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

              • +1 vote

                @nightelves: Yup. Had mates say not to sell as tax implications if held less than a year. But… A 200% (2/3) drop.. Tax would have been much less!

                • -2 votes

                  @Name: If it stays as usdt then no tax. Only when it’s in fiat then yes. Transfer it to a Singapore 😅

                  • +1 vote

                    @nightelves: Technically every transaction is a taxable event, including between coins (not just fiat). If you were using an offshore exchange, the ATO may or may not have visibility of that.

            •  

              @Name: Are you hodling doge? That sh!tcoin is a musical chairs pump and dump. Get in and gtfo

    •  

      Or GME

  • +2 votes

    I would think about where you want to live when you do have children. Buy there and call it an investment property until you want to move in.

    If you have any left, id Park it in an etf.

    Alternatively split the funds and buy 2 investment properties (or 3 depending on the type of pptys)

  • +9 votes

    I would get inspiration from Aussie firebug and mskeggs. That's about it.

    • +2 votes

      i came here to say the same thing. Look into the FIRE community.
      The simple way is live cheap (which youre doing). Earn a lot (tick). Invest the rest (ETFs or LICs are what they recommend). Once you're at around $1.2m you can live off the dividends and be free from the rat race. Some people might take 20 years to reach that point, im hoping around 12 years. You have the chance to retire in 5, which is incredible. Well done. Listen to his podcast though for more details

      •  

        I'm intrigued. Care to share a link or point to the right direction? :)

  • +12 votes

    Sorry guys if it sounds like a bragging post. Genuinely wanted to hear people's opinion and different perspective. Cheers

    • +7 votes

      Negative votes? I mean why? Usually have seen people encouraging each other if someone is able to save more. Then why the hate just for a question?

      • +9 votes

        People tend to get upset that people who work hard make money.

        • +4 votes

          Yes probably but still that's sad that people just don't wanna work and then complain that they can't save. Everything comes at a cost and I do realise that by working harder I am giving up my social life, leisure etc.

          • +3 votes

            @Karansingh: There are also those of us who work hard but are terrible at negotiating pay or are in industries that were negatively affected by the pandemic. There's a certain component of luck that the more fortunate either disregard or genuinely forget about.

            • +8 votes

              @chartparker: Doesn't mean people who are busting their asses and making money should be negged for it. I personally won't work over 40 hours a week, but more power to people who do, if it gets them where they want to be.

              • +2 votes

                @brendanm: Well truth be told it really is our own faults. There are so many opportunities here that there are few excuses. The trick is finding something that is lucrative that you won't lose interest in, and ideally morally responsible. There are much more opportunities to make money if you have no scruples… which sadly excludes me and my inability to exploit others for financial benefit. Curses!

            • +4 votes

              @chartparker: One's misfortune =/= another one's fortune. Just because someone is in the unfortunate position to have lost their job does not mean OP is "lucky" that they didn't lose theirs.

              In general, most work in completely different industries, have completely different jobs, work different hours. If you were both working in the same damn office holding the exact same role, and your boss literally closed his eyes and crossed a random name off the list of people to keep, then yes OP is lucky, and you're unlucky.

              •  

                @Jaystea: Oh absolutely agree, but what I meant more was picking a career or direction that you think will be in demand by the time you graduate, and let's say a trade dispute occurs, or a scandal involving the industry or a once in a lifetime pandemic. All of a sudden those prospects and your future is up in the air, hence the "luck" side of it.

                That said I do strongly believe that we make our own destinies, but being the relatively low risk type of person I always struggle with committing to developing a skill or exploring a revenue stream if I'm not sure it's going to be worth the time and effort I put into it - that was what I was referring to when finding something I'd be happy spending time on even if it didn't make money. Also not screwing over other people in the process of making money.

                I put in just as much effort into my degree over 5 years as others I know who studied Med, but they earn multitudes more than I do after the same amount of time in their respective careers. Could I have also done medicine? I believe so, but it's not a strong interest of mine so it didn't really register to me when I was younger that later on in life I might prefer to do a job I don't particularly enjoy as long as it paid well enough for me to enjoy my time off and be financially worry free. I picked the other direction.

          • +1 vote

            @Karansingh: Good on you mate!
            Just a minor piece of advise- take it or leave it. If you work extremely hard hours, you will have a burnout. It is good to save, but ensure that you spend some quality time with your better half, and indulge once a while.
            Well done on your savings.

