16 December 2024

If my employer contributes the minimum (9.5%) and I earn $100K, should I receive $9,500 per year, or is the 9.5% calculated on my net income?

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16 December 2024

I’m looking to really focus on my budget next year; track our spending, stay on top of things, and set some solid saving goals. What apps do people recommend? What are the pros and cons? There are so many options, and I’m feeling a bit lost trying to choose the right one. For context, my wife and I both use Android. Thanks in advance!

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18 December 2024

I currently hold ETFs and have funds in offset accounts. Ignoring market fluctuations and tax implications, at what point does it make sense to shift money between the two? For example: - If interest rates are very low, I assume ETFs are the better option. - If interest rates are high, it seems smarter to focus on offsetting loans. Is the math as simple as ETFs returning ~7%, so you’d start selling once interest rates cross ~6%, given the higher risk of ETFs compared to loan savings? Would love to hear your thoughts!

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18 December 2024

Been reading low cost, reputable LICs like AFIC and Argo are quite competitive to ETFs. Have read that they should be purchased when they are discounted (5%). How do you determine this? Are any currently discounted?

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15 December 2024

I’ve been investing in A200 and IVV for a while, but changes in my weekly expenses and IVV’s higher unit price mean I’d need a decent chunk to keep adding. I’m considering: - Switching from IVV to VGS for a more affordable unit price. - Stopping contributions to A200 and moving to DHHF instead, as the unit price fits better with my current budget. What do you think? I’m not too concerned about diversifying into extra companies—I’m happy with large caps and the additional volatility. I also don’t plan to sell for at least 20 years. Cheers

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26 December 2024

My question is why would I bother investing any where else other than the USA market, historically they have dominated the markets. Maybe I’m wrong but the returns from America vs the rest of the world don’t lie.

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28 December 2024

Hello, we have an IP that is P&I, and we have about $5k redraw available. Is it worth pulling that out of the IP loan and investing in ETFs? Interest rate on the IP is 6.3%. If the above is a good idea, if I pull the $5k out, the interest on the loan is still fully tax deductible as the redraw is used for income producing purposes right? Doesn't that complicate the IP loan once I start redrawing funds to invest in ETFs? Is there a better alternative? TIA

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9 January 2025

At 55 years old and new to ETFs, how should I approach building a portfolio that balances growth potential and risk management, considering my timeline to retirement? Thanks for your help

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3 January 2025

I’m new to investing and I’m so torn between VAS & VGS, DHHT or QQQ. I know they cross over a bit but I’m so confused. I would like something with dividends. Do I just go DHHF as an all in one or do I buy a couple of ETFs? Help!

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15 January 2025

I'm just starting to learn more about finance and recently had a conversation with a friend about making extra super contributions. I'm a high-income earner and subject to the 30% super tax, so I was wondering why I’d add more to super instead of investing in ETFs or other assets. My friend pointed out that super is only taxed once — which was a light bulb moment for me! How do you decide between contributing extra to super versus investing outside of it? What factors do you consider, and what are the pros and cons? I'm 43, so I won’t be able to access my super for about 20 years.

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23 December 2024

Being almost at the draw-down phase of my investing and about to start a superannuation pension, I am interested in potentially drawing on my Pearler portfolio if the pension isn't quite enough or putting more in if there is a bit excess. Particularly concerned for a GFC type event. I see that there are some ETFs that are a premix of asset classes, shares (international, australian, emerging) and fixed income (bonds, hybrids). Maybe VDHG is an example. The rationale being in that in a market downturn, the fixed income portion won’t fall as much and act as a moderator. However, if you are in a draw-down and the income from these no longer covers your minimum needs, you have to sell down. If you are in the mixed class ETF, you are going to be forced to sell down both the share proportion which has been hit as well as the fixed income. If you did a roll yourself ETFs portfolio with a mixed class allocation, you could independently sell down the non-impacted fixed income part of the portfolio and let the impacted shares recover over time. I’d have thought you could do a model portfolio with some target allocations and dollar cost in or out to make it easy but be better protected against a down-turn. e.g. equal weight IOZ (Australian), IOO (International), NDQ (high growth), IEM (emerging markets), QPON (fixed income) A single diversified ETF seems to me to provide no significant protection.

