Hi all! I’m looking into novated lease and I have a question.

I know there’s a calculator out there that helps understand NL costing against keeping money in offset, buying the car outright etc.

If I am to do a quick calculation to compare two quotes for NL, wouldn’t it just be:

(Weekly Repayment x Time of Lease in weeks) + Residual Value

So say I get a quote for Tesla Model 3 which is $287 per week post tax for 3 years with $38,727 plus GST, then total cost for owning this car is ($287 x 52 x 3) + (38,727 x 1.1) = $87,371

Am I oversimplifying it too much or is this correct?

I've can currently buy an apartment outright if I sell some of my investments.

Does this plan seem sound?

• Get a $455k loan for a $650k apartment (70LVR)
• Buy a 2br apartment for $650k
• Sell enough of ETF portfolio for $455k post-tax
• Pay off the loan in cash
• Redraw from the loan and rebuy the ETFs
• Rent out spare bedroom for around market price

Questions:

• Would I now be able to claim the interest on my $455k loan?
• Would I also be able to claim any repairs/maintenance/depreciation proportionally (i.e at 50% as the apartment would be 50% owner occupied/50% investment)
• Is this even worth it financially? My main goal is to achieve long term wealth and be able to buy a house in Sydney that’s around 1.8 to 2.5m today.

I have numbers such as

• current rent
• the rate of the loan
• expected rental income
• my expectations on capital growth of the apartment vs the opportunity cost of investing in shares

but I didn't want to make the post too long.

Hi all,

Not specifically seeking tax advice, just wanting opinions on this scenario as it's doing my head in.

Moved to the UK in February 2024 under the Youth Mobility Scheme, so plan on being here for 2 years. I have investments in Australia that I've held for over 12 months, and intend to cash them in. They are sitting at about 50% gain at the moment so comfortable to sell now. I have a mortgage and am renting out my primary residence in Australia.

From a dual-treaty tax perspective, here are the list of facts and my understandings;

• I live and work in the UK and from April 2024 to April 2025 am a non-domiciled tax-resident of the UK.

• As I spent over 6 months of the tax year in Australia, I would not be treated as a foreign resident for tax purposes. So therefore should still be eligible for CGT discount benefit.

• As far as I anticipate, I should be able to sell the shares in Australia, and receive the CGT discount and this should only affect my Australian tax outcome. Am I wrong?

The intention is to sell the shares in Australia, and move it over the UK to support savings and then eventually investments in the UK while I am here.

Again, I know a loaded tax question, and I understand advice isn't provided and accept it's all theoretical.

Was going to to do a lump sum to max out this years super $27,500 cap, and it just came across my mind it would surely be more beneficial to go back 5 years and max out that year instead… that way I don’t loose that years opportunity and keeps this financial year still available to top up at a later date… does this make financial sense? Cheers.

Hello I am mid twenties and I want a etf/stock to set and forget no daily checks etc… the two etf that keeps popping up in my reasearch is VDHG and DHHF. Which one you anyone suggest. Be nice please 😅 Also when I say set and forget means I want to invest every fortnight or monthly about 1.2k

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Weekly Discussion Thread on all things FIRE.

I need to start this post by acknowledging both the privilege I have had to independently earn enough for a comfortable life, as well as the privilege I now I have in the form of significant inheritance.

But I feel really uneasy about it. It's enough for me to never need to work again. I'm not even 40 and this has been a dream for a long time. But now that it's a reality I don't really know how I feel about it. I certainly don't want to work full time any more but I also have fears that I will squander this opportunity or fuck it up for myself or partner in other ways. Make the wrong investment choice. Spend money on things I shouldn't. And then the mixed emotions about becoming a home owner. It feels like a lot and I am a bit overwhelmed by it all.

Has anyone experienced this and can shed any light or offer advice? I've engaged a financial planner just to get a sense of what some options might be. They have been very hands on and have enjoyed working with them so far. But other than that I'm just at a loss.

For context DINK, inheritance is in the multiple millions, looking to start family and am completely unmotivated at work.

