Ideas to Better "Invest" Money for ~30y+ Plan

ratoloko on 19/05/2025 - 18:15

For what it is worth it, I do understand that I shouldn't be seeking finance advice here, yet, folks' experience will be more closer to reality than laws and theories based on my middle 30s age.
I also understand that what works for you might not work for me and vice versa, I will read everything with a grain of salt

With that out of the way, let me start.
My current situation:

  1. ETF: I had around $40k with CommSec which I took it all out to buy a brand new Suzuki Jimny XL manual "in cash"
    Why???
    I needed a car but not a loan, Jimny is cheap maintenance which I can DIY like my motorcycle and 5y warranty, something I wouldn't get with second hand.
    Anything else is easily 100k and built to break, plus the loan and theft (auto + keyless).
    I am glad I did what I did because the next day the stock market went to shit and still there.
    I am trying to slowly get back but things aren't pretty so not my focus right now.
    Yeah yeah, buy when it is low, I know, but there is way too many uncertainty and eve tho I am aiming for plus 30y, I don't wanna get screwed right at the start haha

  2. ING: I have their maximizer saving account at 5.40% p.a. up to $100k
    This is what started this whole thing, once I reach $100k, the interest rate will be no more.
    The 5.40% p.a. is only valid if you used the debit card 5x and the saving account increases by at least $1k monthly
    One solution would be opening an account with another banks that offers the same.
    I could in theory keep this going with 3 banks so $3k at 5.40% p.a. monthly across different banks (?????)

  3. I have not thought about doing side quest, money is important but I also wanna live haha

  4. I have no loan, no debit, no credit card. Debit card only for bills/online shopping, cash all the way.

  5. House: I don't think house is investment and I know that many will disagree, that is perfectly fine.
    I rent a $800 a week unit which isn't much better than all the hidden costs of owning a house.
    Yes, I am looking into a cheaper place far away from the city, IT does not need office and AI is taking everything away anyway haha
    Also, I don't wanna spend the next 30y of my life guessing when the interest rate is gonna catch me and lose everything I paid coz I cannot pay any longer.
    If I ever change my mind, will be when I can give a good amount as start and have a very small loan.
    But again, by then the housing price will be even higher so chicken vs egg problem, so why it is not my priority and I don't think it ever will.
    That is also where Jimny comes to play, motorcycle only make things harder as further away you go from the city.
    No less important houses here are built like f, I would rather buy a piece of land and slowly get things going than buying a built house full of Chinesium workarounds.

  6. I can make some cuts to increase my savings like stop ordering Doordash haha and cook more but that opens another pandora box.
    Supermarket aren't cheap either, I can buy a decent $17-20 meal for me.
    What that will get you at the supermarket?? Fake meat that becomes gray in the fridge?? Frozen stuff??
    I have been buying meat from farms, not the cheapest solution but at least I am eating real meat.

I am pretty good with saving and have a decent and humble lifestyle without wasting money with nonsense, so I guess find a solution that makes my money make money that doesn't involve ETF for now and neither illegal stuff of course haha

Thank you so much for any insight, I really appreciate it.

Financial Investment

Comments

  • DOGGYWOWWOW on 19/05/2025 - 18:31
    +2

    ETF: I had around $40k with CommSec which I took it all out to buy a brand new Suzuki Jimny XL manual "in cash"

    Interesting

    • ratoloko on 19/05/2025 - 18:45
      +2

      Interesting

      Indeed haha
      I have done within 2 months what I didn't do within years, Easter 10 days long weekend was one of the holidays I enjoyed the most.
      Also Trumps tariffs were already taking effect, I would have lost what I had "earned" and more plus, I needed a car so I would need to wait another year or so if not more to have the money "back", It is one of the few things in life I have zero regrets.

      • MS Paint on 19/05/2025 - 18:46
        +1

        @mapax would agree with your decision.

        • ratoloko on 19/05/2025 - 19:40
          +1

          To your credit, many will say that was a terrible decision haha
          But for me not having to pay monthly car loan matter.

          I understand that a car depreciation is like half its price once you signed the contract, I got that specific car and model for a reason, nope, I am not one of those people that replace car every 5 years. I bought this Jimny as a car for life believe it or not.

          • mapax on 19/05/2025 - 19:58
            +2

            @ratoloko: You did the right thing.
            But did you get the itasha inspired decals yet?

            • MS Paint on 19/05/2025 - 20:09
              +2

              @mapax: And have you found an old school Asian girlfriend to go in it?

