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Investing for FI can be kept incredibly simple. Best to do your own reading and research to draw your own conclusions. The conclusions you come to will most likely be either "bulk buy Vanguard ETFs every so often" or "open a Vanguard managed fund and make weekly deposits". There's no rush though, do some reading yourself, come back if you get confused or if you need Australia-specific info. When you know what you're doing you can look into your super as well, in terms of how it is invested and what fees you are being charged.
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May 18, 2016 02:23
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Sgt67 posted:Just in terms of investing: Who do I talk to about that? Can I do it myself or do I need to talk to a stock broker or...? Is there any institution I should trust over another, for example? Sorry I have no idea on the terms or processes for doing such a thing, never done it before. The main reason my money sits in a pile doing nothing. That's the basics of how to invest. Now go read some stuff about what to invest in.
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May 18, 2016 05:23
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Cool thanks for your help guys, I didn't even know Vanguard was the name of the company, so that give you a fair idea of where I'm at... Looks like they have an office location near me so I'll go have a chat with them and open up an account. Thanks again!
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May 18, 2016 23:39
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Really the super lazy but still effective retirement investment strategy is to just open a Vanguard account and toss all your investment money into one of their target retirement funds that lines up with your expected retirement date. Low fees, good asset splits, automatic rebalancing and risk shifting over time.
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May 19, 2016 19:22
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Is there a point to me switching to a riskier Vanguard? Was thinking of doing the stocks one cuz it seems like its 10% per year as opposed to the 3% one I currently have.
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Jun 13, 2016 23:58
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Kontradaz posted:Is there a point to me switching to a riskier Vanguard? Was thinking of doing the stocks one cuz it seems like its 10% per year as opposed to the 3% one I currently have. I'd suggest posting in the Long-Term Investing and Retirement Savings thread. You'll probably get better guidance there, plus it's a good place to learn about this stuff. I gather from your post you're a pretty novice investor (no shame in that!). Some info that would be helpful to know: -How old are you? -How much are you able to save each year? -Are your savings in a 401k and/or an IRA and/or a taxable brokerage account? -What fund(s) are you currently invested in? -What fund(s) do you mean by "the stocks one"?
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Jun 14, 2016 00:08
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pig slut lisa posted:I'd suggest posting in the Long-Term Investing and Retirement Savings thread. You'll probably get better guidance there, plus it's a good place to learn about this stuff. 22 Putting about 5k, matched 1:1, so 10K into 401k/year so far (just 401k) Im in: Vanguard Target Retirement 2060 Trust Plus "stocks" one: Vanguard REIT Index Fund
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Jun 14, 2016 00:32
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Kontradaz posted:22 You are young enough that using a riskier product should be fine, but you should consider that target retirement funds start out with a larger proportion of riskier investment assets. Given this is also the FI thread a suggestion more in-line with the thread is to keep your current 401k fund and matching. But then also increase your saving rate to invest in riskier funds (I know this is kind of tough when you're starting out).
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Jun 14, 2016 04:02
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Is there a similar Long-Term Investment/Retirement Savings thread tailored for Aussies? So far I've been chucking half my pay into savings accounts but I'm sure I could do a little better than that
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Jun 14, 2016 04:07
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Smiles posted:Is there a similar Long-Term Investment/Retirement Savings thread tailored for Aussies? So far I've been chucking half my pay into savings accounts but I'm sure I could do a little better than that Unfortunately no. However, Vanguard does exist in Australia (New Zealanders can only buy in via ASX trades as far as I'm aware). I do recommend reading The Four Pillars of Investing linked in the retirement savings thread which will equip you to make better investment decisions. It's still a pretty good price on the Kindle Store. You should look into the Aussie Superannuation (that you should be a part of). The Four Pillars would help you make decisions on funds although you want to look at low fees and Vanguard funds.
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Jun 14, 2016 04:11
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Kontradaz posted:22 REITs are not stocks, at least not in the way you traditionally think of them. They are Real Estate Investment Trusts, they are not common stock in a company. By investing in REITs you are investing in the real estate market, not in domestic equities. They are very different things, hence they very different trailing returns. REITs are usually considered to be quite volatile and risky compared to a broad-market equities index fund. A 2060 target date fund is going to still be in its aggressive phase and be at least 90% stocks. It looks like the current Vanguard 2060 fund is about 54% domestic equity and 36% international equity, in the form of VTSMX and VGTSX respectively.
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Jun 14, 2016 04:12
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I deal with REITs and there's a lot of risk relating to their return. You'd need to understand what you are investing in. I have some REITs that call me in to solve building compliance issues and problems can get expensive fast. Something as simple as a fire/storm or other event may cause losses or loss of capital value. As stated above don't invest more than 10% of your total portfolio. Be extra cautious if the REIT focuses on residential as that is extremely high risk in Australia at this time.
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Jun 14, 2016 04:40
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Kontradaz posted:22 I'd suggest taking an hour or two to read and digest the document linked in this post: GoGoGadgetChris posted:Seriously. The first 100 pages of Four Pillars covers things like the Venetian prestiti and how bond yields are calculated. It's really straightforward and does a great job explaining the basics.