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15 January 2025

I'm turning 30 soon and thinking about private health insurance but struggling to justify the cost. I know there’s a 2% loading each year if you delay getting it and public wait times can be long, but I’m considering self-insuring instead. My idea is to keep a separate savings account for medical expenses, adding to it regularly or topping it up after using it for treatments. Has anyone tried this? How much would you recommend saving to start, and how should I plan contributions? Thanks!

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16 January 2025

Hello! I'd like to know how do I go about selling shares to buy a PPOR with my partner? We don’t own any other property and don’t qualify for first home owner schemes. The houses we’re looking at cost around $1M, and I only have $50k in cash (enough to cover buying costs, leaving $0 for a deposit). I have $300k in shares (VAS/VGS held for 5 years) and am considering selling $100k to use as a deposit. I’m struggling to find online resources that explain this process. Any thoughts, opinions, or suggestions? Links to helpful resources would be greatly appreciated. Thanks!

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21 January 2025

Hi there, I’m a new investor exploring US shares because of their strong historical performance. I’m curious about how the current political climate in the US could influence US shares and ETFs like VGS? Were there any impacts on the market during Trump’s last term that could provide insights? I’d love to hear your thoughts or experiences!

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16 January 2025

Hi everyone, I’m a 25M, new to FIRE, and figuring out the best way to get started. I’ve built an emergency fund and now want to make the most of my savings. Here are the options I’m considering: - A) Invest in stocks (e.g., 100% VDHG) to grow wealth through compound interest. - B) Save for a deposit for a property (I'm renting currently) - C) Split my savings between A and B (what percentage would make sense?). - D) Consider another asset class you think might be a better choice. What would you recommend? I’d appreciate any advice or insights to help me choose the right path. Thanks in advance!

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21 January 2025

Does the exchange rate impact market performance? For example, if the Australian dollar is weak compared to the US dollar, does that affect ETFs like VAS, VGS or VDHG?

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21 January 2025

Beginner - What product to choose for shares - i have no idea at all.

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17 January 2025

A friend recently told me that Nab also offers loan for equity investment @8%. It has its approved list of investment which includes all the major ETF’s in Australia. Property is the not the collateral for the loan, but the portfolio is. Considering a 8-10 yr horizon, if one can achieve a 10%+ CAGR, this might be a decent deal. Thoughts? Am I missing something? Is anyone experienced with this? Also, can the loan interest payments be treated as tax deductible as it is an investment ‘expense’? Keen to know your thoughts..

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22 January 2025

I'm in my 40s, as is my wife, and we have two kids under 10. We own one investment property and recently started investing in ETFs and some ASX/NYSE shares, with about $50k invested so far. Our plan is to DCA around $25k annually over the long term. I recently spoke to a tax accountant about managing our investments, and they suggested setting up a trust. The benefits mentioned were: 1. Tax flexibility: A trust allows more control over how investment income is allocated, potentially saving tax by attributing more income to my wife (who earns less). It could also provide tax benefits in 20 years when cashing out. 2. Trust with a corporate trustee: This setup offers additional advantages, such as easier fund allocation if we separated and quicker access to funds if one of us passed away. However, it's costlier to set up and maintain than a standard trust. I’ve never considered this before, so I’m curious: - Does anyone use a trust for managing investments, and is it worth it? - Is it just something accountants and advisors recommend, or is it genuinely beneficial? - If you’ve set up a trust, did you choose a standard trust or one with a corporate trustee, and why? Thanks for your insights!

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22 January 2025

How do ETFs like VAS ensure their price tracks the index they follow? I understand there’s rebalancing and "in specie" contributions based on the index, but I don’t see how this guarantees the ETF price matches the index. For example, if VAS is trading at $85 and the ASX300 is at 6700, what stops VAS from rising to $90 while the ASX300 drops to 6500? Does VAS issue more shares or buy more of the index to align its NAV? And is it traders who keep the ETF price and NAV in sync? I’m struggling to see how this mechanism works in practice. Can anyone explain?

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