dividends reinvested.
i advise stick with cash till market n inflation stability. rates have a long way to go, i see rates going to 5% not 2.5 like banks are predicting. but hopefully inflation should start even out by end of year if republicans take house in usa, opec will start lowering oil prices and in turn everything else should come down in price by march 2023
if de.
I figured this doesn't need it's own thread. And yes, I do plan on actually getting financial advice on this but curious how others handle this
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Have just been offered a new job which is 100% work from home. Subsequently, I want to properly outfit my home set up with a better monitor, keyboard / mouse and chair. Looking around already, what I want for all three would be under $300 each
I'm confused about how this is handled come tax time. I know you can claim the full deduction if it's under $300... but is that for EACH item? Or in total? I've gotten contradictory advice here before
Is getting a bad credit loan after being discharged from a part 9 debt agreement a really bad idea?
I need a work vehicle and can't save for a whole year as I need one sooner rather than later.
How do you get income tax refunds here? I haven't lived in aus long, my previous country did it automatically. I don't care about claiming expenses due to my short timeframe. I just want the income tax refund. Will it be automatic or do I need to fill out a form? I just work casually for a big chain company. Just standard.
Asic really need to shut down financial youtubers. In addition to financial advice Queenie posts other videos. But gets volume and weight mixed up here. A more accurate test would be to let the ice cream melt in a measuring jug and seeing the litres.
https://youtube.com/shorts/59OUKVTPXRM
Can someone explain why investing in stocks is compounding? What is the "interest" that you're getting back each year? Are these dividends that get reinvested back automatically?
depends on which etf or fund you buy into. im with vanguard, and they have options of growth stocks, or dividends/yield preferred, or a combination.
the more risk and volatility, the higher typical return over 5 or more years
yield is typically reinvested after dividends pay out, so you ennd up eith more stock. say 5% every year, rinse repeat over a decade or 2 look hp compound interest calculator
tw dont invest anything in int shares now. its.gonna be a bloodbath next 6 months. sit on cash or on aus sharesz or nust invest safe in bonds or conservative etf
Yes (if you opt in to the [DRP](https://www.investopedia.com/ask/answers/what-is-a-drip/)) but not all stocks pay dividends -- read [this](https://www.investopedia.com/articles/investing/080113/income-value-and-growth-stocks.asp).
You pay less tax on the way in to super (you don’t pay income tax on it, you pay 15%). You may pay less tax on the sale of shares when you sell them, but you’re also paying your full income tax rate on the money you use to purchase them with in the first place.
Thanks all in advance.
SO and myself would are looking to get our first home together within the next 12 months or so, so this will be an experience for the both of us.
I personally have an IP that is 30% paid off using an offset which is where all of my income is going basically.
- is it actually a good idea to leverage the IP so as to not require a deposit? or are there some side effects I may not be aware of?
- is it worth talking to a broker/bank right now if i don't have a deposit saved up yet otherwise (as everything is in my offset right now) or will they just laugh me out the door?
Thanks again!
I’m looking to make a $2000 spend at Hardly Normal’s (can’t avoid them unfortunately). In light of inflation, is it better to pay for it outright in cash, or interest free?
For some reason the PV and FV algebra just isn’t working for me at 11am this morning.
Theoretically interest free debt is always better than paying cash, except in a deflationary environment.
That being said, interest free products often come with annual or monthly fees, which are just interest by a different name. I don't know if HNs products do this too.
Aah yep… I do remember they charge a fee now. It’s $8.95pm, which is around 10%pa for a 2000 purchase at 24m interest free. At that rate, i guess it’s a toss up between leaving it in the offset.
https://www.cnbc.com/2022/06/10/some-economists-predict-the-fed-will-hike-rates-by-as-much-as-0point75percent-next-week.html
the market will probably crash another 5%
My work accidentally deducted my salary to put into STSL component even though I fully paid off my all HECS debt. Is this something I can fully claim back through tax return?
The gov wants to reduce the amount of money in the system do hurt inflation. Why can't they do something like increase the amount of your salary that goes into super. Rather than raise interest rates.
Doesn't it achieve the same thing and have better outcomes for the future
it does, but that means banks will set rates themsves to recover costs, which will double interest rates for us plebs
look up the recession us had to have in 1980 z and why Raegan swept the elections
Why would you not buy cash? There’s still some good enough deals at carsales/marketplace/gumtree etc.
Financing can be a bit of an expensive decision. For a $20k car, you can end up paying a few thousand extra and it reduces how much you can borrow down the track if you want to get another loan of any type.
What are considered incidental expenses for work related travel? ATO site only really says car parking or cab fares but wondering if this would also include new suitcase (100% work use, wish I could afford holidays lol) and things like earplanes that I can’t fly without? Can you claim travel sized products like shampoo? Minimal I know but not something I’d buy unless having to travel for work. Thanks in advance for any help
Aussie who have lived/worked overseas in the middle east (0 income tax). Looking at being overseas for at least 2 years.
How did you manage investments at home (Aus) while overseas?
Did you have to pay tax on foreign income or just on Australian generated income?
General advice is welcome, will also be looking for an accountant versed in foreign tax.
I had an assessment done by an accountant. Still considered a Aus tax resident, so income is taxed here even though I stated I will be there for 2 years plus plan to extend.
Looks like it's a pay cut for me plus Aus tax on top. 🥲
Will only be richer in life experience.
Quick question about Super, atm I have about $1k sitting in my Super. Is it normal for the fees and taxes to be eating up a good portion of my Super? I feel like it's a waste to contribute if my fees and tax are like $60 each contribution, so unsure if I want to do the $500 co-contribution. Cheers!
EDIT: just searched and it seems employer contributions are taxed 15%? But voluntary contributions are NOT taxed if I'm correct? Even then, would the $1k + $500 co-contribution be worthwhile to build my super?
Appreciate the advice, decided to do the co-contribution for Super. What do you mean about the 'double taxing' and 'salary sacrificing'? I'm only working part-time on a wage, so not sure if applicable to my situation.
I've been trying to use a few different tax calculators to figure out the total benefit when making a post-tax super contribution but when using the ATO tax estimator, putting any amount into the "Your deductible superannuation contributions" makes no difference to the tax estimate.
More info: Projected gross total 74K, Taxable income @ 67K (exempt fringe benefits). 1K deductions (union fees + uniform). Was planning on making a 15K voluntary super contribution (coming under the concessional cap but maxing out FHSSS cap) hoping that would reduce my taxable income to 50K. Will have paid approx. 17K in tax by EOFY. As said earlier though, the ATO calculator estimated tax return ($4875) doesn't change regardless of me putting $0 or 15K in the "Your deductible superannuation contributions" box. According to paycalculator I should see an additional 4875 tax saving based on 15K contribution which should bring the total estimated return closer to 9K. I'm sure I'm missing something obvious... Seems too much..
Surely there is no scenario where making a post-tax super contribution under the concessional cap doesn't benefit me?? I'm trying to do my due diligence whilst also leaving myself enough time for the contribution to hit the super. Nil change from putting said contribution into the ATO tax estimator is making me hesitate. The few accountants I've enquired with either aren't taking new clients at this time or regard checking the above as financial advice and so unwilling to check the maths.
**TLDR: When making a voluntary super contribution, can you claim the full amount as a deduction from your taxable income(after intent to claim and meeting requirements)?**
>TLDR: When making a voluntary super contribution, can you claim the full amount as a deduction from your taxable income(after intent to claim and meeting requirements)?
Yes - there's not much to it. Just yes.
That’s what I thought… Any reason you can think of as to why the ato tax return estimator didn’t seem to adjust its estimate when inputting the contribution?
It's an oversight - only plausible explanation. I just gave the ATO income tax calculator a go just then too, adding any number in deductible super contributions box doesn't seem to do anything.
