After you pay off your mortgage

[innsaneink]

I get the 15 year long service in 18 months, probably pull the pin then will likely sell here and buy somewhere up the gold coast or sunny coast.
We have land in Palawan, gunna build a place there when the missus sells her place and will split probably 60/40 Aus/Palawan

I'm excited ....Ink will almost be my neighbour .....

Well catch up at a game for sure hap.

I've got shares in a lithium mine in Argentina ?

 

[tiger05premier]

Legitimate question. With a portfolio as large as yours, and declaring numerous applied strategies, why are you asking people on this forum for financial options? This is like Penrith asking the Bulldogs for advice. Go Weststigers!

Some like to brag I guess

Great questions and sorry did not set up post to brag. Unfortunately my Father passed away this year after already losing my Mother years ago to cancer. My brother and I are wrapping up his estate that will provide me with the funds to knock off the remaining two mortgages. I still have 2 school age children and want to work so I can have a comfortable retirement and set my children up. I would like to keep my current 4 properties (3 in Sydney and 1 in Armidale). I feel keeping money in bank account not earning any interest is not a good option hence looking at other options. I have a good Super balance which I put the maximum money into. I live a very modest life. I respect Forum members and your opinions hence the reason for my post to educate my self outside of property and Super. Besides Super never dabbled in shares.

Not sure exactly how to word or exactly how it works but here goes

I love the share market and have shares in 25 different companies. Experts say don't try and time the markets but let time do the work. Anyway it's hard to borrow to invest in shares as opposed to houses so I started to invest in property both with the missus and one going halves with my son.

Anyway to get to the point my son and I decided that we are going to contact our broker to get a valuation on our property and see if we can get some kind of line of credit set up where you have access to say 100k but until you spend it you don't pay interest

Than when markets crash buy great quality income paying shares to add to the portfolio and the income will cover the loan with franking credits attached meaning 30% tax has already been paid and with interest deductions you will than not be liable for any tax on your earnings even though they more than cover the cost of the loan

I've done this very successfully through equity loans with a different set up twice over the years

The 1st was early 2009 after the financial crisis when shares were nearly at their lowest and jagged it on I think it was March 23 2020 when the share market hit it's lowest point during the Covid outbreak

Have also paid most of those loans of which means I get good income from them and put a lot of shares in missus name and because she doesn't work and the shares have franking credits she gets bigger tax returns than me

 

[twentyforty]

Magpie1969, I’ve always thought that lifestyle considerations are a priority, particularly with retirement planning. Wealth creation is just another tool to help achieve those plans. You’re very wise to be planning for the transition 6 plus years in advance.
there’s never been a better time to use someone else’s money to fast track the creation of wealth. Various methods exist, you could explore margin lending, or limited recourse loans with your own super fund? Just mentioning in case it hasn’t already been.

 

[tiger05premier]

I'll prob drop dead from Tigers angst before I finish paying everything off.
If not, I've always invested in property. My old man has quite a large share portfolio but I don't like the volatility. I buy commercial with existing long leases in place w usually a company that has been around for awhile.

Volatility is where opportunity is

I love the market

 

[tiger05premier]

Appreciate everyone's input in this conversation and I will be looking into EFTs. Someone mentioned mortgage offset accounts and I have used them for last 20 years and they really do work. Also paying your mortgage off on a weekly or fortnightly basis is another great idea I have used with success. Thank you so much Forum Members.

I will always have debt because I will always invest

Even in retirement I plan to have enough to live of and travel and be comfortable but will always buy another type of investment that is positive geared and have an offset attached

 

[Cultured_Bogan]

What's your salary sacrifice limit, out of curiosity?

My plan is and has always been to pay off more than my monthly amount... and when the loan lessens, continue paying more.

I get paid fortnightly and there's an occasional month where 3 pays fall instead of 2... so that's +1 extra payment.

Chipping away nicely albeit slowly but should be done in 20 years. 15 would be nicer but the hustle continues.

Worth looking at refinancing with your broker every so often so you ensure you have the best deal.

You're best off paying weekly. My broker explained to me that banks (at least mine does,) will work out you weekly repayment off your monthly amount and divide by four. So you will pay your yearly repayment in 48 weeks, and then make another four weeks (i.e. another "month,") on top of that.

