What Would You Do with $200k Annual Savings?

So my wife and I are able to save average of $200k annually and would do it for another 5 years at least (Working our ass off until we have children). Have $200k already in savings and about $100k as a gift from parents. So would you invest into multiple properties by paying 20% or buy outright or buy one property at 20% deposit and invest rest into ETFs. Would love to hear your suggestions.
TIA.

Comments

  • +58 votes

    How you manage to save $200k per year?

    • +40 votes

      Bikies and drugs

      • +43 votes

        Yeah actually you are correct about drugs because I am a Registered Nurse. So have to deal with lots of drugs in a day

        • +63 votes

          your wife must make a lot of money

          • +2 votes

            @Mr Haj: We both are in same profession and earn almost the same.

            • +32 votes

              @Karansingh: An income of $140,000 per person gives an after tax of 100,000. So you both make approx 180-190k?

              • +10 votes

                @Tech5: https://www.payscale.com/research/AU/Job=Registered_Nurse_(RN)/Hourly_Rate
                lol

              • +2 votes

                @Tech5:

                Karansingh on 21/04/2021 - 08:07 new
                +20 votes

                Yeah actually you are correct about drugs because I am a Registered Nurse. So have to deal with lots of drugs in a day

                Karansingh on 21/04/2021 - 08:57 new

                @Mr Haj: We both are in same profession and earn almost the same.

                WTF how much do registered Nurses make?

            • +5 votes

              @Karansingh: Do people not realise how much you can make working weekends and overnights as a trained professional? Especially if your living costs are 20k/y.

              • +5 votes

                @Intoxicoligist: Living costs 20 k/y? whoa.

                Good on you guys.

                •  

                  @Ash SA: Its possible but it usually sucks. Cheap food, lots of roommates and few extravagances. Also a bit easier if you live in the suburbs or semi-rural and not the city.

              • +1 vote

                @Intoxicoligist: Hmmm how about fatigue management and mental health?
                overworked fatigued nurses compromising the care and attention they can provide patients because they’re hunting that extra penalty rate allowance.

                Manage your work life balance so that you can enjoy your time now while away from work.

                Unfortunately You could run your self down for 5 years only to realise in 5 years due to your poor health and stressed lifestyle you can’t have kids or that some other unforeseen event impacts your plans.

                •  

                  @MisterEd: Oh god, I'm not advocating for it in any way. Its a real shit show of a time that I wouldn't do myself. I was just saying its "possible".

        • +6 votes

          Access to S8 drugs.

        •  

          Resale value must be high? Jokes lol

    • +32 votes

      Earning $200k more than they spend I'd say.

    • +33 votes

      They own a car wash.

      • +4 votes

        Lol actually one of my friend actually suggested the other day😂

      • +4 votes

        An A1 car wash!

        • +3 votes

          Have an A1 day!

    • +3 votes

      We both are Registered Nurses

      • +4 votes

        nurses make bank?

        • +23 votes

          This math broke

          Average wage being $70k

          So how much drugs you side husslin ??

          • +12 votes

            @Xistn: You do know that is 'Average' Wage. Some earn more or some earn less. Firstly we work at two places. Pay points of RNs also affect the hourly rate which could be anywhere from 30 dollars an hour to 65 dollars an hour. Plus Weekend and Public holiday penalties. Then you have on call allowances and Night shift allowances. It all adds up.

            • +46 votes

              @Karansingh: Even if you guys were on $65 / hour every hour, you still are unlikely to save $200k after life's expenses unless you have zero expenses.

              • +8 votes

                @tsunamisurfer: If your working 24/7 you might just crack it :D LMAO!

              • +7 votes

                @tsunamisurfer: the weekend penalty is high. My wife was only working on weekend for 12 hours shift each when we had young children and she was able to make close to 0.8 salary. I wouldn't be surprised if they both working weekends, public holiday etc… Saying that, it's not easy to cope and it's not for everyone for sure. Another perk they have is salary packaging. They could have about 9k tax free money at each place and there are other benefits too. Hard work plus smart planning is probably where they are at right now. Good on them!

              •  

                @tsunamisurfer: They could be working FIFO?

              • +1 vote

                @tsunamisurfer: Yeah seriously wtf is this maths they're working with? Either they're completely wrong or they're missing a LOT of income information here.

        • +3 votes

          Overtime, shift work etc.

          • +5 votes

            @brendanm: Mate even if they were making 150k each. After tax and general minimal life expenses they wouldn't be able to save 200k. Unless they live rent free or in some dive rental/country town and walk everywhere.

          • +5 votes

            @brendanm: Probably endless work.