              • mapax on 20/05/2025 - 10:18

                @MS Paint: I missed that thread, I hope OP has met someone nice.

                I used to know a few, problem was that a lot of the time their family were racist and didn’t want their grandchildren to be mixed race.

  • SBOB on 19/05/2025 - 18:37
    +3

    Ideas to Better "Invest" Money

    No idea on your salary and therefore tax benefits /timelines etc.

    Personally , in order.

    -Maximise (or increase as much as you can without impacting your post tax requirements) super contribution up to concessional contribution limit each year. You have ages to go so super should be in your chosen high growth/index tracking type investment choice.

    -Save emergency fund in HISA to a level you think is suitable

    -Determine an achievable weekly/monthly post tax investment amount and DCA into a diversified index fund (eg dhf/vdhg for zero thought/effort). Buying via someone like CMC market will result in $0 brokerage, similar $0 cost auto invest options via Vanguard or similar. Do this every week/fortnightly/month/whatever based on a suitable period and your investment amount.

    • ratoloko on 19/05/2025 - 18:58

      You have ages to go so super should be in your chosen high growth/index tracking type investment choice.

      I just checked Hostplus and it is set as Balanced.
      I will have a look on this.

      Save emergency fund in HISA to a level you think is suitable

      Right now I have that with ING Maximizer at 5.40% p.a. but it only goes up to $100k
      So I would need to find other banks that do the same and keep the mandatory $1k monthly deposit, once it has reached $100k, it drops to 0.05% or something.

      Determine an achievable weekly/monthly post tax investment amount and DCA into a diversified index fund (eg dhf/vdhg for zero thought/effort). Buying via someone like CMC market will result in $0 brokerage, similar $0 cost auto invest options via Vanguard or similar. Do this every week/fortnightly/month/whatever based on a suitable period and your investment amount

      I had VDHG before, I was buying $1-2k monthly, that was a pace I was comfortable with.
      Understood.

      Thank you so much

      • SBOB on 19/05/2025 - 19:06
        +1

        I just checked Hostplus and it is set as Balanced.
        I will have a look on this.

        I'd likely look at moving to their lower cost index fund options at whatever ratio your research may prefer (eg 70% international, 30% Australian).

        but it only goes up to $100k

        Unless you saving for a property, and with a heap of working years ahead, I'd likely be less worried about saving cash beyond that limit and investing in options more likely to exceed inflation/higher long term growth

        I had VDHG before, I was buying $1-2k monthly, that was a pace I was comfortable with.

        Perfectly good set and forget option. Compounded over multiple decades and this is going to end up as a sizeable $ value

        (These are all lessons I'd wish I had learned earlier in my life :) )

        • ratoloko on 19/05/2025 - 19:21

          I'd likely look at moving to their lower cost index

          That would be moving from 1.02% pa to 0.04% pa with Indexed Balanced: https://hostplus.com.au/members/our-products-and-services/in…

          Unless you saving for a property, and with a heap of working years ahead, I'd likely be less worried about saving cash beyond that limit and investing in options more likely to exceed inflation/higher long term growth

          ETFs is the only thing I can think then which I am fine with.

          Thank you so much for "showing me" how to look into things differently.

  • Hugh G Rection on 19/05/2025 - 18:42
    +2

    you are still young, i would go super aggressive. then when you hit it big start diversifying into less risky stuff.

    • ratoloko on 19/05/2025 - 19:22

      For some reason I keep thinking that middle 30s I am already too late lmao

      • Hugh G Rection on 20/05/2025 - 07:35
        +1

        nope you still have time to recover. middle i would say would be late 40's / early 50's.

  • onetwothreefour on 19/05/2025 - 18:51
    +3

    the stock market went to shit and still there

    Not really true

    • ratoloko on 19/05/2025 - 19:07
      -1

      Not really true

      I am not any specialist or understand this whole thing 100%, but before Trumps tariff, everything was fine, then "everything" sank.

      Things are still trying to catch up to where they were before so good time to buy but American automotive companies ditching the US, other brands moving outside the US because everything is made in China, Japanese brands like Nintendo is not even selling the new console there.

      I am not even getting into the US ally ditching them, with a lot of luck the American Dollar will keep its status of currency for trade by the end of the year, while countries are using their own currency.

      These are the few things I know and you can cross check online, so yes, things are still in shit mode.

      • onetwothreefour on 19/05/2025 - 19:16
        +1

        What were you invested in? VAS which I think is the most popular ETF in Australia is up 1.77% YTD.

