Eto Posted May 14, 2015 Report Share Posted May 14, 2015 Hi All, We looking at moving across again (yep been in Perth before), but I am now 50 years old and not sure what to do with my "life savings" once we land in Perth. Definitely not a fortune, but would like to invest in the right places The question is whether to invest it all in our new house or to pay only the minimum deposit required and then re-invest the rest in super. I plan to speak to an investment guru, but would like to here from people on this forum, as I am sure that I am not the only person in this little boat :). Looking fwd to hearing from someone.. Take care Eto Quote Link to comment Share on other sites More sharing options...
HansaPlease Posted May 14, 2015 Report Share Posted May 14, 2015 I really like Scott Pape's advice - check out the Barefoot Investor. There's a subscription with newsletters, etc and he follows a fairly simple "don't waste your money" philosophy based on solid principles rather than risky investing. We've bought a number of the shares that he has suggested, and quite often he has good suggestions for everything from good mortgage providers, to good savings accounts, credit cards, etc, all with the same goal in mind - building wealth. 2 Quote Link to comment Share on other sites More sharing options...
monsta Posted May 15, 2015 Report Share Posted May 15, 2015 (edited) Don't put your money in Super. It will be taxed if you do.I have also seen stuff online from the barefoot investor. I didn't pay for his newsletters, but his advice like investing in reputable Listed Investment Companies seems solid to me.I would also ask your question on this on this forumhttp://forums.whirlpool.net.au/forum/150They seemed pretty clued up from what I could read. They are good for advise on which share trading platform is the best or cheapest, etc..But remember, none of what we advise here can replace a properly trained financial advisor. I would go and see one when you arrive in Perth.Oh and Aussie has had problems in recent times with financial advisors who make commissions on the products they sell. So, look for someone who is independent and properly qualified. Edited May 15, 2015 by monsta 1 Quote Link to comment Share on other sites More sharing options...
Tiermelk Posted May 15, 2015 Report Share Posted May 15, 2015 Hansa do you subscribe to his Barefoot Blueprint program? Quote Link to comment Share on other sites More sharing options...
HansaPlease Posted May 15, 2015 Report Share Posted May 15, 2015 Yes we do! Quote Link to comment Share on other sites More sharing options...
Fish Posted May 16, 2015 Report Share Posted May 16, 2015 Don't put your money in Super. It will be taxed if you do....I don't think voluntary contributions are taxed monsta until you exceed the cap (maybe over $180,000 ?). Quote Link to comment Share on other sites More sharing options...
Mara Posted May 16, 2015 Report Share Posted May 16, 2015 Sometimes I think Monsta lives by his own set of rules, hehe! 1 Quote Link to comment Share on other sites More sharing options...
Tiermelk Posted May 16, 2015 Report Share Posted May 16, 2015 I don't think voluntary contributions are taxed monsta until you exceed the cap (maybe over $180,000 ?).Super contributions is taxed, but usually at a much lower rate (*15%) then your normal tax bracket. For more see here... http://www.cbussuper.com.au/superannuation/taxation/how-is-super-taxedNot that I totally agree with monsta, but there is a risk that government can change the rules around super. For me it makes sense at the moment to salary sacrifice into super, taking the risk into account that government can change super rules and your money is stuck in super! Example salary sacrifice $100 take 15% tax gives you $85 going into super vs $63 (37% tax rate) in your pocket. However I don`t think you should be putting money in super that you`ve already paid tax on. 1 Quote Link to comment Share on other sites More sharing options...
monsta Posted May 16, 2015 Report Share Posted May 16, 2015 (edited) Hey guys,I was told not to put extra in my super from a mate who is a partner in a CA firm. His logic is that you could use the money for another purpose. For example to pay off your home sooner or put down a deposit on a home (if you don't own one). Add to that a lot of super funds aren't a terribly good investment. What I mean by that is a lot of them performed worse than the average for the stock exchange. But then a couple if forum members have praised industry super funds which invest in local projects and not just shares like retail super funds.@Tiermelk You are right about a salary sacrifice. It is a good way to save as you are saving on tax. But I wouldn't bring my life savings from RSA and put it into a super. Edited May 16, 2015 by monsta 1 Quote Link to comment Share on other sites More sharing options...