      • -3 votes

        yeah, u dont wanna brag that you got 200k in the bank…..10k at most, anything beyond that and you're just asking to be bagged around here. Hell even I'm jelly you got 200k….I have less than 1% of that saved up.

  • +7 votes

    $10k on black.

    • +21 votes

      I thought slavery was ended decades ago??

      •  

        It was, by the British.

        They only just finished paying off the debt associated with it as well.

  • +4 votes

    Your parents are obviously cashed up - why not ask them, they didn't get where they are by not knowing what they are doing (presumably!).

    • +5 votes

      I have, Thats how I managed to save. They are old school so more of a Fixed Deposit type of person. Moreover they don't know about stocks and other investments.

  • +21 votes

    If you earn that much, you can afford to pay a qualified financial advisor instead of seeking advice on a bargains website.

    • -10 votes

      I sure can. Aren't half of the post on the forums can be asked to another person or a professional? I thought forums are made to discuss.

      • +3 votes

        That's true. But if you want the best financial advice for a large sum of money, I'd strongly suggest speaking to a professional rather than random people on a forum.

        • +4 votes

          Yeah I am going to. But with some brilliant minds here I would like to get an idea and then would be able to ask the financial advisor that "Would (Insert Idea) be a good investment for me?"

    • +3 votes

      Disagree. Many financial advisors will charge an arm and a leg and only give half the advice of something as mediocre as that of the barefoot investor.

  • +2 votes

    Didn't know nurses are paid so highly !

    •  

      Double jobs mate and some days double shifts! It is stressful sometimes but worth it in the end.

      •  

        Hey mate firstly I'm impressed about how much you guys are working and saving. Truly impressive. Just thought I'd throw an opinion which may be off topic. But from the view of a patient, I think working double shifts in a critical role like this should not be allowed. Overworking can bring mistakes and mistakes can cost lives. And I'm not saying
        You've made mistakes nor do I ever wish you do. But I just see it as a risk to patients.

        •  

          Thanks mate.
          But as mentioned multiple times in the other comments, I am not directly involved in patient's care

    • +8 votes

      If they're both earning right at the top end of the RN rate, and working 50 hour weeks all 52 weeks of the year, and living on noodles, and living rent free with their family, and walking or cycling to work, then they might just be able to save that much. Just.

  • +22 votes

    "When I started this business all I had was a dream and a million dollars from my parents"

    • +4 votes

      100k to be precise

  • +5 votes

    This is what I would do:

    1. House to live in

    2. Diversified portfolio, don't put it all in the same place

    • ETFs / managed funds like Vanguard
    • Investment property
    • A small amount in Bitcoin if it interests you
    • Small amount in savings account for emergency funds
    • +3 votes

      Cheers mate. Already have Spaceship. Will definitely chuck some money in Vanguard ETF

  •  

    Congratulations on your savings. This is great. You can probably earn more by writing your own books, and talking about your achievements.

    On serious note, if you are currently renting, keep on renting. It is cheaper to rent and have own investment property, and makes sense because you can generally live in better locations than you can afford to buy.

    If you want to get on to property bandwagon to eventually have your own home, buy investment property. For $300k you should be able to buy two with 20% deposit plus stamp duty etc. You must be on higher income because you take night and weekend shifts. You can sacrifice now, but that might change when you have kids.

    Also, spend something on yourself, doesn’t need to be big. Odd weekend with family and friends. Because relentless hard work and sacrifice might leave you burnt.

    Because you are young, and no liability, you might have higher capacity to take risk. Higher risks generally is higher returns. So, have some investment in speculative shares, bitcoin. EFTs are good for time poor investors. They generally return better on medium term.

    You can also put money in super under the home buyer deposit scheme.

    • +2 votes

      Haha the first para😅.
      I am currently in Regional Vic and like it here so won't rent here.
      Yeah this plan for buying two properties seems better according to my situation.

      We do treat ourselves by going on long drives, short getaways, adventures etc. Unfortunately friends are busy during the week and I am free during the week.

      Yeah turning 26 in July, high hopes from the future and want to keep going and hope for early retirement. Not too keen kn cryptos but slowly investing in ETFs.

      Have been salary sacrificing in Super already.
      Thanks alot for your detailed explanation😊

      •  

        Bitcoin and the top 10 cryptos are doing really well, or somehow get in on of their fund https://ark-invest.com/. Ofc wait for another correction first ( it is long overdue ). Or buy a storage business ( you will never lack of customers ).

  • -1 vote

    Buy multiple properties 20% deposit or less. forget ETF.