        • ratoloko on 19/05/2025 - 19:25

          VHY, VDHG, CSL, A200.
          I know the first ones cover CSL, it doesn't pay dividend but it was a nice ride.

    • AustriaBargain on 20/05/2025 - 00:21
      +1

      And even if it was, it's a good time to buy then if you're young and will cash out when you're much older.

  • simplystu on 19/05/2025 - 19:21

    @OP … when you say "buying meat from the farms" …

    Are you talking like "farmer to fridge" where you can buy half cow (or cuts) … But again you have to cook it yourself (doordash won't do that for you).

    But then … The meat that you say is real (opposed to fake from supermarkets as you say) … Mostly still comes from same farms - just passed through many many more hands (hence markup in price).

    As to rest of you OP … I honestly can't imagine paying $800/week in rent … I have a house mortgage - and pay $700/fortnight (and have $$$ to enjoy life abit).

    To be able to afford $800/week rent + food + still be able to do what you suggest … Must be earning a nice $$$ salary.

    • ratoloko on 19/05/2025 - 19:33

      Are you talking like "farmer to fridge" where you can buy half cow (or cuts) … But again you have to cook it yourself (doordash won't do that for you).
      But then … The meat that you say is real (opposed to fake from supermarkets as you say) … Mostly still comes from same farms - just passed through many many more hands (hence markup in price).

      I was buying from OurCow, the meat taste nice even after frozen/defrosted while supermarket one taste garbage ( personal opinion here ) after you freeze everything.
      Their salmon, I have never seen such dark colou indicating wild salmon, while at the supermarket it is as pink as it gets so heavily feed artificial stuff.

      As to rest of you OP … I honestly can't imagine paying $800/week in rent … I have a house mortgage - and pay $700/fortnight (and have $$$ to enjoy life abit).
      To be able to afford $800/week rent + food + still be able to do what you suggest … Must be earning a nice $$$ salary.

      I am very good at not wasting money, before buying things "Am I buying coz I need or because I want it?"
      And single by choice for the last 1y after getting nothing from the 6y long term relationship I was in.

      • simplystu on 19/05/2025 - 19:45

        I'm probably 10 years older than you … So do have some wisdom I could instill.

        Heck I live alone in my 3 bedroom house (with a mortgage) … Getting down to final 4-6 years of it fully paid off.

        next door house - sold for $780,000+ just other month.

        Also earn between $100,000-$140,000 / year (depending on how much OT I do each week).

        Never invested in ETF's … Do have $6000~ in Bitcoin/etc.
        Just over $330,000 in super (when checked 2 months ago) …

        Not much cash flow in bank.
        Own car outright + CC's paid in full monthly.

      • simplystu on 19/05/2025 - 20:35
        +1

        Yet your car purchase says otherwise.
        Financially wasn't the best move (could go into more detail) but … Will let time do it's thing …

        Then you will understand.

      • simplystu on 19/05/2025 - 21:05

        So before … you talked about you were getting meals VIA doordash - now mentioning "ourcow".

        I'm getting lost in all this - starting to become - a mismash of thoughts.

        Since you mentioned "ourcow" … they don't specify EXACTLY which farm the meat comes from (just in their about page which of farms many they source from) …

        Supermarkets are even taking a proactive approach (the more expensive cuts +++ also starting to filter down to lower priced cuts) … have a QR code - so can track exactly which farm it came from +++ the slaughterhouse + exact butcher.

        over next few years - this idea will increase exponentially - as more farms get on board.

    • Protractor on 19/05/2025 - 19:33

      30 Years you say?
      Shares in uranium mining. I heard a whisper that all govt fleet cars will be powered by nukes in 2055, if the LIBs get back in govt by then.
      Or shares in USA Israeli weapons or middle east real estate developments.

      Or shares in any company that does budget & sustainable funeral services.

      Or shares in migrant advocacy services.

      Shares in counselling services for the victims when the current high office & billionaire US based advocates sell out in one big hit

      Maybe invest in Trad wife apps?
      /s

      • ratoloko on 19/05/2025 - 19:55
        +1

        I know nothing about that but uranium is not gonna be the solution, 100% sure on that.

        Scientists just managed to keep a plasma-based nuclear fusion stable for over 22 minutes.
        That is the real deal, accidents would be far less damaging if any serious damage and way higher energy output.
        The main barrier is to control the plasma, once they find a solid solution, adios uranium.

        The last plasma-based nuclear fusion test had been done by China this year, French a month later almost doubled the time.

