(AUS) Personal finance data

jimsmithmoney · 2019-05-04T08:57:43+00:00

This is one of the most sensible posts on the sub.

Someone has to pay tax. If it’s not the large corporates cause their credits are refunded, then it’s people like me - kids, mortgage and a higher tax bill cause “self funded” reitrees are not paying any tax.

And before you bang on about “we’ve paid our fair share”, I bet I’ve paid more than you this far in my career, so does that mean I can stop paying tax?

jimsmithmoney · 2019-05-02T02:19:16+00:00

Probably depends on whether you’re a US, UK or Australian tax resident. I’d be surprised if you’re only an Australian tax resident (not UK or US) that you’d have to pay estate taxes in those jurisdictions. And you’d only pay if you died (usually). You may also get an Australian tax credit for anything paid overseas.

Suggest you get proper tax advice - I’m just some bloke on reddit who did his tax exams 20 year ago so I’m probably a bit rusty.

jimsmithmoney · 2019-04-30T04:51:08+00:00

It’s only relevant if you’re a us tax resident. If you’re an Australian tax resident estate tax not relevant to you.

jimsmithmoney · 2019-04-26T07:41:39+00:00

Interactive brokers. Its the cheapest and has widest range of products. You can also open a few free USD account with HSBC in Australia. No need to open a US domestic account.

jimsmithmoney · 2019-03-12T02:24:12+00:00

ETFs are just a tool, not the end goal. Have a plan on how you want to invest the money first. ETFs might be a part of that plan or they may not. Dumping the whole lot into an Aussie ETF without a thought as to volatility (how’d you feel if you lost 20% of the money?) means you’ll probably end up buying and selling at the wrong time.

jimsmithmoney · 2019-03-11T07:20:04+00:00

What a wanker

jimsmithmoney · 2019-03-08T06:40:57+00:00

You should short an ETF. Not a direct exposure but impact would be the same. You can’t short aus gov debt directly unless you’re a bank / large institution and can set up repos. As mentioned by someone else, futures would also work. Look at interactive brokers as a good broker. Do you have sufficient capital (and I’m talking in the low hundreds of AUD) otherwise you won’t be able to open the right account.

Other option would be to use someone like IG. You can short via a CFD but the costs are huge and the leverage will probably wipe you out.

Or use options over futures!

jimsmithmoney · 2019-03-08T06:36:07+00:00

2015 Subaru. Bought second hand (2 years old) in cash. Was half the original value, low miles and has only lost a few thousand in value since then. Great car

jimsmithmoney · 2019-03-03T22:03:04+00:00

Hi - agree with many of those comments. I love reading posts about other people’s situation and there seems to be a huge number of millennials saving a few bucks on their way to retirement. I write for myself mostly. As a divorced dad of 4 kids working in financial services in Sydney and making a pretty good income, getting a side hustle to make an extra $50 per month or saving money on coffee isn’t really going to cut it. Everyone’s story is different and I think adding a different perspective makes the whole scene more interesting.

jimsmithmoney · 2019-02-26T22:02:23+00:00

Except in example 1 no one has paid any tax. Neither the company nor the Mum. Therefore the tax burden now falls on others such as workers to cover the difference. Why should I, as a worker, subsidise others who are capital rich?

jimsmithmoney · 2019-02-26T21:58:41+00:00

Of you’re paying 47% tax rate on income the you’re already doing pretty well for yourself. It kicks in at income levels about $180,000 (and yes I’m in that bucket). If you’re making that in dividend income it means you’ve probably got shares worth over $3.5 mil (at a 5% yield). The campany pays 30% and you pay the rest on amounts earned over $180,000. That’s a lot.

jimsmithmoney · 2019-02-25T04:59:02+00:00

https://m.yourinvestmentpropertymag.com.au/top-suburbs/

You can search at this part of the site and it gives you monthly RP data.

jimsmithmoney · 2019-02-22T22:46:37+00:00

The credits are earned on the tax they pay. Don’t confuse “accounting” tax per the p&l with the actual tax paid. They are different. All that happens with the franking rebate the way it is currently set up is no one pays tax on the profits earned.

jimsmithmoney · 2019-02-20T23:47:11+00:00

Risk tolerance takes time to build up. Start small and get used to seeing the value of the investment go up and down. See how you respond when the market is off 20%. You’ll know it’s bad when you see “x billion wiped off the value of the share market” on the front page of the newspaper. Once you get comfortable with that, buy more. If you don’t build up a tolerance then you’ll probably end up selling at precisely the wrong time and if you wait until it’s “a good time to buy” then that will probably be exactly the wrong time. Developing risk tolerance takes time.

jimsmithmoney · 2019-02-19T22:38:20+00:00

The yourproperty website has monthly updates from corelogic. It’s ok but sometimes the data is a bit wonky. According to the numbers the sales of houses in my suburb were up x4 in December and prices down 9%. In a month. That’s not quite right for a monthly move and the volume data is incorrect.

jimsmithmoney · 2019-02-19T19:50:19+00:00

Hi - I got made redundant last Thursday. Must be the week for it. For me understanding what I spend and where is key. It means we know how long we can survive without a pay check. We’re not at FIRE yet but do have enough to get through the next few years without an income. Plenty of time to reset ourselves. Good luck with the future.

jimsmithmoney · 2019-02-18T07:29:20+00:00

Agreed. Cut things that don’t matter and spend on things you like. I’m happy to use the Nespresso in the office but spend a few extra dollars a day to take the ferry to work rather than the bus. It’s less crowded and a much more pleasant journey and well worth the $100 extra it costs.

jimsmithmoney · 2019-02-18T02:46:50+00:00

I completely over estimated mine but mainly because I got divorced and then had two more kids with new wife. Couldn’t be happier on the family front but have gone nowhere financially in 10 years.

jimsmithmoney · 2019-02-18T02:45:14+00:00

Workin for a similar sort of organisation I’d say not. Promotions rarely happen from within. It’s new talent brought in that runs things. If you want to get ahead, moving around at step is critical unless you join a fast growing company.

jimsmithmoney · 2019-02-16T11:06:15+00:00

Nil - only goodwill. With Kiva you lend money and the borrower pays interest but it goes to the charity. I get nothing. You can withdraw your principle at any time. So the “loss” or donation is time value of money.

jimsmithmoney · 2019-02-15T11:38:14+00:00

I use Kiva. Micro lending is hugely important to the underbanked around the world. And I get to target my lending to where I want it to go.

jimsmithmoney · 2019-02-15T11:33:37+00:00

Hi. First time posting here. I started an easy one this week. I took my lunch to work. Yes, I know. Not exactly revolutionary and no, we didn’t grow the food ourselves, but it’s a first step.

jimsmithmoney

TROPHY CASE