I'm actually 21, almost 22. I would just like to thank everyone in this forum for their wonderful advice. I can't remember how exactly I got to be so financially aware this early, but I've always known I didn't want to be a wage slave until I was 65. I think reddit opened up this awareness with r/personalfinance, which led me in turn to 'Your money or your life', ERE, and MMM.
Is there anything you could advise me on investment wise? Here's my situation:
I live in Sydney, Australia and as such student loans are not an issue (they only rise with inflation). I currently have $28000 in loans and 1-2 years left on a bachelor of Mechanical engineering degree.
I live at home, and I plan to until I find a wife to live with (hopefully around 28). So my living costs are effectively zero until I do. My parents are well off that they need no contribution from me.
My starting salary in 2 years will be around 60k if I find a job in my field straight away. I plan to save as much as I can for the down payment on a home loan. I'll keep the money in term deposits (current 4.7% PA) till I use it. I would like a 3 bedroom around 400k. Interest rates are fairly high(approx 6.5%) compared to the U.S right now so I want to hammer away the loan in about 4 years if I can
I then plan to save at the same rate till I have enough that I can live off a 3% SWR.
I have 12k currently split evenly between savings account at 3.5%PA and a first home saver account (gov contribution of 17%PA, of a capped 6k per year. Money can only be withdrawn to buy a first home, or rolled into a superannuation fund).
That's about it I think. I'm so conflicted with advice on the markets right now. The contrarian saying buy and hold is the wrong strategy now? All I know right now is that index funds would be the safest option, but how will that provide regular income, come retirement time?
You guys are such an inspiration to me. Hopefully I can emulate some of your success looking back at my life in twenty years time.
Regards,
A newborn mustachian.
