Author Topic: Australia at the moment, then who knows??? Time to act!!! [case study]  (Read 6224 times)

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Hi everyone,

I'm extremely new to the forum but I'm following MMM for a while now, and let me say that this community is just amazing!!!

I feel I'm in a very lucky situation at the moment but I'm afraid it won't last very long (I'll explain quickly later), so I need some help to try to get the best out of it.

Investing skills: definitely a newbie

Life Situation:   I'm 34, recently (4 years ago) moved to Australia from Italy, it started as a long holiday and it has become a very long holiday. I'm a lab tech in a mine site, I spend 2 weeks at work and 1 week back home in Perth (WA). I'm still a temporary resident but I'll be permanent, hopefully, by the end of this year (a lot of little disadvantages should disappear then).

**Currency AUD**

Gross Salary/Wages: $82000 / $3150 every fortnight

Current expenses:
Rent: $500 month / $125 week (room in share house)
Health insurance: $100 month (will be probably 50% less as soon as I'm PR)
Mobile: $30 month
Food: $100 month
Gas,electric,internet: $0 (included in the rent)
Car Insurance: $40 year (I don't have a car, I'm just keeping my membership)
Petrol: 50$ Month (I'm using a friend car the week I'm home)
Car Registration: $500 year
Miscellaneous: $300 month

Assets:
Superannuation Fund: $22000, employer contribution of $600 a month
Savings: $90000 in a goal saver account, 2.2% annualized return (just dropped recently that's why I need to do something ASAP)
Australian Shares: $10000 (Very stupid move, too inexperienced, after nearly one year I'm down 2% but the spread between the good and the bad ones, is massive)
P2P Lending: $18000 (I did a bit more research for this one, and I'm pretty happy so far with the results, RateSetter)
25% ownership of a little Cafe in Perth, the quote is valued $40000, from march 2016, no returns so far, just free food and coffee. There's a lot of potential!

Liabilities:
Visa expenses: $10000, covered by the Company, I have to refund them if I quit before 2020 (pro-rata)
Diving courses: I'm expecting to spend $2000 to $3000 for some certification before the end of the year. Not a proper liability, but I'm spending money on this hobby quite regularly since the past 2 years (I'm sorry but I need holidays sometimes :-)).
I think this is it, everything I own is pretty much in my room and I have no debt so far (except for the visa).

I feel pretty lucky mostly due to my work situation, salary is decent and spending 2/3 of the time far from the city allowed me to save a huge portion of it.
I'm also thinking that is not going to last also because of the work situation. Market condition are changed a lot in the past 18 months, and workers condition as well , salary is good, but way below the average up here, and life is very hard sometime :-).

Specific Question(s):
1)  What to do with my savings?
I was looking to the Wholesale Vanguard High Growth Index Fund, fees 0.37%, apparently $100k are enough to access the fund and I'll be able to add a little amount regularly without incurring in fees.
ETFs were also an option as I have already a CMC account, but I will have to keep the money somewhere until I have enough to minimize the brokerage fees if I want to buy more. I'm also not really confident I'll be able to re balance the portfolio properly. I'm still somehow too emotional :-)
I'm not really into property as well and my rent is very low at the moment so I rather renting.

2) I started my trip as a long holiday, and , even If I really love Australia I'm not sure I'll stay here forever. I'm still a backpacker deep inside and all my family is on the other side of the planet.  I'm wondering what would happened to my investment if I decide to move country for a decent amount of time. Taxation problems??? (In a couple of years I'll be also citizen if everything works as it should)

3) Superfunds are pretty new and obscure entities to me, I opened my first and only one with AustralianSuper as soon as I came here, I immediately removed the insurance as I was suppose to live the country 2 years ago and the fees were eroding the few $$$$ I had there. Any suggestion about a better one? Sunsuper seems pretty popular between the mustachians downunder.

