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Would love some feedback...

Discussion in 'Medium/Long Term Investing' started by ChaChing, Jun 29, 2020.

  1. ChaChing

    ChaChing

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    Hi Team,

    First time poster, so apologies if I’m in the incorrect spot and also if these kind of posts are not allowed.

    I’d really appreciate any feedback on my plan.... a bit about our situation:

    • Married with 2 kids, 10 and 8
    • I’m 46 and want to finish my current job at 55, my wife is 40 and also wants to finish at 55
    • I’m now mortgage free - PPOR worth 1 million
    • We both earn 135k each
    • My super 650k defined benefit, my wife 360k defined benefit (public servants)
    • I have 200k sitting in my offset which I’m now looking to invest
    • I’m also in the middle of an inheritance and will receive an additional 300k in 2 years time.
    • My plan is to invest the 200k into ETFs now with a breakdown as follows: 80k VAS, 50k VTS, 50k VEU and 20k VGE
    • I then plan to regularly top these up evenly every 2-3 months with about 5k spread across all. The plan is to hopefully never touch them again and reinvest all shares.
    • Also considering debt recycling redrawing another 300k from my mortgage and invest in something similar to the above over the next few months.
    • What do people think..... am I aggressive enough?.... should I be playing in some more higher risk ETFs?
    • Really appreciate any feedback on my plan team... thanks so much!
     
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  2. frugal.rock

    frugal.rock

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    My opinion is to seek the advice of a qualified & licenced financial advisor and broker and accountant.

    There's too many implications re the taxation, business structure, super etc etc.
    You probably want to get it right from the very start ?

    I redrew from the mortgage instead of finishing it up and having a certificate of title in my hands, instead of a banks greedy mitts.
    Something I will regret until the day I die...:2twocents
     
  3. Smurf1976

    Smurf1976

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    Firstly, welcome to ASF! :xyxthumbs

    As a bit of background, the law precludes anyone other than a licensed financial advisor from giving "advice" - that's a legal issue which applies to all stock market forums not just this one.

    We can however give opinions and say what we'd do under the same circumstances and leave it to you decide whether or not to do likewise.

    With that in mind, I'd start by asking myself some questions and crunching the numbers. The big one being "how much money do I want to spend each year in retirement?"

    Once that question is answered, it then leads to working out how much capital you need to have by the time you retire in order to produce that income.:2twocents
     
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  4. tech/a

    tech/a No Ordinary Duck

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    CC

    it’s a plan which is more than most
    How it will perform is anyone’s guess.

    You’ll be testing in real-time
    If it was me I’d have a further plan
    In case it underperformed against my
    Expectations. Define under performance

    know when to hold and when to fold.

    I’d also want a plan for if it exceeded expectations.
     
  5. makteb

    makteb

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    Once you have confirmed with your advisor and/or accountant your intention and investment decisions, your journey to trading education beings again. Have all your trading accounts set up correctly for taxation/retirement purposes.

    I personally not a fan of financial planners products as have been burnt some 15yrs ago which lead me on this path of self investing and fulfillment.

    Plan your trade, then trade your plan.
     
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  6. rederob

    rederob

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    It's a simple set and forget plan.
    I would have a closer look at the range of ASX ETFs available rather than just rely on Vanguard.
    As you are relatively young, you might also look to put higher percentages into some more aggressive funds for 5-6 years and see how they go.
    Some, like ASIA, could be cycled in and out after good returns.
     
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  7. ChaChing

    ChaChing

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    Really appreciate the comments so far, thankyou.

    Over the past few months I’ve spoken to 3 financial advisors.... I went a long way with one of them who is highly regarded where I live..... his advice was to pay off the mortgage (which I was going to do) and then invest the 200k i to etfs in the industrial sector.... my super is Mickey Mouse so I don’t need any tweaks in that or life insurance..... I was going to be charged $8800 up front and then $8800 each year to maintain ie invest 8 weekly etc and give advice and have a review meeting..... now I have no clue to investing so would probably value the advice.... I then spoke to a friend
    Who is also an advisor who recommended I do what I set out above.... which is sort of what the other guy advised me to do.... but if I have a crack and do it myself I save 16k this year!..... thoughts?
     
  8. ChaChing

    ChaChing

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    Appreciate the reply rederob... is ASIA the ETF code?... I really feel as though I need a smallish % to have a calculated gamble on!
     
  9. Garpal Gumnut

    Garpal Gumnut

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    Stay away from financial advisers.

    Browse the threads here on ASF.

    Check the level of risk appropriate to your age, appetite, income and assets.