    •  

      Thanks. No ETFs due to market being volatile?

      • +2 votes

        Depends on your risk profile and appetite. I find housing market to be of a sufficient risk and investment for me (conservative). A more important question is your cashflow and how you plan to repay the mortgage. PM me if you want to chat more.

        Thanks

  • +22 votes

    So my wife and I are able to save average of $200k annually

    This is absolute BS as nurses. I'm calling you out OP.

    • -6 votes

      Why would I lie about that? I am not trying to brag or trying to impress someone?

      • +5 votes

        Prove you are making $170k pa as a nurse each

        • +1 vote

          And why do I have to prove?

          • +13 votes

            @Karansingh: Because the maths doesn't work out..

            $170k (income) - $50k (tax) - $20k (living) = $100k (savings)

            And this is each. I stand by my first claim.

            •  

              @MS Paint: See my reply to 'Xistn'

              • +1 vote

                @Karansingh: How many hours a week are you working?

                • +1 vote

                  @MS Paint: 70-80

                  • +6 votes

                    @Karansingh: Ok. Thats painful. You need to live a little dude. Surprised you get rostered and allowed to work that as a nurse.

                    •  

                      @MS Paint: I work two jobs.

                      • +15 votes

                        @Karansingh: Enjoy life. It's not all about the money. That is not sustainable. Something has to give:
                        A) relationship
                        B) job (high chance of errors)
                        C) your health

                        • -1 vote

                          @MS Paint: My position is more of a managerial type. So no chance of errors.
                          And yeah The plan is to work like this for few years and then will cut down considerably to give time to Children. Wife and I work at same jobs so we see each other alot throughout the day.

                          • +19 votes

                            @Karansingh: Managers don't make mistakes?

                            My manager would like to have a chat.

                            •  

                              @MS Paint: Haha yeah I do but that is easily fixable by pressing 'Undo' button in Excel or Word. I basically supervise, educate the staff and make care plans.

                              • +2 votes

                                @Karansingh: Fatigue can still impact your work in a role like this. How good are the care plans? What happens if you make a bad call giving advice to someone you’re supervising?

                          • +14 votes

                            @Karansingh:

                            Wife and I work at same jobs so we see each other alot throughout the day.

                            How romantic. As a husband of 25 years I can tell you that's not how it works.

                    •  

                      @MS Paint: Lol i work anywhere from 80-118 as a disability worker so not suprised here.

                  • +11 votes

                    @Karansingh: Yeah, I'm still not buying it. At best, 70 hours is 10 hours a day, 7 days a week. At worst, 80 hours, which is up to 16 hour days 5 days a week. Averaged out is about 12.5hours per day over a 6 day week.

                    I do some weeks where I do 50 to almost 60 hours for the week and I feel like I have been through a chaffing machine at the end of it. Please let me know what hospital you work at so I can make sure I am never in the area if they are allowing their staff to work 80 hour weeks.

                    • -8 votes

                      @pegaxs: Well don't buy it mate then simple. Don't stress. Have a good day

                    • +5 votes

                      @pegaxs: I think that might be related to OP's cultural background. Health professionals all work around 60-80h/week in many developing countries. I used to do that, which was one of the reasons why I left as that's obviously not healthy. Seeing one patient every 10-15 minutes for 10 hours is not something I'd recommend anyway.

                      The funny thing is that we (hard-working migrants from developing countries) are sometimes labelled as lazy, but then we come to Australia and see that most people here work from 9AM-5PM, sometimes doing very little. When we say that we're used to work two jobs, and maybe 80h/week of hard work, people, Australians in particular, can't believe it. First-world problems…

                    • -1 vote

                      @pegaxs: I dont know how I do it. Good diet, plus caffeine gives me enough energy. And body adapts the way you want it to be. 5 years ago I used to play on My phone and ps4 for 12 hours a day basically.

                      • +3 votes

                        @Karansingh:

                        I used to play on My phone and ps4 for 12 hours a day

                        Playing on your phone and PS4 is not the same as working in a busy, high stress, physical, emotional and mentally challenging environment.

                        Either way, I still don't believe you that you do 10 hours a day without any days off or are doing 16 hour days 5 days a week and have done that year in, year out. There is no "good diet" or amount of coffee that would stop you burning out at that rate. It's the mental fatigue that catches up with you, not the physical.

                        I'm not saying a person cant do a 80 hour week (I have done a few) but to suggest you do it every week for the entire year is bullshit. And for the sake of your patients, I hope no one has to die to show you just how irresponsible doing 80 hours a week can be, let alone for "years".