            I'd advise spending some of the money and enjoying your younger years. House, kids mortgage etc etc equates to responsibility, and once you get it it is hard to break free.

            As they say, youth is wasted on the young.

            Life isn't just about money.

            • +1 vote

              @bennos:

              Life isn't just about money

              You don't have to tell me mate, I don't work overtime. Others have different priorities though.

            •  

              @bennos: So true!

        • +1 vote

          I hear the overtime is crazy good. Alot of hours up for grabs

          • +6 votes

            @Chrool: Working 2 places would give them the chance to work pretty much as much as they want (2x8 hour shifts most days would be very possible, nursing needs every warm body possible). Throw in overnights, shift allowance, weekends, casual rate increases, years of experience and other factors its pretty easy to make 200k per person and live on 20k each. Its not the kind of life I'd be happy living, but if you want to FIRE its very possible.

            More power to you OP.

        • +2 votes

          Nurses do not get paid enough! Once you have a family member in the system you really appreciate how overworked they are. Yet most always have a smile and try their best to make the patient + their family happy.

      •  

        How many days in a week do you work even?

    • +11 votes

      Keeping the unnecessary costs low, spending less on shopping luxurious items like expensive accessories and clothing. Putting money aside as soon as I get my pay and leave miniscule amount in the transaction account

      • +32 votes

        Cool, good onya, math still doesn't add up.

        Are you rounding $140k up to 200? Because that's still bloody impressive.

      • +10 votes

        Unless you're both living rent free at home your average yearly cost is still going to be in the $40k+ mark regardless or spending less and saving. That means to save $200k per year and both being on a similar income you would be earning $120k net ($180-$190k gross) https://paycalculator.com.au/

        That would mean you are both earning 2.5X the average wage for a registered nurse (https://www.glassdoor.com.au/Salaries/brisbane-registered-nu...)

        As most have suggested if you really have this money through your own merits and not some amazing side business then get yourself a house of your own and become mortgage free before your kids eat all your savings :)

        • +35 votes

          With a name like Karan Singh, would not be surprised if they are living with their parents and grandparents under 1 roof. I live with my in-laws - cultural thing and when you don't pay for living expenses, you'll be surprised how much you can save.

          Clinical nurse specialist would be on about 90-110k (OP did say NFP health), throw in 1.5x-2x jobs + loading and it is definitely possible.

          Also when you work that much, you don't really have time to spend the money.

          •  

            @arkie0: Fair enough - yes rent/mortgage is the real expense in life. It's still $20k for a couple just to live though. My advice would be to be independent (especially since married).

            Money is important but certainly not everything in life. I had friends in the finance industry in London who had the idea of working hard and retiring early - most got burnt out and serious health issues from the stress and hours.

          •  

            @arkie0: and parents GIFTED 100k wowie!

      • +2 votes

        U r so patient with all these comments .. ! Kudos to you … Not sure how many comments help U with a response to ur question. If U r a risk taker go for investment with multiple properties and a minimal deposit. Whilst also moving into ur own home. Or else get lands which can be subdivided and U can build and rent it out. Invest in land or house not in units ! .

        •  

          I was thinking the same thing! Everyone wants to know how they earn their money but no one wants to answer the initial question.

    • +1 vote

      The OP couple are both registered nurses working 2 full time jobs for Not For Profit organisations, by simply typing keyboards behind screen. Now you know what kind of money the NFP organisations make.
      I am really keen to know what kind of nursing job pays this level.

      https://www.ozbargain.com.au/node/618322?page=2#comment-1036...
      https://www.ozbargain.com.au/node/618322?page=2#comment-1036...

      •  

        by simply typing keyboards behind screen

        Gets paid by the NFP to post on OzB pretending to work overtime, while the real nurses are looking after the patients.

  • +13 votes

    Are you both earning 500k a year?

    •  

      Nope less than that

      • +67 votes

        499.99K?

        • +11 votes

          Close

          •  

            @Karansingh: Well done on the hard work..

            Do you pay compulsory super?

            •  

              @IanC: Compulsory super? Like from.employer? It is standard 9.5%, I don't put any extra( apart from FHSS Scheme)

              •  

                @Karansingh: Yes on the super. You must be

                building a great super balance @ around $45000 year especially in this years market.

                Using the FHSS also good.. well done

                •  

                  @IanC: Thankyou:) It is not that high though

                  •  

                    @Karansingh: sorry I thought I saw somewhere else that you posted that you earned close to $500000 in reply to someone guessing your salary.

                    •  

                      @IanC: Haha sorry that was a reply to joke comment. I better delete that comment🤣

                    •  

                      @IanC: Probably rhetorical.. Surely you are salary sacrifice the max.