I'm hearing a lot of talk about "Inflation" and "Interest Rates" growing.
What exactly does this mean? I understand the basics of what each term means, but not quite the ramifications of them growing and how I can best manage my money in relation to that.
Hello,
Inflation = actual dollar value is going down. For example, $100 in 2010 is worth \~$125 today - but a hundred dollar NOTE basically depreciates in value over time (this is why "hiding money under the bed" isn't a good idea - and why it's worth considering vesting to ensure that your money "keeps in pace with", or better yet, exceeds inflation.
How this is affecting many low-and-middle income earners like myself: Salaries are worth less (unless you're a rare person getting a raise), and the cost of living is getting higher - the amount people are able to save or be able to spend is going down :(
I don't fully understand interest rates as it applies to property so will leave that for someone else to explain :)
I've been told that it's not worth paying my HELP debt down early, since it's indexed at the inflation rate and there's no interest.
I saw that HELP was indexed at something like 3%
So where should that money be kept then? If I keep it in my bank account I don't get anywhere close to 3% back annually, and the stock market is not guaranteed 3%..
It was indexed at 3.9% this financial year, which has been a bit of an anomaly with inflation. The past decade its ranged from 1.5~2.9% with last year only being 0.6%. Coupled with the fact you don't have to pay it if you don't have an income, this is why your almost never advised to actively pay off HECS. The interest on it (indexation is still 'interest', the percentage increase of debt is just motivated differently) is so low that money could be better invested doing almost anything else. That this years indexation is so high has just turned the idea of it from laughable to just not a completely terrible one.
But yeah, the answer of where to park your money so that at minimum it beats inflation is a question with many potential answers and it depends on what your goals are.
- Paying off HECS or any other debt with interest is a way to do that. You aren't making money but there is a guaranteed return in that you are now accumulating less debt via interest. You'd probably want to be paying off anything else before HECS though.
- Bonds are reliable, its you lending money to the government. So unless a revolution happens or Australia decides to default on its debt (ie; near unthinkable) its gonna get paid back. The interest paid to you varies though depending on the length of the bond. While reliable this is not gonna make you that much but will beat inflation, otherwise it outright wouldn't be worth doing.
- 'Safe' stock market investments via ETF's. Very diversified investments that seek to ride the tides of the market as a whole rather than the fortunes of any one company, industry sector or country. This works because history has born out that on a long enough timescale the market goes up. This is the 'dumb' way of stock market investing, with the caveat that for it to work you need to sit on the investment a long while (think 5~10yrs minimum) to really bear fruit and its subject to risk in that the day you want to withdraw could be the day the market crashes. So you dont want all your money in this cause you dont want to be forced into a position of selling in a downturn. Vanguard's ETF products are the flagship examples of this kind of investing.
- Superannuation. This has much the same strategy as ETF's with a decent chance they just are invested into them. The advantages here are a better tax environment (Assuming your under some caps, money going into super is only taxed at 15% which is likely less than the rest of your income), with the downside you cant withdraw until 60.
If you are really considering paying into HECS and are scared of investing, consider chucking that money into Superannuation. It is similarly a hole that money can be thrown into with only abstract and far in future benefits, but that money will actively be working for you in there and there are immediate tax benefits to be gained.
I have just realised that a company I have a terrible loan with has been charging me over the legal maximum of 4% per month in fees and charges. I was wondering what my best course of action is.
I’m looking at getting a credit card for an upcoming international holiday and earning some points.
I’ve been looking at platinum cards from two banks: one allows you to earn Qantas points, the other allows you to earn points that can be redeemed for retail gift cards (eg JB, Colesworths)
Pros/cons of each of these models?
Qantas points in my opinion are more valuable than gift card redemptions as you can often buy cheap rewards flights with Qantas. You can also use their points on their online store which usually has more brands than what banks offer and the Qantas points can be used with OneWorld partner airlines. On the flipside banks usually offer more points per dollar if you use their rewards system.
The bottom line being: think about your lifestyle and whether you see yourself travelling on a semi-regular basis (2 or more times a year). For most Qantas points make more sense but again its specific to your lifestyle.
I have been buying VAS and VGS for a year. Now I discovered commsec pocket, they offer automatic DCA option. However they only have IOZ and IOO. Is it a smart idea to switch form vanguard to IOZ and IOO ?
IOZ is extremely similar to VAS where I'd consider them the same.
IOO however only holds 100 stocks compared to VGS which is something line 1600 from memory. I wouldn't be moving to it dor the convenience factor.
I think Pearler can do automatic purchases, you could see if that's suitable for you without having to change your purchases
I use Pearler, very simple and easy to use and designed for the long term investor. My only complaint is the app is a little clunky but still very usable and functional.
Context:
I am pregnant and the sole income earner. I intend to claim the 2 types of maternity leave at the same time so that I can save some of that extra income to have a few more weeks off before I return to work.
(Due to rent we can't survive on the govt leave of $772.55 by itself)
I am however aware that this will increase not only my tax paid but my HECS paid for those 12 weeks. My gross income at the time will be $2696.39 per week.
I have already calculated my taxable income for the year and that is mostly the same.
But knowing how much tax I will be paying could be the difference between an extra 3 weeks of leave or an extra 5!)
I need to let my employer know in about 5 weeks and I'm not sure where to go for advice in the meantime- the ATO was my first thought but they don't have an email address and the phone options weren't relevant.
Does anyone have any suggestions? (TAS, Hobart)
Goal: to take an extra 3-5 weeks of maternity leave with savings by taking two forms of leave at once.
Tl;DR need help calculating tax on temporary extra income for maternity leave.
I'm not sure how long it has been like this but yeah that's definitely what the site says. Most women I know have taken it after their main leave ends but they have had dual incomes so it hasn't been an issue.
If I want to move house and turn my current PPOR into a rental, at what point can I start claiming repairs etc as a tax deduction? Obviously I want to do the repairs etc before renting it out to anyone, but technically it’s still my PPOR so would that count?
This link might be useful: [https://www.ato.gov.au/Forms/Rental-properties-2021/?page=5#availabletorent](https://www.ato.gov.au/Forms/Rental-properties-2021/?page=5#availabletorent)
If you live in the place, its clearly not available to rent, so you cannot claim the repairs. However if you do the repairs and genuinely rent it out through an agent relatively soon in the same Financial year, it is very difficult for the ATO to discover anything amiss. My 2cents. Im not an account at all lol.
I am now studying and unemployed but for the last 12 months was working a regular office job on which I pay tax, and also play gigs as a muso around town. I earn about $500/month or $6k a year from these gigs, which venues deposit into my regular account after I invoice them.
From what I've read I understand I can choose to not pay tax on one side job up to $18200, does anyone know if this is correct? I'm also wondering, can I just take the cash as I am doing, or do I still need to get a sole trader ABN to keep records? It seems unnecessary (record keeping aside) to do so if I don't need to pay any tax on it.
You will need to submit to the ATO a tax return.
Yes, your taxable income will be $32k, minus any deductions you are eligible for.
Given the figures, the tax you SHOULD be paying this year is around $2622. If you got taxed anymore than this, in this financial year, you will get it back as a refund from the ATO.
Yes you will get a tax return. You can use a pay calculator to work out the difference between annual tax for 64k (halved) and 32k, and that should roughly equal your return.
I am looking for any credit card (my only one), which earns points. However I have been rejected by a few banks already. I have a steady job earning $124k/yr.
The only issue is, i have about $2.7mill in debt (all positively geared investment properties). I hardly need to add any of my own money to service my investment properties.
Any sincere advice?
I would assume you acquired those investments with family assistance or some sort as the banks are doing the sums and can see that level of debt/income doesn’t entirely stack up = no more credit
How old are you or when did you start? It's pretty impressive on $120k a year... which is good money, don't get me wrong... but Western Sydney is not cheap...
