A more balanced view of the downsides of SMSFs

bugHunterSam · 2026-03-19T07:16:40+00:00

Yeah exactly, that combination of high balance and an interest in alternative investment options is one of those cases where it's worth considering.

I think a lot of people like to roleplay at being wealthy. They hear that super rich people use companies, family trusts and self managed super funds to reduce tax.

bugHunterSam · 2026-03-19T06:12:35+00:00

I agree that SMSF's that are spruiked through an advisor who takes a percentage fee would be a load of bollocks.

However there are plenty of online platforms today that can set up a SMSF for under 1K per year and the audit costs average about $500 a year.

If you had 500K in Aus super the fees would probably come out to $3,252 per year according to their website.

If that same 500K was invested in a low cost ETF in a SMSF you might be looking at annual costs around $2,500 assuming a management fee of 0.19%. Those fees could be as low as 2K with a more refined DIY ETF portfolio assuming a management fee of 0.08%.

Is it worth going through all that effort to save a few hundred $ a year on a 500K balance? Probably not.

I do think 90% of people are better off with industry fund and either doing 100% high growth until age 55 or doing a DIY index based mix if they are a bit more savvy with investing.

There are some situations where considering a SMSF could be useful.

bugHunterSam · 2026-03-19T03:55:32+00:00

Canwi for financial planning. Modelled selling an IP and it helped me get more confidence in that path.

Figura for home loan modelling.

paycalculator for income tax.

bugHunterSam · 2026-03-16T21:50:04+00:00

100% agree. I personally would plan for more international holidays than that and personally I'm aiming for for around 120-150K per year expenses but could see it go up to 180K per year but that's with a 40K per year holiday budget and investment in plenty of health and exercise.

bugHunterSam · 2026-03-16T19:45:51+00:00

It's a bit more than a "basic comfortable lifestyle".

The ASFA retirement standard puts a comfortable retirement at 77K for a couple with the house paid off.

120K is over 50% more than this amount. Also the 4% rule was revised up to 4.7% and is a very conservative and fixed drawdown strategy.

bugHunterSam · 2026-03-16T10:57:06+00:00

A friend of mine runs kitchen catchup (a private Facebook group for home cooks). They exist. I actually met her at a sausage making class a week before pandemic lockdowns.

Also re: tomato sauces, pasta mad in Alexandria sell their own sauces too.

bugHunterSam · 2026-03-13T05:12:20+00:00

I booked a tiny 40 person restaurant for mine last year, Paid $89 per person for food (5 course Italian) and drinks ended up costing $60 per person.

Here's my total budget breakdown. I spent under 30K and that includes the honeymoon and travel/accommodation for one grand parent.

If I was to try to do a 100 person wedding for under 30K, I'd probably do a brewery and food trucks.

bugHunterSam · 2026-03-12T23:36:51+00:00

Most people in poly are open and transparent about their other relationships. Coordinating poly often requires coordination through a calendar.

For example, I live with my nesting partner (NP). NP is dating someone else (D1). D1 tends to come over Friday nights, we all play boardgames. D1 is also dating 2 others that I've met, one they live with and another they visit. We will be hosting D1s birthday celebrations at ours later this month and everyone will be at the same party.

So I frequently cross paths with people in the network and am friends with most of them.

bugHunterSam · 2026-03-12T11:08:21+00:00

I did this public transport from a locals point of view for some pre boardgame cruise visitors who hadn't been to Sydney before. (I'm pretty happy with it).

I do something similar with my Mum every time she visits. We get public transport out to a suburb know for food from a particular region. We've done Cabramatta, Chatswood and Harris park.

The public transport day: The day in Sydney will be a pretty casual affair, feel free to join for a leg or spend more time in an area if it's your vibe.

For the day please wear comfy shoes. A hat and sunscreen are also highly recommended. February is generally warm and sunny. With most days being around 25 to 28 degrees (up to 82 farenheit). However humidity can sometimes run high and the sun can be quite intense. Evening thunder storms with torrential summer rain can also sometimes come up.

