Author Topic: Australian Investing Thread  (Read 1041886 times)

Gremlin

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Re: Australian Investing Thread
« Reply #4000 on: May 08, 2018, 07:24:56 PM »
Woohoo.  Non-super balance touched the million dollar mark today.  It took a dive when I moved the $540k into super 18 months ago.  So  now I have greater than a million in super and outside of it.

Retiring come new financial year.

Awesome work mjr!

asosharp

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Re: Australian Investing Thread
« Reply #4001 on: May 08, 2018, 09:12:07 PM »
Congrats @mjr!

And the budget... I find it interesting that there's the backlash for an extra $10 a week in the pocket. While $10 a week is good for savings, on the other hand Australia's services and infrastructure is poor so that $10 a week could have been used to actually do something more important. Society ends up losing in a way.

I used to have a client in disability services until I left that company last year and I kept hearing from them and basically people in the industry is what a major mess / catastrophe it is with NDIS/NDS. For people who need help, we could be spending to fix that mess... plus many others that are out there. Take your pick of causes that need our help.

I don't approve of the one for high income earners though.

steveo

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Re: Australian Investing Thread
« Reply #4002 on: May 08, 2018, 09:58:25 PM »
Woohoo.  Non-super balance touched the million dollar mark today.  It took a dive when I moved the $540k into super 18 months ago.  So  now I have greater than a million in super and outside of it.

Retiring come new financial year.

That is a tonne of money. Do you own your house ?

Great work though and good luck in retirement.

ynotme

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Re: Australian Investing Thread
« Reply #4003 on: May 09, 2018, 04:45:58 AM »
Woohoo.  Non-super balance touched the million dollar mark today.  It took a dive when I moved the $540k into super 18 months ago.  So  now I have greater than a million in super and outside of it.

Retiring come new financial year.

That's a fantastic milestone and a great way to enter retirement!

marty998

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Re: Australian Investing Thread
« Reply #4004 on: May 09, 2018, 05:47:36 AM »
Any thoughts on the budget? Seems  bit meh to me. Most useful analysis I read referred to the government 'keeping their powder dry' to buy votes in the lead up to the election.

It is hard not to get frustrated with the politics of budgets. Also the language used in the media which frames it as "Winners vs Losers". "Are you a winner from the budget?" etc. Surely on some level the aim should be to improve the overall society not pick winners and losers?

This is a far too sensible suggestion.

mjr

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Re: Australian Investing Thread
« Reply #4005 on: May 09, 2018, 06:38:28 AM »
Woohoo.  Non-super balance touched the million dollar mark today.  It took a dive when I moved the $540k into super 18 months ago.  So  now I have greater than a million in super and outside of it.

Retiring come new financial year.

That is a tonne of money. Do you own your house ?

Great work though and good luck in retirement.

I do own my house, yes.  House is not included in the $2.2m net worth.

Thanks for the congrats, all.
« Last Edit: May 09, 2018, 11:19:08 AM by mjr »

steveo

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Re: Australian Investing Thread
« Reply #4006 on: May 09, 2018, 05:16:57 PM »
Woohoo.  Non-super balance touched the million dollar mark today.  It took a dive when I moved the $540k into super 18 months ago.  So  now I have greater than a million in super and outside of it.

Retiring come new financial year.

That is a tonne of money. Do you own your house ?

Great work though and good luck in retirement.

I do own my house, yes.  House is not included in the $2.2m net worth.

Thanks for the congrats, all.

Freaken awesome.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4007 on: May 10, 2018, 03:12:03 PM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

marty998

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Re: Australian Investing Thread
« Reply #4008 on: May 10, 2018, 03:33:57 PM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

Pay cash, move on with life. Eliminate the complexity.

Will say that $5k is very low for a car (even if a used car).

centastic

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Re: Australian Investing Thread
« Reply #4009 on: May 10, 2018, 04:48:12 PM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

I recently had to buy a car, ended up going new (end of year runout) after looking at second hand for about five months. I think the second hand car market is in a strange state at the moment where there are very few bargains. Instead of your car losing 20% of its value the moment you drive it off the lot, the drop-off is much more smooth, much more linear.