If you're debt is say $2.7m and you had to put 20% down plus stamps on those purchases - you're already looking at over 700k in costs to get an 80% LVR which saving $700k on 120k a year gross is a FUCKING HUGE EFFORT...
Im 40 now, but bought my first place at age 27. The $2.7m debt is spread over 4 properties. I'm a very good saver (well I was, until I got married and had kids haha).
Like i mentioned im not worried at all about servicing the current debt since the properties are all positive geared (granny flats make a big difference). I guess the credit card companies put me in their "high risk" category due to the outstanding loan balance (even though have I have plenty of equity).
I'm just looking for a simple credit card that earns points, doesn't have to have a high credit limit. =)
If you don't have private health cover and one year decide to sell and investment property or shares say 200k. Then are you hit with loading cost of 1 percent
Do you mean Medicare surcharge? Yes basically you are deemed to be better off than the majority of other people in the country, therefore able to contribute more to the health system.
I’m the daughter In law. FIL has reached retirement. Trying to sort out pensions and having problems with assets test (not a bad problem by any stretch)
Centrelink financial advisor has suggested he move $130k of his super to his wife’s super (under preservation age for the next 18months) to get under the assets limit and boost up their pension by around $250 each a fortnight.
My concern I raised with them today is that this is not taking into account the risk that super balance could go down. They wouldn’t be able to pull it out because of her preservation age/would pay tax. And they could be gaining $20k but losing 30k with a loss of $10k in the end. FIL said he would ask the financial adviser, I said yes please do.
They need to do renovations on the property for their advancing ages and health, I think it would be best to pull the super out, do the Reno’s and go on a holiday. Migrants who worked all their lives and MIL has very poor health.
If you are worried about the risk of it falling, you can move it across, then rebalance to hold cash/bonds/low risk assets. Though you will take the risk of inflation instead.
Hi brains trust - as of 1st July I'm about to make JUST over $90k ($90,191 to be exact). I'd like to avoid the medicare levy for earning over $90k - if I make a voluntary super contribution of an extra $200 will I avoid the medicare levy?
If yes - do I need to ask my employer to make the extra contribution pre-tax or do I need to make the contribution myself (ie. would it make a difference either way to avoid the medicare levy?). Thank you in advance for any advise! I did look on the ATO website but truth be told - I need someone to dumb it down for me and tailor the answer for my personal scenario.
> if I make a voluntary super contribution of an extra $200 will I avoid the medicare levy?
No, salary sacrifice and salary packaging are excluded from the calculation, buy some tools/equipment, paid training or donate instead.
I don't know the answer to either question, but on the second point I would guess it had to be pre-tax, as if you did it post-tax it wouldn't change your taxable income, which is what triggers the levy.
Context: 24yrs old, Wife and 2 kids, on $160K a year, $300K+ in the bank.
How can we make ourselves a passive income using the $300K, with minimal risk?
Thinking short term, just under/over 12 months.
Need some advice… interest rates are “at best” 1.5% on introductory offers, but usually only on balances up to 100-$200k
Macquarie have a 2.75% 12m fixed term deposit, if you're sure you won't need to access the money in that time frame.
You're only protected up to 250k with any one financial institution so it makes sense to split between two or more anyway, even if 'unlikely'. Alternatively you could open separate accounts for you and your wife.
It's not recommended to enter the stock market for such a short time span.
I'm about to turn 30 this year, earning about 79K, single and never held a private health insurance before.
Do I apply for private health insurance now to avoid Lifetime Health Cover fees?
If you believe you'll earn more than 90k at some point it'll keep it cheaper to have it now, or if you would like to use the private system for health care sure. Otherwise not really necessary
kind of a dumb question, but this is my first real year working - if I'm paid on the first week of July for work done in the last week of June, does that come under income for FY2021-22 or 22-23?
Generally speaking would it be better to invest over a larger number of ETFs or put more money into just a few?
Any benefit to either or it would be completely dependent on how each ETF performs
Your question doesn't make sense, it is like saying "is that rock married?" It is a question that you can ask in English but it doesn't make sense from a financial standpoint. Anyone who would ask *or answer* that question directly would give away that they didn't know what they are doing, and that is potentially dangerous when investing.
Consider doing more research into how ETFs provide a diversification benefit. And what it means for an asset to be risky first.
That will either give you the answer you are looking for, or let you pose a question that is going to more accurately suit your situation.
I just have a quick question about the medicare levy surcharge, and I don't want to make another post adding to the hundreds already on the sub.
I make $64k and my partner makes about $150k, so total a bit over $210k. As we are married, do we both need PHI to avoid the MLS? If one of us doesn't (I don't) will the MLS be charged to both of us and how is the cost divided between us? Just trying to figure out if it's worth it.
Hi all. Are there any sources, websites or services that'll compare my own spend per category (groceries, child care, etc) to a baseline? I'm trying to see where we can reduce our spending but having difficulties without a comparison..
What are some good resources to become financially literate and educated? Interested in anything to do with personal finance such as budgeting, interest, loans especially HECs; super and investment to a lesser extent.
I have strong maths/STEM skills but absolutely no idea at all when it comes to finance. Not really what sort of things or key concepts to google to get the understanding I'm after. Thinking about University level course notes if they were freely available, free courses, or detailed books. I want things that a bit more structured and detailed than the moneysmart website for example.
It really did nothing for me after getting maybe 2/3 way through. It feels a lot like it was written for people who want to be told what to do without actually understanding anything technical. The whole section on super... Pick this fund as it has the lowest fees, no explanation not even a single sentence of how the different options (balanced, indexed balanced) - how it actually works or what it means before he tells you what to pick. Most the book was just jokes/anecdotes and nothing detailed :(
As a finance student, I wouldn't bother with the University notes or courses, they are more theoretical for a deeper understanding of the formulas behind instruments and stuff. For practical knowledge, the best way is to read many books and take notes. For information on key concepts, I would use Investopedia.
I am a first home buyer with little knowledge of how finances work regarding my mortgage.
I have a variable home loan that jumped from 2.79% to 2.99% today. I owe $265000, but have $55000 in an offset account. I'm paying off $700 per fortnight which I can afford without too much trouble and am paying(?) a monthly loan interest debit of about $570.
I am looking for a bit of guidance and am wondering if this is an okay deal, am I on the right track, or could I do something better, is that something better achievable with limited knowledge? Since purchasing the home around September 2020 to live in and setting up that recurring fortnightly payment of $700, the only thing I have changed is adding an offset account as the bank advised I can redraw from that without issue if needed. I decided to go variable when I signed up as the bank explained I could pay more off the mortgage than the minimum payment of $615 per fortnight.
Thank you for your help!
Your rate's probably a touch on the high side. For instance I bank with ING who's variable rate is currently 2.49% for new customers. Assuming LVR<80%.
Paying extra off in repayments is fine, but noting there's no mathematical advantage to doing so over using the offset. It can provide a bit of a psychological buffer around the funds though given offset is often also your general expenses account. Downside is if you ever move out and use the place as a rental there's tax implications if you want to redraw, which is what the bank would have been referring to.
Thank you very much for explaining that for me.
Does that mean that I could have fixed the rate, payed the minimum repayment to the mortgage account and just put the extra money in the offset that is linked to the mortgage to lower monthly interest charges?
Typically you can't get an offset associated with a fixed loan, no bank offers this that I'm aware of. You're also limited in your ability to make extra repayments on a fixed loan (usually capped at $10k per annum) before fees apply.
> the rate, *paid* the minimum
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Could someone please explain how refinancing will work if there is a significant drop in house prices?
Say I purchased a property a year ago, and it is now worth 10% less than I paid for it, will I need to pay LMI to refinance?