Thanks everyone in advance...hopefully my post is clear...I'm not really used to write that much in English :-)








HappierAtHome

  • Walrus Stache
  • *******
  • Posts: 8156
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #1 on: August 14, 2016, 02:32:49 AM »
Not an expert in investing (yet) - I'm just posting to say that you are kicking arse with those expenses! Also, your English is great, no need to worry about that.

We have a Perth meetup group for this forum, worth looking into if you need frugal friends.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #2 on: August 14, 2016, 02:52:06 AM »
Thanks HappierAtHome

looking forward to turn into an expert asap! I had no idea about the meetup in Perth, cloud you give me more details? would be great to learn from the pro!

I know my expenses are pretty low, but honestly I feel I don't miss anything and my rent keep falling. I really hate the 2-1 roster (coming from 8-6) but it has some advantages

 

HappierAtHome

  • Walrus Stache
  • *******
  • Posts: 8156
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #3 on: August 14, 2016, 03:12:17 AM »
http://forum.mrmoneymustache.com/meetups-and-social-events/perth-meetup!-(australia)/1000/ - the most recent page of our meetup thread. We had an afternoon tea yesterday, probably the next one will be a brunch in Northbridge within three or four weeks. If you post in that thread with a date that suits you I bet a HEAP of us will join you for a coffee or meal and a chat! We're nice people :-)

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #4 on: August 14, 2016, 03:44:55 AM »
No doubt about it, thanks a lot, I'll write there for sure!!!

marty998

  • Walrus Stache
  • *******
  • Posts: 6542
  • Location: Sydney, Oz
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #5 on: August 14, 2016, 06:12:18 AM »
Australian Super is good enough. They all invest in largely the same shares and assets.

On any given year some will perform better than others. Luck of the draw really.

-2% on your shares is not a terrible result all things considered. The market hasn't exactly taken off in the past 12 months either. Maybe in the past month it has, but that just makes up for the negative 6 months before that.

Perth property has been pretty ordinary of late. Probably best if you don't jump in yet because values (and rents) are still falling. But won't be a bad idea to jump in at some point in the future if you plan on staying forever.

Fresh Bread

  • Handlebar Stache
  • *****
  • Posts: 1879
  • Location: Australia
  • Insert dough/bread/crust joke
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #6 on: August 14, 2016, 06:38:10 AM »
Hello and welcome! Amazing low expenses, congrats. I was wondering why you pay car rego though?

I have no expert advice to offer on the investing, soz. My money is mainly in property but that doesn't sound like a good option for you with the job uncertainty (that's how I read that part about your employment) and the fact that you aren't yet certain you'll stay long term. I'm thinking you should keep some funds fairly liquid just in case and I don't know how the wholesale funds work with withdrawals, but if you've got your Ratesetter funds rolling month to month then that's fairly liquid I guess.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #7 on: August 14, 2016, 07:32:17 PM »
Australian Super is good enough. They all invest in largely the same shares and assets.

On any given year some will perform better than others. Luck of the draw really.
I'm invested with the balance option (default one), apparently is a decent performer compared to the other options in the past 2 years for this fund.

-2% on your shares is not a terrible result all things considered. The market hasn't exactly taken off in the past 12 months either. Maybe in the past month it has, but that just makes up for the negative 6 months before that.
-2% thanks to last month I think, I had no experience at all, I thought the market was down so I could have a chance to buy cheap, partially true. I bought a couple at their highest peak ever

Perth property has been pretty ordinary of late. Probably best if you don't jump in yet because values (and rents) are still falling. But won't be a bad idea to jump in at some point in the future if you plan on staying forever.
Copy that, my rent dropped at least 30% since last year, still haven't decided yet where to live, the coolest option would be 6 months here and 6 back home, never ending summer.