I'm not sure the reason, but my hypothesis is that it's a combination of technology lifting the fog (previously the market was nothing short of a confusopoly), more Australians feeling the squeeze and looking to save on a car purchase (ie more people opting for second hand), and "lock in" by manufacturers, whereby there are large enough benefits to trading in your car at the place you bought it that these car yards basically get to control the market.

Agree with Marty999 re: paying cash, for the same reason.

GT

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Re: Australian Investing Thread
« Reply #4010 on: May 10, 2018, 07:17:59 PM »
Add in a couple of other things.

Finance for new cars has low % rates and local manufacturing has gone, so everything is pretty much an import.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4011 on: May 10, 2018, 09:49:35 PM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

Pay cash, move on with life. Eliminate the complexity.

Will say that $5k is very low for a car (even if a used car).

Thanks. What would you say would be the right price for a used car? And what car? I want something easy that I can put the bike in and take to some riding trails.

Notch

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Re: Australian Investing Thread
« Reply #4012 on: May 10, 2018, 11:10:32 PM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

Pay cash, move on with life. Eliminate the complexity.

Will say that $5k is very low for a car (even if a used car).

Thanks. What would you say would be the right price for a used car? And what car? I want something easy that I can put the bike in and take to some riding trails.

Two months worth of take-home pay is a good rule I think.

middo

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Re: Australian Investing Thread
« Reply #4013 on: May 11, 2018, 03:46:24 AM »
More than $3000 is money wasted.  I have spent $2200 on a commodore 2 years ago, and spent less than $300 servicing and repairs in that time.  Starts every day needed and currently my daughter's ride in another state.

$7000 is wasting money.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4014 on: May 11, 2018, 06:04:32 AM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

Pay cash, move on with life. Eliminate the complexity.

Will say that $5k is very low for a car (even if a used car).

Thanks. What would you say would be the right price for a used car? And what car? I want something easy that I can put the bike in and take to some riding trails.

Two months worth of take-home pay is a good rule I think.

Umm, thatís a lot

Richmond 2020

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Re: Australian Investing Thread
« Reply #4015 on: May 12, 2018, 04:37:34 PM »


Two months worth of take-home pay is a good rule I think.
[/quote]

Umm, thatís a lot
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Depends on your take-home pay I guess lol.

misterhorsey

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Re: Australian Investing Thread
« Reply #4016 on: May 12, 2018, 07:31:38 PM »
Capping a purchase price as a multiple of your income may make sense if you're on a lower income/needing to budget and wanting to maximise what you get for what you pay for, but may not make much sense if you are on a higher income seeking good value, but still wanting to minimise what you pay.

You'll end up potentially overpaying.  I.e. If your on $10k a month, why pay $20k for a car when you might be able to get away with $10k.

Maybe start an Australian car thread here on MMM or look at a car forum for suggestions?

My tips would be to look for a car that has a good reputation for reliability/ has low servicing costs / ready cheap after market for spares / low kms / good mileage / something you wouldn't insure comprehensively if you can get away with it / not the first iteration of it's model .....Toyota Camry anyone? (Yawn...)

Of course, all of the above is just an excuse for me to post a totally off topic top gear comparison between a 1991 Peugeot 205 and a Porsche 911R, which shows you don't need to spend huge $ for a great driving experience:

https://www.youtube.com/watch?v=EfDHULZZjpQ

Of course, no car is the best!  What state are you in Mr Different?  I'm lucky enough to live in Melbourne where there are plenty of bike trails, but I do sometimes wish I had a car as then I'd buy a  MTB and go on some single track.  It's one compromise I've been willing to make to avoid car ownership.

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4017 on: May 12, 2018, 11:56:58 PM »
Capping a purchase price as a multiple of your income may make sense if you're on a lower income/needing to budget and wanting to maximise what you get for what you pay for, but may not make much sense if you are on a higher income seeking good value, but still wanting to minimise what you pay.