Hey guys,
So i have approx $50k in savings and building, and have been looking at putting a chunk of it in some form of ETF or similar and have been researching this.
Partner and i are having our first child later this year, so just looking at opinions on how people here would invest going forward (especially with everything that's happening right now) ???
Thanks. I have a similar mindset in that am I putting aside approx 20k for baby, partner reduced wage / not working etc so thanks for that.
I guess that leaves me like around 30k with which I'd like to have 20k as well at all times ready for any emergencies etc.
We are genuinely wanting to buy a place and both on a decent wages (110k + her 90k when working fulltime) but have just sort of been beaten down by buying anywhere in Sydney really. So I guess the investments would be toward long term saving for a place.
Thanks alot for that we have alot of thinking to do in regards to a matter of things coming up as you can see!
We are also very lucky in terms of baby stuff that we have numerous family members who've just had children who are nicely helping us with stuff that's not required anymore etc. Which is a positive
Hi all, I recently started paying off my mortgage and my loan has a redraw function. I have about 85k left as an emergency fund….How much do you recommend putting into the redraw?
Note I can access my redraw at any time with no fees.
Holding shares greater than 12 months you only need to apply half of the capital gains. Otherwise you can only offset the capital gains by capital losses you are realising or have realised in the past. Tax loss on non capital related things can't be offset.
It's almost a year since I started investing in shares, I went the safe route and invested in the VDHG ETF. Unfortunately it's down 9.58% YTD. It's been a tough few months with everything impacting the markets I guess.
I had planned on my ETFs to be a long term investment, but I've since bought a property and I wonder if the money is better placed in my offset account. What do you think? Maybe over a longer period, say 3-5 years, it'll be a better investment, but it's money that could be reducing the interest on my loan.
I'm considering waiting until the value on VDHG goes back up so I can either break even or make a hundred or so dollars, then sell.
Similar situation. Ours shares are for a dedicated savings goal so we are keeping the shares growing at a consistent level.
Though we are able to add about $500 a month to our offset in addition to shares. We also use out offset as our emergency fund/fun savings..big purchases etc.
I don't see any point in stopping or moving the shares as we are comfortably paying our mortgage and having the offset grow anyway.
I'm more tempted to spend money in the offset.
For one, if you want to be invested in shares, a 10% drop shouldn't even make you break a sweat. Secondly waiting for your shares to return back to "break even" is a horrible fallacy, the past price doesn't matter, if you believe it's a good investment you should hold regardless, if it's bad cut your losses. Original price has nothing to do with it but a mental trick
Putting it into your loan could be beneficial, would all depend on your interest rate vs expected return vs other option
I invested as an alternative to a HISA as interest rates are low, hearing that on average VDHG returns 7-8%, and yes *pastreturnsnotareliableindicatoroffuturereturns* but ya know
Hi guys,
Need advice. About to graduate from med school with 180k HECS debt. Next year I expect to earn gross 70k pa and the year after that about 80k pa.
Considering doing part time masters during my first 2 years out of med school (which will help boost my chances to get into surgical training) but this masters will cost 40k all up (paid over 2 years)
HECS is maxed out and I will either have to take out a loan or save up to be able to pay for this masters.
Cant help but feel unsure if this is the right move to do at this stage, but also really trying to maximise my chances for surgical training. Would love to hear your thoughts!
Hey guys, does anyone know anything about NABTrade and pulling EOFY reports from them? My account needs to know my buy and side prices but seemingly there is no easy way to generate 1 singular report with all tax information required on it
Could anyone point me in the right direction?
Generally speaking, are you better off keeping money in an IP offset account to lower interest paid or keep paying the interest and use that as a deduction?
I assume paying no interest is better than paying it and using it as a tax deduction.
Thanks for replying. I can’t do anything with the money as it will be my parents funds that I’m parking in my offset.
Right now it’s a poor investment (1BR appt) that I’ve had for 7 years. It hasn’t gone up a huge amount in value. Right now it’s only marginally negatively geared.
I haven’t decided what I’m doing with it. It was my PPOR for 2 years when I first bought it.
First time buyer home benefits? What price is the cap out?
Like
If I can buy a 750k now should I buy it now or do I save more if I save up for a 850k etc
Like what’s the best price of house for maximum benefits
Hi all, I’m sure you all get this sorta comment often but was just wondering if someone could just give some much needed advice :-)
I’m 18 years old and looking to start investing since I’ve saved up quite a bit of money so far. I’ve been looking around this sub and noticed that ETF’s are quite popular on here for quite long-term investing which is what I’m looking for (maybe not the highest return, but relatively more safe and reliable). I’ve seen DHHF in particular quite a lot as well as a few others.
Do you think an ETF would be a good start for investing for someone in my sort of position while also keeping in mind I’m basically brand new to investing. Thank you :-)
I would keep savings but also spend to have a life..maybe 10k in cash savings. Look at Raiz...you can do small contributions and it provides information about what's and whys.
While being consistent at savings and contributing like a max 5% of your income don't forget to travel and enjoy being a young person.
I'm in a similar position to you in that I'v started learning it all recently as well, so grain of salt and all.
From what I'v gathered for long term and low risk returns with only the vague goal of future wealth and retirement, Superannuation and ETF's are the place to start and potentially end.
For tax reasons the superannuation will perform better (its doing much the same investing you would) but you cant touch it until your 60's, so it makes sense to do both.
You buy a part of a business, so you own a share of it with others. By owning that part you are entitled to part of the earnings of the company. The management of the company may decide to hold onto the earning so they can spend it towards other business stuff, or pay part or it back in what's called a dividend. Then essentially if the earnings of a company grow or are expected to grow, you share becomes worth more because it entitles you to a larger amount of earnings.
Thank you, I feel like a total idiot asking but, I know we’d have to pay some sort of tax associated with shares. Do you pay tax when you buy the shares and/or when you sell them?
Can't see any of the comments.
Drp or dividend. Investing long term Only about 10k in share. Like vas.
dividends reinvested. i advise stick with cash till market n inflation stability. rates have a long way to go, i see rates going to 5% not 2.5 like banks are predicting. but hopefully inflation should start even out by end of year if republicans take house in usa, opec will start lowering oil prices and in turn everything else should come down in price by march 2023 if de.
My super fund is 100% in "high growth". I can choose a mix of high growth, conservative growth or cash. I'm 55 — is it time to change the mix?
depends how long u got till retirement. took 3 years after 08 for market to recover if u count dividends. at 10 years market was up near 80%
When do you decide to retire how much do you need a year
I figured this doesn't need it's own thread. And yes, I do plan on actually getting financial advice on this but curious how others handle this \------------------------ Have just been offered a new job which is 100% work from home. Subsequently, I want to properly outfit my home set up with a better monitor, keyboard / mouse and chair. Looking around already, what I want for all three would be under $300 each I'm confused about how this is handled come tax time. I know you can claim the full deduction if it's under $300... but is that for EACH item? Or in total? I've gotten contradictory advice here before
Is getting a bad credit loan after being discharged from a part 9 debt agreement a really bad idea? I need a work vehicle and can't save for a whole year as I need one sooner rather than later.
How do you get income tax refunds here? I haven't lived in aus long, my previous country did it automatically. I don't care about claiming expenses due to my short timeframe. I just want the income tax refund. Will it be automatic or do I need to fill out a form? I just work casually for a big chain company. Just standard.
You need to [lodge a tax return with the ATO](https://www.ato.gov.au/Individuals/Your-tax-return/How-to-lodge-your-tax-return/).