Hello and welcome! Amazing low expenses, congrats. I was wondering why you pay car rego though?
Thanks Freshwater, excited to be part of the community!
Low expenses mostly due to the fact that I'm always at work, the rego is a long story but I think I'll end up paying just a portion of it, I think is fair, I'm using the car a lot when I' m home


I have no expert advice to offer on the investing, soz. My money is mainly in property but that doesn't sound like a good option for you with the job uncertainty (that's how I read that part about your employment) and the fact that you aren't yet certain you'll stay long term.
That was also my thinking, regarding the job, the position is pretty safe but I will probably look for something different in the near future, boosting my total expenses quite a lot

I'm thinking you should keep some funds fairly liquid just in case and I don't know how the wholesale funds work with withdrawals, but if you've got your Ratesetter funds rolling month to month then that's fairly liquid I guess.
At the moment I'm just automatically reinvesting everything in RateSetter (1 month loan 15%, 1 year 70%, 3 years 10%, 5 years 5%), we are talking about few $$$ a month atm, increasing slowly. Could be an option.
I was also considering if I move the 95% of my savings to the wholesale fund right now It won't really affect me that much, being paid regularly every other week allow me to save some cash quite easily, in alternative I can go with a smaller amount invested through ETFs.
LOW EXPENSES = BEST INVENTION EVER!!! :-)


Kiwi Mustache

  • Stubble
  • **
  • Posts: 180
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #8 on: August 14, 2016, 10:31:03 PM »
Put it in a low cost index fund that tracks the ASX200.

Sorted.

stripey

  • Pencil Stache
  • ****
  • Posts: 770
  • Age: 119
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #9 on: August 14, 2016, 10:41:18 PM »
Hi, and welcome!

Wouldn't worry too much about the 'low' salary*... if your job is relatively secure (and presumably your employer is willing to sponsor you) then you're doing better than many  in the resources sector at the moment. My partner and I have relatively 'modest' salaries, but they're in relatively 'recession resistant' sectors. What really matters is keeping the money, rather than spending it all like so many FIFO workers seem to do!

We continue to rent, partly because the market is so soft and we've both been able to pay quite low rent at the moment (and we're not committed to remaining in Perth over the long term)

*Completely depends on your social circle whether $82k is low or not.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #10 on: August 14, 2016, 11:33:10 PM »
Thanks stripey,

I consider my salary very good actually, especially if I think where I came from, it's just relatively low if compared to some other "colleagues" up here, and sometimes it makes you greedy. But as you can see I'm saving already a lot of it and I'm very happy. I wouldn't even mind having a lower one and going back to a "normal job" Monday to Friday.

We are pretty much in the same situation about the rent, and yes the  Company sponsored me , I'm just waiting an answer from the Gov. regarding my Permanent Residency.

Put it in a low cost index fund that tracks the ASX200.

Sorted.

This is part of the plan, any good suggestions?

PDM

  • Pencil Stache
  • ****
  • Posts: 569
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #11 on: August 15, 2016, 12:10:15 AM »
Hey,
I've done PADI dove courses all the way up to Divemaster. There is a reason they say PADI stands for Put Another Dollar In. Which course are you doing for $2k-$3k?

Not criticising but just curious. In my opinion anything more than Advanced diver is not really needed. Unless it's much more advanced things like super deep etc.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #12 on: August 15, 2016, 06:03:46 PM »
Hey,
I've done PADI dove courses all the way up to Divemaster. There is a reason they say PADI stands for Put Another Dollar In. Which course are you doing for $2k-$3k?

Not criticising but just curious. In my opinion anything more than Advanced diver is not really needed. Unless it's much more advanced things like super deep etc.

Hi PDM, it is a very rough guess, the idea is doing my Rescue cert. and the Divemaster course, mostly because I think it will be cheaper overall than do just single fun dives.
I have an environmental background and in my dream, maybe, with a bit more experience, I'll be able to get some money out of this pretty expensive hobby.

Just a quick one, do you have any idea about the difference between the normal Divemaster course (roughly 4 weeks) and a Divemaster internship (up to 6 months and way more expensive)?

 

Eucalyptus

  • Bristles
  • ***
  • Posts: 334
  • Location: South Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #13 on: August 15, 2016, 07:20:18 PM »
Australian Super is good enough. They all invest in largely the same shares and assets.

On any given year some will perform better than others. Luck of the draw really.
I'm invested with the balance option (default one), apparently is a decent performer compared to the other options in the past 2 years for this fund.