You'll end up potentially overpaying.  I.e. If your on $10k a month, why pay $20k for a car when you might be able to get away with $10k.

Maybe start an Australian car thread here on MMM or look at a car forum for suggestions?

My tips would be to look for a car that has a good reputation for reliability/ has low servicing costs / ready cheap after market for spares / low kms / good mileage / something you wouldn't insure comprehensively if you can get away with it / not the first iteration of it's model .....Toyota Camry anyone? (Yawn...)

Of course, all of the above is just an excuse for me to post a totally off topic top gear comparison between a 1991 Peugeot 205 and a Porsche 911R, which shows you don't need to spend huge $ for a great driving experience:

https://www.youtube.com/watch?v=EfDHULZZjpQ

Of course, no car is the best!  What state are you in Mr Different?  I'm lucky enough to live in Melbourne where there are plenty of bike trails, but I do sometimes wish I had a car as then I'd buy a  MTB and go on some single track.  It's one compromise I've been willing to make to avoid car ownership.

Yeah, my take home pay is too much to use that rule, defeats the purpose. Iím in Sydney.  I know nothing about cars. Iíd probably use it twice a month on the weekends. I read running costs are about $6k a year, thatís crazy!

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4018 on: May 13, 2018, 12:44:17 AM »
Used your advice Misterhorsey. Car I want is Nissan Pathfinder between 1999-2004. Can get for $3-7k.

misterhorsey

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Re: Australian Investing Thread
« Reply #4019 on: May 13, 2018, 03:22:12 AM »
Used your advice Misterhorsey. Car I want is Nissan Pathfinder between 1999-2004. Can get for $3-7k.

Er, please note I'm no car expert. Unless your able to do your maintenance I'd be wary of an older model 4WD, mainly because there's so much that can wear out and go wrong, and a 4WD  has so much weight to carry compared to a car, and thus petrol to consume.

MMM has some great posts debunking the utility of 4WDs:

http://www.mrmoneymustache.com/2014/12/01/all-wheel-drive-does-not-make-you-safer/
https://www.mrmoneymustache.com/2015/04/28/what-does-your-work-truck-say-about-you/

My actual advice would be not to buy one if you only plan to use it only twice a month.  I'd use a car next door instead - https://www.carnextdoor.com.au/.  2 times a month is 24 times a year.  Different story if you needed a car to commute with, but if you're only using a car for 24 times a year, then let someone else worry about maintenance, servicing, repairs, insurance and rego.  Rent it as you need.

A lot of people seem to rationalise a car purchase by saying they will go camping or hiking on weekends, but often find that life gets in the way and they find they don't get away as much as they can.

Of course if you find renting a car doesn't cover the times you use it, then I'd consider buying one.  But I'd get a mustachian inclined rev head to advise you.

I appreciate being carless in Sydney can be tricky if you aren't near decent PT, which is a shame.  That's one of the reasons why I stayed in Melbourne after moving down here (although apparently more people commute by car in Melbourne than in Sydney - but the inner city is very well serviced with PT and, more importantly, bike paths.)

Good luck!!
« Last Edit: May 13, 2018, 04:19:05 AM by misterhorsey »

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4020 on: May 13, 2018, 04:31:44 AM »
Used your advice Misterhorsey. Car I want is Nissan Pathfinder between 1999-2004. Can get for $3-7k.

Er, please note I'm no car expert. Unless your able to do your maintenance I'd be wary of an older model 4WD, mainly because there's so much that can wear out and go wrong, and a 4WD  has so much weight to carry compared to a car, and thus petrol to consume.

MMM has some great posts debunking the utility of 4WDs:

http://www.mrmoneymustache.com/2014/12/01/all-wheel-drive-does-not-make-you-safer/
https://www.mrmoneymustache.com/2015/04/28/what-does-your-work-truck-say-about-you/

My actual advice would be not to buy one if you only plan to use it only twice a month.  I'd use a car next door instead - https://www.carnextdoor.com.au/.  2 times a month is 24 times a year.  Different story if you needed a car to commute with, but if you're only using a car for 24 times a year, then let someone else worry about maintenance, servicing, repairs, insurance and rego.  Rent it as you need.

