40 y/o,House paid off,What would you do in my situation to grow wealth?

[chrisleeds]

@lochie Yh your on the money, newer build good depreciation, some negative gearing, good way to lower your tax have it paid off by retirement.

 

[faray]

@lochie I started adding more into super and purchased leave to chill more at work then also added high interest saving accounts like ING.

 

[gomgom]

@lochie I'd speak to a financial adviser. There's so many different ways to build wealth

 

[sophie0813]

@gomgom And your financial advisor will be more than happy to take a slice of it without taking on any of the risk.

 

[danadcc]

@lochie Great situation you’re in. I’m no expert but I would think a safe option would be buy a nice established investment property and rent it out. Have that being paid off for you. Then live financial freedom. Go on holidays etc

 

[folly]

@lochie My $0.02 worth....
If I was in that situation I'd consider that I already have substantial $ in real estate and would balance that with shares (or, more specifically, ETFs).
Look up dept recycling (and/or the book "motivated money").
Also, all the best and good on you for taking a practical approach for your family's future!

 

[resjudicata]

@lochie If you don’t need/want to retire early. Pump everything you can into your super to max out concessional contributions and enjoy the tax savings. If you can both max out super for the next 5 years, that will be worth about $300k to your combined super, and probably about $1m at retirement with no further investment on your behalf.

If you still have money left to invest after that, either ETF or savings.

 

[lochie]

@resjudicata Will look into this. You'd do this over property? Cheers

 

[resjudicata]

@lochie Personally I wouldn’t touch property unless I could fall arse backwards into it (eg moving house and have option and capacity to hold onto old house while moving into new house). The hassle of dealing with real estate and tenants, plus all the comes with it, makes it unattractive to me. Over the long run; housing in Australia performs on par with share market.

Your super is the way to go. You’ll get a tax deduction for anything you put into super (and claim at tax time), up to the cap of $27.5k (which also includes employer contributions)

 

[mariepets]

@lochie You need to post this in r/AUSHENRY or even browse their discussions there. Most of the chatter on real estate here is all about folks renting and getting bonds back. Don't think they have much more to add about real estate investment. That's evident when most are just lazily pointing to super.

 

[moonserenity]

@mariepets HENRY stands for “high earning not rich yet” - this person wouldn’t quality as “high earning.” They made that sub to gatekeep people earning under their arbitrary threshold.

 

[mariepets]

@moonserenity Regardless, I found their discussions on money management and assets really informative

 

[moonserenity]

@mariepets Oh that’s good to hear. Just frustrating that people felt that people on lower (aka normal) incomes were the cause of problems on AusFinance.

 

[brokenangel1991]

@lochie Keep your friends close and your enemies even closer

 

[smachen]

@lochie I would save up and take a holiday to Europe start living my life

Then when I get it back, professional financial advisor. Not reddit.