-2% on your shares is not a terrible result all things considered. The market hasn't exactly taken off in the past 12 months either. Maybe in the past month it has, but that just makes up for the negative 6 months before that.
-2% thanks to last month I think, I had no experience at all, I thought the market was down so I could have a chance to buy cheap, partially true. I bought a couple at their highest peak ever

Perth property has been pretty ordinary of late. Probably best if you don't jump in yet because values (and rents) are still falling. But won't be a bad idea to jump in at some point in the future if you plan on staying forever.
Copy that, my rent dropped at least 30% since last year, still haven't decided yet where to live, the coolest option would be 6 months here and 6 back home, never ending summer.

Hello and welcome! Amazing low expenses, congrats. I was wondering why you pay car rego though?
Thanks Freshwater, excited to be part of the community!
Low expenses mostly due to the fact that I'm always at work, the rego is a long story but I think I'll end up paying just a portion of it, I think is fair, I'm using the car a lot when I' m home


I have no expert advice to offer on the investing, soz. My money is mainly in property but that doesn't sound like a good option for you with the job uncertainty (that's how I read that part about your employment) and the fact that you aren't yet certain you'll stay long term.
That was also my thinking, regarding the job, the position is pretty safe but I will probably look for something different in the near future, boosting my total expenses quite a lot

I'm thinking you should keep some funds fairly liquid just in case and I don't know how the wholesale funds work with withdrawals, but if you've got your Ratesetter funds rolling month to month then that's fairly liquid I guess.
At the moment I'm just automatically reinvesting everything in RateSetter (1 month loan 15%, 1 year 70%, 3 years 10%, 5 years 5%), we are talking about few $$$ a month atm, increasing slowly. Could be an option.
I was also considering if I move the 95% of my savings to the wholesale fund right now It won't really affect me that much, being paid regularly every other week allow me to save some cash quite easily, in alternative I can go with a smaller amount invested through ETFs.
LOW EXPENSES = BEST INVENTION EVER!!! :-)


I think you are worried about market timing with your shares. Don't be. You should avoid market timing! Just put into them as often as you can, based on your desired assett allocation (its good to diversify and not just have one type of stock. Also, pick ETFs that are cheap on fees).
Perhaps a good place to start to read up on all this is the bogleheads wiki. Just remember that some things about tax and superannuation are more written for a US audience (eg 401k and Roth).
https://www.bogleheads.org/wiki/Main_Page

Best of luck :-)

PDM

  • Pencil Stache
  • ****
  • Posts: 569
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #14 on: August 15, 2016, 08:54:25 PM »
Hey,
I've done PADI dove courses all the way up to Divemaster. There is a reason they say PADI stands for Put Another Dollar In. Which course are you doing for $2k-$3k?

Not criticising but just curious. In my opinion anything more than Advanced diver is not really needed. Unless it's much more advanced things like super deep etc.

Hi PDM, it is a very rough guess, the idea is doing my Rescue cert. and the Divemaster course, mostly because I think it will be cheaper overall than do just single fun dives.
I have an environmental background and in my dream, maybe, with a bit more experience, I'll be able to get some money out of this pretty expensive hobby.

Just a quick one, do you have any idea about the difference between the normal Divemaster course (roughly 4 weeks) and a Divemaster internship (up to 6 months and way more expensive)?

 

I think it varies from shop to shop but my understanding is the course takes a minimum amount of time (maybe the 4 weeks) to do. It includes a range of different competencies and training etc you have to do. The internship would be you 'working' with the dive shop for a longer period of time and doing the training during that time. Mostly through assisting with the day to day operations.

I did the latter - took about 8-9 weeks (could have been longer but I only allocated that much time to it during a much longer holiday). It was a pretty cost effective way to do lots and lots of dives (3-4 a day) but you are expected to be a member of the dive shop team (lumping gas tanks, filling them, looking after customers, assisting on learn to dive courses etc).