Webull vs commbank . Just curious to know what apps you all use to invest . I m a very small time investor, and like Webull because it has low fees but the trading hours are almost always between 11:30 pm and 4:00 am. Any suggestions for low fees apps?

Hi All - This is my first post in reddit!

I have a question-

Example - If i buy ETF’s using super money in say XSuper account.

In future if i want to change my super provider say from XSuper to YSuper, I know I can transfer my super funds. Can i also get my ETF’s or shares transferred from the XSuper to YSuper as is or do I have to sell the ETF’s before leaving the XSuper?

I've been thinking about setting some new portfolio allocation targets, as my portfolio started to get larger.

The hypothetical portfolio I've been thinking about is:

35% Australian equities: 28% VAS, 7% MVW

65% International equities: 35% VGS, 7% QSML, 7% VAE, 7% VLUE, 9% VEQ

In coming up with this, I worked on what seems to be a standard Aus vs world split. I'm able to manage a higher level of risk, so included some factor tilts, as well emerging markets exposure. I was also trying to moderate exposure to big Aussie banks and big US tech (thus MVW and VEQ). I've gone with Australian domiciled funds to avoid the requirement for a W8BEN form.

This allocation gives roughly 35% Australia, 35% US and 30% everywhere else. The big 4 Aus banks and the magnificent 7 are both about 7% of the portfolio. BHP would be the biggest company holding making up 3%. The portfolio MER is 0.23.

Interested in views on overall approach and choice of specific funds (e.g. MVW vs EX20). I'm imagining the inclusion of VEQ will be particularly controversial, as well as the number of funds. Open to any (well argued) ideas.

I'm trying to figure out if I should pay off my hecs debt right now or leave it. I'm currently a student studying IT and have 6 months of university left before I graduate. I currently have a hecs debt of $19,000. I have savings of $42,000. I am only working casual disability support worker making $400-$500 a week, putting some in may savings but not much. I have no debt and minimal shares. Me and my partner aren't looking at buying a house currently but maybe in a year or two. My partner has played off her hecs debt.

I'm not to experienced with anything finnancial so I wanted some advice before I make any moves and wanted to take my finances abit more seriously. Apparently the indexation is going up June 1st?

I'm in my mid-20s and hold 1000 USD in NYSE:NLY. Bought it years ago because I just listened to family and didn't do my own research. Now I know better haha

Should I still hold equity in REITs at my age? Or sell and put it into an ETF like ASX:IVV?

Don't like that I'm paying dividend tax on shares that aren't even high growth. But unsure if I want to trigger a CGT event.

Any advice welcomed :)

I'm investigating the whole life insurance and income protection insurance. Its a big field and I find it difficult to navigate.

Any advice on good products or good brokers to see in adelaide?

Hello all, hopefully this is a simple question. I have a 3-way Vanguard portfolio as above that I've been investing into over the past 8 years or so, just topping up $5k at a time into whatever seemed disproportionately low.

I think that if I were to start investing today, I would probably just invest in DFFH as a good 'all in one' high-growth ETF that minimises any need for my monkey brain to think and make poor decisions.

My question is, other than the little bit of extra admin from distributions and tax time, is there a reason that I should or should not switch my future investments to DFFH?

Happy to hear any thoughts relating to the dis/advantages of having an extra holding in my portfolio, the construction of my portfolio currently, and whether DFFH is even a good option.

Thank you all, and for your contributions to this community in general which is very insightful.

Hi, I (29 yo) came from a country in SE Asia where there were no options to invest in SP500 so I used a Singapore-based platform called GoTrade to buy VOO and VXUS in USD. I have been investing since late 2021 and have around USD 32,000 there right now.

Now that I can stay in Australia long-term, I am looking to buy IVV but I'm not sure if I should keep the USD32k in that platform or if I should withdraw and move everything to IVV. I have not looked deep into where to buy IVV in Australia but I will read resources from passiveinvestingaustralia and lazykoalainvesting websites. Though if you have personal advice, feel free to write them!

But yeah my main question is whether or not I should keep the USD32k in that platform. Withdrawal fee is USD50/withdrawal.

Thank you!