Fish Posted May 16, 2015 Report Share Posted May 16, 2015 (edited) Super contributions is taxed, but usually at a much lower rate (*15%) then your normal tax bracket. For more see here... http://www.cbussuper.com.au/superannuation/taxation/how-is-super-taxedNot that I totally agree with monsta, but there is a risk that government can change the rules around super. For me it makes sense at the moment to salary sacrifice into super, taking the risk into account that government can change super rules and your money is stuck in super! Example salary sacrifice $100 take 15% tax gives you $85 going into super vs $63 (37% tax rate) in your pocket. However I don`t think you should be putting money in super that you`ve already paid tax on. Hi Tiermelk, FYI, we're not talking about normal super contributions from your employer or additional contributions from pre-tax income, but rather additional contributions from your own savings where tax has already been paid when your earned that money.From your link:"Non-concessional contributions - Personal contributionsContributions that you make (from your after-tax salary) are generally not subject to any tax when paid into Cbus. However, there are limits on the amount of after tax contributions (also known as non-concessional contributions) you can make." ​I agree about the "lock in" factor. That is always the risk with super.As a FYI for those who don't know, you can often choose your own investment vehicles, asset class mix and risk profile within your super fund to better suit the type of investing you wish to do. You don't have to accept the default choices of the super fund....@Tiermelk You are right about a salary sacrifice. It is a good way to save as you are saving on tax. But I wouldn't bring my life savings from RSA and put it into a super.No, I wouldn't either. I would be more inclined to put some into an index linked fund which gives you diversity and low mgt fees combined with liquidity.Btw, if needing a bank account to put the money in short term while deciding you should look at the online banks (often backed by traditional banks) that offer better interest rates. eg www.ubank.com.au Edited May 16, 2015 by Fish 2 Quote Link to comment Share on other sites More sharing options...
monsta Posted May 17, 2015 Report Share Posted May 17, 2015 I think all our confusing advice just highlights that he should go and see a professional But I think we did hit on a few things...1) Check on the tax implications of putting your money into your super.2) A super may not give you the best returns. Consider asking your super fund to change the investment strategy and don't just blindly accept the default. Look into a industry super fund.3) Never forget the fees charged may make a big difference. There may be other investment options with lower fees such as indexed funds or listed investment companies 2 Quote Link to comment Share on other sites More sharing options...
Eto Posted May 18, 2015 Author Report Share Posted May 18, 2015 Hi All,My wife also said that I should go and see a professional, but she wasn't talking about our finances Many thanks to you all for your valueable input, which is much appreciated.An ozzie friend of mine suggested that I pay my house off before retirement and then make full use of the Australian old age pension. Not sure what your view is on this???Take careEto Quote Link to comment Share on other sites More sharing options...
SurferMan Posted May 18, 2015 Report Share Posted May 18, 2015 (edited) Hi Eto,If your money is post tax, then its obvious not to put it in a Super. Keep it at least in some interest bearing account while you determine your combat plan. As for these "wise wealth professionals" well I am err, pfff. What can they do that you cannot learn yourself? It's only numbers.The investment decision is based on your needs. If you write down your long term needs, then all you need to do is reverse engineer the roadmap to achieve it.EG I want to retire at 65. I have xxx dollars. I want a modest house that will be easy to clean and live in when I am older. I want xxx dollars a month pension....I say this because I was one of those who paid "professionals" both in SA, the Middle East, Fiji and Aus. Guess what? The answer is always the same, based on what you want long term. Therefore there is no value in paying these fellows your hard earned coin. :boxing: If you are able to read and punch in some numbers into a spread sheet, you are good. Go here for the best free spread sheets ever. Vertex42.comBy the sounds of things you seem to know what you want already, so plot it down on paper, and then plan how you will get there. Always have a plan B for each major event, and you should pretty much be there. The best part? Did not cost you a dime, nor did you have to sit in an overstuffed sofa and tell your life story to a bored fellow in a suit. Sorry if I offend anyone!! Lastly, in the interests of impartiality (right Surferman) all the money you pay to one of these fellows is tax deductable, if you decide to go and see one. So technically no real loss.... Edited May 18, 2015 by SurferMan 1 Quote Link to comment Share on other sites More sharing options...
Tiermelk Posted May 18, 2015 Report Share Posted May 18, 2015 So technically no real loss....A deduction just reduces your taxable income - you are still paying for the adviser with your own money - It`s just costing you a little less - his fee minus your tax rate. Quote Link to comment Share on other sites More sharing options...
Eto Posted May 19, 2015 Author Report Share Posted May 19, 2015 Shotto Surferman.Will have a look at the spread sheets.Take careEto Quote Link to comment Share on other sites More sharing options...
Nev Posted May 19, 2015 Report Share Posted May 19, 2015 @Surfer ..... Nice link that one, having a dig though the calculators now Quote Link to comment Share on other sites More sharing options...
Eto Posted May 19, 2015 Author Report Share Posted May 19, 2015 Agreed and believe it to be correct, as it confirmed that I cannot retire at 65 Quote Link to comment Share on other sites More sharing options...
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