I think the course might also be with a group of other Divemaster Trainees? The internship I did I was the only one doing it.

Here are the details from the course I did in 2011 in Malaysia:

What we normally conduct is a Dive Master program with internship. This means you help us with everyday diving logistics and dive shop duties, during this time you will learn the real role of a certified dive master. You are then called a DMT (Dive Master Trainee).
The prerequisites to start the DM course are to have at least 20 logged dives, to have a current PADI Medical Statement Form completed by a physician and that you are a certified PADI EFR/Rescue Diver.

The prerequisites to get certified are:
60 logged dives, Completed and reviewed all 9 Knowledge Reviews of the DM student manual, Pass all 8 Dive Master exams
Complete an Emergency Assistance Plan, Complete dive maps of local dive sites, Pass the 4 Stamina assessments, Pass the Equipment Exchange (stress test), Pass the Diver Rescue assessment, Pass the Confined Water Skill assessment, Pass the Divemaster Conducted Programs assessment, Assist up to 6 times during PADI Open Water courses in confined water,
Assist up to 3 times during PADI Open Water courses in open water, Assist up to 3 times during continued education courses in open water, Guide certified divers in open water

The cost for the complete Dive Master program including all Dive Master
material is MYR 3,500. The DM course takes usually 3 to 5 weeks to complete, depending on your water skills and knowledge skills. If you can spare the time, a 1 month course will give you more than enough time to become a capable and skilled
Divemaster.


I enjoyed it but I'm still slightly skeptical about the whole PADI business model and think it isn't a realistic way to make money. Working as a Divemaster pays really poorly (or not at all) often. Working as a Dive Instructor can pay slightly better, but you're still not really breaking even after costs and it seems to really take its toll on your body.

A great, if expensive hobby though.


rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #15 on: August 19, 2016, 09:48:28 AM »

I think you are worried about market timing with your shares. Don't be. You should avoid market timing! Just put into them as often as you can, based on your desired assett allocation (its good to diversify and not just have one type of stock. Also, pick ETFs that are cheap on fees).
Perhaps a good place to start to read up on all this is the bogleheads wiki. Just remember that some things about tax and superannuation are more written for a US audience (eg 401k and Roth).
https://www.bogleheads.org/wiki/Main_Page

Best of luck :-)

Yes I know there is no such a thing as timing the market :-) but I pick those stocks without doing any research at all (not a proper one at least)...and the more I read the more I realize that. Now I'm a bit confused, I was thinking to sell the very bad ones and re-buy the same at a lower price (still have faith in them) but I'm not sure if this is still consider as capital loss or not. I was reading something about avoiding tax in purpose that doesn't seems quite legit. Atm I don't have any capital gain either, I'm just holding.

Thanks for the link, going through the wiki!!!

A great, if expensive hobby though.

I can't agree with you more, I managed to save few bucks doing my open water with SSI, switching to PADI for the advance.
I have 4 weeks for my DM in november, I will try to have a good deal otherwise I will do it later if I have more time.

**Little update** Commonwealth Goal Saver rate dropped again today to 1.95% annualized. 

stripey

  • Pencil Stache
  • ****
  • Posts: 770
  • Age: 119
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #16 on: August 20, 2016, 01:32:44 AM »
That's a low interest rate on a savings account. My funds are with CUA and MEBank. Both these have higher bas interest rates on their savings accounts (and bonus interest rates based on certain criteria).

Whether it really matters or not in your situation is another matter entirely.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #17 on: August 22, 2016, 11:51:17 AM »
Thanks stripey, I didn't know about CUA but I was tempted by MEBank already, 3.35% (including bonus) is quite good.
I'm thinking to use it during an accumulation phase, example: I buy ETFs today and I'll keep my new savings there until I have enough to buy more.
1.95% is just disappointing.