                      •  

                        @IanC: Yep. Salary packaging for both of us and then I am sacrificing towards FHSS scheme

                        •  

                          @Karansingh: hope you are able to claim the max $15000 in the FHSS sacrifice.

                          •  

                            @IanC: I don't think there will be any problem to access the super

                            •  
                              •  

                                @IanC: Oh u mean 15000 in a financial year. Yes I had concessional contribution limit carried over from past years so it seems to be okay.

  • +11 votes

    Start with a home to live in.

    •  

      Yeah that is the first target.

      • +19 votes

        Goal 1) Own a home outright

        Goal 2) Build up investment/passive income

        Goal 3) Replace employment/working income

        I would probably work with the first two things first. After you sort these out, gives you options and flexibility to reduce working hours and/or ability to start a family.

        • +1 vote

          That's exactly I am planning to do. Cheers mate!

          • +5 votes

            @Karansingh: Go and see an accountant, explain your situation, and ask them how you can structure your income to minimise tax. At this point the easiest way to increase your income is to reduce your tax bill. Use the extra money to invest in property or other ways to reduce your tax liability. From there find a way to use the money you have to generate more money passively, and look at retiring early.

            • +4 votes

              @Intoxicoligist: I am currently salary sacrificing in the super

            • +1 vote

              @Intoxicoligist: I think there is no other way to minimise tax for salaried workers except the negative gearing things, which basically betting on making capital gain more than the operating loss.

  • +108 votes

    I’d gloat on ozbargain and then spend a few hundred seeing a financial advisor, and give my parents back their 100k and tell them to use it on themselves.

    • +11 votes

      and give my parents back their 100k and tell them to use it on themselves

      Yep.
      Pay back parents and say thanks for the loan, we are now clearly financially able to support ourselves.

      Unless your parents are the kind where 100k is a rounding error im sure they could use it to do something enjoyable as the age.

    •  

      Can't say how much they have got but they have enough that gifting 100k won't affect them at all or their lifestyle.

      • +9 votes

        More about your own pride , tell them to give to charity

        • +45 votes

          It is the cultural background. When parents gift the money it is more of a 'forced gift' and it would be seen as rude and perceived that I am too proud. Some may found it interesting or hard to believe. But yeah different cultures different systems.

          • -32 votes

            @Karansingh: You really are giving the name Karan a run for its money with that attitude…

          •  

            @Karansingh: Well if you want to force that gift along to me… I will be more than happy to alleviate your burden. :)

            •  

              @trapper: yeah me too! It would be hard on me but I am willing to make that sacrifice :)

              •  

                @Dr-StrangeLove: And they say the real ozbargain spirit is dead. Thanks for keeping it alive.

                •  

                  @MS Paint: No worries, I believe true ozbargainer is mostly people who have been barely able to keep their head above the water in the current state of affairs around Australia and the world. But these kind of posts blows me away in spirit and life! I would like to see a troll post with all these examples

                  •  

                    @Dr-StrangeLove:

                    I believe true ozbargainer is mostly people who have been barely able to keep their head above the water in the current state of affairs around Australia and the world

                    Not sure why would think that.
                    It's only selected job sectors that have been significantly impacted by covid. Plenty would be business as usual

  • +5 votes

    Invest in enjoying yourself and you freedom while you have it.

    •  

      Given the amount of hours the OP is working, i don't think there's much freedom left.

  •  

    Buy a home with a granny flat you can rent out, income for life

    • -2 votes

      Our tenant is paying for our whole mortgage. 🤣

  • -1 vote

    I would buy 2 investment properties and negative gear as much ss you can to reduce your taxable income.

    Don't know if it's feasible for you to set up a trust fund

    • +1 vote

      Even if you borrow $1m your interest bill is $20k. Negative gearing is only on the tax component. If you have a $1.2m property and if you are not getting $20k in rent a year (which will make no negative gearing benefit and you have to pay tax on the income) you should seriously reconsidering whether to invest.

      Negative gearing was effective during high interest rates with rates as they are now people are just paying massive amounts in the hope that prices will go to the moon (double in 7 years).

  • +31 votes

    Ahhhh… I love humble-brag posts…

    You should buy Bitcoin with it.

    • +8 votes

      Doge

      • +2 votes

        Have you seen how much it swung in the last day? +/- 30%.

        • +1 vote

          Buy more on the dip

          •  

            @nightelves: Hodl is killing me. I was up 300% on my investment in March. I'm now hovering around 100% up.

            Hope this dip doesn't keep dipping!