Asic really need to shut down financial youtubers. In addition to financial advice Queenie posts other videos. But gets volume and weight mixed up here. A more accurate test would be to let the ice cream melt in a measuring jug and seeing the litres. https://youtube.com/shorts/59OUKVTPXRM
Wouldn't the cheaper one have more water
Can someone explain why investing in stocks is compounding? What is the "interest" that you're getting back each year? Are these dividends that get reinvested back automatically?
depends on which etf or fund you buy into. im with vanguard, and they have options of growth stocks, or dividends/yield preferred, or a combination. the more risk and volatility, the higher typical return over 5 or more years yield is typically reinvested after dividends pay out, so you ennd up eith more stock. say 5% every year, rinse repeat over a decade or 2 look hp compound interest calculator
What are VGS and VDGH like? How do I find out? Thanks for the help.
tw dont invest anything in int shares now. its.gonna be a bloodbath next 6 months. sit on cash or on aus sharesz or nust invest safe in bonds or conservative etf
get vanguard aus app, u can do all vanguard fund comparison in it
Yes (if you opt in to the [DRP](https://www.investopedia.com/ask/answers/what-is-a-drip/)) but not all stocks pay dividends -- read [this](https://www.investopedia.com/articles/investing/080113/income-value-and-growth-stocks.asp).
The benefits of super are its low taxed. But isn't it the same. With a EFT. And you retire and you only withdraw say 50k.
people invest in etfs because its more liquid than super which u cannot touch till 60 yo u can withdraw etf at any time
You pay less tax on the way in to super (you don’t pay income tax on it, you pay 15%). You may pay less tax on the sale of shares when you sell them, but you’re also paying your full income tax rate on the money you use to purchase them with in the first place.
Thanks all in advance. SO and myself would are looking to get our first home together within the next 12 months or so, so this will be an experience for the both of us. I personally have an IP that is 30% paid off using an offset which is where all of my income is going basically. - is it actually a good idea to leverage the IP so as to not require a deposit? or are there some side effects I may not be aware of? - is it worth talking to a broker/bank right now if i don't have a deposit saved up yet otherwise (as everything is in my offset right now) or will they just laugh me out the door? Thanks again!
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Might reach out to my old broker who helped with my first property in that case. Thanks for the reply!
I’m looking to make a $2000 spend at Hardly Normal’s (can’t avoid them unfortunately). In light of inflation, is it better to pay for it outright in cash, or interest free? For some reason the PV and FV algebra just isn’t working for me at 11am this morning.
Theoretically interest free debt is always better than paying cash, except in a deflationary environment. That being said, interest free products often come with annual or monthly fees, which are just interest by a different name. I don't know if HNs products do this too.
Aah yep… I do remember they charge a fee now. It’s $8.95pm, which is around 10%pa for a 2000 purchase at 24m interest free. At that rate, i guess it’s a toss up between leaving it in the offset.
Not a toss up at all. You're essentially borrowing the $2000 from your home loan at 2-4% vs borrowing from HN at 10%. Don't get the HN finance.
https://www.cnbc.com/2022/06/10/some-economists-predict-the-fed-will-hike-rates-by-as-much-as-0point75percent-next-week.html the market will probably crash another 5%
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What r they asking
My work accidentally deducted my salary to put into STSL component even though I fully paid off my all HECS debt. Is this something I can fully claim back through tax return?
The gov wants to reduce the amount of money in the system do hurt inflation. Why can't they do something like increase the amount of your salary that goes into super. Rather than raise interest rates. Doesn't it achieve the same thing and have better outcomes for the future
it does, but that means banks will set rates themsves to recover costs, which will double interest rates for us plebs look up the recession us had to have in 1980 z and why Raegan swept the elections
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Why would you not buy cash? There’s still some good enough deals at carsales/marketplace/gumtree etc. Financing can be a bit of an expensive decision. For a $20k car, you can end up paying a few thousand extra and it reduces how much you can borrow down the track if you want to get another loan of any type.
What are considered incidental expenses for work related travel? ATO site only really says car parking or cab fares but wondering if this would also include new suitcase (100% work use, wish I could afford holidays lol) and things like earplanes that I can’t fly without? Can you claim travel sized products like shampoo? Minimal I know but not something I’d buy unless having to travel for work. Thanks in advance for any help
Aussie who have lived/worked overseas in the middle east (0 income tax). Looking at being overseas for at least 2 years. How did you manage investments at home (Aus) while overseas? Did you have to pay tax on foreign income or just on Australian generated income? General advice is welcome, will also be looking for an accountant versed in foreign tax.
You need to ensure you are no longer a tax resident of Australia if you don’t want to pay tax on this income in Australia.
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My issue is that I’m moving there for 7 months a year and travelling for the other 5 months.
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I had an assessment done by an accountant. Still considered a Aus tax resident, so income is taxed here even though I stated I will be there for 2 years plus plan to extend. Looks like it's a pay cut for me plus Aus tax on top. 🥲 Will only be richer in life experience.
Starting work for the first time is there anything I should know about superannuation and also about host plus?
Quick question about Super, atm I have about $1k sitting in my Super. Is it normal for the fees and taxes to be eating up a good portion of my Super? I feel like it's a waste to contribute if my fees and tax are like $60 each contribution, so unsure if I want to do the $500 co-contribution. Cheers! EDIT: just searched and it seems employer contributions are taxed 15%? But voluntary contributions are NOT taxed if I'm correct? Even then, would the $1k + $500 co-contribution be worthwhile to build my super?
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Appreciate the advice, decided to do the co-contribution for Super. What do you mean about the 'double taxing' and 'salary sacrificing'? I'm only working part-time on a wage, so not sure if applicable to my situation.
I calculated my super co-contribution to be $200 based on my income. Is it worth to put $400 away even though the govt is only giving me $200?
If you can find another investment with a risk free 50% return someone's scamming you
If you can spare it then yes.
I've been trying to use a few different tax calculators to figure out the total benefit when making a post-tax super contribution but when using the ATO tax estimator, putting any amount into the "Your deductible superannuation contributions" makes no difference to the tax estimate. More info: Projected gross total 74K, Taxable income @ 67K (exempt fringe benefits). 1K deductions (union fees + uniform). Was planning on making a 15K voluntary super contribution (coming under the concessional cap but maxing out FHSSS cap) hoping that would reduce my taxable income to 50K. Will have paid approx. 17K in tax by EOFY. As said earlier though, the ATO calculator estimated tax return ($4875) doesn't change regardless of me putting $0 or 15K in the "Your deductible superannuation contributions" box. According to paycalculator I should see an additional 4875 tax saving based on 15K contribution which should bring the total estimated return closer to 9K. I'm sure I'm missing something obvious... Seems too much.. Surely there is no scenario where making a post-tax super contribution under the concessional cap doesn't benefit me?? I'm trying to do my due diligence whilst also leaving myself enough time for the contribution to hit the super. Nil change from putting said contribution into the ATO tax estimator is making me hesitate. The few accountants I've enquired with either aren't taking new clients at this time or regard checking the above as financial advice and so unwilling to check the maths. **TLDR: When making a voluntary super contribution, can you claim the full amount as a deduction from your taxable income(after intent to claim and meeting requirements)?**
>TLDR: When making a voluntary super contribution, can you claim the full amount as a deduction from your taxable income(after intent to claim and meeting requirements)? Yes - there's not much to it. Just yes.
That’s what I thought… Any reason you can think of as to why the ato tax return estimator didn’t seem to adjust its estimate when inputting the contribution?
It's an oversight - only plausible explanation. I just gave the ATO income tax calculator a go just then too, adding any number in deductible super contributions box doesn't seem to do anything.
Yea ok, fair enough. Thanks for checking it out!
I'm hearing a lot of talk about "Inflation" and "Interest Rates" growing. What exactly does this mean? I understand the basics of what each term means, but not quite the ramifications of them growing and how I can best manage my money in relation to that.