Been looking into the GMVW and noticed today that it's +0.24%, whilst MVW is +1.10%? How is this possible?

I started investing in ETFs exclusively on the Selfwealth platform maybe 5 years ago, I have a few work friends trying to convince me to switch to Sharesies, but I've also seen that Betashares just launched their own trading platform also.

Thoughts on all 3? Which is typically the best platform these days? I know Selfwealth has a 9.50 AUD fee per trade...

Genuine question, not trying to troll.

I work in financal planning and everyone I work with is dismissive of crypto. Why is this? And before you all bray about risk, almost all of you will advocate 'time in the market' over 'timing the market', which basically means you are holding investments for long periods of time, if you apply this to crypto assets then the volatility is fine because you're not trying to sell tops and bottoms. Curious as to why the greatest investment class of the generation is ignored in a sub about investing.

Edit: Main problem seems to be the lack of "inherent value" and no dividends. Totally fair and I'm not going to argue comment by comment, I'm not here to convert anyone, I was just curious as to why so many in the industry shun it.

I am new to ETFs and I want a set and forget ETF portfolio, but what are the advantages and disadvantages of high dividend ETF (VHY) over basic index ETF (VAS)? VHY out performs VAS but are there tax implications or even complications I should be concerned about re dividends? Anything I’m not seeing?

I’m going 40% Aus shares and 60% international VGS.

Cheers!!

I'm looking to get some feedback on my current investment portfolio breakdown and whether you think I'm on the right track or need to diversify a bit more. I'm 28, and here's a snapshot of what I have:

1. Cryptocurrency
   • Bitcoin: ~$200,000
   • Fantom coin: ~$50,000
2. Brokerage Account (In order from greatest to least)
   • Tesla, Shopify, Coinbase, Grid, Donald Trump Media: ~$40,000 total
3. Roth IRA
   • Citigroup, S&P 500 ETF, Total Value: ~$8,000

I believe in the long-term potential of cryptocurrencies, and my Roth IRA is mostly focused on a balanced mix. However, I'm curious to hear your thoughts. Should I diversify more within traditional investments, or keep my current distribution?

As Jack Bogle once pointed out, the costs associated with an ETF extend beyond the official management fees. These “hidden costs” include turnover costs, which occur when stocks enter and exit the fund, and withholding tax on dividends from foreign countries.

To uncover the “True Cost” of IVV and VGS, I delved into their annual reports. The “True Cost” is calculated by dividing the “Total Operating Expenses” by the “Net Assets Attributable to Unitholders”.

I opted for “Net Assets Attributable to Unitholders” over “Total Assets” because the former represents the value of the fund’s assets that truly belong to the investors, after accounting for all liabilities.

As evident in the annual report, “Total Operating Expenses” encompass not only management fees but also other expenses such as “Transaction Costs” and “Custody Fees”.

Based on my calculations, the true cost of IVV is 0.036%, which is very close to the official management fee of 0.04%. However, the true cost of VGS is significantly higher at 0.45%.

The higher true cost of VGS can be attributed to a substantial “Withholding Tax Expense”, which IVV does not incur (can you confirm this?). Additionally, there are some ambiguously defined “Other Operating Expenses” that are far from negligible.

Did you spot any errors in my calculations?

IVV annual report (total assets on page 5 and total operating costs on page 15):

https://www.blackrock.com/au/individual/literature/annual-report/international-funds-annual-report-en-au.pdf

VGS annual report (total assets on page 13 total operating costs on page 11)

https://fund-docs.vanguard.com/AU-Annual_report-Vanguard_Wholesale_International_Equities_Unhedged_Funds_and_ETFs.pdf

EDIT: I've added the true cost of BGBL which is 0.0642%.

EDIT 2: The costs of VGS appear to be inflated because the annual report only provides the total fund size, which includes the managed fund, not just the ETF. The ‘Withholding tax expenses’, which inflate the cost, may predominantly (or entirely) affect the managed fund, which is considered less tax-efficient than ETFs. If we assume no "Withholding tax expenses" for the ETF than VGS ETF true cost is around 0.19%.

