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33, have some money, have a house. What next?

Discussion in 'Investing Strategies' started by zebra, 15th May, 2016.

  1. zebra

    zebra New Member

    15th May, 2016
    Brisbane, QLD
    Hi all.

    First time poster.

    I'm growing more and more interested in the prospects of investment and realise that it is probably wise to educate myself sooner than later. The sooner I get started, the longer term impacts potentially.

    The basics:

    * 33 year old

    * Decent job prospects (I guess?) senior management in tech/IT industry. Currently sit on about $140k AUD.

    * Two kids. Wife not working, but has a job to go back to. Single income for time being-ish.

    * Small amount of savings in the bank - $23,000 sitting around.

    * Mortgage: Borrowed in 2009 to buy a place worth $418,700 AUD. Around $99,000 left to pay off. I guess that's going ok? Fortnightly repayment is about $743, and I'm putting in an extra $500 per fortnight on top of that to whittle the mortgage away a bit quicker. Got an offset account sitting against it all with ~$175,000 sitting in it.

    - About $220,000 in Superannuation.

    - No credit card debt to speak of.

    - Considering the idea of another house? [Investment home?]
    - Considering paying the house off before I do that. I.e - be debt free before I take on another debt/mortgage.
    - Considering maybe not using the property market at all and trying something else in terms of investments. I read plenty that suggests both +ve's and many -ve's in the property market and the (sometimes) flimsy premise of thinking that a simple negatively geared investment place magically makes me "get ahead".

    I'm not a particularly shrewd or mature person financially. I know how to save money, I know how to not screw up with credit card debt - but I've always been a little bit afraid (perhaps due to lack of education?) of friends who scream things at me like "You gotta spend money to make it!" and "Debt is good!".

    I'm yet to walk up to a real life financial planner and have a chat. It'd be interesting to see what the wisdom of crowds here, thinks.

    I don't live a glamorous lifestyle. Sure, I could afford fast cars, and shiny things but that kind of thing doesn't mean a great deal to me. I'm more interested in life experiences and collecting those. I'm the kind of guy that goes to the ex-Fleet vehicle place and buys the nice car in the corner that is two years old and saves $30 or $40,000 on the cost of what it would have been new, instead of buying "new".

    I've got this weird sense of urgency ticking in my head thinking that I really need to get a move on and start making bank and doing more to further my wealth or investment "before it is too late".

    Really appreciate thoughts/ideas/considerations, if you have any.

    Thank you for your time.

    inertia likes this.
  2. SMSF_woman

    SMSF_woman New Member

    20th Feb, 2016
    Hi Zebra

    Sounds like you've done really well.

    It might be time to invest in yourself with a bit of education or seeing a professional financial planner. There are lots of other options besides an investment property - managed funds, shares etc. It really depends on how conservative you are and how your super is invested. There are lots of great resources on the web - ASIC's MoneySmart website is excellent, we run a site with a lot of educational tools and content: and there are plenty of good planners out there who could help you work out next steps.

    Good luck!
  3. jeremygard

    jeremygard Member

    22nd Jun, 2016
    Gold Coast
    Sounds like you're ready for an upgrade...

    Hi zebra,

    First time poster here to and delighted to find a post like yours to engage with.

    Congrats on building a such a solid financial base as you have by age 33. You've now got many options open to you.

    Understand your hesitancy to approach an adviser, I was like this myself for many years. So I decided to get my own qualifications and go into business for myself. Now I mentor with other 6 and 7 figure investors and business entrepreneurs to give me the edge with new ideas and strategies. Oh and I also got an AFSL while I was at it :)

    Not saying I know it all, but enough to help my clients stay ahead of the curve.

    Funny how you have that sense of stagnation (if you don't mind me using that word). I've often found that when I'm not being proactive with my investments and wealth creation, I seem to get that same sense of urgency to heat things up somewhat.

    I used to do a lot of trading in the stock, options and futures markets, both for myself and for my client base. That would usually give me the activity fix I needed to keep my wealth creation muscles in check. However, you need to understand that investment and wealth creation are a long term, and sometimes boring game. These days, I'm more focused on the medium to longer term outlook, not the day trading world. Although I still love analysing the charts and I'll occasionally lay my chips down when I see an opportunity.

    You want excitement, go to the casino and blow some money on the blackjack tables - responsibly of course, allocating a small portion only and being disciplined enough to leave early.

    When it comes to your family's financial life, I wouldn't be taking any chances.

    The fundamentals are always the same - spend less than you earn, invest the difference and reinvest the returns for compound growth. Keep doing that until you reach a critical mass where your 'portfolio income' is equal or greater than your 'earned income' and you're financially free.

    Then the real game starts - exponentially expanding your wealth through more sophisticated investments and businesses.

    From what you've outlined, sounds like you're taking all the right steps to reduce debt levels, and build your asset base at the same time.

    Keep doing what you're doing for the time being, don't let that sense of urgency push you into making any rash decisions that may cause you to go backwards. Keep the momentum up and moving you forward.

    You might consider putting your Super to good use in some property investments, and cut your teeth in the investment property game there, before spending your actual savings which have been a lot harder to accumulate in after tax dollars.

    With the low tax environment of super, you can really set yourself up for a financially free future in retirement. Your challenge now at such a young age though is to enjoy your wealth now.

    I work with many clients who are in your situation, actually not as solid financially as you my friend, and coach them in their financial life decisions.

    Not a financial planner, more a financial life manager. I work very closely with my clients to help them make better choices and align their life goals with their finances. This way your actual investments and asset acquisition activities are moving you toward the ultimate vision and purpose you have for your life, rather than just putting money in an investment because you think you have to or should be investing. Wealth creation in line with your life's purpose.

    I'd be honoured to have a short chat with you, either via Skype or in person if you're local - I'm on the Gold Coast, and see if there is some synergies in what I do and how it might help you.

    I don't work with everyone, as I think their needs to be a good rapport and trust between us before we embark on any projects or strategies that could have an impact on your financial life. Plus I only want raving fan clients, not people who are going to quit on their dreams 12 months down the track because they run into issues or hardships. Part of our discussions will be to anticipate any potential road blocks or obstacles and put in place plans to handle them in advance before they ever become an issue that could throw you off track.

    All pretty common sense stuff I'm sharing here I'm sure you'd agree. I just find that most people don't implement, which is where I come in as their financial coach.

    I'm new here but I think you can send me a personal email from my profile if you wanted to make contact with me.

    Would love to give you more insight and offer more assistance with potential strategies and paths you can take, but limited here in what I can share. Would rather just talk it through with you.

    Either way, my advice to you is to start to think about your life's purpose and the vision you have for your future. Where do you want to live, what do you see yourself doing. Imagine that money were no longer an factor and you were free to choose from whatever life has to offer. Get clear on your dreams and goals, then we can talk about actual investment and business vehicles that could do the job to get you there.

    Thank you for posting this Zebra, you've given me a good platform for my first post here also.

    All the best.