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Jun 14, 2016 06:14
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Smiles posted:Is there a similar Long-Term Investment/Retirement Savings thread tailored for Aussies? So far I've been chucking half my pay into savings accounts but I'm sure I could do a little better than that Oh, yeah, you could be doing a lot better than the savings account (but good on you for that savings rate)! Look in to salary sacrifice contributions for your superannuation as one option.
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Jun 14, 2016 08:18
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Thanks guys, I've downloaded the book and will look into salary sacrificing extra super.
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Jun 15, 2016 08:59
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Hey, I'm US, 29yo that's seriously considering moving towards FI. Trouble is, I'm freelance and have really inconsistent income. Which is good, in a way, because I always anticipate making less annually than I actually do, but I also have stretches where I have no disposable income. Right now I've got about 20k in a Vanguard Roth IRA. I've been talking to people over in the Long Term Investing thread on how to push that into slightly riskier territory, though there's not a ton I can do on that front. My goal this year is to contribute the annual max to that, and set aside most or all of next year's contribution (that in itself will be a pretty ambitious goal) and cut down my monthly spending by as much as I can. I'm not sure what that will be, but I signed up for YNAB to try and get a clearer picture of where my money is going and what I can cut out entirely. Beyond that, is there anything else I should absolutely, totally be doing right this moment? I started reading old posts on MMM, starting at its inception, and a lot of it is pretty common-sense stuff so far. Is there any benefit in me investing in anything besides my IRA (assuming I can even save enough to do meet minimums on something else)? Edit: Oh, and I neglected to mention, I have no debt of any flavor, though my wife and I are saving up for a house downpayment. We already live in the house, through a series of complicated circumstances, but aren't under a huge time pressure to buy it. MockingQuantum fucked around with this message at 21:05 on Jul 16, 2016 |
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Jul 16, 2016 20:40
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Build your emergency fund. Then a 401k if you have that option. Then you can start saving towards a house or whatever.
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Jul 16, 2016 23:37
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TLG James posted:Build your emergency fund. I already have a significant emergency fund, being freelance has required that of me. I don't think I have access to a 401k, given that I'm not a full time employee anywhere, and not a business owner. One place I work offers a 403(b), but no contribution matching, and apparently the investment options aren't great, so the sole benefit to that would be pre-tax contributions.
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Jul 17, 2016 00:07
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Then do that, and invest in a taxable account.
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Jul 17, 2016 01:48
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You could probably do a solo 401k, not sure if you'd need to set up an LLC or something for that though.
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Jul 17, 2016 02:28
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Nail Rat posted:You could probably do a solo 401k, not sure if you'd need to set up an LLC or something for that though. It looks like I might be able to do that, yeah. It's something I'll look into, at least; It might end up being a better option than the 403(b).
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Jul 17, 2016 02:38
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Nail Rat posted:You could probably do a solo 401k, not sure if you'd need to set up an LLC or something for that though. Do this, if you don't employ anyone a solo 401k is almost certainly your best option
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Jul 17, 2016 04:04
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Underappreciated FI tool: ad blocking. If I were watching two hours of ads every day, who knows how much stupid crap I'd buy. Anybody got a progress update?
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Sep 16, 2016 03:43
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Mofabio posted:Underappreciated FI tool: ad blocking. If I were watching two hours of ads every day, who knows how much stupid crap I'd buy. No kidding. I don't use an ad blocker on my phone, and over the past couple months I've been getting lots of ads for a shirt company I had never heard of before. I've started to get occasional thoughts of "Oh, go check them out. Maybe you'll find something you like, and if not, no obligation to buy." Get out of my head!
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Sep 16, 2016 04:15
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I have an update, several months back I asked the thread for advice on what to do with the proceeds from a home sale. Invest or pay down the mortgage on my primary residence. Wife and I walked away from the sale with about $174k, and refinanced our 4.115% 30 year with about 330k owed, to a 15 year at 2.65%, and now owe about 160k. We knocked about $550/month off our note. Our rate lock was right after at Brexit, so we lucked out a bit. Pretty happy with the decision, we have two kids and would love to not have to worry about a mortgage if/when they enter college.
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Sep 16, 2016 19:32
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Mofabio posted:Underappreciated FI tool: ad blocking. If I were watching two hours of ads every day, who knows how much stupid crap I'd buy.  their datamining/stalking algorithms are too goodMofabio posted:Anybody got a progress update?
