Author Topic: FI Goals  (Read 2374 times)

steveo

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FI Goals
« on: July 13, 2013, 03:14:43 AM »
I just want to state my FI goals including my timeline to getting there.

I have the following goals:-

1. Save all of my income (or use it to pay down debt). I earn 120k which ends up about 85k post taxes. I am also not including payments to superannuation (I live in Australia) or bonuses. My wife earns about 40k prior to paying tax. To be fair this goal is unrealistic at this point because we pay a massive amount of childcare and our expenses add up. I have 3 kids 11, 9 and 2. Childcare will though decrease over time. I am not going to pay expensive school fees or pay for my childrens education. I think that this sends the wrong message to them anyway.
2. Pay off my mortgage - at this point it is about $210k. After this I will consider that I am saving. I think this can be done in 5 years easily but I am going to push for 3 -4 years.
3. Max out my superannuation payments. I might do this when my mortgage is down to say $100k but I will simply reassess this over time. I figure in 10 years time my super will be worth at least $300k.
4. Save about $500k in an index fund that is separate from my super. My take on this is to only put money into an index fund if the stock market is reasonably priced. If not put it into some cash account and when the market crashes move it 100% to a stock index. I figure once the home is paid off and if I can get to saving all of my income I can do this in 5-7 years.

When I meet all these goals I will be FI. I might choose to work less prior to meeting all these goals - in fact I will work less prior to meeting all these goals. I want to do this all within 10 years which will be difficult but I think achievable. At that point I might quit work or I might keep working to get enough money to spend even more later. I figure I will just wait and see.


steveo

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Re: FI Goals
« Reply #1 on: July 14, 2013, 04:37:33 PM »
Thanks for the response. The one thing that concerns me is trying to get the best possible tax benefits out of my savings. At the same time I don't want to be a sucker who ends up paying a fortune to accountants or financial advisers.

steveo

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Re: FI Goals
« Reply #2 on: July 15, 2013, 04:20:49 PM »
Thanks for the response. I totally agree that this is something that you should learn to do yourself.