Author Topic: Australia's own MMM (Read 20028 times)

Melody · « **on:** January 02, 2014, 04:22:40 PM »

I just discovered an author Pete Wargent and I'm excited to say I think I've found our own MMM.

His books are focused on investing (low risk, stable investments) but he also stresses "spend less than you earn" and as a multimillionaire doesn't own a car ("I'm rich, in part, because I ride the bus"). He also talks a lot about ethics, motivation etc. So it's like MMM but with Australian focused strategies on how to grow the stash and use the stash to generate income in retirement. (Like MMM the retirement police will be out saying "this guy isn't retired he has a property business"). Anyway, I found the books useful (as MMM is really helpful on the frugality side, but less so on the how to generate income from the stash, minimize taxes etc) which is what I am trying to learn, given stash is currently only allocated between savings accounts and retirement accounts. I would like to introduce property, index funds (which index fund? Pete goes into this) and some blue chip shares (which ones? How should I analyse them) into the mix.

Anyway his blog is here http://petewargent.blogspot.com.au/

If anyone else has any Australian recommendations on books regarding investment/income generation in retirement targeted towards 20 or 30 somethings I'd love to hear about it. (So many books are heavily reliant on Superannuation as a vehicle to build wealth or on already having half a million dollars of equity in your home as start up capital - both of which would only apply to an older person - say 40+.)

NinetyFour · « **Reply #1 on:** January 02, 2014, 04:58:57 PM »

I hope this doesn't mean we are suddenly going to lose all you Aussies on the MMM forum!!!

HappierAtHome · « **Reply #2 on:** January 02, 2014, 05:20:30 PM »

Quote from: NinetyFour on January 02, 2014, 04:58:57 PM

I hope this doesn't mean we are suddenly going to lose all you Aussies on the MMM forum!!!

I don't think we're going anywhere ;-)

I can't look up the url right now because it's blocked at work (thank god MMM isn't), but frugalandthriving is a great resource for Aussie thrift. Lots of ideas on homemade gifts, which veges are in season, how to survive on one income, etc.

Sydneystache · « **Reply #3 on:** January 02, 2014, 05:22:20 PM »

Quote from: NinetyFour on January 02, 2014, 04:58:57 PM

I hope this doesn't mean we are suddenly going to lose all you Aussies on the MMM forum!!!

Don't think so. It is just some finance blogger. With offices in Mayfair and Martin Place, his business isn't that mustachian. You rent those high commercial property places to attract more business. Sorry @melody but the bloke is definitely not that frugal. As for blue chips, just look at the ASX top 20 and see which companies you like or buy into. I used to hold Woolies but sold it last year. Remember markets go up and down and it is about riding through them. I like reading 'Ask Noel' in the SMH.

For other finance related stuff, just subscribe to Money magazine. So far, I find MMM far more useful. Save save save and stop spending so much. Pretty simple really. It is just the consumer noise that gets in the way.

HappierAtHome · « **Reply #4 on:** January 02, 2014, 06:11:42 PM »

Well I have to disagree with you Sydneystache and say I think it's definitely worth the time to check this guy out - a financial blogger offering advice on index funds specifically for Aussies is a very handy link for me (and I suspect many others), so while I'm sure he's no MMM I'll be reading his blog with much happiness and careful attention.

Would love recommendations for other Australian personal finance resources if anyone follows good blogs.

Anatidae V · « **Reply #5 on:** January 02, 2014, 06:16:45 PM »

Possibly outdated, but the first finance books I read were by Anita Bell. She lives in Queensland, or did last time I checked, and was recommended to me by my highschool economics teacher.

Edit: recently found the bare foot investor as well, might be worth checking out.

HappierAtHome · « **Reply #6 on:** January 02, 2014, 06:42:36 PM »

Quote from: anatidaev on January 02, 2014, 06:16:45 PM

Possibly outdated, but the first finance books I read were by Anita Bell. She lives in Queensland, or did last time I checked, and was recommended to me by my highschool economics teacher.

Edit: recently found the bare foot investor as well, might be worth checking out.

I've read some of the barefoot investor articles and I find it hard to figure out what his point is... maybe I have really poor literacy skills? But I'll read one of his articles five times over and still not know what the takeaway for me is. Has that been an issue for anyone else?

marty998 · « **Reply #7 on:** January 03, 2014, 02:13:02 AM »

Quote from: HappierAtHome on January 02, 2014, 06:11:42 PM

Well I have to disagree with you Sydneystache and say I think it's definitely worth the time to check this guy out - a financial blogger offering advice on index funds specifically for Aussies is a very handy link for me (and I suspect many others), so while I'm sure he's no MMM I'll be reading his blog with much happiness and careful attention.

Would love recommendations for other Australian personal finance resources if anyone follows good blogs.