A lot of people seem to rationalise a car purchase by saying they will go camping or hiking on weekends, but often find that life gets in the way and they find they don't get away as much as they can.

Of course if you find renting a car doesn't cover the times you use it, then I'd consider buying one.  But I'd get a mustachian inclined rev head to advise you.

I appreciate being carless in Sydney can be tricky if you aren't near decent PT, which is a shame.  That's one of the reasons why I stayed in Melbourne after moving down here (although apparently more people commute by car in Melbourne than in Sydney - but the inner city is very well serviced with PT and, more importantly, bike paths.)

Good luck!!

Thanks. I do ride my bike everywhere. Yeah, car service does make sense. Running costs look to be at least $200/fortnight.

gsp

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Re: Australian Investing Thread
« Reply #4021 on: May 15, 2018, 12:01:48 AM »
Hi All
I want to change my super to low fee industry super. Can you suggest low fee and has  MSCI ACWI - All Country World Index on it ?

MrThatsDifferent

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Re: Australian Investing Thread
« Reply #4022 on: May 22, 2018, 03:45:08 PM »
Hi All
I want to change my super to low fee industry super. Can you suggest low fee and has  MSCI ACWI - All Country World Index on it ?

I think Australian Super is awesome and love their app.

Luckyvik

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superannuationfreak

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Re: Australian Investing Thread
« Reply #4024 on: May 23, 2018, 06:10:55 AM »
Hi All
I want to change my super to low fee industry super. Can you suggest low fee and has  MSCI ACWI - All Country World Index on it ?

Many super funds' international shares options use MSCI ACWI ex-Australia as a benchmark (but will often be actively managed, albeit often reasonably priced).  I don't know of a cheap ACWI fund.

However you can proxy it with approximately 90% MSCI World and 10% MSCI EM.  SunSuper offer MSCI World Ex-Australia and MSCI EM (and you can divert 2% into ASX 200 if you don't have Australia elsewhere and wanted it).  No real need to rebalance as it will naturally float close to the relevant market cap weights.

chasingthegoodlife

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Re: Australian Investing Thread
« Reply #4025 on: May 23, 2018, 04:48:52 PM »
Re: used cars: good advice above (don’t knock the Camry!) and renting may be the best option for you.

Our best car buys have been from a friend or relative with a known reliable car that is upgrading. Often they are thrilled to get more than they have been offered as trade in value, and still much cheaper than buying used from a dealer. Have bought two cars second hand from unknown sellers too, one was fantastic (97 pulsar, recently retired) and one was an absolute disaster that has cost us a lot of money. The second cost about twice as much, money paid is no guarantee. In future I will probably stick to common model, cheaper to repair cars (Toyota Camry :) )when buying secondhand and do some prior research on known faults. 

One more thing, if you are planning to take the car out of the city consider if the safety features of slightly newer cars are worth paying for. When I lived in Melbourne any old junk bucket was fine, but now I’m driving long distances on country roads every day with kangaroo hazards, poor road surfaces etc my husband insisted I upgrade to something with ABS and airbags.

Eucalyptus

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Re: Australian Investing Thread
« Reply #4026 on: May 23, 2018, 06:51:10 PM »
I'm inclined to agree with the newer model cars bit:
https://www.youtube.com/watch?v=xidhx_f-ouU


The difference in safety and survive-ability is not that insignificant. Note that most fatalities are really two-car head ons like this, rather single car accidents from dangerous driving, fatigue, alcohol/drugs, inattention, etc. If you control those factors your own chances are much reduced. Doesn't take into account other idiots on the road. Though understanding and being cautious with others, watching your mirrors, defensive driving, etc, reduces the chances again.


Carsales.com.au is a good way to search for cars. You can limit by location, km, ANCAP safety rating eg set to 5 stars, fuel economy, price. This narrows down good options. There are often many reasonably low km Prius that aren't too expensive.