    And go forth.

    gg
     
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  10. frugal.rock

    frugal.rock

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    One can only hope that this area has been cleaned up somewhat by the royal commission....

    It does sound like a fair plan.
    The advice to pay off the mortgage is highly sound from my point of view. :oops:
     
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  11. Bill M

    Bill M Self Funded Retiree

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    Hi and welcome to the forum. You are in a wonderful position already which tells me you are quite a good saver and have put a lot of thought into your future. If it was me I would clear the mortgage first too. Now that you have spoken to some financial advisers as well, you also have some good ideas as to what you would like to do.

    I would not use Financial Advisers myself and save the 8.8k up front fee and the ongoing free. With a bit of knowledge you can do all your own investing for free. I didn't even make it uni and do all my investing myself and retired early as well. In the early days when I was working I spent all my spare time reading books and financial magazines and learnt all about investing for myself. These days with the internet it is even easier. It really isn't that hard and with ETF's it's almost totally hands off. You are on the right track, all the best and good luck!
     
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  12. rederob

    rederob

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    Yes, ASIA is the ASX code for the ETF.
    All up you have planned only 2% in "growth" so I was thinking that up to 5% until you turn 55 might be an affordable risk.
     
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  13. frugal.rock

    frugal.rock

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    A common opinion emerging here.
    Any investment based from borrowed equity has inherently higher risk.
     
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  14. over9k

    over9k

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    If you close out the mortgage, it's not like you won't be able to borrow plenty of cash at very favourable rates - lots of assets, lots of income, extremely secure jobs... You'd be about as highly rated as it gets.

    You'd also, I suspect, have enough spare income to be able to salary sacrifice the max amount into your super too, which is one of the biggest tax dodges there is.
     
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  15. tech/a

    tech/a No Ordinary Duck

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    This is a much chanted mantra and in today's 2-3% interest rates that you can lock down for years.
    Im sure this mantra comes from people who are afraid of even the basic investment principals.

    I just dont agree with it.

    If you cant invest at over 3% a year then you have a serious problem with investment.
    If you have a redraw of $300K on a million property that has growth of 1.5% a year thats $15000
    on a $6-9K cost. EVEN if that didn't occur for a few years. AND if it drops a little in that time
    It was going to happen ANYWAY.

    Personally learning the power of Leveraging other peoples money and how to mitigate RISK is the key to wealth!
    In the case of Property and Margin I can use 80% of their money and make whatever I can over their fee for using it and KEEP IT!

    ****EG $100K down Borrow $400K at 3% make even 5% over say 3 years pay the 400K back plus the fee $36K which
    is tax deductible. Keep the $39K---thats 39% on my $100K in 3 years----Now do that with 10% return or better! ****


    I've used it all my life from Property to Development to Trading/Investing To Machinery purchases (Trucks and Excavators).
    Still do and will continue to do during semi and permanent retirement. My beneficiaries can sort it out however they see
    fit when I push off! (Plenty left!).
     
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  16. over9k

    over9k

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    Agree with duck 100%. There's just a lot of bull**** that goes along with having a mortgage still open.

    It'd be well worth looking at what rate you can borrow for as a standalone loan vs redrawing out of the mortgage. If the difference is trivial, keeping the mortgage open wouldn't be worth the headache IMO.

    It's hard to say anything else without knowing those figures.
     
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  17. qldfrog

    qldfrog

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    Really a matter of risk and comfort: true, you do not get rich without leveraging others money, I would even add, you do not get rich owning things, you get rich controlling them.
    But having no morgage left is a lifestyle choice, feeling better..safer..whatever is your mind;
    after why close it? keep a matching offset account open; to at least have the opportunity to get money at will at a click of a button
    Then it is your call to use it or just keep it if opportunity arises or your car blows up and you need a new one
     
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  18. tech/a

    tech/a No Ordinary Duck

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    That applies to many many things.
    From People to situations to negotiations to day to day life.
    It doesn't have to be dictatorial either --- subtle control is
    very powerful.

    I was suckered into a car purchase $50K over Id had in mind to part with.
    Typical Puppy dog sale---take it home
    But with the addition of --- " When your on the freeway floor it ."
    I did just that --- Jettisoned back 70mm in the seat and grabbed the phone.
    (it was sync'd)

    " Hi Honey its me Im just driving the car I just bought
    home---see you sooner than I thought!"
     
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  19. tech/a

    tech/a No Ordinary Duck

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    Oh by the way the Missus drives it!
     
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  20. frugal.rock

    frugal.rock

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    And a recession similar to the 1988-89 event with interest rates climbing to ~17% is never going to happen again.
    The whole being wealthy thing is overrated IMO.

    More, more, more.
     
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