Nothing written below is financial advice. The below questions and answers are for general information only and should not be taken as constituting professional advice. You should always do your own research when making any financial decisions.
Just wondering what you have in mind for the structure if your portfolio once you reach FIRE? What do you think your asset allocation will look like, what percentage for defensive to preserve your hard earned and what percentage in growth to cover inflation and continue your income?
What figure do you think you may want to keep in cash?
The plan right now is to have all of the properties sold and be 100% in equities plus an emergency fund that’s sitting in our house loans offset account. When we do eventually buy a home to live in, we plan to use debt recycling to turn our PPOR loan into a tax-deductible one.
Having around $1M invested in a combo of ETFs and LICs should produce around over $50k of dividends plus franking credits which can be used if Labour doesn’t remove the franking credit refund 🙏. The portfolio itself should grow on average by 3-4% which will mean it’s growing faster than inflation (on average).
Of course, the market works in peaks and troughs and some years are going to be better than others.
I have always felt comfortable with 6 months worth of living expenses in cash.
Thanks for a great blog. It is really easy to read and understand.
Obviously, your focus is on investing, but I was wondering if you could offer some insights into the other side of the coin and let us know ways you save money in your household. The everyday things like shopping at Aldi, rewards programs, etc (or however you do it).
It’s refreshing to hear someone ask a question about the most important part of FIRE. Too often it’s all about investing and tax minimization strategies which pale in comparison to simply saving more each paycheck.
Now to your question.
I created a free eBook years ago which listed my top 10 strategies to save money. You can get it HERE.
In no order here are my top ten tips.
- TRACK YOUR SPENDINGS
- CANCEL UNUSED MEMBERSHIPS
- PAY YOURSELF FIRST
- LEARN TO COOK
- THINK IN PERCENTAGES
- BUY SECOND HAND
- RENT WHERE POSSIBLE
- CREDIT CARDS
- DELAY GRATIFICATION
- STAY AT HOME WHEN POSSIBLE
The eBook lists each point with a little explanation so I recommend that you download it and have a read.
You continue to push out such great content.
- May I ask your reasoning in buying MLT, as opposed to AFI which is currently trading a discount? I currently only hold VGS (started very recently) and am looking to buy my first LIC. My eventual portfolio is hopefully VGS (20%) AFI (40%) and A200 (40%).
- If you have an inkling the US stockmarkets bull run has got to eventually come to an end (2 yrs, 5 yrs, who knows), what would your plan be? I know its stay the course, dollar cost average, buy more during a crash, but would it make more sense to buy Australian shares now, then during US crash pump more money then?
- When we bought MLT last month it was trading at a slightly higher discount PLUS it has a lower MER than AFI.
- You pretty much hit the nail on the head. Invest consistently no matter what the market is doing is our strategy. But it’s very hard to not hear the thunderous roars from the doom and gloom pundits that are drowning out all other narratives at the moment. I try not to look at the markets too much but it’s hard for someone like me not to read financial news.A lot of things make sense with hindsight. But trying to pick what’s going to happen is very risky. It’s going to interesting to see what unfolds over the next 24 months… But I’m strapped in with my helmet and all, gleefully awaiting the rollercoaster ride that is the stock market. Hopefully, I can hold my nerve and not scream to get off after a heart-dropping dip. Only time will tell.