 

[Cultured_Bogan]

gee.a lot of knowledgeable people on this forum who know stuff i've got no idea on.

my advice is to pay your mortgages off and keep working.The benefits of going to work and being at a coalface cannot be measured.There's only so many days you can play golf.

Having a purpose is a strong motivator for men.With international travel under a cloud for some time,working past the nominal retiring age of sixty is a reality,depending on your work area.
But each to their own- just like the wide variety of opinions you'll find on this forum.

I want to pay off my mortgage as fast as I can and move into SMSF so I can retire at 60.

I won't retire fully at 60, I would like to get away from the industry I am in though and work part time at a Bunnings or a Flower Power or something like that. Have a less stressful job to enjoy and still occupy my time.

 

[WswWt]

I’ve always said: don’t pay off your mortgage until you are ready to retire, use the mortgage and equity in your home to purchase homes, use the mortgage in homes to purchase more. Make sure all the homes are positively geared which means cashflow into your wallet after expenses have been paid. When it comes time to retire, your investments would have risen in value and then sell.

 

[Papacito]

Does anyone invest in Gold at all?

Lol, strange timing. Yes, I have.

ETFs are the easiest way.

Nothing wrong with ETFs, I hold a couple (RBTZ and HACK), but generally my preference is to hold specific companies directly yourself, as you are not paying fees to a middleman.

Obviously the management fees and brokerage are something to consider. The Perth Mint physical etf is only a 0.15% fee, which I'm happy personally happy to suck up.

 

[PJ_]

I'll prob drop dead from Tigers angst before I finish paying everything off.
If not, I've always invested in property. My old man has quite a large share portfolio but I don't like the volatility. I buy commercial with existing long leases in place w usually a company that has been around for awhile.

Volatility is where opportunity is

I love the market

That's why my old man likes it. Nearly 90 and still goes stupid ?
I prefer something I don't have to keep my eye on every day

 

[tigger]

gee.a lot of knowledgeable people on this forum who know stuff i've got no idea on.

my advice is to pay your mortgages off and keep working.The benefits of going to work and being at a coalface cannot be measured.There's only so many days you can play golf.

Having a purpose is a strong motivator for men.With international travel under a cloud for some time,working past the nominal retiring age of sixty is a reality,depending on your work area.
But each to their own- just like the wide variety of opinions you'll find on this forum.

I want to pay off my mortgage as fast as I can and move into SMSF so I can retire at 60.

I won't retire fully at 60, I would like to get away from the industry I am in though and work part time at a Bunnings or a Flower Power or something like that. Have a less stressful job to enjoy and still occupy my time.

I'd have a good think about an SMSF if I were you CB. Lots of people love them, but I went down that track and I wasn't too impressed. In the end I wound it up and transferred everything into an Industry Super Fund balanced account. Not very sexy but incredibly efficient. Return this year was just over 20%, but of course, that won't last.

A lot of the advice around SMSF's relates to how much you have to invest. I think that a better consideration is "what do I want to invest in". If you want to invest in things that you can't buy from super funds (artworks, private property, bullion, collectables etc) than I think an SMSF is great. But they can be expensive to run and time consuming too. If you use an advisor, they will want a cut. You will have an annual corporate registration fee to pay and you need to have the accounts audited every year in addition to having an accountant. (Assuming that you use a pty ltd coy as a vehicle).

If you're going to invest in things like shares, bonds, infrastructure projects, commercial property etc, you don't need an SMSF to do that. An industry super fund will give you greater diversification than you can achieve yourself and lower fees than an SMSF.

You should be able to achieve at least a 6% return **over the long term** so, when you consider the cost of operating an SMSF, the return needs to be greater than 6%, plus the sum of all costs, to make it worthwhile even considering.

Financial advisers love them. But they have a vested interest in getting you into them.

I know that lots of people will disagree with this , but I still think that ditching the SMSF has been one of my better investment decisions.

 

[Cultured_Bogan]

gee.a lot of knowledgeable people on this forum who know stuff i've got no idea on.

my advice is to pay your mortgages off and keep working.The benefits of going to work and being at a coalface cannot be measured.There's only so many days you can play golf.

Having a purpose is a strong motivator for men.With international travel under a cloud for some time,working past the nominal retiring age of sixty is a reality,depending on your work area.
But each to their own- just like the wide variety of opinions you'll find on this forum.

I want to pay off my mortgage as fast as I can and move into SMSF so I can retire at 60.

