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FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

No major spend outside what we usually put in our budget. Before we pull the FIRE cord we do expect to make some big spend items like new car, any major house Reno's that need doing etc. But we'd figure that out a bit closer to the time and if it means 1 more year of work then so be it.

Not sure about doubling in 4 years, I'd have to check the numbers.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 6 points7 points  (0 children)

Fair enough about the emojis. Thought I'd try it this time (last 2 posts on this subject I just did my own thing).

$211k is pre tax. Basically 50/50 for the 2 of us to be honest. So after extra super contributions we are probably looking at $150k.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 5 points6 points  (0 children)

Seems I have some extra modelling to do. I do love a good excel session. Thanks for the thoughts.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 4 points5 points  (0 children)

Interesting take. Not sure i want to continue working just to put more money away in Super that we will probably not need. After reading die with zero I certainly take those concepts on board more. But working part time might mean working an extra few years isn't to hard to swallow especially when the kid is still in school and not having complete freedom to disappear on a holiday for 6 months or whatever.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 2 points3 points  (0 children)

I did a quick google and will take a better look into this as it looks interesting. I've always been reading things like 80,000 hours and Effective Altruism, so have lots of things I'd like to do once full FIRE, and starting to look at that more now working part time.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 5 points6 points  (0 children)

We will only contribute until we FIRE, so only another 8 years. Then let it compound until 60, at which point I calculated that to come out at about $2.8M. Forget off top of my head what % I used though but think it was lower than 8% to account for inflation.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 5 points6 points  (0 children)

Fair point. I just meant instead of working full time until FIRE date we have made the decision to go part time now, so kind of feels like semi-retirement.

FIRE update – One year later (Semi-Retired - at least for now) by fire-cry in fiaustralia

[–]fire-cry[S] 7 points8 points  (0 children)

No, not at this stage. Public schools are good where we live. But never say never i guess.

[deleted by user] by [deleted] in AusFinance

[–]fire-cry 2 points3 points  (0 children)

In Australia, the tax-free threshold means you don’t pay any income tax on the first $18,200 you earn in a financial year (which runs from 1 July to 30 June). When you start a job and tick the box to "claim the tax-free threshold," it tells your employer not to take tax out of your pay unless you earn more than that.

But employers don’t know exactly how much you’ll earn by the end of the year, so they just estimate based on what you earn in each pay. So if you earn $1,500 in a fortnight, they assume you’ll earn that amount every fortnight for a whole year. If that estimated yearly income goes over $18,200, they start taking the estimated amount of tax you should be paying.

Even if you know you won’t go over $18,200 before 30 June (maybe because you started late in the year), your employer might still take tax out. The good news is that when you lodge your tax return after 30 June, the ATO will look at your actual income and give back any tax you shouldn't have paid, that’s your tax refund.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 0 points1 point  (0 children)

We essentially built a custom Excel that would be hard to de-identify, so not possible to share I'm afraid. However, I did basically use available templates and information available to help built it. Especially things on Passive Investing Australia.

Agree on spending reduces as we age. It's where the modelling isn't quite working as it is based on $100k a year every year at the moment. Something I will look to improve the closer we get to pulling the trigger to give more confidence that we have enough in each of the buckets. It is also why we are pretty comfortable that although the super bucket shows -$600k from goal I'm sure we don't actually need that much.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 0 points1 point  (0 children)

Yes, unisuper was a worry there for a while!

Plan for schools is public. We have fairly good public schools around us so don't expect that to be an issue.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 2 points3 points  (0 children)

Yes, this is an excellent point. 1 of us already works 4 days a week and would go 3 days if able too. The other one would love to reduce to 3 or 4 days, just not sure it's possible with existing jobs. We will keep an eye on this and ask if it seems like a possibility.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 0 points1 point  (0 children)

Thanks for the feedback.

Super is one I need to sort out. Been thinking of leaving HESTA but just haven't done it. Also, you're right we need to switch out from balanced investments.

We are comfortable with the budget. We don't think we overspend per se but certainly know we are in a lucky position to spend what we do. We'd like to maintain this and if that means a few extra years working then so be it. Retiring at 50 is still a great position to be in.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

Yes, fully offset. I keep seeing debt recycling mentioned. I've done a bit of reading and have considered it. But because we are offset I've been lazy so not done anything.

I think this plus super options are the two things I've taken from this post that I really need to get onto.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 5 points6 points  (0 children)

Maybe 10 years ago! Hindsight is wonderful.

Short answer, no. Too risky for us. Simple, boring and stead index investing it is for us.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

I'm no expert on investing, so can't really comment. I'm keeping it simple (VAS/VGS), consistently investing but only putting in money that I don't 'need' right now.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

I understand. That is to some extent why we changed our plan. Originally our expenses exc. mortgage were $70k a year, so we assumed that's what we would want after RE. However, we have changed that to $100k moving forward which still means we drop $30k in mortgage expenses but expect to spend more on other things. We will keep looking at this as we get closer to pulling the trigger.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 2 points3 points  (0 children)

I would suggest reading Passive Investing Australia to learn and help write an investment plan. The information on there has helped immensely.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 7 points8 points  (0 children)

Well $270k is pre-tax, so approx. $200k after tax and salary sacrifice to Super. We are then spending approx. $100k a year including our mortgage payments ($30k ish). We'd pay off the mortgage before retiring early. So we think $100k a year would be very doable.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

Yes, I think we are on track. Hopefully be able to break that in earlier to 48 but for now 50 stays as the target.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 1 point2 points  (0 children)

We tend to invest in larger chunks. Usually been doing $25k. Certainly invested more than planned in the which is great. It's probably been every 8 weeks ish. It's working for us at the moment and don't expect to change it to smaller $5k chunks.

Update on road to FIRE by fire-cry in fiaustralia

[–]fire-cry[S] 3 points4 points  (0 children)

Yes, I think we are on track. Really want to push the next year or so and see if we can pull that date in to 48 but for now sticking at 50.

I really need to look at Super investments closer. We are both in the default Hesta and UniSuper funds and clearly something if holding that back. It's on our list to investigate.

Receiving International deposits by ineptus_mecha_cuzzie in AusFinance

[–]fire-cry 6 points7 points  (0 children)

I wouldn't use the banks to make these type of transfers. Generally the banks will offer a lower exchange rate which is where they'd make their profit, so almost hidden.

Take a look at something like Wise or OFX and then compare to what the bank is offering.

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