Noooo! Don't listen to him. I'll be out of a job if everyone buys index funds :D

For realestate discussion I lurk on www.somersoft.com/forums. Lots of quality on that forum.

Melody · « **Reply #8 on:** January 03, 2014, 03:25:36 AM »

I think a lot of Barefoot's advice is too conservative for someone in their twenties (and I am incredibly conservative) and some of it is also inconsistent with generally accepted economic principles.It's just a standard save 10%, pay down your mortgage type of advice (although being Australian is still more useful than some other sites). Also much of it is not referenced so it's like you have to take his opinions on faith.

Happier - I'll check out Frugal and Thriving - Thanks!

Marty - Somersoft is gold!!!

Sydneystache - I'll check out money magazine. I don't read magazines normally so it wasn't even something I'd thought of, but I bet I can read the latest issue at the library :) The blog/business might not come across as frugal, but the books by Pete Wargent have more emphasis on frugality. Right now I need both the "how to" and Motivation that MMM gives me as well as some ideas about what to do with all the money I am Stashing thanks to MMM.

HappierAtHome · « **Reply #9 on:** January 03, 2014, 03:30:15 AM »

If you work in the cbd, the city of Perth lending library in 140 william st has super comfy armchairs and a huge range of magazines.

TS · « **Reply #10 on:** January 03, 2014, 05:12:32 AM »

Had a quick look through the blog, but alas couldn't find anything mustachian on it. Looks like a straight property spruiking website to me (which I don't have a problem with, and is in line with his business as a buyer's agent ...)

Sydneystache: In his defence, the offices (at least in Sydney) are serviced offices so they are leasing that space with hundreds of other businesses - not a bad way to get a meeting room at an expensive address to impress clients!

Sydneystache · « **Reply #11 on:** January 03, 2014, 05:37:34 AM »

@TS The Mustachian way would be to not lease in blue-chip places (hint hint he is looking for a particular clientele - and really, Mayfair?), but take his potential clients to the Hilton, 1 Martin Place or 1 Bligh St cafes. Do a bit of people-watching and you never know who you would bump into and network that way. The Clutz offices are in 1 Bligh and so are the PMC's Sydney office. The lawyers and lobbyists are at the cafe for the ambience. Coffee is reasonable too. Alternatively, meet in a yacht club where you bump into that type of crowd.

@Melody Have you downloaded ASIC's money check and track my spend apps?

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/mobile-apps/money-health-check

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/mobile-apps/trackmyspend

Also check the ASX. It has some free online classes to introduce you into share trading.

Melody · « **Reply #12 on:** January 03, 2014, 04:15:36 PM »

Quote from: TS on January 03, 2014, 05:12:32 AM

Had a quick look through the blog, but alas couldn't find anything mustachian on it. Looks like a straight property spruiking website to me (which I don't have a problem with, and is in line with his business as a buyer's agent ...)

The MMM stuff is in his books, the website is definitely more property based.

Sydneystache - Cool, I will check out the money health check app. I don't need the expense tracker because I am big nerd with my own excel spreadsheet that I designed to track everything exactly how I want :) I'm gonna have a look at it anyway though because some friends have asked me if I use an app/expressed interest in one. (I am known as the go to person for personal finance stuff in my friend group!)

Nudelkopf · « **Reply #13 on:** January 05, 2014, 11:55:19 PM »

Ooh! I'm always looking for more Australian articles that are along the Mustachian mindset. I'll definitely check this guy out, if I can get past all those crickets posts :P

happy · « **Reply #14 on:** January 06, 2014, 04:11:24 AM »

Quote

Possibly outdated, but the first finance books I read were by Anita Bell.

Anita Bell is the original mustachian Aussie Frugalista. Her books really helped me when I first became a single mum. Some of the advice is probably dated, but the tips and general principles wouldn't be.

I'll give this guy a read...like a lot of Aussies here its good to find home grown advice.

And I won't be going anywhere:)

stripey · « **Reply #15 on:** January 14, 2014, 05:15:25 AM »

I use the TrackMySpend app on my phone. Pretty basic but does the trick for me (I don't closely budget, I track expenses and just have a monthly limit)

This_Is_My_Username · « **Reply #16 on:** January 14, 2014, 06:08:30 PM »

thanks for the tip melody :)

englyn · « **Reply #17 on:** January 14, 2014, 11:50:04 PM »

Barefoot Investor recently put out a no-brainer portfolio suggestion of how to balance between index funds and which ones. Unfortunately, he is aiming a bit at an audience who doesn't have much of a clue yet or doesn't care, and didn't explain why he chose those particular ones or the balance. I suspect the suggested portfolio is very sound, but without someone explaining why, I'm not about to blindly follow it.