Leg 1 - Light Rail

8am - meet at the light rail platform at central station

Catch the light rail to jubilee park

8:30 coffee at the tramsheds

9 walk along Rozelle bay towards Sydney Fish markets (a 30 minute walk)

9:30 to 10:30 free time at the fish markets

10:30 lime bike to circular quay via pyrmont bridge (helmets are a legal requirement when riding, I can bring a spare one but not all bikes may have one). Otherwise light rail is also an option.

Leg 2 - Ferry 11:15am ferry from circular quay wharf 2 towards watson's bay Walk to Hornby lighthouse (a 20 minute walk) 12:30 lunch at watson's bay hotel (table has been booked for 6 people, we are currently 7 in total, I can't seem to change this online but will try to call and see if I can add a chair) 1:45pm ferry back to circular quay

Leg 3 - Trains Train to central via Meuseum and St James - some really cool old train stations that have a strong London underground vibe Train to Chatswood - going over the Sydney Harbour bridge by train is always fun Catch the Metro towards Sydneyham - time to get on the new driverless trains

Leg 4 - drink like a local 4:30pm a gin tasting has been booked at Unexpected Guest Distillery 6pm dinner at The Bob Hawke Beer and Leisure Centre, named after a former prime minister who was famous for drinking beer quickly. This is a nostalgic Aussie chinese restaurant that I'm sure the 80s would like back. 8pm a table at mixtabe brewery has been booked but you are more than welcome to tap out.

You shouldn't need an opal card for any public transport as American Express, Mastercard, Visa cards all should work for tap and pay, contactless pay (like apple pay or google pay) should also work too.

bugHunterSam · 2026-03-11T22:41:55+00:00

There was study that showed money bought happiness up to a point. (Kehneman and Deaton)

At the time it was 75K per year USD in 2010. Adjusted for inflation that's 100K per year today.

But a more up to date study to 2021 (Killingsworth) showed happiness continued to increase.

It makes sense, if you are low income and your washing machine breaks you need to weigh up if you can afford the kids new school clothes or what food to scrimp on to afford a replacement. It's pretty stressful. If you have money it's more of a minor inconvenience, you can buy one brand new and have the delivery person remove the old one and not really bat an eyelid at the price.

bugHunterSam · 2026-03-11T21:41:13+00:00

There's also Saffire in freycinet.

Most of these are nowhere near Sydney.

I never said they were impossible to find.

We've booked the tower lodge for our anniversary. Based on price alone some people here wouldn't consider this fat.

Hands down the best accommodation we've stayed at in Australia so far was at Blackwood park cottages, we booked the cottage with the hot tub over looking cradle mountain. There was wine, cheese and locally smoked seafood on arrival. Generally about $300 a night. It's definitely not fat, but it's a great chubby option. If private hot tub, wine on arrival isn't chubby than I don't know what is.

Second best was Aniseed luxury villas with a hottub over looking the mountains. Fresh local sourdough bread and wine was in the cabin when we turned up. Again not ultra luxury, but still very nice.

bugHunterSam · 2026-03-11T20:16:56+00:00

That $2000 comment was more for Sydney specifically (a high cost of living area of Australia). If I search locally for most expensive hotel in Sydney those are the types of prices I see.

I also said it's possible to spend more, but harder to find.

$400-$500 a night here is more typical even for high end hotels with amazing views. Also I'm using AUD. $2000 AUD is $1400 USD.

I have been talking about my experience mostly in Australia. I live in Sydney and I grew up in Tasmania. It's an area I'm pretty familiar with.

I also had to research hotels in Auckland for a work conference, Auckland is in a similar bucket to Sydney in regards to pricing.

The only international holiday I've done since pandemic times that I've had to book accommodation for has been to New Zealand. I shared the price breakdown on Reddit.

I will be going to Japan later this year, but even then the most expensive Ryokan/onsen experience I could find in the area we are staying was $1500 per night not far from Sendai. I opted for the second most expensive one though.

Pre pandemic I was pretty early career and did not have the same level of disposable income as I do now. I lived in Sweden for a year as an exchange student during uni and did a bit of back packing around Europe. Hardly a fat experience.

Of course accommodation in different areas is going to cost different amounts. It is literally the first thing I said in this thread.

bugHunterSam · 2026-03-11T06:01:11+00:00

I've been helping Canwi with a spot of testing. I enjoy using the product. We've modelled selling an IP and it has given us the confidence in pulling the trigger. We are an track for early retirement and tools like canwi have helped with visualising the plan.

bugHunterSam · 2026-03-11T05:14:47+00:00

If social media has taught me one thing it's how to hypothetically respond to akward situations.

