Hello folks!
Been a reader for a while, had a stint chatting a while back. Back again! I need to head back and read through this thread, but thought I'd say g'day and adk some opening questions first.
We are both 41. Early next year we are selling some property at which point our net worth should look like this:
Home $450,000 (Melb outer suburbs)
Hostplus Super indexed balanced $360,000 (been salary sacrificing, but also bumped up by the above sale of land that was an active asset - rolling part of the gain in = no CGT on the sale)
Cash $430,000
Shares $10,000
Mortgage $290,000
Net inc house: $960,000
Happy to consider paying out mortgage, then redrawing some to end up with some tax deductible debt.
There is a chance the land is worth up to a third more than what we are using here - its very difficult to judge given the limited sales in the area. I'll stick with a price/acre we are confident with.
We also have a family trust with several hundred thousand in carried forward losses (income, not capital). We want to utilise these losses if we can, but also minimise franking credits 'lost'. We are both back to being employees - for the moment - but there's a chance I might go back to consulting and be able to utilise the losses that way.
Both hubby and I will be working part time, 32.5% marginal tax rates. Will continue sal sac to super, but due to a potential change at husbands work, being able to salary sacrifice mortgage repayments is a possibility in the near future too.
Would love some thoughts on allocations etc, as well as some feedback on franking on various ETF's.
I'm thinking of:
- paying down entirely and then redrawing $200k on mortgage to invest, bringing us to $340,000 cash
- splitting this $340,000 between $30,000 cash and $310,000 either VAS and VGS, or VAS and VEU/VTS. I'm unsure about allocations.
- I can invest up $110,000 of this via our trust. This is why I was thinking VEU/VTS over VGS - if there isn't as much in the way of franking, we wont be paying tax on this income, and wont be losing the benefit of franking credits (but I'm not sure if I have it right that there are no franking credits on these two)
- leaving Hostplus as is
Feel free to shred any or all of this, here to learn!
Sent from my LG-H815 using Tapatalk