I won't retire fully at 60, I would like to get away from the industry I am in though and work part time at a Bunnings or a Flower Power or something like that. Have a less stressful job to enjoy and still occupy my time.

I'd have a good think about an SMSF if I were you CB. Lots of people love them, but I went down that track and I wasn't too impressed. In the end I wound it up and transferred everything into an Industry Super Fund balanced account. Not very sexy but incredibly efficient. Return this year was just over 20%, but of course, that won't last.

A lot of the advice around SMSF's relates to how much you have to invest. I think that a better consideration is "what do I want to invest in". If you want to invest in things that you can't buy from super funds (artworks, private property, bullion, collectables etc) than I think an SMSF is great. But they can be expensive to run and time consuming too. If you use an advisor, they will want a cut. You will have an annual corporate registration fee to pay and you need to have the accounts audited every year in addition to having an accountant. (Assuming that you use a pty ltd coy as a vehicle).

If you're going to invest in things like shares, bonds, infrastructure projects, commercial property etc, you don't need an SMSF to do that. An industry super fund will give you greater diversification than you can achieve yourself and lower fees than an SMSF.

You should be able to achieve at least a 6% return **over the long term** so, when you consider the cost of operating an SMSF, the return needs to be greater than 6%, plus the sum of all costs, to make it worthwhile even considering.

Financial advisers love them. But they have a vested interest in getting you into them.

I know that lots of people will disagree with this , but I still think that ditching the SMSF has been one of my better investment decisions.

I have spoken with a place that specialises in it, referred to me by a colleague that has seen some pretty fantastic returns through it. I am currently with an industry super fund which has performed very well over FY20-21 probably due to being heavily invested in food retail and banking sector most likely.

I absolutely recognise that there's a vested interest. The plan that has been outlayed to me seems very reasonable though and is a good way to minimise tax on the fund and grow the portfolio.

Still speaking to them to iron out a few things and keeping in contact with my colleague to see how he continues to find it. My plan to is own a few properties, paid off by retirement age and live off the return on them. When the wife and I cark it, it will be liquidated and distibuted to our kids for them to get into the market.

 

[Magpie_Magic]

Appreciate everyone's input in this conversation and I will be looking into EFTs. Someone mentioned mortgage offset accounts and I have used them for last 20 years and they really do work. Also paying your mortgage off on a weekly or fortnightly basis is another great idea I have used with success. Thank you so much Forum Members.

Interesting intelligent diverse people on here.
ETFs are a good choice. I've been trading the stock market a while and all is not as it see seems when we are told tne market has appreciated 10% a year for eg.

With houses especially in Sydney since the late 80s wherever one bought you'd gone great. Remember around 88 one could have purchased in Burwood for 80k and average wages were 30k. Now they are 2m a factor of x 25 and average wages (when everyone was allowed to work pre virus) were 70k. Somehow, I don't think houses will rise by a factor of 25 during the next 30 years and incomes only doubling. Interest rates going from 12 to 2% massive Asian immigration, globalization etc. Point is whatever house one buys sure areas vary but they all appreciate when market is rising.

But with stocks it's different. With massive technological disruption ESG etc certain stocks go nowhere or south and many stocks with great dividends can't sustain them. Think for e.g. BHP Fortescue recently. Paid great dividends but got smashed as iron collapses and think of the banks. Once they were cash cows but in the future wilh slowing credit growth and buy now pay later firms eating into high profit credit card businesses their income stream may not be as good. And the index for e.g.. The ASX200 is affected by survivorship bias, that is stocks which were once blue chip but sliding get removed and new stocks promoted....all good if you have winner but if you own a fading blue chip you hear markets are rising but you are losing.

So my point is with stocks I'm like tigers05premier I like trading and trying to time the market. Had my ups and downs but I'm a stick in the mud and want the engagement.

But if you don't like the volatility of stocks ,ETFs are a great way to go because if one invests in the index you don't have to worry about a companies performance you are in the market as a whole and during the last 20 years at the least central banks have done their utmost to protect the markets so it has been that central banks have had your back. So losers get relegated winners promoted and providing the index goes up you win whereas with individual stocks one may happen to be in losers or disrupted industries, but if you do well picking individual stocks the potential is greater.
Just study that the ETF invests in real assets not derivatives (unless it's what you want.) and do your homework re counter party risk.

Counter party risk is greater with a middleman.

