Author Topic: Australian needs advice (never invested)  (Read 1140 times)


  • 5 O'Clock Shadow
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Australian needs advice (never invested)
« on: January 06, 2019, 04:41:34 AM »
Hi everyone,

I've just turned 48 and unfortunately have not made any steps to invest until now.  I have been looking at Vanguard products as well as going through St George.  I just need advice as to the how to go about how to actually figure out what product is right for me? 

Case study.
1 working, 1 on pension (at less than $50 per week as I earn too much!?)
Own our home $450,000 est
No Debts
Approx $20k in savings

Monthly net income     $4337.56

Monthly Expenses:
House Insurance      $102.00
Rates                      $246.77
Private Health(2pax) $305.00
Phones, internet        $113.30
Electricity                 $105.83
Car Reg/insur            $94.86
Pub. Transport           $142.56
Food/wine/fuel          $1400.00

Expenses per month est $2527.26
Leftover                         $1809.99

My super fund fees are quite low.  I am planning on contributing an extra $1k per year into my fund.  I have approx $150,000 only in my super fund.

I've been wondering if I should open a Vanguard account on behalf of my retired partner and contribute as much as I can ? 

We do live very frugally.  We don't eat out ever and cook from scratch, that is just what we enjoy. We don't have expensive hobbies are a mainly homebodies.  A death in the family has made me really think about my life and where I am going financially.  I do appreciate everyone's help and guidance.

Thank you everyone for all your help and advice.
« Last Edit: January 12, 2019, 07:11:02 PM by Graduate1079 »


  • Magnum Stache
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What's your savings rate? You may need a fairly high rate to ER within five years.

Any opportunities to increase your income?

Are you putting any extra into your superannuation? What sort of fees does your super fund charge?

At 48 you're probably going to need a different strategy to if you were 28. Given you're 12 years from preservation age, you'd probably want to be focussing on getting your super sorted and putting as much as possible into it*.

*this isn't advice (#coveringarse)
« Last Edit: January 06, 2019, 05:28:24 AM by alsoknownasDean »


  • Walrus Stache
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In a perfect world I would be retiring in 5 years.

In a perfect world, I would have super models throwing themselves at me for stud service, handing me millions of dollars for pocket money, and my wife would be happy about it.

Based on your savings and income, I think the odds of me living in a perfect world are higher than yours.

Go to the case study part of this forum, read the sticky note about how to do a case study, and fill out a case study.   Then we'll have a chance to give you good advice because we'll have the data we need.

And put a link to it here so we can find it.


  • Bristles
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As SwordGuy mentions we would need a proper case study to make meaningful suggestions.

But lets look through the rose coloured glasses... Just on the numbers you have given, if you save ALL of your net income for the next five years and assume a 7% return, you would have a stash of ~$320K. Lets assume your employer is putting $10K a year into super and you are getting the same 7% return, in five years you might have around $270K there. Ignoring that you won't be able to access that for another seven years, your total stash would now be ~$590K. Based on 4% you could then draw down $23K per year.

You say you are frugal and live within your means, but this typically means you spend all that you earn but not more than you earn. Could your family survive on $23K per year? The numbers look worse if you get a bit more realistic. Assuming you need half your current salary to live on and can invest the other half and your employer only puts $5K into super, you get to a stash of ~400K and a draw down of $16K per year.

Without seeing a case study this is all guesswork but I suspect a more realistic strategy would be to max out your super every year, try to increase your family income, start to get seriously frugal and invest what you manage to save outside of super, and plan on working till 60.
« Last Edit: January 06, 2019, 01:43:52 PM by ozbeach »


  • Handlebar Stache
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Under Investor Alley is an entire thread on Australian Investing. I would read all of it. Yes, itís long, might take you a week or two, read it all. I also got the Barefoot Investors book, itís good mostly because it gives the Australian perspective of what to invest in. Also, read MMMís most popular articles. Try to read as much as you can from him.

You donít need St George, you can invest directly into Vanguard Australia. As for which product, call them to discuss. I use the aggressive life strategy product.

The best way to start is to work backwards. What do you expect your expenses to be in retirement? Times that by 25. Youíre starting late and donít have much in savings or your super.  Thatís not fatal per se, but it will take a lot from you and your family. Definitely do a case study. 5 years may not be realistic, but 10 years may be. Thatís still retiring earlier than most.


  • Walrus Stache
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Need a lot more details, though based on what you have there is not much chance of you retiring at 53.

As mentioned up above, putting as much into super as possible is the best bet at your age.

It's good you have a paid off house. Solid foundation to work around, and not having to worry about mortgages or rent in retirement.


  • Senior Mustachian
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