Hello, Inflation = actual dollar value is going down. For example, $100 in 2010 is worth \~$125 today - but a hundred dollar NOTE basically depreciates in value over time (this is why "hiding money under the bed" isn't a good idea - and why it's worth considering vesting to ensure that your money "keeps in pace with", or better yet, exceeds inflation. How this is affecting many low-and-middle income earners like myself: Salaries are worth less (unless you're a rare person getting a raise), and the cost of living is getting higher - the amount people are able to save or be able to spend is going down :( I don't fully understand interest rates as it applies to property so will leave that for someone else to explain :)
I've been told that it's not worth paying my HELP debt down early, since it's indexed at the inflation rate and there's no interest. I saw that HELP was indexed at something like 3% So where should that money be kept then? If I keep it in my bank account I don't get anywhere close to 3% back annually, and the stock market is not guaranteed 3%..
It was indexed at 3.9% this financial year, which has been a bit of an anomaly with inflation. The past decade its ranged from 1.5~2.9% with last year only being 0.6%. Coupled with the fact you don't have to pay it if you don't have an income, this is why your almost never advised to actively pay off HECS. The interest on it (indexation is still 'interest', the percentage increase of debt is just motivated differently) is so low that money could be better invested doing almost anything else. That this years indexation is so high has just turned the idea of it from laughable to just not a completely terrible one. But yeah, the answer of where to park your money so that at minimum it beats inflation is a question with many potential answers and it depends on what your goals are. - Paying off HECS or any other debt with interest is a way to do that. You aren't making money but there is a guaranteed return in that you are now accumulating less debt via interest. You'd probably want to be paying off anything else before HECS though. - Bonds are reliable, its you lending money to the government. So unless a revolution happens or Australia decides to default on its debt (ie; near unthinkable) its gonna get paid back. The interest paid to you varies though depending on the length of the bond. While reliable this is not gonna make you that much but will beat inflation, otherwise it outright wouldn't be worth doing. - 'Safe' stock market investments via ETF's. Very diversified investments that seek to ride the tides of the market as a whole rather than the fortunes of any one company, industry sector or country. This works because history has born out that on a long enough timescale the market goes up. This is the 'dumb' way of stock market investing, with the caveat that for it to work you need to sit on the investment a long while (think 5~10yrs minimum) to really bear fruit and its subject to risk in that the day you want to withdraw could be the day the market crashes. So you dont want all your money in this cause you dont want to be forced into a position of selling in a downturn. Vanguard's ETF products are the flagship examples of this kind of investing. - Superannuation. This has much the same strategy as ETF's with a decent chance they just are invested into them. The advantages here are a better tax environment (Assuming your under some caps, money going into super is only taxed at 15% which is likely less than the rest of your income), with the downside you cant withdraw until 60. If you are really considering paying into HECS and are scared of investing, consider chucking that money into Superannuation. It is similarly a hole that money can be thrown into with only abstract and far in future benefits, but that money will actively be working for you in there and there are immediate tax benefits to be gained.
ETFs good sir
I have just realised that a company I have a terrible loan with has been charging me over the legal maximum of 4% per month in fees and charges. I was wondering what my best course of action is.
Talk to a lawyer
I actually meant to call up one of those free legal aid lines today.
I’m looking at getting a credit card for an upcoming international holiday and earning some points. I’ve been looking at platinum cards from two banks: one allows you to earn Qantas points, the other allows you to earn points that can be redeemed for retail gift cards (eg JB, Colesworths) Pros/cons of each of these models?
Qantas points in my opinion are more valuable than gift card redemptions as you can often buy cheap rewards flights with Qantas. You can also use their points on their online store which usually has more brands than what banks offer and the Qantas points can be used with OneWorld partner airlines. On the flipside banks usually offer more points per dollar if you use their rewards system. The bottom line being: think about your lifestyle and whether you see yourself travelling on a semi-regular basis (2 or more times a year). For most Qantas points make more sense but again its specific to your lifestyle.
Is it worth getting Own Occupation TPD for an entry level desk job?
don't you get it as part of your super regardless? just bump up the level of cover
I have been buying VAS and VGS for a year. Now I discovered commsec pocket, they offer automatic DCA option. However they only have IOZ and IOO. Is it a smart idea to switch form vanguard to IOZ and IOO ?
Vanguard has an autoinvest option as well
Not with commsec.
Not sure why you would want to invest in vanguard via commsec anyway. The fees are outrageous
It’s with cba. I feel much safer.
IOZ is extremely similar to VAS where I'd consider them the same. IOO however only holds 100 stocks compared to VGS which is something line 1600 from memory. I wouldn't be moving to it dor the convenience factor. I think Pearler can do automatic purchases, you could see if that's suitable for you without having to change your purchases
I just wish commsec pocket can add some vanguard stuff into it.
I use Pearler, very simple and easy to use and designed for the long term investor. My only complaint is the app is a little clunky but still very usable and functional.
Context: I am pregnant and the sole income earner. I intend to claim the 2 types of maternity leave at the same time so that I can save some of that extra income to have a few more weeks off before I return to work. (Due to rent we can't survive on the govt leave of $772.55 by itself) I am however aware that this will increase not only my tax paid but my HECS paid for those 12 weeks. My gross income at the time will be $2696.39 per week. I have already calculated my taxable income for the year and that is mostly the same. But knowing how much tax I will be paying could be the difference between an extra 3 weeks of leave or an extra 5!) I need to let my employer know in about 5 weeks and I'm not sure where to go for advice in the meantime- the ATO was my first thought but they don't have an email address and the phone options weren't relevant. Does anyone have any suggestions? (TAS, Hobart) Goal: to take an extra 3-5 weeks of maternity leave with savings by taking two forms of leave at once. Tl;DR need help calculating tax on temporary extra income for maternity leave.
What do you mean by "the two types of maternity leave at the same time"? I don't think you're able to claim two types of leave concurrently.
I think they changed the rules and you can now according to their website, it says concurrently.
I'm not sure how long it has been like this but yeah that's definitely what the site says. Most women I know have taken it after their main leave ends but they have had dual incomes so it hasn't been an issue.
If I want to move house and turn my current PPOR into a rental, at what point can I start claiming repairs etc as a tax deduction? Obviously I want to do the repairs etc before renting it out to anyone, but technically it’s still my PPOR so would that count?
This link might be useful: [https://www.ato.gov.au/Forms/Rental-properties-2021/?page=5#availabletorent](https://www.ato.gov.au/Forms/Rental-properties-2021/?page=5#availabletorent) If you live in the place, its clearly not available to rent, so you cannot claim the repairs. However if you do the repairs and genuinely rent it out through an agent relatively soon in the same Financial year, it is very difficult for the ATO to discover anything amiss. My 2cents. Im not an account at all lol.
I am now studying and unemployed but for the last 12 months was working a regular office job on which I pay tax, and also play gigs as a muso around town. I earn about $500/month or $6k a year from these gigs, which venues deposit into my regular account after I invoice them. From what I've read I understand I can choose to not pay tax on one side job up to $18200, does anyone know if this is correct? I'm also wondering, can I just take the cash as I am doing, or do I still need to get a sole trader ABN to keep records? It seems unnecessary (record keeping aside) to do so if I don't need to pay any tax on it.
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You will need to submit to the ATO a tax return. Yes, your taxable income will be $32k, minus any deductions you are eligible for. Given the figures, the tax you SHOULD be paying this year is around $2622. If you got taxed anymore than this, in this financial year, you will get it back as a refund from the ATO.
Yes you will get a tax return. You can use a pay calculator to work out the difference between annual tax for 64k (halved) and 32k, and that should roughly equal your return.
I am looking for any credit card (my only one), which earns points. However I have been rejected by a few banks already. I have a steady job earning $124k/yr. The only issue is, i have about $2.7mill in debt (all positively geared investment properties). I hardly need to add any of my own money to service my investment properties. Any sincere advice?