 

[TonyTiger]

After you pay off the mortgage you continue to pay the Council Rates, hope that annual Land Tax does not come in then try to die before the Govt get their way with Death Taxes ( so your kids are able to benefit from your hardship earned - they’ll need it ).
If you’re a Politician then sit back/get fat on your Defined Benefit for Life!

 

[tigger]

gee.a lot of knowledgeable people on this forum who know stuff i've got no idea on.

my advice is to pay your mortgages off and keep working.The benefits of going to work and being at a coalface cannot be measured.There's only so many days you can play golf.

Having a purpose is a strong motivator for men.With international travel under a cloud for some time,working past the nominal retiring age of sixty is a reality,depending on your work area.
But each to their own- just like the wide variety of opinions you'll find on this forum.

I want to pay off my mortgage as fast as I can and move into SMSF so I can retire at 60.

I won't retire fully at 60, I would like to get away from the industry I am in though and work part time at a Bunnings or a Flower Power or something like that. Have a less stressful job to enjoy and still occupy my time.

I'd have a good think about an SMSF if I were you CB. Lots of people love them, but I went down that track and I wasn't too impressed. In the end I wound it up and transferred everything into an Industry Super Fund balanced account. Not very sexy but incredibly efficient. Return this year was just over 20%, but of course, that won't last.

A lot of the advice around SMSF's relates to how much you have to invest. I think that a better consideration is "what do I want to invest in". If you want to invest in things that you can't buy from super funds (artworks, private property, bullion, collectables etc) than I think an SMSF is great. But they can be expensive to run and time consuming too. If you use an advisor, they will want a cut. You will have an annual corporate registration fee to pay and you need to have the accounts audited every year in addition to having an accountant. (Assuming that you use a pty ltd coy as a vehicle).

If you're going to invest in things like shares, bonds, infrastructure projects, commercial property etc, you don't need an SMSF to do that. An industry super fund will give you greater diversification than you can achieve yourself and lower fees than an SMSF.

You should be able to achieve at least a 6% return **over the long term** so, when you consider the cost of operating an SMSF, the return needs to be greater than 6%, plus the sum of all costs, to make it worthwhile even considering.

Financial advisers love them. But they have a vested interest in getting you into them.

I know that lots of people will disagree with this , but I still think that ditching the SMSF has been one of my better investment decisions.

I have spoken with a place that specialises in it, referred to me by a colleague that has seen some pretty fantastic returns through it. I am currently with an industry super fund which has performed very well over FY20-21 probably due to being heavily invested in food retail and banking sector most likely.

I absolutely recognise that there's a vested interest. The plan that has been outlayed to me seems very reasonable though and is a good way to minimise tax on the fund and grow the portfolio.

Still speaking to them to iron out a few things and keeping in contact with my colleague to see how he continues to find it. My plan to is own a few properties, paid off by retirement age and live off the return on them. When the wife and I cark it, it will be liquidated and distibuted to our kids for them to get into the market.

As long as you're happy with it, it will be the right call for you. It may well come down to the quality and integrity of the adviser. I suspect that mine (also recommended by a colleague) was a dud. My set up, with an adviser, fund managers, an accountant and an auditor was costing so much that I would have a needed a return of 10% every year in perpetuity just to break even with what I could do myself in an industry fund with little or no effort. I felt that that level of average annual return over the long term was unlikely. And to make it worthwhile they would have needed to be significantly better than that.

 

[Canberratiger]

Plan is while interest rates are so low to use ...keep my HL at about 3 k and then use to buy a new and used car at real cheap interest rates .......

Don't think leasing is a smart option .....then again probably don't know enough about it either

Leasing is a difficult one to gauge. Whilst it might work well for some people for others it can be a lot of work for no real gain or to only end up in a worse financial position. It is a good option if you want a new car every year or two or if you work for a NFP organisation however for most people who own a property I'd suggest looking into using their property as security to purchase a vehicle where it's not uncommon to get an interest rate fixed in at <2%. For a $50k loan over 5 years at 2% you're looking at around $2600 interest over the life of the loan. Much lower than an unsecured personal loan and easier to calculate your end position than a leasing arrangement.

Do you reckon you are better of leasing or taking money from a mortgage and paying outright? Not looking for advice just wondering

 

[Cultured_Bogan]

gee.a lot of knowledgeable people on this forum who know stuff i've got no idea on.

my advice is to pay your mortgages off and keep working.The benefits of going to work and being at a coalface cannot be measured.There's only so many days you can play golf.