TheEmuSydney

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Re: Australian Investing Thread
« Reply #4027 on: May 23, 2018, 07:52:53 PM »
What do you guys think of https://www.spaceshipinvest.com.au/ ?

PDM

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Re: Australian Investing Thread
« Reply #4028 on: May 23, 2018, 08:42:30 PM »
What do you guys think of https://www.spaceshipinvest.com.au/ ?

I referred to my usual source of proper financial advice - https://www.macrobusiness.com.au/2017/08/spaceship-deemed-space-cowboy/
and ended up here:

https://cuffelinks.com.au/spaceship-stalls-launch-pad/

They seem to give a fairly comprehensive run down.

Seems like more fancy marketing over substance? Targeting millennials?

johnnydoe

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Re: Australian Investing Thread
« Reply #4029 on: May 24, 2018, 02:37:44 AM »
Australia peeps, apologies for a bit off-topic, but Iím thinking of getting a used car. I could either pay cask for something $5-7k or salary package something $10-15k. Iíve got a pretty good job, good pay. Whatís the mustachian view on salary packaging cars?

I'm a fan of using the RACQ guide on car running costs https://www.racq.com.au/cars-and-driving/cars/owning-and-maintaining-a-car/car-running-costs. I used it as a guide for which car would have the lowest on-going costs then bought that second-hand in cash. I've been happy with the decision! I don't think salary sacrificing is worth it as you can generally buy a second-hand car for much cheaper, and if you are handy and do some maintenance yourself you can save more $$s

marty998

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Re: Australian Investing Thread
« Reply #4030 on: May 24, 2018, 05:40:02 AM »
What do you guys think of https://www.spaceshipinvest.com.au/ ?

I referred to my usual source of proper financial advice - https://www.macrobusiness.com.au/2017/08/spaceship-deemed-space-cowboy/
and ended up here:

https://cuffelinks.com.au/spaceship-stalls-launch-pad/

They seem to give a fairly comprehensive run down.

Seems like more fancy marketing over substance? Targeting millennials?

Yep - just a new way of extracting fees - dress it up as high reward investments without making crystal clear it's very high risk and high fee.

FFF

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Re: Australian Investing Thread
« Reply #4031 on: May 24, 2018, 05:51:04 PM »
What do you guys think of https://www.spaceshipinvest.com.au/ ?

I referred to my usual source of proper financial advice - https://www.macrobusiness.com.au/2017/08/spaceship-deemed-space-cowboy/
and ended up here:

https://cuffelinks.com.au/spaceship-stalls-launch-pad/

They seem to give a fairly comprehensive run down.

Seems like more fancy marketing over substance? Targeting millennials?

Yep - just a new way of extracting fees - dress it up as high reward investments without making crystal clear it's very high risk and high fee.

It seems like there are 2 different products being discussed above. I agree that the Spaceship super fund (https://www.spaceship.com.au/) is very high fee at around 1%pa for GrowthX.

However, the general fund (https://www.spaceshipinvest.com.au/) is offering investment in their Spaceship Index Portfolio for MER 0.05% with no buy-sell spreads, no entry-exit or brokerage fees, and the first $5000 invested is fee free. Admittedly, the portfolio details are rather sketchy but I can't help but feel I'm missing something here. What's the catch?

PDM

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Re: Australian Investing Thread
« Reply #4032 on: May 24, 2018, 06:11:32 PM »
Good point. I don't see how they're making any money there at all. Is it a play to build up market share and customers then sell the business?

FFF

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Re: Australian Investing Thread
« Reply #4033 on: May 24, 2018, 06:21:51 PM »
Good point. I don't see how they're making any money there at all. Is it a play to build up market share and customers then sell the business?

Maybe, probably.

Either way, without knowing exactly how the money is invested means I'm not going to touch it. They have a rough breakdown in the PDS that it's 75% global large caps, 20% Aussie large caps, 5% cash, all directly invested (i.e. no ETFs) but that is virtually meaningless without any further details.