Melody · « **Reply #18 on:** January 15, 2014, 04:08:35 AM »

Quote from: englyn on January 14, 2014, 11:50:04 PM

Barefoot Investor recently put out a no-brainer portfolio suggestion of how to balance between index funds and which ones. Unfortunately, he is aiming a bit at an audience who doesn't have much of a clue yet or doesn't care, and didn't explain why he chose those particular ones or the balance. I suspect the suggested portfolio is very sound, but without someone explaining why, I'm not about to blindly follow it.

I find this with all of his stuff... I am sure it might have sound rationale but I want more than just to be told what to do, I want to know why. His "free car" article is great though!

slothman · « **Reply #19 on:** March 31, 2014, 11:25:38 PM »

thanks to this forum i've been following pete's blog for the past few months

these two blog posts quite neatly sum up his investing philosophy which is beginning to mirror my own:
http://petewargent.blogspot.com.au/2014/04/philosophy.html
http://petewargent.blogspot.com.au/2013/04/5-reasons-to-consider-lic.html

however, i'm wanting to round out my portfolio a little and was wondering what are the best/simplest/tax-efficient ways to invest overseas markets and in australian bonds

something like this, but for aussies:
http://jlcollinsnh.com/stock-series/

any aussies in a similar situation?

marty998 · « **Reply #20 on:** April 01, 2014, 02:30:05 AM »

Regarding bonds - Big 4 Bank Tier 1 listed hybrids would be the most tax efficient. No they are not plain vanilla bonds but they are as safe as you can get without actually owning bonds and you pick up franking credits on the distributions too.

International shares I don't have a particular view - the market is just too big and broad to generalise. Over the past 20 years most Managed Funds invested in the ASX 200 have beaten the (currency hedged) MSCI index in most periods (1, 3, 5, 10 and 20 years) and are more tax efficient due to dividend franking. MSCI index is dragged down considerable by Europe and Japan. The US has held up quite well.

The exception is Kerr Neilson's Platinum International Fund which is a true standout performer.

wesley · « **Reply #21 on:** April 01, 2014, 02:52:52 AM »

Hi Melody and Fellow Aussies,

Currently living in the UK however I am Aussie at heart. In regards to shares or stock picking you need to look up Roger Montgomery, he bases investment decisions purely on fundamentals - read his stuff, watch his you tube vids or appearances with Peter Switzer. You can subscribe to his software package Skaffold (for $1300 per year +) However - get a copy of his book Valueable and the formula for finding undervalued companies is clearly explained in there. You certainly dont need to spend money on the software. BTW its not charting or anything purely based on fundamentals...

Of course if Index is what you are after VAS (vangaurd asx top 300) is easy to get into , pays dividends qtrly and hey its run by vanguard - if you want to match the index you can't go wrong..

for overseas exposure check out the ishares products, great way to get into EU or US depending on your view and they offer unhedged (so while the AUD is high which it is right now you buy and profit fron a falling AUD and a rising overseas share price).

vjb · « **Reply #22 on:** April 03, 2014, 05:26:03 AM »

Thanks for the link, Melody: I'll check Pete Wargent out.

As far as blue-chip shares go, I still think the annual edition of Top Stocks by Martin Roth is hard to beat. Twentieth edition this year!

For property, have you checked out Steve McKnight and Propertyinvesting.com? He used to be all about positive cash flow property (and snapped up a good many US properties during the GFC) but I think now he's advocating commercial. The forum there is pretty active and, from what I can tell, helpful.

kingma15 · « **Reply #23 on:** April 03, 2014, 05:30:26 AM »

Thanks for this thread guys - great reading and website suggestions for a new mustachian!

wesley · « **Reply #24 on:** April 04, 2014, 03:05:46 AM »

Steve Mcknight advocates Wraps and vendor finance, you might get the odd good tip but somerset forums is the way to go when you are starting out and finding your path in terms of property investment

deborah · « **Reply #25 on:** April 26, 2014, 07:41:21 PM »

What about Noel Whittaker?

Kepler · « **Reply #26 on:** April 27, 2014, 09:42:47 PM »

Quote from: HappierAtHome on January 02, 2014, 06:42:36 PM

Quote from: anatidaev on January 02, 2014, 06:16:45 PM
Possibly outdated, but the first finance books I read were by Anita Bell. She lives in Queensland, or did last time I checked, and was recommended to me by my highschool economics teacher.

Edit: recently found the bare foot investor as well, might be worth checking out.

I've read some of the barefoot investor articles and I find it hard to figure out what his point is... maybe I have really poor literacy skills? But I'll read one of his articles five times over and still not know what the takeaway for me is. Has that been an issue for anyone else?

I've had exactly this reaction - I don't ever see any 'there' there... So if company helps...

wesley · « **Reply #27 on:** April 28, 2014, 02:27:15 AM »

Quote from: deborah on April 26, 2014, 07:41:21 PM

What about Noel Whittaker?