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Sep 16, 2016 20:02
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Mofabio posted:Anybody got a progress update? I've calculated that I'm at an 85% savings rate now, mostly due to having three roommates in my 4 bedroom townhouse. My bedroom and ensuite bathroom is on a different level than the other 3 bedrooms, so it's not all bad. Now if I can just stop spending money on bicycles, I'll be on easy street in about 5 years. Not FI, but I could probably seriously consider a career change, or part-time, or some combination of the two. I'm single now, but if I meet someone and end up planning to have kids, I just can't see myself having two full-time working parents with kids. I'd rather live in a tent in someone's backyard, if that's what it comes down to (Not really. Barn at a minimum). Rick Rickshaw fucked around with this message at 23:59 on Sep 16, 2016 |
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Sep 16, 2016 23:54
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Blinky2099 posted:Ever since facebook bypassed adblock on both my phone and PC, I keep getting urges I use ublock and ghostery and haven't gotten any facebook ads. Maybe try those?
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Sep 17, 2016 03:08
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El Mero Mero posted:I use ublock and ghostery and haven't gotten any facebook ads. Maybe try those? I use those as well, while we are on the derail, goon security experts also recommend https everywhere, disable flash, javascript (noscript or in browser) no 3rd party cookies and opt into no track, also change your dns from your isps, (i'd use this https://www.grc.com/dns/benchmark.htm) Googles dns bench is no longer supported.
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Sep 17, 2016 06:56
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galahan posted:I use those as well, while we are on the derail, goon security experts also recommend https everywhere, disable flash, javascript (noscript or in browser) no 3rd party cookies and opt into no track, also change your dns from your isps, (i'd use this https://www.grc.com/dns/benchmark.htm) You're the reason porn shops still exist.
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Sep 20, 2016 08:08
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Holy poo poo dnsbench.exe, what a loving flashback I love you old school fuckers never change a thing
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Sep 20, 2016 14:11
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I believe my savings rate is over 50% at the moment but I need my accountant to finish his work so I know where earnings really were in the last financial year. Unfortuately spending $70k on a retaining wall and 7k on a new bed and leather recliner it almost looks like I've gone backwards. I would have like to have invested the $70k but natural disasters happen, and I'd like to keep my land within my property boundaries. My savings are getting back on track but I'm getting the urge to buy new video mixing gear and a new camera.
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Sep 21, 2016 02:07
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Devian666 posted:My savings are getting back on track but I'm getting the urge to buy new video mixing gear and a new camera. Cameras are like the worst money hobby ever, there's always something new and super expensive to buy. 
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Sep 21, 2016 06:19
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MiddleOne posted:Cameras are like the worst money hobby ever, there's always something new and super expensive to buy. Yea I can't think of anything worse off hand. At least computers are fairly upgradable if you're really into high-end gaming or something. I guess you can buy new lenses with cameras, but for the most part you're stuck with what you got! I've been spending a lot on road cycling lately though. Fortunately I'm not insane about it and won't be upgrading all the time. But it can get crazy.
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Sep 21, 2016 10:41
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Mofabio posted:Anybody got a progress update? I got sick of my job (plus an injury) and we just live off our saturday side business now. Covers all our expenses plus can save very slowly (2k a month savings down from 10k a month). Might go back to work at some point, maybe change careers, lots of maybes. Just relishing the time off for now. Kid due in 5 months, shouldn't impact plans too much. Could even be that this is a permanent state of affairs if the business stays steady. Rick Rickshaw posted:Yea I can't think of anything worse off hand. At least computers are fairly upgradable if you're really into high-end gaming or something. I bought a souped up gaming rig before I left work only to find that I now have zero interest in gaming. Seems like it was just a work-stress outlet. Runs a sick chrome browser though. Chadzok fucked around with this message at 11:06 on Sep 21, 2016 |
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Sep 21, 2016 11:02
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MiddleOne posted:Cameras are like the worst money hobby ever, there's always something new and super expensive to buy. SCUBA diving is a really rough hobby for the wallet.
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Sep 21, 2016 11:03
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Rick Rickshaw posted:Yea I can't think of anything worse off hand. The answer is always horses.
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Sep 21, 2016 11:51
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You don't really get into horses so much as become one of those loving horses people.
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Sep 21, 2016 14:00
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I'm just over a year into my new job, and managed to stick to my budget below. At current rate with only raises = inflation, I should be able to retire at 50 with 60k a year of post tax 2016 dollars. Not as extreme as some here, but I more want to have flexibility than retire super early. I could probably easily cut a third to half of the essential and luxury categories, but I'm forcing myself to enjoy life now and not just be miserly. I tend to underrun a few hundred each month which I feed back into taxable investing. Rent $7,200 11% Essentials $6,713 10% Luxury $9,000 14% Retirement $29,225 46% Savings/Taxable Investing $2,240 3% Tax $9,622 15% Total $64,000
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Sep 21, 2016 14:43
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Xenoborg posted:I'm just over a year into my new job, and managed to stick to my budget below. At current rate with only raises = inflation, I should be able to retire at 50 with 60k a year of post tax 2016 dollars. Not as extreme as some here, but I more want to have flexibility than retire super early. I could probably easily cut a third to half of the essential and luxury categories, but I'm forcing myself to enjoy life now and not just be miserly. I tend to underrun a few hundred each month which I feed back into taxable investing. Where do you live? 
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Sep 21, 2016 15:10
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