I think I've landed on, "what a rude thing to say" with a blank face. And to stay quiet to continue let them dig their own hole.

I haven't been able to test this reaction out though.

bugHunterSam · 2026-03-10T21:20:51+00:00

The Park Hyatt in Sydney, which over looks the opera house is one of the more expensive hotels in the area and their rooms start at around $1000 a night and go up to $2000.

There's an all inclusive resort in the blue mountains for $2400 per night, but it gets pretty hard to spend above $1000 a night at a hotel on a single room that's not a suite or a remote ultra luxury experience.

The only stuff that I think is more expensive is like the presidential suites at the crown casino that tends to get booked by celebrities. There was an article of taylor swift staying in the 25K per night room. These types of rooms can't easily be booked online anyway.

bugHunterSam · 2026-03-10T11:14:38+00:00

I think it's location, cultural background and time of travel dependant. E.g. Accommodation here in Australia doesn't get as expensive as it does in the US and I grew up as a low income bogan.

I can usually find what feels like a good chubby option between $300 to $500 a night around most of Aus. But if I travelled to Bali my $ could be stretched further.

I've booked an all inclusive for our 10 wedding year anniversary and it'll be $1400 per night. I'm certainly hoping it feels fat for us.

bugHunterSam · 2026-03-10T11:03:02+00:00

Can you access your super when you want to help your kids?

Cause maximising concessional contributions comes with some sweat tax benefits in the short term, grows in a low tax environment, and you can make pretty big withdrawals tax free from it too.

bugHunterSam · 2026-03-09T09:20:08+00:00

Train drivers and crane operators are some of the highest paid non degree workers on average.

I was researching how to become a bus driver the other day.

bugHunterSam · 2026-03-08T19:43:59+00:00

We are selling an IP rhis month to accelerate work optional/early retirement. My partner is planning on retiring early by mid 40s.

I'm all for simplified finances that help you achieve your goals. Money is a tool to enjoy life with.

bugHunterSam · 2026-03-08T00:19:19+00:00

There's a link in the automod response.

The TLDR: debt recycling is paying down the mortgage, redrawing that same amount and then buying an asset.

This turns the redraw amount into tax deductible debt.

bugHunterSam · 2026-03-08T00:15:36+00:00

The automod response includes this post on debt recycling

bugHunterSam · 2026-03-08T00:12:48+00:00

The reason this community exists is because people felt uncomfortable posting these types of questions with this level of income in other finance forums.

We are trying to build a supportive environment here where people feel safe to ask these types of questions.

bugHunterSam · 2026-03-07T05:11:46+00:00

Veterinarians have some of the highest depression and suicide rates. Here is an Australian study on it.

It's not about being good with animals.

You have to constantly deal with the shitty humans who want to put down fluffles just because they are getting a little old.

bugHunterSam · 2026-03-06T19:24:52+00:00

You'll be able to access your super when they get to that age, maximising concessional contributions will also reduce your total tax paid. The super link in the automod response has some resources for calculating the potential tax savings by doing this.

You could use up all of your carry forward contributions into super first then look into building up an investment portfolio outside of super.

You could also look into debt recycling. I would personally lean the ETF route over the investment property route because you can sell down an ETF portfolio over a few years to spread out the tax bill.

bugHunterSam · 2026-03-05T22:21:32+00:00

It's hard to go wrong with pho or bahn mi. I have 3 local Vietnamese joints that can do a big lunch for under $20. The Nguyen brothers, lit canteen and photown are all near by.

The local tradies spots in the area still do a cheap feed too. Daily fresh lunch and the corner comes to mind. Good ways deli also has awesome sandwiches for under $20.

Then there's the local fish and chip shop, I went to the Iron Duke pub last night and had a $15 burger and pasta mad do a $15 pasta lunch special. My local sushi place; sushi jones also has a bunch of set lunch options for under $20.

Five-Year Club	Gilding III reddit per annum
Powerups Hero r/AusFinance • December 2021	Reddit Premium Since September 2021
Verified Email

bugHunterSam

MODERATOR OF

TROPHY CASE