Having a purpose is a strong motivator for men.With international travel under a cloud for some time,working past the nominal retiring age of sixty is a reality,depending on your work area.
But each to their own- just like the wide variety of opinions you'll find on this forum.

I want to pay off my mortgage as fast as I can and move into SMSF so I can retire at 60.

I won't retire fully at 60, I would like to get away from the industry I am in though and work part time at a Bunnings or a Flower Power or something like that. Have a less stressful job to enjoy and still occupy my time.

I'd have a good think about an SMSF if I were you CB. Lots of people love them, but I went down that track and I wasn't too impressed. In the end I wound it up and transferred everything into an Industry Super Fund balanced account. Not very sexy but incredibly efficient. Return this year was just over 20%, but of course, that won't last.

A lot of the advice around SMSF's relates to how much you have to invest. I think that a better consideration is "what do I want to invest in". If you want to invest in things that you can't buy from super funds (artworks, private property, bullion, collectables etc) than I think an SMSF is great. But they can be expensive to run and time consuming too. If you use an advisor, they will want a cut. You will have an annual corporate registration fee to pay and you need to have the accounts audited every year in addition to having an accountant. (Assuming that you use a pty ltd coy as a vehicle).

If you're going to invest in things like shares, bonds, infrastructure projects, commercial property etc, you don't need an SMSF to do that. An industry super fund will give you greater diversification than you can achieve yourself and lower fees than an SMSF.

You should be able to achieve at least a 6% return **over the long term** so, when you consider the cost of operating an SMSF, the return needs to be greater than 6%, plus the sum of all costs, to make it worthwhile even considering.

Financial advisers love them. But they have a vested interest in getting you into them.

I know that lots of people will disagree with this , but I still think that ditching the SMSF has been one of my better investment decisions.

I have spoken with a place that specialises in it, referred to me by a colleague that has seen some pretty fantastic returns through it. I am currently with an industry super fund which has performed very well over FY20-21 probably due to being heavily invested in food retail and banking sector most likely.

I absolutely recognise that there's a vested interest. The plan that has been outlayed to me seems very reasonable though and is a good way to minimise tax on the fund and grow the portfolio.

Still speaking to them to iron out a few things and keeping in contact with my colleague to see how he continues to find it. My plan to is own a few properties, paid off by retirement age and live off the return on them. When the wife and I cark it, it will be liquidated and distibuted to our kids for them to get into the market.


As long as you're happy with it, it will be the right call for you. It may well come down to the quality and integrity of the adviser. I suspect that mine (also recommended by a colleague) was a dud. My set up, with an adviser, fund managers, an accountant and an auditor was costing so much that I would have a needed a return of 10% every year in perpetuity just to break even with what I could do myself in an industry fund with little or no effort. I felt that that level of average annual return over the long term was unlikely. And to make it worthwhile they would have needed to be significantly better than that.

Yeah I'm taking my time with it. Not going to rush into something half cocked and mess up everything I've worked for over the last 20 years. Still looking over things and going back with questions before I pull the trigger.

 

[Pascoes_barber]

After you pay off the mortgage you continue to pay the Council Rates, hope that annual Land Tax does not come in then try to die before the Govt get their way with Death Taxes ( so your kids are able to benefit from your hardship earned - they’ll need it ).
If you’re a Politician then sit back/get fat on your Defined Benefit for Life!

You know I reckon a guy that owns 4 properties outright (before retirement no less) is *probably* going to manage to pay a few thousand dollars a year in rates bills.

 

[Plisskin]

This is a funny topic.
6 pages of replies to a blowhard bragging about his investments?
Well trolled @Magpies1969.

 

[Magpie1969]

This is a funny topic.
6 pages of replies to a blowhard bragging about his investments?
Well trolled @Magpies1969.

Interesting comments but everyone is entitled to an opinion and I am sorry if I offended you. I was trying to tell my story as many of this Forum are my age, 52 or older and have set themselves for retirement. I wanted to put forward that I am already into property and Super so looking forward to other real options. Some of my wealth comes from inheritance which I would happily give my money to have both parents alive again. I continue to work and support my family but I really want a comfortable retirement and set up my twins. I live a very modest lifestyle and will continue to. Just from these 6 pages I have some options to research and think about so I am glad I asked the question and appreciate people's knowledge and real life experiences.