BGBL annual report (total assets on page 10, total operating costs on page 8):
https://www.betashares.com.au/wp-content/uploads/2023/09/Booklet-5A-Int-Equities-June-2023-full-set.pdf

https://preview.redd.it/cno83ligxzyc1.png?width=469&format=png&auto=webp&s=ace96e01efcb483f09fb81545defd855639b3ee3

IVV vs. VGS - True cost

So I have started investing about 20% into A200, 70% into BGBL and about 10% into IVV (I prefer to be US heavy). I'm looking to expand my portfolio to international markets but not sure which to add (VISM or VVLU or others). I'm looking to invest for the long term 20+ years, any suggestions is welcomed. Thanks in advance

Also thoughts on Global X (SEMI)?

If you average 10% returns on efts such as VAS and VGS and pay income tax at 30% does that mean you are only really making a return of 6-7%? Then account for inflation of 2-3%. Are your actual gains 3-4% per year?

If you follow the 4% rule does that mean your wealth is never really growing, as you are living off the gains and your nest egg doesn't seem to grow once tax and inflation eat at it?

Hi, I'm 15 years old and have started working a casual job. My parents have encouraged me to start investing 10% of what I earn, which I am currently putting into a Vanguard Kids account. However, I'm wondering what the Tax implications of this is, as both my parents are in a high income bracket, as well as how easy it is to get the shares in my name when I turn 18 without it being a CGT event. I'd also like to know if any of you have any other suggestions for services to use that work better?

I’m probably at roughly half-fire number and for a variety of factors all of the EFT investment is in my name. It’s not as tax inefficient as it could be based on our business and how dividends from our work are paid out. Going to do the other half in wife’s name. Currently 80/20 (VESG/VAS) through vanguard platform and was going to do 80/20 (BGBL/A200) through beta shares direct via wife to spread the risk across 2 providers for the other half of EFT investment. This would then allow 1 of us per annum to sell in the future based on whoever is doing more part-timework/has more income that year. Any negatives of doing this other than admin?

Hello! I am new to investing and am around early 30s. I am in this for the long game and am thinking to start with the following ETF portfolio and allocations:

• VAS (5-10%) Australia
• IVV (35-55%) US
• VAE(10%) Asia

I am aiming to lean more into the US and also be more diverse globally.

My questions are:

• Are there other ETF that is excluding US, Australia and Asia? I would like to gain more global exposure
• Are there further recommendations on which other ETF choices I should take a look over the existing ones above? I chose VGS over IVV because I wanted more on the S&P 500 index.

Thanks in advance and please let me know if I should clarify more.

Note: new to investing and have been reading both https://passiveinvestingaustralia.com/ and https://lazykoalainvesting.com/ to get started

Advice appreciated.

Quick TLDR

• spoke to Broker and Acct
• Personally not a fan of Financial Advisors, who take an ongoing %, when I could just through it in ETFs with similar returns
• Not a fan of maxxing Super, can't touch until late age and can't leverage
• shares maybe, but bank won't lend for this purpose - so, property it is?

The long of it:

Spoke to my accountant, looks like Ill be getting a tax bill this year, he recommend adding a property to the portfolio to increase debt and lower tax.

Spoke to a broker who has come back with the following suggestions:

Pay out PPOR in full by transfer of funds from 3 Investment Properties.

Can get up to 800k loan for next place using refinanced IP loans as security / down payments

This means rather than having 3 neutral geared IPs and negative PPOR, I'd be going toward paid off PPOR and 4 negative geared IPs.

I work FT and the Missus works PT, plus a young one not in kindy yet, so slightly hesitant to make the next push as we're kinda comfy right now and one more property seems like a stretch? Maybe not take the full approved 800k? Look at units at a lower 600k etc? Shares not an option with bank loan btw.

Others with similar insights and experience would be appreciated.

We were hoping to be approved over 1m, 1.3mil for our forever home, but it's not going to happen yet with the Missus PT work and property $ going nuts, so feels like we do need to take a step now to keep moving toward that goal of living where we want at some point in our future.

Cheers