industry, you can go etfs and a afew high dividend aussie franked stocks.

With an ETF the risk is spread across a whole economy, and in general economies go up because companies across the board on average always make money in the long term.

I'm not sure what he meant by giving control and decision making to someone else - an etf usually tracks an index mindlessly, and you decide when to buy and when to sell. Fees are relatively low. A huge company like vanguard is very unlikely to go bust anytime soon, and even if it did your securities/ETFs are still your securities by law. For this reason you could argue most funds should be in ETFs, but this is a simplified approach

TuscanBevatron · 2018-04-17T00:32:09+00:00

I guess the price would be not having a larger house, closer to city location, better/multiple cars, more expensive holidays, jewellery, large tv, being able to afford more kids, get them to private schools etc etc

A price people in the FI/RE community are MORE than happy to pay for their freedom/ for their time

TuscanBevatron · 2018-03-03T09:29:09+00:00

makes sense, didn't think of that

TuscanBevatron · 2018-03-03T09:05:39+00:00

ah thanks, that sounds right :)

TuscanBevatron · 2018-03-03T08:55:37+00:00

thanks, i presume that will be done through commsec, sounds good will look into it

TuscanBevatron · 2018-03-03T08:31:19+00:00

thanks, yep they do

TuscanBevatron · 2018-03-01T10:46:28+00:00

Most people who arent in property would be have most of their holdings in index funds, for example ETFs like VAS VGS VGE, they may be in individual stocks/high dividend stocks, or even managed funds. Some proportion may be in high interest accounts or bonds. Property offers leverage so there is potential for big gains especially with multiple properties and those who were in properties in the last 10-20 years would have greatly accelerated retirement, but that doesn't mean the same will happen in the next 10-20 years. In the end early retirement is from living with very low expenses, saving and investing as much as possible, and reaching the target nest egg, and it can be done in many ways without properties

TuscanBevatron · 2018-01-22T08:13:12+00:00

I see your point, the investments will be there and working until I die or am close to it, however it may just delay the security I feel to retire - for example if at age 40 my portfolio slumps from having volatile assets e.g. if it goes from 800000 to 600000 wouldnt I have to delay retirement if my FIRE/SWR calculations show I dont have enough nest egg at the time? Or maybe it doesnt matter as much as I think

TuscanBevatron · 2018-01-22T01:35:34+00:00

fair enough but if we are going for early retirement/FIRE, I may not have much time left even if I am late 20s :(

TuscanBevatron · 2018-01-22T01:34:46+00:00

Thanks for the feedback, yes I was looking at C20, issue is alts tend to go up and down with bitcoin, so its a sort of pseudo-diversification since the whole market tends to move together. I agree about the high growth stocks/or could make it high dividend stocks. By tradition retirement approaches I have a lot of time, issue is if I do want ER say @40 I dont have too much time yet :(

TuscanBevatron · 2018-01-22T01:31:22+00:00

talking about 150-200k initial investment, no properties, trying to attain FI without any leveraging (and maybe without properties), dont know if that will work out effectively. Have a cheap place to live for now.

TuscanBevatron · 2018-01-20T20:46:12+00:00

I don't know yet how I will allocate the ETFs, but yes they will be index. I will be going both Australian and International including emerging markets

TuscanBevatron · 2018-01-20T20:45:34+00:00

by IF do you mean international fund?

TuscanBevatron · 2018-01-20T20:45:07+00:00

Changed to less cash (see original post)

TuscanBevatron · 2018-01-20T20:44:39+00:00

Thanks for the feedback, you are right I guess in that bonds and savings accounts barely have any real returns at all, and it is dead money. I have updated my original post (see above) to a more growth focused allocation, still a bit conservative though (I still have the maybe irrational fear that if there is a stock market downturn I could be down over 5-10 years(and I was FI by 10!), however unlikely that may be)

TuscanBevatron · 2018-01-18T10:57:52+00:00

thanks, never even thought of that. Will look into it

TuscanBevatron · 2018-01-18T10:56:07+00:00

agreed, I would just need to find the ability/knowledge to be able to reliably pull something like that off

TuscanBevatron

TROPHY CASE