                        Well don't buy it mate then simple

                        Trust me, I don't, and neither do many others it seems.

                        •  

                          @pegaxs:

                          …is not the same as working in a busy, high stress, physical, emotional and mentally challenging environment.

                          Many jobs are not all those things though.

                          If you enjoy your work the hours don't even feel that long.

                          A lot of people in my industry enjoy it so much they go home after work… and do more work on some hobby/side project at home until midnight.

                          That's an extra four hours a day - for fun!

                        • +1 vote

                          @pegaxs:

                          I'm not saying a person cant do a 80 hour week (I have done a few) but to suggest you do it every week for the entire year is bullshit. And for the sake of your patients, I hope no one has to die to show you just how irresponsible doing 80 hours a week can be, let alone for "years".

                          I wish I could upvote your post many more times.
                          Turning out to work fatigued, and making wrong decisions could be life threatening to patients. Saying my body is built for it is total BS.

                        •  

                          @pegaxs: Lol will upload screenshot of my income statement at the End of Financial Year.

                        • +2 votes

                          @pegaxs: And again for 5th time I am not directly involved in client's or patient's care. How do I know? Because it is my profession. And both of my employers know about my hours and work and they happily and willingly ask me to work. So won't they know better about risks involved. I asked a question about investment and now people are calling me out saying that I am just lying🤣

                    • +4 votes

                      @pegaxs: I respect your opinions on cars prob the most of anyone here pegaxs. But just like how many people's opinions on cars can seem wildly misinformed, I'm afraid yours on healthcare workers would be too. If you don't want to go to a hospital where staff work 80 hour weeks, your only respite would be the chiro, or naturopath.

                      Tongue in cheek aside, 80 hour work weeks for health professionals whether it be nurses or doctors are incredibly common. While it may not be the norm, it is also not an outlying rarity either. I agree OP is working a lot of hours. But if they were to work 6 days a week, it's highly doable. Most people just choose not to, but OP has already admitted they miss out on a lot of leisure time, social life etc.

                      • +1 vote

                        @Jaystea: Thanks! People who don't even know anything about my field are commenting how should I not work that much but it is pretty common.

                  • +3 votes

                    @Karansingh: It's almost impossible to work that many hours without breaching EBA and OHS rules. Something smells sus.

                    source: im a shift worker in healthcare too.

                    •  

                      @MintBerryCrunch: Two jobs as mentioned above multiple times. According to the EBA you can do max of 100 hours in a facility.

                      • +1 vote

                        @Karansingh: But not consecutively. Eg if you do a double the next day has to be off. It's very very hard to average 80 hours a week consistently.

                        Unless you are moonlighting on bank nursing jobs with a different employer.

                        Or onlyfans.

                        •  

                          @MintBerryCrunch: Nope not on my work. ANMF is aware of that but they have no problem with that. They did suggest me to cut the hours down a bit. They even mentioned some nurses are doing 12 hours shifts 6 days a week. You do the maths!

        •  

          It'll have to be more than $170K that since they have to eat and sleep somewhere too!

          • +1 vote

            @bobbified: They side husslin XD

            @pegaxs I am with you, name the hospital so I can AVOID AVOID AVOID.

            • +2 votes

              @Xistn:

              I am with you, name the hospital so I can AVOID AVOID AVOID.

              💯💯💯

              First of all, when someone is working 80+ hours a week just for the sake of money when they already have an excess in savings, it speaks volumes about the OP's lack of care for themselves. All they care about is money above their own health.

              If they don't care for their own health by being worn down working so many hours and working two jobs day in day out in order to make bank, how will they have the energy and mental acuity to look after their patients that they are ultimately responsible for???

              OP is claiming they are in a managerial position when they are only 26 years old. GTFO! Total BS. How many years have you worked as an RN?

      • +2 votes

        not suggesting you are lieing, But a lot of people do actually tend to lie about that sort of thing. They seem to get some pleasure in having people think they earn or save huge amounts of money. Add in a lot of people that do earn that sort of money would never post about it on a public forum.

        •  

          The day I have found Ozbargain, I have learnt alot from here and also from Reddit etc. So just wanted to know what people think.

    • +4 votes

      If they are each on $160k, take home pay is $112.5k.
      In such a case they have a combined $2k to live off each month…. and an extra $1k to splurge once a year.

      You're on a high marginal tax rate, perhaps consider a mix of property but I'd still regularly put money into ETFs