4 December 2024

Can someone please explain the differences between the DHHF and VDHG ETFs in terms of their investment strategies, asset allocation, and suitability for long-term growth? Which one would be more appropriate for someone aiming for balanced growth with moderate risk? Thanks!

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7 December 2024

If you have purchased a residential property in an SMSF and you finally switch to pension phase, how do you value the fund balance for the purpose of minimum 4% drawdown. Do you use (a) purchase price, (b) 15x net rent (like a commercial property), (c) take valuation from the bank assessment with a desktop valuation (d) onthehouse/view/realestate/domain .com.au, (e) land value (from a rates notice) (f) purchase price inflated by CPI (which was how CGT was done up to the 90s) (g) something else? Significance is that rental yields of "investment grade" properties are probably more like 2-3%, but the potential sale price may be appreciating. Super pension phase requires a minimum 4% (increasing with age), so even if you owned enough property for the net rent to cover your desired retirement pension, it would be non-compliant if you used the optimistic valuations provided by, say, onthehouse.

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11 December 2024

I want to look at investing in bonds for my kids. Can I do this via pearler? How do I set this up to take advantage of the 10 year rule so neither of us has tax implications?

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16 December 2024

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

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5 December 2024

Hi all, I know these questions have been asked before, so apologies in advance for any repetition! - Joint brokerage accounts: For long-term investing (10+ years), should my wife and I each open separate brokerage accounts and split our investments 50/50? Would this reduce tax obligations in the future? Are there any downsides to doing this? - DHHF vs. VDHG: These two ETFs seem to come up a lot as beginner-friendly options. I’ve read that VDHG isn’t as tax efficient—does that make DHHF the better choice? Or is it more like choosing between Michael Jordan and LeBron James: both are great, so just pick one? - Dividend reinvestment: I understand DRPs are set up through Computershare or Link Market Services. Once I buy an ETF through Pearler, is it as simple as enabling auto reinvestment? Also, if the dividend is smaller than the cost of an ETF unit, do they issue fractional units, or how does that work? Thanks so much for your advice! 😊

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11 December 2024

What are the advantages/disadvantages of salary sacrificing into super and taking advantage of the tax benefit vs getting paid now?

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12 December 2024

We're a couple in our early 30s considering starting a family soon and are debating our housing strategy. We have $400K saved for a deposit on a potential inner-city Brisbane home, but the market seems overpriced. We're considering rentvesting instead. Should we buy an investment property now and rent a home, or continue searching for a PPOR in our desired area? What are the potential benefits and drawbacks of each approach?

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16 December 2024

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

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5 December 2024

Hi all, I know these questions have been asked before, so apologies in advance for any repetition! - Joint brokerage accounts: For long-term investing (10+ years), should my wife and I each open separate brokerage accounts and split our investments 50/50? Would this reduce tax obligations in the future? Are there any downsides to doing this? - DHHF vs. VDHG: These two ETFs seem to come up a lot as beginner-friendly options. I’ve read that VDHG isn’t as tax efficient—does that make DHHF the better choice? Or is it more like choosing between Michael Jordan and LeBron James: both are great, so just pick one? - Dividend reinvestment: I understand DRPs are set up through Computershare or Link Market Services. Once I buy an ETF through Pearler, is it as simple as enabling auto reinvestment? Also, if the dividend is smaller than the cost of an ETF unit, do they issue fractional units, or how does that work? Thanks so much for your advice! 😊

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5 December 2024

Someone told me that it might be possible to set up an SMSF that owns your PPOR, effectively renting your home from your SMSF. Also that then expenses like strata fees could somehow be deductible for the SMSF? Is this true? Or did I completely misinterpret what they said? If it’s true, where should I look to learn more about this?

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9 December 2024

Hello everyone, My wife and I are looking to potentially have discussions with a financial advisor early next year, but we're unsure how to find a good one. We started investing in ETFs just under two years ago and have built a solid portfolio in that time. We also have a good superannuation fund and good stable income. Our primary goal is to buy a property, potentially by the end of 2025 or soon after, so we are seeking advice on this, as well as on our overall financial situation. Does anyone have recommendations for reputable financial advisors? How to find a good one? What should we look for? What are the typical costs involved? and any other advice in this area would also be appreciated. Thanks in advance, Ron

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18 December 2024

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

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18 December 2024

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

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15 December 2024

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

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15 December 2024

Hi everyone, this is my first question. Thanks for creating such an awesome community! Quick background - Couple in early 40s, PPOR paid off. - Super on track to cover expenses from age 60. - Recently stopped salary sacrificing into super to focus on building investments outside of super. - Currently have $300k invested in VGS, aiming to grow this to $900k over the next six years, then FIRE and spend it down until preservation age. Questions - Our risk mitigation for market downturns (besides a 2-year emergency fund) is to continue or return to work if needed. This is why we're all in VGS. Is this a wise strategy, or should we consider adding bonds? - If we add bonds, should we build up the allocation gradually or rebalance closer to FIRE? - Is there merit in adding VAS? My partner believes it’s good for diversification, but I argue we’re already exposed to Australia through our PPOR, jobs, and super allocation. - Once we stop working entirely, what’s a good portfolio allocation? Would 60% bonds and 40% stocks be appropriate? Thanks in advance for your advice!

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11 December 2024

Hi there, here is something I've been struggling with for a few weeks. Background: * I'm looking to retire in 10-15 years (depending on market, salary growth, life events etc...) * Looking to minimise tax through salary sacrificing super (can add 10-14k per year depending on bonuses under the concession threshold) * Don't want to sacrifice time to retirement by putting too much into super and not having enough to live for potentially 15 years before I can access super. Keen to hear how other people in similar circumstances manage this when the investment timeline is 10+ years.

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26 December 2024

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

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28 December 2024

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

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3 January 2025

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

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23 December 2024

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

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