        Uranium is so not it.

        • Protractor on 19/05/2025 - 19:57

          Maybe we can recycle all those plasma TVs still out there.?

          Uranium is so not it.

          The opposition will be heartbroken to hear such treasonous talk

      • JIMB0 on 19/05/2025 - 20:57

        Nuclear fusion is already in widespread use to generate electricity and heat. It is much safer and more cost effective than nuclear fission.

        • Protractor on 19/05/2025 - 21:10

          Tell the morons selling nuclear. ( aka The Nationals) . There they, are still happily living in the 1950's, dining at the Laminex table, eating greasy rissoles and over boiled dry grey veges, dripping in salt. Merrily drinking home made ginger beer from quaint multi coloured glasses.A photo portrait of a radiant Queen Elizabeth II (circa 1953) gazing wistfully upon their redundant arses.

        • pscac001 on 20/05/2025 - 10:48
          +1

          Can you provide a link to some examples? Last I heard a few fusion experiments had managed to get out slightly more energy (in the form of heat) than they put in, but it was a long way from actually being useful for anything beyond research. I don't think anyone has managed to get out more electricity than they put in.

  • AustriaBargain on 19/05/2025 - 19:38
    +3

    Buy a hotdog stand. And use the profits to buy more hotdog stands. By the time you retire you'll have a fleet of hotdog stands earning you millions.

    • ratoloko on 19/05/2025 - 19:42

      The best advise so far hahaha

    • SBOB on 19/05/2025 - 19:45
      +3

      Buy a hotdog stand

      Terrible idea.
      Everyone knows there is always money in the banana stand.

      • Protractor on 19/05/2025 - 19:55

        An Only Flans cart.

  • SYLTB on 19/05/2025 - 20:01
    +1

    Goodness me! What a messy post. Here a messy summary, too. First thing is first:
    As a general statement: There is a very significant (p<0,001) linear correlation between numeracy and literacy skills.
    $40K cash has gone to Jim (enjoy manual driving).
    Rent: $800 pw rent, more than $3200 pm, more than $41600 p/year.
    Meals: 3x20=$60/day $420 pw, $1800 pm, $21900 p/year.
    Elect, gas, petrol etc undefined/not given expenses.
    Can't keep going with ING because of its conditions.
    You do not want to buy a house. OK.
    $1K for each of 3 banks. ($3K pm, $36K p/year)
    Before thinking of any investment options, improve your literacy (it is not grammar, but more than understanding i.e. comprehension) and numeracy (not just basic maths, but conversion the numbers into comprehensible words in the brain e.g. 3x$20=$60/day=> three times twenty dollars makes sixty dollars per day, just for meals) skills.

    • Protractor on 19/05/2025 - 20:13

      Rrrrooarrwww
      Why am I imagining a chastised Bart Simpson scrawling something about bad comprehension, on a blackboard?

    • simplystu on 19/05/2025 - 20:14
      +2

      The numbers just don't add up.
      Think OP is "fudging" afew numbers there.

      OP's opinion on meat - certainly showed (to those in the industry) - he doesn't have a firm grasp as what he talks about.

      Then what other things has he "fudged" on ???
      Just saying !

      • Protractor on 19/05/2025 - 20:36

        OP is also a feminist.

  • Drakesy on 19/05/2025 - 20:53
    +5

    Anything else is easily 100k and built to break, plus the loan and theft (auto + keyless).

    There's only 2 types of car in this world? a Jimny and $100k+?
    Sounds like your hands were tied.

    I'd look at ETF's if you're not going for a house. VAS,VDHG and IVV are my go to. In the long run the share market will outperform housing.

    If you're looking to buy, keep your deposit in the bank and everything above say 20% goes into ETF's.

    Mind you, i'm struggling to take you seriously based on your language, it's peak millenial and makes me want to throw my computer at the wall.

    • ratoloko on 19/05/2025 - 21:24
      -1

      There's only 2 types of car in this world? a Jimny and $100k+?

      There is no better option IHMO for $40k, and I am not getting into Chinese cars or even worse, EV.
      Like I said, it is personal preference, it has simple mechanic, simple everything, easy to DIY as I am used to with my 2013 motorcycle, mechanic 4WD and not buttons to activate it. It is 2025 but still simple like the 90s

      You must use the standard key, it is not like all the new keyless fob cars everywhere that can be stolen via its headlight (Toyotas) or break into to connect to its OBD port and your car is now mine or even remotely using devices to pick the key signal from within your home (BMW and others). You cannot even get insurance for Land Rover in the UK haha

      If everything I just said is not bad enough, teens here can take your car and cops won't do shit.
      The vast majority cars they are breaking into are "new, auto and keyless".

