How to invest for the future for my 5 y.o

[hcmcity]

Hello brainstrust,
Need your help on how to diversify my portfolio.

I’m 48m with a 5 y.o.
Small biz owner for last 12 years.
Super 29k
hiSa- 250k
Term deposit 20k
Mortgage on Apartment left $1

Read that I should invest in vgs/vgad
(But don’t know how to start, is it CMC?)

Read from here that I should contribute 1.2k a month in super. ( will start that soon)

Pls advise how I can settle up my kid for the future.

Help me everyone, you’re my only hope!

TIA

 

[lindseym1013]

@hcmcity Don’t worry about investing in your kids name

Just make yourself as financially stable and successful as you can and that will then benefit your kid.

Where to start

1) is your mortgage actually $1 or was that a typo? If it’s a typo put all your cash in the offset not a HIsa.

2) I take it you’ve neglected super as a business owner. The tax concessions are too good, you should look to use up your carry over concession, you might be able to put 40-50k a year in for a few years to use it all up and catch up.

3) look at ETFs once super is topped up. Keep it simple either do a single highly diversified like VDHG or DHHF or a split of something like VAS/VGs

 

[hcmcity]

@lindseym1013 Mortgage is $1 bc I followed my client’s idea.
He didn’t like the discharge fee, so I’m copying.

Currently hiSa Rabobank has 5.7% so I get about 1k each month and plan to use it to top up my super.

Thank you for suggesting about priority on super before etfs. and I shall look into those. Cheers

 

[lindseym1013]

@hcmcity You should move a chunk of money out of HISA into super not just do it monthly.

You’ll get an immediate 17-30% return, which is equivlent to 5-10 years of returns in a HIsA

 

[hcmcity]

@lindseym1013 Oh wow. I didn’t know that. I moved to Australia 20 years ago and don’t know how about super. Will start researching now. Appreciate the direction.

 

[hcmcity]

@lindseym1013 When you mean a chunk of the savings, is this what you referring to?
I’ve done some research and am allowed to put 27.5k each year into my super ( that’s $1057 a fortnight)
Do you recommend to put it all in 1 go or per fortnight.
Pls advise

 

[seekingtruechurch]

@hcmcity Put $27,500 in each financial year. If you work for yourself and don't pay money into super at any other time, then you might as well make the contribution in one step and have it done. Just be sure that you fill out the appropriate form to state that you want the contribution to be considered as a 'concessional contribution', otherwise you won't get the tax saving.

 

[hcmcity]

@seekingtruechurch Thank you so much for your advice. Really appreciate it.

 

[lindseym1013]

@hcmcity It’s 27.5k a year

But it’s also 137.5 over 5, so if you put in less than 27.5k in previous years you can use that too.

You’ll get better returns in super than you will a HISa. You want your money in there asap not slowly

 

[hcmcity]

@lindseym1013 I will get it sorted immediately. Thank you so much for your advice. Really appreciate it.
And also nominate my daughter as a beneficiary.

 

[seekingtruechurch]

@hcmcity Put $1 in mortgage offset.

 

[solomonhall201]

@hcmcity The only reason to do this unless you are quite wealthy is to show off to others.

If you buy $100 of VDHG, no one cares

But if you buy $100 of VDHG under your Childs name, you can tell people at dinner parties "Well achtually, we just started an investment fund for little susie see, yaaaarrrrhhhhs"