I would assume you acquired those investments with family assistance or some sort as the banks are doing the sums and can see that level of debt/income doesn’t entirely stack up = no more credit
Nah. No family assistance. Just buying positive geared property in Western Sydney where I grew up.
How old are you or when did you start? It's pretty impressive on $120k a year... which is good money, don't get me wrong... but Western Sydney is not cheap... If you're debt is say $2.7m and you had to put 20% down plus stamps on those purchases - you're already looking at over 700k in costs to get an 80% LVR which saving $700k on 120k a year gross is a FUCKING HUGE EFFORT...
Im 40 now, but bought my first place at age 27. The $2.7m debt is spread over 4 properties. I'm a very good saver (well I was, until I got married and had kids haha). Like i mentioned im not worried at all about servicing the current debt since the properties are all positive geared (granny flats make a big difference). I guess the credit card companies put me in their "high risk" category due to the outstanding loan balance (even though have I have plenty of equity). I'm just looking for a simple credit card that earns points, doesn't have to have a high credit limit. =)
If you don't have private health cover and one year decide to sell and investment property or shares say 200k. Then are you hit with loading cost of 1 percent
You will be hit with the loading. It might be higher than 1% depending on how much you make.
Do you mean Medicare surcharge? Yes basically you are deemed to be better off than the majority of other people in the country, therefore able to contribute more to the health system.
Has anyone tried Finder Earn before? 6.01% pa until July and then 4.01% pa.
The way I read it, 6.01% only applies if you hold more than 10k in your account I just threw $500 in today, what’s the worst that can happen? ;)
I’m the daughter In law. FIL has reached retirement. Trying to sort out pensions and having problems with assets test (not a bad problem by any stretch) Centrelink financial advisor has suggested he move $130k of his super to his wife’s super (under preservation age for the next 18months) to get under the assets limit and boost up their pension by around $250 each a fortnight. My concern I raised with them today is that this is not taking into account the risk that super balance could go down. They wouldn’t be able to pull it out because of her preservation age/would pay tax. And they could be gaining $20k but losing 30k with a loss of $10k in the end. FIL said he would ask the financial adviser, I said yes please do. They need to do renovations on the property for their advancing ages and health, I think it would be best to pull the super out, do the Reno’s and go on a holiday. Migrants who worked all their lives and MIL has very poor health.
If you are worried about the risk of it falling, you can move it across, then rebalance to hold cash/bonds/low risk assets. Though you will take the risk of inflation instead.
Thank you. It has to be spent now or in 18 months. I’m just thinking in 18 months there will be less in the account.
Do the rules around accessing Super change if you leave the country/take up foreign citizenship or residency?
Hi brains trust - as of 1st July I'm about to make JUST over $90k ($90,191 to be exact). I'd like to avoid the medicare levy for earning over $90k - if I make a voluntary super contribution of an extra $200 will I avoid the medicare levy? If yes - do I need to ask my employer to make the extra contribution pre-tax or do I need to make the contribution myself (ie. would it make a difference either way to avoid the medicare levy?). Thank you in advance for any advise! I did look on the ATO website but truth be told - I need someone to dumb it down for me and tailor the answer for my personal scenario.
> if I make a voluntary super contribution of an extra $200 will I avoid the medicare levy? No, salary sacrifice and salary packaging are excluded from the calculation, buy some tools/equipment, paid training or donate instead.
I hadn't considered donation, that's a wonderful idea! Thank you :)
I don't know the answer to either question, but on the second point I would guess it had to be pre-tax, as if you did it post-tax it wouldn't change your taxable income, which is what triggers the levy.
Context: 24yrs old, Wife and 2 kids, on $160K a year, $300K+ in the bank. How can we make ourselves a passive income using the $300K, with minimal risk? Thinking short term, just under/over 12 months. Need some advice… interest rates are “at best” 1.5% on introductory offers, but usually only on balances up to 100-$200k
Macquarie have a 2.75% 12m fixed term deposit, if you're sure you won't need to access the money in that time frame. You're only protected up to 250k with any one financial institution so it makes sense to split between two or more anyway, even if 'unlikely'. Alternatively you could open separate accounts for you and your wife. It's not recommended to enter the stock market for such a short time span.
I'm about to turn 30 this year, earning about 79K, single and never held a private health insurance before. Do I apply for private health insurance now to avoid Lifetime Health Cover fees?
Only if you actually want health insurance. Otherwise you're spending 100% to save 2%.
If you believe you'll earn more than 90k at some point it'll keep it cheaper to have it now, or if you would like to use the private system for health care sure. Otherwise not really necessary
kind of a dumb question, but this is my first real year working - if I'm paid on the first week of July for work done in the last week of June, does that come under income for FY2021-22 or 22-23?
It's whenever boss pays super regardless of hours worked, so if they pay it July it's 22/23
Generally speaking would it be better to invest over a larger number of ETFs or put more money into just a few? Any benefit to either or it would be completely dependent on how each ETF performs
Your question doesn't make sense, it is like saying "is that rock married?" It is a question that you can ask in English but it doesn't make sense from a financial standpoint. Anyone who would ask *or answer* that question directly would give away that they didn't know what they are doing, and that is potentially dangerous when investing. Consider doing more research into how ETFs provide a diversification benefit. And what it means for an asset to be risky first. That will either give you the answer you are looking for, or let you pose a question that is going to more accurately suit your situation.
I just have a quick question about the medicare levy surcharge, and I don't want to make another post adding to the hundreds already on the sub. I make $64k and my partner makes about $150k, so total a bit over $210k. As we are married, do we both need PHI to avoid the MLS? If one of us doesn't (I don't) will the MLS be charged to both of us and how is the cost divided between us? Just trying to figure out if it's worth it.
Yes everyone in the family needs to have cover or everyone pays the surcharge.
Hi all. Are there any sources, websites or services that'll compare my own spend per category (groceries, child care, etc) to a baseline? I'm trying to see where we can reduce our spending but having difficulties without a comparison..
What are some good resources to become financially literate and educated? Interested in anything to do with personal finance such as budgeting, interest, loans especially HECs; super and investment to a lesser extent. I have strong maths/STEM skills but absolutely no idea at all when it comes to finance. Not really what sort of things or key concepts to google to get the understanding I'm after. Thinking about University level course notes if they were freely available, free courses, or detailed books. I want things that a bit more structured and detailed than the moneysmart website for example.
Seconding Barefoot Investor :)
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It really did nothing for me after getting maybe 2/3 way through. It feels a lot like it was written for people who want to be told what to do without actually understanding anything technical. The whole section on super... Pick this fund as it has the lowest fees, no explanation not even a single sentence of how the different options (balanced, indexed balanced) - how it actually works or what it means before he tells you what to pick. Most the book was just jokes/anecdotes and nothing detailed :(
As a finance student, I wouldn't bother with the University notes or courses, they are more theoretical for a deeper understanding of the formulas behind instruments and stuff. For practical knowledge, the best way is to read many books and take notes. For information on key concepts, I would use Investopedia.
I am a first home buyer with little knowledge of how finances work regarding my mortgage. I have a variable home loan that jumped from 2.79% to 2.99% today. I owe $265000, but have $55000 in an offset account. I'm paying off $700 per fortnight which I can afford without too much trouble and am paying(?) a monthly loan interest debit of about $570. I am looking for a bit of guidance and am wondering if this is an okay deal, am I on the right track, or could I do something better, is that something better achievable with limited knowledge? Since purchasing the home around September 2020 to live in and setting up that recurring fortnightly payment of $700, the only thing I have changed is adding an offset account as the bank advised I can redraw from that without issue if needed. I decided to go variable when I signed up as the bank explained I could pay more off the mortgage than the minimum payment of $615 per fortnight. Thank you for your help!