      Don't take my word, you can easily check everything I just said above online.

      And a second hand car that doesn't have hidden problems is a lottery, so again, those were my reasons and I don't want you to agree with me, I am perfectly fine with that.

      • Drakesy on 19/05/2025 - 23:18
        +3

        A new car is a want, not a need everytime

        And one of the poorest financial decisions (outside of financing one) you can make.

        I drove a secondhand kia portage for 5 years from 280,000k's until 310,000k's. Depreciated a whole $100 over that period, zero issues.

        • ratoloko on 20/05/2025 - 18:38

          Car is not investment, I didn't buy it thinking like so.

          Yes, I needed and I have been enjoying my simple humble life better than just my motorcycle which cannot really be used for all the occasions.
          Within 2 months I have done more than years ( places, distances, short travels)

          I don't wanna you to agree but second hand car is pineapple, you might get luck or you might get screwed even after a mechanic reviewed coz there were hidden problems.

      • Muppet Detector on 20/05/2025 - 19:10

        One of the greatest things to help prevent having your car stolen is to use a steering wheel lock. Mine is called a club. I have probably had it for thirty years.

        It is this huge thick red chunk of metal that you have to remove before you can drive the car. One end connects to your pedals, the other to your steering wheel).

        When the miscreants are looking to steal a car, if they see that thing (and you really can't miss it), they will give your car a miss because there is no getting that thing off in a hurry.

        Easier for them to give your car a miss and look for another car to steal.

        • ratoloko on 20/05/2025 - 19:16

          to help prevent having your car stolen is to use a steering wheel lock

          I don't think about it coz if somebody wants, they will take your car in one way or another.

          I do have comprehensive insurance but what really gives me peace of mind is not just it being manual, but it requires the key just like 90s/2000s, and always inside. I would never move to a place where my car stays on the road.

          Unless you can hotwire a car, you will need a towing truck.
          New cars are worse, keyless fob which the key signal is easy to clone and drive it away, look online on YT.

          • Muppet Detector on 20/05/2025 - 19:42

            @ratoloko: Insurance is absolutely awesome but if someone steals your car, it will be unlikely insurance will pay total cost of replacement (cos cars usually depreciate) BUT, more than anything, it is the damned inconvenience of losing the car and going through all the rigmarole of claiming and replacing.

            The steering wheel locks were about $80 a few years ago, so for one extra level of protection and a few extra seconds, that seems like a smart thing to do imo.

            • ratoloko on 20/05/2025 - 19:50
              +1

              @Muppet Detector: I always pay agreed value and they agreed to pay back what I pay instead of market value, I never get market value.

              The only thing I will get someday is a kill switch, your call will go nowhere without activating it, it cost nothing, you just need to find a trustworthy auto electrician.

          • JIMB0 on 21/05/2025 - 08:54

            @ratoloko: Don't be lulled into a false sense of security. Plenty of manual and key start cars get stolen. They have a tool that can pick the lock in seconds, failing that they'll just smash/cut it off.

        • JIMB0 on 21/05/2025 - 08:51

          The steering wheel is easy to cut though. The crims have battery grinders and saws now. They'll have it off in a minute.

          But you're right, they'll most likely move onto an easier target, unless of course you have a desirable car (ie. HSV or V8 Commodore).

  • Protractor on 19/05/2025 - 20:57

    Last sentence. LOL

  • Muppet Detector on 19/05/2025 - 21:53
    +2

    Also, I don't wanna spend the next 30y of my life guessing when the interest rate is gonna catch me and lose everything I paid coz I cannot pay any longer.

    This quote was in relation to you purchasing a place to live.

    Just say you do get a home loan, pay it off for 15 years and then "lose everything" because you can't make the repayments…

    By renting, you're paying $x amount every week and you're guaranteed to never own it.

    By buying, even if you do lose it one day, you will have had to pay rent to live somewhere and you never get your rent back. At least if you try to buy you have a chance of owning somewhere to live eventually.

    Renting is great. There are many advantages. But I reckon it'd be a PIA having to keep moving house after you're 70 or so.

