Hi Guys,
I am new to this forum but I have been following MMM for over a year and have read all his posts.
My situation: Married Age 36, OH 31, 1 Child 2 years old.
Live in Australia
Currently Renting: Rent 20k p.a (small two bed unit)
Own 2 Investment Properties worth $880k (in a different city/state), mortgage $573k
Own land: Price $285k, deposit paid $15k (transaction will be completed once the land becomes available mid next year) loan will be $270k (currently $0)
Will build a house on this land once its available, construction cost ~$400k (including 1 bed granny flat for renting until aged parents want to move in)
My Super(similar to USA IRA retirement fund): $75k
Partners: $5k
Combined Income: Gross $265k (since last year)
After Tax Income: ~180k
Super Contribution: 22k p.a for myself
Partner Super Contribution: $5k p.a
Cash $180k in an offset account
Interest rate on loans ~4.75%
No other debts/bad debts
Other yearly living expenses 40k
* I also expect inheritance of around $1M at some stage of my life (as a house) but don't want to count that into my financial planning at this stage.
We can comfortably live off 40k income when retired (without travel). Would like to aim for 60k passive income to retire on. I would like to retire by age 52 or at least partly retire. Noting I can't access Super until age 60.
I am hoping to have a net income of 30k from the two properties once they are fully paid off and an additional 10k p.a from the granny flat.
I am looking at buying Vanguard ETFs. 80/20 shares/bonds but can't convince myself to do it. Reason being that if instead I put that money into my super I get tax advantage of 22%. Downside being that I can't touch the money until I am 60 yrs old.
I expect to have all my debts paid off by the age 48 (12 years from now). Which gives me about 4-5 years of solid cash saving to last me between age 52 to 60 plus the 40k passive income from IPs.
So should I buy Vanguard ETFs or put more money into my super or pay off my debts as a priority?
Any other advise is welcome.
Thanks
Bob