Anatidae V

  • Walrus Stache
  • *******
  • Posts: 7578
  • Age: 30
  • Location: Fourecks
  • Nullus Anxietas
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #18 on: August 22, 2016, 05:45:48 PM »
Thanks stripey, I didn't know about CUA but I was tempted by MEBank already, 3.35% (including bonus) is quite good.
I'm thinking to use it during an accumulation phase, example: I buy ETFs today and I'll keep my new savings there until I have enough to buy more.
1.95% is just disappointing.
Oof, thanks for the info about the CBA interest rate. I might have to rearrange our finances as well.

In terms of diving, I know of marine scientists who find the skill very useful, but that's about it. Fantastically fun hobby though (for the right person, which is not me).

I noticed you own a share in a cafe, that sounds pretty interesting! For investing, it sounds like going with a mutual fund into Vanguard is a good idea, i think they can be quite helpful. We're edging our way to their ETFs, but only bought our first tiny batch a couple of weeks ago. Have you considered calling them to ask about your options if you move back to Europe? They might be able to help with that Super question a little as well.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #19 on: August 23, 2016, 08:43:15 AM »
Every time I check they drop 0.25% at least, now I'm a bit scare of opening the CBA website :-) was 2.2% only 2 weeks ago.
This is the Goal saver account, that used to be one with the highest returns rate.

It's a very little cafe in North Perth, we are still trying to figure out pretty much everything, is not even a year old. It's a bit peculiar, 100% Vegan (I'm not fyi) and the food is actually great...just saying ;-) http://www.cloudninevegan.com/ 

Vanguard seems one of the safest/reliable option, I will definitely try to call them as soon as I'm in Perth.

Fresh Bread

  • Handlebar Stache
  • *****
  • Posts: 1879
  • Location: Australia
  • Insert dough/bread/crust joke
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #20 on: August 23, 2016, 03:34:39 PM »
I'm also with CUA although my saver account is currently empty. They always seem to be competitive, not always the absolute best but consistently up there. I have mortgage accounts with them as their lending is also competitive with no ongoing fees. I just got a notification from them that they wouldn't be dropping my mortgage rate the whole .25% because they needed to balance the needs of their borrowers with their savers and I don't mind when they put it so nicely :)

JLR

  • Bristles
  • ***
  • Posts: 494
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #21 on: August 23, 2016, 06:27:13 PM »
I've bitten the bullet and switched from ING to ME. With ING dropping the 2% cash back next month and lowering the interest rate on savings to 2.75%, ME's offer of 3.35% was even more enticing.

HappierAtHome

  • Walrus Stache
  • *******
  • Posts: 8156
  • Location: Australia
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #22 on: August 24, 2016, 03:55:18 AM »
It's a very little cafe in North Perth, we are still trying to figure out pretty much everything, is not even a year old. It's a bit peculiar, 100% Vegan (I'm not fyi) and the food is actually great...just saying ;-) http://www.cloudninevegan.com/ 

I live in the inner North - I'll have to check your cafe out! Reviews online suggest that the burgers are worth eating :D

englyn

  • Bristles
  • ***
  • Posts: 422
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #23 on: August 28, 2016, 08:35:21 PM »
It's a very little cafe in North Perth, we are still trying to figure out pretty much everything, is not even a year old. It's a bit peculiar, 100% Vegan (I'm not fyi) and the food is actually great...just saying ;-)
*takes notes*

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #24 on: August 28, 2016, 09:55:18 PM »
looking forward for your "honest" reviews, we are here to improve :-).

One of my fav. is also the bean burrito.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #25 on: September 01, 2016, 08:52:21 PM »
I've bitten the bullet and switched from ING to ME. With ING dropping the 2% cash back next month and lowering the interest rate on savings to 2.75%, ME's offer of 3.35% was even more enticing.

Opening a Me account right now, 3.10% atm, still one of the best, and very flexible. (damn, I need to go in person to verify my identity and I'm stuck at work for 12 more days)

Just changing topic for a second: TAX!!!!
I knew it would have been rough this year, but I wasn't really expecting that.
I could claim more or less $2000 from my salary/tax, but, add medicare, add the bank interests, ratesetter interests, dividends*, and few other little ones I'm ending up owning $1400 to the ATO.
Any TAX guru that can help me to be more tax efficient at least for next year? I think this year is gone...
I assume it will get worse and worse as the ratio salary/tax will stay the same but I'm hopefully going to increase my passive incomes.

