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New to Investing - Early inheritance - financial planner or not?

Discussion in 'General Investing Discussion' started by Joshua, 31st Jul, 2018.

  1. Joshua

    Joshua New Member

    Joined:
    31st Jul, 2018
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    Location:
    Sydney
    Hi all,

    I'm new to the investing world.

    My wife and I (31 & 26) have saved approx $100,000 deposit for an investment property and our folks have been generous enough to give us about $300,000 to help kick start our life.

    Our aim is to try and reach financial independence. Until now while we have been thinking only of property investment but I've been tempted by the ETF world and put in $5000 in VDHG.

    I've heard mixed reviews but was wondering if you would be recommended to seek advise from a financial planner prior to starting on our investment journey. If so, would you be able to recommend any (in SYD) and what I should watch out for?

    Thanks for your help in advance
     
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  2. Hodor

    Hodor Well-Known Member

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    hodor
    Most (not all) don't like property in my very limited experience of free consultation via bank and a family member reference to an independent.

    I would avoid any that suggest ongoing percentage based fees.

    Do you have a principle place of residence that you own? Management of cash is important to maximise deductible loans in the future and now.

    The disadvantages of vghd off the top of my head over a selection of others is. Slightly higher fees, at Mercy of asset allocation changes in the future and unwanted capital gains associated with this. You eliminate some behavioural risks which shouldn't be understated. Don't think anyone would look back and say vghd was a terrible decision (if that's roughly the type of product one was after).

    Always pays to have some knowledge yourself, professionals may help. On average some of the most successful investors are the dead ones who don't fiddle so you could just stick with vghg and ignore everything else and concentrate on your inputs.
     
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  3. Joshua

    Joshua New Member

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    Thanks @Hodor for your comments.
    We don't have PPOR at the moment. We just rent (1bedroom aprt) now and we think it would be better to rent now and just rent a bigger house as the family grows rather than buying a large 3-4 bedroom house right now.
    Ideally I'd like to have a diverse portfolio of property and shares such that I can retire with a house paid off and have sufficient income from IP and shares for after retirement living.
    Thought I'd put some $$ in VGHD as it will force me to do something rather than sitting on my arse and just relying on the banks measly interest rate.
     
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  4. Hodor

    Hodor Well-Known Member

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    hodor
    Nothing wrong with not having a PPOR. As it sounds like something you eventually want keep in mind ideally you use cash for the PPOR purchase as it is non-deductible debt, using offset accounts (not redraw) and minimal deposits for IPs may help with tax efficiency and be something to think about.

    Getting some momentum happening with your first purchases is a great way to go. Happy investing
     
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  5. Terryw

    Terryw Well-Known Member

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    9th Jun, 2006
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    Location:
    Sydney

    It might be worthwhile seeing a lawyers first because there are a number of strategies relating to gifts which you and parents should consider. These strategies involve
    - asset protection
    - estate planning
    - tax savings both now and after death
     
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