    • ratoloko on 20/05/2025 - 18:17

      Just say you do get a home loan, pay it off for 15 years and then "lose everything" because you can't make the repayments…
      By renting, you're paying $x amount every week and you're guaranteed to never own it.
      By buying, even if you do lose it one day, you will have had to pay rent to live somewhere and you never get your rent back. At least if you try to buy you have a chance of owning somewhere to live eventually.

      This is 100% conflicting.

      By renting it, sure, you own nothing but you have a place to live while saving money.

      By buying it, sure, you own it but we cannot control the future so you spent 15 years paying a money that is long gone coz the gov decided to fk you, so now you are back renting and lost hundreds of thousands of dollars

      • Muppet Detector on 20/05/2025 - 19:01
        +1

        But you would have spent those hundreds of thousands of dollars renting wherever else you were living. The only difference is that when you rent you are paying off someone else's mortgage. When you are paying the mortgage it's like paying rent to yourself => you are paying off your own asset.

        You have to pay to live somewhere.
        If you pay to rent, you will never get any of that money back and will definitely not have anything to show for it, but your landlord might because you have been paying off his property for him.

        If you rent off yourself (ie pay a mortgage), sure you might lose all that money (but you would have lost it psying rent to someone else anyway), but you are also in with a shot of owning it outright one day.

        RENTING:
        => pay $500 a week off someone else's mortgage.
        => save $200 a week towards your future house.
        => costing you $700 a week to live somewhere, but only $200 of that is going towards you. That $500 is dead money. You are never getting that money back. You are giving someone else $500 to put towards their mortgage instead of your own.

        BUYING
        => pay entire $700 a week towards your own mortgage instead of helping someone else to pay off theirs.
        => you at least have a chance of owning something after spending $700 a week for 30 years.
        => if borrowing, either commit to fixed rate interest or for variable rates, allow for a 5% interest rate rise and pretend that is your repayment rate. Would be a very rare occasion where interest rates will rise more than 5% unexpectedly.
        => could split your loan and put some at fixed rate and some at variable rate.
        => sometimes people choose to only pay the interest off their loan (no principle) and count on the property price appreciating.
        => the important thing to remember is that just because the bank will loan you $500,000, it doesn't mean you have to borrow that much. Just borrow enough to allow for comfortable repayment.
        => also, you can often refinance loans as your circumstances change, especially if you have been paying them for a while and have equity in the property.

        => if you manage to hold onto your property for 10 or more years, if you ended up needing to sell, you would have paid off a chunk of your loan and most properties would also appreciate in that time, so you would likely get some of the money back that you had spent on living there iykwim.

        You cannot predict future rental rates either. If your landlord has a mortgage and he incurs an interest rate rise, he will be doing his best to pass that extra cost onto the tenant via rental increase.

        But you have to do what you feel comfortable with but I would prefer to contribute towards my own mortgage instead of someone else's.

        • ratoloko on 20/05/2025 - 19:10
          +1

          I will need to have a chat with my accounting guy to over this stuff.
          Fixed rate is good, remember when the interest went up and fk everybody with variable rate.

          the important thing to remember is that just because the bank will loan you $500,000, it doesn't mean you have to borrow that much. Just borrow enough to allow for comfortable repayment.

          Assuming you found a $600k house, you must borrow the 600k or are you saying you could borrow $300k, pay it all, then hope you can borrow another $300k.

          • Muppet Detector on 20/05/2025 - 19:33

            @ratoloko: Excellent! Get proper advice off a professional who is qualified to advise you.

            Fixed rate is good, but it is often a bit higher than current variable rate and if interest rates fall, you are locked in at the higher rate.

            At one time, interest rates were 17%!

            In 1994, variable interest rates were about 8.75% but expected to rise very soon. I wanted to borrow $150,000. So I locked in $100,000 at 9% for five years and left the other $50,000 on variable.

            Interest rates rose to about 12 or 13%. So I had that big chunk locked in at 9% and was only uncertain of the smaller amount.

            Assuming you found a $600k house, you must borrow the 600k or are you saying you could borrow $300k, pay it all, then hope you can borrow another $300k.

            Generally speaking, you need a minimum of 20% deposit.

            So for $600,000 home, need minimum $120k of your own money at a minimum.

            This means you need to get $480k from somewhere else BUT only borrow that much if you can comfortably afford the repayments. If you can't afford the repayments, you either need a cheaper property or a bigger deposit.

            If the house costs $600,000 you will have to have all that money from somewhere at time of purchase. You can't borrow $300,000 now and $300,000 in two years time.