*I have some dividends,they should be fully franked, what is the column Credit/Tax withheld that show up in Mytax?

BattlaP

  • Stubble
  • **
  • Posts: 173
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #26 on: September 07, 2016, 04:13:03 PM »
Hey mate, just wanted to chime in, when you said you were thinking about Sunsuper.

I was amazed when I checked out the fees on their index funds. IMO they make the rest of the super industry redundant. Check em out closely and compare with your current one, I think being a fan of vanguard that you'll be impressed. I changed over immediately.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #27 on: September 08, 2016, 06:22:31 AM »
Hey mate, just wanted to chime in, when you said you were thinking about Sunsuper.

I was amazed when I checked out the fees on their index funds. IMO they make the rest of the super industry redundant. Check em out closely and compare with your current one, I think being a fan of vanguard that you'll be impressed. I changed over immediately.

It seems the overall fees are pretty similar to AustralianSuper, I'm not able to find out how much would cost to invest directly in the funds of my choice. Is it actually an option? or can you just play with the pre-made portfolios? (21 options, quite a lot anyway)

If I understood properly, AustralianSuper charge for the Member Direct platform $350ish per year + the ETFs fees + you need to keep a minimum of $5000 invested in one of the standard profiles (with fees obviously). Definitely not worth for my little balance.

https://www.australiansuper.com/investments-and-performance/member-direct.aspx 

I feel I'm missing something :-)
« Last Edit: September 08, 2016, 08:50:04 AM by rasics82 »

BattlaP

  • Stubble
  • **
  • Posts: 173
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #28 on: September 08, 2016, 02:35:48 PM »
Quote
I put 20% Australian Shares Index (Based on the S&P/ASX 300 Accumulation Index, 0.08% fee) and 80% International Shares Index Unhedged (Based on the MSCI World Ex-Australia Investable Market Index, 0.09% fee). For completeness sake I take it there is also admin fees of $1.50 per week and 0.10% p.a. on the first $800,000 of your account balance.

That's everything I'm paying with SunSuper.

I had a look through MemberDirect, it's an interesting option although it looks like I can't access the list of available ETFs without signing up. The only problem is saving up and purchasing ETFs in bulk and having to pay the brokerage.

They both look OK, the admin fees are better on SunSuper on balances below $300,000, Aus wins out after that- I'd just prefer to pay the miniature management fees (0.08-009) on SunSuper to take away the pain of having to worry about bulk purchases and brokerage inside Super as well as outside.

rasics82

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Location: Perth (WA)
Re: Australia at the moment, then who knows??? Time to act!!! [case study]
« Reply #29 on: September 10, 2016, 04:47:33 AM »
Quote
I put 20% Australian Shares Index (Based on the S&P/ASX 300 Accumulation Index, 0.08% fee) and 80% International Shares Index Unhedged (Based on the MSCI World Ex-Australia Investable Market Index, 0.09% fee). For completeness sake I take it there is also admin fees of $1.50 per week and 0.10% p.a. on the first $800,000 of your account balance.

That's everything I'm paying with SunSuper.

I had a look through MemberDirect, it's an interesting option although it looks like I can't access the list of available ETFs without signing up. The only problem is saving up and purchasing ETFs in bulk and having to pay the brokerage.

They both look OK, the admin fees are better on SunSuper on balances below $300,000, Aus wins out after that- I'd just prefer to pay the miniature management fees (0.08-009) on SunSuper to take away the pain of having to worry about bulk purchases and brokerage inside Super as well as outside.

Yes, you need to be member and made a money transfer if you want to access the platform, I nearly made a mess, I totally missed the $350 p.a fees part of the agreement...(silly me)

I'll have a closer look to SunSuper, actually, due to my background, I really like this investing option: Ethical, Environmental and Socially Responsible Investments

Thanks BlattaP