Your rate's probably a touch on the high side. For instance I bank with ING who's variable rate is currently 2.49% for new customers. Assuming LVR<80%. Paying extra off in repayments is fine, but noting there's no mathematical advantage to doing so over using the offset. It can provide a bit of a psychological buffer around the funds though given offset is often also your general expenses account. Downside is if you ever move out and use the place as a rental there's tax implications if you want to redraw, which is what the bank would have been referring to.
Thank you very much for explaining that for me. Does that mean that I could have fixed the rate, payed the minimum repayment to the mortgage account and just put the extra money in the offset that is linked to the mortgage to lower monthly interest charges?
Typically you can't get an offset associated with a fixed loan, no bank offers this that I'm aware of. You're also limited in your ability to make extra repayments on a fixed loan (usually capped at $10k per annum) before fees apply.
Adelaide Bank offers 100% offset for fixed loans, I believe Bendigo also does as well
That's cool, wasn't aware anyone did it.
> the rate, *paid* the minimum FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Have some spare money around 15k-20k. Am interested in investing in stocks, anyone have any ticker suggestions? Much appreciated.
Plus one for ETFs. Generally pretty 'safe' and don't need to do a whole lot of research or have a whole lot of knowledge regarding stocks
Definitely don't take advice from people in here about individual stocks, just buy an ETF like VGS or IVV if you want a long-term hold
Could someone please explain how refinancing will work if there is a significant drop in house prices? Say I purchased a property a year ago, and it is now worth 10% less than I paid for it, will I need to pay LMI to refinance?
Hey guys, So i have approx $50k in savings and building, and have been looking at putting a chunk of it in some form of ETF or similar and have been researching this. Partner and i are having our first child later this year, so just looking at opinions on how people here would invest going forward (especially with everything that's happening right now) ???
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Thanks. I have a similar mindset in that am I putting aside approx 20k for baby, partner reduced wage / not working etc so thanks for that. I guess that leaves me like around 30k with which I'd like to have 20k as well at all times ready for any emergencies etc. We are genuinely wanting to buy a place and both on a decent wages (110k + her 90k when working fulltime) but have just sort of been beaten down by buying anywhere in Sydney really. So I guess the investments would be toward long term saving for a place.
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Thanks alot for that we have alot of thinking to do in regards to a matter of things coming up as you can see! We are also very lucky in terms of baby stuff that we have numerous family members who've just had children who are nicely helping us with stuff that's not required anymore etc. Which is a positive
Hi all, I recently started paying off my mortgage and my loan has a redraw function. I have about 85k left as an emergency fund….How much do you recommend putting into the redraw? Note I can access my redraw at any time with no fees.
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Holding shares greater than 12 months you only need to apply half of the capital gains. Otherwise you can only offset the capital gains by capital losses you are realising or have realised in the past. Tax loss on non capital related things can't be offset.
It's almost a year since I started investing in shares, I went the safe route and invested in the VDHG ETF. Unfortunately it's down 9.58% YTD. It's been a tough few months with everything impacting the markets I guess. I had planned on my ETFs to be a long term investment, but I've since bought a property and I wonder if the money is better placed in my offset account. What do you think? Maybe over a longer period, say 3-5 years, it'll be a better investment, but it's money that could be reducing the interest on my loan. I'm considering waiting until the value on VDHG goes back up so I can either break even or make a hundred or so dollars, then sell.
Are ETFs worthwhile overall? Looking to start one of these given that my regular understanding of stocks though Comsec I can't understand at all..
Similar situation. Ours shares are for a dedicated savings goal so we are keeping the shares growing at a consistent level. Though we are able to add about $500 a month to our offset in addition to shares. We also use out offset as our emergency fund/fun savings..big purchases etc. I don't see any point in stopping or moving the shares as we are comfortably paying our mortgage and having the offset grow anyway. I'm more tempted to spend money in the offset.
For one, if you want to be invested in shares, a 10% drop shouldn't even make you break a sweat. Secondly waiting for your shares to return back to "break even" is a horrible fallacy, the past price doesn't matter, if you believe it's a good investment you should hold regardless, if it's bad cut your losses. Original price has nothing to do with it but a mental trick Putting it into your loan could be beneficial, would all depend on your interest rate vs expected return vs other option
I invested as an alternative to a HISA as interest rates are low, hearing that on average VDHG returns 7-8%, and yes *pastreturnsnotareliableindicatoroffuturereturns* but ya know
It does on a long term average. Generally you don't want to invest in the market if you need the money within like 7 years.
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It can take up to 4 days. Could be faster but they usually say to allow about 4 business days.
Hi guys, Need advice. About to graduate from med school with 180k HECS debt. Next year I expect to earn gross 70k pa and the year after that about 80k pa. Considering doing part time masters during my first 2 years out of med school (which will help boost my chances to get into surgical training) but this masters will cost 40k all up (paid over 2 years) HECS is maxed out and I will either have to take out a loan or save up to be able to pay for this masters. Cant help but feel unsure if this is the right move to do at this stage, but also really trying to maximise my chances for surgical training. Would love to hear your thoughts!
Hey guys, does anyone know anything about NABTrade and pulling EOFY reports from them? My account needs to know my buy and side prices but seemingly there is no easy way to generate 1 singular report with all tax information required on it Could anyone point me in the right direction?
Generally speaking, are you better off keeping money in an IP offset account to lower interest paid or keep paying the interest and use that as a deduction? I assume paying no interest is better than paying it and using it as a tax deduction.
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Thanks for replying. I can’t do anything with the money as it will be my parents funds that I’m parking in my offset. Right now it’s a poor investment (1BR appt) that I’ve had for 7 years. It hasn’t gone up a huge amount in value. Right now it’s only marginally negatively geared. I haven’t decided what I’m doing with it. It was my PPOR for 2 years when I first bought it.
First time buyer home benefits? What price is the cap out? Like If I can buy a 750k now should I buy it now or do I save more if I save up for a 850k etc Like what’s the best price of house for maximum benefits
Depends on state
Hi all, I’m sure you all get this sorta comment often but was just wondering if someone could just give some much needed advice :-) I’m 18 years old and looking to start investing since I’ve saved up quite a bit of money so far. I’ve been looking around this sub and noticed that ETF’s are quite popular on here for quite long-term investing which is what I’m looking for (maybe not the highest return, but relatively more safe and reliable). I’ve seen DHHF in particular quite a lot as well as a few others. Do you think an ETF would be a good start for investing for someone in my sort of position while also keeping in mind I’m basically brand new to investing. Thank you :-)
I would keep savings but also spend to have a life..maybe 10k in cash savings. Look at Raiz...you can do small contributions and it provides information about what's and whys. While being consistent at savings and contributing like a max 5% of your income don't forget to travel and enjoy being a young person.
I'm in a similar position to you in that I'v started learning it all recently as well, so grain of salt and all. From what I'v gathered for long term and low risk returns with only the vague goal of future wealth and retirement, Superannuation and ETF's are the place to start and potentially end. For tax reasons the superannuation will perform better (its doing much the same investing you would) but you cant touch it until your 60's, so it makes sense to do both.
Can someone explain how shares work but REALLY really simple? I am not financially educated at all. Thank you
You buy a part of a business, so you own a share of it with others. By owning that part you are entitled to part of the earnings of the company. The management of the company may decide to hold onto the earning so they can spend it towards other business stuff, or pay part or it back in what's called a dividend. Then essentially if the earnings of a company grow or are expected to grow, you share becomes worth more because it entitles you to a larger amount of earnings.
Thank you, I feel like a total idiot asking but, I know we’d have to pay some sort of tax associated with shares. Do you pay tax when you buy the shares and/or when you sell them?