            When talking to your accountant or financial advisor, ask about balloon payments. I think that is what your example might be. I don't know if they do that anymore because it is very risky and a whole bunch of people got into trouble about 2008 for that sort of thing and banks were getting sued left right and centre for irresponsible lending or something.

  • 0FoxGiven on 19/05/2025 - 23:59
    +1

    If I were you:
    * I would not park more than 30k in HISA (unless savings for a home deposit)
    * I would contribute more into super, within the concessional contribution limit
    * I would set up a no fee auto investment plan in choice Vanguard funds (about 2k per month)
    * Cut out doordash prep expenses completely except for occasions when I feel too lazy (say once a fortnight).
    * Get into the housing market asap (I did so after renting for three years and I can't even imagine renting again)
    * Don't risk crypto investments unless you are buying into the big ones (eg: BTC / ETH) and HOD. Or if you are monitoring the market, make informed choices and get out before you get hit by crypto winter.

    Selling your holdings and buying a car outright might not be the best financial decision but if that's something that makes you happy then I wouldn't say you made a bad choice.

    Dunno which ETFs you invested and since when but I only really started 2 years ago as I was putting everything into clearing my home loan in 5 years so didn't invest much elsewhere (not something I would recommend but fortunately it worked out really well for me). Things tanked after the antics of Mr.Orange but it was back up within 2-3 weeks and still currently waaaaay ahead of what I would have had if I parked that money in HISA.

    • ratoloko on 20/05/2025 - 18:33

      I would contribute more into super, within the concessional contribution limit

      This is something I never thought about.
      My accounting guy suggested me to ask the company to pay more for my super taking from my own salary coz I almost hit the next tax slot, which I would need to pay $3k or something along those lines.

      I would set up a no fee auto investment plan in choice Vanguard funds (about 2k per month)

      That is doable and better than paying brokerage fee here and there.
      I will look into it so see what sup.

      Get into the housing market asap (I did so after renting for three years and I can't even imagine renting again)

      I did a quick search and buying a house without 20% of its value means paying LMI (Lenders Mortgage Insurance).
      LMI is a lost money while 20% is part of the paid mortgage, so buying a house ASAP even if I changed my mind, right now that is not possible.
      Assuming I found a $600k house which does not exist, LMI would be around $15k lost while 20% would be $120k paid mortgage which If I push hard, I can save "quickly"

      Don't risk crypto

      Never!

      Selling your holdings and buying a car outright might not be the best financial decision but if that's something that makes you happy then I wouldn't say you made a bad choice

      Car is not investment and I needed it, I only have motorcycle and since I got the car, I have been enjoying my simple humble life way more.
      I do not regret, and I did not buy it to replace it 5y from now, I will drive it as long as its screws stays together haha

      I was putting everything into clearing my home loan in 5 years so didn't invest much elsewhere (not something I would recommend but fortunately it worked out really well for me).

      That is one thing I would do also, if I have to eat tuna and bread but have my mortgage fully paid within 5y, f yeah.
      Of course, I am assuming you have emergency money saved in case you are fired and etc.

      Thanks a lot for sharing your pov.

      • SBOB on 20/05/2025 - 20:26

        coz I almost hit the next tax slot, which I would need to pay $3k or something

        That's not how progressive tax bands work :/

  • cashless on 20/05/2025 - 00:13
    +2

    "Invest" Money for ~30y+
    I had around $40k to buy a brand new Suzuki Jimny XL

    Hmm. I sense a slight conflict of interest here

  • ForkSnorter on 20/05/2025 - 06:25

    It’s sad that we have to spend our lives making 30-year plans just to outpace most of society in the wealth-accumulation race, all for the chance to retire comfortably. The truth is, most people still won’t earn enough to retire well — even though, in theory, our society now has near-unlimited wealth thanks to technology, AI, and scientific and industrial advances.

    • onetwothreefour on 20/05/2025 - 09:55

      Why not? Someone on minimum wage will pay approx $450 a month into their super. Doing that for 40 years will compound into a nice balance for retirement. That's assuming they never get a payrise or make any extra contributions.

      • ForkSnorter on 20/05/2025 - 10:08
        -1

        That assumes they have work constantly for 40 years. Unlikely with the rise of AI.

        Even assuming they do have constant employment, after 40 years they'll have $1.08 million in super (assuming an average annual return of 8%, but after taxes and fees, that is more likely 6% or 7%; I did the calculation with 7% annual return).

        However, adjusting for inflation (assuming 3%), that $1.08 million in 40 years time would be worth $330,000 in today's money.