Conservative.. I used to think way to conservative but I read a book of his about 20 years ago now that got me very interested in saving and investing. Since coming to this site I have realised how good his info is and why being conservative is a good trait!

Melody · « **Reply #28 on:** April 28, 2014, 05:13:22 PM »

Quote from: wesley on April 04, 2014, 03:05:46 AM

Steve Mcknight advocates Wraps and vendor finance, you might get the odd good tip but somerset forums is the way to go when you are starting out and finding your path in terms of property investment

I read a recent Steve McKnight (after having found the positive cash flow one well written but dated) - it was called financial freedom or something like that. It was written like a self help book... no meat, all fluff :(
That being said, I think the chapter in the positive cash flow property book (called 0 to 300 properties in 3 years or something like that) regarding choosing which regional area to invest in is still relevant (and the best I have read about that sort of stuff) for anyone who is considering non capital city investment (for which there may be legitimate reasons... people say regional areas don't grow, but historically the southwest of western Australia has grown in line with Perth prices while allowing lower entry prices. So for lower income earners who don't have debt security in the form of their own home this may be the best property strategy available. (Interestingly the Positive Cash Flow book was all meat - strategies and how they worked with real life examples.)

Sydneystache · « **Reply #29 on:** April 28, 2014, 10:06:17 PM »

Quote from: wesley on April 28, 2014, 02:27:15 AM

Quote from: deborah on April 26, 2014, 07:41:21 PM
What about Noel Whittaker?

Conservative.. I used to think way to conservative but I read a book of his about 20 years ago now that got me very interested in saving and investing. Since coming to this site I have realised how good his info is and why being conservative is a good trait!

Managed to get my query I sent to him answered...8 months later! Truth be told I ignored most of his advice since finding this site. He doesn't like property and likes equities instead. He can be pretty mainstream and not much response on savings rates. Overall, he is a good sounding board but at the end of the day, it is your finances and you are the only one who can control it.

This_Is_My_Username · « **Reply #30 on:** June 12, 2014, 09:33:05 PM »

melody, it has been 6 months sinse you posted this, and I am loving pete wargent's blog so far.

thanks for the tip

Melody · « **Reply #31 on:** June 24, 2014, 05:47:44 AM »

Thanks :) Make sure you grab the books from the library too!

PeteW · « **Reply #32 on:** July 12, 2014, 02:02:46 AM »

Haha, thanks for the referral - yes absolutely I ALWAYS tell people to get my books out from the library, why on earth anyone would pay $24.95 for a book in Australia is well & truly beyond me...

Agree with many of the comments above.

Sorry, I don't really blog all that much about money-saving tips, because really, apart from using vouchers (of which there are many great options in Sydney), cheap cinema tickets - $11 at Hoyts :-) and reducing major living costs such as house, car, holidays etc...I don't really know what else I can blog about that I didn't already cover in my book.

As someone said above, it's simple...spend less than you earn!

Plus I'm a a bit of a finance nerd in truth, so day to day I mainly blog about geeky economics stuff that I find interesting.

I do write more about property than shares, but that's partly because it's my business so I can give more genuine insights, not because I necessarily think property is a better investment than shares - both asset classes have their time & place.

Finally, as for where our offices are located, our clients buy property around W1 and in inner Sydney, so it wouldn't really work to have an office east of Dagenham or west of Penrith...

Admittedly I fly business class these days as I have to zip back & forth to London quite a lot, but I'm old now (37 this year) & reckon I've earned it...but one thing I can say with absolute confidence is that if you do it the other way by spending hard when you're younger, it will be a long hard career in the workforce trying to get ahead!

Cheers, great resource this.

Pete

P.S. I subscribe to Barefoot as well & I sometimes don't get the stories either, but Scott seems to be a switched on guy, looking forward to seeing his "live investing" thing in action.

Melody · « **Reply #33 on:** July 14, 2014, 06:53:11 AM »

Ha thanks Pete! Certainly the best finance book i have ever read as it seems like every other one is targeted at "old(er)" people but your book is accessable to people in their 20s who may not have equity in their ppor to draw on. I used to work in "big 4" and was lucky enough to have a sensible partner (now an ex but still a close friend) who was fi (and semi re) at 35. So i certainly felt i could relate. Thanks!

JetD · « **Reply #34 on:** August 01, 2014, 06:41:21 AM »

I've just found this thread and have to say that I got Pete Wargent's book Get a Financial Grip out at my local library over a month ago after renewing my loan. It's a fantastic book and I will probably buy it so I can have it as a reference. I love property so it's helping me a lot. Thanks Pete!

PeteW · « **Reply #35 on:** August 06, 2014, 04:25:51 PM »

Thanks for the very kind words. Where should I mail your cheques? :-)

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Author Topic: Australia's own MMM (Read 20028 times)