        Also worth mentioning that housing costs are rising much faster than inflation, so who knows how much rent/house prices will be in the future.

  • NanoDuke on 20/05/2025 - 08:59
    +2

    Is having multiple savings accounts your retirement plan? You seem to already be pre-empting the "problem" of going over $100k in your first account. How much time will it take you to save up $100k to be worrying about a second (or third lol) bank account?
    Have you done projections of what your initial $40k would be worth in 30 years time? Even if you pay nothing further into it?

  • Marrk on 20/05/2025 - 09:48
    +1

    1 I am personally investing in DHHF (ETF) whilst saving for a home deposit. ETF's like VDHG/DHHF are relatively set and forget/are long term ETF's. When the market goes down, you ideally purchase more, you don't worry as you only lose money if you sell/these are intended for 7+ year investments.

    The Jimny was not an investment - whilst you can come up with reasons to justify the purchase to yourself, it sounds like you are starting back at square one with investing. Not having a go, though going from an investment to a new vehicle that loses value as soon as you drive off the lot are two very different things. You ideally want to stick to your investments and not withdraw this money to use elsewhere. Perhaps reconsider how much you are investing each pay, compared to how much you are saving for future expenses.

    2 Higher interest rates are obviously good, though I'm not playing the whole chasing the highest interest rate game. There is nothing wrong with this if you have the time - I just stick with UP Bank.

    5 I am personally saving for a home for my family, not seeing it as an investment. I don't have much interest in owning investment properties that are rented out and don't have the aim of purchasing a home in the hopes it goes up significantly in value. Renting in retirement is something to consider early though, and how you can better set yourself up for this, with rent increasing on a likely fixed income. Also, capital tied up in a house can work more favourably than money in the bank/investments, as far as the pension is concerned.

    Podcasts with online communities, that you could check out:
    Money Money Money
    She's on the Money

    • ratoloko on 20/05/2025 - 18:48

      The Jimny was not an investment

      It never was and I have no regrets about it.

      it sounds like you are starting back at square one with investing.

      Yes and no. Sure, 40k is gone which I took around 5-6y IIRC to put together.
      I was also within a relationship which I was having more expenses coz I was paying for everything anyway and more coz now you have two mouths to feed.

      I am personally saving for a home for my family,

      Like I replied to another comment, even if I change my mind about house from what I saw online, I need at least 20% of the property value as payment, otherwise, I must pay LMI.
      Assuming we are talking about a $600k house, LMI is around $15k which is a lost money, gone, while the 20% counts as mortgage payment.

      I wouldn't buy a house without this 20% so IF I change my mind, I have a little more to go.

  • Some Guy on 20/05/2025 - 10:13
    +1

    Max out super contributions.
    Stop paying someone else's mortgage. Get a home to live in. Pump as much as you can into the mortgage.
    Then pump as much as you can into super, ETFs and shares.

    • ratoloko on 20/05/2025 - 18:50

      Max out super contributions.

      Yeah, this is one thing I never thought about before.

      Stop paying someone else's mortgage. Get a home to live in. Pump as much as you can into the mortgage.

      I mean, assuming I wanna buy a house now, I must have 20% to avoid LMI so that will take some time.

  • 2esc on 20/05/2025 - 17:37
    +2

    $800 a week rent for a unit i know is common but still shocks me i would financial go broke very quickly.

    I miss out on a lot of things where i live in rural Victoria but $280 a week home loan repayments definitely reduces my stress levels.

    • ratoloko on 20/05/2025 - 18:53

      $800 a week rent for a unit i know is common but still shocks me i would financial go broke very quickly.
      I miss out on a lot of things where i live in rural Victoria but $280 a week home loan repayments definitely reduces my stress levels.

      I have been looking for other places and move away from Sydney, this is an old plan but now that I am looking into my finance stuff closer, I making things happen.
      $800 is the new normal now so yeah \o/ you can still find cheaper place which is what I am looking atm.

  • SlickMick on 21/05/2025 - 16:06

    CGT is the killer of investments. The solutions are PPOR and super. The only other worthwhile investment until you've maxed those out is leveraging investments and negative gearing to reduce income tax. (But be warned, when you get close to retirement, you're going to wish those investments were in super.)

    • ratoloko on 21/05/2025 - 16:16

      I hear you, but super isn't safe either. Folks with more than 3M ( I wished I had 1M haha ) just got screwed over having to pay more taxes due the laws change.

      • SlickMick on 22/05/2025 - 08:15

        Until you have a $3M problem, it's safe.

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